Document:

Development, Manufacturing and Supply Agreement

 Exhibit 10.1 
  
 DEVELOPMENT, MANUFACTURING AND SUPPLY AGREEMENT 
  
 This AGREEMENT (the “Agreement”) dated as of March 25, 2003 (the “Effective Date”) between Kensey Nash Corporation, a
Delaware corporation, having its principal place of business at 55 East Uwchlan Avenue, Exton, PA 19341 (hereinafter referred to as “KNC”) and Orthovita, Inc., a Pennsylvania corporation, having its principal place of business at 45 Great
Valley Parkway, Malvern, PA 19355 (hereinafter referred to as “Orthovita”). 
  
 WHEREAS, KNC is a company engaged in the development, manufacturing, marketing and sale of medical devices for a wide variety of applications; 
  
 WHEREAS, KNC has expertise in developing and manufacturing biomaterials-based medical devices and desires to jointly develop
products with Orthovita under the terms of this Agreement; 
  
 WHEREAS, KNC has proprietary materials and processes that Orthovita desires to be incorporated in products developed jointly by the parties; 
  
 WHEREAS, Orthovita is a company engaged in the development, manufacturing, marketing and sale of medical devices for orthopedic applications; 

 
 WHEREAS, Orthovita has expertise in developing and manufacturing
biomaterials-based medical devices and desires to jointly develop products with KNC under the terms of this Agreement; 
  
 WHEREAS, Orthovita desires to launch additional new product line extensions for VITOSS, its proprietary synthetic bioactive bone grafting material, for
its distribution network; and 
  
 WHEREAS, Orthovita and KNC
desire to jointly develop products, and KNC desires to manufacture such products and sell them to Orthovita and Orthovita desires to distribute such products under the terms and conditions set forth herein. 
  
 NOW, THEREFORE, in consideration of the foregoing premises and the mutual
covenants and agreements provided herein, the parties hereto, intending to be legally bound hereby, agree as follows: 
  
 1. DEFINITIONS 
  

	1.1	“Act” shall have the meaning set forth in Section 11.1. 

  

	1.2	“Additional Products” shall mean products, other than the Initial Products (as defined below), which products may be developed and manufactured by the parties
pursuant to an amendment to this Agreement. 

  

	1.3	“Approval(s)” shall mean receipt from the FDA or other applicable Governmental Authority of final approval, including any applicable pricing, final labeling or
reimbursement approvals, necessary to manufacture, market and sell a Commercial Product in a country of the Territory. 

	1.4	“CE Marking” shall have the meaning set forth in Section 4.5(c). 

  

	1.5	“cGMP” shall mean the current Good Manufacturing Practices regulations promulgated by the FDA under the Act as of the time of manufacture of the applicable
Commercial Products, as well as comparable good manufacturing practice regulations of any other applicable Governmental Authority of a jurisdiction in which Commercial Products are sold and subject to any arrangements, additions, or clarifications
agreed from time to time between the parties. 

  

	1.6	“Claim(s)” shall mean all charges, complaints, actions, suits, proceedings, hearings, investigations, claims and demands. 

  

	1.7	“Commercial Product(s)” shall mean any Initial Product that has received Approval and is intended for sale to the end-use market. 

  

	1.8	“Confidential Information” shall mean all oral or written information that is disclosed by either party (the “Disclosing Party”) to the other party (the
“Receiving Party”), or that the Receiving Party becomes aware of as a result of its discussions and work with the Disclosing Party, and that is not generally known to the public, including but not limited to, information of a technical
nature such as trade secrets; manufacturing processes or devices or know-how; techniques, data, formulas, inventions, discoveries or innovations (whether or not patentable), specifications and characteristics of current products or products under
development; research projects, methods and results; matters of a business nature such as information about costs, margins, pricing policies, markets, sales, suppliers and customers; product, marketing or strategic plans; financial information;
personnel records and other information of a similar nature, provided, however, that Confidential Information shall not include any information that (i) is or becomes public knowledge without breach of the Receiving Party’s obligations
hereunder; (ii) is rightfully acquired by the Receiving Party from a third party that is not under a confidentiality restriction on disclosure or use; (iii) was already known to the Receiving Party prior to receipt from the Disclosing Party as
evidenced by written records; (iv) is required to be disclosed by law or court order, provided that notice of the requirement is promptly delivered to the Disclosing Party in order to provide the Disclosing Party with an opportunity to challenge or
limit the disclosure obligations; or (v) is disclosed or used following the Receiving Party’s receipt of express written consent from an authorized representative of the Disclosing Party. The Receiving Party shall have the burden of proof
respecting any of the aforementioned events on which the Receiving Party relies as relieving it of any confidentiality restrictions hereunder. Written disclosures for which protection is sought must be obviously marked as “Confidential” or
“Proprietary” and oral disclosures for which protection is sought must at the outset be clearly identified by the Disclosing Party as Confidential Information and submitted by the Disclosing Party in summary form to the Receiving Party,
marked as above within thirty (30) days after disclosure; provided, however, that protection under Section 9 shall also be given to information that is not so marked if a reasonable person would assume that it is Confidential Information.

  

	1.9	“Consignment Stock” shall mean the stock of VITOSS maintained by KNC at its facility. 

  

	1.10	“Development Program” has the meaning set forth in Section 3.1 hereof. 

  

	1.11	“Development Plan” shall mean the plan for development and FDA approval of Initial Products as hereinafter defined, as set forth in Schedule A. The parties may
modify and amend Schedule A from time to time throughout the Term as required to assure successful commercialization of the Initial Products. 

	1.12	“Disclosing Party” shall have the meaning set forth in Section 1.8. 

  

	1.13	“Distributor” shall mean any entity designated by Orthovita to advertise, promote, market, distribute and sell the Initial Product(s) within a certain geographic
area of the Territory. 

  

	1.14	“EU Medical Device Directives” shall have the meaning set forth in Section 4.5(c). 

  

	1.15	“FDA” shall have the meaning set forth in Section 3.7. 

  

	1.16	“Field” shall mean orthopedics, including spinal and trauma, and dental, periodontal, and craniomaxiofacial applications. 

  

	1.17	“First Commercial Sale” shall mean the first bona-fide commercial sale for use or consumption of Commercial Product in the Territory after United States Food and
Drug Administration or other Governmental Authority has cleared or approved such product for marketing as required. 

  

	1.18	“Governmental Authority” shall mean any court, tribunal, arbitrator, agency, department, legislative body, commission or other instrumentality of (a) any government
of any country, (b) any foreign, federal, state, county, city or other political subdivision thereof, (c) any supranational body, or (d) a Notified Body. 

  

	1.19	“Initial Product(s)” shall mean any one or combination [**]. 

  

	1.20	“Initial Term” shall have the meaning set forth in Section 2.1. 

  

	1.21	“Intellectual Property” shall mean all inventions, discoveries and innovations (whether patentable or unpatentable and whether or not reduced to practice), all
improvements thereto, and all patents, patent rights, patent applications and invention disclosures, together with all reissues, continuations, continuations-in-part, revisions, extensions, and reexaminations thereof, all registered or unregistered
trademarks, trade names and service marks, including all goodwill associated therewith, and copyrights, and all applications and registrations for any of the foregoing owned or controlled by or issued to Orthovita or KNC, and any trade secrets and
know-how, in each case relating to the Initial Products in the Field in the Territory. 

  

	1.22	“KNC Indemnified Party” shall have the meaning set forth in Section 15.2. 

  

	1.23	“Losses” shall mean any and all damages (including incidental, consequential, statutory and treble damages), awards, deficiencies, settlement amounts, defaults,
assessments, fines, dues, penalties, costs, fees, liabilities, obligations, taxes, liens, losses, lost profits and expenses (including without limitation court costs, interest and reasonable fees of attorneys, accountants and other experts) incurred
by or awarded to third parties and required to be paid to third parties with respect to a Claim by reason of any judgment, order, decree, stipulation or injunction, or any settlement subject to the indemnification provisions of this Agreement,
together with all documented out-of-pocket costs and expenses incurred in complying with any judgments, orders, decrees, stipulations and injunctions that arise from or relate to a Claim of a third party. 

  

	1.24	“Master File” shall mean a file to support an Approval submitted directly to the FDA in order to maintain the confidentiality of the material contained in such
file. 

  

	1.25	“MDR” shall have the meaning set forth in Section 4.6(h). 

  

	**	Certain information in these exhibits has been omitted and will be filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request under
17 C.F.R. Sections 200.80(b)(4), 200.83 and 230.406. 

	1.26	“Minimum Unit Sales” shall have the meaning set forth in Section 6.8. 

  

	1.27	“Orthovita Indemnified Party” shall have the meaning set forth in Section 15.1. 

  

	1.28	“Net Sales” shall have the meaning set forth in Section 6.1. 

  

	1.29	“Permitted Use” shall mean the use of the other party’s Intellectual Property necessary to perform under this Agreement. 

  

	1.30	“Product Drawings” shall have the meaning set forth in Section 5.1. 

  

	1.31	“Product Specifications” shall have the meaning set forth in Section 5.1. 

  

	1.32	“Product Warranties” shall have the meaning set forth in Section 11.1. 

  

	1.33	“Project Plan” shall have the meaning set forth in Section 3.1. 

  

	1.34	“Purchase Orders” shall have the meaning set forth in Section 5.3. 

  

	1.35	“Quarterly Commitment” shall have the meaning set forth in Section 4.6(d). 

  

	1.36	“Receiving Party” shall have the meaning set forth in Section 1.8. 

  

	1.37	“Rolling Forecast” shall have the meaning set forth in Section 4.6(d). 

  

	1.38	“Submission” shall have the meaning set forth in Section 3.6. 

  

	1.39	“Successive Term” shall have the meaning set forth in Section 2.1. 

  

	1.40	“Term” shall have the meaning set forth in Section 2.1. 

  

	1.41	“Territory” shall mean worldwide. 

  

	1.42	“Transfer Price(s)” shall mean the price paid by Orthovita to KNC for the Commercial Product(s), as set forth in Section 5.1 hereof. 

  

	1.43	“VITOSS” shall mean Orthovita’s proprietary synthetic bone grafting material. 

  
 2. TERM 
  

	2.1	This Agreement shall commence on the Effective Date and, unless earlier terminated as provided herein, continue for seven (7) years from the date of the First Commercial Sale (the
“Initial Term”). If none of the Initial Products or any Additional Products have been commercialized within two years from the Effective Date of this Agreement, this Agreement will automatically terminate unless otherwise agreed in writing
by the parties. The Initial Term shall be automatically extended for one additional three (3) year term (the “Successive Term”), unless written notice is provided by either party at least six months prior to the expiration of the Initial
Term (the Initial Term and the Successive Term are collectively referred to as the “Term”). 

 3. DEVELOPMENT PROGRAM 
  

	3.1	Development Roles. Subject to the terms of this Agreement, KNC and Orthovita agree to work together in good faith to develop the Initial Products (the “Development
Program”) in accordance with the Development Plan as generally outlined in Schedule A. KNC and Orthovita will work together to define the Initial Products’ specifications that meet the market requirements, utilizing KNC’s expertise in
biomaterials and the fabrication of resorbable products and Orthovita’s expertise in biomaterials and the orthopedic end-use market. Orthovita and KNC together will conduct engineering, research and development, and manufacturing of prototypes
related to the development of the Initial Products. Orthovita will advise and provide feedback on product development progress, including medical input to provide assistance in the definition of the end-user product requirements and marketing
specifications. The parties shall prepare a more detailed project plan (“the Project Plan”), as necessary, regarding the exchange of proprietary information, the resources to be devoted to the development of the Initial Products,
scheduling of meetings, estimated development timetables, milestones, joint testing of prototypes, and timing of deliverables. The assignment of the regulatory work will be developed as part of the Project Plan and will be performed on a joint
basis, it being understood that Orthovita has responsibility for design controls and maintaining a design history file for each of the Initial Products. 

  

	3.2	Efforts. Each party will use its commercially reasonable efforts, and will devote sufficient time, attention and qualified personnel, to meet the delivery dates for any
deliverables and other matters agreed to in the Development Plan or Project Plan in accordance with this Agreement. The parties will provide each other with such technical support relating to the development of the Initial Products as reasonably
necessary for the parties to develop the Initial Products. The parties acknowledge that in connection with the development of the Initial Products, each of the parties may need access to certain Confidential Information of the other party that will
be subject to the confidentiality provisions set forth in Article 9 hereof. Each party agrees to notify the other promptly of any factor, occurrence, or event coming to its attention that may affect that party’s ability to meet the requirements
of the Development Plan, Project Plan or the Development Program generally, or that is likely to cause any material delay in the delivery of deliverables. The parties agree to periodically review the feasibility of commercialization of each of the
Initial Products from a cost, risk and time to develop perspective. Neither party has any obligation to proceed with its obligations under the Development Program for any individual Initial Product, if the cost or risk to develop becomes
commercially impractical. 

  

	3.3	Meeting Schedules. During the course of the Development Program, representatives of the parties shall meet at times and places mutually agreed upon to discuss the progress
and results as well as any ongoing plans or changes to the Development Program. 

  

	3.4	Funding. KNC shall provide its manpower to execute the Development Program, and deliver prototype devices as needed for all pre-clinical and clinical requirements at no
charge to Orthovita. Orthovita shall provide its manpower to execute the Development Program and provide VITOSS to manufacture the prototypes at no charge to KNC. Orthovita shall be responsible for all out-of-pocket third party expenses associated
with the Development Program, including, but not limited to, animal studies and clinical trial expenses, if necessary, subject to Section 3.5. For the avoidance of doubt, the development costs incurred by KNC shall not be included in the Transfer
Price of the Initial Products as set forth in Section 5. Notwithstanding the foregoing, Orthovita shall have no responsibility for capital investments associated with KNC’s manufacturing rights related to the Commercial Products. KNC shall
fully fund and make all capital investments as may be reasonably required to carry out its obligations under the Agreement. 

	3.5	Third Party Expenses. Orthovita shall reimburse KNC, on a monthly basis and within 30 days of presentation of an invoice, for any out-of-pocket third party expenses incurred
by KNC, provided that such expenses were referenced in the Development Plan or the Project Plan or are otherwise agreed to by Orthovita. 

  

	3.6	Sharing of Data. Except with respect to proprietary manufacturing information related to a party’s respective proprietary materials and processes, all data generated
from the Development Program, including, but not limited to, laboratory, animal and clinical data, and also including all regulatory filings and correspondence to all regulatory authorities relating to the Development Program, shall be owned by both
parties jointly, and the party generating or receiving any such data shall promptly make available and share it with the other party; provided, however, that prior to sharing such data, each party may redact the proprietary manufacturing information
related to its respective proprietary materials and processes. Each party agrees to provide the other with copies of all abstracts, presentations, journal manuscripts and related materials relating to the Development Program intended for publication
(each a “Submission”) at least thirty (30) days prior to the proposed Submission date for review and comment. Each party agrees to delete specific portions of submissions that consist of Confidential Information of the other party or are
otherwise necessary to protect the patentability of such disclosure. 

  

	3.7	Regulatory Approval of Products. Orthovita shall have primary responsibility, at its sole cost, for obtaining all necessary U.S. and foreign Approvals for the Initial
Products for use, sales, marketing and distribution, including the performance of animal and clinical trials, if necessary. KNC anticipates performing significant work assisting Orthovita in the preparation and writing of the 510(k) applications and
will cooperate with Orthovita to the extent KNC’s participation is reasonably necessary or appropriate in order for Orthovita to procure such Approval, it being understood that KNC shall not be required to perform any animal tests or clinical
studies required for Approval, unless otherwise agreed to in the Development Plan or Project Plan or otherwise by the parties. Without limiting the generality of the foregoing, Orthovita shall make all necessary submissions in the U.S. with the
United States Food and Drug Administration and any successor agency thereto (“FDA”) under the Orthovita name. Orthovita shall provide to KNC copies of any written communications to or from the FDA or other Governmental Authority,
and notify KNC of any oral communications with the FDA or other Governmental Authority, relating to a Master File or other document filed with such Governmental Authority, promptly after any such communications are sent or received, redacted of any
proprietary information. In the event FDA or other Governmental Authority requests additional information from Orthovita, Orthovita shall advise KNC of the estimated date by which it will respond to such request, and the date that the response is
submitted. KNC will make available to Orthovita, without charge, tangible written information in KNC’s possession and control that is required to prepare a submission for Approval, as Orthovita may reasonably request, as is reasonably necessary
to obtain Approval, which information shall be presented in a form which satisfies the requirements of applicable FDA guidelines and/or regulations for such types of submissions seeking Approval. Notwithstanding the foregoing, in the case of
sensitive confidential or proprietary manufacturing or other information in a Master File or comparable document, KNC may instead agree to provide such information directly to the FDA or other applicable Governmental Authority, as the case may be,
or to an independent third party of its choosing which is reasonably acceptable to Orthovita, and shall respond directly (or through its independent agent) to any questions or inquiries from such Governmental Authority regarding the information. KNC
shall provide to Orthovita copies of any written communications to or from the FDA or other Governmental Authority, and notify KNC of any oral communications with the FDA or other Governmental Authority, relating to a Master File or other document
filed with such Governmental Authority, promptly after any such communications are sent or received, redacted of 

 any proprietary information. In the event FDA or other Governmental Authority requests additional
information from KNC, KNC shall advise Orthovita of the estimated date by which it will respond to such request, and the date that the response is submitted. In addition, KNC shall have no duty to disclose any of its proprietary information to any
Governmental Authority or any other party, unless the regulatory authority in question provides for the protection of such proprietary information from disclosure in a manner substantially similar to that provided by the FDA. 
  

	3.8	Additional Products. From time to time, the parties may agree to jointly develop Additional Products. In such event, the parties shall execute a new agreement or an addendum
to this Agreement, such new agreement or addendum shall describe the Additional Products and the extent to which this Agreement applies or does not apply to such Additional Products. 

  
 4. COMMERCIALIZATION AND SUPPLY 
  

	4.1	During the Term of this Agreement, Orthovita shall engage KNC as the exclusive manufacturer, subject to Section 4.2, of one hundred percent (100%) of its Initial Product
requirements, including, without limitation, Initial Products required for engineering, testing and clinical trials, if any. That is, except as expressly set forth herein, Orthovita agrees to obtain or, in the case of Commercial Product, purchase
all of its Initial Product requirements exclusively from KNC and from no other third party manufacturer. 

  

	4.2	If KNC is unable to supply Commercial Product pursuant to Section 4.5(b), Orthovita shall have the right to engage a back-up supplier to manufacture and supply its Commercial
Product and to terminate any Purchase Order, in whole or in part, that KNC was unable to fill without liability or charge. Such right shall continue for a period of sixty (60) days after KNC notifies Orthovita that it is prepared to supply all of
Orthovita’s Initial Product requirements, as provided herein. 

  

	4.3	Notwithstanding the provisions of Section 4.1, the parties acknowledge that KNC maintains a biomaterials business and supplies products to companies that manufacture and/or develop
products that may compete with the Initial Products and the Additional Products. Subject to the use of the joint Intellectual Property set forth in Section 8.4 herein, nothing in this Agreement shall preclude KNC from continuing to conduct such
business during the Term of this Agreement, or otherwise. 

  

	4.4	Orthovita may use Distributors in the commercialization of the Initial Products, provided that, Orthovita shall be responsible for monitoring such Distributors, so that the terms of
this Agreement are met. 

  

	4.5	KNC agrees to: 

  

	 	a.	use commercially reasonable efforts to supply Orthovita with Orthovita’s projected Rolling Forecast requirements (pursuant to Subsection 4.6(d)) of Commercial Product;

  

	 	b.	use commercially reasonable efforts to deliver Commercial Product hereunder on the scheduled delivery dates as set forth in the relevant Purchase Orders described in Section 5.3,
[**]; 

  

	 	c.	supply Orthovita with Commercial Product manufactured in material compliance with FDA Quality System Regulations (“QSR”), including cGMP, and ISO 13485. KNC shall also
comply with the essential requirements of the European health, safety and environmental protections legislations set forth in the European Union Council Medical 

  

	**	Certain information in these exhibits has been omitted and will be filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request under
17 C.F.R. Sections 200.80(b)(4), 200.83 and 230.406. 

 Device Directives (the “EU Medical Device Directives”) and declare such compliance by affixing
the “CE Marking” to Commercial Product shipped to Orthovita, as necessary; 
  

	 	d.	seek written approval from Orthovita prior to implementing changes to the manufacturing process which KNC believes in its reasonable judgment may impact safety or efficacy of
Commercial Product or changes which may require additional regulatory filings. Such notification shall be effected by providing sample materials to Orthovita for evaluation and approval, which approval shall not be unreasonably withheld, conditioned
or delayed; 

  

	 	e.	seek written approval from Orthovita prior to implementing changes to Product Drawings or Product Specifications which KNC believes in its reasonable judgment may have a potential
safety, efficacy, or regulatory impact on Commercial Product; 

  

	 	f.	investigate diligently, at Orthovita’s request, complaints or adverse events which relate to manufacture, sterilization, or packaging issues; 

  

	 	g.	provide to Orthovita any complaints KNC receives relating to the Commercial Product, including notice of any adverse events within three business days of their receipt;

  

	 	h.	execute written master validation plans for Commercial Product, jointly created with and approved by Orthovita (redacted as necessary to protect KNC Confidential Information).
Orthovita shall reimburse KNC for out-of-pocket costs associated with validation testing, including lab fees and the standard cost of product consumed during the process, and shall take for delivery all Commercial Product manufactured during the
validation process. Any other costs, including costs of product not suitable for commercial sale (i.e., scrap in the event validation runs need to be repeated), shall be born equally between the two parties. Orthovita shall bear full responsibility
for such plan, including 100% of any costs related to any potential regulatory actions related to such its contents; 

  

	 	i.	maintain VITOSS Consignment Stock at its facility, at the KNC address first listed above or another facility of KNC’s choosing with prior written notice to Orthovita, in
accordance with cGMP, keep VITOSS identified as property of Orthovita, allow Orthovita to inspect the Consignment Stock during normal business hours upon reasonable request and prior written notice and shall make available to Orthovita, as
requested, records regarding its usage, which KNC shall maintain as reasonably requested by Orthovita. KNC shall be responsible for any costs associated with excess usage, loss, or destruction (beyond that required by the Product Specifications and
expected yields of the manufacturing process) caused by its negligent mishandling of VITOSS Consignment Stock, for which it will reimburse Orthovita for VITOSS at Orthovita’s standard cost for the material; and 

  

	 	j.	maintain a strategic reserve of any single source raw material required to supply any Commercial Products in such amount as it reasonably believes will be sufficient to allow for
continuity of supply of Commercial Products until an alternative supplier for such single source raw material can be identified, qualified and brought online. 

	4.6	Orthovita agrees to: 

  

	 	a.	upon regulatory Approval, use commercially reasonable efforts, at least consistent with efforts for its internally developed products, to promote and market Commercial Product in
the Territory; 

  

	 	b.	market and sell Commercial Product in the Field only for the indication approved on the Commercial Product labeling; 

  

	 	c.	be solely responsible for the cost and implementation of all marketing, sales, promotional and related activities concerning the marketing, sale and promotion of Commercial Product
in the Territory; 

  

	 	d.	provide KNC with non-binding rolling twelve (12) month forecasts of Orthovita’s requirements of Commercial Product (“Rolling Forecast”), inclusive of quantities of
samples and demo materials to be purchased by Orthovita. Such forecasts shall be prepared in good faith and provided prior to the First Commercial Sale and on a quarterly basis thereafter, no less than thirty (30) days prior to the beginning of each
calendar quarter. The first three months of any twelve month Rolling Forecast shall be consistent with firm Purchase Orders to purchase Commercial Product and shall be considered a quarterly commitment (“Quarterly Commitment”);

  

	 	e.	carry reasonable levels of inventory of Commercial Product to allow for normal fluctuations in sales demand from the Rolling Forecasts specified in Section 4.6(d) so as to allow KNC
reasonable lead time to meet any change in demand; 

  

	 	f.	reimburse KNC for any and all unrecovered inventory costs of raw materials, components, and finished product, should any such inventory become obsolete or unusable in the
manufacture of Commercial Product (a) within a four month period subsequent to a reduced or cancelled Purchase Order by Orthovita, (b) in the event quantities of Commercial Product under Purchase Orders provided by Orthovita are less than fifty (50)
percent of any Rolling Forecast for any three month period, or (c) if such inventory becomes obsolete due to changes in processing and/or Product Specifications as directed by Orthovita; provided further that (i) KNC will attempt to minimize any
losses associated with such obsoleted or unusable inventory, and (ii) KNC will reduce the Transfer Price of any Commercial Product provided to Orthovita that contains inventory for which KNC has been reimbursed per this Section 4.6(f);

  

	 	g.	be solely responsible for the cost of any Commercial Product redesign, which varies from the Product Drawings established prior to the First Commercial Sale. If a Commercial Product
redesign results in material and labor costs either higher or lower from what is anticipated in Product Drawings established at the First Commercial Sale, Transfer Prices of Commercial Product shall be adjusted accordingly; 

 

	 	h.	investigate diligently all adverse events and complaints of which Orthovita has knowledge or awareness, related to any application which incorporates Commercial Product. Orthovita
shall be responsible for the cost and execution of all medical device reporting (“MDR”) in accordance with 21 CFR Part 803 and all vigilance reporting required in the markets where Commercial Products are sold; 

	 	i.	provide to KNC any complaints Orthovita receives relating to the Commercial Product, including notice of any adverse events, within three business days of their receipt;

  

	 	j.	fund sterilization validations, follow-up dose audits, and ship shake testing, subject to separate negotiation with KNC, regarding the price and extent thereof;

  

	 	k.	subject to the assistance and cooperation to be provided by KNC pursuant to the terms of this Agreement, be solely responsible for all necessary Approvals to market the Initial
Products including any re-approvals required due to, among other things, drawing and specification changes; 

  

	 	l.	create jointly with KNC and approve written master validation plans (redacted for any KNC confidential manufacturing information) related to the manufacture of the Commercial
Products, subject to the cost sharing provisions outlined in Section 4.5(h). Orthovita shall bear full responsibility for such plan, including 100% of any costs related to any potential regulatory actions related to its contents; 

  

	 	m.	provide KNC with an adequate, timely supply of VITOSS to meet KNC’s manufacturing and delivery requirements hereunder; and  

  

	 	n.	include reference to KNC’s role as the manufacturer and co-developer on all packaging and marketing literature of Commercial Product, in form and substance reasonably
acceptable to KNC. 

  
 5. ORDERING, PRICE AND
PAYMENTS 
  

	5.1	Orthovita shall pay the Transfer Prices for each Commercial Product, to be negotiated based on final Commercial Product specifications and final drawings for the Commercial Products
(“Product Specifications” and “Product Drawings”), processes and volumes of Commercial Products to be delivered. Such Transfer Prices shall include normal gross profit margins of [**]% to KNC, based upon KNC’s
manufacturing costs using a standard manufacturing costing system that applies overhead rates consistent with other products KNC produces. For reference purposes only, KNC expects the Transfer Price for [**] depending upon volumes of product
to be delivered. The parties acknowledge that the Commercial Products will incorporate VITOSS, which shall be supplied by Orthovita to KNC at no charge. 

  

	5.2	The Transfer Prices may be adjusted from time to time throughout the Term of the Agreement. If such price adjustments are related to revisions to Product Specifications or lot
release criteria as directed by Orthovita, KNC will propose new pricing which will be negotiated in good faith and will be effective immediately upon shipment of Product meeting the new Product Specifications, without regard to the provisions that
follow in this Section 5.2. Pricing may also be changed for other factors such as, but not limited to, changes in raw material costs, labor costs, regulatory costs, or product liability costs. Such pricing adjustments will occur no more than
annually by so notifying Orthovita in writing at least seventy-five (75) days prior to the effective date of such change, and shall not exceed, unless otherwise agreed, the consumer price index for the Philadelphia metropolitan area as published by
the U.S. Department of Labor, Bureau of Labor Statistics. 

  

	5.3	Orthovita shall provide KNC with firm written purchase orders (“Purchase Orders”) for Commercial Product in accordance with the lead-times determined and agreed to during
the Development 

  

	**	Certain information in these exhibits has been omitted and will be filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request under
17 C.F.R. Sections 200.80(b)(4), 200.83 and 230.406. 

 Program (expected to be between 8-12 weeks) and consistent with Quarterly Commitments; provided,
that Orthovita shall have the right, with reasonable lead-times prior to the date of manufacture, and with the consent of KNC which shall not be unreasonably withheld, to issue binding, written change orders to increase or decrease the quantity of
such Purchase Orders. Orthovita agrees to accept partial shipments of Commercial Product should it, for any commercially reasonable reason, become necessary to ship in advance of order completion. KNC shall use its commercially reasonable efforts to
comply with any reasonable revisions to Purchase Order requirements. 
  

	5.4	Within five (5) business days after receipt of a written Purchase Order from Orthovita, KNC shall acknowledge such receipt and confirm whether the order can be supplied, delivery
dates, and destinations. Except with respect to “rush” orders, requested delivery dates shall not conflict with KNC’s customary manufacturing lead times. If confirmed as “rush” order (with less than standard lead times and
not attributable to KNC’s failure to deliver Commercial Product under previous Purchase Orders), an expediting charge of 25% may be applied by KNC to such delivery. KNC shall use commercially reasonable efforts to accommodate “rush”
orders from Orthovita. 

  

	5.5	Within fifteen (15) business days after receipt of a Rolling Forecast, or otherwise promptly, KNC shall notify Orthovita of any prospective problems that KNC is aware of that is
likely to prevent KNC from meeting Orthovita’s forecasted requirements. 

  

	5.6	KNC shall ship Commercial Product to the location(s) designated by Orthovita F.O.B. Exton, Pennsylvania, in accordance with the shipping method specified by Orthovita. Orthovita
shall pay the actual documented cost of shipping Commercial Product to Orthovita facilities. Orthovita shall be responsible for all insurance, custom charges and taxes related to shipping and the distribution of the Commercial Product. Title to and
risk of loss for all Commercial Product sold hereunder shall pass from KNC to Orthovita at the time of loading for shipment at KNC’s facility onto the carrier designated by Orthovita. 

  

	5.7	Orthovita shall determine shipping method and shall bear full responsibility for its shipping method choice for Commercial Product. 

  

	5.8	KNC shall invoice (net 30 day terms) Orthovita for the aggregate Commercial Product shipments, and Orthovita shall pay each invoice within such thirty (30) day period. KNC may
impose a late payment service charge of 1.5% per month on invoices not paid when due. All payments shall be in United States currency. In the event Orthovita fails to pay for any shipment not in dispute, as provided for in Section 7.2 and 7.3
herein, within seventy-five (75) days after the date of the invoice, declares bankruptcy, makes an assignment for the benefit of creditors or becomes insolvent as outlined in Section 14.1(b), KNC may immediately demand cash on delivery (COD) for any
subsequent shipments of Commercial Product under this Agreement and is not obligated to make any further shipments unless in each case it is paid on delivery to the carrier in Exton, and in the case of failure to pay, all undisputed monies due to
KNC. Such COD requirements shall be discontinued if (i) in the case of bankruptcy, Orthovita emerges from bankruptcy or (ii) in the case of failure to pay, Orthovita remits in full all undisputed monies due to KNC and demonstrates an ability and
willingness to pay on the contractual terms. 

 6. ROYALTIES AND MINIMUM UNIT SALES 
  

	6.1	Royalty Payments. In addition to any amounts to be paid by Orthovita pursuant to Section 5.1, Orthovita shall pay to KNC a royalty equal to [**] of the Net Sales of
Commercial Product. For purposes of this Agreement, “Net Sales” means the gross amount invoiced by Orthovita or any Affiliate of Orthovita, Distributors, Licensees or others to end-users of the Commercial Products in the United States and
the aggregate sales revenues outside of the United States of the Commercial Products as invoiced by Orthovita, its Licensees or any Affiliate of Orthovita to Distributors or others on sales or other dispositions of Commercial Product, less the
following items: 

  

	 	a.	usual, customary and reasonable trade, cash and quantity discounts actually allowed and taken directly with respect to such sales or provision of information;

  

	 	b.	amounts repaid or credited by reason of rejections, defects, recalls or returns or because of charge-backs, refunds, rebates or retroactive price reductions and reasonable
uncollectible write-offs consistent with past practice; and 

  

	 	c.	taxes, excises or other governmental charges upon or measured by the sales, transportation, delivery or use of goods (to the extent directly related to the sale and not refundable
in accordance with local law, and not including any taxes or charges against the income derived from such sale). 

  

	6.2	In the event Commercial Product is sold together with other items at a single price, or Commercial Product is configured as a combination package containing other products, such
single price shall be allocated among the Commercial Product and the other products based on the market price for such products when sold separately, provided, that if either of such products is not also then being sold alone, Orthovita and
KNC shall agree upon the market price that could reasonably be expected for that product or a comparable product. 

  

	6.3	All such amounts as described in this Section 6 shall be determined from the books and records of Orthovita, such books to be maintained in accordance with U.S. generally accepted
accounting principles. 

  

	6.4	Royalty Reports and Accounting. (a) Orthovita shall deliver to KNC, within thirty (30) days after the end of each calendar quarter, reasonably detailed written accountings of
Net Sales of Commercial Product for such calendar quarter (including any calculations with respect to amounts owing with respect to Commercial Product bundled with other items as set forth in Section 6.2), and units sold during such quarter. Such
quarterly reports shall indicate (i) gross sales and Net Sales on a product-by-product basis, and (ii) the calculation of royalties from such Net Sales. When Orthovita delivers such accounting to KNC, it shall also deliver all royalty payments due
under Section 6.1 for the calendar quarter. In addition to such quarterly reports, Orthovita shall provide preliminary monthly Net Sales and royalty calculations to KNC within seven (7) days of each month end with information readily available to
them in that timeframe. 

  

	6.5	Orthovita shall keep complete and accurate records of the latest three (3) years relating to Net Sales. For the sole purpose of verifying royalties payable hereunder, KNC shall have
the right annually, at KNC’s expense, to review such records in the location(s) where such records are maintained by Orthovita upon reasonable notice and during regular business hours and under obligations of confidence as provided in Section
9. If a review reflects an underpayment of royalties, such underpayment shall be promptly remitted by Orthovita to KNC. If the underpayment is equal to or greater than five percent (5%) of the royalty amount that was otherwise due, Orthovita agrees
that it shall pay all of the costs of such review. 

  

	**	Certain information in these exhibits has been omitted and will be filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request under
17 C.F.R. Sections 200.80(b)(4), 200.83 and 230.406. 

	6.6	Currency and Method of Payments; Late Payments. All payments under this Agreement shall be made in United States dollars by transfer to such bank account as KNC may designate
from time to time. Any royalty payments due hereunder with respect to sales outside of the United States shall be payable in U.S. Dollars; provided, however, that if any payment on account of Net Sales is received by Orthovita in a foreign currency,
such amount shall be converted monthly to United States funds at the rate published by Reuters on the last Wednesday of the month in which Net Sales occurred (or such other publicly available source as Orthovita may subsequently utilize generally in
its currency accounting procedures, in which case Orthovita shall provide notice to KNC promptly of any such change). 

  

	6.7	Tax Withholding. Orthovita shall use all reasonable and legal efforts to reduce required tax withholding on payments made to KNC hereunder. Notwithstanding such efforts, if
Orthovita reasonably concludes that tax withholdings under the laws of any country are required with respect to payments to KNC, it shall withhold the required amount and pay it to the appropriate governmental authority, and shall promptly provide
KNC with original receipts or other evidence reasonably required and sufficient to allow KNC to document such tax withholdings adequately for purposes of claiming foreign tax credits and similar benefits. 

  

	6.8	Minimum Unit Sales. Orthovita agrees to achieve minimum annual unit sales of the Commercial Product(s) (the “Minimum Unit Sales”) during the first two years after
the First Commercial Sale to the end use market. If Orthovita does not achieve the Minimum Unit Sales, the royalty payment due in this Section 6 shall increase to [**]. Minimum Unit Sales following the First Commercial Sale will be as follows
(any size/ any dimension) for any of the Commercial Products: 

  
 Year One: [**] per year 
 Year Two: [**] per year 
  
 In the event that Orthovita does not achieve Net Sales on Commercial
Products sufficient to pay royalties in the amount of [$200,000] cumulatively from the First Commercial Sale during the first three years after the First Commercial Sale, Orthovita shall promptly reimburse KNC for its development costs (at
reasonable billable manpower rates) for the Commercial Products, up to a maximum of [**] less the aggregate amount of royalties actually paid to KNC under this Section 6. Minimum Unit Sales for Additional Products will be agreed upon and
established after good faith reasonable negotiations by the parties prior to product launch for such Additional Products. 
  
 7. QUALITY CONTROL AND REGULATORY COMPLIANCE 
  

	7.1	Each delivery of Commercial Product shall be accompanied by KNC’s Certificate of Conformance, as mutually agreed to by the parties. 

  

	7.2	Except as provided herein, Orthovita shall accept all Commercial Product delivered in accordance with the terms and conditions of this Agreement. Orthovita (a) may reject any
portion of any shipment of Commercial Product if such shipment (i) was not manufactured in material compliance with cGMP and such non-compliance creates safety concerns or invalidates the commercial viability of the Commercial Product (ii) does not
conform in all material respects with the Product Specifications, or (iii) is greater than fifteen percent (15%) less than the quantities requested in the Purchase Order, or (b) may reject the portion of the shipment in excess of the quantities
requested in the Purchase Order if such shipment exceeds such ordered quantities by more than fifteen percent (15%). In order to reject a shipment, Orthovita must give KNC, within thirty (30) days of receipt of shipment, a reasonably detailed
statement of its reasons for rejection and Commercial Product 

  

	**	Certain information in these exhibits has been omitted and will be filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request under
17 C.F.R. Sections 200.80(b)(4), 200.83 and 230.406. 

 samples demonstrating the purported nonconformance and requesting that KNC either remedy or provide a
reasonable plan to promptly remedy such nonconformance. If no such statement is received by KNC then Orthovita shall be deemed to have accepted the shipment of Commercial Product. In the event of timely rejection by Orthovita, KNC shall, within five
(5) business days after receipt thereof, notify Orthovita of whether it accepts Orthovita’s notice of nonconformity or it shall be deemed to accept such notice. However: 
  

	 	a.	If KNC disagrees with any purported nonconformity, safety or commercial viability issue raised by Orthovita, then both parties agree to cooperate in good faith and make every
reasonable effort to resolve the disagreement. If KNC confirms Orthovita’s rejection under (i) or (ii) above in this Section 7.2, or if Orthovita’s rejection is otherwise due to (iii) above in this Section 7.2, then KNC shall, at its sole
expense and option, and in a reasonably prompt manner, but in no event more than sixty (60) days, either replace the nonconforming Commercial Product with conforming Commerical Product or refund to Orthovita the purchase price thereof or credit such
amounts if not already paid; and 

  

	 	b.	Commercial Product shall not be returned to KNC without KNC’s prior permission, and then only in a manner and to the destination prescribed by KNC. 

  

	7.3	If the parties hereto fail to agree as to whether a delivered quantity of Commercial Product meets its agreed Product Specifications, then the parties shall cooperate to have the
Commercial Product in dispute analyzed by a qualified independent testing laboratory selected by KNC to which Orthovita does not have reasonable objection. The following provisions shall apply with respect to the results indicated by such
independent laboratory: 

  

	 	a.	If the Commercial Product is determined to have met its Product Specifications, then Orthovita shall bear the costs of the independent laboratory testing and shall accept the
shipment of such Commercial Product and promptly pay for such Commercial Product if not yet paid; or 

  

	 	b.	If the Commercial Product is determined not to meet its Product Specifications, then KNC promptly shall bear the cost to replace the affected quantity, or refund amounts paid or
credit such amounts if not yet paid, as outlined in Section 7.2(a) and KNC shall bear the costs of the independent laboratory testing. 

  

	7.4	In the event of a regulatory audit at Orthovita, which involves any Commercial Product, Orthovita shall notify KNC of such audit promptly after receiving notice thereof but no less
than within one week thereof. Pursuant to such notice of audit, KNC shall supply Orthovita with documents required to be reviewed as part of a regulatory audit, related to the Commercial Product, within three business days from a request by
Orthovita (or alternatively, KNC shall agree to provide any proprietary information directly to such agency or body within three business days, and shall respond to any inquiries regarding such information with such agency or body).

  

	7.5	KNC shall promptly notify Orthovita whenever a request for a plant inspection is received from the FDA that relates in any way to Commercial Product, and shall promptly advise
Orthovita of any scheduled or unscheduled FDA inspection and the results thereof. A copy of Form 483 observations or other applicable reports, which apply to Commercial Product and redacted as deemed necessary by KNC to protect proprietary
information, shall be supplied to Orthovita upon its request, within three business days of the request. KNC shall promptly take steps to remedy any valid deficiencies found by the FDA inspectors relating to the manufacture, sterilization and
packaging of Commercial 

 Product, and to respond in writing to the Form 483 observations. KNC shall provide Orthovita with a copy
of its responses to any Form 483 observations relating to the Commercial Product in advance of their submission to FDA, redacted of any proprietary information, and shall notify Orthovita of the date such responses are filed with the FDA.

  

	7.6	In the event that either KNC or Orthovita determines that a recall of any one or more Commercial Products is necessary for any reason, KNC or Orthovita, as applicable, shall so
notify the other party in writing. Orthovita shall not conduct a voluntary recall of a Commercial Product without prior full consultation of KNC regarding the ramifications, costs, and regulatory strategies associated with such a recall; provided
however that Orthovita shall have full authority and responsibility to conduct a recall. 

  

	7.7	Orthovita and KNC shall assist and cooperate with each other in giving effect to any necessary recall. KNC shall be responsible for the cost of product replacements of any recall
caused by KNC’s shipment of Commercial Product that did not meet Product Specifications in all material respects or Commercial Product that was not manufactured in material compliance with cGMP and the costs associated with return and
reshipment including, without limitation, reasonable costs of notifying customers and costs associated with the shipment and reshipment and replacement of such products, including the cost of VITOSS at Orthovita’s standard cost. KNC shall have
no other obligations with respect to such recalls, except as may be provided for in Section 15.1. Orthovita shall, however, bear all costs and expenses of any recall caused by Commercial Product design, selection of materials, VITOSS related
recalls, misrepresentations (including deceptive or misleading advertising or sales practices) or other acts causing a recall to occur, including, without limitation, costs of notifying customers and costs associated with the shipment and reshipment
and replacement of such products. Othovita shall have no other obligations with respect to such recalls, except as may be provided for in Section 15.2. 

  

	7.8	KNC shall provide Orthovita access to its sites and quality system records for the purpose of auditing the sites for compliance with the requirements of Section 4.5(c). Any
information obtained by Orthovita as a result of such access shall be subject to the provisions of Section 9 hereof. To the extent that KNC reasonably believes that providing Orthovita with access to such sites would compromise KNC’s
obligations of confidentiality to third parties or require the disclosure of trade secrets, KNC shall grant such access to an independent third party designated by Orthovita in its reasonable discretion, and reasonably acceptable to KNC, to conduct
such audit. Any report furnished by such third party to Orthovita shall be subject to the provisions of Section 9 herein and KNC shall have the right to review any such report and delete any information it deems a trade secret or the disclosure of
which would violate such confidentiality obligations, prior to the release of said report to Orthovita. 

  

	7.9	KNC shall cooperate with Orthovita to provide any authorizations, documents or information in KNC’s possession, or take such other actions, which Orthovita may reasonably
request in order to obtain or maintain any registration, approval, clearance, certification or other authorization with or from any federal, state, local or foreign government agency or any self-regulatory body (or alternatively, KNC shall agree to
provide any proprietary information directly to such agency or body in the form of a Master File or comparable document, and shall respond directly to any inquiries regarding such information with such agency or body in accordance with Section 3.7).
Orthovita and KNC agree to jointly fund information development and preparation, should such information not be readily available. 

	7.10	Each party shall keep and maintain complete and accurate records necessary for regulatory compliance for a period of at least five (5) years after the expected life of the
Commercial Product or ten (10) years from the date of creation (whichever is less), including all records that ensure the ability to perform complete lot tracing of Commercial Product. 

  
 8. INTELLECTUAL PROPERTY RIGHTS 
  

	8.1	KNC and Orthovita acknowledge the exclusive right, title, interest and goodwill in and to each trademark, trade name or other Intellectual Property right owned by the other party.
Neither KNC nor Orthovita will, at any time or in any way, do or cause to be done any act, or omission, or thing to challenge, contest or in any way impair the right, title, and interest of the other party in such party’s Intellectual Property.
Except as otherwise provided in this Agreement, KNC and Orthovita shall not in any manner represent that either has any rights in or to any trademark, trade name or other Intellectual Property right of the other party and each acknowledges that the
Permitted Use of any trademark, trade name or other Intellectual Property right of the other shall not create any ownership right, title, or interest in or to any trademark, trade name or other Intellectual Property right of the other party,
notwithstanding such Permitted Use being under a limited license subject to the terms of this Agreement. 

  

	8.2	It is anticipated that during the Term of the Agreement, one or more inventions will be made by one or both of the parties hereto within the Field and in furtherance of performance
under this Agreement. Inventorship of all such inventions shall be determined in accordance with the patent laws of the United States. Inventions made solely by persons employed or owing a duty to assign to Orthovita shall be owned solely by
Orthovita. Inventions made solely by persons employed or owing a duty to assign to KNC shall be owned solely by KNC. Inventions made jointly by one or more persons from each of Orthovita and KNC shall be considered to be joint inventions and are to
be subject to the following Sections 8.3, 8.4 and 8.5. 

  

	8.3	Once a joint invention has been identified, the parties shall meet and confer with a view toward determining the best way to protect and exploit such invention. The parties shall at
all times proceed in good faith in this undertaking and shall determine which of the two parties is in the best position to control patents arising from such inventions. The party decided upon as being most appropriate to exercise control of an
invention shall have the obligation to secure appropriate US and international patent protection. Apportionment of costs attendant to such protection shall also be decided. In determining which party shall control an invention, the parties shall be
mindful of the commercial capabilities of the parties to bring the invention to the marketplace. The likelihood that FDA or other regulatory approval may be needed in order to secure commercialization shall also be a factor considered in this
evaluation. In general, improvements to each party’s existing Intellectual Property in the form of continuations or continuations-in-part to filed or issued patents shall be owned and assigned to such existing Intellectual Property’s
owner. Each party will, if reasonably requested, sign all documents and do all acts and deeds necessary or desirable to perfect the rights of joint inventions. 

  

	8.4	Notwithstanding any other clause of this Agreement, any Intellectual Property arising out of this Agreement, where jointly developed by Orthovita and KNC, regardless of whether
letters patent are applied for or received by one party or the other, shall be deemed to be jointly owned and available for use to both Orthovita and KNC. [**]. 

  

	8.5	In the event that the parties are unable to agree upon how control and exploitation of a joint invention shall be accomplished, the parties agree to submit the matter to non-binding
mediation. Such 

  

	**	Certain information in these exhibits has been omitted and will be filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request under
17 C.F.R. Sections 200.80(b)(4), 200.83 and 230.406. 

 mediation, if required, shall be undertaken by a single individual who is registered to practice before
the U.S. Patent and Trademark Office, who is skilled in the chemical, biological and medical arts, and who is familiar with whatever regulatory considerations attend the field most closely related to the invention in question. The fees for such
mediator shall be shared equally by the parties. No written record of the mediation shall be kept save as the same is reflected in the ensuing control and exploitation agreement. 
  

	8.6	[**]. 

  
 9. CONFIDENTIAL INFORMATION 
  

	9.1	The parties agree: 

  

	 	a.	To receive and hold all Confidential Information in strict confidence and to disclose such Confidential Information only to its employees and representatives who have a need to know
the Confidential Information. Without affecting the generality of the foregoing, the Receiving Party will exercise no less care to safeguard the Confidential Information than it exercises in safeguarding its own Confidential Information and will be
responsible for any breach of the provisions of Article 9 by its employees and representatives (including its employees who, subsequent to the first disclosure of Confidential Information, become former employees); 

  

	 	b.	That the Receiving Party shall not, directly or indirectly, disclose or use the Confidential Information, in whole or in part, for any purposes other than those contemplated herein.
Without affecting the generality of the foregoing, the Receiving Party shall not, directly or indirectly, disclose any such Confidential Information to any third party or use the Confidential Information for the benefit of any third party;

  

	 	c.	That neither party shall, without the prior written consent of the other party, disclose to any third party the fact that the Confidential Information has been made available or any
of the terms, conditions or other facts with respect to the business relationship of the parties. Any approved disclosure made shall be no more extensive than is necessary to meet the minimum requirement imposed on the party making such disclosure;

  

	 	d.	That money damages would not be a sufficient remedy for a breach of this Article 9 and that the non-breaching party shall be entitled to equitable relief (including, but not limited
to, a temporary restraining order or an injunction or specific performance) in the event of any breach of the provisions of this Article 9; 

  

	 	e.	The furnishing of Confidential Information hereunder shall not constitute or be construed as a grant of any express or implied license or other right, or a covenant not to sue or
forbearance from any other right of action by the Disclosing Party to the Receiving Party under any of the Disclosing Party’s patents or other Intellectual Property rights; 

  

	 	f.	Upon the Disclosing Party’s request, upon termination or expiration of this Agreement, the Receiving Party shall immediately return all written, graphic and other tangible
forms of the Confidential Information (and all copies thereof) in the Receiving Party’s possession or control except for one copy which may be retained for legal archival purposes only; and 

  

	**	Certain information in these exhibits has been omitted and will be filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request under
17 C.F.R. Sections 200.80(b)(4), 200.83 and 230.406. 

	 	g.	The obligations of the Receiving Party regarding disclosure and use of Confidential Information shall survive the termination of this Agreement and shall continue for ten (10) years
after the date of termination of this Agreement. 

  
 10. PUBLICITY 
  

	10.1	During the Term and thereafter, except as required by applicable law, neither party shall, without securing the prior written consent of the other party, release the terms of this
Agreement to any third party or publicly announce the terms of this Agreement. During the Term and thereafter, either party may disclose the existence and general nature of this agreement in press releases, shareholder reports, quarterly and annual
corporate reports, Securities and Exchange Commission filings and public or private equity offerings; provided however, that each party shall give the other reasonable time to review and comment on written material related to the other party. Any
announcements or similar publicity with respect to the execution of this Agreement shall be agreed upon among the parties in advance of such announcement, and shall not include information that either party reasonably deems inappropriate for
disclosure. 

  
 11. WARRANTIES AND REPRESENTATIONS

  

	11.1	Subject to the provisions set forth in this Section 11.1 and Section 15.4, KNC warrants: (i) that all Commercial Product delivered hereunder shall conform in all material respects
to the Product Specifications at the time of shipment; (ii) that all Commercial Product shall be manufactured substantially in accordance with (a) QSR, including cGMP, as required by the Federal Food, Drug and Cosmetic Act (the “Act”), (b)
the pertinent rules and regulations of the FDA and (c) the EU Medical Device Directive; and (iii) that no Commercial Product delivered hereunder shall at time of shipment be adulterated or misbranded within the meaning of the Act, or within the
meaning of any applicable state or municipal law in which the definitions of adulteration and misbranding are substantially the same as those contained in the Act, provided such laws are constituted and effective at the time of such delivery
(collectively, the “Product Warranties”). These Product Warranties shall be null and void and shall not apply to any Commercial Product which is in any way altered, modified, damaged or replaced by any person other than KNC or which is
abused or misused whether intentionally or accidentally after KNC presents the Commercial Product to the carrier selected by Orthovita. 

  

	11.2	[**]. 

  

	11.3	Orthovita represents and warrants that it is and will remain in material compliance with all applicable laws and governmental authorities and governmental approvals affecting the
use, possession, distribution, labeling, advertising and all forms of promotion in connection with the sale and distribution of Commercial Product, and that it and its representatives will not use or make any deceptive, misleading, manipulative or
intentionally or recklessly inaccurate marketing or advertising materials, packaging, presentations or statements. 

  

	11.4	Each party represents and warrants that it is and will remain in material compliance with all applicable federal, state and local laws, regulations and orders as they may apply to
this Agreement. 

  

	11.5	KNC and Orthovita each represent and warrant for itself that (i) it is duly incorporated and validly existing and in good standing under the laws of the state of its incorporation,
(ii) it has the full right, power, and authority to execute and perform this Agreement, (iii) this Agreement does not conflict with or otherwise result in a breach of any agreement to which such party is a party or to which it is

  

	**	Certain information in these exhibits has been omitted and will be filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request under
17 C.F.R. Sections 200.80(b)(4), 200.83 and 230.406. 

 bound, and (iv) this Agreement represents a valid, legally binding obligation of it, enforceable against
it in accordance with its terms. 
  

	11.6	EXCEPT FOR THE WARRANTIES EXPRESSLY MADE IN THIS ARTICLE 11, NEITHER PARTY MAKES ANY OTHER REPRESENTATION OR WARRANTY, EITHER EXPRESS OR IMPLIED. SPECIFICALLY, KNC MAKES NO
WARRANTIES, EXPRESS OR IMPLIED, OF MERCHANTABILITY OR OF FITNESS FOR A PARTICULAR PURPOSE EVEN WHEN THE USE OR PURPOSE IS KNOWN TO KNC. 

  
 12. ASSIGNMENT 
  

	12.1	Neither party may assign or transfer this Agreement, in whole or in part, to a third party without the prior written consent of the other party, which consent shall not be
unreasonably withheld; provided, however, either party to this Agreement may, upon prior written notice to the other party, assign or otherwise transfer this Agreement, without the other party’s consent, to a third party with whom such party to
this Agreement consolidates or merges or to whom such party to this Agreement sells all or substantially all of its stock or assets. 

  

	12.2	This Agreement will bind and inure to the benefit of the respective successors and permitted assigns, whether so expressed or not. 

  
 13. INSURANCE 
  

	13.1	KNC and Orthovita shall each obtain and maintain at all times during the Term following the First Commercial Sale during the Term, product liability insurance in the amount of at
least [**] and shall deliver to the other party a certificate evidencing such insurance. Each party shall notify the other party in writing at least thirty (30) days prior to cancellation of or any material change in policy. The fulfillment
of the insurance obligations hereunder shall not otherwise relieve a party of any liability assumed by it hereunder or in any way modify its obligations to indemnify the other party under the terms of this Agreement. 

 
 14. TERMINATION 
  

	14.1	KNC shall have the right, but not the obligation, to terminate this Agreement upon sixty (60) days written notice by certified mail to Orthovita under the following circumstances,
unless the circumstances are remedied or cured within said sixty (60) day notice period: 

  

	 	a.	if any amounts due KNC are unpaid, unless in dispute as outlined in Section 7.2; 

  

	 	b.	if Orthovita declares bankruptcy, Orthovita makes an assignment for the benefit of its creditors, if any proceedings take place for reorganization or arrangement for the appointment
of a receiver or trustee to take possession of Orthovita’s assets, or any other proceeding under law for the entry of an order for the relief of creditors shall be instituted which shall not have been vacated, discharged, stayed, satisfied or
bonded pending appeal within forty-five (45) days from the entry thereof or if Orthovita shall become insolvent; or 

  

	 	c.	if Orthovita materially breaches its obligations under this Agreement. 

  

	**	Certain information in these exhibits has been omitted and will be filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request under
17 C.F.R. Sections 200.80(b)(4), 200.83 and 230.406. 

	14.2	Orthovita shall have the right, but not the obligation, to terminate this Agreement upon sixty (60) days written notice by certified mail to KNC under the following circumstances,
unless the circumstances are remedied or cured within said sixty (60) day notice period: 

  

	 	a.	if KNC is unable to supply Orthovita with commercially reasonable quantities, defined as [**]; 

  

	 	b.	if KNC declares bankruptcy, KNC makes an assignment for the benefit of its creditors, if any proceedings take place for reorganization or arrangement for the appointment of a
receiver or trustee to take possession of KNC’s assets, or any other proceeding under law for the entry of an order for the relief of creditors shall be instituted which shall not have been vacated, discharged, stayed, satisfied or bonded
pending appeal within forty-five (45) days from the entry thereof or if KNC shall become insolvent; or 

  

	 	c.	if KNC materially breaches its obligations under this Agreement. 

  

	14.3	Upon termination or expiration of this Agreement for any reason, including the end of the Term as defined in Section 2, nothing herein shall be construed to release either party
from any obligation, which matured prior to the effective date of termination. The obligations of parties undertaken pursuant to Sections 4.6 (h), 7 (other than Section 7.10), 8, 10, 11 and 15, and the definition of any term used in those Sections
shall survive any expiration or termination of this Agreement for a period of five years, except that Section 9 shall survive for a period of ten years and Section 7.10 shall survive as stipulated therein. 

  
 15. INDEMNIFICATION 
  

	15.1	KNC agrees to indemnify, defend and hold Orthovita and any of its officers, directors, affiliates, employees, sales agents, successors and permitted assigns (each, an
“Orthovita Indemnified Party”) harmless from and against any and all Claims of third parties for any Losses arising out of or resulting from: (i) the failure of KNC to ship Commercial Product that meets the Product Specifications in all
material respects or that is manufactured in material compliance with cGMP or other applicable laws and regulations; (ii) any KNC breach of a representation, warranty, covenant or obligation in this Agreement; (iii) any gross negligence,
recklessness or wrongful intentional acts or omissions of KNC or its representatives, directors, officers, employees and agents, in connection with the activities contemplated under this Agreement; or (iv) [**], in each case, only, to the
extent not due to the gross negligence, recklessness or wrongful intentional acts or omissions of an Orthovita Indemnified Party, or to the extent such Claims are otherwise subject to indemnification under Section 15.2. 

  

	15.2	Orthovita agrees to indemnify, defend and hold KNC and any of its officers, directors, affiliates, employees, sales agents, successors and permitted assigns (each, a “KNC
Indemnified Party”) harmless from and against any and all Claims of third parties for any Losses arising out of or resulting from: (i) any actual or alleged defects in the design of any Commercial Product and/or the Orthovita-provided Product
Specifications or Product Drawings; (ii) the use of any Initial Product (in clinical trials or otherwise) or Commercial Product, whether used singly or in combination with other products which resulted in harm, injury or death of any person; (iii)
any Orthovita breach of a representation, warranty, covenant or obligation in this Agreement; (iv) any gross negligence, recklessness or wrongful intentional acts or omissions of Orthovita or its representatives, directors, officers, employees and
agents, in connection with the activities contemplated under this Agreement; 

  

	**	Certain information in these exhibits has been omitted and will be filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request under
17 C.F.R. Sections 200.80(b)(4), 200.83 and 230.406. 

 (v) [**]; or (vi) Orthovita’s advertising, promoting, marketing, distributing and selling
activities of Commercial Product that are not in accordance with law or regulation, in each case, only to the extent not due to the gross negligence, recklessness or wrongful intentional acts or omissions of a KNC Indemnified Party, or to the extent
such Claims are otherwise subject to indemnification under Section 15.1. 
  

	15.3	Procedure for Indemnification. 

  
 (a) Notice. Each party will notify promptly the other if it becomes aware of a Claim (actual or potential) by any third party (a
“Third Party Claim”) for which indemnification may be sought by that party and will give such information with respect thereto as the other party shall reasonably request. If any proceeding (including any governmental investigation) is
instituted involving any party for which such party may seek an indemnity under Section 15.1 or 15.2, as the case may be (the “Indemnified Party”), the Indemnified Party shall not make any admission or statement concerning such Third Party
Claim, but shall promptly notify the other party (the “Indemnifying Party”) orally and in writing and the Indemnifying Party and Indemnified Party shall meet to discuss how to respond to any Third Party Claims that are the subject matter
of such proceeding. The Indemnifying Party shall not be obligated to indemnify the Indemnified Party to the extent any admission or statement made by the Indemnified Party or any failure by such party to notify the Indemnifying Party of the Claim
materially prejudices the defense of such Third Party Claim. 
  
 (b) Defense of Claim. If the Indemnifying Party elects to defend or, if local procedural rules or laws do not permit the same, elects to control the defense of a Third Party Claim, it shall be entitled to do so
provided it gives notice to the Indemnified Party of its intention to do so within fifteen (15) days after the receipt of written notice from the Indemnified Party of the potentially indemnifiable Third Party Claim (the “Litigation
Condition”); provided, that the Indemnifying Party expressly agrees the Indemnifying Party shall be responsible for satisfying and discharging any award made to the third party as a result of such proceedings or settlement amount agreed with
the third party in respect of the Third Party Claim without prejudice to any provision in this Agreement or right at law which will allow the Indemnifying Party subsequently to recover any amount from the Indemnified Party to the extent the
liability under such settlement or award was attributable to the Indemnified Party. Subject to compliance with the Litigation Condition, the Indemnifying Party shall retain counsel reasonably acceptable to the Indemnified Party (such acceptance not
to be unreasonably withheld, conditioned or delayed) to represent the Indemnified Party and shall pay the fees and expenses of such counsel related to such proceeding. In any such proceeding, the Indemnified Party shall have the right to retain its
own counsel, but the fees and expenses of such counsel shall be at the expense of the Indemnified Party. The Indemnified Party shall not settle any Third Party Claim for which it is seeking indemnification without the prior written consent of the
Indemnifying Party, which consent shall not be unreasonably withheld, conditioned or delayed. The Indemnified Party shall, if requested by the Indemnifying Party, cooperate in all reasonable respects in the defense of such Third Party Claim that is
being managed and/or controlled by the Indemnifying Party. The Indemnifying Party shall not, without the prior written consent of the Indemnified Party (which consent shall not be unreasonably withheld, conditioned or delayed), effect any settlement
of any pending or threatened proceeding in which the Indemnified Party is, or based on the same set of facts could have been, a party and indemnity could have been sought hereunder by the 
  

	**	Certain information in these exhibits has been omitted and will be filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request under
17 C.F.R. Sections 200.80(b)(4), 200.83 and 230.406. 

 Indemnified Party, unless such settlement includes an unconditional release of the Indemnified Party from
all liability on claims that are the subject matter of such proceeding. If the Litigation Condition is not met, then neither party shall have the right to control the defense of such Third Party Claim and the parties shall cooperate in and be
consulted on the material aspects of such defense at the each party’s own expense; provided, that if the Indemnifying Party does not satisfy the Litigation Condition, the Indemnifying Party may at any subsequent time during the pendency of the
relevant Third Party Claim irrevocably elect, if permitted by local procedural rules or laws, to defend and/or to control the defense of the relevant Third Party Claim so long as the Indemnifying Party also agrees to pay the reasonable fees and
costs incurred by the Indemnified Party in relation to the defense of such Third Party Claim from the inception of the Third Party Claim until the date the Indemnifying Party assumes the defense or control thereof. 
  
 (c) Assumption of Defense. Notwithstanding anything to the
contrary contained herein, an Indemnified Party shall be entitled to assume the defense of any Third Party Claim with respect to the Indemnified Party, upon written notice to the Indemnifying Party pursuant to this Section 15.3(c), in which case the
Indemnifying Party shall be relieved of liability under Section 15.1 or 15.2, as applicable, solely for such Third Party Claim and related Losses. 
  

	15.4	EXCEPT AS OTHERWISE PROVIDED ELSEWHERE IN THIS AGREEMENT, NONE OF THE PARTIES SHALL BE LIABLE TO THE OTHER FOR ANY INCIDENTAL, INDIRECT, CONSEQUENTIAL, PUNITIVE, EXEMPLARY OR
SPECIAL DAMAGES IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT, INCLUDING WITHOUT LIMITATION, LOSS OF PROFITS OR REVENUES, WHETHER ARISING IN CONTRACT (INCLUDING WITHOUT LIMITATION BREACH OF CONTRACT OR BREACH OF WARRANTY), IN TORT (INCLUDING
WITHOUT LIMITATION NEGLIGENCE AND STRICT LIABILITY), OR ANY OTHER THEORY OF RELIEF, EVEN IF INFORMED OF THE POSSIBILITY OF SUCH DAMAGES AND EVEN IF AS A RESULT ANY REMEDY ARISING HEREUNDER OR UNDER APPLICABLE LAW FAILS FOR ITS ESSENTIAL PURPOSE.
NOTWITHSTANDING ANYTHING TO THE CONTRARY HEREIN, NOTHING IN THIS SECTION 15.4 IS INTENDED TO LIMIT OR RESTRICT THE INDEMNIFICATION RIGHTS OR OBLIGATIONS OF EITHER PARTY UNDER THIS AGREEMENT WITH RESPECT TO THIRD PARTY CLAIMS.

  
 16. MISCELLANEOUS PROVISIONS 

 

	16.1	Independent Contractor. Neither party shall have the right, power or authority to assume or create any obligations or responsibility expressed or implied, on behalf of, or in
the name of, the other party, or to bind the other party in any manner or to any extent whatsoever, without the prior written approval and acceptance of the other party. Each of the parties hereto is an independent contractor for the purposes of
this Agreement and nothing contained herein shall be deemed or construed to create the relationship of agency, partnership or joint venture or any other association except that of an independent contractor relationship. 

  

	16.2	Amendment and Waiver. This Agreement may be amended, and any provision of this Agreement may be waived, provided that any such amendment or waiver will be binding on each
party only if such amendment or waiver is set forth in a writing executed by such parties. Waiver of a breach of 

 the Agreement shall not constitute a waiver of any other subsequent breach of the Agreement. The waiver
of any provision of this Agreement shall not constitute a continuing waiver of that provision or a waiver of any other provision of this Agreement. 
  

	16.3	Notices. All notices, demands and other communications to be given or delivered under or by reason of the provisions of this Agreement will be in writing and will be deemed
to have been given when personally delivered or mailed by overnight mail, return receipt requested. Notices, demands and communications will, unless another address is specified in writing, be sent to the addresses set forth as follows:

  

					
	 If to ORTHOVITA:
	 	Antony Koblish	 	 
	 	 	 President and CEO
 Orthovita,
Inc.
 45 Great Valley Parkway
 Malvern, PA 19355
	 	 

  

					
	 If to KNC:
	 	Joseph W. Kaufmann	 	 
	 	 	 President and CEO
 Kensey Nash Corporation
 55 East Uwchlan Avenue
 Exton, PA 19341
	 	 

  

	16.4	Severability. Whenever possible, each provision of this Agreement will be interpreted in such a manner as to be effective and valid under applicable law, but if any provision
of this Agreement is held to be prohibited by or invalid under applicable law, such provision will be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions
of this Agreement. 

  

	16.5	Complete Agreement. This document and the documents referred to herein contain the complete agreement between the parties and supersede all prior understandings, agreements
and representations by or between the parties, written or oral, which may have related to the subject matter hereof in any way. 

  

	16.6	Counterparts. This Agreement may be executed in one or more counterparts all of which taken together will constitute one and the same instrument. 

  

	16.7	Governing Law. The law of the Commonwealth of Pennsylvania will govern, without regard to the conflicts of law provisions thereof, all questions concerning the construction,
validity and interpretation of this Agreement and the performance of the obligations imposed by this Agreement. 

  

	16.8	Headings. Section headings used in this Agreement are for convenience only and form no part or in any way modify or define the text of meaning or any provision of this
Agreement. 

  

	16.9	Force Majeure. Neither party shall be liable or deemed in default for failure to perform any duty or obligation that such party may have under this Agreement where such
failure has been directly or indirectly caused by any act of God, fire, war, or any other cause outside the reasonable control of that party, and occurring without its fault or negligence, including without limitation, transportation delays of
carriers or suppliers or the happening of unforeseen acts of misfortune or casualty by 

 which performance hereunder is delayed or prevented. The party whose performance has been so interrupted
shall give the other party prompt notice of the interruption and the cause thereof, and shall use its commercially reasonable efforts to resume full performance of this Agreement as soon as possible. 
  
 IN WITNESS WHEREOF, the parties have executed this Agreement through their
duly authorized representatives as of the date first written above. 
  

									
	 ORTHOVITA, INC
	 	 	 	 KENSEY NASH CORPORATION

					
	 By:
	 	 /S/    ANTONY KOBLISH
	 	 	 	By:	 	 /S/    JOSEPH W.
KAUFMANN

	 	 	 Antony Koblish
	 	 	 	 	 	 Joseph W. Kaufmann

 SCHEDULE A – DEVELOPMENT PLAN 
  
 General 
  

	 	•	Orthovita shall be responsible for maintaining a design history file in accordance with design controls throughout the development process for all of the Initial Products.

  

	 	•	In general, the three Initial Products will be developed in parallel, dictated from time to time by varying development issues and timeframes, and Orthovita priorities, provided
however there is a recognition by both parties that resources available to the Development Plan are not unlimited. 

  

	 	•	The goal of the Development Plan is to have one or more submissions to the FDA for 510K products by the end of 2003. 

  

	 	•	Prior to commercialization of any Initial Product, each party will be allowed to conduct a full Quality System Audit of the other party. 

  

	 	•	It is anticipated that from time to time throughout the Development Program, that the parties will discuss and give preliminary targets for certain items to be negotiated concerning
the commercialization of the Initial Products, including Transfer Prices, final Product Specifications, lead times, etc. The parties expect to work in good faith to identify concerns related to these and other topics as soon as reasonably practical
and work in good faith to resolve them. 

  
 [**]

  
 Progress as of the Execution Date of the Agreement: 
  

	 	•	[**] 

	 	•	Preliminary feasibility established by in-situ, non-survival animal evaluations of initial concept prototypes for both concepts 

	 	•	Prototypes developed for 6-month canine study for [**] 

	 	•	Six-month canine study initiated for both concepts 

	 	•	Preliminary designs presented by Orthovita for surgeon feedback 

  
 [**] 
  
 Progress to date: 

	 	•	Product concept established 

	 	•	Preliminary feasibility established by in-situ, non-survival animal evaluations of initial concept prototypes 

	 	•	Parts developed for six month canine study 

	 	•	Six month canine study initiated 

  
 [**] 
  

	**	Certain information in these exhibits has been omitted and will be filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request under
17 C.F.R. Sections 200.80(b)(4), 200.83 and 230.406. 

 Progress to date: 

	 	•	Product concept established 

	 	•	Prototypes are being developed by KNC 

  
 Next Steps for Each of the Initial Products: 
  
 [**] 
  

	**	Certain information in these exhibits has been omitted and will be filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request under
17 C.F.R. Sections 200.80(b)(4), 200.83 and 230.406.Anthony Koblish Employment Agreement

 Exhibit 10.2 
  
 EMPLOYMENT AGREEMENT 
  

EMPLOYMENT AGREEMENT (the “Agreement”) entered into as of April 23, 2003 by and between Orthovita, Inc., a Pennsylvania corporation (the
“Company”), and Antony Koblish, an employee of the Company (“Koblish”). 
  
 WHEREAS, the Company wishes to employ Koblish as its President and Chief Executive Officer, and to elect Koblish as its Chief Executive Officer as provided in Section 1.2 herein, and both parties desire to enter into
an employment agreement to reflect Koblish’s present position with the Company upon the terms and conditions set forth herein. 
  
 NOW, THEREFORE, the parties hereto, intending to be legally bound, hereby agree as follows: 
  
 1.0 Employment. The Company hereby employs Koblish as its President and Chief Executive Officer. Koblish hereby
accepts such employment and agrees to perform his duties and responsibilities, in accordance with terms, conditions and provisions hereinafter set forth. 
  
 1.1 Employment Term. The term of Koblish’s employment under this Agreement shall commence as of the date hereof (the “Effective
Date”) and shall continue in effect through April 23, 2004 with automatic renewal thereafter for one year intervals provided, however, that if a Change in Control shall have occurred during the Employment Term, the Employment Term shall expire
no earlier than twelve (12) months beyond the month in which such Change in Control occurred (the “Employment Term”), unless terminated prior thereto in accordance with the applicable provision of Section 5. 
  
 1.2 Duties and Responsibilities. Koblish shall serve as the
Company’s President and Chief Executive Officer and in such other senior positions, if any, to which he may be elected by the Board of Directors of the Company (the “Board”) during the Employment Term. During the Employment Term,
Koblish shall perform all duties and accept all responsibilities incident to, and not inconsistent with, such positions. 
  
 1.3 Extent of Service. During the Employment Term, Koblish agrees to use his best efforts to carry out his duties and responsibilities under
Section 1.2 hereof and, consistent with the other provisions of this Agreement, to devote substantially all his business time, attention, and energy thereto except to the extent required by Koblish’s outside board directorships, civic or
charitable activities held on the date of this Agreement. Koblish agrees not to become engaged in any additional business, civic or charitable activity which, in the Board’s reasonable judgment, is likely to interfere materially with his
ability to discharge his duties and responsibilities to the Company. 
  
 1.4 Base Salary. For all the services rendered by Koblish hereunder, the Company shall pay Koblish a base salary at the annual rate of $225,000 plus an automobile allowance of $800.00 per calendar month (“Base Salary”),
payable in installments at such times as the Company customarily pays its other senior level Officers (but in any event no less often than 
  

 1 

 monthly). Koblish’s Base Salary shall be reviewed and may be appropriately adjusted at such time by the Board
pursuant to its normal performance review policies for senior level Officers upon his election as CEO; such increased Base Salary, if any, is hereafter referred to as “Increased Base Salary”. 
  
 1.5 Retirement and Benefit Coverages. Koblish shall be eligible to
participate in any pension plans, retirement plans and any health, accident, general liability, directors and officers liability, or disability insurance, sick leave or other benefit plans or programs made available to other similarly situated
employees of the Company (the “Plans”) as long as they are kept in force by the Company and provided Koblish meets the eligibility requirements and other terms, conditions and restrictions of the respective Plans. In addition, Koblish
shall be entitled to the Company’s regular holiday and vacation policy and any other perequisites provided by the Company to its senior level Officers. 
  
 1.6 Stock Options/Stock Awards/Benefits. In the event that (i) Koblish’s employment is terminated by the Company or a successor entity
pursuant to Section 5.4 or (ii) Koblish resigns from the Company pursuant to Section 5.5 or (iii) there is a Change of Control as defined in Section 6, then one hundred percent (100%) of any stock option, restricted stock or other stock awards
granted Koblish that have not yet become exercisable or vested shall become exercisable or vested on the effective date of the event set forth in (i), (ii) or (iii) of this sentence and Koblish shall become entitled to the payments set forth in
Sections 5.4 or 5.5, as applicable. Subject to the discretion of the Board, Koblish shall be eligible to receive additional grants of stock options from time to time in the future, on such terms and subject to such conditions as the Board shall
determine as of the date of any such grant. 
  
 1.7 Life
Insurance. During the Employment Term, the Company shall maintain, under an arrangement satisfactory to the Company, $3,000,000 of life insurance on the life of Koblish. Koblish shall have the right to designate the beneficiary of such insurance
policy. The Company may maintain term life insurance, whole life insurance or such other form of insurance as it deems appropriate. 
  
 1.8 Incentive Programs. Koblish shall be entitled to participate in any short-term or long-term incentive compensation programs established by the
Company for its senior level Officers generally (“Incentive Programs”). Payments under such Incentive Programs shall depend upon achievement of certain business and individual performance targets specified and approved by the Board;
provided, however, that Koblish’s “target opportunity” under any such Incentive Program shall be based on 50% of annual salary and at least at the highest level of target award for any other senior Officer. 
  
 2.0 Confidential Information. Koblish acknowledges that, by reason of
his employment by and service to the Company before and during the Employment Term, he has had and will continue to have access to certain confidential and proprietary information relating to the Company’s business, which may include, but is
not limited to, trade secrets as defined by Pennsylvania Law, customer information, supplier information, cost and pricing information, marketing and sales techniques, strategies and programs, proprietary computer programs and software and financial
information (collectively referred to as “Confidential Information”). 
  

 2 

 Koblish acknowledges that such Confidential Information is a valuable and unique asset of the Company and Koblish
covenants that he will not at any time during the Employment Term use any Confidential Information or divulge or disclose any Confidential Information to any person, firm or corporation except in connection with Koblish’s good faith belief as
to the proper performance of his duties for the Company. Koblish also covenants that, for a period of three (3) years after the termination of his employment, directly or indirectly, he will not use any Confidential Information for any purpose or
divulge or disclose any Confidential Information to any person, firm or corporation, unless such information is in the public domain through no fault of Koblish or except when required to do so by a court of law, by any governmental agency having
supervisory authority over the business of the Company or over Koblish or by any administrative or legislative body (including a committee thereof) which Koblish reasonably believes has apparent jurisdiction to order him to divulge, disclose or make
accessible such information, in which case Koblish will inform the Company in writing promptly of such required disclosure. 
  
 2.1 Intellectual Property. Koblish will communicate to the Company any and all novel ideas, concepts, inventions, processes, and
improvements, patentable or unpatentable, made or conceived by him, either solely or jointly with others, from the time of entering the Company’s employ until he leaves, along the line of the Company’s business, or resulting from or
suggested by any work which he may do for the Company, or at its request, and he will, at all times during his employment with the Company and after his termination for any reason, assist the Company in every proper way (at the Company’s
expense), to obtain for the Company’s own benefit patents for any or all of these ideas, concepts, inventions, processes and improvements in the United States and any and all foreign countries, if patentable, by executing and delivering to the
Company any and all applications, assignments, and other instruments, by giving evidence and testimony, and by executing and delivering to the Company all drawings, blueprints, notes, and specifications deemed necessary by the Company in order to
apply for and obtain letters patent of the United States or foreign countries for such ideas, concepts, inventions, processes and improvements, and Koblish does hereby assign and will assign and convey to the Company his entire right, title and
interest in and to all such ideas, concepts, inventions, processes, and improvements, and all patent applications and patents thereon. Koblish further agrees to conduct himself as described above after leaving the Company’s employment as to all
ideas, concepts, inventions, processes and improvements conceived or disclosed while with the Company. 
  
 3.0 Non-Competition; Non-Solicitation. 
  
 (a) During the Employment Term and for a period of eighteen (18) months thereafter, Koblish will not, except with the prior written
consent of the Board, directly or indirectly own, manage, operate, join, control, finance or participate in the ownership, management, operation, control or financing of, or be connected as an officer, director, employee, partner, principal, agent,
representative, consultant or otherwise with, or use or permit his name to be used in connection with, any business or enterprise that is engaged in a geographic area in which the Company or any of its affiliates is operating either during the
Employment Term or on the date Koblish’s employment terminates, as applicable, (whether or not such business is physically located within those areas) (the “Geographic Area”), in any biomaterials business that is directly competitive
to a business from which the Company or any 
  

 3 

 of its affiliates derive at least five percent of its respective gross revenues either during the
Employment Term or on the date Koblish’s employment terminates, as applicable (“Competing Business”). It is recognized by Koblish that the business of the Company and its affiliates and Koblish’s connection therewith is or will
be involved in activity throughout the Geographic Area, and that more limited geographical limitations on this non-competition covenant are therefore not appropriate. 
  
 (b) The foregoing restrictions shall not be construed to prohibit the ownership by Koblish of less than five
percent of any class of securities of any corporation which is engaged in any of the foregoing businesses having a class of securities registered pursuant to the Securities Exchange Act of 1934 (the “Exchange Act”), provided that such
ownership represents a passive investment and that neither Koblish nor any group of persons including Koblish in any way, either directly or indirectly, manages or exercises control of any such corporation, guarantees any of its financial
obligations, otherwise takes any part in its business, other than exercising his rights as a shareholder, or seeks to do any of the foregoing. 
  
 (c) Koblish further covenants and agrees that, during the Employment Term and for the period of eighteen (18) months thereafter, Koblish
will not, without the prior written consent of the Company, personally solicit for a Competing Business any customer that was a customer of the Company or any of its affiliates during the Employment Term or on the date on which Koblish’s
employment terminates or any person who is a managerial or higher level employee of the Company at the date Koblish’s employment terminates. The foregoing covenant of Koblish shall not apply to any person after twelve months have elapsed
subsequent to the date on which such person’s employment by the Company has terminated. 
  
 4.0 Equitable Relief. 
  
 (a) Koblish acknowledges and agrees that the restrictions contained in Sections 2 and 3 are reasonable and necessary to protect and preserve the legitimate interest, properties, goodwill and business of the Company,
that the Company would not have entered into this Agreement in the absence of such restrictions and that irreparable injury will be suffered by the Company should Koblish’s breach any of the provisions of Sections 2 and 3. Koblish represents
and acknowledges that (i) he has been advised by the Company to consult his own legal counsel in respect of this Agreement, and (ii) he has had full opportunity, prior to execution of this Agreement, to review thoroughly this Agreement with his
counsel. 
  
 (b) Koblish further acknowledges and
agrees that a breach of any of the restrictions in Sections 2 and 3 cannot be adequately compensated by monetary damages. Koblish agrees that the Company shall be entitled to seek preliminary injunctive relief, without the necessity of proving
actual damages. In the event that any of the provisions of Sections 2 or 3 hereof should ever be adjudicated to exceed the time, geographic, service, or other limitations permitted by applicable law in any jurisdiction, it is the intention of the
parties that the provision shall be amended to the extent of the maximum time, geographic, service, or other limitations permitted by applicable law, that such amendment shall apply only within the jurisdiction of the 
  

 4 

 court that made such adjudication and that the provision otherwise be enforced to the maximum extent
permitted by law. 
  
 (c) Koblish irrevocably and
unconditionally (i) agrees that any suit, action or other legal proceeding arising out of this Agreement, including, without limitation, any action commenced by the Company for preliminary and permanent injunctive relief and other equitable relief,
may be brought in the United States District Court for the Eastern District of Pennsylvania, or if such court does not have jurisdiction or will not accept jurisdiction, in any court of general jurisdiction in Chester County, Pennsylvania, (ii)
consents to the non-exclusive jurisdiction of either such court in any such suit, action or proceeding, and (iii) waives any objection which Koblish may have to the laying of venue of any such suit, action or proceeding in either such court. Koblish
also irrevocably and unconditionally consents to the service of any process, pleadings, notices or other papers at the address set forth in the notice provisions of Section 12 hereof. 
  
 5.0 Termination. The Employment Term shall terminate upon the occurrence of any one of the following events:

  
 5.1 Disability. The Company may terminate the
Employment Term, in compliance with applicable law, if Koblish is unable substantially to perform the essential duties and responsibilities hereunder to the full extent required by the Board by reason of mental or physical illness, injury or any
other cause for six consecutive months, or for more than nine months in the aggregate during any period of twelve consecutive calendar months (a “Disability”); provided, however, that the Company shall continue to pay Koblish his Base
Salary or Increased Base Salary, as applicable, until termination of the Employment Term. At the date of such termination the Company shall prepare and execute a release substantially in the form attached hereto as Annex 1, (the
“Release”), and present the Release for execution to Koblish, or Koblish’s representative should he lack capacity to execute the Release. Upon execution of the Release by Koblish, or his personal representative, as the case may be,
Koblish shall be entitled to receive all payments and benefits to the same extent and at the same time as specified in Section 5.4(b), offset by any amounts Koblish receives under any long term disability program maintained by the Company.
Otherwise, in the event of Disability, the Company shall have no further liability or obligation to Koblish under this Agreement except as set forth in the Release. In the event of any dispute under this Section 5.1 and to the extent determined by
the Board to be job-related and consistent with business necessity, Koblish shall submit to a physical examination by a licensed physician experienced in disability examination selected by the Board and approved by Koblish, such approval not to be
unreasonably withheld. 
  
 5.2 Death. The Employment Term
shall terminate on the date of Koblish’s death. In such event, the Company shall pay to Koblish’s executors, legal representatives or administrators, as applicable, an amount equal to the installment of his Base Salary set forth in Section
1.4 hereof or Increased Base Salary, as applicable, for the full month in which he dies, and all unreimbursed expenses and unused vacation time. If Koblish dies while an employee of the Company, the designated beneficiary, or if no such beneficiary
has been designated, Koblish’s estate, shall be entitled to receive (i) the proceeds of the life insurance policy described in Section 1.7 and (ii) a payment from the Company of an amount equal to the benefits 
  

 5 

 calculated as of the date of death pursuant to Section 5.4(a)(ii), on the basis that the death of Koblish is equivalent
to termination without cause. Otherwise, the Company shall have no further liability or obligation under this Agreement to his executors, legal representatives, administrators, heirs or assigns or any other person claiming under or through him.

  
 5.3. Cause. The Company may terminate the Employment
Term at any time for “Cause” upon 30 days’ written notice to Koblish, in which event all payments under this Agreement shall cease, except for (i) Base Salary, or Increased Base Salary, as applicable, to the extent already earned and
a payment equal to any unreimbursed expenses and unused vacation, which shall be paid in a single lump sum on the day the Employment Term terminates, and (ii) any other benefits in accordance with the terms of any applicable Plans and Incentive
Programs of the Company. For purposes of this Agreement, Koblish’s employment may be terminated for “cause” if (i) Koblish is convicted of a felony, (ii) in the reasonable determination of the Board, Koblish has committed an
intentional act of fraud, embezzlement, or theft in connection with Koblish’s duties in the course of his employment with the Company, or engaged in gross negligence in the course of his employment with the Company, (iii) Koblish intentionally
breached his obligations under this Agreement, including inattention to or neglect of duties and shall not have remedied such breach within 30 days after receiving written notice from the Board specifying the details thereof, provided, however, that
in any case under this clause (iii), the act or failure to act by Koblish is materially harmful to the business of the Company, and (iv) the failure by Koblish to follow the lawful directives of the Company’s Chairman or its Board of Directors,
provided that (other than in the case of those actions or omissions set forth in clause (i) and (ii) above) Koblish shall have been given reasonably detailed notice that such an event constituting cause for termination has occurred and shall have
been given at least 30 days opportunity to take remedial action but shall have failed or refused to do so. For purposes of this Agreement, an act or omission on the part of Koblish shall be deemed “intentional” or gross negligence only if
it was done by Koblish in bad faith, not merely an error in judgment, and without reasonable belief that the act or omission was in the best interest of the Company. In the event of a dispute concerning application of the words intentional or gross
negligence as used in this Section 5.3, no claim by the Company that Cause exists shall be given effect unless the Company establishes to the Board by clear and convincing evidence that Cause exists. 
  
 5.4. Termination Without Cause. 
  
 (a) The Company may terminate Koblish without cause, at any
time, from the position in which he is employed hereunder (on which date the Employment Term shall be deemed to have ended) upon not less than 30 days’ prior written notice to Koblish; provided, however, that, commencing on the date of such
notice, Koblish shall be under no obligation to render any additional services to the Company and shall be allowed to seek other employment. Upon such termination, except as provided in Section 5.4(b) below, Koblish shall be entitled to receive (i)
Base Salary or Increased Base Salary, as applicable, to the extent already earned and for the remaining term of his employment under this agreement, and a payment equal to any unused vacation, unreimbursed expenses, which shall be paid in a single
lump sum on the day the Employment Term ends, and (ii) any other benefits in accordance with the terms of any Plans and Incentive Programs of the Company. 
  

 6 

 (b) Notwithstanding the foregoing, upon such termination, the Company shall prepare and
execute the Release and present the Release to Koblish for execution. Upon execution of the Release by Koblish, he shall be entitled to receive, commencing on the eighth day following execution of the Release, in lieu of the Company obligations
described in Subsection (a) of this Section, which Koblish agrees to waive, (i) continuation for eighteen (18) months of Koblish’s current Base Salary, or Increased Base Salary, as applicable, in accordance with Section 1.4 (without regard to
Koblish’s removal), (ii) any other amounts earned, vested, or owing but not yet paid under Section 1.1 through 1.8 above, (iii) a pro-rata portion of any Incentive Programs to the extent that such amount would have been earned in accordance
with the terms of such Incentive Programs specified in Section 1.8 above for the then current fiscal year of the Company, without regard to a requirement, if any, set forth in Incentive Programs of employment with the Company at date of payment
under such Incentive Programs (iv) a payment equal to any unused vacation and unreimbursed expenses, (v) any other benefits in accordance with the terms of any Plans and Incentive Programs of the Company without regard to a requirement, if any, set
forth in Plans or Incentive Programs of employment with the Company at date of payment under such Plans or Incentive Programs, and (vi) to the extent not provided in (v) directly above, health insurance for Koblish and eligible family members and
disability insurance for Koblish, for a period of eighteen (18) months from the date of termination pursuant to Section 5.4(a), each with coverage and at a cost identical to that provided Koblish immediately prior to such termination. Upon
Termination Without Cause, Company shall have no liability or obligation to Koblish except as set forth in Section 5.4 and in the Release. 
  
 5.5 Constructive Termination Without Cause. 
  
 (a) Resignation by Koblish for good reason (“Constructive Termination without Cause”) shall mean a termination of Koblish’s
employment at his initiative following the occurrence, without Koblish’s written consent, of (i) a material diminution in Koblish’s duties, responsibilities, authority or status, or a failure of Koblish to have a position reporting
directly to the Board, (ii) a reduction in any amount of Koblish’s Base Salary, or Increased Base Salary, as applicable, (iii) the assignment to Koblish of duties or responsibilities which are materially inconsistent with the duties,
responsibilities, authority, or status of his position as defined in Section 1.2 above or which materially impair Koblish’s ability to function in his then current position, or (iv) a failure of the Company to comply with any of the material
terms of this Agreement, provided that (other than in the case of those actions or omissions set forth in clause (ii) above) the Company shall have been given reasonably detailed notice that such an event constituting cause for termination has
occurred and shall have been given at least 30 days opportunity to take remedial action but shall have failed or refused to do so. 
  
 (b) In the event of a Constructive Termination Without Cause, the Company shall prepare and execute the Release and present the Release to
Koblish for execution. Upon execution of the Release by Koblish, he shall be entitled to receive all amounts and benefits to the same extent and at the same time as specified in Section 5.4(b). In the event Koblish refuses 
  

 7 

 to execute the Release (or revokes the Release), he shall receive only the amounts and benefits to the
same extent and at the same time as specified in Section 5.4(a). 
  
 (c) Prior to resigning under this Section, Koblish shall give written notice to the Board and offer a 30-day period for the Company to cure. If no cure has been effected by the end of the applicable cure period,
Koblish may resign immediately. The Company may not terminate Koblish pursuant to Section 5.3 or 5.4 subsequent to the date of the written notice provided pursuant to this Section 5.5(c). 
  
 5.6. Voluntary Termination. Koblish may voluntarily terminate the Employment Term upon 30 days’ prior written
notice for any reason. In such event, Koblish shall be entitled only to (i) Base Salary, or Increased Base Salary, as applicable, to the extent already earned and a payment equal to any unused vacation, and unreimbursed expense which shall be paid
in a single lump sum on the day the Employment Term terminates, and (ii) any other benefits in accordance with the terms of any Plans and Incentive Programs of the Company. A voluntary termination under this Section 5.6 shall not be deemed a breach
of this Agreement. 
  
 5.7 Termination at End of Employment
Term. Notwithstanding Section 5.6, if Koblish’s employment with the Company is terminated or not renewed at the end of an Employment Term by the Company, the Company shall prepare and execute the Release and present the Release to Koblish
for execution. Upon execution of the Release by Koblish, the Company shall pay to Koblish as severance compensation the amounts described in Section 5.4(b), but with Koblish’s Base Salary, or Increased Base Salary, as applicable, to continue
under Section 5.4(b)(i) for eighteen (18) months after termination of employment. The payments under this Section 5.7 shall be made in lieu of the payments described in Section 5.6, which Koblish hereby agrees to waive. In the event Koblish refuses
to execute the Release (or revokes the Release), Koblish shall receive only amounts and benefits specified in Section 5.6. 
  
 5.8 Mitigation. Executive shall be required to mitigate the amount of any payment or benefit provided for in Sections 5.4(b), 5.5(b) and 5.7, by
seeking other employment or otherwise there shall be offset against amounts due Executive under this Agreement on account of any remuneration attributable to any subsequent employment that he may obtain. The Company’s obligations to make
payments under this Agreement and otherwise to perform its obligations hereunder shall not be affected by any circumstances, including, without limitation, any set-off, counterclaim, recoupment, defense or other right which the Company may have
against Executive or others. 
  
 6.0 Change of Control

  
 (a) Notwithstanding anything in this
Agreement to the contrary, if it is determined that any amount or benefit to be paid or provided under this Agreement or otherwise pursuant to or by reason of any other agreement, policy, plan, program or arrangement by the Company to or for the
benefit of Koblish would be an “excess parachute payment,” within the meaning of section 280G of the Code, or any successor provision thereof, then the payments and benefits to be paid or provided under this Agreement shall be reduced to
the minimum extent 
  

 8 

 necessary (but in no event no less than zero) so that no portion of any such payment or benefit, as so
reduced, constitutes an excess parachute payment as therein defined. The fact that Koblish’s right to payments or benefits may be reduced by reason of the limitations contained in this Section 6, shall not of itself limit or otherwise affect
any other rights of Koblish other than pursuant to this Agreement. 
  
 (b) All determinations to be made under this Section 6 shall be made by the Company’s independent public accounting firm as in effect immediately prior to the Change of Control (the “Accounting Firm”),
which firm shall provide its determinations and any supporting calculations to the Company and Chief Executive Officer within 10 business days of the event that gives rise to the “excess parachute payment.” Any such determination by the
Accounting Firm shall be binding upon the Company and Koblish. Koblish shall in his sole discretion determine which and how much of the payments or benefits shall be eliminated or reduced consistent with the requirements of this Section 6. Within
five days after Koblish’s determination, the Company shall pay (or cause to be paid) or distribute (or cause to be distributed) to or for the benefit of Koblish such amounts as are then due to Koblish under this Agreement. In the event that
Koblish fails to make such designation within 20 business days of his notice that such payments or benefits must be eliminated or reduced to comply with this Section 6 of the Agreement, the Company may effect such reduction in any manner it deems
appropriate 
  
 (i) Within two years after the
event that gives rise to the “excess parachute payment,” the Accounting Firm shall review the determination made by it pursuant to the preceding paragraph. If the Accounting Firm determines that any payments will have been made by the
Company which should not have been made (“Overpayment”), consistent with the calculations required to be made hereunder, any such Overpayment shall be treated for all purposes as a loan to Koblish which Koblish shall repay to the Company,
together with interest at the applicable Federal rate provided for in Section 7872(f)(2) of the Code (the “Federal Rate”). In the event that the Accounting Firm determines that additional payments which have not been made by the Company
could have been made (“Underpayment”), consistent with the calculations required to be made hereunder, any such Underpayment shall be promptly paid by the Company to or for the benefit of Koblish, together with interest at the Federal
Rate. 
  
 (ii) All of the fees and expenses of
the Accounting Firm in performing the determinations referred to in subsections (b) and (b)(i) above shall be borne solely by the Company. 
  
 (iii) The limitations of this Section 6(b) shall only apply if payments under this Agreement are subject to Section 280G at the time of
the Change of Control. If payments under this Agreement would not be subject to Section 280G if the shareholders of the Company approved the payments, the Company shall use its best efforts to procure the necessary shareholder approval of the
payments in a timely manner. If the shareholders approve the payments so that Section 280G does not apply, the Company shall make payments under this Agreement without regard to this Section 6(b). 
  

 9 

 (c) A “Change of Control” shall be deemed to have occurred if the event set
forth in any one of the following paragraphs shall have occurred: 
  
 (i) Any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act other than a person who is a shareholder of the Company as of the effective date of this Agreement) is or becomes a
“beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing more than 50% of the combined voting power of the then outstanding securities of the Company, as
determined by the Board of Directors of the Company; or 
  
 (ii) The shareholders of the Company approve (or, if shareholder approval is not required, the Board approves) an agreement providing for (i) the merger, consolidation or other form of business combination of the
Company, or any direct or indirect subsidiary of the Company, with another corporation and the shareholders of the Company, immediately prior to such transaction, will not beneficially own, immediately after such transaction, shares of the Company
or the surviving entity or any parent thereof, entitling the shareholders of the Company to vote more than 50% of all shares of the Company, or the surviving entity or any parent thereof which would be entitled in the election of directors (without
consideration of the rights of any class of stock to elect directors by a separate class vote), (ii) the sale or other disposition of all or substantially all of the assets of the Company, or (iii) a liquidation or dissolution of the Company; or

  
 (iii) Individuals who are Continuing
Directors cease to constitute a majority of the members of the Board (“Continuing Directors” for this purpose being the members of the Board on the date of adoption of this Agreement, provided that any person becoming a member of the Board
subsequent to such date whose election or nomination for election was supported by two-thirds of the Directors who then comprised the Continuing Directors shall be considered to be a Continuing Director). 
  
 7.0 Survivorship. The respective rights and obligations of the parties
hereunder shall survive any termination of Koblish’s employment and the Employment Term to the extent necessary to the intended preservation of such rights and obligations. 
  
 8.0 Settlement of Disputes; Arbitration; Expenses. All claims by Koblish for benefits under this Agreement shall be
directed to and determined by the Board and shall be in writing. Any denial by the Board of a claim for benefits under this Agreement shall be delivered to Koblish in writing and shall set forth the specific reasons for the denial and the specific
provisions of this Agreement relied upon. The Board shall afford a reasonable opportunity for a review of the decision denying a claim and shall further allow to appeal to the Board a decision of the Board within sixty (60) days after notification
by the Board that Koblish’s claim has been denied. Any further dispute under the provisions of this Agreement (other than a dispute in which the primary relief sought is an equitable remedy such as an injunction) shall be settled by arbitration
in the City of Philadelphia, Pennsylvania in accordance with the National Rules for the Resolution of Employment Disputes then in effect of the American Arbitration Association, before a panel of three arbitrators, two of whom shall be selected by
the Company and Koblish, 
  

 10 

 respectively, and the third of whom shall be selected by the other two arbitrators. Any award entered by the arbitrators
shall be final, binding and nonappealable and judgment may be entered thereon by either party in accordance with applicable law in any court of competent jurisdiction. This arbitration provision shall be specifically enforceable. The arbitrators
shall have no authority to modify any provision of this Agreement or to award a remedy for a dispute involving this Agreement other than a benefit specifically provided under or by virtue of the Agreement. The Company shall be responsible for all of
the fees of the American Arbitration Association and the arbitrators and any expenses relating to the conduct of the arbitration as well as Koblish’s reasonable legal fees and expenses. The arbitrators shall, in any other event, determine who
shall pay Koblish’s legal fees and expenses. 
  
 9.0 No
Attachment. Except as required by law, no right to receive payments under this Agreement shall be subject to anticipation, commutation, alienation, sale, assignment, encumbrance, charge, pledge, or hypothecation or to execution, attachment,
levy, or similar process or assignment by operation of law, and any attempt, voluntary or involuntary, to effect any such action shall be null, void and of no effect; provided, however, that nothing in this Section shall preclude the assumption of
such rights by executors, administrators or other legal representatives of Koblish or his estate and their assigning any rights hereunder to the person or persons entitled thereto. 
  
 10.0 Source of Payment. All payments provided for under this Agreement shall be paid in cash from the general funds
of the Company. The Company shall not be required to establish a special or separate fund or other segregation of assets to assure such payments, and, if the Company shall make any investments to aid it in meeting its obligations hereunder, Koblish
shall have no right, title or interest whatever in or to any such investments except as may otherwise be expressly provided in a separate written instrument relating to such investments. Nothing contained in this Agreement, and no action taken
pursuant to its provisions, shall create or be construed to create a trust of any kind, or a fiduciary relationship, between the Company and Koblish or any other person. To the extent that any person acquires a right to receive payments from the
Company hereunder, such right, without prejudice to rights which employees may have, shall be no greater than the right of an unsecured creditor of the Company. 
  

11.0 Notices. All notices and other communications required or permitted hereunder or necessary or convenient in connection herewith shall be in
writing and shall be deemed to have been given when hand delivered or mailed by registered or certified mail, as follows (provided that notice of change of address shall be deemed given only when received): 
  
 If to the Company, to: 
  
 Orthovita, Inc. 
 45 Great Valley Parkway 
 Malvern, PA 19355 
 Att: David S. Joseph, Chairman 
  
 If to Koblish, to: 
  

 11 

 Mr. Antony Koblish 
 405 Old Lincoln Highway 
 Malvern, PA 19355 
  
 or to such other names or
addresses as the Company or Koblish, as the case may be, shall designate by notice to each other person entitled to receive notices in the manner specified in this Section. 
  
 12.0 Contents of Agreement; Amendment and Assignment. 
  
 (a) This Agreement supersedes all prior agreements, including the Employment Agreement dated May 10, 2002,
the Payment in the Event of Your Termination of Employment on a Change of Control of Orthovita, Inc. Agreement dated April 23, 2001 and the Confidentiality and Non-Disclosure Agreement dated December 16, 1998, and sets forth the entire understanding
between the parties hereto with respect to the employment of Koblish by the Company and cannot be changed, modified, extended or terminated except as provided herein or upon written amendment approved by the Company and executed on its behalf by a
duly authorized officer and by Koblish. This Agreement does not amend or modify the provisions of any Plans or Incentive Programs in which Koblish participates or is eligible to participate except as set forth in Sections 1.6 and 5.4(b)(iii) and (v)
hereof. 
  
 (b) All of the terms and provisions
of this Agreement shall be binding upon and inure to the benefit of and be enforceable by the respective heirs, executors, administrators, legal representatives, successors and assigns of the parties hereto, except that the duties and
responsibilities of Koblish hereunder are of a personal nature and shall not be assignable or delegatable in whole or in part by Koblish. The Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation,
reorganization or otherwise) to all or substantially all of the business or assets of the Company, by agreement in form and substance satisfactory to Koblish, expressly to assume and agree to perform this Agreement in the same manner and to the
extent the Company would be required to perform if no such succession had taken place. 
  

 12 

 13.0 Severability. If any provision of this Agreement or application thereof to anyone or under
any circumstances is adjudicated to be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect any other provision or application of this Agreement which can be given effect without the invalid or
unenforceable provision or application and shall not invalidate or render unenforceable such provision or application in any other jurisdiction. If any provision is held void, invalid or unenforceable with respect to particular circumstances, it
shall nevertheless remain in full force and effect in all other circumstances. 
  
 14.0 Remedies Cumulative; No Waiver. No remedy conferred upon a party by this Agreement is intended to be exclusive of any other remedy, and each and every such remedy shall be cumulative and shall be in
addition to any other remedy given hereunder or now or hereafter existing at law or in equity. No delay or omission by a party in exercising any right, remedy or power hereunder or existing at law or in equity shall be construed as a waiver thereof,
and any such right, remedy or power may be exercised by such party from time to time and as often as may be deemed expedient or necessary by such party in its sole discretion. 
  
 15.0 Beneficiaries/References. Koblish shall be entitled, to the extent permitted under any applicable law, to select
and change a beneficiary or beneficiaries to receive any compensation or benefit payable hereunder following Koblish’s death by giving the Company written notice thereof. In the event of Koblish’s death or a judicial determination of his
incompetence, references in this Agreement to Koblish shall be deemed, where appropriate, to refer to his beneficiary, estate or other legal representative. 
  
 16.0 Miscellaneous. All section headings used in this Agreement are for convenience only. This Agreement may be executed in counterparts, each of
which is an original. It shall not be necessary in making proof of this Agreement or any counterpart hereof to produce or account for any of the other counterparts. 
  
 17.0 Withholding. The Company may withhold from any payments under this Agreement all federal, state and local taxes
as the Company is required to withhold pursuant to any law or governmental rule or regulation. Koblish shall bear all expense of, and be solely responsible for, all federal, state and local taxes due with respect to any payment received hereunder
except as otherwise provided with respect to his restricted stock award. 
  
 18.0 Governing Law. This Agreement shall be governed by and interpreted under the laws of the Commonwealth of Pennsylvania without giving effect to any conflict of laws provisions. 
  
 IN WITNESS WHEREOF, the undersigned, intending to be legally bound, have
executed this Agreement as of the date first above written. 
  

 13 

 ORTHOVITA, INC. 
  

									
	 By:
	 	 /s/    David S. Joseph
	 	 	 	 	 	/s/    Antony Koblish
	 	 	Authorized Signature	 	 	 	 	 	Antony Koblish
	 	 	David S. Joseph	 	 	 	 	 	 
	 	 	Chairman of the	 	 	 	 	 	 
	 	 	Board of Directors	 	 	 	 	 	 

	

  

 14 

 Annex 1 
  
 Separation Agreement and General Release 
  
 This Separation Agreement and General Release (Agreement) is made by and between Antony Koblish (EMPLOYEE) and ORTHOVITA, Inc. (ORTHOVITA) effective this
     day of             , 200  . 
  
 EMPLOYEE and ORTHOVITA agree to the following terms in full and final settlement of all matters relating to or arising out of EMPLOYEE’s employment and separation
from employment with ORTHOVITA: 
  

	1.	EMPLOYEE’s employment with ORTHOVITA shall end as of                 ,
200  . ORTHOVITA shall have no obligation, contractual or otherwise, to hire, re-hire or re-employ him in the future. 

  

	2.	It is agreed that for the promises made herein, EMPLOYEE will receive the following considerations: 

  

	 	a.	Continue EMPLOYEE’s semi-monthly salary of $            , minus all payroll deductions required by law or
authorized by EMPLOYEE through the      day of                 , 200  . 

  

	 	b.	Orthovita, Inc will continue your medical benefits thru                 ,
200  . After this period, EMPLOYEE may, upon notice to ORTHOVITA, elect to continue medical coverage under the provisions of COBRA for an additional 18 months by paying the applicable premium. 

  

	 	c.	Except as set forth herein, it is expressly agreed and understood that ORTHOVITA does not have, and will not have, any obligation to provide EMPLOYEE at any time in the future with
any payments, benefits or considerations other than those recited in paragraphs 2(a) through 2(b) above, other than any vested benefits to which EMPLOYEE may be entitled under the terms of ORTHOVITA’s 401(k) Plan. 

  

	3.	Except for the rights created by this agreement, EMPLOYEE and his successors, assigns, heirs and legal representatives, hereby releases, acquits and forever discharges ORTHOVITA and
its representatives, parent and subsidiary corporations (as the case may be), predecessors, successors, affiliates, officers, agents, assigns, employees and attorneys, releasing them from any and all claims, rights, expenses, debts, demands, costs,
contracts, liabilities, obligations, actions, and causes of action of every nature, known or unknown, whether in law or in equity, which he had, now has, or may have which are in any way connected with, or arise out of, any cause whatsoever, from
the beginning of time to the date of this Agreement, including, but not limited to, any and all matters relating to EMPLOYEE’s employment with ORTHOVITA. EMPLOYEE specifically releases and discharges, but not by way of limitation, any
obligation, claim, demand or cause of action based on, or arising out of, any alleged wrongful termination, 

  

 15 

 breach of employment contract, breach of implied covenant of good faith and fair dealing, defamation,
intentional or negligent infliction of emotional distress. EMPLOYEE also releases and discharges any and all claims, rights and/or remedies under Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C.§2000e et seq, the
Employment Retirement Income Security Act of 1974 as amended, 29 U.S.C. §1001 et seq, the Pennsylvania Human Relations Act, as amended, 43 P.S.951 et seq, the Age Discrimination in Employment Act of 1967 as
amended, 29 U.S.C. §621 et seq, the American with Disabilities Act, 42 U.S.C. §12101 et seq, the Family and Medical Leave Act, 29 U.S.C. §2601 et seq, any other federal, state or local statute or regulation
which relates to his employment or its termination as well as all claims for counsel fees or costs. 
  

	4.	EMPLOYEE agrees not to disclose, or discuss with, any person (other than his spouse, attorney and tax or other financial advisor) any of the terms and conditions of this Agreement,
except as may be required by law or regulations, and except as may be required to effectuate the terms of this Agreement. Disclosure of any terms of this Agreement will constitute a material breach of the Agreement. 

  

	5.	EMPLOYEE understands and agrees that in the course of employment with ORTHOVITA, he may have acquired confidential information and Trade Secrets concerning Orthovita business, its
future plans and its methods of doing business, including, without limitation, proprietary information about its products, services, product development, customers, technology, financial circumstances, marketing, pricing, costs, compensation and
other matters (hereinafter collectively called “Trade Secrets”). EMPLOYEE may not reveal or disclose, sell, use, lecture upon, or publish any such Trade Secrets, or authorize anyone else to do so at any time subsequent to his employment
with ORTHOVITA. All ORTHOVITA documents, files, lists and other information of a business nature, whether in hard copy or machine readable form, will be returned to ORTHOVITA by EMPLOYEE forthwith, and any future use of same by EMPLOYEE is
prohibited. 

  

	6.	Neither the negotiation, undertaking or signing of this Separation Agreement and General Release constitutes or operates as an acknowledgment of admission that ORTHOVITA, or any
person acting on behalf of ORTHOVITA, has violated or failed to comply with any provisions of federal or state constitution, statute, law, regulation, municipal ordinance, or principle of common law. This agreement is made voluntarily to provide an
amicable conclusion to his employment relationship with Orthovita. 

  

	7.	This Agreement is the only and complete agreement between EMPLOYEE and ORTHOVITA on or in any way relating to the subject matter hereof. No statements, promises, or representations
have been made by either party to the other and no consideration has been or is offered, promised or expected other than that already received or described in this Agreement. 

  

	8.	EMPLOYEE represents that he has been advised by ORTHOVITA, through this document, that he should discuss this Agreement with an attorney of his own choosing at his own cost, and
that he has carefully read and fully understands all its terms and effects. 

  

 16 

 EMPLOYEE further represents that his decision to execute this Agreement is entirely voluntary and knowing
and without any pressure, coercion or undue influence by ORTHOVITA and in exchange for the consideration decided herein, which he acknowledges is adequate and satisfactory to him and beyond that to which he would otherwise be entitled. 

 

	9.	This Agreement shall be governed by and interpreted and construed in accordance with the laws of the Commonwealth of Pennsylvania. If any provisions of this Agreement shall, for any
reason, be adjudged by any court of competent jurisdiction to be invalid or unenforceable, in whole or in part, such judgment shall not affect, impair or invalidate the remainder of this agreement. The employee agrees not to speak negatively of any
product or service or officer, director, employee or former employee of Orthovita with respect to past or future issues. 

  
 IN WITNESS WHEREOF, and intended to be legally bound hereby, the parties have executed the foregoing Separation Agreement and General Release. 
  

									
	 Dated:
	 	 	 	 	 	 
	 	 	 	 	 	 	Antony Koblish
	 Witness:
	 	 	 	 	 	 	 	 
				
	 ORTHOVITA, Inc.
	 	 	 	 	 	 
					
	 Dated:
	 	 	 	 	 	 By:
	 	 
	 	 	 	 	 	 	 	 	David S. Joseph

  

 17

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