Document:

Exhibit 10.1

 

FIRST AMENDMENT TO

AZIYO BIOLOGICS, INC.

2015 STOCK OPTION/STOCK ISSUANCE PLAN

 

This FIRST AMENDMENT TO AZIYO
BIOLOGICS, INC. 2015 STOCK OPTION/STOCK ISSUANCE PLAN (this “First Amendment”) is dated
as of July 25, 2018.

 

WHEREAS, the Board of Directors and stockholders
of Aziyo Biologics, Inc. (the “Company”) deem it to be in the best interests of the Company to amend
the Aziyo Biologics, Inc. 2015 Stock Option/Stock Issuance Plan (the “Plan”) in order to increase the
aggregate number of the shares of the Company’s Common Stock issuable under the Plan from 4,558,235 to 5,892,544.

 

NOW, THEREFORE, the Plan shall be amended as follows.

 

1.       Amendment
to Section V.A. of the Plan. The reference to “4,558,235” in Section V.A. of the Plan is hereby amended and replaced
with “5,892,544”.

 

2.       Except
as herein amended, the terms and provisions of the Plan shall remain in full force and effect as originally adopted and approved.

 

IN WITNESS WHEREOF, the undersigned hereby
certifies that this First Amendment was duly adopted by the Company effective as of the date first set forth above.

 

	 	AZIYO BIOLOGICS, INC
	 	 
	 	By:	/s/ Jeffrey D. Hamet
	 	 	Name:	Jeffrey D. Hamet
	 	 	Title:	Vice President, Finance and Treasurer

 

     

     

    

 

AZIYO BIOLOGICS, INC.

 

2015 STOCK OPTION/STOCK ISSUANCE PLAN

 

ARTICLE ONE

 

GENERAL PROVISIONS

 

I.              PURPOSE OF THE
PLAN

 

This 2015 Stock Option/Stock Issuance Plan
is intended to promote the interests of Aziyo Biologics, Inc., a Delaware corporation (the “Corporation”)
by providing eligible persons with the opportunity to acquire an equity interest, or otherwise increase their equity interest,
in the Corporation as an incentive for them to remain in the service of the Corporation.

 

Capitalized terms herein shall have the
meanings assigned to such terms herein or in the attached Appendix.

 

II.            STRUCTURE OF
THE PLAN

 

A.            The Plan
shall be divided into two (2) separate equity programs:

 

(1)       the
Option Grant Program under which eligible persons may, at the discretion of the Plan Administrator, be granted options to purchase
shares of Common Stock; and

 

(2)       the
Stock Issuance Program under which eligible persons may, at the discretion of the Plan Administrator, be issued shares of Common
Stock.

 

B.            The
provisions of Articles One and Four shall apply to both equity programs under the Plan and shall accordingly govern the interests
of all persons under the Plan.

 

III.           ADMINISTRATION
OF THE PLAN

 

A.            The
Plan shall be administered by the Board. However, any or all administrative functions otherwise exercisable by the Board may be
delegated to the Committee. Members of the Committee shall serve for such period of time as the Board may determine and shall be
subject to removal by the Board at any time. The Board may also at any time terminate the functions of the Committee and reassume
all powers and authority previously delegated to the Committee.

 

B.            The
Plan Administrator shall have full power and authority (subject to the provisions of the Plan) to establish such rules and
regulations as it may deem appropriate for proper administration of the Plan and to make such determinations under, and issue
such interpretations of, the Plan and any outstanding options or stock issuances thereunder as it may deem necessary or
advisable. Decisions of the Plan Administrator shall be final and binding on all parties who have an interest in the Plan or
any option or stock issuance thereunder.

 

     

     

    

 

IV.           ELIGIBILITY

 

A.            The persons
eligible to participate in the Plan are as follows:

 

(1)       Employees;

 

(2)       non-employee
members of the Board or the non-employee members of the board of directors of any Subsidiary; and

 

(3)       consultants
and other independent advisors who provide services to the Corporation or any Subsidiary.

 

B.            The
Plan Administrator shall have full authority to determine, (i) with respect to the option grants under the Option Grant Program,
which eligible persons are to receive option grants, the time or times when such option grants are to be made, the number of shares
to be covered by each such grant, the status of the granted option as either an Incentive Option or a Non-Statutory Option, the
time or times at which each option is to become exercisable, the vesting schedule (if any) applicable to the option shares, the
exercise price per share, and the maximum term for which the option is to remain outstanding and (ii) with respect to stock issuances
under the Stock Issuance Program, which eligible persons are to receive stock issuances, the time or times when such issuances
are to be made, the number of shares to be issued to each Participant, the vesting schedule (if any) applicable to the issued shares
and the consideration to be paid by the Participant for such shares.

 

C.            The
Plan Administrator shall have the absolute discretion either to grant options in accordance with the Option Grant Program or to
effect stock issuances in accordance with the Stock Issuance Program.

 

V.            STOCK SUBJECT
TO THE PLAN

 

A.            The
stock issuable under the Plan shall be shares of authorized but unissued or reacquired Common Stock. The maximum number of shares
of Common Stock which may be issued over the term of the Plan shall not exceed 4,558,235.

 

B.            Shares
of Common Stock subject to outstanding options shall be available for subsequent issuance under the Plan to the extent (i) the
options expire or terminate for any reason prior to exercise in full or (ii) the options are cancelled in accordance with the cancellation-regrant
provisions of Article Two. Shares issued under the Plan and subsequently repurchased by the Corporation pursuant to the Corporation’s
repurchase rights under the Plan shall also be available for reissuance through one or more subsequent grants under the Plan.

 

    2

     

    

 

C.            Should
any change be made to the Common Stock by reason of any stock split, stock dividend, combination of shares, exchange of shares
or other change affecting the outstanding Common Stock as a class without the Corporation’s receipt of consideration, appropriate
adjustments shall be made to (i) the maximum number and/or class of securities issuable under the Plan and (ii) the number and/or
class of securities and the exercise price per share in effect under each outstanding option. The adjustments determined by the
Plan Administrator shall be final, binding and conclusive. In no event shall any such adjustments be made in connection with the
conversion of one or more outstanding shares of the Corporation’s preferred stock into shares of Common Stock.

 

ARTICLE TWO

 

OPTION GRANT PROGRAM

 

I.            OPTION TERMS

 

Each option shall be evidenced by one or
more documents in the form approved by the Plan Administrator; provided, however, that each such document shall comply
with the terms specified below. Each document evidencing an Incentive Option shall, in addition, be subject to the provisions of
the Plan applicable to such options.

 

A.            Exercise
Price.

 

(1)            The
exercise price per share shall be fixed by the Plan Administrator and, subject to the special requirements of Section II of this
Article Two applicable to Incentive Options, may be equal to, less than or greater than the Fair Market Value per share of Common
Stock on the option grant date.

 

(2)            The
exercise price shall become immediately due upon exercise of the option and shall, subject to the provisions of Section I of Article
Four and the documents evidencing the option, be payable in cash or check made payable to the Corporation. Should the Common Stock
be registered under Section 12(g) of the 1934 Act at the time the option is exercised, then the exercise price may also be paid
in shares of Common Stock held for the requisite period necessary to avoid a charge to the Corporation’s earnings for financial
reporting purposes and valued at Fair Market Value on the Exercise Date.

 

(3)            The
Plan Administrator, in its discretion, may provide for the payment of the exercise price for any option in other forms of consideration
that are acceptable to the Plan Administrator from time to time.

 

B.            Exercise
and Term of Options. Each option shall be exercisable at such time or times, during such period and for such number of
shares as shall be determined by the Plan Administrator, subject to the special requirements of Section II of this Article Two
applicable to Incentive Options, and set forth in the documents evidencing the option. However, no option shall have a term in
excess of ten (10) years measured from the option grant date. If no vesting schedule is specified by the Plan Administrator, the
Optionee shall vest in (i) twenty-five percent (25%) of the shares of Common Stock issuable upon exercise of an option upon completion
of the first one (1) year period of continuous Service from the vesting commencement date specified by the Plan Administrator,
and (ii) the remaining seventy-five percent (75%) of the shares of Common Stock issuable upon exercise of an option, in thirty-six
(36) equal monthly installments of two and eighty-three one hundredths percent (2.083%) of the shares of Common Stock issuable
upon exercise of an option, each such installment to be vested upon completion of each successive month of continuous Service
from the end of such initial one (1) year period (through the date that is four (4) years from such vesting commencement date).

 

    3

     

    

 

C.            Effect
of Termination of Service.

 

(1)            The
following provisions shall govern the exercise of any options held by the Optionee at the time of cessation of Service, subject
to the special requirements of Section II of this Article Two applicable to Incentive Options:

 

(a)            Should
the Optionee’s Service terminate for any reason other than Disability, death or for cause while any option is outstanding,
then the Optionee shall have a period of three (3) months commencing with the date of such cessation of Service, or such other
period of time thereafter as shall be determined by the Plan Administrator and set forth in the documents evidencing the option,
during which to exercise the option. In no event shall an option be exercisable at any time after the expiration of the option
term.

 

(b)            In
the event of a cessation of Service for cause, as determined by the Plan Administrator, while any option is outstanding, then such
option or options shall immediately terminate and be of no further force or effect as of the effective date of such cessation of
Service. The Plan Administrator may, in its sole discretion and without any obligation to do so, waive the termination of an option
which would otherwise occur upon the cessation of Service for cause and as a result such option term shall be subject to paragraph
(a) immediately above.

 

(c)            Should
the Optionee’s Service terminate by reason of Disability while any option is outstanding, then the Optionee shall have a
period of twelve (12) months commencing with the date of such cessation of Service during which to exercise the option. In no event
shall an option be exercisable at any time after the expiration of the option term.

 

(d)            Should
the Optionee die while holding one or more outstanding options, then the personal representative of the Optionee’s estate
or the person or persons to whom the option is transferred pursuant to the Optionee’s will or in accordance with the laws
of descent and distribution shall have a period of twelve (12) months commencing with the date of the Optionee’s death during
which to exercise each such option. In no event shall an option be exercisable at any time after the expiration of the option term.

 

    4

     

    

 

(e)            During
the applicable post-Service exercise period, the option may not be exercised in the aggregate for more than the number of vested
shares for which the option is exercisable on the date of the Optionee’s cessation of Service. Upon the expiration of the
applicable exercise period or, if earlier, upon the expiration of the option term, the option shall terminate and cease to be outstanding
for any vested shares for which the option has not been exercised. However, the option shall, immediately upon the Optionee’s
cessation of Service, terminate and cease to be outstanding to the extent the option is not otherwise at that time exercisable
for vested shares.

 

(2)            The
Plan Administrator shall have the discretion, exercisable either at the time an option is granted or at any time while the option
remains outstanding, to:

 

(a)            extend
the period of time for which the option is to remain exercisable following Optionee’s cessation of Service from the limited
period otherwise in effect for that option to such greater period of time as the Plan Administrator shall deem appropriate, but
in no event beyond the expiration of the option term, and/or

 

(b)            permit
the option to be exercised, during the applicable post-Service exercise period, not only with respect to the number of vested shares
of Common Stock for which such option is exercisable at the time of the Optionee’s cessation of Service but also with respect
to one or more additional installments in which the Optionee would have vested under the option had the Optionee continued in Service.

 

D.            Stockholder
Rights. The holder of an option shall have no stockholder rights with respect to the shares subject to the option until
such person shall have exercised the option, paid the exercise price and become a holder of record of the purchased shares and
until such shares shall have vested.

 

E.            Repurchase
Rights. The Plan Administrator shall have the discretion to grant options which are exercisable for vested or unvested
shares of Common Stock. Should the Optionee cease Service while holding such shares, the Corporation shall have the right to repurchase
unvested shares at the lesser of the exercise price paid per share and the Fair Market Value per share. The terms upon which such
repurchase right shall be exercisable (including the period and procedure for exercise and the appropriate vesting schedule for
the purchased shares) shall be established by the Plan Administrator and set forth in the document evidencing such repurchase right.

 

F.            Prohibited
Transfer of Shares. Until such time as the Common Stock is first registered under Section 12(g) of the 1934 Act, the Optionee
shall not sell, transfer, assign, pledge, encumber or otherwise dispose of any shares of Common Stock issued under the Plan without
the Plan Administrator’s prior written consent. Any sale, transfer, assignment, pledge encumbrance or other disposition made
in contravention of this Paragraph F shall be null and void.

 

    5

     

    

 

G.            Prohibited
Transfer of Options. During the lifetime of the Optionee, the option shall be exercisable only by the Optionee and shall
not be sold, transferred, assigned, pledged, encumbered or otherwise disposed of without the Plan Administrator’s prior written
consent. Any sale, transfer, assignment, pledge encumbrance or other disposition made in contravention of this Paragraph G shall
be null and void.

 

H.            Withholding.
The Corporation’s obligation to deliver shares of Common Stock upon the exercise of any options granted under the Plan shall
be subject to the satisfaction of all applicable Federal, state and local income and employment tax withholding requirements.

 

II.            INCENTIVE OPTIONS

 

The terms specified below shall be applicable
to all Incentive Options. Except as modified by the provisions of this Section II, all the provisions of the Plan shall be applicable
to Incentive Options. Options which are specifically designated as Non-Statutory Options shall not be subject to the terms of this
Section II.

 

A.            Eligibility.
Incentive Options may only be granted to Employees.

 

B.            Exercise
Price. Subject to the special requirements of Paragraph D of this Section II, the exercise price per share shall not be
less than one hundred percent (100%) of the Fair Market Value per share of Common Stock on the option grant date.

 

C.            Dollar
Limitation. The aggregate Fair Market Value of the shares of Common Stock (determined as of the respective date or dates
of grant) for which one or more options granted to any Employee under the Plan (or any other option plan of the Corporation or
any Subsidiary) may for the first time become exercisable as Incentive Options during any one (1) calendar year shall not exceed
the sum of One Hundred Thousand Dollars ($100,000). To the extent the Employee holds two (2) or more such options which become
exercisable for the first time in the same calendar year, the foregoing limitation on the exercisability of such options as Incentive
Options shall be applied on the basis of the order in which such options are granted.

 

D.            10%
Stockholders. If any Employee to whom an Incentive Option is granted is a 10% Stockholder, then the exercise price per
share shall not be less than one hundred ten percent (110%) of the Fair Market Value per share of Common Stock on the option grant
date and the option term shall not exceed five (5) years measured from the option grant date.

 

    6

     

    

 

III.            CORPORATE TRANSACTION

 

A.            The
following provisions shall apply to all options issued under the Plan in the event of a Corporate Transaction unless otherwise
provided in the agreement evidencing the option issued under the Plan. Except as otherwise stated in the agreement evidencing
the option issued under the Plan, in the event of a Corporate Transaction, then, notwithstanding any other provision of the Plan,
the Board shall take one or more of the following actions with respect to the options issued under the Plan, contingent upon the
closing or completion of the Corporate Transaction:

 

(1)            arrange
for the surviving corporation or acquiring corporation (or the surviving or acquiring corporation’s parent company) to assume
or continue the options or to substitute a similar award for the options (including, but not limited to, an award to acquire the
same consideration paid to the stockholders of the Corporation pursuant to the Corporate Transaction);

 

(2)            arrange
for the assignment of any reacquisition or repurchase rights held by the Corporation in respect of Common Stock issued or issuable
upon exercise of the option to the surviving corporation or acquiring corporation (or the surviving or acquiring corporation’s
parent company);

 

(3)            accelerate
the vesting, in whole or in part, of the option or the shares of Common Stock issued or issuable upon exercise of the option (and,
if applicable, the time at which the option may be exercised) to a date prior to the effective time of such Corporate Transaction
as the Board shall determine, with such option terminating if not exercised at or prior to the effective time of the Corporate
Transaction;

 

(4)            arrange
for the lapse of any reacquisition or repurchase rights held by the Corporation with respect to the Common Stock issued or issuable
upon exercise of the option;

 

(5)            cancel
or arrange for the cancellation of the option, to the extent not exercised prior to the effective time of the Corporate Transaction,
in exchange for such cash consideration, if any, as the Board, in its sole discretion, may consider appropriate; and

 

(6)            make
a payment, in such form as may be determined by the Board equal to the excess, if any, of (A) the value of the property the holder
of the option would have received upon the exercise of the option over (B) any exercise price payable by such holder in connection
with such exercise.

 

The Board need not take the same action with respect to all
options issued under the Plan or with respect to all Optionees.

 

B.            The
portion of any Incentive Option accelerated in connection with a Corporate Transaction shall remain exercisable as an Incentive
Option only to the extent that the applicable One Hundred Thousand Dollar ($100,000) limitation is not exceeded. To the extent
such dollar limitation is exceeded, the accelerated portion of such option shall be exercisable as a Non-Statutory Option under
the Federal tax laws.

 

C.            The
grant of options under the Plan shall in no way affect the right of the Corporation to adjust, reclassify, reorganize or otherwise
change its capital or business structure or to merge, consolidate, dissolve, liquidate or sell or transfer all or any part of its
business or assets.

 

    7

     

    

 

IV.            CANCELLATION
AND REGRANT OF OPTIONS

 

The Plan Administrator shall have the authority
to effect, at any time and from time to time, with the consent of the affected option holders, the cancellation of any or all outstanding
options under the Plan and to grant in substitution therefor new options covering the same or different number of shares of Common
Stock but with an exercise price per share based on the Fair Market Value per share of Common Stock on the new option grant date.

 

ARTICLE THREE

 

STOCK ISSUANCE PROGRAM

 

I.            STOCK ISSUANCE
TERMS

 

Shares of Common Stock may be issued under
the Stock Issuance Program through direct and immediate issuances without any intervening option grants. Each such stock issuance
shall be evidenced by a Stock Issuance Agreement which complies with the terms specified below.

 

A.            Purchase
Price.

 

(1)            The
purchase price per share shall be fixed by the Plan Administrator and may be equal to, less than or more than the Fair Market Value
of the Common Stock on the stock issuance date.

 

(2)            Subject
to the provisions of Section I of Article Four, shares of Common Stock may be issued under the Stock Issuance Program for one or
more of the following items of consideration which the Plan Administrator may deem appropriate in each individual instance:

 

(a)            cash
or check made payable to the Corporation; or

 

(b)            past
services rendered to the Corporation or any Subsidiary.

 

    8

     

    

 

B.            Vesting
Provisions.

 

(1)            Shares
of Common Stock issued under the Stock Issuance Program may, in the discretion of the Plan Administrator, be fully and immediately
vested upon issuance or may vest in one or more installments over the Participant’s period of Service or upon attainment
of specified performance objectives. If no vesting schedule is specified by the Plan Administrator, the Participant shall vest
in (i) twenty-five percent (25%) of the shares of Common Stock issued to such Participant under the Stock Issuance Program upon
completion of the first one (1) year period of continuous Service from the vesting commencement date specified by the Plan Administrator,
and (ii) the remaining seventy-five percent (75%) of the shares of Common Stock issued to such Participant under the Stock Issuance
Program, in thirty-six (36) equal monthly installments of two and eighty-three one hundredths percent (2.083%) of the shares of
Common Stock issued to such Participant under the Stock Issuance Program, each such installment to be vested upon completion of
each successive month of continuous Service from the end of such initial one (1) year period (through the date that is four (4)
years from such vesting commencement date). In all other cases, the elements of the vesting schedule applicable to any unvested
shares of Common Stock issued under the Stock Issuance Program, namely:

 

(a)            the
Service period to be completed by the Participant or the performance objectives to be attained,

 

(b)            the
number of installments in which the shares are to vest,

 

(c)            the
interval or intervals (if any) which are to lapse between installments, and

 

(d)            the
effect which death, Disability or other event designated by the Plan Administrator is to have upon the vesting schedule,

 

shall be determined by the Plan Administrator and
incorporated into the Stock Issuance Agreement.

 

(2)            Any
new, substituted or additional securities or other property (including money paid other than as a regular cash dividend) which
the Participant may have the right to receive with respect to the Participant’s unvested shares of Common Stock by reason
of any stock dividend, stock split, recapitalization, combination of shares, exchange of shares or other change affecting the outstanding
Common Stock as a class without the Corporation’s receipt of consideration shall be issued subject to (i) the same vesting
requirements applicable to the Participant’s unvested shares of Common Stock and (ii) such escrow arrangements as the Plan
Administrator shall deem appropriate.

 

(3)            Should
the Participant cease to remain in Service while holding one or more unvested shares of Common Stock issued under the Stock Issuance
Program or should the performance objectives not be attained with respect to one or more of such unvested shares of Common Stock,
then those shares shall be immediately surrendered to the Corporation for cancellation, and the Participant shall have no further
rights with respect to those shares. To the extent the surrendered shares were previously issued to the Participant for consideration
paid in cash or cash equivalent (including the Participant’s purchase-money indebtedness), the Corporation shall repay to
the Participant the lesser of (a) the cash consideration paid for the surrendered shares (and the unpaid principal balance of any
outstanding purchase-money note of the Participant attributable to such surrendered shares shall be cancelled) and (b) the Fair
Market Value of such surrendered shares.

 

    9

     

    

 

(4)            The
Plan Administrator may in its discretion waive the surrender and cancellation of one or more unvested shares of Common Stock (or
other assets attributable thereto) which would otherwise occur upon the non-completion of the vesting schedule applicable to such
shares. Such waiver shall result in the immediate vesting of the Participant’s interest in the shares of Common Stock as
to which the waiver applies. Such waiver may be effected at any time, whether before or after the Participant’s cessation
of Service or the attainment or non-attainment of the applicable performance objectives.

 

C.            Prohibited
Transfer of Shares. Until such time as the Common Stock is first registered under Section 12(g) of the 1934 Act, the Participant
shall not sell, transfer, assign, pledge, encumber or otherwise dispose of any shares of Common Stock issued under the Stock Issuance
Program without the Plan Administrator’s prior written consent. Any sale, transfer, assignment, pledge encumbrance or other
disposition made in contravention of this Paragraph C shall be null and void.

 

D.            Compliance
with Section 409A of the Code. Notwithstanding anything to the contrary set forth herein, any shares of Common Stock issued
under the Stock Issuance Program that are not exempt from the requirements of Section 409A of the Code shall contain such provisions
so that such shares of Common Stock will comply with the requirements of Section 409A of the Code. Such restrictions, if any, shall
be determined by the Plan Administrator and shall be contained in the Stock Issuance Agreement evidencing such issuance. For example,
such restrictions may include, without limitation, a requirement that any Common Stock that is to be issued in a year following
the year in which the shares of Common Stock issued under the Stock Issuance Program vest must be issued in accordance with a fixed
pre-determined schedule.

 

II.            CORPORATE TRANSACTION

 

A.            The
following provisions shall apply to shares of Common Stock issued under the Stock Issuance Program in the event of a Corporate
Transaction unless otherwise provided in the Stock Issuance Agreement evidencing such issuance. Except as otherwise stated in the
Stock Issuance Agreement, in the event of a Corporate Transaction, notwithstanding any other provision of the Plan, the Board shall
take one or more of the following actions with respect to shares of Common Stock issued under the Stock Issuance Program, contingent
upon the closing or completion of the Corporate Transaction:

 

(1)            arrange
for the surviving corporation or acquiring corporation (or the surviving or acquiring corporation’s parent company) to assume
or continue any reacquisition or repurchase rights held by the Corporation as it relates to such shares of Common Stock or to substitute
a similar stock award for such shares of Common Stock (including, but not limited to, an award to acquire the same consideration
paid to the stockholders of the Corporation pursuant to the Corporate Transaction);

 

    10

     

    

 

(2)            arrange
for the assignment of any reacquisition or repurchase rights held by the Corporation in respect of Common Stock issued pursuant
to the Stock Issuance Program to the surviving corporation or acquiring corporation (or the surviving or acquiring corporation’s
parent company);

 

(3)            accelerate
the vesting, in whole or in part, of the shares of Common Stock subject to the Stock Issuance Program to a date prior to the effective
time of such Corporate Transaction as the Board shall determine;

 

(4)            arrange
for the lapse of any reacquisition or repurchase rights held by the Corporation with respect to some or all of the shares of Common
Stock subject to the Stock Issuance Program; and/or

 

(5)            cancel
or arrange for the cancellation of the shares of Common Stock subject to the Stock Issuance Program, to the extent not vested prior
to the effective time of the Corporate Transaction, in exchange for such cash consideration, if any, as the Board, in its sole
discretion, may consider appropriate.

 

The Board need not take the same action with respect
to all shares of Common Stock subject to the Stock Issuance Program or with respect to all Participants.

 

III.            SHARE ESCROW/LEGENDS

 

Shares may, in the Plan Administrator’s
discretion, be held in escrow by the Corporation or may be issued directly to the Participant with restrictive legends on the certificates
evidencing those shares.

 

ARTICLE FOUR

 

MISCELLANEOUS

 

		I.	FINANCING

 

The Plan Administrator may permit any Optionee
or Participant to pay the option exercise price or the purchase price for shares issued to such person under the Plan by delivering
a promissory note that constitutes valid consideration under the applicable state law payable in one or more installments. The
terms of any such promissory note (including the interest rate and the terms of repayment) shall be established by the Plan Administrator
in its sole discretion. Promissory notes may be authorized with or without security or collateral. In all events, the maximum credit
available to the Optionee or Participant may not exceed the sum of (i) the aggregate option exercise price or purchase price payable
for the purchased shares (less the par value of such shares) and (ii) any Federal, state and local income and employment tax liability
incurred by the Optionee or the Participant in connection with the option exercise or share purchase.

 

    11

     

    

 

II.             EFFECTIVE DATE
AND TERM OF PLAN

 

A.            The
Plan shall become effective when adopted by the Board, but no option granted under the Plan may be exercised, and no shares shall
be issued under the Plan, until the Plan is approved by the Corporation’s stockholders. If such stockholder approval is not
obtained within twelve (12) months after the date of the Board’s adoption of the Plan, then all options previously granted
under the Plan shall terminate and cease to be outstanding, and no further options shall be granted and no shares shall be issued
under the Plan. Subject to such limitation, the Plan Administrator may grant options and issue shares under the Plan at any time
after the effective date of the Plan and before the date fixed herein for termination of the Plan.

 

B.            The
Board may suspend or terminate the Plan at any time. Unless sooner terminated by the Board, the Plan shall automatically terminate
on the expiration of the ten (10)-year period measured from the date the Plan is adopted by the Board. Upon such Plan termination,
all options and stock issuances outstanding under the Plan shall continue to have full force and effect in accordance with the
provisions of the documents evidencing such options or issuances.

 

III.            AMENDMENT OF
THE PLAN

 

A.            The
Board shall have complete and exclusive power and authority to amend or modify the Plan in any and all respects. However, no such
amendment or modification shall adversely affect the rights and obligations with respect to options or unvested stock issuances
at the time outstanding under the Plan unless the Optionees and Participants that hold at least a majority of the aggregate number
of shares of Common Stock that are subject to such outstanding options and unvested stock issuances approve of, or consent to,
such amendment or modification. Notwithstanding the foregoing, subject to the limitations of applicable law, if any, and without
the affected Optionee’s or Participant’s consent, the Board may amend the terms of any one or more options or stock
grants issued hereunder if necessary to maintain the qualified status of an Incentive Option or to bring such option or stock grant
into compliance with Section 409A of the Code.

 

B.            Options
to purchase shares of Common Stock may be granted under the Plan and shares of Common Stock may be issued under the Plan that are
in each instance in excess of the number of shares then available for issuance under the Plan, provided any excess shares actually
issued under the Plan are held in escrow until there is obtained stockholder approval of an amendment sufficiently increasing the
number of shares of Common Stock available for issuance under the Plan. If such approval is not obtained with twelve (12) months
after the date the first such excess issuances are made, then (i) any unexercised options granted on the basis of such excess shares
shall terminate and cease to be outstanding and (ii) the Corporation shall promptly refund to the Optionees and the Participants
the exercise or purchase price paid for any excess shares issued under the Plan and held in escrow, together with interest (at
the applicable short-term Federal rate) for the period the shares were held in escrow, and such shares shall thereupon be automatically
cancelled and cease to be outstanding.

 

    12

     

    

 

IV.           USE OF PROCEEDS

 

Any cash proceeds received by the Corporation
from the sale of shares of Common Stock under the Plan shall be used for general corporate purposes.

 

V.            WITHHOLDING

 

The Corporation’s obligation to deliver
shares of Common Stock upon the exercise of any options or upon the issuance or vesting of any shares issued under the Plan shall
be subject to the satisfaction of all applicable Federal, state and local income and employment tax withholding requirements.

 

VI.           REGULATORY APPROVALS

 

The implementation of the Plan, the granting
of any options under the Plan and the issuance of any shares of Common Stock (i) upon the exercise of any option or (ii) under
the Stock Issuance Program shall be subject to the Corporation’s procurement of all approvals and permits required by regulatory
authorities having jurisdiction over the Plan, the options granted under it and the shares of Common Stock issued pursuant to it.
To the extent that the Board determines that any award granted hereunder is subject to Section 409A of the Code, the agreement
evidencing such award shall incorporate the terms and conditions necessary to avoid the consequences specified in Section 409A(a)(1)
of the Code. To the extent applicable, the Plan and the applicable award agreement shall be interpreted in accordance with Section
409A of the Code.

 

All options and shares of Common Stock
granted under the Plan are intended to be exempt from the requirements of Section 409A of the Code and applicable regulatory guidance
issued thereunder (“Section 409A”) or, if not exempt, to satisfy the requirements of Section 409A, and
the provisions of the Plan and any options and shares of Common Stock granted under the Plan shall be construed in a manner consistent
therewith. Although the Corporation may endeavor to qualify an option or issuance of shares of Common Stock under the Plan for
favorable tax treatment or to avoid unfavorable tax treatment, the Corporation makes no representation that the desired tax treatment
will be available and expressly disclaims any liability for the failure to maintain favorable or avoid unfavorable tax treatment
No option or issuance of shares of Common Stock under the Plan shall permit an Optionee or a Participant to defer receipt of compensation
beyond the date of exercise, unless the Committee determines that such option or issuance shall be subject to Section 409A. Notwithstanding
any provision of the Plan or any option, award or agreement to the contrary, any amount that constitutes “deferred compensation”
within the meaning of Section 409A and is payable under the Plan solely by reason of an Optionee’s or a Participant’s
cessation of Service shall be payable only when the Optionee or Participant has experienced a “separation from service”
within the meaning of Section 409A, provided, however, that if the Optionee or Participant is a “specified employee”
within the meaning of Section 409A at the time of such separation from service, as determined by the Committee in accordance with
Section 409A, payment shall be suspended until the six-month anniversary of the Optionee’s or Participant’s separation
from service, at which time all payments that were suspended shall be paid to the Optionee or Participant in a lump sum.

 

    13

     

    

 

VII.          NO EMPLOYMENT
OR SERVICE RIGHTS

 

Nothing in the Plan shall confer upon the
Optionee or the Participant any right to continue in Service for any period of specific duration or interfere with or otherwise
restrict in any way the rights of the Corporation (or any Subsidiary employing or retaining such person) or of the Optionee or
the Participant, which rights are hereby expressly reserved by each, to terminate such person’s Service at any time for any
reason, with or without cause.

 

    14

     

    

 

APPENDIX

 

The following definitions shall be in effect under
the Plan:

 

A.            Board
shall mean the Corporation’s Board of Directors.

 

B.            Code
shall mean the Internal Revenue Code of 1986, as amended.

 

C.            Committee
shall mean a committee of two (2) or more Board members appointed by the Board to exercise one or more administrative functions
under the Plan.

 

D.            Common
Stock shall mean the Corporation’s Common Stock.

 

E.            Corporate
Transaction shall mean (1) any transaction or series of related transactions (including, without limitation, any reorganization,
share exchange, consolidation or merger of the Corporation with or into any other entity but excluding any sale of capital stock
by the Corporation for capital raising purposes) (x) in which the holders of the Corporation’s outstanding capital stock
immediately before the first such transaction do not, immediately after any other such transaction, retain stock or other equity
interests representing at least fifty percent (50%) of the voting power of the surviving entity of such transaction or (y) in which
at least fifty percent (50%) of the Corporation’s outstanding capital stock is transferred (calculated on an as-converted
to Common Stock basis); or (2) any sale, conveyance or disposition of all or substantially all of the assets of the Corporation.

 

F.            Corporation
shall mean Aziyo Biologics, Inc., a Delaware corporation.

 

G.            Disability
shall mean the inability of an Optionee or Participant to engage in any substantially gainful activity by reason of any medically
determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last
for a continuous period of not less than twelve (12) months as provided in Sections 22(e)(3) and 409A(a)(2)(c)(i) of the Code and
shall be determined by the Board on the basis of such medical evidence as the Board deems warranted under the circumstances.

 

H.            Employee
shall mean an individual who is in the employ of the Corporation or any Subsidiary, subject to the control and direction of the
employer entity as to both the work to be performed and the manner and method of performance.

 

I.            Exercise
Date shall mean the date on which the Corporation shall have received written notice of the option exercise.

 

    15

     

    

 

J.            Fair
Market Value per share of Common Stock on any relevant date shall be determined in accordance with the following provisions
and in compliance with Section 409A of the Code or, in the case of an Incentive Option, in compliance with Section 422 of the Code:

 

(1)            If
the Common Stock is at the time listed on any United States stock exchange, then the Fair Market Value shall be the closing selling
price per share of Common Stock on the date in question on such stock exchange determined by the Plan Administrator to be the primary
market for the Common Stock, as such price is officially quoted in the composite tape of transactions on such exchange. If there
is no closing selling price for the Common Stock on the date in question, then the Fair Market Value shall be the closing selling
price on the last preceding date for which such quotation exists.

 

(2)            If
the Common Stock is not at the time listed on any United States stock exchange, then the Fair Market Value shall be determined
by the Plan Administrator after taking into account such factors as the Plan Administrator shall deem appropriate.

 

K.            Incentive
Option shall mean an option which satisfies the requirements of Code Section 422.

 

L.            1934
Act shall mean the Securities Exchange Act of 1934, as amended.

 

M.            Non-Statutory
Option shall mean an option that does not satisfy the requirements of Code Section 422.

 

N.            Option
Grant Program shall mean the option grant program in effect under the Plan.

 

O.            Optionee
shall mean any person to whom an option is granted under the Plan.

 

P.            Participant
shall mean any person who is issued shares of Common Stock under the Stock Issuance Program.

 

Q.            Plan
shall mean this 2015 Stock Option/Stock Issuance Plan, as amended from time to time.

 

R.            Plan
Administrator shall mean either the Board or the Committee, to the extent the Committee is at the time responsible for
the administration of the Plan.

 

S.            Service
shall mean the provision of services to the Corporation (or any Subsidiary) by a person in the capacity of an Employee, a non-employee
member of the board of directors or a consultant or independent advisor, except to the extent otherwise specifically provided in
the documents evidencing the option or stock issuance grant.

 

T.            Stock
Issuance Agreement shall mean the agreement entered into by the Corporation and the Participant at the time of issuance
of shares of Common Stock under the Stock Issuance Program.

 

U.            Stock
Issuance Program shall mean the stock issuance program in effect under the Plan.

 

    16

     

    

 

V.            Subsidiary
shall mean any entity in which the Corporation holds, directly or through one or more intermediaries, the beneficial or record
ownership of a majority of the voting or economic interests of such entity.

 

W.            10%
Stockholders shall mean the owner of stock (as determined under Code Section 424(d)) possessing more than ten percent (10%)
of the total combined voting power of all classes of stock of the Corporation.

 

    17

     

    

 

AZIYO BIOLOGICS, INC.

 

STOCK OPTION AGREEMENT

 

RECITALS

 

A.            The
Board has adopted the Plan for the purpose of retaining the services of selected Employees, non-employee members of the Board or
the board of directors of any Subsidiary and consultants and other independent advisors who provide services to the Corporation
or any Subsidiary.

 

B.            Optionee
is to render valuable services to the Corporation or a Subsidiary and this Agreement is executed pursuant to, and is intended to
carry out the purposes of, the Plan in connection with the Corporation’s grant of an option to Optionee.

 

C.            All
capitalized terms in this Agreement shall have the meaning assigned to them in the attached Appendix.

 

AGREEMENT

 

NOW, THEREFORE, it is hereby agreed as follows:

 

1.            Grant
of Option. The Corporation hereby grants to Optionee, as of the Grant Date, an option to purchase up to the number of Option
Shares specified in the Grant Notice. The Option Shares shall be purchasable from time to time during the option term specified
in Paragraph 2 at the Exercise Price.

 

2.            Option
Term. This option shall expire at the close of business on the Expiration Date, unless sooner terminated in accordance
with Paragraph 5 or 17.

 

3.             Prohibited Transfers. During
the lifetime of Optionee, this option shall be exercisable only by Optionee and shall not be sold, transferred, assigned, pledged,
encumbered or otherwise disposed of without the Plan Administrator’s prior written consent. Any sale, transfer, assignment,
pledge encumbrance or other disposition made in contravention of this Paragraph 3 shall be null and void.

 

4.            Dates
of Exercise. This option shall become exercisable for the Option Shares in one or more installments as specified in the
Grant Notice. As the option becomes exercisable for such installments, those installments shall accumulate and the option shall
remain exercisable for the accumulated installments until the Expiration Date or sooner termination of the option term under Paragraph
5 or 17.

 

5.            Cessation
of Service. The following provisions shall govern the exercise of this option at the time of cessation of Optionee’s
Service, subject to Paragraph 17:

 

(a)            Should
the Optionee’s Service terminate for any reason other than Disability, death, or for cause while this option is outstanding,
then the Optionee shall have a period of three (3) months commencing with the date of such cessation of Service during which

to exercise the option. In no event shall this option be exercisable
at any time after the expiration of the option term.

 

     

     

    

 

(b)            In
the event of a cessation of Service for cause, as determined by the Plan Administrator, while this option is outstanding, then
this option shall immediately terminate and be of no further force or effect as of the effective date of such cessation of Service.

 

(c)            Should
the Optionee’s Service terminate by reason of Disability while this option is outstanding, then the Optionee shall have a
period of twelve (12) months commencing with the date of such cessation of Service during which to exercise this option. In no
event shall this option be exercisable at any time after the expiration of the option term.

 

(d)            Should
the Optionee die while holding this option, then the personal representative of the Optionee’s estate or the person or persons
to whom this option is transferred pursuant to the Optionee’s will or in accordance with the laws of descent and distribution
shall have a period of twelve (12) months commencing with the date of the Optionee’s death during which to exercise each
this option. In no event shall this option be exercisable at any time after the expiration of the option term.

 

(e)            During
the applicable post-Service exercise period, this option may not be exercised in the aggregate for more than the number of vested
shares for which this option is exercisable on the date of the Optionee’s cessation of Service. Upon the expiration of the
applicable exercise period or, if earlier, upon the expiration of the option term, this option shall terminate and cease to be
outstanding for any vested shares for which this option has not been exercised. However, this option shall, immediately upon the
Optionee’s cessation of Service, terminate and cease to be outstanding to the extent this option is not otherwise at that
time exercisable for vested shares.

 

(f)            In
the event of a Corporate Transaction, the provisions of Paragraph 6 shall govern the period for which this option is to remain
exercisable following the Optionee’s cessation of Service and shall supersede any provisions to the contrary in this Paragraph.

 

6.            Corporate
Transaction.

 

(a)            In
the event of a Corporate Transaction, the Board shall take one or more of the following actions with respect to this option, contingent
upon the closing or completion of the Corporate Transaction:

 

(i)            arrange
for the surviving corporation or acquiring corporation (or the surviving or acquiring corporation’s parent company) to assume
or continue this option or to substitute a similar award for this option (including, but not limited to, an award to acquire the
same consideration paid to the stockholders of the Corporation pursuant to the Corporate Transaction);

 

(ii)            arrange
for the assignment of any reacquisition or repurchase rights held by the Corporation in respect of Common Stock issued or issuable
upon exercise of this option to the surviving corporation or acquiring corporation (or the surviving or acquiring corporation’s
parent company);

 

    2

     

    

 

(iii)            accelerate
the vesting, in whole or in part, of this option or the shares of Common Stock issued or issuable upon exercise of this option
(and, if applicable, the time at which this option may be exercised) to a date prior to the effective time of such Corporate Transaction
as the Board shall determine, with this option terminating if not exercised at or prior to the effective time of the Corporate
Transaction;

 

(iv)            arrange
for the lapse of any reacquisition or repurchase rights held by the Corporation with respect to the Common Stock issued or issuable
upon exercise of this option;

 

(v)            cancel
or arrange for the cancellation of this option, to the extent not vested or not exercised prior to the effective time of the Corporate
Transaction, in exchange for such cash consideration, if any, as the Board, in its sole discretion, may consider appropriate; and

 

(vi)            make
a payment, in such form as may be determined by the Board equal to the excess, if any, of (A) the value of the property the holder
of this option would have received upon the exercise of this option over (B) any exercise price payable by such holder in connection
with such exercise.

 

(c)            This
Agreement shall not in any way affect the right of the Corporation to adjust, reclassify, reorganize or otherwise change its capital
or business structure or to merge, consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets.

 

7.            Adjustment
in Option Shares. Should any change be made to the Common Stock by reason of any stock split, stock dividend, combination
of shares, exchange of shares or other change affecting the outstanding Common Stock as a class without the Corporation’s
receipt of consideration, appropriate adjustments shall be made to (i) the total number and/or class of securities subject to this
option and (ii) the Exercise Price in order to reflect such change.

 

8.            Stockholder
Rights. The holder of this option shall not have any stockholder rights with respect to the Option Shares until such person
shall have exercised the option, paid the Exercise Price and become a holder of record of the purchased shares and until such Option
Shares have vested.

 

9.            Manner
of Exercising Option.

 

(a)            In
order to exercise this option with respect to all or any part of the Option Shares for which this option is at the time exercisable,
Optionee (or any other person or persons exercising the option) must take the following actions:

 

(vii)            Execute
and deliver to the Corporation a Purchase Agreement for the Option Shares for which the option is exercised.

 

    3

     

    

 

(viii)            Pay
the aggregate Exercise Price for the purchased shares in one or more of the following forms:

 

(1)            cash or
check made payable to the Corporation; or

 

(2)            a
promissory note that constitutes valid consideration under applicable state law payable to the Corporation, but only to the extent
authorized by the Plan Administrator in accordance with Paragraph 14.

 

(b)            Should
the Common Stock be registered under Section 12(g) of the 1934 Act at the time the option is exercised, then the Exercise Price
may also be paid in shares of Common Stock held by Optionee (or any other person or persons exercising the option) for the requisite
period necessary to avoid a charge to the Corporation’s earnings for financial reporting purposes and valued at Fair Market
Value on the Exercise Date. The Optionee may also elect to receive Option Shares equal to the value of this option (or the portion
thereof being canceled) by surrender of this Option to the President or Secretary of the Corporation at the principal office of
the Corporation together with notice of such election, in which event the Corporation shall issue to the Optionee a number of Option
Shares determined using the following formula:

 

	X =	Y (A - B)
	A

 

Where

 

X --         The number of Option Shares to be issued to
the Optionee.

Y --         The number of vested Option Shares purchasable
under this Option at such time.

A --         The fair market value of one share of Common
Stock at such time as determined in good faith by the Board.

B --         The Exercise Price.

 

(c)            Payment
of the Exercise Price must accompany the Purchase Agreement delivered to the Corporation in connection with the option exercise
and the Optionee must:

 

(i)            Furnish
to the Corporation appropriate documentation that the person or persons exercising the option (if other than Optionee) have the
right to exercise this option;

 

(ii)            execute
and deliver to the Corporation such written representations as may be requested by the Corporation in order for it to comply with
the applicable requirements of Federal and state securities laws; and

 

(iii)            make
appropriate arrangements with the Corporation (or Subsidiary employing or retaining Optionee) for the satisfaction of all Federal,
state and local income and employment tax withholding requirements applicable to the option exercise.

 

    4

     

    

 

(d)            As
soon as practical after the Exercise Date, the Corporation shall issue to or on behalf of Optionee (or any other person or persons
exercising this option) a certificate for the purchased Option Shares, with the appropriate legends affixed thereto.

 

(e)            In no event
may this option be exercised for any fractional shares.

 

10.            REPURCHASE
RIGHTS. ALL OPTION SHARES ACQUIRED UPON THE EXERCISE OF THIS OPTION SHALL BE SUBJECT TO CERTAIN RIGHTS OF THE CORPORATION
AND ITS ASSIGNS TO REPURCHASE THOSE SHARES IN ACCORDANCE WITH THE TERMS SPECIFIED IN THE PURCHASE AGREEMENT.

 

11.            Compliance
with Laws and Regulations.

 

(a)            The
exercise of this option and the issuance of the Option Shares upon such exercise shall be subject to compliance by the Corporation
and Optionee with all applicable requirements of law relating thereto and with all applicable regulations of any stock exchange
on which the Common Stock may be listed for trading at the time of such exercise and issuance.

 

(b)            The
inability of the Corporation to obtain approval from any regulatory body having authority deemed by the Corporation to be necessary
to the lawful issuance and sale of any Common Stock pursuant to this option shall relieve the Corporation of any liability with
respect to the non-issuance or sale of the Common Stock as to which such approval shall not have been obtained. The Corporation,
however, shall use its commercially reasonable efforts to obtain all such approvals.

 

12.            Successors
and Assigns. Except to the extent otherwise provided in Paragraphs 3 and 6, the provisions of this Agreement shall inure
to the benefit of, and be binding upon, the Corporation and its successors and assigns and Optionee, Optionee’s permitted
assigns and the legal representatives, heirs and legatees of Optionee’s estate.

 

13.            Notices.
Any notice required to be given or delivered to the Corporation under the terms of this Agreement shall be in writing and addressed
to the Corporation at its principal corporate offices. Any notice required to be given or delivered to Optionee shall be in writing
and addressed to Optionee at the address indicated below Optionee’s signature line on the Grant Notice. All notices shall
be deemed effective upon personal delivery or upon deposit in the U.S. mail, postage prepaid and properly addressed to the party
to be notified.

 

14.            Financing.
The Plan Administrator may, in its absolute discretion and without any obligation to do so, permit Optionee to pay the Exercise
Price for the purchased Option Shares by delivering a promissory note that constitutes valid consideration under applicable state
law. The terms of any such promissory note (including the interest rate, the requirements for collateral and the terms of repayment)
shall be established by the Plan Administrator in its sole discretion.

 

15.            Construction.
This Agreement and the option evidenced hereby are made and granted pursuant to the Plan and are in all respects limited by
and subject to the terms of the Plan. All decisions of the Plan Administrator with respect to any question or issue arising under
the Plan or this Agreement shall be conclusive and binding on all persons having an interest in this option.

 

    5

     

    

 

16.            Governing
Law. The interpretation, performance and enforcement of this Agreement shall be governed by the laws of the State of Delaware
without resort to that State’s conflict-of-laws rules.

 

17.            Stockholder
Approval.

 

(a)            The
grant of this option is subject to approval of the Plan by the Corporation’s stockholders within twelve (12) months after
the adoption of the Plan by the Board. Notwithstanding any provision of this Agreement to the contrary, this option may not be
exercised in whole or in part until such stockholder approval is obtained. In the event that such stockholder approval is not obtained,
then this option shall terminate in its entirety and Optionee shall have no further rights to acquire any Option Shares hereunder.

 

(b)            If
the Option Shares covered by this Agreement exceed, as of the Grant Date, the number of shares of Common Stock which may without
stockholder approval be issued under the Plan, then this option shall be void with respect to such excess shares, unless stockholder
approval of an amendment sufficiently increasing the number of shares of Common Stock issuable under the Plan is obtained in accordance
with the provisions of the Plan.

 

18.            Additional
Terms Applicable to an Incentive Option. In the event this option is designated an Incentive Option in the Grant Notice,
the following terms and conditions shall also apply to the grant:

 

(a)            This
option shall cease to qualify for favorable tax treatment as an Incentive Option if (and to the extent) this option is exercised
for one or more Option Shares: (i) more than three (3) months after the date Optionee ceases to be an Employee for any reason other
than death or Disability or (ii) more than twelve (12) months after the date Optionee ceases to be an Employee by reason of Disability.

 

(b)            This
option shall not become exercisable in the calendar year in which granted if (and to the extent) the aggregate Fair Market Value
(determined at the Grant Date) of the Common Stock for which this option would otherwise first become exercisable in such calendar
year would, when added to the aggregate value (determined as of the respective date or dates of grant) of the Common Stock and
any other securities for which one or more other Incentive Options granted to Optionee prior to the Grant Date (whether under the
Plan or any other option plan of the Corporation or any Subsidiary) first become exercisable during the same calendar year, exceed
One Hundred Thousand Dollars ($100,000) in the aggregate. To the extent the exercisability of this option is deferred by reason
of the foregoing limitation, the deferred portion shall become exercisable in the first calendar year or years thereafter in which
the One Hundred Thousand Dollar ($100,000) limitation of this Paragraph 18(b) would not be contravened, but such deferral shall
in all events end immediately prior to the effective date of a Corporate Transaction in which this option is not to be assumed,
whereupon the option shall become immediately exercisable as a Non-Statutory Option for the deferred portion of the Option Shares.

 

(c)            Should
Optionee hold, in addition to this option, one or more other options to purchase Common Stock which become exercisable for the
first time in the same calendar year as this option, then the foregoing limitations on the exercisability of such options as Incentive
Options shall be applied on the basis of the order in which such options are granted.

 

    6

     

    

 

APPENDIX

 

The following definitions shall be effect under the
Agreement:

 

A.            Agreement
shall mean this Stock Option Agreement.

 

B.            Board
shall mean the Corporation’s Board of Directors.

 

C.            Code
shall mean the Internal Revenue Code of 1986, as amended.

 

D.            Common
Stock shall mean the Corporation’s Common Stock.

 

E.            Corporate
Transaction shall mean (1) any transaction or series of related transactions (including, without limitation, any reorganization,
share exchange, consolidation or merger of the Corporation with or into any other entity but excluding any sale of capital stock
by the Corporation for capital raising purposes) (x) in which the holders of the Corporation’s outstanding capital stock
immediately before the first such transaction do not, immediately after any other such transaction, retain stock or other equity
interests representing at least fifty percent (50%) of the voting power of the surviving entity of such transaction or (y) in which
at least fifty percent (50%) of the Corporation’s outstanding capital stock is transferred (calculated on an as-converted
to Common Stock basis); or (2) any sale, conveyance or disposition of all or substantially all of the assets of the Corporation.

 

F.            Corporation
shall mean Aziyo Biologics, Inc., a Delaware corporation.

 

G.            Disability
shall mean the inability of an Optionee to engage in any substantially gainful activity by reason of any medically determinable
physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous
period of not less than twelve (12) months as provided in Sections 22(e)(3) and 409A(a)(2)(c)(i) of the Code and shall be determined
by the Board on the basis of such medical evidence as the Board deems warranted under the circumstances.

 

H.            Employee
shall mean an individual who is in the employ of the Corporation or any Subsidiary, subject to the control and direction of the
employer entity as to both the work to be performed and the manner and method of performance.

 

I.            Exercise
Date shall mean the date on which the option shall have been exercised in accordance with Paragraph 9 of the Agreement.

 

J.            Exercise
Price shall mean the exercise price per share as specified in the Grant Notice.

 

K.            Expiration
Date shall mean the date on which the option expires as specified in the Grant Notice.

 

    7

     

    

 

L.            Fair
Market Value per share of Common Stock on any relevant date shall be determined in accordance with the following provisions
and in compliance with Section 409A of the Code or, in the case of an Incentive Option, in compliance with Section 422 of the Code:

 

1.            If
the Common Stock is at the time listed on any United States stock exchange, then the Fair Market Value shall be the closing selling
price per share of Common Stock on the date in question on such stock exchange determined by the Plan Administrator to be the primary
market for the Common Stock, as such price is officially quoted in the composite tape of transactions on such exchange. If there
is no closing selling price for the Common Stock on the date in question, then the Fair Market Value shall be the closing selling
price on the last preceding date for which such quotation exists.

 

2.            If
the Common Stock is not at the time listed on any United States stock exchange, then the Fair Market Value shall be determined
by the Plan Administrator after taking into account such factors as the Plan Administrator shall deem appropriate.

 

M.            Grant
Date shall mean the date of grant of the option as specified in the Grant Notice.

 

N.            Grant
Notice shall mean the Notice of Grant of Stock Option accompanying the Agreement.

 

O.            Incentive
Option shall mean an option which satisfies the requirements of Code Section 422.

 

P.            1934
Act shall mean the Securities Exchange Act of 1934, as amended.

 

Q.            Non-Statutory
Option shall mean an option that does not satisfy the requirements of Code Section 422.

 

R.            Option
Shares shall mean the number of shares of Common Stock subject to the option as specified in the Grant Notice.

 

S.            Optionee
shall mean the person to whom the option is granted as specified in the Grant Notice.

 

T.            Plan
shall mean the Corporation’s 2015 Stock Option/Stock Issuance Plan, as amended from time to time.

 

U.            Plan
Administrator shall mean either the Board or a committee of Board members, to the extent the committee is at the time responsible
for the administration of the Plan.

 

V.            Purchase
Agreement shall mean the stock purchase agreement in substantially the form of Exhibit B to the Grant Notice.

 

W.            Service
shall mean the Optionee’s performance of services for the Corporation (or any Subsidiary) in the capacity of an Employee,
a non-employee member of the board of directors or a consultant or independent advisor.

 

X.            Subsidiary
shall mean any entity in which the Corporation holds, directly or through one or more intermediaries, the beneficial or record
ownership of a majority of the voting or economic interests of such entity.

 

    8

     

    

 

AZIYO BIOLOGICS, INC.

 

STOCK PURCHASE AGREEMENT

 

This STOCK PURCHASE AGREEMENT (this “Agreement”)
is made as of this         day of                          ,
          , by and between Aziyo Biologics, Inc., a Delaware corporation
(the “Corporation”) and                        ,
an individual (“Optionee”).

 

All capitalized terms in this Agreement
shall have the meaning assigned to them in this Agreement or in the attached Appendix.

 

A.            EXERCISE OF
OPTION

 

1.            Exercise.
Optionee hereby purchases           shares of Common Stock (the
 “Purchased Shares”) pursuant to that certain option (the “Option”)
granted to Optionee on the                    day
of                           ,          
(the “Grant Date”) to purchase up to        shares of Common Stock
under the Plan (the “Purchased Shares”) at the exercise price of
$           per share (the “Exercise
Price”).

 

2.            Payment.
Concurrently with the delivery of this Agreement to the Corporation, Optionee shall pay the Exercise Price for the Purchased Shares
in accordance with the provisions of the Option Agreement and shall deliver whatever additional documents may be required by the
Option Agreement as a condition for exercise.

 

3.            Stockholder
Rights. Until such time as the Corporation exercises the Repurchase Right, Optionee (or any permitted successor in interest)
shall have all the rights of a stockholder (including voting, dividend and liquidation rights) with respect to the Purchased Shares
subject, however, to the transfer restrictions of Articles B and C. Optionee shall, if and when requested by the Corporation, execute
a joinder to any right of first refusal and co-sale agreement, investor rights agreement or other stockholder agreement to which
the Corporation is a party.

 

B.            SECURITIES
LAW COMPLIANCE

 

1.            Restricted
Securities. The Purchased Shares have not been registered under the 1933 Act and are being issued to Optionee in reliance
upon the exemption from such registration provided by SEC Rule 701 for stock issuances under compensatory benefit plans such as
the Plan. Optionee hereby confirms that Optionee has been informed that the Purchased Shares are restricted securities under the
1933 Act and may not be resold or transferred unless the Purchased Shares are first registered under the Federal securities laws
or unless an exemption from such registration is available. Accordingly, Optionee hereby acknowledges that Optionee is prepared
to hold the Purchased Shares for an indefinite period and that Optionee is aware that SEC Rule 144 issued under the 1933 Act which
exempts certain resales of unrestricted securities is not presently available to exempt the resale of the Purchased Shares from
the registration requirements of the 1933 Act.

 

     

     

    

 

2.            Restrictions
on Disposition of Purchased Shares. Optionee shall not make any sale, transfer, assignment, pledge, encumbrance or other
disposition of the Purchased Shares unless and until there is compliance with all of the following requirements:

 

(a)            Optionee
shall have provided the Corporation with a written summary of the terms and conditions of the proposed sale, transfer, assignment,
pledge, encumbrance or other disposition.

 

(b)            Optionee
shall have complied with all requirements of this Agreement applicable to the sale, transfer, assignment, pledge, encumbrance or
other disposition of the Purchased Shares.

 

(c)            Optionee
shall have provided the Corporation with written assurances, in form and substance satisfactory to the Corporation, that (i) the
proposed sale, transfer, assignment, pledge, encumbrance or other disposition does not require registration of the Purchased Shares
under the 1933 Act and (ii) all appropriate action necessary for compliance with the registration requirements of the 1933 Act
or any exemption from registration available under the 1933 Act (including Rule 144) has been taken.

 

The Corporation shall not be required (i)
to transfer on its books any Purchased Shares which have been sold or transferred in violation of the provisions of this Agreement
or (ii) to treat as the owner of the Purchased Shares, or otherwise to accord voting, dividend or liquidation rights to, any transferee
to whom the Purchased Shares have been transferred in contravention of this Agreement.

 

3.            Restrictive
Legends. The stock certificates for the Purchased Shares shall be endorsed with the following restrictive legends:

 

“The securities represented by this
Certificate have not been registered under the Securities Act of 1933 or any other securities laws. These securities may not be
sold, retransferred or otherwise disposed of in the absence of (1) an effective registration statement covering such securities
under the Securities Act of 1933 and any other applicable securities laws or (2) an opinion of counsel reasonably satisfactory
to the Corporation that registration is not required.”

 

(a)            “The
voting and sale, transfer, hypothecation, negotiation, pledge, assignment, encumbrance, or other disposition of this Certificate
and the securities represented hereby are restricted by and are subject to all of the terms, conditions and provisions of that
certain Stock Purchase Agreement. The securities represented by this Certificate are also subject to vesting and repurchase obligations
under such Agreement. A copy of such Agreement may be obtained by appropriate parties upon written request to the Secretary of
the Corporation.”

 

    2

     

    

 

C.            TRANSFER RESTRICTIONS

 

1.            Restriction
on Transfer. Except for any Permitted Transfer, Optionee shall not sell, transfer, assign, pledge, encumber or otherwise
dispose of any of the Purchased Shares without the prior written consent of the Board (which may be granted or withheld in its
absolute discretion).

 

2.            Transferee
Obligations. Each person (other than the Corporation) to whom the Purchased Shares are transferred by means of a Permitted
Transfer must, as a condition precedent to the validity of such transfer, acknowledge in writing to the Corporation that such person
is bound by the provisions of this Agreement and that the transferred shares are subject to (i) the Repurchase Right and (ii) the
transfer restrictions contained in this Article C (including the Market Stand-Off), to the same extent such shares would be so
subject if retained by Optionee.

 

3.            Market
Stand-Off.

 

(a)            In
connection with any underwritten public offering by the Corporation of its equity securities pursuant to an effective registration
statement filed under the 1933 Act, including the Corporation’s initial public offering, Owner shall not sell, make any short
sale of, loan, hypothecate, pledge, grant any option for the purchase of, or otherwise dispose or transfer for value or otherwise
agree to engage in any of the foregoing transactions with respect to, any Purchased Shares without the prior written consent of
the Corporation or its underwriters. Such restriction (the “Market Stand-Off”) shall be in effect for
such period of time from and after the effective date of the final prospectus for the offering as may be requested by the Corporation
or such underwriters. In no event, however, shall such period exceed one hundred eighty (180) days (or such additional period as
may be requested by the Corporation or an underwriter to accommodate regulatory restrictions on the publication or other distribution
of research reports and analyst recommendations and opinions, including, but not limited to, the restrictions contained in the
Financial Industry Regulatory Authority, Inc. Rule 2711(f)(4) or NYSE Rule 472(f)(4), or any successor provisions or amendments
thereto but in no event shall the total period exceed two hundred ten (210) days).

 

(b)            Any
new, substituted or additional securities which are by reason of any Recapitalization or Reorganization distributed with respect
to the Purchased Shares shall be immediately subject to the Market Stand-Off, to the same extent the Purchased Shares are at such
time covered by such provisions.

 

(c)            In
order to enforce the Market Stand-Off, the Corporation may impose stop-transfer instructions with respect to the Purchased Shares
until the end of the applicable stand-off period.

 

    3

     

    

 

D.            REPURCHASE
RIGHT

 

1.            Grant.
The Corporation is hereby granted the right (the “Repurchase Right”), exercisable at any time during
the ninety (90) day period following the date Optionee ceases for any reason to remain in Service or, if later, during the ninety
(90) day period following the execution date of this Agreement, to repurchase at the lesser of (i) the Exercise Price and (ii)
the Fair Market Value all or any portion of the Purchased Shares in which Optionee is not, at the time of his or her cessation
of Service, vested in accordance with the Vesting Schedule (such shares to be hereinafter referred to as the “Unvested
Shares”).

 

2.            Exercise
of the Repurchase Right. The Repurchase Right shall be exercisable by written notice delivered to each Owner of the Purchased
Shares prior to the expiration of the ninety (90) day exercise period. The notice shall indicate the number of Unvested Shares
to be repurchased and the date on which the repurchase is to be effected, such date to be not more than thirty (30) days after
the date of such notice. The certificates representing the Unvested Shares to be repurchased shall be delivered to the Corporation
prior to the close of business on the date specified for the repurchase. Concurrently with the receipt of such stock certificates,
the Corporation shall pay to Owner, in cash or cash equivalents (including the cancellation of any purchase-money indebtedness),
an amount equal to the lesser of (i) the Exercise Price and (ii) the Fair Market Value of any Unvested Shares which are to be repurchased
from Owner.

 

3.            Termination
of the Repurchase Right. The Repurchase Right shall terminate with respect to any Purchased Shares for which it is not
timely exercised under Article D.2. All Purchased Shares as to which the Repurchase Right lapses shall, however, remain subject
to the transfer restrictions contained in Article C (including the Market Stand-Off).

 

4.            Aggregate
Vesting Limitation. If the Option is exercised in more than one increment so that Optionee is a party to one or more other
Stock Purchase Agreements (the “Prior Purchase Agreements”) which are executed prior to the date of this
Agreement, then the total number of Purchased Shares as to which Optionee shall be deemed to have a fully-vested interest under
this Agreement and all Prior Purchase Agreements shall not exceed in the aggregate the number of Purchased Shares in which Optionee
would otherwise at the time be vested, in accordance with the Vesting Schedule, had all the Purchased Shares (including those acquired
under the Prior Purchase Agreements) been acquired exclusively under this Agreement.

 

5.            Recapitalization.
Any new, substituted or additional securities or other property (including cash paid other than as a regular cash dividend) which
is by reason of any Recapitalization distributed with respect to any Purchased Shares shall be immediately subject to the Repurchase
Right, but only to the extent the Purchased Shares are at the time covered by such right. Appropriate adjustments to reflect such
distribution shall be made to the number and/or class of Purchased Shares subject to this Agreement and to the price per share
to be paid upon the exercise of the Repurchase Right in order to reflect the effect of any such Recapitalization upon the Corporation’s
capital structure; provided, however, that the aggregate purchase price shall remain the same.

 

    4

     

    

 

6.            Corporate
Transaction.

 

(a)            The
Repurchase Right shall be assignable to the successor entity in any Corporate Transaction.

 

(b)            To
the extent the Repurchase Right remains in effect following a Corporate Transaction, such right shall apply to the new capital
stock or other property (including any cash payments) received in exchange for the Purchased Shares in consummation of the Corporate
Transaction, but only to the extent the Purchased Shares are at the time covered by such right. Appropriate adjustments shall be
made to the price per share payable upon exercise of the Repurchase Right to reflect the effect of the Corporate Transaction upon
the Corporation’s capital structure; provided, however, that the aggregate purchase price shall remain the
same.

 

E.            SPECIAL TAX
ELECTION

 

The acquisition of the Purchased Shares
may result in adverse tax consequences which may be avoided or mitigated by filing an election under Code Section 83(b). Such
election must be filed within thirty (30) days after the date of this Agreement. A description of the tax consequences applicable
to the acquisition of the Purchased Shares and the form for making the Code Section 83(b) election are set forth in Exhibit I.
OPTIONEE SHOULD CONSULT WITH HIS OR HER TAX ADVISOR TO DETERMINE THE TAX CONSEQUENCES OF ACQUIRING THE PURCHASED SHARES AND
THE ADVANTAGES AND DISADVANTAGES OF FILING THE CODE SECTION 83(b) ELECTION. OPTIONEE ACKNOWLEDGES THAT IT IS OPTIONEE’S
SOLE RESPONSIBILITY, AND NOT THE CORPORATION’S, TO FILE A TIMELY ELECTION UNDER CODE SECTION 83(b), EVEN IF OPTIONEE REQUESTS
THE CORPORATION OR ITS REPRESENTATIVES TO MAKE THIS FILING ON HIS OR HER BEHALF.

 

F.            GENERAL PROVISIONS

 

1.            Assignment.
The Corporation may assign the Repurchase Right to any person or entity selected by the Board including, without limitation, one
or more stockholders of the Corporation.

 

2.            No
Employment or Service Contract. Nothing in this Agreement or in the Plan shall confer upon Optionee any right to continue
in Service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Corporation
(or any Subsidiary employing or retaining Optionee) or of Optionee, which rights are hereby expressly reserved by each, to terminate
Optionee’s Service at any time for any reason, with or without cause.

 

3.            Notices.
Any notice required to be given under this Agreement shall be in writing and shall be deemed effective upon personal delivery
or upon deposit in the U.S. mail, registered or certified, postage prepaid and properly addressed to the party entitled to such
notice at the address indicated below such party’s signature line on this Agreement or at such other address as such party
may designate by ten (10) days advance written notice under this Paragraph to all other parties to this Agreement.

 

    5

     

    

 

4.            No
Waiver. The failure of the Corporation in any instance to exercise the Repurchase Right shall not constitute a waiver of
any other repurchase rights that may subsequently arise under the provisions of this Agreement or any other agreement between the
Corporation and Optionee or Optionee’s spouse. No waiver of any breach or condition of this Agreement shall be deemed to
be a waiver of any other or subsequent breach or condition, whether of like or different nature.

 

5.            Cancellation
of Shares. If the Corporation shall make available, at the time and place and in the amount and form provided in this Agreement,
the consideration for the Purchased Shares to be repurchased in accordance with the provisions of this Agreement, then from and
after such time, the person from whom such shares are to be repurchased shall no longer have any rights as a holder of such shares
(other than the right to receive payment of such consideration in accordance with this Agreement). Such shares shall be deemed
purchased in accordance with the applicable provisions hereof, and the Corporation shall be deemed the owner and holder of such
shares, whether or not the certificates therefor have been delivered as required by this Agreement.

 

G.            MISCELLANEOUS
PROVISIONS

 

1.            Optionee
Undertaking. Optionee hereby agrees to take whatever additional action and execute whatever additional documents the Corporation
may deem necessary or advisable in order to carry out or effect one or more of the obligations or restrictions imposed on either
Optionee or the Purchased Shares pursuant to the provisions of this Agreement.

 

2.            Agreement
is Entire Contract. This Agreement constitutes the entire contract between the parties hereto with regard to the subject
matter hereof. This Agreement is made pursuant to the provisions of the Plan and shall in all respects be construed in conformity
with the terms of the Plan.

 

3.            Governing
Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware without resort
to that State’s conflict-of-laws rules.

 

4.            Counterparts.
This Agreement may be executed in counterparts, each of which shall be deemed to be an original, but all of which together shall
constitute one and the same instrument.

 

5.            Successors
and Assigns. The provisions of this Agreement shall inure to the benefit of, and be binding upon, the Corporation and its
successors and assigns and upon Optionee, Optionee’s permitted assigns and the legal representatives, heirs and legatees
of Optionee’s estate, whether or not any such person shall have become a party to this Agreement and have agreed in writing
to join herein and be bound by the terms hereof.

 

    6

     

    

 

SIGNATURES

 

IN WITNESS WHEREOF, the parties have executed
this Agreement on the day and year first indicated above.

 

	 	AZIYO BIOLOGICS, INC.
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

	 	 	 
	 	OPTIONEE
	 	 
	 	Name:	              
	 	Title:	 
	 	 	 

 

    7

     

    

 

EXHIBIT I

 

FEDERAL INCOME TAX CONSEQUENCES AND

SECTION 83(b) TAX ELECTION

 

I.            Federal
Income Tax Consequences and Section 83(b) Election For Exercise of Non-Statutory Option. If the Purchased Shares are acquired
pursuant to the exercise of a Non-Statutory Option, as specified in the Grant Notice, then under Code Section 83, the excess of
the Fair Market Value of the Purchased Shares on the date any forfeiture restrictions applicable to such shares lapse over the
Exercise Price paid for such shares will be reportable as ordinary income on the lapse date. For this purpose, the term “forfeiture
restrictions” includes the right of the Corporation to repurchase the Purchased Shares pursuant to the Repurchase Right.
However, Optionee may elect under Code Section 83(b) to be taxed at the time the Purchased Shares are acquired, rather than when
and as such Purchased Shares cease to be subject to such forfeiture restrictions. Such election must be filed with the Internal
Revenue Service within thirty (30) days after the date of the Agreement. Even if the Fair Market Value of the Purchased Shares
on the date of the Agreement equals the Exercise Price paid (and thus no tax is payable), the election must be made to avoid adverse
tax consequences in the future. The form for making this election is attached as part of this exhibit. FAILURE TO MAKE THIS
FILING WITHIN THE APPLICABLE THIRTY (30) DAY PERIOD WILL RESULT IN THE RECOGNITION OF ORDINARY INCOME BY OPTIONEE AS THE FORFEITURE
RESTRICTIONS LAPSE.

 

II.            Federal
Income Tax Consequences and Conditional Section 83(b) Election For Exercise of Incentive Option. If the Purchased Shares
are acquired pursuant to the exercise of an Incentive Option, as specified in the Grant Notice, then the following tax principles
shall be applicable to the Purchased Shares:

 

(i)            For
regular tax purposes, no taxable income will be recognized at the time the Option is exercised.

 

(ii)            The
excess of (a) the Fair Market Value of the Purchased Shares on the date the Option is exercised or (if later) on the date any forfeiture
restrictions applicable to the Purchased Shares lapse over (b) the Exercise Price paid for the Purchased Shares will be included
in Optionee’s taxable income for alternative minimum tax purposes.

 

(iii)            If
Optionee makes a disqualifying disposition of the Purchased Shares, then Optionee will recognize ordinary income in the year of
such disposition equal in amount to the excess of (a) the Fair Market Value of the Purchased Shares on the date the Option is exercised
or (if later) on the date any forfeiture restrictions applicable to the Purchased Shares lapse over (b) the Exercise Price paid
for the Purchased Shares. Any additional gain recognized upon the disqualifying disposition will be either short-term or long-term
capital gain depending upon the period for which the Purchased Shares are held prior to the disposition.

 

    8

     

    

 

(iv)            For
purposes of the foregoing, the term “forfeiture restrictions” will include the right of the Corporation to repurchase
the Purchased Shares pursuant to the Repurchase Right. The term “disqualifying disposition” means any sale or other
disposition1 of the Purchased Shares within two (2) years after the Grant Date or within one (1) year after the exercise
date of the Option.

 

(v)            In
the absence of final Treasury Regulations relating to Incentive Options, it is not certain whether Optionee may, in connection
with the exercise of the Option for any Purchased Shares at the time subject to forfeiture restrictions, file a protective election
under Code Section 83(b) which would limit (a) Optionee’s alternative minimum taxable income upon exercise and (b) Optionee’s
ordinary income upon a disqualifying disposition to the excess of the Fair Market Value of the Purchased Shares on the date the
Option is exercised over the Exercise Price paid for the Purchased Shares. Accordingly, such election if properly filed will only
be allowed to the extent the final Treasury Regulations permit such a protective election. Page 2 of the attached form for making
the election should be filed with any election made in connection with the exercise of an Incentive Option.

 

 

 

1            Generally,
a disposition of shares purchased under an Incentive Option includes any transfer of legal title, including a transfer by sale,
exchange or gift, but does not include a transfer to the Optionee’s spouse, a transfer into joint ownership with right of
survivorship if Optionee remains one of the joint owners, a pledge, a transfer by bequest or inheritance or certain tax free exchanges
permitted under the Code.

 

    9

     

    

 

SECTION 83(b) ELECTION

 

This statement is being made under Section 83(b) of the Internal
Revenue Code, pursuant to Treas. Reg. Section 1.83-2.

 

		(1)	The taxpayer who performed the services is:

 

Name:

Address:

Taxpayer Ident. No.:

 

		(2)	The property with respect to which the election is being made is                 shares
                                                           of the common stock of Aziyo Biologics, Inc.

 

		(3)	The property was issued on                          
                                                   ,                              .

 

		(4)	The taxable year in which the election is being made is the calendar
                                         year               .

 

		(5)	The property is non-transferable and is subject to a risk of forfeiture unless and until certain service requirements are met.

 

		(6)	The fair market value at the time of transfer (determined without
                                         regard to any restriction other than a restriction which by its terms will never lapse)
                                         is $             per
                                         share.

 

		(7)	The amount paid for such property is
                                                           $                per share.

 

		(8)	A copy of this statement was furnished to Aziyo Biologics, Inc. for whom taxpayer rendered the services underlying the transfer
of property.

 

		(9)	This statement is executed on                          
                                                   ,                              .

 

	 	 	 
	Spouse (if any)	Taxpayer

 

This election must be filed with the Internal Revenue Service
Center with which taxpayer files or her Federal income tax returns and must be made within thirty (30) days after the execution
date of the Stock Purchase Agreement. This filing should be made by registered or certified mail, return receipt requested. Optionee
must retain two (2) copies of the completed form for filing with his or her Federal and state tax returns for the current tax year
and an additional copy for his or her records.

 

    10

     

    

 

The property described in the above Section 83(b) election is
comprised of shares of common stock acquired pursuant to the exercise of an incentive stock option under Section 422 of the Internal
Revenue Code (the “Code”). Accordingly, it is the intent of the Taxpayer to utilize this election to
achieve the following tax results:

 

1.            The
purpose of this election is to have the alternative minimum taxable income attributable to the purchased shares measured by the
amount by which the fair market value of such shares at the time of their transfer to the Taxpayer exceeds the purchase price paid
for the shares. In the absence of this election, such alternative minimum taxable income would be measured by the spread between
the fair market value of the purchased shares and the purchase price which exists on the various lapse dates in effect for the
forfeiture restrictions applicable to such shares. The election is to be effective to the full extent permitted under the Code.

 

2.            Section
421(a)(1) of the Code expressly excludes from income any excess of the fair market value of the purchased shares over the amount
paid for such shares. Accordingly, this election is also intended to be effective in the event there is a “disqualifying
disposition” of the shares, within the meaning of Section 421(b) of the Code, which would otherwise render the provisions
of Section 83(a) of the Code applicable at that time. Consequently, the Taxpayer hereby elects to have the amount of disqualifying
disposition income measured by the excess of the fair market value of the purchased shares on the date of transfer to the Taxpayer
over the amount paid for such shares. Since Section 421(a) presently applies to the shares which are the subject of this Section
83(b) election, no taxable income is actually recognized for regular tax purposes at this time, and no income taxes are payable,
by the Taxpayer as a result of this election.

 

[THIS PAGE 2 IS TO BE ATTACHED TO ANY SECTION 83(b) ELECTION
FILED IN CONNECTION WITH THE EXERCISE OF AN INCENTIVE STOCK OPTION UNDER THE FEERAL TAX LAWS.]

 

    11

     

    

 

APPENDIX

 

The following definitions shall be in effect under
the Agreement:

 

A.            Agreement
shall mean this Stock Purchase Agreement.

 

B.            Board
shall mean the Corporation’s Board of Directors.

 

C.            Code
shall mean the Internal Revenue Code of 1986, as amended.

 

D.            Common
Stock shall mean the Corporation’s Common Stock.

 

E.            Corporate
Transaction shall mean(1) any transaction or series of related transactions (including, without limitation, any reorganization,
share exchange, consolidation or merger of the Corporation with or into any other entity but excluding any sale of capital stock
by the Corporation for capital raising purposes) (x) in which the holders of the Corporation’s outstanding capital stock
immediately before the first such transaction do not, immediately after any other such transaction, retain stock or other equity
interests representing at least fifty percent (50%) of the voting power of the surviving entity of such transaction or (y) in which
at least fifty percent (50%) of the Corporation’s outstanding capital stock is transferred (calculated on an as-converted
to Common Stock basis); or (2) any sale, conveyance or disposition of all or substantially all of the assets of the Corporation.

 

F.            Corporation
shall mean Aziyo Biologics, Inc., a Delaware corporation.

 

G.            Disability
shall mean the inability of Optionee to engage in any substantially gainful activity by reason of any medically determinable physical
or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period
of not less than twelve (12) months as provided in Sections 22(e)(3) and 409A(a)(2)(c)(i) of the Code and shall be determined by
the Board on the basis of such medical evidence as the Board deems warranted under the circumstances.

 

H.            Fair
Market Value per share of Common Stock on any relevant date shall be determined in accordance with the following provisions
and in compliance with Section 409A of the Code or, in the case of an Incentive Option, in compliance with Section 422 of the Code:

 

1.            If
the Common Stock is at the time listed on any United States stock exchange, then the Fair Market Value shall be the closing selling
price per share of Common Stock on the date in question on such stock exchange determined by the Plan Administrator to be the primary
market for the Common Stock, as such price is officially quoted in the composite tape of transactions on such exchange. If there
is no closing selling price for the Common Stock on the date in question, then the Fair Market Value shall be the closing selling
price on the last preceding date for which such quotation exists.

 

    12

     

    

 

2.            If
the Common Stock is not at the time listed on any United States stock exchange, then the Fair Market Value shall be determined
by the Plan Administrator after taking into account such factors as the Plan Administrator shall deem appropriate.

 

I.            Grant
Notice shall mean the Notice of Grant of Stock Option accompanying the Option Agreement.

 

J.            Incentive
Option shall mean an option which satisfies the requirements of Code Section 422.

 

K.            1933
Act shall mean the Securities Act of 1933, as amended.

 

L.            Non-Statutory
Option shall mean an option that does not satisfy the requirements of Code Section 422.

 

M.            Option
Agreement shall mean the Stock Option Agreement between the Corporation and the Optionee evidencing the Option and the
other documents and agreements related thereto.

 

N.            Owner
shall mean Optionee and all subsequent holders of the Purchased Shares who derive their claim of ownership through a Permitted
Transfer from Optionee.

 

O.            Permitted
Transfer shall mean (i) a gratuitous transfer of the Purchased Shares, provided and only if (A) Optionee obtains the Corporation’s
prior written consent to such transfer, (B) prior to the completion of the transfer the transferee shall have executed documents
assuming the obligations of the Optionee under this Agreement with respect to the transferred securities and (C) prior to the completion
of the transfer the transferee shall have executed an irrevocable proxy appointing the transferring Optionee as the transferee’s
proxy and giving the transferring Optionee full power of substitution to vote all of the shares of capital stock transferred pursuant
to a gratuitous transfer, (ii) a transfer of title to the Purchased Shares effected pursuant to Optionee’s will or the laws
of intestate succession following Optionee’s death or (iii) a transfer to the Corporation in pledge as security for any purchase-money
indebtedness incurred by Optionee in connection with the acquisition of the Purchased Shares.

 

P.            Plan
shall mean the Corporation’s 2015 Stock Option/Stock Issuance Plan, as amended from time to time.

 

Q.            Plan
Administrator shall mean either the Board or a committee of Board members, to the extent the committee is at the time responsible
for administration of the Plan.

 

R.            Recapitalization
shall mean any stock split, stock dividend, recapitalization, combination of shares, exchange of shares or other change affecting
the outstanding Common Stock as a class without the Corporation’s receipt of consideration.

 

    13

     

    

 

S.            Reorganization
shall mean any of the following transactions:

 

1.            a
merger or consolidation in which the Corporation is not the surviving entity,

 

2.            a
sale, transfer or other disposition of all or substantially all of the Corporation’s assets,

 

3.            a
reverse merger in which the Corporation is the surviving entity but in which the Corporation’s outstanding voting securities
are transferred in whole or in part to a person or persons different from the persons holding those securities immediately prior
to the merger, or

 

4.            any
transaction effected primarily to change the state in which the Corporation is incorporated or to create a holding company structure.

 

T.            Repurchase
Right shall mean the right granted to the Corporation in accordance with Article D.

 

U.            SEC
shall mean the Securities and Exchange Commission.

 

V.            Service
shall mean the provision of services to the Corporation (or any Subsidiary) by a person in the capacity of an employee, subject
to the control and direction of the employer entity as to both the work to be performed and the manner and method of performance,
a non-employee member of the board of directors or a consultant or independent advisor.

 

W.            Subsidiary
shall mean any entity in which the Corporation holds, directly or through one or more intermediaries, the beneficial or record
ownership of a majority of the voting or economic interests of such entity.

 

X.            Vesting
Schedule shall mean the vesting schedule specified in the Plan or in the Grant Notice.

 

    14

     

    

 

AZIYO BIOLOGICS, INC.

 

STOCK ISSUANCE AGREEMENT

 

This STOCK ISSUANCE AGREEMENT (this “Agreement”)
is made as of this             day of                      ,
        , by and between Aziyo Biologics, Inc., a Delaware corporation (the “Corporation”)
and                   , a participant
(“Participant”) in the Corporation’s 2015 Stock Option/Stock Issuance Plan (as amended from time
to time, the “Plan”).

 

		A.	PURCHASE OF SHARES

 

1.            Purchase.
Participant hereby purchases, and the Corporation hereby sells to Participant,                    
shares of the Corporation’s Common Stock (the “Purchased Shares”) at a purchase price of $              
  per share (the “Purchase Price”) pursuant to the provisions of the Stock Issuance Program
of the Plan.

 

2.            Payment.
Concurrently with the execution of this Agreement, Participant shall deliver to the Secretary of the Corporation: (i) the aggregate
Purchase Price payable for the Purchased Shares in cash or check payable to the Corporation’s order and (ii) a duly-executed
Assignment Separate from Certificate (in the form attached hereto as Exhibit I).

 

3.            Delivery
of Certificates. The certificates representing the Purchased Shares shall be held in escrow by the Secretary of the Corporation
as provided in Article F.

 

4.            Stockholder
Rights. Until such time as the Corporation exercises the Repurchase Right, Participant (or any successor in interest) shall
have all the rights of a stockholder (including voting, dividend and liquidation rights) with respect to the Purchased Shares subject,
however, to the transfer restrictions of Articles B and D. Participant shall, if and when requested by the Corporation, execute
a joinder to any right of first refusal and co-sale agreement, investor rights agreement or other stockholder agreement to which
the Corporation is a party.

 

5.            Confidentiality
and Proprietary Rights Assignment Agreement. As a condition precedent to the accrual of Participant’s rights under
the Plan and this Agreement, Participant shall execute and deliver to the Corporation the Confidentiality and Proprietary Rights
Assignment Agreement in the form attached hereto as Exhibit II. Participant acknowledges and agrees that Participant’s receipt
of the rights under the Plan and this Agreement constitute good and valuable consideration for Participant’s execution and
delivery of such Confidentiality and Proprietary Rights Assignment Agreement.

 

B.            SECURITIES
LAW COMPLIANCE

 

1.            Restricted
Securities. The Purchased Shares have not been registered under the 1933 Act and are being issued to Participant in
reliance upon the exemption from such registration provided by SEC Rule 701 for stock issuances under compensatory benefit
plans such as the Plan. Participant hereby confirms that Participant has been informed that the Purchased Shares are
restricted securities under the 1933 Act and may not be resold or transferred unless the Purchased Shares are first
registered under the Federal securities laws or unless an exemption from such registration is available. Accordingly,
Participant hereby acknowledges that Participant is prepared to hold the Purchased Shares for an indefinite period and that
Participant is aware that SEC Rule 144 issued under the 1933 Act which exempts certain resales of unrestricted securities is
not presently available to exempt the resale of the Purchased Shares from the registration requirements of the 1933 Act.

 

     

     

    

 

2.            Disposition
of Purchased Shares. Participant shall not make any sale, transfer, assignment, pledge, encumbrance or other disposition
of the Purchased Shares unless and until there is compliance with all of the following requirements:

 

(a)            Participant
shall have provided the Corporation with a written summary of the terms and conditions of the proposed sale, transfer, assignment,
pledge, encumbrance or other disposition.

 

(b)            Participant
shall have complied with all requirements of this Agreement applicable to the sale, transfer, assignment, pledge, encumbrance or
other disposition of the Purchased Shares.

 

(c)            Participant
shall have provided the Corporation with written assurances, in form and substance satisfactory to the Corporation, that (i) the
proposed sale, transfer, assignment, pledge, encumbrance or other disposition does not require registration of the Purchased Shares
under the 1933 Act and (ii) all appropriate action necessary for compliance with the registration requirements of the 1933 Act
or any exemption from registration available under the 1933 Act (including Rule 144) has been taken.

 

The Corporation shall not be required (i)
to transfer on its books any Purchased Shares which have been sold or transferred in violation of the provisions of this Agreement
or (ii) to treat as the owner of the Purchased Shares, or otherwise to accord voting, dividend or liquidation rights to, any transferee
to whom the Purchased Shares have been transferred in contravention of this Agreement.

 

3.            Restrictive
Legends. The stock certificates for the Purchased Shares shall be endorsed with the following restrictive legends:

 

(a)            “The
securities represented by this Certificate have not been registered under the Securities Act of 1933 or any other securities laws.
These securities may not be sold, retransferred or otherwise disposed of in the absence of (1) an effective registration statement
covering such securities under the Securities Act of 1933 and any other applicable securities laws or (2) an opinion of counsel
reasonably satisfactory to the Corporation that registration is not required.”

 

(b)            “The
voting and sale, transfer, hypothecation, negotiation, pledge, assignment, encumbrance, or other disposition of this Certificate
and the securities represented hereby are restricted by and are subject to all of the terms, conditions and provisions of that
certain Stock Issuance Agreement. The securities represented by this Certificate are also subject to vesting and repurchase obligations
under such Agreement. A copy of such Agreement may be obtained by appropriate parties upon written request to the Secretary of
the Corporation.”

 

    2

     

    

 

C.            VESTING SCHEDULE

 

The Participant shall vest in the Purchased
Shares in accordance with the following vesting schedule:

 

(a)            [ADD
VESTING SCHEDULE].

 

(b)            In
no event shall any Unvested Shares vest following the Participant’s cessation of Service for any reason.

 

D.            TRANSFER RESTRICTIONS

 

1.            Restriction
on Transfer. Except for any Permitted Transfer, Participant shall not sell, transfer, assign, pledge, encumber or otherwise
dispose of any of the Purchased Shares without the prior written consent of the Board (which may be granted or withheld in its
absolute discretion).

 

2.            Transferee
Obligations. Each person (other than the Corporation) to whom the Purchased Shares are transferred by means of a Permitted
Transfer must, as a condition precedent to the validity of such transfer, acknowledge in writing to the Corporation that such person
is bound by the provisions of this Agreement and that the transferred shares are subject to (i) the Repurchase Right and (ii) the
transfer restrictions contained in this Article D (including the Market Stand-Off), to the same extent such shares would be so
subject if retained by Participant.

 

3.            Market
Stand-Off.

 

(a)            In
connection with any underwritten public offering by the Corporation of its equity securities pursuant to an effective registration
statement filed under the 1933 Act, including the Corporation’s initial public offering, Owner shall not sell, make any short
sale of, loan, hypothecate, pledge, grant any option for the purchase of, or otherwise dispose or transfer for value or otherwise
agree to engage in any of the foregoing transactions with respect to, any Purchased Shares without the prior written consent of
the Corporation or its underwriters. Such restriction (the “Market Stand-Off”) shall be in effect for
such period of time from and after the effective date of the final prospectus for the offering as may be requested by the Corporation
or such underwriters. In no event, however, shall such period exceed one hundred eighty (180) days (or such additional period as
may be requested by the Corporation or an underwriter to accommodate regulatory restrictions on the publication or other distribution
of research reports and analyst recommendations and opinions, including, but not limited to, the restrictions contained in the
Financial Industry Regulatory Authority, Inc. Rule 2711(f)(4) or NYSE Rule 472(f)(4), or any successor provisions or amendments
thereto but in no event shall the total period exceed two hundred ten (210) days).

 

(b)            Any
new, substituted or additional securities which are by reason of any Recapitalization or Reorganization distributed with respect
to the Purchased Shares shall be immediately subject to the Market Stand-Off, to the same extent the Purchased Shares are at such
time covered by such provisions.

 

(c)            In
order to enforce the Market Stand-Off, the Corporation may impose stop-transfer instructions with respect to the Purchased Shares
until the end of the applicable stand-off period.

 

    3

     

    

 

E.            REPURCHASE
RIGHT

 

1.            Grant.
The Corporation is hereby granted the right (the “Repurchase Right”), exercisable at any time during
the ninety (90) day period following the date Participant ceases for any reason to remain in Service, to repurchase at the lesser
of (i) the Purchase Price and (ii) the Fair Market Value all or any portion of the Purchased Shares in which Participant is not,
at the time of his or her cessation of Service, vested in accordance with the Vesting Schedule (such shares to be hereinafter referred
to as the “Unvested Shares”).

 

2.            Exercise
of the Repurchase Right. The Repurchase Right shall be exercisable by written notice delivered to each Owner of the Purchased
Shares prior to the expiration of the ninety (90) day exercise period. The notice shall indicate the number of Unvested Shares
to be repurchased and the date on which the repurchase is to be effected, such date to be not more than thirty (30) days after
the date of such notice. The certificates representing the Purchased Shares to be repurchased shall be delivered to the Corporation
prior to the close of business on the date specified for the repurchase. Concurrently with the receipt of such stock certificates,
the Corporation shall pay to Owner, in cash or cash equivalents (including the cancellation of any purchase-money indebtedness),
an amount equal to the lesser of (i) the Purchase Price and (ii) the Fair Market Value of the Unvested Shares which are to be repurchased
from Owner.

 

3.            Termination
of the Repurchase Right. The Repurchase Right shall terminate with respect to any Purchased Shares for which it is not
timely exercised under Paragraph E.2. All Purchased Shares as to which the Repurchase Rights lapse shall, however, remain subject
to the transfer restrictions contained in Article D (including the Market Stand-Off).

 

4.            Recapitalization.
Any new, substituted or additional securities or other property (including cash paid other than as a regular cash dividend)
which is by reason of any Recapitalization distributed with respect to any Purchased Shares shall be immediately subject to such
right. Appropriate adjustments to reflect such distribution shall be made to the number and/or class of Purchased Shares subject
to this Agreement and to the price per share to be paid upon the exercise of the Repurchase Right in order to reflect the effect
of any such Recapitalization upon the Corporation’s capital structure; provided, however, that the aggregate purchase price
shall remain the same.

 

    4

     

    

 

5.            Corporate
Transaction.

 

In the event of a Corporate Transaction, the
Board shall take one or more of the following actions with respect to the Purchased Shares, contingent upon the closing or completion
of the Corporate Transaction:

 

(a)            arrange
for the surviving corporation or acquiring corporation (or the surviving or acquiring corporation’s parent company) to assume
or continue the Repurchase Right as it relates to the Purchased Shares or to substitute a similar stock award for such Purchased
Shares (including, but not limited to, an award to acquire the same consideration paid to the stockholders of the Corporation pursuant
to the Corporate Transaction);

 

(b)            arrange
for the assignment of the Repurchase Right held by the Corporation in respect of the Purchased Shares to the surviving corporation
or acquiring corporation (or the surviving or acquiring corporation’s parent company);

 

(c)            accelerate
the vesting, in whole or in part, of the Purchased Shares to a date prior to the effective time of such Corporate Transaction as
the Board shall determine;

 

(d)            arrange
for the lapse of the Repurchase Rights with respect to some or all of the Purchased Shares; and/or

 

(e)            cancel
or arrange for the cancellation of the Purchased Shares to the extent not vested prior to the effective time of the Corporate Transaction,
in exchange for such cash consideration, if any, as the Board, in its sole discretion, may consider appropriate.

 

To the extent the Repurchase Right remains in effect following
a Corporate Transaction, such Repurchase Right shall apply to the new capital stock or other property (including any cash payments)
received in exchange for the Purchased Shares in consummation of the Corporate Transaction, but only to the extent the Purchased
Shares are at the time covered by such right and appropriate adjustments shall be made to the price per share payable upon exercise
of the Repurchase Right to reflect the effect of the Corporate Transaction upon the Corporation’s capital structure; provided,
however, that the aggregate purchase price shall remain the same.

 

F.            ESCROW

 

1.            Deposit.
Upon issuance, the certificates for the Purchased Shares shall be deposited in escrow with the Corporation to be held in accordance
with the provisions of this Article F. Each deposited certificate shall be accompanied by a duly-executed Assignment Separate from
Certificate in the form of Exhibit I. The deposited certificates, together with any other assets or securities from time to time
deposited with the Corporation pursuant to the requirements of this Agreement, shall remain in escrow until such time or times
as the certificates (or other assets and securities) are to be released or otherwise surrendered for cancellation in accordance
with Paragraph F.3. Upon delivery of the certificates (or other assets and securities) to the Corporation, Owner shall be issued
a receipt acknowledging the number of Purchased Shares (or other assets and securities) delivered in escrow.

 

    5

     

    

 

2.            Recapitalization/Reorganization.
Any new, substituted or additional securities or other property which is by reason of any Recapitalization or Reorganization
distributed with respect to the Purchased Shares shall be immediately delivered to the Corporation to be held in escrow under
this Article F, but only to the extent the Purchased Shares are at the time subject to the escrow requirements hereunder. However,
all regular cash dividends on the Purchased Shares (or other securities at the time held in escrow) shall be paid directly to
Owner and shall not be held in escrow.

 

3.            Release/Surrender.
The Purchased Shares, together with any other assets or securities held in escrow hereunder, shall be subject to the following
terms relating to their release from escrow or their surrender to the Corporation for repurchase and cancellation:

 

(a)            Should
the Corporation elect to exercise the Repurchase Right with respect to any Purchased Shares, then the escrowed certificates for
those Purchased Shares (together with any other assets or securities attributable thereto) shall be surrendered to the Corporation
concurrently with the payment to Owner of any amount equal to the aggregate Purchase Price or Fair Market Value, as applicable,
paid for those Purchased Shares, and Owner shall cease to have any further rights or claims with respect to such Purchased Shares
(or other assets or securities attributable thereto.)

 

(b)            All
Purchased Shares which vest (and any other vested assets and securities attributable thereto) shall be released within thirty (30)
days after the dated of the termination of the Repurchase Right.

 

(c)            All
Purchased Shares (or other assets or securities) released from escrow shall nevertheless remain subject to the transfer restrictions
contained in Article D (including the Market Stand-Off), until such restriction terminates.

 

G.            SPECIAL TAX
ELECTION

 

1.            Section
83(b) Election. Under Code Section 83, the excess of the fair market value of the Purchased Shares on the date any forfeiture
restrictions applicable to such shares lapse over the Purchase Price paid for such shares will be reportable as ordinary income
on the lapse date. For this purpose, the term “forfeiture restrictions” includes the right of the Corporation to repurchase
the Purchased Shares pursuant to the Repurchase Right. Participant may elect under Code Section 83(b) to be taxed at the time the
Purchased Shares are acquired, rather than when and as such Purchased Shares cease to be subject to such forfeiture restrictions.
Such election must be filed with the Internal Revenue Service within thirty (30) days after the date of this Agreement. Even if
the fair market value of the Purchased Shares on the date of this Agreement equals the Purchase Price paid (and thus no tax is
payable), the election must be made to avoid adverse tax consequences in the future. THE FORM FOR MAKING THIS ELECTION IS ATTACHED
AS EXHIBIT III HERETO. PARTICIPANT UNDERSTANDS THAT THE FAILURE TO MAKE THIS FILING WITHIN THE APPLICABLE THIRTY (30)-DAY PERIOD
WILL RESULT IN THE RECOGNITION OF ORDINARY INCOME AS THE FORFEITURE RESTRICTIONS LAPSE.

 

2.            FILING
RESPONSIBILITY. PARTICIPANT ACKNOWLEDGES THAT IT IS PARTICIPANT’S SOLE RESPONSIBILITY, AND NOT THE CORPORATION’S, TO
FILE A TIMELY ELECTION UNDER CODE SECTION 83(b), EVEN IF PARTICIPANT REQUESTS THE CORPORATION OR ITS REPRESENTATIVES TO MAKE THIS
FILING ON HIS OR HER BEHALF.

 

    6

     

    

 

H.            GENERAL PROVISIONS

 

1.            Assignment.
The Corporation may assign the Repurchase Right to any person or entity selected by the Board including, without limitation,
one or more stockholders of the Corporation.

 

2.            No
Employment or Service Contract. Nothing in this Agreement or in the Plan shall confer upon Participant any right to continue
in Service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Corporation
(or any Subsidiary employing or retaining Participant) or of Participant, which rights are hereby expressly reserved by each, to
terminate Participant’s Service at any time for any reason, with or without cause.

 

3.            Notices.
Any notice required to be given under this Agreement shall be in writing and shall be deemed effective upon personal delivery or
upon deposit in the U.S. mail, registered or certified, postage prepaid and properly addressed to the party entitled to such notice
at the address indicated below such party’s signature line on this Agreement or at such other address as such party may designate
by ten (10) days advance written notice under this Paragraph to all other parties to this Agreement.

 

4.            No
Waiver. The failure of the Corporation in any instance to exercise the Repurchase Right shall not constitute a waiver of
any other repurchase rights and/or rights of first refusal that may subsequently arise under the provisions of this Agreement or
any other agreement between the Corporation and Participant. No waiver of any breach or condition of this Agreement shall be deemed
to be a waiver of any other or subsequent breach or condition, whether of like or different nature.

 

5.            Cancellation
of Purchased Shares. If the Corporation shall make available, at the time and place and in the amount and form provided
in this Agreement, the consideration for the Purchased Shares to be repurchased in accordance with the provisions of this Agreement,
then from and after such time, the person from whom such shares are to be repurchased shall no longer have any rights as a holder
of such shares (other than the right to receive payment of such consideration in accordance with this Agreement). Such shares shall
be deemed purchased in accordance with the applicable provisions hereof, and the Corporation shall be deemed the owner and holder
of such shares, whether or not the certificates therefor have been delivered as required by this Agreement.

 

6.            Participant
Undertaking. Participant hereby agrees to take whatever additional action and execute whatever additional documents the
Corporation may deem necessary or advisable in order to carry out or effect one or more of the obligations or restrictions imposed
on either Participant or the Purchased Shares pursuant to the provisions of this Agreement.

 

7.            Governing
Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware, as such
laws are applied to contracts entered into and performed in such State without resort to that State’s conflict-of-laws provisions.

 

8.            Successors
and Assigns. The provisions of this Agreement shall inure to the benefit of, and be binding upon, the Corporation and
its successors and assigns and Participant and Participant’s permitted assigns, legal representatives, heirs and legatees
of Participant’s estate, whether or not any such person shall have become a party to this Agreement and have agreed in writing
to join herein and be bound by the terms and conditions hereof.

 

    7

     

    

 

9.            Counterparts.
This Agreement may be executed in one or more counterparts. Each such counterpart shall be deemed to be an original and all
such counterparts shall together constitute one and the same instrument.

 

10.            Agreement
is Entire Contract. This Agreement constitutes the entire contract between the parties hereto with regard to the subject
matter hereof. This Agreement is made pursuant to the provisions of the Plan and shall in all respects be construed in conformity
with the terms of the Plan. A copy of the Plan as in effect on the date hereof is attached hereto as Exhibit IV.

 

    8

     

    

 

IN WITNESS WHEREOF, the parties have executed
this Agreement on the day and year first indicated above.

 

	 	AZIYO BIOLOGICS, INC.
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

	 	PARTICIPANT
	 	 
	 	Name:
	 	Title:
	 	Address:
	 	 

 

    9

     

    

 

EXHIBIT I

 

ASSIGNMENT SEPARATE FROM CERTIFICATE

 

FOR VALUE RECEIVED                                           
hereby sell(s), assign(s) and transfer(s) unto Aziyo Biologics, Inc. (the “Corporation”),                                 
  (                ) shares of
the Common Stock of the Corporation standing in his/her name on the books of the Corporation represented by Certificate No.           
herewith and do(es) hereby irrevocably constitute and appoint                             
Attorney to transfer the said stock on the books of the Corporation with full power of substitution in the premises.

 

	Dated:	 	 	 	 
	 	 
	 	 	 	Signature:	 

 

Instruction: Please do not fill in any blanks other than
the signature line. The purpose of this assignment is to enable the Corporation to exercise it Repurchase Right set forth in the
Agreement without requiring additional signatures on the part of Participant.

 

    10

     

    

 

EXHIBIT II

 

FORM OF CONFIDENTIALITY
AND 

PROPRIETARY RIGHTS ASSIGNMENT AGREEMENT

 

(Attached)

 

    11

     

    

 

EXHIBIT III

 

SECTION 83(b) TAX ELECTION

 

This statement is being made under Section 83(b) of the Internal
Revenue Code, pursuant to Treas. Reg. Section 1.83-2.

 

		(1)	The taxpayer who performed the services is:

 

Name:

Address:

Taxpayer Ident. No.:

 

		(2)	The property with respect to which the election is being made is ______ shares of the common stock
of Aziyo Biologics, Inc.

 

		(3)	The property was issued on _________, __________.

 

		(4)	The taxable year in which the election is being made is the calendar year ______________.

 

		(5)	The property is non-transferable and is subject to a risk of forfeiture unless and until certain
service requirements are met.

 

		(6)	The fair market value at the time of transfer (determined without regard to any restriction other
than a restriction which by its terms will never lapse) is $______ per share.

 

		(7)	The amount paid for such property is $_______ per share.

 

		(8)	A copy of this statement was furnished to Aziyo Biologics, Inc. for whom taxpayer rendered the
services underlying the transfer of property.

 

		(9)	This statement is executed as of: _________.

 

	 	 	 
	Spouse (if any)	 	Taxpayer

 

This form must be filed with the Internal
Revenue Service Center with which taxpayer files his or her Federal income tax returns. The filing must be made within thirty (30)
days after the execution date of the Stock Issuance Agreement and should be made by registered or certified mail, return receipt
requested. Participant must retain two (2) copies of the completed form for filing with his or her Federal and state tax returns
for the current tax year and an additional copy for his or her records.

 

    12

     

    

 

EXHIBIT IV

 

2015 STOCK OPTION/STOCK ISSUANCE PLAN

 

(Attached)

 

    13Exhibit 10.4

 

EMPLOYMENT AGREEMENT

 

This EMPLOYMENT AGREEMENT
(this “Agreement”), effective as of June 1, 2018, is by and between Aziyo Biologics, Inc., a Delaware corporation
(the “Company”) and Ronald Lloyd (the “Executive”).

 

Section 1.                  
Employment.

 

The Company shall employ
Executive, and Executive accepts employment with the Company, upon the terms and conditions set forth in this Agreement for the
period beginning on the date of this Agreement (such initial date of employment shall be referred to herein as the “Commencement
Date”) and ending as provided in Section 4 (the “Employment Period”).

 

Section 2.                  
Position and Duties.

 

(a)               
During the Employment Period, (i) Executive shall serve as the Company’s President and Chief Executive Officer subject
to supervision by the board of directors of the Company (the “Board”) and the Executive Chairman (the “Chairman”)
of the Company and (ii) Executive shall be a member of the Board. Executive agrees to perform such duties as well as such other
duties as the Chairman or Board may assign from time to time consistent with his position as the Company’s President and
Chief Executive Officer. Executive shall, if so requested by the Company, also serve without additional compensation, as an officer
or director of the Company and/or other entities from time to time directly or indirectly controlled by, under common control with,
or controlling, the Company (each, an “Affiliate”).

 

(b)               
Executive shall report to the Chairman and shall devote substantially all of his active business time and attention (except
for permitted vacation periods and reasonable periods of illness or other incapacity) to the business and affairs of the Company
and the Affiliates. Executive shall perform his duties and responsibilities to the best of his abilities in a diligent and professional
manner. During the Employment Period, without the Board’s approval, Executive shall not engage in any business activity which,
in the reasonable judgment of the Board, conflicts with the duties of Executive hereunder, whether or not such activity is pursued
for gain, profit or other pecuniary benefit. Executive may serve on the governing boards of other companies if Executive provides
the Board with all information related to the proposed service (including the company’s name, business activity and compensation)
and the Board provides express written consent to such service prior to Executive accepting or serving in such capacity.

 

Section 3.                  
Base Salary and Benefits.

 

(a)               
During the Employment Period, Executive’s base salary shall be $450,000 per annum (the “Base Salary”),
which Base Salary shall be payable in regular installments in accordance with the Company’s general payroll practices and
shall be subject to withholding and other payroll taxes and obligations. The Base Salary shall be reviewed at least annually by
the Board and is subject to adjustment, in the Board’s sole discretion, in connection therewith.

 

(b)                During
the Employment Period, Executive shall be eligible to receive an annual target bonus of fifty percent (50%) of the Base
Salary, which shall be conditioned upon, among other things, Executive’s performance and the performance of the
Company. The Board, after consultation with Executive, shall establish objectives and goals for Executive and the Company to
achieve in order for Executive to earn such annual bonus and such bonus shall also be subject to the Company’s standard
eligibility requirements (including the requirement that Executive be employed by the Company through the end of the calendar
year and at the time that the bonus amount is paid). The amount of any bonus payable to Executive shall be determined by the
Board in its discretion (and may be more or less than the target amount). Any bonus payable to Executive in respect of the
2018 calendar year shall be prorated based on the portion of such calendar year that Executive was employed by the Company.
The Company will pay any such bonus that has been duly earned and awarded by the Board as soon as administratively possible
following its approval by the Board and, in any event, no later than the later of (i) the fifteenth day of the third month
after the end of the Company’s fiscal year in which such bonus is earned or (ii) March 15 following the calendar year
in which such bonus is earned.

 

     

     

    

 

(c)               
Beginning on June 1, 2018, during the Employment Period and subject to eligibility requirements and Company policy, Executive
shall have the right, on the same basis as other employees of the Company, to participate in, and to receive benefits under, any
medical and dental insurance policy maintained by the Company and the Company shall, at its expense, pay a portion of the cost
of the premiums for such medical and dental insurance that is consistent with the Company’s then current employee benefit
policy if Executive elects to participate in such plans.

 

(d)               
Executive will be entitled to twenty (20) days of paid time off each calendar year (allocated ratably for any partial year
worked by Executive) that must be used by Executive in accordance with the Company’s paid time off policies as in effect
from time to time.

 

(e)               
Following the Commencement Date, subject to approval by the Board, the Company shall grant Executive a non-qualified option
under the Company’s 2015 Stock Option/Stock Issuance Plan (the “Option”) to purchase 1,920,500 shares
of the Company’s Common Stock. The exercise price per share of Common Stock under the Option shall be equal to fair market
value of a share of Common Stock on the date that the Option is granted to Executive and the Option shall vest according to the
following schedule: 25% of the shares issuable upon exercise of the Option shall vest on the twelve (12) month anniversary of such
grant date provided that Executive continues to be employed by the Company on such date and the remaining 75% of the shares issuable
upon exercise of the Option shall vest in twelve (12) equal quarterly installments commencing at the end of the quarter following
such twelve (12) month anniversary date provided that Executive continues to be employed by the Company at the end of each such
quarter; provided that all of such shares shall vest if a “Sale Transaction” (as defined below) is consummated while
Executive is employed by the Company and Executive’s employment with the Company is terminated without Cause (as defined
below) within six (6) months after such Sale Transaction is consummated or Executive resigns with Good Reason (as defined below)
within six (6) months after such Sale Transaction is consummated. The Company will use commercially reasonable efforts to obtain
the fair market value of a share of Common Stock and obtain the Board’s approval of the Option within sixty (60) days of
the Commencement Date.

 

(f)    
           The Company shall make a one-time payment of $50,000 to Executive on the last regularly scheduled payroll date in July,
2018 as long as Executive continues to be employed by the Company at such time.

 

(g)   
          The Company shall reimburse Executive for up to $15,000 of reasonable out-of-pocket expenses incurred by Executive to
move his household goods from his current residence in New Jersey to the Silver Spring, Maryland vicinity subject to Executive’s
compliance with the Company’s requirements with respect to documentation of such expenses. If the reimbursement amount payable
to Executive under this Section 3(g) is included in Executive’s income by the Company, then the Company shall provide a tax
gross-up payment to Executive in an amount equal to thirty-five percent (35%) of such reimbursement amount.

 

    -2-

     

    

 

Section 4.                  
Employment Period.

 

(a)               
Notwithstanding any other provision set forth in this Agreement or otherwise, Executive’s employment with the Company
is at-will and may be terminated by the Company at any time and for any reason. The Employment Period shall terminate upon the
earliest to occur of Executive’s resignation with or without Good Reason (as defined below), death or Disability (as defined
below) and the Company’s termination of Executive’s employment with or without Cause (as defined below). The last day
on which Executive is employed by the Company, whether termination is voluntary or involuntary, as a result of death or Disability,
is with or without Cause or by reason of Executive’s resignation with or without Good Reason, is referred to as the “Termination
Date.”

 

(b)               
If a Sale Transaction (as defined below) is consummated and within six (6) months thereafter either Executive’s employment
with the Company is terminated by the Company without Cause or Executive resigns from his employment with the Company for Good
Reason, then, so long as (i) Executive executes and delivers a general release of all claims in a form provided by the Company
(a “Release”), (ii) such Release becomes effective in accordance with the terms thereof and (iii) Executive
does not revoke or seek to revoke or nullify the Release, Executive shall be entitled to receive Base Salary for the period beginning
on such Termination Date and ending on the twelve (12) month anniversary of the Termination Date, in regular periodic installments
in accordance with the Company’s general payroll practices unless Executive has breached the provisions of Section 5,
Section 6 or Section 7 of this Agreement or his Release, in which case the provisions of Section 10 shall
apply. If Executive’s employment with the Company is terminated by the Company without Cause or Executive resigns from his
employment with the Company for Good Reason at any time prior to the consummation of a Sale Transaction, then, so long as (A) Executive
executes and delivers a Release, (B) such Release becomes effective in accordance with the terms thereof and (C) Executive does
not revoke or seek to revoke or nullify the Release, Executive shall be entitled to receive Base Salary for the period beginning
on such Termination Date and ending on the six (6) month anniversary of the Termination Date, in regular periodic installments
in accordance with the Company’s general payroll practices unless Executive has breached the provisions of Section 5,
Section 6 or Section 7 of this Agreement or his Release, in which case the provisions of Section 10 shall
apply. Such severance payments shall be subject to withholding and other payroll taxes and obligations. If the date that the Release
becomes effective and irrevocable (the “Release Effective Date”) is on or before December 10 of the calendar
year of Executive’s “separation from service” (within the meaning of Section 409A of the Internal Revenue Code
of 1986, as amended (the “Code”), and the final regulations and any other guidance promulgated thereunder (“Section
409A”)), any portion of the severance payments provided under this Section 4(b) that would be considered Deferred
Compensation Separation Benefits (as defined in Section 4(e) below) will be made to Executive on or before December 31 of
that calendar year or, if later, (1) such time as required by the payment schedule applicable to each payment as set forth in this
Section 4(b) or (2) such time as required by Section 4(e). If the Release Effective Date is after December 10 of
the calendar year of Executive’s “separation from service” (within the meaning of Section 409A), any portion
of the severance payments provided under this Section 4(b) that would be considered Deferred Compensation Separation Benefits
will be made to Executive on the first payroll date to occur during the calendar year following the calendar year in which such
separation from service occurs, or, if later, (I) the first payroll date following the Release Effective Date, (II) such time as
required by the payment schedule applicable to each payment as set forth in this Section 4(b) or (III) such time as required
by Section 4(e).

 

(c)               
Except as specifically provided in Section 4(b), if the Employment Period is terminated by the Company with or without
Cause, by reason of Executive’s resignation with or without Good Reason or by reason of Executive’s death or Disability,
Executive shall be entitled to receive his Base Salary only to the extent that such amount has accrued through the Termination
Date. Except as otherwise required by law or as specifically provided in Section 4(b), all of Executive’s rights
to salary, severance and other benefits hereunder, if any, accruing or payable after the Termination Date shall cease upon the
Termination Date.

 

    -3-

     

    

 

(d)               
Certain Definitions. For purposes of this Agreement, the following terms shall have the following meanings:

 

(i)                
“Cause” means: (A) Executive performing his duties, in the good faith opinion of the Board, in a grossly
negligent or reckless manner or with willful malfeasance; (B) Executive exhibiting habitual drunkenness or engaging in substance
abuse; (C) Executive committing any material violation of any state or federal law relating to the workplace environment (including,
without limitation, laws relating to sexual harassment or age, sex or other prohibited discrimination) or any material violation
of any Company policy; (D) Executive willfully failing or refusing to perform in the usual manner at the usual time those duties
which he regularly and routinely performs in connection with the business of the Company or such other duties reasonably related
to the capacity in which he is employed hereunder which may be assigned to him by the Board; (E) Executive performing any material
action when specifically and reasonably instructed not to do so by the Chairman or the Board; (F) Executive breaching Section
5, Section 6 or Section 7 hereof; (G) Executive committing any fraud or using or appropriating for his personal
use or benefit any funds, properties or opportunities of the Company not authorized by the Board to be so used or appropriated;
or (H) Executive being convicted of any felony or any other crime related to his employment or involving moral turpitude. The Company
shall not be entitled to terminate Executive for Cause pursuant to clause (C), (D), (E) or (F) unless the Company provides written
notice stating in reasonable detail the basis for termination and a fifteen (15) day opportunity to cure to Executive (unless (1)
the Company reasonably determines that providing such opportunity to cure to Executive is reasonably likely to have a material
adverse effect on its business, financial condition, results of operations, prospects or assets, (2) the facts and circumstances
underlying such termination are not able to be cured or (3) the Company has previously provided Executive an opportunity to cure
the applicable issue; in the case of (1), (2) or (3), the Company may terminate Executive without providing an opportunity to cure).

 

(ii)              
“Disability” means any disability or incapacity that (A) renders Executive unable to substantially perform
his duties hereunder for ninety (90) days during any 12-month period or (B) would reasonably be expected to render Executive unable
to substantially perform his duties for ninety (90) days during any 12-month period, in each case as determined by the Board in
its good faith judgment.

 

(iii)            
“Good Reason” means: (A) Executive failing to be the Chief Executive Officer of the surviving company
in a Sale Transaction (or, if there is a parent of the surviving company in a Sale Transaction, Executive failing to be the Chief
Executive Officer of such parent); (B) a material reduction in Executive’s job responsibilities and duties for the Company
that is not cured by the Company within fifteen (15) days after the Company’s receipt of written notice from Executive of
such event; (C) a material reduction in Executive’s Base Salary; or (D) a requirement imposed by the Company on Executive
that Executive’s principal place of employment be anywhere other than within a 50 mile radius of the Company’s current
office location in Silver Spring, Maryland, except for required travel on Company business to an extent substantially consistent
with Executive's business travel obligations, that, in any such case, is not cured by the Company within fifteen (15) days after
the Company’s receipt of written notice from Executive of such event.

 

(iv)              “Sale
Transaction” means (A) any transaction or series of related transactions (including, without limitation, any
reorganization, share exchange, consolidation or merger of the Company with or into any other entity but excluding any sale
of capital stock by the Company for capital raising purposes) (x) in which the holders of the Company’s outstanding
capital stock immediately before the first such transaction do not, immediately after any other such transaction, retain
stock or other equity interests representing at least sixty percent (60%) of the voting power of the surviving entity of such
transaction or (y) in which at least sixty percent (60%) of the Company’s outstanding capital stock is transferred
(calculated on an as-converted to Common Stock basis); or (B) any sale, conveyance, exclusive license or other disposition of
all or substantially all of the assets of the Company.

 

    -4-

     

    

 

(e)               
Notwithstanding anything to the contrary in this Agreement, no severance pay to be paid or provided to Executive, if any,
pursuant to this Agreement, when considered together with any other severance payments or separation benefits that are considered
deferred compensation under Section 409A (together, the “Deferred Compensation Separation Benefits”) will be
paid or otherwise provided to Executive until Executive has a “separation from service” within the meaning of Section
409A. Notwithstanding anything to the contrary in this Agreement, if Executive is a “specified employee” within the
meaning of Section 409A at the time of Executive’s termination, then the Deferred Compensation Separation Benefits that are
payable within the first six (6) months following Executive’s separation from service, will become payable on the first payroll
date that occurs on or after the date six (6) months and one (1) day following the date of Executive’s separation from service.
All subsequent Deferred Compensation Separation Benefits, if any, will be payable in accordance with the payment schedule applicable
to each payment. Notwithstanding anything herein to the contrary, if Executive dies following Executive’s separation from
service, but prior to the six (6) month anniversary of the separation from service, then any payments delayed in accordance with
this Section will be payable in a lump sum as soon as administratively practicable after the date of Executive’s death and
all other Deferred Compensation Separation Benefits will be payable in accordance with the payment schedule applicable to each
payment or benefit. Each payment and benefit payable under this Agreement is intended to constitute separate payments for purposes
of Section 1.409A-2(b)(2) of the Treasury Regulations. Any amount paid under this Agreement that satisfies the requirements of
the “short-term deferral” rule set forth in Section 1.409A-1(b)(4) of the Treasury Regulations will not constitute
Deferred Compensation Separation Benefits for purposes of this Section. Any amount paid under this Agreement that qualifies as
a payment made as a result of an involuntary separation from service pursuant to Section 1.409A-1(b)(9)(iii) of the Treasury Regulations
that does not exceed the Section 409A Limit will not constitute Deferred Compensation Separation Benefits for purposes of this
Section. For purposes of this Agreement, “Section 409A Limit” means two (2) times the lesser of: (i) Executive’s
annualized compensation based upon the annual rate of pay paid to Executive during Executive’s taxable year preceding Executive’s
taxable year of Executive’s termination of employment as determined under Treasury Regulation Section 1.409A-1(b)(9)(iii)(A)(1)
and any Internal Revenue Service guidance issued with respect thereto; or (ii) the maximum amount that may be taken into account
under a qualified plan pursuant to Section 401(a)(17) of the Code for the year in which Executive’s employment is terminated.
The foregoing provisions are intended to comply with the requirements of Section 409A so that none of the severance payments and
benefits to be provided hereunder will be subject to the additional tax imposed under Section 409A, and any ambiguities herein
will be interpreted to so comply.

 

Section 5.                  
Nondisclosure and Nonuse of Confidential Information.

 

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

 

    -5-

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

Section 6.                  
Inventions and Proprietary Rights.

 

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

 

    -6-

     

    

 

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

 

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

 

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

 

    -7-

     

    

 

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

 

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

 

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

 

Section 7.                  
Non-Compete, Non-Solicitation.

 

(a)                Executive
acknowledges that, in the course of his employment with the Company and/or the Restricted Affiliates (as defined below), he
has become familiar, or will become familiar, with trade secrets and with other confidential information concerning the
Company and the Restricted Affiliates and that his services have been and will be of special, unique and extraordinary value
to the Company and the Restricted Affiliates. Executive understands that the following restrictions may limit his ability to
earn a livelihood in a business similar to the business of the Company or any of the Restricted Affiliates, but he
nevertheless believes that he will receive sufficient consideration and other benefits as an equityholder and an employee of
the Company and as otherwise provided hereunder to clearly justify such restrictions which, in any event (given his
education, skills and ability), Executive does not believe would prevent him from otherwise earning a living. Executive
further understands that the provisions of Sections 5 through 7, inclusive, are reasonable and necessary to
preserve the business of the Company and the Restricted Affiliates. “Restricted Affiliate” means any Affiliate
for which, during the twenty-four (24) month period preceding the Termination Date, Executive served as an officer or
director or Executive provided any material services.

 

    -8-

     

    

 

(b)               
In light of Section 7(a), Executive agrees that while Executive is employed by the Company and for twelve (12) months
thereafter (such period, subject to automatic extension for an additional period equal to the period of any breach of the covenants
in this Section 7, shall be referred to herein as the “Non-Compete Period”), he shall not directly or
indirectly own, manage, operate, control, finance or invest in, participate in, consult with, render services for, act as an officer,
director, manager, partner, principal, agent, representative, contractor or advisor of or to, or in any manner engage in or be
associated with, hold any interest in, be employed by or represent any other business competing with the businesses or the services
or products of the Company or the Restricted Affiliates as such businesses and/or services or products exist or are in the process
of being formed, developed or acquired as of the Termination Date. Nothing herein shall prohibit Executive from being a passive
owner of not more than one percent (1%) of the outstanding stock of any class of a corporation which is publicly traded, so long
as Executive has no active participation in the business of such corporation.

 

(c)               
Furthermore, in light of Section 7(a), during the Non-Compete Period, Executive shall not directly or indirectly
through another person or entity: (i) induce or attempt to induce any employee or independent contractor of the Company or any
Restricted Affiliate to leave the employ of or engagement with the Company or such Restricted Affiliate, or in any way interfere
with the relationship between the Company or any such Restricted Affiliate, on the one hand, and any employee or independent contractor
thereof, on the other hand; (ii) hire or engage any person who was an employee or independent contractor of the Company until twelve
months after such individual’s relationship with the Company or any Restricted Affiliate has been terminated; (iii) induce
or attempt to induce any customer (it being understood that the term “customer” as used throughout this Agreement includes
any person or entity (x) that is receiving services from the Company or any Restricted Affiliate or (y) that is directly or indirectly
providing or referring business for the Company or any Restricted Affiliate), supplier, independent contractor, licensee or other
business relation of the Company or any Restricted Affiliate to cease doing business with the Company or any Restricted Affiliate,
or in any way interfere with the relationship between any such customer, supplier, independent contractor, licensee or business
relation, on the one hand, and the Company or any Restricted Affiliate, on the other hand; or (iv) solicit any customer of the
Company or any Restricted Affiliate in order to offer products or services similar to those offered by the Company or any Restricted
Affiliate.

 

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

 

(e)               
If, at the time of enforcement of Section 7, a court holds that the restrictions stated herein are unreasonable under
the circumstances then existing, Executive and the Company agree that the maximum period, scope or geographical area reasonable
under such circumstances shall be substituted for the stated period, scope or area so as to protect the Company to the greatest
extent possible under applicable law from improper competition.

 

(f)                
In the event of any breach or violation by Executive of any of the restrictions contained in Section 7, any time
period specified herein shall abate during the time of any such breach or violation thereof and that portion remaining at the time
of commencement of any such breach or violation shall not begin to run until such breach or violation has been cured in all respects.

 

    -9-

     

    

 

Section 8.                  
Enforcement.

 

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

 

Section 9.                  
Insurance.

 

The Company or any
of the Affiliates may, for its own benefit or for the benefit of its financing sources, maintain “keyman” life and
disability insurance policies covering Executive. Executive shall cooperate with the Company and/or the Affiliates and provide
such information or other assistance as the Company and/or the Affiliates and reasonably may request in connection with obtaining
and maintaining such policies.

 

Section 10.  
               Severance Payments.

 

In addition to the
foregoing, and not in any way in limitation thereof, or in limitation of any right or remedy otherwise available to the Company,
if Executive violates any provision of Section 5, Section 6 or Section 7 or his Release, any severance payment
then or thereafter due from the Company to Executive shall be terminated forthwith and the Company’s obligation to pay and
Executive’s right to receive such severance payments shall terminate and be of no further force or effect, in each case without
limiting or affecting Executive’s obligations under such Section 5, Section 6 and Section 7 and his
Release or the Company’s other rights and remedies available at law or equity.

 

    -10-

     

    

 

Section 11.                
Representations and Warranties of Executive.

 

Executive hereby
represents and warrants to the Company that (a) he has the full capacity to execute and deliver, and to perform all of his
obligations under, this Agreement; (b) neither the execution and delivery of this Agreement or his employment with the
Company nor the performance of his obligations under this Agreement will result directly or indirectly in a violation or
breach of: (i) any agreement or obligation to which he or any of his affiliates is or may be bound (including, without
limitation, any employment agreement, consulting agreement, non-competition or non-solicitation agreement, confidentiality
agreement or other similar agreement with any other person or entity); or (ii) any law, rule or regulation; (c) the terms and
conditions of this Agreement are fair and reasonable to him in all respects and the restraints imposed herein and the
enforcement of the terms and conditions hereof will not lead to any hardship or inconvenience or cause him to be unable to
engage in lawful professions, trades or businesses; (d) he has never been charged with, or convicted of, any criminal offense
(including, without limitation, any crime related to health care and/or the provision of services paid for by Medicare,
Medicaid or any other state or federal health care program) and he has never been excluded, debarred or suspended from
participation, or has otherwise become ineligible to participate, in any state or federal health care program, including
Medicare or Medicaid, or any state or federal procurement or non-procurement program; and (e) this Agreement constitutes the
legal, valid and binding obligation of Executive, and is enforceable against Executive in accordance with its terms.

 

Section 12.  
             Notices.

 

Any notice or other
communication required or permitted to be delivered to any party under this Agreement shall be in writing and shall be deemed properly
delivered, given and received: (a) if delivered by hand, when delivered; (b) if sent by registered, certified or first class mail,
the third business day after being sent; and (c) if sent by overnight delivery via a national courier service, one business day
after being sent, in each case to the address set forth beneath the name of such party below (or to such other address as such
party shall have specified in a written notice given to the other party hereto in accordance with this Section):

 

If to the Company,
to:

 

Azyio Biologics, Inc.

12510 Prosperity Drive

Suite 1-370

Silver Spring, MD 20904

Attention: Board of Directors

If to Executive, to:

 

Ronald Lloyd

[XXX]

[XXX]

 

Section 13.  
         General Provisions.

 

(a)               
Severability. It is the desire and intent of the parties hereto that the provisions of this Agreement be enforced
to the fullest extent permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought.
Accordingly, if any particular provision of this Agreement shall be adjudicated by a court of competent jurisdiction to be invalid,
prohibited or unenforceable for any reason, such provision, as to such jurisdiction, shall be ineffective, without invalidating
the remaining provisions of this Agreement or affecting the validity or enforceability of this Agreement or affecting the validity
or enforceability of such provision in any other jurisdiction. Notwithstanding the foregoing, if such provision could be more narrowly
drawn so as not to be invalid, prohibited or unenforceable in such jurisdiction, it shall, as to such jurisdiction, be so narrowly
drawn, without invalidating the remaining provisions of this Agreement or affecting the validity or enforceability of such provision
in any other jurisdiction.

 

    -11-

     

    

 

(b)               
 Complete Agreement. This Agreement embodies the complete agreement and understanding among the parties and supersedes
and preempt any prior understandings, agreements or representations by or among the parties, written or oral, which may have related
to the subject matter hereof including, without limitation, any summaries of terms or offer letters but expressly excluding any
Confidentiality and Proprietary Rights Assignment Agreement between Executive and the Company, which shall continue in full force
and effect.

 

(c)               
Right of Set Off. In the event of a breach by Executive of the provisions of this Agreement, the Company is hereby
authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all amounts
at any time owing by the Company or the Affiliates to Executive against any and all of the obligations of Executive to the Company
or the Affiliates now or hereafter existing.

 

(d)               
Successors and Assigns. Except as otherwise provided herein, this Agreement shall bind and inure to the benefit of
and be enforceable by Executive and the Company and their respective successors, assigns, heirs, representatives and estate; provided,
however, that the rights and obligations of Executive under this Agreement shall not be assigned without the prior written consent
of the Company. The Company may assign this Agreement and its rights, together with its obligations, hereunder in connection with
any sale, transfer or other disposition of all or substantially all of its assets or business, whether by merger, consolidation
or otherwise, including a merger of the Company. The rights of the Company hereunder are enforceable by the Affiliates, who are
the intended third party beneficiaries hereof. Any assignment made in violation of this Agreement is null and void.

 

(e)               
Governing Law. THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE DOMESTIC LAWS OF THE STATE
OF MARYLAND WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR CONFLICTING PROVISION OR RULE (WHETHER MARYLAND OR ANY OTHER JURISDICTION),
THAT WOULD CAUSE THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF MARYLAND TO BE APPLIED.

 

(f)                
Jurisdiction and Venue.

 

(i)                
The Company and Executive hereby irrevocably and unconditionally submit, for themselves and their property, to the exclusive
jurisdiction of any State of Maryland court or federal court in the State of Maryland and any appellate court from any thereof,
in any action or proceeding arising out of or relating to this Agreement or for recognition or enforcement of any judgment, and
the Company and Executive hereby irrevocably and unconditionally agree that all claims in respect of any such action or proceeding
may be heard and determined in any such State of Maryland court or, to the extent permitted by law, in such federal court. The
Company and Executive irrevocably waive, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance
of such action or proceeding in any such court. The Company and Executive agree that a final judgment in any such action or proceeding
shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.
The Company and Executive agree that in the event of any action or proceeding arising out of or relating to the enforcement of
this Agreement, the non-prevailing party shall pay all costs and expenses (including reasonable legal fees and expenses) of the
prevailing party incurred in connection with such action or proceeding.

 

    -12-

     

    

 

(ii)              
 The Company and Executive irrevocably and unconditionally waive, to the fullest extent they may legally and effectively
do so, any objection that they may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of
or relating to this Agreement in any State of Maryland court or federal court in the State of Maryland and any appellate court
of such court.

 

(iii)            
Notwithstanding clauses (i)-(ii), the parties intend to and hereby confer jurisdiction to enforce the covenants contained
in Section 7 upon the courts of any jurisdiction within the geographical scope of such covenants. If the courts of any one
or more of such jurisdictions hold such covenants wholly or partially invalid or unenforceable by reason of the breadth of such
scope or otherwise, it is the intention of the parties that such determination not bar or in any way affect the Company’s
right to the relief provided above in the courts of any other jurisdiction within the geographical scope of such covenants, as
to breaches of such covenants in such other respective jurisdictions, such covenants as they relate to each jurisdiction being,
for this purpose, severable into diverse and independent covenants.

 

(g)               
Amendment. The provisions of this Agreement may be amended only with the prior written consent of the Company and
Executive and no course of conduct or failure or delay in enforcing the provisions of this Agreement shall affect the validity,
binding effect or enforceability of this Agreement or any provision hereof.

 

(h)               
Headings. The section headings contained in this Agreement are for reference purposes only and shall not affect in
any way the meaning or interpretation of this Agreement.

 

(i)                
Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original
and all of which together shall constitute one and the same instrument.

 

(j)                
Survival. The obligations and undertakings set forth in Section 4 through Section 8, inclusive, and
Section 10 through Section 13, inclusive, and any Release that Executive executes shall survive the termination of
this Agreement or termination of Executive’s employment with the Company for any reason whatsoever.

 

(k)               
WAIVER OF JURY TRIAL. NO PARTY TO THIS AGREEMENT OR ANY ASSIGNEE, SUCCESSOR, HEIR OR PERSONAL REPRESENTATIVE OF A
PARTY SHALL SEEK A JURY TRIAL IN ANY LAWSUIT, PROCEEDING, COUNTERCLAIM OR ANY OTHER LITIGATION PROCEDURE BASED UPON OR ARISING
OUT OF THIS AGREEMENT OR ANY OF THE OTHER AGREEMENTS OR THE DEALINGS OR THE RELATIONSHIP BETWEEN THE PARTIES. NO PARTY WILL SEEK
TO CONSOLIDATE ANY SUCH ACTION, IN WHICH A JURY TRIAL HAS BEEN WAIVED, WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT OR HAS
NOT BEEN WAIVED. THE PROVISIONS OF THIS SECTION HAVE BEEN FULLY DISCUSSED BY THE PARTIES HERETO, AND THESE PROVISIONS SHALL BE
SUBJECT TO NO EXCEPTIONS. NEITHER PARTY HAS IN ANY WAY AGREED WITH OR REPRESENTED TO THE OTHER PARTY THAT THE PROVISIONS OF THIS
SECTION WILL NOT BE FULLY ENFORCED IN ALL INSTANCES.

 

*   *   *   *

 

    -13-

     

    

 

IN WITNESS WHEREOF,
the parties hereto have executed this Employment Agreement as of the date first written above.

 

COMPANY:

 

	AZIYO BIOLOGICS,
    INC.	 
	 	 
	By:	/s/ Kevin Rakin	 
	 	Name: Kevin Rakin	 
	 	Title:  Executive Chairman   	 
	 	 
	EXECUTIVE:	 
	 	 
	/s/ Ronald Lloyd	 
	RONALD LLOYD

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00314-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00314-of-00352.parquet"}]]