Document:

Lock-Up Agreement

 

 

June 5, 2013

 

William Blair & Company, L.L.C.

222 W. Adams Street

Chicago, IL 60606

 

Re:Private Placement of Securities

 

Ladies and Gentlemen:

 

The undersigned understands that William
Blair & Company, L.L.C. proposes to act as the exclusive placement agent (the “Placement Agent”), for Bacterin
International Holdings, Inc., a Delaware corporation (the “Company”), in connection with the proposed private placement
(the “Offering”) of shares (the “Shares”) of common stock, par value $0.000001 per share (“Common
Stock”), and warrants to purchase Common Stock (the “Warrants” and together with the Shares, the “Securities”),
of the Company.

 

In order to induce the Placement Agent to
continue its efforts in connection with the Offering, the undersigned hereby agrees that for a period (the “Lock-Up Period)
beginning on the date hereof and ending [30] days following the date of effectiveness of the registration statement registering
the resale of the Shares and shares of Common Stock issuable upon exercise of the Warrants filed by the Company with the Securities
and Exchange Commission in connection with such Offering, the undersigned will not, without the prior written consent of the Placement
Agent, directly or indirectly, (1) offer, sell, contract to sell, pledge, sell any option or contract to purchase, purchase any
option or contract to sell, grant any option, right or warrant to purchase, lend, or otherwise transfer or dispose of any shares
of Common Stock, or any securities convertible into or exercisable or exchangeable for the Common Stock (including, without limitation,
shares of Common Stock or any such securities which may be deemed to be beneficially owned by the undersigned in accordance with
the rules and regulations promulgated under the Securities Act of 1933, as the same may be amended or supplemented from time to
time (such shares of securities, the “Beneficially Owned Shares”)); (2) enter into any sap or other arrangement that
transfers to another, in whole or in part, any of the economic consequences of ownership of the Beneficially Owned Shares, Common
Stock, or any securities convertible into or exchangeable for the Common Stock, regardless of whether any such transaction described
herein is to be settled by delivery of the Common Stock or such other securities, or by delivery of cash or otherwise; (3) make
any demand for, or exercise any right with respect to, the registration of any shares of the Beneficially Owned Shares, Common
Stock or any security convertible into or exercisable or exchangeable for the Common Stock; or (4) publicly announce any intention
to do any of the foregoing; provided, however, that the obligations under this letter agreement (the “Lock-Up Agreement”)
shall not apply to any Securities acquired in connection with the Offering.

 

    	 

    	 

    

 

Notwithstanding the foregoing, the restrictions
set forth in clause (1) and (2) above shall not apply to (a) transfers (i) as a bona fide gift or gifts, or by will or intestate
succession, provided that the donee or donees or transferee or transferees thereof agree to be bound in writing by the restrictions
set forth herein, (ii) to any trust for the direct or indirect benefit of the undersigned or the immediate family of the undersigned,
provided that the trustee of the trust agrees to be bound in writing by the restrictions set forth herein, and provided further
that any such transfer shall not involve a disposition for value, (iii) with the prior written consent of the Placement Agent or
(iv) effected pursuant to any exchange of “underwater” options with the Company; provided that in the case of any transfer
or distribution pursuant to clause (i), (ii), (iii) or (iv), no filing under Section 16(a) of the Securities Exchange Act of 1934,
as amended (the “Exchange Act”) shall be required or shall be voluntarily made during the Lock-Up Period; (b) the acquisition
or exercise of an option or warrant to purchase shares of Common Stock (or any securities convertible into or exercisable or exchangeable
for Common Stock), including the sale of a portion of stock to be issued in connection with such exercise to finance a “cashless”
exercise, provided that any such shares issued upon exercise of such option or warrant (or any securities convertible into or exercisable
or exchangeable for Common Stock) shall continue to be subject to the applicable provisions of this Lock-Up Agreement; (c) the
purchase or sale of the Company’s securities pursuant to a plan, contract or instruction that satisfies all the requirements
of Rule 10b5-1(c)(1)(i) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), that was in effect
prior to the date hereof; or (d) the disposition of shares of Common Stock to satisfy any tax withholding obligations upon the
vesting of shares of restricted Common Stock held by the undersigned. For purposes of this Lock-Up Agreement, “immediate
family” shall mean any relationship by blood, marriage or adoption, not more remote than first cousin. None of the restrictions
set forth in the Lock-Up Agreement shall apply to Common Stock acquired after the date hereof in open market transactions, provided
that no filing under Section 16(a) of the Exchange Act shall be required or shall be voluntarily made in connection with subsequent
sales of Common Stock acquired in such open market transactions. In addition, the undersigned may at any time after the date hereof
enter into a trading plan or modify an existing trading plan that satisfies all of the requirements of Rule 10b5-1(c)(1)(i)(B)
under the Exchange Act if then permitted by the Company and applicable law, provided that the Common Stock or other securities
subject to a new trading plan may not be sold during the Lock-Up Period. Moreover, if the undersigned is a partnership, limited
liability company, trust, corporation or similar entity, it may distribute the Common Stock or Beneficially Owned Shares to its
partners, members or stockholders, or to affiliates under the control of the undersigned, provided, however, that in each such
case, prior to any such transfer, each transferee shall execute a duplicate form of this Lock-Up Agreement or execute an agreement,
reasonably satisfactory to the Placement Agent, pursuant to which each transferee shall agree to receive and hold such Common Stock
or Beneficially Owned Shares subject to the provisions hereof, and there shall be no further transfer except in accordance with
the provisions hereof.

 

The foregoing restrictions are expressly
agreed to preclude the undersigned from engaging in any hedging or other transaction which is designed to or reasonably expected
to lead to or result in a sale or disposition of the Beneficially Owned Shares or Common Stock even in such Beneficially Owned
Shares or Common Stock would be disposed of by someone other than the undersigned. Such prohibited hedging or other transactions
would include, without limitation, any short sale or any purchase, sale or grant of any right (including, without limitation, any
put option or put equivalent position or call option or call equivalent position) with respect to any of the Beneficially Owned
Shares or Common Stock or with respect to any security that includes, relates to, or derives any significant part of its value
from such Beneficially Owned Shares of Common Stock.

 

    	 

    	 

    

 

The undersigned hereby agrees and consent
to the entry of stop transfer instructions with the Company’s transfer agent against the transfer of securities of the Company
held by the undersigned during the Lock-Up Period (as may have been extended pursuant hereto), except in compliance with this Lock-Up
Agreement.

 

The undersigned understands that, if the
Company notifies the Placement Agent in writing that it does not intend to proceed with the Offering, or if the Securities Purchase
Agreement executed by Purchasers in connection with the Offering does not become effective, or if the Offering shall terminate
or be terminated prior to payment for and delivery of the Securities to be sold thereunder, or if the Purchase Agreement has not
been executed within 30 days of the date hereof, this Lock-Up Agreement shall be terminated and the undersigned shall be released
from all obligations under this Lock-Up Agreement.

 

The undersigned hereby represents and warrants
that the undersigned has full power and authority to enter into this Lock-Up Agreement. This Lock-Up Agreement is irrevocable and
all authority herein conferred or agreed to be conferred shall survive the death or incapacity of the undersigned and any obligations
of the undersigned shall be binding upon the heirs, personal representatives, successors and assigns or the undersigned. The undersigned
agrees that Purchasers of the Securities in the Offering shall be intended third-party beneficiaries of the undersigned’s
obligations under this Lock-Up Agreement.

 

This Lock-Up Agreement shall be governed
by and construed in accordance with the laws of the State of New York, without regard to conflict of laws principles thereof.

 

[Signature page follows.]

 

    	 

    	 

    

 

	 	 	 	 	 	 	 	Very truly yours,
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	Name of Security Holder (Print exact name)	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	Signature	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	If not signing in an individual capacity:	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	Name of Authorized Signatory (Print)	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	Title of Authorized Signatory (Print)May 28, 2013

 

 

Mr. Xavier Zang

2467 21st Ave.

San Francisco, CA 94116

  

Dear Xavier,

 

On behalf of ZipRealty, Inc. (the "Company"),
I am pleased to invite you to join the Company as President, Powered by Zip. In this position, you will report directly to me and
you will be expected to devote your full business time, attention and energies to the performance of your duties with the Company.
This offer is contingent on you being able to satisfactorily clear our background check.

 

The terms of this offer of employment
are as follows:

 

1.Compensation. The Company will
pay you an annual salary of $275,000, payable on a semi-monthly basis, in accordance with the Company's standard payroll policies.
Furthermore, you will be eligible to participate in all employee benefit programs currently adopted by the Company.

 

2.Bonus. For fiscal year 2013,
you are eligible to earn an Incentive Payment equal to 35% of your annual base salary upon achievement of “Target Goals,”
or in an amount greater than 35% of your annual base salary if you exceed such Target Goals, pursuant to metrics that we will agree
upon within sixty (60) days of your start date. The Target Goals shall be subject to the approval of the Compensation Committee
of the Board of Directors.

 

3.At-Will Employment. You should
be aware that your employment with the Company is for no specified period and constitutes "at-will" employment. As a
result, you are free to terminate your employment at any time, for any reason or for no reason. Similarly, the Company is free
to terminate your employment at any time, for any reason or for no reason. In the event of termination of your employment, you
will not be entitled to any payments, benefits, damages, awards or compensation other than as may otherwise be available in accordance
with applicable law.

 

4.Proprietary Information Agreement.
As a condition of accepting this offer of employment, you will be required to complete, sign and return the Company’s standard
form of Employee Proprietary Information Agreement.

 

5.Health and Welfare. You will
be eligible to participate in our medical, dental, life insurance/AD&D and long-term disability insurance plan. Eligible employees
may enroll on the first of the month following their first day of employment.

 

    	 

    	 

    

 

6.401 (k) Qualified Retirement Plan. The Company provides eligible employees a 401 (k) Qualified Retirement plan. Eligible
employees may enroll on the first day of the month following the date of employment.

 

7.Paid Time Off (PTO). As an
Officer of the Company, you will earn 16 hours of PTO for each month worked. PTO may be carried over to the following year, up
to a maximum of one and one-half of your monthly accrual rate times twelve. PTO can be used as vacation time, as sick time, or
to take care of personal matters.

 

8.Change of Control and Indemnification
Agreement. As a condition of accepting this offer of employment, you will be required to complete, sign and return the Company’s
standard form of Change of Control and Indemnification Agreement.

 

9.Stock Option Grant. We will
recommend to the Compensation Committee of the Board of Directors and the Board of Directors of the Company that you be granted
a stock option entitling you to purchase up to 350,000 shares of Common Stock of the Company at the then current fair market value
and as approved by the Compensation Committee at the next meeting of the Board of Directors. This stock option will be subject
to the terms and conditions of the Company’s Equity Incentive Plan and Stock Option Agreement, including vesting requirements.
The current vesting schedule for stock options provides for 25% vesting after one year, with the remaining 75% vesting monthly
over the subsequent three-year period, subject to you remaining in a continued service relationship with the Company.

 

10.Restricted Stock Award. We
will recommend to the Compensation Committee of the Board of Directors and the Board of Directors of the Company that you be awarded
30,000 shares of restricted stock, as approved by the Compensation Committee at the next meeting of the Board of Directors. This
award will be subject to the terms and conditions of the Company’s Equity Incentive Plan and Restricted Stock Award Agreement.
We will recommend vesting in full of the restricted stock award on March 31, 2014, subject to your remaining in a continued service
relationship with the Company. Upon vesting, 50% of the restricted stock grant will be subject to a mandatory one-year holding
period as set forth in the Company’s Corporate Governance Guidelines.

 

11.Employee Classification. Your
position is classified as exempt pursuant to the Fair Labor Standards Act (FLSA) and current applicable state laws.

 

12.General. This offer letter,
when signed by you, sets forth the terms of your employment with the Company and supersedes any and all prior representations and
agreements, whether written or oral. This agreement can only be amended in a writing signed by you and an officer of the company.
Any waiver of a right under this agreement must be in writing. This agreement will be governed by California law.

 

    	 

    	 

    

 

 

Xavier, I believe ZipRealty has a promising
future, and it requires talented, dedicated and motivated people like you to make it successful. We are delighted that you are
interested in becoming a part of the Zip Team. If the foregoing terms are agreeable, please indicate your acceptance by signing
this letter in the space provided below and returning it to me. This offer will terminate if not accepted on or before June 3,
2013.

 

We look forward to you joining our team!

 

Sincerely,

 

ZipRealty, Inc.

 

/s/ Lanny Baker

 

 

Lanny Baker

President & Chief Executive Officer

 

AGREED AND ACCEPTED:

 

 

Xavier Zang: /s/ Xavier Zang

 

Date: May 28, 2013

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