Document:

Executive Change-in-Control Severance Agreement

 Exhibit 10.21 

 

 

 EXECUTIVE CHANGE-IN-CONTROL SEVERANCE AGREEMENT 

THIS EXECUTIVE CHANGE-IN-CONTROL SEVERANCE AGREEMENT is made, entered into, and is effective as of the 9th day of August 2010
(hereinafter referred to as the “Effective Date”), by and between Mueller Water Products, Inc. (the “Company”), a Delaware corporation, and Paul Ciolino (the “Executive”). Executive acknowledges and represents that any
and all prior agreements for change in control severance are terminated and replaced entirely by this Agreement. 
 WHEREAS, the
Executive is currently employed by the Company and possesses considerable experience and knowledge of the business and affairs of the Company concerning its policies, methods, personnel, and operations; and 

WHEREAS, the Company is desirous of assuring insofar as possible, that it will continue to have the benefit of the Executive’s
services; and the Executive is desirous of having such assurances; and 
 WHEREAS, the Company recognizes that circumstances may
arise in which a Change in Control of the Company occurs, through acquisition or otherwise, thereby causing uncertainty of employment without regard to the Executive’s competence or past contributions. Such uncertainty may result in the loss of
the valuable services of the Executive to the detriment of the Company and its shareholders; and 
 WHEREAS, both the Company
and the Executive are desirous that any proposal for a Change in Control or acquisition will be considered by the Executive objectively and with reference only to the business interests of the Company and its shareholders; and 

WHEREAS, the Executive will be in a better position to consider the Company’s best interests if the Executive is afforded reasonable
security, as provided in this Agreement, against altered conditions of employment which could result from any such Change in Control or acquisition. 

NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements of the parties set forth in this Agreement,
and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, agree as follows: 

Article 1. Definitions 

Wherever used in this Agreement, the following terms shall have the meanings set forth below and, when the meaning is intended, the
initial letter of the word is capitalized: 
  

	 	(a)	“Agreement” means this Executive Change-in-Control Severance Agreement. 

 

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	 	(b)	“Base Salary” means, at any time, the then regular annual rate of pay which the Executive is receiving as annual salary, excluding amounts:
(i) received under short-term or long-term incentive or other bonus plans, regardless of whether or not the amounts are deferred, or (ii) designated by the Company as payment toward reimbursement of expenses. 

 

	 	(c)	“Beneficial Owner” shall have the meaning ascribed to such term in Rule 13d-3 of the General Rules and Regulations under the Exchange Act.

  

	 	(d)	“Board” means the Board of Directors of the Company. 

  

	 	(e)	“Cause” shall be determined solely by the Committee in the exercise of good faith and reasonable judgment, and shall mean the occurrence of any one or
more of the following: 

  

	 	(i)	The Executive’s conviction of a felony or conviction of any crime involving fraud or dishonesty; 

 

	 	(ii)	The Executive’s willful and continued refusal to perform the duties of his or her position in all material respects (other than any such failure resulting from the
Executive’s incapacity due to physical or mental illness), that continues for more than 15 business days after the Company gives the Executive written notice of the failure, specifying what duties the Executive failed to perform and an
opportunity to cure; 

  

	 	(iii)	fraudulent preparation of financial information of the Company; or 

  

	 	(iv)	The Executive’s willful engagement in conduct that is demonstrably and materially injurious to the Company, monetarily or otherwise, provided that no act or
failure to act on the Executive’s part shall be deemed “willful” unless done, or omitted to be done, by the Executive not in good faith and without reasonable belief that the action or omission was in the best interests of the
Company. 

  

	 	(f)	“Change in Control” of the Company shall mean the occurrence of any one (1) or more of the following events: 

 

	 	(i)	Any Person (other than the Company or any corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their
ownership of stock of the Company, and any trustee or other fiduciary holding securities under an employee benefit plan of the Company or such proportionately owned corporation) is or becomes the Beneficial Owner, directly or indirectly, of
securities of the Company representing more than thirty percent (30%) of the combined voting power of the Company’s then outstanding securities; 

 

	 	(ii)	 During any period of not more than thirty-six (36) consecutive months, individuals who at the beginning of such period constitute the Board of
Directors of the Company, and any new director whose election by the Board or nomination for election by the Company’s stockholders was approved by a vote 

 

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of at least a majority (rounded up to the nearest whole number) of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for
election was previously so approved, cease for any reason to constitute at least a majority thereof; 

  

	 	(iii)	The consummation of a merger or consolidation of the Company with any other corporation, other than: (i) a merger or consolidation which would result
in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than sixty-six and two-thirds
percent (66-2/3%) of the combined voting power of the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation; or (ii) a merger or consolidation effected to implement a
recapitalization of the Company (or similar transaction) in which no Person acquires more than thirty percent (30%) of the combined voting power of the Company’s then outstanding securities; or 

 

	 	(iv)	The Company’s stockholders approve a plan or an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets (or
any transaction or series of transactions having a similar effect). 

  

	 	(g)	“Code” means the Internal Revenue Code of 1986, as amended. 

 

	 	(h)	“Committee” means the Compensation Committee of the Board of Directors of the Company, or, if no Compensation Committee exists, then the full Board of
Directors of the Company, or a committee of Board members, as appointed by the full Board to administer this Agreement. 

  

	 	(i)	“Company” means Mueller Water Products, Inc., a Delaware corporation (including any and all subsidiaries), or any successor thereto as provided in
Article 9 herein. 

  

	 	(j)	“Disability” or “Disabled” means that Executive has been physically or mentally incapacitated so as to render Executive incapable of
performing the essential functions of any substantial gainful activity, or Executive has received income replacement benefits under a Company plan for at least three months, and, in either instance, that incapacity is expected to result in death or
to last for a continuous period of at least 12 months. Executive’s receipt of disability benefits under the Company’s long-term disability plan or receipt of Social Security disability benefits shall be deemed conclusive evidence of
Disability for purposes of this Agreement. 

  

	 	(k)	“Effective Date” means the date this Agreement is approved by the Board, or such other date as the Board shall designate in its resolution approving
this Agreement, and as specified in the opening sentence of this Agreement. 

  

	 	(l)	“Effective Date of Termination” means the date on which a Qualifying Termination occurs, as provided in Section 2.2 herein, which triggers the
payment of Severance Benefits hereunder. 

  

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	 	(m)	“Exchange Act” means the Securities Exchange Act of 1934, as amended. 

 

	 	(n)	“Federal Funds Rate” shall mean the “Federal Funds Rate” as issued in the Money Rates column of The Wall Street Journal.

  

	 	(o)	“Good Reason” means, without the Executive’s express written consent, the occurrence after a Change in Control of the Company of any one
(1) or more of the following to the extent that there is, or would be if not corrected, a material negative change in the Executive’s employment relationship with the Company: 

 

	 	(i)	The assignment of the Executive to duties materially inconsistent with the Executive’s authorities, duties, responsibilities, and status as an executive and/or
officer of the Company, or a material reduction or alteration in the nature or status of the Executive’s authorities, duties, or responsibilities from those in effect as of ninety (90) calendar days prior to the Change in Control, other
than an insubstantial and inadvertent act that is remedied by the Company promptly after receipt of notice thereof given by the Executive; 

  

	 	(ii)	The Company’s requiring the Executive to be based at a location in excess of fifty (50) miles from the location of the Executive’s principal job location
or office immediately prior to the Change in Control; except for required travel on the Company’s business to an extent substantially consistent with the Executive’s then present business travel obligations; 

 

	 	(iii)	A reduction by the Company of the Executive’s Base Salary in effect on the Effective Date hereof, or as the same shall be increased from time to time;

  

	 	(iv)	The failure of the Company to continue in effect any of the Company’s short- and long-term incentive compensation plans, or employee benefit or retirement plans,
policies, practices, or other compensation arrangements in which the Executive participates unless such failure to continue the plan, policy, practice, or arrangement pertains to all plan participants generally; or the failure by the Company to
continue the Executive’s participation therein on substantially the same basis, both in terms of the amount of benefits provided and the level of the Executive’s participation relative to other participants, as existed immediately prior to
the Change in Control of the Company; 

  

	 	(v)	The failure of the Company to obtain a satisfactory agreement from any successor to the Company to assume and agree to perform the Company’s obligations under this
Agreement, as contemplated in Article 9 herein; and 

  

	 	(vi)	A material breach of this Agreement by the Company which is not remedied by the Company within ten (10) business days of receipt of written notice of such breach
delivered by the Executive to the Company. 

 Unless the Executive becomes Disabled, the Executive’s right to
terminate employment for Good Reason shall not be affected by the Executive’s incapacity due to physical or mental illness. The Executive’s continued employment shall not constitute consent to, or a waiver of rights with respect to, any
circumstance constituting Good Reason herein. 
  

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	 	(p)	“Notice of Termination” shall mean a written notice which shall indicate the specific termination provision in this Agreement relied upon, and shall
set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive’s employment under the provision so indicated. 

 

	 	(q)	“Notice of Termination for Good Reason” shall mean a notice that (i) indicates the specific termination provision or provisions relied upon,
(ii) sets forth in reasonable detail the facts and circumstances claimed to provide a basis for Termination for Good Reason and (iii) indicates a date of termination of employment. The failure by Executive to set forth in the Notice of
Termination for Good Reason any facts or circumstances which contribute to the showing of Good Reason shall not waive any right of Executive hereunder or preclude Executive from asserting such fact or circumstance in enforcing his rights hereunder.
The Notice of Termination for Good Reason shall provide for a date of termination of employment not less than thirty (30) nor more than sixty (60) days after the date such Notice of Termination for Good Reason is given, provided that in
the case of the events set forth in Article I, Section (o) 6(b)(i) or (ii), the date may be not less than twenty (20) days after the giving of such notice. 

 

	 	(r)	“Person” shall have the meaning ascribed to such term in Section 3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d) thereof,
including a “group” as defined in Section 13(d). 

  

	 	(s)	“Qualifying Termination” means the Executive’s “separation from service” (as such term is used in Code Section 409A) upon any of
the events described in Section 2.2 herein, the occurrence of which triggers the payment of Severance Benefits hereunder. 

  

	 	(t)	“Severance Benefits” mean the payment of severance compensation as provided in Section 2.3 herein. 

Article 2. Severance Benefits 

2.1 Right to Severance Benefits. The Executive shall be entitled to receive from the Company Severance Benefits as described in
Section 2.3 herein, if there has been a Change in Control of the Company and if, within twenty-four (24) calendar months thereafter, the Executive’s employment with the Company shall end for any reason specified in Section 2.2
herein as being a Qualifying Termination. 
 The Executive shall not be entitled to receive Severance Benefits if he is
terminated for Cause, or if his employment with the Company ends due to death, Disability, voluntary normal retirement (as defined under the then established rules of the Company’s tax-qualified retirement plan), or due to a voluntary
termination of employment for reasons other than as specified in Section 2.2(b) herein. 
 If benefits are triggered
hereunder, and under another Company-related severance plan or program, the benefits under this Agreement shall be paid under the terms hereof, and any duplicative benefits under such other plan or program shall be forfeited. 

 

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 2.2 Qualifying Termination. The occurrence of any one of the following events within
twenty-four (24) calendar months after a Change in Control of the Company shall trigger the payment of Severance Benefits to the Executive under this Agreement: 
  

	 	(a)	The Company’s involuntary termination of the Executive’s employment without Cause; and 

 

	 	(b)	The Executive’s voluntary employment termination for Good Reason. 

For purposes of this Agreement, a Qualifying Termination shall not include a termination of employment by reason of death, Disability, or
voluntary normal retirement (as such term is defined under the then established rules of the Company’s tax-qualified retirement plan), the Executive’s voluntary termination for reasons other than as specified in Section 2.2(b) herein,
or the Company’s involuntary termination for Cause. 
 2.3 Description of Severance Benefits. In the event the
Executive becomes entitled to receive Severance Benefits, as provided in Sections 2.1 and 2.2 herein, the Company shall pay to the Executive and provide him with the following Severance Benefits: 

 

	 	(a)	A lump-sum amount equal to the Executive’s unpaid Base Salary, accrued vacation pay, unreimbursed business expenses, and all other items earned by and owed to the
Executive through and including the Effective Date of Termination. 

  

	 	(b)	A lump-sum amount equal to the Executive’s annual bonus award earned as of the Effective Date of Termination, based on actual year-to-date performance, as
determined at the Committee’s discretion (excluding any special bonus payments). This payment will be in lieu of any other payment to be made to the Executive under the annual bonus plan in which the Executive is then participating for the plan
year. 

  

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	 	(c)	 An aggregate amount equal to one and one-half (1.5) multiplied by the sum of the following: (i) the higher of: (A) the Executive’s
annual rate of Base Salary in effect upon the Effective Date of Termination, or (B) the Executive’s annual rate of Base Salary in effect on the date of the Change in Control; and (ii) the average of the actual annual bonus earned
(whether or not deferred) by the Executive under the annual bonus plan (excluding any special bonus payments) in which the Executive participated in the three (3) years preceding the year in which the Executive’s Effective Date of
Termination occurs. The first installment shall be equal to
1/18th of the aggregate amount, and shall be paid within
sixty (60) days following the Effective Date of Termination, and subsequent installments shall be paid on the last business day of each succeeding month; provided that Executive’s entitlement to each such installment shall be contingent
upon execution (and non-revocation) by Executive of a release as described in Section 10.1 before the payment date under this Agreement for each such installment. Each monthly installment thereafter shall increase by a percentage equal to 1/12
th of the Federal Funds rate in effect on the last day of
the month preceding payment. All payments are subject to applicable taxes. 

  

	 	(d)	A lump-sum amount equal to 50% of the higher of: (i) the Executive’s annual rate of Base Salary in effect upon the Effective Date of Termination, or
(ii) the Executive’s annual rate of Base Salary in effect on the date of the Change in Control. Such amount shall be in consideration for the Executive entering into a noncompete agreement as described in Article 4 herein. All payments are
subject to applicable taxes. 

  

	 	(f)	Upon the occurrence of a change in control, an immediate full vesting and lapse of all restrictions on any and all outstanding equity-based long-term incentives,
including but not limited to stock options and restricted stock awards held by the Executive. This provision shall override any conflicting language contained in the Executive’s respective Award Agreements. 

 

	 	(g)	To the extent that Executive’s employer contribution account, other than for matching contributions, in the Mueller Water Products, Inc. Retirement Savings Plan
(“RSP”) is forfeited upon termination of employment, a lump sum amount equal to the amounts forfeited under the RSP will be paid, subject to applicable taxes, during the sixty (60) day period following the Effective Date of
Termination. 

  

	 	(h)	Continuation for twenty-four (24) months of the Executive’s medical insurance and life insurance coverage. These benefits shall be provided by the Company to
the Executive beginning immediately upon the Effective Date of Termination. Such benefits shall be provided to the Executive at the same coverage level and cost to the Executive as in effect immediately prior to the Executive’s Effective Date
of Termination. 

 The Executive shall qualify for full COBRA health benefit continuation coverage beginning upon
the expiration of the aforementioned twenty-four (24) month period. 
  

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 Notwithstanding the above, these medical and life insurance benefits shall be discontinued
prior to the end of the stated continuation period in the event the Executive receives substantially similar benefits from a subsequent employer, as determined solely by the Committee in good faith. For purposes of enforcing this offset provision,
the Executive shall be deemed to have a duty to keep the Company informed as to the terms and conditions of any subsequent employment and the corresponding benefits earned from such employment, and shall provide, or cause to provide, to the Company
in writing correct, complete, and timely information concerning the same. 
  

	 	(i)	From Executive’s date of termination of employment until the earlier of (i) 24 months following such date of termination or (ii) the date immediately
prior to the date of Executive’s employment with a subsequent employer, the Company will provide Executive with outplacement services from a nationally recognized outplacement firm selected by Executive, subject to the limits described in this
subsection. The aggregate amount paid by the Company for outplacement services will not exceed an amount equal to 35% of Executive’s annual rate of base salary as of the date of termination of employment (the “Total Outplacement
Value”). Further, the cost for such services paid by the Company during any calendar year will not exceed the number of months in that calendar year during which the Executive is entitled to this benefit multiplied by 1/24 of the Total
Outplacement Value. 

 2.4 Reduction of Severance Benefits. In no event shall any payment described in this
Agreement exceed the amount permitted by Code Section 280G. Therefore, if the aggregate present value (determined in accordance with the provisions of Code Section 280G) of both the payments under this Agreement and all other payments to
the Executive in the nature of compensation (the “Aggregate Payments”) would result in a “parachute payment,” as defined under Code Section 280G, then the Aggregate Payments shall not be greater than an amount equal to 2.99
multiplied by Executive’s “base amount” for the “base period”, as those terms are defined under Code Section 280G. In the event the Aggregate Payments are required to be reduced pursuant to this Section 2.4, the
portions of the Aggregate Payments that would be paid latest in time will be reduced first and if multiple portions of the Aggregate Payments to be reduced are paid at the same time, any non-cash payments will be reduced before any cash payments,
and any remaining cash payments will be reduced pro rata. 
 2.5 Termination for Total and Permanent Disability.
Following a Change in Control, if the Executive’s employment is terminated with the Company due to Disability, the Executive’s benefits shall be determined in accordance with the Company’s retirement, insurance, and other applicable
plans and programs then in effect. 
 2.6 Termination for Retirement or Death. Following a Change in Control, if the
Executive’s employment with the Company is terminated by reason of his voluntary normal retirement (as defined under the then established rules of the Company’s tax-qualified retirement plan), or death, the Executive’s benefits shall
be determined in accordance with the Company’s retirement, survivor’s benefits, insurance, and other applicable programs then in effect. 
  

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 2.7 Termination for Cause or by the Executive Other Than for Good Reason. Following a
Change in Control, if the Executive’s employment is terminated either: (i) by the Company for Cause; or (ii) voluntarily by the Executive for reasons other than as specified in Section 2.2(b) herein, the Company shall pay the
Executive his full Base Salary at the rate then in effect, accrued vacation, and other items earned by and owed to the Executive through the Effective Date of Termination, plus all other amounts to which the Executive is entitled under any
compensation plans of the Company at the time such payments are due, and the Company shall have no further obligations to the Executive under this Agreement. 

2.8 Notice of Termination. Any termination of the Executive’s employment by the Company for Cause shall be communicated by Notice
of Termination to the other party. Termination by the Executive for Good Reason requires delivery of a Notice of Termination by Executive for Good Reason given to the Company’s Senior Vice President of Human Resources within ninety
(90) days of the occurrence of the event giving rise to the Notice, unless such circumstances are substantially corrected prior to the date of termination specified in the Notice of Termination for Good Reason. 

Article 3. Form and Timing of Severance Benefits 

3.1 Form and Timing of Severance Benefits. The Severance Benefits described in Sections 2.3(a), 2.3(b), and 2.3(d) herein
shall be paid in cash to the Executive in a single lump sum as soon as practicable following the Effective Date of Termination, but in no event beyond ten (10) calendar days from such date. Notwithstanding anything to the contrary herein, if
Executive is a “specified employee” under Section 409A of the Code, then any payment(s) to the Executive described under Section 2.3 herein upon his or her termination of employment that (A) constitute “deferred
compensation to an Executive under Section 409A; (B) are not exempt from Section 409A on account of separation of service (within the meaning of Section 409A) and (C) are otherwise payable within 6 months after
Executive’s termination of employment shall instead be made on the date 6 months and 1 day after such termination of employment, and such payment(s) shall be increased by an amount equal to interest on such payment(s) at a rate of interest
equal to the Federal Funds Rate in effect as of the date of termination of employment from the date on which such payment(s) would have been made in the absence of this provision and the payment date described in this sentence. 

3.2 Withholding of Taxes. The Company shall withhold from any amounts payable under this Agreement all federal, state, city, or
other taxes as legally shall be required. 
 Article 4. Noncompetition and Confidentiality 

In the event the Executive becomes entitled to receive Severance Benefits as provided in Section 2.3 herein, the following shall
apply: 
  

	 	(a)	 Noncompetition. During the term of employment and for a period of twelve (12) months after the Effective Date of Termination, the Executive
shall not: (i) directly or indirectly act in concert or conspire with any person employed by the Company in order to engage in or prepare to engage in or to have a financial or other interest in any business or any activity which he knows (or
reasonably should have known) to be directly competitive with the business of the Company as then being carried on; or (ii) serve as an 

 

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employee, agent, partner, shareholder, director or consultant for, or in any other capacity participate, engage, or have a financial or other interest in any business or any activity which he
knows (or reasonably should have known) to be directly competitive with the business of the Company as then being carried on (provided, however, that notwithstanding anything to the contrary contained in this Agreement, the Executive may own up to
two percent (2%) of the outstanding shares of the capital stock of a company whose securities are registered under Section 12 of the Securities Exchange Act of 1934). 

 

	 	(b)	Confidentiality. The Company has advised the Executive and the Executive acknowledges that it is the policy of the Company to maintain as secret and confidential
all Protected Information (as defined below), and that Protected Information has been and will be developed at substantial cost and effort to the Company. All Protected Information shall remain confidential permanently and no Executive shall at any
time, directly or indirectly, divulge, furnish, or make accessible to any person, firm, corporation, association, or other entity (otherwise than as may be required in the regular course of the Executive’s employment with the Company), nor use
in any manner, either during the term of employment or after termination, at any time, for any reason, any Protected Information, or cause any such information of the Company to enter the public domain. 

For purposes of this Agreement, “Protected Information” means trade secrets, confidential and proprietary business information
of the Company, and any other information of the Company, including, but not limited to, customer lists (including potential customers), sources of supply, processes, plans, materials, pricing information, internal memoranda, marketing plans,
internal policies, and products and services which may be developed from time to time by the Company and its agents or employees, including the Executive; provided, however, that information that is in the public domain (other than as a result of a
breach of this Agreement), approved for release by the Company or lawfully obtained from third parties who are not bound by a confidentiality agreement with the Company, is not Protected Information. 

 

	 	(c)	Nonsolicitation. During the term of employment and for a period of twelve (12) months after the Effective Date of Termination, the Executive shall not
employ or retain or solicit for employment or arrange to have any other person, firm, or other entity employ or retain or solicit for employment or otherwise participate in the employment or retention of any person who is an employee or consultant
of the Company. 

  

	 	(d)	Cooperation. Executive agrees to cooperate with the Company and its attorneys in connection with any and all lawsuits, claims, investigations, or similar
proceedings that have been or could be asserted at any time arising out of or related in any way to Executive’s employment by the Company or any of its subsidiaries. 

 

	 	(e)	Nondisparagement. At all times, the Executive agrees not to disparage the Company or otherwise make comments harmful to the Company’s reputation.

 Article 5. 

Reserved. 
  

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 Article 6. The Company’s Payment Obligation 

6.1 Payment Obligations Absolute. The Company’s obligation to make the payments and the arrangements provided for herein shall
be absolute and unconditional, and shall not be affected by any circumstances including, without limitation, any offset, counterclaim, recoupment, defense, or other right which the Company may have against the Executive or anyone else. All amounts
payable by the Company hereunder shall be paid without notice or demand. Each and every payment made hereunder by the Company shall be final, and the Company shall not seek to recover all or any part of such payment from the Executive or from
whomsoever may be entitled thereto, for any reasons whatsoever. 
 The Executive shall not be obligated to seek other employment
in mitigation of the amounts payable or arrangements made under any provision of this Agreement, and the obtaining of any such other employment shall in no event effect any reduction of the Company’s obligations to make the payments and
arrangements required to be made under this Agreement, except to the extent provided in Sections 2.3(g) and 2.3(h) herein. 

6.2 Contractual Rights to Benefits. This Agreement establishes and vests in the Executive a contractual right to the benefits to
which he is entitled hereunder. However, nothing herein contained shall require or be deemed to require, or prohibit or be deemed to prohibit, the Company to segregate, earmark, or otherwise set aside any funds or other assets, in trust or
otherwise, to provide for any payments to be made or required hereunder. 
 Article 7. Term of Agreement 

This Agreement will commence on the Effective Date and shall continue in effect for two (2) full years. However, at the end of such
two (2) year period and, if extended, at the end of each additional year thereafter, the term of this Agreement shall be extended automatically for one (1) additional year, unless either party delivers written notice six (6) months
prior to the end of such term, or extended term, stating that the Agreement will not be extended. In such case, the Agreement will terminate at the end of the term, or extended term, then in progress. 

However, in the event of a Change in Control of the Company, the term of this Agreement shall automatically be extended for two
(2) years from the date of the Change in Control. 
 Article 8. Legal Remedies 

8.1 Payment of Legal Fees. If Executive incurs reasonable legal fees or other expenses (including expert witness and accounting
fees) on or after the date of the Company’s announcement of a Change in Control and within a reasonable time after the Change in Control occurs, in an effort to interpret this Agreement or to secure, preserve, establish entitlement to, or
obtain benefits under this Agreement (including the fees and other expenses of Executive’s legal counsel), the Company shall, regardless of the outcome of such effort, reimburse Executive on a current basis for such fees and expenses.
Reimbursement of legal fees and expenses shall be made monthly within ten (10) days after Executive’s written submission of a request for 

 

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reimbursement together with evidence that such fees and expenses were incurred. If Executive does not prevail (after exhaustion of all available judicial remedies) in respect of a claim by
Executive or by the Company hereunder, and the Company establishes before a court of competent jurisdiction, by clear and convincing evidence, that Executive had no reasonable basis for his claim hereunder, or for his response to the Company’s
claim hereunder, or acted in bad faith, no further reimbursement for legal fees and expenses shall be due to Executive in respect of such claim and Executive shall refund any amounts previously reimbursed hereunder with respect to such claim.
Notwithstanding the foregoing, any reimbursement payment must be paid to Executive by the end of the calendar year next following the calendar year in which the Executive incurs the related fees or expenses. 

8.2. Dispute Resolution; Mutual Agreement to Arbitrate. 

(a) Executive and Employer agree that, except as otherwise provided in this Agreement, final and binding arbitration shall be the
exclusive remedy for any controversy, dispute, or claim arising out of or relating to this Agreement or Executive’s employment with Employer, including Executive’s hire, treatment in the workplace, or termination of employment. For
example, if Executive’s employment with Employer is terminated and he contends that the termination violates any statute, contract or public policy, then Executive will submit the matter to arbitration for resolution, in lieu of any court or
jury trial to which Executive would otherwise might be entitled. 
 (b) This Section covers all common law and statutory claims,
including, but not limited to, any claim for breach of contract (including this Agreement) and for violation of laws forbidding discrimination on the basis of race, sex, color, religion, age, national origin, disability, or any other basis covered
by applicable federal, state, or local law, and includes claims against Employer and/or any parents, affiliates, owners, officers, directors, employees, agents, general partners or limited partners of Employer, to the extent such claims involve, in
any way, this Agreement or Executive’s employment with Employer. This Section covers all judicial claims that could be brought by either party to this Agreement, but does not cover administrative claims for workers’ compensation or
unemployment compensation benefits or the filing of charges with government agencies that prohibit waiver of the right to file a charge. 

(c) The arbitration shall be governed by JAMS Employment Arbitration Rules and Procedure except as modified herein. If the party chooses
to have the arbitration proceeding administered by a third party, then the arbitration shall be administered by JAMS. If the party chooses to have the arbitration administered by JAMS, then the arbitration will “commence” in accordance
with the JAMS Employment Arbitration Rules and Procedure. If the party chooses to have this matter arbitrated privately, then the arbitration will be deemed to “commence” on the date that the party provides a demand for arbitration and
notice of claims and remedies sought outlining the facts relied upon, legal theories, and statement of claimed relief (“Demand”). The responding party shall serve a response to the claims and any counterclaims within fifteen
(15) business days from the date of receipt of the Demand. 
  

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 (d) Any arbitration shall be held in Washington, D.C. (unless the parties mutually agree in
writing to another location within the United States) within 120 days of the commencement of the arbitration. 
 (e) The
arbitration shall take place before a single arbitrator to be appointed by mutual agreement of counsel for each party or, if counsel cannot agree, then pursuant to the procedures set forth by JAMS. The parties may not have any ex parte
communications with the arbitrator. 
 (f) The arbitrator may award any relief otherwise available to the parties by law or
equity. 
 (g) The parties are limited to two (2) depositions per side, and limited written discovery as may be required by
the arbitrator, not to exceed that allowed under the Federal Rules of Civil Procedure. 
 (h) Any hearing in this matter shall
be completed within 120 days of the date of commencement of the arbitration, as the term “commencement” is defined by JAMS. The arbitrator shall issue its award within thirty (30) days of the last hearing day. 

(i) Unless Executive objects, Employer will pay the arbitrator’s fees. Each party shall pay its own costs and attorneys’ fees,
if any, unless the arbitrator rules otherwise. A court may enter judgment upon the arbitrator’s award, either by confirming the award, or vacating, modifying or correcting the award, on any ground referred to in the Federal Arbitration Act, or
where the findings of fact are not supported by substantial evidence, or where the conclusions of law are erroneous. 
 (j) The
provisions of this Section are severable, meaning that if any provision in this Section 8.2 (“Dispute Resolution: Mutual Agreement to Arbitrate”) is determined to be unenforceable and cannot be reformed under applicable law, the
remaining provisions shall remain in full effect, provided however, that any amendment of an unenforceable provision shall only be to the extent necessary and shall preserve the intent of the parties hereto. It is agreed and understood that the
scope of this Section, including questions of arbitrability of any dispute, shall be determined by the arbitrator. 
 (k)
Executive acknowledges that prior to accepting the provisions of this Section 8.2 and signing this Agreement, Executive has been given an opportunity to consult with an attorney and to review the JAMS Employment Arbitration Rules and Procedure
that would govern the dispute resolution process under this Section. In signing this Agreement, the parties acknowledge that the right to a court trial and trial by jury is of value, and knowingly and voluntarily waive such right for any dispute
subject to the terms of this Section. 
 Initials: Executive             
Employer              
  

 13 

 Article 9. Successors 

9.1 Successors to the Company. The Company shall require any successor (whether direct or indirect, by purchase, merger,
reorganization, consolidation, acquisition of property or stock, liquidation, or otherwise) of all or a significant portion of the assets of the Company by agreement, in form and substance satisfactory to the Executive, to expressly assume and agree
to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place. Regardless of whether such agreement is executed, this Agreement shall be binding upon any
successor in accordance with the operation of law and such successor shall be deemed the “Company” for purposes of this Agreement. 

9.2 Assignment by the Executive. This Agreement shall inure to the benefit of and be enforceable by the Executive’s personal
or legal representatives, executors, administrators, successors, heirs, distributees, devisees, and legatees. If the Executive dies while any amount would still be payable to him hereunder had he continued to live, all such amounts, unless otherwise
provided herein, shall be paid in accordance with the terms of this Agreement to the Executive’s devisee, legatee, or other designee, or if there is no such designee, to the Executive’s estate. 

Article 10. Miscellaneous 

10.1 Release. As a condition of receiving any severance payments under this Agreement, Executive must sign and not revoke, within
the deadlines provided by the Company and in compliance with applicable federal and/or state laws, a written release of all employment claims against the Company and its related entities, including, without limitation, employment discrimination of
any kind, wage payment, breach of contract, claims for workers compensation, unemployment, disability and severance claims that Executive has or may have at the termination of employment. In addition, Executive will agree not to sue the Company or
any other entities or persons released. 
 10.2 Employment Status. This Agreement is not, and nothing herein shall be
deemed to create, an employment contract between the Executive and the Company or any of its subsidiaries. The Executive acknowledges that the rights of the Company remain wholly intact to change or reduce at any time and from time to time his
compensation, title, responsibilities, location, and all other aspects of the employment relationship, or to discharge him prior to a Change in Control (subject to such discharge possibly being considered a Qualifying Termination pursuant to
Section 2.2). 
 10.3 Entire Agreement. This Agreement contains the entire understanding of the Company and the
Executive with respect to the subject matter hereof and supersedes all prior agreements, understandings, negotiations, representations and statements, whether oral, written, implied or expressed, relating to such subject matter. In addition, the
payments provided for under this Agreement in the event of the Executive’s termination of employment shall be in lieu of any severance benefits payable under any severance plan, program, or policy of the Company to which he might otherwise be
entitled. 
 10.4 Notices. All notices, requests, demands, and other communications hereunder shall be sufficient if in
writing and shall be deemed to have been duly given if delivered by hand or if sent by registered or certified mail to the Executive at the last address he has filed in writing with the Company or, in the case of the Company, at its principal
offices. 
  

 14 

 10.5 Execution in Counterparts. This Agreement may be executed by the parties hereto
in counterparts, each of which shall be deemed to be original, but all such counterparts shall constitute one and the same instrument, and all signatures need not appear on any one counterpart. 

10.6 Conflicting Agreements. The Executive hereby represents and warrants to the Company that his entering into this Agreement,
and the obligations and duties undertaken by him hereunder, will not conflict with, constitute a breach of, or otherwise violate the terms of, any other employment or other agreement to which he is a party, except to the extent any such conflict,
breach, or violation under any such agreement has been disclosed to the Board in writing in advance of the signing of this Agreement. 

Notwithstanding any other provisions of this Agreement to the contrary, if there is any inconsistency between the terms and provisions of
this Agreement and the terms and provisions of Company-sponsored compensation and welfare plans and programs, the Agreement’s terms and provisions shall completely supersede and replace the conflicting terms of the Company-sponsored
compensation and welfare plans and programs, where applicable. 
 10.7 Severability. In the event any provision of this
Agreement shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the Agreement, and the Agreement shall be construed and enforced as if the illegal or invalid provision had not been
included. Further, the captions of this Agreement are not part of the provisions hereof and shall have no force and effect. 

Notwithstanding any other provisions of this Agreement to the contrary, the Company shall have no obligation to make any payment to the
Executive hereunder to the extent, but only to the extent, that such payment is prohibited by the terms of any final order of a federal or state court or regulatory agency of competent jurisdiction; provided, however, that such an order shall not
affect, impair, or invalidate any provision of this Agreement not expressly subject to such order. 
 10.8 Modification.
No provision of this Agreement may be modified, waived, or discharged unless such modification, waiver, or discharge is agreed to in writing and signed by the Executive and by a member of the Board, as applicable, or by the respective parties’
legal representatives or successors. 
 10.9 Applicable Law. To the extent not preempted by the laws of the United
States, the laws of Delaware shall be the controlling law in all matters relating to this Agreement without giving effect to principles of conflicts of laws. 
  

 15 

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

									
		 	ATTEST	 		 	Mueller Water Products, Inc.
					
	By:	 	 /s/ ROBERT BARKER
	 		 	By:	 	 /s/ GREGORY E. HYLAND

		 	Robert Barker	 		 		 	Gregory E. Hyland
		 		 		 		 	Chairman of the Board, President and
		 		 		 		 	Chief Executive Officer
					
		 		 		 	By:	 	 /s/ PAUL CIOLINO

		 		 		 		 	Paul Ciolino

  

 16Severance and Change of Control Agreement

 Exhibit 10.1 

SEVERANCE AND CHANGE OF CONTROL AGREEMENT 

THIS SEVERANCE AND CHANGE OF CONTROL AGREEMENT (this “Agreement”) is entered into by and between Orthovita, Inc., a
Pennsylvania corporation having its principal offices in Malvern, PA (the “Company”), and Christopher H. Smith (the “Executive”) effective August 4, 2010 (the “Effective Date”). 

WHEREAS, the Company desires to provide Executive: (i) severance termination benefits (prior to a change in control),
(ii) change of control termination benefits (on or after a change in control), and (iii) certain death and disability benefits on the terms and conditions, and for the consideration, hereinafter set forth, and Executive desires to be
employed by Company on such terms and conditions and for such consideration; 
 WHEREAS, the benefits provided to
Executive under this Agreement are described in the following Sections: (i) Section 6 outlines the severance termination benefits (prior to a change of control), (ii) Sections 6 and 11 outline the double-trigger change in control
termination benefits (on or after a change in control), and (iii) Sections 8 and 9 outline the death and disability benefits; and 

WHEREAS, in addition to providing the benefits outlined in Sections 6, 8, 9 and 11 (as described above), this Agreement imposes
duties and obligations and other requirements as follows: (i) Section 1 imposes a duty of loyalty on Executive, (ii) Section 6, 7 and 10 outline the triggers to terminate employment, (iii) Section 6 requires Executive
to sign a release to receive benefits (other than death or disability benefits), (iv) Section 13 imposes restrictive covenants on Executive, and (v) Section 15 includes a mandatory arbitration provision, as well as other
miscellaneous provisions. 
 NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements hereinafter set forth,
the Company and the Executive hereby agree as follows: 
 1. Employment. 

(a) Duties. 

(i) The Executive shall serve as the Senior Vice President, Sales and Marketing of the Company with duties,
responsibilities and authority commensurate therewith and shall report to the Chief Executive Officer. The Executive shall perform all duties and accept all responsibilities incident to such position as may be reasonably assigned to him/her by the
Chief Executive Officer. 
 (ii) The Executive represents to the Company that he/she is not subject to or a
party to any employment agreement, non-competition covenant, understanding or restriction which would be breached by or prohibit the Executive from executing this Agreement and performing fully his/her duties and responsibilities hereunder.

 (b) Term. This Agreement shall begin on the Effective Date and shall terminate
automatically on the earlier of (i) Executive’s termination of employment with Company or (ii) the first anniversary of a Change of Control (as defined below) or (iii) the date on which Executive, while remaining employed by the
Company, ceases to serve as an executive of the Company (the “Term”). 
 (c) Best Efforts. During the Term, the
Executive shall devote his/her best efforts and full time and attention to promote the business and affairs of the Company and its affiliated entities, and shall be engaged in other business activities only to the extent that such activities do not
materially interfere or conflict with the Executive’s obligations to the Company hereunder, including, without limitation, obligations pursuant to Section 13 below. The foregoing also shall not be construed as preventing the Executive from
(1) serving on civic, educational, philanthropic or charitable boards or committees, or, with the prior written consent of the Board of Directors of the Company (the “Board”), in its sole discretion, on corporate boards, and
(2) managing personal investments, so long as such activities are permitted under the Company’s Code of Conduct and employment policies. Notwithstanding any provision of this Section 1 of the Agreement to the contrary, in no event
shall the Executive invest in any business competitive with the Company or that would otherwise violate the provisions of Section 13 below (other than as a shareholder of less than 1% of a publicly traded company). 

2. Base Salary and Bonus. 

(a) During the Term, for all of the services rendered by the Executive hereunder, the Company shall pay Executive a base salary
(“Base Salary”), at the initial annual rate of $270,400, payable in installments at such times as the Company customarily pays its other employees. The Executive’s Base Salary shall be reviewed periodically by the Board (or a
committee of the Board) pursuant to the Board’s normal performance review policies for officers at Executive’s level. 

(b) In addition, during the Term, the Executive shall be eligible to receive an annual bonus based on the attainment of individual and
corporate performance goals and targets, as determined by the Board (or a Board committee), in its sole discretion, as of the beginning of each fiscal year. The target bonus for the Executive for any calendar year during the Term shall be as
established by the Board or Board committee, provided, however that the Executive’s target bonus opportunity shall be based on not less than 50% of the Executive’s Base Salary in effect for such calendar year. Promptly after receipt of the
financial or other information on which the performance goals are based after the end of the fiscal year, the Board (or Board committee) shall review actual performance against the applicable performance goals and targets and shall notify the
Executive of the amount of the Executive’s bonus, if any. The Executive’s bonus shall be paid to him/her after the end of the fiscal year to which it relates, at the same time and under the same terms and conditions as other executives of
the Company; provided that in no event shall the Executive’s bonus be paid later than March 15 of the calendar year following the fiscal year for which it was earned. 

 

 2 

 3. Retirement and Welfare Benefits. The Executive shall be eligible to participate in
the Company’s health, life insurance, long and short-term disability, dental, retirement, savings and medical programs, directors and officers liability insurance and other benefit plans or programs generally made available to other officers of
the Company at Executive’s level, if any, pursuant to their respective terms and conditions. In addition, the Executive shall be eligible to participate in any long-term equity incentive programs (including the Company’s 2007 Omnibus
Equity Compensation Plan and any successor plan) established by the Company for its executives generally at levels determined by the Board (or a Board committee) in its sole discretion, commensurate with the Executive’s position as Senior Vice
President, Sales and Marketing. Nothing in this Agreement shall preclude the Company or any affiliate of the Company from terminating or amending any employee benefit plan or program from time to time after the Effective Date. 

4. Vacation. The Executive shall be entitled to vacation, holiday and sick leave at levels commensurate with those provided to
other senior executive officers of the Company, in accordance with the Company’s vacation, holiday and other pay for time not worked policies. 

5. Expenses. The Company shall reimburse the Executive for all necessary and reasonable travel and other business expenses
incurred by the Executive in the performance of his/her duties hereunder in accordance with such reasonable accounting procedures as the Company may adopt generally from time to time for executives. 

6. Termination Without Cause; Resignation for Good Reason following a Change of Control. The provisions of this Section 6
shall apply if either (i) the Executive’s employment is terminated by the Company without Cause (as defined in Section 12 below) or (ii) the Executive resigns under this Section 6 for Good Reason within 12 months following a
Change of Control. The Executive shall give the Company not less than 30 days’ prior written notice of such resignation. 

(a) The Company may terminate the Executive’s employment with the Company at any time without Cause upon not less than 30 days’
prior written notice to the Executive; provided that, in the event that such notice is given, the Executive shall be under no obligation to render any additional services to the Company and shall be allowed to seek other employment. In addition, on
the date of the Executive’s termination of employment for any reason, the Executive agrees to resign all positions, including as an officer and, if applicable, as a director or member of the board of directors, of the Company and its parents,
subsidiaries and affiliates. 
 (b) Unless the Executive complies with the provisions of Section 6(c) below, upon
termination without Cause at any time or resignation for Good Reason following a Change of Control under Section 6(a) above, the Executive shall be entitled to receive only the amount due to the Executive under the Company’s then current
severance pay plan for employees, if any, but only to the extent not conditioned on the execution of a release by the Executive. No other payments or benefits shall be due under this Agreement to the Executive, but the Executive shall be entitled to
any benefits accrued and due in accordance with the terms of any applicable benefit plans and programs of the Company. 
  

 3 

 (c) Notwithstanding the provisions of Section 6(b), upon termination without Cause at
any time or resignation for Good Reason following a Change of Control under Section 6(a) above, as applicable, if the Executive executes and does not revoke a written release, in a form acceptable to the Company, in its sole discretion,
of any and all claims against the Company and all related parties with respect to all matters arising out of the Executive’s employment by the Company, or the termination thereof (other than claims for any entitlements under the terms of this
Agreement or under any plans or programs of the Company under which the Executive has accrued and is due a benefit) (the “Release”), the Executive shall be entitled to receive, in lieu of the payment described in Section 6(b) and any
other payments due under any severance plan or program for employees or executives, the following: 
 (i) An
amount equal to 18 months of the Executive’s annual Base Salary (at the rate in effect immediately before the Executive’s termination), payable in normal installments in accordance with the Company’s payroll practices; provided,
however, that if Executive’s termination without Cause occurs prior to a Change of Control or after 12 months following a Change of Control, the amount payable under this Section 6(c)(i) shall equal 12 months. Payments shall
commence within 60 days after the effective date on which the Executive’s employment terminates, on the first payroll date following expiration of the maximum revocation period applicable to the Release, except as provided in
Section 6(c)(vi) below. 
 (ii) A pro rata bonus for the year in which the Executive’s termination of
employment occurs to the extent that such amount would have been earned in accordance with the terms of the Company’s annual incentive program only with respect to the calendar year in which the Executive’s termination of employment
occurs, without regard to a requirement, if any, that the Executive be employed by the Company on the date of payment. The pro-rata bonus shall be payable at the date on which other bonuses are paid for the year after the end of the fiscal year to
which it relates; provided that in no event shall the Executive’s pro rata bonus be paid later than March 15 of the calendar year following the fiscal year for which it was earned, except as provided in Section 6(c)(vi) below.

 (iii) A monthly payment, on the first payroll date of each month, equal to the monthly Executive’s COBRA
health care continuation coverage premium under Section 4980B of the Code under the Company’s medical plan, for the period following the Executive’s termination equal in duration to the severance period described in
Section 6(c)(i) above or until the date on which the Executive is eligible for coverage under a plan maintained by a new employer or under a plan maintained by his/her spouse’s employer, whichever is sooner, for himself/herself and, where
applicable, his/her spouse and dependents. 
  

 4 

 (iv) Notwithstanding any provision to the contrary in any applicable plan,
program or agreement, all outstanding stock options, restricted stock, restricted stock units and other equity rights held by the Executive as of the date of the Executive’s resignation for Good Reason within 12 months following a Change of
Control or termination without Cause within 12 months following a Change of Control will become fully vested and exercisable as of the date on which the Executive’s resignation for Good Reason or termination without Cause following a Change of
Control occurs. This subsection 6(c)(iv) shall not apply upon Non-Renewal. 
 (v) Any other amounts earned,
accrued and owing but not yet paid under Section 2 above (Base Salary and Bonus) and any benefits accrued and due under any applicable benefit plans and programs of the Company. 

(vi) If the Executive is determined to be a Specified Executive (as defined in Section 12(e) below), any amounts
payable to him/her upon separation from service that are deferred compensation under Section 409A of the Code shall be postponed and shall be paid in a lump sum after the first to occur of (i) the date that is six months following the
Executive’s separation from service or (ii) the Executive’s death. The lump sum payment of such postponed amounts shall be made within five days following the end of the six-month period or within 60 days following the
Executive’s death, as applicable. The Section 409A postponement period shall not apply to: 
 (1)
separation pay that is exempt from Section 409A under the separation pay exception, which exempts an amount up to two times the lesser of (a) the Executive’s annualized compensation for the year prior to the year of separation, or
(b) the maximum amount that may be taken into account under a qualified plan pursuant to Section 401(a)(17) of the Code and which is paid no later than the last day of the Executive’s second taxable year following the taxable year in
which his/her separation from service occurs; and 
 (2) any amount exempt from Section 409A under the short
term deferral exception. 
 7. Voluntary Termination. The Executive may voluntarily terminate his/her employment for any
reason upon 30 days’ prior written notice. In such event, after the effective date of such termination, no payments shall be due under this Agreement, except that the Executive shall be entitled to any amounts earned, accrued and owing but not
yet paid under Section 2 above and any benefits accrued and due under any applicable benefit plans and programs of the Company. 

8. Disability. If the Executive incurs a Disability (as defined in Section 12 below) during the Term, the
Executive’s employment shall terminate on the date of Disability. If the Executive’s employment terminates on account of Disability, the Executive shall be entitled to receive any amounts earned, accrued and owing but not yet paid under
Section 2 above and any benefits accrued and due under any applicable benefit plans and programs of the Company.  
  

 5 

 9. Death. If the Executive dies while employed by the Company, the Executive’s
employment shall terminate on the date of death and the Company shall pay to the Executive’s executor, legal representative, administrator or designated beneficiary, as applicable, any amounts earned, accrued and owing but not yet paid under
Section 2 above and any benefits accrued and due under any applicable benefit plans and programs of the Company. Otherwise, the Company shall have no further liability or obligation under this Agreement to the Executive’s executors,
legal representatives, administrators, heirs or assigns or any other person claiming under or through the Executive. 
 10.
Cause. The Company may terminate the Executive’s employment at any time for Cause upon written notice to the Executive, in which event all payments under this Agreement shall cease, except for any amounts earned, accrued and owing but
not yet paid under Section 2 above and any benefits accrued and due under any applicable benefit plans and programs of the Company. 

11. Change of Control. 

(a) Acceleration of Equity Rights. Notwithstanding any provision to the contrary in any applicable plan, program or agreement, upon
the occurrence of a Change of Control (as defined in Section 12 below) during the Term, all outstanding stock options, restricted stock, restricted stock units and other equity rights held by the Executive as of the date of the Change of
Control will become fully vested and exercisable as of the date on which the Change of Control occurs. 
 (b) Application of
Section 280G of the Code. In the event a Change of Control occurs and the Executive becomes entitled to any benefits or payments in the nature of compensation (within the meaning of Section 280G(b)(2) of the Code) under this Agreement,
or any other plan, arrangement, or agreement with the Company (the “Payments”), and such benefits or payments would (in the absence of this Section 11(b)) be subject to the tax (the “Excise Tax”) imposed by Section 4999
of the Code (or any similar tax that may hereafter be imposed), the aggregate present value of the Payments under this Agreement shall be reduced (but not below zero) to the Reduced Amount (as defined below), if reducing the Payments under this
Agreement will provide the Executive with a greater net after-tax amount than would be the case if no reduction was made. The “Reduced Amount” shall be an amount expressed in present value which maximizes the aggregate present value
of Payments without causing any Payment under this Agreement to be subject to the Excise Tax, determined in accordance with Section 280G(d)(4) of the Code. The Company shall reduce the Payments under this Agreement by first reducing
Payments that are payable in cash and then by reducing non-cash Payments. The fact that the Executive’s right to payments or benefits may be reduced by reason of the limitations contained in this Section 11(b), shall not of itself limit or
otherwise affect any other rights of the Executive other than pursuant to this Agreement. 
 (i)
Determinations; Timing of Payments. All determinations to be made under this Section 11(b) shall be made by the Company’s independent public accounting firm as in effect immediately prior to the Change of Control or another
qualified independent firm selected by the Company before the Change of Control (the “Accounting Firm”), which firm shall provide its determinations and any supporting calculations to the Company and Executive within 10 business days of
the event that gives rise to the “excess parachute payment.” Any such determination by the Accounting Firm shall be binding upon the Company and the Executive. Within five days after the Accounting Firm’s determination, the Company
shall pay (or cause to be paid) or distribute (or cause to be distributed) to or for the benefit of the Executive such amounts as are then due to the Executive under this Agreement. 

 

 6 

 (ii) Computation. For purposes of determining whether any of the
Payments will be subject to the Excise Tax, the amount of such Excise Tax, and the amount of any Reduced Amount, the Accounting Firm shall take into account any relevant guidance under the Code and the regulations thereunder, including, but not
limited to, the following: 
 (A) The amount of the Payments which shall be treated as subject to the Excise Tax
shall be equal to the amount of excess parachute payments within the meaning of Section 280G(b)(1) of the Code, as determined by the Accounting Firm; 

(B) The value of any non-cash benefits or any deferred or accumulated payment or benefit shall be determined by the
Accounting Firm in accordance with the principles of Sections 280G(d)(3) and (4) of the Code; and 
 (C) The
value of the non-competition covenants contained in this Agreement shall be taken into account to reduce “parachute payments” to the maximum extent allowable under Section 280G of the Code. The Company or the Accounting Firm may
retain a third-party valuation expert in order to determine the value of such covenants. The Accounting Firm shall be entitled to rely upon such expert valuation in making its determinations under this Section 11. 

For purposes of the determinations under this Section 11, the Executive shall be deemed to pay federal income taxes
at the highest marginal rate of federal income taxation in the calendar year in which the applicable payment is to be made, and state and local income taxes at the highest marginal rate of taxation in the state and locality of the Executive’s
residence, net of the maximum reduction in federal income taxes which could be obtained from deduction of such state and local taxes. 

(iii) Overpayments and Underpayments. If as a result of a final IRS determination that any payments will have been
made by the Company which should not have been made (“Overpayment”), consistent with the calculations required to be made hereunder, any such Overpayment shall be treated for all purposes as a loan to the Executive which the Executive
shall repay to the Company, together with interest at the applicable Federal rate provided for in Section 7872(f)(2) of the Code (the “Federal Rate”). If as a result of a final IRS determination that additional payments which have not
been made by the Company could have been made (“Underpayment”), consistent with the calculations required to be made hereunder, any such Underpayment shall be promptly paid by the Company to or for the benefit of the Executive, together
with interest at the Federal Rate. 
  

 7 

 (iv) Fees. All of the fees and expenses of the Accounting Firm in
performing the determinations referred to this Section 11(b) shall be borne solely by the Company. 
 (v)
Statutory Application. The limitations of this Section 11(b) shall only apply if payments under this Agreement are subject to Section 280G at the time of the Change of Control. 

12. Definitions. 

(a) Disability. For purposes of this Agreement, the term “Disability” shall mean the Executive is unable substantially to
perform the essential duties and responsibilities under this Agreement to the full extent required by the Board by reason of mental or physical illness, injury or any other cause for six consecutive months, or for more than nine months in the
aggregate during any period of 12 consecutive calendar months. 
 (b) Cause. For purposes of this Agreement,
“Cause” shall mean any of the following grounds for termination of the Executive’s employment: (i) the Executive is convicted of a felony, (ii) in the reasonable determination of the Board, the Executive has committed an
intentional act of fraud, embezzlement, or theft or engaged in gross negligence in connection with the Executive’s duties in the course of his/her employment with the Company, (iii) the Executive intentionally breached the Executive’s
obligations under this Agreement, including inattention to or neglect of duties and shall not have remedied such breach within 30 days after receiving written notice from the Board specifying the details thereof, provided, however, that in any case
under this clause (iii), the act or failure to act by the Executive is materially harmful to the business of the Company, and (iv) the failure by the Executive to follow the lawful directives of the Company’s Chief Executive Officer or its
Board, provided that (other than in the case of those actions or omissions set forth in clause (i) and (ii) above) the Executive shall have been given reasonably detailed notice that such an event constituting Cause for termination has
occurred and shall have been given at least 30 days opportunity to take remedial action but shall have failed or refused to do so. For purposes of this Agreement, an act or omission on the part of the Executive shall be deemed
“intentional” or “gross negligence” only if it was done by the Executive in bad faith, not merely an error in judgment, and without reasonable belief that the act or omission was in the best interest of the Company. 

(c) Good Reason. For purposes of this Agreement, the occurrence of one or more of the following actions after the occurrence of a
Change of Control shall constitute “Good Reason”: (i) a material diminution in the Executive’s duties, responsibilities or authority, (ii) a material reduction in the Executive’s Base Salary except as part of an across
the board reduction applicable to executives generally, or (iii) a failure of the Company to comply with any of the material terms of this Agreement, provided that the Company shall have been given reasonably detailed written notice that such
an event constituting cause for termination has occurred and shall have been given at least 30 days opportunity to take remedial action but shall have failed or refused to do so. The Executive must give the Company written notice within 90 days
following the event that constitutes Good Reason and the Executive’s termination must occur within one year following such event. 
  

 8 

 (d) Change of Control. For purposes of this Agreement, “Change of Control”
shall have the same meaning ascribed to such term under the Company’s 2007 Omnibus Equity Compensation Plan, as in effect on the date hereof and as it may be amended from time to time, or any successor plan. 

(e) Specified Executive. For purposes of this Agreement, “Specified Executive” shall mean an employee who, at any time
during the 12-month period ending on the identification date (defined below), is (i) an officer of the Company or a member of its controlled group (as determined for purposes of Section 416(i) of the Code) who has annual compensation
greater than $135,000 (or such other amount as may be in effect under Section 416(i)(1) of the Code), (ii) a 5% owner of the Company or (iii) a 1% owner of the Company who has annual compensation greater than $150,000. The
identification date shall be each December 31, and the determination of Specified Executives as of such identification date shall apply for the 12-month period following April 1 after the identification date. The determination of Specified
Executives, including the number and identity of persons considered officers, shall be made by the Company in accordance with the provisions of Sections 416(i) and 409A of the Code and the regulations issued thereunder. 

13. Restrictive Covenants. 

(a) Non-Competition. During the Term, and for the 12-month period beginning on the date the Executive’s employment terminates,
for any reason (the “Restriction Period”), the Executive hereby agrees that he/she will not, without the Company’s express written consent, engage (directly or indirectly) in any employment or business activity which designs,
manufactures, sells, licenses or markets any technologies or competing products of the Company or any of its subsidiaries or affiliates, or would otherwise conflict with the Executive’s employment by the Company. Such products and technologies
include those products and technologies which the Company or any of its subsidiaries or affiliates has developed, manufactured, sold, licensed or marketed now or, at the time of termination of Executive’s employment, may be in the process of
developing, manufacturing, selling, licensing or marketing. 
 (b) Non-Solicitation and Non-Hire of Company Personnel.
During the Term and for the Restriction Period, the Executive hereby agrees that he/she will not, either directly or through others, hire or attempt to hire, any current or former employee of the Company, or solicit or attempt to solicit any current
or former employee, consultant or independent contractor of the Company to change or terminate his, her or its relationship with the Company or otherwise to become an employee for or of any other person or business entity, unless more than 12 months
shall have elapsed between the last day of such person’s employment or service with the Company and the first date of such solicitation or hiring or attempt to solicit or hire. 

 

 9 

 (c) Non-Solicitation of Customers. During the Term and for the Restriction Period,
the Executive hereby agrees that he/she will not, either directly, through others or on behalf of third parties, solicit, divert or appropriate, or attempt to solicit, divert or appropriate any customer or actively sought prospective customer of the
Company for the purpose of providing such customer or actively sought prospective customer with services or products competitive with those offered by the Company during the Term. 

(d) Non-Disparagement. Executive agrees that Executive will not disparage the Company, its subsidiaries and parents, and their
respective officers, directors, employees, and agents, and its and their respective successors and assigns, heirs, executors, and administrators, or make any public statement reflecting negatively on the Company, its subsidiaries and parents, and
their respective officers, directors, employees, and agents, and its and their respective successors and assigns, heirs, executors, and administrators, to third parties, including any matters relating to the operation or management of the Company,
irrespective of the truthfulness or falsity of such statement. 
 (e) Proprietary Information. At all times during
the Term and at all times thereafter, the Executive will hold in strictest confidence and will not disclose, use, lecture upon or publish any of the Company’s Proprietary Information (as defined below), except as such disclosure, use or
publication may be required in connection with the Executive’s work for the Company, or unless the Company expressly authorizes such disclosure in writing or disclosure is required by law or in a judicial or administrative proceeding, in which
event the Executive shall promptly notify the Company of the required disclosure and assist the Company if it determines to resist the disclosure. “Proprietary Information” shall mean any and all confidential and/or proprietary knowledge,
data or information of the Company, its affiliated entities and partners, including but not limited to information relating to financial matters, investments, budgets, business plans, marketing plans, personnel matters, business contacts, products,
processes, know-how, designs, methods, improvements, discoveries, inventions, ideas, data, programs, and other works of authorship. 

(f) Invention Assignment. The Executive agrees that all inventions, innovations, improvements, developments, methods, designs,
analyses, reports, and all similar or related information which relates to the Company’s actual or anticipated business, research and development or existing or future products or services and which are conceived, developed or made by Executive
while employed by the Company (“Work Product”) belong to the Company. The Executive will promptly disclose such Work Product to the Board and perform all actions reasonably requested by the Board (whether during or after the Term) to
establish and confirm such ownership (including, without limitation, assignments, consents, powers of attorneys and other instruments). 

(g) Return of Company Property. Upon termination of the Executive’s employment with the Company for any reason
whatsoever, voluntarily or involuntarily, and at any earlier time the Company requests, the Executive will deliver to the person designated by the Company all originals and copies of all documents and property of the Company in the Executive’s
possession, under the Executive’s control or to which the Executive may have access. The Executive will not reproduce or appropriate for the Executive’s own use, or for the use of others, any property, Proprietary Information or Company
inventions. 
  

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 14. Legal and Equitable Remedies. Because the Executive’s services are personal
and unique and the Executive has had and will continue to have access to and has become and will continue to become acquainted with the proprietary information of the Company, and because any breach by the Executive of any of the restrictive
covenants contained in Section 13 would result in irreparable injury and damage for which money damages would not provide an adequate remedy, the Company shall have the right to enforce Section 13 and any of its provisions by injunction,
specific performance or other equitable relief, without bond and without prejudice to any other rights and remedies that the Company may have for a breach, or threatened breach, of the restrictive covenants set forth in Section 13. The
Executive agrees that in any action in which the Company seeks injunction, specific performance or other equitable relief, the Executive will not assert or contend that any of the provisions of Section 13 are unreasonable or otherwise
unenforceable. The Executive irrevocably and unconditionally (a) agrees that any legal proceeding arising out of this paragraph may be brought in the United States District Court for the Eastern District of Pennsylvania, or if such court does
not have jurisdiction or will not accept jurisdiction, in any court of general jurisdiction in Chester County, Pennsylvania, (b) consents to the non-exclusive jurisdiction of such court in any such proceeding, and (c) waives any objection
to the laying of venue of any such proceeding in any such court. The Executive also irrevocably and unconditionally consents to the service of any process, pleadings, notices or other papers. 

15. Arbitration; Expenses. In the event of any dispute under the provisions of this Agreement, other than a dispute in which the
primary relief sought is an equitable remedy such as an injunction, the parties shall be required to have the dispute, controversy or claim settled by arbitration in Philadelphia, Pennsylvania in accordance with the National Rules for the Resolution
of Employment Disputes then in effect of the American Arbitration Association, before an arbitrator agreed to by both parties. If the parties cannot agree upon the choice of arbitrator, the Company and Executive will each choose an arbitrator. The
two arbitrators will then select a third arbitrator who will serve as the actual arbitrator for the dispute, controversy or claim. Any award entered by the arbitrators shall be final, binding and nonappealable and judgment may be entered thereon by
either party in accordance with applicable law in any court of competent jurisdiction. This arbitration provision shall be specifically enforceable. The arbitrators shall have no authority to modify any provision of this Agreement or to award a
remedy for a dispute involving this Agreement other than a benefit specifically provided under or by virtue of the Agreement. Each party shall be responsible for its own expenses, unless the Executive shall prevail in an arbitration proceeding as to
any material issue, in which case the Company shall reimburse the Executive for all reasonable costs, expenses and fees relating to the conduct of the arbitration (including reasonable attorneys’ fees and expenses) and shall share the fees of
the American Arbitration Association. 
 16. Survival. The respective rights and obligations of the parties hereunder
shall survive the termination of this Agreement to the extent necessary to the intended preservation of such rights and obligations. 

17. Mitigation. The Company’s obligations to make payments under this Agreement and otherwise to perform its obligations
hereunder shall not be affected by any circumstances, including, without limitation, any set-off, counterclaim, recoupment, defense or other right which the Company may have against Executive or others. 

 

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 18. Notices. All notices and other communications required or permitted under this
Agreement or necessary or convenient in connection herewith shall be in writing and shall be deemed to have been given when hand delivered or mailed by registered or certified mail, as follows (provided that notice of change of address shall be
deemed given only when received): 
 If to the Company, to: 

Orthovita, Inc. 

77 Great Valley Parkway 

Malvern, PA 19355 

Attention: Vice President, Human Resources 

If to the Executive, to the most recent address on file with the Company or to such other names or addresses as the Company or the
Executive, as the case may be, shall designate by notice to each other person entitled to receive notices in the manner specified in this Section or as provided on the Company’s website, www.orthovita.com. 

19. Withholding. All payments under this Agreement shall be made subject to applicable tax withholding, and the Company shall
withhold from any payments under this Agreement all federal, state and local taxes that the Company is required to withhold pursuant to any law or governmental rule or regulation. The Executive shall bear all expense of, and be solely responsible
for, all federal, state and local taxes due with respect to any payment received under this Agreement. 
 20. Remedies
Cumulative; No Waiver. No remedy conferred upon a party by this Agreement is intended to be exclusive of any other remedy, and each and every such remedy shall be cumulative and shall be in addition to any other remedy given under this Agreement
or now or hereafter existing at law or in equity. No delay or omission by a party in exercising any right, remedy or power under this Agreement or existing at law or in equity shall be construed as a waiver thereof, and any such right, remedy or
power may be exercised by such party from time to time and as often as may be deemed expedient or necessary by such party in its sole discretion. 

21. Assignment. All of the terms and provisions of this Agreement shall be binding upon and inure to the benefit of and be
enforceable by the respective heirs, executors, administrators, legal representatives, successors and assigns of the parties hereto, except that the duties and responsibilities of the Executive under this Agreement are of a personal nature and shall
not be assignable or delegable in whole or in part by the Executive. The Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation, reorganization or otherwise) to all or substantially all of the business or
assets of the Company, within 15 days of such succession, expressly to assume and agree to perform this Agreement in the same manner and to the same extent as the Company would be required to perform if no such succession had taken place and the
Executive acknowledges that in such event the obligations of the Executive hereunder, including but not limited to those under Sections 13 and 14, will continue to apply in favor of the successor. 

 

 12 

 22. Entire Agreement. This Agreement sets forth the entire agreement of the parties
hereto and supersedes any and all prior agreements and understandings concerning the severance and change of control termination benefits associated with Executive’s employment by the Company. This Agreement may be changed only by a written
document signed by the Executive and the Company. 
 23. Section 409A of the Code. 

(a) This Agreement is intended to comply with Section 409A of the Code and its corresponding regulations, or an exemption, and
payments may only be made under this Agreement upon an event and in a manner permitted by Section 409A, to the extent applicable. Severance benefits under the Agreement are intended to be exempt from Section 409A under the “separation
pay exception,” to the maximum extent applicable, or another exemption. Notwithstanding anything in this Agreement to the contrary, if required by Section 409A, if the Executive is considered a “specified employee” for purposes
of Section 409A and if payment of any amounts under this Agreement is required to be delayed for a period of six months after separation from service pursuant to Section 409A, payment of such amounts shall be delayed as required by
Section 409A, and the accumulated amounts shall be paid in a lump sum payment within ten days after the end of the six-month period. If the Executive dies during the postponement period prior to the payment of benefits, the amounts withheld on
account of Section 409A shall be paid to the personal representative of the Executive’s estate within 60 days after the date of the Executive’s death. 

(b) All payments to be made upon a termination of employment under this Agreement may only be made upon a “separation from
service” under Section 409A. For purposes of Section 409A of the Code, the right to a series of payments under this Agreement shall be treated as a right to a series of separate payments. In no event may the Executive, directly or
indirectly, designate the calendar year of a payment. All reimbursements and in-kind benefits provided under the Agreement shall be made or provided in accordance with the requirements of Section 409A. 

24. Severability. If any provision of this Agreement or application thereof to anyone or under any circumstances is adjudicated to
be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect any other provision or application of this Agreement which can be given effect without the invalid or unenforceable provision or application and
shall not invalidate or render unenforceable such provision or application in any other jurisdiction. If any provision is held void, invalid or unenforceable with respect to particular circumstances, it shall nevertheless remain in full force and
effect in all other circumstances. 
 25. Governing Law. This Agreement shall be governed by, and construed and enforced
in accordance with, the substantive and procedural laws of the Commonwealth of Pennsylvania without regard to rules governing conflicts of law. 

26. Counterparts. This Agreement may be executed in any number of counterparts (including facsimile counterparts), each of which
shall be an original, but all of which together shall constitute one instrument. 
  

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 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on August 4, 2010.

  

			
	ORTHOVITA, INC.
		
	By:	 	 /s/ Antony Koblish

		 	President and Chief Executive Officer
	
	EXECUTIVE
	
	 /s/ Christopher H. Smith

	Christopher H. Smith

  

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