Document:

Development Agreement with Harvinder S. Sandhu

 Exhibit 10.43 
  
 EXECUTION COPY 
  
 DEVELOPMENT AGREEMENT 
  
 This Development Agreement (this “Agreement”) is made and entered into as of the 31st day of May, 2006 (the “Effective Date”), by and
between AMEDICA CORP., a Delaware corporation (“Amedica”), and Harvinder S. Sandhu, M.D. (“Sandhu”). 
  
 RECITALS: 
  
 A. Amedica is in the business of designing, developing and selling various products and applications for medical and biomedical uses that are made from
various materials, including advanced ceramic materials. 
  
 B.
Amedica desires to continue to encourage the development, testing and clinical training for novel Devices (as defined herein) for implant in or use with the spine in medical and surgical procedures, whether manufactured from ceramic materials or
other materials. 
  
 C. Sandhu offers clinical knowledge and
experience relating to the spine. 
  
 D. The parties desire to
enter into an agreement to assist in the future development, approval, trial and clinical use of Devices. 
  
 E. Sandhu desires the right to assign to an entity controlled by Sandhu the rights and obligations of Sandhu hereunder. 
  
 NOW, THEREFORE, for and in consideration of the mutual promises and covenants
herein contained, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree and represent as follows: 
  
 1. Definitions. For purposes of this Agreement, the following terms shall have the following definitions:

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant
to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act of 1933, as amended. 

 a. “Development Services” means the development and related services as requested by Amedica
relating to the conceptualization, development, testing, approval and related matters involving the Devices more fully described in Section 2, below. 
  
 b. “Devices” means all ideas, discoveries, creations, improvements, know-how, inventions, designs, developments, apparatus, techniques, methods,
processes, and materials, whether or not patentable, including all rights to obtain, perfect or enforce any proprietary interests therein, in the Field of Interest, which Sandhu, whether alone or in concert with others, may conceive, reduce to
practice or develop during the Term (or, if based on or related to any confidential or proprietary information of Amedica, within [***********] after the termination of this Agreement), alone or in conjunction with another, or others, whether during
or out of regular business hours, and whether at the request or upon the suggestion of Amedica, or otherwise. These Devices include but are not limited to those items more fully identified on Schedule A attached hereto. 
  
 c. “Field of Interest” means the development, testing and
commercializing of biomedical or surgical stabilization devices, covered by current Amedica patent applications and further Amedica developments, including ceramic materials or metallic materials for static, transpedicular lumbar stabilization and
for static anterior cervical stabilization. Amedica may expand or otherwise change the definition of its Field of Interest at any time, as long as this expansion continues to be related solely to ceramic materials, which new definition will be
binding upon Sandhu ten (10) days after written notice to Sandhu thereof. 
  
 2. Development Arrangements. The parties intend that Sandhu shall diligently perform the Development Services which shall include, without limitation, the following 
  

 2 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act of 1933, as amended. 

 a. Examining and reviewing the characteristics of the Devices and the nature of the materials with which
the Devices are constructed. 
  
 b. Offering experience on ideas
and testing pertaining to the Devices, and coordinating with other Amedica personnel and third parties related to such testing, as requested by Amedica. 
  
 c. Providing guidance and assistance in the clinical details of the Devices. 
  
 d. Assisting in the filing of provisional patents and other patents pertaining to the Devices as determined by Amedica.

  
 e. Assisting in applying for or otherwise seeking regulatory
approval for the Devices or surgical processes for their implantation or other use. 
  
 3. Performance by Entity. Amedica agrees and consents that Sandhu may assign to an entity Sandhu’s rights and obligations hereunder, provided that: 
  
 a. The entity shall be under Sandhu’s control; and the entity shall
provide for the entity’s services to be performed by Sandhu, except as otherwise agreed to by Amedica, which consent shall not be unreasonably withheld. 
  
 b. Sandhu shall continue to be personally subject to and bound by the provisions of Sections 7 through 11, inclusive, of this Agreement. 
  
 4. Term and Termination. 
  
 a. The term (the “Term”) of this Agreement shall commence as of
the Effective Date and shall continue until the later of: (i) ten (10) years from the date hereof, or (ii) the expiration of the final remaining patent rights on the last of the Devices, unless earlier terminated as provided
hereunder. 
  

 3 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act of 1933, as amended. 

 b. Either party has the right to terminate this Agreement at any time upon thirty (30) days’
prior written notice thereof to the other party. If either party terminates this Agreement pursuant to this subsection 4(b), Amedica shall be obligated to continue to pay royalty payments that are earned for Devices resulting from Sandhu’s
Development Services as set forth in Section 5 below. 
  
 5. Compensation for Assignment and Sale Proprietary Rights. As full consideration for the Development Services and any valuable assignment of rights in or related to Devices to Amedica pursuant to Section 8 hereof,
Amedica shall pay Sandhu the total of the following: 
  
 a.
Sandhu shall, in the form of royalty or similar payments, receive [****************] of the Net After-Tax Profits for the [****************] and [***********] of the Net After-Tax Profits for the [***********]; provided,
that this is subject to the provisions of Subsections 5(b) and 5(c) below. “Net After-Tax Profits” is defined as that portion of profits received by Amedica attributable to sale of Devices, after deducting from all gross proceeds from such
sales the costs and expenses attributable to the development, testing, marketing and sale of the Devices (but not including any Amedica overhead or expenses unrelated to the Devices), and less all sales, use, occupation or excise taxes and all
income taxes applicable to income generated from the Devices. 
  
 b. Upon Sandhu’s death, or upon letters from two independent physicians that Sandhu is permanently disabled and unable to perform the nature of the Development Services hereunder, this Agreement shall terminate as to Sandhu; provided,
that Sandhu (or Sandhu’s surviving spouse or estate), or Sandhu’s entity, as applicable, shall continue to be entitled to receive the royalties as provided herein. 
  

 4 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act of 1933, as amended. 

 c. Notwithstanding any provision herein to the contrary, income used for calculating royalties payable to
Sandhu hereunder shall not include any sales attributable to the use of any Devices by any hospital or surgical center where Sandhu, or any entity controlled by Sandhu currently practices medicine or contracts for services. 
  
 No provision under this Agreement, either overtly or covertly, directly or
indirectly, requires or contemplates that Sandhu make any recommendations to Sandhu’s patients or health care facilities with respect to Amedica’s Devices or other products. There shall be no adjustment to the percentage of royalties, or
the rate of any other compensation, if any, resulting from the presence of or absence of, any recommendations of Amedica’s Devices or other products to Sandhu’s patients or health care facilities by Sandhu. 
  
 If Sandhu is paid any share of Net After Tax Profits inconsistent with the
provisions of this Subsection 5(c), upon advance written notice to Sandhu, Amedica will offset such improperly paid amount from any future payment owing to Sandhu. 
  
 d. Amedica shall maintain separate and sufficient accountings and records relating to the Devices to enable the payments
payable hereunder to be determined and verified. Sandhu shall, at all times, have the right, during normal business hours and upon reasonable notice to Amedica, to audit on a confidential basis the relevant books and records of Amedica to verify
that the payments due and owing Sandhu pursuant to subsection 5(a) have been accurately determined. The costs of such audits shall be borne by Sandhu unless he has been underpaid by [*************]; in such case, costs of the audit shall be
paid by Amedica. Payment of any amount determined to be owing to Sandhu will be made to him in accordance with the provisions of subsection 4(b) above. 
  

 5 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act of 1933, as amended. 

 e. Without limiting the provisions of Subsection 4(b), the parties acknowledge that the continued payment
of, and the continuing obligation to pay, the royalties payable hereunder is not dependent on the continuing performance of the Development Services, the ongoing Term of this Agreement, or any other contingency or condition. 
  
 f. Sandhu acknowledges that the payment provisions of this Section 5
represent the sole agreement between the parties with regard to Sandhu’s compensation for all Development Services and any assignment of rights to the Devices; and Amedica shall not be obligated to make, or otherwise be liable for, any
additional payment of compensation or reimbursement of expenses with regard to Development Services or the Devices or other similar type payment. It is the parties’ intent that this Agreement provide for the “sale or exchange of a capital
asset” by Sandhu to Amedica under Internal Revenue Code Section 1235 entitled “Sale or Exchange of Patents,” and that all payments made to Sandhu hereunder shall be taxed as long-term capital gains. Nothing in this Agreement to
the contrary shall imply that the parties intend that the payments to Sandhu hereunder shall be for anything other than the transfer of all proprietary rights that Sandhu may have in the Devices. Amedica is making no warranties or representations,
however, as to ultimate taxability of the payments to Sandhu hereunder. 
  
 6. Exclusivity. Amedica acknowledges that Sandhu, and any entities which may currently or in the future be controlled by Sandhu, have other professional business and investment dealings in addition to his responsibilities
under this Agreement and that Sandhu will not be required to devote his time exclusively to his responsibilities hereunder, either directly or indirectly. Notwithstanding any provision herein to the contrary, Sandhu agrees that during the Term, as
between Sandhu and Amedica, Amedica shall possess the exclusive ownership of the Devices. Amedica acknowledges that this is a non-exclusive agreement, and nothing herein may 

  

 6 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act of 1933, as amended. 

 
be construed to prohibit either Amedica or Sandhu from entering into similar contractual relationships with other parties, or from engaging or participating
in any other venture, unrelated to the Devices. Without limiting the foregoing, Amedica recognizes and acknowledges that Sandhu (either directly or though his entities) actively performs product development services for and on other parties in the
area of orthopedic surgery and related fields; therefore, Sandhu may provide consulting, product development, and other services, not related to the Devices, for and on behalf of persons or entities that may compete with Amedica or that develop,
manufacture, or sell products or technologies that are similar in function or design (excluding the Field of Interest, which involves solely ceramic materials) to those developed or sold by Amedica. 
  
 7. Confidentiality. 
  
 a. Both during the Term and following termination of this Agreement for any
reason, except as necessary for the performance of the Development Services hereunder, Sandhu shall not, at any time or in any manner, directly or indirectly, use, divulge, disclose or communicate to any third-person or entity any information that
was disclosed to or developed by Sandhu during the course of performing the Development Services and which is not (i) information that Sandhu was aware of prior to the term of this Agreement, (ii) information that Sandhu becomes aware of
through a source other than Amedica, (iii) information that is available to the general public through a prior disclosure, provided that Sandhu did not commit such prior disclosure in violation of this Agreement, or (iv) the Retained
Intellectual Property (as defined herein). Also without limiting the foregoing, Sandhu may disclose the existence and general nature of this Agreement and the fact that it pertains to the Development Services and the Devices. Subject to the
foregoing exceptions, the confidential information described herein shall 

  

 7 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act of 1933, as amended. 

 
include information regarding matters affecting or relating to Amedica’s business or its Devices; the nature of Amedica’s properties or products,
whether developed or under development; the identity of Amedica’s customers; prices which Amedica obtains or has obtained with respect to its products or services; information as to Amedica’s discussions, negotiations and/or dealings with
actual or potential third-party buyers, investors, licensees or co-venturers; Amedica’s costs, overhead or profit margin; or Amedica’s operational methods or its business plans and processes. 
  
 b. Promptly following termination of this Agreement, Sandhu shall deliver to
Amedica any and all property of Amedica which may be in his possession including products, materials, memoranda, notes, records, reports, writings, drawings, diskettes, models and other materials or other documents or photocopies of the same in any
tangible form whatsoever constituting confidential or proprietary information of Amedica, and any of the foregoing in intangible form. 
  
 8. Covenant Not to Compete. 
  
 a. Sandhu recognizes and acknowledges the competitive and proprietary nature of Amedica’s Field of Interest. Sandhu acknowledges and agrees that a
business will be deemed competitive with Amedica if it develops, manufactures or sells any products within the Field of Interest and Sandhu has participated in the creation, research and/or testing of those such products (such business to be
referred to as a “Competitive Business”). 
  
 b. Sandhu
agrees that during the Term and for an additional [**********] after termination of this Agreement (which period shall be tolled during the period of any violation or breach of any of the provisions of this Section 8 and for a period of
[***********] thereafter), Sandhu shall not: 
  

 8 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act of 1933, as amended. 

 (i) for his benefit, or on behalf of any other person or entity, directly or indirectly,
as principal, agent, stockholder, employee, consultant, representative or in any other capacity, own, manage, operate or control, or be concerned, connected or employed by, or otherwise associate in any manner with, engage in or have a financial
interest in any Competitive Business anywhere in the continental United States of America (the “Restricted Territory”), except that nothing contained herein shall preclude Sandhu from purchasing or owning securities of any such business if
such securities are publicly traded, and provided that his holdings do not exceed one percent (1%) of the issued and outstanding securities of any class of securities of such business; or 
  
 (ii) either individually or on behalf of or through any
third party, directly or indirectly, solicit, entice or persuade or attempt to solicit, entice or persuade any other employees of or consultants to Amedica or any present or future parent, subsidiary or affiliate of Amedica to leave the services of
Amedica or any such parent, subsidiary or affiliate for any reason. 
  
 c. Sandhu further recognizes and acknowledges that: (i) the restrictions in this Section 8 are reasonable in relation to the skills which represent his principal salable asset both to Amedica and to any prospective employers, and
(ii) the geographical scope of the provisions of this Section 8 is reasonable, legitimate and fair to Sandhu in light of Amedica’s need to market its services and sell its products worldwide in order to have a sufficient customer base
to make Amedica’s business profitable and in light of the limited restrictions on the type of employment prohibited herein compared to the types of employment for which Sandhu is qualified to earn his livelihood. 
  

 9 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act of 1933, as amended. 

 d. Notwithstanding anything herein to the contrary, nothing in this Section 8 shall apply with
regard to any services performed by Sandhu prior to the Term hereof (and which services do not involve any activities by Sandhu within the Field of Interest continuing from and after the date of this Agreement) with regard to any devices, ideas,
discoveries, creations, improvements, know-how, inventions, designs, developments, apparatus, techniques, methods, processes, and materials of any kind (the “Prior Work”). Accordingly, nothing herein shall prohibit Sandhu’s receipt of
any compensation of any kind (e.g., royalties) in consideration for such Prior Work. 
  
 e. The acknowledgments and agreements set forth in this Section 8 shall survive the termination of Sandhu’s performance of the Development Services for any reason, for the time period set forth herein.

  
 9. Ownership of Ideas, Copyrights and Patents.

  
 a. Sandhu agrees that he will take reasonable steps to
promptly disclose all Devices to Amedica and that he will not publish any Devices or any information with regard thereto, without the prior written consent of Amedica, which will not be unreasonably withheld. 
  
 b. As between Sandhu and Amedica, Amedica shall have the sole and exclusive
right, even as to Sandhu, to prepare, file, prosecute, obtain and maintain any and all patents and patent applications claiming any Devices. All Devices shall be the sole and exclusive property of Amedica and, subject to payment pursuant to the
provisions of Section 3 hereof, and the waivers of any and all representations and warranties concerning the Devices as set forth in Subsection 10(e) below, Sandhu hereby assigns to Amedica all of his right, title and -interest in and to all of
the Devices, including the intellectual property therein, which may include trade secrets, inventions, discoveries, or improvements, whether or not registerable or patentable, that 

  

 10 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act of 1933, as amended. 

 
are conceived, whether alone or jointly with others, during the Term of this Agreement that are a direct and specific result of the Development Services
(collectively, the “Assigned Intellectual Property). This assignment does not include any such intellectual property that pertains : to (i) orthopedic surgical principles in general (including products that may pertain to the same
pathological conditions in the same anatomical locations that are relevant to the Devices; to (ii) other products or technologies used in orthopedic surgery; (iii) to proprietary concepts and inventions in which Sandhu has any right,
title, or interest as of the date of the execution of this Agreement (collectively “Prior Rights”), or (iv) to any other concept, know-how, discovery, or other intellectual property that is not within the definition of the Assigned
Intellectual Property (all of the foregoing collectively, the “Retained Intellectual Property”). Sandhu shall not be restricted from assigning, licensing, or otherwise utilizing the Retained Intellectual Property in any manner. 

 
 c. Sandhu hereby agrees to reasonably cooperate with Amedica, its
attorneys and agents in the preparation and filing of all papers and other documents as may be required to perfect Amedica’s rights in and to any Devices, including, but not limited to, performing all acts reasonably deemed necessary or
desirable by Amedica (both during the Term and for a period of [***********] after expiration of this Agreement) and joining in any proceeding to obtain letters patent, copyrights, trademarks or other legal rights of the United States of America and
of any and all other countries to Devices; provided, that, Amedica will bear the expense of all such proceedings. Sandhu hereby agrees that any patent or other legal right covering any Assigned Intellectual Property issued to Sandhu, shall be
assigned by Sandhu to Amedica without charge. 
  
 d. Without
limiting the foregoing, Sandhu further acknowledges that all original works of authorship made by such Sandhu, within the Field of Interest, by Sandhu that 

  

 11 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act of 1933, as amended. 

 
Sandhu has first conceived and first reduced to writing, whether alone or jointly with others during the Term of this Agreement that are a direct and
specific result of the Development Services and that are protectable by copyright are “works made for hire” within the meaning of the United States Copyright Act, 17 U.S.C. § 101, as amended, the copyright of which shall be owned
solely, completely and exclusively by Amedica. If any such work is not considered to be a work made for hire covered by the United States Copyright Act, 17 U.S.C. § 101, as amended, such work shall be owned solely by, or hereby assigned or
transferred completely and exclusively to, Amedica. Any and all works of authorship described in this Subsection shall be included within the definition of Assigned Intellectual Property. 
  
 e. Notwithstanding anything herein to the contrary, Sandhu expressly disclaims, and Amedica expressly waives, any and all
representations and warranties in regard to or concerning the Assigned Intellectual Property, the Development Services and the Devices. Without limiting the foregoing, the parties agree that Sandhu does not represent or warrant that any portion of
the Assigned Intellectual Property is valid, enforceable, registerable, or original, that it will be free from claims of infringement, interference, or unlawful use of proprietary information of any third party, or that it does not infringe upon the
intellectual property rights of any other party. Furthermore, Sandhu expressly disclaims, and Amedica expressly waives, the warranties of merchantability and fitness for a particular purpose with regard to the Assigned Intellectual Property, the
Development Services and the Devices, and any and all representations and warranties that the Assigned Intellectual Property and the Devices will perform or function in any particular manner, with any particular results, or free from defects.

  

 12 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act of 1933, as amended. 

 10. Representations and Warranties Regarding Prior Work and Legal Obligations. 

 
 a. Sandhu hereby represents and warrants that he has no commitments or
obligations with any prior employer or any other person or entity that would restrict his ability to perform the Development Services. 
  
 b. Sandhu represents that he has been advised by Amedica that at no time should he divulge to, or use for the benefit of, Amedica any trade secret or
confidential or proprietary information of any previous employer. Sandhu acknowledges that he has not divulged or used any such information for the benefit of Amedica. 
  
 c. Sandhu acknowledges that Amedica is basing important business decisions on these representations, and affirms that all of
the statements included herein are true. 
  
 11. Equitable
Remedies. Sandhu acknowledges that the breach of the provisions of Sections 7, 8, 9 and 10 above shall constitute irreparable damage to Amedica and, accordingly, Amedica may, in addition to all other available remedies under law and equity,
obtain injunctive relief upon an alleged violation of such Sections pending resolution on the merits of any claims raised by Amedica hereunder. 
  
 12. Stock Option Arrangements. As further consideration hereunder, the parties agree in good faith to negotiate an agreement granting
Sandhu, or Sandhu’s designate, certain rights to obtain options for the purchase of Anedica stock. The nature, amount and terms of such options shall be agreed upon by the parties in good-faith as soon as reasonably possible. 
  
 13. Development Agreement Only. This Agreement constitutes a
development agreement only. Nothing herein is intended, nor shall it be construed, to create any employer/employee arrangement, partnership arrangement or other relationship between or among the parties except as expressly provided herein; and
nothing herein is intended to grant to either party any right or interest in or to the assets, business or interests of the other party, nor the right to bind the other party except as expressly herein provided. 
  

 13 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act of 1933, as amended. 

 14. Compliance with Laws and Regulations. The parties, at all times, shall interpret and
apply the provisions of this Agreement strictly in accordance with all applicable laws and regulations, including, but not limited to all Medicare and Medicaid laws and regulations. 
  
 a. If any provision of this Agreement is found, by any applicable court or government agency, to be in conflict with any
applicable law or regulation, the provisions of such law or regulation shall govern; and the interpretation and operation under this Agreement shall be modified accordingly. 
  
 b. The parties have no intent through this Agreement or otherwise to solicit, receive, offer, or pay any remuneration in
return for recommending the use or utilization of any good or service payable under certain federal health programs, as such is prohibited by the statute at 42 U.S.C. 1320a-7b(b), nor do the parties have any other impermissible intent to violate any
similar federal or state law that may apply with regard to any other health care reimbursement program. Sandhu is under no obligation whatsoever to utilize any products manufactured by Amedica, nor to recommend that such products are utilized by
others. If any provision of this Agreement is determined by either party to present a possible violation of any such law, as supported by a written, reasoned opinion of competent legal counsel, the parties shall in good faith negotiate together to
amend the terms of this Agreement in a manner that will alleviate any such possible violation while preserving the reasonable business (e.g., compensation) expectations of the parties. 
  

 14 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act of 1933, as amended. 

 15. Indemnification by Amedica. 
  
 a. Amedica will indemnify and hold Sandhu harmless from any and all claims,
costs, judgments and expenses (including reasonable attorneys fees) involving (i) any claim that any Device infringes or interferes with any patent or other proprietary claim of any third-party, and (ii) to the extent claimed or proven to
be solely due to Device design or manufacturing defect of whatever sort based on claims of product design or manufacturing defects whether sounding in negligence, strict liability at law, contract or statutory violation, and (iii) any breach by
Amedica of any provision of this Agreement. 
  
 b. Any
indemnification provided by Amedica hereunder shall not apply to any claim insofar as that claim (i) relates to a professional medical liability or malpractice claim brought against Sandhu for professional acts or omissions in connection with
the medical care or treatment associated with a Device; (ii) arises from any breach by Sandhu of any provision of this Agreements; or (iii) arises from any knowing submission by Sandhu of false data to Amedica or from any other intentional
wrongdoing by Sandhu. 
  
 c. Promptly upon Sandhu’s receipt
of information concerning the commencement of any third-party claim, demand, action, suit or proceeding (collectively, “Action”) which is the subject of indemnification hereunder, Sandhu shall notify Amedica in writing of the commencement
of the Action. Any failure to provide such prompt notice shall relieve Amedica of its indemnification obligations to the extent Amedica has been materially prejudiced by such failure. Amedica may select counsel at its own expense and control the
defense of such indemnity claim; and Sandhu may participate jointly with Amedica in such defense, at Sandhu’s expense, in which event the parties shall reasonably cooperate with each other. Amedica will vigorously defend any such claim, and
shall not settle any such claim or refrain from appealing any adverse ruling, judgment, or verdict without the advance written 

  

 15 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act of 1933, as amended. 

 
consent of Sandhu, which consent shall not be unreasonably withheld. With respect to any Action relating solely to the payment of money damages, Amedica
shall have the sole right to defend, settle, or otherwise dispose of such claim on such terms as Amedica, in its sole discretion, shall deem appropriate; provided, that Amedica shall provide reasonable evidence of its ability to pay any damages
claimed. If the Action involves any claim in which Sandhu would become subject to injunctive relief or to other equitable relief, or Sandhu’s business would be adversely affected in any manner, Amedica shall settle that claim only upon the
written consent of Sandhu, which shall not be unreasonably withheld. 
  
 16. Indemnification by Sandhu. Except to the extent that any such claims arise through the wrongful act or neglect of Amedica, Sandhu will indemnify and hold Amedica harmless from any and all claims, costs, judgments and
expenses arising from any breach by Sandhu of any warranty, representation or affirmative obligation of Sandhu under this Agreement. 
  
 17. General. 
  
 a. Notices. All notices required or permitted to be given to a party hereunder shall be mailed by certified mail or registered mail, postage
prepaid, to that party’s address set forth on the signature page of this Agreement (or to such other address specified in writing). 
  
 b. Default. If either party defaults in any of the covenants or provisions herein, the defaulting party shall pay all costs and attorneys’
fees incurred by the other party in enforcing its rights arising hereunder. Sandhu’s counsel set forth below shall be provided with a copy of any notice given to Sandhu hereunder: 
  
 Peter J. Toren 
 Sidley Austin LLP 
 787 Seventh Avenue 
 New York, N.Y. 10019 
  

 16 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act of 1933, as amended. 

 c. Governing Law and Venue. This Agreement shall be interpreted, performed and enforced according
to the laws of Utah. Venue for any action hereof shall lie with the Third Judicial District Court of the State of Utah for the United States District Court for the District of Utah, Central Division. 
  
 d. Unenforceable Provision. If any provision of this Agreement is
deemed unenforceable by any court of competent jurisdiction, the remaining provisions shall nonetheless be enforceable according to their terms. Further, if any provision is held to be over broad as written, such provision shall be deemed amended to
narrow its application to the extent necessary to make the provision enforceable according to applicable law and shall be enforced as amended. 
  
 e. Assignment. Amedica may assign its rights and obligations hereunder to any person or entity that succeeds to all or substantially all of
Amedica’s business or that aspect of Amedica’s business in which Sandhu is principally involved. Sandhu’s rights and obligations under this Agreement may not be assigned by Sandhu without the prior written consent of Amedica except
for the right to receive payments pursuant to Section 5 above. 
  
 f. Benefit. All statements, representations, warranties, covenants and agreements in this Agreement shall be binding on the parties hereto and shall inure to the benefit of the respective successors and permitted assigns of each
party hereto. Nothing in this Agreement shall be construed to create any rights or obligations except between the parties hereto, and no person or entity shall be regarded as a third-party beneficiary of this Agreement, other than any future parent,
subsidiary or affiliate of Amedica. 
  

 17 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act of 1933, as amended. 

 g. Entire Agreement. This Agreement embodies the entire agreement and understanding between and
among the parties hereto with respect to the subject matter hereof and supersedes all prior oral or written agreements and understandings relating to the subject matter hereof. No statement, representation, warranty, covenant or agreement of any
kind not expressly set forth in this Agreement shall affect, or be used to interpret, change or restrict, the express terms and provisions of this Agreement. 
  
 h. Modifications and Amendments. The terms and provisions of this Agreement may be modified or amended only by written agreement executed by the
parties hereto. 
  
 i. Waivers and Consents. The terms and
provisions of this Agreement may be waived, or consent for the departure therefrom granted, only by written document executed by the party entitled to the benefits of such terms or provisions. No such waiver or consent shall be deemed to be or shall
constitute a waiver or consent with respect to any other terms or provisions of this Agreement, whether or not similar. Each such waiver or consent shall be effective only in the specific instance and for the purpose for which it was given, and
shall not constitute a continuing waiver or consent. 
  
 j.
Construction. The parties have participated equally in the formation of this Agreement and the language of this Agreement will not be presumptively construed against either party. 
  
 k. Counterparts. This Agreement may be executed in one or more counterparts, and by different parties hereto on
separate counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
  

 18 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act of 1933, as amended. 

 l. Section Numbers and Headings. The Section and Subsection headings and numbers used herein are
for purposes of convenience and shall not be considered in the interpretation of this Agreement. 
  
 IN WITNESS WHEREOF this 31st day of May, 2006. 
  

					
		  	AMEDICA	 	
			
	Address:	  	Amedica Corp.	 	
		  	A Delaware Corporation	 	
			
	Amedica Corporation	  		 	
	615 Arapeen Drive, Suite 302	  	 /s/ Eugene B. Jones
	 	
	Salt Lake City, UT 84108	  	Eugene B. Jones	 	
		  	Vice President, Finance & CFO	 	
			
		  	SANDHU	 	
			
	Address:	  		 	
			
	Harvinder S. Sandhu, M.D.	  		 	
	[********************]	  	 /s/ Harvinder S. Sandhu, M.D.
	 	
	[********************]	  	Harvinder S. Sandhu, M.D.	 	

  

 19 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act of 1933, as amended. 

 SCHEDULE A 
  
 Devices 
  
 The Devices consist of the following: 
  
 1. [****************] 
  
 2. [****************] 
  

 20 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act of 1933, as amended.Development Agreement with B. Sonny Bal

 Exhibit 10.44 
  
 EXECUTION COPY 
  
 DEVELOPMENT AGREEMENT 
  
 This Development Agreement (this “Agreement”) is made and entered into as
of the 29th day of December, 2006, by and between AMEDICA CORPORATION, a Delaware corporation
(“Amedica”), and B. Sonny Bal, M.D. (“Bal”). 
  
 RECITALS: 
  
 A. Amedica is in the
business of designing, developing, manufacturing and selling various products and applications for medical and biomedical uses and from various materials, including the use of advanced ceramic materials; 
  
 B. Amedica desires to continue to encourage the conceiving, development,
testing, providing education and dealing with novel devices for implant in or use with hip and knee reconstructive medical and surgical procedures, whether manufactured from ceramic materials or other materials; 
  
 C. Bal is an orthopedic surgeon having knowledge and expertise relating to
hip and knee reconstructive procedures; and 
  
 D. Amedica and Bal
desire to enter into arrangements between them for past and future development, approval, trial and clinical use of Devices (as defined below). 
  
 NOW, THEREFORE, in consideration of the mutual promises and covenants herein contained, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree and represent as follows: 
  

	 	1.	 	Definitions. 

  
 For purposes of this Agreement, the following terms shall have the following respective meanings: 
  
 a. “Development Services” means the development and
related services as requested by Amedica relating to the conceptualization, development, testing, approval and related matters involving the Devices more fully described in Section 1(b) hereof. 
  
 b. “Devices” are exclusively limited to those items
(each a “Device”) designed in Schedule A attached hereto, as the same may be amended by agreement of the parties hereto, and includes all ideas, discoveries, creations, improvements, know-how, inventions, designs, developments,
apparatus, techniques, methods, processes, and materials, whether or not patentable, including all rights to obtain, perfect or enforce any proprietary 

  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act of 1933, as amended. 

 
interests therein, pertaining to such items designated in said Schedule A hereto, which Bal, whether alone or in concert with others, may conceive,
reduce to practice or develop during the Term (or, if based on or related to any confidential or proprietary information of Amedica, within [***********] after the termination of this Agreement), alone or in conjunction with another, or others,
whether during or outside of regular business hours, and whether or not at the request or upon the suggestion of Amedica. 
  
 c. “Net After-Tax Profits” means that portion of profits received by Amedica attributable to the sale of Devices, after deducting
from all gross proceeds from such sales the costs and expenses attributable to the development, testing, marketing and sale of the Devices (but not including any Amedica overhead or expenses unrelated to the Devices), and less all sales, use,
occupation or excise taxes and all income taxes applicable to income generated from the Devices. 
  
 d. “Effective Date” means January 1, 2005. 
  

	 	2.	 	Cooperative Development Arrangements. 

  
 The parties intend that Bal shall diligently perform the Development Services and provide reasonable input and expertise hereunder. The Development
Services shall include, without limitation, the following: 
  
 a.
Examining and reviewing the characteristics of the Devices and the nature of the materials with which the Devices are constructed; 
  
 b. Providing expertise in ideas and testing pertaining to the Devices, and coordination with other Amedica personnel and third-parties related to such
testing, as requested by Amedica; 
  
 c. Providing guidance and
assistance in the clinical details of the Devices; 
  
 d.
Assisting by providing the written portions of the patent applications pertaining to the Devices as determined by Amedica and approved by Bal; and 
  
 e. Assisting by providing the written portions of applications for regulatory approval for the Devices or surgical processes for their implantation or
other use. 
  

	 	3.	 	Term and Termination. 

  
 a. Unless earlier terminated as provided in Section 3(b) hereof, the term of this Agreement (“Term”) shall commence as of the
Effective Date and shall continue until the later of: 
  

 -2- 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act of 1933, as amended. 

 (i) Ten (10) years from the date hereof; or 
  
 (ii) The expiration of patent rights, developed as a result of the
performance of Development Services, on the Devices. 
  
 b. Either
party has the right to terminate this Agreement at any time upon thirty (30) days prior written notice to the other. Upon termination, Subject to Section 16(k) hereof, Amedica’s sole obligation to Bal will be to pay any then
outstanding unpaid fees, royalties or other compensation due Bal under the terms of this Agreement and to reimburse Bal for then outstanding reimbursable expenses. Royalty payments rightfully due Bal will continue being paid by Amedica to Bal or his
designated beneficiary after the termination of this Agreement. 
  

	 	4.	 	Compensation for Assignment and Sale of Proprietary Rights. 

  
 a. As full consideration for the Development Services related solely to [************************] and any assignment of right or rights in Devices
related to [************************] to Amedica pursuant to Section 8 hereof, Amedica shall pay Bal, in the form of royalty or similar payments, payable on a monthly basis, [************] of the Net After-Tax Profits generated by
sales of the [********************]. 
  
 b. As full
consideration for the Development Services related solely to the [****************************] and any assignment of right or rights in Devices related to [****************************] to Amedica pursuant to Section 8 hereof,
Amedica shall pay Bal, in the form of royalty or similar payments, payable on a monthly basis, [************] of the Net After-Tax Profits generated by the sales of the [****************************]. 
  
 c. As full consideration for the Development Services related solely to the
[****************************] and any assignment of right or rights in Devices related to [****************************] to Amedica pursuant to Section 8 hereof, Amedica shall pay Bal, in the form of royalty or similar payments,
payable on a monthly basis, [************] of the Net After-Tax Profits generated by sales of [****************************]. 
  
 d. Upon Bal’s death, or upon letters from two independent physicians that 

  

 -3- 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act of 1933, as amended. 

 
Bal is disabled and unable to perform the Development Services hereunder, this Agreement shall terminate as to Bal; provided, that Bal or Bal’s
designated beneficiary, shall continue to be entitled to receive the royalties as provided herein, applicable to all Devices for which commercial sales have commenced prior to the date of death or disability. 
  
 e. Notwithstanding any provision herein to the contrary, income used for
calculating royalties payable to Bal hereunder shall not include any sales attributable to the use of any Devices by any hospital or surgical center where Bal (or a partner, shareholder, employee or contracting physician) concurrently practices
medicine. No provision under this Agreement, either overtly or covertly, directly or indirectly, requires or contemplates that Bal make any recommendations to Bal’s patients or health care facilities with respect to Devices or other products.
There shall be no adjustment to the percentage of royalties, or the rate of any other compensation, resulting from the presence of or absence of, any recommendations of Devices or other products to Bal’s patients or health care facilities by
Bal. 
  
 f. Amedica shall maintain separate accountings relating
to the Devices. Bal shall, at all times, have reasonable access to examine Amedica’s books and records relating to the Devices solely for the purpose of confirming the accuracy of the amount of royalties payable pursuant to the terms of this
Agreement. 
  
 g. Bal acknowledges that the payment provisions of
this Section 4 represents the sole agreement between the parties with regard to Bal’s compensation for all Development Services and any assignment of rights to the Devices; and Amedica shall not be obligated to make, or otherwise be liable
for, any additional payment of compensation, reimbursement of expenses, or any other similar types of payment with regard to Development Services or the assignment of Devices. It is the parties’ intent that this Agreement provide for the
“sale or exchange of a capital asset” by Bal to Amedica under Internal Revenue Code Section 1235 entitled “Sale or Exchange of Patents,” and that all payments made to Bal hereunder shall be taxed as long-term capital gains.
Nothing in this Agreement to the contrary shall imply that the parties intend that the payments to Bal hereunder shall be for anything other than the transfer of all proprietary rights that Bal may have in the Devices. Bal acknowledges that Amedica
has not made and is not making any representation or warranty as to ultimate tax treatment of the payments to Bal hereunder and that Bal is encouraged to consult with his own tax advisors. 
  

 -4- 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act of 1933, as amended. 

	 	5.	 	Exclusivity. 

  
 Amedica acknowledges that Bal has other professional business and investment dealings in addition to his responsibilities under this Agreement and that
Bal will not be required to devote his time exclusively to his responsibilities hereunder. Notwithstanding any provision herein to the contrary, Bal agrees that during the Term, Amedica shall have the exclusive rights to the Devices. 
  

	 	6.	 	Confidentiality. 

  
 a. Both during the Term and following termination of this Agreement for any reason, Bal shall not, at any time or in any manner or for any reason,
directly or indirectly, use, divulge, disclose or communicate to any third-person or entity any information that was disclosed to or developed by Bal during the course of performing the Development Services and which is not generally available to
the public, including, without limiting the generality of the foregoing: (i) information regarding matters affecting or relating to Amedica’s business or Devices; (ii) the nature of Amedica’s properties or products, whether
developed or under development; (iii) the identity of Amedica’s customers; (iv) prices which Amedica obtains or has obtained with respect to its products or services; (v) information as to Amedica’s discussions, negotiations
and/or dealings with actual or potential third-party buyers, investors, licensees or co-venturers; (vi) Amedica’s costs, overhead or profit margin; or (vii) Amedica’s operational methods or its business plans and processes. All
material as such will be labeled “confidential”. 
  
 b.
Promptly following termination of this Agreement, Bal shall deliver to Amedica any and all property of Amedica which may be in his possession including products, materials, memoranda, notes, records, reports, writings, drawings, diskettes, models
and other materials or other documents or photocopies of the same in any tangible form whatsoever, whether or not prepared by him, constituting confidential or proprietary information of Amedica, and any of the foregoing in intangible form.

  

	 	7.	 	Non-Competition. 

  
 a. Certain Acknowledgments and Agreements. Bal recognizes and acknowledges the competitive and proprietary nature of Amedica’s existing and
planned business operations. Bal acknowledges and agrees that, during the Term of this Agreement and the period of time following termination of this Agreement described in Section 7(b) hereof, a 

  

 -5- 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act of 1933, as amended. 

 
business is deemed to be a “Competitive Business” if such business engages in a line of business in which it develops, manufactures
or sells any products provided or offered by Amedica or any similar ceramic products to those described in Schedule A hereto. 
  
 b. Covenant Not to Compete. Bal agrees that during the Term and for an additional [************] after termination of this Agreement (which
period shall be tolled during the period of any violation or breach of any of the provisions hereof and for a period of [************] thereafter), whether such termination is voluntary or involuntary, Bal shall not: 
  
 (i) For his benefit, or on behalf of any other person or entity, directly
or indirectly, as principal, agent, stockholder, employee, consultant, representative or in any other capacity, own, manage, operate or control, or be concerned, connected or employed by, or otherwise associate in any manner with, engage in or have
a financial interest in any Competitive Business dealing, manufacturing or having an interest in the devices listed in Schedule A hereto anywhere in North America (the “Restricted Territory”), except that nothing
contained herein shall preclude Bal from purchasing or owning securities of any such business if such securities are publicly traded, and provided that his holdings do not exceed one percent (1%) of the issued and outstanding securities of any
class of securities of such business; or 
  
 (ii) Either
individually or on behalf of or through any third party, solicit, divert or appropriate or attempt to solicit, divert or appropriate, any known customers or patrons of Amedica; or 
  
 (iii) Either individually or on behalf of or through any third party, directly or indirectly, solicit, entice or persuade
or attempt to solicit, entice or persuade any other employees of or consultants to Amedica or any present or future parent, subsidiary or affiliate of Amedica to leave the services of Amedica or any such parent, subsidiary or affiliate for any
reason. 
  
 c. Reasonableness of Restrictions. Bal further
recognizes and acknowledges that: 
  
 (i) The restrictions in
this Section 7 are reasonable in relation to the skills which represent his principal salable asset both to Amedica and to any prospective employers; and 
  

(ii) The geographical scope of the provisions of this Section 7 is 

  

 -6- 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act of 1933, as amended. 

 
reasonable, legitimate and fair to Bal in light of Amedica’s need to market its services and sell its products worldwide in order to have a sufficient
customer base to make Amedica’s business profitable and in light of the limited restrictions on the type of employment prohibited herein compared to the types of employment for which Bal is qualified to earn his livelihood. 
  

	 	8.	 	Ownership of Ideas, Copyrights and Patents. 

  
 a. Disclosure of Devices. Bal agrees that he will promptly disclose all Devices to Amedica and that he will not publish any Devices or any
information with regard thereto, without the prior written consent of Amedica. 
  
 b. Property of Amedica. Amedica shall have the sole and exclusive right, even as to Bal, to prepare, file, prosecute, obtain and maintain any and all patents and patent applications claiming any Devices. All
Devices shall be the sole and exclusive property of Amedica and Bal shall assign, and hereby does assign, to Amedica all of his right, title and interest in and to all of the Devices. If Amedica fails to commence the manufacture, marketing or
distribution of the Devices within [***********] of its development, then Bal shall have the right, upon [***********] prior written notice to Amedica, to require Amedica to assign such rights back to Bal at Bal’s sole expense; provided,
however, that such [******] period shall be extended until the anniversary of the date on which Amedica receives all approvals (including pricing and reimbursement approvals), product and establishment licenses, registrations, or authorizations of
any kind of the U.S. Food and Drug Administration, or any successor agency or authority thereto (the “FDA”), necessary for the marketing and sale of the Device, but any such extension shall not commence unless application for
such FDA approvals has been initiated by Amedica during the [******] period following development of a Device, and such extension shall terminate if, after filing its initial application for such FDA approvals and prior to obtaining such approvals,
Amedica fails to pursue such FDA approvals with reasonable diligence. Bal further agrees to use his best efforts to ensure that no Devices will violate or infringe upon any right, patent, copyright, trademark or right of privacy, or constitute libel
or slander against or violate any other rights of any person, firm or corporation. 
  
 c. Prior Rights. Bal has furnished to Amedica, attached as Schedule B hereto: 
  
 (i) A list of all proprietary concepts and inventions in which he has any right, title, or interest as of the date of his execution of this Agreement
(“Prior Rights”); and 
  

 -7- 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act of 1933, as amended. 

 (ii) A list of all Prior Rights made, conceived, or developed, in whole or in part, by Bal prior to the
date of his execution of this Agreement, and Bal represents that the list of Prior Rights set forth in Schedule B attached hereto is complete and accurate. 
  
 d. Cooperation. Bal hereby agrees to willfully cooperate with Amedica, its attorneys and agents in the preparation
and filing of all papers and other documents as may be required to perfect Amedica’s rights in and to any Devices, including, but not limited to, performing all acts deemed necessary or desirable by Amedica (both during the Term and for a
period of [************] after expiration of this Agreement) and joining in any proceeding to obtain letters patent, copyrights, trademarks or other legal rights of the United States of America and of any and all other countries to Devices;
provided, that, Amedica will bear the expense of all such proceedings. Bal further agrees that any patent or other legal right covering any Device issued to Bal personally, shall be assigned promptly by Bal to Amedica without charge by Bal, except
as specifically provided under Section 3 hereof. 
  
 e.
Works Made For Hire. Without limiting the foregoing, Bal further acknowledges that all original works of authorship made by Bal after the execution of this Agreement, whether alone or jointly with others in the performance of the Development
Services and which are protectable by copyright are “works made for hire” within the meaning of the United States Copyright Act, 17 U.S.C. § 101, as amended, the copyright of which shall be owned solely, completely and exclusively by
Amedica. If any Device is considered to be work not included in the categories of work covered by the United States Copyright Act, 17 U.S.C. § 101, as amended, such work shall be owned solely by Amedica, and Bal hereby assigns or transfers
completely and exclusively the same to Amedica. 
  

	 	9.	 	Representations and Warranties Regarding Prior Work and Legal Obligations. 

  
 a. Bal hereby represents and warrants that he has no commitments or obligations with any prior employer or any other person or entity that would restrict
his ability to perform the Development Services, or is inconsistent with this Agreement and Bal hereby agrees to indemnify and hold Amedica harmless against loss, damage, liability or expense arising from any claim based upon circumstances alleged
to be inconsistent with such representation and warranty. 
  

 -8- 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act of 1933, as amended. 

 b. Bal represents that he has been advised by Amedica that at no time should he divulge to, or use for
the benefit of, Amedica any trade secret or confidential or proprietary information of any former, current or future employer. Bal acknowledges that he has not divulged or used, and agrees that he will not divulge or use any such information for the
benefit of Amedica. 
  
 c. Bal represents that he has not and will
not misappropriate any invention that he maintained any part in creating while working for any former, current or future employer. 
  
 d. Bal acknowledges that Amedica is basing important business decisions on these representations, and affirms that all of the statements included herein
are true. 
  

	 	10.	 	Equitable Remedies. 

  
 Bal acknowledges that the breach of the provisions of Sections 6, 7, 8 and 9 above shall constitute irreparable damage to Amedica and, accordingly,
Amedica may, in addition to all other available remedies under law and equity, obtain injunctive relief upon an alleged violation of such Sections pending resolution on the merits of any claims raised by Amedica hereunder. 
  

	 	11.	 	Stock Option Arrangements. 

  
 As further consideration hereunder, the parties agree in good faith to negotiate an agreement granting Bal certain rights to obtain options for the
purchase of Amedica common stock. The nature, amount and terms of such options shall be agreed upon by the parties in good-faith as soon as reasonably possible. 
  

	 	12.	 	Development Agreement Only. 

  
 This Agreement constitutes a development agreement only. Nothing herein is intended, nor shall it be construed, to create any employer/employee
arrangement, partnership arrangement or other relationship between or among the parties except as expressly provided herein; and nothing herein is intended to grant to either party any right or interest in or to the assets, business or interests of
the other party, nor the right to bind the other party except as expressly herein provided. 
  

	 	13.	 	Compliance with Laws and Regulations. 

  
 The parties, at all times, shall interpret and apply the provisions of this Agreement strictly in accordance with all applicable laws and regulations,
including, but not limited to, the so-called Stark federal anti-referral law and all Medicare and Medicaid laws and regulations. If 

  

 -9- 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act of 1933, as amended. 

 
any provision of this Agreement is found, by any applicable court or government agency, to be in conflict with any applicable law or regulation, the
provisions of such law or regulation shall govern; and the interpretation and operation under this Agreement shall be modified accordingly. 
  

	 	14.	 	Indemnification by Amedica. 

  
 a. Amedica will indemnify and hold Bal harmless from any and all claims, costs, judgments and expenses involving: 
  
 (i) Any claim that any Device infringes or interferes with any patent or
other proprietary claim of any third-party; 
  
 (ii) To the
extent claimed or proven to be solely due to Device design or manufacturing defect (including reasonable attorneys’ fees) of whatever sort based on claims of product design or manufacturing defects whether sounding in negligence, strict
liability at law, contract or statutory violation; and 
  
 (iii)
Any breach by Amedica of any provision of this Agreement. 
  
 b.
Any indemnification provided by Amedica hereunder shall not apply to any claim insofar as that claims: 
  
 (i) Relates to a professional medical liability or malpractice claim brought against Bal for professional acts or omissions in connection with the
medical care or treatment associated with a Device; 
  
 (ii)
Arises from any breach by Bal of any provision of this Agreement; or 
  
 (iii) Arises from any knowing submission by Bal of false data to Amedica or from any other intentional wrongdoing by Bal. 
  
 c. Promptly upon Bal’s receipt of information concerning the commencement of any third-party claim, demand, action, suit or proceeding (collectively,
“Action”) which is the subject of indemnification hereunder, Bal shall notify Amedica in writing of the commencement of the Action. Any failure to provide such prompt notice shall relieve Amedica of its indemnification
obligations to the extent Amedica has been materially prejudiced by such failure. Amedica may select counsel at its own expense and control the defense of such indemnity claim and Bal may participate jointly with Amedica in such defense, at
Bal’s expense, in which event the parties shall reasonably cooperate with each other subject, however, to 

  

 -10- 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act of 1933, as amended. 

 
Amedica’s ultimate control of the defense. With respect to any Action relating solely to the payment of money damages, Amedica shall have the sole right
to defend, settle, or otherwise dispose of such claim on such terms as Amedica, in its sole discretion, shall deem appropriate; provided, that Amedica shall provide reasonable evidence of its ability to pay any damages claimed. If the Action
involves any claim in which Bal would become subject to injunctive relief or to other equitable relief, or Bal’s business would be adversely affected in any manner, Amedica shall settle that claim only upon the written consent of Bal, which
shall not be unreasonably withheld. 
  

	 	15.	 	Indemnification by Bal. 

  
 Except to the extent that any such claims arise through the wrongful act or neglect of Amedica, Bal will indemnify and hold Amedica harmless from any and
all claims, costs, judgments and expenses arising from any breach by Bal of any provision of this Agreement. 
  

	 	16.	 	General. 

  
 a. Notices. All notices required or permitted to be given to a party hereunder shall be mailed by certified mail or registered mail, postage prepaid, to that party’s address set forth on the signature page of
this Agreement (or to such other address specified in writing and given to the other party in accordance with this Section 16(a)). 
  
 b. Default. If either party defaults upon any of the covenants or provisions herein, the defaulting party shall pay all costs and attorneys’ fees
incurred by the other party in enforcing its rights arising hereunder. 
  
 c. Governing Law and Venue. This Agreement shall be interpreted, performed and enforced according to the laws of the State of Utah. Venue for any action hereof shall lie with the Third Judicial District Court of the State of Utah for the
United States District Court for the District of Utah, Central Division. 
  
 d. Unenforceable Provision. If any provision of this Agreement is deemed unenforceable by any court of competent jurisdiction, the remaining provisions shall nonetheless be enforceable according to their terms.
Further, if any provision is held to be over broad as written, such provision shall be deemed amended to narrow its application to the extent necessary to make the provision enforceable according to applicable law and shall be enforced as amended.

  

 -11- 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act of 1933, as amended. 

 e. Assignment. Amedica may assign its rights and obligations hereunder to any person or entity that
succeeds to all or substantially all of Amedica’s business or that aspect of Amedica’s business in which Bal is principally involved. Bal’s rights and obligations under this Agreement may not be assigned by Bal without the prior
written consent of Amedica, except that Amedica agrees and consents that Bal may assign his rights and obligations hereunder to an entity that is and continues to be wholly owed and exclusively controlled by Bal, provided that: (i) such entity
agrees in writing to be bound by the terms and conditions of this Agreement; (ii) such entity agrees in writing that it shall provide for such entity’s services to be performed exclusively by Bal (except as otherwise agreed to by Amedica,
which consent shall not be unreasonably withheld); and (iii) Bal shall continue to be personally subject to and bound by the provisions of Sections 8 through 12, inclusive, of this Agreement regardless of any such assignment. 
  
 f. Benefit. All statements, representations, warranties, covenants and
agreements in this Agreement shall be binding on the parties hereto and shall inure to the benefit of the respective successors and permitted assigns of each party hereto. Nothing in this Agreement shall be construed to create any rights or
obligations except between the parties hereto, and no person or entity shall be regarded as a third-party beneficiary of this Agreement, other than any future parent, subsidiary or affiliate of Amedica. 
  
 g. Entire Agreement. This Agreement embodies the entire agreement and
understanding between the parties hereto with respect to the subject matter hereof and supersedes all prior oral or written agreements and understandings relating to the subject matter hereof. No statement, representation, warranty, covenant or
agreement of any kind not expressly set forth in this Agreement shall affect, or be used to interpret, change or restrict, the express terms and provisions of this Agreement. 
  
 h. Modifications and Amendments. The terms and provisions of this Agreement may be modified or amended only by written
agreement executed by the parties hereto. 
  
 i. Waivers and
Consents. The terms and provisions of this Agreement may be waived, or consent for the departure therefrom granted, only by written document executed by the party entitled to the benefits of such terms or provisions. No such waiver or consent shall
be 

  

 -12- 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act of 1933, as amended. 

 
deemed to be or shall constitute a waiver or consent with respect to any other terms or provisions of this Agreement, whether or not similar. Each such
waiver or consent shall be effective only in the specific instance and for the purpose for which it was given, and shall not constitute a continuing waiver or consent. 
  
 j. Construction. The parties have participated equally in the formation of this Agreement and the language of this Agreement
will not be presumptively construed against either party. 
  
 k.
Survival. The provisions of Sections 6, 7, 8, 9, 10, 13, 14, 15 and this Section 16 of this Agreement shall survive the expiration or early termination of this Agreement. 
  
 l. Counterparts. This Agreement may be executed in one or more counterparts, and by different parties hereto on separate
counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
  
 m. Section Numbers and Headings. The Section and Subsection headings and numbers used herein are for purposes of convenience and shall not be considered
in the interpretation of this Agreement. 
  

 -13- 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act of 1933, as amended. 

 EXECUTION COPY 
  
 IN WITNESS WHEREOF, the parties hereto have executed and delivered this Development Agreement, under seal, as of the date
first written above. 
  

			
	AMEDICA CORPORATION
		
	By:	 	 /s/ Warionex J. Belen

		 	Warionex “Jose” Belen
		 	President
		
		 	AMEDICA ADDRESS:
		
		 	Amedica Corporation
		 	615 Arapeen Drive, Suite 302
		 	Salt Lake City, UT 84108

  

	
	 /s/ B. Sonny Bal

	B. Sonny Bal, M.D.

  
 BAL ADDRESS: 
  
 B. Sonny Bal, M.D. 
 [********************] 
 [********************] 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act of 1933, as amended. 

 SCHEDULE A 
  
 Devices: 
  
 Devices consist of the following, [****************************]: 
  

	1.	 	[************]; 

  

	2.	 	[************]; and 

  

	3.	 	[************]. 

  
 [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.] 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act of 1933, as amended. 

 SCHEDULE B 
  
 Prior Rights: 
  
 The following five concepts, ideas and experiments are the subject of an engagement between Bal and [****************************], none which
compete with Amedica or are similar to the items listed in Schedule A to this Agreement. 
  

	 	1.	 	[************] 

  

	 	2.	 	[************] 

  

	 	3.	 	[************] 

  

	 	4.	 	[************] 

  

	 	5.	 	[************] 

  
 Also, Bal is engage in projects with [*********] concerning the following items: 
  

	 	A.	 	[************] 

  

	 	B.	 	[************] 

  
 [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.] 
  

 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission
pursuant to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act of 1933, as amended.

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