Document:

SUPPLEMENT

    to
the

    Loan
and Security Agreement

    dated
as of November 17, 2010

    among

    Bacterin
International Holdings, Inc., and

    Bacterin
International, Inc.

    (each
individually a “Borrower” and collectively, “Borrowers”)

    and

    Venture
Lending & Leasing V, Inc. (“VLL5”)

    and

    Venture
Lending & Leasing VI, Inc. (“VLL6”)

    (each
of VLL5 and VLL6, as “Lender”)

     

    
      

    

    

    This is a
Supplement identified in the document entitled Loan and Security Agreement dated
as of November 17, 2010 (as the same may be amended, restated, supplemented and
modified from time to time, the “Loan and Security
Agreement”), by and among Borrowers and Lender.  All
capitalized terms used in this Supplement and not otherwise defined in this
Supplement have the meanings ascribed to them in Article 10 of the Loan and
Security Agreement, which is incorporated in its entirety into this
Supplement.  In the event of any inconsistency between the provisions
of the Loan and Security Agreement and this Supplement, this Supplement is
controlling.

    

    The parties are entering into this
single Supplement to the Loan and Security Agreement for convenience, and this
Supplement is and shall be interpreted for all purposes as separate and distinct
agreements between Borrowers and VLL5, on the one hand, and Borrowers and VLL6,
on the other hand, and nothing in this Supplement shall be deemed a joint
venture, partnership or other association between VLL5 and VLL6.  Each
reference in this Supplement to “Lender” shall mean and refer to each of VLL5
and VLL6, singly and independent of one another.  Without limiting the
generality of the foregoing, the Commitment, covenants and other obligations of
“Lender” under the Loan and Security Agreement, as supplemented hereby, are
several and not joint obligations of VLL5 and VLL6, and all rights and remedies
of “Lender” under the Loan and Security Agreement, as supplemented hereby, may
be exercised by VLL5 and/or VLL6 independently of one another.

    

    In addition to the provisions of the
Loan and Security Agreement, the parties agree as follows:

    

    Part 1. - Additional
Definitions:

    

    “Additional Reserve” means, as
the context may require, the VLL5 Additional Reserve or the VLL6 Additional
Reserve.  Each Lender’s Additional Reserve is several and not joint
with the Additional Reserve of the other Lender.

    

    “A/R Facility” is defined in Section 3 of
Part 2 of this Supplement.

    

    “Bank” is defined in Section 3
of Part 2 of this Supplement.

    

    “Commitment” means, as the
context may require, the VLL5 Commitment or the VLL6 Commitment.  Each
Lender’s Commitment is several and not joint with the Commitment of the other
Lender.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    “Designated
Rate”:  The Designated Rate for each Growth Capital Loan shall
be a fixed rate of interest per annum equal to the Prime Rate as published on
the Business Day on which Lender prepares the Note for such Loan, plus 6.5%,
provided, that
in no event shall the Designated Rate for a Growth Capital Loan be less than
9.75%.

    

    “EBITDA” means, with respect
to Parent and its Subsidiaries  on a Consolidated basis for any
period, net income determined in accordance with GAAP (determined for purposes
hereof without giving effect to extraordinary, unusual or nonrecurring gains or
losses) for such period plus the sum of all amounts
deducted in arriving at such net income amount in respect of (i) interest
expense, (ii) federal, state and local income taxes, (iii) depreciation of fixed
assets and amortization of intangible assets, (iv) non-cash charges for goodwill
write offs and write downs, (v) non-cash charges for employee compensation
plans, and (vi) other non-cash items reducing net income, minus non-cash items
increasing net income for such period.

    

    “Final
Payment”:  Each Growth Capital Loan shall have a Final Payment
equal to 4.174% of the original principal amount of such Loan.

    

    “Growth Capital Loan” means
any Loan requested by Borrowers and funded by Lender under its Commitment for
general corporate purposes of Borrowers.

    

    “Interest-Only
Rate”:  The Interest-only Rate for each Growth Capital Loan
shall be a fixed rate of interest per annum equal to 12.50%.

    

    “Loan” or “Loans” mean, as the context
may require, individually a Growth Capital Loan, and collectively, the Growth
Capital Loans.

    

    “Prime Rate” means the “prime
rate” of interest, as published from time to time by The Wall Street
Journal in the “Money Rates” section of its Western Edition
newspaper.

    

    “Termination Date” means the
earlier of: (i) the date Lender may terminate making Growth Capital Loans or
extending other credit pursuant to the rights of Lender under Article 7 of the
Loan and Security Agreement; or (ii)(A) with respect to the First Tranche of
the Commitment, November 17, 2010; and (B) with respect to the Second Tranche
of the Commitment, April 30, 2011.

    

    “Threshold Amount”: One
Hundred Thousand Dollars ($100,000).

    

    “VLL5 Additional Reserve”
means VLL5’s agreement to reserve from its capital available for funding loan
commitments to third party borrowers an amount equal to $1,500,000 for, subject
to Part 2, Section 9 hereof, the purposes of committing at a future date to
make, and making Loans to Borrowers pursuant to the Loan and Security Agreement
and any other Loan Documents executed and delivered in connection
therewith.

    

    “VLL5
Commitment”:  Subject to the terms and conditions set forth in
the Loan and Security Agreement and this Supplement, VLL5 commits to make Growth
Capital Loans to Borrowers in an original principal amount not to exceed of Two
Million Five Hundred Thousand Dollars ($2,500,000).  The VLL5
Commitment shall be divided into two (2) equal tranches in the amount of One
Million Two Hundred Fifty Thousand Dollars ($1,250,000) each, which shall be
referred to herein as the “First Tranche” and the “Second Tranche” of the VLL5
Commitment, respectively.

    

    “VLL6 Additional Reserve” means
VLL6’s agreement to reserve from its capital available for funding loan
commitments to third party borrowers an amount equal to $1,500,000 for, subject
to Part 2, Section 9 hereof, the purposes of committing at a future date to
make, and making Loans to Borrowers pursuant to the Loan and Security Agreement
and any other Loan Documents executed and delivered in connection
therewith.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    “VLL6
Commitment”:  Subject to the terms and conditions set forth in
the Loan and Security Agreement and this Supplement, VLL6 commits to make Growth
Capital Loans to Borrowers in an original principal amount not to exceed of Two
Million Five Hundred Thousand Dollars ($2,500,000).  The VLL6
Commitment shall be divided into two (2) equal tranches in the amount of One
Million Two Hundred Fifty Thousand Dollars ($1,250,000) each, which shall be
referred to herein as the “First Tranche” and the “Second Tranche” of the VLL6
Commitment, respectively.

    

    Part 2. - Additional Covenants and
Conditions:

    

    1.           Commitment; Conditions Precedent with
respect to First Tranche and Second Tranche; Funding and Repayment of Growth
Capital Loans.  

    

    (a)   
       Conditions Precedent Regarding First
Tranche.  In addition to the other conditions precedent
specified in Articles 2 and 4 of the Loan and Security Agreement and this
Supplement, Lender’s obligation to fund the Growth Capital Loan under the First
Tranche of Lender’s Commitment is subject to the receipt by Lender of evidence
satisfactory to it, as determined by Lender in its reasonable judgment, that as
of the date of the Borrowing Request for such Loan: (i) either (A) Borrowers
have received a payoff letter, in form and substance satisfactory to Lender,
from the City of Belgrade indicating the total amount of Borrowers’ Indebtedness
to the City of Belgrade as of the funding date of the Loan, a portion of the
proceeds of which will be used to repay in full all of such Indebtedness, or (B)
Borrowers’ Indebtedness to the City of Belgrade has been repaid in full; and
(ii) either (A) Borrowers have received a payoff letter, in form and substance
satisfactory to Lender, from Valley Bank indicating the total amount of Bacterin
International Inc.’s Indebtedness to Valley Bank as of the funding date of the
Loan pursuant to Loan # 31057715 (the “Valley
Bank Loan”), a portion of the proceeds of which will be used to repay in
full all of such Indebtedness, or (B) Borrowers’ Indebtedness to Valley Bank
pursuant to the Valley Bank Loan has been repaid in full and Valley Bank’s Liens
on Bacterin International Inc.’s personal property have been terminated and
released; and (iii) either (A) Borrowers have received a payoff letter, in form
and substance satisfactory to Lender, from the Hamilton Group (Delaware), Inc.
(“Hamilton Group”)
indicating the total amount of Borrowers’ Indebtedness to Hamilton Group as of
the funding date of the Loan, a portion of the proceeds of which will be used to
repay in full all of such Indebtedness, or (B) Borrowers’ Indebtedness to the
Hamilton Group has been repaid in full; and (iv) either (A) Borrowers have
received evidence, in form and substance satisfactory to Lender  from
each shareholder to which Borrowers are indebted as of the Closing Date,
indicating the total amount of Borrowers’ Indebtedness to such shareholders as
of the funding date of the Loan, a portion of the proceeds of which will be used
to repay in full all of such Indebtedness, or (B) Borrowers’ Indebtedness to
each such shareholder has been repaid in full.  Borrowers represent
that the shareholders do not have Liens on either Borrower’s personal
property.

    

    (b)           Additional
Condition Precedent Regarding Second Tranche.  In addition to
the satisfaction of all the other conditions precedent specified in the Loan and
Security Agreement and this Supplement, Lender’s obligation to fund the Growth
Capital Loan under the Second Tranche of Lender’s Commitment is subject to
receipt by Lender of evidence satisfactory to it, as determined by Lender in its
reasonable judgment, that Parent and its Subsidiaries on a Consolidated basis
have achieved at least ninety percent (90%) of their revenue, EBITDA and cash
plan for the period commencing on September 1, 2010 and ending on March 30,
2011, as such figures are set forth in the plan dated September 23,
2010.

    

    (c)           Funding of Growth Capital
Loans. Subject to the terms and
conditions of the Loan and Security Agreement and this Supplement (including
Section 1(a) above with respect to the First Tranche and Section 1(b) above with
respect to the Second Tranche), Lender agrees to make Growth Capital Loans to
Borrowers from time to time from the Closing Date up to and including the
applicable Termination Date in an aggregate original principal amount up to but
not exceeding the then unfunded portion of its Commitment.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    (d)           Repayment of Growth Capital
Loans.  Principal of and interest on each Growth Capital Loan
shall be payable as set forth in a Note evidencing such Loan (substantially in
the form attached hereto as Exhibit “A”), which
Note shall provide substantially as follows:  principal and interest
at the Designated Rate shall be fully amortized over a period of thirty (30)
months in equal, monthly installments (the “Amortization Period”),
commencing after an initial 6-month period of interest-only, monthly payments at
the Interest-Only Rate.  In particular, on the Borrowing Date
applicable to such Growth Capital Loan, Borrowers shall pay to Lender (i) if the Borrowing Date is not the
first day of the month, interim interest only at a rate per month equal
to 1.083%, in advance, on the outstanding principal balance of the Growth
Capital Loan for the period from the Borrowing Date through the last day of the
calendar month in which such Borrowing Date occurs, and (ii) the first
interest-only installment payment at the Interest-Only Rate, in advance, on the
outstanding principal balance of the Note evidencing such Loan for the ensuing
month.  On the first day of the second full month after the Borrowing
Date and continuing on the first day of each of the third, fourth, fifth and
sixth months thereafter, Borrowers shall pay interest at the Interest-Only Rate,
in advance, on the outstanding principal balance of the Loan evidenced by such
Note for the ensuing month.  Commencing on the first day of the
seventh full month after the Borrowing Date, and continuing on the first day of
each consecutive calendar month thereafter, principal and interest at the
Designated Rate shall be payable, in advance, in thirty (30) equal consecutive
monthly installments in an amount sufficient to fully amortize the Growth
Capital Loan evidenced by such Note.  The Final Payment on such Growth
Capital Loan shall be due and payable on the same date that the thirtieth
(30th)
payment is due.

    

    2.           Voluntary
Prepayments.

    

    (a)           Prepayment
Generally.  Except as set forth in Section 2(b), no Growth
Capital Loan may be voluntarily prepaid except as provided in this Section
2(a).  Borrowers may voluntarily prepay all, but not less than all,
Growth Capital Loans in whole, but not in part, at any time by tendering to
Lender cash payment in respect of such Loans in an amount equal to the sum
of:  (i) the accrued and unpaid interest on such Loans as of the date
of prepayment; and (ii) an amount equal to the total amount of all scheduled but
unpaid payments (including Final Payments) that would have accrued and been
payable from the date of prepayment through the stated date of maturity of the
Loans had they remained outstanding and been paid in accordance with the terms
of the related Notes.

    

    (b)           Prepayment after Eighteen
Amortization Payments.  Notwithstanding anything to the
contrary in Section 2(a), commencing at any time after Borrowers have made a
minimum of eighteen (18) regularly scheduled amortization payments of principal
and interest at the Designated Rate on each Loan during the Amortization Period
for such Loan, and so long as no Event of Default has occurred and is
continuing, Borrowers may voluntarily prepay all, but not less than all, Loans
in whole, but not in part, by tendering to Lender cash payment in respect of
such Loans in an amount (as determined by Lender) equal to the sum
of:  (i) all accrued and unpaid interest on such Loans as of the date
of prepayment; (ii) all outstanding principal balances of such Loans as of the
date of prepayment; and (iii) an amount equal to the product of (A) 0.80 and (B)
the undiscounted, aggregate amount of the interest that would have accrued and
been payable after the date of prepayment through the latest repayment date set
forth in the Notes evidencing the Loans had they remained outstanding and been
paid in accordance with the terms of the related Notes.  For the
avoidance of doubt, payments of interest-only at the Interest-Only Rate on a
Loan during the applicable interest-only period for such Loan shall not count
towards the minimum of the eighteen (18) amortization payments required by the
first sentence of this Section 2(b).

    

    3.           Subordination of Lien Priority for
Accounts Receivables-Based Bank Financing.  Subject to the
conditions precedent in the following proviso, upon written notice
of Borrowers to Lender, Lender agrees that (A) it will subordinate the priority
of the Liens granted to Lender pursuant to the Security Documents as to that
portion of the Collateral consisting of Borrowers’ accounts receivable and
related assets (as may be agreed to by Lender)  and cash which
constitutes the proceeds thereof, and (B) it will permit a lien on that portion
of the Collateral that is not described in clause (A) that is subordinate to the
Liens granted to Lender, which Liens shall be granted concurrently with the
closing of a loan agreement between Borrowers and a bank or commercial finance
lender (“Bank”) which
provides loans to Borrowers in an aggregate outstanding principal amount not to
exceed $3,000,000 (the “Cap”) based upon a formula of
eligible accounts receivable (the “A/R Facility”), provided that as a condition
precedent thereto: (i) no Default or Event of Default shall have occurred and be
continuing; and (ii) Lender, Bank and Borrowers shall have entered into an
intercreditor agreement in form and substance reasonably acceptable to Lender,
setting forth the rights and obligations of the parties with respect to their
respective Liens on Collateral.  Upon: (a) Parent and its
Subsidiaries on a Consolidated basis achieving cumulative EBITDA during a period
of two consecutive quarters of at least $4,000,000 in the aggregate; and (b)
Borrowers’ management having certified to Lender that it reasonably expects that
EBITDA will be positive in future quarters, the Cap shall be eliminated and of
no further force and effect.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    4.           Issuance of
Warrants.

    

    (a)           VLL5 Warrant.  As
additional consideration for the making of its Commitment, VLL5 has earned and
is entitled to receive immediately upon the execution of the Loan and Security
Agreement and this Supplement a warrant instrument issued by Parent (the “VLL5 Warrant”), exercisable
for a number of fully paid and nonassessable shares of Parent’s common stock of
the series set forth therein, at an exercise price per share set forth
therein.

    

    (b)           VLL6 Warrant.  As
additional consideration for the making of its Commitment, VLL6 has earned and
is entitled to receive immediately upon the execution of the Loan and Security
Agreement and this Supplement a warrant instrument issued by Parent (the “VLL6 Warrant” and together
with the VLL5 Warrant, the “Warrants”), exercisable for a
number of fully paid and nonassessable shares of Parent’s common stock of the
series set forth therein, at an exercise price per share set forth
therein.

    

    (c)           General.  The
Warrants shall be substantially in the form of Exhibit “D” attached
hereto.  Borrowers acknowledge that VLL5 has assigned its rights to
receive the VLL5 Warrant to its parent, Venture Lending & Leasing V, LLC,
and that VLL6 has assigned its rights to receive the VLL6 Warrant to its parent,
Venture Lending & Leasing VI, LLC.  In connection therewith,
Parent shall issue the Warrants directly to Venture Lending & Leasing V,
LLC, and Venture Lending & Leasing VI, LLC, as applicable.  Upon
request of Borrowers, Lender shall furnish to Borrowers a copy of the agreement
in which each Lender assigned its rights to receive its Warrants to its
parent.

    

    5.           Completion of Due Diligence; Payment
and Disposition of Commitment Fee.  As an additional condition
precedent under Section 4.1 of the Loan and Security Agreement, Lender shall
have completed to its satisfaction its due diligence review of Borrowers’
business and financial condition and prospects, and Lender’s investment
committee shall have approved its Commitment.  If this condition is
not satisfied, the $50,000 commitment fee (the “Commitment Fee”) previously
paid by Borrowers shall be refunded.  VLL5 agrees that with respect to
each Growth Capital Loan advanced under its Commitment, on the Borrowing Date
applicable to such Loan, VLL5 shall credit against the payments due from
Borrowers on such date in respect of such Loan an amount equal to the product of
$25,000 and a fraction the numerator of which is the principal amount of such
Loan and the denominator of which is $2,500,000, provided that the aggregate
amount of such credits made by VLL5 shall not exceed $25,000.  VLL6
agrees that with respect to each Growth Capital Loan advanced under its
Commitment, on the Borrowing Date applicable to such Loan, VLL6 shall credit
against the payments due from Borrowers on such date in respect of such Loan an
amount equal to the product of $25,000 and a fraction the numerator of which is
the principal amount of such Loan and the denominator of which is $2,500,000,
provided that the aggregate amount of such credits made by VLL6 shall not exceed
$25,000.  Except as set forth in this Section 5, the Commitment Fee is
not refundable.

    

    6.           Documentation Fee
Payment.  Pursuant to Section 9.8(a) of the Loan and Security
Agreement, Borrowers shall pay Lender, on demand, Lender’s reasonable documented
costs incurred in documenting this transaction and perfecting Lender’s Liens on
the Collateral, which amount shall constitute payment for the total amount of
Lender’s actual legal fees, costs and expenses incurred in connection with the
preparation and negotiation of the Loan Documents, not to exceed Fifty Thousand
Dollars ($50,000) in aggregate amount, provided that there are no more than two
rounds of comments to Lender’s standard documents.

    

    7.           Primary Operating Account and Wire
Transfer Instructions.  Borrowers’ primary operating account
and wire transfer instructions are set forth in Part 2.7 of the Disclosure
Letter.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    8.           Debits to Account for ACH
Transfers.  For purposes of Sections 2.2 and 5.10 of the Loan
and Security Agreement, the Primary Operating
Account shall be
the bank account set forth in Part 2.7 of the Disclosure
Letter.  Borrowers hereby agree that Loans will be advanced to the
account specified above and regularly scheduled payments of principal, interest
and Final Payments will be automatically debited from the same
account.

    

    9.           Additional Conditions Precedent
Regarding Additional Reserve.  Notwithstanding anything to the
contrary contained herein or in the other Loan Documents, Lender’s obligation to
convert its Additional Reserve into a binding commitment to make Loans to
Borrowers pursuant to the terms of the Loan and Security Agreement, this
Supplement and any other Loan Documents is subject to Borrowers and Lender
having mutually agreed, in writing, to make the Additional Reserve into a
binding commitment.  The parties currently contemplate that the
“Termination Date” for such future binding commitment, if any, will be December
31, 2011, the amount of any such binding future commitment shall not exceed the
lesser of $1,500,000 (per Lender) and 25% of the proceeds Parent receives from
the sale of shares of Parent’s equity securities in the next equity financing
closed after the date hereof, and that the other terms of any such commitment
shall be mutually determined at a later date by Lender and
Borrowers.  Lender shall not receive any commitment fee and additional
warrant coverage in connection with the Additional Reserve until such time, if
any, that it is converted into a binding commitment.

    

    10.         Acknowledgment Regarding City of
Belgrade Liens. Each Borrower acknowledges that, as of the Closing Date,
the City of Belgrade has filed three liens in the State of Montana against
Bacterin, Inc.’s assets (Filing No. 97518343, 71907317, and 79967159, as
amended) (the “City of Belgrade
Liens”).  As of the Closing Date, Borrowers are unable to
terminate or cause the City of Belgrade Liens to be
terminated.   In order to facilitate the closing of the
transactions contemplated by the Loan and Security Agreement and subject to the
last sentence of this Section 10, Lender hereby grants a waiver of the
requirements of Section 6.2 of the Loan and Security Agreement with respect
to the City of Belgrade Liens for 30 days following the Closing
Date.  The foregoing waiver applies only to the specific instance
described, and is not a waiver of any subsequent application of the same
provisions of the Loan and Security Agreement, nor is it a waiver of any other
provision of the Loan and Security Agreement.  Borrowers
covenant and agree that no later than 30 days following the Closing Date, they
shall terminate or cause such City of Belgrade Liens to be
terminated.  Borrowers agree that any failure to terminate or cause
the City of Belgrade Liens to be terminated in accordance with the terms of this
Section 10 shall constitute an Event of Default under Section 7.1 of the Loan
and Security Agreement notwithstanding anything to the contrary in the Loan and
Security Agreement.

    

    11.         Acknowledgment Regarding Hamilton
Group Liens.  Each Borrower acknowledges that, as of the
Closing Date, the Hamilton Group maintains two liens against the assets of
Bacterin International, Inc. in the State of Nevada (File No. 2008021742-5 filed
July 10, 2009, as amended by File No. 2010001111-9 filed January 12, 2010) and
the State of Montana (File No. 97133033 filed July 11, 2008, as amended by File
No. 577346759 filed January 26, 2010), and a lien against Bacterin, Inc.’s
assets in the State of Montana (File No. 97133033 filed July 11, 2008, as
amended by File No. 577346759 filed January 26, 2010) (collectively, the “Hamilton Group
Liens”).  As of the Closing Date, Borrowers are unable to
terminate or cause the Hamilton Group Liens to be terminated.  In
order to facilitate the closing of the transactions contemplated by the Loan and
Security Agreement and subject to the last sentence of this Section 11, Lender
hereby grants a waiver of the requirements of Section 6.2 of the Loan and
Security Agreement with respect to the Hamilton Group Liens for 15 days
following the Closing Date.   The foregoing waiver applies only
to the specific instance described, and is not a waiver of any subsequent
application of the same provisions of the Loan and Security Agreement, nor is it
a waiver of any other provision of the Loan and Security Agreement.  Borrowers
covenant and agree that no later than 15 days following the Closing Date, they
shall terminate or cause such Hamilton Group Liens to be
terminated.  Borrowers agree that any failure to terminate or cause
the Hamilton Group Liens to be terminated in accordance with the terms of this
Section 11 shall constitute an Event of Default under Section 7.1 of the Loan
and Security Agreement notwithstanding anything to the contrary in the Loan and
Security Agreement.

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

    12.         Acknowledgment Regarding Valley Bank
Account.  As of the Closing Date, Borrowers are unable to
deliver to Lender account control agreement(s) (“Control Agreements”) with
respect to the deposit and securities accounts they maintain at Valley Bank (the
“Valley Bank Accounts”)
contemplated by Sections 4.1(f), 4.2(e) and 6.11 of the Loan and Security
Agreement.  In order to facilitate the closing of the transactions
contemplated by the Loan and Security Agreement and subject to the last sentence
of this Section 12, Lender hereby grants a waiver of the requirements of
Section 4.1(f), 4.2(e) and Section 6.11 of the Loan and Security Agreement
with respect to the Valley Bank Accounts.  The foregoing waiver
applies only to the specific instance described, and is not a waiver of any
subsequent application of the same provisions of the Loan and Security
Agreement, nor is it a waiver of any other provision of the Loan and Security
Agreement.  In consideration of the foregoing waiver, Borrowers agree
that no later than the date which is 30 days following the Closing Date,
Borrowers shall either: (a) close such Valley Bank Account and transfer all
funds on deposit at such Valley Bank Account to the Bridge Bank Account
specified in Part 2.7 of the Disclosure Letter; or (b) deliver or cause to be
delivered to Lender the Control Agreements for the Valley Bank
Accounts.  Borrowers agree that any failure to deliver the Control
Agreements in accordance with the terms of this Section 12 shall constitute an
Event of Default under Section 7.1 of the Loan and Security Agreement
notwithstanding anything to the contrary in the Loan and Security
Agreement.

    

    Part 3. - Additional
Representations:

    

    Each Borrower, jointly and severally,
represents and warrants that as of the Closing Date and each Borrowing Date the
statements set forth in Part 3 of the Disclosure Letter are true and correct as
of the date hereof.

    

    Part 4. - Additional Loan
Documents:

    

    
      
        
          
            	
                    Form
      of Note

                  	 
      	
                    Exhibit
      “A”

                  
	
                    Form
      of Borrowing Request

                  	 
      	
                    Exhibit
      “B”

                  
	
                    Form
      of Compliance Certificate

                  	 
      	
                    Exhibit
      “C”

                  
	
                    Form
      of Warrants

                  	 
      	
                    Exhibit
      “D”

                  
	
                    Form
      of Landlord Waiver

                  	 
      	
                    Exhibit
      “E”

                  
	
                    Form
      of Legal Opinion

                  	 
      	
                    Exhibit
      “F”

                  
	
                    Form
      of Intellectual Property Security Agreement

                  	
                      

                  	
                    Exhibit
      “G”

                  

          

        

      

    

    

    Remainder
of this page intentionally left blank; signature page follows

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    [Signature page to
Supplement]

    

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

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                	 
      	
                                        BORROWERS:

                                      
	 
      	 
      	 
      	 
	 
      	
                                        BACTERIN
      INTERNATIONAL HOLDINGS, INC.

                                      
	 
      	 
      	 
      	 
	 
      	
                                        By:

                                      	/s/
      John Gandolfo  	 
	 
      	
                                        Name:

                                      	John
      Gandolfo  	 
	 
      	
                                        Title:

                                      	
                                        CFO  
      

                                      	 

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    
      
        	
                Address
      for Notices:

              	
                600
      Cruiser Lane

              

      

    

    
      
        	
                 
      

              	
                Belgrade,
      MT 59714

              

      

    

    
      
        	
                 
      

              	
                Attn:  J.
      Gandolfo          

              

      

    

    
      
        	
                 
      

              	
                Fax
      #  406-388-1354       

              

      

    

    
      
        	
                 
      

              	
                Phone
      # 406-388-0408      

              

      

    

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          	 
      	
                                  BACTERIN
      INTERNATIONAL, INC.

                                
	 
      	 
      	 
      	 
	 
      	
                                  By:

                                	/s/
      John Gandolfo  	 
	 
      	
                                  Name:

                                	John
      Gandolfo  	 
	 
      	
                                  Title:

                                	
                                  CFO 
      

                                	 

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    
      
        	
                Address
      for Notices:

              	
                600
      Cruiser Lane

              

      

    

    
      
        	
                 
      

              	
                Belgrade,
      MT 59714

              

      

    

    
      
        	
                 
      

              	
                Attn:  J.
      Gandolfo           

              

      

    

    
      
        	
                 
      

              	
                Fax
      #  406-388-1354         

              

      

    

    
      
        	
                 
      

              	
                Phone
      # 406-388-0408     

              

      

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    [Signature page to
Supplement]

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              	 
      	
                                      LENDER:

                                    
	 
      	 
      	 
      	 
	 
      	
                                      VENTURE
      LENDING & LEASING V, INC.

                                    
	 
      	 
      	 
      	 
	 
      	
                                      By:

                                    	/s/
      Maurice Werdegar  	 
	 
      	
                                      Name:

                                    	Maurice
      Werdegar  	 
	 
      	
                                      Title:

                                    	
                                      President
      and CEO  

                                    	 

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    
      
        	
                Address
      for Notices:

              	
                2010
      North First Street, Suite 310

              
	 
      	
                San
      Jose, California 95131

              
	 
      	
                Attn:  Chief
      Financial Officer

              
	 
      	
                Fax
      # 408-436-8625

              
	 
      	
                Phone
      # 408-436-8577

              

      

    

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          	 
      	
                                  VENTURE
      LENDING & LEASING VI, INC.

                                
	 
      	 
      	 
      	 
	 
      	
                                  By:

                                	/s/
      Maurice Werdegar  	 
	 
      	
                                  Name:

                                	Maurice
      Werdegar  	 
	 
      	
                                  Title:

                                	
                                  President
      and CEO  

                                	 

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    
      
        	
                Address
      for Notices:

              	
                2010
      North First Street, Suite 310

              
	 
      	
                San
      Jose, California 95131

              
	 
      	
                Attn:  Chief
      Financial Officer

              
	 
      	
                Fax
      # 408-436-8625

              
	 
      	
                Phone
      # 408-436-8577

              

      

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    EXHIBIT
“A”

    

    FORM
OF PROMISSORY NOTE

    

    
      
        	 
      	
                [Note No. X-XXX]

              
	 
      	 
      
	
                $____________________

              	
                ____________________,
      201_

              
	 
      	
                San
      Jose, California

              

      

    

    

    The undersigned (“Borrowers”), jointly
and severally, promise to pay to the order of VENTURE LENDING & LEASING
[V/VI], INC., a Maryland
corporation (“Lender”), at its office at 2010 North First Street, Suite 310, San
Jose, California 95131, or at such other place as Lender may designate in
writing, in lawful money of the United States of America, the principal sum of
______________________________ Dollars ($__________), with interest thereon from
the date hereof until maturity, whether scheduled or accelerated, at a fixed
rate per annum equal to [the
Prime Rate as published on the Business Day on which Lender prepares this Note
plus 6.50%, but in no event less than 9.75%]  (the “Designated Rate”),
except as otherwise provided herein, according to the payment schedule described
herein, and a Final Payment in the sum of [4.174%
of face amount of this Note] Dollars ($__________) payable on the date
set forth below.

    

    This Note is one of the Notes referred
to in, and is entitled to all the benefits of, a Loan and Security Agreement
dated as of November 17, 2010, between Borrowers and Lender (as the same has
been and may be amended, restated and supplemented from time to time, the “Loan
Agreement”).  Each capitalized term not otherwise defined herein shall
have the meaning set forth in the Loan Agreement.  The Loan Agreement
contains provisions for the acceleration of the maturity of this Note upon the
happening of certain stated events.

    

    Principal of and interest on this Note
shall be payable as follows:

    

    On the
Borrowing Date, Borrowers shall pay [(i) if the Borrowing
Date is not the first day of the month:  interest only at a
fixed rate per month equal to 1.083%, in advance, on the outstanding principal
balance of this Note for the period from the Borrowing Date through    [the last
day of the same month]___; and (ii)] interest only at a rate per
annum equal to 12.50% (the “Interest-Only Rate”),
in advance, on the outstanding principal balance of this Note in the amount of
$_____________ for the month of [date of
first regular interest only installment].

    

    Commencing on [the first day of the second full
month after the Borrowing Date], and continuing on the first day of each
of the third, fourth, fifth and sixth full months thereafter, Borrowers shall
make payments, in advance, of interest only at the Interest-Only Rate on the
outstanding principal balance of this Note in the amount of $_____________
each.

    

    Commencing on the first day of the
seventh full month after the Borrowing Date, and continuing on the first day of
each consecutive month thereafter, principal and interest at the Designated Rate
shall be payable, in advance, in thirty (30) equal consecutive installments of
_________________________________ Dollars ($__________) each.  The
Final Payment and any unpaid expenses, fees, interest and principal amount shall
be due and payable on          [same date
as 30th payment
is due]

    

    This Note may be voluntarily prepaid
only as permitted under Section 2 of Part 2 of the Supplement to the Loan
Agreement.

    

    Any unpaid payments of principal or
interest on this Note shall bear interest from their respective maturities,
whether scheduled or accelerated, at a rate per annum equal to the Default
Rate.  Borrowers shall pay such interest on demand.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    Interest, charges and fees shall be
calculated for actual days elapsed on the basis of a 360-day year, which results
in higher interest, charge or fee payments than if a 365-day year were
used.  In no event shall Borrowers be obligated to pay interest,
charges or fees at a rate in excess of the highest rate permitted by applicable
law from time to time in effect.

    

    If Borrowers are late in making any
payment under this Note by more than five (5) days, Borrowers agree to pay a
“late charge” of five percent (5%) of the installment due, but not less than
fifty dollars ($50.00) for any one such delinquent payment.  This late
charge may be charged by Lender for the purpose of defraying the expenses
incidental to the handling of such delinquent amounts.  Borrowers
acknowledge that such late charge represents a reasonable sum considering all of
the circumstances existing on the date of this Note and represents a fair and
reasonable estimate of the costs that will be sustained by Lender due to the
failure of Borrowers to make timely payments.  Borrowers further agree
that proof of actual damages would be costly and inconvenient.  Such
late charge shall be paid without prejudice to the right of Lender to collect
any other amounts provided to be paid or to declare a default under this Note or
any of the other Loan Documents or from exercising any other rights and remedies
of Lender.

    

    This Note shall be governed by, and
construed in accordance with, the laws of the State of California, excluding
those laws that direct the application of the laws of another
jurisdiction.

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          	 
      	
                                                  BACTERIN
      INTERNATIONAL HOLDINGS, INC.

                                                
	 
      	 
      	 
      	 
	 
      	
                                                  By:

                                                	 
      	 
	 
      	
                                                  Name:

                                                	 
      	 
	 
      	
                                                  Its:

                                                	 
      	 
	 
      	 
      	 
      	 
	 
      	
                                                  BACTERIN
      INTERNATIONAL, INC.

                                                
	 
      	 
      	 
      	 
	 
      	
                                                  By:

                                                	 
      	 
	 
      	
                                                  Name:

                                                	 
      	 
	 
      	
                                                  Its:

                                                	
                                                            
      

                                                	 

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
“B”

    

    FORM
OF BORROWING REQUEST

    

    [Date]

    

    Venture
Lending & Leasing [V/VI], Inc.

    2010
North First Street, Suite 310

    San Jose,
CA 95131

    

    
      	  	
              Re:

            	
              Bacterin
      International Holdings,
Inc.

            

    

    

    Ladies
and Gentlemen:

    

    Reference is made to the Loan and
Security Agreement dated as of November 17, 2010 (as the same has been and may
be amended, restated and supplemented from time to time, the “Loan Agreement”,
the capitalized terms used herein as defined therein), between Venture Lending
& Leasing [V/VI],
Inc. (“VLL”) and Bacterin International Holdings, Inc., and Bacterin
International, Inc. (the “Borrowers”).

    

    The undersigned is an authorized
officer of each of the Borrowers, and hereby requests on behalf of the Borrowers
a Loan under the Loan Agreement, and in that connection certifies as
follows:

    

    1.           The
amount of the proposed Loan is ___________________________ and __/100 Dollars
($______________).  The Borrowing Date of the proposed Loan is
___________ __, 201___.

    

    2.           As
of this date, no Default or Event of Default has occurred and is continuing, or
will result from the making of the proposed Loan, the representations and
warranties of the Borrowers contained in Article 3 of the Loan Agreement
and Part 3 of the Supplement are true and correct in all material respects, and
the applicable conditions precedent described in Article 4 of the Loan Agreement
and Part 2 of the Supplement have been met.

    

    3.           No
event that has had or could reasonably be expected to have a Material Adverse
Change has occurred.

    

    4.           Parent’s
most recent financial projections or business plan dated ____________, as
approved by such Parent’s Board of Directors on _______________, is enclosed
herewith in the event such financial projections or business plan have not been
previously provided to VLL.

    

    The Borrowers shall notify you promptly
before the funding of the Loan if any of the matters to which I have certified
above shall not be true and correct on the Borrowing Date.

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              	 
      	
                                      Very
      truly yours,

                                    
	 
      	 
      	 
      	 
	 
      	
                                      BACTERIN
      INTERNATIONAL HOLDINGS, INC.

                                    
	 
      	 
      	 
      	 
	 
      	
                                      By:

                                    	 
      	 
	 
      	
                                      Name:

                                    	 
      	 
	 
      	
                                      Title:*

                                    	 
      	 

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

      

    
      * Must be
executed by Parent’s Chief Financial Officer or other executive
officer.

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          	 
      	
                                  BACTERIN
      INTERNATIONAL, INC.

                                
	 
      	 
      	 
      	 
	 
      	
                                  By:

                                	 
      	 
	 
      	
                                  Name:

                                	 
      	 
	 
      	
                                  Title:*

                                	 
      	 

                        

                      

                    

                  

                

              

            

          

        

      

    

    

      

    
      * Must be
executed by Borrower’s Chief Financial Officer or other executive
officer.

       

      
        
          
             

          

          
            
            

            
              

            

          

          
             

          

        

      

      

    

    EXHIBIT “C”

    

    FORM
OF

    COMPLIANCE
CERTIFICATE

    

    Venture
Lending & Leasing V, Inc.

    Venture
Lending & Leasing VI, Inc.

    2010
North First Street, Suite 310

    San Jose,
CA 95131

    

    
      	
              Re:

            	
              Bacterin
      International Holdings, Inc.

            

    

    

    Ladies
and Gentlemen:

    

    Reference
is made to the Loan and Security Agreement dated as of November 17, 2010 (as the
same has been and may be amended, restated, modified and supplemented from time
to time, the “Loan Agreement”, the capitalized terms used herein as defined
therein), between Bacterin International Holdings, Inc. (the “Borrowers”) and
each of Venture Lending & Leasing V, Inc. and Venture Lending & Leasing
VI, Inc. (each, “Lender”).

    

    The undersigned authorized
representative of the Borrowers hereby certify that in accordance with the terms
and conditions of the Loan Agreement, (i) no Default or Event of Default has
occurred and is continuing, except as noted below, and (ii) the Borrowers are in
complete compliance for the financial reporting period ending ___________ with
all required financial reporting under the Loan Agreement, except as noted
below.  Attached herewith are the required documents supporting the
foregoing certification.  The undersigned further certifies that the
accompanying financial statements have been prepared in accordance with the
Borrowers’ past practices applied on a consistent basis throughout the periods
indicated.  The financial statements fairly present in all material
respects in accordance with GAAP the financial condition and operating results
of the Parent and its subsidiaries as of the dates, and for the periods,
indicated therein, excluding footnotes and subject to normal year-end audit
adjustments (in the case of interim monthly financial statements), except as
explained below.

    

    Please
provide the following requested information and

    indicate
compliance status by circling Yes/No under “Complies”:

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            	
                                                    REPORTING REQUIREMENT

                                                  	 	
                                                    REQUIRED

                                                  	 	
                                                    COMPLIES

                                                  
	 
      	 	 
      	 	 
      
	
                                                    Monthly
      Financial Statements

                                                  	 	
                                                    Monthly
      within 45 days

                                                  	 	
                                                    YES
      / NO

                                                  
	 
      	 	 
      	 	 
      
	
                                                    Operating
      Budgets/

                                                  	 	 
      	 	 
      
	
                                                    Updated
      Capitalization Tables

                                                  	 	
                                                    As
      modified

                                                  	 	
                                                    YES
      / NO

                                                  
	 
      	 	 
      	 	 
      
	
                                                    Audited,
      Annual Financial Statements

                                                  	 	
                                                    Annually
      within 90 days

                                                  	 	
                                                    YES
      / NO

                                                  
	 
      	 	 
      	 	 
      
	
                                                    Date
      of most recent Board-approved
      budget/plan:  ____________________

                                                  	 	 
      
	
                                                    Any
      change in budget/plan since version most recently delivered to
      Lender?  YES/NO

                                                  	 	 
      
	
                                                    If
      YES, please attach

                                                  	 	 
      
	 
      	 	 
      	 	 
      
	
                                                    Date
      of most recent capitalization
      table:  ____________________

                                                  	 	 
      
	
                                                    Any
      changes in capitalization table since version most recently delivered to
      Lender?  YES/NO

                                                  	 	 
      
	
                                                    If
      YES, please attach a copy of latest capitalization table

                                                  	 	 
      
	 
      	 	 
      	 	 
      
	
                                                    Any
      Patents, Trademarks and Copyrights applied

                                                  	 	
                                                    Quarterly
      within 30 days

                                                  	 	
                                                    YES
      / NO

                                                  
	
                                                    and/or
      filed with the U.S. Patent &

                                                  	 	 
      

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Trademark
Office or U.S. Copyright Office

    during
the quarter ending ______________?  YES/NO

    If YES, please list by
application/registration number and title

    

    Date of
Last Round Raised by Parent:   _____________

    Has there
been any new financing since the last Compliance Certificate
submitted?  YES/NO

    Please complete information below each
time this Compliance Certificate is furnished to Lender

    

    Date
Closed: ______________   Per Share
Price:  $_________________

    Amount
Raised: _______________

    

    Any stock
splits since date of last report?  YES/NO

    If YES, please provide any
information on stock splits which would affect valuation:

     

    
      
        

      

    

    

    Any
dividends since date of last report?  YES/NO

    If
YES, please provide any information on dividends which would affect
valuation:

     

    
      
        

      

    

    

    Any
unusual terms?  (ie. Anti-dilution, multiple preference,
etc.)  YES/NO

    If
YES, please explain:

     

    
      
        

      

    

    

    AGREEMENTS WITH PERSONS IN
POSSESSION OF TANGIBLE COLLATERAL

    

    Pursuant
to Section 5.9(e) of the Loan Agreement, the Borrowers represent and warrant
that: (i) as of the date hereof, tangible Collateral is located at the addresses
set forth below; and (ii) a Waiver has been executed and delivered to Lender
with respect to each such location at which the value of the Collateral located
there is greater than $25,000 [Note: If the
Borrowers have located Collateral at any new location since the date of the last
Compliance Certificate, please so indicate].

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  	 
      	 	
                                                          Location of Collateral

                                                        	 	
                                                          Value of Collateral at such 

                                                          Locations

                                                        	 	
                                                          Waiver 

                                                          In place?  

                                                        	 	
                                                          Complies?

                                                        	 	
                                                          New 

                                                          Location?

                                                        
	 
      	 	 
      	 	 	 	 
      	 	 
      	 	 
      
	
                                                          1.)

                                                        	 	 
      	 	$	   	 	
                                                          YES
      / NO

                                                        	 	
                                                          YES
      / NO

                                                        	 	
                                                          YES
      / NO

                                                        
	 
      	 	 
      	 	 	 	 	 
      	 	 
      	 	 
      
	
                                                          2.)

                                                        	 	 
      	 	$	   	 	
                                                          YES
      / NO

                                                        	 	
                                                          YES
      / NO

                                                        	 	
                                                          YES
      / NO

                                                        
	 
      	 	 
      	 	 	 	 	 
      	 	 
      	 	 
      
	
                                                          3.)

                                                        	 	 
      	 	$	   	 	
                                                          YES
      / NO

                                                        	 	
                                                          YES
      / NO

                                                        	 	
                                                          YES
      / NO

                                                        
	 
      	 	 
      	 	 	 	 	 
      	 	 
      	 	 
      
	
                                                          4.)

                                                        	 	 
      	 	$	   	 	
                                                          YES
      / NO

                                                        	 	
                                                          YES
      / NO

                                                        	 	
                                                          YES
      /
NO

                                                        

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    ACCOUNT CONTROL
AGREEMENTS

    

    Pursuant
to Section 6.11 of the Loan Agreement, the Borrowers represent and warrant that:
(i) as of the date hereof, it maintains only those deposit and investment
accounts set forth below; and (ii) a control agreement has been executed and
delivered to Lender with respect to each such account [Note: If the
Borrowers have established any new account(s) since the date of the last
compliance certificate, please so indicate].

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    Deposit
Accounts                                

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            	 
      	 
      	
                                    Name of Institution

                                  	 
      	
                                    Account Number

                                  	 
      	
                                    Control Agt. 

                                    In place?  

                                  	 
      	
                                    Complies

                                  	 
      	
                                    New 

                                    Account

                                  
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                    1.)

                                  	 
      	 
      	 
      	 
      	 
      	
                                    YES
      / NO

                                  	 
      	
                                    YES
      / NO

                                  	 
      	
                                    YES
      / NO

                                  
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                    2.)

                                  	 
      	 
      	 
      	 
      	 
      	
                                    YES
      / NO

                                  	 
      	
                                    YES
      / NO

                                  	 
      	
                                    YES
      / NO

                                  
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                    3.)

                                  	 
      	 
      	 
      	 
      	 
      	
                                    YES
      / NO

                                  	 
      	
                                    YES
      / NO

                                  	 
      	
                                    YES
      / NO

                                  
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                    4.)

                                  	
                                      

                                  	 
      	
                                      

                                  	 
      	
                                      

                                  	
                                    YES
      / NO

                                  	
                                      

                                  	
                                    YES
      / NO

                                  	
                                      

                                  	
                                    YES
      /
NO

                                  

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    

    Investment
Accounts

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            	 
      	 
      	
                                    Name of Institution

                                  	 
      	
                                    Account Number

                                  	 
      	
                                    Control Agt. 

                                    In place?  

                                  	 
      	
                                    Complies

                                  	 
      	
                                    New 

                                    Account

                                  
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                    1.)

                                  	 
      	 
      	 
      	 
      	 
      	
                                    YES
      / NO

                                  	 
      	
                                    YES
      / NO

                                  	 
      	
                                    YES
      / NO

                                  
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                    2.)

                                  	 
      	 
      	 
      	 
      	 
      	
                                    YES
      / NO

                                  	 
      	
                                    YES
      / NO

                                  	 
      	
                                    YES
      / NO

                                  
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                    3.)

                                  	 
      	 
      	 
      	 
      	 
      	
                                    YES
      / NO

                                  	 
      	
                                    YES
      / NO

                                  	 
      	
                                    YES
      / NO

                                  
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                    4.)

                                  	
                                      

                                  	 
      	
                                      

                                  	 
      	
                                      

                                  	
                                    YES
      / NO

                                  	
                                      

                                  	
                                    YES
      / NO

                                  	
                                      

                                  	
                                    YES
      /
NO

                                  

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    EXPLANATIONS

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 
      	
                                                                      Very
      truly yours,

                                                                    
	 
      	 
      	 
      	 
	 
      	
                                                                      BACTERIN
      INTERNATIONAL HOLDINGS, INC.

                                                                    
	 
      	 
      	 
      	 
	 
      	
                                                                      By:

                                                                    	 
      	 
	 
      	
                                                                      Name:

                                                                    	 
      	 
	 
      	
                                                                      Title:*

                                                                    	 
      	 

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

      

    
      * Must be
executed by the Borrower’s Chief Financial Officer or other executive
officer.

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    EXHIBIT
“D”

    

    FORM
OF WARRANT

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
“E”

    

    FORM
OF LANDLORD WAIVER

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
“F”

    

    FORM OF LEGAL
OPINION

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
“F”

    

    FORM
OF INTELLECTUAL PROPERTY SECURITY AGREEMENTExhibit 10.1

                                 ASPA GOLD CORP.
                 (FORMERLY KNOWN AS RENAISSANCE BIOENERGY INC.)
                              SHAREHOLDER AGREEMENT

The undersigned shareholder ("Shareholder") of ASPA Gold Corp. (formerly known
as Renaissance BioEnergy Inc.), a Nevada corporation ("Company"), for good and
valuable consideration and intending to be legally bound hereby, enters into the
following agreement for the benefit of the Company and all other shareholders of
the Company who enter into substantially similar agreements during the term of
this Agreement.

     1.   Shareholder has acquired  31,000,000 (Thirty one) restricted shares of
          Common Stock,  US$0.00001 par value,  of the Company (the  "Restricted
          Shares").  Shareholder  hereby agrees that, during the period from the
          date  hereof  until  November  24,  2012  (the  "Restricted  Period"),
          Shareholder will not sell, alienate,  pledge, assign, transfer, convey
          or in any way encumber any of the Restricted Shares.

     2.   For a period  of 2 (Two)  years  following  the end of the  Restricted
          Period, Shareholder will not sell, alienate, pledge, assign, transfer,
          convey or in any way encumber more than 2,000,000 (Two million) shares
          of the Restricted Shares during any consecutive  period of 90 (ninety)
          days.

     3.   Paragraphs  1 and 2 shall  apply to the  Restricted  Shares  of Common
          Stock,  even  after  such  shares  f  Common  Stock  may  have  become
          free-trading  pursuant  to Rule 144,  an  effective  SEC  registration
          statement  or some  other  cause.  Shareholder  understands  that  the
          certificates for the Restricted Shares shall bear a restrictive legend
          and that stop transfer  instructions  shall be issued to the Company's
          Transfer Agent.

     4.   The Company and each other holder of restricted shares of Common Stock
          of the Company  who  executes  and  delivers a  substantially  similar
          agreement  shall each be third party  beneficiaries  of this Agreement
          and shall have standing to enforce this Agreement.

     5.   This Agreement  shall be governed by and construed in accordance  with
          the  laws  of  the  State  of  Nevada  (other  than   conflict-of-laws
          principles).  Shareholder  hereby consents to the  jurisdiction of the
          State and Federal  courts  sitting in Clark  County,  Nevada,  for all
          cases and  controversies  arising from this Agreement and acknowledges
          that said courts are not "inconvenient forums."
<PAGE>
IN WITNESS WHEREOF, Shareholder has executed and delivered this Agreement as of
the day and year set forth below.

NORTH AMERICAN GOLD & MINERALS FUND,
A Nevada corporation

By /s/ Ronald Yadin Lowenthal
  -------------------------------------
  RONALD YADIN LOWENTHAL

Date: November 29, 2010

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}]]