Document:

Severance Agreement - Kenneth W. Ludwig

 Exhibit 10.17 
 SEVERANCE AGREEMENT 
 This Agreement is entered into as of the 27th day of March, 2007 by and between
Amedica Corporation, a Delaware corporation (the “Company”) and Kenneth W. Ludwig (the “Executive”). 
 WHEREAS, the
Executive is Vice President Marketing of the Company; 
 WHEREAS, the Company recognizes that the Executive’s service to the Company is
very important to the future success of the Company; 
 WHEREAS, the Executive desires to enter into this Agreement to provide the Executive
with certain financial protection in the event that his employment terminates under certain conditions following a change in control of the Company; and 
 WHEREAS the Board of Directors of the Company (the “Board”) has determined that it is in the best interests of the Company to enter into this Agreement. 
 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Executive agree as
follows: 
 1. Definitions. 
 (a)
Cause. For purposes of this Agreement, “Cause” means: (i) the Executive’s commission of a felony (other than through vicarious liability or through a motor vehicle offense); (ii) the Executive’s material
disloyalty or dishonesty to the Company; (iii) the commission by the Executive of an act of fraud, embezzlement or misappropriation of funds; (iv) a material breach by the Executive of any material provision of this Agreement or any other
agreement to which the Executive and the Company are party, which breach is not cured within thirty (30) days after delivery to the Executive by the Company of written notice of such breach; or (v) the Executive’s refusal to carry out
a lawful written directive from the Board. Any determination of Cause will be made by a majority of the Board voting on such determination. 
 (b) Change in Control. For purposes of this Agreement, a “Change in Control” shall mean: (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended
(the “Act”)) becomes the “beneficial owner” (as defined in Rule 13d-3 under the Act), directly or indirectly, of securities of the Company representing 50% or more of the total voting power represented by the Company’s then
outstanding voting securities (excluding for this purpose the Company or its Affiliates or any employee benefit plan of the Company) pursuant to a transaction or a series of related transactions of which the Board does not approve; (ii) a
merger or consolidation of the Company, whether or not approved by the Board, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into voting securities of the surviving entity or the parent of such corporation) at least 50% of the total voting power represented by the voting securities of the Company or such surviving entity or
parent of such corporation outstanding immediately after such merger or consolidation; or (iii) the stockholders of the Company approve an 

 
agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets. For purposes of this Agreement, “Change
in Control” shall be interpreted in a manner, and limited to the extent necessary, so that it will not cause adverse tax consequences for either party with respect to Section 409A of the Internal Revenue Code of 1986, as amended (the
“Code”), and the provisions of Treasury Notice 2005-1, and any successor statute, regulation and guidance thereto. 
 (c)
Disability. For purposes of this Agreement, “Disability” means the inability of the Executive to perform the principal functions of his duties due to a physical or mental impairment, but only if such inability has lasted or is
reasonably expected to last for at least sixty (60) consecutive days or an aggregate of one hundred twenty (120) days during any twelve-month period. Whether the Executive has a Disability will be determined by a majority of the Board
based on evidence provided by one or more physicians selected by the Board and approved by Executive, which approval shall not be unreasonably withheld. 
 (d) Good Reason. For purposes of this Agreement, “Good Reason” shall mean, without the Executive’s consent: (i) a change in the principal location at which, the Executive performs his duties
for the Company to a new location that is at least fifty (50) miles from the prior location; or (ii) a material change in the Executive’s authority, functions, duties or responsibilities as Vice President Marketing of the Company,
which would cause his position with the Company to become of less responsibility, importance or scope than his position on the date of this Agreement or as of any subsequent date prior to the Change in Control, provided, however, that such material
change is not in connection, with the termination of the Executive’s employment by the Company for any reason. 
 2. Severance Compensation.

 (a) In the event that, within a period of one (1) year following the consummation of a Change in Control, the Executive’s
employment with the Company is terminated by the Company other than for Cause (but not including termination due to the Executive’s death or Disability), or by the Executive for Good Reason, then, within ten (10) days of the applicable
termination date, the Executive shall be entitled to, in addition to any amounts due to the Executive for services rendered prior to the termination date: (i) a lump sum payment from the Company of an amount equal to two (2) times the
Executive’s highest Annual Salary with the Company during the preceding three-year period, including the year of such termination; and (ii) all outstanding options, restricted stock and other similar rights held by the Executive shall
become one hundred percent (100%) vested (collectively, the “Severance Compensation”). For purposes of this Agreement, “Annual Salary” shall mean the Executive’s annual base salary and bonus payments (measured on the
Company’s 12-month fiscal year period), excluding reimbursements and amounts attributable to stock options and other non-cash compensation. Notwithstanding the foregoing, in the event that the Executive is deemed to be a “key
employee” under Code Section 416 and the Company’s common stock is publicly traded on an established securities market or otherwise, then any payment under subsection (i) above to which the Executive may become entitled will be
postponed until six (6) months following the date his 

  

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employment with the Company is terminated so as to avoid any adverse tax consequences for either party with respect to Code Section 409A, or any
successor statute, regulation and guidance thereto. 
 (b) If it is determined that the amounts payable to the Executive under this
Agreement, when considered together with any other amounts payable to the Executive in connection with a Change in Control, cause such payments to be treated as excess parachute payments within the meaning of Code Section 280G, then the Company
will make an additional “gross up” payment to the Executive in order to pay for any additional tax imposed on the Executive pursuant to Code Section 4999. 
 3. No Duplication of Compensation. The Severance Compensation shall replace, and be provided in lieu of, any severance compensation that may be provided to the Executive under any other agreement, provided,
however, that this prohibition against duplication shall not be construed to otherwise limit the Executive’s rights as to payments or benefits provided under any pension plan (as defined in Section 3(2) of the Employee Retirement Income
Security Act of 1974, as amended), deferred compensation, stock, stock option or similar plan sponsored by the Company. 
 4. Enforceability. If any
provision of this Agreement shall be deemed invalid or unenforceable as written, this Agreement shall be construed, to the greatest extent possible, or modified, to the extent allowable by law, in a manner which shall render it valid and
enforceable. No invalidity or unenforceability of any provision contained herein shall affect any other portion of this Agreement. 
 5. Notices. All
notices, requests, consents and other communications hereunder shall be in writing, shall be addressed to the receiving party’s address set forth below or to such other address as a party may designate by notice hereunder, and shall be either
(i) delivered by hand, (ii) made by facsimile transmission, (iii) sent by overnight courier, or (iv) sent by registered or certified mail, return receipt requested, postage prepaid. 
 If to the Company: 
 Amedica Corporation

 615 Arapeen Drive, Suite 302 
 Salt lake City, UT 84108 
 Facsimile: (801)583-8635 
 Attn: Board of Directors 
  

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 With a copy to: 
 Jonathan L, Kravetz, Esq. 
 Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. 
 One Financial Center 
 Boston, MA 02111

 Facsimile: (617)542-2241 
 If
to the Executive: 
 To the Executive’s last-known home address and/or facsimile number as set forth in the Company’s personnel
records 
 All notices, requests, consents and other communications hereunder shall be deemed to have been given either (i) if by hand, at the time of
the delivery thereof to the receiving party at the address of such party set forth above, (ii) if made by facsimile transmission, at the time that receipt thereof has been acknowledged by electronic confirmation or otherwise, (iii) if sent
by overnight courier, on the next business day following the day such notice is delivered to the courier service, or (iv) if sent by registered or certified mail, on the 5th business day following the day such mailing is made. 
 6. Entire Agreement. This Agreement, together with the other agreements referenced herein, 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. 
 7. Modifications and Amendments. The terms and provisions of this Agreement may be modified or amended only by written agreement executed by the Company and the Executive. The Company and the Executive agree
that they will jointly execute an amendment to modify this Agreement to the extent necessary to comply with the requirements of Code Section 409A, or any successor statute, regulation and guidance thereto; provided that no such amendment shall
increase the total financial obligation of the Company under this Agreement. 
 8. Waivers and Consents. The terms and provisions of
this Agreement may be waived, or consent for the departure therefrom granted, only by a 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. 
 9. Binding Effect; Assignment. The Agreement will be binding upon and inure to the
benefit of (a) the heirs, executors and legal representatives of the Executive upon the Executive’s 

  

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death and (b) any successor of the Company. Any such successor of the Company will be deemed substituted for the Company under the terms of the
Agreement for all purposes. For this purpose, “successor” means any person, firm, corporation or other business entity which at any time, whether by purchase, merger or otherwise, directly or indirectly acquires all or substantially all of
the assets or business of the Company. None of the rights of the Executive to receive any form of compensation payable pursuant to the Agreement may be assigned or transferred except by will or the laws of descent and distribution. Any other
attempted assignment, transfer, conveyance or other disposition of the Executive’s right to compensation or other benefits will be null and void. 
 10. Governing Law. This Agreement and the rights and obligations of the parties hereunder shall be construed in accordance with and governed by the law of the State of Utah, without giving effect to the
conflict of law principles thereof. 
 11. Jurisdiction and Service of Process. Any legal action or proceeding with respect to this
Agreement shall be brought in the courts of the State of Utah or of the United States of America for the District of Utah. By execution and delivery of this Agreement, each of the parties hereto accepts for itself and in respect of its property,
generally and unconditionally, the jurisdiction of the aforesaid courts. Each of the parties hereto irrevocably consents to the service of process of any of the aforementioned courts in any such action or proceeding by the mailing of copies thereof
by certified mail, postage prepaid, to the party at its address set forth in Section 5 hereof. 
 12. No Waiver of Rights, Powers and
Remedies. No failure or delay by a party hereto in exercising any right, power or remedy under this Agreement, and no course of dealing between the parties hereto, shall operate as a waiver of any such right, power or remedy of the party. No
single or partial exercise of any right, power or remedy under this Agreement by a party hereto, nor any abandonment or discontinuance of steps to enforce any such right, power or remedy, shall preclude such party from any other or further exercise
thereof or the exercise of any other right, power or remedy hereunder. The election of any remedy by a party hereto shall not constitute a waiver of the right of such party to pursue other available remedies. No notice to or demand on a party not
expressly required under this Agreement shall entitle the party receiving such notice or demand to any other or further notice or demand in similar or other circumstances or constitute a waiver of the rights of the party giving such notice or demand
to any other or further action in any circumstances without such notice or demand. 
 13. Withholding. The Company is authorized to
withhold, or cause to be withheld, from any payment or benefit under the Agreement the full amount of any applicable withholding taxes. 
 14. Tax Consequences. The Company does not guarantee the tax treatment or tax consequences associated with any payment or benefit arising under this Agreement. 
 15. Acknowledgement. The Executive acknowledges that he has had the opportunity to discuss this matter with and obtain advice from his private
attorney, has had sufficient time to, and has carefully read and fully understands all the provisions of the Agreement, and is knowingly and voluntarily entering into the Agreement. 
  

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 16. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same instrument. 
 IN WITNESS WHEREOF, the parties have executed this
Agreement as of the day and year first above written. 
  

			
	COMPANY:
	
	AMEDICA CORPORATION
		
	By:	 	 /s/ Ashok C. Khandkar

	Name:	 	Ashok C. Khandkar
	Title:	 	Chief Executive Officer
	
	EXECUTIVE:
	
	 /s/ Kenneth Ludwig

	Kenneth Ludwig

  

 6Assignment Agreement dated August 1, 2001

 Exhibit 10.19 
 ASSIGNMENT 
 This Assignment is made and entered into as of the 1 day of August, 2001,
by and between JOINT ENTERPRISES, L.C., a Utah limited liability company (“Assignor”) and AMEDICA CORP., a Delaware corporation (“Assignee”), having a place of business at 2116 South Lakeline Drive, Salt Lake City, Utah 84109.

 WHEREAS, Assignor owns the entire right, title and interest in and to a “Self-Venting Intramedullary Cement Restrictor” (the
“Device”) for which United States Letters Patent No. 5,972,034 (the “Patent”) has been issued on October 26, 1999; and 
 WHEREAS, Assignee desires to acquire by formal, recordable assignment the entire right, title and interest in and to said Patent in the United States and throughout the world. 
 NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows: 
 1. Assignment of Patent. Assignor sells, assigns,
transfers and conveys to Assignee all of the entire right, title and interest in and to the Patent in the United States and throughout the world. 
 2. Payment to Assignee. In consideration for the assignment of the Patent hereunder, Assignee agrees to pay to Assignor the following: 
 a. A one-time payment of $25,000.00 payable on or before Dec 31, 2001 
 and 

 b. Royalty payments as follows: 
 i. For each sold Device, the greater of 5% of the net after-tax profits relating to the sale of the Device or $5.00 per Device
sold. 
 “Net After-Tax Profits” is defined as the gross proceeds attributable to the sale of the Device, after deducting therefrom
all costs and expenses attributable to development, testing and sale of the Device, all sales, use, occupation or excise taxes, and all income taxes applicable to income generated from the Device. In no event shall any of the Assignee’s
overhead or expenses unrelated to the Device constitute a deduction for purposes of royalty calculation. 
 3. Accounting and Payment
for Royalty. The accounting and payment for the royalty shall be as follows: 
 a. The Net After-Tax Profits shall be
calculated on a quarterly basis, and Assignee shall pay to Assignor the amounts owing from that quarter’s sales no later than the last day of the month following that applicable quarter. 
 b. Assignee shall maintain separate accountings related to the Device. Assignor or Assignor’s agents or representatives shall at all
times have reasonable access to examine Assignee’s books and records relating to the Device to verify the sales and the calculation of the royalties hereunder. 
 4. Patent Rights Only. The assignment and calculation of the payments provided hereunder are solely for the Patent and rights to the Device. Nothing herein is intended, nor shall it be construed, to
constitute any payment for any consulting or other personal services. 
  

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 5. Sale of Capital Asset. The parties intend that this Assignment provides for the
“sale or exchange of a capital asset” from Assignor to Assignee as defined in, and pursuant to, Section 1235 of the Internal Revenue Code of 1986, as amended, entitled “Sale or Exchange of Patents,” and that all payments
made to Assignor hereunder shall be taxed as long-term capital gains. Nothing in this Agreement to the contrary shall imply that the parties intend that all payments to Assignor hereunder shall be for anything other than the transfer of all
substantial rights which Assignor may have in Patent and in the Device. Assignee, however, is making no warranties or representations as to the ultimate taxability of the payments to Assignor hereunder. 
 6. Further Actions. Assignor, upon request and without further compensation, but without expense to Assignor, shall take such actions and
execute all such papers and provide testimony necessary or desirable to assist Assignee in obtaining, sustaining, perfecting, recording, reissuing, maintaining and enforcing the Patent in the United States and throughout the world. 
 Assignor represents and warrants it has not granted and will not grant to others any rights inconsistent with the rights granted herein. 
 7. Indemnification. Except as otherwise specifically provided herein, Assignee shall indemnify and hold Assignor harmless from any claims,
damages or liabilities, of any nature, including attorneys’ fees, stemming from or in connection with the manufacture, marketing and sale of the Device and the use of the Patent. 
 8. 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. 
  

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 9. Binding. This Agreement shall he binding upon and inure to the benefit of the parties
hereto, their heirs, agents, personal representatives, successors and assigns. 
 10. Paragraph Numbers and Headings. The
paragraph and subparagraph headings and numbers used herein are for purposes of convenience and shall not be considered in the interpretation of this Agreement. 
 IN WITNESS WHEREOF, the parties have entered into this agreement as of the day and year first above written. 
  

			
	ASSIGNOR:
	
	JOINT ENTERPRISES, L.C.
	A Utah limited liability company
		
	 By
  
	 	 /s/ Aaron Hofmann

	Its	 	Member
	
	ASSIGNEE:
	
	 AMEDICA CORP.
 A Delaware
corporation

		
	By	 	 /s/ Ashok Khandkar

	Its	 	CEO

  

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	STATE OF UTAH                        )	 		  	
	:ss.	 		  	
	COUNTY OF SALT LAKE)	 		  	

 On this 1st day of August, 2001, personally appeared before me AARON HOFMANN, the signer of the above instrument, who duly acknowledged to
me that     he is the member of JOINT ENTERPRISES, L.C., the Assignor named above, and that     he executed the above instrument on behalf of the Assignor as such
                    . 
  

					
		 		 	 /s/ Lynne King

	My Commission Expires:	 		 	Notary Public
	10-4-04	 		 	Residing at 4711 So Highland Drive

  

					
	STATE OF UTAH                        )	 	

	  	
	:ss.	 	  	
	COUNTY OF SALT LAKE)	 	  	

 On this 1st day of, August 2001, personally appeared before me ASHOK KHANDKAR, the signer of the above instrument, who duly acknowledged
to me that     he is the CEO of AMEDICA CORP., the Assignee named above, and that     he executed the above instrument of the Assignee a such
                            . 
  

					
		 		 	 /s/ Lynne King

	My Commission Expires:	 		 	Notary Public
	10-4-04	 		 	Residing at 4711 So Highland Drive

  

					
		 	

	  	
		 	  	
		 	  	

  

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