Exhibit 10.1


 


Execution Copy




 


SEVENTH
AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT


 


This SEVENTH AMENDMENT
TO AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”) is made and entered into as of December 31,
2016 (the “Amendment Closing Date”) by and among Bacterin
International, Inc., a Nevada corporation (the “Borrower”), ROS
acquisition offshore lp, a Cayman Islands Exempted Limited Partnership (“ROS”), OrbiMed Royalty Opportunities
II, LP, a Delaware limited partnership (“Royalty Opportunities”), and, in their capacity as Guarantors under
the Credit Agreement (as defined below), XTANT MEDICAL HOLDINGS, INC., a Delaware corporation (“Holdings”),
X-SPINE SYSTEMS, INC., an Ohio corporation (“X-Spine”) and XTANT MEDICAL, INC., a Delaware corporation
(“Xtant” and, along with Holdings and X-Spine, collectively, the “Guarantors”).


 


WHEREAS, the Borrower,
ROS and Royalty Opportunities are party to that certain Amended and Restated Credit Agreement, dated as of July 27, 2015, as amended
by that certain First Amendment to Amended and Restated Credit Agreement, dated as of March 31, 2016, that certain Second Amendment
to Amended and Restated Credit Agreement, dated as of May 25, 2016, that certain Third Amendment to Amended and Restated Credit
Agreement, dated as of June 30, 2016, that certain Fourth Amendment to Amended and Restated Credit Agreement, dated as of July
29, 2016, that certain Fifth Amendment to the Amended and Restated Credit Agreement, dated as of August 12, 2016, and that certain
Sixth Amendment to the Amended and Restated Credit Agreement, dated as of September 27, 2016 (the “Credit Agreement”),
pursuant to which (i) ROS and Royalty Opportunities, as Lenders under the Credit Agreement, have extended credit to the Borrower
on the terms set forth therein and (ii) each Lender has appointed ROS as the administrative agent (the “Administrative
Agent”) for the Lenders;


 


WHEREAS, the Guarantors
and the Administrative Agent entered into an Amended and Restated Guarantee, dated as of July 31, 2015 and supplemented on September
11, 2015, pursuant to which the Guarantors have agreed to guarantee the Obligations of the Borrower under the Credit Agreement;


 


WHEREAS, pursuant
to Section 11.1 of the Credit Agreement, the Credit Agreement may be amended by an instrument in writing signed by each of the
Borrower and the Administrative Agent (acting on behalf of the Lenders);


 


WHEREAS, the Borrower
and the Lenders desire to amend certain provisions of the Credit Agreement as provided in this Amendment.


 


NOW, THEREFORE,
in consideration of the mutual agreements herein contained, and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto agree as follows:


 


1.       Definitions;
Loan Document. Capitalized terms used herein without definition shall have the meanings assigned to such terms in the Credit
Agreement. This Amendment shall constitute a Loan Document for all purposes of the Credit Agreement and the other Loan Documents.


 






     


     


    

 


2.       Amendments
to Section 1.1. Section 1.1 of the Credit Agreement is hereby amended by deleting the definition of “Holdings”
and inserting the following:


 


““Holdings”
means Xtant Medical Holdings, Inc., formerly known as Bacterin International Holdings, Inc.”


 


3.       Amendments
to Section 3.6. Section 3.6 of the Credit Agreement is hereby amended by adding the following at the end thereof:


 


“Notwithstanding the foregoing,
interest accrued on the Loans for the Fiscal Quarter ended on December 31, 2016 and otherwise required to be paid in cash on January
2, 2017, shall instead be required to be paid in cash on January 14, 2017, plus interest accrued on such interest from January
2, 2017 to the date of payment thereof at a rate equal to the Applicable Margin plus the higher of (i) the LIBO Rate for the Fiscal
Quarter ended on December 31, 2016, and (ii) 1.00%.”


 


4.       Amendments
to Section 8.4(b). Section 8.4(b) of the Credit Agreement is hereby amended by deleting the first two sentences from such
Section 8.4(b) in their entirety and inserting the following as the first two sentences thereof:


 


“At all times prior to
March 31, 2017, the Liquidity shall not be less than $500,000. At all times after March 31, 2017, the Liquidity shall not be less
than $5,000,000.”


 


5.       Amendments
to Section 8.4(c). Section 8.4(c) of the Credit Agreement is hereby is hereby amended by restating it in its entirety as
follows:


 


“(c) Consolidated Senior
Leverage Ratio. The Consolidated Senior Leverage Ratio shall not be greater than the amount set forth below at any time, in
each case, other than as set forth in the definition thereof, with respect to the most recent period of four Fiscal Quarters then
ended (starting at the time that the financial statements for the most recent four Fiscal Quarters ended March 31, 2017 are required
to have been delivered hereunder (or have been so delivered, if earlier)):


 


	Four Fiscal 

Quarters Ended	Consolidated Senior

 Leverage Ratio
	March 31, 2017	5.00:1.00
	June 30, 2017	5.00:1.00
	September 30, 2017	5.00:1.00
	December 31, 2017	5.00:1.00
	March 31, 2018	5.00:1.00
	June 30, 2018	5.00:1.00
	September 30, 2018	5.00:1.00
	December 31, 2018	5.00:1.00
	March 31, 2019	2.50:1.00
	June 30, 2019	2.50:1.00
	September 30, 2019	2.50:1.00
	December 31, 2019	2.50:1.00
	March 31, 2020	2.50:1.00
	June 30, 2020	2.50:1.00


 






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6.       Conditions
to Effectiveness of Amendment. This Amendment shall become effective upon receipt by the Borrower, the Administrative Agent,
the Lenders and the Guarantors of a counterpart signature of the others to this Amendment duly executed and delivered by each of
the Borrower, the Lenders, the Administrative Agent and the Guarantors.


 


7.       Expenses.
The Borrower agrees to pay on demand all expenses of the Administrative Agent (including, without limitation, the fees and out-of-pocket
expenses of Covington & Burling LLP, counsel to the Administrative Agent) incurred in connection with the Administrative Agent’s
review, consideration and evaluation of this Amendment, including the rights and remedies available to it in connection therewith,
and the negotiation, preparation, execution and delivery of this Amendment.


 


8.       Representations
and Warranties. The Borrower and the Guarantors represent and warrant to each Lender as follows:


 


(a)       After
giving effect to this Amendment, the representations and warranties of the Borrower and the Guarantors contained in the Credit
Agreement or any other Loan Document shall, (i) with respect to representations and warranties that contain a materiality qualification,
be true and correct in all respects on and as of the date hereof, and (ii) with respect to representations and warranties that
do not contain a materiality qualification, be true and correct in all material respects on and as of the date hereof, and except
that the representations and warranties limited by their terms to a specific date shall be true and correct as of such date.


 


(b)       After
giving effect to this Amendment, no Default or Event of Default under the Credit Agreement will occur or be continuing.


 


9.       No
Implied Amendment or Waiver. Except as expressly set forth in this Amendment, this Amendment shall not, by implication
or otherwise, limit, impair, constitute a waiver of or otherwise affect any rights or remedies of the Administrative Agent or the
Lenders under the Credit Agreement or the other Loan Documents, or alter, modify, amend or in any way affect any of the terms,
obligations or covenants contained in the Credit Agreement or the other Loan Documents, all of which shall continue in full force
and effect. Nothing in this Amendment shall be construed to imply any willingness on the part of the Administrative Agent or the
Lenders to agree to or grant any similar or future amendment, consent or waiver of any of the terms and conditions of the Credit
Agreement or the other Loan Documents.


 


10.       Waiver
and Release. TO INDUCE THE ADMINISTRATIVE AGENT, ACTING ON BEHALF OF THE LENDERS, TO AGREE TO THE TERMS OF THIS AMENDMENT,
THE BORROWER, THE GUARANTORS AND THEIR AFFILIATES (COLLECTIVELY, THE RELEASING PARTIES”) REPRESENT AND WARRANT THAT
AS OF THE DATE HEREOF THERE ARE NO CLAIMS OR OFFSETS AGAINST OR RIGHTS OF RECOUPMENT WITH RESPECT TO OR DEFENSES OR COUNTERCLAIMS
TO THEIR OBLIGATIONS UNDER THE LOAN DOCUMENTS AND IN ACCORDANCE THEREWITH THEY:


 






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(a)       WAIVE
ANY AND ALL SUCH CLAIMS, OFFSETS, RIGHTS OF RECOUPMENT, DEFENSES OR COUNTERCLAIMS, WHETHER KNOWN OR UNKNOWN, ARISING PRIOR TO THE
DATE HEREOF; AND


 


(b)       FOREVER
RELEASE, RELIEVE, AND DISCHARGE THE ADMINISTRATIVE AGENT, THE LENDERS, THEIR OFFICERS, DIRECTORS, SHAREHOLDERS, MEMBERS, PREDECESSORS,
SUCCESSORS, ASSIGNS, ATTORNEYS, ACCOUNTANTS, AGENTS, EMPLOYEES, AND REPRESENTATIVES (COLLECTIVELY, THE "RELEASED PARTIES"),
AND EACH OF THEM, FROM ANY AND ALL CLAIMS, LIABILITIES, DEMANDS, CAUSES OF ACTION, DEBTS, OBLIGATIONS, PROMISES, ACTS, AGREEMENTS,
AND DAMAGES, OF WHATEVER KIND OR NATURE, WHETHER KNOWN OR UNKNOWN, SUSPECTED OR UNSUSPECTED, CONTINGENT OR FIXED, LIQUIDATED OR
UNLIQUIDATED, MATURED OR UNMATURED, WHETHER AT LAW OR IN EQUITY, WHICH THE RELEASING PARTIES EVER HAD, NOW HAVE, OR MAY, SHALL,
OR CAN HEREAFTER HAVE, DIRECTLY OR INDIRECTLY ARISING OUT OF OR IN ANY WAY BASED UPON, CONNECTED WITH, OR RELATED TO MATTERS, THINGS,
ACTS, CONDUCT, AND/OR OMISSIONS AT ANY TIME FROM THE BEGINNING OF THE WORLD THROUGH AND INCLUDING THE DATE HEREOF, INCLUDING WITHOUT
LIMITATION ANY AND ALL CLAIMS AGAINST THE RELEASED PARTIES ARISING UNDER OR RELATED TO THE LOAN DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED
THEREBY.


 


(c)       IN
CONNECTION WITH THE RELEASE CONTAINED HEREIN, THE RELEASING PARTIES ACKNOWLEDGE THAT THEY ARE AWARE THAT THEY MAY HEREAFTER DISCOVER
CLAIMS PRESENTLY UNKNOWN OR UNSUSPECTED, OR FACTS IN ADDITION TO OR DIFFERENT FROM THOSE WHICH THEY KNOW OR BELIEVE TO BE TRUE,
WITH RESPECT TO THE MATTERS RELEASED HEREIN. NEVERTHELESS, IT IS THE INTENTION OF THE RELEASING PARTIES, THROUGH THIS AGREEMENT
AND WITH ADVICE OF COUNSEL, FULLY, FINALLY, AND FOREVER TO RELEASE ALL SUCH MATTERS, AND ALL CLAIMS RELATED THERETO, WHICH DO NOW
EXIST, OR HERETOFORE HAVE EXISTED. IN FURTHERANCE OF SUCH INTENTION, THE RELEASES HEREIN GIVEN SHALL BE AND REMAIN IN EFFECT AS
A FULL AND COMPLETE RELEASE OR WITHDRAWAL OF SUCH MATTERS NOTWITHSTANDING THE DISCOVERY OR EXISTENCE OF ANY SUCH ADDITIONAL OR
DIFFERENT CLAIMS OR FACTS RELATED THERETO.


 


(d)       THE
RELEASING PARTIES COVENANT AND AGREE NOT TO BRING ANY CLAIM, ACTION, SUIT, OR PROCEEDING AGAINST THE RELEASED PARTIES, DIRECTLY
OR INDIRECTLY, REGARDING OR RELATED IN ANY MANNER TO THE MATTERS RELEASED HEREBY, AND FURTHER COVENANT AND AGREE THAT THIS AGREEMENT
IS A BAR TO ANY SUCH CLAIM, ACTION, SUIT, OR PROCEEDING.


 






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(e)       THE
RELEASING PARTIES REPRESENT AND WARRANT TO THE RELEASED PARTIES THAT THEY HAVE NOT HERETOFORE ASSIGNED OR TRANSFERRED, OR PUPORTED
TO ASSIGN OR TRANSFER, TO ANY PERSON OR ENTITY ANY CLAIMS OR OTHER MATTERS HEREIN RELEASED.


 


11.       Counterparts;
Governing Law. This Amendment may be executed in any number of counterparts and by different parties hereto on separate
counterparts, each of such when so executed and delivered shall be an original, but all of such counterparts shall together constitute
but one and the same agreement. Delivery of an executed counterpart of a signature page of this Amendment by fax transmission or
other electronic mail transmission (e.g., “pdf” or “tif”) shall be effective as delivery of a manually
executed counterpart of this Amendment. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS
OF THE STATE OF NEW YORK (INCLUDING FOR SUCH PURPOSE SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF
NEW YORK).


 


[Remainder
of Page Intentionally Left Blank]


 






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IN WITNESS WHEREOF, the parties
hereto have caused this Amendment to be executed by their respective officers thereunto duly authorized as of the day and year
first above written.


 


 





	 	BACTERIN INTERNATIONAL, INC.,	 
	 	as the Borrower	 
	 	 	 	 
	 	By:	  /s/ John Gandolfo	 
	 	Name:  John Gandolfo	 
	 	Title:    CFO	 
	 	 	 	 
	 	 	 	 
	 	XTANT MEDICAL HOLDINGS, INC.,	 
	 	(fka: Bacterin International Holdings, Inc.)	 
	 	as a Guarantor	 
	 	 	 	 
	 	 	 	 
	 	By:	  /s/ John Gandolfo	 
	 	Name:  John Gandolfo	 
	 	Title:    CFO	 
	 	 	 	 
	 	 	 	 
	 	X-SPINE SYSTEMS, INC.,	 
	 	as a Guarantor	 
	 	 	 	 
	 	 	 	 
	 	By:  	  /s/ John Gandolfo	 
	 	Name:  John Gandolfo	 
	 	Title:    CFO	 
	 	 	 	 
	 	 	 	 
	 	XTANT MEDICAL, INC.,	 
	 	as a Guarantor	 
	 	 	 	 
	 	 	 	 
	 	By: 	  /s/ John Gandolfo	 
	 	Name:  John Gandolfo	 
	 	Title:    CFO	 




 


 


 


 


 


Signature Page to Seventh Amendment
to A&R Credit Agreement


 






     


     


    

  





	 	ROS Acquisition Offshore LP,	 
	 	as a Lender and as the Administrative Agent	 
	 	By ROS Acquisition Offshore GP Ltd.,	 
	 	its General Partner	 
	 	By OrbiMed Advisors LLC,	 
	 	its investment manager	 
	 	 	 	 
	 	 	 	 
	 	By: 	  /s/ Samuel D. Islay	 
	 	Name:  Samuel D. Islay	 
	 	Title:    Managing Member	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	ORBIMED ROYALTY OPPORTUNITIES II, LP,	 
	 	as a Lender	 
	 	By OrbiMed ROF II LLC,	 
	 	its General Partner	 
	 	By OrbiMed Advisors LLC,	 
	 	its Managing Member	 
	 	 	 	 
	 	 	 	 
	 	By:  	  /s/ Samuel D. Islay	 
	 	Name:  Samuel D. Islay	 
	 	Title:    Managing Member	 







 


 


 


 


 


Signature Page to Seventh Amendment
to A&R Credit Agreement