Document:

Document

10.1
EXECUTION VERSION

FIFTEENTH AMENDMENT TO CREDIT AGREEMENT

This FIFTEENTH AMENDMENT TO CREDIT AGREEMENT (this “Agreement”), dated as of September 30, 2020, is entered into by and among THE DIXIE GROUP, INC., a Tennessee corporation (“Dixie”), TDG OPERATIONS, LLC, a Georgia limited liability company, formerly known as Masland Carpets, LLC and successor by merger to Fabrica International, Inc. (“TDG”; together with Dixie, are referred to hereinafter each individually as a “Borrower,” and individually and collectively, jointly and severally, as the “Borrowers”), the persons identified as the Lenders on the signature pages hereto (the “Lenders”), and WELLS FARGO CAPITAL FINANCE, LLC, a Delaware limited liability company, as administrative agent for the Lenders (in such capacity, together with its successors and assigns in such capacity, “Agent”).

W I T N E S S E T H:

WHEREAS, pursuant to the Credit Agreement dated as of September 13, 2011, as amended by the First Amendment to Credit Agreement dated as of November 2, 2012, the Second Amendment to Credit Agreement dated as of April 1, 2013, the Third Amendment to Credit Agreement dated as of May 22, 2013, the Fourth Amendment to Credit Agreement dated as of July 1, 2013, the Fifth Amendment to Credit Agreement dated as of July 30, 2013, the Sixth Amendment to Credit Agreement dated as of August 30, 2013, the Seventh Amendment to Credit Agreement dated as of January 20, 2014, the Eighth Amendment to Credit Agreement dated as of March 14, 2014, the Ninth Amendment to Credit Agreement dated as of March 26, 2014, the Tenth Amendment to Credit Agreement, First Amendment to Security Agreement, and First Amendment to Guaranty dated as of September 23, 2016, the Consent and Eleventh Amendment to Credit Agreement dated as of January 14, 2019, the Twelfth Amendment to Credit Agreement, dated as of October 3, 2019, the Consent and Thirteenth Amendment to Credit Agreement, dated as of October 22, 2019, and the Fourteenth Amendment to Credit Agreement and Second Amendment to Security Agreement, dated as of May 14, 2020 (as the same may be further amended, restated, supplemented, or otherwise modified from time to time, the “Credit Agreement”), among Agent, the Lenders, Candlewick Yarns, LLC, an Alabama limited liability company, and the Borrowers, the Lenders have made loans and advances and provided other financial accommodations to the Borrowers; 

WHEREAS, the Borrowers have requested that Agent and Lenders enter into this Agreement to make certain amendments to the Credit Agreement, and Agent and the Lenders are willing to do so, subject to the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the agreements herein contained and other good and valuable consideration, the parties hereby agree as follows:

I.    DEFINITIONS AND INTERPRETATION.

1.1.     Definitions and Interpretation.  Unless otherwise defined herein or the context otherwise requires, terms used in this Agreement, including its preamble and recitals, have the meanings provided in the Credit Agreement. 

10.1

II.    AMENDMENTS TO CREDIT AGREEMENT.
Subject to the satisfaction of each of the conditions precedent set forth in Section IV of this Agreement, the Credit Agreement is hereby amended as follows:
2.1.     Additional Definitions.  Schedule 1.1 of the Credit Agreement is hereby amended by inserting the following new defined terms therein in appropriate alphabetical order:
“Greater Nevada Loan Date” means the date on a Permitted Fixed Asset Loan from Greater Nevada Credit Union to one or more of the Borrowers is consummated in accordance with the terms of the Fifteenth Amendment and the Net Cash Proceeds thereof have been paid to Agent for application to the Obligations in accordance with the terms of this Agreement.
“Fifteenth Amendment” means that certain Fifteenth Amendment to Credit Agreement, dated as of the Fifteenth Amendment Effective Date, by and among, Agent, the Lenders, and the Loan Parties.
“Fifteenth Amendment Effective Date” means September 30, 2020.
“Flood Laws” means the National Flood Insurance Act of 1968, Flood Disaster Protection Act of 1973, and related laws, rules and regulations, including any amendments or successor provisions.
2.2.    Ameristate Loan Date.  The definition of “Ameristate Loan Date” as set forth in Schedule 1.1 of the Credit Agreement is hereby amended so that it reads, in its entirety, as follows:
“Ameristate Loan Date” means the date on a Permitted Fixed Asset Loan from Ameristate Bank to one or more of the Borrowers is consummated in accordance with the terms of the Fifteenth Amendment and the Net Cash Proceeds thereof have been paid to Agent for application to the Obligations in accordance with the terms of this Agreement.
2.3.    Availability Block.  The definition of “Availability Block” as set forth in Schedule 1.1 of the  Credit Agreement is hereby amended so that it reads, in its entirety, as follows:
“Availability Block” means (a) from the Fifteenth Amendment Effective Date until the earlier of (i) Ameristate Loan Date and (ii) the Greater Nevada Loan Date, $5,000,000 and (b) from and after the earlier of (i) Ameristate Loan Date and (ii) the Greater Nevada Loan Date, $7,000,000.
2.4.    Maturity Date.  The first sentence of Section 3.3 of the Credit Agreement is hereby amended so that it reads, in its entirety, as follows:
This Agreement shall continue in full force and effect for a term ending on December 22, 2021 (the “Maturity Date”).
2.5.    Flood Insurance.  Section 5.6 of the Credit Agreement is hereby amended so that it reads, in its entirety, as follows:

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5.6 Insurance.  At Borrowers’ expense, maintain insurance respecting each of the Loan Parties’ and their Subsidiaries’ assets wherever located, covering loss or damage by fire, theft, explosion, and all other hazards and risks as may be reasonably required by Agent.  Borrowers also shall maintain (with respect to each of the Loan Parties and their Subsidiaries) business interruption, general liability, product liability insurance, director’s and officer’s liability insurance, and fiduciary liability insurance, as well as insurance against larceny, embezzlement, and criminal misappropriation.  Borrowers also shall maintain flood insurance on all Real Property constituting Collateral, from such providers, in amounts and on terms in accordance with the Flood Laws or as otherwise satisfactory to Agent and all Lenders.  All such policies of insurance shall be with responsible and reputable insurance companies reasonably acceptable to Agent and in such amounts as is carried generally in accordance with sound business practice by companies in similar businesses similarly situated and located and in any event in amount, adequacy and scope reasonably satisfactory to Agent.  All property insurance policies covering the Collateral are to be made payable to Agent for the benefit of Agent and the Lenders, as their interests may appear, in case of loss, pursuant to a standard loss payable endorsement with a standard non contributory “lender” or “secured party” clause and are to contain such other provisions as Agent may reasonably require to fully protect the Lenders’ interest in the Collateral and to any payments to be made under such policies.  All certificates of property and general liability insurance are to be delivered to Agent, with the loss payable (but only in respect of Collateral) and additional insured endorsements in favor of Agent and shall provide for not less than 30 days (10 days in the case of non-payment) prior written notice to Agent of the exercise of any right of cancellation.  If any Borrower fails to maintain such insurance, Agent may arrange for such insurance, but at such Borrower’s expense and without any responsibility on Agent’s part for obtaining the insurance, the solvency of the insurance companies, the adequacy of the coverage, or the collection of claims.  Borrowers shall give Agent prompt notice of any loss exceeding $1,000,000 covered by its casualty or business interruption insurance.  Upon the occurrence and during the continuance of an Event of Default, Agent shall have the sole right to file claims under any property and general liability insurance policies in respect of the Collateral, to receive, receipt and give acquittance for any payments that may be payable thereunder, and to execute any and all endorsements, receipts, releases, assignments, reassignments or other documents that may be necessary to effect the collection, compromise or settlement of any claims under any such insurance policies.
2.6.     Additional Real Property Collateral.  Section 14.1 of the Credit Agreement is hereby amended by adding the following new clause (g) thereto in appropriate alphabetical order:
(g)    No Real Property shall be taken as Collateral unless Lenders receive 45 days advance notice and each Lender confirms to Agent that such Lender has completed all flood due diligence, received copies of all flood insurance documentation and confirmed flood insurance compliance as required by the Flood Laws or as otherwise satisfactory to the Lender.  At any time that any Real Property constitutes Collateral, no modification of a Loan Document shall add, increase, renew or extend any loan, commitment or credit line hereunder until the completion of flood due diligence, documentation and coverage as required by the Flood Laws or as otherwise satisfactory to all Lenders.

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III.    CONDITIONS PRECEDENT.

This Agreement shall become effective as of the date hereof, subject to the following conditions precedent having been satisfied or waived by Agent:

3.1.     Execution of Agreement.  Agent shall have received fully executed counterparts of this Agreement, duly authorized, executed and delivered by each Borrower, Agent, and each Lender, and acknowledged by each Guarantor. 

3.2.    Amendment Fee.  Borrowers shall have paid to Agent an amendment fee, for the ratable benefit of the Lenders, in the amount of $50,000, which fee shall be fully earned as of the date hereof and non-refundable under any and all circumstances (it being understood that the Agent is hereby authorized to charge such fee to the Loan Account).
3.3.     Accuracy of Representations and Warranties.  Each of the representations and warranties of the Borrowers set forth in Section 4 of the Credit Agreement shall be true and correct in all material respects (except that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof).

3.4.    Other Documents.  Agent shall have received such other agreements, documents, instruments, officer’s certificates, and information executed and/or delivered by the Loan Parties as Agent may reasonably request.

3.5.    No Default or Event of Default.  No Default or Event of Default shall have occurred and be continuing.

IV.     POST-EFFECTIVE DATE COVENANTS
4.1.    Post-Effective Date Covenants.  In addition to all other covenants and agreements of Borrowers set forth in this Agreement, Borrowers hereby covenant and agree that they shall timely comply each of the following (collectively, the “Post-Effective Date Covenants”) and any failure to so timely comply shall constitute an Event of Default:
(a)     With respect to any consultant retained by any Borrower to perform such duties, and for such period of time, as Agent shall deem necessary in its reasonable discretion (any such consultant, a “Consultant”), (i) Borrowers shall be solely responsible for any and all of such Consultant’s fees, costs, and expenses, (ii) Borrowers shall cause Agent and Lenders to have direct and unfettered communication with such Consultant, including, without limitation, communication outside the presence of any Borrowers’ representatives, and (iii) Borrowers shall deliver (or cause such Consultant to deliver) to Agent all work product produced by such Consultant promptly after such work product is delivered by such Consultant to Borrowers.
(b)     Borrowers shall deliver to Agent weekly (no later than the second Business Day of each calendar week) statements of cash flow (“Weekly Cash Flow Reporting”) until such time as Agent, in its sole discretion, provides written notice to Borrowers that the Weekly Cash Flow Reporting shall terminate; provided, that Agent shall not be required to terminate Weekly Cash Flow Reporting and any termination thereof shall not prohibit Agent from reinstating Weekly Cash Flow Reporting by written notice to Borrowers at such time Agent deems necessary and/or appropriate.

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(c)    On or before December 31, 2020 (or such later date as agreed upon in writing by Agent in Agent’s sole discretion), Borrowers shall (i) consummate a Permitted Fixed Asset Loan from Ameristate Bank (“Ameristate”) secured by a Permitted Fixed Asset Lien on certain Real Property as approved by Agent in its Permitted Discretion (such Real Property, the “Specified Real Property”), (ii) shall deliver appraisals with respect to the Specified Real Property, each performed by an appraiser reasonably acceptable to Agent, to Agent, (iii) shall have paid all Net Cash Proceeds of such Permitted Fixed Asset Loan, in the minimum amount equal to $9,000,000, to Agent for application to the Obligations in accordance with the terms of the Credit Agreement, (iv) to cause Ameristate to execute and deliver a mortgagee’s waiver in form and substance acceptable to Agent, and (v) shall have satisfied all Partial Release Conditions with respect to such Real Property.
(d)     On or before December 31, 2020 (or such later date as agreed upon in writing by Agent in Agent’s sole discretion), Borrowers shall (i) consummate a Permitted Fixed Asset Loan from Greater Nevada Credit Union secured by a Permitted Fixed Asset Lien on certain Equipment as approved by Agent in its Permitted Discretion (such Equipment, the “Specified Equipment”), (ii) shall deliver appraisals with respect to the Specified Equipment, each performed by an appraiser reasonably acceptable to Agent, to Agent, (iii) shall have paid all Net Cash Proceeds of such Permitted Fixed Asset Loan, in the minimum amount equal to $13,500,000, to Agent for application to the Obligations in accordance with the terms of the Credit Agreement, and (iv) shall have satisfied all Partial Release Conditions with respect to such Specified Equipment.
The foregoing post-closing covenants in this Section 4.1 amend and restate the post-closing covenants set forth in Section 5.1 of the Fourteenth Amendment.
4.2.    Strict Compliance.  Borrower shall strictly comply with all of the obligations, covenants, terms, and provisions of this Agreement and the Loan Documents, including, without limitation, the Post-Effective Date Covenants, in a prompt, timely, and faithful manner.
V.    MISCELLANEOUS.

5.1.    No Additional Obligations.  The Borrowers acknowledge and agree that the execution, delivery and performance of this Agreement shall not create (nor shall the Borrowers rely upon the existence of or claim or assert that there exists) any obligation of any of Agent or Lenders to consider or agree to any other amendment of or waiver or consent with respect to the Credit Agreement or any other instrument or agreement to which Agent or any Lender is a party (collectively, an “Additional Amendment” or “Consent”), and in the event that Agent and the Lenders subsequently agree to consider any requested Additional Amendment or Consent, neither the existence of this Agreement nor any other conduct of Agent or the Lenders related hereto, shall be of any force or effect on the Lenders’ consideration or decision with respect to any such requested Additional Amendment or Consent, and the Lenders shall not have any obligation whatsoever to consider or agree to any such Additional Amendment or Consent.

5.2.    Acknowledgments and Stipulations.  In order to induce Agent and Lenders to enter into this Agreement, each Borrower acknowledges, stipulates and agrees that (a) the Loan Documents executed by each Borrower are legal, valid and binding obligations of such Borrower enforceable against such Borrower in accordance with their respective terms, except as enforcement may be limited by equitable principles or by bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or limiting creditors’ rights generally; (b) the Liens granted by each Borrower to Agent in the Collateral are valid and duly perfected, first priority Liens, subject only to Permitted Liens; (c) each of the recitals contained at the beginning of this Agreement is true and correct; and (d) prior to executing this Agreement, each Borrower consulted with and had 

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10.1

the benefit of advice of legal counsel of its own selection and has relied upon the advice of such counsel, and in no part upon the representation of Agent, any Lender or any counsel to Agent or any Lender concerning the legal effects of this Agreement or any provision hereof.

5.3.    Additional Representations and Warranties of the Borrowers.  Each Borrower hereby represents and warrants that on the date hereof and after giving effect to the amendments and waivers contained herein:  (a) the representations and warranties contained in Section 4 of the Credit Agreement shall be correct in all material respects on and as of such date as though made on and as of such date, and (b) no Default or Event of Default exists under the Credit Agreement on and as of such date.  Without limitation of the preceding sentence, each Borrower hereby expressly re-affirms the validity, effectiveness and enforceability of each Loan Document to which it is a party (in each case, as the same may be modified by the terms of this Agreement).  

5.4.    Effect of this Agreement.  Except as expressly amended pursuant hereto, no other changes or modifications to the Credit Agreement or any of the other Loan Documents are intended or implied, and in all other respects, the Credit Agreement and each of the other Loan Documents is hereby specifically ratified, restated and confirmed by all parties hereto as of the date hereof.  To the extent that any provision of the Credit Agreement or any of the other Loan Documents is inconsistent with the provisions of this Agreement, the provisions of this Agreement shall control.  All references in the Credit Agreement (including without limitation the Schedules thereto) to the “Agreement” and all references in the other Loan Documents to the “Credit Agreement” shall be deemed to refer to the Credit Agreement, as amended hereby.

5.5.    Further Assurances.  The Loan Parties shall execute and deliver such additional documents and take such additional action as may be reasonably requested by Agent to effectuate the provisions and purposes hereof.

5.6.    Governing Law.  THE VALIDITY OF THIS AGREEMENT, THE CONSTRUCTION, INTERPRETATION, AND ENFORCEMENT HEREOF, THE RIGHTS OF THE PARTIES HERETO WITH RESPECT TO ALL MATTERS ARISING HEREUNDER OR RELATED HERETO, AND ANY CLAIMS, CONTROVERSIES OR DISPUTES ARISING HEREUNDER OR RELATED HERETO SHALL BE DETERMINED UNDER, GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF GEORGIA.

5.7.    Binding Effect.  This Agreement shall bind and inure to the benefit of the respective successors and permitted assigns of each of the parties hereto.

5.8.    Counterparts; Electronic Execution.  This Agreement may be executed by means of (a) an electronic signature that complies with the federal Electronic Signatures in Global and National Commerce Act, state enactments of the Uniform Electronic Transactions Act, or any other relevant and applicable electronic signatures law; (b) an original manual signature; or (c) a faxed, scanned, or photocopied manual signature.  Each electronic signature or faxed, scanned, or photocopied manual signature shall for all purposes have the same validity, legal effect, and admissibility in evidence as an original manual signature.  The Agent reserves the right, in its sole discretion, to accept, deny, or condition acceptance of any electronic signature on this Agreement.  This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but such counterparts shall, together, constitute only one instrument.  Delivery of an executed counterpart of a signature page of this Agreement as set forth herein will be as effective as delivery of a manually executed counterpart of the Agreement.  Each of the parties hereto represents and warrants to the other parties that it has the corporate capacity and authority to execute the Agreement through electronic means and there are no restrictions for doing so in that party’s constitutive documents.

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5.9.    Release of Claims.  In consideration of the agreements contained hereunder, each Borrower hereby irrevocably releases and forever discharges Agent, each Lender and their respective affiliates, subsidiaries, successors, assigns, directors, officers, employees, agents, consultants and attorneys (each, a “Released Person”) of and from any and all claims, suits, actions, investigations, proceedings or demands, whether based in contract, tort, implied or express warranty, strict liability, criminal or civil statute or common law of any kind or character, known or unknown, which such Borrower ever had or now has against Agent, any Lender or any other Released Person which relates, directly or indirectly, to any acts or omissions of Agent, any Lender or any other Released Person relating to the Credit Agreement or any other Loan Document on or prior to the date hereof.

[Continued on following page.]

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Each of the parties hereto has caused a counterpart of this Agreement to be duly executed and delivered as of the date first above written.

						
	BORROWERS:	THE DIXIE GROUP, INC.

By:/s/ Jon A. Faulkner
Name:  Jon A. Faulkner 
Title:  Vice President

		TDG OPERATIONS, LLC

By:/s/ Jon A. Faulkner
Name:  Jon A. Faulkner 
Title:  Vice President and Manager

						
	AGENT AND LENDERS:	WELLS FARGO CAPITAL FINANCE, LLC, 
as Agent and as a Lender

By:/s/ Zachary S. Buchanan
Name:  Zachary S. Buchanan
Title:  Authorized Signatory

						
		BANK OF AMERICA, N.A.,
as a Lender

By:/s/ Todd Tarrance
Name:  Todd Tarrance
Title:  Senior Vice PresidentExhibit
10.1

 

Execution
Version

 

SECOND
AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

 

This
SECOND AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this
“Amendment”) is made and entered into as of October 1, 2020 (the “Amendment Closing Date”)
by and among Bacterin International, Inc., a Nevada corporation (“Bacterin”),
X-SPINE SYSTEMS, INC., an Ohio corporation (“X-Spine” or the “Additional Delayed Draw Borrower”
and, together with Bacterin, the “Borrower”), ROS acquisition offshore
lp, a Cayman Islands Exempted Limited Partnership (together with its Affiliates, successors, transferees and assignees,
“ROS” and in its capacity as administrative agent, the “Administrative Agent”), ORBIMED
ROYALTY OPPORTUNITIES II, LP, a Delaware limited partnership (together with its Affiliates, successors, transferees and assignees,
“Royalty Opportunities” and together with ROS, each individually a “Lender” and collectively,
the “Lenders”), and, in their respective capacities as Guarantors under the Credit Agreement (as defined below),
XTANT MEDICAL HOLDINGS, INC., a Delaware corporation (“Holdings”), and XTANT MEDICAL, INC., a
Delaware corporation (“Xtant” and, along with Holdings and each Subsidiary thereof, collectively, the “Guarantors”).

 

WHEREAS,
the Borrower, Holdings, Xtant, the Administrative Agent and the Lenders are party to that certain Second Amended and Restated
Credit Agreement, dated as of March 29, 2019 (as amended by that certain First Amendment to Second Amended and Restated Credit
Agreement, dated as of April 1, 2020, the “Credit Agreement” and as amended by this Amendment, the “Amended
Credit Agreement”), pursuant to which (i) the Lenders have extended credit to the Borrower on the terms set forth therein
and (ii) each Lender has appointed ROS as the administrative agent for the Lenders;

 

WHEREAS,
Holdings, ROS and Royalty Opportunities are party to that certain Restructuring and Exchange Agreement, dated as of August 7,
2020 (the “Restructuring and Exchange Agreement”), pursuant to which ROS and Royalty Opportunities have agreed
to exchange approximately $40.8 million of the aggregate outstanding principal amount of the Loans and, without duplication, approximately
$21.1 million of the outstanding amount of PIK Interest (such Loans and PIK Interest, the “Exchanging Loans”)
plus all other accrued and unpaid interest on the Exchanging Loans outstanding on the Amendment Closing Date for shares of common
stock of Holdings at an exchange price of $1.07 per share, with a portion of the prepayment fee payable in respect of the Exchanging
Loans, payable under Section 3.2 of the Credit Agreement, to be deemed a loan made on the Amendment Closing Date under
the Amended Credit Agreement in the aggregate principal amount of $556,149.86 (such amount, the “Prepayment Fee Loan
Amount”) and a portion of the prepayment fee payable in respect of the Exchanging Loans, payable under Section 3.2
of the Credit Agreement, to be paid to ROS as shares of common stock of Holdings at an exchange price of $1.07 per share;

 

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

 

WHEREAS,
the Borrower and the Lenders desire to (i) amend certain provisions of the Credit Agreement, (ii) extinguish an aggregate principal
amount of Indebtedness under the Credit Agreement equal to the aggregate principal amount of the Exchanging Loans plus all accrued
and unpaid interest on the Exchanging Loans and (iii) add an additional tranche of Loans (as defined in the Amended Credit Agreement)
to the Amended Credit Agreement in an aggregate principal amount equal to the Prepayment Fee Loan Amount, in each case, 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.       Amendment
to Introduction. The first paragraph of the Credit Agreement is is hereby amended and restated in its entirety as follows:

 

“THIS
SECOND AMENDED AND RESTATED CREDIT AGREEMENT, dated as of March 29, 2019 (as amended, restated, amended and restated, supplemented
or otherwise modified from time to time, this “Agreement”), is by and among BACTERIN INTERNATIONAL, INC., a
Nevada corporation (“Bacterin”), X-SPINE SYSTEMS, INC., an Ohio corporation (the “Additional Delayed
Draw Borrower” and, together with Bacterin, the “Borrower”), ROS
Acquisition Offshore LP, a Cayman Islands Exempted Limited Partnership (together with its Affiliates, successors, transferees
and assignees, “ROS”), as lender and as “Administrative Agent” for the lenders pursuant
to Section 10.1.1 hereof, and ORBIMED ROYALTY OPPORTUNITIES II, LP, a Delaware limited partnership (together with its Affiliates,
successors, transferees and assignees, “Royalty Opportunities” and together with ROS, each individually an
“Initial Lender” and collectively, the “Initial Lenders”) and, in their capacity as Guarantors,
XTANT MEDICAL HOLDINGS, INC., a Delaware corporation (“Holdings”) and XTANT MEDICAL, INC., a Delaware corporation.”

 

3.       Amendment
to Recitals. (a) The first “Whereas” clause of the Credit Agreement is amended by deleting “$10,000,000”
and replacing it with “$5,000,000”.

 

(b)
The second “Whereas” clause of the Credit Agreement is amended by deleting “extend the Existing Commitment,”
therefrom.

 

4.       Amendments
to Section 1.1. (a) Section 1.1 of the Credit Agreement is hereby amended by adding the following definitions thereto
in appropriate alphabetical order:

 

“Initial
Lender” and “Initial Lenders” are each defined in the preamble.

 

“Second
Amendment” means that certain Second Amendment to Second Amended and Restated Credit Agreement, dated as of October
1, 2020, by and among the Borrower, the Guarantors party thereto, the Administrative Agent and the Lenders.

 

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“Second
Amendment Closing Date” means October 1, 2020.

 

“Second
Amendment Commitment Amount” means, $556,149.86, in the aggregate for all Lenders, allocated $0.00 to ROS and $556,149.86
to Royalty Opportunities.

 

“Second
Amendment Loans” means Loans made by the Lenders on the Second Amendment Closing Date pursuant to Section 2.1
of this Agreement.

 

(b)
Section 1.1 of the Credit Agreement is hereby amended by amending and restating the following definitions in their entirety:

 

“Additional
Second Delayed Draw Commitment Amount” means $5,000,000, in the aggregate for all Lenders, allocated $0.00 to ROS and
$5,000,000 to Royalty Opportunities.

 

“Commitment”
means the Additional Second Delayed Draw Commitment.

 

“Continuing
Loans” means (i) the Continuing Loans (as such term is defined in the Existing Credit Agreement), (ii) the 2015 Loans
and (iii) the Tranche A Loan, in each case, made to the Borrower pursuant to the Existing Credit Agreement and continued under
this Agreement pursuant to Section 2.1.

 

“Lenders”
means the Initial Lenders, any lender with a Commitment or a Second Amendment Loan and any other Person that becomes a party hereto
pursuant to an assignment and assumption, other than any such Person that ceases to be a party hereto pursuant to an assignment
and assumption or as a result of any termination of Commitments and/or prepayment or repayment of Loans permitted or required
hereunder.

 

“Loan
Documents” means, collectively, this Agreement, the Notes, the Security Agreement, each other agreement pursuant to
which the Administrative Agent, for its benefit and the benefit of the Lenders, is granted a Lien to secure the Obligations (including
any mortgages entered into pursuant to Section 7.8), the Guarantee, and each other agreement, certificate, document or
instrument delivered in connection with any Loan Document, whether or not specifically mentioned herein or therein.

 

“Loans”
means (i) the Continuing Loans, (ii) the Additional Second Delayed Draw Loans and (iii) the Second Amendment Loans.

 

“Proportionate
Share” means with respect to all matters (including, without limitation, the indemnification obligations arising under
Section 11.4) arising under or in connection with this Agreement or any other Loan Document, 0.0% for ROS and 100.0% for
Royalty Opportunities, such percentages to be adjusted commensurate with any permitted assignment by any Lender of its rights
and interests hereunder.

 

(c)
Section 1.1 of the Credit Agreement is hereby amended by deleting the following definitions in their entirety: “Additional
Delayed Draw Closing Date”, “Additional Delayed Draw Commitment Amount”, “Additional Delayed Draw Loan”,
“Existing Commitment” and “Lender”.

 

    	-3-

    	 

    

 

5.       Amendments
to Section 2.1. Section 2.1 of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

“SECTION
2.1 Second Amendment Closing Date Transactions. Subject to the terms and conditions set forth herein, (a) Royalty Opportunities
will continue as a Lender under this Agreement and (b) Royalty Opportunities shall be deemed to have made a Second Amendment Loan
to the Borrower on the Second Amendment Closing Date in a principal amount equal to its Second Amendment Commitment Amount, with
the result that Royalty Opportunities will hold on the Second Amendment Closing Date, after giving effect to the transactions
provided for in the Second Amendment, the Continuing Loans and Second Amendment Loans in the amounts set forth as Loans of such
Lender on Schedule 2.1, which Schedule also sets forth as of the Second Amendment Closing Date (a) the un-borrowed amount
of the Additional Second Delayed Draw Commitment Amount and (b) the amount of any accrued and unpaid cash interest on the Continuing
Loans. Amounts paid or prepaid in respect of the Loans may not be reborrowed. The Second Amendment Commitment Amount of Royalty
Opportunities shall expire on the Second Amendment Closing Date when the Second Amendment Loans shall have been deemed made to
the Borrower.”

 

6.       Amendments
to Section 2.2. Section 2.2 of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

“SECTION
2.2 Loans and Borrowing. Each Loan outstanding on the Second Amendment Closing Date, after giving effect to the transactions
provided for in Section 2.1, shall be part of a borrowing consisting of Loans held by Royalty Opportunities.”

 

7.       Amendment
to Section 2.6. Section 2.6 of the Credit Agreement is hereby deleted in its entirety and replaced with “[Intentionally
Omitted.]”.

 

8.       Amendments
to Section 3.2. The last paragraph of Section 3.2 of the Credit Agreement is hereby amended and restated in its
entirety as follows:

 

“At
such time as the Borrower pays, prepays or repays, or is required to pay, prepay or repay, any principal amount of the Loans (other
than the Continuing Loans and the Second Amendment Loans), whether on the Maturity Date or otherwise, whether voluntarily or involuntarily
(if involuntarily, whether required by this Agreement or any other Loan Document) and whether before or after acceleration of
the Obligations, including without limitation any payment pursuant to any provision of this Section 3.2, the Borrower shall
pay to each Lender, a fee in the amount equal to 2.00% of the aggregate principal amount of such payment, prepayment or repayment
to such Lender.”

 

9.       Amendments
to Section 3.4(g). Section 3.4(g) of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

“(g)
From and after October 1, 2020 until the Maturity Date, interest payable in cash by the Borrower shall accrue on the Loans during
such period at a rate per annum equal to the sum of (1) 7.00% plus (2) the higher of (x) the LIBO Rate for such Interest Period
and (y) 1.00%.”

 

    	-4-

    	 

    

 

10.       Amendment
to Section 5.2. Section 5.2 of the Credit Agreement is hereby deleted in its entirety and replaced with “[Intentionally
Omitted.]”.

 

11.       Amendment
to Section 5.3. The first clause of Section 5.3 of the Credit Agreement is hereby amended and restated in its entirety
as follows:

 

“The
making of each Additional Second Delayed Draw Loan by the Lenders shall be in the sole and absolute discretion of the Lenders,
collectively, and subject to the satisfaction (or waiver in writing by each Lender) of each of the following conditions precedent
and such other conditions as each Lender may require in its sole and absolute discretion:”

 

12.       Amendment
to Section 8.4(b). Section 8.4(b) of the Credit Agreement is hereby deleted in its entirety and replaced with “[Intentionally
Omitted.]”.

 

13.       Amendment
to Section 10.1.4. The first sentence of Section 10.1.4 of the Credit Agreement is hereby amended and restated
in its entirety as follows:

 

“The
Administrative Agent may resign as such at any time upon notice to the Borrower and all the Lenders.”

 

14.      Amendment
to Schedule 2.1. Schedule 2.1 to the Credit Agreement is hereby replaced with Schedule 2.1 attached
hereto, and “Schedule 2.1Continuing Loans” in the Table of Contents is hereby replaced with “Schedule
2.1 Loans”.

 

15.       Exchange
of the Exchanging Loans. Upon (a) issuance to (i) ROS of (X) 45,867,426 Resulting Shares (as defined in the Restructuring
and Exchange Agreement) in respect of the Exchanging Loans held by ROS plus all accrued and unpaid interest on such Exchanging
Loans and (Y) 917,349 shares of common stock of Holdings in respect of the portion of the prepayment fee payable to ROS, under
Section 3.2 of the Credit Agreement, in respect of the Exchanging Loans and (ii) Royalty Opportunities of 11,969,619 Resulting
Shares (as defined in the Restructuring and Exchange Agreement) in respect of the Exchanging Loans held by Royalty Opportunities
plus all accrued and unpaid interest on such Exchanging Loans, and (b) the Second Amendment Loans (as defined in the Amended Credit
Agreement) having been deemed made to the Borrower on the Second Amendment Closing Date in an aggregate principal amount equal
to the Prepayment Fee Loan Amount, the entire aggregate principal amount of the Exchanging Loans, plus all accrued and unpaid
interest on the Exchanging Loans, will be exchanged, in whole and not in part, into 100% ownership of the Resulting Shares (as
defined in the Restructuring and Exchange Agreement) and the Obligations of the Borrower and the Guarantors in respect of the
Exchanging Loans (which Obligations shall include the prepayment fee in respect of the Exchanging Loans, payable under Section
3.2 of the Credit Agreement, and all accrued and unpaid interest on the Exchanging Loans) shall be extinguished.

 

16.       Conditions
to Effectiveness of Amendment. This Amendment shall become effective upon (a) 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
the Borrower, the Lenders, the Administrative Agent and the Guarantors and (b) the issuance by Holdings, on the Amendment Closing
Date, of (i) to ROS, 46,784,775 shares of common stock of Holdings and (ii) to Royalty Opportunities, 11,969,619 shares of common
stock of Holdings.

 

    	-5-

    	 

    

 

17.       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.

 

18.       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, except
that the representations and warranties limited by their terms to a specific date shall be true and correct as of such date.

 

(b)       Before
and after giving effect to this Amendment, no Default or Event of Default under the Credit Agreement has occurred or will occur
or be continuing.

 

19.       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.

 

20.       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:

 

(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

 

    	-6-

    	 

    

 

(b)       FOREVER
RELEASE, RELIEVE, AND DISCHARGE THE ADMINISTRATIVE AGENT, THE LENDERS, THEIR OFFICERS, DIRECTORS, SHAREHOLDERS, MEMBERS, PARTNERS,
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 AMENDMENT
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 AMENDMENT
IS A BAR TO ANY SUCH CLAIM, ACTION, SUIT, OR PROCEEDING.

 

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

 

    	-7-

    	 

    

 

(f)       THE
RELEASING PARTIES ACKNOWLEDGE THAT THEY HAVE HAD THE BENEFIT OF INDEPENDENT LEGAL ADVICE WITH RESPECT TO THE ADVISABILITY OF ENTERING
INTO THIS RELEASE AND HEREBY KNOWINGLY, AND UPON SUCH ADVICE OF COUNSEL, WAIVE ANY AND ALL APPLICABLE RIGHTS AND BENEFITS UNDER,
AND PROTECTIONS OF, CALIFORNIA CIVIL CODE SECTION 1542, AND ANY AND ALL STATUTES AND DOCTRINES OF SIMILAR EFFECT. CALIFORNIA CIVIL
CODE SECTION 1542 PROVIDES AS FOLLOWS:

 

A
general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her
favor at the time of executing the release, and that if known by him or her, would have materially affected his or her settlement
with the debtor or released party.

 

21.       Counterparts;
Governing Law. This Amendment may be executed in any number of counterparts and by different parties hereto on separate
counterparts, each of which when so executed and delivered shall be an original, but all of such 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”, “tiff” or similar format) shall be effective as delivery of
a manually executed counterpart of this Amendment. THIS AMENDMENT AND ANY CLAIMS, CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER
IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO 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.]

 

    	-8-

    	 

    

 

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/
    Sean Browne
	 	Name:	Sean
    Browne
	 	Title:	President,
    CEO
	 	 
	 	XTANT
                                         MEDICAL HOLDINGS, INC.,

        as
        a Guarantor

	 	 
	 	By:	/s/
    Sean Browne
	 	Name:	Sean
    Browne
	 	Title:	President,
    CEO
	 	 
	 	X-SPINE
                                         SYSTEMS, INC.,

        as
        a Guarantor and the Additional Delayed Draw Borrower

	 	 
	 	By:	/s/
    Sean Browne
	 	Name:	Sean
    Browne
	 	Title:	President,
    CEO
	 	 
	 	XTANT
                                         MEDICAL, INC.,

        as
        a Guarantor

	 	 
	 	By:	/s/
    Sean Browne
	 	Name:	Sean
    Browne
	 	Title:	President,
    CEO

 

Signature
Page to Second Amendment to Second A&R Credit Agreement

 

    	 

    	 

    

 

	 	ROS
    Acquisition Offshore LP,

    as the Administrative Agent and as a Lender
	 	 
	 	By:
    OrbiMed Advisors LLC, solely in its
	 	capacity
    as Investment Manager
	 	 
	 	By:	W.
    Carter Neild
	 	Name:	W.
    Carter Neild
	 	Title:	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:	W.
    Carter Neild
	 	Name:	W.
    Carter Neild
	 	Title:	Member
    

 

Signature
Page to Second Amendment to Second A&R Credit Agreement

 

    	 

    	 

    

 

Schedule
2.1

 

Loans

 

	Continuing Lender	 	Continuing 
 Loans1
	 	 	Second
 Amendment
 Loans
	 	 	Un-Borrowed

 Additional

 Second Delayed

 Draw 

Commitment

 Amount	 	 	Accrued and 
 Unpaid Cash 
 Interest on the 
 Continuing Loans	 
	ROS Acquisition Offshore LP	 	$	0.00	 	 	$	0.00	 	 	$	0.00	 	 	$	0.00	 
	OrbiMed Royalty Opportunities II, LP	 	$	15,000,000	 	 	$	556,149.86	 	 	$	5,000,000	 	 	$	0.00	 
	Total:	 	$	15,000,000	 	 	$	556,149.86	 	 	$	5,000,000	 	 	$	0.00	 

 

 

1
Note: Continuing Loans includes PIK Interest and Optional PIK Interest which has been added to the outstanding principal
amoacunt of the Continuing Loans prior to the Second Amendment Closing Date.

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