Document:

EX-4.8

 Exhibit 4.8 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT , MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS NOT MATERIAL AND WOULD LIKELY CAUSE
COMPETITIVE HARM TO AVADIM HEALTH, INC. IF PUBLICLY DISCLOSED. 
 AMENDMENT NO. 3 TO CREDIT AGREEMENT* 

THIS AMENDMENT NO. 3 TO CREDIT AGREEMENT (this “Amendment”), is made and entered into as of December 31, 2019, by
and among AVADIM HEALTH, INC., a Delaware corporation (the “Borrower”), the Guarantors (capitalized terms used, but not defined in this preamble and the recitals below have the meanings given to them in
Section 1 below), the Lenders party hereto and HAYFIN SERVICES LLP (in its individual capacity, “HFS”), as administrative agent (in such capacity, including any successor thereto, the
“Administrative Agent”) and as collateral agent (in such capacity, including any successor thereto, the “Collateral Agent”) for the Lenders. 

PRELIMINARY STATEMENT: 

WHEREAS, pursuant to that certain Credit Agreement, dated as of October 5, 2018 (as amended by Amendment No. 1 to Credit
Agreement dated as of June 14, 2019 and as amended by Amendment No. 2 to Credit Agreement and Limited Waiver dated as of September 25, 2019 or otherwise modified prior to the date hereof, the “Existing Credit
Agreement”; the Existing Credit Agreement, as amended by this Amendment, and as the same may be further amended, restated, extended, supplemented or otherwise modified from time to time, the “Credit Agreement”), by
and among the Borrower, the Lenders from time to time party thereto, the Administrative Agent and the Collateral Agent, the Lenders committed to make certain loans and other financial accommodations to the Borrower upon the terms and conditions set
forth therein; and 
 WHEREAS, the Borrower and the other Loan Parties have requested that the Administrative Agent and the Lenders
amend certain provisions of the Existing Credit Agreement to, among other things, amend and restate certain covenants appearing therein to allow for the issuance of the 2019 Convertible Notes (as defined in the Credit Agreement), and subject to the
terms and conditions of this Amendment, the Administrative Agent and the Lenders have agreed to make such amendments; 
 NOW,
THEREFORE, in consideration of the premises, the covenants and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, pursuant to Section 9.08 of the Existing
Credit Agreement, the Borrower, the Guarantors, the Required Lenders and the Administrative Agent do hereby agree as follows: 

1.    DEFINITIONS. 

a.    Definitions. The following terms (whether or not underscored) when used in this Amendment, including its
preamble and recitals, shall have the following meanings (such definitions to be equally applicable to the singular and plural forms thereof): 

“Administrative Agent” is defined in the preamble. 

“Amendment” is defined in the preamble. 

 

	*	 Exhibits and schedules have been omitted pursuant to Item 601(a)(5) of Regulation S-K and will be furnished on
a supplemental basis to the Securities and Exchange Commission upon request. 

 “Borrower” is defined in the preamble. 

“Credit Agreement” is defined in the recitals. 

“Existing Credit Agreement” is defined in the recitals. 

“Lenders” means each lender from time to time party to the Credit Agreement. 

“Third Amendment Effective Date” means the date on which the conditions precedent to the effectiveness of this
Amendment as specified in Section 3 herein have been satisfied. 
 b.    Other
Definitions. Unless otherwise defined herein or the context otherwise requires, capitalized terms used in this Amendment, including its preamble and recitals, have the meanings provided in the Existing Credit Agreement, as amended by this
Amendment. 
 c.    Other Interpretive Provisions. The rules of construction in Section 1.02 of the
Credit Agreement shall be equally applicable to this Amendment. 
 2.    AMENDMENTS TO THE CREDIT AGREEMENT.
Subject to the terms and conditions of this Amendment, including, without limitation, the satisfaction of the conditions precedent specified in Section 3 below, the Existing Credit Agreement is hereby amended as follows
(and is hereby waived as provided in clause (h) below): 
 a.    Section 1.01 of the Existing Credit
Agreement, Defined Terms, is hereby amended by adding the following new definitions in proper alphabetical order: 

“2019 Convertible Notes” means those certain convertible notes of the Borrower issued pursuant to the 2019
Convertible Notes Documentation in an aggregate principal amount up to $10,000,000; provided that such 2019 Convertible Notes (i) shall at all times remain unsecured, (ii) shall not mature at any time prior to the later of
January 4, 2024 or the date that is at least 91 days after the Latest Maturity Date, (iii) shall not require any cash interest payments prior to maturity, but may accrue interest prior to maturity that may be paid in-kind, and (iv) shall be subordinated in right of payment to the Loans and the other Obligations upon terms and documentation acceptable to the Administrative Agent. 

“2019 Convertible Notes Documentation” means the documentation in the form attached as Exhibit A to the Third
Amendment and upon such other terms and conditions satisfactory to the Administrative Agent. 
 “Third
Amendment” means that certain Amendment No. 3 to Credit Agreement, dated as of December 31, 2019, by and among the Borrower, the other Loan Parties party thereto, the Lenders party thereto and the Administrative Agent. 

b.    Section 1.01 of the Existing Credit Agreement, Defined Terms, is hereby further amended by amending
and restating the following definitions therein: 
 “Total Leverage Ratio” shall mean, on any date, the
ratio of (i) Consolidated Indebtedness (excluding Indebtedness pursuant to the 2019 Convertible Notes) on such date to (ii) Consolidated EBITDA for the Test Period most recently ended on or prior to such date. 

  
 -2- 

 c.    Section 6.01 of the Existing Credit Agreement,
Indebtedness, is hereby amended by deleting the word “and” at the end of clause (m), deleting the period and adding a semicolon and the word “and” at the end of clause (n), and adding the following new clause (o): 

“(o)    the 2019 Convertible Notes.” 

d.    Section 6.09(b) of the Existing Credit Agreement, Other Indebtedness and Agreements, is hereby amended
by deleting such clause (b) in its entirety and replacing it with the following new clause (b): 

“(b)    Directly or indirectly change or amend the terms of any Indebtedness subordinated to the
Obligations (if any), without the prior written consent of the Administrative Agent.” 
 e.    Section
6.09(c) of the Existing Credit Agreement, Other Indebtedness and Agreements, is hereby amended by deleting such clause (c) in its entirety and replacing it with the following new clause (c): 

“(c)    Make any distribution, whether in cash, property, securities or a combination thereof, in
respect of, or pay, or commit to pay, or directly or indirectly redeem, repurchase, retire or otherwise acquire for consideration, or set apart any sum for the aforesaid purposes, any Indebtedness subordinated to the Obligations (if any) or
Indebtedness secured by a junior priority Lien, except (i) regularly scheduled payments of interest paid in-kind as and when due; provided that such payment is not prohibited by any subordination
provisions applicable thereto, (ii) payments of intercompany Indebtedness permitted under Section 6.01, and (iii) solely with respect to the 2019 Convertible Notes, the conversion of the 2019 Convertible Notes into Common Stock of the
Borrower pursuant to the terms of the 2019 Convertible Notes Documentation.” 
 f.    Section 6.10(b) of the
Existing Credit Agreement, Minimum Consolidated EBITDA, is hereby amended by deleting such clause (b) in its entirety and replacing it with the following new clause (b): 

“(b)    Minimum Consolidated EBITDA. Commencing with the fiscal quarter ending
December 31, 2018 and ending on the earlier of (x) the last fiscal quarter ending prior to the Maturity Date and (y) the last fiscal quarter ending prior to the effective date of a Qualified Public Offering and for which financial
statements are required to be delivered pursuant to Section 5.04(c) prior to that Qualified Public Offering, permit the Consolidated EBITDA of the Borrower and its Subsidiaries for the twelve consecutive month period ended
on the last day of each fiscal quarter set forth below to be less than the amount set forth opposite the last day of such fiscal quarter: 
  

					
	
Fiscal Quarter Ending on or About
	  	Minimum EBITDA	 
	 December 31, 2018
	  	$	[***	] 
	 March 31, 2019
	  	$	[***	] 
	 June 30, 2019
	  	$	[***	] 
	 September 30, 2019
	  	$	[***	] 
	 December 31, 2019
	  	$	[***	] 
	 March 31, 2020
	  	$	[***	] 
	 June 30, 2020
	  	$	[***	] 
	 September 30, 2020
	  	$	[***	] 
	 December 31, 2020
	  	$	[***	] 
	 March 31, 2021
	  	$	[***	] 

  
 -3- 

					
	
Fiscal Quarter Ending on or About
	  	Minimum EBITDA	 
	 June 30, 2021
	  	$	[***	] 
	 September 30, 2021
	  	$	[***	] 
	 December 31, 2021
	  	$	[***	] 
	 March 31, 2022
	  	$	[***	] 
	 June 30, 2022
	  	$	[***	] 
	 September 30, 2022
	  	$	[***	] 
	 December 31, 2022
	  	$	[***	] 
	 March 31, 2023
	  	$	[***	] 
	 June 30, 2023 and the last day of each fiscal quarter ending thereafter
	  	$	[***	] 

 g.    Line A of the Calculation of Total Leverage Ratio set forth on Attachment 3 to
Exhibit E to the Credit Agreement, Form of Compliance Certificate, is hereby amended by adding “(excluding Indebtedness pursuant to the 2019 Convertible Notes)” after the words “Consolidated Indebtedness”. Attached hereto
as Annex I is Exhibit E, as so amended. 
 h.    Any noncompliance with the requirements of Section 6.10(b), as in
effect before giving effect to this Amendment, for the period ending December 31, 2019, that may have occurred at any time prior to the time this Amendment becomes effective, and any Event of Default under Section 7.01(d) that may have
occurred solely as a direct result of such noncompliance, is hereby waived. 
 3.    CONDITIONS PRECEDENT TO
EFFECTIVENESS OF THIS AMENDMENT. The effectiveness of this Amendment, including, without limitation, the amendments provided in Section 2 above, is subject to the satisfaction of the following conditions precedent (the
date on which such conditions are satisfied is herein referred to as the “Third Amendment Effective Date”): 

(a)    The Administrative Agent’s receipt of the following, each of which shall be originals or telecopies or
“.pdf” or “.tif” copies unless otherwise specified, each properly executed by a Responsible Officer of the signing Loan Party, each dated the Third Amendment Effective Date (or, in the case of certificates of governmental
officials, a recent date before the Third Amendment Effective Date): 
 (i)    one or more counterparts
of this Amendment duly executed and delivered by Borrower, the Guarantors, the Administrative Agent and the Lenders; 

(ii)    (1) a certificate of the Secretary, Assistant Secretary or other Responsible Officer of each Loan
Party dated the Third Amendment Effective Date and certifying (A) that attached thereto is a copy of the certificate or articles of incorporation or organization or articles of association or other constituting document, including all
amendments thereto, of each Loan Party, as certified as of a recent date by the Secretary of State of the state of its organization (or a certification by such Responsible Officer that there have been no amendments to such constituting document
since the Second Amendment Effective Date), (B) that attached thereto is a true and complete copy of the by-laws or other governing document of such Loan Party as in effect on the Third Amendment Effective
Date and at all times since a date prior to the date of the resolutions described in clause (C) below, (C) that attached thereto is a true and complete copy of resolutions duly adopted by the Board of Directors or similar governing body of such
Loan Party authorizing the execution, delivery and performance of the Loan Documents, as amended by this Amendment, to which such Person is a party and that such resolutions have not been modified, rescinded or amended and are in full force and
effect, (D) that the certificate or articles of incorporation or organization or other constituting documents of 

  
 -4- 

 
such Loan Party have not been amended since the date of the last amendment thereto shown on the certificate or articles of incorporation or organization furnished pursuant to clause
(A) above, (E) that attached thereto is a true and complete copy of the good standing certificate (or equivalent) of such Loan Party under the laws of its jurisdiction of incorporation, organization or formation (or equivalent), as applicable,
and (F) to the extent applicable in the Relevant Jurisdiction, as to the incumbency and signature of each officer executing this Amendment, any other Loan Document or any other document delivered in connection herewith on behalf of such Loan
Party, and (2) to the extent applicable in the Relevant Jurisdiction, a certificate of another officer as to the incumbency and signature of the Secretary, Assistant Secretary or other Responsible Officer executing the certificate pursuant to
clause (1) above; 
 (iii)    officer’s certificate, dated the Third Amendment Effective Date
and signed by a Financial Officer of the Borrower, confirming compliance with the conditions precedent set forth in this Section 3. 

(b)    All representations and warranties by any Loan Party contained in this Amendment, in the Credit Agreement and in
any other Loan Document are true and correct in all material respects (without duplication of any materiality qualifier contained therein) as of the Third Amendment Effective Date, except to the extent that such representation or warranty expressly
relates to an earlier date (in which event such representations and warranties were true and correct in all material respects (without duplication of any materiality qualifier contained therein) as of such earlier date). 

(c)    The Administrative Agent shall have received payment in full in cash of all fees, costs and expenses due and
payable on the date hereof pursuant to Section 9.05 of the Credit Agreement. 
 4.    REPRESENTATIONS AND
WARRANTIES. The Borrower and each other Loan hereby represents and warrants to the Administrative Agent and the Lenders as follows: 

(a)    Representations and Warranties. Both before and immediately after giving effect to this Amendment, each of
the representations and warranties contained in contained in Article III of the Credit Agreement and in the other Loan Documents is true and correct in all material respects (provided, that if any representation or warranty is by its terms qualified
by concepts of materiality or Material Adverse Effect, such representation and warranty shall be true and correct in all respects) on the date hereof with the same effect as if then made (except to the extent stated to relate to a specific earlier
date, in which case such representations and warranties shall be true and correct in all material respects as of such earlier date; provided, that if any representation or warranty is by its terms qualified by concepts of materiality or Material
Adverse Effect, such representation and warranty shall be true and correct in all respects), and no Default or Event of Default has occurred and is continuing or would immediately result after giving effect to this Amendment. 

(b)    Binding Effect of Documents. This Amendment and each other Loan Document delivered in connection herewith
have been duly executed and delivered to the Administrative Agent, for the benefit of the Administrative Agent and the Lenders, by the Borrower and each other Loan Party party hereto and, this Amendment and the Loan Documents, as amended by this
Amendment, constitute, legal, valid and binding obligations of such Loan Party enforceable against such Loan Party in accordance with its terms, subject to applicable bankruptcy, insolvency, fraudulent conveyance, reorganization and other similar
Requirements of Laws relating to or affecting creditors’ rights generally, concepts of reasonableness and general equitable principles. 

  
 -5- 

 (c)    Authorization; No Contravention. The execution and
delivery of this Amendment and the Loan Documents delivered in connection herewith, and the performance of this Amendment, the Existing Credit Agreement, as modified hereby, and the Loan Documents as amended by this Amendment, by the Borrower and
each other Loan Party party hereto or thereto (a) have been duly authorized by all requisite corporate or other organizational powers and, if required under the laws of the jurisdiction of its organization, any provision of the certificate or
articles of incorporation or articles of association or other constitutive documents or by-laws, as applicable, stockholder action with respect to the Loan Parties and their Subsidiaries and (b) will not
(i) violate (A) any provision of Requirements of Law, statute, rule or regulation, (B) any provision of the certificate or articles of incorporation or articles of association or other constitutive documents or by-laws, as applicable, of the Borrower, any Loan Party or any Subsidiary, (C) any applicable order of any Governmental Authority or (D) any provision of any indenture, agreement or other instrument to
which the Borrower or any Subsidiary is a party or by which any of them or any of their property is or may be bound, (ii) be in conflict with, result in a material breach of or constitute (alone or with notice or lapse of time or both) a
default under, or give rise to any right to accelerate or to require the prepayment, repurchase or redemption of any obligation under any such material indenture, agreement or other instrument governing Indebtedness or (iii) result in the
creation or imposition of any Lien upon or with respect to any property or assets now owned or hereafter acquired by the Borrower or any Subsidiary (other than any Lien created hereunder or under the Security Documents), except (1) in the case
of clauses (b)(i)(A), (b)(i)(D) and (b)(ii) to the extent such violation would not reasonably be expected to have a Material Adverse Effect and (2) in the case of clause (b)(iii), to the extent such Lien is expressly permitted hereunder. 

(d)    Governmental Authorization; Other Consents. No action, consent or approval of, registration or filing with
or any other action by any Governmental Authority is or will be required in connection with the execution and delivery of this Amendment and the other Loan Documents delivered in connection herewith, or the performance by, or enforcement against,
any Loan Party of this Amendment, the Existing Credit Agreement, as modified hereby, or and the Loan Documents, as amended by this Amendment, other than those that have already been obtained and are in full force and effect. 

5.    PROVISIONS OF GENERAL APPLICATION. 

(a)    Loan Document. The parties hereto acknowledge, confirm and agree that this Amendment shall constitute a Loan
Document under the Credit Agreement. 
 (b)    Effect of this Amendment. On and after the Third Amendment
Effective Date, each reference in the Credit Agreement to “this Agreement,” “herein,” “hereto”, “hereof” and “hereunder” or words of like import referring to the Credit Agreement, and each reference
in each of the other Loan Documents to “the Credit Agreement”, “thereunder”, “thereof” or words of like import referring to the Credit Agreement, shall mean and be a reference to the Existing Credit Agreement, as
amended by this Amendment. Except as expressly amended, modified or waived pursuant hereto, no other amendments, modifications or waivers to the Existing Credit Agreement or other Loan Documents are intended or implied to constitute the consent of
the Administrative Agent or any Lender to any other transaction or the waiver by the Administrative Agent or any Lender of any Default or Event of Default. Except as set forth in Section 2 hereof, no other amendments or
modifications to the Loan Documents are intended or implied and in all other respects the Loan Documents are hereby specifically ratified, restated and confirmed by the Borrower and each other Loan Party and other parties hereto as of the Third
Amendment Effective Date. Nothing in this Amendment is intended, or shall be construed, to constitute a novation or an accord and satisfaction of any Loan Party’s Obligations under or in connection with the Credit Agreement or any of the other
Loan Documents or to modify, affect or impair the perfection or continuity of the Administrative Agent’s security interests in, security titles to or other liens on any Collateral for the Obligations. The Credit Agreement and this Amendment
shall be read and construed as one agreement. To the extent of conflict between the terms of this Amendment and the other Loan Documents, the terms of this Amendment shall control. 

  
 -6- 

 (c)    Reaffirmation. In connection with the execution and
delivery of this Amendment, the Borrower and each other Loan Party, as debtors, grantors, pledgors, guarantors, or in other similar capacities in which such Loan Parties grant liens or security interests in their properties, in each case under the
Loan Documents, hereby (i) acknowledges, ratifies and reaffirms all of its payment and performance Obligations, contingent or otherwise, under each Loan Document to which it is a party and all such payment Obligations are without offset,
defense (other than payment in full in cash of the Obligations) or counterclaim of any kind, nature or description whatsoever; and (ii) to the extent such Loan Party granted Liens on or security interests in any of its property pursuant to any
such Loan Document (including, but not limited to, the Guarantee and Collateral Agreement), hereby ratifies, reaffirms, and re-grants such grant of security and confirms that such Liens and security interests
continue to secure the Obligations, and hereby acknowledges and agrees that Administrative Agent, on behalf of itself and the Lenders, has and shall continue to have valid, enforceable and perfected first priority liens (subject to certain Permitted
Liens) upon and security interests in the Collateral (except as the result of any act or omission or failure to maintain physical possession of such Collateral by the Administrative Agent). 

(d)    Costs and Expenses. The Borrower agrees to pay to the Administrative Agent, from time to time, upon
presentation of a reasonably detailed statement, whether or not all or any of the transactions contemplated by this Amendment are consummated, all reasonable and documented costs and expenses of the Administrative Agent (including, but not limited
to, the reasonable and documented costs of consultants, professionals and one primary external legal counsel, one regulatory counsel and one local counsel in each jurisdiction and, solely in the case of a conflict of interest, one additional counsel
in each applicable jurisdiction to each affected group similarly situated taken as a whole, to HFS, the Administrative Agent and the Collateral Agent) in connection with the preparation, negotiation, execution, delivery or administration of this
Amendment and any agreements prepared, negotiated, executed or delivered in connection with the transactions contemplated hereby, all in accordance with the terms and conditions set forth in Section 9.05 of the Credit Agreement. 

(e)    Binding Effect. This Amendment shall be binding upon and inure to the benefit of each of the Borrower, the
other Loan Parties and other parties hereto and their respective successors and assigns. 
 (f)    General
Release. 
 (i)    In consideration of the agreements of the Administrative Agent and the Lenders
contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Borrower and each other Loan Party, on behalf of itself and its successors, assigns, and other legal representatives,
hereby irrevocably releases and forever discharges the Administrative Agent, each Lender and each of their respective Related Parties (each a “Lender Party” and collectively, the “Lender Parties”) of and from all
demands, actions, causes of action, suits, covenants, contracts, agreements, damages and any and all other claims, counterclaims, defenses, rights of set-off, demands and liabilities whatsoever in each case
solely to the extent arising from or in connection with this Amendment or the subject matter hereof (individually, a “Claim” and collectively, “Claims”) of every name and nature, known or unknown, suspected or
unsuspected, both at law and in equity, which such Loan Party or any of its successors or assigns may now or hereafter own, hold, have or claim to have against the Lender Parties or any of them for, upon, or by reason of any circumstance, action,
cause or thing whatsoever which arises at any time on or prior to the day and date of this 

  
 -7- 

 
Amendment under the Credit Agreement or under any of the other Loan Documents, except that the Loan Parties (and their successors and assigns) shall have no obligation hereunder to a Lender Party
with respect to any Claim resulting from the gross negligence or willful misconduct of such Lender Party as finally determined by a court of competent jurisdiction. 

(ii)    The Borrower and each other Loan Party understands, acknowledges and agrees that its release set
forth above may be pleaded as a full and complete defense and may be used as a basis for an injunction against any action, suit or other proceeding which may be instituted, prosecuted or attempted in breach of the provisions of such release. 

(iii)    The Borrower and each other Loan Party agrees that no fact, event, circumstance, evidence or
transaction which could now be asserted or which may hereafter be discovered, except as set forth above in Section 5(f)(i), shall affect in any manner the final, absolute and unconditional nature of the release set forth
above. 
 (g)    Severability. The illegality or unenforceability of any provision of this Amendment or any
instrument or agreement required hereunder shall not in any way affect or impair the legality or enforceability of the remaining provisions of this Amendment or any instrument or agreement required hereunder. 

(h)    Reviewed by Attorneys. This Amendment is the result of negotiations among and have been reviewed by counsel
to the Administrative Agent, Loan Parties, Lenders and the other parties hereto and are the products of all parties; accordingly, they shall not be construed against the Administrative Agent or Lenders merely because of the Administrative
Agent’s or Lenders’ involvement in their preparation. 
 (i)    Incorporation of Credit Agreement
Provisions. The provisions contained in Sections 9.02, 9.07, 9.11 and 9.15 of the Credit Agreement are incorporated herein by reference to the same extent as if reproduced herein in their entirety. 

(j)    Counterparts. This Amendment 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. Delivery of an executed counterpart of a signature page of this Amendment by facsimile or other electronic transmission (e.g., “PDF” or “TIFF”)
shall be effective as delivery of a manually executed counterpart of this Amendment. 
 (k)    Entire Agreement.
This Amendment and the Credit Agreement, as amended by this Amendment, embodies the entire agreement and understanding among the Borrower, each other Loan Party party hereto and the other parties party hereto with respect to the subject matter
hereof and supersedes all prior or contemporaneous agreements and understandings of such Persons, verbal or written, relating to the subject matter hereof. 

[Remainder of page intentionally blank; signature pages follow] 

  
 -8- 

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

							
	BORROWER:	 		 	AVADIM HEALTH, INC.
				
		 		 	By:	 	 /s/ David Fann

		 		 	Name:	 	David Fann
		 		 	Title:	 	President

  
 Avadim Health, Inc. 

Amendment No. 3 to Credit Agreement 

Signature Page 

							
	GUARANTORS:	 		 	RELION MANUFACTURING, INC.
				
		 		 	By:	 	 /s/ David Fann

		 		 	Name:	 	David Fann
		 		 	Title:	 	Chief Executive Officer
			
		 		 	BIONOME PROPERTIES CORP.
				
		 		 	By:	 	 /s/ David Fann

		 		 	Name:	 	David Fann
		 		 	Title:	 	President
			
		 		 	QUALITY ASSURANCE ASSOCIATES, INC.
				
		 		 	By:	 	 /s/ David Fann

		 		 	Name:	 	David Fann
		 		 	Title:	 	President
			
		 		 	AVADIM HEALTH IP, INC.
				
		 		 	By:	 	 /s/ David Fann

		 		 	Name:	 	David Fann
		 		 	Title:	 	President

  
 Avadim Health, Inc. 

Amendment No. 3 to Credit Agreement 

Signature Page 

							
	ADMINISTRATIVE AGENT:	 		 	HAYFIN SERVICES LLP, as Administrative Agent and Collateral Agent
				
		 		 	By:	 	 /s/ Andrew Tingle

		 		 	Name:	 	Andrew Tingle
		 		 	Title:	 	Authorised Signatory

  
 Avadim Health, Inc. 

Amendment No. 3 to Credit Agreement 

Signature Page 

									
	LENDERS:	 		 	HAYFIN SOF II LUXCO 2 S.À R.L., as Lender
				
		 		 	By:	 	 /s/ Karen Jemmison

		 		 	Name:	 	Karen Jemmison
		 		 	Title:	 	Authorised Signatory
			
		 		 	HAYFIN OPAL III L.P., as Lender
				
		 		 	By:	 	Hayfin Opal III GP Limited in its capacity as general partner of Hayfin Opal III L.P
					
		 		 		 	By:	 	 /s/ Andrew Tingle

		 		 		 	Name:	 	Andrew Tingle
		 		 		 	Title:	 	Authorised Signatory
			
		 		 	HAYFIN TOPAZ LUXCO 2 S.C.A., as Lender
				
		 		 	By:	 	Hayfin Topaz S.à.r.l. in its capacity as managing shareholder of Hayfin Topaz Luxco 2 S.C.A.
					
		 		 		 	By:	 	 /s/ Karen Jemmison

		 		 		 	Name:	 	Karen Jemmison
		 		 		 	Title:	 	Authorised Signatory

  
 Avadim Health, Inc. 

Amendment No. 3 to Credit Agreement 

Signature PageEX-4.9

 Exhibit 4.9 

NEITHER THIS SECURITY NOR THE SECURITIES INTO
WHICH THIS SECURITY IS CONVERTIBLE HAVE BEEN REGISTERED WITH THE SECURITIES
AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN
RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE
OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER
THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN
A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED
BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT,
THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.
THIS SECURITY AND THE SECURITIES ISSUABLE UPON CONVERSION OF THIS SECURITY
MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR
OTHER LOAN SECURED BY SUCH SECURITIES. 
 THE
OBLIGATIONS EVIDENCED BY THIS 6.0% SUBORDINATED CONVERTIBLE NOTE ARE UNSECURED OBLIGATIONS
AND ARE SUBORDINATED TO PAYMENT IN FULL OF THE SENIOR OBLIGATIONS
CONTEMPLATED BY THE CREDIT AGREEMENT (AS DEFINED BELOW) IN THE MANNER
AND TO THE EXTENT SET FORTH IN SECTION 5 BELOW. 

Note No: [        ] 

			
	Original Issue Date: January 10, 2020	 	US $[            ]

 6.0% SUBORDINATED CONVERTIBLE NOTE 

THIS 6.0% SUBORDINATED CONVERTIBLE NOTE is issued by Avadim Health, Inc., a
Delaware corporation with its headquarters located at 81 Thompson Street, Asheville, NC 28803 (the “Company”) (this note, the “Note” and, collectively with any replacement, exchange or other notes issued under
the Purchase Agreement from time to time, the “Notes”). 
 FOR VALUE RECEIVED,
the Company promises to pay to [                    ] or its registered assigns (the “Holder”), pursuant to the terms
hereunder, the principal sum of [        ] DOLLARS (US $[        ]) (“Original Principal Amount”) on the later of January 4, 2024 or
the date that is 91 days after the Latest Maturity Date (as defined in the Credit Agreement as defined below) (the “Maturity Date”) or such earlier date as this Note is permitted to be repaid as provided hereunder, and to pay PIK
Interest to the Holder on the aggregate unconverted and outstanding 

 
principal amount of this Note in accordance with the provisions hereof. This Note is subject to the following additional provisions: 

SECTION 1.    DEFINITIONS. 

For the purposes of this Note (a) capitalized terms not otherwise defined herein shall have the meanings set forth in the Purchase
Agreement (as defined below), and (b) the following terms shall have the following meanings: 
 “Business Day” means
any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or any day on which banking institutions in the State of New York are authorized or required by law or other governmental action to close. 

“Common Stock” means the Company’s common stock, $0.001 par value. 

“Conversion” shall have the meaning ascribed to such term in Section 4(a). 

“Conversion Date” shall have the meaning set forth in Section 4(a). 

“Conversion Price” shall have the meaning set forth in Section 4(b). 

“Conversion Shares” means, collectively, the shares of Common Stock issuable upon conversion of this Note in accordance with
the terms hereof. 
 “Credit Agreement” means that certain Credit Agreement, dated as of October 5, 2018 (as amended
by Amendment No. 1 to Credit Agreement dated as of June 14, 2019, as amended by Amendment No. 2 to Credit Agreement and Limited Waiver dated as of September 25, 2019 and as amended by Amendment No. 3 to Credit Agreement
dated as of December 31, 2019), each by and among the Company, as borrower, the Guarantors (as defined in the Credit Agreement) party thereto, the Senior Lenders party thereto and Hayfin Services LLP, as Administrative Agent (as defined in the
Credit Agreement) and as Collateral Agent (as defined in the Credit Agreement) for the Senior Lenders (in such capacities, the “Senior Agent”), as the same may be further amended, supplemented, amended and restated, increased, extended,
replaced or otherwise modified from time to time. 
 “Debtor Relief Law” means the Bankruptcy Code of the United States,
and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief laws of the United States or other applicable
jurisdictions from time to time in effect and affecting the rights of creditors generally. 
 “Dollar(s),”
“dollar(s)” or “$” or any similar reference means the coin or currency of the United States of America as at the time of payment is legal tender for the payment of purchase and/or public debts. 

“Insolvency Proceeding” means (a) a case or other proceeding shall be commenced or a petition shall be filed seeking
(i) bankruptcy, liquidation, reorganization or other relief in respect of the Company or any of its Subsidiaries or its or their respective debts, or of a substantial part of its or their respective assets, under any Debtor Relief Laws or
(ii) the appointment of a receiver, 

  
 -2- 

 
trustee, custodian, liquidator, sequestrator, conservator or similar official for the Company or any of its Subsidiaries or for a substantial part of its or their respective assets, or
(b) the Company or any of its Subsidiaries shall (i) make a general assignment for the benefit of creditors; or (ii) be dissolved or liquidated. 

“Interest Payment” shall have the meaning set forth in Section 2(b). 

“IPO” means the initial underwritten public offering of Common Stock of the Company pursuant to an effective registration
statement filed with the Securities and Exchange Commission in accordance with the Securities Act. 
 “IPO Price” means the
price, per share of Common Stock, at which shares of Common Stock are sold to the public in connection with the IPO. 
 “Note
Register” shall mean the note register maintained by the Company. 
 “Original Issue Date” means the date of the
issuance of the Notes, regardless of any transfers of any Note and regardless of the number of instruments which may be issued to evidence such Notes. 

“Original Principal Amount” shall have the meaning set forth in the recitals hereto. 

“Payment Date” shall have the meaning set forth in Section 2(b). 

“PIK Interest” shall have the meaning specified in Section 2(a). 

“Principal Amount” or “principal amount” means the Original Principal Amount as may be increased in
connection with the capitalization of PIK Interest as set forth in Section 2(b). 
 “Purchase Agreement” means the
Note Purchase Agreement, dated the date hereof by and among the Company and the Purchasers (as such term is defined in the Note Purchase Agreement), as amended, modified or supplemented from time to time in accordance with its terms and together
with all exhibits, schedules and annexes thereto. 
 “Securities Act” means the Securities Act of 1933, as amended, and the
rules and regulations promulgated thereunder. 
 “Senior Lenders” mean the lenders from time to time party to the Credit
Agreement. 
 “Senior Obligations” shall have the meaning specified in Section 5(a). 

“Share Delivery Date” shall have the meaning set forth in Section 4(c)(ii). 

  
 -3- 

 SECTION 2.    PIK INTEREST. 

(a)    PIK Interest. Commencing with the date that is six (6) months following the Original Issue date (the
“Interest Commencement Date”), interest shall accrue to the Holder on the aggregate unconverted and then outstanding principal amount of this Note at the rate of six percent (6.0%) per annum payable-in-kind (the “PIK Interest”). All PIK Interest shall be calculated on the basis of a 360-day year, which PIK Interest shall accrue daily from
and after the Interest Commencement Date and be paid on each Payment Date until payment in full of the outstanding principal amount (or conversion to the extent applicable), together with all accrued and unpaid interest and other amounts which may
become due hereunder, has been made. 
 (b)    Payments. Commencing on the one year anniversary of the Original
Issue Date, and on the last day of each subsequent six (6) month period, the Company shall make semi-annual payments of PIK Interest in arrears (each an “Interest Payment” and each date on which the Company makes an Interest
Payment, including the Maturity Date, a “Payment Date”). If any Payment Date is not a Business Day, then the applicable payment shall be due on the next succeeding Business Day. Each Interest Payment shall be equal to all accrued
but unpaid PIK Interest. All PIK Interest shall be added and capitalized to the outstanding Principal Amount on each Payment Date. 

(c)    Prepayment. Subject to this Section 2(c), this Note may be prepaid without penalty, in whole or in
part, at any time prior to the Maturity Date. To prepay this Note (or any portion thereof), the Company shall provide five (5) Business Days’ prior written notice to the Holder and shall indicate in such notice the date and the portion of
the Original Principal Amount being prepaid. 
 At any time the Company makes a prepayment and/or repayment of any principal amount of this
Note, in whole or in part (whether by voluntary prepayments by the Company, upon maturity or otherwise), including, without limitation on the Maturity Date, the Company shall pay to the Holder an amount equal the sum of (i) 200% of the Original
Principal Amount (or portion thereof) being paid and/or repaid; (ii) a ratable portion of the PIK Interest added and capitalized to the outstanding Principal Amount prior to such prepayment or repayment; (iii) a ratable portion of the PIK
Interest that has accrued but not yet been added or capitalized to the Principal Amount prior to such prepayment or repayment; and (iv) all other amounts due under this Note including, but not limited to all fees, costs and expenses. 

SECTION 3.    NOTE REGISTER; REGISTRATION OF
TRANSFERS AND EXCHANGES. 
 (a)    Note Register. The Company will
keep at its principal office, the Note Register. 
 (b)    Replacement or Exchange of Note. Upon the surrender of
this Note at the principal office of the Company, the Company, at the request of the record Holder of such Note, will execute and deliver (at the Company’s expense) a new Note in exchange therefor representing in the aggregate the amount
represented by the surrendered Note. Each such new Note will be registered in such name and will represent such amount as is requested by the Holder of the surrendered note and will be substantially identical in form to the surrendered Note. 

  
 -4- 

 (c)    Different Denominations. This Note is exchangeable for an
equal aggregate principal amount of Notes of different authorized denominations (of not less than $1,000 in principal amount), as requested by the Holder surrendering the same. No service charge will be payable for such registration of transfer or
exchange. 
 (d)    Investor Representations. This Note has been issued subject to certain investment
representations of the original Holder set forth in the Purchase Agreement and may be transferred or exchanged only in compliance with the Purchase Agreement and applicable federal and state securities laws and regulations. 

(e)    Reliance on Note Register. Prior to due presentment for transfer to the Company of this Note, the Company
and any agent of the Company may treat the Person in whose name this Note is duly registered on the Note Register as the owner hereof for the purpose of receiving payment as herein provided and for all other purposes, whether or not this Note is
overdue, and neither the Company nor any such agent shall be affected by notice to the contrary. 

SECTION 4.    CONVERSION. 

(a)    Automatic Conversion upon IPO. Automatically and without any action by the Holder, upon the occurrence of the
IPO (such date, the “Conversion Date”), the entire then outstanding portion of the Original Principal Amount, and all then outstanding accrued and/or capitalized PIK Interest shall be converted into the Company’s
Common Stock (the “Conversion”). Upon the Conversion, the Holder shall surrender this Note to the Company. The Conversion shall have the effect of cancelling all indebtedness evidenced by this Note. The Company shall
pay any and all transfer, stamp, issuance and similar taxes, costs and expenses (including, without limitation, fees and expenses of any transfer agent of the Company and the Depository Trust Company, that may be payable with respect to the issuance
and delivery of Common Stock upon the Conversion); provided, that the Company shall not be required to pay any taxes that may be imposed with respect to any applicable withholding or the issuance or delivery of the Common Stock upon the
Conversion to Holder and no such issuance or delivery shall be made unless and until Holder has paid to the Company the amount of any such tax, or has established to the satisfaction of the Company that such tax has been paid. 

(b)     Conversion Price. The “Conversion Price” means the IPO Price. 

(c)    Mechanics of Conversion. 

(i)    Conversion Shares Issuable Upon Conversion of Principal Amount. The number of Conversion
Shares issuable upon a Conversion hereunder shall be determined by the following formula: 
  
 

 

  
 -5- 

 (ii)    Delivery of Conversion Shares. Not later
than five (5) Business Days after the Conversion Date (the “Share Delivery Date”), the Company shall issue and deliver to the address specified by Holder, a certificate, registered in the name of the Holder or its designee, for
the number of Conversion Shares to which the Holder shall be entitled pursuant to the Conversion under this Section 4(c), which certificates shall contain such restrictive legends and trading restrictions as may then be applicable to such
shares. 
 (iii)    Reservation of Shares Issuable Upon Conversion. The Company covenants that it
will reserve and keep available out of its authorized and unissued shares of Common Stock (or such other class of equity security comprising the Conversion Shares), for the purpose of issuances upon conversion of this Note, that number of shares of
Common Stock (or such other class of equity security comprising the Conversion Shares) as shall from time to time be sufficient to effect the conversion of the outstanding Original Principal Amount and any accrued and unpaid PIK Interest on this
Note; and if at any time the number of authorized but unissued shares of Common Stock (or such other class of equity security comprising the Conversion Shares) shall be insufficient to effect such conversion, the Company shall take such corporate
action as may, in the opinion of its counsel, be necessary to increase its authorized but unissued shares of Common Stock (or such other class of equity security comprising the Conversion Shares) to such number of shares as shall be sufficient for
such purpose. The Company covenants that all shares of Common Stock (or such other class of equity security comprising the Conversion Shares) that shall be issuable upon conversion of this Note shall, upon issue, be duly authorized, validly issued,
fully paid and nonassessable. 
 (iv)    Fractional Shares. No fractional shares or scrip
representing fractional shares shall be issued upon the conversion of this Note. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such conversion, the Company shall at its election, either pay a cash
adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the Conversion Price or round up to the next whole share. 

(d)    Other Agreements. Holder hereby agrees that Holder shall not sell or otherwise transfer, make any short sale
of, grant any option for the purchase of, or enter into any hedging or similar transaction with the same economic effect as a sale, of any Common Stock (or other securities) of the Company held by Holder during the one hundred eighty (180) day
period following the effective date of the registration statement for the Company’s IPO filed under the Securities Act. The Company may impose stop-transfer instructions and may stamp each certificate with a legend as substantially set forth in
Section 4.7 of the Purchase Agreement with respect to the shares of Common Stock (or other securities) subject to the foregoing restriction until the end of such one hundred eighty (180) day (or other) period. The Holder agrees to execute
a market stand-off agreement with the underwriters in the offering in customary form consistent with the provisions of this section. 

  
 -6- 

 SECTION 5.    Subordination. 

(a)    Each Holder and each of its respective successors and assigns by their acceptance hereof covenants and agrees that
(i) the payment of the principal of and interest on this Note and all other amounts and liabilities payable by the Company under this Note (other than in connection with the Conversion) shall be subordinate and junior to and subject in right of
payment to the prior payment in full of all the principal of and interest on each outstanding loan, including all interest paid-in-kind, all fees, including any early
prepayment fees, all indemnification payments, all expense reimbursement payments and all other payments owing to the Senior Agent, the Senior Lenders and the other Secured Parties (as defined in the Credit Agreement) under the Loan Documents (as
defined in the Credit Agreement) (all such obligations, the “Senior Obligations”); and no such amount or liability shall be paid until all Senior Obligations have been paid in full in cash; provided, however, that so
long as no event of default under the Credit Agreement exists or will exist resulting from such payment, the Company shall be permitted to make Interest Payments of PIK Interest hereunder, and (ii) the rights and remedies of the Holders
hereunder (other than the right to receive shares of Common Stock of the Company in the event of a Conversion) are in all cases fully subordinated to the rights and remedies of the Senior Agent, the Senior Lenders and the other Secured Parties
pursuant to the Loan Documents. The Holders shall not exercise any rights or remedies under or on account of this Note (including but not limited to any action to demand or sue for collection of amounts payable hereunder or thereunder or, if
otherwise available, to accelerate the principal of this Note or to commence or to join with any other person or entity in commencing any reorganization or other Insolvency Proceeding of or against the Company or its assets), until the payment in
full in cash of all Senior Obligations and the termination of the Credit Agreement has occurred. Notwithstanding any provisions of this Note or the Purchase Agreement to the contrary, the Company’s failure to pay any interest or principal due
under this Note shall not constitute an Event of Default or breach hereunder if such payment would result in an event of default or breach on the part of the Company or any of its affiliates under the Credit Agreement. In such an event, payment
shall be deferred until the first business day that it may occur without any such event of default or breach resulting therefrom, and interest shall accrue on any such deferred amounts in accordance herewith. This Note is and shall remain unsecured.
In the event any Holder shall obtain a security interest or lien securing the obligations of this Note in contravention to the foregoing or otherwise, each Holder (without further action of any person) hereby subordinates any and all of its present
and future rights in respect of or related to the Collateral (as defined in the Credit Agreement), whether now existing or hereafter acquired, along with any lien or security interest in which such Holder now or hereafter obtains in respect of any
asset of the Company (including, without limitation, the Collateral), to any lien or security interest that the Senior Agent, any Senior Lender or any other Secured Party now have or hereafter obtain in respect of any asset of the Company
(including, without limitation, the Collateral). If, before the payment in full in cash of all Senior Obligations and the termination of the Credit Agreement has occurred, (x) any Holder receives any payment or distribution made or received on
account of any of the obligations under this Note or (y) without limiting the foregoing, any of the Collateral or any proceeds thereof or any distributions in respect thereof shall be received by or for the benefit of any Holder, in any case,
at a time when such payment, distribution or receipt is prohibited under this Section 5 or otherwise in violation of the Loan Documents, then, in each case, the Holder shall hold such payment, distribution, collateral or proceeds in escrow for
the benefit of the Senior Agent (for the benefit of Senior Lenders and the other Secured Parties) and shall immediately deliver the same (with an appropriate endorsement) to the Senior Agent to apply to, or hold as security for, the Senior
Obligations. Upon any such payment by any such Holder to the Senior Agent (for the 

  
 -7- 

 
benefit of Senior Lenders and the other Secured Parties) in accordance with the preceding sentence, such amount, together with all accrued and unpaid interest thereon, shall be deemed outstanding
under this Note as if no such payment, distribution, collateral or proceeds had ever been received by such Holder. 

(b)    The subordination provisions contained in this Section 5 are for the benefit of the Senior Agent, the Senior
Lenders, the other Secured Parties and their respective successors and assigns and, notwithstanding anything herein to the contrary, such provisions and the other provisions of this Note may not be rescinded or cancelled or modified without the
prior written consent of the Senior Agent. The Senior Obligations shall have the benefit of these subordination provisions even if all or any part of the Senior Obligations or the security interests securing any of the Senior Obligations are
subordinated, set aside, avoided or disallowed in any Insolvency Proceeding, and if any of the Senior Obligations are rescinded or must otherwise be returned by any holder of the Senior Obligations in connection therewith. The provisions of this
Section 5 shall be reinstated if at any time any payment of any of the Senior Obligations is rescinded or must otherwise be restored or returned in connection with any Insolvency Proceeding of the Company or any of its subsidiaries; provided,
however, that no such reinstatement shall require the turnover or delivery of any payment or property received by any Holder prior to the commencement of such Insolvency Proceeding (to the extent not otherwise in violation of Section 5(a)).

 (c)    Each Holder, by its acceptance of this Note, hereby expressly acknowledges and agrees (i) to the
subordination provisions and payment restrictions contained herein and agrees that it shall not commence any action or proceeding to challenge the existence or validity of such provisions in any Insolvency Proceeding or otherwise, and (ii) that
the foregoing subordination provisions are, and are intended to be, an inducement and a consideration to each Senior Lender to permit the Company to issue this Note and each such holder of the Senior Obligations shall be deemed conclusively to have
relied on such subordination provisions in permitting the Company to issue this Note and in continuing to hold such Senior Obligations and shall be deemed a third party beneficiary of such provisions. 

(d)    This Section 5, which the parties hereto expressly acknowledge is a “subordination agreement” under
Section 510(a) of the Bankruptcy Code of the United States, shall be effective before, during and after the commencement of any Insolvency Proceeding. 

SECTION 6.     EVENTS OF DEFAULT. 

The Company must notify the Holder immediately upon becoming aware of an Event of Default. 

SECTION 7.     MISCELLANEOUS. 

(a)    No Rights as Stockholder Until Conversion. Except as otherwise provided herein and/or in any other
Transaction Document, this Note does not entitle the Holder to any voting rights, dividends or other rights as a stockholder of the Company prior to the conversion hereof. 

  
 -8- 

 (b)    Notices. Any and all notices or other communications or
deliveries required or permitted to be provided under and/or pursuant to this Note shall be in writing and shall be deemed given and effective on the earliest of: (i) the date of transmission, if such notice or communication is delivered via
facsimile or email attachment at the facsimile number or email address as set forth on the signature pages attached hereto at or prior to 5:30 p.m. (New York City time) on a Business Day, (ii) the next Business Day after the date of
transmission, if such notice or communication is delivered via facsimile or email attachment at the facsimile number or email address as set forth on the signature pages attached hereto on a day that is not a Business Day or later than 5:30 p.m.
(New York City time) on any Business Day, (iii) the first (1st) Business Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service, or (iv) upon actual receipt by the party to whom such notice is
required to be given. The address for such notices and communications with respect to the Purchaser shall be as set forth on such Purchaser’s signature page to the Purchase Agreement. The address for such notices and communications with respect
to the Company shall be as set forth below. 
 If to the Company: 

Avadim Health, Inc. 
 81 Thompson
Street 
 Asheville, NC 28803 

Telephone: (904) 251-4910 

Attention: David Fann, President 

E-mail: david.fann@avadimhealth.com 

with a copy to: 
 Chapman and
Cutler LLP 
 1270 Avenue of the Americas, 30th Floor 

New York, NY 10020 
 Telephone:
(212) 655-2546 
 Facsimile: (212) 655-2547 

Attention: Nicholas A. Whitney 

Email: whitney@chapman.com 
 or to such other
address as any of them, by notice to the other may designate from time to time. Time shall be counted to, or from, as the case may be, the date of delivery. 

(c)    Absolute Obligation. Except as expressly provided herein, no provision of this Note shall alter or impair
the obligation of the Company, which is absolute and unconditional, to pay the principal of and accrued interest on this Note at the time, place, and rate, and in the coin or currency, herein prescribed. This Note is a direct debt obligation of the
Company. 
 (d)    Lost or Mutilated Note. If this Note shall be mutilated, lost, stolen or destroyed, the
Company shall execute and deliver, in exchange and substitution for and upon cancellation of a mutilated Note, or in lieu of or in substitution for a lost, stolen or destroyed Note, a new Note for the principal amount of this Note so mutilated,
lost, stolen or destroyed, but only upon receipt of evidence of such loss, theft or destruction of such Note, and of the ownership hereof, reasonably 

  
 -9- 

 
satisfactory to the Company. The applicant for a new Note under such circumstances shall also pay any reasonable third-party costs (including customary indemnity) associated with the issuance of
the new Note. 
 (e)    Jurisdiction; Governing Law. Each Transaction Document and all questions concerning the
construction, validity, enforcement and interpretation of each Transaction Document and/or Actions shall be governed by and construed and enforced solely and exclusively in accordance with the internal laws of the State of New York. Each party
agrees that all legal Proceedings and/or Actions concerning, relating to and/or arising out of this Agreement and/or any other Transaction Document and/or the interpretations, enforcement and defense of the transactions contemplated by this
Agreement and any other Transaction Documents (whether brought against a party hereto or its respective Affiliates, directors, officers, shareholders, partners, members, employees or agents) may be commenced in the state and federal courts sitting
in the City of New York. Each party hereby irrevocably submits to the jurisdiction of the state and/or federal courts sitting in the City of New York, Borough of Manhattan for the adjudication of any dispute hereunder or in connection herewith or
with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any Action or Proceeding, any claim that it is
not personally subject to the jurisdiction of any such court, that such Action or Proceeding is improper or is an inconvenient venue for such Proceeding. Each party hereby irrevocably waives personal service of process and consents to process being
served in any such Action or Proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such
service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law. 

(f)    Waiver. Any waiver by the Company or the Holder of a breach of any provision of this Note shall not operate
as or be construed to be a waiver of any other breach of such provision or of any breach of any other provision of this Note. The failure of the Company or the Holder to insist upon strict adherence to any term of this Note on one or more occasions
shall not be considered a waiver or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this Note on any other occasion. Any waiver by the Company or the Holder must be in writing. 

(g)    Severability. If any provision of this Note is invalid, illegal or unenforceable, the balance of this Note
shall remain in effect, as long as the essential terms and conditions of this Note for each party remain valid, binding, and enforceable. If it shall be found that any interest or other amount deemed interest due hereunder violates the applicable
Law governing usury, the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum rate of interest permitted under applicable Law. 

(h)    Remedies, Characterizations, Other Obligations, Breaches and Injunctive Relief. The remedies provided in
this Note shall be cumulative and in addition to all other remedies available under this Note and any of the other Transaction Documents at Law or in equity (including a decree of specific performance and/or other injunctive relief), and nothing
herein shall 

  
 -10- 

 
limit the Holder’s right to pursue actual and consequential damages for any failure by the Company to comply with the terms of this Note. Amounts set forth or provided for herein with
respect to payments, conversion and the like (and the computation thereof) shall be the amounts to be received by the Holder and shall not, except as expressly provided herein, be subject to any other obligation of the Company (or the performance
thereof). The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder and that the remedy at Law for any such breach would be inadequate. The Company therefore agrees that, in the event of any
such breach or threatened breach, the Holder shall be entitled, in addition to all other available remedies, to an injunction restraining any such breach or any such threatened breach, without the necessity of showing economic loss and without any
bond or other security being required. The Company shall provide all information and documentation to the Holder that is reasonably requested by the Holder to enable the Holder to confirm the Company’s compliance with the terms and conditions
of this Note. Notwithstanding the foregoing, the Company shall not be liable for any special or punitive damages. 

(i)    Next Business Day; Timing of Payments. Whenever any payment or other obligation hereunder shall be due on a
day other than a Business Day, such payment shall be made on the next succeeding Business Day. The Company shall make each payment required to be made by it hereunder (whether of principal, interest, fees or otherwise) prior to 2:00 p.m., Eastern
time, on the date when due, in immediately available funds, without set-off or counterclaim. 

(j)    Successors and Assigns. This Note shall be binding upon and inure to the benefit of the parties and their
successors and permitted assigns. The Company may not assign this Note or any rights or obligations hereunder without the prior written consent of the Holder. The Holder may assign its rights hereunder without the prior written consent of the
Company; provided however, that such assignment is permitted by applicable law; provided, further, in no event shall the Holder assign any of its rights hereunder to a competitor of the Company. 

(Signature Pages Follow) 

  
 -11- 

 IN WITNESS WHEREOF, the Company has caused this
Note to be duly executed by a duly authorized officer as of the date first above indicated. 
  

					
	AVADIM HEALTH, INC.
		
	By:	 	
                     
                                    

		 	Name:	 	
                     
                                    

		 	Title:	 	
                     
                                    

 ACCEPTED AND AGREED: 

[HOLDER] 
  

			
	By:	 	
                     
                    

	Name:	 	
                     
    

	Title:	 	
                     
    

  
 Signature Page to 6.0%
Subordinated Convertible Note

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00303-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00303-of-00352.parquet"}]]