Document:

Exhibit
10.2

 

REGISTRATION
RIGHTS AGREEMENT

October
1, 2020

 

ORBIMED
ROYALTY OPPORTUNITIES II, LP

ROS
ACQUISITION OFFSHORE LP

c/o
OrbiMed Advisors LLC,

601
Lexington Avenue, 54th Floor

New
York, NY 10022

 

Ladies
and Gentlemen:

 

Xtant
Medical Holdings, Inc., a Delaware corporation (the “Company”), proposes to issue to the undersigned (the “Exchange
Parties”) shares of common stock of the Company, $0.000001 par value per share (the “Common Stock”),
upon the exchange of the Loans (as defined below) in accordance with the terms set forth in the Restructuring and Exchange Agreement
among the Company, OrbiMed Royalty Opportunities II, LP and ROS Acquisition Offshore LP, dated August 7, 2020 (the “Restructuring
Agreement”). To induce the Exchange Parties to enter into the Restructuring Agreement and to satisfy the Company’s
obligations thereunder, the Lenders (as defined below) will have the benefit of this registration rights agreement (this “Agreement”)
pursuant to which the Company agrees with the Exchange Parties for the benefit of the Exchange Parties and for the benefit of
the holders (the “Holders”) from time to time of the Registrable Securities (as defined below), as follows:

 

1.
Definitions. As used in this Agreement,
the following capitalized defined terms shall have the following meanings:

 

“Affiliate”
has the meaning set forth in Rule 405 under the Securities Act.

 

“Broker-Dealer”
means any broker or dealer registered as such under the Exchange Act.

 

“Business
Day” means any day other than a Saturday, a Sunday or a day on which the Federal Reserve Bank of New York is authorized
or required by law or executive order to close or be closed.

 

“Close
of Business” means 5:00 p.m., New York City time.

 

“Closing
Date” means the date hereof.

 

“Company”
has the meaning set forth in the preamble hereto.

 

“Commission”
means the Securities and Exchange Commission.

 

“Common
Stock” has the meaning set forth in the preamble hereto.

 

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“Control”
has the meaning set forth in Rule 405 under the Securities Act, and the terms “controlling” and “controlled”
shall have meanings correlative thereto.

 

“Deferral
Period” has the meaning indicated in Section 3(i).

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission promulgated
thereunder.

 

“Exchange
Parties” has the meaning set forth in the preamble hereto.

 

“FINRA
Rules” means the Conduct Rules and the By-Laws of the Financial Industry Regulatory Authority, Inc.

 

“Holder”
has the meaning set forth in the preamble hereto.

 

“Lenders”
means OrbiMed Royalty Opportunities II, LP and ROS Acquisition Offshore LP.

 

“Losses”
has the meaning set forth in Section 5(d).

 

“Majority
Holders” means, on any date, Holders of a majority of the Registrable Securities.

 

“Managing
Underwriters” means the investment bank(s) and manager(s) that administer an underwritten offering, if any, conducted
pursuant to Section 6.

 

“Loans”
means the Loans as defined in that certain Second Amended and Restated Credit Agreement, dated as of March 29, 2019, by and among
Bacterin International, Inc., X-spine Systems, Inc., the Company, in its capacity as a guarantor, Xtant Medical, Inc., in its
capacity as a guarantor, and the Lenders, as amended by the First Amendment to Second Amended and Restated Credit Agreement, dated
as of April 1, 2020, by and among Bacterin International, Inc., X-spine Systems, Inc., the Company, in its capacity as a guarantor,
Xtant Medical, Inc., in its capacity as a guarantor, and the Lenders.

 

“Notice
and Questionnaire” means a written notice delivered to the Company substantially in the form attached as Annex A
hereto.

 

“Notice
Holder” means, on any date, any Holder that has delivered a completed Notice and Questionnaire to the Company on or
before such date.

 

“Private
Placement” has the meaning set forth in the Restructuring Agreement.

 

“Prospectus”
means a prospectus included in the Shelf Registration Statement (including, without limitation, a prospectus that discloses information
previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A or Rule 430B
under the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering
of any portion of the Registrable Securities covered by the Shelf Registration Statement, and all amendments and supplements thereto,
including any and all exhibits thereto and any information incorporated by reference therein.

 

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“Registrable
Securities” means the (i) Common Stock issued to the Exchange Parties pursuant to the transactions described in the
Restructuring Agreement upon exchange of Loans and any securities for which such shares have been exchanged, and any security
issued with respect thereto upon any stock dividend, split or similar event (ii) any Common Stock issued to the Exchange Parties
in respect of prepayment fees under the Second Amended and Restated Credit Agreement, dated as of March 29, 2019, as amended by
the Second Amendment to the Second Amended and Restated Credit Agreement, dated the date hereof; provided, however,
that each such security will cease to constitute Registrable Securities upon the earliest to occur of (i) such security being
sold pursuant to a registration statement that is effective under the Securities Act; and (ii) such security ceasing to be outstanding.

 

“Restructuring
Agreement” has the meaning set forth in the preamble hereto.

 

“SEC
Guidance” means (i) any publicly-available written or oral guidance, comments, requirements or requests of the Commission
staff and (ii) the Securities Act.

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations of the Commission promulgated thereunder.

 

“Shelf
Registration Period” has the meaning set forth in Section 2(b).

 

“Shelf
Registration Statement” means a “shelf” registration statement of the Company prepared pursuant to Section
2 that covers the resale, from time to time pursuant to Rule 415 under the Securities Act (or any successor thereto), of some
or all of the Registrable Securities on an appropriate form under the Securities Act, including all post-effective and other amendments
and supplements to such registration statement, the related Prospectus, all exhibits thereto and all material incorporated by
reference therein (including, without limitation, the Initial Registration Statement, any New Registration Statement and any Remainder
Registration Statement).

 

“Underwriter”
means any underwriter of Registrable Securities for an offering thereof under the Shelf Registration Statement.

 

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2.
Shelf Registration. (a) The Company will,
no later than the ninetieth (90th) day after the Closing Date, file with the Commission a Shelf Registration Statement (which,
initially, will be on Form S-1 and, as soon as the Company is eligible, will be on Form S-3) providing for the registration of
the offer and sale, from time to time on a continuous or delayed basis, of the Registrable Securities by the Holders in accordance
with the methods of distribution elected by such Holders, pursuant to Rule 415 (or any successor thereto) under the Securities
Act (the “Initial Registration Statement”) and will use its best efforts to cause such Initial Registration
Statement to become effective under the Securities Act no later than the one hundred and eightieth (180th) day after the Closing
Date; provided, that if the Commission has notified the Company that it will not review or has no comments to such Initial
Registration Statement within one hundred and ten (110) days after the Closing Date, the Company will use its best efforts to
cause such Initial Registration Statement to become effective under the Securities Act no later than the one hundred and twentieth
(120th) day after the Closing Date. Notwithstanding the registration obligations set forth in this Section 2, in the event the
Commission informs the Company that all of the Registrable Securities cannot, as a result of the application of Rule 415, be registered
for resale as a secondary offering on a single registration statement, the Company agrees to promptly (i) inform each of the Holders
thereof and use its commercially reasonable efforts to file amendments to the Initial Registration Statement as required by the
Commission and/or (ii) withdraw the Initial Registration Statement and file a new registration statement (a “New Registration
Statement”), in either case covering the maximum number of Registrable Securities permitted to be registered by the
Commission, on Form S-3 or, if the Company is ineligible to register the Registrable Securities on Form S-3, or such other form
available to register for resale the Registrable Securities as a secondary offering; provided, however, that prior to filing such
amendment or New Registration Statement, the Company shall be obligated to use its commercially reasonable efforts to advocate
with the Commission for the registration of all of the Registrable Securities in accordance with the SEC Guidance, including without
limitation, the Securities Act Rules Compliance and Disclosure Interpretations Question 612.09. Notwithstanding any other provision
of this Agreement, if any SEC Guidance sets forth a limitation of the number of Registrable Securities permitted to be registered
on a particular Shelf Registration Statement as a secondary offering (and notwithstanding that the Company used diligent efforts
to advocate with the Commission for the registration of all or a greater number of Registrable Securities), unless otherwise directed
in writing by a Holder as to its Registrable Securities, the number of Registrable Securities to be registered on such Shelf Registration
Statement will first be reduced by securities to be included other than Registrable Securities, and second be reduced by Registrable
Securities applied to the Holders on a pro rata basis based on the total number of unregistered Common Shares held by such Holders,
subject to a determination by the Commission that certain Holders must be reduced first based on the number of Common Shares held
by such Holders. In the event the Company amends the Initial Registration Statement or files a New Registration Statement, as
the case may be, under clauses (i) or (ii) above, the Company will use its commercially reasonable efforts to file with the Commission,
as promptly as allowed by the Commission or SEC Guidance provided to the Company or to registrants of securities in general, one
or more registration statements on Form S-3 or such other form available to register for resale those Registrable Securities that
were not registered for resale on the Initial Registration Statement, as amended, or the New Registration Statement (the “Remainder
Registration Statements”).

 

(b)
The Company will use its best efforts to keep the Shelf Registration Statement continuously effective, supplemented and amended
as required by the Securities Act, in order to permit the related Prospectus to be usable by Holders for a period (the “Shelf
Registration Period”) from the date the Shelf Registration Statement becomes effective to, and including, the date upon
which no Registrable Securities are outstanding and constitute “restricted securities” (as defined in Rule 144 under
the Securities Act).

 

(c)
The Company will cause the Shelf Registration Statement and the related Prospectus and any amendment or supplement thereto, as
of the effective date of the Shelf Registration Statement or such amendment or supplement, (i) to comply in all material respects
with the applicable requirements of the Securities Act; and (ii) not to contain any untrue statement of a material fact or omit
to state a material fact required to be stated therein or necessary in order to make the statements therein (in the case of the
Prospectus, in the light of the circumstances under which they were made) not misleading.

 

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(d)
Subject to applicable law, the Company will provide written notice to the Holders of the anticipated effective date of the Shelf
Registration Statement at least ten (10) Business Days before such anticipated effective date. Each Holder, in order to be named
in the Shelf Registration Statement at the time of its initial effectiveness, will be required to deliver a Notice and Questionnaire
and such other information as the Company may reasonably request in writing, if any, to the Company on or before the fifth (5th)
day before the anticipated effective date of the Shelf Registration Statement as provided in the notice. Subject to Section
3(i), from and after the effective date of the Shelf Registration Statement, the Company will, as promptly as is practicable
after the date a Holder’s Notice and Questionnaire is delivered, but in no event after the tenth (10th) day after such date,
(i) file with the Commission an amendment to the Shelf Registration Statement or prepare and, if permitted or required by applicable
law, file a supplement to the Prospectus or an amendment or supplement to any document incorporated therein by reference or file
any other required document so that such Holder delivering such Notice and Questionnaire is named as a selling securityholder
in the Shelf Registration Statement and the related Prospectus, and so that such Holder is permitted to deliver such Prospectus
to purchasers of Registrable Securities in accordance with applicable law (except that the Company will not be required to file
more than one supplement or post-effective amendment in any thirty (30) day period in accordance with this Section 2(d)(i))
and, in the case of a post-effective amendment to the Shelf Registration Statement, the Company will use its best efforts to cause
such post-effective amendment to become effective under the Securities Act as promptly as is practicable; (ii) provide such Holder,
upon request, copies of any documents filed pursuant to Section 2(d)(i); and (iii) notify such Holder as promptly as practicable
after the effectiveness under the Securities Act of any post-effective amendment filed pursuant to Section 2(d)(i); provided,
however, that if such Notice and Questionnaire is delivered during a Deferral Period, then the Company will so inform the
Holder delivering such Notice and Questionnaire and will take the actions set forth in clauses (i), (ii) and (iii) above upon
expiration of the Deferral Period in accordance with Section 3(i). Notwithstanding anything to the contrary herein, the
Company need not name any Holder that is not a Notice Holder as a selling securityholder in the Shelf Registration Statement or
Prospectus; provided, however, that any Holder that becomes a Notice Holder pursuant to this Section 2(d)
(whether or not such Holder was a Notice Holder at the effective date of the Shelf Registration Statement) will be named as a
selling securityholder in the Shelf Registration Statement or Prospectus in accordance with this Section 2(d).

 

3.
Registration Procedures. The following
provisions will apply in connection with the Shelf Registration Statement.

 

(a)
The Company will:

 

(i)
furnish to the Exchange Parties and to counsel for the Notice Holders, not less than five (5) Business Days before the filing
thereof with the Commission, a copy of the Shelf Registration Statement and each amendment thereto and each amendment or supplement,
if any, to the Prospectus (other than amendments and supplements that do nothing more than name Notice Holders and provide information
with respect thereto and other than filings by the Company under the Exchange Act) and will use its best efforts to reflect in
each such document, when so filed with the Commission, such comments as the Exchange Parties reasonably propose within three (3)
Business Days of the delivery of such copies to the Exchange Parties; and

 

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(ii)
include information regarding the Notice Holders and the methods of distribution they have elected for their Registrable Securities
provided to the Company in Notices and Questionnaires as necessary to permit such distribution by the methods specified therein.

 

(b)
The Company will ensure that:

 

(i)
the Shelf Registration Statement and any amendment thereto, and any Prospectus and any amendment or supplement thereto, comply
in all material respects with the Securities Act; and

 

(ii)
the Shelf Registration Statement and any amendment thereto do not, when each becomes effective, contain an untrue statement of
a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not
misleading.

 

(c)
The Company will advise the Exchange Parties, the Notice Holders and any Underwriter that has provided in writing to the Company
a telephone or email or other address for notices, and confirm such advice in writing, if requested (which notice pursuant to
clauses (ii) to (v), inclusive, below will be accompanied by an instruction to suspend the use of the Prospectus until the Company
has remedied the basis for such suspension):

 

(i)
when the Shelf Registration Statement and any amendment thereto have been filed with the Commission and when the Shelf Registration
Statement or any post-effective amendment thereto has become effective;

 

(ii)
of any request by the Commission for any amendment or supplement to the Shelf Registration Statement or the Prospectus or for
additional information;

 

(iii)
of the issuance by the Commission of any stop order suspending the effectiveness of the Shelf Registration Statement or the institution
or threatening of any proceeding for that purpose;

 

(iv)
of the receipt by the Company of any notification with respect to the suspension of the qualification of the Common Stock included
therein for sale in any jurisdiction or the institution or threatening of any proceeding for such purpose; and

 

(v)
of the happening of any event that requires any change in the Shelf Registration Statement or the Prospectus so that they do not
contain any untrue statement of a material fact and do not omit to state a material fact required to be stated therein or necessary
to make the statements therein (in the case of the Prospectus, in the light of the circumstances under which they were made) not
misleading.

 

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(d)
The Company will use its best efforts to prevent the issuance of any order suspending the effectiveness of the Shelf Registration
Statement or the qualification of the securities therein for sale in any jurisdiction and, if issued, to obtain as soon as practicable
the withdrawal thereof.

 

(e)
Upon request, the Company will furnish, in electronic or physical form, to each Notice Holder, without charge, one copy of the
Shelf Registration Statement and any post-effective amendment thereto, including all material incorporated therein by reference,
and, if a Notice Holder so requests in writing, all exhibits thereto (including exhibits incorporated by reference therein).

 

(f)
During the Shelf Registration Period, the Company will promptly deliver to each Exchange Party, each Notice Holder, and any sales
or placement agents or underwriters acting on their behalf, without charge, as many copies of the Prospectus (including the preliminary
Prospectus, if any) relating to the Shelf Registration Statement and any amendment or supplement thereto as such person may reasonably
request. Subject to the restrictions set forth in this Agreement, the Company consents to the use of the Prospectus or any amendment
or supplement thereto by each of the foregoing in connection with the offering and sale of the Registrable Securities.

 

(g)
Before any offering of Registrable Securities pursuant to the Shelf Registration Statement, the Company will arrange for the qualification
of the Registrable Securities for sale under the laws of such U.S. jurisdictions as any Notice reasonably requests and will maintain
such qualification in effect so long as required; provided, however, that in no event will the Company be obligated
by this Agreement to qualify to do business or as a dealer of securities in any jurisdiction where it is not then so qualified
or to take any action that would subject it to taxation or service of process in suits in any jurisdiction where it is not then
so subject. If, at any time during the Shelf Registration Period, the Registrable Securities are not “covered securities”
within the meaning of Section 18 of the Securities Act, then the Company will arrange for such qualification (subject to the proviso
of the immediately preceding paragraph) in each U.S. jurisdiction of residence of each Notice Holder.

 

(h)
Upon the occurrence of any event contemplated by subsections (c)(ii) to (v), inclusive, above, the Company will promptly (or within
the time period provided for by Section 3(i) hereof, if applicable) prepare a post-effective amendment to the Shelf Registration
Statement or an amendment or supplement to the Prospectus or file any other required document so that the Shelf Registration Statement
and the Prospectus will not include an untrue statement of a material fact or omit to state any material fact required to be stated
therein or necessary to make the statements therein (in the case of the Prospectus, in the light of the circumstances under which
they were made) not misleading.

 

(i)
Upon the occurrence or existence of any pending corporate development, public filings with the Commission or any other material
event that, in the reasonable judgment of the Company, makes it appropriate to suspend the availability of the Shelf Registration
Statement and the Prospectus, the Company will give notice (without notice of the nature or details of such events) to the Notice
Holders that the availability of the Shelf Registration Statement is suspended and, upon receipt of any such notice, each Notice
Holder agrees: (i) not to sell any Registrable Securities pursuant to the Shelf Registration Statement until such Notice Holder
receives copies of the supplemented or amended Prospectus provided for in Section 3(i), or until it is advised in writing
by the Company that the Prospectus may be used; and (ii) to hold such notice in confidence. Except in the case of a suspension
of the availability of the Shelf Registration Statement and the Prospectus solely as the result of filing a post-effective amendment
or supplement to the Prospectus to add additional selling securityholders therein, the period during which the availability of
the Shelf Registration Statement and any Prospectus is suspended (the “Deferral Period”) will not exceed an
aggregate of (A) thirty (30) days (or, if the Shelf Registration Statement is on Form S-1 (or any successor thereto), sixty (60)
days) in any calendar quarter; or (B) sixty (60) days (or, if the shelf registration statement is on Form S-1 (or any successor
thereto), ninety (90) days) in any calendar year.

 

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(j)
The Company will comply with all applicable rules and regulations of the Commission and will make generally available to its securityholders
an earnings statement (which need not be audited) satisfying the provisions of Section 11(a) of the Securities Act as soon as
practicable after the effective date of the Shelf Registration Statement and in any event no later than forty five (45) days after
the end of the twelve (12) month period (or ninety (90) days, if such period is a fiscal year) beginning with the first month
of the Company’s first fiscal quarter commencing after the effective date of the Shelf Registration Statement.

 

(k)
The Company may require each Holder of Registrable Securities to be sold pursuant to the Shelf Registration Statement to furnish
to the Company such information regarding the Holder and the distribution of such Registrable Securities as the Company may from
time to time reasonably require for inclusion in the Shelf Registration Statement in order to comply with the Securities Act.
The Company may exclude from the Shelf Registration Statement the Registrable Securities of any Holder that unreasonably fails
to furnish such information within a reasonable time after receiving a request from the Company for such information.

 

(l)
Subject to Section 6, the Company will enter into customary agreements (including, if requested by the Majority Holders,
an underwriting agreement in customary form that, for the avoidance of doubt, will provide for customary representations and warranties,
legal opinions, comfort letters and other documents and certifications) and take all other necessary actions in order to expedite
or facilitate the registration or the disposition of the Registrable Securities, and in connection therewith, if an underwriting
agreement is entered into, cause the same to contain customary indemnification provisions and procedures.

 

(m)
Subject to Section 6, for persons who are or may be “underwriters” with respect to the Registrable Securities
within the meaning of the Securities Act and who make appropriate requests for information to be used solely for the purpose of
taking reasonable steps to establish a due diligence or similar defense in connection with the proposed sale of such Registrable
Securities pursuant to the Shelf Registration, the Company will:

 

(i)
make reasonably available during business hours for inspection by the Holders, any Underwriter participating in any disposition
pursuant to the Shelf Registration Statement and any attorney, accountant or other agent retained by the Holders or any such Underwriter
all relevant financial and other records and pertinent corporate documents of the Company and its subsidiaries; and

 

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(ii)
cause the Company’s officers, directors, employees, accountants and auditors to supply all relevant information reasonably
requested by the Holders or any such Underwriter, attorney, accountant or agent in connection with the Shelf Registration Statement
as is customary for similar due diligence examinations.

 

(n)
In the event that any Broker-Dealer underwrites any Registrable Securities or participates as a member of an underwriting syndicate
or selling group or “participates in an offering” (within the meaning of the FINRA Rules) thereof, whether as a Holder
or as an underwriter, placement, sales agent or broker or dealer in respect thereof, or otherwise, the Company will, upon the
reasonable request of such Broker-Dealer, comply with any reasonable request of such Broker-Dealer in complying with the FINRA
Rules.

 

(o)
The Company will use its best efforts to take all other steps necessary to effect the registration of the offer and sale of the
Registrable Securities covered by the Shelf Registration Statement.

 

4.
Registration Expenses. The Company will
bear all expenses incurred in connection with the performance of its obligations under Sections 2 and 3. The Company
will reimburse the Exchange Parties and the Holders for the reasonable fees and disbursements of one firm or counsel (which may
be a nationally recognized law firm experienced in securities matters designated by the Majority Holders) to act as counsel for
the Holders in connection therewith.

 

5.
Indemnification and Contribution.

 

(a)
The Company agrees to indemnify and hold harmless each Holder, the directors, officers, employees, Affiliates and agents of each
Holder and each person who controls any Holder within the meaning of the Securities Act or the Exchange Act against any and all
losses, claims, damages or liabilities, joint or several, to which they or any of them may become subject under the Securities
Act, the Exchange Act or other federal or state statutory law or regulation, at common law or otherwise, insofar as such losses,
claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged
untrue statement of a material fact contained in the Shelf Registration Statement as originally filed or in any amendment thereof,
or in any preliminary Prospectus or the Prospectus, or in any amendment thereof or supplement thereto, or caused by the omission
or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein
(in the case of any preliminary Prospectus or the Prospectus, in the light of the circumstances under which they were made) not
misleading, and agrees to reimburse each such indemnified party, as incurred, for any legal or other expenses reasonably incurred
by it in connection with investigating or defending any such loss, claim, damage, liability or action; provided, however,
that the Company will not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of
or is based upon any such untrue statement or alleged untrue statement or omission or alleged omission made therein in reliance
upon and in conformity with written information furnished to the Company by or on behalf of the party claiming indemnification
specifically for inclusion therein.

 

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The
Company also agrees to provide customary indemnities to, and to contribute as provided in Section 5(d) to Losses of, any
underwriters of the Registrable Securities, their officers, directors and employees and each Person who controls such underwriters
(within the meaning of the Securities Act or the Exchange Act) to the same extent as provided herein with respect to the Holders.

 

(b)
Each Holder of securities covered by the Shelf Registration Statement (including each Exchange Party that is a Holder, in such
capacity) severally and not jointly agrees to indemnify and hold harmless the Company, each of the Company’s directors,
each of the Company’s officers who sign the Shelf Registration Statement and each person who controls the Company within
the meaning of the Securities Act or the Exchange Act, to the same extent as the foregoing indemnity from the Company to each
such Holder, but only with reference to written information relating to such Holder furnished to the Company by or on behalf of
such Holder specifically for inclusion in the documents referred to in the foregoing indemnity. This indemnity agreement will
be acknowledged by each Notice Holder that is not an Exchange Party in such Notice Holder’s Notice and Questionnaire and
will be in addition to any liability that any such Notice Holder may otherwise have.

 

(c)
Promptly after receipt by an indemnified party under this Section 5 or notice of the commencement of any action, such indemnified
party will, if a claim in respect thereof is to be made against the indemnifying party under this Section 5, notify the
indemnifying party in writing of the commencement thereof, but the failure so to notify the indemnifying party (i) will not relieve
it from liability under paragraph (a) or (b), as applicable, above unless and to the extent it has been materially prejudiced
through the forfeiture by the indemnifying party of substantial rights and defenses; and (ii) will not, in any event, relieve
the indemnifying party from any obligations to any indemnified party other than the indemnification obligation provided in paragraph
(a) or (b), as applicable, above. If any action is brought against an indemnified party and it has notified the indemnifying party
thereof, the indemnifying party will be entitled to appoint counsel (including local counsel) of the indemnifying party’s
choice at the indemnifying party’s expense to represent the indemnified party in any action for which indemnification is
sought (in which case, the indemnifying party will not thereafter be responsible for the fees and expenses of any separate counsel,
other than local counsel if not appointed by the indemnifying party, retained by the indemnified party or parties, except as set
forth below); provided, however, that such counsel will be reasonably satisfactory to the indemnified party. Notwithstanding
the indemnifying party’s election to appoint counsel (including local counsel) to represent the indemnified party in an
action, the indemnified party will have the right to employ separate counsel (including local counsel), and the indemnifying party
will bear the reasonable fees, costs and expenses of such separate counsel if (i) the use of counsel chosen by the indemnifying
party to represent the indemnified party would present such counsel with a conflict of interest; (ii) the actual or potential
defendants in, or targets of, any such action include both the indemnified party and the indemnifying party and the indemnified
party has reasonably concluded that there may be legal defenses available to it and/or other indemnified parties that are different
from or additional to those available to the indemnifying party; (iii) the indemnifying party has not employed counsel reasonably
satisfactory to the indemnified party to represent the indemnified party within a reasonable time after notice of the institution
of such action; or (iv) the indemnifying party has authorized the indemnified party to employ separate counsel at the expense
of the indemnifying party. The indemnifying party will not, in connection with any proceeding or related proceeding in the same
jurisdiction, be liable for the fees and expenses of more than one (1) separate law firm (in addition to any local counsel) for
all indemnified persons. An indemnifying party will not, without the prior written consent of the indemnified parties, settle
or compromise or consent to the entry of any judgment with respect to any pending or threatened claim, action, suit or proceeding
in respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified parties are actual
or potential parties to such claim or action) unless such settlement, compromise or consent includes an unconditional release
of each indemnified party from all liability arising out of such claim, action, suit or proceeding and does not include an admission
of fault, culpability or a failure to act, by or on behalf of any such indemnified party.

 

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(d)
In the event that the indemnity provided in paragraph (a) or (b) of this Section 5 is unavailable to or insufficient to
hold harmless an indemnified party for any reason, then each applicable indemnifying party will have a several, and not joint,
obligation to contribute to the aggregate losses, claims, damages and liabilities (including legal or other expenses reasonably
incurred in connection with investigating or defending such losses, claims, damages, liabilities or actions) (collectively “Losses”)
to which such indemnified party may be subject in such proportion as is appropriate to reflect the relative benefits received
by such indemnifying party, on the one hand, and such indemnified party, on the other hand, from the offering of the Registrable
Securities and the Shelf Registration Statement that resulted in such Losses; provided, however, that in no case
will any underwriter be responsible for any amount in excess of the underwriting discount or commission applicable to the securities
purchased by such underwriter under the Shelf Registration Statement that resulted in such Losses. If the allocation provided
by the immediately preceding sentence is unavailable for any reason, then the indemnifying party and the indemnified party will
contribute in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of such
indemnifying party, on the one hand, and such indemnified party, on the other hand, in connection with the statements or omissions,
or alleged statements or omissions, that resulted in such Losses as well as any other relevant equitable considerations. Benefits
received by the Company will be deemed to be equal to the total net proceeds from the offering of the Notes (before deducting
expenses). Benefits received by any Holder will be deemed to be equal to the value of having the offer and sale of such Holder’s
Registrable Securities registered under the Securities Act pursuant to the Shelf Registration Statement and hereunder. Benefits
received by any underwriter will be deemed to be equal to the total underwriting discounts and commissions, as set forth on the
cover page of the Prospectus relating to the Shelf Registration Statement that resulted in such Losses. Relative fault will be
determined by reference to, among other things, whether any untrue or any alleged untrue statement of a material fact or omission
or alleged omission to state a material fact relates to information provided by the indemnifying party, on the one hand, or by
the indemnified party, on the other hand, the intent of the parties and their relative knowledge, access to information and opportunity
to correct or prevent such untrue statement or omission or alleged untrue statement or omission. The parties agree that it would
not be just and equitable if contribution were determined by pro rata allocation (even if the Holders were treated as one entity
for such purpose) or any other method of allocation which does not take account of the equitable considerations referred to above.
Notwithstanding anything to the contrary in this Section 5(d), no person guilty of fraudulent misrepresentation (within
the meaning of Section 11(f) of the Securities Act) will be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation. For purposes of this Section 5, each person who controls a Holder within the meaning of the
Securities Act or the Exchange Act and each director, officer, employee, Affiliate and agent of such Holder will have the same
rights to contribution as such Holder, and each person who controls the Company within the meaning of the Securities Act or the
Exchange Act, each officer of the Company who signed the Shelf Registration Statement and each director of the Company will have
the same rights to contribution as the Company, subject in each case to the applicable terms and conditions of this Section
5(d).

 

    	- 11 -

     

    

 

(e)
The provisions of this Section 5 will remain in full force and effect, regardless of any investigation made by or on behalf
of any Exchange Party or Holder or the Company or any of the indemnified persons referred to in this Section 5, and will
survive the sale by a Holder of securities covered by the Shelf Registration Statement.

 

6.
Underwritten Registrations. (a) Notwithstanding
anything to the contrary herein, in no event will the method of distribution of Registrable Securities take the form of an underwritten
offering without the prior written consent of the Company. Consent may be conditioned on waivers of any of the obligations in
Section 3, 4 or 5.

 

(b)
If any Registrable Securities are to be sold in an underwritten offering, the Managing Underwriters will be selected by the Company,
subject to the prior written consent of the Majority Holders, which consent will not be unreasonably withheld.

 

(c)
No person may participate in any underwritten offering pursuant to the Shelf Registration Statement unless such person: (i) agrees
to sell such person’s Registrable Securities on the basis reasonably provided in any underwriting arrangements approved
by the persons entitled hereunder to approve such arrangements; and (ii) completes and executes all questionnaires, powers of
attorney, indemnities, underwriting agreements and other documents reasonably required under the terms of such underwriting arrangements.

 

7.
No Inconsistent Agreements. The Company
has not entered into, and agrees not to enter into, any agreement with respect to its securities that is inconsistent with the
registration rights granted to the Holders herein.

 

8.
Rule 144A and Rule 144. So long as any
Registrable Securities remain outstanding, the Company will file the reports required to be filed by it under Rule 144A(d)(4)
under the Securities Act and the reports required to be filed by it under the Exchange Act in a timely manner and, if at any time
the Company is not required to file such reports, it will, upon the written request of any Holder of Registrable Securities, make
publicly available other information so long as necessary to permit sales of such Holder’s Registrable Securities pursuant
to Rules 144 and 144A of the Securities Act. The Company covenants that it will take such further action as any Holder of Registrable
Securities may reasonably request, all to the extent required from time to time to enable such Holder to sell Registrable Securities
without registration under the Securities Act pursuant to Rule 144 or Rule 144A (including, without limitation, satisfying the
requirements of Rule 144A(d)(4)). Upon the written request of any Holder of Registrable Securities, the Company will deliver to
such Holder a written statement as to whether it has complied with such requirements. Notwithstanding anything to the contrary
in this Section 8, nothing in this Section 8 will be deemed to require the Company to register any of its securities
pursuant to the Exchange Act.

 

    	- 12 -

     

    

 

9.
Amendments and Waivers. The provisions
of this Agreement may not be amended, qualified, modified or supplemented, and waivers or consents to departures from the provisions
hereof may not be given, unless the Company has obtained the written consent of the Holders of a majority of the Registrable Securities;
provided, however, that this Section 9 may not be amended, qualified, modified or supplemented, and waivers
of or consents to departures from this Section 9 may not be given, unless the Company has obtained the written consent
of each Exchange Party and each Holder.

 

10.
Notices. All notices and other communications
provided for or permitted hereunder will be made in writing by hand-delivery, first-class mail, telex, telecopier, email or air
courier guaranteeing overnight delivery:

 

(a)
if to a Holder, at the most current address given by such holder to the Company in accordance with the provisions of the Notice
and Questionnaire.

 

(b)
if to any Exchange Party, initially at the address thereof set forth above; and

 

(c)
if to the Company, initially at its address set forth in the Restructuring Agreement.

 

All
such notices and communications shall be deemed to have been duly given when received.

 

11.
Remedies. Each Holder, in addition to
being entitled to exercise all rights provided to it herein or in the Restructuring Agreement or granted by law, including recovery
of liquidated or other damages, will be entitled to specific performance of its rights under this Agreement. The Company agrees
that monetary damages would not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of
this Agreement and hereby agrees to waive in any action for specific performance the defense that a remedy at law would be adequate.

 

12.
Successors. This Agreement will inure
to the benefit of and be binding upon the parties hereto, their respective successors and assigns, including, without the need
for an express assignment or any consent by the Company thereto, subsequent Holders, and the indemnified persons referred to in
Section 5. The Company hereby agrees to extend the benefits of this Agreement to any Holder, and any such Holder may specifically
enforce the provisions of this Agreement as if an original party hereto.

 

13.
Counterparts. This Agreement may be signed
in one or more counterparts, each of which shall constitute an original and all of which together shall constitute one and the
same agreement.

 

14.
Headings. The section headings used herein
are for convenience only and shall not affect the construction or interpretation hereof.

 

15.
Applicable Law. THIS AGREEMENT WILL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING
OUT OF OR RELATING TO THIS AGREEMENT THE TRANSACTION CONTEMPLATED HEREBY.

 

16.
Severability. In the event that any one
or more of the provisions contained herein, or the application thereof in any circumstances, is held invalid, illegal or unenforceable
in any respect for any reason, the validity, legality and enforceability of any such provision in every other respect and of the
remaining provisions hereof will not be in any way impaired or affected thereby, it being intended that all of the rights and
privileges of the parties will be enforceable to the fullest extent permitted by law.

 

17.
Common Stock Held by the Company, Etc. Whenever
the consent or approval of Holders of a specified percentage of securities is required hereunder, securities held by the Company
or its Affiliates (other than subsequent Holders thereof if such subsequent Holders are deemed to be Affiliates solely by reason
of their holdings of such securities) will not be counted in determining whether such consent or approval was given by the Holders
of such required percentage.

 

[Remainder
of Page Intentionally Left Blank; Signature Page Follows]

 

    	- 13 -

     

    

 

	 	Very
    truly yours,
	 	 
	 	Company:
	 	 
	 	Xtant
    Medical Holdings, Inc.
	 	 	 
	 	By:	/s/
    Sean Browne
	 	Name:	Sean
    Browne
	 	Title:	President,
    CEO

 

[Signature
Page to Registration Rights Agreement]

 

    	 

     

    

 

EXCHANGE
PARTIES:

 

	 	ORBIMED
    ROYALTY OPPORTUNITIES II, LP 
	 	 	 
	 	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
	 	 	 
	 	ROS
    ACQUISITION OFFSHORE LP
	 	 	 
	 	By	OrbiMed
    Advisors LLC, solely in its
	 	 	capacity
    as Investment Manager
	 	 	 
	 	By:	W.
    Carter Neild
	 	Name:	W.
    Carter Neild
	 	Title:	Member

 

[Signature
Page to Registration Rights Agreement]

 

    	 

     

    

 

ANNEX
A

 

    	 

     

    

 

SELLING
SECURITY HOLDER NOTICE AND QUESTIONNAIRE

 

The
undersigned beneficial holder of Registrable Securities of Xtant Medical Holdings, Inc. (the ‘‘Company’’)
understands that the Company has filed, or intends to file, with the Securities and Exchange Commission (the ‘‘Commission’’)
a registration statement (the ‘‘Shelf Registration Statement’’) for the registration and resale, under
Rule 415 under the Securities Act of 1933, as amended (the ‘‘Securities Act’’), of the Registrable Securities,
in accordance with the terms of the Registration Rights Agreement (the ‘‘Registration Rights Agreement’’),
dated _______________, 2020, among the Company and the Exchange Parties party thereto. A copy of the Registration Rights Agreement
is available from the Company upon request at the address set forth below. All capitalized terms not otherwise defined herein
shall have the meanings ascribed to them in the Registration Rights Agreement.

 

Each
beneficial owner of Registrable Securities is entitled to the benefits of the Registration Rights Agreement. In order to sell
or otherwise dispose of any Registrable Securities pursuant to the Shelf Registration Statement, a beneficial owner of Registrable
Securities generally must be named as a selling security holder in the related prospectus or prospectus supplement(s), deliver
a prospectus and any applicable prospectus supplement(s) to the purchasers of the Registrable Securities and be bound by those
provisions of the Registration Rights Agreement applicable to such beneficial owner (including certain indemnification provisions,
as described below). Beneficial owners that do not complete this Notice and Questionnaire and deliver it to the Company as provided
below will not be named as selling security holders in the prospectus and will not be permitted to sell any Registrable Securities
pursuant to the Shelf Registration Statement. Beneficial owners are encouraged to complete, execute and deliver this Notice and
Questionnaire as soon as possible before the effectiveness of the Shelf Registration Statement so that they may be named as selling
security holders in the prospectus forming part of the Shelf Registration Statement at the time it initially becomes effective.
A beneficial owner of Registrable Securities wishing to include its Registrable Securities in the Shelf Registration Statement
must deliver to the Company a properly completed and signed Notice and Questionnaire.

 

The
Company has agreed to pay additional interest pursuant to the Registration Rights Agreement under certain circumstances as set
forth therein.

 

Certain
legal consequences arise from being named as a selling security holder in the Shelf Registration Statement and the related prospectus
or prospectus supplement(s). Accordingly, holders and beneficial owners of Registrable Securities should consult their legal counsel
regarding the consequences of being named or not being named as a selling security holder in the Shelf Registration Statement
and the related prospectus or prospectus supplement(s).

 

NOTICE

 

The
undersigned beneficial owner (the ‘‘Selling Security Holder’’) of Registrable Securities hereby gives
notice to the Company of its intention to sell or otherwise dispose of Registrable Securities beneficially owned by it and listed
below in Item 3 (unless otherwise specified under such Item 3) pursuant to the Shelf Registration Statement. The undersigned,
by signing and returning this Notice and Questionnaire, understands that it will be bound by the terms and conditions of this
Notice and Questionnaire and the Registration Rights Agreement.

 

Pursuant
to the Registration Rights Agreement, the undersigned has agreed to indemnify and hold harmless the Company, its officers and
directors and each person, if any, who controls the Company within the meaning of Section 15 of the Securities Act or Section
20 of the Securities Exchange Act of 1934, as amended (the ‘‘Exchange Act’’), from and against certain
claims and losses arising in connection with statements or omissions concerning the undersigned made in the Shelf Registration
Statement or the related prospectus or prospectus supplement(s) in reliance upon the information provided by the undersigned.

 

    	 

     

    

 

The
undersigned hereby provides the following information to the Company and represents and warrants that such information is accurate
and complete:

 

QUESTIONNAIRE

 

	1.	Selling Security Holder information:
	 	 	 
		(a) 	Full
    legal name of Selling Security Holder:
	 	 	 
	 	 	 
	 	 	 
		(b) 	Full
    legal name of registered holder (if not the same as (a) above) through which the Registrable Securities listed in Item 3 below
    are held:
	 	 	 
	 	 	 
	 	 	 
		(c)	Full
    legal name of Depository Trust Company participant (if applicable and if not the same as (b) above) through which the Registrable
    Securities listed in Item 3 below are held:
	 	 	 
	 	 	 
	 	 	 
		(d)	Taxpayer
    identification or social security number of Selling Security Holder:
	 	 	 
	 	 	 
	 	 	 
	2.	Mailing address for notices to
    Selling Security Holder:
	 	 	 
	 	 
	 	 	 
	 	 
	 	 	 
	 	 

 

Telephone:
___________________________________________________________________________________

 

Fax:
________________________________________________________________________________________

 

E-mail
address: ________________________________________________________________________________

 

Contact
person: _______________________________________________________________________________

 

	3.	Beneficial
    ownership of Registrable Securities:

 

State
the number of shares of Registrable Securities beneficially owned by you.

 

Number
of shares: __________________________________________________________________________

 

	4.	Beneficial
    ownership of other securities of the Company owned by the Selling Security Holder:

 

	 	Except
    as set forth below in this Item 4, the undersigned is not the beneficial owner of any securities of the Company other than
    the Registrable Securities listed in Item 3 above.
	 	 	 
	 	(a)
    	Type
    and amount of other securities beneficially owned by the Selling Security Holder:
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	(b)
    	CUSIP
    No(s). of the other securities listed in (a) beneficially owned:
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

	5.	Relationships
    with the Company:

 

	 	(a)
    	Have
    you or any of your affiliates, officers, directors or principal equity holders (owners of 5% or more of the equity securities
    of the undersigned) held any position or office or had any other material relationship with the Company (or its predecessors
    or affiliates) during the past three years?
	 	 	 
	 	 	[  ]
    Yes.
	 	 	 
	 	 	[  ]
    No.
	 	 	 
	 	(b)
    	If
    your response to (a) above is ‘‘Yes,’’ please state the nature and duration of your relationship with
    the Company:
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

    	 

     

    

 

	6.	Plan
    of distribution:

 

Except
as set forth below, the undersigned (including its donees, pledges, transferees and other successors in interest) intends to distribute
the Registrable Securities listed in Item 3 above pursuant to the Shelf Registration Statement only as follows (if at all):

 

Such
Registrable Securities may be sold from time to time directly by the undersigned or, alternatively, through underwriters, broker-dealers
or agents. If the Registrable Securities are sold through underwriters, broker-dealers or agents, the Selling Security Holder
will be responsible for underwriting discounts or commissions or agents’ commissions. Such Registrable Securities may be
sold in one or more transactions at fixed prices, at prevailing market prices at the time of sale, at varying prices determined
at the time of sale or at negotiated prices. Such sales may be effected in transactions (which may involve block transactions)
(1) on any national securities exchange or quotation service on which the Registrable Securities may be listed or quoted at the
time of sale, (2) in the over-the-counter market, (3) otherwise than on such exchanges or services or in the over-the-counter
market or (4) through the writing of options. In connection with sales of the Registrable Securities or otherwise, the undersigned
may enter into hedging transactions with broker-dealers, which may in turn engage in short sales of the Registrable Securities
in the course of the hedging positions they assume. The undersigned may also sell Registrable Securities short and deliver Registrable
Securities to close out short positions or loan or pledge Registrable Securities to broker-dealers that in turn may sell such
securities. The Selling Security Holder may pledge or grant a security interest in some or all of the Registrable Securities owned
by it, and, if it defaults in the performance of its secured obligations, the pledgees or secured parties may offer and sell the
Registrable Securities from time to time pursuant to the Shelf Registration Statement. The Selling Security Holder also may transfer,
donate, pledge or otherwise dispose of shares in other circumstances, in which case the transferees, donees, pledgees or other
successors in interest will be the selling Security Holder for purposes of the Shelf Registration Statement to the extent permitted
by the rules and regulations of the Securities and Exchange Commission.

 

State
any exceptions here:

 

 __________________________________________________________________________________________

 

 __________________________________________________________________________________________

 

Note:
In no event will such method(s) of distribution take the form of an underwritten offering of the Registrable Securities without
the prior agreement of the Company.

 

The
Company hereby advises each Selling Security Holder of the following Compliance and Disclosure Interpretation of the Division
of Corporation Finance of the Commission:

 

An
issuer filed a Form S-3 registration statement for a secondary offering of common stock which is not yet effective. One of the
selling shareholders wanted to do a short sale of common stock ‘‘against the box’’ and cover the short
sale with registered shares after the effective date. The issuer was advised that the short sale could not be made before the
registration statement becomes effective, because the shares underlying the short sale are deemed to be sold at the time such
sale is made. There would, therefore, be a violation of Section 5 if the shares were effectively sold prior to the effective date.

 

By
returning this Notice and Questionnaire, the Selling Security Holder will be deemed to be aware of the foregoing interpretation.

 

	7.	Broker-dealers
    and their affiliates:

 

The
Company may have to identify the Selling Security Holder as an underwriter in the Shelf Registration
Statement or related prospectus or prospectus supplement(s) if:

 

	 	●	the
    Selling Security Holder is a broker-dealer and did not receive the Registrable Securities as compensation for underwriting
    activities; or
	 	 	 
	 	●	the
    Selling Security Holder is an affıliate of a broker-dealer and either (1) did not acquire the Registrable Securities
    in the ordinary course of business; or (2) at the time of its purchase of the Registrable Securities, had an agreement or
    understanding, directly or indirectly, with any person to distribute the Registrable Securities.

 

	 	Persons
    identified as underwriters in the Shelf Registration Statement or related prospectus or prospectus supplement(s) may be subject
    to additional potential liabilities under the Securities Act and should consult their legal counsel before submitting this
    Notice and Questionnaire.
	 	 	 
	 	(a)
    	Are
    you a broker-dealer registered pursuant to Section 15 of the Exchange Act?
	 	 	 
	 	 	[  ]
    Yes.
	 	 	 
	 	 	[  ]
    No.
	 	 	 
	 	(b)
    	If
    your response to (a) above is ‘‘Yes,’’ did you receive the securities listed in Item 3 above as compensation
    for underwriting activities?
	 	 	 
	 	 	[  ]
    Yes.
	 	 	 
	 	 	[  ]
    No.
	 	 	 
	 	 	If
    your response to (b) above is ‘‘Yes,’’ please describe the circumstances:
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

    	 

     

    

 

	 	(c)	Are
    you an ‘‘affiliate’’ of a broker-dealer that is registered pursuant to Section 15 of the Exchange
    Act?
	 	 	 
	 	 	[  ]
    Yes.
	 	 	 
	 	 	[  ]
    No.
	 	 	 
	 	 	For
    the purposes of this Item 7(b), an ‘‘affiliate’’ of a registered broker-dealer includes any company
    that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control
    with, such broker-dealer.
	 	 	 
	 	(d)	If
    your response to (c) above is ‘‘Yes,’’ please answer the following three questions:
	 	 	 	 
	 	 	(i)	Please
    describe the nature of your affiliation with a registered broker-dealer:
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	
	 	 	 	 
	 	 	(ii)
    	Did
    you acquire the securities listed in Item 3 above in the ordinary course of business?
	 	 	 	 
	 	 	 	[  ]
    Yes.
	 	 	 	 
	 	 	 	[  ]
    No.
	 	 	 	 
	 	 	(iii)	At
    the time of your purchase of the securities listed in Item 3 above, did you have any agreements or understandings, directly
    or indirectly, with any person to distribute the securities?
	 	 	 	 
	 	 	 	[  ]
    Yes.
	 	 	 	 
	 	 	 	[  ]
    No.
	 	 	 	 
	 	 	 	If
    your response to (iii) above is ‘‘Yes,’’ please describe such agreements or understandings:
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	8.	Nature
    of beneficial ownership:
	 	 	 	 
	 	The
    purpose of this section is to identify the ultimate natural persons or publicly held entities that exercises sole or shared
    voting or dispositive power over the Registrable Securities.
	 	 	 	 
	 	(a)
    	Is
    the Selling Security Holder a natural person?
	 	 	 	 
	 	 	[  ]
    Yes.
	 	 	 
	 	 	[  ]
    No.
	 	 	 	 
	 	(b)
    	Is
    the Selling Security Holder required to file, or is it a wholly owned subsidiary of an entity that is required to file, periodic
    and other reports (for example, Forms 10-K, 10-Q and 8-K) with the Commission pursuant to Section 13(a) or 15(d) of the Exchange
    Act?
	 	 	 	 
	 	 	[  ]
    Yes.
	 	 	 
	 	 	[  ]
    No.
	 	 	 	 
	 	(c)
    	Is
    the Selling Security Holder an investment company, or a subsidiary of an investment company, registered under the Investment
    Company Act of 1940, as amended?
	 	 	 	 
	 	 	[  ]
    Yes.
	 	 	 
	 	 	[  ]
    No.
	 	 	 	 
	 	(d)	If
    the Selling Security Holder is a subsidiary of such an investment company, please identify the investment company:
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	(e)	If
    you answered ‘‘No’’ to questions (a), (b) and (c) above, please identify the controlling person(s)
    of the Selling Security Holder (the ‘‘Controlling Entity’’). If the Controlling Entity is not a natural
    person or a publicly held entity, please identify each controlling person(s) of such Controlling Entity. This process should
    be repeated until you reach natural persons or a publicly held entity that exercise sole or shared voting or dispositive power
    over the Registrable Securities:
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

    	 

     

    

 

***PLEASE
NOTE THAT THE COMMISSION REQUIRES THAT THESE NATURAL PERSONS AND ENTITIES BE NAMED IN THE PROSPECTUS***

 

	9.	Securities received from named selling security holder:
	 	 	 
	 	(a)
    	Did
    you receive your Registrable Securities listed above in Item 3 as a transferee from one or more selling security holders previously
    identified in the Shelf Registration Statement?
	 	 	 
	 	 	[  ]
    Yes.
	 	 	 
	 	 	[  ]
    No.
	 	 	 
	 	(b)
    	If
    your response to (a) above is ‘‘Yes,’’ please answer the following two questions:
	 	 	 	 
	 	 	(i)	Did
    you receive such Registrable Securities listed above in Item 3 from the named selling security holder(s) prior to the effectiveness
    of the Shelf Registration Statement?
	 	 	 	 
	 	 	 	[  ]
    Yes.
	 	 	 	 
	 	 	 	[  ]
    No.
	 	 	 	 
	 	 	(ii)
    	Identify
    below the names of the selling security holder(s) from whom you received the Registrable Securities listed above in Item 3
    and the date on which such securities were received.
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

 

If
you need more space for your responses, please attach additional sheets of paper. Please be sure to indicate your name and the
number of the item being responded to on each such additional sheet of paper, and to sign each such additional sheet of paper
before attaching it to this Notice and Questionnaire. Please note that you may be asked to answer additional questions depending
on your responses to the above questions.

 

ACKNOWLEDGEMENTS

 

The
undersigned acknowledges its obligation to comply with the provisions of the Exchange Act and the rules thereunder relating to
stock manipulation, particularly Regulation M thereunder (or any successor rules or regulations), in connection with any offer
or sale of Registrable Securities pursuant to the Shelf Registration Statement. The undersigned agrees that neither it nor any
person acting on its behalf will engage in any transaction in violation of such provisions.

 

The
Selling Security Holder hereby acknowledges its obligations under the Registration Rights Agreement to indemnify and hold harmless
certain persons as set forth therein. Pursuant to the Registration Rights Agreement, the Company has agreed under certain circumstances
to indemnify the Selling Security Holder against certain liabilities.

 

In
accordance with the undersigned’s obligation under the Registration Rights Agreement to provide such information as may
be required by law for inclusion in the Shelf Registration Statement, the undersigned agrees to provide any additional information
the Company may reasonably request and to promptly notify the Company of any inaccuracies or changes in the information provided
that may occur at any time while the Shelf Registration Statement remains effective. All notices hereunder to the Company pursuant
to the Registration Rights Agreement will be made in writing by hand-delivery, first-class mail or air courier guaranteeing overnight
delivery to the address specified below.

 

If
the Selling Security Holder transfers all or any portion of the Registrable Securities listed in Item 3 above after the date on
which such information is provided to the Company, the Selling Security Holder will notify the transferee(s) at the time of transfer
of its or their rights and obligations under the Registration Rights Agreement.

 

    	 	 

     

    

 

By
signing below, the undersigned consents to the disclosure of the information contained herein in its answers to questions above
and the inclusion of such information in the Shelf Registration Statement and the related prospectus or prospectus supplement(s)
and in any related state securities or Blue Sky applications. The undersigned understands that such information will be relied
upon by the Company in connection with the preparation or amendment of the Shelf Registration Statement and the related prospectus
and prospectus supplement(s) and of any such application.

 

Once
this Notice and Questionnaire is executed by the Selling Security Holder and received by the Company, the terms of this Notice
and Questionnaire and the representations and warranties contained herein will be binding on, will inure to the benefit of, and
will be enforceable by the respective successors, heirs, personal representatives and assigns of the Company and the Selling Security
Holder with respect to the Registrable Securities beneficially owned by the Selling Security Holder and listed in Item 3 above.
This Notice and Questionnaire will be governed by and construed in accordance with the laws of the State of New York.

 

IN
WITNESS WHEREOF the undersigned, by authority duly given, has caused this Notice and Questionnaire to be executed and delivered
either in person or by its duly authorized agent.

 

	Dated: 	 	Beneficial
    owner:	 
	 	 	 	 
	 	 	By:	 
	 	 	 	 
	 	 	Name:	 
	 	 	 	 
	 	 	Title:	 

 

PLEASE
RETURN THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE TO THE COMPANY AT:

 

Xtant
Medical Holdings, Inc.

600
Cruiser Lane

Belgrade,
MT 59714

Attention:
Sean E. Browne

Chief
Executive OfficerExhibit

Execution Version

FIRST AMENDMENT
TO
CREDIT AGREEMENT
Dated as of September 28, 2020
Among
EARTHSTONE ENERGY HOLDINGS, LLC, 
as Borrower,

EARTHSTONE ENERGY, INC.,
as Parent,

WELLS FARGO BANK, NATIONAL ASSOCIATION, 
as Administrative Agent and Issuing Bank, 
ROYAL BANK OF CANADA,
as Syndication Agent,

TRUIST BANK,
as Documentation Agent,

and

The Lenders Party Thereto
________________________________
 
WELLS FARGO SECURITIES, LLC
RBC CAPITAL MARKETS 
Joint Lead Arrangers and Joint Bookrunners 
 
________________________________

FIRST AMENDMENT TO CREDIT AGREEMENT
THIS FIRST AMENDMENT TO CREDIT AGREEMENT (this “First Amendment”) dated as of September 28, 2020, is among Earthstone Energy Holdings, LLC, a Delaware limited liability company (the “Borrower”); Earthstone Energy, Inc., a Delaware corporation (the “Parent”); each of the undersigned guarantors (the “Guarantors”, and together with the Borrower and the Parent, the “Obligors”); each of the Lenders party hereto; and Wells Fargo Bank, National Association (in its individual capacity, “Wells Fargo”), as administrative agent for the Lenders (in such capacity, together with its successors in such capacity, the “Administrative Agent”).
R E C I T A L S
A.    The Borrower, the Parent, the Administrative Agent and the Lenders are parties to that certain Credit Agreement dated as of November 21, 2019 (the “Credit Agreement”), pursuant to which the Lenders have made certain credit available to and on behalf of the Borrower.
B.    The Borrower and the Guarantors are parties to that certain Guarantee and Collateral Agreement, dated as of November 21, 2019 (as amended, restated, amended and restated, supplemented or otherwise modified), made by each of the Loan Parties party thereto in favor of the Administrative Agent.

C.    The Parent is party to that certain Parent Guarantee, dated as of November 21, 2019 (as amended, restated, amended and restated, supplemented or otherwise modified), in favor of the Administrative Agent.
D.    The Borrower has requested and the Administrative Agent and the Lenders party hereto have agreed to amend the Credit Agreement, subject to the terms and conditions of this First Amendment.
E.    NOW, THEREFORE, to induce the Administrative Agent and the Lenders to enter into this First Amendment and in consideration of the promises and the mutual covenants herein contained, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
Section 1.Defined Terms.  Each capitalized term used herein but not otherwise defined herein has the meaning given such term in the Credit Agreement, as amended by this First Amendment (unless otherwise indicated).  Unless otherwise indicated, all section references in this First Amendment refer to sections of the Credit Agreement.
Section 2.    Amendments to Credit Agreement.
2.1    Amendment to Cover Page.  The cover page of the Credit Agreement is hereby amended by replacing the reference to “SUNTRUST BANK” with “TRUIST BANK”.

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2.2    Amendment to Introductory Paragraph.  The introductory paragraph of the Credit Agreement is hereby amended by replacing the reference to “SunTrust Bank” with “Truist Bank”.
2.3    Amendments to Section 1.02 – Certain Defined Terms.  
(a)    The following definitions are hereby amended and restated in their entirety to read as follows:
“Aggregate Elected Borrowing Base Commitments” means (a) on the First Amendment Effective Date, $240,000,000 and (b) at any time thereafter, an amount determined in accordance with Section 2.07(g).
“Agreement” means this Credit Agreement, including any schedules and exhibits hereto, as amended by the First Amendment, and as the same may from time to time be amended, modified, supplemented or restated.
“Applicable Margin” means, for any day, with respect to any ABR Loan or Eurodollar Loan, or with respect to the Commitment Fee Rate, as the case may be, the rate per annum set forth in the Borrowing Base Utilization Grid below based upon the Borrowing Base Utilization Percentage then in effect:
	
						
	Borrowing Base Utilization Grid

	 
	<25%
	≥25%, but
<50%
	≥50%, but
<75%
	≥75%, but
<90%
	≥90%

	ABR Loans
	1.00%
	1.25%
	1.50%
	1.75%
	2.00%

	Eurodollar Loans
	2.00%
	2.25%
	2.50%
	2.75%
	3.00%

	Commitment Fee Rate
	0.375%
	0.375%
	0.50%
	0.50%
	0.50%

Notwithstanding the foregoing, if the Consolidated Leverage Ratio for the Reference Period ending on the last day of any fiscal quarter or fiscal year, as applicable, exceeds 1.50 to 1.00, then the Applicable Margin set forth in the above grid with respect to ABR Loans and Eurodollar Loans (but, for purposes of clarity, not the Commitment Fee Rate) will, in each case, increase by 0.25% during the period from and including the first day immediately following the date the financial statements and the related compliance certificate are delivered pursuant to Section 8.01(a) or Section 8.01(b), as applicable, and Section 8.01(c) for such fiscal quarter or fiscal year, as applicable, through and including the date of delivery of the financial statements and the related compliance certificate pursuant to Section 8.01(a) or Section 8.01(b), as applicable, and Section 8.01(c) for the immediately succeeding fiscal quarter.  Each change in the Applicable Margin and Commitment Fee Rate shall apply during the period commencing on the effective date of such change and ending on the date immediately preceding the effective date of the next such change; provided, however, that if at any time the Borrower fails to deliver (i) a Reserve Report pursuant to Section 8.11(a) or (ii) the financial statements and the related 

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compliance certificate pursuant to Section 8.01(a) or Section 8.01(b), as applicable, and Section 8.01(c), then, if so elected by the Majority Lenders, the “Applicable Margin” means the rate per annum set forth on the grid when the Borrowing Base Utilization Percentage is at its highest level. 
In the event that the certified calculation of the Consolidated Leverage Ratio previously delivered pursuant to Section 8.01(c) was inaccurate (and such inaccuracy is discovered while any Commitments or Loans are outstanding), and such inaccuracy, if corrected, would have led to the application of a higher Applicable Margin for the Loans for any period (an “Applicable Period”) than the Applicable Margin applied for such Applicable Period, then, to the extent any Commitments or Loans are outstanding at such time, (i) the Borrower shall as soon as practicable deliver to the Administrative Agent the correct certified calculation of the Consolidated Leverage Ratio for such Applicable Period, (ii) the Applicable Margin shall be determined as if the level for such higher Applicable Margin were applicable for such Applicable Period, and (iii) the Borrower shall within ten (10) Business Days of written demand thereof by the Administrative Agent pay to the Administrative Agent the accrued additional interest owing as a result of such increased Applicable Margin for the Loans for such Applicable Period, which payment shall be promptly applied by the Administrative Agent in accordance with this Agreement.
“Bail-In Action” means the exercise of any Write-Down and Conversion Powers by the applicable Resolution Authority in respect of any liability of an Affected Financial Institution.
“Bail-In Legislation”  means (a) with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law, regulation rule or requirement for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule and (b) with respect to the United Kingdom, Part I of the United Kingdom Banking Act 2009 (as amended from time to time) and any other law, regulation or rule applicable in the United Kingdom relating to the resolution of unsound or failing banks, investment firms or other financial institutions or their affiliates (other than through liquidation, administration or other insolvency proceedings).
“EBITDAX” means, for any period, Consolidated Net Income for such period plus to the extent not otherwise added to Consolidated Net Income, the aggregate amount of dividends and distributions actually paid in cash during such period to the Borrower and its Restricted Subsidiaries by (x) any Unrestricted Subsidiary or (y) any Person in which the Borrower or any Consolidated Restricted Subsidiary has an interest (which interest does not cause the net income of such other Person to be consolidated with the net income of the Borrower and the Consolidated Restricted Subsidiaries in accordance with GAAP), in the case of each of the 

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foregoing clauses (x) and (y), with respect to its Equity Interests, plus the following expenses or charges to the extent deducted from Consolidated Net Income in such period: the sum of (a) (i) interest expense, (ii) income taxes, franchise or similar taxes, and (iii) depreciation, depletion, amortization, exploration and abandonment expenses, (b) distributions in connection with Equity Interests owned by management employees of the Borrower and its Restricted Subsidiaries permitted under this Agreement; (c) any actual expenses or charges directly incurred in connection with any issuance of Equity Interests, Investment, acquisition, disposition, recapitalization or the incurrence or repayment of Debt permitted to be incurred hereunder (including, for the avoidance of doubt, Debt under the Loan Documents) including a refinancing thereof (whether or not successful) and any amendment or modification to the terms of any such transactions, including any Transaction Expenses, in an aggregate amount not to exceed five percent (5%) of EBITDAX (prior to giving effect thereto) for any period of four consecutive fiscal quarters of the Borrower, and provided that the Borrower has delivered to the Administrative Agent a certificate from a Financial Officer of the Borrower certifying, in good faith, as to such expenses or charges, in such detail, and together with such supporting documentation therefor, as may be reasonably requested by the Administrative Agent; (d) solely to the extent (i) covered by indemnification provisions in any agreement and (ii) actually reimbursed, expenses incurred in connection with any Disposition or other Investment permitted hereunder; (e) any extraordinary, unusual or nonrecurring expenses or losses to the extent such amounts are non-cash; and (f) all other noncash charges, minus the sum of (1) all noncash income added to Consolidated Net Income; (2) gains on asset Dispositions, disposals and abandonments outside of the ordinary course of business and (3) to the extent not otherwise deducted from Consolidated Net Income, the aggregate amount of all Pass-Through Restricted Payment Related Proceeds of Unrestricted Subsidiary Cash Distributions received by the Borrower or any Restricted Subsidiary during such period in an amount equal to the aggregate amount of Pass-Through Restricted Payments actually made by the Borrower or any Restricted Subsidiary pursuant to Pass-Through Restricted Payments during such period.  For the purposes of calculating EBITDAX for any Reference Period, (i) if during such Reference Period the Borrower or any Consolidated Restricted Subsidiary shall have made any Material Disposition, EBITDAX for such Reference Period shall be reduced by an amount equal to the EBITDAX (if positive) attributable to the Property that is the subject of such Material Disposition for such Reference Period or increased by an amount equal to the EBITDAX (if negative) attributable thereto for such Reference Period, (ii) if during such Reference Period the Borrower or any Consolidated Restricted Subsidiary shall have made a Material Acquisition, EBITDAX for such Reference Period shall be calculated after giving pro forma effect thereto as if such Material Acquisition occurred on the first day of such Reference Period and (iii) if during such Reference Period a Consolidated Subsidiary shall be redesignated as either a Consolidated Unrestricted Subsidiary or a Consolidated Restricted Subsidiary, EBITDAX shall be calculated after giving pro forma effect to such redesignation, as if such redesignation had occurred on the first day of such Reference 

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Period.  Notwithstanding anything herein to the contrary: EBITDAX for the Reference Period ending on December 31, 2019 shall be calculated by multiplying EBITDAX for the fiscal quarter ending on such date by four (4); EBITDAX for the Reference Period ending on March 31, 2020 shall be calculated by multiplying EBITDAX for the two consecutive fiscal quarters ending on such date by two (2); and EBITDAX for the Reference Period ending on June 30, 2020 shall be calculated by multiplying EBITDAX for the three consecutive fiscal quarters ending on such date by four-thirds (4/3).
“Permitted Holders” means (i) EnCap and (ii) such other Persons as the Majority Lenders shall expressly consent to in writing as “Permitted Holders”.
“Write-Down and Conversion Powers” means, (a) with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule, and (b) with respect to the United Kingdom, any powers of the applicable Resolution Authority under the Bail-In Legislation to cancel, reduce, modify or change the form of a liability of any UK Financial Institution or any contract or instrument under which that liability arises, to convert all or part of that liability into shares, securities or obligations of that person or any other person, to provide that any such contract or instrument is to have effect as if a right had been exercised under it or to suspend any obligation in respect of that liability or any of the powers under that Bail-In Legislation that are related to or ancillary to any of those powers.
(b)    The following definitions are hereby added where alphabetically appropriate to read as follows:
“Affected Financial Institution” means (a) any EEA Financial Institution or (b) any UK Financial Institution.
“April 2021 Redetermination” has the meaning assigned to such term in Section 2.07(a).
“Consolidated Cash Balance” means, at any time, (a) the aggregate amount of cash and  Cash Equivalents, in each case, held or owned by (whether directly or indirectly), credited to the account of, or otherwise reflected as an asset on the balance sheet of, the Borrower and its Restricted Subsidiaries less (b) the sum of (i) any restricted cash or Cash Equivalents to pay bona fide royalty obligations, working interest obligations, production payments, vendor payments, suspense payments, severance and ad valorem taxes, payroll, payroll taxes, other taxes, employee wage and benefit payments and trust and fiduciary obligations or other obligations of the Borrower or any Restricted Subsidiary to third parties and for which the Borrower or such Restricted Subsidiary either (x) has issued checks or has initiated wires or ACH transfers (but which amounts have not, as of such time, been subtracted from 

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the balance in the relevant account of the Borrower or such Restricted Subsidiary) or (y) reasonably anticipates in good faith that it will issue checks or initiate wires or ACH transfers within five (5) Business Days thereafter, (ii) other amounts permitted to be paid by the Borrower or its Restricted Subsidiaries in accordance with this Agreement and the other Loan Documents for which the Borrower or such Subsidiary has issued checks or has initiated wires or ACH transfers (but which amounts have not, as of such time, been subtracted from the balance in the relevant account of the Borrower or such Restricted Subsidiary), (iii) while and to the extent refundable, any cash or Cash Equivalents held by the Borrower or any Restricted Subsidiary constituting purchase price deposits pursuant to a binding and enforceable purchase and sale agreement with an unaffiliated third party containing customary provisions regarding the payment and refunding of such deposits, (iv) any cash or Cash Equivalents held by the Borrower or any Restricted Subsidiary in good faith to fund any customary deposit in the nature of earnest money with respect to, or the purchase price of, any future acquisition permitted under this Agreement, (v) any cash constituting proceeds from an issuance of common Equity Interests (other than Disqualified Capital Stock) of, or additional common equity contributions to, the Borrower (such amounts described in this clause (v), “Cash Equity Proceeds”); provided that such Cash Equity Proceeds shall be excluded from the calculation of Consolidated Cash Balance (a) only so long as (1) such Cash Equity Proceeds are to be used for the sole purpose of acquiring Oil and Gas Properties (a “Use of Proceeds”) and (2) the Borrower notifies the Administrative Agent, substantially contemporaneously with the receipt of such Cash Equity Proceeds, of the intended Use of Proceeds and (b) only during the period from and including the date such Cash Equity Proceeds are received by the Borrower to but excluding the earlier to occur of (1) the date that is 30 days following the date such Cash Equity Proceeds are received by the Borrower and (2) the date on which the definitive acquisition agreement for the acquisition relating to such Use of Proceeds is terminated for any reason, (vi) cash held to cash collateralize Letters of Credit and (vii) any proceeds of a Borrowing made in the preceding 5 Business Days, which the Borrower expects to use to fund the purchase price or deposits of any acquisition permitted under this Agreement (to the extent such use of proceeds is certified to by the Borrower in the applicable Borrowing Request).
“Consolidated Cash Balance Threshold” means, at any time, the greater of (a) $25,000,000 and (b) 10% of the Loan Limit then in effect.
“First Amendment” means that certain First Amendment to Credit Agreement, dated as of September 28, 2020, among the Borrower, the Parent, the Guarantors, the Administrative Agent and the Lenders party thereto.
“First Amendment Effective Date” has the meaning assigned to such term in the First Amendment. 

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“Pass-Through Restricted Payment” has the meaning assigned to such term in Section 9.04(a)(vi).
“Pass-Through Restricted Payment Related Proceeds” has the meaning assigned to such term in Section 9.04(a)(vi).
“Resolution Authority” means an EEA Resolution Authority or, with respect to any UK Financial Institution, a UK Resolution Authority.
“UK Financial Institution” means any BRRD Undertaking (as such term is defined under the PRA Rulebook (as amended from time to time) promulgated by the United Kingdom Prudential Regulation Authority) or any person falling within IFPRU 11.6 of the FCA Handbook (as amended from time to time) promulgated by the United Kingdom Financial Conduct Authority, which includes certain credit institutions and investment firms, and certain affiliates of such credit institutions or investment firms.
“UK Resolution Authority” means the Bank of England or any other public administrative authority having responsibility for the resolution of any UK Financial Institution.
“Unrestricted Subsidiary Cash Distribution” a cash distribution made by an Unrestricted Subsidiary with respect to its Equity Interests to the Borrower or the Restricted Subsidiary that holds Equity Interests in such Unrestricted Subsidiary.  
(c)    Clause (a) of the definition of “Consolidated Net Income” is hereby amended by adding the following parenthetical to the end thereof:
(other than any Pass-Through Restricted Payment Related Proceeds actually paid by the Borrower pursuant to a Pass-Through Restricted Payment)  
2.4    Amendment to Section 1.06(b).  Section 1.06(b) is hereby amended by replacing the reference to “Sections 9.05(k), 9.05(l), 9.05(m), 9.05(n) and 9.05(p)” contained therein with “Sections 9.05(k), 9.05(l), 9.05(m), 9.05(n), 9.05(p) and 9.05(q)”.
2.5    Amendments to Section 2.03.  Section 2.03 is hereby amended as follows:
(a)    clause (v) therein is hereby amended by deleting “and” from the end thereof; 

(b)    clause (vi) therein is hereby renumbered to be clause (vii);

(c)    a new clause (vi) is hereby inserted immediately following clause (v) therein to read as follows:

(vi)    the Consolidated Cash Balance (without regard to the requested Borrowing) does not, and the pro forma Consolidated Cash Balance (immediately 

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after giving effect to the requested Borrowing) will not, exceed the Consolidated Cash Balance Threshold; and

(d)    The second to the last sentence of Section 2.03 is hereby amended and restated in its entirety to read as follows:
Each Borrowing Request shall constitute a representation that (a) the amount of the requested Borrowing shall not cause the total Revolving Credit Exposures to exceed the Loan Limit and (b) after giving pro forma effect to the requested Borrowing, the Consolidated Cash Balance shall not exceed the Consolidated Cash Balance Threshold.
2.6    Amendment to Section 2.07(a).  Section 2.07(a) is hereby amended and restated in its entirety to read as follows: 
(a)    First Amendment Borrowing Base.  For the period from and including the First Amendment Effective Date to but excluding the next Redetermination Date, the amount of the Borrowing Base shall be $240,000,000.  Notwithstanding the foregoing, the Borrowing Base may be subject to further adjustments in between Scheduled Redeterminations from time to time pursuant to Section 2.07(e), Section 2.07(f) or Section 8.12(c).  For purposes of this Agreement, the determination of the Borrowing Base on the First Amendment Effective Date provided for in the first sentence of this Section 2.07(a) shall constitute the November 1, 2020 Scheduled Redetermination.
2.7    Amendment to Section 2.07(b).  The first sentence of Section 2.07(b) is hereby amended and restated in its entirety to read as follows:
The Borrowing Base shall be redetermined on April 1, 2021 (the “April 2021 Redetermination”) and, thereafter, semi-annually in accordance with this Section 2.07 (each, a “Scheduled Redetermination”), and, subject to Section 2.07(d), such redetermined Borrowing Base shall become effective and applicable to the Borrower, the Administrative Agent, the Issuing Banks and the Lenders on or about April 1, 2021 (in the case of the April 2021 Redetermination), and on or about May 1 and November 1 of each year, commencing November 1, 2021.
2.8    Amendment to Section 2.07(c).  Section 2.07(c) is hereby amended by replacing the phrase “then on or before April 15th and October 15th of such year following the date of delivery” therein with the phrase “then on or before April 15th and October 15th of such year following the date of delivery (or in the case of the April 2021 Redetermination, on or about March 15, 2021)”.
2.9    Amendment to Section 2.07(d).  Section 2.07(d) is hereby amended by replacing the phrase “then on May 1st or November 1st, as applicable,” therein with the phrase  “then on May 1st or November 1st (or in the case of the April 2021 Redetermination, on or about April 1, 2021), as applicable,”.

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2.10    Amendment to Section 3.04(c). Section 3.04(c) is hereby amended by adding a new clause (vi) to the end thereof to read as follows: 
(vi)    If, at the end of the fifth (5th) Business Day after any Borrowing, the proceeds of which were intended to be used by the Borrower pursuant to clause (vii) of the definition of Consolidated Cash Balance, the Borrower has not used the proceeds of such Borrowing as specified in the Borrowing Request for such Borrowing (the amount of such proceeds that have not been so used, the “Unused Proceeds”), such event shall not be a Default, but instead the Borrower shall, on the next succeeding Business Day, prepay the Borrowings in an aggregate principal amount equal to such Unused Proceeds.  To the extent that there are funds of the Borrower or any of its Restricted Subsidiaries on deposit in, or credited to, any Deposit Account, Securities Account or other account maintained with the Administrative Agent (or any Affiliate thereof) or any Lender (or any Affiliate thereof) on any date that the Borrower is required to prepay Loans pursuant to this Section 3.04(c)(vi), the Borrower (on its own behalf and on behalf of the Restricted Subsidiaries) hereby irrevocably authorizes and instructs the Administrative Agent or such Lender to apply such funds to the prepayment of Loans.
2.11    Amendments to Section 6.02.  Section 6.02 is hereby amended as follows:
(a)    a new subsection (d) is hereby inserted immediately following subsection (d) to read as follows:
(d)    At the time of and immediately after giving effect to such Borrowing or the issuance, amendment, renewal or extension of such Letter of Credit, as applicable, the Consolidated Cash Balance shall not exceed the Consolidated Cash Balance Threshold.
(b)    The phrase “as to the matters specified in Section 6.02(a) and (b)” therein is replaced with the phrase “Section 6.02(a), Section 6.02(b) and Section 6.02(d)”.
2.12    Amendment to Section 7.27.  Section 7.27 is hereby amended and restated in its entirety to read as follows.
Section 7.27    Affected Financial Institution. No Loan Party is an Affected Financial Institution.
2.13    Amendment to Section 8.01(c).  Section 8.01(c) is hereby amended by (a) replacing the “and” immediately prior to clause (v) with a comma and (b) adding a new clause (vi) to the end thereof to read as follows:
and (vi) setting forth in reasonable detail (A) the aggregate amount of all Investments made by the Borrower pursuant to each of Section 9.05(k), Section 9.05(p) and Section 9.05(q), (B) the aggregate amount of all Unrestricted Subsidiary Cash Distributions received by the Borrower and its Restricted Subsidiaries and (C) the 

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aggregate amount of all Pass-Through Restricted Payments made pursuant to Section 9.04(a)(vi), in each case, during such fiscal quarter or fiscal year, as applicable.
2.14    Amendment to Section 8.11(a).  Section 8.11(a) is hereby amended by adding the following sentence to the end thereof:
Notwithstanding the foregoing, in connection with the April 2021 Redetermination, the Borrower shall furnish to the Administrative Agent and the Lenders a Reserve Report on or about March 1, 2021, evaluating the Oil and Gas Properties of the Loan Parties as of as of January 1, 2021, which Reserve Report shall be prepared by one or more Approved Petroleum Engineers.
2.15    Amendment to Article VIII.  Article VIII is hereby amended by adding a new Section 8.19 to the end thereof to read as follows:
Section 8.19    Consolidated Cash Balance Information.  Upon the request of the Administrative Agent, such request to be delivered no more than once during any five (5) Business Day period, the Borrower shall provide to the Administrative Agent, on the Business Day next succeeding such request, (a) a certificate of a Financial Officer in substantially the form of Exhibit J, certifying as to the amount of the Consolidated Cash Balance, and (b) attaching thereto, summary and balance statements, in a form reasonably acceptable to the Administrative Agent, for each Deposit account, Securities Account, Commodity Account, or other account in which any Consolidated Cash Balance is held, credited or carried.
2.16    Amendment to Section 9.04(a).  The word “and” immediately before clause (v) of Section 9.04(a) is hereby deleted and clause (v) of Section 9.04(a) is hereby replaced in its entirety with the following clauses (v) and (vi):
(v) the Borrower may make Restricted Payments in cash, so long as both before and immediately after giving effect to such Restricted Payment, (A) no Default, Event of Default or Borrowing Base Deficiency has occurred and is continuing or would result therefrom, (B) the total Revolving Credit Exposures does not exceed 80% of the Loan Limit then in effect and (C) the Consolidated Leverage Ratio is equal to or less than 2.50 to 1.00, as the Consolidated Leverage Ratio is recomputed on such date using (I) Consolidated Total Debt outstanding on such date and (II) EBITDAX for the Reference Period ending on the last day of the fiscal quarter immediately preceding such date for which financial statements are available, and (vi) the Borrower may make Restricted Payments in cash to the Parent (each such Restricted Payment, a “Pass-Through Restricted Payment”) so long as (A) each such Pass-Through Restricted Payment is funded solely with (and in no greater amount than) the proceeds (such proceeds, the “Pass-Through Restricted Payment Related Proceeds”) of an Unrestricted Subsidiary Cash Distribution received by the Borrower or an Restricted Subsidiary on the same day as the Borrower makes such Pass-Through Restricted Payment to the Parent; and (B) the aggregate amount of each 

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such Pass-Through Restricted Payment does not exceed the Pass-Through Restricted Payment Related Proceeds. 
2.17    Amendment to Section 9.05(k).  Section 9.05(k) is hereby amended and restated in its entirety to read as follows:
(k)    in addition to any Investments in Unrestricted Subsidiaries and joint venture entities permitted under Section 9.05(q), additional Investments in Unrestricted Subsidiaries and joint venture entities in an aggregate amount at any one time outstanding not to exceed $20,000,000 (net of the fair market value of any dividends, distributions, or any return of capital received by the applicable Loan Party in respect of Investments previously made pursuant to this clause (k)), so long as both before and immediately after giving effect to each such Investment, (A) no Default, Event of Default or Borrowing Base Deficiency has occurred and is continuing or would result therefrom, (B) the total Revolving Credit Exposures does not exceed 80% of the Loan Limit then in effect and (C) the Consolidated Leverage Ratio is equal to or less than 2.50 to 1.00, as the Consolidated Leverage Ratio is recomputed on such date using (I) Consolidated Total Debt outstanding on such date and (II) EBITDAX for the Reference Period ending on the last day of the fiscal quarter immediately preceding such date for which financial statements are available;
2.18    Amendment to Section 9.05(p).  Section 9.05(p) is hereby amended and restated in its entirety to read as follows:
(p)    other Investments (valued at the time each such Investment is made), in the aggregate at any time outstanding, not to exceed $20,000,000 (net of the fair market value of any dividends, distributions, or any return of capital received by the applicable Loan Party in respect of Investments previously made pursuant to this clause (p)), so long as both before and immediately after giving effect to each such Investment, (A) no Default, Event of Default or Borrowing Base Deficiency has occurred and is continuing or would result therefrom, (B) the total Revolving Credit Exposures does not exceed 80% of the Loan Limit then in effect and (C) the Consolidated Leverage Ratio is equal to or less than 2.50 to 1.00, as the Consolidated Leverage Ratio is recomputed on such date using (I) Consolidated Total Debt outstanding on such date and (II) EBITDAX for the Reference Period ending on the last day of the fiscal quarter immediately preceding such date for which financial statements are available;
2.19    Amendment to Section 9.05.  Section 9.05 is hereby amended by adding a new subsection (q) to the end thereof to read as follows:
(q)    Investments in Unrestricted Subsidiaries and joint venture entities; provided that each such Investment is funded solely with cash proceeds from common equity capital contributions (other than proceeds of Disqualified Capital Stock) received by the Borrower from the holders of its Equity Interests within thirty (30) days prior to the making of such Investment.

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2.20    Amendment to Section 12.19.  Section 12.19 is hereby amended by replacing (a) each reference to “EEA Financial Institution” therein with the term “Affected Financial Institution” and (b) each reference to “an EEA Resolution Authority” and “any EEA Resolution Authority” therein with the phrase “the applicable Resolution Authority”.
2.21    Amendment to Exhibits.  
(a)    Exhibit B to the Credit Agreement is hereby amended and restated in its entirety to read as set forth on Exhibit B to this First Amendment.
(b)    The Credit Agreement is hereby amended by adding a new Exhibit J thereto to read as set forth on Exhibit J to this First Amendment.
(c)    The Table of Contents to the Credit Agreement is hereby amended to add the following references where alphabetically appropriate in the ANNEXES, EXHIBITS AND SCHEDULES portion thereof to read as follows:
Exhibit J    Form of Consolidated Cash Balance Certificate
Section 3.    Conditions of Effectiveness.  This First Amendment will become effective on the date on which each of the following conditions precedent are satisfied or waived (the “First Amendment Effective Date”):
(a)    The Administrative Agent shall have received from the Borrower, Parent, each Guarantor and the Required Lenders, counterparts (in such number as may be requested by the Administrative Agent) of this First Amendment signed on behalf of such Person.
(b)    No Default shall have occurred and be continuing as of the First Amendment Effective Date.
(c)    The Administrative Agent shall have received such other documents as the Administrative Agent or its special counsel may reasonably require.
The Administrative Agent is hereby authorized and directed to declare this First Amendment to be effective when it has received documents confirming compliance with the conditions set forth in this Section 3 or the waiver of such conditions as agreed to by the Required Lenders.  Such declaration shall be final, conclusive and binding upon all parties to the Credit Agreement for all purposes.
Section 4.    Miscellaneous.
(a)    Confirmation.  The provisions of the Credit Agreement, as amended by this First Amendment, shall remain in full force and effect following the effectiveness of this First Amendment.
(b)    Ratification and Affirmation; Representations and Warranties.  Each Obligor hereby: (a) acknowledges the terms of this First Amendment; (b) ratifies and affirms its obligations 

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under, and acknowledges, renews and extends its continued liability under, each Loan Document to which it is a party and agrees that each Loan Document to which it is a party remains in full force and effect, except as expressly amended hereby; (c) agrees that from and after the First Amendment Effective Date each reference to the Credit Agreement in the other Loan Documents shall be deemed to be a reference to the Credit Agreement, as amended by this First Amendment; and (d) represents and warrants to the Lenders that as of the date hereof, after giving effect to the terms of this First Amendment: (i) all of the representations and warranties contained in each Loan Document to which it is a party are true and correct in all material respects (except that any representation and warranty that is qualified by materiality shall be true and correct in all respects), except to the extent any such representations and warranties are expressly limited to an earlier date, in which case, such representations and warranties shall continue to be true and correct in all material respects (except that any representation and warranty that is qualified by materiality shall be true and correct in all respects) as of such specified earlier date and (ii) no Default has occurred and is continuing. 
(c)    Counterparts.  This First Amendment may be executed by one or more of the parties hereto in any number of separate counterparts, and all of such counterparts taken together shall be deemed to constitute one and the same instrument.  Delivery of an executed counterpart of a signature page of this First Amendment by facsimile, electronic communications, as an attachment to an email or other similar electronic means shall be effective as delivery of a manually executed counterpart of this First Amendment.
(d)    NO ORAL AGREEMENT.  THIS FIRST AMENDMENT, THE CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS EXECUTED IN CONNECTION HEREWITH AND THEREWITH REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR UNWRITTEN ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO SUBSEQUENT ORAL AGREEMENTS BETWEEN THE PARTIES.
(e)    GOVERNING LAW.  THIS FIRST AMENDMENT (INCLUDING, BUT NOT LIMITED TO, THE VALIDITY AND ENFORCEABILITY HEREOF) SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS.
(f)    Loan Document.  This First Amendment is a “Loan Document” as defined and described in the Credit Agreement and all of the terms and provisions of the Credit Agreement relating to Loan Documents shall apply hereto.
(g)    Payment of Expenses.  In accordance with Section 12.03, the Borrower agrees to pay or reimburse the Administrative Agent for all of its reasonable and documented out-of-pocket costs and expenses incurred in connection with this First Amendment, any other documents prepared in connection herewith and the transactions contemplated hereby, including, without limitation, the reasonable fees and disbursements of counsel to the Administrative Agent.
(h)    Severability.  Any provision of this First Amendment or any other Loan Document held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the 

13    

validity, legality and enforceability of the remaining provisions hereof or thereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.
(i)    Successors and Assigns. This First Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.
[Signature Pages Follow]

14    

IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be duly executed and delivered by their proper and duly authorized officer(s) as of the day and year first above written.

 	
			
	BORROWER:
	 
	EARTHSTONE ENERGY HOLDINGS, LLC

	 
	 
	 

	 
	By:
	/s/ Mark Lumpkin, Jr.

	 
	Name:
	Mark Lumpkin, Jr.

	 
	Title:
	Executive Vice President and Chief Financial Officer

    

	
			
	PARENT:
	 
	EARTHSTONE ENERGY, INC.

	 
	 
	 

	 
	By:
	/s/ Mark Lumpkin, Jr.

	 
	Name:
	Mark Lumpkin, Jr.

	 
	Title:
	Executive Vice President and Chief Financial Officer

 	
			
	GUARANTORS:
	 
	EARTHSTONE ENERGY, INC.

	 
	 
	 

	 
	By:
	/s/ Mark Lumpkin, Jr.

	 
	Name:
	Mark Lumpkin, Jr.

	 
	Title:
	Executive Vice President and Chief Financial Officer

	 
	 
	 

	 
	 
	SABINE RIVER ENERGY, LLC

	 
	 
	 

	 
	By:
	/s/ Mark Lumpkin, Jr.

	 
	Name:
	Mark Lumpkin, Jr.

	 
	Title:
	Executive Vice President and Chief Financial Officer

Signature Page – First Amendment to Credit Agreement
Earthstone Energy Holdings, LLC

	
			
	 
	 
	LYNDEN USA OPERATING, LLC

	 
	 
	 

	 
	By:
	/s/ Mark Lumpkin, Jr.

	 
	Name:
	Mark Lumpkin, Jr.

	 
	Title:
	Executive Vice President and Chief Financial Officer

	 
	 
	 

	 
	 
	BOLD ENERGY III LLC

	 
	 
	 

	 
	By:
	/s/ Mark Lumpkin, Jr.

	 
	Name:
	Mark Lumpkin, Jr.

	 
	Title:
	Executive Vice President and Chief Financial Officer

	 
	 
	 

	 
	 
	BOLD OPERATING, LLC

	 
	 
	 

	 
	By:
	/s/ Mark Lumpkin, Jr.

	 
	Name:
	Mark Lumpkin, Jr.

	 
	Title:
	Executive Vice President and Chief Financial Officer

Signature Page – First Amendment to Credit Agreement
Earthstone Energy Holdings, LLC

	
			
	ADMINISTRATIVE AGENT, ISSUING BANK AND LENDER:
	 
	WELLS FARGO BANK, NATIONAL ASSOCIATION

	 
	 
	 

	 
	By:
	/s/ Edward Pak

	 
	Name:
	Edward Pak

	 
	Title:
	Director

Signature Page – First Amendment to Credit Agreement
Earthstone Energy Holdings, LLC

	
			
	LENDER:
	 
	ROYAL BANK OF CANADA

	 
	 
	 

	 
	By:
	/s/ Kristan Spivey

	 
	Name:
	Kristan Spivey

	 
	Title:
	Authorized Signatory

Signature Page – First Amendment to Credit Agreement
Earthstone Energy Holdings, LLC

	
			
	LENDER:
	 
	TRUIST BANK

	 
	 
	 

	 
	By:
	/s/ Benjamin L. Brown

	 
	Name:
	Benjamin L. Brown

	 
	Title:
	Director

Signature Page – First Amendment to Credit Agreement
Earthstone Energy Holdings, LLC

	
			
	LENDER:
	 
	CITIZENS BANK, N.A.

	 
	 
	 

	 
	By:
	/s/ Kelly Graham

	 
	Name:
	Kelly Graham

	 
	Title:
	Vice President

Signature Page – First Amendment to Credit Agreement
Earthstone Energy Holdings, LLC

	
			
	LENDER:
	 
	KEYBANK NATIONAL ASSOCIATION

	 
	 
	 

	 
	By:
	/s/ George E. McKean

	 
	Name:
	George E. McKean

	 
	Title:
	Senior Vice President

Signature Page – First Amendment to Credit Agreement
Earthstone Energy Holdings, LLC

	
			
	LENDER:
	 
	PNC BANK, NATIONAL ASSOCIATION

	 
	 
	 

	 
	By:
	/s/ John Engel

	 
	Name:
	John Engel

	 
	Title:
	Vice President

Signature Page – First Amendment to Credit Agreement
Earthstone Energy Holdings, LLC

	
			
	LENDER:
	 
	U.S. BANK NATIONAL ASSOCIATION

	 
	 
	 

	 
	By:
	/s/ John C. Lozano

	 
	Name:
	John C. Lozano

	 
	Title:
	Senior Vice President

Signature Page – First Amendment to Credit Agreement
Earthstone Energy Holdings, LLC

	
			
	LENDER:
	 
	IBERIABANK, a Division of First Horizon Bank

	 
	 
	 

	 
	By:
	/s/ W. Bryan Chapman

	 
	Name:
	W. Bryan Chapman

	 
	Title:
	Market President-Energy Lending

    
                        
                                

Signature Page – First Amendment to Credit Agreement
Earthstone Energy Holdings, LLC

EXHIBIT B-1 
FORM OF BORROWING REQUEST
[                   ], 20[   ]
Earthstone Energy Holdings, LLC, a limited liability company duly formed and existing under the laws of the state of Delaware (the “Borrower”), pursuant to Section 2.03 of the Credit Agreement dated as of November 21, 2019 (together with all amendments, restatements, supplements or other modifications thereto, the “Credit Agreement”) among the Borrower, Earthstone Energy, Inc., a Delaware corporation, as Parent, Wells Fargo Bank, National Association, as Administrative Agent and as Issuing Bank; and the other agents and lenders (the “Lenders”) which are or become parties thereto (unless otherwise defined herein, each capitalized term used herein is defined in the Credit Agreement), hereby requests a Borrowing as follows:
(i)    Aggregate amount of the requested Borrowing is $[                   ]; 
(ii)    Date of such Borrowing is [                   ], 20[   ];
(iii)    Requested Borrowing is to be [an ABR Borrowing] [a Eurodollar Borrowing];
(iv)    In the case of a Eurodollar Borrowing, the initial Interest Period applicable thereto is [                   ];
(v)    Amount of the Borrowing Base in effect on the date hereof is $[                   ];
(vi)    Amount of Aggregate Elected Borrowing Base Commitments in effect on the date hereof is $[                   ];
(vii)    Total Revolving Credit Exposures on the date hereof (i.e., outstanding principal amount of Loans and total LC Exposure), excluding Swingline Exposure is $[                   ];
(viii)    Pro forma total Revolving Credit Exposures (giving effect to the requested Borrowing), excluding Swingline Exposure, is $[                   ]; 
(ix)    The Consolidated Cash Balance (without regard to the requested Borrowing) does not, and the pro forma Consolidated Cash Balance (immediately after giving effect to the requested Borrowing)  will not, exceed the Consolidated Cash Balance Threshold; and
(x)    Location and number of the Borrower’s account to which funds are to be disbursed, which shall comply with the requirements of Section 2.05 of the Credit Agreement, is as follows:
[________________________]
[________________________]
[________________________]
[________________________]
[________________________]

EXHIBIT B-1
    
 

The undersigned certifies that he/she is the [                ] of Earthstone Energy Holdings, LLC, and that as such he/she is authorized to execute this certificate on behalf of the Borrower.  The undersigned further certifies, represents and warrants on behalf of the Borrower that the Borrower is entitled to receive the requested Borrowing under the terms and conditions of the Credit Agreement.
    
EARTHSTONE ENERGY HOLDINGS, LLC

By:  ______________________________________ 
Name:
Title:   

EXHIBIT B-1
    
 

EXHIBIT J
FORM OF CONSOLIDATED CASH BALANCE CERTIFICATE

Reference is made to Credit Agreement dated as of November 21, 2019 (together with all amendments, restatements, supplements or other modifications thereto, the “Credit Agreement”) among the Earthstone Energy Holdings, LLC, a limited liability company duly formed and existing under the laws of the state of Delaware (the “Borrower”), Earthstone Energy, Inc., a Delaware corporation, as Parent, Wells Fargo Bank, National Association, as Administrative Agent and as Issuing Bank; and the other agents and lenders which are or become parties thereto (unless otherwise defined herein, each capitalized term used herein is defined in the Credit Agreement).  The undersigned hereby certifies on behalf of the Borrower (and not individually) as follows:

(a)    The Consolidated Cash Balance as of the date hereof is $_______________.

(b)    Attached hereto are summary and balance statements, in a form reasonably acceptable to the Administrative Agent, for each Deposit Account, Securities Account, Commodity Account, or other account in which any Consolidated Cash Balance is held, credited or carried as of the date hereof.

The undersigned is the [                ] of the Borrower, and as such he/she is authorized to execute this certificate on behalf of the Borrower.  

EXECUTED AND DELIVERED this [          ] day of [          ].

EARTHSTONE ENERGY HOLDINGS, LLC

By:  ______________________________________ 
Name:
Title:

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