Document:

EXHIBIT 10.3

 

FIFTH AMENDMENT
AND WAIVER

 

This FIFTH
AMENDMENT AND WAIVER (this “Amendment and Waiver”) is made and entered into as of December 28, 2017 by XTANT
MEDICAL HOLDINGS, INC., a Delaware corporation (the “Company”), ROS
acquisition offshore lp, a Cayman Islands Exempted Limited Partnership (“ROS”) and ORBIMED ROYALTY
OPPORTUNITIES II, LP, a Delaware limited partnership (“Royalty Opportunities” and, together with ROS, collectively,
the “Holders”).

 

WHEREAS, ROS is the
registered holder of a Convertible Promissory Note in the aggregate principal amount of $1,428,552.78 issued on April 14, 2016
and Convertible Promissory Notes in the aggregate principal amounts of $995,700 and $42,856.59 issued on January 17, 2017 (collectively,
the “ROS Notes”), in each case, by the Company;

 

WHEREAS, Royalty Opportunities
is the registered holder of a Convertible Promissory Note in the aggregate principal amount of $809,613.67 issued on April 14,
2016 and Convertible Promissory Notes in the aggregate principal amounts of $564,300 and $24,288.41 issued on January 17, 2017,
in each case, by the Company (collectively, the “Royalty Opportunities Notes” and together with the ROS Notes,
collectively, the “Notes”);

 

WHEREAS, the Company
and the Holders are party to that certain Amendment and Waiver, dated as of August 15, 2017, that certain Second Amendment and
Waiver, dated as of September 29, 2017, that certain Third Amendment and Waiver, dated as of October 31, 2017, and that certain
Fourth Amendment and Waiver, dated as of November 30, 2017, pursuant to which interest accrued on the Notes was deferred until
December 31, 2017 and the Holders waived any Event of Default that occurred as a result of the Company’s failure to pay interest
due on July 15, 2017; and

 

WHEREAS, pursuant
to Section 10.13 of the Notes, the terms and conditions of the Notes may be amended or waived by the written consent of each affected
holder of the Notes.

 

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

 

1.           Definitions.
Capitalized terms used herein without definition shall have the meanings assigned to such terms in the Notes.

 

2.           Interest
Deferral.

 

(a)          Interest
accrued on the Notes otherwise required to be paid in cash on July 15, 2017 shall instead be required to be paid in cash on January
31, 2018, plus interest accrued on such interest from July 15, 2017 to the date of payment thereof at a rate equal to 6.00% per
annum plus 100 basis points.

 

(b)          Interest
accrued on the Notes otherwise required to be paid in cash on January 15, 2018 shall instead be required to be paid in cash on
January 31, 2018, plus interest accrued on such interest from January 15, 2017 to the date of payment thereof at a rate equal to
6.00% per annum plus 100 basis points.

 

     

     

    

 

3.           Waiver.
Each Holder hereby waives any Event of Default that has occurred under the Notes as a result of the Company’s failure to
pay interest accrued on the Notes on July 15, 2017 or January 15, 2018.

 

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

 

5.           Governing
Law. THIS AMENDMENT AND WAIVER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF
NEW YORK (INCLUDING FOR SUCH PURPOSE SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK).

 

[Signature Pages Follow]

 

    	 	-2-	 

     

    

 

IN WITNESS WHEREOF, the parties
hereto have caused this Amendment and Waiver to be executed as of the day and year first above written.

 

	 	XTANT MEDICAL HOLDINGS, INC.,
	 	 	 
	 	By:	/s/ Carl D. O’Connell
	 	Name:	Carl D. O’Connell
	 	Title:	Chief Executive Officer

 

Signature Page to Fifth Amendment and Waiver

 

     

     

    

 

	 	ROS Acquisition Offshore LP,
	 	 
	 	By OrbiMed Advisors LLC, solely in its
	 	capacity as Investment Manager
	 	 	 
	 	By:	/s/ W. Carter Neild
	 	Name:	W. Carter Neild
	 	Title:	Member
	 	 	 
	 	ORBIMED ROYALTY OPPORTUNITIES II, LP,
	 	 
	 	By OrbiMed ROF II LLC,
	 	its General Partner 
	 	 
	 	By OrbiMed Advisors LLC,
	 	its Managing Member
	 	 	 
	 	By:	/s/ W. Carter Neild
	 	Name:	W. Carter Neild
	 	Title:	Member

 

Signature Page to Fifth Amendment and WaiverEX-4.1

 Exhibit 4.1 
  

					
		  	 [SOLID BIOSCIENCES

INC. LOGO]
	    	COMMON STOCK
			
	Number	  	 	    	Shares
			
		  	 INCORPORATED UNDER THE LAWS OF THE

STATE OF DELAWARE
	    	CUSIP

 This Certifies That 

Is the Owner of 
 FULLY
PAID AND NON-ASSESSABLE COMMON SHARES, PAR VALUE $0.001 PER SHARE, OF 
 SOLID BIOSCIENCES
INC. 
 transferable on the books of the Corporation in person or by duly authorized attorney, on surrender of this certificate properly endorsed. This
certificate and the shares represented hereby are issued and shall be held subject to all the provisions of the Certificate of Incorporation of the Corporation and the Bylaws of the Corporation, as now or hereafter amended, to all of which the
holder hereof by the acceptance hereof assents. This certificate is not valid unless countersigned and registered by the Transfer Agent and Registrar. 

Witness the facsimile seal of the Corporation and the facsimile signatures of its duly authorized officers. 

 

							
	Dated:	  		  	
			
	  
	  	[CORPORATE SEAL]	  	 COUNTERSIGNED AND REGISTERED:

	 CHIEF EXECUTIVE OFFICER
	  		  	[●]
			
		  		  	TRANSFER AGENT AND REGISTRAR
				
	  
	  		  	BY:	 	                                      
                                      
	 SECRETARY
	  		  	 AUTHORIZED SIGNATURE

  
 - 1 - 

 SOLID BIOSCIENCES INC. 

The following abbreviations, when used in the inscription on the face of this certificate, shall be construed as though they were written out
in full according to applicable laws or regulations: 
  

							
	TEN COM	  	- as tenants in common	  	UNIF GIFT MIN ACT	  	 -
                 Custodian                     
  

    (Cust)                     
     (Minor)     

				
	TEN ENT	  	 - as tenants by the entireties
	  		  	 under Uniform Gifts to Minors
 Act
                                         
          

                          
(State)

				
	JT TEN	  	- as joint tenants with right of survivorship and not as tenants in common	  	UNIF TRF MIN ACT	  	 -              Custodian (until age
           )
     (Cust)

                     under Uniform Transfers

      (Minor)
 to Minors Act
                                    

(State)

 Additional abbreviations may also be used though not in the above list. 

For value received,
                                     hereby sell(s), assign(s)
and transfer(s) unto 
  

			
	(Please Insert Social Security Number or Other Identifying Number of Assignee)	 	 
		
	  
	 	                            
		
	(Please Print or Typewrite Name and Address, Including Zip Code of Assignee)	 	
		
	  
	 	
		
	  
	 	
		
	Shares of the capital stock represented by the within Certificate, and do(es) hereby irrevocably	 	
		
	constitute and appoint
                                         
                                         
                                         
                                         
                	 	

 Attorney to transfer the said shares on the books of the within named Corporation with full power of substitution in the
premises. 
  

					
	
Dated                  
                                         
                                  
	 		  	                                     
                                         
              
			
		 		  	NOTICE: THE SIGNATURE TO THIS ASSIGNMENT MUST CORRESPOND WITH THE NAME AS WRITTEN UPON THE FACE OF THE CERTIFICATE IN EVERY PARTICULAR WITHOUT ALTERATION OR ENLARGEMENT, OR ANY CHANGE WHATEVER.

  
 - 2 - 

 Signature(s) Guaranteed 

By:                         
                                         
                                         
                                         
                                 

THE SIGNATURE(S) MUST BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP
IN AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM) PURSUANT TO S.E.C. RULE 17AD-15. 
 The within named
Corporation will furnish without charge to each stockholder who so requests a statement of the powers, designations, preferences and relative, participating, optional or other special rights of each class of stock or series thereof of the
Corporation and the qualifications, limitations or restrictions of such preferences and/or rights. Such requests may be made to the Corporation’s Secretary at the principal office of the Corporation. 

  
 - 3 -EX-10.1

 Exhibit 10.1 

EMPLOYMENT AGREEMENT 

In consideration and as a condition of my employment and/or continued employment by Solid Ventures, LLC, a Delaware limited liability company
(the “Company”), I hereby agree with the Company as follows: 
 1.    Best Efforts. During the period
of my employment with the Company, I shall devote my full time and best efforts to the Company’s business and I shall neither pursue any business opportunity outside the Company nor take any position with any organization other than the
Company; provided, however, that I may participate in professional, civic, social and/or charitable activities that do not adversely affect my ability to carry out my responsibilities to the Company. I shall carry out my duties at the offices of the
Company and shall be required to travel within the United States and elsewhere as part of those duties when necessary. My initial position with the Company shall be as Chief Executive Officer, which may be changed by the Company upon notice to me at
any time. 
 2.    Compensation and Benefits. I understand that during the period of my employment, I shall
receive a salary at the initial rate of $300,000 per annum and shall be eligible to receive an annual incentive bonus. The amount of such bonus, if any, shall be in the sole discretion of the Board of Managers of the Company. I also understand that
I shall be entitled to participate in any benefit programs that the Company establishes and makes available to other employees, to the extent that my position, tenure, salary, age, health and other qualifications make me eligible to participate.
Such participation shall be subject to (a) the terms of the applicable plan documents, (b) generally applicable Company policies and (c) the discretion of the Board of Managers or any administrative or other committee provided for in
or contemplated by such plan. 
 3.    Work-Made-for Hire. 

(a)    All right, title and interest in any and all writings, ideas, inventions,
know-how, designs, improvements or other property created during my employment relating in any way to the assets, business or operations of the Company, constituting copyrights, patents, trademarks, service
marks and related rights or other forms of proprietary rights or information (regardless of whether any such copyrights, patents, trademarks and service marks or other rights have or may be registered) that are created, adapted or improved by me
(whether alone or in conjunction with any other person or employee) or which I disclose to the Company, or which are based upon material facts, ideas or other property gathered from, for or about any personnel, contractors or clients of the Company,
and all material, whether created during or after my employment, that includes any of the foregoing (collectively, “Covered Material”), shall be owned by the Company and to the extent that it includes copyrightable subject matter, shall be
deemed a work made for hire for the Company within the meaning of the United States Copyright Act of 1976 and for all other purposes. If any Covered Material is deemed not to be work made for hire, such Covered Material is hereby assigned by me
to the Company and I shall not have or claim to have, under this Agreement or otherwise, any right, title or interest of any kind or nature whatsoever in such Covered Material.

 (b)    The Company shall have the right to apply for and obtain registrations
in the United States Copyright Office and the United States Patent and Trademark Office, in its own or its designee’s name, of its rights in any or all of the Covered Material. If for any reason the rights in any Covered Material are
registered, or applied to be registered, in my name, I shall assign in writing such application or registration to the Company and hereby authorize and appoint the Company its agent for the purpose of recording such assignment. 

(c)    Whenever the Company shall so request, whether during or after my employment, I shall execute, acknowledge and
deliver all applications, assignments or other instruments; make or cause to be made all rightful oaths; testify in all legal proceedings; communicate all known facts which relate to such works, copyrights, inventions, ideas, discoveries, designs
and improvements; perform all lawful acts and otherwise render all such assistance as the Company may deem necessary to protect the Company’s interest therein including any assistance which the Company shall deem necessary in connection with
any proceeding or litigation involving the same. The Company shall reimburse me for all reasonable out-of-pocket costs, incurred by me in rendering any such
assistance requested by the Company pursuant to this Section. 
 4.    Nondisclosure. I shall not at any time,
whether during or after my employment, regardless of the reason for my termination, reveal to any person or entity any Confidential Information except to employees of the Company who need to know such Confidential Information for the purposes of
their employment, or as otherwise authorized by the Company in writing. The term “Confidential Information” shall include, without limitation, any information and derivative information, in whatever form or medium, including oral
information, concerning the organization, business, finances or personnel of the Company or of any third party which the Company is under an obligation to keep confidential or that is maintained by the Company as confidential. Such Confidential
Information includes, but is not limited to, research and development activities performed by or on behalf of the Company, financial information about the Company or of any third party, personnel information, information regarding the business
activities or personnel actions of the Company, and any confidential information or documents of third parties, including, but not limited to, business plans, projects, and proposals. Notwithstanding the foregoing, Confidential Information does not
include information that: (a) is, at the time of determination, publicly known and generally available in the public domain other than in consequence of improper action by any person; or (b) was acquired by me free and clear of any duty of
confidentiality or restricted use and without improper action by the transferor of such information or any other person. I shall keep confidential all matters entrusted to me and shall not use or attempt to use any Confidential Information except as
may be required in the ordinary course of performing my duties as an employee of the Company, and I shall not use any Confidential Information in any manner that may injure or cause loss or may be calculated to injure or cause loss to the Company,
whether directly or indirectly. 
 5.    Non-hire of Employees and
Consultants. During my employment and the one year period following the termination of my employment, regardless of the reason for my termination, I will not (except on the Company’s behalf), directly or indirectly, alone or as a
consultant, partner, officer, director, employee, joint venturer, lender or stockholder of any entity, employ, hire, retain, attempt to employ, hire or retain, or knowingly permit any company or business organization by which I am employed or which
is directly or indirectly controlled by me to employ, hire or retain, any Company employee or consultant, or any such person whose employment or consultancy with the Company has terminated within six months prior to or after my departure from the
Company. 

  
 - 2 - 

 6.    Nonsolicitation of Employees and Consultants. During my
employment and the one year period following the termination of my employment, regardless of the reason for my termination, I will not (except on the Company’s behalf), directly or indirectly, alone or as a consultant, partner, officer,
director, employee, joint venturer, lender or stockholder of any entity, in any manner seek to solicit or induce any Company employee or consultant, or any such person whose employment or consultancy with the Company has terminated within six months
prior to or after my departure from the Company, to leave his or her employment or consultancy with the Company, or assist in the recruitment or hiring of any such person. 

7.    Noncompetition. During my employment and the one year period following the termination of my employment,
regardless of the reason for my termination, I will not engage in any business or enterprise which is in any way competitive or conflicting with the interests or business of the Company including, without limitation, (A) any business or
activity currently conducted by the Company, and (B) any business that the Company intends to conduct and of which I am aware; provided that nothing in this Section 6 shall in any way restrict me from promoting treatments for, or
endeavoring to cure, Duchenne Muscular Dystrophy. 
 8.    Nondisparagement. I shall not at any time, whether
during or after the termination of my employment, regardless of the reason for my termination, make to any person or entity disparaging, critical or otherwise detrimental comments of a business or personal nature relating to the Company or its
personnel. 
 9.    Company Property. I agree that during my employment I shall not make, use or permit to be
used any Company Property otherwise than for the benefit of the Company. The term “Company Property” shall include all Confidential Information; the Company’s records, files and data; all Company computers, cellular telephones,
personal digital assistants, credit and/or calling cards, keys, access cards and the like; and all other documentation or materials of any nature and in any form, whether written, printed, electronic or in digital format or otherwise, relating to
any matter within the scope of the business of the Company or concerning any of its dealings or affairs and any other Company property in my possession, custody or control. I further agree that I shall not, after the termination of my employment,
regardless of the reason for my termination, use or permit others to use any such Company Property. I acknowledge and agree that all Company Property shall be and remain the sole and exclusive property of the Company. Immediately upon the
termination of my employment I shall deliver all Company Property in my possession, and all copies thereof, to the Company. 

10.    Term of Employment. I understand and agree that my employment with the Company is for an indefinite period
and that either the Company or I may terminate my employment at any time, for any or no reason, on at least six months’ prior notice. Notwithstanding the foregoing, the Company may terminate my employment for “Cause” immediately upon
notice. For purposes of this Agreement, a termination shall be for Cause if, inter alia, any one or more of the following has occurred: 

(i)    I have committed an act of fraud, embezzlement, misappropriation or breach of fiduciary duty against
the Company or any of its customers or vendors; or 

  
 - 3 - 

 (ii)    I have been convicted of, or pleaded guilty or nolo
contendere to, any crime triable upon indictment or involving moral turpitude; or 
 (iii)    I have been
chronically absent from work, (excluding vacations, illnesses or leaves of absence approved by the Company); or 

(iv)    I have refused, after explicit written notice, to obey any lawful direction by the Board of
Managers which is consistent with my duties hereunder; or 
 (v)    I have engaged in the unlawful use
(including being under the influence) or possession of illegal drugs on the Company’s premises; or 

(vi)    I have breached any of the provisions or representations of this Agreement, which such breach has,
in the good faith judgment of the Board of Managers, resulted in a material detrimental effect to the Company. 

11.    Representations. 

(a)    I represent that my employment with the Company and my performance of all of the terms of this Agreement do not and
will not breach any agreement to keep in confidence proprietary information acquired by me in confidence or in trust prior to my Company employment, nor will it violate any nonsolicitation and/or noncompetition agreements entered into prior to my
Company employment. I have not entered into, and I shall not enter into, any agreement either written or oral in conflict herewith. 

(b)    I further agree that any breach of this Agreement by me will cause irreparable damage to the Company and that in
the event of such breach the Company shall have, in addition to any and all remedies of law, the right to an injunction, specific performance or other equitable relief to prevent the violation of my obligations hereunder. 

12.    Waiver; Amendments. Any waiver by the Company of a breach of any provision of this Agreement shall not
operate or be construed as a waiver of any subsequent breach of such provision or any other provision hereof. In addition, any amendment to or modification of this Agreement or any waiver of any provision hereof must be in writing. 

13.    Severability. I agree that each provision and the subparts of each provision herein shall be treated as
separate and independent clauses, and the unenforceability of any one clause shall in no way impair the enforceability of any of the other clauses of the Agreement. Moreover, if one or more of the provisions contained in this Agreement shall for any
reason be held to be excessively broad as to scope, activity, subject or otherwise so as to be unenforceable at law, such provision or provisions shall be construed by the appropriate judicial body by limiting or reducing it or them, so as to be
enforceable to the maximum extent compatible with the applicable law as it shall then appear. I hereby further agree that the language of all parts of this Agreement shall in all cases be construed as a whole according to its fair meaning and not
strictly for or against either of the parties. 

  
 - 4 - 

 14.    Survival. This Agreement shall be effective as of the date
entered below. My obligations under this Agreement shall survive the termination of my employment regardless of the reason for or manner of such termination and shall be binding upon my heirs, executors, administrators and legal representatives.

 15.    Assignment. The Company shall have the right to assign this Agreement to its successors and assigns,
and all covenants and agreements hereunder shall inure to the benefit of and be enforceable by said successors or assigns. I may not assign this Agreement. 

16.    Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of
Delaware and shall in all respects be interpreted, enforced and governed under the internal and domestic laws of Delaware, without giving effect to the principles of conflicts of laws of such state. The laws of the State of Delaware shall govern any
claims or legal actions by one party against the other arising out of the relationship between the parties contemplated herein (whether or not arising under this Agreement). 

17.    Entire Agreement. This Agreement sets forth the complete, sole and entire agreement between the parties with
respect to the subject matter herein and supersedes any and all other agreements, negotiations, discussions, proposals, or understandings, whether oral or written, previously entered into, discussed or considered by the parties. 

IN WITNESS HEREOF, I have executed this Agreement as of the date first written below. 

 

			
	Signature:	 	 /s/ Ilan Ganot

		 	Ilan Ganot
		
	Date:	 	December 20, 2013
		
	Address:	 	
		 	

  
 - 5 - 

			
	 Accepted and agreed to as of
 the
date set forth above:

	
	Solid Ventures, LLC
		
	By:	 	 Ilan Ganot

	Signature:	 	 /s/ Ilan Ganot

	Title:	 	 CEO

  
 - 6 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00278-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00278-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00278-of-00352.parquet"}]]