Document:

Exhibit 10.1 

 

 

RESTRUCTURING AND EXCHANGE AGREEMENT

 

BY AND AMONG

 

XTANT MEDICAL HOLDINGS, INC.,

  

ORBIMED ROYALTY OPPORTUNITIES II, LP,

ROS ACQUISITION OFFSHORE LP,

 

AND

 

THE CONSENTING NOTEHOLDERS PARTIES HERETO

 

Dated as of January 11, 2018

 

 

    	 	 	 

     

    

 

TABLE OF CONTENTS

 

	ARTICLE I DEFINITIONS AND ACCOUNTING TERMS	2
	 	 
	Section 1.1.  Definitions	2
	 	 
	Section 1.2.  Computation of Time Periods	10
	 	 
	Section 1.3.  Terms Generally; Rules of Interpretation	10
	 	 
	Section 1.4.  Accounting Terms	11
	 	 
	Article II RESTRUCTURING TRANSACTIONS	11
	 	 
	Section 2.1.  Restructuring Transactions	11
	 	 
	Section 2.2.  Authorizations and Obligations Relating to the Restructuring Transactions	16
	 	 
	Section 2.3.  Closing	17
	 	 
	Section 2.4.  Public Announcements	17
	 	 
	Article III REPRESENTATIONS AND WARRANTIES OF THE COMPANY	17
	 	 
	Section 3.1.  Due Organization, Power and Authority	17
	 	 
	Section 3.2.  Capitalization	18
	 	 
	Section 3.3.  Non-Contravention	19
	 	 
	Section 3.4.  No Approvals or Consents	19
	 	 
	Section 3.5.  Financial Statements; Internal Controls	20
	 	 
	Section 3.6.  No Undisclosed Liabilities	21
	 	 
	Section 3.7.  No Actions or Proceedings	21
	 	 
	Section 3.8.  Title to Assets and Properties	22
	 	 
	Section 3.9.  Intellectual Property	22
	 	 
	Section 3.10.  Taxes	23
	 	 
	Section 3.11.  Labor Matters	23
	 	 
	Section 3.12.  Private Offering; No Integration	23
	 	 
	Section 3.13.  Investment Company Act	23

 

    	 	i	 

     

    

 

	Section 3.14.  Insurance	23
	 	 
	Section 3.15.  Compliance with Laws; Permits	24
	 	 
	Section 3.16.  Material Contracts	26
	 	 
	Section 3.17.  Information Supplied	29
	 	 
	Section 3.18.  Brokerage Fees	29
	 	 
	Section 3.19.  Fairness Opinion	29
	 	 
	Article IV REPRESENTATIONS AND WARRANTIES OF THE INVESTORS	30
	 	 
	Section 4.1.  Due Organization, Power and Authority	30
	 	 
	Section 4.2.  Investor Status	30
	 	 
	Section 4.3.  No Approvals or Consents	30
	 	 
	Section 4.4.  No Actions or Proceedings	30
	 	 
	Section 4.5.  Non-Contravention	31
	 	 
	Article V REPRESENTATIONS AND WARRANTIES OF THE CONSENTING NOTEHOLDERS	31
	 	 
	Section 5.1.  Ownership; Due Organization, Power and Authority	31
	 	 
	Section 5.2.  Investor Status	32
	 	 
	Section 5.3.  No Approvals or Consents	32
	 	 
	Section 5.4.  No Actions or Proceedings	32
	 	 
	Section 5.5.  Non-Contravention	32
	 	 
	Article VI COVENANTS OF THE PARTIES	33
	 	 
	Section 6.1.  Covenants of the Company	33
	 	 
	Section 6.2.  Covenants of the Non-Company Parties	40
	 	 
	Section 6.3.  Mutual Covenants of the Parties	41
	 	 
	Article VII CONDITIONS TO CLOSING	41
	 	 
	Section 7.1.  Each Party’s Conditions to Closing	41
	 	 
	Section 7.2.  Company’s Conditions to Closing	42

 

    	 	ii	 

     

    

 

	Section 7.3.  Investors’ Conditions to Closing	42
	 	 
	Section 7.4.  Consenting Noteholders’ Conditions to Closing	43
	 	 
	Section 7.5.  Frustration of Closing Conditions	43
	 	 
	Section 7.6.  NYSE American Listing	43
	 	 
	Article VIII TERMINATION	44
	 	 
	Section 8.1.  Termination	44
	 	 
	Section 8.2.  Effect of Termination	45
	 	 
	Section 8.3.  Notice of Termination	45
	 	 
	Section 8.4.  NYSE American Listing	45
	 	 
	Article IX INDEMNIFICATION	46
	 	 
	Section 9.1.  Indemnification	46
	 	 
	Article X MUTUAL RELEASES	47
	 	 
	Section 10.1.  Mutual Releases	47
	 	 
	Article XI MISCELLANEOUS	48
	 	 
	Section 11.1.  Waiver of Punitive Damages	48
	 	 
	Section 11.2.  Notices	48
	 	 
	Section 11.3.  Assignment; Successors	49
	 	 
	Section 11.4.  No Waiver; Remedies Cumulative	49
	 	 
	Section 11.5.  Counterpart	49
	 	 
	Section 11.6.  Headings	49
	 	 
	Section 11.7.  Governing Law; Submission to Jurisdiction; Venue	50
	 	 
	Section 11.8.  Severability	50
	 	 
	Section 11.9.  Entirety	50
	 	 
	Section 11.10.  No Third Party Beneficiaries	51
	 	 
	Section 11.11.  Amendments and Waivers of Terms	51

 

    	 	iii	 

     

    

 

	Section 11.12.  Construction	51
	 	 
	Section 11.13.  Survival	51
	 	 
	Section 11.14.  Nature of Consenting Noteholder Obligations	52
	 	 
	Section 11.15  Reservation of Rights; Settlement Discussions	52

 

Exhibits:

 

	Exhibit A	Form of Charter Amendment
	Exhibit B	Credit Agreement Amendment Terms
	Exhibit C	Form of Director Indemnification Agreement
	Exhibit D	Form of Investors Rights Agreement
	Exhibit E	Form of Preliminary Proxy Statement
	Exhibit F	Form of Registration Rights Agreement
	Exhibit G	Form of Second Amended and Restated Bylaws

 

Schedules:

 

	Schedule 1	New Directors
	Schedule 2.1(b)	Company Stockholders Party to Support Agreement
	Schedule 6.1(a)	Business Operations

 

    	 	iv	 

     

    

 

RESTRUCTURING AND EXCHANGE AGREEMENT

 

This RESTRUCTURING
AND EXCHANGE AGREEMENT, dated as of January 11, 2018 (this “Agreement”), by and among: (i) Xtant
Medical Holdings, Inc. (the “Company”); (ii) OrbiMed Royalty Opportunities II, LP (“OrbiMed”)
and ROS Acquisition Offshore LP (“ROS” and, together with OrbiMed, the “Investors”); and
(iii) the undersigned holders of Convertible Notes (as defined below) of the Company (each such holder, solely in its capacity
as such a holder, a “Consenting Noteholder” and collectively the “Consenting Noteholders”).
Each of the Company, the Investors and the Consenting Noteholders may hereinafter be referred to as a “Party”
and collectively as the “Parties”. Capitalized terms that are used and are not otherwise defined herein have
the meanings given to them in Section 1.1.

 

WHEREAS, the
Parties have engaged in arm’s length good faith negotiations regarding the restructuring and exchange transactions set forth
in Section 2.1 of this Agreement (collectively, the “Restructuring Transactions”) pursuant to the terms and
conditions set forth in this Agreement and the Restructuring Documents, with respect to the capital structure of the Company, including
its outstanding Convertible Notes and certain indebtedness of the Company under the Existing Facility;

 

WHEREAS, promptly
following the date hereof, the Company will enter into bonus agreements (the “Bonus Agreements”) with certain
members of management of the Company providing for cash success bonuses, pursuant to terms agreed between the Company and the Investors,
to be paid to such members of management after the Closing;

 

WHEREAS, the
Investors and the Company have entered into a support agreement, dated as of the date hereof, with certain Company stockholders
(the “Support Agreement”);

 

WHEREAS, in
accordance with the Restructuring Transactions, the Investors will convert the 2017 Notes into shares of Common Stock at a conversion
rate of $0.7589 (before giving effect to the Reverse Stock Split (as defined in the Charter Amendment)); and

 

WHEREAS, in
accordance with the Restructuring Transactions, the Company will hold a stockholder meeting to solicit stockholder consent for
(i) the amendment to the Company’s certificate of incorporation, substantially in the form attached as Exhibit A (the
“Charter Amendment”), (ii) the election of the new members to the Company’s board of directors (such new
directors of the Reorganized Company, the “New Directors” and the board of directors of the Reorganized Company
as so modified by the New Directors, the “New Board”), and (iii) the exchange by the Investors and the Consenting
Noteholders of the 2015 Notes and 2016 Notes held by such Investors and Consenting Noteholders for a number of shares of Common
Stock equal to the principal amount of the 2015 Notes and 2016 Notes plus all accrued and unpaid interest on such 2015 Notes and
2016 Notes at the Closing (as hereinafter defined) divided by $7.20 (after giving effect to the Reverse Stock Split (as defined
in the Charter Amendment)) (the “Convertible Notes Exchange”).

 

    	 	1	 

     

    

 

NOW, THEREFORE,
in consideration of the foregoing, of the mutual promises hereinafter set forth and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, hereby agree as follows:

 

Article
I

DEFINITIONS AND ACCOUNTING TERMS

 

Section 1.1.          Definitions.

 

As used herein the
following terms shall have the meanings specified herein (it being understood that defined terms shall include in the singular
number, the plural, and in the plural, the singular):

 

“2015 Notes”
means the 6.00% convertible senior unsecured notes of the Company due 2021, issued in a private offering completed on July 31,
2015 pursuant to the Indenture.

 

“2016 Notes”
means the 6.00% convertible senior unsecured notes of the Company due 2021, issued in a private offering completed on April 14,
2016 governed by the 2016 ROS Convertible Promissory Note and the 2016 OrbiMed Convertible Promissory Note.

 

“2016 OrbiMed
Convertible Promissory Note” means the Convertible Promissory Note in the aggregate original principal amount of $809,613.67,
dated April 14, 2016, made by the Company in favor of OrbiMed.

 

“2016 ROS
Convertible Promissory Note” means the Convertible Promissory Note in the aggregate original principal amount of $1,428,552.78,
dated April 14, 2016, made by the Company in favor of ROS.

 

“2017 Notes”
means the 2017 OrbiMed Indenture Notes, the 2017 ROS Indenture Notes, the 2017 OrbiMed PIK Notes and the 2017 ROS PIK Notes.

 

“2017 Notes
Conversions” has the meaning given in Section 2.1(d)(iii).

 

“2017 OrbiMed
Indenture Convertible Promissory Note” means the Convertible Promissory Note in the aggregate original principal amount
of $564,300, dated January 17, 2017, made by the Company in favor of OrbiMed.

 

“2017 OrbiMed
Indenture Notes” means the 6.00% convertible senior unsecured notes of the Company due 2021, issued in a private offering
completed on January 17, 2017 governed by the 2017 OrbiMed Indenture Convertible Promissory Note.

 

“2017 OrbiMed
PIK Convertible Promissory Note” means the Convertible Promissory Note in the aggregate original principal amount of
$24,288.41, dated January 17, 2017, made by the Company in favor of OrbiMed.

 

“2017 OrbiMed
PIK Notes” means the 6.00% convertible senior unsecured notes of the Company due 2021, issued in a private offering completed
on January 17, 2017 governed by the 2017 OrbiMed PIK Convertible Promissory Note.

 

    	 	2	 

     

    

 

“2017 ROS
Indenture Convertible Promissory Note” means the Convertible Promissory Note in the aggregate original principal amount
of $995,700, dated January 17, 2017, made by the Company in favor of ROS.

 

“2017 ROS
Indenture Notes” means the 6.00% convertible senior unsecured notes of the Company due 2021, issued in a private offering
completed on January 17, 2017 governed by the 2017 ROS Indenture Convertible Promissory Note.

 

“2017 ROS
PIK Convertible Promissory Note” means the Convertible Promissory Note in the aggregate original principal amount of
$42,856.59, dated January 17, 2017, made by the Company in favor of ROS.

 

“2017 ROS
PIK Notes” means the 6.00% convertible senior unsecured notes of the Company due 2021, issued in a private offering completed
on January 17, 2017 governed by the 2017 ROS PIK Convertible Promissory Note.

 

“Acquisition
Proposal” shall mean any bona fide inquiry, proposal or offer made by any Person for, in a single transaction or a series
of transactions, (i) a merger, reorganization, share exchange, consolidation, business combination, recapitalization, extraordinary
dividend or share repurchase, dissolution, liquidation or similar transaction involving the Company, (ii) the direct or indirect
acquisition by any Person or group of twenty percent (20%) or more of the assets of the Company and its Subsidiaries, on a consolidated
basis or assets of the Company and its Subsidiaries representing twenty percent (20%) or more of the consolidated revenues or net
income (including, in each case, securities of the Company’s Subsidiaries) or (iii) the direct or indirect acquisition by
any Person or group of twenty percent (20%) or more of the voting power of the outstanding shares of Common Stock, including any
tender offer or exchange offer that if consummated would result in any Person beneficially owning shares with twenty percent (20%)
or more of the voting power of the outstanding shares of Common Stock.

 

“Affiliate”
of any specified Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect
common control with such specified Person. For purposes of this definition, “control” (including, with correlative
meanings, the terms “controlling,” “controlled by” and “under common control with”), as used
with respect to any Person, shall mean the possession, directly or indirectly, of the right or power to direct or cause the direction
of the management or policies of such Person, whether through the ownership of voting securities, by agreement or otherwise.

 

“Agreement”
has the meaning given in the Preamble.

 

“Alternative
Acquisition Agreement” has the meaning given in Section 6.1(n)(iii).

 

“Applicable
Law” means all laws, statutes, treaties, rules, codes, ordinances, regulations, certificates, orders and licenses of
any Governmental Authority and judgments, decrees, injunctions, writs, permits, orders or like governmental action of any Governmental
Authority applicable to the Company or any of its Subsidiaries or any of their property or operations.

 

“Authorizations”
has the meaning given in Section 3.15(d).

 

    	 	3	 

     

    

 

“Bonus Agreements”
has the meaning given in the Recitals.

 

“Business
Day” means any day, other than a Saturday, Sunday or a day on which banks are generally closed for business in the State
of New York.

 

“Bylaw Amendment”
means the Second Amended and Restated Bylaws of the Company, substantially in the form attached as Exhibit G.

 

“Capital Stock”
means (i) in the case of a corporation, capital stock, (ii) in the case of an association or business entity other than a corporation,
partnership or LLC, any and all shares, equity interests, equity participations, rights or other equivalents (however designated)
of capital stock, (iii) in the case of a partnership or LLC, partnership or membership interests (whether general or limited),
and (iv) any other interest or participation that confers on a Person the right to receive a share of the profits and losses of,
or distributions of assets of, the issuing Person.

 

“Charter Amendment”
has the meaning given in the Recitals.

 

“Closing”
has the meaning given in Section 2.3.

 

“Closing Date”
has the meaning given in Section 2.3.

 

“Common Stock”
has the meaning given in Section 3.2(a).

 

“Company”
has the meaning given in the Preamble.

 

“Company Form
10-Q” has the meaning given in Section 3.5(c).

 

“Company SEC
Reports” means the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, and any subsequent
filings made with the SEC pursuant to Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act, excluding any information or materials
deemed “furnished” and not “filed” thereunder.

 

“Company Stockholder
Approval” means the affirmative vote of holders of a majority of the outstanding shares of Common Stock constituting
a quorum (according to the Company’s bylaws) at the Stockholder Meeting (or at any adjournment or postponement thereof) to
approve the issuance of the Second Resulting Shares of Common Stock, the Charter Amendment and the election of the New Directors
to the New Board.

 

“Consenting
Noteholder Indemnified Parties” means, collectively, the Consenting Noteholders, their Affiliates and their respective
directors, officers, managers, partners, members, employees and agents.

 

“Consenting
Noteholders” has the meaning given in the Preamble.

 

“Contract”
means a contract, commitment, agreement, instrument, obligation, undertaking, concession, franchise, license, lease, or legally
binding arrangement or understanding, whether written or oral.

 

    	 	4	 

     

    

 

“Convertible
Notes” means the 2015 Notes, the 2016 Notes and the 2017 Notes.

 

“Convertible
Notes Exchange” has the meaning given in the Recitals.

 

“Credit Agreement
Amendment” means an amendment to the Existing Credit Agreement substantially on the terms set forth on Exhibit B
attached hereto.

 

“Definitive
Proxy Statement” means the definitive proxy statement incorporating any SEC comments to the Preliminary Proxy Statement,
in a form reasonably satisfactory to the Investors.

 

“Director
Indemnification Agreement” means the indemnification agreements, substantially in the form attached hereto as Exhibit
C, that will be entered into at the Closing by the Reorganized Company with each of the New Directors.

 

“Disclosure
Schedule” means the disclosure schedule delivered by the Company to the other Parties hereto prior to the execution of
this Agreement.

 

“dollars”
or “$” refers to lawful money of the United States of America.

 

“Equity Interest”
means any issued, unissued, authorized, or outstanding shares of common stock, preferred stock or other instrument evidencing an
ownership interest in the Company, whether or not transferable, together with any warrants, stock options, equity-based awards
or contractual rights to purchase or acquire such equity interests at any time and all rights arising with respect thereto that
existed immediately before the Closing Date.

 

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

 

“Existing
Credit Agreement” means that Amended and Restated Credit Agreement among Bacterin International, Inc., a wholly-owned
subsidiary of the Company, and the Investors, dated as of July 27, 2015, as amended by that certain First Amendment to Amended
and Restated Credit Agreement, dated as of March 31, 2016, that certain Second Amendment to Amended and Restated Credit Agreement,
dated as of May 25, 2016, that certain Third Amendment to Amended and Restated Credit Agreement, dated as of June 30, 2016, that
certain Fourth Amendment to Amended and Restated Credit Agreement, dated as of July 29, 2016, that certain Fifth Amendment to Amended
and Restated Credit Agreement, dated as of August 12, 2016, that certain Sixth Amendment to Amended and Restated Credit Agreement,
dated as of September 27, 2016, that certain Seventh Amendment to Amended and Restated Credit Agreement, dated as of December 31,
2016, that certain Eighth Amendment to Amended and Restated Credit Agreement, dated as of January 13, 2017, that certain Ninth
Amendment to Amended and Restated Credit Agreement, dated as of January 31, 2017, that certain Tenth Amendment to Amended and Restated
Credit Agreement, dated as of February 14, 2017, that certain Eleventh Amendment to Amended and Restated Credit Agreement, dated
as of February 28, 2017, that certain Twelfth Amendment and Waiver to Amended and Restated Credit Agreement, dated as of March
31, 2017, that certain Thirteenth Amendment to Amended and Restated Credit Agreement, dated as of May 2, 2017, that certain Fourteenth
Amendment to Amended and Restated Credit Agreement, dated as of May 11, 2017, that certain Fifteenth Amendment to Amended and Restated
Credit Agreement, dated as of June 30, 2017, that certain Sixteenth Amendment to Amended and Restated Credit Agreement, dated as
of July 15, 2017, that certain Seventeenth Amendment and Waiver to Amended and Restated Credit Agreement, dated as of August 11,
2017, that certain Eighteenth Amendment to Amended and Restated Credit Agreement, dated as of September 29, 2017, that certain
Nineteenth Amendment to Amended and Restated Credit Agreement, dated as of October 31, 2017, that certain Waiver, dated as of November
14, 2017, that certain Twentieth Amendment and Waiver to Amended and Restated Credit Agreement, dated as of November 30, 2017,
and that certain Twenty-First Amendment to Amended and Restated Credit Agreement, dated as of December 28, 2017.

 

    	 	5	 

     

    

 

“Existing
Facility” means the secured loan facility under the Existing Credit Agreement.

 

“Fairness
Opinion” has the meaning given in Section 3.19.

 

“FDA”
has the meaning given in Section 3.15(d).

 

“Financial
Statements” has the meaning given in Section 3.5(a).

 

“First Resulting
Shares of Common Stock” has the meaning given in Section 2.1(d)(iii).

 

“GAAP”
means those accounting principles in the United States, which are in effect at the time of the preparation of financial statements
required to be delivered hereunder.

 

“Governmental
Authority” means any nation or government, any state, province, territory or other political subdivision thereof, and
any agency, body or entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining
to government.

 

“Health Care
Laws” has the meaning given in Section 3.15(d).

 

“HIPAA”
has the meaning given in Section 3.15(d).

 

“Indemnified
Parties” means (i) the Company’s current directors, officers, managers, employees, attorneys, other professionals,
and agents that were employed in such capacity on or after the date of this Agreement and that are entitled to be indemnified by
the Company pursuant to the Company’s bylaws, certificates of incorporation, board resolutions, employment contracts, or
other agreements and (ii) each of the Investor Indemnified Parties and each of the Consenting Noteholder Indemnified Parties.

 

“Indenture”
means the indenture, dated July 31, 2015 by and between the Company and Wilmington Trust, National Association, as trustee (the
“Trustee”), as amended by Amendment Number 1 to Indenture, dated August 16, 2017, Amendment Number 2 to Indenture,
dated as of October 2, 2017, Amendment Number 3 to Indenture, dated as of October 31, 2017, Amendment Number 4 to Indenture, dated
as of December 1, 2017, and Amendment Number 5 to Indenture, dated as of December 29, 2017.

 

“Intellectual
Property” has the meaning given in Section 3.9.

 

    	 	6	 

     

    

 

“Investment
Company Act” means the Investment Company Act of 1940 (or any successor provision), as amended, and the rules and regulations
of the SEC promulgated thereunder.

 

“Investor
Indemnified Parties” means, collectively, the Investors, their Affiliates and their respective directors, officers, managers,
partners, members, employees and agents.

 

“Investors”
has the meaning given in the Preamble.

 

“Investors
Rights Agreement” means the investors rights agreement by and between the Company, the Investors and the representative
of certain Consenting Noteholders substantially in the form attached hereto as Exhibit D.

 

“Knowledge”
means, with respect to any matter in question, the knowledge of such matter by any of the individuals listed in Section 1.1
of the Disclosure Schedule.

 

“Legal Restraints”
has the meaning given in Section 7.1(b).

 

“Lien”
means any security interest, mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or
otherwise), charge against or interest in property, or other priority or preferential arrangement of any kind or nature whatsoever,
whether or not filed, recorded or otherwise perfected under Applicable Law, to secure payment of a debt or performance of an obligation.

 

“LLC”
means a limited liability company.

 

“Losses”
has the meaning given in Section 9.1.

 

“Material
Adverse Effect” means any event, change, effect, circumstance or condition that, individually or in the aggregate with
other such events, changes, effects, circumstances or conditions, (i) is, or is reasonably likely to be, materially adverse to
the business, operations, results of operations, properties, condition (financial or otherwise), assets, liabilities (actual or
contingent) or prospects of the Company and its Subsidiaries, taken as a whole or (ii) could reasonably be expected to materially
interfere with the consummation of the transactions contemplated hereby. The Parties acknowledge that a change in the listing status
of the Common Stock from the NYSE American to an over-the-counter market shall not be deemed a “Material Adverse Effect.”

 

“Material
Contract” has the meaning given in Section 3.16(a).

 

“New Board”
has the meaning given in the Recitals.

 

“New Directors”
has the meaning given in the Recitals. The New Directors are named in Schedule 1.

 

“Notes Documents
Amendments” means the amendments described in clauses (i), (ii), (v), (vi) and (vii)
of Section 2.1(d).

 

    	 	7	 

     

    

 

“NYSE American”
means NYSE American LLC, a national securities exchange registered with the SEC pursuant to Section 6 of the Exchange Act.

 

“OrbiMed”
has the meaning given in the Preamble.

 

“Order”
means a judgment, order, writ, injunction, stipulation or decree issued by, or legally binding agreement with, a Governmental Authority.

 

“Party”
has the meaning given in the Preamble.

 

“Permits”
has the meaning given in Section 3.15(c).

 

“Person”
means any individual, corporation, LLC, partnership, joint venture, association, joint stock company, trust, unincorporated organization,
government or any agency or political subdivision thereof or any other entity.

 

“Preamble”
means the preamble of this Agreement.

 

“Preliminary
Proxy Statement” means the preliminary proxy statement in the form attached hereto as Exhibit E.

 

“Private Placement”
has the meaning given in Section 2.1(f)(vi).

 

“Private Placement
Shares” means the shares of Common Stock issued pursuant to the Private Placement.

 

“Registration
Rights Agreement” means the registration rights agreement substantially in the form attached hereto as Exhibit F.

 

“Registration
Statement” has the meaning given in Section 6.1(g).

 

“Released
Parties” has the meaning given in Section 10.1(a).

 

“Releasing
Parties” has the meaning given in Section 10.1(a).

 

“Reorganized
Company” means upon and following the Closing, the Company, and any successor thereto, whether by merger, consolidation,
restructuring, or otherwise on and after the Closing Date.

 

“Restricted
Period” has the meaning given in Section 6.2(a).

 

“Restructuring
Documents” means the Credit Agreement Amendment, the Investors Rights Agreement, the Registration Rights Agreement, the
Director Indemnification Agreements, the Charter Amendment, the agreements or documents needed to perform the Notes Documents Amendments,
the Private Placement and the Rights Offering and each other document, certificate or agreement executed, delivered or filed in
connection with, contemplated by or necessary to carry out the Restructuring Transactions and any other transactions contemplated
by this Agreement.

 

    	 	8	 

     

    

 

“Restructuring
Transactions” has the meaning given in the Recitals.

 

“Resulting
Shares” means the First Resulting Shares of Common Stock and the Second Resulting Shares of Common Stock.

 

“Rights Offering”
means the offering of non-transferable subscription rights to the stockholders of the Company to purchase up to an aggregate of
$8,190,113 of Common Stock at a price of $7.20 per share of Common Stock, pursuant to documentation reasonably acceptable to the
Investors.

 

“Rights Offering
Shares” means the shares of Common Stock issued pursuant to the Rights Offering.

 

“ROS”
has the meaning given in the Preamble.

 

“SEC”
means the Securities and Exchange Commission.

 

“Second Resulting
Shares of Common Stock” means the shares of Common Stock issued in connection with the Convertible Notes Exchange.

 

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

 

“Stockholder
Meeting” means the special meeting of the Company stockholders, during which the Company stockholders will consider the
adoption of the issuance of the Second Resulting Shares of Common Stock, the Charter Amendment and the election of the New Directors
to the New Board.

 

“Subsidiary”
means, with respect to any Person, (a) any corporation, association, or other business entity (other than a partnership, joint
venture, LLC or similar entity) of which more than 50% of the total voting power of shares of Capital Stock entitled (without regard
to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof is at the time of determination
owned or controlled, directly or indirectly, by such Person or one or more of the other Subsidiaries of that Person or a combination
thereof, and (b) any partnership, joint venture, LLC or similar entity of which: (i) more than 50% of the capital accounts, distribution
rights, total equity and voting interests or general or limited partnership interests, as applicable, are owned or controlled,
directly or indirectly, by such Person or one or more of the other Subsidiaries of that Person or a combination thereof whether
in the form of membership, general, special or limited partnership or otherwise; and (ii) such Person is a controlling general
partner or otherwise controls (within the meaning of the last sentence of the definition of “Affiliate” contained herein)
such entity.

 

    	 	9	 

     

    

 

“Superior
Proposal” means a bona fide written Acquisition Proposal (with the percentages set forth in clauses (ii) and (iii) of
the definition of such term changed from twenty percent (20%) to fifty
percent (50%) and it being understood that any transaction that would constitute an Acquisition Proposal pursuant to clause
(ii) or (iii) of the definition thereof cannot constitute a Superior Proposal under clause (i) under the definition thereof unless
it also constitutes a Superior Proposal pursuant to clause (ii) or (iii), as applicable, after giving effect to this parenthetical)
that the Company’s board of directors and the Special Strategic Committee of the Company’s
board of directors have determined in their good faith judgment, after consultation with outside legal counsel and its financial
advisor, is more favorable to the Company’s stockholders than the Restructuring Transactions and the other transactions contemplated
hereby, taking into account all of the terms and conditions of such Acquisition Proposal (including the financing, likelihood and
timing of consummation thereof) and this Agreement.

 

“Support Agreement”
has the meaning given in the Recitals.

 

“Taxes”
means taxes of any kind, levies or other like assessments, customs, duties, imposts, charges or fees, including, without limitation,
income, gross receipts, ad valorem, value added, excise, real or personal property, asset, sales, use, license, payroll, transaction,
capital, net worth and franchise taxes, estimated taxes, withholding, employment, social security, workers compensation, utility,
severance, production, unemployment compensation, occupation, premium, windfall profits, transfer and gains taxes or other governmental
taxes imposed or payable to the United States, or any state, county, local or foreign government, or any subdivision or agency
thereof, and, in each instance, such term shall include any interest, penalties or additions to tax attributable to any such Tax
or requirement to report information with respect thereto.

 

“Trustee”
has the meaning given in the definition of “Indenture.”

 

Section 1.2.          Computation
of Time Periods. For purposes of computation of periods of time hereunder, the word “from” means “from and
including” and the words “to” and “until” each mean “to but excluding.”

 

Section 1.3.          Terms
Generally; Rules of Interpretation. The titles and subtitles used in this Agreement are used for convenience only and are not
to be considered in construing or interpreting this Agreement. When a reference is made in this Agreement to a Section, Article,
Schedule or Exhibit, such reference shall be to a Section, Article, Schedule or Exhibit of this Agreement unless otherwise indicated.
Unless the context requires otherwise (i) any definition of or reference to any agreement, instrument or other document herein
shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise
modified (subject to any restrictions on such amendments, supplements or modifications set forth herein); (ii) any reference
herein to any Person shall be construed to include such Person’s successors and assigns; (iii) the words “including”
and “includes” shall mean “including without limitation” and “includes without limitation,”
as applicable; (iv) in the appropriate context, each term, whether stated in the singular or the plural, shall include both
the singular and the plural, and pronouns stated in the masculine, feminine or neuter gender shall include the masculine, feminine,
and the neuter gender; (v) any reference herein to a contract (including Contracts), instrument, release, indenture, or other
agreement or document being in a particular form or on particular terms and conditions means that the referenced document shall
be substantially in that form or substantially on those terms and conditions; (vi) any reference herein to an existing document
or exhibit having been filed or to be filed shall mean that document or exhibit, as it may thereafter be amended, modified, or
supplemented; (vii) unless otherwise specified, all references herein to “Articles” or “Sections”
are references to Articles or Sections hereof or hereto; (viii) the words “herein,” “hereof” and “hereto”
refer to this Agreement in its entirety rather than to a particular portion of this Agreement; (ix) captions and headings
to Articles and Sections are inserted for convenience of reference only and are not intended to be a part of or to affect the interpretation
hereof; (x) references to the Company in this Agreement shall include a reference to the Reorganized Company as applicable;
and (xi) the Investors and the Consenting Noteholders shall not be deemed to be Affiliates of the Company. In the event of any
inconsistencies between the terms of this Agreement and any Restructuring Documents, the Restructuring Documents shall govern.

 

    	 	10	 

     

    

 

Section 1.4.          Accounting
Terms. Accounting terms used but not otherwise defined herein shall have the meanings provided, and be construed in accordance
with, GAAP.

 

Article
II

RESTRUCTURING TRANSACTIONS

 

Section 2.1.          Restructuring
Transactions.

 

(a)          In
order to effect the Restructuring Transactions, subject to the terms and conditions of this Agreement (including, without limitation,
the provisions of Article VII), the Parties agree to complete (or cause to be completed) the actions as and at the times
set forth herein.

 

(b)          Prior
to the date hereof, the following shall have occurred:

 

i.      The Company’s board of directors, at the recommendation of the Special Strategic Committee of the Company’s board of
directors, shall have adopted board resolutions, as required under Applicable Law:

 

		1.	authorizing (x) the execution of this Agreement, (y) the Restructuring Transactions and (z) the
listing of the First Resulting Shares of Common Stock and the Second Resulting Shares of Common Stock on the NYSE American;

 

		2.	setting the record date for the Stockholder Meeting and authorizing officers of the Company to
give the NYSE American notice thereof;

 

		3.	appointing the transfer agent for the Stockholder Meeting;

 

		4.	approving and declaring advisable the adoption of the Charter Amendment, directing that the adoption
of the Charter Amendment be submitted to a vote at the Stockholder Meeting and recommending that the Company stockholders adopt
the Charter Amendment;

 

    	 	11	 

     

    

 

		5.	approving and declaring advisable the Convertible Notes Exchange, directing that the approval of
the issuance of the Second Resulting Shares of Common Stock, the Charter Amendment and the election of the New Directors to the
New Board be submitted to a vote at the Stockholder Meeting and recommending that the Company stockholders approve the issuance
of the Second Resulting Shares of Common Stock, the Charter Amendment and the election of the New Directors to the New Board;

 

		6.	authorizing the execution by the Company of the Credit Agreement Amendment, the Investors Rights
Agreement, the Registration Rights Agreement and the Director Indemnification Agreements and the performance of its obligations
thereunder;

 

		7.	approving the Rights Offering and all documentation necessary therefor and authorizing the listing
of the Rights Offering Shares on the NYSE American; and

 

		8.	approving the form of the Preliminary Proxy Statement.

 

ii.         The
Company’s Special Strategic Committee of the Company’s board of directors shall adopt committee resolutions approving
the Restructuring Transactions;

 

iii.        The
Company stockholders set forth on Schedule 2.1(b) shall have executed the Support Agreement; and

 

iv.        The
Company shall have received the Fairness Opinion.

 

(c)          Promptly
after the date hereof and prior to the Closing, the following shall occur:

 

i.          The
Company shall issue a press release, mutually agreed upon with the Investors, announcing the execution of this Agreement and the
Restructuring Transactions;

 

ii.         The
Company shall have submitted all necessary filings and documents with the NYSE American for the listing of the First Resulting
Shares of Common Stock on the NYSE American;

 

iii.        The
Company shall enter into the Bonus Agreements;

 

iv.        The
Company shall give the NYSE American notice of the record date for the Stockholder Meeting;

 

v.         The
Company shall file a Form 8-K, and any other applicable filing, for the execution of this Agreement and the Restructuring Transactions:

 

vi.        The
Company shall file the Preliminary Proxy Statement with the SEC; and

 

vii.       The
Company shall file the Registration Statement with the SEC.

 

    	 	12	 

     

    

 

(d)          Prior
to the Closing, the following shall occur:

 

i.           OrbiMed
and the Company shall amend the 2017 OrbiMed Indenture Convertible Promissory Note and the 2017 OrbiMed PIK Convertible Promissory
Note, in each case, (1) to remove the restrictions contained thereto preventing OrbiMed (or any of its Affiliates) from beneficially
owning more than 9.99% of the then-outstanding shares of Common Stock and (2) to provide for the deferral of any interest payments
then being due or becoming due prior to the date of conversion of such notes or earlier termination of this Agreement until the
date of conversion of such notes or earlier termination of this Agreement and (3) to provide that the Conversion Consideration
(as defined therein) due in respect to a conversion shall be payable upon all outstanding principal amount plus accrued
and unpaid interest of such notes;

 

ii.          ROS
and the Company shall amend the 2017 ROS Indenture Convertible Promissory Note and the 2017 ROS PIK Convertible Promissory Note,
in each case, to (1) remove the restrictions contained thereto preventing ROS (or any of its Affiliates) from beneficially owning
more than 9.99% of the then-outstanding shares of Common Stock, (2) to provide for the deferral of any interest payments then being
due or becoming due prior to the date of conversion of such notes or earlier termination of this Agreement until the date of conversion
of such notes or earlier termination of this Agreement and (3) to provide that the Conversion Consideration (as defined therein)
due in respect to a conversion shall be payable upon all outstanding principal amount plus accrued and unpaid interest of
such notes;

 

iii.        After
completion of the steps listed in Sections 2.1(d)(i) and (ii), and prior to the record date for the Stockholder Meeting,
(x) OrbiMed shall convert the 2017 OrbiMed Indenture Notes and the 2017 OrbiMed PIK Notes in accordance with their terms,
(y) ROS shall convert the 2017 ROS Indenture Notes and the 2017 ROS PIK Notes in accordance with their terms (the conversions of
2017 Notes into shares of Common Stock as described under clauses (x) and (y), the “2017 Notes Conversions”
and the shares of Common Stock issued in connection with the 2017 Notes Conversions, the “First Resulting Shares of Common
Stock”) and (z) the Company shall file a Form 8-K, and any other applicable filing, for the execution of the amendments
set forth in Sections 2.1(d)(i) and (ii);

 

iv.        After
the immediately preceding step, (x) the Investors shall file any required beneficial ownership filings with the SEC to reflect
their ownership of the First Resulting Shares of Common Stock, (y) OrbiMed shall surrender the 2017 OrbiMed Indenture Convertible
Promissory Note and the 2017 OrbiMed PIK Convertible Promissory Note to the Company and (z) ROS shall surrender the 2017 ROS Indenture
Convertible Promissory Note and the 2017 ROS PIK Convertible Promissory Note to the Company;

 

v.         The
Company shall, and the Company, the Investors and the Consenting Noteholders shall use their commercially reasonable efforts to
cause the Trustee to, execute an amendment to the Indenture to (1) clarify that the restriction therein preventing either Investor
or any Consenting Noteholder (or any of their Affiliates) from effecting a conversion of any 2015 Notes if such conversion would
result in such Person beneficially owning more than 9.99% of the then-outstanding shares of Common Stock shall not be applicable
to the Convertible Notes Exchange or the issuance of the Second Resulting Shares of Common Stock and (2) to provide for the deferral
of any interest payments then being due or becoming due prior to the Closing Date or earlier termination of this Agreement until
the Closing Date or earlier termination of this Agreement;

 

    	 	13	 

     

    

 

vi.        OrbiMed
and the Company shall amend the 2016 OrbiMed Convertible Promissory Note (1) clarify that the restriction therein preventing either
Investor (or any of its Affiliates) from effecting a conversion of any 2016 Notes if such conversion would result in such Person
beneficially owning more than 9.99% of the then-outstanding shares of Common Stock shall not be applicable to the Convertible Notes
Exchange or the issuance of the Second Resulting Shares of Common Stock and (2) to provide for the deferral of any interest payments
then being due or becoming due prior to the date of conversion of such notes or earlier termination of this Agreement until the
date of conversion of such notes or earlier termination of this Agreement;

 

vii.       ROS
and the Company shall amend the 2016 ROS Convertible Promissory Note to (1) remove the restrictions contained thereto preventing
ROS (or any of its Affiliates) from beneficially owning more than 9.99% of the then-outstanding shares of Common Stock, (2) to
provide for the deferral of any interest payments then being due or becoming due prior to the date of conversion of such notes
or earlier termination of this Agreement until the date of conversion of such notes or earlier termination of this Agreement and
(3) to provide that the Conversion Consideration (as defined therein) due in respect to a conversion shall be payable upon all
outstanding principal amount plus accrued and unpaid interest of such notes;

 

viii.      The
Investors and the Company shall in good faith negotiate a mutually agreeable Credit Agreement Amendment substantially on the terms
attached hereto as Exhibit B;

 

ix.         The
Company shall promptly respond to any comments made by the SEC to the Preliminary Proxy Statement, and shall file any necessary
amendments to the Preliminary Proxy Statement, each with the Investors’ reasonable approval;

 

x.          After
the immediately preceding step (if such step occurs), the Company’s board of directors shall adopt board resolutions, as
required under Applicable Law, approving the form of the Definitive Proxy Statement;

 

xi.         After
the immediately preceding step, the Company shall file the Definitive Proxy Statement with the SEC and mail the Definitive Proxy
Statement (including the proxy card attached thereto) to the Company stockholders;

 

xii.        The
Company shall submit all necessary filings and documents with the NYSE American for the listing of the Private Placement
Shares, the Rights Offering Shares and the Second Resulting Shares of Common Stock on the NYSE American; and

 

xiii.       The
Company shall take all actions necessary, including the filing of all necessary documents with NYSE American, to give effect to
the Reverse Stock Split (as defined in the Charter Amendment) at the Closing;

 

    	 	14	 

     

    

 

(e)          Immediately
prior to the Closing, the Company shall hold the Stockholder Meeting and shall hold a stockholder vote on (i) the issuance
of the Second Resulting Shares of Common Stock, (ii) the Charter Amendment and (iii) the election of the New Directors to the New
Board.

 

(f)          At
the Closing, but only in the event that the Company Stockholder Approval shall have been obtained, the following shall occur:

 

i.          The
Company shall enter into the Charter Amendment and file the Charter Amendment with the Secretary of State of the State of Delaware;

 

ii.          After
completion of the step listed in Section 2.1(f)(i), the Company shall issue to the Investors and the Consenting Noteholders
the Second Resulting Shares of Common Stock corresponding to the 2015 Notes and 2016 Notes held by each such Investor or Consenting
Noteholder and OrbiMed shall surrender the 2016 OrbiMed Convertible Promissory Note to the Company, ROS shall surrender the 2016
ROS Convertible Promissory Note to the Company and the Investors and the Consenting Noteholders shall surrender any promissory
notes (if any) they hold for the 2015 Notes;

 

iii.        The
Investors, the Company and, if applicable, the Consenting Noteholders shall enter into the Credit Agreement Amendment, the Investors
Rights Agreement and the Registration Rights Agreement;

 

iv.        The
New Directors of the Company shall have been elected to the New Board, thereby removing the existing members of the board of directors
of the Company; and

 

v.         The
New Directors of the Company shall adopt the Bylaw Amendment;

 

vi.        The
Investors shall purchase from the Company in a private placement, upon terms and conditions reasonably satisfactory to the Investors
and the Company, an aggregate of $6,809,887 of Common Stock at a price per share of $7.20 (after giving effect to the Reverse
Stock Split (as defined in the Charter Amendment)) (the “Private Placement”).

 

(g)          Promptly
after the Closing, the following shall occur:

 

i.          The
Company shall file a Form 8-K, and any other applicable filing, for the Stockholder Meeting, the change in control of the Company,
the execution of the Credit Agreement Amendment, the Investors Rights Agreement and the Registration Rights Agreement, the Private
Placement and the election of the New Directors to the New Board of the Reorganized Company;

 

ii.         The
Company shall notify the NYSE American of (x) the voting results of the Stockholder Meeting, (y) the change in control of the Company
and (z) the appointment of the New Directors to the New Board of the Reorganized Company, and shall deliver certified copies of
the articles of incorporation and bylaws of the Company, each as amended by the Charter Amendment; provided, however,
if the Common Stock is not listed on the NYSE American at the time of the Closing, the Company shall do all things necessary to
cause the Common Stock to be listed on NYSE American as promptly as practicable following the Closing;

 

    	 	15	 

     

    

 

iii.        The
Investors and any applicable Consenting Noteholders shall file any required beneficial ownership filings with the SEC to reflect
their ownership of the Second Resulting Shares of Common Stock and the Private Placement Shares;

 

iv.        The
Company shall issue a press release, mutually agreed upon with the Investors, announcing the voting results of the Stockholder
Meeting, the Convertible Notes Exchange, the change in control of the Company, the execution of the Credit Agreement Amendment,
the Investors Rights Agreement and the Registration Rights Agreement, the Private Placement and the appointment of the New Directors
to the New Board of the Reorganized Company;

 

v.         Upon
approval or clearance from the SEC, the Company shall cause the Registration Statement to become effective, the record date for
the Rights Offering shall occur and the Company shall launch the Rights Offering;

 

vi.        (x)
the Company stockholders shall have the right to subscribe for their pro rata percentages of shares of Common Stock following the
Closing (before giving effect to the Rights Offering); (y) if there are unsold shares of Common Stock from the Rights Offering
after the Company stockholders have subscribed for their desired number of shares of Common Stock pursuant to the preceding clause
(x), the Company stockholders shall have the right, but not the obligation, to subscribe for all remaining unsold shares of Common
Stock until the Rights Offering is fully subscribed; and

 

vii.       The
Company shall close the Rights Offering.

 

(h)         At
any time after the Closing, the Company shall enter into the Director Indemnification Agreements with the New Directors.

 

Section 2.2.         Authorizations
and Obligations Relating to the Restructuring Transactions. In order to give effect to the Restructuring Transactions, the
Parties understand and agree as follows:

 

(a)         The
Board and Management. The New Board shall be elected by the stockholders. Subsequent boards of directors of the Reorganized
Company shall be selected in accordance with the bylaws of the Reorganized Company. The existing officers of the Company as of
the date of this Agreement shall remain in their current capacities as officers of the Reorganized Company.

 

(b)         Indemnification
of Directors. All director indemnification agreements of the Company existing immediately prior to the Closing shall remain
in full force and effect following the Closing, unless otherwise superseded by a Director Indemnification Agreement.

 

    	 	16	 

     

    

 

Section 2.3.         Closing.
The closing of the transactions contemplated by Section 2.1(f) shall occur at the offices of Covington & Burling LLP at 10:00
a.m. New York time (the “Closing”) as soon as practicable, and in no event later than the fifth (5th) Business
Day, following the satisfaction (or, to the extent permitted under this Agreement, waiver) of the conditions set forth in Article
VII (other than those conditions that by their terms are to be satisfied or waived at the Closing, but subject to the satisfaction
or waiver of such conditions), or at such other place, time and date as shall be agreed between the Parties hereto. The date on
which the Closing occurs is referred to in this Agreement as the “Closing Date”.

 

Section 2.4.         Public
Announcements. The Parties hereto understand and agree that on and after the date of this Agreement, the Company shall not
issue any press releases or other public announcements relating to the Restructuring Transaction without the Investors’ consent,
and shall not issue any such press releases or other public announcements naming any Consenting Noteholder without such Consenting
Noteholder’s consent, which the Investors and the Consenting Noteholders agree to provide if such disclosure is required
by the SEC or Applicable Law.

 

Article
III

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

 

Except as set forth
in the Disclosure Schedule, which identifies the Section of this Agreement to which such exception relates (provided, however,
that any disclosure contained in any section of the Disclosure Schedule shall be deemed to be disclosed with respect to any other
Section of this Agreement to the extent that it is reasonably apparent on its face to be applicable to such other Section), the
Company represents and warrants to each of the other Parties hereto, as of the date hereof and as of the Closing Date, as follows:

 

Section 3.1.          Due
Organization, Power and Authority.

 

(a)         The
Company (i) is duly organized, validly existing and in good standing under the laws of its jurisdiction of organization and (ii)
has all requisite power and authority to own and operate its properties, to carry on its business as now conducted and as proposed
to be conducted, to execute, deliver and perform its obligations under this Agreement and the Restructuring Documents to which
it is a party and to carry out the transactions contemplated thereby. This Agreement has been duly and validly authorized, executed
and delivered by the Company. Upon execution and delivery and, assuming due authorization, execution and delivery by the other
parties thereto, this Agreement and the Restructuring Documents will constitute valid and binding obligations of the Company, enforceable
against the Company in accordance with their terms, except as such enforceability may be limited by bankruptcy, fraudulent conveyance,
insolvency, reorganization, moratorium, and other laws relating to or affecting creditors’ rights generally and by general
equitable principles (regardless of whether such enforceability is considered in a proceeding in equity or at law).

 

(b)         The
Company has all the requisite corporate power and authority to issue the First Resulting Shares of Common Stock. The First Resulting
Shares of Common Stock have been duly and validly authorized by the Company and, and when issued, in accordance with the terms
of this Agreement, will be validly issued, fully paid and non-assessable, and the issuance of the First Resulting Shares of Common
Stock will not be subject to any preemptive or similar rights.

 

    	 	17	 

     

    

 

(c)          Subject
to completion of the Notes Documents Amendments and to adoption of the Charter Amendment, (i) the Company will have all the requisite
corporate power and authority to issue the Second Resulting Shares of Common Stock, (ii) the Second Resulting Shares of Common
Stock, when issued in accordance with the terms of this Agreement, will be duly and validly authorized by the Company, validly
issued, fully paid and non-assessable and (iii) the issuance of the Second Resulting Shares of Common Stock will not be subject
to any preemptive or similar rights.

 

(d)          The
Rights Offering Shares, when purchased in accordance with the terms of the Rights Offering, will be duly and validly authorized
by the Company, validly issued, fully paid and non-assessable, and will not be subject to any preemptive or similar rights.

 

(e)          The
Private Placement Shares, when purchased in accordance with the terms of the Private Placement, will be duly and validly authorized
by the Company, validly issued, fully paid and non-assessable, and will not be subject to any preemptive or similar rights.

 

(f)          Each
Subsidiary of the Company has been duly organized, is validly existing and in good standing as a corporation, partnership or limited
liability company, as applicable, under the laws of its jurisdiction of organization and is duly qualified to do business and in
good standing as a foreign corporation or other business entity in each jurisdiction in which its ownership or lease of property
or the conduct of its businesses requires such qualification, except where the failure to be so qualified or in good standing could
not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. Each Subsidiary of the Company
has all requisite power and authority to own and operate its properties and to carry on its business as now conducted and as proposed
to be conducted. As of the date of this Agreement, the Company has no Subsidiaries other than Bacterin International, Inc., X-spine
Systems Inc. and Xtant Medical, Inc. and no “significant subsidiaries” (as defined in Rule 405 under the Securities
Act) other than Bacterin International, Inc. and X-spine Systems Inc.

 

Section 3.2.          Capitalization.

 

(a)          As
of the date hereof, the Company has duly authorized for issuance 95,000,000 shares of common stock, par value $0.000001 per share
(the “Common Stock”) of which 18,178,792 shares are validly issued and outstanding, and does not have any other
shares of capital stock outstanding. Except as set forth on Section 3.2(a) of the Disclosure Schedule, there are no outstanding
warrants, options, rights of conversion or other rights, agreements, arrangements or commitments giving any Person the right (contingent
or otherwise) to acquire any shares of Common Stock or any shares of capital stock or other Equity Interests in the Company or
any of its Subsidiaries.

 

(b)          All
the outstanding shares of capital stock or other voting securities or equity interests of each Subsidiary of the Company have been
duly authorized and validly issued, and are fully paid and non-assessable. Section 3.2(b) of the Disclosure Schedule correctly
states the number of issued and treasury shares of each Subsidiary of the Company.

 

    	 	18	 

     

    

 

(c)          Section
3.2(c) of the Disclosure Schedule correctly states the name of any Person (other than Subsidiaries of the Company) whose equity
interests are owned, directly or indirectly, by the Company. Neither the Company nor any of its Subsidiaries owns or controls,
directly or indirectly, any Capital Stock or other equity interest in any Person other than (x) as listed on Section 3.2(c)
of the Disclosure Schedule and (y) in the case of the Company, equity interest in the Subsidiaries. Each issued and outstanding
share of Capital Stock of each Subsidiary of the Company (i) has been duly authorized and validly issued, is fully paid and
non-assessable and was issued free of preemptive rights and (ii) except for any equity interests not owned directly or indirectly
by the Company as shown on Section 3.2(c) of the Disclosure Schedule is owned by the Company, directly or through Subsidiaries,
free and clear of any Liens except as could not, individually or in the aggregate, reasonably be expected to have a Material Adverse
Effect.

 

Section 3.3.          Non-Contravention.
Except as set forth in Section 3.3 of the Disclosure Schedule, the issuance of the First Resulting Shares of Common Stock
upon conversion of the 2017 Notes, the issuance of the Second Resulting Shares of Common Stock upon completion of the Convertible
Notes Exchange, the Rights Offering and the issuance of the Rights Offering Shares, the Private Placement and the issuance of the
Private Placement Shares, the execution, delivery and performance by the Company of this Agreement and the Restructuring Documents
and the consummation of the transactions contemplated hereby and thereby, will not (i) violate any provision of any Applicable
Law, (ii) violate any provision of any of the organizational documents of the Company or any of its Subsidiaries, (iii) conflict
with or result in a breach or violation of, (iv) constitute (with or without notice or lapse of time or both) a default under,
(v) result in or give to any Person any right of termination, cancellation, acceleration or modification in or with respect
to, (vi) result in or give to any Person any additional rights or entitlement to increased, additional, accelerated or guaranteed
payments under, or (vii) result in the creation or imposition of any Lien upon the Company or any of its Subsidiaries or any
of their respective assets and properties under, any of the terms or provisions of any Contract, indenture, mortgage, deed of trust,
loan agreement, license, lease or other agreement or instrument to which the Company or any of its Subsidiaries is a party or by
which any of them is bound or to which any of their respective properties or assets is subject, except, with respect to clauses
(i), (iii), (iv), (v), (vi) and (vii), conflicts, default, violations, terminations or Liens that could not, individually or in
the aggregate, reasonably be expected to have a Material Adverse Effect.

 

Section 3.4.          No
Approvals or Consents. Except as specifically contemplated in this Agreement, no consent, approval, authorization or Order
of, or filing, notice, registration or qualification with any Governmental Authority having jurisdiction over the Company or any
of its Subsidiaries or any of their respective properties or assets is required for the issuance of the First Resulting Shares
of Common Stock upon conversion of the 2017 Notes, the issuance of the Second Resulting Shares of Common Stock upon completion
of the Convertible Notes Exchange, the Private Placement and the issuance of the Private Placement Shares, the launch of the Rights
Offering and the issuance of the Rights Offering Shares, the execution, delivery and performance by the Company of this Agreement
and the Restructuring Documents, and the consummation of the transactions contemplated hereby and thereby.

 

    	 	19	 

     

    

 

Section 3.5.           Financial
Statements; Internal Controls.

 

(a)          The
Company has delivered to the Investors (i) complete and correct copies of the audited consolidated balance sheet of the Company
and its consolidated subsidiaries as of December 31, 2016, and the related consolidated statements of income and shareholders’
equity and statements of cash flows for the fiscal year then ended, including the footnotes thereto, certified by independent certified
public accountants, and (ii) copies of the unaudited consolidated balance sheet of the Company and its consolidated Subsidiaries
as of September 30, 2017, and the related unaudited consolidated statements of income and shareholders’ equity and statements
of cash flows for the nine month period then ended (the documents in clauses (i) and (ii) collectively the “Financial
Statements”).

 

(b)          Each
of the consolidated balance sheets contained in the Financial Statements fairly presents in all material respects the consolidated
financial position of the Company and its consolidated Subsidiaries as of its date and each of the consolidated statements of income
and shareholders’ equity and statements of cash flows included in the Financial Statements fairly presents in all material
respects the consolidated results of operations, shareholders’ equity or cash flows, as the case may be, of the Company and
its consolidated Subsidiaries for the periods to which they relate (subject, in the case of any unaudited interim financial statements,
to normal year-end adjustments and the absence of footnote disclosures), in each case in accordance with GAAP applied on a consistent
basis during the periods involved, except as noted therein.

 

(c)          Since
the date of the latest financial statements included in the Company’s Quarterly Report on Form 10-Q for the quarter ended
September 30, 2017 (the “Company Form 10-Q”) and except as disclosed therein, neither the Company nor any
of its Subsidiaries has (i) sustained any loss or interference with its business from fire, explosion, flood or other calamity,
whether or not covered by insurance, or from any labor disturbance or dispute or action or Order from any applicable Governmental
Authority, (ii) issued or granted any securities (other than pursuant to (x) employee benefit plans, qualified stock option plans,
other employee compensation plans or non-employee director compensation programs in existence on the date hereof and described
in the Company Form 10-Q or (y) options, warrants or rights outstanding on the date hereof), (iii) incurred any liability or obligation,
direct or contingent, other than liabilities and obligations that were incurred in the ordinary course of business, (iv) entered
into any transaction not in the ordinary course of business (other than as described in the Company Form 10-Q (without giving effect
to any supplements or amendments thereto after the execution and delivery of this Agreement)), or (v) declared or paid any dividend
on its Capital Stock, and, since such date, there has not been any change in the Equity Interests or long-term debt of the Company
or any of its Subsidiaries (other than as described in the Company Form 10-Q (without giving effect to any supplements or amendments
thereto after the execution and delivery of this Agreement)) or any adverse change, or any development involving a prospective
adverse change, in or affecting the condition (financial or otherwise), results of operations, stockholders’ equity, properties,
management, business or prospects of the Company and its Subsidiaries, taken as a whole, in each case except as could not, individually
or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

    	 	20	 

     

    

 

(d)          Except
as set forth in Section 3.5(d) of the Disclosure Schedule, the Company maintains a system of internal controls over financial
reporting (as such term is defined in Rule 13a-15(f) of the Exchange Act) that complies with the requirements of the Exchange Act
and that has been designed by, or under the supervision of, the Company’s principal executive and principal financial officers,
to provide assurance regarding the reliability of financial reporting and the preparation of financial statements for external
purposes in accordance with GAAP. Except as set forth in Section 3.5(d) of the Disclosure Schedule, the Company maintains
internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s
general or specific authorization, (ii) transactions are recorded as necessary to permit preparation of the Company’s financial
statements in conformity with GAAP and to maintain accountability for its assets, (iii) access to the Company’s assets is
permitted only in accordance with management’s general or specific authorization, and (iv) the recorded accountability for
the Company’s assets is compared with existing assets at reasonable intervals and appropriate action is taken with respect
to any differences. As of the date of the most recent balance sheet of the Company and its consolidated Subsidiaries reviewed or
audited by EKS&H LLP and the audit committee of the board of directors of the Company, there were no material weaknesses in
the Company’s internal controls.

 

(e)          Except
as set forth in Section 3.5(e) of the Disclosure Schedule, since the date of the most recent balance sheet of the Company
and its consolidated Subsidiaries reviewed or audited by EKS&H LLP and the audit committee of the board of directors of the
Company, (i) the Company has not been advised of or become aware of (x) any significant deficiencies in the design or operation
of internal controls, that could adversely affect the ability of the Company or any of its Subsidiaries to record, process, summarize
and report financial data, or any material weaknesses in internal controls, and (y) any fraud, whether or not material, that involves
management or other employees who have a significant role in the internal controls of the Company and each of its Subsidiaries;
and (ii) there have been no significant changes in internal controls or in other factors that could significantly affect internal
controls, including any corrective actions with regard to significant deficiencies and material weaknesses.

 

Section
3.6.          No Undisclosed Liabilities. The Company does not
have any material liabilities other than (i) liabilities adequately reflected on the financial statements of the Company in the
Company Form 10-Q or (ii) incurred since September 30, 2017 in the ordinary course of business consistent with past practice (none
of which arise from or are related to a breach of contract, tort, infringement or a violation of law).

 

Section 3.7.          No
Actions or Proceedings. There are no legal or governmental actions, suits, proceedings, audits, investigations or other reviews
pending or, to the Knowledge of the Company, threatened in writing or affecting, the Company, its Subsidiaries or any of their
respective assets or properties that could, individually or in the aggregate, reasonably be expected to (i) have a Material Adverse
Effect or (ii) have a material adverse effect on the performance by the Company of this Agreement, the Restructuring Documents
or on the consummation of any of the transactions contemplated hereby or thereby. No Governmental Authority has notified the Company
of an intention to conduct any audit, investigation or other review with respect to the Company that could, individually or in
the aggregate, reasonably be expected to have a Material Adverse Effect.

 

    	 	21	 

     

    

 

Section 3.8.          Title
to Assets and Properties. The Company and each of its Subsidiaries has good and marketable title in fee simple to all real
property and good and marketable title to all personal property owned by them, in each case free and clear of all Liens and defects,
except to the extent such Liens and defects do not materially affect the value of such property and do not materially interfere
with the use made and proposed to be made of such property by the Company or any of its Subsidiaries. All assets held under lease
by the Company or any of its Subsidiaries are held by them under valid, subsisting and enforceable leases, with such exceptions
as do not materially interfere with the use made and proposed to be made of such assets by the Company or any of its Subsidiaries.

 

Section 3.9.          Intellectual
Property. The Company and its Subsidiaries own, or have obtained valid and enforceable licenses for, or other rights to use,
the inventions, patent applications, patents, trademarks (both registered and unregistered), tradenames, service names, copyrights,
trade secrets and other proprietary information described in the Company SEC Reports as being owned or licensed by them or which
are necessary for the conduct of their respective businesses as currently conducted or as proposed to be conducted (including the
commercialization of products or services described in the Company SEC Reports as under development), except where the failure
to own, license or have such rights could not, individually or in the aggregate, reasonably be expected to have a Material Adverse
Effect (collectively, “Intellectual Property”). Except as disclosed in the Company SEC Reports, and except as
could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, (i) there are no third parties
who have or, to the Company’s Knowledge, will be able to establish rights to any Intellectual Property, except for, and to
the extent of, the ownership rights of the owners of the Intellectual Property which the Company SEC Reports disclose is licensed
to the Company or any of its Subsidiaries; (ii) to the Company’s Knowledge, there is no infringement by third parties of
any Intellectual Property; (iii) there is no pending or, to the Company’s Knowledge, threatened action, suit, proceeding
or claim by others challenging the Company’s or its Subsidiaries’ rights in or to any Intellectual Property, and the
Company is unaware of any facts which could form a reasonable basis for any such action, suit, proceeding or claim; (iv) there
is no pending or, to the Company’s Knowledge, threatened action, suit, proceeding or claim by others challenging the validity,
enforceability or scope of any Intellectual Property, and the Company is unaware of any facts which could form a reasonable basis
for any such action, suit, proceeding or claim; (v) there is no pending or, to the Company’s Knowledge, threatened action,
suit, proceeding or claim by others that the Company or any of its Subsidiaries infringes or otherwise violates (or would, upon
the commercialization of any product or service described in the Company SEC Reports as under development, infringe or violate)
any patent, trademark, tradename, service name, copyright, trade secret or other proprietary rights of others, and the Company
is unaware of any facts which could form a reasonable basis for any such action, suit, proceeding or claim; (vi) the Company and
its Subsidiaries have complied with the terms of each agreement pursuant to which Intellectual Property has been licensed to the
Company or any of its Subsidiaries, and all such agreements are in full force and effect; (vii) to the Company’s Knowledge,
there is no patent or patent application that contains claims that interfere with the issued or pending claims of any of the Intellectual
Property or that challenges the validity, enforceability or scope of any of the Intellectual Property; and (viii) to the Company’s
Knowledge, there is no prior art that may render any patent application within the Intellectual Property unpatentable that has
not been disclosed to the U.S. Patent and Trademark Office.

 

    	 	22	 

     

    

 

Section 3.10.         Taxes.
The Company and each of its Subsidiaries have filed all federal, state, local and foreign Tax returns required to be filed through
the date hereof, subject to permitted extensions, and have paid all Taxes due, and no Tax deficiency has been determined adversely
to the Company or any of its Subsidiaries, nor does the Company have any Knowledge of any Tax deficiencies that have been, or could
reasonably be expected to be asserted against the Company or any of its Subsidiaries, that could, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

 

Section 3.11.         Labor
Matters. No labor disturbance by or dispute with the employees of the Company or any of its Subsidiaries exists or, to the
Knowledge of the Company, is imminent that could, individually or in the aggregate, reasonably be expected to have a Material Adverse
Effect.

 

Section 3.12.         Private
Offering; No Integration.

 

(a)           It
is not necessary in connection with the issuance or delivery of the Resulting Shares, or of the Private Placement Shares, in the
manner contemplated by this Agreement and the Restructuring Documents to register the Resulting Shares or the Private Placement
Shares under the Securities Act.

 

(b)           None
of the Company or any of its Affiliates nor any Person acting on any of their behalf has, directly or indirectly, offered, issued,
sold or solicited any offer to buy any security of a type which would be integrated with the Restructuring Transactions in any
manner that would require the Resulting Shares or the Private Placement Shares to be registered under the Securities Act.

 

Section 3.13.         Investment
Company Act. Neither the Company nor any of its Subsidiaries is, and, after giving effect to the Restructuring Transactions,
none of them will be, an “investment company” within the meaning of the Investment Company Act.

 

Section 3.14.         Insurance.
The Company and each of its Subsidiaries carry, or are covered by, insurance from insurers of recognized financial responsibility
in such amounts and covering such risks as is adequate for the conduct of their respective businesses and the value of their respective
properties and as is customary for companies engaged in similar businesses in similar industries. All policies of insurance of
the Company and its Subsidiaries are in full force and effect; the Company and each of its Subsidiaries are in compliance with
the terms of such policies in all material respects; and neither the Company nor any of its Subsidiaries has received notice from
any insurer or agent of such insurer that capital improvements or other expenditures are required or necessary to be made in order
to continue such insurance. Except as could not, individually or in the aggregate, reasonably be expected to have a Material Adverse
Effect, there are no claims by the Company or any of its Subsidiaries under any such policy or instrument as to which any insurance
company is denying liability or defending under a reservation of rights clause; and neither the Company nor any such Subsidiary
has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or
to obtain similar coverage from similar insurers as may be necessary to continue its business at a cost that could not, individually
or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

    	 	23	 

     

    

 

Section 3.15.        Compliance
with Laws; Permits.

 

(a)          Except
as set forth in Section 3.15(a) of the Disclosure Schedule, neither the Company nor any of its Subsidiaries is in violation
of any Applicable Law, except to the extent any such violation could not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect.

 

(b)          Except
as set forth in Section 3.15(b) of the Disclosure Schedule, there is and has been no failure on the part of the Company
or any of its directors or officers, in their capacities as such, to comply with any provision of the Sarbanes-Oxley Act of 2002
and the rules and regulations promulgated in connection therewith.

 

(c)          The
Company and each of its Subsidiaries have, and have operated in compliance with, and have not failed to obtain any, such permits,
licenses, patents, franchises, certificates of need, exemptions, clearances and other approvals or authorizations of Governmental
Authorities (“Permits”) as are necessary under Applicable Law to own their respective properties and conduct
their respective businesses in the manner described in the Company SEC Reports, except for any of the foregoing that could not,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. The Company and each of its Subsidiaries
have fulfilled and performed all of their respective obligations with respect to the Permits, and no event has occurred that allows,
or after notice or lapse of time would allow, revocation or termination thereof or results in any other impairment of the rights
of the holder or any such Permits, except for any of the foregoing that could not, individually or in the aggregate, reasonably
be expected to have a Material Adverse Effect. Neither the Company nor any of its Subsidiaries has received written notice of any
revocation, termination or modification of any such Permits or otherwise has any reason to believe that any such Permits will be
revoked, terminated or modified or not be renewed in the ordinary course.

 

    	 	24	 

     

    

 

(d)          Except
as described in the Company Form 10-Q, and except, in each case, where such event could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect, the Company and each of its Subsidiaries: (i) has not received any unresolved
U.S. Food and Drug Administration (“FDA”) or similar Governmental Authority written notice of inspectional observations,
Form 483, written notice of adverse filing, warning letter, untitled letter or other similar correspondence or notice from the
FDA, or any other court or arbitrator or federal, state, local or foreign governmental or regulatory authority, alleging or asserting
material noncompliance with the Federal Food, Drug and Cosmetic Act (21 U.S.C. § 301 et seq.), or received any written requests
or requirements to make material changes to the Company products by the FDA or any other Governmental Authority, (ii) is and has
been in compliance with applicable health care laws, including, the Federal Food, Drug and Cosmetic Act (21 U.S.C. § 301
et seq.), the federal Anti-kickback Statute (42 U.S.C. § 1320a-7b(b)), the civil False Claims Act (31 U.S.C. §§
3729 et seq.), the criminal False Claims Law (42 U.S.C. § 1320a-7b(a)), the Civil Monetary Penalties Law (42 U.S.C. §
1320a-7a), the Physician Payment Sunshine Act (42 U.S.C. § 1320a-7h), all criminal laws relating to health care fraud and
abuse, including but not limited to 18 U.S.C. Sections 286 and 287, and the health care fraud criminal provisions under the Health
Insurance Portability and Accountability Act of 1996 (42 U.S.C. § 1320d et seq.) (“HIPAA”), the exclusion
laws (42 U.S.C. § 1320a-7), Medicare (Title XVIII of the Social Security Act), Medicaid (Title XIX of the Social Security
Act), HIPAA, as amended by the Health Information Technology for Economic and Clinical Health Act of 2009, and the regulations
promulgated pursuant to such laws, and comparable state laws, and all other foreign, federal, state and local laws relating to
the regulation of the Company and its Subsidiaries (collectively, “Health Care Laws”), (iii) has not engaged
in activities which are, as applicable, cause for false claims liability, civil penalties, or mandatory or permissive exclusion
from Medicare, Medicaid, or any other state health care program or federal health care program, (iv) possesses all Permits
and supplements or amendments thereto required by any such Health Care Laws and/or to carry on its businesses as currently conducted
as described in the Company SEC Reports (“Authorizations”), and such Authorizations are valid and in full force
and effect and neither the Company nor any of its Subsidiaries is in violation of any term of any such Authorizations, (v) has
not received written notice of any ongoing claim, action, suit, proceeding, hearing, enforcement, investigation, arbitration or
other action from any Governmental Authority alleging that any product, operation or activity is in material violation of any Health
Care Laws or Authorizations and has no Knowledge that any such Governmental Authority has threatened any such claim, litigation,
arbitration, action, suit, investigation or proceeding, (vi) has not received written notice that any Governmental Authority has
taken, is taking or intends to take action to limit, suspend, modify or revoke any Authorizations and has no Knowledge that any
such Governmental Authority has threatened such action, (vii) has filed, obtained, maintained or submitted all reports, documents,
forms, notices, applications, records, claims, submissions and supplements or amendments thereto as required by any Health Care
Laws or Authorizations and all such reports, documents, forms, notices, applications, records, claims, submissions and supplements
or amendments were complete, correct and not misleading on the date filed (or were corrected or supplemented by a subsequent submission),
(viii) has not, either voluntarily or involuntarily, initiated, conducted, or issued or caused to be initiated, conducted or issued,
any recall, market withdrawal or replacement, safety alert, post-sale warning, “dear doctor” letter, or other notice
or action relating to the alleged lack of safety, efficacy or regulatory compliance of any product or any alleged product defect
or violation and, to the Company’s Knowledge, there are no facts which are reasonably likely to cause, and the Company has
not received any written notice from the FDA or any other Governmental Authority regarding, a material recall, market withdrawal
or replacement of any Company product sold or intended to be sold by the Company, a material change in the marketing classification
or a material adverse change in the labeling of any such Company products, or a termination or suspension of the manufacturing,
marketing, or distribution of such Company products, (ix) is not a party to any corporate integrity agreement, deferred prosecution
agreement, monitoring agreement, consent decree, settlement order, or similar agreements, or has any reporting obligations pursuant
to any such agreement, plan or correction or other remedial measure entered into with any Governmental Authority, (x) has not,
nor has any officer, director, employee, agent or, to the Knowledge of the Company, any distributor of the Company, made an untrue
statement of a material fact or a fraudulent statement to the FDA or any other Governmental Authority, failed to disclose a material
fact required to be disclosed to the FDA or any other Governmental Authority, or committed an act, made a statement, or failed
to make a statement, in each such case, related to the business of the Company that, at the time such disclosure was made, would
reasonably be expected to provide a basis for the FDA to invoke its policy respecting “Fraud, Untrue Statements of Material
Facts, Bribery, and Illegal Gratuities”, set forth in 56 Fed. Reg. 46191 (September 10, 1991) or for the FDA or any other
Governmental Authority to invoke any similar policy, (xi) has not, nor has any officer, director, employee, or, to the Knowledge
of the Company, any agent or distributor of the Company, been debarred or convicted of any crime or engaged in any conduct for
which debarment is mandated by 21 U.S.C. § 335a(a) or any similar law or authorized by 21 U.S.C. § 335a(b) or any
similar law applicable in other jurisdictions in which Company products or Company product candidates are sold or intended by the
Company to be sold, and (xii) neither the Company, its Subsidiaries nor their respective officers, directors, employees, agents
or contractors has been or is currently debarred, suspended or excluded from participation in the Medicare and Medicaid programs
or any other state or federal health care program.

 

    	 	25	 

     

    

 

(e)          To
the Company’s Knowledge, there are no past, present or reasonably anticipated future events, conditions, circumstances, activities,
practices, actions, omissions or plans that, individually or in the aggregate, could reasonably be expected to give rise to any
material costs or liabilities to the Company or any of its Subsidiaries under, or to interfere with or prevent compliance by the
Company or any of its Subsidiaries with, environmental laws, except as could not, individually or in the aggregate, reasonably
be expected to have a Material Adverse Effect. Neither the Company nor any of its Subsidiaries (i) is the subject of any investigation,
(ii) has received any notice or claim, (iii) is a party to or affected by any pending or, to the Company’s Knowledge, threatened
action, suit or proceeding, (iv) is bound by any Order or (v) has entered into any agreement, in each case relating to any alleged
violation of any environmental law or any actual or alleged release or threatened release or cleanup at any location of any hazardous
materials.

 

Section 3.16.         Material
Contracts.

 

(a)          Section
3.16(a) of the Disclosure Schedule lists the following Contracts to which the Company or any of its Subsidiaries is
a party or by which it or its assets are bound (each such Contract, whether or not set forth in such section of the Disclosure
Schedule, a “Material Contract”); provided that for the Contracts described in subsections (vii), (viii),
(xi), (xiii), (xiv), (xv), (xvi), (xvii) and (xviii) below only Contracts which involve aggregate amounts paid or payable by or
to the Company and its Subsidiaries exceeding $250,000 need be listed:

 

i.          employment
or consulting Contract, severance Contract, change of control Contract or any employee collective bargaining agreement or other
Contract with any labor union or any officer, director, employee or consultant of the Company;

 

ii.         Contract
relating to any employee benefit plan;

 

iii.        Contract
not to compete or otherwise restricting the development, manufacture, marketing, distribution or sale of any products or services
(including any Contract that requires the Company or any of its Subsidiaries to work exclusively with any Person in any particular
area or any other limitation on the ability of the Company or any of its Subsidiaries to (A) transact or compete in any line of
business, in any therapeutic area, with any Person, in any geographic area or during any period of time or (B) acquire or sell
any product or asset, or receive or provide any services, from or to any Person;

 

iv.        Contract
containing any “non-solicitation” or “no-hire” provision that restricts the Company or any of its Subsidiaries;

 

    	 	26	 

     

    

 

v.        Contract
containing any provision that applies to or restricts the operations or business of any Affiliate of the Company (other than any
Subsidiary of the Company);

 

vi.       Contract
with or involving (A) any Affiliate of the Company, (B) any current or former holder of capital stock of the Company or any Affiliate
thereof or (C) any director, officer or employee of the Company or any Affiliate thereof;

 

vii.      lease,
sublease or similar Contract with any Person under which the Company or any of its Subsidiaries is a lessor or sublessor of, or
makes available for use to any third party any portion of any premises otherwise occupied or leased by the Company or any of its
Subsidiaries;

 

viii.     lease
or similar Contract with any Person under which (A) the Company is lessee of, or holds or uses, any machinery, equipment, vehicle
or other tangible personal property owned by any Person or (B) the Company is a lessor or sublessor of, or makes available for
use by any Person, any tangible personal property owned or leased by the Company;

 

ix.        Contract
(or substantially related Contracts) (A) calling for performance over a period of more than one year, (B) requiring or otherwise
involving the potential payment by or to the Company or any of its Subsidiaries of more than an aggregate of $250,000, (C) in which
the Company or any of its Subsidiaries has granted manufacturing rights, “most favored nation” pricing provisions or
marketing or distribution rights relating to any products or territory or (D) in which the Company or any of its Subsidiaries has
agreed to purchase a minimum quantity of goods or services or has agreed to purchase goods or services exclusively from a certain
party;

 

x.         management
service, consulting, financial advisory or any other similar Contract, and any Contract with any investment or commercial bank;

 

xi.        Contract
for the disposition of any significant portion of the assets or business of the Company or any of its Subsidiaries or any agreement
for the acquisition, directly or indirectly, of the assets or business of any other Person;

 

xii.       Contract
for any joint venture, partnership or similar arrangement;

 

xiii.      Contract
(other than material transfer agreements) granting a third party, including but not limited to affiliates of the Company, any license
to any Intellectual Property, or pursuant to which the Company or any of its Subsidiaries has been granted by a third party any
license to any Intellectual Property, or any other license, option or other Contract relating in whole or in part to the Intellectual
Property or the Intellectual Property of any other Person;

 

xiv.      Contract
(other than trade debt incurred in the ordinary course of business) under which the Company or any of its Subsidiaries has borrowed
any money from, or issued any note, bond, debenture or other evidence of indebtedness to, any Person;

 

    	 	27	 

     

    

 

xv.       Contract
(including so-called take-or-pay or keepwell agreements) under which (A) any Person has directly or indirectly guaranteed indebtedness,
liabilities or obligations of the Company or any of its Subsidiaries or (B) the Company or any of its Subsidiaries has directly
or indirectly guaranteed indebtedness, liabilities or obligations of any Person (in each case other than endorsements for the purpose
of collection in the ordinary course of business);

 

xvi.      Contract
under which the Company or any of its Subsidiaries has, directly or indirectly, made any advance, loan, extension of credit or
capital contribution to, or other investment in, any Person;

 

xvii.     Contract
(other than material transfer agreements, sponsored research agreements and clinical trial agreements entered in the ordinary course
of business) involving a research or development collaboration or similar arrangement;

 

xviii.    Contract
involving a supply or tolling agreement or arrangement (including, without limitation, any agreements for the supply of raw materials,
intermediates, bulk or finished drug product, research, clinical trial, development, distribution, or sale) that commits the Company
or any of its Subsidiaries to purchase goods or services or to sell any supplies for clinical studies or commercial use;

 

xix.      Contract
involving a standstill or similar obligation of the Company or any of its Subsidiaries to a third party or of a third party to
the Company or any of its Subsidiaries;

 

xx.       Contract
with any Governmental Authority;

 

xxi.      Contract
not entered into in the ordinary course of business; and

 

xxii.     Contract
that is otherwise material to the Company or any of its Subsidiaries.

 

(b)          The
Company has made available to the Investors true and complete copies of all Material Contracts. Each Material Contract is in full
force and effect and is a valid and binding obligation of the Company or its applicable Subsidiary party thereto and each of the
other parties thereto, enforceable in accordance with its terms. Except as set forth in Section 3.16(b) of the Disclosure
Schedule, no event, occurrence, condition or act has occurred, is pending or, to the Knowledge of the Company is threatened, which,
with the giving of notice, lapse of time, or the happening of any further event, occurrence, condition or act, would constitute
a breach or default by the Company, any of its Subsidiaries or, to the Knowledge of the Company, any other party to (i) any Material
Contract listed on Section 3.16(a) of the Disclosure Schedule or (ii) any other Material Contract, under such Material
Contract, or give rise to a right of termination, cancellation or to loss of a material benefit under, or to increased, additional,
accelerated or guaranteed rights or entitlements of any Person under any Material Contract, except where such breach or default
or giving rise to such a right with respect to any Material Contract referred to in clause (ii) above would not, individually or
in the aggregate, reasonably be expected to have a Material Adverse Effect. Neither the Company nor any of its Subsidiaries has
any obligation to repay any public subsidies or public grants.

 

    	 	28	 

     

    

 

(c)          Except
as described in Section 3.16(c) of the Disclosure Schedule, the execution and delivery of this Agreement and the consummation
of the Restructuring Transactions and the other transactions contemplated hereby will not (i) result in any material payment (including
severance, unemployment compensation, tax gross-up, bonus or otherwise) becoming due to any current or former director, officer,
employee or independent contractor of the Company or any of its Subsidiaries, from the Company or one of its Subsidiaries under
any employee benefit plan, Contract or otherwise, (ii) materially increase any benefits otherwise payable under any employee benefit
plan, Contract or otherwise or (iii) result in the acceleration of the time of payment, exercise or vesting of any such material
benefits.

 

(d)          Except
as set forth on Section 3.16(d) of the Disclosure Schedule, each of the employees, officers and directors of the Company and its
Subsidiaries is party to a confidentiality agreement with the Company providing, among other things, reasonable and customary protections
to the Company’s Intellectual Property.

 

Section
3.17.        Information Supplied.

 

(a)          None
of the information supplied or to be supplied by or on behalf of the Company specifically for inclusion or incorporation by reference
in the Preliminary Proxy Statement or the Definitive Proxy Statement (and any amendment or supplement thereto) will, at the time
the Preliminary Proxy Statement or the Definitive Proxy Statement (and any amendment or supplement thereto), as applicable, is
filed with the SEC or mailed to the Company stockholders or at the time of the Stockholder Meeting, contain any 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 light of the circumstances under which they are made, not misleading. The Preliminary Proxy Statement and the Definitive Proxy
Statement will comply as to form in all material respects with the requirements of the Securities Act and the Exchange Act.

 

(b)          None
of the information supplied or to be supplied by or on behalf of the Company specifically for inclusion or incorporation by reference
in the Registration Statement (including any amendment or supplement thereto) will, as of the effective date of the Registration
Statement or the closing date of the Rights Offering, contain any 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 light of the circumstances under which they
are made, not misleading. The Registration Statement will comply as to form in all material respects with the requirements of the
Securities Act and the Exchange Act.

 

Section 3.18.        Brokerage
Fees. Other than fees payable pursuant to the agreements set forth on Section 3.18 of the Disclosure Schedule, true
and correct copies of which have been made available to the Investors, neither the Company nor any of its Subsidiaries has paid,
or is a party to any Contract, agreement or understanding with any Person (other than this Agreement) that could give rise to a
valid claim against any of them for, a brokerage commission, finder’s fee or like payment in connection with the Restructuring
Transactions.

 

    	 	29	 

     

    

 

Section
3.19.        Fairness Opinion. The board of directors of the Company and the
Special Strategic Committee of the board of directors of the Company have received the opinion of Duff & Phelps, LLC to the
effect that, as of the date of such opinion and subject to the limitations, qualifications and assumptions set forth therein, the
exchange rate of $7.20 (after giving effect the Reverse Stock Split (as defined in the Charter Amendment)) for the 2015
Notes and the 2016 Notes is fair, from a financial point of view, to the public stockholders of
the Company (the “Fairness Opinion”).

 

Article
IV

REPRESENTATIONS AND WARRANTIES OF THE INVESTORS

 

Each Investor, severally
and not jointly, represents and warrants to each of the other Parties hereto as follows:

 

Section 4.1.          Due
Organization, Power and Authority. Each Investor is validly existing and in good standing under the laws of the state of its
organization. Each Investor has full right, power, authority and capacity to enter into this Agreement and the Restructuring Documents
to which it is (or will be) a party and to carry out the transactions contemplated thereby, and has taken all necessary action
to authorize the execution, delivery and performance of this Agreement and the Restructuring Documents to which it is (or will
be) a party. Upon execution and delivery by an Investor of this Agreement and the Restructuring Documents to which it is (or will
be) a party and, assuming due authorization, execution and delivery by the other parties thereto, this Agreement and the Restructuring
Documents to which it is (or will be) a party will constitute valid and binding obligations of such Investor, enforceable against
such Investor in accordance with their terms, except as such enforceability may be limited by bankruptcy, fraudulent conveyance,
insolvency, reorganization, moratorium, and other laws relating to or affecting creditors’ rights generally and by general
equitable principles (regardless of whether such enforceability is considered in a proceeding in equity or at law).

  

Section 4.2.          Investor
Status.

 

(a)          Each
Investor acknowledges that it is a sophisticated institutional investor, has knowledge and experience in financial matters and
is capable of independently evaluating the merits and risks of investment decisions with respect to the Restructuring Transactions.

 

(b)          Each
Investor acknowledges that (i) it has conducted its own investigation of the Company, (ii) it has had access to, and has had an
adequate opportunity to review, (x) all information the Company has filed with and furnished to the SEC, (y) all information set
forth in such filings and (z) such financial and other information as it deems necessary to make its decision to engage in the
Restructuring Transactions, and (iii) it has been offered the opportunity to ask questions of the Company, and received such answers
thereto, as it deemed necessary in connection with the decision to engage in the Restructuring Transactions.

 

Section 4.3.           No
Approvals or Consents. Except as expressly provided in this Agreement, no consent or approval is required by any other Person
or entity in order for an Investor to carry out the Restructuring Transactions contemplated by, and perform the respective obligations
under, this Agreement and each of the Restructuring Documents to which it is (or will be) a party.

 

Section 4.4.           No
Actions or Proceedings. There are no legal or governmental actions, suits or proceedings pending or, to any Investor’s
knowledge, threatened against or affecting such Investor, or any of its properties or assets which, if adversely determined, in
the aggregate, would reasonably be expected to materially and adversely affect the ability of such Investor to consummate any of
the transactions contemplated by this Agreement or any Restructuring Document.

 

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Section 4.5.          Non-Contravention.
The entry into and performance of this Agreement by each Investor and the consummation by such Investor of the transactions contemplated
hereby will not (i) result in a violation of the organizational documents of such Investor, (ii) conflict with, or constitute a
default under, or give to others any rights of termination, amendment, acceleration or cancellation of any agreement, indenture
or instrument to which such Investor is party, or (iii) result in the violation of any law, rule, regulation or Order (including
federal and state securities laws) applicable to such Investor, except in the case of clauses (ii) and (iii) above, for such conflicts,
defaults, rights or violations which would not, individually or in the aggregate, reasonably be expected to have a material adverse
effect on the ability of such Investor to perform its obligations hereunder.

 

Article
V

REPRESENTATIONS AND WARRANTIES OF THE CONSENTING NOTEHOLDERS

 

Each Consenting Noteholder
severally and not jointly, represents and warrants to each of the other Parties hereto as follows:

 

Section 5.1.          Ownership;
Due Organization, Power and Authority.

 

(a)          It
is the sole beneficial owner of the number of Convertible Notes of, or is the nominee, investment manager, or advisor for the beneficial
holders of such Convertible Notes, set forth in such Consenting Noteholder’s signature block to this Agreement.

 

(b)          It
is validly existing and in good standing under the laws of the state of its organization.

 

(c)          It
has full power and authority to act, to the full extent contemplated by this Agreement and the Restructuring Documents to which
it is (or will be) a party and without having to obtain the consent or waiver of any Person (other than such consents or waivers
as have been irrevocably obtained), with respect to the number of Convertible Notes set forth in such Consenting Noteholder’s
signature block to this Agreement.

 

(d)          Upon
execution and delivery by a Consenting Noteholder and, assuming due authorization, execution and delivery by the other parties
thereto, this Agreement and the Restructuring Documents to which such Consenting Noteholder is (or will be) a party will constitute
valid and binding obligations of such Consenting Noteholder, enforceable against such Consenting Noteholder in accordance with
their terms, except as such enforceability may be limited by bankruptcy, fraudulent conveyance, insolvency, reorganization, moratorium,
and other laws relating to or affecting creditors’ rights generally and by general equitable principles (regardless of whether
such enforceability is considered in a proceeding in equity or at law).

 

(e)          It
either (i) does not hold, nor has any voting power over, any shares of Common Stock or (ii) has duly executed and delivered the
Support Agreement.

 

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Section 5.2.          Investor
Status.

 

(a)          Each
Consenting Noteholder acknowledges that it is a sophisticated institutional investor, has knowledge and experience in financial
matters and is capable of independently evaluating the merits and risks of investment decisions with respect to the Restructuring
Transactions.

 

(b)          Each
Consenting Noteholder acknowledges that (i) it has conducted its own investigation of the Company, (ii) it has had access to, and
has had an adequate opportunity to review, (x) all information the Company has filed with and furnished to the SEC, (y) all information
set forth in such filings and (z) such financial and other information as it deems necessary to make its decision to engage in
the Restructuring Transactions, and (iii) it has been offered the opportunity to ask questions of the Company, and received such
answers thereto, as it deemed necessary in connection with the decision to engage in the Restructuring Transactions.

 

Section 5.3.          No
Approvals or Consents. Except as expressly provided in this Agreement, no consent or approval is required to be obtained by
such Consenting Noteholder from any other Person or entity in order for a Consenting Noteholder to carry out the Restructuring
Transactions contemplated by, and perform the respective obligations under, this Agreement and each of the Restructuring Documents
to which it is (or will be) a party.

  

Section 5.4.          No
Actions or Proceedings. There are no legal or governmental actions, suits or proceedings pending or, to the knowledge of any
Consenting Noteholder, threatened against or affecting such Consenting Noteholder, or any of such Consenting Noteholder’s
properties or assets which, if adversely determined, in the aggregate, would reasonably be expected to materially and adversely
affect the ability of such Consenting Noteholder to consummate any of the transactions contemplated by this Agreement or any Restructuring
Document.

 

Section 5.5.          Non-Contravention.
Assuming the truth and accuracy of the representations and warranties of the Company and of each Investor, as set forth in Article
III and Article IV, respectively, the entry into and performance of this Agreement by each Consenting Noteholder and
the consummation by such Consenting Noteholder of the transactions contemplated hereby will not (i) result in a violation of the
organizational documents of such Consenting Noteholder, (ii) conflict with, or constitute a default under, or give to others any
rights of termination, amendment, acceleration or cancellation of any agreement, indenture or instrument to which such Consenting
Noteholder is party, or (iii) result in the violation of any law, rule, regulation or Order (including federal and state securities
laws) applicable to such Consenting Noteholder, except in the case of clauses (ii) and (iii) above, for such conflicts, defaults,
rights or violations which would not, individually or in the aggregate, reasonably be expected to have a material adverse effect
on the ability of such Consenting Noteholder to perform its obligations hereunder.

 

    	 	32	 

     

    

 

Article
VI

COVENANTS OF THE PARTIES

 

Section 6.1.          Covenants
of the Company.

 

(a)          Business
Operations. Except as expressly permitted by this Agreement, during the period beginning on the date of this Agreement and
ending on the Closing Date, the Company shall (i) operate its businesses in the ordinary course based on historic practices and
the operations contemplated pursuant to the Company’s business plans, taking into account the Restructuring Transactions
and the other transactions contemplated hereby, (ii) use commercially reasonable efforts to preserve intact in all material respects
the business organization of the Company, (iii) make all commercially reasonable efforts consistent with past practices to keep
its physical assets in good working condition, to preserve, maintain the value of, renew, extend and keep in full force and effect
all Intellectual Property rights, to keep available the services of its current officers and employees and to preserve the Company’s
and each of its Subsidiaries’ relationships with lenders, creditors, lessors, lessees, licensors, licensees, officers, employees,
contractors, distributors, developers, vendors, clients, customers, suppliers or other Persons having a material business relationship
with the Company or any of its Subsidiaries, and (iv) comply with all Applicable Laws and Orders. Without limiting the generality
of the foregoing, and except as expressly permitted by this Agreement or as set forth on Schedule 6.1(a), prior to the Closing
Date, neither the Company nor any of its Subsidiaries, as the case may be, will, without the prior written consent of the Investors
and, solely to the extent such action would disproportionately affect the rights of any Consenting Noteholder as compared to the
Investors or any other Consenting Noteholder, a majority of the Consenting Noteholders:

 

i.          issue,
sell or pledge, or authorize or propose the issuance, sale or pledge of, additional shares of its capital stock or securities convertible
into any such shares, or any rights, warrants or options to acquire any such shares or other convertible securities, or any stock
appreciation rights, phantom stock awards or other rights that are linked in any way to the price of the Common Stock or the value
of the Company or any part thereof;

 

ii.        split,
combine, subdivide, reclassify or redeem, or purchase or otherwise acquire, or propose to do any of the foregoing with respect
to, any of its outstanding securities;

 

iii.       declare,
set aside or pay any dividend on, or make any other distribution in any form in respect of, the Common Stock;

 

iv.       purchase
or otherwise acquire, sell or otherwise dispose of or encumber (or enter into any agreement to so purchase or otherwise acquire,
sell or otherwise dispose of or encumber) material properties or material assets except in the ordinary course of business;

 

v.        acquire
or agree to acquire by merging or consolidating with, or by purchasing all or a substantial portion of the assets of, or by purchasing
all or a substantial portion of the capital stock of, or by any other manner, any business or any other Person or any division
thereof;

 

vi.       amend
any of the charter documents, bylaws or other governing documents of the Company or any of its Subsidiaries;

 

    	 	33	 

     

    

 

vii.       except
as required to comply with Applicable Law or any employee benefit plan as in effect on the date of this Agreement, (i) increase
the compensation (other than compensation increases in the ordinary course of business) of any of its directors, officers, employees,
or consultants, (ii) pay or agree to pay to any directors, officers, employees or consultants any bonus, other amount, or other
benefit, or make any advance or loan to any such Person, other than the payment of base compensation or advances for business expenses
in the ordinary course of business (iii) grant any awards under any employee benefit plan (including the grant of stock options,
stock appreciation rights, stock based or stock related awards, performance units or restricted stock or the removal of existing
restrictions in any employee benefit plan or awards made thereunder), (iv) take any action to fund or in any other way secure
the payment of compensation or benefits under any employee benefit plan, (v) take any action to accelerate the vesting or payment
of any compensation or benefit under any employee benefit plan, (vi) adopt, enter into or amend any employee benefit plan, or (vii)
make any material determination under any employee benefit plan that not in the ordinary course of business;

 

viii.      repurchase,
prepay, create, incur or assume any indebtedness (including obligations in respect of capital leases), issue or sell, or amend,
modify or change any term of, any debt securities or options, warrants, calls or other rights to acquire any debt securities of
the Company or any of its Subsidiary, assume, guarantee, endorse or otherwise become liable or responsible (whether directly, contingently
or otherwise) for any indebtedness of another Person, make any loans, advances or capital contributions to, or investments in,
any Person other than the Company or any of its Subsidiaries, enter into any “keep well” or other Contract to maintain
any financial statement condition of another Person, or enter into any Contract having the economic effect of any of the foregoing;

 

ix.         purchase,
redeem or otherwise acquire any shares of its capital stock, or any option, warrant, call or right relating to such shares, interests
or other securities (including any Company options);

 

x.          change
its fiscal year, revalue any of its material assets or make any changes in financial accounting methods, principles, practices
or policies, except as required by GAAP or Applicable Law;

 

xi.         except
as required by Applicable Law, (i) make or change any Tax election; (ii) change any Tax accounting period or method; (iii) file
any amended Tax return; (iv) enter into any closing agreement with respect to Taxes; (v) settle any Tax claim or assessment;
(vi) surrender any right to claim a refund of Taxes; (vii) consent to any extension or waiver of the limitations period for the
assessment of any Tax; (viii) take any action outside the ordinary course of business consistent with past practice whose effect
would be to increase the Company’s or any of its Subsidiaries’ present or future Tax liability or to decrease the Company’s
or any of its Subsidiaries’ present or future Tax assets;

 

xii.        enter
into any lease or sublease of real property (whether as a lessor, sublessor, lessee or sublessee) or modify, amend, terminate or
fail to exercise any right to renew any lease or sublease of real property;

 

    	 	34	 

     

    

 

xiii.       enter
into any Contract (or any substantially related Contracts, taken together) (i) that would be a Material Contract, (ii) if consummation
of the Restructuring Transactions or the other transactions contemplated hereby, or compliance by the Company with the provisions
of this Agreement will conflict with, or result in any violation or breach of, or default (with or without notice or lapse of time
or both) under, or give rise to a right of, or result in, termination, cancellation or acceleration of any obligation or to a loss
of a benefit under, or result in the creation of any Lien in or upon any of the properties or assets of the Company, any of its
Subsidiaries under, or give rise to any increased, additional, accelerated or guaranteed rights or entitlements under, any provision
of such Contract, or (iii) containing any prohibition on change of control or any restriction on the ability of the Company or
any of its Subsidiaries to assign all or any portion of its rights, interests or obligations thereunder;

 

xiv.       waive,
release or assign any rights or claims under, fail to take a required action under, permit the lapse of or default under, or modify,
amend or terminate any Material Contract;

 

xv.        pay,
discharge, settle or satisfy any claims (including claims of stockholders and any stockholder litigation relating to the Restructuring
Transactions or any other transaction contemplated hereby), liabilities or obligations (whether absolute, accrued, asserted or
unasserted, contingent or otherwise), other than the payment, discharge or satisfaction in the ordinary course of business consistent
with past practice;

 

xvi.       take
any action (or omit to take any action) if such action (or omission) would or could reasonably be expected to result in any of
the conditions to the obligation of the Investors or the Consenting Noteholders to consummate the Restructuring Transactions and
the other transactions contemplated hereby set forth in Article VII not being satisfied or materially delay such satisfaction;

 

xvii.      except
as required by Applicable Law, adopt or enter into any collective bargaining agreement or other labor union Contract applicable
to any officer, director, employee of the Company or any of its Subsidiaries or terminate the employment of any such Person that
has an employment, severance or similar agreement or Contract with the Company or any of its Subsidiaries;

 

xviii.     discharge
or satisfy any Lien or pay any obligation or liability other than in the ordinary course of business consistent with past practice;

 

xix.       fail
to maintain insurance coverage at levels consistent with presently existing levels;

 

xx.        commence,
participate or agree to commence or participate in any bankruptcy, voluntary liquidation, dissolution, winding up, examinership,
insolvency or similar proceeding in respect of the Company or any of its Subsidiaries;

 

xxi.       create
or have any subsidiary of the Company, other than the current Subsidiaries of the Company;

 

    	 	35	 

     

    

 

xxii.      engage
in any business or business activity other than the business and business activities currently conducted; or

 

xxiii.     authorize
any of, or commit, resolve or agree, whether in writing or otherwise, to take any of, the actions listed above in this Section
6.1(a).

 

(b)          Effectuating
Documents; Further Transactions. After the Closing Date, to the extent permitted by this Agreement and the Restructuring Documents,
the Company and its officers, directors and members are authorized to and may issue, execute, deliver, file or record such Contracts,
securities, instruments, releases, and other agreements or documents and take such actions as may be necessary or appropriate to
effectuate, implement, and further evidence the terms and conditions of this Agreement and the Equity Interests to be converted,
exchanged or issued, as applicable, pursuant to the Restructuring Transactions on behalf of the Company, without the need for any
approvals, authorization, or consents except for those expressly required pursuant to this Agreement.

 

(c)          Fees
and Expenses. The Company shall pay (i) when due and payable, all reasonable costs and expenses (including attorney's fees
and expense reimbursement) that it incurs with respect to the negotiation, execution, delivery and performance of this Agreement,
the Restructuring Documents and the Restructuring Transactions and (ii) at the Closing, all documented (pursuant to summary form
invoices which may be redacted for privileged information) costs and expenses (for professional fees, expense reimbursement or
otherwise) presented for payment by the counsel and professionals retained by each Investor and each Consenting Noteholder, including
Covington & Burling LLP (provided that such fees shall not exceed $10,000 in the aggregate for any Consenting Noteholder).
The costs and expenses payable pursuant to this Section 6.1(c) shall be in addition to, and shall in no way affect or limit,
the reimbursement rights held by the Investors and the Consenting Noteholders under any other document or agreement.

 

(d)          Material
Adverse Effect. During the period beginning on the date of this Agreement and ending on the Closing Date, the Company shall
promptly, but in any event within five (5) Business Days thereafter, give written notice to the Investors and the Consenting Noteholders
after knowing of any development or event which could, individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.

 

(e)          Proxy
Statement. The Company shall use its reasonable best efforts to cause the Definitive Proxy Statement to be mailed to the Company
stockholders as promptly as practicable after the date hereof. No filing of, or amendment or supplement to, the Preliminary Proxy
Statement or the Definitive Proxy Statement will be made by the Company without providing the Investors a reasonable opportunity
to review and comment reasonably and in good faith thereon. If at any time prior to receipt of the Company Stockholder Approval
any information relating to the Company, or any of its Affiliates, directors or officers, should be discovered by the Company which
is required to be set forth in an amendment or supplement to the Definitive Proxy Statement, so that such document would not include
any misstatement of a material fact or omit to state any material fact necessary to make the statements therein, in light of the
circumstances under which they are made, not misleading, the Company shall promptly notify the Investors and an appropriate amendment
or supplement describing such information shall be promptly filed with the SEC and, to the extent required by Applicable Law, disseminated
to the Company stockholders. The Company shall promptly notify the Investors of the receipt of any and all comments from the SEC
or the staff of the SEC and of any request by the SEC or the staff of the SEC for amendments or supplements to the Preliminary
Proxy Statement or the Definitive Proxy Statement for additional information and shall supply the Investors with copies of all
correspondence between it or any of its representatives, on the one hand, and the SEC or the staff of the SEC, on the other hand,
with respect to the Preliminary Proxy Statement, the Definitive Proxy Statement or the Restructuring Transactions. The Company
shall respond to any and all comments from the SEC or the staff of the SEC and to any request by the SEC or the staff of the SEC
for amendments or supplements to the Preliminary Proxy Statement or the Definitive Proxy Statement, as promptly as practicable.
Any response to the SEC and any amendments or supplements to the Preliminary Proxy Statement or the Definitive Proxy Statement
shall be subject to Investor approval, which approval shall not be unreasonably withheld or delayed.

 

    	 	36	 

     

    

 

(f)          Stockholder
Meeting and Company Stockholder Approval. The Company shall, subject to Applicable Law, the Company’s certificate of
incorporation, the Company’s bylaws and the rules of the NYSE American, (i) as promptly as reasonably practicable, establish
a record date for, duly call and give notice of the Stockholder Meeting and (ii) as promptly as reasonably practicable convene
and hold the Stockholder Meeting and submit the issuance of the Second Resulting Shares of Common Stock, the Charter Amendment
and the election of the New Directors to the New Board to its stockholders for adoption, in order
to obtain the Company Stockholder Approval. If, prior to the date on which the Stockholder Meeting is scheduled, (x) the Company
reasonably believes that it is necessary to postpone or adjourn the Stockholder Meeting to ensure that any required supplement
or amendment to the Definitive Proxy Statement is provided to the Company stockholders in advance of the Stockholder Meeting or
(y) the Company or the Investors believe the Company will not receive proxies sufficient to obtain the Company Stockholder Approval,
the Company may, with the Investors’ consent, postpone or adjourn, or make one or more successive postponements or adjournments
of, the Stockholder Meeting. Once the Company has established a record date for the Stockholder Meeting, the Company shall not
change such record date or establish a different record date for the Stockholder Meeting without the prior written consent of the
Investors, unless required to do so by Applicable Law or the Company’s bylaws. The Company shall recommend in the Preliminary
Proxy Statement and the Definitive Proxy Statement that the Company stockholders vote in favor of the issuance of the Second
Resulting Shares of Common Stock, the Charter Amendment and the election of the New Directors to the New Board,
and shall use reasonable best efforts to obtain from its stockholders the Company Stockholder Approval. Unless otherwise agreed
by the Investors, the issuance of the Second Resulting Shares of Common Stock, the Charter Amendment and the election of
the New Directors to the New Board shall be the only matters (other than related procedural matters)
that the Company shall propose to be acted on by the stockholders at the Stockholder Meeting.

 

(g)          Rights
Offering. The Company shall cause a registration statement relating to the Rights Offering (the “Registration Statement”)
to be filed as promptly as practical after the date of this Agreement, and shall use its reasonable best efforts to cause the Registration
Statement to become effective as promptly as practicable after the Closing. The Company agrees to respond to any comments or requests
of the SEC, and to file any necessary amendments to the Registration Statement, as promptly as practicable. The Company agrees
to make all such arrangements, to take all such actions and to execute, deliver and file all such agreements, certificates, instruments
and other documents as may be necessary, appropriate or advisable in order to effectuate the Rights Offering and the timely filing
of the Registration Statement and any necessary amendments thereto. Notwithstanding the foregoing, the Company shall not make any
such filings related to the Rights Offering without the prior written consent of the Investors, which consent shall not be unreasonably
withheld or delayed. The Company may withdraw the Registration Statement in the event the Company Stockholder Approval is not obtained.

 

    	 	37	 

     

    

 

(h)          Reasonable
Best Efforts. The Company shall, and shall cause its Affiliates to, use reasonable best efforts to take, or cause to be taken,
all actions, and to do, or cause to be done, and to assist and cooperate with the other Parties in doing, all things necessary,
proper or advisable to consummate and make effective, in the most expeditious manner practicable, the Restructuring Transactions,
including (i) taking of all acts necessary to cause the conditions to the Closing to be satisfied as promptly as practicable, (ii)
ensuring that all steps set forth in Section 2.1 occur as promptly as practicable, (iii) making all filings related
to the Rights Offering with applicable Governmental Authorities, and taking all actions necessary to ensure a timely launch of
the Rights Offering, as promptly as practicable and (iv) making all filings related to the other Restructuring Transactions with
applicable Governmental Authorities as promptly as practicable.

 

(i)          Record
Date. If the Company has set the record date for the Stockholder Meeting by giving notice to the NYSE American but is unable
to rely on such record date for the Stockholder Meeting (whether due to the time involved in receiving and implementing SEC comments
to the Preliminary Proxy Statement or otherwise), the Company shall reset the record date (and shall notify the NYSE American of
such new record date) for the Stockholder Meeting, with the Investors consent. If necessary, the Company, with the Investors’
consent, shall reset the record date for the Stockholder Meeting multiple times and the Company’s board of directors shall
adopt board resolutions or written consents for each such setting, or re-setting of the record date for the Stockholder Meeting.

 

(j)          Access
to Information. From the date hereof until the Closing Date, the Company shall, and shall cause its Subsidiaries to: (i) provide
to the Investors reasonable access to the directors, officers, employees, properties, facilities, books and records of the Company
and its Subsidiaries and (ii) furnish to the Investors information concerning the business, properties, assets, liabilities, Equity
Interests and other aspects of the Company and its Subsidiaries as the Investors may reasonably request.

 

(k)          NYSE
American Listing. As promptly as practicable after the date hereof and prior to the Closing Date, the Company shall cause
the First Resulting Shares of Common Stock to be approved for listing on the NYSE American, subject to official notice of
issuance. As promptly as practicable after the Company Stockholder Approval, the Company shall cause the Private Placement
Shares, the Rights Offering Shares and the Second Resulting Shares of Common Stock to be approved for listing on the NYSE
American, subject to official notice of issuance. The Company shall, and shall cause its Affiliates to, use reasonable best
efforts to take, or cause to be taken, all actions, and to do, or cause to be done, and to assist and cooperate with the
other Parties in doing, all things necessary, proper or advisable to maintain the listing of the Common Stock on the NYSE
American (or, if the Common Stock is delisted on the NYSE American, to cause the Common Stock to be quoted on one or more
over-the-counter interdealer quotation services satisfactory to the Investors immediately following such delisting).

 

    	 	38	 

     

    

 

(l)          D&O
Insurance. The Company shall obtain, at or prior to the Closing, prepaid (or “tail”) directors’ and officers’
liability insurance policies in respect of acts or omissions occurring at or prior to the Closing for six years from the Closing,
covering each existing members of the board of directors of the Company on terms with respect to such coverage and amounts no less
favorable than those of such policies in effect on the date of this Agreement; provided, however, that, without the
prior written consent of the Investors, the Company may not expend therefor in excess of 300% of the amount paid by the Company
for coverage for the most recently completed 12-month period prior to the date of this Agreement.

 

(m)         Charter
Amendment. The Company shall cause the Charter Amendment to become effective at the Closing.

 

(n)         Solicitation
by the Company; Company Recommendation.

 

i.           Notwithstanding
anything to the contrary in this Agreement, at any time and from time to time prior to obtaining the Company Stockholder Approval,
the Company and its representatives shall have the right, without any allegation of breach of this Agreement by the Investors or
the Consenting Noteholders, to (x) initiate, solicit and encourage any inquiry or the making of any proposal or offer that constitutes
an Acquisition Proposal, including by making available information (including non-public information and data) regarding, and affording
access to the business, properties, assets, books, records and personnel of, the Company or its Subsidiaries pursuant to a customary
confidentiality agreement and (y) engage in, enter into, continue or otherwise participate in any discussions or negotiations with
any Persons or group of Persons with respect to any Acquisition Proposals and cooperate with or assist or participate in or facilitate
any such inquiries, proposals, discussions or negotiations or any effort or attempt to make any Acquisition Proposals; provided
that, in each case ((x) and (y)), the Company shall make available to the Investors substantially concurrently with providing to
any such other Person (and in any event within 48 hours) any non-public information concerning the Company or its Subsidiaries
that was not previously provided to the Investors. No later than two (2) Business Days after receipt of an Acquisition Proposal,
the Company shall notify the Investors and the Consenting Noteholders in writing of the identity of each Person or group of Persons
from whom the Company, or its applicable Subsidiary, received a written Acquisition Proposal and provide to the Investors
and, upon request, the Consenting Noteholders (A) a copy of any Acquisition Proposal made in writing and any other written terms
or proposals provided to the Company or any of its Subsidiaries and (B) a written summary of the material terms of any Acquisition
Proposal not made in writing (including any terms proposed orally or supplementally).

 

    	 	39	 

     

    

 

ii.         The
Company shall promptly (and in any event within 48 hours of receipt thereof), notify the Investors both orally and in writing of
the receipt of any Acquisition Proposal or any inquiries that would reasonably be expected to result in an Acquisition Proposal,
or any negotiations sought to be initiated or resumed with, either the Company, one of its Subsidiaries or any of their respective
representatives concerning an Acquisition Proposal, which notice shall include (x) a copy of any Acquisition Proposal (including
any financing commitments) made in writing and other written terms or proposals provided to the Company or any of its Subsidiaries
and (y) a written summary of the material terms of any Acquisition Proposal not made in writing
or any such inquiry or request. The Company shall keep the Investors reasonably informed on a prompt basis (and in any event within
48 hours) of any material developments, material discussions or material negotiations regarding (i) any Acquisition Proposal, inquiry
that would reasonably be expected to result in an Acquisition Proposal, or request for non-public information from any third party,
or (ii) any Acquisition Proposal that is or would reasonably be expected to lead to a Superior Proposal. None of the Company or
any of its Subsidiaries shall, after the date of this Agreement, enter into any agreement that would prohibit them from providing
such information or the information contemplated by the last sentence of Section 6.1(n)(i) to the Investors and, as applicable,
the Consenting Noteholders.

 

iii.         If (x) the Company receives an Acquisition Proposal and complies in all material respects with its disclosure obligations to the
Investors under Section 6.1(n)(i) and (y) the Company’s board of directors and the Special Strategic Committee of
the Company’s board of directors determine in good faith after consultation with outside counsel that such Acquisition Proposal
constitutes a Superior Proposal, the Company’s board of directors and the Special Strategic Committee of the Company’s
board of directors may authorize, adopt, or approve such Superior Proposal and cause or permit the Company to enter into an acquisition
agreement, merger agreement or similar definitive agreement with respect to such Superior Proposal (an “Alternative Acquisition
Agreement”). Any Alternative Acquisition Agreement must (A) provide for the full repayment of all Loans and satisfaction
of all Obligations (as such terms are defined in the Existing Credit Agreement) of the Company and its Subsidiaries under the Existing
Credit Agreement and the Loan Documents (as such term is defined in the Existing Credit Agreement), including payment of all accrued
and unpaid interest, repayment and prepayment premiums and costs and expenses incurred by the Investors under the Existing Credit
Agreement and the Loan Documents, (B) provide for the repurchase at par by the Company of all 2015 Notes, 2016 Notes and 2017 Notes
held by the Investors, including all accrued and unpaid interest thereon, and (C) provide for transactions that can reasonably
be expected to close no later than one month following execution thereof.

 

Section 6.2.          Covenants
of the Non-Company Parties.

 

(a)          Restrictions
on Transferring the Convertible Notes. For the period commencing as of the date each Party executes this Agreement until the
earlier to occur of the termination of this Agreement pursuant to the terms hereof or the Closing Date (such period, the “Restricted Period”),
no Investor or Consenting Noteholder shall sell, transfer or assign any Convertible Notes. Except as expressly provided in the
preceding sentence, this Agreement shall in no way restrict the right or ability of any Investor or Consenting Noteholder to sell,
transfer or assign any Equity Interests.

 

    	 	40	 

     

    

 

(b)          2017
Notes Conversions. Prior to the record date for the Stockholder Meeting, (i) the Investors shall execute the Notes Documents
Amendments described in Sections 2.1(d)(i) and (ii); provided that the Investors shall not be in breach of
this Section 6.2(b) for any failure or delay to execute the Notes Documents Amendments resulting from the Company’s
actions or omissions; and (ii) the Company shall submit all necessary filings and documents with the NYSE American for the listing
of the First Resulting Shares of Common Stock on the NYSE American. Prior to the record date of the Stockholder Meeting, (i) the
Investors shall execute the 2017 Notes Conversions and (ii) the Company shall issue the First Resulting Shares of Common Stock
to the Investors and have the First Resulting Shares of Common Stock listed on the NYSE American.

 

Section 6.3.          Mutual
Covenants of the Parties. Subject to the terms and conditions hereof and for so long as this Agreement has not been terminated
in accordance with the terms hereof, each of the Parties, as applicable, agrees to comply with the following covenants:

 

(a)          Each
of the Parties hereby covenants and agrees to support and use commercially reasonable efforts to facilitate consummation of each
of the Restructuring Transactions, as may be applicable, pursuant to the terms set forth in this Agreement and the Restructuring
Documents, and take all reasonable actions necessary or reasonably requested by the Company or the Investors to facilitate consummation
of each of the Restructuring Transactions, as may be applicable, including voting in favor of, or executing written consents approving,
any actions necessary to effectuate the foregoing.

 

(b)          Each
of the Parties hereby covenants and agrees not to, in its capacity as a Party, or in any other capacity, in any material respect,
object to, delay, impede, or take any other action to interfere with the Restructuring Transactions.

 

Article
VII

CONDITIONS TO CLOSING

 

Section 7.1.          Each
Party’s Conditions to Closing. The respective obligations of each Party to effect the Restructuring Transactions and
the other transactions contemplated hereby is subject to the satisfaction or waiver on or prior to the Closing Date of the following
conditions:

 

(a)          Regulatory
Approvals. All governmental and regulatory approvals and consents necessary to effectuate the Restructuring Transactions and
any other transactions contemplated hereby under any Applicable Law shall have been obtained.

 

(b)          No
Injunctions or Legal Restraints. No temporary restraining order, preliminary or permanent injunction or other Order issued
by any court of competent jurisdiction or other legal restraint or prohibition (collectively, “Legal Restraints”)
which has the effect of preventing the consummation of the Restructuring Transactions and the other transactions contemplated in
this Agreement or in the Restructuring Documents shall be in effect.

 

(c)          Restructuring
Documents and Consents. All Restructuring Documents shall have been (i) tendered for delivery, (ii) effected or executed
and (iii) to the extent required, filed with the applicable Governmental Authority in accordance with Applicable Laws. All
conditions precedent to the Restructuring Documents shall have been satisfied or waived pursuant to the terms of the Restructuring
Documents. All actions necessary to implement the Restructuring Transactions shall have been taken by the required Parties in accordance
with Applicable Laws.

 

    	 	41	 

     

    

 

Section 7.2.          Company’s
Conditions to Closing. The obligations of the Company to effect the Restructuring Transactions and the other transactions contemplated
hereby are further subject to the satisfaction or waiver on or prior to the Closing Date of the following conditions:

 

(a)          Representations
and Warranties. The representations and warranties of the Parties (other than the Company) contained herein that are qualified
as to materiality shall be true and correct, and the representations and warranties of the other Parties contained herein that
are not so qualified shall be true and correct in all material respects, in each case, as of the Closing Date as if made as of
such date, except that the accuracy of representations and warranties that by their terms speak as of a specified date will be
determined as of such date.

 

(b)          Performance
of Obligations. Each of the Parties (other than the Company) shall have performed in all material respects all obligations
required to be performed by it under this Agreement at or prior to the Closing Date.

 

(c)          Waiver
of Conditions. The Company may waive any of the conditions to the Closing set forth above in this Section 7.2 at any
time; provided, that in the event that any such waiver has the effect of adversely impacting the rights of the Consenting
Noteholders under Article IX, Article X or Section 6.1(c), the prior consent of a majority of the Consenting
Noteholders shall be required. The failure of the Consenting Noteholders to exercise any of the foregoing rights shall not be deemed
a waiver of any other rights, and each such right shall be deemed an ongoing right, which may be asserted at any time.

 

Section 7.3.          Investors’
Conditions to Closing.

 

(a)          General.
Each Investor’s obligation hereunder to consummate the Restructuring Transactions is subject to the satisfaction or express
waiver by it prior to or at the Closing of each of the conditions specified below in this Section 7.3.

 

(b)          Representations
and Warranties of the Company. Each of the representations and warranties of the Company that is qualified as to materiality
or Material Adverse Effect shall be true and correct, and each of the representations and warranties of the Company in this Agreement
that is not so qualified shall be true and correct in all material respects, in each case, on and as of the Closing Date as if
made as of such date (unless expressly stated to relate to a specific earlier date, in which case each of such representations
and warranties that is qualified as to materiality or Material Adverse Effect shall be true and correct as of such earlier date,
and each of such representations and warranties that is not so qualified shall be true and correct, in all material respects as
of such earlier date).

 

(c)          Performance
by the Company; No Default under Other Agreements. The Company and each of its Subsidiaries shall have performed and complied
in all material respects with all agreements and covenants contained in this Agreement and the Restructuring Documents required
to be performed or complied with by them prior to or at the Closing (or such compliance shall have been waived on terms and conditions
reasonably satisfactory to each Investor) and after giving effect to the Restructuring Transactions, no default or event of default
shall have occurred and be continuing under this Agreement or any of the Restructuring Documents.

 

    	 	42	 

     

    

 

(d)          Material
Adverse Effect. Since the date of this Agreement, there shall not have been any Material Adverse Effect.

 

(e)          Representations
and Warranties of the Consenting Noteholders. Each of the representations and warranties of the Consenting Noteholders in this
Agreement and in each of the Restructuring Documents shall be true and correct in all material respects, in each case, on and as
of the Closing Date as if made as of such date (unless expressly stated to relate to a specific earlier date, in which case each
of such representations and warranties shall be true and correct, in all material respects as of such earlier date).

 

(f)          Performance
by the Consenting Noteholders. Each of the Consenting Noteholders shall have performed and complied in all material respects
with all agreements and covenants contained in this Agreement and the Restructuring Documents required to be performed or complied
with by them prior to or at the Closing (or such compliance shall have been waived on terms and conditions reasonably satisfactory
to each Investor).

 

(g)          Closing
Certificate. The Company shall have furnished a certificate, addressed to each Investor, signed by the chief executive officer
and the chief restructuring officer of the Company, to the effect that the closing conditions with respect to the Company set forth
in paragraphs (b) through (d) of this Section 7.3 have been satisfied.

 

Section 7.4.          Consenting
Noteholders’ Conditions to Closing. The obligations of each Consenting Noteholder with respect to the Restructuring Transactions
and the other transactions contemplated hereby are further subject to the satisfaction or waiver on or prior to the Closing Date
of the following conditions:

 

(a)          Performance
by the Other Parties. Each of the Parties (other than the Consenting Noteholders) shall have performed and complied in all
material respects with the agreements, covenants and obligations under this Agreement to the extent they affect the rights of the
Consenting Noteholders under this Agreement.

 

(b)          Material
Adverse Effect. Since the date of this Agreement, there shall not have been any Material Adverse Effect.

 

(c)          Closing
Certificate. The Company shall have furnished a certificate, addressed to each Consenting Noteholder, signed by the chief executive
officer and the chief restructuring officer of the Company, to the effect that the closing conditions with respect to the Company
set forth in paragraphs (a) through (b) of this Section 7.4 have been satisfied.

 

Section 7.5.          Frustration
of Closing Conditions. None of the Parties hereto may rely on the failure of any condition set forth in this Article VII,
as the case may be, to be satisfied if such failure was caused by such Party’s failure to comply with the terms of this Agreement.

 

Section 7.6.          NYSE
American Listing. Notwithstanding anything to the contrary in this Agreement, the Parties acknowledge and agree that the Company’s
continued listing with the NYSE American shall not be a condition to Closing for any Party; provided that, in the event
that the Common Stock is not then listed with the NYSE American, it is quoted on one or more over-the-counter interdealer quotation
services satisfactory to the Investors immediately following such delisting.

 

    	 	43	 

     

    

 

Article
VIII

TERMINATION

 

Section 8.1.         Termination.
This Agreement may be terminated, and the Restructuring Transactions and the other transactions contemplated hereby may be abandoned,
at any time prior to the Closing Date:

 

(a)          by
written consent of the Company and the Investors;

 

(b)          by
either the Investors, on the one hand, or the Company on the other hand, or (solely with respect to its obligations under this
Agreement) by any Consenting Noteholder, if the Closing shall not have been consummated by May 15, 2018, for any reasons; provided,
however, that the right to terminate this Agreement under this Section 8.1(b) shall not be available to any Party
if the failure of such Party to perform any of its obligations under this Agreement has been a principal cause of or resulted in
the failure of the Closing to be consummated on or before such date;

 

(c)          by
either the Investors, on the one hand, or the Company, on the other hand, or (solely with respect to its obligations under this
Agreement) by any Consenting Noteholder, if any Legal Restraints having the effect set forth in Section 7.1(b) shall be
in effect and shall have become final and nonappealable;

 

(d)          by
the Investors or (solely with respect to its obligations under this Agreement) by any Consenting Noteholder, if the Company Stockholder
Approval shall not have been obtained at the Stockholder Meeting, as adjourned or postponed from time to time;

 

(e)          by
the Investors if any of the Company or the Consenting Noteholders shall have breached in any material respect any of its representations,
warranties, covenants or other agreements contained in this Agreement or the Restructuring Documents, which breach or failure to
perform (i) would give rise to the failure of a condition set forth in Section 7.3, and (ii) has not been or is incapable
of being cured by the Company or the Consenting Noteholders, as applicable, within ten (10) days after its receipt of written notice
thereof from the Investors;

 

(f)          by
the Company, if the Investors or the Consenting Noteholders have breached in any material respect any of their respective representations,
warranties, covenants or other agreements contained in this Agreement, which breach or failure to perform (i) would give rise to
the failure of a condition set forth in Section 7.2, and (ii) has not been or is incapable of being cured by the applicable
Investor or Consenting Noteholder within ten (10) days after receipt of written notice thereof from the Company;

 

(g)          solely
with respect to its obligations under this Agreement, by any Consenting Noteholder, if any of the Company or the Investors shall
have breached in any material respect any of its representations, warranties, covenants or other agreements contained in this Agreement,
which breach or failure to perform (i) would give rise to the failure of a condition set forth in Section 7.4, and (ii)
has not been or is incapable of being cured by the Company or the Investors, as applicable, within ten (10) days after its receipt
of written notice thereof from such Consenting Noteholder; or

 

    	 	44	 

     

    

 

(h)          by
the Company, at any time prior to the Stockholder Meeting, if (i) the Company’s board of directors and the Special Strategic
Committee of the Company’s board of directors determine that an Acquisition Proposal constitutes a Superior Proposal and
authorizes the Company, subject to complying in all material respects with the terms of Section 6.1, to enter into an Alternative
Acquisition Agreement, (ii) concurrently with or immediately following the termination of this Agreement, the Company, subject
to complying in all material respects with the terms of Section 6.1, enters into such an Alternative Acquisition Agreement,
(iii) prior to or concurrently with such termination, the Company reimburses the Investors for any and all fees and expenses (including
attorney’s fees and expense reimbursement) incurred by the Investors with respect to the negotiation, execution, delivery
and performance of this Agreement, the Restructuring Documents and any Restructuring Transactions or other transactions contemplated
hereby which have been completed up until such date and (iv) the Alternative Acquisition Agreement meets the requirements set forth
in the last sentence of Section 6.1(n)(iii); provided, however, that no termination may be made pursuant to
this Section 8.1(g) until after at least three (3) Business Days following the Investors’ receipt of written notice
from the Company advising the Investors that the Company’s board of directors and the Special Strategic Committee of the
Company’s board of directors intend to take such action, which notice shall include the information with respect to such
Superior Proposal that is specified in Section 6.1(n)(iii).

 

Section 8.2.          Effect
of Termination. In the event of termination of this Agreement as provided in Section 8.1, this Agreement shall forthwith
become void and have no further effect, without any liability or obligation on the part of any Party hereto or any of their respective
officers, directors, managers, partners, members, employees and agents, other than the provisions of Sections 6.1(c), 8.2
and 8.3, Articles IX, Article X and Article XI, which shall survive any such termination, and except
to the extent that such termination results from a material breach by a Party of any of its representations, warranties, covenants
or agreements set forth in this Agreement or any of the Restructuring Documents. Nothing in this Section 8.2 shall relieve
either Party of (x) liability for common law fraud or (y) liability resulting from any willful breaches of this Agreement prior
to the termination hereof.

 

Section 8.3.          Notice
of Termination. Termination of this Agreement by any Party shall be by delivery of a written notice to the other Parties. Such
notice shall state the termination provision in this Agreement that such terminating Party is claiming provides a basis for termination
of this Agreement. Termination of this Agreement pursuant to the provisions of Section 8.1 shall be effective upon and as
of the date of delivery of such written notice as determined pursuant to Section 11.2.

 

Section 8.4.          NYSE
American Listing. Notwithstanding anything to the contrary in this Agreement, the Parties acknowledge and agree that no party
to this Agreement shall have a right to terminate this Agreement solely upon the occurrence of the Company being delisted from
the NYSE American; provided that the Company shall have used its reasonable best efforts to cause the Common Stock to be
quoted on one or more over-the-counter interdealer quotation services satisfactory to the Investors immediately following such
delisting.

 

    	 	45	 

     

    

 

Article
IX

INDEMNIFICATION

 

Section 9.1.          Indemnification.
Except as prohibited by Applicable Law, the Company shall indemnify and hold harmless each of the Indemnified Parties, for all
costs, expenses, loss, damage or liability incurred or suffered by any such Indemnified Party arising from or related in any way
to any and all causes of action whether known or unknown, whether for tort, contract, violations of federal or state securities
laws or otherwise, including any claims or causes of action, whether direct or derivative, liquidated or unliquidated, fixed or
contingent, disputed or undisputed, matured or unmatured, known or unknown, foreseen or unforeseen, asserted or unasserted (collectively,
“Losses”), to the extent such Losses are based in whole or in part upon any act or omission, transaction or
other occurrence or circumstances arising from or related in any way to the Company, the Restructuring Transactions, this Agreement
and the Restructuring Documents, including those arising from or related in any way to: (i) any action or omission of any
such Indemnified Party in such Indemnified Party’s capacity as director, officer, manager, employee, attorney, other professional,
and agent to the Company; (ii) any disclosure made or not made by any Indemnified Party to any current or former holder of
any such indebtedness of or any such Equity Interest in the Company; and (iii) any action taken or not taken in connection
with the negotiations, formulation, solicitation or preparation of documents, agreements or instruments prepared in connection
with, or in furtherance of, the Restructuring Transactions and the other transactions contemplated hereunder; provided that
the foregoing indemnity shall not apply to any Losses arising from or relating to any act or omission of an Indemnified Party that
constitutes fraud, willful misconduct or gross negligence. In the event that any such Indemnified Party becomes involved in any
action, proceeding or investigation brought by or against any Indemnified Party, as a result of matters to which the foregoing
“Indemnification” may relate, the Indemnified Party shall promptly notify the Reorganized Company and the Reorganized
Company shall assume the defense thereof, including the employment of counsel reasonably satisfactory to the Indemnified Party,
and shall assume the payment of all fees and expenses; provided that the failure of any Indemnified Party to notify the
Reorganized Company in accordance with the foregoing shall not relieve the Reorganized Company of its obligations except to the
extent that the Reorganized Company is materially prejudiced by such failure to notify. The Reorganized Company shall not be liable
for any settlement of any claim or action effected without its written consent, which consent shall not be unreasonably withheld
or delayed, but if settled with such consent, or if there be a final judgment for the plaintiff, the Reorganized Company shall
indemnify and hold harmless such Indemnified Party from and against any Losses (to the extent stated above) by reason of such settlement
or judgment.

 

    	 	46	 

     

    

 

Article
X

MUTUAL RELEASES

 

Section
10.1.         Mutual Releases.

 

(a)          AS
OF THE CLOSING DATE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, EACH OF THE PARTIES (IN SUCH CAPACITY, THE “RELEASING
PARTIES”) SHALL CONCLUSIVELY, ABSOLUTELY, UNCONDITIONALLY, IRREVOCABLY AND FOREVER RELEASE THE OTHER PARTIES, THE REORGANIZED
COMPANY AND THEIR RESPECTIVE AFFILIATES, SUCCESSORS AND ASSIGNS (THE “RELEASED PARTIES”) FROM ANY AND ALL CLAIMS,
EQUITY INTERESTS, OBLIGATIONS, RIGHTS, SUITS, DAMAGES, CAUSES OF ACTION, REMEDIES, AND LIABILITIES WHATSOEVER, INCLUDING ANY DERIVATIVE
CLAIMS ASSERTED ON BEHALF OF THE COMPANY OR THE REORGANIZED COMPANY, WHETHER KNOWN OR UNKNOWN, FORESEEN OR UNFORESEEN, EXISTING
OR HEREAFTER ARISING, IN LAW, EQUITY OR OTHERWISE, THAT SUCH PARTY WOULD HAVE BEEN LEGALLY ENTITLED TO ASSERT (WHETHER INDIVIDUALLY
OR COLLECTIVELY), BASED ON OR RELATING TO, OR IN ANY MANNER ARISING FROM, IN WHOLE OR IN PART, THE RESTRUCTURING TRANSACTIONS,
THE PURCHASE, SALE OR RESCISSION OF THE PURCHASE OR SALE, OF ANY SECURITY OF THE COMPANY OR THE REORGANIZED COMPANY, THE SUBJECT
MATTER OF, OR THE TRANSACTIONS OR EVENTS GIVING RISE TO, ANY CLAIM OR EQUITY INTEREST THAT IS TREATED IN THIS AGREEMENT OR THE
AGREEMENTS CONTEMPLATED BY THIS AGREEMENT, THE RESTRUCTURING OF DEBT OF THE COMPANY OR EQUITY INTERESTS PRIOR TO OR DURING THE
RESTRUCTURING TRANSACTIONS, THE NEGOTIATION, FORMULATION, OR PREPARATION OF THIS AGREEMENT, THE RESTRUCTURING DOCUMENTS OR OTHER
DOCUMENTS OR ANY OTHER ACT OR OMISSION, TRANSACTION, AGREEMENT, EVENT, OR OTHER OCCURRENCE RELATED TO ANY OF THE FOREGOING AND
TAKING PLACE ON OR BEFORE THE CLOSING DATE; PROVIDED, HOWEVER, THAT THE RELEASES PURSUANT TO THIS SECTION 10.1
SHALL NOT APPLY (I) WITH RESPECT TO A RELEASED PARTY, TO ANY CLAIMS OR LIABILITIES ARISING OUT OF OR RELATING TO ANY ACT OR OMISSION
OF SUCH RELEASED PARTY THAT CONSTITUTES FRAUD, WILLFUL MISCONDUCT, GROSS NEGLIGENCE, OR A CRIMINAL ACT TO THE EXTENT SUCH ACT OR
OMISSION IS DETERMINED BY A FINAL ORDER TO HAVE CONSTITUTED FRAUD, WILLFUL MISCONDUCT OR GROSS NEGLIGENCE OR (II) TO ANY CONTRACT,
AGREEMENT, ARRANGEMENT OR UNDERSTANDING, WRITTEN OR ORAL, BETWEEN ANY ONE OR MORE OF THE COMPANY, THE REORGANIZED COMPANY AND/OR
THE RELEASED PARTIES, ON ONE HAND, AND ANY ONE OR MORE OF THE RELEASING PARTIES, ON THE OTHER HAND, TO THE EXTENT NOT RELATED TO
THE RESTRUCTURING TRANSACTIONS OR ANY CLAIM OR EQUITY INTEREST THAT IS THE SUBJECT OF ANY ACTION OR TREATMENT UNDER, OR PURSUANT
TO ANY PROVISION OF, THIS AGREEMENT; PROVIDED, HOWEVER, THAT THIS CLAUSE (II) SHALL NOT IN ANY WAY LIMIT OR AFFECT
THE RELEASES GRANTED TO THE INVESTORS AND THE CONSENTING NOTEHOLDERS OR, IN THEIR CAPACITIES AS SUCH, THEIR DIRECTORS, OFFICERS,
SHAREHOLDERS, PARTNERS, MEMBERS, EMPLOYEES, AGENTS, AFFILIATES, PARENTS, SUBSIDIARIES, PREDECESSORS, SUCCESSORS, HEIRS, EXECUTORS
AND ASSIGNEES, ATTORNEYS, FINANCIAL ADVISORS, INVESTMENT BANKERS, ACCOUNTANTS AND OTHER PROFESSIONALS OR REPRESENTATIVES. 

 

    	 	47	 

     

    

 

(b)          NOTWITHSTANDING
ANYTHING TO THE CONTRARY IN THE FOREGOING, NOTHING HEREIN SHALL BE DEEMED TO AND NOTHING HEREIN SHALL RELEASE ANY POST-CLOSING
OBLIGATIONS OF ANY PARTY UNDER THIS AGREEMENT (INCLUDING UNDER ARTICLE IX, SECTION 6.3(C) OR SECTION 11.3
OF THIS AGREEMENT), THE RESTRUCTURING DOCUMENTS OR ANY DOCUMENT, INSTRUMENT OR AGREEMENT (INCLUDING THOSE SET FORTH IN THE RESTRUCTURING
DOCUMENTS) EXECUTED TO IMPLEMENT THE RESTRUCTURING TRANSACTIONS AND THIS AGREEMENT.

 

(c)          NOTWITHSTANDING
ANYTHING TO THE CONTRARY IN THE FOREGOING, NOTHING HEREIN SHALL BE DEEMED TO AND NOTHING HEREIN SHALL RELEASE ANY CLAIM ARISING
UNDER (I) THE EXISTING CREDIT AGREEMENT OR THE LOAN DOCUMENTS (AS SUCH TERM IS DEFINED IN THE EXISTING CREDIT AGREEMENT), (II)
THE INDENTURE, (III) THE 2016 ORBIMED CONVERTIBLE PROMISSORY NOTE AND (IV) THE 2016 ROS CONVERTIBLE PROMISSORY NOTE.

 

Article
XI

MISCELLANEOUS

 

Section 11.1.        Waiver
of Punitive Damages. Except in respect of any action based on fraud, gross negligence or willful misconduct, to the extent
permitted by Applicable Law, none of the Parties hereto shall assert, and each hereby waives, any claim against the other Parties
(including their respective Affiliates, partners, stockholders, members, directors, officers, agents, employees and controlling
Persons), on any theory of liability for special, indirect, consequential or punitive damages (as opposed to direct or actual damages)
arising out of, in connection with, or as a result of, this Agreement or any agreement or instrument contemplated hereby, the Restructuring
Transactions, this Agreement or any Restructuring Document.

 

Section 11.2.        Notices.
Except as otherwise expressly provided herein, all notices and other communications shall have been duly given and shall be effective
(i) when delivered, including via email (except that if the day of delivery is not a Business Day, then the next Business
Day), (ii) when transmitted via telecopy (or other facsimile device) on a Business Day during normal business hours to the
number set out below if the sender on the same day sends a confirming copy of such notice by a recognized overnight delivery service
(charges prepaid), (iii) the day following the day (except that if such day is not a Business Day, then the next Business
Day) on which the same has been delivered prepaid to a reputable national overnight air courier service or (iv) the third
Business Day following the day on which the same is sent by certified or registered mail, postage prepaid, in each case to the
respective parties at the address set forth below, or at such other address as such Party may specify by written notice to the
other Party:

 

i.           if
to the Investors, to: the Investors, c/o OrbiMed Advisors LLC, 601 Lexington Avenue, 54th Floor, New York, NY 10022, Attention:
Matthew Rizzo, Partner, and Michael Eggenberg, Managing Director, with a copy (which copy shall not constitute notice) to: Covington
& Burling LLP, 620 Eighth Avenue, The New York Times Building, New York, NY 10018, Attention: Peter Schwartz, Esq.

 

    	 	48	 

     

    

 

ii.          if
to any Consenting Noteholder, to such Consenting Noteholder at the address as such Consenting Noteholder shall have specified to
the Company or the Reorganized Company, as applicable, on the signature pages to this Agreement or otherwise in writing;

 

iii.         if
to the Company, to: Xtant Medical Holdings, Inc., 600 Cruiser Lane, Belgrade, MT 59714, Attention: Carl O’Connell, Chief
Executive Officer, with a copy (which copy shall not constitute notice) to: Ballard Spahr LLP, 1 East Washington Street, Phoenix,
AZ 85004 Attention: Karen McConnell Esq.; and

 

iv.         if
to the Reorganized Company, to: Xtant Medical Holdings, Inc., 600 Cruiser Lane, Belgrade, MT 59714 Attention: Carl O’Connell,
Chief Executive Officer.

 

Section 11.3.        Assignment;
Successors. Neither this Agreement nor any of the rights, interests or obligations under this Agreement may be assigned or
delegated, in whole or in part, by operation of law or otherwise, by any Party without the prior written consent of the other Parties,
and any such assignment without such prior written consent shall be null and void; provided, however, that no assignment
shall limit the assignor’s obligations hereunder. Subject to the preceding sentence, this Agreement (and the rights, duties
and obligations of the Parties to this Agreement) will be binding upon, inure to the benefit of, and be enforceable by, the Parties
and their respective successors and assigns.

 

Section 11.4.        No
Waiver of Remedies; Remedies Cumulative. No failure or delay on the part of any Party in exercising any right, power or privilege
hereunder and no course of dealing between the Company, its Subsidiaries and any other Party shall operate as a waiver thereof;
nor shall any single or partial exercise of any right, power or privilege hereunder preclude any other or further exercise thereof
or the exercise of any other right, power or privilege hereunder. The rights and remedies provided herein are cumulative and not
exclusive of any rights or remedies that the Parties would otherwise have. No notice to or demand on the Company or its Subsidiaries
or the Reorganized Company in any case shall entitle the Company or its Subsidiaries or the Reorganized Company to any other or
further notice or demand in similar or other circumstances or constitute a waiver of the rights of the other Parties hereto to
any other or further action in any circumstances without notice or demand.

 

Section 11.5.       Counterpart.
This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed an original,
but all of which shall constitute one and the same instrument. It shall not be necessary in making proof of this Agreement to produce
or account for more than one such counterpart. Each counterpart may consist of a number of copies hereof, each signed by less than
all, but together signed by all, of the parties hereto. Delivery of an executed counterpart of this Agreement by facsimile or other
electronic means shall be effective as delivery of a manually executed counterpart thereof.

 

Section 11.6.        Headings.
The headings of the sections and subsections hereof are provided for convenience only and shall not in any way affect the meaning
or construction of any provision of this Agreement.

 

    	 	49	 

     

    

 

Section 11.7.         Governing
Law; Submission to Jurisdiction; Venue.

 

(a)          THIS
AGREEMENT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, AND THE RIGHTS OF THE PARTIES SHALL BE GOVERNED BY, THE LAW OF THE
STATE OF NEW YORK, EXCLUDING CHOICE-OF-LAW PRINCIPLES OF THE LAW OF SUCH STATE THAT WOULD REQUIRE THE APPLICATION OF THE LAWS OF
A JURISDICTION OTHER THAN SUCH STATE.

 

(b)          If
any action, proceeding or litigation shall be brought in order to enforce any right or remedy under this Agreement, each Party
hereby consents and will submit, and will cause each of their respective Subsidiaries to submit, to the jurisdiction of any state
or federal court of competent jurisdiction sitting in the State of New York, borough of Manhattan, on the date of this Agreement.
Each Party hereby irrevocably waives, and will cause each of their respective Subsidiaries to waive, any objection, including,
but not limited to, any objection to the laying of venue or based on the grounds of forum non conveniens, which they may now or
hereafter have to the bringing of any such action, proceeding or litigation in such jurisdiction. Each Party further agrees that
they shall not, and shall cause each of their respective Subsidiaries not to, bring any action, proceeding or litigation arising
out of this Agreement in any state or federal court other than any state or federal court of competent jurisdiction sitting within
the area comprising the Southern District of New York on the date of this Agreement.

 

(c)          Each
Party irrevocably consents, and will cause each of their respective Subsidiaries to consent, to the service of process of any of
the applicable aforementioned courts in any such action, proceeding or litigation by the mailing of copies thereof by registered
or certified mail, postage prepaid, to the address set forth in Section 11.2, such service to become effective thirty (30)
days after such mailing.

 

(d)          EACH
PARTY HERETO HEREBY WAIVES, AND WILL CAUSE EACH OF THEIR RESPECTIVE SUBSIDIARIES TO WAIVE, ANY AND ALL RIGHTS ANY OF THEM MAY HAVE
TO A TRIAL BY JURY IN RESPECT OF ANY ACTION, PROCEEDING OR LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION
WITH, THIS AGREEMENT.

 

Section 11.8.       Severability.
If any provision of this Agreement becomes or is determined by a court of competent jurisdiction to be illegal, invalid, unenforceable
or void, portions of such provision, or such provision in its entirety, to the extent necessary, shall be severed from this Agreement
and the remaining provisions (or portion of the provision) shall remain in full force and effect and shall be construed without
giving effect to the illegal, invalid, unenforceable or void provisions (or portions thereof).

 

Section 11.9.        Entirety.
This Agreement together with the Restructuring Documents represents the entire agreement of the parties hereto and thereto, and
supersedes all previous and contemporaneous negotiations, promises, covenants, understandings, agreements and representations,
oral or written, if any, on such subjects or relating to this Agreement, the Restructuring Documents or the transactions contemplated
herein or therein, all of which have become merged and integrated into this Agreement. All Schedules and Exhibits attached to this
Agreement constitute a part of this Agreement and are incorporated herein for all purposes.

 

    	 	50	 

     

    

 

Section 11.10.      No
Third Party Beneficiaries. Notwithstanding anything contained in this Agreement to the contrary, nothing in this Agreement,
expressed or implied, is intended to confer on any Person other than the Parties to this Agreement any rights, remedies, obligations
or liabilities under or by reason of this Agreement, and no Person that is not a party to this Agreement (including any partner,
member, shareholder, director, officer, employee or other beneficial owner of any party, in its own capacity as such or in bringing
a derivative action on behalf of a party) shall have any standing as third-party beneficiary with respect to this Agreement or
the transactions contemplated by this Agreement.

 

Section 11.11.      Amendments
and Waivers of Terms. Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived
(either generally or in a particular instance and either retroactively or prospectively), only if such amendment or waiver is in
writing and signed, in the case of an amendment, by the Company and the Investors or, in the case of a waiver, by the party against
whom the waiver is to be effective; provided that the Company and the Investors shall not make any changes to this Agreement
that adversely affect the rights of the Consenting Noteholders under Article IX, Article X, Section 6.1(c),
or that decreases the aggregate amount of the Private Placement under Section 2.1(f)(vi) of this Agreement, without the
consent of a majority of the Consenting Noteholders; provided, further, that if a proposed amendment would disproportionately
affect the rights of the Consenting Noteholders, as compared to the Investors, the consent of a majority of the Consenting Holders
shall be required for such amendment; provided, further, that if a proposed amendment would adversely affect the
rights of a single Consenting Noteholder, or would disproportionately affect the rights of such single Consenting Noteholder, as
compared to the Investors or any other Consenting Noteholder, the consent of such Consenting Noteholder shall be required for the
amendment.

 

Section 11.12.      Construction.
Each covenant contained herein shall be construed (absent express provision to the contrary) as being independent of each other
covenant contained herein, so that compliance with any one covenant shall not (absent such an express contrary provision) be deemed
to excuse compliance with any other covenant. Where any provision herein refers to action to be taken by any Person, or which such
Person is prohibited from taking, such provision shall be applicable whether such action is taken directly or indirectly by such
Person, whether or not expressly specified in such provision.

 

Section 11.13.     Survival.
The representations and warranties herein shall survive the Closing and the delivery of any Resulting Shares hereunder. Any certificate
signed by any officer of the Company and delivered to the Investors or the Consenting Noteholders shall be deemed a representation
and warranty by the Company to all other Parties as to the matters covered thereby.

 

    	 	51	 

     

    

 

Section
11.14.      Nature of Consenting Noteholder Obligations. Each of the Parties
agrees and acknowledges that (i) each Consenting Noteholder is entering into this Agreement on behalf of such Consenting Noteholder,
and not on behalf of any other Consenting Noteholder, (ii) the representations, warranties, covenants and other obligations of
each Consenting Noteholder hereunder are several and not joint, such that no Consenting Noteholder shall be liable or otherwise
responsible for any representations, warranties, covenants or other obligations of any other Consenting Noteholder or of
the Investors, or any breach or violation thereof, (iii) the relationship of the Consenting Noteholder
to each other and to the Investors shall not be deemed a partnership, joint venture or similar arrangement and shall not
create a presumption that the Consenting Noteholders are in any way acting in concert or as a group with each other or with the
Investors with respect to the Restructuring Transactions and (iv) there are no commitments among
or between the Consenting Noteholders, arising from or in connection with this Agreement. Each Consenting Noteholder shall
be entitled to independently protect and enforce its rights including, without limitation, the rights arising out of this Agreement
or out of the other Restructuring Documents, and it shall not be necessary for any other Consenting Noteholder or any Investor
to be joined as an additional party in any proceeding for such purpose. It is expressly understood and agreed that each provision
contained in this Agreement and in each other Restructuring Documents is between the Company and/or the Investors, on the one hand,
and a Consenting Noteholder, solely, on the other hand, and not between the Company and/or the Investors, on the one hand, and
the Consenting Noteholders, collectively, on the other hand, and not between and among the Consenting Noteholders. No
prior history, pattern or practice of sharing confidences among or between the Company, the Investors and
the Consenting Noteholders shall in any way affect or negate the foregoing understandings and agreements.

 

Section 11.15.      Reservation
of Rights; Settlement Discussions. Except as expressly provided in this Agreement, nothing contained in this Agreement is intended
to, nor shall it, in any manner, waive, limit, impair or restrict the ability of each Investor and Consenting Noteholder to protect
and preserve its rights, remedies and interest, including any claims that such Investor or Consenting Noteholder may have against
the Company. Without limiting the foregoing: (i) if the Restructuring Transactions are not consummated, or if this Agreement is
terminated for any reason, the Parties hereto fully reserve any and all of their respective rights and remedies under the Existing
Credit Agreement, the Indenture, the 2016 OrbiMed Convertible Promissory Note, the 2016 ROS Convertible Promissory Note and Applicable
Law, except with respect to the provisions of this Agreement that survive termination of this Agreement as set forth in Section 8.2;
(ii) nothing herein shall be deemed an admission of any kind; and (iii) pursuant to Federal Rule of Evidence 408 and any applicable
state rules of evidence, this Agreement and all negotiations relating hereto shall not be admissible into evidence in any action
or proceeding other than an action or proceeding to enforce the terms of this Agreement.

 

[SIGNATURE PAGES FOLLOW]

 

    	 	52	 

     

    

 

IN WITNESS WHEREOF,
each of the parties hereto has caused a counterpart of this Agreement to be duly executed and delivered as of the date first above
written.

 

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

 

[Signature
Page to Restructuring and Exchange Agreement.]

 

    	 	 	 

     

    

 

IN WITNESS WHEREOF,
each of the parties hereto has caused a counterpart of this Agreement to be duly executed and delivered as of the date first above
written.

 

	 	ORBIMED ROYALTY OPPORTUNITIES II, LP 
	 	 
	 	By OrbiMed ROF II LLC,
	 	its General Partner
	 	 
	 	By OrbiMed Advisors LLC,
	 	its Managing Member
	 	 	 
	 	By:	/s/ Samuel D. Isaly
	 	 	Name:	Samuel D. Isaly
	 	 	Title:	Managing Member
	 	 	 
	 	ROS ACQUISITION OFFSHORE LP
	 	 
	 	By OrbiMed Advisors LLC, solely in its
	 	capacity as Investment Manager
	 	 	 
	 	By:	/s/ Samuel D. Isaly
	 	 	Name:	Samuel D. Isaly
	 	 	Title:	Managing Member

 

[Signature
Page to Restructuring and Exchange Agreement.]

 

    	 	 	 

     

    

 

IN WITNESS WHEREOF, each of the parties
hereto has caused a counterpart of this Agreement to be duly executed and delivered as of the date first above written.

  

	 	TELEMETRY SECURITIES, L.L.C.
	 	 	 	 
	 	By:	/s/ Dan Sommers
	 	 	Name:	Dan Sommers
	 	 	Title:	Portfolio Manager
	 	 	 	 	 
	 	Amount of Convertible Notes Held: 	5,500,000

  

[Signature
Page to Restructuring and Exchange Agreement.]

 

    	 	 	 

     

    

 

IN WITNESS WHEREOF, each of the parties hereto has caused a
counterpart of this Agreement to be duly executed and delivered as of the date first above written.

 

	 	BRUCE FUND, INC.
	 	 	 
	 	By:	/s/ R. Jeffrey Bruce
	 	 	Name:	R. Jeffrey Bruce
	 	 	Title:	Vice President, Secretary
	 	 	 	 
	 	Amount of Convertible Notes Held: $2,000,000 face amount

 

[Signature
Page to Restructuring and Exchange Agreement.]

 

    	 	 	 

     

    

 

IN WITNESS WHEREOF, each of the parties
hereto has caused a counterpart of this Agreement to be duly executed and delivered as of the date first above written.

 

	 	PARK WEST INVESTORS MASTER FUND, LIMITED
	 	 
	 	By: Park West Asset Management LLC
	 	Its: Investment Manager
	 	 	 
	 	By:	/s/ Grace Jimenez
	 	 	Name: 	Grace Jimenez
	 	 	Title:	Chief Financial Officer
	 	 	 	 
	 	Amount of Convertible Notes Held: 7,461,227
	 	 	 	 
	 	PARK WEST PARTNERS INTERNATIONAL, LIMITED
	 	 
	 	By: Park West Asset Management LLC
	 	Its: Investment Manager
	 	 	 
	 	By:	/s/ Grace Jimenez
	 	 	Name: 	Grace Jimenez
	 	 	Title:	Chief Financial Officer
	 	 	 	 
	 	Amount of Convertible Notes Held: 1,038,773

 

[Signature
Page to Restructuring and Exchange Agreement.]

 

     

     

    

  

Exhibit A

 

Form of Charter Amendment

 

    	 	 	 

     

    

 

AMENDED AND RESTATED CERTIFICATE OF INCORPORATION

OF

XTANT MEDICAL HOLDINGS, INC.

 

Under Sections 242 and 245

of the

General Corporation Law of the State of
Delaware

 

XTANT MEDICAL HOLDINGS,
INC. (the “Corporation”), a corporation organized and existing under the laws of the State of Delaware, hereby
certifies as follows:

 

FIRST:  The
name of the Corporation is Xtant Medical Holdings, Inc.

 

SECOND:  The
original Certificate of Incorporation of the Corporation was filed with the Secretary of State of the State of Delaware on August
8, 2006, and the original name of the Corporation was K-Kitz, Incorporated. The original certificate of incorporation was amended
by the Restated Certificate of Incorporation filed with the State of the State of Delaware on October 24, 2011.

 

THIRD:  Upon
the filing and effectiveness (the “Effective Time”) pursuant to the General Corporation Law of the State of Delaware
of this Amended and Restated Certificate of Incorporation, each twelve (12) shares of Common Stock of the Corporation issued and
outstanding immediately prior to the Effective Time shall, automatically and without any action on the part of the respective holders
thereof, be combined and converted into one share of Common Stock of the Corporation (the “Reverse Stock Split”). No
fractional shares shall be issued in connection with the Reverse Stock Split. Stockholders who otherwise would be entitled to receive
fractional shares of Common Stock of the Corporation shall be entitled to receive cash (without interest or deduction) from the
Corporation’s transfer agent in lieu of such fractional share interests upon the submission of a transmission letter by a
stockholder holding the shares in book-entry form and, where shares are held in certificated form, upon the surrender of the stockholder’s
certificates that immediately prior to the Effective Time represented shares of Common Stock of the Corporation (“Old Certificates”),
in an amount equal to the product obtained by multiplying (a) the closing price per share of Common Stock of the Corporation as
reported on the NYSE American LLC as of the date of the Effective Time, by (b) the fraction of one share owned by the stockholder.
Each Old Certificate shall, after the Effective Time, represent that number of shares of Common Stock of the Corporation into which
the shares of Common stock represented by the Old Certificate shall have been combined, subject to the elimination of fractional
share interests as described above.

 

FOURTH:  This
Amended and Restated Certificate of Incorporation was duly adopted by the Board of Directors of the Corporation and by the stockholders
of the Corporation, in accordance with Sections 242 and 245 of the General Corporation Law of the State of Delaware and amends
and restates the Corporation’s Certificate of Incorporation as heretofore amended and supplemented.

 

FIFTH:  The
text of the Amended and Restated Certificate of Incorporation of the Corporation, as heretofore amended and supplemented, is hereby
amended and restated in its entirety as follows:

 

    	 	 	 

     

    

 

AMENDED AND RESTATED CERTIFICATE OF INCORPORATION

OF

XTANT MEDICAL HOLDINGS, INC.

 

ARTICLE I: NAME

 

The name of the Corporation is Xtant Medical Holdings, Inc.

 

ARTICLE II: AGENT FOR SERVICE OF PROCESS

 

The address of the registered office of the Corporation in the
State of Delaware is 2711 Centerville Road, Suite 400, in the City of Wilmington, County of New Castle, 19808, and the name of
the registered agent therein and in charge thereof is Corporation Service Company.

 

ARTICLE III: PURPOSE

 

The purpose of the Corporation is to engage
in any lawful act or activity for which corporations may be organized under the General Corporation Law of the State of Delaware.

 

ARTICLE IV: AUTHORIZED STOCK

 

1.       Total
Authorized. The total number of shares of all classes of stock which the Corporation shall have authority to issue:

 

	COMMON STOCK:	Fifty Million (50,000,000) with a par value of $0.000001 (USD)
	 	 
	PREFERRED STOCK:	Ten Million (10,000,000) with a par value of $0.000001 (USD)

 

2.       Increase
or Decrease in Authorized Capital Stock. The Board of Directors is authorized to increase (but not above the total number of
authorized shares of the class) or decrease (but not below the number of shares of any such series then outstanding) the number
of shares of any series (including a series of Preferred Stock), the number of which was fixed by it, subsequent to the issuance
of shares of such series then outstanding, subject to the powers, preferences and rights, and the qualifications, limitations and
restrictions thereof stated in the Amended and Restated Certificate of Incorporation or the resolution of the Board of Directors
originally fixing the number of shares of such series. If the number of shares of any series is so decreased, then the shares constituting
such decrease shall resume the status which they had prior to the adoption of the resolution originally fixing the number of shares
of such series.

 

3.       Rights
of Preferred Stock.

 

3.1.       The
Preferred Stock may be issued from time to time in one or more series.  The Board of Directors is authorized, by resolution
or resolutions, to fix the number of shares of any series of Preferred Stock and to determine the designation, powers, rights,
preferences, qualifications, limitations, privileges and restrictions, if any, of any wholly unissued series of Preferred Stock,
including without limitation, authority to fix by resolution or resolutions the dividend rights, dividend rate, conversion rights,
voting rights, rights and terms of redemption (including sinking fund provisions), redemption price or prices, and liquidation
preferences of any such series, and the number of shares constituting any such series and the designation thereof, or any of the
foregoing.

 

3.2.       Except
as otherwise expressly provided in any Certificate of Designation designating any series of Preferred Stock pursuant to the foregoing
provision, any new series of Preferred Stock may be designated, fixed and determined as provided herein by the Board of Directors
without approval of the holders of Common Stock or the holders of Preferred Stock, or any series thereof, and any such new series
may have powers, preferences and rights, including, without limitation, voting powers, dividend rights, liquidation rights, redemption
rights and conversion rights, senior to, junior to or pari passu with the rights of the Common Stock, the Preferred Stock, or any
future class or series of Preferred Stock or Common Stock.

 

    	 	 	 

     

    

 

4.       Rights
of Common Stock. Each share of Common Stock shall entitle the holder thereof to one (1) vote on each matter submitted to a
vote of holders of Common Stock at a meeting of stockholders.

 

ARTICLE V: AMENDMENT OF BY-LAWS

 

The Board of Directors is expressly authorized
to adopt, amend or repeal the by-laws of the Corporation.

 

ARTICLE VI: MATTERS RELATING TO THE BOARD
OF DIRECTORS

 

1.       Director
Powers. The affairs of the Corporation shall be governed by a Board of Directors. In addition to the powers and authority expressly
conferred upon them by statute or by this Amended and Restated Certificate of Incorporation or the by-laws of the Corporation,
the directors are hereby empowered to exercise all such powers and do all such acts and things as may be exercised or done by the
Corporation.

 

2.       Number
of Director. Subject to the rights (if any) of the holders of any series of Preferred Stock to elect additional directors under
specified circumstances, the number of directors of the Corporation shall be such as from time to time shall be fixed by exclusively
by resolution adopted by a majority of the Board of Directors. Effective on the date that this Amended and Restated Certificate
is filed with the Delaware Secretary of State, and subject to the preceding provisions of this sentence, the initial number of
directors shall be seven (7).

 

3.       Limitations
of Liability. To the fullest extent permitted by law, a director of the Corporation shall not be personally liable to the Corporation
or its stockholders for monetary damages for breach of fiduciary duty as a director; provided, however, that the foregoing shall
not eliminate or limit the liability of a director (i) for any breach of the director’s duty of loyalty to the Corporation
or its stockholders, (ii) for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation
of law, (iii) under Section 174 of the General Corporation Law of the State of Delaware, or (iv) for any transaction from which
the director derived an improper personal benefit.  If the General Corporation Law of the State of Delaware is hereafter
amended to permit further elimination or limitation of the personal liability of directors, then the liability of a director of
the Corporation shall be eliminated or limited to the fullest extent permitted by the General Corporation Law of the State of Delaware
as so amended.

 

4.       Indemnification.
The Corporation shall indemnify to the fullest extent permitted by law any person made or threatened to be made a party to an action
or proceeding, whether criminal, civil, administrative or investigative, by reason of the fact that he, his testator or intestate
is or was a director of the Corporation or any predecessor of the Corporation, or serves or served at any other enterprise as a
director at the request of the Corporation or any predecessor to the Corporation.

 

5.       Change
in Right. Any repeal or modification of Sections 3 or 4 of this ARTICLE VI, or the adoption of any provision of this Amended
and Restated Certificate of Incorporation inconsistent with such Sections 3 or 4 of this ARTICLE VI, by the stockholders of the
Corporation or otherwise shall not adversely affect any right or protection of a director of the Corporation existing at the time
of such repeal, modification or adoption of an inconsistent provision.

 

6.       Vote
by Ballot. Election of directors need not be by ballot unless the by-laws so provide.

 

7.       No
Classified Board. Commencing with the 2018 annual meeting of stockholders, directors shall not be divided into separate classes,
and all directors shall hold office until the next annual meeting of stockholders and until the election and qualification of such
directors’ respective successors, subject to such directors’ earlier death, resignation, disqualification or removal.

 

8.       Removal.
Each director shall hold office until the expiration of such director's term of office and until such director's successor shall
have been elected and qualified, or until such director's earlier resignation, removal or death. A director elected to fill a vacancy
in the manner provided in the Bylaws shall hold office for the remainder of the term of the predecessor director and until such
director's successor has been elected and qualified, or until such director's earlier resignation, removal or death.

 

    	 	 	 

     

    

 

ARTICLE VII: MATTERS RELATING TO STOCKHOLDERS

 

1.       Special
Meetings. Special meetings of the stockholders may be called only by the (i) Board of Directors pursuant to a resolution adopted
by a majority of the Board of Directors; (ii) the chairman of the Board of Directors; or (iii) the chief executive officer of the
Corporation.

 

2.       No Cumulative Voting. No stockholder will be permitted to cumulate votes at any election of directors.

 

3.       Business
Combinations. The Corporation elects not to be governed by Section 203 of the General Corporation Law of the State of Delaware.

 

ARTICLE VIII: GENERAL PROVISIONS

 

1.       Severability.
If any provision of this Amended and Restated Certificate of Incorporation becomes or is declared on any ground by a court of competent
jurisdiction to be illegal, unenforceable or void, portions of such provision, or such provision in its entirety, to the extent
necessary, shall be severed from this Amended and Restated Certificate of Incorporation, and the court will replace such illegal,
void or unenforceable provision of this Amended and Restated Certificate of Incorporation with a valid and enforceable provision
that most accurately reflects the Corporation’s intent, in order to achieve, to the maximum extent possible, the same economic,
business and other purposes of the illegal, void or unenforceable provision. The balance of this Amended and Restated Certificate
of Incorporation shall be enforceable in accordance with its terms.

 

2.       Forum.
Unless the Corporation consents in writing to an alternative forum, the Court of Chancery of the State of Delaware will be the
exclusive forum for (i) any derivative action or proceeding brought on behalf of the Corporation, (ii) any action asserting a claim
of breach of a fiduciary duty owed by any director, officer, or other employee of the Corporation to the Corporation or the Corporation’s
stockholders, (iii) any action asserting a claim arising under any provision of the General Corporation Law of the State of Delaware,
the Amended and Restated Certificate of Incorporation, or the by-laws of the Corporation, or (iv) any action asserting a claim
governed by the internal-affairs doctrine. Any person or entity that acquires any interest in shares of capital stock of the Corporation
will be deemed to have notice of and consented to the provisions of this section.

 

3.       Amendment
of this Amended and Restated Certificate of Incorporation. The Corporation reserves the right to amend or repeal any provision
contained in this Amended and Restated Certificate of Incorporation in the manner prescribed by the laws of the State of Delaware
and all rights conferred upon stockholders are granted subject to this reservation; provided, however, that, notwithstanding any
other provision of this Amended and Restated Certificate of Incorporation or any provision of applicable law that might otherwise
permit a lesser vote or no vote, but in addition to any vote of the holders of any class or series of the capital stock of this
corporation required by applicable law or by this Amended and Restated Certificate of Incorporation, any amendment to or repeal
of Articles V, VI, VII or VIII of this Amended and Restated Certificate of Incorporation (or the adoption of any provision inconsistent
therewith) shall require the affirmative vote of the holders of at least two-thirds of the voting power of the then outstanding
shares of capital stock of the Corporation entitled to vote generally in the election of directors, voting together as a single
class.

 

IN WITNESS WHEREOF, the
Corporation has caused this Amended and Restated Certificate of Incorporation to be signed by its authorized officer as of [ ],
2018.

 

	 	XTANT MEDICAL HOLDINGS, INC.
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

     

     

    

 

Exhibit B

 

Terms of Credit Agreement Amendment

 

		(a)	Through December 31, 2018, the Company will have the option at its sole discretion (i) to pay “payment-in-kind”
(“PIK”) interest at LIBOR plus 12% or (ii) pay cash interest at LIBOR plus 10%.

 

		(b)	Beginning January 1, 2019 through June 30, 2019, the Company will have the option at its sole discretion to either (i) pay
PIK interest at LIBOR plus 15% or (ii) pay cash interest at LIBOR plus 10%.

 

		(c)	Beginning July 1, 2019 through the Maturity Date, the Company will pay cash interest at LIBOR plus 10%.

 

		(d)	All prepayment or repayment fees will be reduced from 9% to 1%.

 

		(e)	The following financial covenants will be revised as follows:

 

		(i)	The Company will be required to maintain a minimum Adjusted EBITDA as follows:

 

	Testing Period	 	Minimum Adjusted EBITDA
	Three quarter period ended September 30, 2018	 	$2.2 million
	 	 	 
	Four quarter period ended December 31, 2018	 	$4.0 million 
	 	 	 
	Four quarter period ended March 31, 2019	 	$5.5 million
	 	 	 
	Four quarter period ended June 30, 2019	 	$7.0 million
	 	 	 
	Four quarter period ended September 30, 2019	 	$8.5 million
	 	 	 
	Four quarter period ended December 31, 2019	 	$10 million
	 	 	 
	Four quarter period ended March 31, 2020	 	The greater of (a) $10 million or (b) 75% of projected Adjusted EBITDA for such period pursuant to projections, based on good faith estimates and assumptions believed by the Borrower to be reasonable at the time made, delivered to the Administrative Agent no later than December 31, 2019

 

     

     

    

 

	Testing Period	 	Minimum Adjusted EBITDA
	Four quarter period ended June 30, 2020	 	The greater of (a) $10 million or (b) 75% of projected Adjusted EBITDA for such period pursuant to projections, based on good faith estimates and assumptions believed by the Borrower to be reasonable at the time made, delivered to the Administrative Agent no later than December 31, 2019

 

“Adjusted EBITDA” shall mean, for Holdings
and its Subsidiaries, for any period, an amount equal to the sum of (i) Consolidated Net Income for such period plus (ii) solely
to the extent deducted in determining Consolidated Net Income for such period, and without duplication, (A) Consolidated Interest
Expense, (B) income tax expense determined on a consolidated basis in accordance with GAAP, (C) depreciation and amortization determined
on a consolidated basis in accordance with GAAP, (D) compensation paid solely in Capital Securities of Holdings that are not Disqualified
Capital Securities, (E) non-cash impairment charges, (F) out-of-pocket fees, costs and expenses actually paid in connection with
the closing of the Transactions, (G) severance costs or one-time reduction-in-force compensation expenses paid to employees, (H)
expenses associated with the Dayton repurposing and restructuring of the sales organization approved by the Administrative Agent
in its sole discretion and (I) all other non-cash charges approved by the Administrative Agent in its sole discretion, determined
on a consolidated basis in accordance with GAAP, in each case for such period.

 

		(ii)	The minimum liquidity of the Company shall be $500,000 at all times.

 

		(iii)	The minimum revenue base covenant will not be applicable for quarters ended after December 31, 2017.

 

		(iv)	The Consolidated Senior Leverage Ratio shall not be greater than as follows:

 

	Four Fiscal 

Quarters Ended	 	Consolidated Senior 

Leverage Ratio
	June 30, 2019	 	10.00:1.00
	September 30, 2019	 	10.00:1.00
	December 31, 2019	 	8.00:1.00
	March 31, 2020	 	7.00:1.00
	June 30, 2020	 	7.00:1.00

 

     

     

    

 

Exhibit C

 

Form of Director Indemnification Agreement

 

     

     

    

 

INDEMNIFICATION AGREEMENT

 

THIS AGREEMENT (the
“Agreement”) is made and entered into as of [       ], 2018 between Xtant
Medical Holdings, Inc., a Delaware corporation (the “Company”), and [         ]
(“Indemnitee”).

 

WITNESSETH THAT:

 

WHEREAS, Indemnitee
performs a valuable service for the Company;

 

WHEREAS, the Board
of Directors of the Company (the “Board of Directors”) has adopted Bylaws (the “Bylaws”)
providing for the indemnification of the directors of the Company to the fullest extent permitted by the Delaware General Corporation
Law;

 

WHEREAS, the Bylaws
and the Delaware General Corporation Law, by their nonexclusive nature, permit contracts between the Company and the directors
of the Company with respect to indemnification of such directors;

 

WHEREAS, under applicable
law, the Company may purchase and maintain a policy or policies of directors’ and officers’ liability insurance (“D&O
Insurance”), covering certain liabilities which may be incurred by its officers or directors in the performance of their
obligations to the Company;

 

[WHEREAS, Indemnitee
has certain rights to indemnification and/or insurance provided by OrbiMed Advisors LLC and its affiliates (collectively, with
the management company associated with such entities, and any entity that serves as the general partner or managing member to such
entities, the “Fund Indemnitors”) which Indemnitee and the Fund Indemnitors intend to be secondary to the primary
obligation of the Company to indemnify Indemnitee as provided herein, with the Company’s acknowledgement and agreement to
the foregoing being a material condition to Indemnitee’s willingness to serve on the Board of Directors; and]1

 

WHEREAS, in order to
induce Indemnitee to continue to serve as a director of the Company, the Company has determined and agreed to enter into this contract
with Indemnitee [with the explicit acknowledgement of the intended third party beneficiaries set forth in Section 2 hereof].

 

NOW, THEREFORE, in
consideration of Indemnitee’s service as a director, the parties hereto agree as follows:

 

1.     Indemnity
of Indemnitee. The Company hereby agrees to hold harmless and indemnify Indemnitee to the fullest extent permitted by law (which
will include to the fullest extent permitted by Section 145 of the Delaware General Corporation Law, or any successor statute),
as such may be amended from time to time. In furtherance of the foregoing indemnification, and without limiting the generality
thereof:

 

(a)       Proceedings
Other Than Proceedings by or in the Right of the Company. Indemnitee shall be entitled to the rights of indemnification provided
in this Section 1 if, by reason of Indemnitee’s Corporate Status, Indemnitee is, or is threatened to be made, a party to
or participant in any Proceeding other than a Proceeding by or in the right of the Company. Pursuant to this Section 1(a), the
Company shall indemnify and hold harmless Indemnitee against all Expenses and Liabilities incurred or paid by Indemnitee or on
Indemnitee’s behalf in connection with such Proceeding or any claim, issue or matter therein, if the Indemnitee acted in
good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Company and, with
respect to any criminal Proceeding, the Indemnitee had no reasonable cause to believe Indemnitee’s conduct was unlawful.

 

 

1 Note to
Draft: Bracketed language here and throughout the agreement to be included for OrbiMed designees, and any other director that has
a Fund Indemnitor.

 

     

     

    

 

(b)       Proceedings
by or in the Right of the Company. Indemnitee shall be entitled to the rights of indemnification provided in this Section 1
if, by reason of Indemnitee’s Corporate Status, Indemnitee is, or is threatened to be made, a party to or participant in
any Proceeding brought by or in the right of the Company. Pursuant to this Section 1(b), the Company shall indemnify and hold harmless
Indemnitee against all Expenses and Liabilities incurred or paid by Indemnitee or on Indemnitee’s behalf in connection with
such Proceeding if the Indemnitee acted in good faith and in a manner the Indemnitee reasonably believed to be in or not opposed
to the best interests of the Company; provided, however, that, if applicable law so provides, no indemnification
against such Expenses and Liabilities shall be made in respect of any claim, issue or matter in such Proceeding as to which Indemnitee
shall have been adjudged to be liable to the Company unless and to the extent that the Court of Chancery of the State of Delaware
shall determine that such indemnification may be made.

 

(c)       Indemnification
for Expenses of a Party Who is Wholly or Partly Successful. Notwithstanding and in addition to any other provision of this
Agreement, to the extent that Indemnitee is, by reason of Indemnitee’s Corporate Status, a party to and is successful, on
the merits or otherwise, in any Proceeding, the Company shall indemnify Indemnitee, to the maximum extent permitted by law, against
all Expenses incurred or paid by Indemnitee or on Indemnitee’s behalf in connection therewith. If Indemnitee is not wholly
successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues
or matters in such Proceeding, the Company shall indemnify Indemnitee against all Expenses incurred or paid by Indemnitee or on
Indemnitee’s behalf in connection with each successfully resolved claim, issue or matter. For purposes of this Section and
without limitation, the termination of any Proceeding, or any claim, issue or matter in such Proceeding, by dismissal, settlement
or a plea of nolo contendere with or without prejudice will be deemed to be a successful result as to such Proceeding, claim,
issue or matter.

 

(d)       Indemnity
of Indemnitee by Subsidiary of Company. Notwithstanding and in addition to any other provision of this Agreement, in the event
that Indemnitee serves, now or in the future, as a director, officer, member of the board of managers or in a similar position
with any of the Company’s subsidiaries, in consideration for such service, Indemnitee shall be indemnified and be entitled
to rights of advancement and contribution from any such subsidiary to the maximum extent permitted by this Agreement and by law.
Such indemnification, advancement and contribution shall be made pursuant to comparable procedures as those set forth in this Agreement.
The Company hereby represents that it is or will be duly authorized and empowered on behalf of each such subsidiary described in
the preceding sentence to provide such indemnification, advancement and contribution as set forth in this Section 1(d) and further
agrees to take any and all actions necessary to cause each such subsidiary to effectuate such indemnification, advancement and
contribution. In the event that any such subsidiary against which Indemnitee is entitled to such indemnification, advancement and
contribution fails to provide such indemnification, advancement or contribution to the maximum extent permitted by this Agreement
and by law, the Company agrees to provide to Indemnitee any and all indemnification, advancement and contribution to the maximum
extent permitted by this Agreement and by law on behalf of such subsidiary. The rights of indemnification, advancement and contribution
provided to Indemnitee by any subsidiary of the Company are not exclusive of any other rights which Indemnitee may have from such
subsidiary under statute, bylaw, agreement, vote of the board of directors or board of managers of such subsidiary or otherwise.

 

     

     

    

 

2.    
Additional Indemnity.

 

(a)       In
addition to, and without regard to any limitations on, the indemnification provided for in Section 1, the Company shall and hereby
does indemnify and hold harmless Indemnitee against all Expenses and Liabilities incurred or paid by Indemnitee or on Indemnitee’s
behalf if, by reason of Indemnitee’s Corporate Status, Indemnitee is, or is threatened to be made, a party to or participant
in any Proceeding (including a Proceeding by or in the right of the Company), including, without limitation, all liability arising
out of the negligence or active or passive wrongdoing of Indemnitee. The only limitation that shall exist upon the Company’s
obligations pursuant to this Agreement shall be that the Company shall not be obligated to make any payment to Indemnitee that
is finally determined (under the procedures, and subject to the presumptions, set forth in Sections 6, 7 and 21 hereof) to be unlawful
under the laws of the State of Delaware.

 

(b)       [If
any Fund Indemnitor is or was a party or is threatened to be made a party to or is otherwise involved in (including, without limitation,
as a witness or responding to discovery) any Proceeding, and such Fund Indemnitor’s involvement in the Proceeding arises
from the Indemnitee’s Corporate Status, or from a Fund Indemnitor’s (or group of Fund Indemnitors) financial interest
(whether through equity, debt or otherwise) in or control or alleged control of the Company, then such Fund Indemnitor shall be
entitled to all of the indemnification rights and remedies (including, without limitation, the advancement of Expenses), and shall
to the extent indemnified hereunder undertake the obligations, of the Indemnitee under this Agreement to the same extent as the
Indemnitee. The Company and Indemnitee agree that the Fund Indemnitors are express third party beneficiaries of the terms hereof.]

 

3.    
Contribution in the Event of Joint Liability.

 

(a)       Whether
or not the indemnification provided in Sections 1 and 2 hereof is available, in respect of any Proceeding in which the Company
is jointly liable with Indemnitee (or would be if joined in such Proceeding), the Company shall pay, in the first instance, the
entire amount of any judgment or settlement of such Proceeding without requiring Indemnitee to contribute to such payment and the
Company hereby waives and relinquishes any right of contribution it may have against Indemnitee. The Company shall not enter into
any settlement of any Proceeding in which the Company is jointly liable with Indemnitee (or would be if joined in such Proceeding
unless such settlement provides for a full and final release of all claims asserted against Indemnitee.

 

(b)       Without
diminishing or impairing the obligations of the Company set forth in the preceding subparagraph, if, for any reason, Indemnitee
shall elect or be required to pay all or any portion of any judgment or settlement in any Proceeding in which the Company is jointly
liable with Indemnitee (or would be if joined in such Proceeding), the Company shall contribute to the amount of Expenses and Liabilities
incurred or paid by Indemnitee or on Indemnitee’s behalf in proportion to the relative benefits received by the Company and
all officers, directors or employees of the Company other than the parties who are jointly liable with Indemnitee (or would be
if joined in such Proceeding), on the one hand, and Indemnitee, on the other hand, from the transaction from which such Proceeding
arose; provided, however, that the proportion determined on the basis of relative benefit may, to the extent necessary
to conform to law, be further adjusted by reference to the relative fault of the Company and all officers, directors or employees
of the Company other than the parties who are jointly liable with Indemnitee (or would be if joined in such Proceeding), on the
one hand, and Indemnitee, on the other hand, in connection with the events that resulted in such Expenses and Liabilities, as well
as any other equitable considerations which the law may require to be considered.

 

(c)       The
Company hereby agrees to fully indemnify and hold Indemnitee harmless from any claims of contribution which may be brought by officers,
directors or employees of the Company who may be jointly liable with Indemnitee for any Loss or Expense arising from a Proceeding.

 

     

     

    

 

(d)       To
the fullest extent permissible under applicable law, if the indemnification provided for in this Agreement is unavailable to Indemnitee
for any reason whatsoever, the Company, in lieu of indemnifying Indemnitee, shall contribute to the amount incurred or paid by
Indemnitee, whether for Liabilities and/or for Expenses, in connection with any claim relating to an indemnifiable event under
this Agreement, in proportion to the relative benefits received by, and the relative fault of, the Company and all officers, directors
or employees of the Company, on the one hand, and Indemnitee, on the other hand, from the transaction from which such Proceeding
arose; provided that in the case of an Indemnitee who is a director of the Company, the amount of Liabilities and/or Expenses
paid by such Indemnitee shall not exceed the amount of fees paid to such Indemnitee for serving as a director during the 12 months
preceding the commencement of the Proceeding.

 

4.     Indemnification
for Expenses of a Witness or in Response to a Subpoena. Notwithstanding any other provision of this Agreement, to the extent
that Indemnitee is a witness or is made to (or asked to) respond to discovery requests in any Proceeding involving the Company,
its officers, directors, shareholders or creditors to which Indemnitee is not a party, the Company shall indemnify Indemnitee against
all against all Expenses paid or incurred by Indemnitee in connection therewith and in the manner set forth in this Agreement.

 

5.     Advancement
of Expenses. Notwithstanding any other provision of this Agreement, the Company shall advance all Expenses incurred or paid
by or on behalf of Indemnitee in connection with any Proceeding within ten (10) days after the receipt by the Company of a statement
or statements from Indemnitee requesting such advance or advances from time to time, whether prior to or after final disposition
of such Proceeding. Such statement or statements shall reasonably evidence the Expenses incurred or paid by Indemnitee and shall
include or be preceded or accompanied by an undertaking by or on behalf of Indemnitee to repay any Expenses advanced if it shall
ultimately be determined that Indemnitee is not entitled to be indemnified against such Expenses. Indemnitee’s right to each
Expense advance will not be subject to the satisfaction of any standard of conduct and will be made without regard to Indemnitee’s
ultimate entitlement to indemnification under the other provisions of this Agreement, or under provisions of the certificate of
incorporation of the Company (the “Certificate of Incorporation”) or Bylaws or otherwise. Any advances and undertakings
to repay pursuant to this Section 5 shall be unsecured and interest free and made without regard to Indemnitee’s financial
ability to repay such Expenses.

 

6.     Procedures
and Presumptions for Determination of Entitlement to Indemnification. It is the intent of this Agreement to secure for Indemnitee
rights of indemnity that are at least as favorable as may be permitted under law and public policy of the State of Delaware. Accordingly,
the parties agree that the following procedures and presumptions shall apply in the event of any question as to whether Indemnitee
is entitled to indemnification under this Agreement:

 

(a)       To
obtain indemnification under this Agreement, Indemnitee shall submit to the Company a written request, provided, however,
that failure to so request indemnification from the Company shall not relieve the Company of any of its obligations hereunder.
The Secretary of the Company shall, promptly upon receipt of such a request for indemnification, advise the Board of Directors
in writing that Indemnitee has requested indemnification. Notwithstanding anything in this Agreement to the contrary, no determination
(if required by applicable law) as to entitlement to indemnification under this Agreement shall be required to be made prior to
the final disposition of the Proceeding.

 

     

     

    

 

(b)       Upon
written request by Indemnitee for indemnification pursuant to the first sentence of Section 6(a) hereof, a determination, if required
by a court of law, with respect to Indemnitee’s entitlement thereto shall be made in the specific case by one of the following
four methods, which shall be at the election of Indemnitee: (A) if a Change in Control shall have occurred, by Independent Counsel
in a written opinion to the Board of Directors, a copy of which shall be delivered to Indemnitee; or (B) if a Change in Control
shall not have occurred, (i) by a majority vote of the Disinterested Directors, even though less than a quorum, or (ii) by a committee
of Disinterested Directors designated by a majority vote of the Disinterested Directors, even though less than a quorum, (iii)
if there are no such Disinterested Directors or, if such Disinterested Directors so direct, by Independent Counsel in a written
opinion to the Board of Directors, a copy of which shall be delivered to the Indemnitee, or (iv) if so directed by the Board of
Directors, by the stockholders of the Company. The Company promptly will advise Indemnitee in writing with respect to any determination
that Indemnitee is or is not entitled to indemnification, including a description of any reason or basis for which indemnification
has been denied.

 

(c)       If
the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 6(b) hereof, the Independent
Counsel shall be selected as provided in this Section 6(c). The Independent Counsel shall be selected by Indemnitee (unless Indemnitee
shall request that such selection be made by the Board of Directors). Indemnitee or the Company, as the case may be, may, within
ten (10) days after such written notice of selection shall have been given, deliver to the Company or to Indemnitee, as the case
may be, a written objection to such selection; provided, however, that such objection may be asserted only on the
ground that the Independent Counsel so selected does not meet the requirements of “Independent Counsel” as defined
in Section 13 of this Agreement, and the objection shall set forth with particularity the factual basis of such assertion. Absent
a proper and timely objection, the Person so selected shall act as Independent Counsel. If a written objection is made and substantiated,
the Independent Counsel selected may not serve as Independent Counsel unless and until such objection is withdrawn or a court has
determined that such objection is without merit. If, within twenty (20) days after submission by Indemnitee of a written request
for indemnification pursuant to Section 6(a) hereof, no Independent Counsel shall have been selected and not objected to, either
the Company or Indemnitee may petition the Court of Chancery of the State of Delaware or other court of competent jurisdiction
for resolution of any objection which shall have been made by the Company or Indemnitee to the other’s selection of Independent
Counsel and/or for the appointment as Independent Counsel of a Person selected by the court or by such other Person as the court
shall designate, and the Person with respect to whom all objections are so resolved or the Person so appointed shall act as Independent
Counsel under Section 6(b) hereof. The Company shall pay any and all reasonable fees and expenses of Independent Counsel incurred
or paid by such Independent Counsel in connection with acting pursuant to Section 6(b) hereof, and the Company shall pay all reasonable
fees and expenses incident to the procedures of this Section 6(c), regardless of the manner in which such Independent Counsel was
selected or appointed.

 

(d)       In
making a determination with respect to entitlement to indemnification hereunder, the Person(s) making such determination shall
presume that Indemnitee is entitled to indemnification under this Agreement. Anyone seeking to overcome this presumption shall
have the burden of proof and the burden of persuasion, by clear and convincing evidence.

 

(e)       Indemnitee
shall be deemed to have acted in good faith if Indemnitee’s action is based on the records or books of account of the Enterprise,
including financial statements, or on information supplied to an Indemnitee by the directors, officers, agents or employees of
the Enterprise in the course of their duties, or on the advice of legal counsel for the Enterprise or on information or records
given or reports made to the Enterprise by an independent certified public accountant or by an appraiser or other expert selected
by the Enterprise. In addition, the knowledge and/or actions, or failure to act, of any director, officer, agent or employee of
the Enterprise shall not be imputed to Indemnitee for purposes of determining the right to indemnification under this Agreement.
Whether or not the foregoing provisions of this Section 6(e) are satisfied, it shall in any event be presumed that Indemnitee has
at all times acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of
the Company. Anyone seeking to overcome this presumption shall have the burden of proof and the burden of persuasion, by clear
and convincing evidence.

 

     

     

    

 

(f)       The
Company will use its reasonable best efforts to cause any determination required to be made pursuant to Section 6(b) to be made
as promptly as practicable after Indemnitee has submitted a written request for indemnification pursuant to this Agreement. If
the Person(s) empowered or selected under Section 6 to determine whether Indemnitee is entitled to indemnification shall not have
made a determination within thirty (30) days after receipt by the Company of the request therefor, the requisite determination
of entitlement to indemnification shall be deemed to have been made and Indemnitee shall be entitled to such indemnification, absent
(i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement
not materially misleading, in connection with the request for indemnification, or (ii) such indemnification being expressly prohibited
under applicable law; provided, however, that such thirty (30) day period may be extended for a reasonable time,
not to exceed an additional fifteen (15) days, if the Person(s) making the determination with respect to entitlement to indemnification
in good faith requires such additional time to obtain or evaluate documentation and/or information relating thereto; and provided,
further, that the foregoing provisions of this Section 6(f) shall not apply if the determination of entitlement to indemnification
is to be made by the stockholders of the Company pursuant to Section 6(b) of this Agreement and if (A) within fifteen (15) days
after receipt by the Company of the request for such determination the Board of Directors or the Disinterested Directors, if appropriate,
resolve to submit such determination to the stockholders of the Company for their consideration at an annual meeting thereof to
be held within seventy-five (75) days after such receipt and such determination is made thereat, or (B) a special meeting of stockholders
of the Company is called within fifteen (15) days after such receipt for the purpose of making such determination, such meeting
is held for such purpose within sixty (60) days after having been so called and such determination is made thereat.

 

(g)       Indemnitee
shall cooperate with the Person(s) making such determination with respect to Indemnitee’s entitlement to indemnification,
including providing to such Person(s) upon reasonable advance request any documentation or information which is not privileged
or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination.
Any Independent Counsel, member of the Board of Directors, or stockholder of the Company shall act reasonably and in good faith
in making a determination of the Indemnitee’s entitlement to indemnification under the Agreement. Any costs or expenses (including
attorneys’ fees and disbursements) incurred by Indemnitee in so cooperating with the Person(s) making such determination
shall be borne by the Company (irrespective of the determination as to Indemnitee’s entitlement to indemnification) and the
Company hereby indemnifies and agrees to hold Indemnitee harmless therefrom.

 

(h)       The
Company acknowledges that a settlement or other disposition short of final judgment may be successful if it permits a party to
avoid expense, delay, distraction, disruption and uncertainty. In the event that any Proceeding to which Indemnitee is a party
is resolved in any manner other than by adverse judgment against Indemnitee (including, without limitation, settlement of such
Proceeding with or without payment of money or other consideration) it shall be presumed that Indemnitee has been successful on
the merits or otherwise in such Proceeding. Anyone seeking to overcome this presumption shall have the burden of proof and the
burden of persuasion, by clear and convincing evidence.

 

     

     

    

 

(i)       The
termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a
plea of nolo contendere or its equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself adversely
affect the right of Indemnitee to indemnification or create a presumption that Indemnitee did not act in good faith and in a manner
which he reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding,
that Indemnitee had reasonable cause to believe that Indemnitee’s conduct was unlawful.

 

(j)       The
Company shall not enter into any settlement of any Proceeding in which the Indemnitee is or could reasonably become a party unless
such settlement provides for a full and final release of all claims asserted against the Indemnitee.

 

7.    
Remedies of Indemnitee.

 

(a)       In
the event that (i) a determination is made pursuant to Section 6 of this Agreement that Indemnitee is not entitled to indemnification
under this Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 5 of this Agreement, (iii) no determination
of entitlement to indemnification shall have been made pursuant to Section 6(b) of this Agreement within ninety (90) days after
receipt by the Company of the request for indemnification, (iv) payment of indemnification is not made pursuant to this Agreement
within ten (10) days after receipt by the Company of a written request therefor, (v) no contribution has been timely made pursuant
to Section 3 hereof or (vi) payment of indemnification is not made within ten (10) days after a determination has been made that
Indemnitee is entitled to indemnification or such determination is deemed to have been made pursuant to Section 6 of this Agreement,
Indemnitee shall be entitled to an adjudication in an appropriate court of the State of Delaware, or in any other court of competent
jurisdiction, of Indemnitee’s entitlement to such indemnification or Expense advance. The Company shall not oppose Indemnitee’s
right to seek any such adjudication.

 

(b)       In
the event that a determination shall have been made pursuant to Section 6(b) of this Agreement that Indemnitee is not entitled
to indemnification, any judicial proceeding commenced pursuant to this Section 7 shall be conducted in all respects as a de novo
trial, on the merits and Indemnitee shall not be prejudiced by reason of that adverse determination under Section 6(b). In any
judicial proceeding commenced pursuant to this Section 7, Indemnitee will be presumed to be entitled to indemnification under this
Agreement, the Company will have the burden of proving Indemnitee is not entitled to indemnification and the Company may not refer
to or introduce evidence of any determination pursuant to Section 6 adverse to Indemnitee for any purpose. If Indemnitee commences
a judicial proceeding pursuant to this Section 7, Indemnitee will not be required to reimburse the Company for any Expense advance
made pursuant to Section 5 until a final determination is made with respect to Indemnitee’s entitlement to indemnification
(as to which all rights of appeal have been exhausted or lapsed).

 

(c)       If
a determination shall have been made pursuant to Section 6(b) of this Agreement that Indemnitee is entitled to indemnification,
the Company shall be bound by such determination in any judicial proceeding commenced pursuant to this Section 7, absent a prohibition
of such indemnification under applicable law.

 

(d)       In
the event that Indemnitee, pursuant to this Section 7, seeks a judicial adjudication of Indemnitee’s rights under, or to
recover damages for breach of, this Agreement, or to recover under any D&O Insurance policies maintained by the Company, the
Company shall pay on Indemnitee’s behalf, in advance, any and all expenses (of the types described in the definition of Expenses
in Section 13 of this Agreement) incurred or paid by Indemnitee in such judicial adjudication, regardless of whether Indemnitee
ultimately is determined to be entitled to such indemnification, advancement of expenses or insurance recovery. The Company shall,
within ten (10) days after receipt by the Company of a written request therefor from Indemnitee, advance such Expenses to Indemnitee
pursuant to comparable procedures as those set forth in Section 5 with respect to advancement of Expenses therein.

 

     

     

    

 

(e)       The
Company shall be precluded from asserting in any judicial proceeding commenced pursuant to this Section 7 that the procedures and
presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court that the Company is
bound by all the provisions of this Agreement. The Company shall indemnify Indemnitee against any and all Expenses and, if requested
by Indemnitee, shall (within ten (10) days after receipt by the Company of a written request therefore) advance, to the extent
not prohibited by law, such Expenses to Indemnitee, which are incurred by Indemnitee in connection with any action brought by Indemnitee
for indemnification or advance of Expenses from the Company under this Agreement or under any D&O Insurance policies maintained
by the Company, regardless of whether Indemnitee ultimately is determined to be entitled to such indemnification, advancement of
Expenses or insurance recovery, as the case may be.

 

8.     Non-Exclusivity; Survival of Rights; Insurance; Subrogation.

 

(a)       The
rights of indemnification as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may
at any time be entitled under applicable law, the Certificate of Incorporation, the Bylaws, any agreement, a vote of stockholders
of the Company or a resolution of directors, or otherwise. No amendment, alteration or repeal of this Agreement or of any provision
hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of any action taken or omitted by the indemnitee
in Indemnitee’s Corporate Status prior to such amendment, alteration or repeal. To the extent that a change in the law (including
to Section 145 of the Delaware General Corporation Law, as amended), whether by statute or judicial decision, permits greater
indemnification than would be afforded currently under the Bylaws and this Agreement, the Indemnitee shall enjoy by this Agreement
the greater benefits so afforded by such change. No right or remedy herein conferred is intended to be exclusive of any other right
or remedy, and every other right and remedy shall be cumulative and in addition to every other right and remedy given hereunder
or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or
otherwise, shall not prevent the concurrent assertion or employment of any other right or remedy.

 

(b)       For
the duration of Indemnitee’s service as a director and/or officer of the Company, and thereafter for so long as Indemnitee
shall be subject to any pending or possible Proceeding, the Company shall cause to be maintained in effect D&O Insurance policies.
The Indemnitee shall be named as an insured in all D&O Insurance policies maintained by the Company in such manner as to provide
the Indemnitee the same rights and benefits, subject to the same limitations, as are accorded each of the Company’s directors
and officers most favored by such policies. The Indemnitee shall also be covered by any other insurance policy or policies providing
liability insurance for directors, officers, employees, or agents or fiduciaries of the Company or of any other corporation, partnership,
joint venture, trust, employee benefit plan or other Enterprise which such Indemnitee serves at the request of the Company, and
Indemnitee shall be covered by such policy or policies in accordance with its or their terms to the maximum extent of the coverage
available for any such director, officer, employee, agent or fiduciary under such policy or policies. At the time of the receipt
of a notice of a claim pursuant to the terms hereof, the Company shall give prompt notice of the commencement of such proceeding
to the insurers in accordance with the procedures set forth in the respective policies, and the Company will provide Indemnitee
with a copy of such notice and copies of all subsequent correspondence between the Company and such insurers related thereto. The
Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all
amounts payable as a result of such proceeding in accordance with the terms of such policies.

 

     

     

    

 

(c)       [The
Company hereby acknowledges that Indemnitee has certain rights to indemnification, advancement of expenses and/or insurance provided
by the Fund Indemnitors. The Company hereby agrees (i) that it is the indemnitor of first resort (i.e., its obligations to Indemnitee
are primary and any obligation of the Fund Indemnitors to advance expenses or to provide indemnification for the same Expenses
or Liabilities incurred by Indemnitee are secondary), (ii) that it shall be required to advance the full amount of Expenses incurred
by Indemnitee and shall be liable for the full amount of all Expenses and Liabilities to the extent legally permitted and as required
by the terms of this Agreement and the Certificate of Incorporation or Bylaws (or any other agreement between the Company and Indemnitee),
without regard to any rights Indemnitee may have against the Fund Indemnitors, and, (iii) that it irrevocably waives, relinquishes
and releases the Fund Indemnitors from any and all claims against the Fund Indemnitors for contribution, subrogation or any other
recovery of any kind in respect thereof. The Company further agrees that no advancement or payment by the Fund Indemnitors on behalf
of Indemnitee with respect to any claim for which Indemnitee has sought indemnification from the Company shall affect the foregoing
and the Fund Indemnitors shall have a right of contribution and/or be subrogated to the extent of such advancement or payment to
all of the rights of recovery of Indemnitee against the Company. The Company and Indemnitee agree that the Fund Indemnitors are
express third party beneficiaries of the terms hereof.]

 

(d)       [Except
as provided in paragraph (c) above, ]in the event of any payment under this Agreement, the Company shall be subrogated to the extent
of such payment to all of the rights of recovery of Indemnitee [(other than against Fund Indemnitors)], who shall execute all papers
required and take all action necessary to secure such rights, including execution of such documents as are necessary to enable
the Company to bring suit to enforce such rights (it being understood that all of Indemnitee’s reasonable Expenses related
thereto will be borne by the Company).

 

(e)       [Except
as provided in paragraph (c) above, ]the Company shall not be liable under this Agreement to make any payment of amounts otherwise
indemnifiable hereunder if and to the extent that Indemnitee has otherwise actually received such payment under any insurance policy,
contract, agreement or otherwise.

 

(f)       [Except
as provided in paragraph (c) above, ]the Company’s obligation to indemnify or advance Expenses hereunder to Indemnitee who
is or was serving at the request of the Company as a director, officer, employee or agent of any other corporation, partnership,
joint venture, trust, employee benefit plan or other Enterprise shall be reduced by any amount Indemnitee has actually received
as indemnification or advancement of Expenses from such other corporation, partnership, joint venture, trust, employee benefit
plan or other Enterprise.

 

(g)       The
Company hereby acknowledges and agrees that the indemnification provided to the Indemnitee by the Company under this Agreement,
the Certificate or Bylaws, or any other agreements or covenants of the Company to provide indemnification, or otherwise with respect
to matters arising by reason of the Indemnitee’s Corporate Status is primary and shall not be affected by any indemnification
obligations of any other persons or entities that may apply to such matters, which other indemnification obligations shall be secondary
as to such matters.

 

9.     Exception
to Right of Indemnification. Notwithstanding any other provision of this Agreement, Indemnitee shall not be entitled to indemnification
under this Agreement with respect to any Proceeding brought by Indemnitee, or any claim therein, unless (a) the bringing of such
Proceeding or making of such claim shall have been approved by the Board of Directors, (b) such Proceeding is being brought by
the Indemnitee to assert, interpret or enforce Indemnitee’s rights under this Agreement, or (c) the Company provides the
indemnification, in its sole discretion, pursuant to the powers vested in the Company under applicable law.

 

     

     

    

 

10.   Duration
of Agreement. All agreements and obligations of the Company contained herein shall continue during the period Indemnitee is
a director of the Company (or is or was serving at the request of the Company as a director, officer, employee or agent of another
corporation, partnership, joint venture, trust or other Enterprise) and shall continue thereafter so long as Indemnitee shall be
subject to any Proceeding (or any proceeding commenced under Section 7 hereof) by reason of Indemnitee’s Corporate Status,
whether or not Indemnitee is acting or serving in any such capacity at the time any Liability or Expense is incurred for which
indemnification can be provided under this Agreement. Neither this Agreement nor any of the rights, interests or obligations under
this Agreement may be assigned or delegated, in whole or in part, by operation of law or otherwise, by any party without the prior
written consent of the other party, and any such assignment without such prior written consent shall be null and void; provided,
however, that no assignment shall limit the assignor’s obligations hereunder. Subject to the preceding sentence, this
Agreement (and the rights, duties and obligations of the parties to this Agreement) will be binding upon, inure to the benefit
of, and be enforceable by, the parties and their respective successors and assigns.

 

11.   Security.
To the extent requested by the Indemnitee and approved by the Board of Directors, the Company may at any time and from time to
time provide security to the Indemnitee for the Company’s obligations hereunder through an irrevocable bank line of credit,
funded trust or other collateral. Any such security, once provided to the Indemnitee, may not be revoked or released without the
prior written consent of the Indemnitee.

 

12.   Enforcement.

 

(a)       The
Company expressly confirms and agrees that it has entered into this Agreement and assumes the obligations imposed on it hereby
in order to induce Indemnitee to serve as a director of the Company, and the Company acknowledges that Indemnitee is relying upon
this Agreement in serving as a director of the Company.

 

(b)       This
Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes
all prior agreements and understandings, oral, written and implied, between the parties hereto with respect to the subject matter
hereof[, other than other rights to Indemnification held by the Fund Indemnitors, which shall continue in full force and effect
in addition to the rights of Indemnification provided hereunder].

 

13.   Definitions.
For purposes of this Agreement:

 

(a)       “Change
in Control” means (1) Any Person (as defined below) or group (within the meaning of the
Securities Exchange Act of 1934, as amended and the rules and regulations thereunder), other than OrbiMed Advisors LLC and its
affiliates, is or becomes the Beneficial Owner (as defined below), directly or indirectly, of securities of the Company representing
forty percent (40%) or more of the combined voting power of the Company’s then outstanding securities entitled to vote
generally in the election of directors, (2) during any period of two (2) consecutive years (not including any period prior
to the execution of this Agreement), individuals who at the beginning of such period constitute the Board of Directors, and any
new directors whose election by the Board of Directors or nomination for election by the Company’s stockholders was approved
by a vote of at least two-thirds of the directors then still in office who either were directors at the beginning of the period
or whose election or nomination for election was previously so approved, cease for any reason to constitute at least a majority
of the members of the Board of Directors, or (3) the approval by the stockholders of the Company of a complete liquidation of the
Company or an agreement or series of agreements for the sale or disposition by the Company of all or substantially all of the Company’s
assets.

 

     

     

    

 

(b)        “Corporate
Status” describes the status of a Person who is or was a director, officer, stockholder, employee, agent, consultant,
or fiduciary of the Company or of any other corporation, partnership, joint venture, trust, employee benefit plan or other Enterprise
which such Person is or was serving at the request of the Company.

 

(c)        “Disinterested
Director” means a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification
is sought by Indemnitee.

 

(d)        “Enterprise”
shall mean the Company and any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise
of which Indemnitee is or was serving at the request of the Company as a director, officer, employee, agent or fiduciary.

 

(e)        “Expenses”
shall include all reasonable attorneys’ fees, retainers, court costs, transcript costs, fees of experts, witness fees, travel
expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, and all other disbursements
or expenses of the types customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating,
participating, or being or preparing to be a witness in a Proceeding. The term “Expenses” hereunder also shall include
Expenses incurred in connection with any appeal resulting from any Proceeding, including without limitation the premium, security
for, and other costs relating to any cost bond, supersede as bond, or other appeal bond or its equivalent. Expenses, however, shall
not include amounts paid in settlement by Indemnitee or the amount of judgments or fines against Indemnitee.

 

(f)        “Independent
Counsel” means a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither presently
is, nor in the past five years has been, retained to represent: (i) the Company or Indemnitee in any matter material to either
such party (other than with respect to matters concerning the Indemnitee under this Agreement, or of other indemnitees under similar
indemnification agreements), or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding
the foregoing, the term “Independent Counsel” shall not include any Person who, under the applicable standards of professional
conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine
Indemnitee’s rights under this Agreement. The Company agrees to pay the reasonable fees of the Independent Counsel referred
to above and to fully indemnify such counsel against any and all Expenses and Liabilities arising out of or relating to this Agreement
or its engagement pursuant hereto.

 

(g)        “Liabilities”
includes judgments, penalties, fines, interest, assessments, charges and amounts paid in settlement.

 

(h)        “Person”
means any individual, corporation, LLC, partnership, joint venture, association, joint stock company, trust, unincorporated organization,
government or any agency or political subdivision thereof or any other entity.

 

(i)        “Proceeding”
includes any threatened, pending or completed action, suit, arbitration, alternate dispute resolution mechanism, investigation,
inquiry, administrative hearing or any other actual, threatened or completed proceeding, whether brought by or in the right of
the Company or otherwise and whether civil, criminal, administrative or investigative, in which Indemnitee was, is or will be involved
as a party or otherwise, by reason of the fact that Indemnitee invested in the Company, Indemnitee facilitated or managed any investment
in the Company, Indemnitee is or was a director of the Company, by reason of any action taken by Indemnitee or of any inaction
on Indemnitee’s part while acting as a director of the Company, or by reason of the fact that Indemnitee is or was serving
at the request of the Company as a director, officer, employee or agent of another corporation, partnership, joint venture, trust
or other Enterprise; in each case whether or not Indemnitee is acting or serving in any such capacity at the time any Liability
or Expense is incurred for which indemnification can be provided under this Agreement, including one pending on or before the date
of this Agreement, and excluding one initiated by an Indemnitee pursuant to Section 7 of this Agreement to enforce Indemnitee’s
rights under this Agreement.

 

     

     

    

 

14.   Severability.
If any provision of this Agreement becomes or is determined by a court of competent jurisdiction to be illegal, invalid, unenforceable
or void, portions of such provision, or such provision in its entirety, to the extent necessary, shall be severed from this Agreement
and the remaining provisions (or portion of the provision) shall remain in full force and effect and shall be construed without
giving effect to the illegal, invalid, unenforceable or void provisions (or portions thereof).

 

15.   Amendments
and Waivers of Terms. Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived
(either generally or in a particular instance and either retroactively or prospectively), only if such amendment or waiver is in
writing and signed, in the case of an amendment, by the Company and Indemnitee or, in the case of a waiver, by the party against
whom the waiver is to be effective. Any amendment or waiver effected in accordance with this paragraph shall be binding upon each
holder of any securities purchased under this Agreement at the time outstanding (including securities into which such securities
are convertible) and the Company.

 

16.   Notice
By Indemnitee. Indemnitee agrees promptly to notify the Company upon being served with any summons, citation, subpoena, complaint,
indictment, information or other document relating to any Proceeding or matter which may be subject to indemnification covered
hereunder; provided, however, that a delay or failure in giving such notice will not deprive Indemnitee of any right
to be indemnified under this Agreement and shall not relieve the Company of any obligation which it may have to the Indemnitee
under this Agreement or otherwise unless the Company did not learn of the Proceeding through other means, and such delay or failure
is materially prejudicial to the Company’s ability to defend such Proceeding, and, if such delay or failure does materially
prejudice such Corporation’s rights, it will relieve such Corporation from liability only to the extent of such prejudice.
The omission to notify the Company will not relieve the Company from any liability for indemnification which it may have to Indemnitee
otherwise than under this Agreement.

 

17.   Notices.
Except as otherwise expressly provided herein, all notices and other communications shall have been duly given and shall be effective
(a) when delivered, including via email (except that if the day of delivery is not a business day, then the next business
day), (b) when transmitted via telecopy (or other facsimile device) on a business day during normal business hours to the
number set out below if the sender on the same day sends a confirming copy of such notice by a recognized overnight delivery service
(charges prepaid), (c) the day following the day (except that if such day is not a business day, then the next business day)
on which the same has been delivered prepaid to a reputable national overnight air courier service or (d) the third business
day following the day on which the same is sent by certified or registered mail, postage prepaid, in each case to the respective
parties at the address set forth below, or at such other address as such party hereto may specify by written notice to the other
parties hereto:

 

(i)       if
to Indemnitee, to the address set forth below Indemnitee’s signature hereto; and

 

     

     

    

 

(ii)       if
to the Company, to: Xtant Medical Holdings, Inc., 600 Cruiser Lane, Belgrade, MT 59714, Attention: Carl O’Connell, Chief
Executive Officer, with a copy (which copy shall not constitute notice) to: Ballard Spahr LLP, 1 East Washington Street, Phoenix,
AZ 85004, Attention: Karen McConnell.

 

18.   Counterparts.
This Agreement may be executed in any number of counterparts and signatures may be delivered by facsimile or in electronic format,
each of which may be executed by less than all the parties, each of which shall be enforceable against the parties actually executing
such counterparts and all of which together shall constitute one instrument.

 

19.   Headings;
Titles and Subtitles; Interpretation. The headings, titles and subtitles used in this Agreement are used for convenience only
and are not to be considered in construing or interpreting this Agreement. When a reference is made in this Agreement to a Section
or Article, such reference shall be to a Section or Article of this Agreement unless otherwise indicated. Whenever the words “include,”
“includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words
“without limitation.” The definitions contained in this Agreement are applicable to the singular as well as the plural
forms of such terms and to the masculine as well as to the feminine and neuter genders of such term. Any agreement, instrument
or statute defined or referred to in this Agreement means such agreement, instrument or statute as from time to time amended, modified
or supplemented, including (in the case of agreements or instruments) by waiver or consent and (in the case of statutes) by succession
of comparable successor statutes. Each of the parties has participated in the drafting and negotiation of this Agreement. If an
ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if it is drafted by each of the
parties, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of authorship of any of
the provisions of this Agreement.

 

20.   Third-Party
Beneficiaries. Notwithstanding anything contained in this Agreement to the contrary[, except to the extent provided in Section
2(b)], nothing in this Agreement, expressed or implied, is intended to confer on any Person other than the parties to this Agreement
any rights, remedies, obligations or liabilities under or by reason of this Agreement, and no Person that is not a party to this
Agreement (including any partner, member, shareholder, director, officer, employee or other beneficial owner of any party, in
its own capacity as such or in bringing a derivative action on behalf of a party) shall have any standing as third-party beneficiary
with respect to this Agreement or the transactions contemplated by this Agreement.

 

21.   Governing
Law. This Agreement shall be governed by, construed and enforced in accordance with, and the rights of the parties hereto shall
be governed by, the laws of the State of Delaware, excluding choice-of-law principles of the law of such State that would require
application of the laws of a jurisdiction other than such State.

 

22.   Jurisdiction;
Venue; Enforcement.

 

(a)       If
any action, proceeding or litigation shall be brought in order to enforce any right or remedy under this Agreement, each party
hereto hereby consents and will submit, and will cause each of its subsidiaries or affiliates, as applicable, to submit, to the
jurisdiction of the Court of Chancery of the State of Delaware. Each party hereto hereby irrevocably waives, and will cause its
subsidiaries or affiliates, as applicable, to waive, any objection, including, but not limited to, any objection to the laying
of venue or based on the grounds of forum non conveniens, which they may now or hereafter have to the bringing of any such action,
proceeding or litigation in such jurisdiction. Each party hereto further agrees that they shall not, and shall cause their respective
subsidiaries or affiliates, as applicable, not to, bring any action, proceeding or litigation arising out of this Agreement in
any state or federal court other than the Court of Chancery of the State of Delaware.

 

     

     

    

 

(b)       Each
party hereto irrevocably consents, and will cause each of its subsidiaries or affiliates, as applicable, to consent, to the service
of process of any of the applicable aforementioned courts in any such action, proceeding or litigation by the mailing of copies
thereof by registered or certified mail, postage prepaid, to the address set forth in Section 17, such service to become effective
thirty (30) days after such mailing.

 

(c)       EACH
PARTY HERETO HEREBY WAIVES, AND WILL CAUSE EACH OF ITS SUBSIDIARIES OR AFFILIATES, AS APPLICABLE, TO WAIVE, ANY AND ALL RIGHTS
ANY OF THEM MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY ACTION, PROCEEDING OR LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF,
UNDER OR IN CONNECTION WITH, THIS AGREEMENT.

 

23.   Specific
Performance; Remedies. Each party acknowledges and agrees that the other party would be damaged irreparably if any provision
of this Agreement were not performed in accordance with its specific terms or were otherwise breached. Accordingly, the parties
will be entitled to an injunction or injunctions to prevent breaches of the provisions of this Agreement and to enforce specifically
this Agreement and its provisions in any action or proceeding instituted in the Court of Chancery of the State of Delaware having
jurisdiction over the parties and the matter, in addition to any other remedy to which they may be entitled, at law or in equity.
Except as expressly provided herein, the rights and remedies provided herein are cumulative and not exclusive of any rights or
remedies that the parties hereto would otherwise have. Except as expressly provided herein, nothing herein will be considered an
election of remedies.

 

[signature page follows]

 

     

     

    

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement
on and as of the day and year first above written.

 

	 	COMPANY, AND ON BEHALF OF ITS 
	 	SUBSIDIARIES WITH RESPECT TO 
	 	SECTIONS 1(d) AND 22 OF THIS 
	 	AGREEMENT:
	 	 
	 	XTANT MEDICAL HOLDINGS, INC.
	 	 
	 	By:	 
	 	Name:	 
	 	Title	 
	 	 	 
	 	INDEMNITEE:
	 	 
	 	 
	 	[   ]
	 	 
	 	Address:
	 	[   ]

 

[Signature Page to Indemnification Agreement]

 

     

     

    

 

Exhibit D

 

Form of Investors Rights Agreement

 

    	 	 	 

     

    

  

Investor
Rights Agreement

 

This Investor
Rights Agreement, dated as of [          ], 2018 (this “Agreement”),
by and among Xtant Medical Holdings, Inc. (the “Company”), OrbiMed Royalty Opportunities II, LP (“OrbiMed”),
ROS Acquisition Offshore LP (“ROS” and, together with OrbiMed, the “Investors”) and Park
West Partners International, Limited and Park West Investors Master Fund, Limited (collectively, the “Park West Funds”).

 

WHEREAS, on
January [   ], 2018, the Company, the Investors and the Consenting Noteholders (as defined in the Restructuring
Agreement) entered into a Restructuring and Exchange Agreement (the “Restructuring Agreement”), pursuant to
which the Company, the Investors and the Consenting Noteholders agreed that the Investors would convert certain of the Company
convertible notes they owned into shares of Company common stock (the “Common Stock”), and the Company would
hold a stockholder vote to allow the Investors and the Consenting Noteholders to exchange the remainder of their Company convertible
notes into shares of Common Stock, on the terms and subject to the conditions set forth in the Restructuring Agreement;

 

WHEREAS, the
Company has held the stockholder vote, the Company stockholders have approved (1) the exchange of Company convertible notes held
by the Investors and the Consenting Noteholders for shares of Common Stock and (2) the election of new Company directors, and
the Investors and Consenting Noteholders have exchanged their Company convertible notes for shares of Common Stock; and

 

WHEREAS, it
is a condition to the closing of the transactions contemplated by the Restructuring Agreement that the Company, the Investors
and the Park West Funds enter into this Agreement.

 

NOW, THEREFORE,
in consideration of the foregoing and the agreements contained in this Agreement, and intending to be legally bound by this Agreement,
the Company, the Investors and the Park West Funds agree as follows:

 

Article
I

DEFINITION

 

Capitalized terms
used and not otherwise defined in this Agreement that are defined in the Restructuring Agreement shall have the meanings given
such terms in the Restructuring Agreement. As used in this Agreement, the following terms shall have the respective meanings set
forth in this Article I:

 

“Change of
Control” shall mean, with respect to any Person, as applicable, (a) a merger or consolidation in which such Person is
not the surviving corporation or in which, if such Person is the surviving corporation, the stockholders of such Person immediately
prior to the consummation of such merger or consolidation do not, immediately after consummation of such merger or consolidation,
possess, directly or indirectly through one or more intermediaries, a majority of the voting power of all of the surviving entity’s
outstanding stock and other securities and the power to elect a majority of the members of such Person’s board of directors;
or (b) a transaction or series of related transactions (which may include a tender offer for such Person’s stock or the
issuance, sale or exchange of stock of such Person) if the stockholders of such Person immediately prior to the initiation of
such transaction do not, immediately after consummation of such transaction or any of such related transactions, own, directly
or indirectly through one or more intermediaries, stock or other securities of the entity that possess a majority of the voting
power of all of such Person’s outstanding stock and other securities and the power to elect a majority of the members of
such Person’s board of directors.

 

    	 	 	 

     

    

 

“Indebtedness”
means (i) indebtedness for borrowed money whether or not evidenced by bonds, notes, debentures or other similar instruments, including
purchase money obligations or other obligations relating to the deferred purchase price of property, (ii) obligations as lessee
under leases which have been recorded as capital leases or (iii) obligations under guaranties in respect of indebtedness or obligations
of others of the kind referred to in clauses (i) through (ii) above, as reported in accordance with GAAP; provided that
Indebtedness shall not include (A) trade payables and accrued expenses arising in the ordinary course of business and (B) indebtedness,
obligations under guaranties and other liabilities owed by the Company to its Subsidiaries or among the Company’s Subsidiaries.

 

“Investor
Affiliates” means an Affiliate of either Investor. For the avoidance of doubt, the Company shall not be considered an
Affiliate of either Investor.

 

“New Securities”
means any shares of capital stock of the Company, including Common Stock and preferred shares, whether authorized or not by the
Board or any committee of the Board, and any rights, options, or warrants to purchase shares of capital stock, and securities
of any type whatsoever that are, or may become, convertible, exchangeable or exercisable into capital stock; provided,
however, that the term “New Securities” shall not include: (i) securities issued to employees, consultants,
officers and directors of the Company, pursuant to any arrangement approved by the Board or the Board’s Compensation Committee;
(ii) securities issued to the sellers pursuant to the acquisition of another business entity by the Company by merger, purchase
of substantially all of the assets or shares, or other reorganization whereby the Company will own equity securities of the surviving
or successor corporation; (iii) securities issued in an underwritten registered public offering, provided that the Company
shall have complied with Article III with respect to such securities; (iv) securities issued pursuant to any rights or
agreements, including, without limitation, convertible securities, options and warrants, provided that either (x) the Company
shall have complied with Article III with respect to the initial sale or grant by the Company of such rights or agreements
or (y) such rights or agreements existed on or prior to the Closing Date (it being understood that any modification or amendment
to any such pre-existing right or agreement subsequent to the Closing Date with the effect of increasing the percentage of the
Company's fully-diluted securities underlying such rights agreement shall not be included in this clause (iv)); (v) securities
issued in connection with any stock split, stock dividend or recapitalization by the Company and (vi) any right, option, or warrant
to acquire any security convertible into the securities excluded from the definition of New Securities pursuant to clauses (i)
through (v) above.

 

“Ownership
Percentage” means the percentage equal to (i) the aggregate number of shares of Common Stock held by the Investors,
divided by (ii) the total number of shares of Common Stock then outstanding.

 

    	 	2	 

     

    

 

“Ownership
Threshold” means the Investors and the Investor Affiliates taken together holding in aggregate at least 40% of the Common
Stock.

 

“Reorganization
Event” means (a) any consolidation or merger of the Company with or into another Person or of another Person with or
into the Company, (b) any sale, transfer, lease or conveyance to another Person of the property of the Company as an entirety
or substantially as an entirety, (c) any statutory share exchange of the Company with another Person (other than in connection
with a merger or acquisition), or (d) any tender offer or exchange offer which, in combination with any related transactions,
would result in a Change of Control of the Company (in which case, the Reorganization Event for such purposes shall be all such
transactions taken together).

 

Article
II

GOVERNANCE MATTERS

 

Section 2.1.          Board
Composition.

 

(a)          Concurrently
with the execution of this Agreement, each member of the board of directors of the Company (the “Board”) shall
resign from the Board, effective immediately, and immediately upon the Company Stockholder Approval having been obtained, the
Board shall consist of the individuals set forth on Schedule 1 hereto until the 2018 annual meeting of the Company’s
stockholders or such individual’s earlier resignation, death or removal. After the date hereof,

 

i.            for
so long as the Ownership Threshold is met the Investors shall be entitled to nominate such number of individuals to the Board
constituting a majority of directors,

 

ii.           (1)
for so long as the Ownership Threshold is not met, but the Investors’ Ownership Percentage exceeds 30% of the Common Stock,
then the Investors shall be entitled to nominate the greater of: (x) such number of individuals to the Board in relative proportion
to the Ownership Percentage (rounded down) and (y) three directors, (2) for so long as the Investors’ Ownership Percentage
is in the aggregate at least 20%, but less than 30% of the Common Stock, then the Investors shall be entitled to nominate the
greater of: (x) such number of individuals to the Board in relative proportion to the Ownership Percentage (rounded down) and
(y) two directors, and (3) for so long as the Investors’ Ownership Percentage is in the aggregate at least 10%, but less
than 20% of the Common Stock, then the Investors shall be entitled to nominate the greater of: (x) such number of individuals
to the Board in relative proportion to the Ownership Percentage (rounded down) and (y) one director (each, an “Investor
Designee,” and collectively, the “Investor Designees”).

 

For so long as the Ownership
Threshold is met, (A) the Investors shall be entitled to designate the chairperson of the Board and (B) except as otherwise directed
or agreed by the Investors and to the extent required by applicable listing standards (including any requirements for initial
listing), the Company agrees to cause all members of the Board that are not Investor Designees (other than the chief executive
officer of the Company) to be “independent” as defined in the listing standards of the NYSE American (or other United
States national securities exchange that the Common Stock is listed upon, if any) and applicable law (and all non-Investor Designees
listed on Schedule 1 have agreed to resign if necessary to effectuate the foregoing). The Company, at any annual or special
meeting of stockholders of the Company at which directors are to be elected, subject to the fulfillment of the requirements set
forth in Section 2.1(b), shall nominate the Investor Designees for election to the Board and use all commercially reasonable
efforts to cause the Investor Designees to be elected as directors of the Board.

 

    	 	3	 

     

    

 

(b)          The
Company shall require that all directors comply in all respects with applicable law (including with respect to confidentiality)
and the Company’s corporate governance guidelines, code of business conduct and ethics and confidentiality and trading policies
and guidelines as in effect from time to time. The Investors shall notify the Company of any proposed Investor Designee in writing
no later than the latest date on which the Company stockholders may make nominations to the Board in accordance with the bylaws
of the Company and the Securities Act, together with all information concerning such nominee required to be delivered to the Company
by the bylaws of the Company and such other information reasonably requested by the Company; provided that in each such
case, all such information is generally required to be delivered to the Company by the other outside directors of the Company
(the “Nominee Disclosure Information”); provided, further that in the event the Investors fail
to provide any such notice, the Investor Designee shall be the person then serving as the Investor Designee as long as the Investors
provide the Nominee Disclosure Information to the Company promptly upon request by the Company.

 

(c)          In
the event of the death, disability, resignation or removal of an Investor Designee, the Board will promptly elect to the Board
a replacement director designated by the Investors, subject to the fulfillment of the requirements set forth in Section 2.1(b),
to fill the resulting vacancy, and such individual shall then be deemed an Investor Designee for all purposes under this Agreement.

 

Section 2.2.         Committee
Membership. After the date hereof, and subject to applicable law and the listing standards of the NYSE American (or other
United States national securities exchange that the Common Stock is listed upon, if any), the Company will offer the Investor
Designees an opportunity to, at Investors’ option, either sit on each regular committee of the Board in relative proportion
to the number of Investor Designees on the Board or attend (but not vote) at the meetings of such committee as an observer. If
an Investor Designee fails to satisfy the applicable qualifications under law or stock exchange listing standards to sit on any
committee of the Board, then the Board shall offer such Investor Designee the opportunity to attend (but not vote) at the meetings
of such committee as an observer.

 

Section 2.3.         Compensation
and Benefits. Each of the Investor Designees will be entitled to receive similar compensation, benefits, reimbursement (including
of travel expenses), indemnification and insurance coverage for their service as directors as the other outside directors of the
Company. For so long as the Company maintains directors and officers liability insurance, the Company shall include each Investor
Designee as an “insured” for all purposes under such insurance policy for so long as such Investor Designee is a director
of the Company and for the same period as for other former directors of the Company when such Investor Designee ceases to be a
director of the Company.

 

    	 	4	 

     

    

 

Section 2.4.          Special
Approval Matters.

 

(a)          For
so long as the Ownership Threshold is met, the following matters will require the approval of the Investors to proceed with such
a transaction (excluding any such transaction between the Company and its wholly owned Subsidiaries or among the Company’s
wholly owned Subsidiaries):

 

i.          the
issuance of any New Securities;

 

ii.         the
incurrence of any Indebtedness in excess of $250,000 in the aggregate during any fiscal year (other than refinancings of existing
Indebtedness);

 

iii.        the
sale, transfer or other disposition of assets or businesses of the Company or its Subsidiaries with a value in excess of $250,000
in the aggregate during any fiscal year (other than sales of inventory or supplies in the ordinary course of business, sales of
obsolete assets (excluding real estate), sale-leaseback transactions and accounts receivable factoring transactions);

 

iv.        the
acquisition of any assets or properties (in one or more related transactions) for cash or otherwise for an amount in excess of
$250,000 in the aggregate during any fiscal year (other than acquisitions of inventory and equipment in the ordinary course of
business);

 

v.         capital
expenditures in excess of $125,000 individually (or in the aggregate if related to an integrated program of activities) or in
excess of $1,500,000 in the aggregate during any fiscal year;

 

vi.        the
approval of the Company's annual budget;

 

vii.       the
hiring or termination of the Company’s chief executive officer;

 

viii.      the
appointment or removal of the chairperson of the Board; and

 

ix.         making,
or permitting any Subsidiary to make, loans to, investments in, or purchasing, or permitting any Subsidiary to purchase, any stock
or other securities in another corporation, joint venture, partnership or other entity in excess of $250,000 in the aggregate
during any fiscal year.

 

(b)          For
so long as the Ownership Threshold is met, increasing the size of the Board beyond seven (7) directors will require the approval
of a majority of the Investor Designees.

 

Section 2.5.         Books
and Records; Access. For so long as the Investors’ Ownership Percentage is 10% or more, the Company shall permit the
Investors and their respective designated representatives (that, for the avoidance of doubt, cannot include any transferee (other
than an Investor Affiliate) or customer of the Company), at reasonable times and upon reasonable prior notice to the Company,
to review the books and records of the Company and the Company’s Subsidiaries and to discuss the affairs, finances and condition
of the Company or any of the Company’s Subsidiaries with the officers of the Company or any such Subsidiary of the Company.

 

    	 	5	 

     

    

 

Article
III

RIGHT OF FIRST OFFER

 

Section 3.1.          Right
to Purchase. Subject to the terms and conditions set forth in this Article III, the Investors and the Park West Funds
have the right to purchase from the Company an amount of any New Securities that the Company may, from time to time, propose to
issue and sell equal to applicable Ownership Percentage of each of the Investors and the Park West Funds (calculated as of the
date of delivery of such Notice of Issuance), to the extent such New Securities are actually issued.

 

Section 3.2.          Notice
of Issuance. In the event the Company proposes to undertake an issuance of New Securities, it shall give the Investors and
the Park West Funds written notice of its intention, describing the type of New Securities and the price and terms upon which
the Company proposes to issue such New Securities (a “Notice of Issuance”). The Investors and the Park West
Funds shall have thirty (30) days from the date of delivery of a Notice of Issuance thereto to agree to purchase a portion of
the New Securities equal to the applicable Ownership Percentage of each of the Investors and the Park West Funds (calculated as
of the date of delivery of such Notice of Issuance), for the price and upon the terms specified in the Notice of Issuance. On
or prior to the expiration of such thirty (30) day period, the Investors and/or the Park West Funds, as the case may be, shall
deliver a written notice to the Company stating the quantity of New Securities to be purchased by the Investors and/or the Park
West Funds (the “ROFO Response”), which written notice shall be binding on the Company, on the one hand, and
the Investors and/or the Park West Funds, as applicable, on the other hand, subject only to the completion of the issuance of
New Securities described in the applicable Notice of Issuance; provided, however, that, notwithstanding anything herein
to the contrary, no notice shall be required to be delivered to the Park West Funds and the Park West Funds shall have no rights
under this Article III with respect to an issuance of New Securities that the Investors elect not to purchase any of. If
either the Investors or the Park West Funds fail to provide a ROFO Response within the required thirty (30) day period, such party
shall be deemed to have elected not to purchase any of the New Securities described in the Notice of Issuance.

 

Section 3.3.          Sale
of New Securities. The Company shall have one hundred twenty (120) days following the earlier of (i) the expiration of the
thirty (30) day period described in Section 3.2 and (ii) the delivery of the ROFO Response to sell or enter into an
agreement to sell the New Securities with respect to which the Investors’ and/or the Park West Funds’ right to purchase
was not (or was deemed not to be) exercised, at a price and upon terms no more favorable than those specified in the Notice of
Issuance. If the Company does not sell such New Securities or enter into an agreement to sell such New Securities within such
one hundred twenty (120)-day period, then the Company shall not thereafter issue or sell any New Securities without first offering
such New Securities to the Investors and the Park West Funds in the manner provided in Section 3.2.

 

    	 	6	 

     

    

 

Article
IV

TERMINATION

 

Other than the termination
provisions applicable to particular Sections of this Agreement that are specifically provided elsewhere in this Agreement, this
Agreement shall terminate (a) upon the mutual written agreement of the Company and the Investors, (b) upon written notice
of either the Company or the Investors at such time as the Investors’ Ownership Percentage is less than 10% or (c) upon
written notice of the Investors to the Company. Article III of this Agreement shall terminate as to the Park West Funds
at such time as the Park West Funds’ aggregate Ownership Percentage is less than 8.5%.

 

Article
V

SECTION 16B-3

 

So long as the Investors
have the right to designate an Investor Designee, the Board shall take such action as is reasonably necessary to cause the exemption
of any acquisition or disposition of Common Stock or New Securities by the Investors from the liability provisions of Section
16(b) of the Exchange Act pursuant to Rule 16b-3 so long as such exemption is not prohibited by applicable law. For the avoidance
of doubt, the Company shall pass one or more exemptive resolutions by the Board each time there is any purported acquisition or
disposition of Common Stock or New Securities by the Investors with requisite specificity to exempt from the liability provisions
of Section 16(b) of the Exchange Act pursuant to Rule 16b-3.

 

Article
VI

MISCELLANEOUS

 

Section 6.1.          Governing
Law. This Agreement shall be governed by, construed and enforced in accordance with, and the rights of the parties hereto
shall be governed by, the laws of the State of New York, excluding choice-of-law principles of the law of such State that would
require application of the laws of a jurisdiction other than such State.

 

Section 6.2.          Jurisdiction;
Venue; Enforcement.

 

(a)          If
any action, proceeding or litigation shall be brought in order to enforce any right or remedy under this Agreement, each party
hereto hereby consents and will submit, and will cause each of their respective Subsidiaries, and, in the case of the Investors,
the Investor Affiliates, and, in the case of the Park West Funds, the Park West Funds and their Affiliates, to submit, to the
jurisdiction of any state or federal court of competent jurisdiction sitting in the State of New York, borough of Manhattan, on
the date of this Agreement. Each party hereto hereby irrevocably waives, and will cause each of their respective Subsidiaries,
and, in the case of the Investors, the Investor Affiliates, and, in the case of the Park West Funds, the Park West Funds and their
Affiliates, to waive, any objection, including, but not limited to, any objection to the laying of venue or based on the grounds
of forum non conveniens, which they may now or hereafter have to the bringing of any such action, proceeding or litigation in
such jurisdiction. Each party hereto further agrees that they shall not, and shall cause their respective Subsidiaries, and, in
the case of the Investors, the Investor Affiliates, and, in the case of the Park West Funds, the Park West Funds and their Affiliates,
not to, bring any action, proceeding or litigation arising out of this Agreement in any state or federal court other than any
state or federal court of competent jurisdiction sitting within the area comprising the Southern District of New York on the date
of this Agreement.

 

    	 	7	 

     

    

 

(b)          Each
party hereto irrevocably consents, and will cause each of their respective Subsidiaries, and, in the case of the Investors, the
Investor Affiliates, to consent, to the service of process of any of the applicable aforementioned courts in any such action,
proceeding or litigation by the mailing of copies thereof by registered or certified mail, postage prepaid, to the address set
forth in Section 6.6, such service to become effective thirty (30) days after such mailing.

 

(c)          EACH
PARTY HERETO HEREBY WAIVES, AND WILL CAUSE EACH OF THEIR RESPECTIVE SUBSIDIARIES, AND, IN THE CASE OF THE INVESTORS, THE INVESTOR
AFFILIATES, AND, IN THE CASE OF THE PARK WEST FUNDS, THE PARK WEST FUNDS AND THEIR AFFILIATES, TO WAIVE, ANY AND ALL RIGHTS ANY
OF THEM MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY ACTION, PROCEEDING OR LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF,
UNDER OR IN CONNECTION WITH, THIS AGREEMENT.

 

Section 6.3.          Successors
and Assigns. Neither this Agreement nor any of the rights, interests or obligations under this Agreement may be assigned or
delegated, in whole or in part, by operation of law or otherwise, by any Investor or any Park West Fund without the prior written
consent of the Company or its successors, and any such assignment without such prior written consent shall be null and void; provided,
however, that no assignment shall limit the assignor’s obligations hereunder. Subject to the preceding sentence,
this Agreement (and the rights, duties and obligations of the parties to this Agreement) will be binding upon, inure to the benefit
of, and be enforceable by, the parties hereto and their respective successors and assigns.

 

Section 6.4.         No
Third-Party Beneficiaries. Notwithstanding anything contained in this Agreement to the contrary, nothing in this Agreement,
expressed or implied, is intended to confer on any Person other than the parties to this Agreement any rights, remedies, obligations
or liabilities under or by reason of this Agreement, and no Person that is not a party to this Agreement (including any partner,
member, shareholder, director, officer, employee or other beneficial owner of any party, in its own capacity as such or in bringing
a derivative action on behalf of a party) shall have any standing as third-party beneficiary with respect to this Agreement or
the transactions contemplated by this Agreement.

 

Section 6.5.          Entire
Agreement. This Agreement, the Restructuring Agreement and the other documents delivered pursuant to the Restructuring Agreement
(including the Registration Rights Agreement, as defined therein), constitute the full and entire understanding and agreement
between and among the parties with regard to the subjects of this Agreement and such other agreements and documents. All Schedules,
Exhibits and Annexes attached to this Agreement constitute a part of this Agreement and are incorporated herein for all purposes.

 

    	 	8	 

     

    

 

Section 6.6.          Notices.
Except as otherwise expressly provided herein, all notices and other communications shall have been duly given and shall be effective
(a) when delivered, including via email (except that if the day of delivery is not a Business Day, then the next Business
Day), (b) when transmitted via telecopy (or other facsimile device) on a Business Day during normal business hours to the
number set out below if the sender on the same day sends a confirming copy of such notice by a recognized overnight delivery service
(charges prepaid), (c) the day following the day (except that if such day is not a Business Day, then the next Business Day)
on which the same has been delivered prepaid to a reputable national overnight air courier service, or (d) the third Business
Day following the day on which the same is sent by certified or registered mail, postage prepaid, in each case to the respective
parties at the address set forth below, or at such other address as such party hereto may specify by written notice to the other
parties hereto:

 

i.            if
to the Investors, to: the Investors, c/o OrbiMed Advisors LLC, 601 Lexington Avenue, 54th Floor, New York, NY 10022, Attention:
Matthew Rizzo, Partner, and Michael Eggenberg, Managing Director, with a copy (which copy shall not constitute notice) to: Covington
& Burling LLP, 620 Eighth Avenue, The New York Times Building, New York, NY 10018, Attention: Peter Schwartz, Esq.;

 

ii.          if
to the Park West Funds, to the address indicated on their signature page to this Agreement;

 

iii.         if
to the Company, to: Xtant Medical Holdings, Inc., 600 Cruiser Lane, Belgrade, MT 59714, Attention: Carl O’Connell, Chief
Executive Officer, with a copy (which copy shall not constitute notice) to: Ballard Spahr LLP, 1 East Washington Street, Phoenix,
AZ 85004, Attention: Karen McConnell; and

 

iv.         if
to the Reorganized Company, to: Xtant Medical Holdings, Inc., 600 Cruiser Lane, Belgrade, MT 59714, Attention: Carl O’Connell,
Chief Executive Officer.

 

Section 6.7.          No
Waiver of Remedies; Remedies Cumulative. No failure or delay on the part of any party hereto in exercising any right, power
or privilege hereunder and no course of dealing between the Company or its Subsidiaries, on the one hand, and the Investors and
the Investor Affiliates or the Park West Funds and their Affiliates, on the other hand, shall operate as a waiver thereof; nor
shall any single or partial exercise of any right, power or privilege hereunder preclude any other or further exercise thereof
or the exercise of any other right, power or privilege hereunder. The rights and remedies provided herein are cumulative and not
exclusive of any rights or remedies that the parties hereto would otherwise have. No notice to or demand on the Company or its
Subsidiaries in any case shall entitle the Company or its Subsidiaries to any other or further notice or demand in similar or
other circumstances or constitute a waiver of the rights of the other parties hereto to any other or further action in any circumstances
without notice or demand.

 

Section 6.8.          Amendments
and Waivers of Terms. Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived
(either generally or in a particular instance and either retroactively or prospectively), only if such amendment or waiver is
in writing and signed, in the case of an amendment, by the Company and the Investors or, in the case of a waiver, by the party
against whom the waiver is to be effective. Any amendment or waiver effected in accordance with this paragraph shall be binding
upon the Investors and the Company. Notwithstanding the foregoing, until the Park West Funds’ aggregate Ownership Percentage
is less than 8.5%, no amendment with respect to the rights and obligations set forth in Article III or that otherwise treats
the Park West Funds in an adverse manner shall be effective without the prior written consent of the Park West Funds.

 

    	 	9	 

     

    

 

Section 6.9.          Counterparts.
This Agreement may be executed in any number of counterparts and signatures may be delivered by facsimile or in electronic format,
each of which may be executed by less than all the parties, each of which shall be enforceable against the parties actually executing
such counterparts and all of which together shall constitute one instrument.

 

Section 6.10.         Severability.
If any provision of this Agreement becomes or is determined by a court of competent jurisdiction to be illegal, invalid, unenforceable
or void, portions of such provision, or such provision in its entirety, to the extent necessary, shall be severed from this Agreement
and the remaining provisions (or portion of the provision) shall remain in full force and effect and shall be construed without
giving effect to the illegal, invalid, unenforceable or void provisions (or portions thereof).

 

Section 6.11.         Titles
and Subtitles; Interpretation. The titles and subtitles used in this Agreement are used for convenience only and are not to
be considered in construing or interpreting this Agreement. When a reference is made in this Agreement to a Section, Article,
Schedule or Annex, such reference shall be to a Section, Article, Schedule or Annex of this Agreement unless otherwise indicated.
Whenever the words “include,” “includes” or “including” are used in this Agreement, they shall
be deemed to be followed by the words “without limitation.” The definitions contained in this Agreement are applicable
to the singular as well as the plural forms of such terms and to the masculine as well as to the feminine and neuter genders of
such term. Any agreement, instrument or statute defined or referred to in this Agreement means such agreement, instrument or statute
as from time to time amended, modified or supplemented, including (in the case of agreements or instruments) by waiver or consent
and (in the case of statutes) by succession of comparable successor statutes. Each of the parties has participated in the drafting
and negotiation of this Agreement. If an ambiguity or question of intent or interpretation arises, this Agreement shall be construed
as if it is drafted by each of the parties, and no presumption or burden of proof shall arise favoring or disfavoring any party
by virtue of authorship of any of the provisions of this Agreement. For purposes of this Agreement, the Investors and the Park
West Funds shall not be deemed to be Affiliates of the Company.

 

[signature
page follows]

 

    	 	10	 

     

    

 

IN WITNESS WHEREOF,
the parties have executed this Investor Rights Agreement as of the date first above written.

 

	 	COMPANY:
	 	 
	 	XTANT MEDICAL HOLDINGS, INC.
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

[Signature Page to Investor Rights Agreement]

 

    	 	 	 

     

    

 

	 	INVESTORS:
	 	 
	 	ORBIMED ROYALTY OPPORTUNITIES II, LP
	 	 
	 	By OrbiMed ROF II LLC,
	 	its General Partner
	 	 
	 	By OrbiMed Advisors LLC,
	 	its Managing Member
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 
	 	ROS ACQUISITION OFFSHORE LP
	 	 
	 	By OrbiMed Advisors LLC, solely in its
	 	capacity as Investment Manager
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

[Signature Page to Investor Rights Agreement]

 

    	 	 	 

     

    

 

	 	PARK WEST FUNDS:
	 	 
	 	PARK WEST INVESTORS MASTER FUND, LIMITED
	 	 
	 	By: Park West Asset Management LLC
	 	Its: Investment Manager
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 
	 	PARK WEST PARTNERS INTERNATIONAL, LIMITED
	 	 
	 	By: Park West Asset Management LLC
	 	Its: Investment Manager
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 
	 	Address for Notices:

 

[Signature Page to Investor Rights Agreement]

 

    	 	 	 

     

    

 

Schedule 1

Directors

 

		·	Matthew Rizzo

		·	Michael Eggenberg

		·	Jeffrey Peters

		·	John K. Bakewell

		·	Michael Mainelli

		·	Robert McNamara

 

     

     

    

 

Exhibit E

 

Form of Preliminary Proxy Statement

 

     

     

    

 

Exhibit F

 

Registration Rights Agreement

 

     

     

    

 

REGISTRATION RIGHTS AGREEMENT

 

[●]

 

[●]

 

[●]

 

[●]

 

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 conversion
or exchange, as the case may be, of the Notes (as defined below), and pursuant to the Private Placement (as defined below), in
each case, in accordance with the terms set forth in the Restructuring and Exchange Agreement among the Company, OrbiMed Royalty
Opportunities II, LP, ROS Acquisition Offshore LP and the Consenting Noteholders parties thereto, dated January [ ], 2018 (the
“Restructuring Agreement”). To induce the Exchange Parties to enter into the Restructuring Agreement and to
satisfy the Company’s obligations thereunder, the holders of the Notes 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.

 

     

     

    

 

“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.

 

“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.

 

“Notes”
means the 2015 Notes, 2016 Notes and 2017 Notes, in each case, as defined in the Restructuring Agreement.

 

“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.

 

“Registrable
Securities” means the Common Stock issued to the Exchange Parties pursuant to (i) the transactions described in the Restructuring
Agreement upon conversion and/or exchange of Notes, as the case may be, and (ii) the Private Placement, and, in each case, any
securities for which such shares have been exchanged, and any security issued with respect thereto upon any stock dividend, split
or similar event; 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.

 

    	 	- 2 -	 

     

    

 

“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.

 

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”).

 

    	 	- 3 -	 

     

    

 

(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.

 

(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).

 

    	 	- 4 -	 

     

    

 

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

 

(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:

 

    	 	- 5 -	 

     

    

 

(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.

 

(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).

 

    	 	- 6 -	 

     

    

 

(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.

 

    	 	- 7 -	 

     

    

 

(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

 

(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.

 

    	 	- 8 -	 

     

    

 

(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.

 

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.

 

    	 	- 9 -	 

     

    

 

(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.

 

    	 	- 10 -	 

     

    

 

(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).

 

(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.

 

    	 	- 11 -	 

     

    

 

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.

 

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 (determined on an as-converted basis); 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:

 

    	 	- 12 -	 

     

    

 

(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.

 

    	 	- 13 -	 

     

    

 

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]

 

    	 	- 14 -	 

     

    

 

	 	Very truly yours,
	 	 
	 	Company:
	 	 
	 	Xtant Medical Holdings, Inc.
	 	 
	 	By:	 
	 	 	Name: 
	 	 	Title: 

 

[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: 	 
	 	 	Name: 
	 	 	Title: 
	 	 
	 	ROS ACQUISITION OFFSHORE LP
	 	 
	 	By OrbiMed Advisors LLC, solely in its
	 	capacity as Investment Manager
	 	 
	 	By: 	 
	 	 	Name: 
	 	 	Title: 

 

[Signature Page to Registration Rights Agreement]

 

     

     

    

 

	 	TELEMETRY SECURITIES, L.L.C.
	 	 
	 	By: 	 
	 	 	Name: 
	 	 	Title: 

 

[Signature Page to Registration Rights Agreement]

 

     

     

    

 

	 	BRUCE FUND, INC.
	 	 	 
	 	By: 	 
	 	 	Name: 
	 	 	Title: 

 

[Signature Page to Registration Rights Agreement]

 

     

     

    

 

	 	PARK WEST INVESTORS MASTER FUND, LIMITED
	 	 
	 	By: Park West Asset Management LLC
	 	Its: Investment Manager
	 	 
	 	By: 	 
	 	 	Name: 
	 	 	Title: 
	 	 	 
	 	PARK WEST PARTNERS INTERNATIONAL, LIMITED
	 	 
	 	By: Park West Asset Management LLC
	 	Its: Investment Manager
	 	 	 
	 	By: 	 
	 	 	Name: 
	 	 	Title: 

 

[Signature Page to Registration Rights Agreement]

 

     

     

    

 

ANNEX A

 

     

     

    

 

Exhibit G

 

Form of
Second Amended and Restated Bylaws

 

    	 	 	 

     

    

 

SECOND AMENDED
AND RESTATED BYLAWS OF

XTANT MEDICAL
HOLDINGS, INC.

 

Article
I

 

Meetings of Stockholders

 

Section 1.1.          Annual
Meetings. If required by applicable law, an annual meeting of stockholders shall be held for the election of directors either
at such date, time and place, if any, either within or without the State of Delaware, or by means of remote communication, as may
be designated by resolution of the Board of Directors from time to time. Any other proper business may be transacted at the annual
meeting. The corporation may postpone, reschedule, adjourn, recess or cancel any annual meeting of stockholders previously scheduled.

 

Section 1.2.          Special
Meetings. Special meetings of stockholders for any purpose or purposes may be called at any time by the Board of Directors,
by the Chairman of the Board of Directors, or by the Chief Executive Officer, but such special meetings may not be called by any
other person or persons. Business transacted at any special meeting of stockholders shall be limited to the purposes stated in
the notice. The corporation may postpone, reschedule, adjourn, recess or cancel any special meeting of stockholders previously
scheduled. Any special meeting may be held either at a place, within or without the State of Delaware,
or by means of remote communication, as may be designated by resolution of the Board of Directors from time to time.

 

Section 1.3.          Notice
of Meetings. Whenever stockholders are required or permitted to take any action at a meeting, a notice of the meeting shall
be given that shall state the place, if any, date and hour of the meeting, the means of remote communications, if any, by which
stockholders and proxy holders may be deemed to be present in person and vote at such meeting, the record date for determining
the stockholders entitled to vote at the meeting (if such date is different from the record date for stockholders entitled to notice
of the meeting) and, in the case of a special meeting, the purpose or purposes for which the meeting is called. Unless otherwise
provided by law, the certificate of incorporation or these bylaws, the notice of any meeting shall be given not less than ten (10)
nor more than sixty (60) days before the date of the meeting to each stockholder entitled to vote at the meeting as of the record
date for determining the stockholders entitled to notice of the meeting. If mailed, such notice shall be deemed to be given when
deposited in the United States mail, postage prepaid, directed to the stockholder at such stockholder's address as it appears on
the records of the corporation.

 

Section 1.4.          Adjournments.
Any meeting of stockholders, annual or special, may adjourn from time to time to reconvene at the same or some other place, and
notice need not be given of any such adjourned meeting if the time and place thereof are announced at the meeting at which the
adjournment is taken. At the adjourned meeting the corporation may transact any business which might have been transacted at the
original meeting. If the adjournment is for more than thirty (30) days, a notice of the adjourned meeting shall be given to each
stockholder of record entitled to vote at the meeting. If after the adjournment a new record date for determination of stockholders
entitled to vote is fixed for the adjourned meeting, the Board of Directors shall fix as the record date for determining stockholders
entitled to notice of such adjourned meeting the same or an earlier date as that fixed for determination of stockholders entitled
to vote at the adjourned meeting, and shall give notice of the adjourned meeting to each stockholder of record as of the record
date so fixed for notice of such adjourned meeting.

 

    	 	 	 

     

    

 

Section 1.5.          Quorum.
Except as otherwise provided by law, the certificate of incorporation or these bylaws, at each meeting of stockholders the presence
in person or by proxy of the holders of one-third of the outstanding shares of stock entitled to vote at the meeting shall be necessary
and sufficient to constitute a quorum. In the absence of a quorum, the stockholders so present may, by a majority in voting power
thereof, adjourn the meeting from time to time in the manner provided in Section 1.4 of these bylaws until a quorum shall attend.
Shares of its own stock belonging to the corporation or to another corporation, if a majority of the shares entitled to vote in
the election of directors of such other corporation is held, directly or indirectly, by the corporation, shall neither be entitled
to vote nor be counted for quorum purposes; provided, however, that the foregoing shall not limit the right of the corporation
or any subsidiary of the corporation to vote stock, including but not limited to its own stock, held by it in a fiduciary capacity.

 

Section 1.6.          Organization.
Meetings of stockholders shall be presided over by the Chairman of the Board, if any, or in his or her absence by the Chief Executive
Officer, if any, or in his or her absence by the President, or in his or her absence by a Vice President, or in the absence of
the foregoing persons by a chairman designated by the Board of Directors, or in the absence of such designation by a chairman chosen
at the meeting. The Secretary shall act as secretary of the meeting, but in his or her absence the chairman of the meeting may
appoint any person to act as secretary of the meeting.

 

Section 1.7.          Voting;
Proxies . Except as otherwise provided by or pursuant to the provisions of the certificate of incorporation, each stockholder
entitled to vote at any meeting of stockholders shall be entitled to one vote for each share of stock held by such stockholder
which has voting power upon the matter in question. Each stockholder entitled to vote at a meeting of stockholders or to express
consent to corporate action in writing without a meeting may authorize another person or persons to act for such stockholder by
proxy, but no such proxy shall be voted or acted upon after three years from its date, unless the proxy provides for a longer period.
A proxy shall be irrevocable if it states that it is irrevocable and if, and only as long as, it is coupled with an interest sufficient
in law to support an irrevocable power. A stockholder may revoke any proxy which is not irrevocable by attending the meeting and
voting in person or by delivering to the Secretary of the corporation a revocation of the proxy or a new proxy bearing a later
date. Voting at meetings of stockholders need not be by written ballot. At all meetings of stockholders for the election of directors
at which a quorum is present a plurality of the votes cast shall be sufficient to elect. All other elections and questions presented
to the stockholders at a meeting at which a quorum is present shall, unless otherwise provided by the certificate of incorporation,
these bylaws, the rules or regulations of any stock exchange applicable to the corporation, or applicable law or pursuant to any
regulation applicable to the corporation or its securities, be decided by the affirmative vote of the holders of a majority in
voting power of the shares of stock of the corporation which are present in person or by proxy and entitled to vote thereon.

 

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Section 1.8.          Fixing
Date for Determination of Stockholders of Record.

 

(a)          In
order that the corporation may determine the stockholders entitled to notice of any meeting of stockholders or any adjournment
thereof, the Board of Directors may fix a record date, which record date shall not precede the date upon which the resolution fixing
the record date is adopted by the Board of Directors, and which record date shall, unless otherwise required by law, not be more
than sixty (60) nor less than ten (10) days before the date of such meeting. If the Board of Directors so fixes a date, such date
shall also be the record date for determining the stockholders entitled to vote at such meeting unless the Board of Directors determines,
at the time it fixes such record date, that a later date on or before the date of the meeting shall be the date for making such
determination. If no record date is fixed by the Board of Directors, the record date for determining stockholders entitled to notice
of or to vote at a meeting of stockholders shall be at the close of business on the day next preceding the day on which notice
is given, or, if notice is waived, at the close of business on the day next preceding the day on which the meeting is held. A determination
of stockholders of record entitled to notice of or to vote at a meeting of stockholders shall apply to any adjournment of the meeting;
provided, however, that the Board of Directors may fix a new record date for determination of stockholders entitled to vote at
the adjourned meeting, and in such case shall also fix as the record date for stockholders entitled to notice of such adjourned
meeting the same or an earlier date as that fixed for determination of stockholders entitled to vote in accordance herewith at
the adjourned meeting.

 

(b)          In
order that the corporation may determine the stockholders entitled to receive payment of any dividend or other distribution or
allotment of any rights, or entitled to exercise any rights in respect of any change, conversion or exchange of stock or for the
purpose of any other lawful action, the Board of Directors may fix a record date, which record date shall not precede the date
upon which the resolution fixing the record date is adopted, and which record date shall not be more than sixty (60) days prior
to such action. If no such record date is fixed, the record date for determining stockholders for any such purpose shall be at
the close of business on the day on which the Board of Directors adopts the resolution relating thereto.

 

Section 1.9.          List
of Stockholders Entitled to Vote . The officer who has charge of the stock ledger shall prepare and make, at least ten (10)
days before every meeting of stockholders, a complete list of the stockholders entitled to vote at the meeting (provided, however,
if the record date for determining the stockholders entitled to vote is less than ten (10) days before the date of the meeting,
the list shall reflect the stockholders entitled to vote as of the tenth day before the meeting date), arranged in alphabetical
order, and showing the address of each stockholder and the number of shares registered in the name of each stockholder. Such list
shall be open to the examination of any stockholder, for any purpose germane to the meeting at least ten (10) days prior to the
meeting (i) on a reasonably accessible electronic network, provided that the information required to gain access to such list is
provided with the notice of meeting or (ii) during ordinary business hours at the principal place of business of the corporation.
If the meeting is to be held at a place, then a list of stockholders entitled to vote at the meeting shall be produced and kept
at the time and place of the meeting during the whole time thereof and may be examined by any stockholder who is present. If the
meeting is to be held solely by means of remote communication, then the list shall also be open to the examination of any stockholder
during the whole time of the meeting on a reasonably accessible electronic network, and the information required to access such
list shall be provided with the notice of the meeting. Except as otherwise provided by law, the stock ledger shall be the only
evidence as to who are the stockholders entitled to examine the list of stockholders required by this Section 1.9 or to vote in
person or by proxy at any meeting of stockholders.

 

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Section 1.10.         Action
By Written Consent of Stockholders; Record Date.

 

(a)          Unless
otherwise restricted by the certificate of incorporation, any action required or permitted to be taken at any annual or special
meeting of the stockholders may be taken without a meeting, without prior notice and without a vote, if a consent or consents in
writing, setting forth the action so taken, shall be signed by the holders of outstanding stock having not less than the minimum
number of votes that would be necessary to authorize or take such action at a meeting at which all shares entitled to vote thereon
were present and voted and shall be delivered to the corporation by delivery to its registered office in the State of Delaware,
its principal place of business, or an officer or agent of the corporation having custody of the book in which minutes of proceedings
of stockholders are recorded. Delivery made to the corporation's registered office shall be by hand or by certified or registered
mail, return receipt requested. Prompt notice of the taking of the corporate action without a meeting by less than unanimous written
consent shall, to the extent required by law, be given to those stockholders who have not consented in writing and who, if the
action had been taken at a meeting, would have been entitled to notice of the meeting if the record date for notice of such meeting
had been the date that written consents signed by a sufficient number of holders to take the action were delivered to the corporation.

 

(b)          In
order that the corporation may determine the stockholders entitled to consent to corporate action in writing without a meeting,
the Board of Directors may fix a record date, which record date shall not precede the date upon which the resolution fixing the
record date is adopted by the Board of Directors, and which date shall not be more than ten (10) days after the date upon which
the resolution fixing the record date is adopted by the Board of Directors. Any stockholder of record seeking to have the stockholders
authorize or take corporate action by written consent shall, by written notice to the Secretary, request that the Board of Directors
fix a record date. The Board of Directors shall promptly, but in all events within ten (10) days after the date on which such written
notice is received, adopt a resolution fixing the record date (unless a record date has previously been fixed by the Board of Directors
pursuant to the first sentence of this Section 1.10(b)). If no record date has been fixed by the Board of Directors pursuant to
the first sentence of this Section 1.10(b) or otherwise within ten (10) days after the date on which such written notice is received,
the record date for determining stockholders entitled to consent to corporate action in writing without a meeting, when no prior
action by the Board of Directors is required by applicable law, shall be the first date after the expiration of such ten (10) day
time period on which a signed written consent setting forth the action taken or proposed to be taken is delivered to the corporation
by delivery to its registered office in Delaware, its principal place of business, or to any officer or agent of the corporation
having custody of the book in which proceedings of meetings of stockholders are recorded. If no record date has been fixed by the
Board of Directors pursuant to the first sentence of this Section 1.10(b), the record date for determining stockholders entitled
to consent to corporate action in writing without a meeting if prior action by the Board of Directors is required by applicable
law shall be at the close of business on the date on which the Board of Directors adopts the resolution taking such prior action.

 

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(c)          In
the event of the delivery, in the manner provided by this Section 1.10 and applicable law, to the corporation of written consent
or consents to take corporate action and/or any related revocation or revocations, the corporation may engage independent inspectors
of elections for the purpose of performing promptly a ministerial review of the validity of the consents and revocations. If the
corporation engages such inspectors of election, for the purpose of permitting the inspectors to perform such review, no action
by written consent and without a meeting shall be effective until such inspectors have completed their review, determined that
the requisite number of valid and unrevoked consents delivered to the corporation in accordance with this Section 1.10 and applicable
law have been obtained to authorize or take the action specified in the consents, and certified such determination for entry in
the records of the corporation kept for the purpose of recording the proceedings of meetings of stockholders. Nothing contained
in this Section 1.10(c) shall in any way be construed to suggest or imply that the Board of Directors or any stockholder shall
not be entitled to contest the validity of any consent or revocation thereof, whether before or after such certification by the
independent inspectors, or to take any other action (including, without limitation, the commencement, prosecution or defense of
any litigation with respect thereto, and the seeking of injunctive relief in such litigation).

 

(d)          Every
written consent shall bear the date of signature of each stockholder who signs the consent and no written consent shall be effective
to take the corporate action referred to therein unless, within sixty (60) days after the earliest dated written consent received
in accordance with this Section 1.10, a valid written consent or valid written consents signed by a sufficient number of stockholders
to take such action are delivered to the corporation in the manner prescribed in this Section 1.10 and applicable law, and not
revoked.

 

Section 1.11.         Inspectors
of Election. The corporation may, and shall if required by law, in advance of any meeting of stockholders, appoint one or more
inspectors of election, who may be employees of the corporation, to act at the meeting or any adjournment thereof and to make a
written report thereof. The corporation may designate one or more persons as alternate inspectors to replace any inspector who
fails to act. In the event that no inspector so appointed or designated is able to act at a meeting of stockholders, the person
presiding at the meeting shall appoint one or more inspectors to act at the meeting. Each inspector, before entering upon the discharge
of his or her duties, shall take and sign an oath to execute faithfully the duties of inspector with strict impartiality and according
to the best of his or her ability. The inspector or inspectors so appointed or designated shall (i) ascertain the number of shares
of capital stock of the corporation outstanding and the voting power of each such share, (ii) determine the shares of capital stock
of the corporation represented at the meeting and the validity of proxies and ballots, (iii) count all votes and ballots, (iv)
determine and retain for a reasonable period a record of the disposition of any challenges made to any determination by the inspectors,
and (v) certify their determination of the number of shares of capital stock of the corporation represented at the meeting and
such inspectors’ count of all votes and ballots. Such certification and report shall specify such other information as may
be required by law. In determining the validity and counting of proxies and ballots cast at any meeting of stockholders of the
corporation, the inspectors may consider such information as is permitted by applicable law. No person who is a candidate for an
office at an election may serve as an inspector at such election.

 

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Section 1.12.         Conduct
of Meetings. The date and time of the opening and the closing of the polls for each matter upon which the stockholders will
vote at a meeting shall be announced at the meeting by the person presiding over the meeting. The Board of Directors may adopt
by resolution such rules and regulations for the conduct of the meeting of stockholders as it shall deem appropriate. Except to
the extent inconsistent with such rules and regulations as adopted by the Board of Directors, the person presiding over any meeting
of stockholders shall have the right and authority to convene and (for any or no reason) to recess and/or adjourn the meeting,
to prescribe such rules, regulations and procedures and to do all such acts as, in the judgment of such presiding person, are appropriate
for the proper conduct of the meeting. Such rules, regulations or procedures, whether adopted by the Board of Directors or prescribed
by the presiding person of the meeting, may include, without limitation, the following: (i) the establishment of an agenda or order
of business for the meeting; (ii) rules and procedures for maintaining order at the meeting and the safety of those present; (iii)
limitations on attendance at or participation in the meeting to stockholders entitled to vote at the meeting, their duly authorized
and constituted proxies or such other persons as the presiding person of the meeting shall determine; (iv) restrictions on entry
to the meeting after the time fixed for the commencement thereof; and (v) limitations on the time allotted to questions or comments
by participants. The presiding person at any meeting of stockholders, in addition to making any other determinations that may be
appropriate to the conduct of the meeting, shall, if the facts warrant, determine and declare to the meeting that a matter or business
was not properly brought before the meeting and if such presiding person should so determine, such presiding person shall so declare
to the meeting and any such matter or business not properly brought before the meeting shall not be transacted or considered. Unless
and to the extent determined by the Board of Directors or the person presiding over the meeting, meetings of stockholders shall
not be required to be held in accordance with the rules of parliamentary procedure.

 

Section 1.13.         Notice
of Stockholder Business and Nominations.

 

(A)         Annual
Meetings of Stockholders. (1) Nominations of persons for election to the Board of Directors of the corporation and the proposal
of other business to be considered by the stockholders may be made at an annual meeting of stockholders only (a) pursuant to the
corporation’s notice of meeting (or any supplement thereto), (b) by or at the direction of the Board of Directors or any
committee thereof or (c) by any stockholder of the corporation who was a stockholder of record of the corporation at the time the
notice provided for in this Section 1.13 is delivered to the Secretary of the corporation, who is entitled to vote at the meeting
and who complies with the notice procedures set forth in this Section 1.13.

 

    	 	6	 

     

    

 

(2)         For
any nominations or other business to be properly brought before an annual meeting by a stockholder pursuant to clause (c) of paragraph
(A)(1) of this Section 1.13, the stockholder must have given timely notice thereof in writing to the Secretary of the corporation
and any such proposed business (other than the nominations of persons for election to the Board of Directors) must constitute a
proper matter for stockholder action. To be timely, a stockholder’s notice shall be delivered to the Secretary at the principal
executive offices of the corporation not later than the close of business on the ninetieth (90th)
day, nor earlier than the close of business on the one hundred twentieth (120th) day, prior to the first anniversary of the preceding
year’s annual meeting (provided, however, that in the event that the date of the annual meeting is more than thirty (30)
days before or more than seventy (70) days after such anniversary date, notice by the stockholder must be so delivered not earlier
than the close of business on the one hundred twentieth (120th) day prior to such annual meeting and not later than the close of
business on the later of the ninetieth (90th) day prior to such annual meeting or the tenth
(10th) day following the day on which public announcement of the date of such meeting is first
made by the corporation). In no event shall the public announcement of an adjournment or postponement of an annual meeting commence
a new time period (or extend any time period) for the giving of a stockholder’s notice as described above. Such stockholder’s
notice shall set forth: (a) as to each person whom the stockholder proposes to nominate for election as a director (i) all information
relating to such person that is required to be disclosed in solicitations of proxies for election of directors in an election contest,
or is otherwise required, in each case pursuant to and in accordance with Section 14(a) of the Securities Exchange Act of 1934,
as amended (the “Exchange Act”), and the rules and regulations promulgated thereunder, and (ii) such person’s
written consent to being named in the proxy statement as a nominee and to serving as a director if elected; (b) as to any other
business that the stockholder proposes to bring before the meeting, a brief description of the business desired to be brought before
the meeting, the text of the proposal or business (including the text of any resolutions proposed for consideration and in the
event that such business includes a proposal to amend the bylaws of the corporation, the language of the proposed amendment), the
reasons for conducting such business at the meeting and any material interest in such business of such stockholder and the beneficial
owner, if any, on whose behalf the proposal is made; and (c) as to the stockholder giving the notice and the beneficial owner,
if any, on whose behalf the nomination or proposal is made (i) the name and address of such stockholder, as they appear on the
corporation’s books, and of such beneficial owner, (ii) the class or series and number of shares of capital stock of the
corporation which are owned beneficially and of record by such stockholder and such beneficial owner, (iii) a description of any
agreement, arrangement or understanding with respect to the nomination or proposal between or among such stockholder and/or such
beneficial owner, any of their respective affiliates or associates, and any others acting in concert with any of the foregoing,
including, in the case of a nomination, the nominee, (iv) a description of any agreement, arrangement or understanding (including
any derivative or short positions, profit interests, options, warrants, convertible securities, stock appreciation or similar rights,
hedging transactions, and borrowed or loaned shares) that has been entered into as of the date of the stockholder’s notice
by, or on behalf of, such stockholder and such beneficial owners, whether or not such instrument or right shall be subject to settlement
in underlying shares of capital stock of the corporation, the effect or intent of which is to mitigate loss to, manage risk or
benefit of share price changes for, or increase or decrease the voting power of, such stockholder or such beneficial owner, with
respect to securities of the corporation, (v) a representation that the stockholder is a holder of record of stock of the corporation
entitled to vote at such meeting and intends to appear in person or by proxy at the meeting to propose such business or nomination,
(vi) a representation whether the stockholder or the beneficial owner, if any, intends or is part of a group which intends (a)
to deliver a proxy statement and/or form of proxy to holders of at least the percentage of the corporation’s outstanding
capital stock required to approve or adopt the proposal or elect the nominee and/or (b) otherwise to solicit proxies or votes from
stockholders in support of such proposal or nomination, and (vii) any other information relating to such stockholder and beneficial
owner, if any, required to be disclosed in a proxy statement or other filings required to be made in connection with solicitations
of proxies for, as applicable, the proposal and/or for the election of directors in an election contest pursuant to and in accordance
with Section 14(a) of the Exchange Act and the rules and regulations promulgated thereunder. The foregoing notice requirements
of this paragraph (A) of this Section 1.13 shall be deemed satisfied by a stockholder with respect to business other than a nomination
if the stockholder has notified the corporation of his, her or its intention to present a proposal at an annual meeting in compliance
with applicable rules and regulations promulgated under the Exchange Act and such stockholder’s proposal has been included
in a proxy statement that has been prepared by the corporation to solicit proxies for such annual meeting. The corporation may
require any proposed nominee to furnish such other information as the corporation may reasonably require to determine the eligibility
of such proposed nominee to serve as a director of the corporation.

 

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(3)         Notwithstanding
anything in the second sentence of paragraph (A)(2) of this Section 1.13 to the contrary, in the event that the number of directors
to be elected to the Board of Directors of the corporation at the annual meeting is increased effective after the time period for
which nominations would otherwise be due under paragraph (A)(2) of this Section 1.13 and there is no public announcement by the
corporation naming the nominees for the additional directorships at least one hundred (100) days prior to the first anniversary
of the preceding year’s annual meeting, a stockholder’s notice required by this Section 1.13 shall also be considered
timely, but only with respect to nominees for the additional directorships, if it shall be delivered to the Secretary at the principal
executive offices of the corporation not later than the close of business on the tenth (10th)
day following the day on which such public announcement is first made by the corporation.

 

(B)         Special
Meetings of Stockholders. Only such business shall be conducted at a special meeting of stockholders as shall have been brought
before the meeting pursuant to the corporation’s notice of meeting. Nominations of persons for election to the Board of Directors
may be made at a special meeting of stockholders at which directors are to be elected pursuant to the corporation’s notice
of meeting (1) by or at the direction of the Board of Directors or any committee thereof or (2) provided that the Board of Directors
has determined that directors shall be elected at such meeting, by any stockholder of the corporation who is a stockholder of record
at the time the notice provided for in this Section 1.13 is delivered to the Secretary of the corporation, who is entitled to vote
at the meeting and upon such election and who complies with the notice procedures set forth in this Section 1.13. In the event
the corporation calls a special meeting of stockholders for the purpose of electing one or more directors to the Board of Directors,
any such stockholder entitled to vote in such election of directors may nominate a person or persons (as the case may be) for election
to such position(s) as specified in the corporation’s notice of meeting, if the stockholder’s notice required by paragraph
(A)(2) of this Section 1.13 shall be delivered to the Secretary at the principal executive offices of the corporation not earlier
than the close of business on the one hundred twentieth (120th) day prior to such special
meeting and not later than the close of business on the later of the ninetieth (90th) day
prior to such special meeting or the tenth (10th) day following the day on which public announcement
is first made of the date of the special meeting and of the nominees proposed by the Board of Directors to be elected at such meeting.
In no event shall the public announcement of an adjournment or postponement of a special meeting commence a new time period (or
extend any time period) for the giving of a stockholder’s notice as described above.

 

    	 	8	 

     

    

 

(C)         General.
(1) Except as otherwise expressly provided in any applicable rule or regulation promulgated under the Exchange Act, only such persons
who are nominated in accordance with the procedures set forth in this Section 1.13 shall be eligible to be elected at an annual
or special meeting of stockholders of the corporation to serve as directors and only such business shall be conducted at a meeting
of stockholders as shall have been brought before the meeting in accordance with the procedures set forth in this Section 1.13.
Except as otherwise provided by law, the chairman of the meeting shall have the power and duty (a) to determine whether a nomination
or any business proposed to be brought before the meeting was made or proposed, as the case may be, in accordance with the procedures
set forth in this Section 1.13 (including whether the stockholder or beneficial owner, if any, on whose behalf the nomination or
proposal is made or solicited (or is part of a group which solicited) or did not so solicit, as the case may be, proxies or votes
in support of such stockholder’s nominee or proposal in compliance with such stockholder’s representation as required
by clause (A)(2)(c)(vi) of this Section 1.13) and (b) if any proposed nomination or business was not made or proposed in compliance
with this Section 1.13, to declare that such nomination shall be disregarded or that such proposed business shall not be transacted.
Notwithstanding the foregoing provisions of this Section 1.13, unless otherwise required by law, if the stockholder (or a qualified
representative of the stockholder) does not appear at the annual or special meeting of stockholders of the corporation to present
a nomination or proposed business, such nomination shall be disregarded and such proposed business shall not be transacted, notwithstanding
that proxies in respect of such vote may have been received by the corporation. For purposes of this Section 1.13, to be considered
a qualified representative of the stockholder, a person must be a duly authorized officer, manager or partner of such stockholder
or must be authorized by a writing executed by such stockholder or an electronic transmission delivered by such stockholder to
act for such stockholder as proxy at the meeting of stockholders and such person must produce such writing or electronic transmission,
or a reliable reproduction of the writing or electronic transmission, at the meeting of stockholders.

 

(2)         For
purposes of this Section 1.13, “public announcement” shall include disclosure in a press release reported by the Dow
Jones News Service, Associated Press or other national news service or in a document publicly filed by the corporation with the
Securities and Exchange Commission pursuant to Section 13, 14 or 15(d) of the Exchange Act and the rules and regulations promulgated
thereunder.

 

(3)         Notwithstanding
the foregoing provisions of this Section 1.13, a stockholder shall also comply with all applicable requirements of the Exchange
Act and the rules and regulations promulgated thereunder with respect to the matters set forth in this Section 1.13; provided however,
that any references in these bylaws to the Exchange Act or the rules and regulations promulgated thereunder are not intended to
and shall not limit any requirements applicable to nominations or proposals as to any other business to be considered pursuant
to this Section 1.13 (including paragraphs (A)(1)(c) and (B) hereof), and compliance with paragraphs (A)(1)(c) and (B) of this
Section 1.13 shall be the exclusive means for a stockholder to make nominations or submit other business (other than, as provided
in the penultimate sentence of (A)(2), business other than nominations brought properly under and in compliance with Rule 14a-8
of the Exchange Act, as may be amended from time to time). Nothing in this Section 1.13 shall be deemed to affect any rights (a)
of stockholders to request inclusion of proposals or nominations in the corporation’s proxy statement pursuant to applicable
rules and regulations promulgated under the Exchange Act or (b) of the holders of any series of preferred stock to elect directors
pursuant to any applicable provisions of the certificate of incorporation.

 

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Article
II

 

Board of Directors

 

Section 2.1.          Number;
Qualifications. The Board of Directors shall consist of one or more members, the number thereof to be determined from time
to time by resolution of the Board of Directors. Directors need not be stockholders. If for any
cause, any director(s) shall not have been elected at an annual meeting, such director(s) may be elected as soon thereafter as
convenient at a special meeting of the stockholders called for that purpose in the manner provided in these bylaws. No decrease
in the authorized number of directors constituting the entire Board of Directors shall shorten the term of any incumbent director.

 

Section 2.2.          Election;
Resignation; Vacancies. Directors shall be elected to hold office until the next annual meeting of stockholders and until the
election and qualification of such directors’ respective successors, subject to such directors’ earlier death, resignation,
disqualification or removal. Any director may resign at any time upon notice to the corporation. Unless otherwise provided by law
or the certificate of incorporation, any newly created directorship or any vacancy occurring in the Board of Directors for any
cause may be filled by either (i) the affirmative vote of the holders of a majority in voting power of the shares of stock of the
corporation or (ii) a majority of the remaining members of the Board of Directors, even though such majority is less than a quorum,
and each director so elected shall hold office until the expiration of the term of office of the director whom he or she has replaced
or until his or her successor is elected and qualified.

 

Section 2.3.          Regular
Meetings. Regular meetings of the Board of Directors may be held at such places within or without the State of Delaware and
at such times as the Board of Directors may from time to time determine. Notice of regular meetings
need not be given if the date, times and places thereof are fixed by resolution of the Board

 

Section 2.4.          Special
Meetings. Special meetings of the Board of Directors may be held at any time or place within or without the State of Delaware
whenever called by the Chairman of the Board of Directors, the Chief Executive Officer or a majority of the Board of Directors.
Notice of a special meeting of the Board of Directors shall be given by the person or persons calling the meeting at least twenty-four
hours before the special meeting.

 

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Section 2.5.          Telephonic
Meetings Permitted . Members of the Board of Directors, or any committee designated by the Board of Directors, may participate
in a meeting thereof by means of conference telephone or other communications equipment by means of which all persons participating
in the meeting can hear each other, and participation in a meeting pursuant to this by-law shall constitute presence in person
at such meeting.

 

Section 2.6.          Quorum;
Vote Required for Action . At all meetings of the Board of Directors the directors entitled to cast a majority of the votes
of the whole Board of Directors shall constitute a quorum for the transaction of business. If a
quorum shall fail to attend any meeting, a majority of those present may adjourn the meeting to another place, date or time without
further notice thereof. Except in cases in which the certificate of incorporation, these bylaws or applicable law otherwise
provides, a majority of the votes entitled to be cast by the directors present at a meeting at which a quorum is present shall
be the act of the Board of Directors.

 

Section 2.7.          Organization.
Meetings of the Board of Directors shall be presided over by the Chairman of the Board, if any, or in his or her absence by a chairman
chosen at the meeting. The Secretary shall act as secretary of the meeting, but in his or her absence the chairman of the meeting
may appoint any person to act as secretary of the meeting.

 

Section 2.8.          Action
by Unanimous Consent of Directors. Unless otherwise restricted by the certificate of incorporation or these bylaws, any action
required or permitted to be taken at any meeting of the Board of Directors, or of any committee thereof, may be taken without a
meeting if all members of the Board of Directors or such committee, as the case may be, consent thereto in writing or by electronic
transmission and the writing or writings or electronic transmissions are filed with the minutes of proceedings of the board or
committee in accordance with applicable law.

 

Section 2.9.          Fees
and Compensation of Directors. Unless otherwise restricted by the certificate of incorporation or these bylaws, the Board of
Directors shall have the authority to fix the compensation of directors, including without limitation compensation for services
as members of committees of the Board of Directors. No such compensation shall preclude any director from serving the corporation
in any other capacity and receiving compensation therefor.

 

Article
III

 

Committees

 

Section 3.1.          Committees.
The Board of Directors may designate one or more committees, each committee to consist of one or more of the directors of the corporation.
The Board of Directors may designate one or more directors as alternate members of any committee, who may replace any absent or
disqualified member at any meeting of the committee. In the absence or disqualification of a member of the committee, the member
or members thereof present at any meeting and not disqualified from voting, whether or not he, she or they constitute a quorum,
may unanimously appoint another member of the Board of Directors to act at the meeting in place of any such absent or disqualified
member. Any such committee, to the extent permitted by law and to the extent provided in the resolution of the Board of Directors,
shall have and may exercise all the powers and authority of the Board of Directors in the management of the business and affairs
of the corporation, and may authorize the seal of the corporation to be affixed to all papers which may require it.

 

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Section 3.2.          Committee
Rules. Unless the Board of Directors otherwise provides, each committee designated by the Board of Directors may make, alter
and repeal rules for the conduct of its business. In the absence of such rules each committee shall conduct its business in the
same manner as the Board of Directors conducts its business pursuant to Article II of these bylaws.

 

Article
IV

 

Officers

 

Section 4.1.          Officers;
Election; Qualifications; Term of Office; Resignation; Removal; Vacancies . The Board of Directors shall elect a Chief Executive
Officer, a President, a Chief Financial Officer, a Treasurer and a Secretary, and it may, if it so determines, choose a Chairman
of the Board from among its members. The Board of Directors may also choose one or more Vice Presidents, one or more Assistant
Secretaries, one or more Assistant Treasurers and such other officers as it shall from time to time deem necessary or desirable.
Each such officer shall hold office until the first meeting of the Board of Directors after the annual meeting of stockholders
next succeeding his or her election, and until his or her successor is elected and qualified or until his or her earlier resignation
or removal. Any officer may resign at any time upon written notice to the corporation. The Board of Directors may remove any officer
with or without cause at any time, but such removal shall be without prejudice to the contractual rights of such officer, if any,
with the corporation. Any number of offices may be held by the same person. Any vacancy occurring in any office of the corporation
by death, resignation, removal or otherwise may be filled for the unexpired portion of the term by the Board of Directors at any
regular or special meeting.

 

Section 4.2.          Powers
and Duties of Officers. The officers of the corporation shall have such powers and duties in the management of the corporation
as may be prescribed in a resolution by the Board of Directors and, to the extent not so provided, as generally pertain to their
respective offices, subject to the control of the Board of Directors.

 

Section 4.3.          Appointing
Attorneys and Agents; Voting Securities of Other Entities . Unless otherwise provided by resolution adopted by the Board of
Directors, the Chairman of the Board, the Chief Executive Officer, the President or any Vice President may from time to time appoint
an attorney or attorneys or agent or agents of the corporation, in the name and on behalf of the corporation, to cast the votes
which the corporation may be entitled to cast as the holder of stock or other securities in any other corporation or other entity,
any of whose stock or other securities may be held by the corporation, at meetings of the holders of the stock or other securities
of such other corporation or other entity, or to consent in writing, in the name of the corporation as such holder, to any action
by such other corporation or other entity, and may instruct the person or persons so appointed as to the manner of casting such
votes or giving such consents, and may execute or cause to be executed in the name and on behalf of the corporation and under its
corporate seal or otherwise, all such written proxies or other instruments as he or she may deem necessary or proper. Any of the
rights set forth in this Section 4.3 which may be delegated to an attorney or agent may also be exercised directly by the Chairman
of the Board, the Chief Executive Officer, the President or any Vice President.

 

    	 	12	 

     

    

 

Article
V

 

Stock

 

Section 5.1.          Certificates.
The shares of the corporation shall be represented by certificates, provided that the Board of Directors may provide by resolution
or resolutions that some or all of any or all classes or series of stock shall be uncertificated shares. Any such resolution shall
not apply to shares represented by a certificate until such certificate is surrendered to the corporation. Every holder of stock
represented by certificates shall be entitled to have a certificate signed by or in the name of the corporation by the Chairman
of the Board of Directors, if any, or the President or a Vice President, and by the Treasurer or an Assistant Treasurer, or the
Secretary or an Assistant Secretary, of the corporation certifying the number of shares owned by such holder in the corporation.
Any of or all the signatures on the certificate may be a facsimile. In case any officer, transfer agent or registrar who has signed
or whose facsimile signature has been placed upon a certificate shall have ceased to be such officer, transfer agent, or registrar
before such certificate is issued, it may be issued by the corporation with the same effect as if such person were such officer,
transfer agent, or registrar at the date of issue.

 

Section 5.2.          Lost,
Stolen or Destroyed Stock Certificates; Issuance of New Certificates. The corporation may issue a new certificate of stock
in the place of any certificate theretofore issued by it, alleged to have been lost, stolen or destroyed, upon
the making of an affidavit of that fact by the person claiming the certificate of stock to be lost, stolen or destroyed,
and the corporation may require the owner of the lost, stolen or destroyed certificate, or such owner’s legal representative,
to give the corporation a bond sufficient to indemnify it against any claim that may be made against it on account of the alleged
loss, theft or destruction of any such certificate or the issuance of such new certificate.

 

Section 5.3.          Agreements
with Stockholders. The corporation will have power to enter into and perform any agreement
with any number of stockholders of any one or more classes of stock of the corporation to restrict the transfer of shares of stock
of the corporation of any one or more classes owned by such stockholders in any manner not prohibited by the Delaware General Corporation
Law (the “DGCL”).

 

Section 5.4.          Declaration
of Dividends. Dividends on the capital stock of the corporation, subject to the provisions of the certificate of incorporation
and applicable law, if any, may be declared by the Board of Directors pursuant to law at any regular or special meeting. Dividends
may be paid in cash, in property, or in shares of the capital stock, subject to the provisions of the certificate of incorporation
and applicable law.

 

    	 	13	 

     

    

 

Article
VI

 

Indemnification and Advancement
of Expenses

 

Section 6.1.          Right
to Indemnification. The corporation shall indemnify and hold harmless, to the fullest extent permitted by applicable law as
it presently exists or may hereafter be amended, any person (a “Covered Person”) who was or is made or is threatened
to be made a party or is otherwise involved in any action, suit or proceeding, whether civil, criminal, administrative or investigative
(a “proceeding”), by reason of the fact that he or she, or a person for whom he or she is the legal representative,
is or was a director or officer of the corporation or, while a director or officer of the corporation, is or was serving at the
request of the corporation as a director, officer, employee or agent of another corporation or of a partnership, joint venture,
trust, enterprise or nonprofit entity, including service with respect to employee benefit plans, against all liability and loss
suffered and expenses (including attorneys’ fees, judgments, fines, ERISA excise taxes and penalties and amounts paid in
settlement) reasonably incurred by such Covered Person. Such indemnification shall continue as
to a Covered Person who has ceased to be a director or officer of the corporation and shall inure to the benefit of such Covered
Person’s heirs, executors and administrators. Notwithstanding the preceding sentence, except as otherwise provided
in Section 6.3, the corporation shall be required to indemnify a Covered Person in connection with a proceeding (or part thereof)
commenced by such Covered Person only if the commencement of such proceeding (or part thereof) by the Covered Person was authorized
in the specific case by the Board of Directors of the corporation.

 

Section 6.2.          Advancement
of Expenses. The corporation shall to the fullest extent not prohibited by applicable law pay the expenses (including attorneys’
fees) incurred by a Covered Person in defending any proceeding in advance of its final disposition, provided, however,
that, to the extent required by law, such payment of expenses in advance of the final disposition of the proceeding shall be made
only upon receipt of an undertaking by the Covered Person to repay all amounts advanced if it should be ultimately determined that
the Covered Person is not entitled to be indemnified under this Article VI or otherwise.

 

Section 6.3.          Claims.
If a claim for indemnification under this Article VI (following the final disposition of such proceeding) is not paid in full within
sixty days after the corporation has received a claim therefor from the Covered Person, or if a claim for any advancement of expenses
under this Article VI is not paid in full within thirty days after the corporation has received a statement or statements requesting
such amounts to be advanced, the Covered Person shall thereupon (but not before) be entitled to file suit to recover the unpaid
amount of such claim. If successful in whole or in part, the Covered Person shall be entitled to be paid the expense of prosecuting
such claim to the fullest extent permitted by law. In any such action, the corporation shall have the burden of proving that the
Covered Person is not entitled to the requested indemnification or advancement of expenses under applicable law.

 

Section 6.4.          Nonexclusivity
of Rights. The rights conferred on any Covered Person by this Article VI shall not be exclusive of any other rights which such
Covered Person may have or hereafter acquire under any statute, provision of the certificate of incorporation, these bylaws, agreement,
vote of stockholders or disinterested directors or otherwise.

 

    	 	14	 

     

    

 

Section 6.5.          Other
Sources. The corporation’s obligation, if any, to indemnify or to advance expenses to any Covered Person who was or is
serving at its request as a director, officer, employee or agent of another corporation, partnership, joint venture, trust, enterprise
or nonprofit entity shall be reduced by any amount such Covered Person may collect as indemnification or advancement of expenses
from such other corporation, partnership, joint venture, trust, enterprise or non-profit enterprise.

 

Section 6.6.          Amendment
or Repeal. Any right to indemnification or to advancement of expenses of any Covered Person arising hereunder shall not be
eliminated or impaired by an amendment to or repeal of these bylaws after the occurrence of the act or omission that is the subject
of the civil, criminal, administrative or investigative action, suit or proceeding for which indemnification or advancement of
expenses is sought.

 

Section 6.7.          Effect
of Determination. Neither the failure of the corporation (whether by its directors who are
not parties to such action, a committee of such directors, independent legal counsel or its stockholders) to have made a determination
prior to the commencement of such suit that indemnification of the Covered Person is proper in the circumstances because the Covered
Person has met the standard of conduct for entitled to indemnification under applicable law, nor an actual determination by the
corporation (whether by its directors who are not parties to such action, a committee of such directors, independent legal counsel
or its stockholders) that the Covered Person has not met such standard of conduct, shall create a presumption that the Indemnitee
has not met such standard of conduct or, in the case of such a suit brought by the Covered Person, be a defense to such suit.

 

Section 6.8.          Insurance.
The corporation may purchase and maintain insurance on behalf of any person who is or was a director or officer of the corporation
or, while a director or officer of the corporation, is or was serving at the request of the corporation as a director, officer,
employee or agent of another corporation or of a partnership, joint venture, trust, enterprise or nonprofit entity, including service
with respect to employee benefit plans, against any liability asserted against him or her and incurred
by him or her in any such capacity, or arising out of his or her status as such, whether or not the corporation would have the
power to indemnify him or her against such liability under the provisions of the DGCL.

 

Section 6.9.          Other
Indemnification and Advancement of Expenses. This Article VI shall not limit the right of the corporation, to the extent and
in the manner permitted by law, to indemnify and to advance expenses to persons other than Covered Persons when and as authorized
by appropriate corporate action, or to provide greater rights to indemnification and advancement
of expenses than those provided in this Article VI to any Covered Person

 

Article
VII

 

Miscellaneous

 

Section 7.1.          Fiscal
Year. The fiscal year of the corporation shall be determined by resolution of the Board of Directors.

 

    	 	15	 

     

    

 

Section 7.2.          Seal.
The corporate seal shall have the name of the corporation inscribed thereon and shall be in such form as may be approved from time
to time by the Board of Directors.

 

Section 7.3.          Manner
of Notice. Except as otherwise provided herein or permitted by applicable law, notices to directors and stockholders shall
be in writing and delivered personally, mailed to the directors or stockholders at their addresses appearing on the books of the
corporation or, if specifically consented to by the stockholder as described in Section 7.4, by sending such notice by electronic
transmission. Without limiting the manner by which notice otherwise may be given effectively to stockholders, and except as prohibited
by applicable law, any notice to stockholders given by the corporation under any provision of applicable law, the certificate of
incorporation, or these bylaws shall be effective if given by a single written notice to stockholders who share an address if consented
to by the stockholders at that address to whom such notice is given. Any such consent shall be revocable by the stockholder by
written notice to the corporation. Any stockholder who fails to object in writing to the corporation, within 60 days of having
been given written notice by the corporation of its intention to send the single notice permitted under this Section 7.3, shall
be deemed to have consented to receiving such single written notice. Notice to directors may be given by telecopier, telephone
or other means of electronic transmission.

 

Section 7.4.          Electronic
Transmission. Without limiting the manner by which notice otherwise may be given effectively to stockholders, any notice to
stockholders given by the Corporation under any provision of the DGCL, the certificate of incorporation, or these bylaws shall
be effective if given by a form of electronic transmission consented to by the stockholder to whom the notice is given in accordance
with Section 232 of the DGCL. Any such consent shall be revocable by the stockholder by written notice to the corporation. Any
such consent shall be deemed revoked if (a) the corporation is unable to deliver by electronic transmission two consecutive notices
given by the corporation in accordance with such consent and (b) such inability becomes known to the Secretary or an Assistant
Secretary of the corporation or to the transfer agent, or other person responsible for the giving of notice; provided, however,
the inadvertent failure to treat such inability as a revocation shall not invalidate any meeting or other action. Notice given
pursuant to this Section 7.4 shall be deemed given: (i) if by facsimile telecommunication, when directed to a number at which the
stockholder has consented to receive notice; (ii) if by electronic mail, when directed to an electronic mail address at which the
stockholder has consented to receive notice; (iii) if by a posting on an electronic network together with separate notice to the
stockholder of such specific posting, upon the later of such posting and the giving of such separate notice; and (iv) if by any
other form of electronic transmission, when directed to the stockholder.

 

Section 7.5.          Waiver
of Notice of Meetings of Stockholders, Directors and Committees. Any waiver of notice, given by the person entitled to notice,
whether before or after the time stated therein, shall be deemed equivalent to notice. Attendance of a person at a meeting shall
constitute a waiver of notice of such meeting, except when the person attends a meeting for the express purpose of objecting, at
the beginning of the meeting, to the transaction of any business because the meeting is not lawfully called or convened. Neither
the business to be transacted at nor the purpose of any regular or special meeting of the stockholders, directors, or members of
a committee of directors need be specified in a waiver of notice.

 

    	 	16	 

     

    

 

Section 7.6.          Form
of Records. Any records maintained by the corporation in the regular course of its business, including its stock ledger, books
of account, and minute books, may be kept on, or by means of, or be in the form of, any information storage device or method, provided
that the records so kept can be converted into clearly legible paper form within a reasonable time.

 

Section 7.7.          Severability.
If any provision of these bylaws shall be held to be invalid, illegal, unenforceable or in conflict with the provisions of the
certificate of incorporation, then such provision shall, to the fullest extent permitted by law, be enforced to the maximum extent
possible consistent with such holding and the remaining provisions of these bylaws (including without limitation, all portions
of any section of these bylaws containing any such provision held to be invalid, illegal, unenforceable or in conflict with the
certificate of incorporation, that are not themselves invalid, illegal, unenforceable or in conflict with the certificate of incorporation)
shall remain in full force and effect.

 

Section 7.8.          Amendment
of Bylaws. These bylaws may be altered, amended or repealed, and new bylaws made, by the Board of Directors. Shareholders may
also make additional bylaws and may alter and repeal any bylaws to the extent permitted by applicable law.

 

    	 	17EX-10.1

 Exhibit 10.1 

THIRD AMENDED AND RESTATED 

LIMITED LIABILITY COMPANY AGREEMENT 

OF 
 VISTA PROPPANTS AND
LOGISTICS, LLC 
 Dated as of [●], 2018 
  

 
  

THE LIMITED LIABILITY COMPANY UNITS OF VISTA PROPPANTS AND LOGISTICS, LLC HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION OR ANY OTHER APPLICABLE SECURITIES LAWS AND ARE BEING SOLD IN RELIANCE UPON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND SUCH LAWS. SUCH
UNITS MUST BE ACQUIRED FOR INVESTMENT ONLY AND MAY NOT BE OFFERED FOR SALE, PLEDGED, HYPOTHECATED, SOLD, ASSIGNED OR TRANSFERRED AT ANY TIME EXCEPT IN COMPLIANCE WITH (I) THE SECURITIES ACT, ANY APPLICABLE SECURITIES LAWS OF ANY STATE OR OTHER
JURISDICTION, AND ANY OTHER APPLICABLE SECURITIES LAWS; (II) THE TERMS AND CONDITIONS OF THIS THIRD AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT; AND (III) ANY OTHER TERMS AND CONDITIONS AGREED TO IN WRITING BETWEEN THE
MANAGING MEMBER AND THE APPLICABLE MEMBER. THE UNITS MAY NOT BE TRANSFERRED OF RECORD EXCEPT IN COMPLIANCE WITH SUCH LAWS; THIS LIMITED LIABILITY COMPANY AGREEMENT; AND ANY OTHER TERMS AND CONDITIONS AGREED TO IN WRITING BY THE MANAGING MEMBER AND
THE APPLICABLE MEMBER. THEREFORE, PURCHASERS AND OTHER TRANSFEREES OF SUCH UNITS WILL BE REQUIRED TO BEAR THE RISK OF THEIR INVESTMENT OR ACQUISITION FOR AN INDEFINITE PERIOD OF TIME. 

 Table of Contents 

 

							
	 ARTICLE I DEFINITIONS
	  	 	3	 
			
	 Section 1.01.
	 	Definitions	  	 	3	 
		
	 ARTICLE II FORMATION, TERM, PURPOSE AND POWERS
	  	 	10	 
			
	 Section 2.01.
	 	Formation	  	 	10	 
			
	 Section 2.02.
	 	Name	  	 	10	 
			
	 Section 2.03.
	 	Term	  	 	11	 
			
	 Section 2.04.
	 	Offices	  	 	11	 
			
	 Section 2.05.
	 	Agent for Service of Process; Existence and Good Standing; Foreign Qualification	  	 	11	 
			
	 Section 2.06.
	 	Business Purpose	  	 	11	 
			
	 Section 2.07.
	 	Powers of the Company	  	 	11	 
			
	 Section 2.08.
	 	Members; Reclassification; Admission of New Members	  	 	12	 
			
	 Section 2.09.
	 	Resignation	  	 	12	 
			
	 Section 2.10.
	 	Investment Representations of Members	  	 	12	 
		
	 ARTICLE III MANAGEMENT
	  	 	12	 
			
	 Section 3.01.
	 	Managing Member	  	 	12	 
			
	 Section 3.02.
	 	Compensation	  	 	13	 
			
	 Section 3.03.
	 	Expenses	  	 	13	 
			
	 Section 3.04.
	 	Officers	  	 	13	 
			
	 Section 3.05.
	 	Authority of Members	  	 	14	 
			
	 Section 3.06.
	 	Action by Written Consent or Ratification	  	 	14	 
		
	 ARTICLE IV DISTRIBUTIONS
	  	 	15	 
			
	 Section 4.01.
	 	Distributions	  	 	15	 
			
	 Section 4.02.
	 	Liquidation Distribution	  	 	16	 
			
	 Section 4.03.
	 	Limitations on Distribution	  	 	16	 
		
	 ARTICLE V CAPITAL CONTRIBUTIONS; CAPITAL ACCOUNTS; TAX ALLOCATIONS; TAX
MATTERS
	  	 	16	 
			
	 Section 5.01.
	 	Initial Capital Contributions	  	 	16	 
			
	 Section 5.02.
	 	No Additional Capital Contributions	  	 	16	 
			
	 Section 5.03.
	 	Capital Accounts	  	 	16	 
			
	 Section 5.04.
	 	Allocations of Profits and Losses	  	 	17	 
			
	 Section 5.05.
	 	Special Allocations	  	 	17	 
			
	 Section 5.06.
	 	Tax Allocations	  	 	18	 

  
 i 

							
			
	 Section 5.07.
	 	Tax Advances	  	 	18	 
			
	 Section 5.08.
	 	Tax Matters	  	 	19	 
			
	 Section 5.09.
	 	Other Allocation Provisions	  	 	19	 
		
	 ARTICLE VI BOOKS AND RECORDS; REPORTS
	  	 	20	 
			
	 Section 6.01.
	 	Books and Records	  	 	20	 
		
	 ARTICLE VII COMPANY UNITS
	  	 	21	 
			
	 Section 7.01.
	 	Units	  	 	21	 
			
	 Section 7.02.
	 	Register	  	 	22	 
			
	 Section 7.03.
	 	Registered Members	  	 	22	 
		
	 ARTICLE VIII TRANSFER RESTRICTIONS
	  	 	23	 
			
	 Section 8.01.
	 	Member Transfers	  	 	23	 
			
	 Section 8.02.
	 	Mandatory Exchanges	  	 	23	 
			
	 Section 8.03.
	 	Encumbrances	  	 	24	 
			
	 Section 8.04.
	 	Further Restrictions	  	 	24	 
			
	 Section 8.05.
	 	Rights of Assignees	  	 	25	 
			
	 Section 8.06.
	 	Admissions, Resignations and Removals	  	 	25	 
			
	 Section 8.07.
	 	Admission of Assignees as Substitute Members	  	 	26	 
			
	 Section 8.08.
	 	Resignation and Removal of Members	  	 	26	 
		
	 ARTICLE IX DISSOLUTION, LIQUIDATION AND TERMINATION
	  	 	26	 
			
	 Section 9.01.
	 	No Dissolution	  	 	26	 
			
	 Section 9.02.
	 	Events Causing Dissolution	  	 	26	 
			
	 Section 9.03.
	 	Distribution upon Dissolution	  	 	27	 
			
	 Section 9.04.
	 	Time for Liquidation	  	 	28	 
			
	 Section 9.05.
	 	Termination	  	 	28	 
			
	 Section 9.06.
	 	Claims of the Members	  	 	28	 
			
	 Section 9.07.
	 	Survival of Certain Provisions	  	 	28	 
		
	 ARTICLE X LIABILITY AND INDEMNIFICATION
	  	 	28	 
			
	 Section 10.01.
	 	Liability of Members	  	 	28	 
			
	 Section 10.02.
	 	Indemnification	  	 	29	 
		
	 ARTICLE XI MISCELLANEOUS
	  	 	32	 
			
	 Section 11.01.
	 	Severability	  	 	32	 
			
	 Section 11.02.
	 	Notices	  	 	32	 
			
	 Section 11.03.
	 	Cumulative Remedies	  	 	33	 
			
	 Section 11.04.
	 	Binding Effect	  	 	33	 

							
			
	 Section 11.05.
	 	Interpretation	  	 	33	 
			
	 Section 11.06.
	 	Counterparts	  	 	34	 
			
	 Section 11.07.
	 	Further Assurances	  	 	34	 
			
	 Section 11.08.
	 	Entire Agreement	  	 	34	 
			
	 Section 11.09.
	 	Governing Law	  	 	34	 
			
	 Section 11.10.
	 	Submission to Jurisdiction; Waiver of Jury Trial	  	 	34	 
			
	 Section 11.11.
	 	Expenses	  	 	35	 
			
	 Section 11.12.
	 	Amendments and Waivers	  	 	35	 
			
	 Section 11.13.
	 	No Third Party Beneficiaries	  	 	36	 
			
	 Section 11.14.
	 	Headings	  	 	37	 
			
	 Section 11.15.
	 	Power of Attorney	  	 	37	 
			
	 Section 11.16.
	 	Separate Agreements; Schedules	  	 	37	 
			
	 Section 11.17.
	 	Partnership Status	  	 	37	 
			
	 Section 11.18.
	 	Delivery by Facsimile or Email	  	 	38	 

 THIRD AMENDED AND RESTATED 

LIMITED LIABILITY COMPANY AGREEMENT OF 

VISTA PROPPANTS AND LOGISTICS, LLC 

This THIRD AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT (this “Agreement”) of Vista Proppants and Logistics, LLC
(the “Company”), is made as of [●], 2018 (the “Effective Date”) by and among Vista Proppants and Logistics Inc., a Delaware corporation, as the Managing Member, and the Members whose names are set forth in the
books and records of the Company. 
 R-E-C-I-T-A-L-S 

WHEREAS, the Company was formed as a limited liability company pursuant to the Act upon the filing of the Certificate in the office of the
Secretary of State of the State of Delaware and the execution of the Limited Liability Company Agreement of the Company, dated as of March 10, 2017, which Limited Liability Company Agreement was amended and restated on March 20, 2017 (the
“First Amended and Restated LLCA”); 
 WHEREAS, the First Amended and Restated LLCA was amended and restated on
March 20, 2017 immediately after its adoption (as so amended, the “Prior Agreement”); 
 WHEREAS, on March 20,
2017, the Members entered into a Second Amended and Restated Limited Liability Company Agreement of the Company (the “Amended Agreement”), on November 3, 2017, the Members entered into Amendment No. 1 (“Amendment
No. 1”) to the Amended Agreement and on December 4, 2016, the Members entered into Amendment No. 2 (“Amendment No. 2”) to the Amended Agreement (the Amended Agreement as
amended by Amendment No. 1 and Amendment No. 2, the “Existing Agreement”); 

 WHEREAS, immediately prior to the effectiveness of this Agreement, (i) GHMR Operations,
L.L.C. has transferred its Class A Unit (as defined in the Existing Agreement) to FR Sand Holdings LLC in exchange for a newly issued limited liability company interest in FR Sand Holdings LLC, whereupon GHMR Operations L.L.C. ceased to be a
Member of or have any interest in the Company, and (ii) FR Sand Holdings LLC became the holder of such Class A Unit and was admitted to the Company as Class A Unitholder (as defined in the Existing Agreement); 

WHEREAS, substantially concurrently with the effectiveness of this Agreement, ARCC VS Corp., a Delaware corporation (the “Blocker
Company”), has merged with and into a newly formed subsidiary of the Managing Member and the surviving entity was dissolved (the “Blocker Merger”) and, in the Blocker Merger, the parent of the Blocker Company has acquired
one share of Class A Common Stock of the Managing Member for each Common Unit owned by the Blocker Company, and the Managing Member has acquired such Common Units whereupon the Blocker Company withdrew as a Member of, and has no further
interest in, the Company; 
 WHEREAS, with effect upon the effectiveness of this Agreement, the Members have agreed to convert, exchange
and/or reclassify all of the issued and outstanding Common Units (as defined in the Existing Agreement) and Class A Unit (as defined in the Existing Agreement) into Class A Units (as defined below); and 

WHEREAS, Vista Proppants and Logistics Inc., by its execution and delivery of this Agreement, is hereby admitted to the Company as Managing
Member, and in such capacity shall have the rights and obligations as provided in this Agreement; 
 WHEREAS, pursuant to Section 11.3
of the Existing Agreement, the Existing Agreement may be amended by a written instrument adopted, executed and agreed to by a Super Majority Required Interest (as defined in the Existing Agreement), and the signatories to this Agreement are Members
of the Company representing such a Super Majority Required Interest; 
 WHEREAS, Section 11.3 of the Existing Agreement further
provides that, any amendment, modification, supplement, restatement or waiver of the Class A Member Rights (as defined in the Existing Agreement) (other than in connection with a merger or business combination in which the Class A Member
Rights are preserved in respect of a successor entity) to the extent such amendment, modification, supplement, restatement or waiver relates to, and adversely affects, the Class A Member Rights, shall be effective as to the Class A Member
or the Class A Units only with the prior written consent of the Class A Member, and FR Sands Holdings LLC is a signatory to this Agreement and is the sole Class A Member of the Company; and 

WHEREAS, the Members desire to amend and restate the Existing Agreement in its entirety as set forth herein. 

  
 2 

 NOW, THEREFORE, in consideration of the premises and agreements of the parties set forth herein,
and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Members and the Managing Member hereby agree to amend and restate the Existing Agreement to read in its entirety as follows: 

ARTICLE I 
 DEFINITIONS 

Section 1.01.    Definitions. Capitalized terms used herein without definition have the following meanings
(such meanings being equally applicable to both the singular and plural form of the terms defined): 
 “Act”
means, the Delaware Limited Liability Company Act, 6 Del. C. Section 18-101, et seq., as it may be amended from time to time. 

“Additional Credit Amount” has the meaning set forth in Section 4.01(b)(ii). 

“Adjusted Capital Account Balance” means, with respect to each Member, the balance in such Member’s
Capital Account adjusted (i) by taking into account the adjustments, allocations and distributions described in Treasury Regulations Sections 1.704-1(b)(2)(ii)(d)(4), (5) and (6); and (ii) by adding
to such balance such Member’s share of Company Minimum Gain and Member Nonrecourse Debt Minimum Gain, determined pursuant to Treasury Regulations Sections 1.704-2(g) and
1.704-2(i)(5), any amounts such Member is obligated to restore pursuant to any provision of this Agreement or by applicable Law. The foregoing definition of Adjusted Capital Account Balance is intended to
comply with the provisions of Treasury Regulations Section 1.704-1(b)(2)(ii)(d) and shall be interpreted consistently therewith. 

“Affiliate” means, with respect to a specified Person, any other Person that directly, or indirectly through
one or more intermediaries, Controls, is Controlled by, or is under common Control with, such specified Person. 

“Agreement” has the meaning set forth in the preamble of this Agreement. 

“Amended Agreement” has the meaning set forth in the preamble of this Agreement. 

“Amendment No. 1” has the meaning set forth in the preamble of this Agreement. 

“Amendment No. 2” has the meaning set forth in the preamble of this Agreement. 

“Amended Tax Amount” has the meaning set forth in Section 4.01(b)(ii). 

“Assignee” has the meaning set forth in Section 8.05. 

“Assumed Tax Rate” means the highest effective marginal combined U.S. federal, state and local income tax rate
(including, without limitation, the “medicare” tax imposed under Section 1411 of the Code) for a Fiscal Year prescribed for an individual or corporate resident in New York, New York (taking into account (a) the nondeductiblity of
expenses subject to the limitation described in Section 67(a) of the Code and (b) the character (e.g., long-term or short-term capital gain or ordinary or exempt income) of the applicable income, but not taking into account the
deductibility of state and local income taxes for U.S. federal income tax purposes, if applicable). For the avoidance of doubt, the Assumed Tax Rate shall be the same for all Members. 

  
 3 

 “Available Cash” means, with respect to any fiscal period, the
amount of cash on hand which the Managing Member, in its sole discretion, deems available for distribution to the Members, taking into account all debts, liabilities and obligations of the Company then due, amounts which the Managing Member, in its
sole discretion, deems necessary to expend or retain for working capital or to place into reserves for customary and usual claims with respect to the Company’s operations. 

“Capital Account” means the separate capital account maintained for each Member in accordance with
Section 5.03 hereof. 
 “Capital Contribution” means, with respect to any Member, the aggregate amount
of money contributed to the Company and the Carrying Value of any property (other than money), net of any liabilities assumed by the Company upon contribution or to which such property is subject, contributed to the Company pursuant to Article V.

 “Carrying Value” means, with respect to any Company asset, the asset’s adjusted basis for U.S.
federal income tax purposes, except that the initial carrying value of assets contributed to the Company shall be their respective gross fair market values on the date of contribution as determined by the Managing Member in its sole discretion, and
the Carrying Values of all Company assets shall be adjusted to equal their respective fair market values, in accordance with the rules set forth in Treasury Regulation Section 1.704-1(b)(2)(iv)(f), except
as otherwise provided herein, as of: (a) the date of the acquisition of any additional limited liability company interest in the Company by any new or existing Member in exchange for more than a de minimis Capital Contribution; (b) the
date of the distribution of more than a de minimis amount of Company assets to a Member; (c) the date a limited liability company interest in the Company is relinquished to the Company; or (d) any other date specified in the Treasury
Regulations; provided, however, that adjustments pursuant to clauses (a), (b) (c) and (d) above shall be made only if such adjustments are deemed necessary or appropriate by the Managing Member in its sole discretion to reflect the relative
economic interests of the Members. The Carrying Value of any Company asset distributed to any Member shall be adjusted immediately before such distribution to equal its fair market value. In the case of any asset that has a Carrying Value that
differs from its adjusted tax basis, Carrying Value shall be adjusted by the amount of depreciation calculated for purposes of the definition of “Profits” and “Losses” rather than the amount of depreciation determined for U.S.
federal income tax purposes, and depreciation shall be calculated by reference to Carrying Value rather than tax basis once Carrying Value differs from tax basis. 

“Certificate” means the Certificate of Formation of the Company as filed in the office of the Secretary of
State of the State of Delaware on March 10, 2017, as amended. 
 “Class” means the classes of Units
into which the limited liability company interests in the Company may be classified or divided from time to time by the Managing Member in its sole discretion pursuant to the provisions of this Agreement. As of the date of this

  
 4 

 
Agreement the only Class is the Class A Units. Subclasses within a Class shall not be separate Classes for purposes of this Agreement. For all purposes hereunder and under the Act,
only such Classes expressly established under this Agreement, including by the Managing Member in accordance with this Agreement, shall be deemed to be a class of limited liability company interests in the Company. For the avoidance of doubt, to the
extent that the Managing Member holds limited liability company interests of any Class, the Managing Member shall not be deemed to hold a separate Class of such interests from any other Member because it is the Managing Member. 

“Class A Units” means the Units of limited liability company interest in the Company
designated as the “Class A Units” herein and having the rights pertaining thereto as are set forth in this Agreement. 

“Code” means the Internal Revenue Code of 1986, as amended from time to time. 

“Company” has the meaning set forth in the preamble of this Agreement. 

“Company Minimum Gain” has the meaning ascribed to the term “partnership minimum gain” set forth in
Treasury Regulations Sections 1.704-2(b)(2) and 1.704-2(d). 

“Contingencies” has the meaning set forth in Section 9.03(a). 

“Control” (including the terms “Controlled by” and “under common Control
with”) means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, as trustee or executor, by contract or
otherwise, including, without limitation, the ownership, directly or indirectly, of securities having the power to elect a majority of the board of directors or similar body governing the affairs of such Person. 

“Credit Amount” has the meaning set forth in Section 4.01(b)(ii). 

“Disabling Event” means the Managing Member ceasing to be the Managing Member of the Company. 

“Dissolution Event” has the meaning set forth in Section 9.02. 

“Encumbrance” means any mortgage, hypothecation, claim, lien, encumbrance, conditional sales or other title
retention agreement, right of first refusal, preemptive right, pledge, option, charge, security interest or other similar interest, easement, judgment or imperfection of title of any nature whatsoever. 

“Equity Interests” means (a) capital stock, membership interests, partnership interests, other equity
interests, rights to profits or revenue and any other similar interest in any corporation, partnership, limited liability company or other business entity, (b) any security or other interest convertible into or exchangeable or exercisable for
any of the foregoing, whether at the time of issuance or upon the passage of time or the occurrence of some future event and (c) any warrant, option or other right (contingent or otherwise) to acquire any of the foregoing. 

  
 5 

 “ERISA” means The Employee Retirement Income Security Act of
1974, as amended. 
 “Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended, and the
rules and regulations promulgated thereunder. 
 “Exchange Agreement” means the exchange agreement dated as
of or about the date hereof among the Company, Managing Member, the other Members of the Company from time to time party thereto, and the other parties thereto, as amended from time to time. 

“Exchange Transaction” means an exchange of Units for shares of Class A common stock of the Managing
Member pursuant to, and in accordance with, the Exchange Agreement or, if the Managing Member and the exchanging Member shall mutually agree, a Transfer of Units to the Managing Member, the Company or any of their subsidiaries for shares of
Class A common stock of the Managing Member or other consideration otherwise than pursuant to, and in accordance with, the Exchange Agreement. 

“Existing Agreement” has the meaning set forth in the preamble of this Agreement. 

“Final Tax Amount” has the meaning set forth in Section 4.01(b)(ii). 

“Fiscal Year” means, unless otherwise determined by the Managing Member in its sole discretion in accordance
with Section 11.12, (i) the period commencing upon the formation of the Company and ending on December 31, 2017 or (ii) any subsequent twelve-month period commencing on January 1 and ending on December 31. 

“GAAP” means accounting principles generally accepted in the United States of America as in effect from time
to time. 
 “Incapacity” means, with respect to any Person, the bankruptcy, dissolution, termination, entry
of an order of incompetence, or the insanity, permanent disability or death of such Person. 
 “Indemnitee”
(a) the Managing Member, (b) any additional or substitute Managing Member, (c) any Person who is or was a Partnership Representative, officer or director of the Managing Member or any additional or substitute Managing Member, (d) any
Person that is required to be indemnified by the Managing Member as an “indemnitee” in accordance with the By-Laws of the Managing Member as in effect from time to time, (e) any officer or
director of the Managing Member or any additional or substitute Managing Member who is or was serving at the request of the Managing Member or any additional or substitute Managing Member as an officer, director, employee, member, Member,
Partnership Representative, agent, fiduciary or trustee of another Person; provided, that a Person shall not be an Indemnitee by reason of providing, on a
fee-for-services basis, trustee, fiduciary or custodial services, (f) any Officer or other Person the Managing Member in its sole discretion designates as an
“Indemnitee” for purposes of this Agreement and (g) any heir, executor or administrator with respect to Persons named in clauses (a) through (f). 

  
 6 

 “Law” means any statute, law, ordinance, regulation, rule, code,
executive order, injunction, judgment, decree or other order issued or promulgated by any national, supranational, state, federal, provincial, local or municipal government or any administrative or regulatory body with authority therefrom with
jurisdiction over the Company or any Member, as the case may be. 
 “Liquidation Agent” has the meaning set
forth in Section 9.03. 
 “Managing Member” means Vista Proppants and Logistics
Inc., a corporation incorporated under the laws of the State of Delaware, or any successor Managing Member admitted to the Company in accordance with the terms of this Agreement, in its capacity as the managing member of the Company. 

“Managing Member Equity Issuance” means any issuance of Upstream Securities. 

“Managing Member Incentive Plan” means the Vista Proppants and Logistics Inc. 2018 Omnibus Incentive Plan and
any successor or replacement equity incentive plan of the Managing Member. 
 “Member” means each of the
Persons from time to time listed as a Member in the books and records of the Company. 
 “Members” means, at
any time, each person listed as a Member (including the Managing Member) on the books and records of the Company, in each case for so long as he, she or it remains a Member of the Company as provided hereunder. 

“Member Nonrecourse Debt Minimum Gain” means an amount with respect to each partner nonrecourse debt (as
defined in Treasury Regulations Section 1.704-2(b)(4)) equal to the Company Minimum Gain that would result if such partner nonrecourse debt were treated as a nonrecourse liability (as defined in Treasury
Regulations Section 1.752-1(a)(2)) determined in accordance with Treasury Regulations Section 1.704-2(i)(3). 

“Member Nonrecourse Deductions” has the meaning ascribed to the term “partner nonrecourse
deductions” set forth in Treasury Regulations Section 1.704-2(i)(2). 

“Net Taxable Income” has the meaning set forth in Section 4.01(b)(i). 

“Nonrecourse Deductions” has the meaning set forth in Treasury Regulations
Section 1.704-2(b)(1). The amount of Nonrecourse Deductions of the Company for a Fiscal Year equals the net increase, if any, in the amount of Company Minimum Gain of the Company during that fiscal year,
determined according to the provisions of Treasury Regulations Section 1.704-2(c). 

“Officer” means each Person designated as an officer of the Company by the Managing Member pursuant to and in
accordance with the provisions of Section 3.04, subject to any resolutions of the Managing Member appointing such Person as an officer of the Company or relating to such appointment. 

  
 7 

 “Partnership Representative” has the meaning set forth in
Section 5.08. 
 “Person” means any individual, estate, corporation, partnership,
limited partnership, limited liability company, limited company, joint venture, trust, unincorporated or governmental organization or any agency or political subdivision thereof. 

“Primary Indemnification” has the meaning set forth in Section 10.02(a). 

“Prior Agreement” has the meaning set forth in the preamble of this Agreement. 

“Profits” and “Losses” means, for each Fiscal Year or other period, the taxable income or
loss of the Company, or particular items thereof, determined in accordance with the accounting method used by the Company for U.S. federal income tax purposes with the following adjustments: (a) all items of income, gain, loss or deduction
allocated pursuant to Section 5.05 shall not be taken into account in computing such taxable income or loss; (b) any income of the Company that is exempt from U.S. federal income taxation and not otherwise taken into account in computing
Profits and Losses shall be added to such taxable income or loss; (c) if the Carrying Value of any asset differs from its adjusted tax basis for U.S. federal income tax purposes, any gain or loss resulting from a disposition of such asset shall
be calculated with reference to such Carrying Value; (d) upon an adjustment to the Carrying Value (other than an adjustment in respect of depreciation) of any asset, pursuant to the definition of Carrying Value, the amount of the adjustment
shall be included as gain or loss in computing such taxable income or loss; (e) if the Carrying Value of any asset differs from its adjusted tax basis for U.S. federal income tax purposes, the amount of depreciation, amortization or cost
recovery deductions with respect to such asset for purposes of determining Profits and Losses, if any, shall be an amount which bears the same ratio to such Carrying Value as the U.S. federal income tax depreciation, amortization or other cost
recovery deductions bears to such adjusted tax basis (provided that if the U.S. federal income tax depreciation, amortization or other cost recovery deduction is zero, the Managing Member may use any reasonable method for purposes of
determining depreciation, amortization or other cost recovery deductions in calculating Profits and Losses); and (f) except for items in (a) above, any expenditures of the Company not deductible in computing taxable income or loss, not
properly capitalizable and not otherwise taken into account in computing Profits and Losses pursuant to this definition shall be treated as deductible items. 

“Registration Rights Agreement” means the registration rights agreement dated as of or about the date hereof
among the Managing Member and the stockholders from time to time party thereto, and the other parties thereto, as amended from time to time. 

“Required Interest” means one or more Members holding Units having among them more than 90% of the Total
Percentage Interest. 
 “Revised Partnership Audit Provisions” means Title XI, Section 1101, of the
Bipartisan Budget Act of 2015, P.L. 114-74 (together with any subsequent amendments thereto, Treasury Regulations promulgated thereunder, and published administrative interpretations thereof, and any
comparable provisions of state or local tax law). 

  
 8 

 “Securities Act” means the U.S. Securities Act of 1933, as
amended, and the rules and regulations promulgated thereunder. 
 “Similar Law” means any law or regulation
that could cause the underlying assets of the Company to be treated as assets of the Member by virtue of its limited liability company interest in the Company and thereby subject the Company and the Managing Member (or other persons responsible for
the investment and operation of the Company’s assets) to laws or regulations that are similar to the fiduciary responsibility or prohibited transaction provisions contained in Title I of ERISA or Section 4975 of the Code. 

“Stockholder Party” means a “Stockholder” under the Stockholders Agreement. 

“Stockholders Agreement” means the stockholders agreement dated as of or about the date hereof among the
Managing Member and the stockholders from time to time party thereto, and the other parties thereto, as amended from time to time. 

“Tax Advances” has the meaning set forth in Section 5.07. 

“Tax Amount” has the meaning set forth in Section 4.01(b)(i). 

“Tax Distributions” has the meaning set forth in Section 4.01(b)(i). 

“Tax Receivable Agreement” means the Tax Receivable Agreement dated as of or about the date hereof among the
Company, Managing Member and the other parties from time to time party thereto, as amended from time to time. 

“Total Percentage Interest” means, with respect to any Member, the quotient obtained by dividing the number of
Units (vested and unvested) then owned by such Member by the number of Units (vested and unvested) then owned by all Members. 

“Transfer” means, in respect of any Unit, property or other asset, any sale, assignment, transfer,
distribution, exchange, mortgage, pledge, hypothecation or other disposition thereof, whether voluntarily or by operation of Law, directly or indirectly, in whole or in part, including, without limitation, the exchange of any Unit for any other
security. 
 “Transferee” means any Person that is a permitted transferee of a Member’s interest in the
Company, or part thereof. 
 “Treasury Regulations” means the income tax regulations, including temporary
and proposed regulations, promulgated under the Code, as such regulations may be amended from time to time (including corresponding provisions of succeeding regulations). 

“Units” means the Class A Units and any other Class of Units that is established in accordance with
this Agreement, which shall constitute limited liability company interests in the Company as provided in this Agreement and under the Act, entitling the holders thereof to the relative rights, title and interests in the profits, losses, deductions
and credits of the Company at any particular time as set forth in this Agreement, and any and all other 

  
 9 

 
benefits to which a holder thereof may be entitled as a Member as provided in this Agreement, together with the obligations of such Member to comply with all terms and provisions of this
Agreement. 
 “Unvested Units” means those Units from time to time listed as unvested Units in the books and
records of the Company. 
 “Upstream Securities” means Equity Securities of any type issued by the Managing
Member, including shares of common and preferred stock whether vested or unvested. 
 “Vested Percentage
Interest” means, with respect to any Member, the quotient obtained by dividing the number of Vested Units then owned by such Member by the number of Vested Units then owned by all Members. 

“Vested Units” means those Units listed as vested Units in the books and records of the Company, as the same
may be amended from time to time in accordance with this Agreement. For clarity, all of the Units issued and outstanding as of the date of this Agreement are Vested Units. 

ARTICLE II 
 FORMATION, TERM,
PURPOSE AND POWERS 
 Section 2.01.    Formation. The Company was formed as a limited liability company
under the provisions of the Act by the filing of the Certificate on March 10, 2017. If requested by the Managing Member, the Members shall promptly execute all certificates and other documents consistent with the terms of this Agreement
necessary for the Managing Member to accomplish all filing, recording, publishing and other acts as may be appropriate to comply with all requirements for (a) the formation and operation of a limited liability company under the laws of the
State of Delaware, (b) if the Managing Member in its sole discretion deems it advisable, the operation of the Company as a limited liability company, or entity in which the Members have limited liability, in all jurisdictions where the Company
proposes to operate and (c) all other filings required to be made by the Company. The rights, powers, duties, obligations and liabilities of the Members shall be determined pursuant to the Act and this Agreement. To the extent that the rights,
powers, duties, obligations and liabilities of any Member are different by reason of any provision of this Agreement than they would be in the absence of such provision, this Agreement shall, to the extent permitted by the Act, control. The
execution, delivery and filing of the Certificate and each amendment thereto is hereby ratified, approved and confirmed by the Members. 

Section 2.02.    Name. The name of the Company shall be, and the business of the Company shall be conducted
under the name of “Vista Proppants and Logistics, LLC,” and all Company business shall be conducted in that name or in such other names that comply with applicable law as the Managing Member in its sole discretion may select from time to
time. Subject to the Act, the Managing Member in its sole discretion may change the name of the Company (and amend this Agreement to reflect such change) at any time and from time to time without the consent of any other Person. Prompt notification
of any such change shall be given to all Members. 

  
 10 

 Section 2.03.    Term. The term of the Company commenced on the
date of the filing of the Certificate, and the term shall continue until the dissolution of the Company in accordance with Article IX. The existence of the Company shall continue until cancellation of the Certificate in the manner required by the
Act. 
 Section 2.04.    Offices. The Company may have offices at such places either within or outside the
State of Delaware as the Managing Member from time to time may select in its sole discretion. As of the date hereof, the principal place of business and office of the Company is located at 4413 Carey Street, Fort Worth, Texas 76119. 

Section 2.05.    Agent for Service of Process; Existence and Good Standing; Foreign Qualification. 

(a)    The registered office of the Company in the State of Delaware shall be located at 1675 South State Street, Suite B,
Dover, Kent County, Delaware 19901. The name and address of the registered agent of the Company for service of process on the Company in the State of Delaware shall be Capitol Services, Inc.  

(b)    The Managing Member in its sole discretion may take all action which may be necessary or appropriate (i) for
the continuation of the Company’s valid existence as a limited liability company under the laws of the State of Delaware (and of each other jurisdiction in which such existence is necessary to enable the Company to conduct the business in which
it is engaged) and (ii) for the maintenance, preservation and operation of the business of the Company in accordance with the provisions of this Agreement and applicable laws and regulations. The Managing Member in its sole discretion may file
or cause to be filed for recordation in the proper office or offices in each other jurisdiction in which the Company is formed or qualified, such certificates (including certificates of formation and fictitious name certificates) and other documents
as are required by the applicable statutes, rules or regulations of any such jurisdiction or as are required to reflect the identity of the Members. The Managing Member in its sole discretion may cause the Company to comply, to the extent procedures
are available and those matters are reasonably within the control of the Officers, with all requirements necessary to qualify the Company to do business in any jurisdiction other than the State of Delaware. 

Section 2.06.    Business Purpose. The Company was formed for the object and purpose of, and the nature and
character of the business to be conducted by the Company is, engaging in any lawful act or activity for which limited liability companies may be formed under the Act. 

Section 2.07.    Powers of the Company. Subject to the limitations set forth in this Agreement, the
Company will possess and may exercise all of the powers and privileges granted to it by the Act including, without limitation, the ownership and operation of the assets and other property contributed to the Company by the Members, by any other Law
or this Agreement, together with all powers incidental thereto, so far as such powers are necessary or convenient to the conduct, promotion or attainment of the purpose of the Company set forth in Section 2.06. 

  
 11 

 Section 2.08.    Members; Reclassification; Admission of New
Members. Each of the Persons listed in the books and records of the Company, as the same may be amended from time to time in accordance with this Agreement, by virtue of its execution of the Prior Agreement, the Amended Agreement, the Existing
Agreement or this Agreement, are admitted as Members of the Company. With effect upon the effectiveness of this Agreement, all of the issued and outstanding limited liability company interests in the Company are hereby reclassified into a total
number of Class A Units as set forth in the books and records of the Company, and the respective number of Class A Units held by each Member at the effective time of this Agreement is as set forth in the books and records of the Company.
The rights, duties and liabilities of the Members shall be as provided in the Act, except as is otherwise expressly provided herein, and the Members consent to the variation of such rights, duties and liabilities as provided herein. Subject to
Section 8.07 with respect to substitute Members, a Person may be admitted from time to time as a new Member with the written consent of the Managing Member in its sole discretion. Each new Member shall execute and deliver to the Managing Member
an appropriate supplement to this Agreement pursuant to which the new Member agrees to be bound by the terms and conditions of this Agreement, as it may be amended from time to time. A new Managing Member or substitute Managing Member may be
admitted to the Company solely in accordance with Section 8.06 or Section 9.02(e) hereof. 

Section 2.09.    Resignation. No Member shall have the right to resign as a member of the Company other than
following the Transfer of all Units owned by such Member in accordance with Article VIII. 

Section 2.10.    Investment Representations of Members. Each Member hereby represents, warrants and
acknowledges to the Company that: (a) such Member has such knowledge and experience in financial and business matters and is capable of evaluating the merits and risks of an investment in the Company and is making an informed investment
decision with respect thereto; (b) such Member is acquiring interests in the Company for investment only and not with a view to, or for resale in connection with, any distribution to the public or public offering thereof; and (c) the
execution, delivery and performance of this Agreement have been duly authorized by such Member. 
 ARTICLE III 

MANAGEMENT 

Section 3.01.    Managing Member 

(a)    The business, property and affairs of the Company shall be managed under the sole, absolute and exclusive direction
of the Managing Member, which may from time to time delegate authority to Officers or to others to act on behalf of the Company. 

(b)    Without limiting the foregoing provisions of this Section 3.01, the Managing Member shall have the general
power to manage or cause the management of the Company (which may be delegated to Officers of the Company), including, without limitation, the following powers: 

(i)    to develop and prepare a business plan each year which will set forth the operating goals and plans for the
Company; 

  
 12 

 (ii)    to execute and deliver or to authorize the execution and delivery of
contracts, deeds, leases, licenses, instruments of transfer and other documents on behalf of the Company; 

(iii)    to make any expenditures, to lend or borrow money, to assume or guarantee, or otherwise contract for,
indebtedness and other liabilities, to issue evidences of indebtedness and to incur any other obligations; 

(iv)    to establish and enforce limits of authority and internal controls with respect to all personnel and functions;

 (v)    to engage attorneys, consultants and accountants for the Company; 

(vi)    to develop or cause to be developed accounting procedures for the maintenance of the Company’s books of
account; and 
 (vii)    to do all such other acts as shall be authorized in this Agreement or by the Members in
writing from time to time. 
 Section 3.02.    Compensation. The Managing Member shall not be entitled to
any compensation for services rendered to the Company in its capacity as Managing Member. 

Section 3.03.    Expenses. The Company shall pay, or cause to be paid, all costs, fees, operating expenses and
other expenses of the Company (including the costs, fees and expenses of attorneys, accountants or other professionals) incurred in pursuing and conducting, or otherwise related to, the activities of the Company. The Company shall also, in the sole
discretion of the Managing Member, bear and/or reimburse the Managing Member for (i) any costs, fees or expenses incurred by the Managing Member in connection with serving as the Managing Member and (ii) all other expenses allocable to the
Company or otherwise incurred by the Managing Member in connection with operating the Company’s business (including expenses allocated to the Managing Member by its Affiliates). To the extent that the Managing Member determines in its sole
discretion that such expenses are related to the business and affairs of the Managing Member that are conducted through the Company and/or its subsidiaries (including expenses that relate to the business and affairs of the Company and/or its
subsidiaries and that also relate to other activities of the Managing Member), the Managing Member may cause the Company to pay or bear all expenses of the Managing Member, including, without limitation, compensation and meeting costs of any board
of directors or similar body of the Managing Member, any salary, bonus, incentive compensation and other amounts paid to any Person including Affiliates of the Managing Member to perform services for the Company, litigation costs and damages arising
from litigation, accounting and legal costs and franchise taxes, provided that the Company shall not pay or bear any income tax obligations of the Managing Member or any obligations of the Managing Member under the Tax Receivable Agreement.
Reimbursements pursuant to this Section 3.03 shall be in addition to any reimbursement to the Managing Member as a result of indemnification pursuant to Section 10.02. 

Section 3.04.    Officers. Subject to the direction and oversight of the Managing Member, the day-to-day administration of the business of the Company may be carried out by persons who may be designated as officers by the Managing Member, with titles including but not

  
 13 

 
limited to “assistant secretary,” “assistant treasurer,” “chairman,” “chief executive officer,” “chief financial officer,” “chief operating
officer,” “director,” “general counsel,” “general manager,” “managing director,” “president,” “principal accounting officer,” “secretary,” “senior chairman,”
“senior managing director,” “treasurer,” “vice chairman,” “executive vice president” or “vice president,” and as and to the extent authorized by the Managing Member in its sole discretion. The
officers of the Company shall have such titles and powers and perform such duties as shall be determined from time to time by the Managing Member and otherwise as shall customarily pertain to such offices. Any number of offices may be held by the
same person. In its sole discretion, the Managing Member may choose not to fill any office for any period as it may deem advisable. All officers and other persons providing services to or for the benefit of the Company shall be subject to the
supervision and direction of the Managing Member and may be removed, with or without cause, from such office by the Managing Member and the authority, duties or responsibilities of any employee, agent or officer of the Company may be suspended by
the Managing Member from time to time, in each case in the sole discretion of the Managing Member. The Managing Member shall not cease to be a Managing Member of the Company as a result of the delegation of any duties hereunder. No officer of the
Company, in its capacity as such, shall be considered a Managing Member of the Company by agreement, as a result of the performance of its duties hereunder or otherwise. 

Section 3.05.    Authority of Members. No Member (other than the Managing Member), in its capacity as such,
shall participate in or have any control over the business of the Company. Except as expressly provided herein, the Units do not confer any rights upon the Members to participate in the affairs of the Company described in this Agreement. Except as
expressly provided herein, no Member (other than the Managing Member) shall have any right to vote on any matter involving the Company, including with respect to any merger, consolidation, combination or conversion of the Company, or any other
matter that a Member might otherwise have the ability to vote on or consent with respect to under the Act, at law, in equity or otherwise. The conduct, control and management of the Company shall be vested exclusively in the Managing Member. In all
matters relating to or arising out of the conduct of the operation of the Company, the decision of the Managing Member shall be the decision of the Company. Except as required or permitted by Law, or expressly provided in the ultimate sentence of
this Section 3.05 or by separate agreement with the Company, no Member who is not also the Managing Member (and acting in such capacity) shall take any part in the management or control of the operation or business of the Company in its
capacity as a Member, nor shall any Member who is not also the Managing Member (and acting in such capacity) have any right, authority or power to act for or on behalf of or bind the Company in his or its capacity as a Member in any respect or
assume any obligation or responsibility of the Company or of any other Member. Notwithstanding the foregoing, the Company may from time to time appoint one or more Members as officers or employ one or more Members as employees, and such Members, in
their capacity as officers or employees of the Company (and not, for clarity, in their capacity as Members of the Company), may take part in the control and management of the business of the Company to the extent such authority and power to act for
or on behalf of the Company has been delegated to them by the Managing Member. 
 Section 3.06.    Action by
Written Consent or Ratification. Any action required or permitted to be taken by the Members pursuant to this Agreement shall be taken if all Members whose consent or ratification is required consent thereto or provide a consent or
ratification in writing. 

  
 14 

 ARTICLE IV 

DISTRIBUTIONS 

Section 4.01.    Distributions 

(a)    The Managing Member, in its sole discretion, may authorize distributions by the Company to the Members, which
distributions shall be made pro rata in accordance with the Members’ respective Total Percentage Interests. 

(b)    (i) In addition to the foregoing, if the Managing Member reasonably determines that the taxable income of the
Company for a Fiscal Year will give rise to taxable income for the Members (“Net Taxable Income”), the Managing Member shall cause the Company to distribute Available Cash in respect of income tax liabilities (the
“Tax Distributions”) to the extent that other distributions made by the Company for such year were otherwise insufficient to cover such tax liabilities. The aggregate Tax Distributions payable with respect to any Fiscal Year shall
be computed based upon the Managing Member’s estimate of the allocable Net Taxable Income in accordance with Article V, multiplied by the Assumed Tax Rate (the “Tax Amount”) and shall be made to Members pro rata in
accordance with the Members’ respective Total Percentage Interest; provided, however, that in the case of any Member or former Member that transferred any Units or consummated an Exchange Transaction with respect to any
Units during the immediately preceding quarterly period (as such periods are described in Section 4.01(b)(ii)), the Company shall make such Tax Distribution pro rata in accordance with the Members’ and former
Members’ daily weighted average Total Percentage Interests during such quarterly period; provided further that the aggregate amount received by the transferor and transferee Members pursuant to the immediately preceding proviso
shall not exceed the Tax Distribution that the transferor Member would have received for such quarterly period had it not transferred or exchanged its Units. For purposes of computing the Tax Amount, the Net Taxable Income shall be determined
without regard to any special adjustments of tax items required as a result of any election under Section 754 of the Code, including adjustments required by Sections 734 and 743 of the Code. 

(ii)     Tax Distributions shall be calculated and paid no later than one day prior to each quarterly due date for the
payment by corporations on a calendar year of estimated taxes under the Code in the following manner (A) for the first quarterly period, 25% of the Tax Amount, (B) for the second quarterly period, 50% of the Tax Amount, less the prior Tax
Distributions for the Fiscal Year, (C) for the third quarterly period, 75% of the Tax Amount, less the prior Tax Distributions for the Fiscal Year and (D) for the fourth quarterly period, 100% of the Tax Amount, less the prior Tax
Distributions for the Fiscal Year. Following each Fiscal Year, and no later than one day prior to the due date for the payment by corporations of income taxes for such Fiscal Year, the Managing Member shall make an amended calculation of the Tax
Amount for such Fiscal Year (the “Amended Tax Amount”), and shall cause the Company to distribute a Tax Distribution, out of Available Cash, to the extent that the Amended Tax Amount so calculated exceeds the cumulative Tax
Distributions previously made by the Company in respect of such Fiscal Year. If the Amended Tax Amount is less than the cumulative Tax Distributions previously made by the Company in respect of the relevant Fiscal Year, then the difference (the
“Credit Amount”) shall be applied against, and shall reduce, the amount of Tax Distributions made for subsequent Fiscal Years. 

  
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Within 30 days following the date on which the Company files a tax return on Form 1065, the Managing Member shall make a final calculation of the Tax Amount of such Fiscal Year (the “Final
Tax Amount”) and shall cause the Company to distribute a Tax Distribution, out of Available Cash, to the extent that the Final Tax Amount so calculated exceeds the Amended Tax Amount. If the Final Tax Amount is less than the Amended Tax
Amount in respect of the relevant Fiscal Year, then the difference (“Additional Credit Amount”) shall be applied against, and shall reduce, the amount of Tax Distributions made for subsequent Fiscal Years. Any Credit Amount and
Additional Credit Amount applied against future Tax Distributions shall be treated as an amount actually distributed pursuant to this Section 4.01(b) for purposes of the computations herein. 

Section 4.02.    Liquidation Distribution. Distributions made upon dissolution of the Company shall be made as
provided in Section 9.03. 
 Section 4.03.    Limitations on Distribution. Notwithstanding any
provision to the contrary contained in this Agreement, the Managing Member shall not make a distribution to any Member if such distribution would violate Section 18-607 of the Act or other applicable Law.

 ARTICLE V 
 CAPITAL
CONTRIBUTIONS; CAPITAL ACCOUNTS; 
 TAX ALLOCATIONS; TAX MATTERS 

Section 5.01.    Initial Capital Contributions. The Members have made, on or prior to the date hereof, Capital
Contributions and, in exchange, the Company has issued to the Members the number of Class A Units as specified in the books and records of the Company. 

Section 5.02.    No Additional Capital Contributions. Except as otherwise provided in this Article V, no
Member shall be required to make additional Capital Contributions to the Company without the consent of such Member or permitted to make additional capital contributions to the Company without the consent of the Managing Member, which may be granted
or withheld in its sole discretion. 
 Section 5.03.    Capital Accounts. A separate capital account (a
“Capital Account”) shall be established and maintained for each Member in accordance with the provisions of Treasury Regulations Section 1.704-1(b)(2)(iv). The Capital Account of each
Member shall be credited with such Member’s Capital Contributions, if any, all Profits allocated to such Member pursuant to Section 5.04 and any items of income or gain which are specially allocated pursuant to Section 5.05; and shall
be debited with all Losses allocated to such Member pursuant to Section 5.04, any items of loss or deduction of the Company specially allocated to such Member pursuant to Section 5.05, and all cash and the Carrying Value of any property
(net of liabilities assumed by such Member and the liabilities to which such property is subject) distributed by the Company to such Member. Any references in any section of this Agreement to the Capital Account of a Member shall be deemed to refer
to such Capital Account as the same may be credited or debited from time to time as set forth above. In the event of any transfer of any interest in the Company in accordance with the terms of this Agreement, the Transferee shall succeed to the
Capital Account of the transferor to the extent it relates to the transferred interest. 

  
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 Section 5.04.    Allocations of Profits and Losses. Except as
otherwise provided in this Agreement, Profits and Losses (and, to the extent necessary, individual items of income, gain or loss or deduction of the Company) shall be allocated in a manner such that the Capital Account of each Member after giving
effect to the special allocations set forth in Section 5.05 is, as nearly as possible, equal (proportionately) to (i) the distributions that would be made pursuant to Article IX if the Company were dissolved, its affairs wound up and its
assets sold for cash equal to their Carrying Value, all Company liabilities were satisfied (limited with respect to each non-recourse liability to the Carrying Value of the assets securing such liability) and
the net assets of the Company were distributed to the Members pursuant to this Agreement, minus (ii) such Member’s share of Company Minimum Gain and Member Nonrecourse Debt Minimum Gain, computed immediately prior to the
hypothetical sale of assets. For purposes of this Article V, each Unvested Unit shall be treated as a Vested Unit. Notwithstanding the foregoing, the Managing Member shall make such adjustments to Capital Accounts as it determines in its sole
discretion to be appropriate to ensure allocations are made in accordance with a Member’s interest in the Company. 

Section 5.05.    Special Allocations. Notwithstanding any other provision in this Article V: 

(a)    Minimum Gain Chargeback. If there is a net decrease in Company Minimum Gain or Member Nonrecourse Debt
Minimum Gain (determined in accordance with the principles of Treasury Regulations Sections 1.704-2(d) and 1.704-2(i)) during any Company taxable year, the Members shall
be specially allocated items of Company income and gain for such year (and, if necessary, subsequent years) in an amount equal to their respective shares of such net decrease during such year, determined pursuant to Treasury Regulations Sections 1.704-2(g) and 1.704-2(i)(5). The items to be so allocated shall be determined in accordance with Treasury Regulations
Section 1.704-2(f). This Section 5.05(a) is intended to comply with the minimum gain chargeback requirements in such Treasury Regulations Sections and shall be interpreted consistently therewith;
including that no chargeback shall be required to the extent of the exceptions provided in Treasury Regulations Sections 1.704-2(f) and 1.704-2(i)(4). 

(b)    Qualified Income Offset. If any Member unexpectedly receives any adjustments, allocations, or distributions
described in Treasury Regulations Section 1.704-1(b)(2)(ii)(d)(4), (5) or (6), items of Company income and gain shall be specially allocated to such Member in an amount and manner sufficient to eliminate
the deficit balance in such Member’s Adjusted Capital Account Balance created by such adjustments, allocations or distributions as promptly as possible; provided that an allocation pursuant to this Section 5.05(b) shall be
made only to the extent that a Member would have a deficit Adjusted Capital Account Balance in excess of such sum after all other allocations provided for in this Article V have been tentatively made as if this Section 5.05(b) were not in this
Agreement. This Section 5.05(b) is intended to comply with the “qualified income offset” requirement of the Code and shall be interpreted consistently therewith. 

(c)    Gross Income Allocation. If any Member has a deficit Capital Account at the end of any Fiscal Year which is
in excess of the sum of (i) the amount such Member is obligated to restore, if any, pursuant to any provision of this Agreement, and (ii) the amount such Member is deemed to be obligated to restore pursuant to the penultimate sentences of
Treasury Regulations Section 1.704-2(g)(1) and 1.704-2(i)(5), each such Member shall be specially allocated items of

  
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Company income and gain in the amount of such excess as quickly as possible; provided that an allocation pursuant to this Section 5.05(c) shall be made only if and to the extent that
a Member would have a deficit Capital Account in excess of such sum after all other allocations provided for in this Article V have been tentatively made as if Section 5.05(b) and this Section 5.05(c) were not in this Agreement. 

(d)    Nonrecourse Deductions. Nonrecourse Deductions shall be allocated to the Members in accordance with their
respective Total Percentage Interests. 
 (e)    Member Nonrecourse Deductions. Member Nonrecourse Deductions for
any taxable period shall be allocated to the Member who bears the economic risk of loss with respect to the liability to which such Member Nonrecourse Deductions are attributable in accordance with Treasury Regulations
Section 1.704-2(j). 
 (f)    Ameliorative Allocations. Any special
allocations of income or gain pursuant to Sections 5.05(b) or 5.05(c) hereof shall be taken into account in computing subsequent allocations pursuant to Section 5.04 and this Section 5.05(f), so that the net amount of any items so
allocated and all other items allocated to each Member shall, to the extent possible, be equal to the net amount that would have been allocated to each Member if such allocations pursuant to Sections 5.05(b) or 5.05(c) had not occurred. 

Section 5.06.    Tax Allocations. For income tax purposes, each item of income, gain, loss and deduction of
the Company shall be allocated among the Members in the same manner as the corresponding items of Profits and Losses and specially allocated items are allocated for Capital Account purposes; provided that in the case of any asset the Carrying
Value of which differs from its adjusted tax basis for U.S. federal income tax purposes, income, gain, loss and deduction with respect to such asset shall be allocated solely for income tax purposes in accordance with the principles of Sections
704(b) and (c) of the Code (in any manner determined by the Managing Member and permitted by the Code and Treasury Regulations) so as to take account of the difference between Carrying Value and adjusted basis of such asset. Notwithstanding the
foregoing, the Managing Member shall make such allocations for tax purposes as it determines in its sole discretion to be appropriate to ensure allocations are made in accordance with a Member’s interest in the Company. 

Section 5.07.    Tax Advances. To the extent the Managing Member reasonably believes that the Company is
required by law to withhold or to make tax payments on behalf of or with respect to any Member or the Company is subjected to tax itself by reason of the status of any Member (including any taxes paid pursuant to Section 6225 of the Code)
(“Tax Advances”), the Managing Member may cause the Company to withhold such amounts and cause the Company to make such tax payments as so required. All Tax Advances made on behalf of a Member shall be repaid by reducing the amount
of the current or next succeeding distribution or distributions which would otherwise have been made to such Member or, if such distributions are not sufficient for that purpose, by so reducing the proceeds of liquidation otherwise payable to such
Member. For all purposes of this Agreement such Member shall be treated as having received the amount of the distribution that is equal to the Tax Advance. Each Member hereby agrees to indemnify and hold harmless the Company and the other Members
from and against any liability (including, without limitation, any liability for taxes, penalties, additions to tax or interest other than any penalties, 

  
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additions to tax or interest imposed as a result of the Company’s failure to withhold or make a tax payment on behalf of such Member which withholding or payment is required pursuant to
applicable Law but only to the extent amounts sufficient to pay such taxes were not timely distributed to the Member pursuant to Section 4.01(b)) with respect to income attributable to or distributions or other payments to such Member. To the
fullest extent permitted by law and not withstanding anything in this Agreement to the contrary, each Member hereby agrees to indemnify and hold harmless the Company and the other Members from and against any liability (including any liability for
taxes, penalties, additions to Tax or interest) with respect to any such Tax Advance with respect to a Member. The obligations of a Member set forth in this Section 5.07 shall survive the withdrawal of a Member from the Company or any Transfer
of a Member’s Interest. 
 Section 5.08.    Tax Matters.The Managing Member shall be the initial
“tax matters partner” within the meaning of Section 6231(a)(7) of the Code and the Managing Member shall be the “partnership representative” pursuant to the Revised Partnership Audit Provisions (in either such capacity, the
Person serving is hereafter referred to as the “Partnership Representative”), and shall have the power to exercise any and all rights that it is or may be entitled to exercise in that capacity. The Partnership Representative shall
keep the other Members reasonably informed as to any material tax actions, examinations or proceedings relating to the Company and shall submit to the other Members, for their review and comment, any material settlement or compromise offer with
respect to any disputed item of income, gain, loss, deduction or credit of the Company. The Members shall cooperate as reasonably requested by the Partnership Representative in connection with any election or decision made by the Partnership
Representative acting in that capacity (including by filing amended tax returns and providing information requested). In the event the Company incurs or is required to pay any liability for taxes, interest or penalties pursuant to the Revised
Partnership Audit Provisions, then, to the extent such election is in the best interests of the Company and the Members, the Partnership Representative will cause the Company to make an election under Section 6226 of the Code (a
“Section 6226 Election”). If a Section 6226 Election is made, the Partnership Representative shall provide to the Members the Members’ respective shares of any adjustment to income, gain, loss, deduction
or credit (as determined in the notice of final partnership adjustment). If a Section 6226 Election is not available or such election is not in the best interests of the Company and the Members, then (i) the Partnership Representative
shall use reasonable efforts to reduce under Section 6225(c) of the Code any Company-level assessment under the Revised Partnership Audit Provisions to reflect the particular tax status of any Member (or its constituent owners); (ii) the
Members (including any former Member) to whom such liability relates shall indemnify the Company and other Members from and against such liability pursuant to Section 5.07. 

Section 5.09.    Other Allocation Provisions. Certain of the foregoing provisions and the other provisions of
this Agreement relating to the maintenance of Capital Accounts are intended to comply with Treasury Regulations Section 1.704-1(b) and shall be interpreted and applied in a manner consistent with such
regulations. In addition to amendments effected in accordance with Section 11.12 or otherwise in accordance with this Agreement, Sections 5.03, 5.04 and 5.05 may also, so long as any such amendment does not materially change the relative
economic interests of the Members, be amended at any time by the Managing Member if necessary, in the opinion of tax counsel to the Company, to comply with such regulations or any applicable Law. 

  
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 ARTICLE VI 

BOOKS AND RECORDS; REPORTS 

Section 6.01.    Books and Records 

(a)    At all times during the continuance of the Company, the Company shall prepare and maintain separate books of
account for the Company in accordance with GAAP. 
 (b)    Except as limited by Section 6.01(c), each Member shall
have the right to receive, for a purpose reasonably related to such Member’s interest as a Member in the Company, upon reasonable written demand stating the purpose of such demand and at such Member’s own expense: 

(i)    a copy of the Certificate and this Agreement and all amendments thereto, together with a copy of the executed
copies of all powers of attorney pursuant to which the Certificate and this Agreement and all amendments thereto have been executed; and 

(ii)    promptly after their becoming available, copies of the Company’s U.S. federal income tax returns for the
three most recent years. 
 (c)    The Managing Member may keep confidential from the Members, for such period of time
as the Managing Member determines in its sole discretion, (i) any information that the Managing Member reasonably believes to be in the nature of trade secrets or (ii) other information the disclosure of which the Managing Member believes
is not in the best interests of the Company, could damage the Company or its business or that the Company is required by law or by agreement with any third party to keep confidential, including without limitation, information as to the Units held by
any other Member. With respect to any schedules, annexes or exhibits to this Agreement, each Member (other than the Managing Member) shall only be entitled to receive and review any such schedules, annexes and exhibits relating to such Member and
shall not be entitled to receive or review any schedules, annexes or exhibits relating to any other Member (other than the Managing Member). 

(d)    The Managing Member shall cause to be prepared and filed all necessary federal and state income tax returns for the
Company, including making any tax elections. At the Company’s expense, the Managing Member, within 75 days of the close of the Fiscal Year, shall use commercially reasonable efforts to furnish to each Member that was a Member during such Fiscal
Year a Schedule K-1 and such other tax information reasonably required for federal, state and local income tax reporting purposes. The Company shall use commercially reasonable efforts to provide to each
Person that was a Member during the Fiscal Year (a) by May 15th, August 15th and November 15th of such Fiscal Year, with an estimate of the taxable income, gains, deductions, losses and other items for, respectively, the first, second and third
fiscal quarters that such Person will be required to include in its taxable income and (b) by February 15th of such Fiscal Year, with an estimate of the taxable income, gains, deductions, losses and other items of such Person to be reflected on
the Schedule K-1 of such Person for the prior Fiscal Year. The Company also shall provide the Members with such other information as may be reasonably requested for purposes of allowing the Members to prepare
and file their own tax returns, provided that any costs or expenses with respect to the foregoing shall be borne by the requesting Member. 

  
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 (e)    The Managing Member shall make the following elections on the
appropriate tax returns and shall not rescind them without the prior written consent of a Required Interest (provided that the election described in clause (ii) below cannot be rescinded without the prior written consent of the all the
Members): 
 (i)    to adopt an appropriate federal income tax method of accounting and to keep the Company’s
books and records on such income-tax method; 
 (ii)    to have in effect (and
to cause each direct or indirect subsidiary that is treated as a partnership for U.S. federal income tax purposes) an election, pursuant to Section 754 of the Code, to adjust the tax basis of Company properties, for each taxable year in which
an Exchange Transaction occurs; and 
 (iii)    any other election consented to by a Required Interest. 

No Member may make an election for the Company to be excluded from the application of the provisions of subchapter K of chapter 1 of subtitle A of the Code or
any similar provisions of applicable state law, and no provision of this Agreement shall be construed to sanction or approve such an election. 

ARTICLE VII 
 COMPANY UNITS 

Section 7.01.    Units. 

(a)    Limited liability company interests in the Company shall be represented by Units. At the execution of this
Agreement, the Units are comprised of one Class: “Class A Units.” 
 (b)    Except under the
circumstances contemplated by and in compliance with Section 7.01(c) through (f), the Managing Member may not, without the prior written consent of a Required Interest, (i) create any new Class or series of
Units, or other Equity Interests of the Company, (ii) issue additional Units or other Equity Interests of the Company to any Member or Person, (iii) amend the privileges, preference, duties, liabilities, obligations and rights of any
existing Units, or (iv) retire or redeem any previously issued Units or other Equity Interests of the Company (other than in connection with an Exchange Transaction). 

(c)    Upon the occurrence of a Managing Member Equity Issuance, the Managing Member may, without the approval of any
other Member, establish and issue additional Units, in one or more Classes or series of Units, or other Equity Interests of the Company, at such price, and with such designations, preferences and relative, participating, optional or other special
rights, powers and duties (which may be senior to existing Units, Classes and series of Units or other Company securities), as shall be necessary to parallel the economic and other rights of the Upstream Securities issued in such Managing Member
Equity Issuance, including (i) the right of such Units to share in Profits and Losses or items thereof; (ii) the right of such Units to share in 

  
 21 

 
Company distributions; (iii) the rights of such Units upon dissolution and liquidation of the Company; (iv) whether, and the terms and conditions upon which, the Company may or shall be
required to redeem such Units (including sinking fund provisions); (v) whether such Units are issued with the privilege of conversion or exchange and, if so, the terms and conditions of such conversion or exchange; (vi) the terms and
conditions upon which such Units will be issued, evidenced by certificates and assigned or transferred; (vii) the method for determining the Total Percentage Interest as to such Units; and (viii) the terms and conditions of the issuance of
such Units (including, without limitation, the amount and form of consideration, if any, to be received by the Company in respect thereof, the Managing Member being expressly authorized, in its sole discretion, to cause the Company to issue such
Units for less than fair market value). 
 (d)    If at any time any previously issued Upstream Securities having any
economic rights (but, for the avoidance of doubt, not including any Upstream Securities which only have voting rights) are retired or redeemed by the Managing Member, the Managing Member shall make such adjustments to the number of outstanding Units
or other Equity Interests held by it as are necessary to reflect the retiring or redemption of such Upstream Securities, including (i) canceling Units previously issued to the Managing Member, and (ii) to amend this Agreement, to the
extent necessary and to reflect the retirement of any Class or series of Units, including by adjusting the Total Percentage Interest. 

(e) Notwithstanding anything otherwise to the contrary herein, in connection with the grant or settlement of any award under any Managing
Member Incentive Plan, the Managing Member may, without the approval of any other Member, establish and issue additional Units, in one or more Classes or series of Units, or other Equity Interests of the Company, with such designations, preferences
and relative, participating, optional or other special rights, powers and duties as shall be determined by the Managing Member in its sole discretion; provided, however, that without the prior written consent of all Members who are
Stockholder Parties, the Managing Member may not issue Units under the Managing Member Incentive Plan to any Person if it would cause Units issued under the Managing Member Incentive Plan to be issued to more than 50 Persons at the time of issuance.

 (f) In accordance with Sections 7.01(c) and 7.01(e), the Managing Member in its sole discretion, without the approval of any Member or
any other Person, is authorized (i) to issue Units or other Company securities of any newly established Class or any existing Class to Members or other Persons who may acquire an interest in the Company and (ii) to amend this
Agreement to reflect the creation of any such new Class, the issuance of Units or other Company securities of such Class, and the admission of any Person as a Member which has received Units or other Company securities. Except as expressly provided
in this Agreement to the contrary, any reference to “Units” shall include the Class A Units and Units of any other Class or series that may be established in accordance with this Agreement. All Units of a particular
Class shall have identical rights in all respects as all other Units of such Class, except in each case as otherwise specified in this Agreement. 

Section 7.02.    Register. The books and records of the Company shall be the definitive record of ownership of
each Unit and all relevant information with respect to each Member. Unless the Managing Member in its sole discretion shall determine otherwise, Units shall be uncertificated and recorded in the books and records of the Company. 

Section 7.03.    Registered Members. The Company shall be entitled to recognize the exclusive right of a
Person registered on its records as the owner of Units for all purposes and shall not be bound to recognize any equitable or other claim to or interest in Units on the part of any other Person, whether or not it shall have express or other notice
thereof, except as otherwise provided by the Act or other applicable Law. 

  
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 ARTICLE VIII 

TRANSFER RESTRICTIONS 

Section 8.01.    Member Transfers 

(a)    Except as otherwise agreed to in writing between the Managing Member and the applicable Member and reflected in the
books and records of the Company or as otherwise provided in this Article VIII, no Member or Assignee thereof may Transfer (including pursuant to an Exchange Transaction) all or any portion of its Units or other interest in the Company (or
beneficial interest therein) without the prior consent of the Managing Member, which consent may be given or withheld, or made subject to such conditions (including, without limitation, the receipt of such legal opinions and other documents that the
Managing Member may require) as are determined by the Managing Member, in each case in the Managing Member’s sole discretion, and which consent may be in the form of a plan or program entered into or approved by the Managing Member, in its sole
discretion. Any such determination in the Managing Member’s discretion in respect of Units shall be final and binding. Such determinations need not be uniform and may be made selectively among Members, whether or not such Members are similarly
situated, and shall not constitute the breach of any duty hereunder or otherwise existing at law, in equity or otherwise. Any purported Transfer of Units that is not in accordance with, or subsequently violates, this Agreement shall be, to the
fullest extent permitted by law, null and void. 
 (b)    Notwithstanding anything otherwise to the contrary in this
Section 8.01, without the consent of the Managing Member or any other Person, each Member that is a Stockholder Party may Transfer all or any portion of its Units in a Transfer that complies with Section 8.04, unless the Managing Member
timely and reasonably objects in accordance with Section 8.04. 
 (c)    Notwithstanding
anything otherwise to the contrary in this Section 8.01, each Member may Transfer Units in Exchange Transactions pursuant to, and in accordance with, the Exchange Agreement; provided that in the case of any Member other than a Stockholder
Party, such Exchange Transactions shall be effected in compliance with reasonable policies that the Managing Member may adopt or promulgate from time to time (including policies requiring the use of designated administrators or brokers) in its sole
discretion. 
 (d)    Notwithstanding anything otherwise to the contrary in this Section 8.01, the Managing Member
may implement policies and procedures to permit the Transfer of Units by the other Members for personal planning purposes and any such Transfer effected in compliance with such policies and procedures shall not require the prior consent of the
Managing Member. 
 Section 8.02.    Mandatory Exchanges. The Managing Member may in its sole discretion at
any time and from time to time, without the consent of any Member or other Person, cause to be Transferred in an Exchange Transaction any and all Units, except for Units held by any Stockholder Party. Any such determinations by the Managing Member
need not be uniform and may be made selectively among Members, whether or not such Members are similarly situated. 

  
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 Section 8.03.    Encumbrances. No Member or Assignee may create
an Encumbrance with respect to all or any portion of its Units (or any beneficial interest therein) other than Encumbrances that run in favor of the Member unless the Managing Member consents in writing thereto, which consent may be given or
withheld, or made subject to such conditions as are determined by the Managing Member, in the Managing Member’s sole discretion. Consent of the Managing Member shall be withheld until the holder of the Encumbrance acknowledges the terms and
conditions of this Agreement. Any purported Encumbrance that is not in accordance with this Agreement shall be, to the fullest extent permitted by law, null and void. 

Section 8.04.    Further Restrictions. 

(a)    Units issued from time to time after the date of this Agreement, including Units issued under equity incentive
plans of the Company or the Managing Member (or upon settlement of awards granted under such plans), may be subject to such additional or other terms and conditions, including with regard to vesting, forfeiture, minimum retained ownership and
Transfer, as may be agreed between the Managing Member and the applicable Member and reflected in the books and records of the Company. Such requirements, provisions and restrictions need not be uniform and may be waived or released by the Managing
Member in its sole discretion with respect to all or a portion of the Units owned by any one or more Members at any time and from time to time, and shall not constitute the breach of any duty hereunder or otherwise existing at law, in equity or
otherwise. 
 (b)    Notwithstanding any contrary provision in this Agreement, in no event may any Transfer of a Unit be
made by any Member or Assignee if the Managing Member determines that: 
 (i)    such Transfer is made to any Person
who lacks the legal right, power or capacity to own such Unit; 
 (ii)    except pursuant to an Exchange Transaction,
such Transfer would require the registration of such transferred Unit or of any Class of Unit pursuant to any applicable U.S. federal or state securities laws (including, without limitation, the Securities Act or the Exchange Act) or other non-U.S. securities laws (including Canadian provincial or territorial securities laws) or would constitute a non-exempt distribution pursuant to applicable provincial or
state securities laws; 
 (iii)    such Transfer would cause (i) all or any portion of the assets of the Company
to (A) constitute “plan assets” (under ERISA, the Code or any applicable Similar Law) of any existing or contemplated Member, or (B) be subject to the provisions of ERISA, Section 4975 of the Code or any applicable Similar
Law, or (ii) the Managing Member to become a fiduciary with respect to any existing or contemplated Member, pursuant to ERISA, any applicable Similar Law, or otherwise; 

(iv)    to the extent requested by the Managing Member, the Company does not receive such legal and/or tax opinions and
written instruments (including, without limitation, copies of any instruments of Transfer and such Assignee’s consent to be bound by this Agreement as an Assignee) that are in a form satisfactory to the Managing Member, as determined in the
Managing Member’s sole discretion; provided that no such legal and/or tax opinions shall be required for a Transfer by a Stockholder Party; or 

  
 24 

 (v)    the Managing Member shall reasonably determine that such Transfer
would pose a material risk that the Company would be treated as a “publicly traded partnership” within the meaning of Section 7704 of the Code and the regulations promulgated thereunder. 

All determinations with respect to this Section 8.04 shall be made by the Managing Member in its sole discretion; provided, however, that all
such determinations with respect to a Stockholder Party shall be made by the Managing Member exercising its reasonable discretion. 

(c)    In addition, notwithstanding any contrary provision in this Agreement, to the extent the Managing Member shall
reasonably determine that interests in the Company do not meet the requirements of Treasury Regulation Section 1.7704-1(h), the Managing Member may impose such restrictions on the Transfer of Units or
other interests in the Company as the Managing Member may reasonably determine to be necessary or advisable so that the Company is not treated as a “publicly traded partnership” within the meaning of Section 7704 of the Code and the
regulations promulgated thereunder. 
 (d)    To the fullest extent permitted by law, any Transfer in violation of this
Article VIII shall be deemed null and void ab initio and of no effect. 
 Section 8.05.    Rights of
Assignees. Subject to Section 8.04(b), the Transferee of any permitted Transfer pursuant to this Article VIII will be an assignee only (“Assignee”), and only will receive, to the extent transferred, the distributions and
allocations of income, gain, loss, deduction, credit or similar item to which the Member which transferred its Units would be entitled, and such Assignee will not be entitled or enabled to exercise any other rights or powers of a Member, such other
rights, and all obligations relating to, or in connection with, such interest remaining with the transferring Member. The transferring Member will remain a Member even if it has transferred all of its Units to one or more Assignees until such time
as the Assignee(s) is admitted to the Company as a Member pursuant to Section 8.07. 

Section 8.06.    Admissions, Resignations and Removals 

(a)    No Person may be admitted to the Company as an additional Managing Member or substitute Managing Member without the
prior written consent of each incumbent Managing Member, which consent may be given or withheld, or made subject to such conditions as are determined by each incumbent Managing Member, in each case in the sole discretion of each incumbent Managing
Member. A Managing Member will not be entitled to resign as a Managing Member of the Company unless another Managing Member shall have been admitted hereunder (and not have previously been removed or resigned). 

(b)    No Member will be removed or entitled to resign from being a Member of the Company except in accordance with
Section 8.08 hereof. Any additional Managing Member or substitute Managing Member admitted as a Managing Member of the Company pursuant to this Section 8.06 is hereby authorized to, and shall, continue the Company without dissolution. 

(c)    Except as otherwise provided in Article IX or the Act, no admission, substitution, resignation or removal of a
Member will cause the dissolution of the Company. To the fullest extent permitted by law, any purported admission, resignation or removal that is not in accordance with this Agreement shall be null and void. 

  
 25 

 Section 8.07.    Admission of Assignees as Substitute Members. An
Assignee will become a substitute Member only if and when each of the following conditions is satisfied: 
 (a)    the
Managing Member consents in writing to such admission, which consent may be given or withheld, or made subject to such conditions as are determined by the Managing Member, in each case in the Managing Member’s sole discretion; 

(b)    if required by the Managing Member, the Managing Member receives written instruments (including, without
limitation, copies of any instruments of Transfer and such Assignee’s consent to be bound by this Agreement as a substitute Member) that are in a form satisfactory to the Managing Member (as determined in its sole discretion); 

(c)    if required by the Managing Member, the Managing Member receives an opinion of counsel satisfactory to the Managing
Member to the effect that such Transfer is in compliance with this Agreement and all applicable Law; provided that no such opinion of counsel shall be required for a Transfer by a Stockholder Party; and 

(d)    if required by the Managing Member, the parties to the Transfer, or any one of them, pays all of the Company’s
reasonable expenses connected with such Transfer (including, but not limited to, the reasonable legal and accounting fees of the Company); provided that no Stockholder Party shall be required to pay the Company’s reasonable expenses
connected with a Transfer by such Stockholder Party. 
 Section 8.08.    Resignation and Removal of Members.
Subject to Section 8.05, if a Member (other than the Managing Member) ceases to hold any Units then such Member shall cease to be a Member and to have the power to exercise any rights or powers of a member of the Company, and shall be deemed to
have resigned from the Company. 
 ARTICLE IX 

DISSOLUTION, LIQUIDATION AND TERMINATION 

Section 9.01.    No Dissolution. Except as required by the Act, the Company shall not be dissolved by the
admission of additional Members or resignation of Members in accordance with the terms of this Agreement. The Company may be dissolved, liquidated, wound up and terminated only pursuant to the provisions of this Article IX, and the Members hereby
irrevocably waive any and all other rights they may have to cause a dissolution of the Company or a sale or partition of any or all of the Company assets. 

Section 9.02.    Events Causing Dissolution. The Company shall be dissolved and its affairs shall be wound up
upon the occurrence of any of the following events (each, a “Dissolution Event”): 
 (a)    the entry
of a decree of judicial dissolution of the Company under Section 18-802 of the Act upon the finding by a court of competent jurisdiction that it is not reasonably practicable to carry on the business of
the Company in conformity with this Agreement; 

  
 26 

 (b)    any event which makes it unlawful for the business of the Company to
be carried on by the Members; 
 (c)    the written consent of all Members; 

(d)    at any time there are no Members, unless the Company is continued in accordance with the Act; 

(e)    the Incapacity or removal of the Managing Member or the occurrence of a Disabling Event with respect to the
Managing Member; provided that the Company will not be dissolved or required to be wound up in connection with any of the events specified in this Section 9.02(e) if: (i) at the time of the occurrence of such event there is at least one
other Managing Member of the Company who is hereby authorized to, and elects to, carry on the business of the Company; or (ii) all remaining Members consent to or ratify the continuation of the business of the Company and the appointment of
another Managing Member of the Company, effective as of the event that caused the Managing Member to cease to be a Managing Member of the Company, within 120 days following the occurrence of any such event, which consent shall be deemed (and if
requested each Member shall provide a written consent or ratification) to have been given for all Members if the holders of more than 50% of the Vested Units then outstanding agree in writing to so continue the business of the Company; or 

(f)    the determination of the Managing Member in its sole discretion; provided that in the event of a dissolution
pursuant to this clause (f), the relative economic rights of each Class of Units immediately prior to such dissolution shall be preserved to the greatest extent practicable with respect to distributions made to Members pursuant to
Section 9.03 below in connection with the winding up of the Company, taking into consideration tax and other legal constraints that may adversely affect one or more parties hereto and subject to compliance with applicable laws and regulations,
unless, and to the extent that, with respect to any Class of Units, holders of not less than 90% of the Units of such Class consent in writing to a treatment other than as described above. 

Section 9.03.    Distribution upon Dissolution. Upon dissolution, the Company shall not be terminated and
shall continue until the winding up of the affairs of the Company is completed. Upon the winding up of the Company, the Managing Member, or any other Person designated by the Managing Member (the “Liquidation Agent”), shall take
full account of the assets and liabilities of the Company and shall, unless the Managing Member determines otherwise, liquidate the assets of the Company as promptly as is consistent with obtaining the fair value thereof. The proceeds of any
liquidation shall be applied and distributed in the following order: 
 (a)    First, to the satisfaction of debts and
liabilities of the Company (including satisfaction of all indebtedness to Members and/or their Affiliates to the extent otherwise permitted by law) including the expenses of liquidation, and including the establishment of any reserve which the
Liquidation Agent shall deem reasonably necessary for any contingent, conditional or unmatured contractual liabilities or obligations of the Company (“Contingencies”). Any such reserve may be paid over by the Liquidation Agent to
any attorney-at-law, or acceptable party, as escrow agent, to be held for disbursement in payment of any Contingencies and, at the expiration of such period as shall be
deemed advisable by the Liquidation Agent for distribution of the balance in the manner hereinafter provided in this Section 9.03; and 

  
 27 

 (b)    The balance, if any, to the Members, pro rata in accordance
with the Members’ respective Total Percentage Interests. 
 Section 9.04.    Time for Liquidation. A
reasonable amount of time shall be allowed for the orderly liquidation of the assets of the Company and the discharge of liabilities to creditors so as to enable the Liquidation Agent to minimize the losses attendant upon such liquidation. 

Section 9.05.    Termination. The Company shall terminate when all of the assets of the Company, after payment
of or due provision for all debts, liabilities and obligations of the Company, shall have been distributed to the holders of Units in the manner provided for in this Article IX, and the Certificate shall have been cancelled in the manner required by
the Act. 
 Section 9.06.    Claims of the Members. The Members shall look solely to the Company’s
assets for the return of their Capital Contributions, and if the assets of the Company remaining after payment of or due provision for all debts, liabilities and obligations of the Company are insufficient to return such Capital Contributions, the
Members shall have no recourse against the Company or any other Member or any other Person. No Member with a negative balance in such Member’s Capital Account shall have any obligation to the Company or to the other Members or to any creditor
or other Person to restore such negative balance during the existence of the Company, upon dissolution or termination of the Company or otherwise, except to the extent required by the Act. 

Section 9.07.    Survival of Certain Provisions. Notwithstanding anything to the contrary in this Agreement,
the provisions of Sections 5.07, 10.02, 11.09 and 11.10 shall survive the termination of the Company. 
 ARTICLE X 

LIABILITY AND INDEMNIFICATION 

Section 10.01.    Liability of Members 

(a)    No Member and no Affiliate, manager, member, employee or agent of a Member shall be liable for any debt, obligation
or liability of the Company or of any other Member or have any obligation to restore any deficit balance in its Capital Account solely by reason of being a Member of the Company, except to the extent required by the Act. 

(b)    This Agreement is not intended to, and does not, create or impose any duty (including any fiduciary duty) on any of
the Members (including without limitation, the Managing Member) hereto or on their respective Affiliates. Further, notwithstanding any other provision of this Agreement or any duty otherwise existing at law or in equity, the parties hereto agree
that no Member or Managing Member shall, to the fullest extent permitted by law, have duties (including fiduciary duties) to any other Member or to the Company, and in doing so, recognize, acknowledge and agree that their duties and obligations to
one another and to the Company are only as expressly set forth in this Agreement; provided, however, that each Member shall have the duty to act in accordance with the implied contractual covenant of good faith and fair dealing. 

  
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 (c)    To the extent that, at law or in equity, any Member (including without
limitation, the Managing Member) has duties (including fiduciary duties) and liabilities relating thereto to the Company, to another Member or to another Person who is a party to or is otherwise bound by this Agreement, the Members (including
without limitation, the Managing Member) acting under this Agreement will not be liable to the Company, to any such other Member or to any such other Person who is a party to or is otherwise bound by this Agreement, for their good faith reliance on
the provisions of this Agreement. The provisions of this Agreement, to the extent that they restrict or eliminate the duties and liabilities relating thereto of any Member (including without limitation, the Managing Member) otherwise existing at law
or in equity, are agreed by the Members to replace to that extent such other duties and liabilities of the Members relating thereto (including without limitation, the Managing Member). 

(d)    The Managing Member may consult with legal counsel, accountants and financial or other advisors selected by it, and
any act or omission taken by the Managing Member on behalf of the Company or in furtherance of the interests of the Company in good faith in reliance upon and in accordance with the advice of such Person as to matters the Managing Member reasonably
believes to be within such Person’s professional or expert competence shall be conclusively presumed to have been done or omitted in good faith and in accordance with such opinion or advice, and the Managing Member will be fully protected in so
acting or omitting to act so long as such counsel or accountants or financial or other advisors were selected with reasonable care. 

(e)    Notwithstanding any other provision of this Agreement or otherwise applicable provision of law or equity, whenever
in this Agreement the Managing Member is permitted or required to make a decision (i) in its “sole discretion” or “discretion” or under a grant of similar authority or latitude, such Managing Member shall be entitled to
consider only such interests and factors as it desires, including its own interests, and shall, to the fullest extent permitted by applicable Law, have no duty or obligation to give any consideration to any interest of or factors affecting the
Company or the Members, or (ii) in its “good faith” or under another expressed standard, such Managing Member shall act under such express standard and shall not be subject to any other or different standards. 

Section 10.02.    Indemnification. 

(a)    Exculpation and Indemnification. Notwithstanding any other provision of this Agreement, whether express or
implied, to the fullest extent permitted by law, no Indemnitee shall be liable to the Company or any Member for any act or omission in relation to the Company or this Agreement or any transaction contemplated hereby taken or omitted by an Indemnitee
unless such Indemnitee’s conduct constituted fraud, bad faith or willful misconduct. To the fullest extent permitted by law, as the same exists or hereafter be amended (but in the case of any such amendment, only to the extent that such
amendment permits the Company to provide broader indemnification rights than such law permitted the Company to provide prior to such amendment), the Company shall indemnify any Indemnitee who was or is made or is threatened to be made a party to or
is otherwise involved in any threatened, pending or completed action, suit or proceeding 

  
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(brought in the right of the Company or otherwise), whether civil, criminal, administrative, arbitrative or investigative, and whether formal or informal (hereinafter a
“Proceeding”), including appeals, by reason of his or her or its status as an Indemnitee or by reason of any action alleged to have been taken or omitted to be taken by Indemnitee in such capacity, for and against all loss and
liability suffered and expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement reasonably incurred by such Indemnitee in connection with such action, suit or proceeding, including appeals; provided that such
Indemnitee shall not be entitled to indemnification hereunder if, but only to the extent that, such Indemnitee’s conduct constituted fraud, bad faith or willful misconduct. Notwithstanding the preceding sentence, except as otherwise provided in
Section 10.02(c), the Company shall be required to indemnify an Indemnitee in connection with any action, suit or proceeding (or part thereof) (i) commenced by such Indemnitee only if the commencement of such action, suit or proceeding (or
part thereof) by such Indemnitee was authorized by the Managing Member, and (ii) by or in the right of the Company only if the Managing Member has provided its prior written consent. The indemnification of an Indemnitee of the type identified
in clause (e) of the definition of Indemnitee shall be secondary to any and all indemnification to which such Indemnitee is entitled from the relevant other Person (including any payment made to such Indemnitee under any insurance policy issued
to or for the benefit of such Person or Indemnitee) (the “Primary Indemnification”), and will only be paid to the extent the Primary Indemnification is not paid and/or does not provide coverage (e.g., a self-insured retention amount
under an insurance policy). No such Person shall be entitled to contribution or indemnification from or subrogation against the Company. The indemnification of any other Indemnitee shall, to the extent not in conflict with such policy, be secondary
to any and all payment to which such Indemnitee is entitled from any relevant insurance policy issued to or for the benefit of the Company or any Indemnitee. 

(b)    Advancement of Expenses. To the fullest extent permitted by law, the Company shall promptly pay reasonable
expenses (including attorneys’ fees) incurred by any Indemnitee in appearing at, participating in or defending any Proceeding in advance of the final disposition of such Proceeding, including appeals, upon presentation of an undertaking on
behalf of such Indemnitee to repay such amount if it shall ultimately be determined that such Indemnitee is not entitled to be indemnified under this Section 10.02 or otherwise. Notwithstanding the preceding sentence,
except as otherwise provided in Section 10.02(c), the Company shall be required to pay expenses of an Indemnitee in connection with any Proceeding (or part thereof) (i) commenced by such Indemnitee only if the
commencement of such action, suit or proceeding (or part thereof) by such Indemnitee was authorized by the Managing Member and (ii) by or in the right of the Company only if the Managing Member has provided its prior written consent. 

(c)    Unpaid Claims. If a claim for indemnification (following the final disposition of such Proceeding) or
advancement of expenses under this Section 10.02 is not paid in full within 30 days after a written claim therefor by any Indemnitee has been received by the Company, such Indemnitee may file proceedings to recover the unpaid amount of such
claim and, if successful in whole or in part, shall be entitled to be paid the expense of prosecuting such claim. In any such action the Company shall have the burden of proving that such Indemnitee is not entitled to the requested indemnification
or advancement of expenses under applicable Law. 

  
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 (d)    Insurance. (i) To the fullest extent permitted by law, the
Company may purchase and maintain insurance on behalf of any person described in Section 10.02(a) against any liability asserted against such person, whether or not the Company would have the power to indemnify such person against such
liability under the provisions of this Section 10.02 or otherwise. 
 (ii)    In the event of any payment by the
Company under this Section 10.02, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of the Indemnitee from any relevant other Person or under any insurance policy issued to or for the benefit of the
Company, such relevant other Person, or any Indemnitee. Each Indemnitee agrees to execute all papers required and take all action necessary to secure such rights, including the execution of such documents as are necessary to enable the Company to
bring suit to enforce any such rights in accordance with the terms of such insurance policy or other relevant document. The Company shall pay or reimburse all expenses actually and reasonably incurred by the Indemnitee in connection with such
subrogation. 
 (iii)    The Company shall not be liable under this Section 10.02 to make any payment of amounts
otherwise indemnifiable hereunder (including, but not limited to, judgments, fines and amounts paid in settlement, and excise taxes with respect to an employee benefit plan or penalties) if and to the extent that the applicable Indemnitee has
otherwise actually received such payment under this Section 10.02 or any insurance policy, contract, agreement or otherwise. 

(e)    Non-Exclusivity of Rights. The provisions of this Section 10.02
shall be applicable to all actions, claims, suits or proceedings made or commenced after the date of this Agreement, whether arising from acts or omissions to act occurring before or after its adoption. The provisions of this Section 10.02
shall be deemed to be a contract between the Company and each person entitled to indemnification under this Section 10.02 (or legal representative thereof) who serves in such capacity at any time while this
Section 10.02 and the relevant provisions of applicable Law, if any, are in effect, and any amendment, modification or repeal hereof shall not affect any rights or obligations then existing with respect to any state of
facts or any action, suit or proceeding then or theretofore existing, or any action, suit or proceeding thereafter brought or threatened based in whole or in part on any such state of facts. If any provision of this
Section 10.02 shall be found to be invalid or limited in application by reason of any law or regulation, it shall not affect the validity of the remaining provisions hereof. The rights of indemnification provided in this
Section 10.02 shall neither be exclusive of, nor be deemed in limitation of, any rights to which any person may otherwise be or become entitled or permitted by contract, this Agreement or as a matter of law, both as to
actions in such person’s official capacity and actions in any other capacity, it being the policy of the Company that indemnification of any person whom the Company is obligated to indemnify pursuant to
Section 10.02(a) shall be made to the fullest extent permitted by law. 
 For purposes of this Section 10.02,
references to “other enterprises” shall include employee benefit plans; references to “fines” shall include any excise taxes assessed on a person with respect to an employee benefit plan; and references to “serving at the
request of the Company” shall include any service as a director, officer, employee or agent of the Company which imposes duties on, or involves services by, such director, officer, employee, or agent with respect to an employee benefit plan,
its participants, or beneficiaries. 

  
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 This Section 10.02 shall not limit the right of the Company, to the
extent and in the manner permitted by law, to indemnify and to advance expenses to, and purchase and maintain insurance on behalf of, persons other than persons described in Section 10.02(a). 

(f)    Notwithstanding anything in this Section 10.02, in no event will the Company be required
to indemnify or advance expenses to any Indemnitee with respect to any Proceeding arising out of such Indemnitee’s breach or failure to perform under the Exchange Agreement, the Stockholders Agreement, or the Registration Rights Agreement. 

ARTICLE XI 
 MISCELLANEOUS 

Section 11.01.    Severability. If any term or other provision of this Agreement is held to be invalid,
illegal or incapable of being enforced by any rule of Law, or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions is
not affected in any manner materially adverse to any party. Upon a determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to
effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the fullest extent possible. 

Section 11.02.    Notices. All notices, requests, claims, demands and other communications hereunder shall be
in writing and shall be given (and shall be deemed to have been duly given upon receipt) by delivery in person, by courier service (delivery receipt requested), by fax, by electronic mail or by registered or certified mail (postage prepaid, return
receipt requested) to the respective parties at the following addresses (or at such other address for a party as shall be specified in a notice given in accordance with this Section 11.02): 

(a)    If to the Company, to: 

Vista Proppants and Logistics, LLC 

c/o Vista Proppants and Logistics Inc. 

4413 Carey Street                 

Fort Worth, Texas 76119                 

Attention: Chief Financial Officer 

Email: ksmith@vprop.com 
 With a
copy to 
 Vista Proppants and Logistics, LLC 

c/o Vista Proppants and Logistics Inc. 

4413 Carey Street                 

Fort Worth, Texas 76119                 

Attention: Chief Executive Officer 

Email: ghumphreys@vprop.com 

  
 32 

 (b)    If to any Member other than the Managing Member, to such Member at the
address of such Member as set forth on Exhibit A 
 (c)    If to the Managing Member, to: 

Vista Proppants and Logistics Inc. 

4413 Carey Street                 

Fort Worth, Texas 76119                 

Attention: Chief Financial Officer 

Email: ksmith@vprop.com 
 With a
copy to 
 Vista Proppants and Logistics, LLC 

c/o Vista Proppants and Logistics Inc. 

4413 Carey Street                 

Fort Worth, Texas 76119                 

Attention: Chief Executive Officer 

Email: ghumphreys@vprop.com 

Section 11.03.    Cumulative Remedies. The rights and remedies provided by this Agreement are cumulative and
the use of any one right or remedy by any party shall not preclude or waive its right to use any or all other remedies. Said rights and remedies are given in addition to any other rights the parties may have by Law. 

Section 11.04.    Binding Effect. This Agreement shall be binding upon and inure to the benefit of all of the
parties and, to the extent permitted by this Agreement, their successors, executors, administrators, heirs, legal representatives and assigns. 

Section 11.05.    Interpretation. Throughout this Agreement, nouns, pronouns and verbs shall be construed as
masculine, feminine, neuter, singular or plural, whichever shall be applicable. Unless otherwise specified, all references herein to “Articles,” “Sections” and paragraphs shall refer to corresponding provisions of this Agreement.

 Each party hereto acknowledges and agrees that the parties hereto have participated collectively in the negotiation and drafting of this
Agreement and that he or she or it has had the opportunity to draft, review and edit the language of this Agreement; accordingly, it is the intention of the parties that no presumption for or against any party arising out of drafting all or
any part of this Agreement will be applied in any dispute relating to, in connection with or involving this Agreement. Accordingly, the parties hereby waive to the fullest extent permitted by law the benefit of any rule of law or any legal decision
that would require that in cases of uncertainty, the language of a contract should be interpreted most strongly against the party who drafted such language. 

  
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 Section 11.06.    Counterparts. This Agreement may be executed
and delivered (including by email or facsimile transmission) in one or more counterparts, and by the different parties hereto in separate counterparts, each of which when executed and delivered shall be deemed to be an original but all of which
taken together shall constitute one and the same agreement. Copies of executed counterparts transmitted by telecopy or other electronic transmission service shall be considered original executed counterparts for purposes of this Section 11.06.

 Section 11.07.    Further Assurances. Each Member shall perform all other acts and execute and deliver
all other documents as may be necessary or appropriate to carry out the purposes and intent of this Agreement. 

Section 11.08.    Entire Agreement. This Agreement constitutes the entire agreement among the parties hereto
pertaining to the subject matter hereof and supersedes all prior agreements and understandings, whether oral or written, pertaining thereto (including, without limitation, the Existing Agreement). 

Section 11.09.    Governing Law. This Agreement shall be governed by, and construed in accordance with, the
law of the State of Delaware. 
 Section 11.10.    Submission to Jurisdiction; Waiver of Jury Trial. 

(a)    Any and all disputes which cannot be settled amicably with respect to this Agreement, including any action (at law
or in equity), claim, litigation, suit, arbitration, hearing, audit, review, inquiry, proceeding or investigation or ancillary claims of any party, arising out of, relating to or in connection with the validity, negotiation, execution,
interpretation, performance or non-performance of this Agreement or any matter arising out of or in connection with this Agreement and the rights and obligations arising hereunder or thereunder, or for
recognition and enforcement of any judgment in respect of this Agreement and the rights and obligations arising hereunder or thereunder brought by a party hereto or its successors or assigns, shall be brought and determined exclusively in the
Delaware Chancery Court, if such court shall not have jurisdiction, any federal court located in the State of Delaware, or, if neither of such courts shall have jurisdiction, any other Delaware state court. Each of the parties hereby irrevocably
submits with regard to any such dispute for itself and in respect of its property, generally and unconditionally, to the sole and exclusive personal jurisdiction of the aforesaid courts and agrees that it will not bring any dispute relating to this
Agreement or any of the transactions contemplated by this Agreement in any court other than the aforesaid courts. Each party irrevocably consents to service of process in any dispute in any of the aforesaid courts by the mailing of copies thereof by
registered or certified mail, postage prepaid, or by recognized overnight delivery service, to such party at such party’s address referred to in Section 11.02. Each party hereby irrevocably and unconditionally waives, and agrees not to
assert as a defense, counterclaim or otherwise, in any action brought by any party with respect to this Agreement (i) any claim that it is not personally subject to the jurisdiction of the aforesaid courts for any reason other than the failure
to serve process in accordance with this Section 11.10; (ii) any claim that it or its property is exempt or immune from the jurisdiction of any such court or from any legal process commenced in such courts (whether through service of notice,
attachment prior to judgment, attachment in aid of execution of judgment, execution of judgment or otherwise); or (iii) any objection which such party may now or hereafter have (A) to the laying of venue of any of the aforesaid actions
arising out of or in connection with this Agreement brought in the courts referred to above; (B) that such action brought in any such court has been brought in an inconvenient forum and (C) that this Agreement, or the subject matter hereof
or thereof, may not be enforced in or by such courts. 

  
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 (b)    To the extent that any party has or hereafter may acquire any immunity
from jurisdiction of any court or from any legal process (whether through service or notice, attachment prior to judgment, attachment in aid of execution, execution or otherwise) with respect to itself, or to such party’s property, each such
party hereby irrevocably waives such immunity in respect of such party’s obligations with respect to this Agreement. 

(C)    EACH PARTY ACKNOWLEDGES THAT
IT IS KNOWINGLY AND VOLUNTARILY AGREEING TO THE CHOICE OF DELAWARE
LAW TO GOVERN THIS AGREEMENT AND TO THE JURISDICTION OF DELAWARE
COURTS IN CONNECTION WITH PROCEEDINGS BROUGHT HEREUNDER. THE PARTIES INTEND THIS
TO BE AN EFFECTIVE CHOICE OF DELAWARE LAW AND AN EFFECTIVE CONSENT
TO JURISDICTION AND SERVICE OF PROCESS UNDER 6 DEL. C. § 2708. 

(d)    EACH PARTY, FOR ITSELF AND
ITS AFFILIATES, HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW ALL RIGHT TO TRIAL BY JURY IN ANY
ACTION OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING
OUT OF OR RELATING TO THE ACTIONS OF THE PARTIES OR THEIR
RESPECTIVE AFFILIATES PURSUANT TO THIS AGREEMENT OR THE OTHER TRANSACTION DOCUMENTS
IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE OR ENFORCEMENT HEREOF OR THEREOF. 

Section 11.11.    Expenses. Except as otherwise specified in this Agreement, the Company shall be responsible
for all costs and expenses, including, without limitation, fees and disbursements of counsel, financial advisors and accountants, incurred by the Members and the Company in connection with the preparation, negotiation, and operation of this
Agreement. 
 Section 11.12.    Amendments and Waivers 

(a)    This Agreement (including the Annexes hereto) may be amended, supplemented, waived or modified by the Managing
Member in its sole discretion without the approval of any other Member or other Person; provided that no amendment, including any amendment effected by way of merger, consolidation or transfer of all or substantially all the assets of the Company,
may materially and adversely affect the rights of a holder of Units, as such, other than on a pro rata basis with other holders of Units of the same Class without the consent of such holder (or, if there is more than one such holder that is so
affected, without the consent of a majority in interest of such affected holders in accordance with their holdings of such Class of Units); provided further, however, that notwithstanding the foregoing, the Managing Member may, without the
written consent of any Member or any other Person, amend, supplement, waive or modify any provision of this Agreement and execute, swear to, acknowledge, deliver, file and record whatever documents may be required in connection therewith, to
reflect: (1) any amendment, supplement, waiver or modification that the Managing Member determines in its reasonable discretion to be necessary or appropriate in connection with the creation, authorization or issuance of Units or any
Class or series of equity interest in the Company pursuant to Section 7.01(c) or Section 7.01(e) hereof; (2) the admission, substitution, or withdrawal of Members in accordance with this
Agreement, pursuant to Section 8.07 hereof; (3) a change in the name of the Company, the location of the principal place of business of the Company, the registered agent of

  
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the Company or the registered office of the Company; (4) any amendment, supplement, waiver or modification that the Managing Member determines in its reasonable discretion to be necessary or
appropriate to address changes in U.S. federal income tax regulations, legislation or interpretation; and/or (5) a change in the Fiscal Year or taxable year of the Company and any other changes that the Managing Member determines to be
necessary or appropriate as a result of a change in the Fiscal Year or taxable year of the Company including a change in the dates on which distributions are to be made by the Company; provided, further, that notwithstanding the foregoing, no
amendment, including any amendment effected by way of merger, consolidation or transfer of all or substantially all the assets of the Company, may materially and adversely affect the rights of a Member that is a Stockholder Party without the consent
of such Member. If an amendment has been approved in accordance with this agreement, such amendment shall be adopted and effective with respect to all Members. Upon obtaining such approvals as may be required by this Agreement, and without further
action or execution on the part of any other Member or other Person, any amendment to this Agreement may be implemented and reflected in a writing executed solely by the Managing Member and the other Members shall be deemed a party to and bound by
such amendment. 
 (b)    No failure or delay by any party in exercising any right, power or privilege hereunder (other
than a failure or delay beyond a period of time specified herein) shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or
privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by Law. 

(c)    The Managing Member may, in its sole discretion, unilaterally amend this Agreement on or before the effective date
of the final regulations to provide for (i) the election of a safe harbor under Proposed Treasury Regulation Section 1.83-3(l) (or any similar provision) under which the fair market value of a
Company interest (or interest in an entity treated as a partnership for U.S. federal income tax purposes) that is transferred is treated as being equal to the liquidation value of that interest, (ii) an agreement by the Company and each of its
Members to comply with all of the requirements set forth in such regulations and Notice 2005-43 (and any other guidance provided by the Internal Revenue Service with respect to such election) with respect to
all Company interests (or interest in an entity treated as a partnership for U.S. federal income tax purposes) transferred in connection with the performance of services while the election remains effective, (iii) the allocation of items of
income, gains, deductions and losses required by the final regulations similar to Proposed Treasury Regulation Section 1.704-1(b)(4)(xii)(b) and (c),
1.704-1(b)(2)(iv)(b)(1) and any other related amendments. 
 (d)    Except as
may be otherwise required by law in connection with the winding-up, liquidation, or dissolution of the Company, each Member hereby irrevocably waives any and all rights that it may have to maintain an action
for judicial accounting or for partition of any of the Company’s property. 
 Section 11.13.    No Third
Party Beneficiaries. This Agreement shall be binding upon and inure solely to the benefit of the parties hereto and their permitted assigns and successors and nothing herein, express or implied, is intended to or shall confer upon any other
Person or entity, any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this Agreement (other than pursuant to Section 10.02 hereof); provided, however that each employee,

  
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officer, director, agent or indemnitee of any Person who is bound by this Agreement or its Affiliates is an intended third party beneficiary of Section 11.10 and shall be entitled to enforce
its rights thereunder. 
 Section 11.14.    Headings. The headings and subheadings in this Agreement are
included for convenience and identification only and are in no way intended to describe, interpret, define or limit the scope, extent or intent of this Agreement or any provision hereof. 

Section 11.15.    Power of Attorney. Each Member, by its execution hereof, hereby makes, constitutes and
appoints the Managing Member as its true and lawful agent and attorney in fact, with full power of substitution and full power and authority in its name, place and stead, to make, execute, sign, acknowledge, swear to, record and file (a) this
Agreement and any amendment to this Agreement that has been consented to and adopted as herein provided; (b) all amendments to the Certificate required or permitted by law or the provisions of this Agreement; (c) all certificates and other
instruments (including consents and ratifications which the Members have agreed to provide upon a matter receiving the agreed support of Members) deemed advisable by the Managing Member to carry out the provisions of this Agreement and Law or to
permit the Company to become or to continue as a limited liability company or entity wherein the Members have limited liability in each jurisdiction where the Company may be doing business; (d) all instruments that the Managing Member deems
appropriate to reflect a change or modification of this Agreement or the Company in accordance with this Agreement, including, without limitation, the admission of additional Members or substituted Members pursuant to the provisions of this
Agreement; (e) all conveyances and other instruments or papers deemed advisable by the Managing Member to effect the liquidation and termination of the Company; and (f) all fictitious or assumed name certificates required or permitted (in
light of the Company’s activities) to be filed on behalf of the Company. 
 Section 11.16.    Separate
Agreements; Schedules. Notwithstanding any other provision of this Agreement, including Section 11.12, the Managing Member in its sole discretion may, or may cause the Company to, without the approval of any Member or other Person, enter
into separate subscription, letter or other agreements with individual Members with respect to any matter, which have the effect of establishing rights under, or altering, supplementing or amending the terms of, this Agreement. The parties hereto
agree that any terms contained in any such separate agreement shall govern with respect to such Member(s) party thereto notwithstanding the provisions of this Agreement. The Managing Member in its sole discretion may from time to time execute and
deliver to the Members schedules which set forth information contained in the books and records of the Company and any other matters deemed appropriate by the Managing Member. Such schedules shall be for information purposes only and shall not be
deemed to be part of this Agreement for any purpose whatsoever. Notwithstanding anything to the contrary, solely for U.S. federal income tax purposes, this Agreement, the Tax Receivable Agreement, and any other separate agreement described in this
Section 11.16 shall constitute a “partnership agreement” within the meaning of Section 706(c) of the Code. 

Section 11.17.    Partnership Status. The Members intend to treat the Company as a partnership for U.S.
federal income tax purposes and notwithstanding anything to the contrary herein, no election to the contrary shall be made. 

  
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 Section 11.18.    Delivery by Facsimile or Email. This Agreement,
the agreements referred to herein, and each other agreement or instrument entered into in connection herewith or therewith or contemplated hereby or thereby, and any amendments hereto or thereto, to the extent signed and delivered by means of a
facsimile machine or email with scan or facsimile attachment, shall be treated in all manner and respects as an original agreement or instrument and shall be considered to have the same binding legal effect as if it were the original signed version
thereof delivered in person. No party hereto or to any such agreement or instrument shall raise the use of a facsimile machine or email to deliver a signature or the fact that any signature or agreement or instrument was transmitted or communicated
through the use of a facsimile machine or email as a defense to the formation or enforceability of a contract, and each such party forever waives any such defense. 

[Remainder of Page Intentionally Left Blank] 

  
 38 

 IN WITNESS WHEREOF, the parties hereto have entered into this Agreement or have caused this
Agreement to be duly executed by their respective authorized officers, in each case as of the date first above stated. 
  

			
	MANAGING MEMBER:
	
	VISTA PROPPANTS AND LOGISTICS INC.

 
			
		
	By:	 	  

	Name:	 	
	Title:	 	

 
			
	
	OTHER MEMBERS:
		
	[●]	 	 

 [Signature page – Limited Liability Company Agreement of Vista Proppants and Logistics, LLC]

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