Document:

exv10wp

Exhibit 10(p)

	 	 	 

	POLICIES AND PROCEDURES

	 	NO. RS — 06
	DATE:      1 December 2010 (revised)
	 	 
	SUBJECT:      SENIOR MANAGEMENT BENEFITS
	 	 
	SCHEDULE A
	 	 

In addition to all of the fringe benefits provided to salaried employees, Division Vice
Presidents/General Managers, Vice President-Administration, Chief Technology Officer, Chief
Information Officer and Subsidiary Presidents (the “Senior Managers”) will have the following
additional benefits:

	1.	 	Insurance premiums will be one-half the amount paid by regular salaried employees with equal
seniority for all individual and family health coverage. Life, disability and dental insurance
coverage will be paid in full.

	2.	 	Supplemental health insurance benefits for the Senior Managers and dependents up to 4% of the
total of the current base salary.

	3.	 	Health Club membership or equivalent in home exercise equipment.

	4.	 	Group Life Insurance and A.D. & D. at 2.0 times annualized base salary as of February
1st each year. The Group Life Insurance / AD&D policy is updated annually
on March 1st each year, and the benefit will be limited to the maximum
benefit offered by the current life insurance carrier.

	5.	 	Full pay for sick leave up to a point where disability insurance coverage begins. Disability
insurance is 60% of base salary, non-integrated with Social Security. Provisions of the actual
policy will govern the exact amount of payments.

	6.	 	Two additional weeks of paid vacation in addition to the regular established vacation policy.

	7.	 	Physical examination provided by the Company will be given on a biennial basis to age 60 on
individuals who are asymptomatic, annually if symptomatic. Above age 60 examinations will be
annually.

	8.	 	Senior Manager’s annual base salary will be grossed up at the end of the calendar year to
compensate for the additional payroll and income tax burden created by the treatment of
benefits under Numbers 1, 2, 4 and 7, above, as additional income.

	9.	 	Retirement Benefits:

	 	 	This section applies only to Senior Managers retiring after February 1, 2010. Benefits to Senior
Managers retiring before that date will be governed by the policy in effect at retirement.

	 	 	Upon retirement, the following benefits will be available to Raven Senior Managers who retire
between the ages of 65 and 70, or who choose early retirement. Early retirement is defined as
the first day of any month after the Senior Manager’s years of service, plus attained age,
equals or exceeds the sum of 80, or any date between then and age 65.

	 	 	Those benefits are:

	 	(A)	 	Continued retiree group hospital, medical and dental coverage for the Senior
Manager, spouse and eligible dependent child(ren), as defined by the insurance
carrier’s policy, until the Senior Manager attains the eligibility age for Medicare
(presently age 65) or is eligible for Medicare due to disability. Premiums will be at
the same rate available to active Senior Managers.
	 
	 	 	 	If said Senior Manager dies prior to Medicare eligibility, coverage will continue on
the same basis for spouse and/or eligible dependent child(ren) as long as spouse does
not remarry and dependent child(ren) meets insurance carrier’s eligibility
requirements.
	 
	 	 	 	When the Senior Manager becomes eligible for Medicare, the spouse is eligible for
continued retiree group hospital, medical, or dental coverage until the spouse
becomes eligible for Medicare. Coverage for the spouse will terminate in the event
the Senior Manager and spouse divorce or the spouse remarries after the death of the
Senior Manager. Upon divorce or remarriage of spouse, the spouse would then be
offered COBRA in compliance with Federal COBRA guidelines administered on a
consecutive basis.
	 
	 	 	 	When the Senior Manager becomes eligible for Medicare, eligible dependent
child(ren) are eligible for continued

 

 

Exhibit 10(o)

	 	 	 	retiree group hospital, medical, and dental coverage until the dependent no longer
meets the definition of an eligible dependent as defined by the insurance carrier’s
policy. Upon loss of dependent eligibility, COBRA will be offered in compliance with
Federal COBRA guidelines administered on a consecutive basis.
	 
	 	(B)	 	Upon eligibility for Medicare by either the Senior Manager or spouse, the
Senior Manager and spouse will be provided supplemental hospital, medical, and
prescription drug coverage to Medicare which would result in the same coverage that is
provided to the full-time active Senior Managers of the company. This coverage, as well
as group dental coverage, will continue for the rest of the Senior Manager’s and
spouse’s life or until the spouse divorces said Senior Manager or remarries after the
death of the Senior Manager. In the event the spouse divorces or remarries after the
death of the Senior Manager, supplemental coverage will cease being paid by Raven and
will be the responsibility of the former spouse.
	 
	 	 	 	In the event that eligible dependent child(ren) are eligible for Medicare, said
dependent child(ren) will be provided supplemental hospital and medical coverage to
Medicare which would result in the same coverage that is provided to the full-time
active officers of the company. This coverage, as well as group dental coverage, will
continue for the rest of the dependent’s life as long as the dependent meets
disability requirements.
	 
	 	(C)	 	In the event that a retired Senior Manager marries/remarries, retiree benefits are
only offered to spouses enrolled in benefits at the time of the Senior Manager’s
retirement.
	 
	 	(D)	 	Upon retirement, supplemental health insurance benefits for the Senior
Manager and dependents will be provided annually for the rest of the Senior
Manager’s life at an amount of up to 3.5% of the highest total annual
compensation (salary and bonus) during the last five years of employment with
the company.Exhibit 10.89

EXHIBIT 10.89

REVOLVING SECURED LINE OF CREDIT AGREEMENT

THIS REVOLVING SECURED LINE OF CREDIT AGREEMENT (this “Agreement”), made as of March 31, 2011,
by and among MiMedx Group, Inc., a Florida Corporation (the “Borrower”) and Parker H. “Pete” Petit,
a resident of Florida (“Lender”).

BACKGROUND:

The Borrower desires to establish with the Lender a line of credit providing for a revolving
loan of up to $3,600,000 in the aggregate maximum principal amount at any time outstanding, and the
Lender is willing to establish such line of credit on the terms and conditions hereinafter set
forth.

NOW, THEREFORE, in consideration of the premises and the promises herein contained, and each
intending to be legally bound hereby, the parties agree as follows:

SECTION 1. DEFINITIONS. For all purposes of this Agreement and any amendment hereto
(except as herein otherwise expressly provided or unless the context otherwise requires), the
following terms shall have the following meanings:

“Advance” means any loan made by the Lender to the Borrower under the terms of this Agreement.

“Borrowing” means a borrowing of a loan consisting of an Advance by the Lender.

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

“Business Day” means any day except a Saturday, Sunday or other day on which commercial banks
in the State of Georgia are authorized by law to close.

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

“Collateral” means all of the intellectual property of the Borrower, excluding only (i) the
patents and other intellectual property owned by Surgical Biologics, LLC, and (ii) all accessions
to, substitutions for and replacements, products and proceeds thereof, as more particularly set
forth in the Security and Intercreditor Agreement.

“Commitment” means, collectively, the binding obligation to lend to the Borrower the amount of
Three Million Six Hundred Thousand and No/100 Dollars ($3,600,000), reduced by the amount of cash
reflected on the Borrower’s Financial Statement as of March 31, 2011, excluding any Advances made
by Lender, and further reduced by the amount of the net proceeds of any financing obtained or debt
securities sold by the Borrower or any equity investment into the Borrower, on or after the date
hereof and prior to the Termination Date.

 

 

 

“Default” means any condition or event which constitutes an Event of Default or which with the
giving of notice or lapse of time or both would, unless cured or waived, become an Event of
Default.

“Default Rate” shall have the meaning ascribed to such term in Section 2(d).

“Dollars” or “$” means dollars in lawful currency of the United States of America.

“Event of Default” shall have the meaning assigned to such term in Section 6(a).

“GAAP” means generally accepted accounting principles in effect from time to time.

“Governmental Authority” means any federal, state or municipal court or other governmental
department, commission, board, bureau, agency or instrumentality, governmental or
quasi-governmental, domestic or foreign.

“Indebtedness” means, for any Person at the time of any determination, without duplication,
all obligations, contingent or otherwise, of such Person that, in accordance with GAAP, should be
classified upon the balance sheet of such Person as indebtedness.

“Loan Documents” means this Agreement, the Note, all First Contingent Warrants issued by
Borrower to Lender, all Second Contingent Warrants issued by Borrower to Lender, the Security
Documents, the Registration Rights Agreement and any other document evidencing or securing the
Obligations under the Note.

“Material Adverse Effect” means a material adverse effect on the business, properties, assets,
liabilities or condition (financial or otherwise) of the Borrower.

“Note” means the promissory note of the Borrower payable to the order of Lender, substantially
in the form of Exhibit B hereto, evidencing the maximum principal indebtedness of the
Borrower to Lender under the Commitment, either as originally executed or as it may be from time to
time reduced, extended or otherwise modified as provided herein.

“Obligations” means all indebtedness, obligations and liabilities to the Lender existing on
the date of this Agreement or arising thereafter, direct or indirect, joint or several, absolute or
contingent, matured or unmatured, liquidated or unliquidated, secured or unsecured, arising by
contract, operation of law or otherwise, of the Borrower under this Agreement or any other Loan
Document.

“Person” means any individual, joint venture, corporation, company, limited liability company,
voluntary association, partnership, trust, joint stock company, unincorporated organization,
association, government, or any agency, instrumentality, or political subdivision thereof, or any
other form of entity or organization.

“Security and Intercreditor Agreement” means the Security and Intercreditor Agreement dated of
even date herewith by the Borrower in favor of the Lender substantially in the form attached hereto
as Exhibit C and incorporated herein by this reference.

 

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“Security Documents” means (i) the Security and Intercreditor Agreement and (ii) all Uniform
Commercial Code financing statements filed to perfect any security interests granted under the
Security and Intercreditor Agreement.

“Subscription Agreement” means the Subscription Agreement for the 5% Convertible Secured
Promissory Note executed and delivered by the Lender, substantially in the form attached hereto as
Exhibit A and incorporated by reference herein.

“Subsidiaries” of any Person means a corporation, partnership or other entity of which shares
of stock or other ownership interests having ordinary voting power (other than stock or such other
ownership interest having such power only by reason of the happening of a contingency) to elect a
majority of the board of directors or other managers of such corporation, partnership or other
entity are at the time owned, or the management of which is otherwise controlled, directly or
indirectly through one or more intermediaries, or both, by such Person. Unless otherwise
qualified, all references to a “Subsidiary” or to “Subsidiaries” in this Agreement shall refer to a
Subsidiary or Subsidiaries of the Borrower.

“Termination Date” means December 31, 2012, unless the Borrower elects to extend the
termination date until December 31, 2013 upon payment of an extension fee as in an amount equal to
5% of the outstanding principal balance due under the Note.

SECTION 2. THE ADVANCES.

(a) Commitment to Lend. The Lender hereby agrees on the terms and conditions set
forth herein to make Advances to the Borrower upon request of the Borrower (an “Advance Request”),
from time to time before the Termination Date; provided that, immediately after each such Advance
is made, (i) the aggregate principal amount of outstanding Advances from Lender shall not exceed
the Commitment. Within the foregoing limits, the Borrower may borrow under this Section 2, repay
and reborrow under this Section 2 at any time before the Termination Date. The aggregate principal
amount of the Lender’s Advances outstanding at any time shall never exceed the Commitment.

(b) Method of Borrowing. The Borrower shall give notice to the Lender (an “Advance
Request”) at least three (3) Business Days prior to the proposed funding date of such Advance
specifying (i) the date of such Advance (which shall be the 15th or the 30th
day of the same calendar month, or the next succeeding Business Day if the 15th or the
30th, as applicable, is not a Business Day) and (ii) the aggregate amount of such
Advance. The Lender shall be entitled to rely on any telephonic Advance Request which the Lender
believes in good faith to have been given by a duly authorized officer or employee of the Borrower
and any Advances made by the Lender based on such telephonic notice shall be an Advance for all
purposes hereunder. Not later than 5:00 p.m., Atlanta, Georgia time, on the date specified for the
Advance in the Advance Request, the Lender shall deliver to the Borrower, in immediately available
funds, its portion of the aggregate amount of such Advance specified in the Advance Request.
Notwithstanding anything to the contrary contained in this Agreement, no Advance is required to be
made if the Advance Request is not in compliance with this Agreement, or there shall have occurred
a Default, which Default shall not have been cured or waived by the Lender.

 

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(c) Note. The Advances shall be evidenced by a single Note made by the Borrower
payable to the order of the Lender substantially in the form attached hereto as Exhibit B,
and shall be payable with respect to the amount of unpaid Advances plus accrued and unpaid interest
at the time of repayment. All unpaid principal and interest of the Note shall be convertible into
common stock of the Borrower at any time upon the election of the Lender, at the conversion rate of
$1.00 per share of common stock as provided in the Note. The Note may be prepaid in whole or part
without premium or penalty upon thirty (30) days’ notice to the Lender.

(d) Interest Rate. Each Advance shall bear interest on the outstanding principal
amount thereof, for each day from the date such Advance is made until it becomes due, at a rate per
annum equal to five percent (5%). Interest shall be due and payable quarterly in arrears on the
fifteenth day of each April, July, September, and January hereafter until the Note is paid in full.
Any payment of principal or interest that is not paid by the due date shall bear interest at the
annual rate of twelve percent (12%) (the “Default Rate”) until paid in full.

(e) Termination of Commitment; Payment of Advances. The Advances shall mature, the
Commitment shall terminate, and the principal amount of the Note, accrued and unpaid interest and
all other Obligations represented by the Note, shall be due and payable in full on the Termination
Date. From and after the Termination Date, no Advances shall be made. Upon notice by the Borrower
to the Lender, the Borrower shall have the right to extend the Termination Date to December 31,
2013, (and all rights and Obligations hereunder and under the Loan Documents) upon such notice
accompanied by an extension payment to Borrower in the amount of five percent (5%) of the greater
of (i) outstanding principal amount of the unpaid Advances evidenced by the Note and (ii) the
amount of the Commitment as of the date of the notice.

(f) General Provisions Concerning Payments. All payments of principal of, or interest
on, the Note shall be made in Federal or other funds immediately available to the Lender at the
addresses set forth below not later than 5:00 p.m., Atlanta, Georgia time. Funds received after
5:00 p.m. shall be deemed to have been paid on the next following Business Day. Whenever any
payment of principal of, or interest on, the Advances shall be due on a day which is not a Business
Day, the date for payment thereof shall be extended to the next succeeding Business Day. If the
date for any payment of principal is extended by operation of law or otherwise, interest thereon
shall be payable for such extended time.

(g) Computation of Interest. Interest and fees on Advances shall be computed on the
basis of a year of 365 days and paid for the actual number of days elapsed, calculated from and
including the first day thereof to but excluding the last day thereof.

(h) Security Interest. The obligations under the Note shall be secured by a first
priority security interest in the Collateral pursuant to a Security and Intercreditor Agreement
substantially in the form attached hereto as Exhibit C, which is incorporated herein by
this reference.

 

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(i) Warrants. A.(i) First Contingent Warrant. Upon making an Advance, the
Company shall issue to the Lender a warrant substantially in the form attached hereto as
Exhibit D, which is incorporated herein by this reference (each, a “First Contingent
Warrant”), to
purchase that number of shares of Common Stock equal to (i) 25% of the shares of Common Stock
that would be issuable upon conversion of the outstanding principal balance of the Note immediately
after an Advance, less (ii) the aggregate number of shares of Common Stock subject to all
First Contingent Warrants previously issued to Lender, at an exercise price of .01 per share,
subject to the terms of such Exhibit D and exercisable as provided therein.

(ii) Second Contingent Warrant. The Company shall issue to the Lender an additional
warrant substantially in the form attached hereto as Exhibit E, which is incorporated
herein by this reference (each, a “Second Contingent Warrant”), to purchase that number of shares
of Common Stock equal to (i) 25% of the shares of Common Stock that would be issuable upon
conversion of the outstanding principal balance of the Note immediately after an Advance,
less (ii) the aggregate number of shares of Common Stock subject to all Second Contingent
Warrants previously issued to Lender, at an exercise price of .01 per share, subject to the terms
of such Exhibit E and exercisable as provided therein. 

(j) Registration Rights Agreement. The Lender shall be given piggy-back registration
rights for any shares of common stock of the Borrower into which the Note is converted, such
registration rights to be on the terms and conditions as provided in the form of Registration
Rights Agreement substantially in the form attached hereto as Exhibit F.

SECTION 3. CONDITIONS TO BORROWINGS.

(a) Conditions to First Borrowing. The obligation of the Lender to make an Advance on
the occasion of the first Borrowing is subject to the satisfaction of the conditions set forth in
Section 3(b) below and receipt by the Lender from the Borrower of (i) a duly executed counterpart
of this Agreement, a duly executed Note payable to the order of the Lender complying with the
provisions of Section 2(c) substantially in the form attached hereto as Exhibit B, duly
executed counterpart of the Security and Intercreditor Agreement, a duly executed First Contingent
Warrant substantially in the form attached hereto as Exhibits D and a duly executed Second
Contingent Warrant substantially in the form attached hereto as Exhibit E, each complying
with the provisions of Section 2(i) hereof, and a duly executed Registration Rights Agreement
substantially in the form attached hereto as Exhibit F, and duly executed counterparts of
each other Loan Document to which the Borrower is a party, each signed by the Borrower and Lender,
where applicable; (ii) a certificate, dated the date of the first Borrowing, signed by the
Borrower’s Chief Financial Officer, to the effect that no Default hereunder has occurred and is
continuing on the date of the Advance representations and warranties of the Borrower contained in
Section 4 are true on and as of the date of the first Borrowing hereunder.

(b) Conditions to All Borrowings. The obligation of the Lender to make an Advance on
the occasion of each Borrowing is subject to the satisfaction of the following conditions: (i) the
fact that, immediately after such Borrowing, no Default shall have occurred and be continuing; (ii)
the fact that the representations and warranties of the Borrower contained in Section 4 shall be
true in all material respects on and as of the date of such Borrowing; (iii) the fact that,
immediately after such Borrowing, the aggregate principal amount of outstanding Advances from the
Lender shall not exceed the Commitment, and (iv) receipt by the Lender from the Borrower of a duly
executed First Contingent Warrant substantially in the form attached
hereto as Exhibits D and a duly executed Second Contingent Warrant substantially in
the form attached hereto as Exhibit E, each complying with the provisions of Section 2(i)
hereof. Each Borrowing hereunder shall be deemed to be a representation and warranty by the
Borrower on the date of such Borrowing as to the facts specified in this Section 3(b).

 

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SECTION 4. REPRESENTATIONS AND WARRANTIES. The Borrower represents and warrants that:

(a) Organization and Power. The Borrower is a corporation duly organized, validly
existing and in good standing under the laws of the State of Florida. The Borrower has all
requisite company or other organizational power and authority and all material licenses, permits,
approvals and authorizations necessary to own and operate its properties, to carry on its
businesses as now conducted and presently proposed to be conducted and to carry out the
transactions contemplated hereby, and is qualified to do business in every jurisdiction where the
failure to so qualify might reasonably be expected to have a Material Adverse Effect.

(b) Principal Business. The Borrower is primarily engaged in the business of the
development and sale of orthopedic devices and amniotic tissue products (the “Business”).

(c) Enforceability. This Agreement constitutes, and each of the other Loan Documents
when duly executed and delivered by each of the Borrower and Lender that are parties thereto will
constitute, legal, valid and binding obligations of the Borrower enforceable in accordance with
their respective terms, except as enforceability may be limited by bankruptcy, insolvency,
reorganization, moratorium and other similar laws from time to time in effect affecting the
enforcement of creditors’ rights generally, and except as enforcement of remedies may be limited by
general equitable principles.

SECTION 5. COVENANTS. The Borrower agrees that so long as any portion of the
Commitment is in effect hereunder or any amount payable under this Agreement remains unpaid:

(a) Existence. The Borrower shall do or cause to be done all things necessary to
preserve, renew and keep in full force and effect its legal existence.

(b) Businesses and Properties; Compliance with Laws. The Borrower shall at all times
(i) do or cause to be done all things necessary to preserve, renew and keep in full force and
effect the rights, licenses, registrations, permits, certifications, approvals, consents,
franchises, patents, copyrights, trademarks and trade names, and any other trade names which may be
material to the conduct of its business; (ii) comply in all material respects with all laws and
regulations applicable to the operation of such business, whether now in effect or hereafter
enacted and with all other applicable laws and regulations; (iii) take all actions which may be
required to obtain, preserve, renew and extend all rights, patents, copyrights, trademarks,
tradenames, franchises, registrations, certifications, approvals, consents, licenses, permits and
any other authorizations which may be material to the operation of such business; (iv) maintain,
preserve and protect all property material to the conduct of such business; and (v) except for
obsolete or worn out equipment, keep its material property in good repair, working order and
condition and from time to time make, or cause to be made, all needful and proper repairs,
renewals, additions, improvements and replacements thereto necessary in order that the
business carried on in connection therewith may be properly conducted at all times.

 

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(b) Reports and Information. The Borrower shall furnish to the Lender promptly, from
time to time, as the Lender may reasonably request, such information regarding the compliance by
the Borrower with the terms of this Agreement and the other Loan Documents or the affairs,
operations or condition (financial or otherwise) of the Borrower as the Lender may reasonably
request and that is capable of being obtained, produced or generated by the Borrower or of which
the Borrower has knowledge.

SECTION 6. DEFAULTS; REMEDIES.

(a) Events of Default. The occurrence of any one or more of the following events
shall constitute an “Event of Default” by the Borrower under this Agreement: (i) the Borrower
shall fail to pay when due any principal of any Advance or shall fail to pay any interest on any
Advance, any fee or other amount payable hereunder within 10 days after such interest or other
amount shall become due; (ii) the Borrower shall fail to observe or perform any covenant or
agreement contained in this Agreement (other than those covered by clause (i) above) for 30 days
after the earlier of the first day on which a responsible officer of the Borrower has knowledge of
such failure or written notice thereof has been given to the Borrower by the Lender; (iii) any
representation, warranty, certification or statement made by the Borrower in any certificate,
financial statement or other document delivered pursuant to this Agreement shall prove to have been
incorrect in any material respect when made (or deemed made); (v) the Borrower shall (A) be
adjudicated as bankrupt, or an order for relief shall be entered against it under the federal
bankruptcy law which remains unstayed or is not dismissed within 60 days after the entry of such
adjudication or order; (B) not pay, or admit in writing its inability to pay, any material
Indebtedness generally as they become due; (C) make an assignment for the benefit of creditors; (D)
apply for, seek, consent to, or acquiesce in, the appointment of a receiver, custodian, trustee,
examiner, liquidator or similar official for it or any substantial part of its property; (E)
institute any proceeding seeking an order for relief under the federal bankruptcy law or seeking to
adjudicate it as bankrupt or insolvent, or seeking dissolution, winding up, liquidation,
reorganization, arrangement, adjustment or composition of it or its Indebtedness under any federal
or state law relating to bankruptcy, insolvency or reorganization or relief of debtors or fail to
file an answer or other pleading denying the material allegations of any such proceeding filed
against, it; (F) take any action to authorize or effect any of the foregoing actions set forth in
this clause (v); or (G) fail to contest in good faith any appointment or proceeding described in
clause (vi) of this Section 6(a); (vi) without the application, approval or consent of the
Borrower, a receiver, custodian, trustee, examiner, liquidator or similar official shall be
appointed for the Borrower or any Subsidiary or any substantial part of its property, or a
proceeding described in clause (v) of this Section 6(a) shall be instituted against the Borrower,
and such appointment continues undischarged or such proceeding continues undismissed or unstayed
for a period of 60 consecutive days; (vii) the Borrower or any Subsidiary shall fail within 60 days
to pay, bond or otherwise discharge any judgment or order for the payment of money in excess of
$100,000 in the aggregate; (viii) the occurrence of any event, act or condition of whatever nature,
whether singly or in conjunction with any other event or events, act or acts, condition or
conditions, whether or not related, which the Lender determines either does or has a reasonable
probability of causing a Material Adverse Effect on the Borrower, the rights and
remedies of the Lender under the Loan Documents or the ability of the Borrower to perform its
obligations under the Loan Documents, or the legality, validity or enforceability of any Loan
Document; (ix) unless otherwise agreed to by the parties hereto, if any Security Document shall
fail to create a valid and perfected security interest in favor of the Lender in the Collateral
purported to be encumbered thereby; and (x) an “Event of Default” shall have occurred under the
Security and Intercreditor Agreement or any other Loan Document.

 

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(b) Remedies on Default. Subject to the terms and conditions of the Security and
Intercreditor Agreement (which requires approval of certain actions by the holders of a majority of
certain indebtedness of the Borrower), upon the occurrence of an Event of Default, the Lender may,
by notice to the Borrower, terminate the Commitment which shall thereupon terminate, and by notice
to the Borrower declare the Note (together with accrued interest thereon) to be, and the Note,
including all outstanding Advances, shall thereupon become, immediately due and payable without
presentment, demand, protest or other notice of any kind, all of which are hereby waived by the
Borrower; provided that if any Event of Default specified in clause (v) or (vi) of Section 6(a)
occurs with respect to the Borrower, without any notice to the Borrower or any other act by the
Lender, the Commitment shall thereupon terminate and the Note, including all outstanding Advances
(together with accrued interest thereon), shall become immediately due and payable without
presentment, demand, protest or other notice of any kind, all of which are hereby waived by the
Borrower.

If any suit or action is instituted or attorneys are employed to collect the amounts due under the
Note or any of them or any part thereof, Borrower shall pay on demand all costs of collection,
including, without limitation, all court costs and reasonable professionals’ fees and charges.

SECTION 7. MISCELLANEOUS.

(a) Notices. All notices, requests and other communications to any party hereunder
shall be in writing and shall be given to such party at its address set forth below or such other
address as such party may hereafter specify for the purpose by notice to the other party: (i) if
to the Borrower, at 811 Livingston Court, SE., Suite B, Marietta, GA. 30067; Attn: General Counsel,
and to the Lender as shown on the Signature Page hereto. Each such notice, request or other
communication shall be effective upon delivery (A) if given by personal delivery, (B) by certified
mail, return receipt requested, (C) by overnight national courier to the address specified herein,
provided that notices of Advance Requests to the Lender under Section 2 shall not be effective
until actually received by the Lender.

(b) No Waivers. No failure or delay by the Lender in exercising any right, power or
privilege hereunder or under the Loan Documents 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) Amendments and Waivers. Subject to the terms of the Security and Intercreditor
Agreement, any provision of this Agreement, the Note or any other Loan Documents may be amended or
waived if, but only if, such amendment or waiver is in writing and is signed by the Borrower and
the Lender.

 

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(d) Successors and Assigns. The provisions of this Agreement shall be binding upon
and inure to the benefit of the parties hereto and their respective successors and assigns;
provided that the Borrower may not assign or otherwise transfer any of its rights under this
Agreement.

(e) Governing Law. This Agreement and the Note shall be construed in accordance with
and governed by the law of the State of Georgia, without regard to that state’s conflict of laws
principles. This Agreement and the Note are intended to be effective as instruments executed under
seal.

(f) Counterparts. This Agreement may be signed in any number of counterparts, each of
which shall be an original, with the same effect as if the signatures thereto and hereto were upon
the same instrument.

(g) Consent to Jurisdiction. The Borrower and the Lender hereby submit to the
jurisdiction of any Georgia State or Superior Court sitting in Cobb County, Georgia or the United
States District Court for the Northern District of Georgia, over any action or proceeding arising
out of or relating to this Agreement, the Note, the Security Documents, or any of the other Loan
Documents, and hereby irrevocably agrees that all claims in respect of such action or proceeding
shall be heard and determined exclusively in such Georgia State or Federal Court. Each of the
Borrower and the Lender further waives any objection to venue in such court and any objection to an
action or proceeding in such court on the basis of a non-convenient forum, and further agrees that
any action or proceeding brought against the other party hereto shall be brought exclusively in
such courts. Each of the Borrower and the Lender hereby further agrees to waive the right to a
jury trial of any claim or cause of action based upon or arising out of this Agreement, the Note,
the Security Documents, or any of the other Loan Documents.

(h) Severability. If any provisions of this Agreement shall be held invalid under any
applicable laws, such invalidity shall not affect any other provision of this Agreement that can be
given effect without the invalid provision, and, to this end, the provisions hereof are severable.

(i) Captions. Captions in this Agreement are for the convenience of reference only
and shall not affect the meaning or interpretation of the provisions hereof.

[Signature Page Follows]

 

- 9 -

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and delivered
under seal as of the year and day first above written.

	 	 	 	 	 	 	 
	 	 	BORROWER:
	 
	 	 	 	 	 	 
	 	 	MiMedx Group, Inc.
	 
	 	 	 	 	 	 
	 

	 	By:
	/s/ Michael J. Senken	 	 
	 

	 	 	 	 	 
	 

	 	 	 	Michael J. Senken, CFO	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	[COMPANY SEAL]	 	 
	 
	 	 	 	 	 	 
	 	 	LENDER:
	 
	 	 	 	 	 	 
	 	 	/s/ Parker H. Petit	 	(SEAL)
	 	 	 	 	 
	 	 	Parker H. Petit	 	 
	 
	 	 	 	 	 	 
	 

	 	Address:	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 

[Signature Page to Revolving Secured Line of Credit Agreement]

 

 

 

Exhibit A

Form of Subscription Agreement

Name of Subscriber: Parker H. Petit

(Please Print Your Name Here)

SUBSCRIPTION AGREEMENT

5% CONVERTIBLE SENIOR SECURED PROMISSORY NOTE

MiMedx Group, Inc.

811 Livingston Court. SE, Suite B

Marietta, Georgia 30067

	 	 	 	 	 
	 

	 	Re:
	 	5% Convertible Senior Secured Promissory Note of MiMedX Group, Inc.

SECTION 8.

Subscription

(a) Subscription. The undersigned subscriber (“Subscriber”) hereby irrevocably
subscribes for and agrees to purchase a 5% Convertible Senior Secured Promissory Note (the “Note”)
from MiMedx Group, Inc., a Florida corporation (the “Company”), in the principal amount set forth
below, a contingent warrant (the “First Contingent Warrant”) and a second contingent warrant (the
“Second Contingent Warrant,” and together with the First Contingent Warrant, collectively the
“Warrants”), on the terms and conditions described in this subscription agreement (this
“Subscription Agreement”), that certain Revolving Secured Line of Credit Agreement attached hereto
as Exhibit A (the “Credit Agreement”), the Note, and a Security and Intercreditor Agreement
substantially in the form attached to the Credit Agreement as Exhibit C (the “Security
Agreement”).

Amount And Dollar Value Of Note Subscribed For 

$                                        , this
amount is also the amount of the “Commitment” as defined under the Credit Agreement.

THE UNDERSIGNED SUBSCRIBER IS REQUIRED TO CHECK THE APPROPRIATE BOX ON THE ACCREDITED INVESTOR
CERTIFICATION FOUND ON PAGE 7 HEREOF TO CERTIFY HIS, HER OR ITS STATUS AS AN ACCREDITED INVESTOR.

Section 1.2 Collateral. The Note is secured by a first priority security interest in all
patents and other intellectual property owned by the Company, excluding only (i) the intellectual
property owned by, or exclusively licensed to, Surgical Biologics, LLC, and (ii) all accessions to,
substitutions for and replacements, products and proceeds of any of the foregoing, pursuant to a
security interest in favor of a Collateral Agent for the benefit of Subscriber and certain other
lenders to the Company. The Collateral Agent appointed under the Security Agreement will be
authorized to take action on behalf of the holders of the Notes, upon the decision of the Majority
in Interest.

Section 1.3 Conversion. The Notes are convertible into common stock of the Company at
$1.00 per share at any time at the election of the Subscriber, as more particularly described in
the Note.

Section 1.4 Acceptance or Rejection. The undersigned understands that the Company
will accept this subscription (and only with respect to it) only after the undersigned has executed
and delivered this Subscription Agreement and the Counterpart Signature Pages to the Credit
Agreement, the Note, the Warrants, the Security
Agreement, and a Registration Rights Agreement substantially in the form attached to the Credit
Agreement as Exhibit F (the “Registration Rights Agreement”). The undersigned acknowledges
that the undersigned may not withdraw this subscription, but that the Company reserves the right,
in its sole discretion, to accept or reject this subscription, in whole or in part.

 

 

 

In the event this subscription is rejected in part by the Company, there shall be returned to the
undersigned the difference between the subscription amount paid to it and the subscription price
allocable to the Note accepted. In the event this subscription is rejected in its entirety, the
subscription amount paid will be promptly returned to the undersigned without deduction and without
interest, and this Subscription Agreement shall have no force or effect.

SECTION 9.

Investor Representations, Warranties AND COVENANTS

The undersigned makes the following representations, warranties and covenants with the intent that
the same will be relied upon by the Company:

(a) Information. The undersigned acknowledges that the undersigned has been offered
the opportunity to obtain information, to verify the accuracy of the information received by him,
her or it and to evaluate the merits and risks of this investment and to ask questions of and
receive satisfactory answers concerning the terms and conditions of this investment. The
undersigned understands that information regarding the Company is on file with the Securities and
Exchange Commission (“SEC”), and the undersigned has reviewed such documents and information as he,
she or it has deemed necessary in order to make an informed investment decision with respect to the
investment being made hereby. The Company has made its officers available to the undersigned to
answer questions concerning the Company and the investment being made hereby. In making the
decision to purchase the Note, the undersigned has relied and will rely solely upon independent
investigations made by him, her or it. The undersigned is not relying on the Company with respect
to any tax or other economic considerations involved in this investment. Other than as set forth
in Article 3 hereof, no representations or warranties have been made to the undersigned by the
Company. To the extent the undersigned has deemed it appropriate, the undersigned has consulted
with his, her or its own attorneys and other advisors with respect to all matters concerning this
investment.

(b) Not a Registered Offering. The undersigned understands that the Note (including
any securities issuable upon conversion thereof) and the Warrants (and any securities issuable upon
conversion thereof) have not been and will not being registered with the SEC nor with the
governmental entity charged with regulating the offer and sale of securities under the securities
laws and regulations of the state of residence of the undersigned and are being offered and sold
pursuant to the exemption from registration provided in Section 4(2) of the Securities Act of 1933,
as amended (the “1933 Act”), and Rule 506 of Regulation D (“Regulation D”) promulgated under the
1933 Act by the SEC and limited exemptions provided in the “Blue Sky” laws of the state of
residence of the undersigned, and that no governmental agency has recommended or endorsed the Note
or the Warrants nor made any finding or determination relating to the fairness for investment of
the Note (including any securities issuable upon conversion thereof) or the Warrants (including any
securities issuable upon conversion thereof) or of the adequacy of the information on file with the
SEC or this Subscription Agreement. The undersigned is unaware of, and is in no way relying on,
any form of general solicitation or general advertising in connection with the offer and sale of
the Note (including any securities issuable upon conversion thereof) or the Warrants (including any
securities issuable upon conversion thereof). The undersigned is purchasing the Note and Warrants
without being furnished any offering or sales literature or prospectus.

(c) Purchase for Investment. The undersigned is subscribing for the Note and the
Warrants solely for his, her or its own account for investment purposes and not with a view to, or
with any intention of, a distribution, sale or subdivision for the account of any other individual,
corporation, firm, partnership, limited liability company, joint venture, association or person.
The undersigned represents that he, she or it understands that there is no public market for the
Note or the Warrants and that no such market will ever exist. The undersigned represents that if
he, she, or it has received certain confidential information concerning a transaction by which it
is contemplated that the Company may acquire another company, he, she, or it understands that such
information is speculative in nature and that there is no guarantee that such possible acquisition
transaction will be consummated, or, if consummated, will be successful or result in an
increase in shareholder value.

 

- 3 -

 

(d) Accredited Investor and other Investment Representations. The undersigned
represents and warrants that the undersigned is an “accredited investor” as defined in Rule 501(a)
of Regulation D under the 1933 Act and that the undersigned has accurately completed the Accredited
Investor Certification, which precedes the signature page to this Subscription Agreement.

(e) Restrictions on Transfer.

(i) The undersigned understands and agrees that because the offer and sale of the Note
and the Warrants subscribed for herein have not been registered under federal or state
securities laws, the Note (including any securities issuable upon conversion thereof) and
the Warrants (and any securities issuable upon conversion thereof) acquired may not at any
time be sold or otherwise disposed of by the undersigned unless it is registered under the
1933 Act or there is applicable to such sale or other disposition one of the exemptions from
registration set forth in the 1933 Act, the rules and regulations of the SEC thereunder and
applicable state law. The undersigned further understands that the Company has no
obligation or present intention to register the Note (including any securities issuable upon
conversion thereof) or the Warrants (and any securities issuable upon conversion thereof),
or to permit its sale other than in strict compliance with the 1933 Act, SEC rules and
regulations thereunder, and applicable state law. The undersigned recognizes that, as a
result of the aforementioned restrictions, there is no and will be no public market for the
Note or the Warrants subscribed for hereunder. The undersigned expects to hold the Note
(and any securities issuable upon conversion thereof) and the Warrants (and any securities
issuable upon conversion thereof) for an indefinite period and understands that the
undersigned will not readily be able to liquidate this investment even in case of an
emergency.

(ii) The Note (and the securities to be issued to the undersigned upon conversion
thereof) and the Warrants (and any securities issuable upon conversion thereof) shall have
endorsed thereon legends substantially as follows:

“THE SECURITIES REPRESENTED BY THIS INSTRUMENT (AND THE SECURITIES INTO
WHICH IT IS CONVERTIBLE) HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “ACT”), OR ANY STATE SECURITIES LAW AND MAY NOT BE
SOLD, PLEDGED, HYPOTHECATED OR TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION STATEMENT COVERING THESE SECURITIES UNDER THE ACT AND ANY
APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL IN FORM AND
SUBSTANCE SATISFACTORY TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED
UNDER THE ACT OR UNDER APPLICABLE STATE SECURITIES LAWS.”

(f) Investment Risks. The undersigned represents that he, she or it has read and
understands all of the “Risk Factors” set forth in the Company’s most recent Form 10-K and Form
10-Q on file with the SEC. Without limiting the foregoing, the undersigned has such knowledge and
experience in financial and business matters that he, she or it is capable of evaluating the merits
and risks of an investment in the Note. The undersigned recognizes that the Company is a
development stage company with an extremely limited financial and operating history, that the
development of medical devices is difficult, time consuming, and expensive, and that an investment
in the Company involves very significant risks. The undersigned further recognizes that (A) an
investment in the Company is highly speculative, (B) an investor may not be able to liquidate his,
her or its investment, (C) transferability of the Note is extremely limited, (D) in the event of a
disposition, the investor could sustain a loss of his, her or its entire investment, and (E) the
Company intends to continue to raise additional funds in the near future through the sale of
equity, and that any such sale below the conversion events set forth in the Note may be on terms to
investors that are more favorable than the terms to the undersigned. The undersigned is capable of
bearing the economic risks of an investment in the Note and the Warrants, including, but not
limited to, the possibility of a complete loss of the undersigned’s investment, as well as
limitations on the transferability of the Note and the Warrants, which may
make the liquidation of an investment in the Note and the Warrants difficult or impossible for
the indefinite future. The undersigned acknowledges that legal advice has been provided to the
Company by Womble Carlyle Sandridge & Rice, PLLC, and that such law firm has neither provided
advice to the Subscriber nor performed any due diligence on the Subscriber’s behalf. The
undersigned acknowledges that he, she or it has been advised to seek his, her or its own
independent counsel from attorneys, accountants and other advisors with respect to an investment in
this offering.

 

- 4 -

 

(g) Residence. The undersigned, if a natural person, is a bona fide resident of the
state set forth in his or her address on the signature page to this Subscription Agreement. The
undersigned, if an entity, has its principal place of business at the mailing address set forth on
the signature page of this Subscription Agreement.

(h) Investor Information; Survival of Representations and Warranties and Covenants.
The representations, warranties, covenants and agreements contained in this Article 2 shall survive
the date hereof. Any information that the undersigned is furnishing to the Company in this
Subscription Agreement is correct and complete as of the date of this Subscription Agreement and if
there should be any material change in such information prior to his, her or its admission as a
shareholder of the Company, the undersigned will immediately furnish such revised or corrected
information to the Company.

(i) Due Organization. If the undersigned is a corporation, partnership or limited
liability company, the undersigned is duly organized, validly existing and in good standing under
the jurisdiction of its organization, has all requisite power and authority to own, lease and
operate its properties, to carry on its business as currently being conducted, to enter into this
Subscription Agreement and to perform its obligations hereunder and thereunder.

(j) Due Authorization. If the undersigned is a corporation, partnership or limited
liability company, the execution, delivery and performance by the undersigned of this Subscription
Agreement and the consummation of the transactions contemplated hereby and thereby have been duly
authorized by all necessary action on the part of the undersigned.

(k) Capacity. If the undersigned is an individual, the undersigned has the capacity
to execute, deliver and perform this Subscription Agreement.

(l) Enforceability. This Subscription Agreement will be, upon its execution and
delivery, a valid and binding obligation of the undersigned, enforceable against the undersigned in
accordance with its terms.

(m) No Conflicts. Neither the execution, delivery or performance by the undersigned
of this Subscription Agreement, nor the consummation by the undersigned of the transactions
contemplated hereby will (A) conflict with or result in a breach of any provision of the
undersigned’s certificate of incorporation, bylaws or other organizational documents, (B) cause a
default (or give rise to any right of termination, cancellation or acceleration) under any of the
terms, conditions or provisions of any agreement, instrument or obligation to which the undersigned
is a party or (C) violate any law, statute, rule, regulation, judgment, order, writ, injunction or
decree of any court, administrative agency or governmental body, in each case applicable to the
undersigned or its properties or assets.

(n) No Approvals. No filing with, and no permit, authorization, consent or approval
of, any person (governmental or private) is necessary for the consummation by the undersigned of
the transactions contemplated by this Subscription Agreement.

(o) Brokerage Commissions and Finders’ Fees. Neither the undersigned nor anyone
acting on the undersigned’s behalf has taken any action which has resulted, or will result, in any
claims for brokerage commissions or finders’ fees by any person in connection with the transactions
contemplated by this Subscription Agreement.

 

- 5 -

 

SECTION 10.

Company Representations and Warranties

The Company makes the following representations and warranties with the intent that the same may be
relied upon by the undersigned:

(a) Due Organization. The Company is a corporation duly organized, validly existing
and in good standing under the jurisdiction of its organization, has all requisite power and
authority to own, lease and operate its properties, to carry on its business as currently being
conducted, to enter into this Subscription Agreement and to perform its obligations hereunder.

(b) Due Authorization. The execution, delivery and performance by the Company of this
Subscription Agreement and the consummation of the transactions contemplated hereby have been duly
authorized by all necessary action on the part of the Company.

(c) Enforceability. This Subscription Agreement is, or upon its execution and
delivery will be, a valid and binding obligation of the Company, enforceable against the Company in
accordance with its respective terms.

(d) No Conflicts. Neither the execution, delivery or performance by the Company of
this Subscription Agreement, nor the consummation by the Company of the transactions contemplated
hereby, will (A) conflict with or result in a breach of any provision of the Company’s articles of
incorporation or bylaws, (B) cause a default (or give rise to any right of termination,
cancellation or acceleration) under any of the terms, conditions or provisions of any agreement,
instrument or obligation to which the Company is a party or (C) violate any law, statute, rule,
regulation, judgment, order, writ, injunction or decree of any court, administrative agency or
governmental body, in each case applicable to the Company or its properties or assets.

(e) No Approvals. Assuming the accuracy of the representations and warranties
contained in Article 2, no filing with, and no permit, authorization, consent or approval of, any
person (governmental or private) is necessary for the consummation by the Company of the
transactions contemplated by this Subscription Agreement, other than filings under Federal and
state securities laws.

SECTION 11.

Miscellaneous Provisions

(a) Notices and Addresses. All notices required to be given under this Subscription
Agreement shall be in writing and shall be mailed by certified or registered mail, hand delivered
or delivered by next business day courier. Any notice to be sent to the Company shall be mailed to
the principal place of business of the Company or at such other address as the Company may specify
in a notice sent to the undersigned in accordance with this Section. All notices to the
undersigned shall be mailed or delivered to the address set forth on the signature page to this
Subscription Agreement or to such other address as the undersigned may specify in a notice sent to
the Company in accordance with this Section. Notices shall be effective on the date three days
after the date of mailing or, if hand delivered or delivered by next day business courier, on the
date of delivery; provided, however, that notices to the Company shall be effective upon receipt.

(b) Governing Law; Jurisdiction. (A) THIS SUBSCRIPTION AGREEMENT SHALL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF GEORGIA WITHOUT REGARD TO ITS
CONFLICTS OF LAWS PRINCIPLES, (B) THE UNDERSIGNED HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF
ANY GEORGIA STATE COURT SITTING IN COBB COUNTY, GEORGIA OR THE UNITED STATES DISTRICT COURT FOR THE
NORTHERN DISTRICT OF GEORGIA, OVER ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
SUBSCRIPTION AGREEMENT OR ANY AGREEMENT CONTEMPLATED HEREBY, AND (C) THE UNDERSIGNED HEREBY
IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING SHALL BE HEARD AND
DETERMINED EXCLUSIVELY IN SUCH GEORGIA STATE OR FEDERAL COURT. THE UNDERSIGNED FURTHER WAIVES ANY
OBJECTION TO VENUE IN SUCH COURT AND ANY OBJECTION TO AN ACTION OR PROCEEDING IN SUCH COURT ON THE
BASIS OF A
NON-CONVENIENT FORUM. THE UNDERSIGNED FURTHER AGREES THAT ANY ACTION OR PROCEEDING BROUGHT
AGAINST THE COMPANY SHALL BE BROUGHT EXCLUSIVELY IN SUCH COURTS. THE UNDERSIGNED AGREES TO WAIVE
ITS RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS
SUBSCRIPTION AGREEMENT OR ANY DOCUMENT OR AGREEMENT CONTEMPLATED HEREBY.

 

- 6 -

 

(c) Assignability. This Subscription Agreement and the rights, interests and
obligations hereunder are not transferable or assignable by the undersigned and the undersigned
acknowledges and agrees that any transfer or assignment of the Note shall be made only in
accordance with all applicable laws.

(d) Successors and Assigns. This Subscription Agreement shall be binding upon and
inure to the benefit of the parties hereto, and each of their respective legal representatives and
permitted successors.

(e) Counterparts. This Subscription Agreement may be executed in multiple
counterparts, each of which shall be deemed an original, but all of which shall constitute one
instrument.

(f) Modifications To Be in Writing. This Subscription Agreement constitutes the
entire understanding of the parties hereto with respect to the subject matter hereof and no
amendment, restatement, modification or alteration will be binding unless the same is in writing
signed by the party against whom any such amendment, restatement, modification or alteration is
sought to be enforced. The Note(s) may be amended or any provision thereof waived with the written
consent of the Company and the Lender(s) (as defined in the Credit Agreement) of a majority of the
aggregate then outstanding principal amount of the Note(s); provided, however, that any such
amendment or waiver that disproportionately affects any Lender shall require the written consent of
such Lender.

(g) Captions. The captions are inserted for convenience of reference only and shall
not affect the construction of this Subscription Agreement.

(h) Validity and Severability. If any provision of this Subscription Agreement is
held invalid or unenforceable, such decision shall not affect the validity or enforceability of any
other provision of this Subscription Agreement, all of which other provisions shall remain in full
force and effect.

(i) Statutory References. Each reference in this Subscription Agreement to a
particular statute or regulation, or a provision thereof, shall be deemed to refer to such statute
or regulation, or provision thereof, or to any similar or superseding statute or regulation, or
provision thereof, as is from time to time in effect.

****

 

- 7 -

 

Accredited Investor Certification

YOU MUST BE ABLE TO CHECK OFF AT LEAST ONE OF THE BOXES BELOW IN ORDER TO PURCHASE THE NOTE.

	 	o	 	The undersigned is a natural person who had individual income of more than $200,000 in each of     the
most recent two years or joint income with his spouse in excess of $300,000 in each of the most
recent two years and reasonably expects to reach that same income level for this year; “income”, for
purposes hereof, should be computed as follows: individual adjusted gross income, as reported (or
to be reported) on a federal income tax return, increased by (a) any deduction of long-term capital
gains under section 1202 of the Internal Revenue Code of 1986 (the “Code”), (b) any deduction for
depletion under Section 611 et seq. of the Code, (c) any exclusion for interest under Section 103 of
the Code and (d) any losses of a partnership as reported on Schedule E of Form 1040;

	 
	 	o	 	The undersigned is a natural person whose individual net worth (i.e., total assets in excess of     total
liabilities), or joint net worth with his spouse, will at the time of purchase of the Note be
in excess of $1,000,000 (excluding the value of the undersigned’s primary residence);

	 
	 	o	 	The undersigned is a corporation, Massachusetts or similar business trust, partnership, or     limited
liability company, or any organization described in Section 501(c)(3) of the Internal
Revenue Code, not formed for the specific purpose of acquiring the Note, with total assets in excess
of $5,000,000;

	 
	 	o	 	The undersigned is a trust (other than a revocable grantor trust), which trust has total assets     in
excess of $5,000,000, which is not formed for the specific purpose of acquiring the Note offered
hereby and whose purchase is directed by a sophisticated person as described in Rule 506(b)(2)(ii)
of Regulation D and who has such knowledge and experience in financial and business matters that he
is capable of evaluating the risks and merits of an investment in the Note;

	 
	 	o	 	The undersigned is an employee benefit plan within the meaning of Title I of the Employee     Retirement
Income Security Act of 1974, and either: (a) the investment decision will be made by a
plan fiduciary, as defined in Section 3(21) of such act, which is either a bank, insurance company,
or a registered investment adviser; or (b) the employee benefit plan has total assets in excess of
$5,000,000; or (c) the employee benefit plan is a self-directed plan, including an Individual
Retirement Account, with the meaning of Title I of such act, and the person directing the purchase
is an Accredited Investor**;

	 
	 		 	**NOTE. If the undersigned is relying solely on this item for its Accredited Investor status,
please print the name of the person directing the purchase in the following space and furnish a
completed and signed Accredited Investor Certification for such person.

	 
	 	o	 	The undersigned is an investor otherwise satisfying the requirements of Section 501(a)(1), (2)     or
(3) of Regulation D promulgated under the 1933 Act, which includes, but is not limited to, a
self-directed employee benefit plan where investment decisions are made solely by persons who are
“accredited investors” as otherwise defined in Regulation D;

	 
	 	o	 	The undersigned is a member of the Board of Directors or an executive officer of the Company; or     

	 
	 	o	 	The undersigned is an entity (including an IRA or revocable grantor trust but other than a     conventional
trust) in which all of the equity owners meet the requirements of at least one of the
above subparagraphs.

 

- 8 -

 

SUBSCRIPTION AGREEMENT

COUNTERPART SIGNATURE PAGE

If the subscriber is an INDIVIDUAL, or if purchased as JOINT TENANTS, as TENANTS IN COMMON, or a
COMMUNITY PROPERTY:

	 	 	 	 	 	 	 	 	 

	 	 	 
	Print Name(s)	 	Social Security Number(s)
	 
	 	 	 	 	 	 	 	 
	 	 	 
	Signature(s) of subscriber(s)	 	Signature(s) of subscriber(s)
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Address:  	 
	 	 	 	 	 
	Date	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	If the subscriber is a PARTNERSHIP, CORPORATION, LLC or TRUST:
	 
	 	 	 	 	 	 	 	 
	 	 	 
	Name of Entity	 	Federal Taxpayer ID Number
	 
	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Name:	 	 	 	State of Organization
	 

	 	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Address:
	 	 	 	 	 
	Date	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SUBSCRIPTION ACCEPTED AND AGREED TO this _____ day of                      2011.
	 
	 	 	 	 	 	 	 	 
	MiMedx Group, Inc.
	 
	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 

 

- 9 -

 

Exhibit B

Form of 5% Convertible Senior Secured Promissory Note

THE SECURITIES REPRESENTED BY THIS PROMISSORY NOTE (AND THE SECURITIES INTO WHICH IT IS
CONVERTIBLE) HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR
ANY STATE SECURITIES LAW AND MAY NOT BE SOLD, PLEDGED, HYPOTHECATED OR TRANSFERRED IN THE ABSENCE
OF AN EFFECTIVE REGISTRATION STATEMENT COVERING THESE SECURITIES UNDER THE ACT AND ANY APPLICABLE
STATE SECURITIES LAWS OR AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE COMPANY
THAT REGISTRATION IS NOT REQUIRED UNDER THE ACT OR UNDER APPLICABLE STATE SECURITIES LAWS

5% CONVERTIBLE SENIOR SECURED PROMISSORY NOTE

For value received MiMedX Group, Inc., a Florida corporation (the “Borrower”), promises
to pay to the order of Parker H. Petit (“Lender”) the principal sum of Three Million Six Hundred
Thousand and No/100 U.S. Dollars ($3,600,000), as adjusted pursuant to that certain Revolving
Secured Line of Credit Agreement dated as of even date herewith among the Borrower and the Lender
(the “Credit Agreement”), or such lesser amount as shall equal the unpaid principal amount of each
Advance made by the Lender to the Borrower pursuant to the Credit Agreement. The Borrower promises
to pay interest on the unpaid principal amount of this Note on the dates provided for in the Credit
Agreement at the rate of five percent (5%) per annum, pursuant to and in accordance with the terms
of the Credit Agreement. Interest on any overdue principal of and, to the extent permitted by law,
overdue interest on the principal amount hereof shall bear interest at the rate of twelve percent
(12%) per annum, pursuant to and in accordance with the terms of the Credit Agreement. The
outstanding principal balance and all accrued interest shall be due and payable in full on the
Termination Date. Interest shall begin to accrue on the date hereof and shall continue to accrue
on the outstanding principal amount hereof until converted into common stock of the Borrower (the
“Common Stock ”) as provided herein, or until the payment in full of all amounts due under this
Note, whichever occurs first. All such payments of principal and interest shall be made in lawful
money of the United States in Federal or other immediately available funds at the address of Lender
specified from time to time pursuant to the Credit Agreement. Upon payment in full of the amount of
all principal and interest payable hereunder (whether in cash or Common Stock upon a Voluntary
Conversion, as defined below), this Note shall be surrendered to the Borrower for cancellation.
This Note is secured by a security interest in the Collateral, as defined in, and subject to the
terms of, that certain Security and Intercreditor Agreement of even date herewith (the “Security
Agreement”).

 

- 10 -

 

1. This Note is the Note referred to in the Credit Agreement. Terms defined in the Credit
Agreement are used herein with the same meanings. Reference is made to the Credit Agreement for
provisions for the optional and mandatory prepayment and the repayment hereof and the acceleration
of the maturity hereof, as well as the obligation of the Borrower to pay all costs of collection,
including reasonable attorneys fees, in the event this Note is collected by law or through an
attorney at law.

2. This Note is issued pursuant to that certain 5% Convertible Senior Secured Promissory Note
Subscription Agreement dated as of March 31, 2011, (the “Note Subscription Agreement ”) between
the Lender and the Borrower, and is subject to the terms and conditions of the Note
Subscription Agreement, the Credit Agreement, and the Security Agreement. However, in the event
of any conflict between the terms of this Note and the Note Subscription Agreement, the Credit
Agreement, or the Security Agreement the terms of this Note shall govern. At the request of the
Borrower, this Note shall be pari passu as to payment and lien priority rights, ratably with all
purchasers of any debt securities issued by the Borrower in the twelve (12) month period
immediately following the date of issuance of this Note, as provided in the Credit Agreement and
the Security Agreement.

3. This Note is convertible into Common Stock at any time upon the election of the Lender into
that number of shares of Common Stock equal to the quotient of (a) the outstanding principal amount
and accrued interest of this Note as of date of such election, divided by (b) $1.00 (the
“Conversion Price”). Such voluntary election to convert by Lender is herein called a “Voluntary
Conversion.”

4. Notwithstanding the other terms and conditions of this Note, in the event of a “Change in
Control Transaction” (as hereinafter defined) which occurs prior to any other Voluntary Conversion,
then, effective immediately upon the consummation of such Change in Control Transaction, the
outstanding principal balance and all accrued and unpaid interest under this Note shall be due and
payable in full. As used herein, the term “Change in Control Transaction” means any of the
following transactions: (A) a share exchange, consolidation or merger of the Borrower with or into
any other entity or any other corporate reorganization whether or not the Borrower is the surviving
entity (unless the stockholders of the Borrower immediately prior to such share exchange,
consolidation, merger or reorganization hold in excess of fifty percent (50%) of the general voting
power of the Borrower or the surviving entity, as the case may be, immediately after the closing of
such transaction); (B) a transaction or series of related transactions in which in excess of fifty
percent (50%) of the Borrower’s general voting power is transferred to a third party (or group of
affiliated third parties) that were not previously stockholders of the Borrower; or (C) a sale of
all or substantially all of the assets of the Borrower (unless the stockholders of the Borrower
immediately prior to such sale hold in excess of fifty percent (50%) of the general voting power of
the purchasing party or parties). The determination of “general voting power” shall be based on
the aggregate number of votes that are attributable to outstanding securities entitled to vote in
the election of directors, general partners, managers or persons performing analogous functions to
directors of the entity in question, without regard to contractual arrangements that establish a
management structure or that vest the right to designate directors in certain parties.

5. Upon the occurrence of a Voluntary Conversion, the applicable amount of outstanding
principal and accrued and unpaid interest under this Note shall be converted into Common Stock of
the Borrower at the Conversion Price, without any further action by the Lender and whether or not
the Note is surrendered to the Borrower or its transfer agent. The Borrower shall not be obligated
to issue certificates evidencing the shares of the Common Stock issuable upon such conversion
unless and until such Note is either delivered to the Borrower or its transfer agent, or Lender
notifies the Borrower or its transfer agent that such Note has been lost, stolen or destroyed and
executes an agreement satisfactory to the Borrower to indemnify the Borrower from any loss incurred
by it in connection with such Note. The Borrower shall, as soon as practicable after such
delivery, or such agreement and indemnification, issue and deliver at such office to the Lender, a
certificate or certificates for the securities to which Lender shall be entitled
and a check payable to the Lender in the amount of any cash amounts payable as the result of a
conversion into fractional shares, as determined by the board of directors of the Borrower. Such
conversion shall be deemed to have been made concurrently with the close of the Voluntary
Conversion. The person or persons entitled to receive securities issuable upon such conversion
shall be treated for all purposes as the record holder or holders of such securities on such
date.

 

- 11 -

 

6. This Note shall be governed by construed and under the laws of the State of Georgia,
without giving effect to conflicts of laws principles.

7. Any term of this Note may be amended or waived (subject to the provisions of the Security
and Intercreditor Agreement) with the written consent of Borrower and the Lender provided that this
Note may not be amended if it disproportionately affects the Lender hereof, without the consent of
Lender of this Note.

8. Nothing contained in this Note shall be construed as conferring upon the Lender or any
other person the right to vote or to consent or to receive notice as a stockholder of the Borrower.

9. This Note may be transferred only upon (a) its surrender by Lender to the Borrower for
registration of transfer, duly endorsed, or accompanied by a duly executed written instrument of
transfer in form satisfactory to the Borrower and (b) compliance with applicable provisions of the
Credit Agreement and the Note Subscription Agreement, including (without limitation) the Borrower’s
receipt, if it so requests, of an opinion of counsel as set forth in the Note Subscription
Agreement. Thereupon, this Note shall be reissued to, and registered in the name of, the
transferee, or a new Note for like principal amount and interest shall be issued to, and registered
in the name of, the transferee. Interest and principal shall be paid solely to the registered
holder of this Note. Such payment shall constitute full discharge of the Borrower’s obligation to
pay such interest and principal.

10. The Borrower hereby waives presentment, demand, protest, notice of demand, protest and
nonpayment and any other notice required by law relative hereto, except to the extent as otherwise
may be expressly provided for in the Credit Agreement.

COUNTERPART SIGNATURE PAGE FOLLOWS

 

- 12 -

 

5% CONVERTIBLE SENIOR SECURED PROMISSORY NOTE

COUNTERPART SIGNATURE PAGE

This Note is hereby issued to Lender as of the date first above written.

	 	 	 	 	 

	 

	 	MiMedx
	 	 Group, Inc.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 

Acknowledged and Agreed to by Lender:

	 	 	 	 	 	 	 	 	 	 	 

	Signature for Corporate, Partnership, or other Entity Holder:

	 	 	 	Signature for Individual Holder:

	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	(Print Name of Entity)	 	 	 	(Signature)
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	 	 	Print Name:	 	 
	 	 	 	 	 	 	 	 
	Print Name:	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 
	Print Title:	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 

 

- 13 -

 

Exhibit C

Form of Security and Intercreditor Agreement

SECURITY AND INTERCREDITOR AGREEMENT

THIS SECURITY AND INTERCREDITOR AGREEMENT (this “Security Agreement”), dated March 31, 2011,
by and among MIMEDX GROUP, INC., a corporation under the laws of the state of Florida (“Grantor”),
in favor of Parker H. Petit., in his capacity as collateral agent hereunder (in such capacity,
together with any successor collateral agent, “Collateral Agent”) for the benefit of the holder of
that certain 5% Convertible Senior Secured Promissory Note of even date herewith issued by the
Grantor to Parker H. Petit (“Petit”) and such other parties who may undertake to lend to the
Grantor in the twelve (12) month period immediately following the date hereof and who sign a
Counterpart Signature Page hereto (Petit and such other signatories being individually referred to
herein as a “Lender,” and, collectively, as “Lenders”).

R E C I T A L S

WHEREAS, Grantor has entered into that certain Revolving Secured Line of Credit Agreement
dated of even date herewith with Petit (such agreement as it may be amended or otherwise modified
from time to time is referred to herein as the “Credit Agreement”);

WHEREAS, Grantor may incur other indebtedness from a Lender evidenced by a note and other
appropriate instruments and agreements (together with the Credit Agreement, collectively the “Loan
Documents”);

WHEREAS, the execution and delivery of this Security Agreement is required by the Credit
Agreement, and may be required by the other Loan Documents, as a condition to making extensions of
credit thereunder; and

WHEREAS, Grantor has determined that the Notes shall inure to the benefit of Grantor and that
it is in its best interest to execute this Security Agreement.

NOW, THEREFORE, in consideration of the premises and other good and valuable consideration,
the receipt of which are hereby acknowledged, the parties hereto agree as follows:

1. Defined Terms. The following terms shall have the following meanings (such
meanings being equally applicable to both the singular and plural forms of the terms defined):

“Collateral” shall have the meaning set forth in Section 2 hereof.

“Collateral Agent” shall have the meaning set forth in the heading to this Security Agreement.

 

- 14 -

 

“Event of Default” shall have the meaning given to it in the applicable Loan Document.

“Grantor” shall have the meaning set forth in the heading to this Security Agreement.

“Intellectual Property” shall mean any of the following and all rights in, arising out of, or
associated therewith: (a) all United States, international, and foreign patents and applications
therefor (of any kind) and all reissues, divisions, renewals, extensions, provisionals,
continuations, and continuations-in-part thereof; (b) all inventions (whether patentable or not),
invention disclosures, improvements, trade secrets, proprietary information, know-how, technology,
technical data, customer lists, computer programs and other computer software, user interfaces,
processes and formulae, source code, object code, algorithms, methodologies, logical data models,
physical data models, architecture, structure, display screens, layouts, development tools,
instructions, templates and marketing materials, designs, all documentation relating to any and all
of the foregoing, and all trade secret rights in and to any and all of the foregoing; (c) all
copyrights, copyrights registrations, and applications therefor, and all other rights corresponding
thereto throughout the world; (d) all industrial designs and any registrations and applications
therefor throughout the world; (e) all trade names, logos, common law trademarks and service marks,
trademark and service mark registrations, intent-to-use applications, and other registrations and
applications therefor throughout the world; (f) all databases and data collections and all rights
therein throughout the world; (g) all domain names; and (h) any similar or equivalent rights to any
of the foregoing anywhere in the world.

“Lien” shall mean any security interest, mortgage, pledge, hypothecation, charge, claim,
option, right to acquire, adverse interest, assignment, deposit arrangement, encumbrance,
restriction, lien (statutory or other), or preference, priority, or other security agreement or
preferential arrangement of any kind or nature whatsoever, and the filing of any financing
statement under the Uniform Commercial Code or comparable law of any jurisdiction.

“Lender” or “Lenders” shall have the meaning set forth in the heading to this Security
Agreement.

“Majority In Interest” means, at any time, Lenders holding more than fifty percent (50%) of
the outstanding principal amount of the Notes at such time.

“Notes” means that certain 5% Convertible Senior Secured Promissory Note dated March 31,
2011 issued by the Grantor to Petit, together with all promissory notes or evidences of
indebtedness included in the Loan Documents issued by the Grantor to the other Lenders.

“Permitted Dispositions” means (i) transfers in the ordinary course of business, including,
without limitation, sales of inventory and products made for sale, fixtures, furniture, and
transfers of worn out, obsolete or surplus equipment; and (ii) any and all licenses of Intellectual
Property from the Grantor to third parties.

 

- 15 -

 

“Permitted Liens” means:

(a) Liens consisting of any license or sublicense of Intellectual Property and any interest
of a licensor under any such license or sublicense; and

(b) Liens arising solely by virtue of any statutory or common law provision relating to
banker’s liens, rights of setoff or similar rights and remedies as to deposit accounts or other
funds maintained with a Lender depository institution.

“Pro Rata Share” shall have the meaning set forth in Section 5(e) hereof.

“Secured Obligations” means all indebtedness, liabilities and obligations of Grantor to
Lenders, whether now existing or hereafter incurred, pursuant to the Notes.

“UCC” means the Uniform Commercial Code as the same may, from time to
time, be in effect in the State of Georgia; provided, however, in the event that, by reason of
mandatory provisions of law, any or all of the attachment, perfection or priority of Lender’s
security interest in any Collateral is governed by the Uniform Commercial Code as in effect in a
jurisdiction other than the State of Georgia, the term “UCC” shall mean the Uniform Commercial Code
as in effect in such other jurisdiction for purposes of the provisions hereof relating to such
attachment, perfection of priority and for purposes of definitions related to such provisions.

2. Grant of Security Interest. As collateral security for the prompt and complete
payment and performance when due (whether at stated maturity, by acceleration or otherwise) of all
the Secured Obligations and in order to induce the Borrower and Lenders to cause the Notes to be
issued, Grantor hereby grants to Collateral Agent, as agent for the Lenders, a first priority
security interest in all patents and other Intellectual Property of the Borrower now owned or
hereafter developed or acquired, excluding only (i) the Intellectual Property owned by, or
exclusively licensed to, Surgical Biologics, LLC, and (ii) all accessions to, substitutions for and
replacements, products and proceeds of any of the foregoing (the “Collateral”).

3. Perfection and Protection of Security Interest.

(a) (a) Perfection of Security Interest. Grantor shall, at its expense, perform all
steps requested by the Collateral Agent at any time to perfect, maintain, protect, and enforce the
Lenders’ Liens, including: (i) executing, delivering and/or filing of financing or continuation
statements, and amendments thereof, in form and substance reasonably satisfactory to the Lenders;
(ii) when an Event of Default has occurred and is continuing, if requested by the Collateral Agent,
transferring the Collateral as designated by the Collateral Agent; (iii) placing notations on
Grantor’s books of account to disclose the Lenders’ security interest; and (iv) taking such other
steps as are deemed necessary or desirable by the Collateral Agent to maintain and protect the
Lenders’ Liens.

 

- 16 -

 

(b) (b) Financing Statements. Grantor hereby irrevocably authorizes the Collateral
Agent at any time and from time to time to file in any filing office in any Uniform Commercial Code
jurisdiction any initial financing statements and amendments thereto that (a) indicate the
Collateral (i) as all of the intellectual property of Grantor or words of
similar effect (excepting only the patents and other intellectual property owned by Surgical
Biologics, LLC), regardless of whether any particular asset comprised in the Collateral falls
within the scope of Article 9 of the UCC or the Uniform Commercial Code of such jurisdiction, or
(ii) as being of an equal or lesser scope or with greater detail, and (b) contain any other
information required by part 5 of Article 9 of the UCC for the sufficiency or filing office
acceptance of any financing statement or amendment, including (i) whether the Grantor is an
organization, the type of organization and any organization identification number issued to the
Grantor, and (ii) in the case of a financing statement filed as a fixture filing, a sufficient
description of real property to which the Collateral relates. Any such filing, and any amendment,
continuation or termination with respect thereto, shall be made only with the approval of the
Majority In Interest for and on behalf of all of the Lenders. Grantor agrees to furnish any such
information to the Lenders promptly upon request. The Grantor agrees that a carbon, photographic,
photostatic, or other reproduction of this Security Agreement or of a financing statement is
sufficient as a financing statement.

(c) (c) Confirmation. From time to time, Grantor shall, upon the Collateral Agent’s
request, execute and deliver confirmatory written instruments pledging to the Lenders the
Collateral, but Grantor’s failure to do so shall not affect or limit any security interest or any
other rights of the Lenders in and to the Collateral with respect to Grantor. Until all Secured
Obligations have been fully satisfied, the security interest granted hereunder shall continue in
full force and effect in all Collateral.

4. Power of Attorney. TO THE EXTENT PERMITTED BY APPLICABLE LAW, GRANTOR AND EACH
OTHER LENDER HEREUNDER HEREBY IRREVOCABLY CONSTITUTES AND APPOINTS COLLATERAL AGENT, WITH FULL
POWER OF SUBSTITUTION, AS ITS TRUE AND LAWFUL ATTORNEY-IN-FACT WITH FULL IRREVOCABLE POWER AND
AUTHORITY IN THE NAME OF GRANTOR OR IN ITS OWN NAME AS AGENT FOR ITSELF AND THE OTHER SECURED
PARTIES, TO TAKE, AFTER THE OCCURRENCE AND DURING THE CONTINUANCE OF AN EVENT OF DEFAULT, ANY AND
ALL ACTIONS AND TO EXECUTE ANY AND ALL DOCUMENTS AND INSTRUMENTS WHICH COLLATERAL AGENT AT ANY TIME
AND FROM TIME TO TIME DEEMS NECESSARY TO ACCOMPLISH THE PURPOSES OF THIS SECUIRTY AGREEMENT AND,
WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, GRANTOR HEREBY GIVES COLLATERAL AGENT THE POWER
AND RIGHT ON BEHALF OF GRANTOR AND IN ITS OWN NAME TO DO ANY OF THE FOLLOWING AFTER THE OCCURRENCE
AND DURING THE CONTINUANCE OF AN EVENT OF DEFAULT, WITHOUT NOTICE TO, OR THE CONSENT OF, GRANTOR:
(a) to endorse the Grantor’s name on any checks, notes, acceptances, money orders, or other forms
of payment or security that come into the Lenders’ possession; (b) to sign the Grantor’s name on
any invoice, bill of lading, warehouse receipt or other negotiable or non-negotiable document
constituting Collateral, on drafts against customers, on assignments of accounts, on notices of
assignment, financing statements, filings with the United States Patent and Trademark Office, and
other public records and to file any such financing statements or other documents by manual or
electronic means with or without a signature as authorized or required by applicable law or filing
procedure; (c) to notify the post office authorities to change the address for delivery of the
Grantor’s mail to an address designated by the Collateral Agent and to

 

- 17 -

 

receive, open and dispose of
all mail addressed to the Grantor; (d) to send requests for verification of accounts to customers or account debtors; (e) to complete in the Grantor’s name or the Lenders’ names, any order, sale or
transaction, obtain the necessary documents in connection therewith, and collect the proceeds
thereof; (f) to file such financing statements with respect to this Security Agreement, with or
without the Grantor’s signature, or to file a photocopy of this Security Agreement in substitution
for a financing statement, as the Collateral Agent may deem appropriate, and to execute in the
Grantor’s name such financing statements and amendments thereto and continuation statements which
may require the Grantor’s signature; and (g) to do all things necessary to carry out the
fulfillment of the obligations of the Grantor under the Notes, the Loan Documents and this Security
Agreement. Grantor hereby ratifies and approves all acts of such attorney-in-fact. Neither the
Majority In Interest nor the Collateral Agent or other designees or attorneys will be liable for
any acts or omissions or for any error of judgment or mistake of fact or law except for their
willful misconduct.

THIS POWER OF ATTORNEY IS A POWER COUPLED WITH AN INTEREST AND SHALL BE IRREVOCABLE UNTIL THE
SECURED OBLIGATIONS HAVE BEEN FULLY SATISFIED.

5. Intercreditor Provisions.

(a) Rights With Respect to Notes. Upon an Event of Default, the Majority In
Interest, acting through the Collateral Agent and subject to this Security Agreement, shall have
the right to accelerate the maturity of the Notes. Each Lender hereby agrees that it shall not
amend or assign its Loan Documents without the prior written consent of a Majority In Interest.

(b) Waivers. Waivers granted and other actions taken pursuant to this Security
Agreement shall be effective as against all Lenders if in writing executed by the Collateral Agent.

(c) Sharing of Payments and Proceeds. Each Lender shall share pari passu on a ratable
basis equal to its Pro Rata Share (defined below) in all payments from any source made on any of
the Notes, and in the Collateral and any proceeds therefrom. “Pro Rata Share” shall mean an
amount equal to the amount which results when the total amount of principal that is owing to that
Lender is divided by the aggregate principal owing to all Lenders (expressed as a percentage).
Each Lender agrees that if it shall receive (by whatever means, including through the exercise of
any right of setoff or counterclaim or otherwise) payment of a proportion of the aggregate amount
of principal and interest due with respect to the Notes that is greater than its Pro Rata Share,
the Lender receiving such proportionately greater payment shall remit to the other Lenders the
amount necessary so that each Lender receives its Pro Rata Share of such payment.

 

- 18 -

 

(d) Amendment. No amendment of any provision of this Security Agreement shall in any
event be effective unless the same shall be in writing and signed by the Majority In Interest.

(i) (e) Collateral Agent. Each Lender hereby appoints Parker H. Petit as its
collateral agent hereunder, who shall act as a representative of the Lenders to carry out
instructions and directives of the Majority In Interest for purposes of this
Security Agreement and to have the other responsibility and authority set forth in this
Security Agreement. The Lenders’ approval of this Security Agreement shall include
confirmation of the authority of the Collateral Agent. Grantor may rely upon the acts of
the Collateral Agent for all purposes permitted hereunder. EACH LENDER HEREBY WAIVES ANY
CONFLICT OF INTEREST OF THE COLLATERAL AGENT ARISING FROM HIS SERVICE AS COLLATERAL AGENT
HEREUNDER AND AS CHAIRMAN, CEO AND A MAJOR SHAREHOLDER OF BORROWER.

(ii) The Collateral Agent shall have full power of attorney to act in the name, place,
and stead of the Lenders in all matters in connection with this Security Agreement, upon the
approval of the Majority In Interest or as may be specifically provided herein. The
Collateral Agent’s authority to act on behalf of the Lenders includes the power to execute
all such documents, waivers, amendments, and instruments as are approved by the Majority In
Interest or by this Security Agreement.

(iii) The Collateral Agent shall have no duties or obligations except as specifically
set forth in this Security Agreement. In acting on behalf of the Majority In Interest, the
Collateral Agent may rely upon, and shall be protected in acting or refraining from acting
upon, an opinion or advice of counsel, certificate of auditors or other certificate,
statement, instrument, opinion, report, notice, request, consent, order, arbitrator’s award,
appraisal, bonds, or other paper or document reasonably believed by them to be genuine and
to have been executed or presented by the proper party or parties. The Collateral Agent
shall not be personally liable to the Majority In Interest for any action taken, suffered,
or omitted by him, except for willful misconduct or gross neglect.

The Collateral Agent and each Lender hereby agree that the Majority In Interest shall have the
full and complete right and authority to give instructions to, and otherwise direct, the Collateral
Agent in respect of the Collateral or any action with respect to any Collateral. The Collateral
Agent shall not have by reason of this Security Agreement or any other document a fiduciary
relationship in respect of any Lender.

6. Representations and Warranties. Grantor hereby represents and warrants to the
Lenders that except for the security interest granted under this Security Agreement and Permitted
Liens, Grantor has granted no other security interest in the Collateral that is still outstanding,
and that the Collateral Agent has been a valid, binding and enforceable Lien and/or security
interest in and to the Collateral hereunder for the benefit of the Lenders.

7. Covenants. Grantor covenants and agrees with the Lenders that from and after the
date of this Security Agreement and until the Secured Obligations have been performed and paid in
full:

7.1 Further Assurances. At any time and from time to time, upon the written request
of the Collateral Agent, and at the sole expense of Grantor, Grantor shall promptly and duly
execute and deliver any and all such further instruments and documents and take such further
actions as the Collateral Agent may reasonably deem desirable to obtain the full benefit of this
Security Agreement.

 

- 19 -

 

7.2 Maintenance of Records. Grantor shall keep and maintain at its own cost and
expense satisfactory and complete records of the Collateral. Grantor shall allow reasonable access
to such records upon reasonable notice from Lenders.

7.3 Collateral. The Grantor agrees that it will not, without the prior written
consent of the Collateral Agent, consent to, permit or suffer to occur any sale, transfer, Lien, or
use of any of the Collateral adversely affecting the interest of the Lenders therein, other
than pursuant to Permitted Liens and Permitted Dispositions.

8. Rights and Remedies Upon Default.

(a) Upon the occurrence and during the continuation of an Event of Default
(subject to the provisions of this Security Agreement and the Loan Documents), the Lenders, acting
through the Collateral Agent, shall have the right to take title to, seize, assign, sell, and
otherwise dispose of the Collateral, or any part thereof, either at public or private sale, in lots
or in bulk, for cash, credit or otherwise, with or without representations or warranties, and upon
such terms as shall be reasonable, and any Lender may bid or become the purchaser at any such
sale. If notification to Grantor of any intended disposition by the Lenders of any of the
Collateral is required by applicable law, such notification will be deemed to have been reasonable
and proper if given at least 20 days prior to such disposition.

(b) If any Event of Default shall occur and be continuing, the Lenders, acting
through the Collateral Agent, may exercise, in addition to all other rights and remedies granted to
it under this Security Agreement and the Loan Documents, all rights and remedies of a secured party
under the UCC.

(c) Except as specifically provided for herein, Grantor hereby waives
presentment, demand, protest or any notice (to the maximum extent permitted by applicable law) of
any kind in connection with this Security Agreement or any Collateral.

(d) The proceeds of any sale, disposition or other realization upon all or any
part of the Collateral shall be distributed in the following order of priorities:

First, to the Collateral Agent in an amount sufficient to pay in full the reasonable costs of
the Collateral Agent in connection with such sale, disposition or other realization, including all
fees, costs, expenses, liabilities and advances incurred or made by the Collateral Agent in
connection therewith, including, without limitation, reasonable attorneys’ fees;

Second, to the Lenders in the amount of the Pro Rata Share owing to each Lender; and

Finally, upon payment in full of the Secured Obligations, to Grantor or its representatives or
as a court of competent jurisdiction may direct.

 

- 20 -

 

9. Reinstatement. This Security Agreement shall remain in full force and effect and
continue to be effective should any petition be filed by or against Grantor for liquidation or
reorganization, should Grantor become insolvent or make an assignment for the benefit of
Lenders or should a receiver or trustee be appointed for all or any significant part of Grantor’s
property and assets, and shall continue to be effective or be reinstated, as the case may be, if at
any time payment and performance of the Secured Obligations, or any part thereof, is, pursuant to
applicable law, rescinded or reduced in amount, or must otherwise be restored or returned by any
obligee of the Secured Obligations, whether as a “voidable preference,” “fraudulent conveyance,” or
otherwise, all as though such payment or performance had not been made. In the event that any
payment, or any part thereof, is rescinded, reduced, restored or returned, the Secured Obligations
shall be reinstated and deemed reduced only by such amount paid and not so rescinded, reduced,
restored or returned.

10. Miscellaneous.

10.1 No Waiver; Cumulative Remedies.

(a) Lenders shall not by any act, delay, omission or otherwise be deemed to
have waived any of their respective rights or remedies hereunder, nor shall any single or partial
exercise of any right or remedy hereunder on any one occasion preclude the further exercise thereof
or the exercise of any other right or remedy.

(b) The rights and remedies hereunder provided are cumulative and may be
exercised singly or concurrently, and are not exclusive of any rights and remedies provided by law.

(c) None of the terms or provisions of this Security Agreement may be waived,
altered, modified or amended except as provided herein.

10.2 Termination of this Security Agreement. This Security Agreement shall
terminate upon the payment and performance in full of the Secured Obligations.

10.3 Successor and Assigns. This Security Agreement shall be binding upon
the successors of Grantor and Lenders and may not be assigned by any party.

10.4 Governing Law. In all respects, including all matters of construction,
validity and performance, this Security Agreement shall be governed by, and construed and enforced
in accordance with, the laws of the State of Georgia applicable to contracts made and performed in
such state, without regard to the principles thereof regarding conflict of laws.

10.5 Counterparts. This Security Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

 

- 21 -

 

10.6 Titles and Subtitles. The titles of the sections and subsections of
this Security Agreement are not to be considered in construing this Security Agreement.

10.7 Severability. In case any provision of this Security Agreement shall
be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.

10.8 Agreement is Entire Contract. This Security Agreement, the Notes, and
the other Loan Documents, constitute the final, complete and exclusive contract between the parties
hereto with respect to the subject matter hereof and no party shall be liable or bound to the other
in any manner by any warranties, representations, guarantees or covenants except as specifically
set forth herein and in such other documents referred to above. Nothing in this Security
Agreement, express or implied, is intended to confer upon any party, other than the parties hereto,
and their respective successors and assigns, any right, remedies, obligations or liabilities under
or by reason of this Security Agreement, except as expressly provided herein.

[Signatures Contained on the Following Page]

 

- 22 -

 

In Witness Whereof, the undersigned have caused this Security Agreement to be executed and
delivered by its duly authorized officer on the date first set forth above.

GRANTOR:

MiMedx Group, Inc.

	 	 	 	 	 
	By:

	 	  

Michael
J. Senken, CFO
	 	 

[COMPANY SEAL]

COLLATERAL AGENT:

	 	 	 
	 
	 	(SEAL)
	Parker H. Petit
	 	 

LENDERS’ COUNTERPART SIGNATURE PAGE TO SECURITY AND INTERCREDITOR

AGREEMENT FOLLOWS

 

 

 

LENDERS’ COUNTERPART SIGNATURE PAGE TO

SECURITY AND INTERCREDITOR AGREEMENT

LENDERS:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Signature for Corporate, Partnership,
or other Entity Lender:	 	 	 	Signature for Individual Lender:	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	(Print Name of Entity)

	 	 	 	(Signature)	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	 	 	Print Name:	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	Print Name:	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 

	 	 	 	 	 	 	 	 
	Print Title:	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 

 

 

 

Exhibit D

Form of First Contingent Warrant

THIS WARRANT MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT AS SPECIFIED HEREIN.
NEITHER THE RIGHTS REPRESENTED BY THIS WARRANT NOR THE SHARES ISSUABLE UPON THE EXERCISE HEREOF
HAVE BEEN REGISTERED FOR OFFER OR SALE UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE
STATE LAW. SUCH RIGHTS AND SHARES MAY NOT BE SOLD OR OFFERED FOR SALE IN WHOLE OR IN PART EXCEPT
IN ACCORDANCE WITH THE PROVISIONS HEREOF.

			
	 	 	 
	Warrant No.:
	 	Issuance Date:                     , 2011
	Number of Warrant Shares:
	 	Warrant Exercise Price: USD$.01 per share

MiMedx Group, Inc.

Warrant to Purchase Common Stock

MiMedx Group, Inc., a Florida corporation (the “Company”), hereby certifies that
                                        , the registered holder hereof, or its permitted assigns (“Holder”), is
entitled, subject to the terms set forth below, including without limitation Section 3 hereof, to
purchase from the Company upon surrender of this warrant (the “Warrant”), at any time or times on
or after, and subject to the occurrence of, the Effective Date hereof but not after 5:00 P.M.
(Eastern Standard Time) on the Expiration Date (as defined herein), all or any part of the Warrant
Shares (as defined herein), of fully paid and nonassessable Common Stock (as defined herein) of the
Company by payment of the applicable aggregate Warrant Exercise Price (as defined herein) in lawful
money of the United States.

SECTION 1. Definitions. The following words and terms as used in this Warrant shall
have the following meanings:

(a) “2011 Gross Revenues” means the Company’s total revenue from all sources on a
consolidated basis, for the year ending December 31, 2011, as reflected in its audited
financial statements.

(b) “Assignment Form” shall have the meaning given to such term in Section 14(h) of
this Warrant.

(c) “Change in Control” means the date the shareholders of the Company approve a
definitive agreement (A) to merge or consolidate the Company with or into another
corporation or other business entity (for these purposes, each, a “corporation”), in which
the holders of the Company’s Common Stock immediately prior to the merger or consolidation
have voting control over less than fifty percent (50%) of the voting securities of the
surviving corporation outstanding immediately after such merger or consolidation, or (B) to
sell or otherwise dispose of all or substantially all the assets of the Company.

(d) “Common Stock” means (i) the Company’s common stock and (ii) any capital stock
resulting from a reclassification of such “Common Stock.”

 

- 25 -

 

(e) “Company” means MiMedx Group, Inc., a Florida corporation.

(f) “Convertible Securities” means any securities issued by the Company which are
convertible into or exchangeable for, directly or indirectly, shares of Common Stock.

(g) “Effective Date” means the first to occur of the following: (i) the first business
day following the Measurement Date if and only if the Company’s 2011 Gross Revenues are less
than $11,500,000, and (ii) the occurrence of a Change in Control prior to the Measurement
Date, other than a Qualified Change in Control. .

(h) “Exercise Date” means any date after the Effective Date on which notice of exercise
hereof is given by Holder.

(i) “Expiration Date” means the date which is five (5) years after the Issuance Date as
shown on the face hereof; provided however that this Warrant may terminate earlier as
provided in Section 3 hereof.

(j) “Holder” shall have that meaning given to such term in the introductory paragraph
of this Warrant.

(k) “Market Price means the fair market value of one share of
Common Stock determined as follows: (i) where there exists a public market for the
Company’s Common Stock at the time of such exercise, the fair market value per share shall
be the closing trading price of the Common Stock quoted in the Over-The-Counter Market
Summary or the last reported sale price of the Common Stock or the closing price quoted on
the NASDAQ National Market System or on any exchange on which the Common Stock is listed,
whichever is applicable, for the five (5) trading days (or such fewer number of trading days
as the Company’s Common Stock may have been publicly traded) ending on the trading day prior
to the date of determination of fair market value and (ii) if at any time the Common Stock
is not listed on any domestic exchange or quoted in the NASDAQ System or the domestic
over-the-counter market, the higher of (A) the book value thereof, as determined by any firm
of independent public accountants of recognized standing selected by the Board of Directors,
as at the last day as of which such determination shall have been made, or (B) the fair
value thereof determined in good faith by the Board of Directors as of the date which is
within fifteen (15) days of the date as of which the determination is to be made (in
determining the fair value thereof, the Board of Directors shall consider stock market
valuations and price to earnings ratios of comparable companies in similar industries).

(l) “Measurement Date” means the date on which the Company files with the SEC its
audited financial statements for the fiscal year ending December 31, 2011.

(m) “Qualified Change in Control” means any Change in Control which occurs prior to the
Measurement Date and in which the holders of the Company’s Common Stock will receive
consideration in any form, having a value of $1.50 or more, per share of Common Stock.

 

- 26 -

 

(n) ”SEC” means the Securities and Exchange Commission.

(o) “Securities Act” means the Securities Act of 1933, as amended.

(p) “Subscription Notice” shall have that meaning given to such term in Section 2(a) of
this Warrant.

(q) “Warrant” shall have that meaning given to such term in the introductory paragraph
of this document.

(r) “Warrant Exercise Price” shall initially be the amount per share shown above on the
face hereof.

(s) “Warrant Shares” means the shares of Common Stock subject to this Warrant and shown
above on the face hereof.

(t) Other Definitional Provisions.

(i) Except as otherwise specified herein, all references herein (A) to any person other
than the Company, shall be deemed to include such person’s successors and permitted assigns,
(B) to the Company shall be deemed to include the Company’s successors and (C) to any
applicable law defined or referred to herein, shall be deemed references to such applicable
law as the same may have been or may be amended or supplemented from time to time.

(ii) When used in this Warrant, the words “herein,” “hereof,” and “hereunder,” and
words of similar import, shall refer to this Warrant as a whole and not to any provision of
this Warrant, and the words “Section,” “Schedule,” and “Exhibit” shall refer to Sections of,
and Schedules and Exhibits to, this Warrant unless otherwise specified.

(iii) Whenever the context so requires the neuter gender includes the masculine or
feminine, and the singular number includes the plural, and vice versa.

SECTION 2. Exercise of Warrant.

(a) Subject to the terms and conditions hereof (including, without limitation, the
termination provisions set forth herein), this Warrant may be exercised in whole or in part,
at any time during normal business hours on or after the Effective Date and prior to 5:00
p.m. (Eastern Standard Time) on the Expiration Date. The rights represented by this Warrant
may be exercised by the holder hereof then registered on the books of the Company, in whole
or from time to time in part (except that this Warrant shall not be exercisable as to a
fractional share), by: (i) delivery of a written notice, in the form of the subscription
notice attached as Exhibit A hereto (the “Subscription Notice”), of such holder’s
election to exercise this Warrant, which notice shall specify the number of Warrant Shares
to be purchased; (ii) payment to the Company of an amount equal to the Warrant Exercise
Price multiplied by the number of Warrant Shares as to which the Warrant is being exercised
(plus any applicable issue

 

- 27 -

 

or transfer taxes) in cash, by wire transfer or by certified or official bank check; and (iii) the surrender of this
Warrant, properly endorsed, at the principal office of the Company in Marietta, Georgia (or
at such other agency or office of the Company as the Company may designate by notice to the
Holder); provided, that if such Warrant Shares are to be issued in any name other than that
of the Holder, such issuance shall be deemed a transfer and the provisions of Section 14
shall be applicable. In the event of any exercise of the rights represented by this
Warrant, a certificate or certificates for the Warrant Shares so purchased, registered in
the name of, or as directed by, the Holder, shall be delivered to, or as directed by the
Holder within a reasonable time after the date on which such rights shall have been so
exercised. In the event that this Warrant becomes exercisable due to the occurrence of a
Change in Control, the Company shall give the Holder written notice of the occurrence
thereof at least five business days prior to the consummation of the transaction which was
approved by the shareholders of the Company.

(b) Unless the rights represented by this Warrant shall have expired or have been fully
exercised, the Company shall issue, within such fifteen (15) day period, a new Warrant
identical in all respects to the Warrant exercised except (x) such new Warrant shall
represent rights to purchase the number of Warrant Shares purchasable immediately prior to
such exercise under the warrant exercised, less the number of Warrant Shares with respect to
which such original Warrant was exercised, and (y) the Warrant Exercise Price thereof shall
be, subject to further adjustment as provided in this Warrant, the Warrant Exercise Price of
the Warrant exercised. The person in whose name any certificate for Warrant Shares is
issued upon exercise of this Warrant shall for all purposes be deemed to have become the
holder of record of such Warrant Shares immediately prior to the close of business on the
date on which the Warrant was surrendered and payment of the amount due in respect of such
exercise and any applicable taxes was made, irrespective of the date of delivery of such
share certificate, except that, if the date of such surrender and payment is a date when the
stock transfer books of the Company are properly closed, such person shall be deemed to have
become the holder of such Warrant Shares at the opening of business on the next succeeding
date on which the stock transfer books are open.

SECTION 3. Termination of the Warrant. This Warrant shall automatically
terminate without exercise and shall be null and void on the earliest to occur of: (i) the
Measurement Date, if the 2011 Gross Revenues of the Company equals or exceeds $11,500,000,
or (ii) the occurrence of ten consecutive trading days prior to the Measurement Date, in
which the closing trading price of the Common Stock is at least $1.50 per share, or (iii)
upon the occurrence of a Qualified Change In Control.

SECTION 4. Covenants as to Common Stock.

(a) The Company covenants and agrees that all Warrant Shares that may be issued upon
the exercise of the rights represented by this Warrant will, upon issuance, be validly
issued, fully paid and nonassessable. The Company further covenants and agrees that during
the period within which the rights represented by this Warrant may be exercised, the Company
will at all times have authorized and reserved a sufficient number of shares of Common Stock
to provide for the exercise of the rights
then represented by this Warrant and that the par value of said shares will at all
times be less than or equal to the applicable Warrant Exercise Price.

 

- 28 -

 

(b) If any shares of Common Stock reserved or to be reserved to provide for the
exercise of the rights then represented by this Warrant require registration with or
approval of any governmental authority under any federal or state law before such shares may
be validly issued to the Holder, then the Company covenants that it will in good faith and
as expeditiously as possible endeavor to secure such registration or approval, as the case
may be.

SECTION 5. Adjustment of Warrant Exercise Price upon Stock Splits, Dividends,
Distributions and Combinations; and Adjustment of Number of Shares.

(a) In case the Company shall at any time split or subdivide its outstanding shares of
Common Stock into a greater number of shares or issue a stock dividend (including any
distribution of stock without consideration) or make a distribution with respect to
outstanding shares of Common Stock or Convertible Securities payable in Common Stock or in
Convertible Securities, the Warrant Exercise Price in effect immediately prior to such
subdivision or stock dividend or distribution shall be proportionately reduced and
conversely, in case the outstanding shares of Common Stock of the Company shall be combined
into a smaller number of shares, the Warrant Exercise Price in effect immediately prior to
such combination shall be proportionately increased, in each case, by multiplying the then
effective Warrant Exercise Price by a fraction, the numerator of which shall be the total
number of shares of Common Stock outstanding immediately prior to such subdivision, stock
dividend, distribution or combination (determined on a fully diluted basis), and the
denominator of which shall be the total number of shares of Common Stock, immediately after
such subdivision, stock dividend, distribution or combination (determined on a fully diluted
basis), and the product so obtained shall thereafter be the Warrant Exercise Price. For
purposes of this Warrant, “on a fully diluted basis” means that all issued and outstanding
capital stock of the Company, including all Convertible Securities, and all outstanding
options and warrants, whether or not vested, shall be taken into account.

(b) Upon each adjustment of the Warrant Exercise Price as provided above in this
Section 5, the Holder shall thereafter be entitled to purchase, at the Warrant Exercise
Price resulting from such adjustment, the number of shares (calculated to the nearest tenth
of a share) obtained by multiplying the Warrant Exercise Price in effect immediately prior
to such adjustment by the number of shares purchasable pursuant hereto immediately prior to
such adjustment and dividing the product thereof by the Warrant Exercise Price immediately
after such adjustment.

 

- 29 -

 

SECTION 6. Reorganization, Reclassification, Etc. Subject to the provisions of
Section 3 hereof, in case of any capital reorganization, or of any reclassification of the
capital stock of the Company (other than a change in par value or from par value to no par
value or from no par value to par value or as a result of a split-up or combination) or in
case of the consolidation or merger of the Company with or into any other corporation (other
than a consolidation or merger in which the Company is the continuing corporation
and which does not result in the Common Stock being changed into or exchanged for stock
or other securities or property of any other person), or of the sale of the properties and
assets of the Company as, or substantially as, an entirety to any other corporation, this
Warrant shall, after such capital reorganization, reclassification of capital stock,
consolidation, merger or sale, entitle the Holder hereof to purchase the kind and number of
 shares of stock or other securities or property of the Company or of the corporation
resulting from such consolidation or surviving such merger or to which such sale shall be
made, as the case may be, to which the holder hereof would have been entitled if he had held
the Common Stock issuable upon the exercise hereof immediately prior to such capital
reorganization, reclassification of capital stock, consolidation, merger or sale, and, in
any such case, appropriate provision shall be made with respect to the rights and interests
of the holder of this Warrant to the end that the provisions thereof (including without
limitation provisions for adjustment of the Warrant Exercise Price and of the number of
 shares purchasable upon the exercise of this Warrant) shall thereafter be applicable, as
nearly as may be in relation to any shares of stock, securities, or assets thereafter
deliverable upon the exercise of the rights represented hereby. The Company shall not
effect any such consolidation, merger or sale, unless prior to or simultaneously with the
consummation thereof the successor corporation (if other than the Company) resulting from
such consolidation or merger of the corporation purchasing such assets shall assume by
written instrument executed and mailed or delivered to the registered holder hereof at the
address of such holder appearing on the books of the Company, the obligation to deliver to
such holder such shares of stock, securities or assets as, in accordance with the foregoing
provisions, such holder may be entitled to purchase.

SECTION 7. Notice of Adjustment of Warrant Exercise Price. Upon any adjustment
of the Warrant Exercise Price, then the Company shall give notice thereof to the Holder of
this Warrant, which notice shall state the Warrant Exercise Price in effect after such
adjustment and the increase, or decrease, if any, in the number of Warrant Shares
purchasable at the Warrant Exercise Price upon the exercise of this Warrant, setting forth
in reasonable detail the method of calculation and the facts upon which such calculation is
based.

SECTION 8. Computation of Adjustments. Upon each computation of an adjustment
in the Warrant Exercise Price and the number of shares which may be subscribed for and
purchased upon exercise of this Warrant, the Warrant Exercise Price shall be computed to the
nearest cent (i.e. fraction of .5 of a cent, or greater, shall be rounded to the next
highest cent) and the number of shares which may be subscribed for and purchased upon
exercise of this Warrant shall be calculated to the nearest whole share (i.e. fractions of
less than one half of a share shall be disregarded and fractions of one half of a share, or
greater, shall be treated as being a whole share). No such adjustment shall be made
however, if the change in the Warrant Exercise Price would be less than $.001 per share, but
any such lesser adjustment shall be made (i) at the time and together with the next
subsequent adjustment which, together with any adjustments carried forward, shall amount to
$.001 per share or more, or (ii) if earlier, upon the third anniversary of the event for
which such adjustment is required.

 

- 30 -

 

SECTION 9. Net Issue Exercise. Notwithstanding any provisions herein to the
contrary, if the Market Price of one share of Common Stock is greater than the Warrant
Exercise Price at the date of exercise of the Warrant, in lieu of exercising the Warrant by
payment of cash, the Holder may elect to receive shares equal to the value (as determined
below) of the Warrant (or portion thereof being canceled) by surrender of the Warrant at the
principal office of the Company together with the duly executed Notice of Exercise, in which
event the Company shall issue to the Holder a number of shares of the Common Stock computed
using the following formula:

X = Y(A - B)

A

WHERE X = the number of shares of Common Stock to be issued to the Holder;

Y = the number of shares of the Common Stock purchasable under the Warrant or, if
only a portion of the Warrant is being exercised, the number of shares underlying
the Warrant to the extent exercised (at the date of such exercise);

A = the Market Price of one share of Common Stock (at the date of such calculation);
and 
B = Warrant Exercise Price (at the date of such calculation).

SECTION 10. No Change in Warrant Terms on Adjustment. Irrespective of any
adjustment in the Warrant Exercise Price or the number of shares of Common Stock issuable
upon exercise hereof, this Warrant, whether theretofore or thereafter issued or reissued,
may continue to express the same price and number of shares as are stated herein and the
Warrant Exercise Price and such number of shares specified herein shall be deemed to have
been so adjusted.

SECTION 11. Taxes. The Company shall not be required to pay any tax or taxes
attributable to the initial issuance of the Warrant Shares or any transfer involved in the
issue or delivery of any certificates for Warrant Shares in a name other than that of the
registered holder hereof or upon any transfer of this Warrant.

SECTION 12. Warrant Holder Not Deemed a Shareholder. No holder, as such, of
this Warrant shall be entitled to vote or receive dividends or be deemed the holder of
 shares of the Company for any purpose, nor shall anything contained in this Warrant be
construed to confer upon the holder hereof, as such, any of the rights of a shareholder of
the Company or any right to vote, give or withhold consent to any corporate action (whether
any reorganization, issue of stock, reclassification of stock, consolidation, merger,
conveyance or otherwise), receive notice of meetings, receive dividends or subscription
rights, or otherwise, prior to the issuance of record to the holder of this Warrant of the
Warrant Shares which he is then entitled to receive upon the due exercise of this Warrant.

SECTION 13. No Limitation on Corporate Action. No provisions of this Warrant
and no right or option granted or conferred hereunder shall in any way limit, affect or
abridge the exercise by the Company of any of its corporate rights or powers to
recapitalize, amend its Articles of Incorporation, reorganize, consolidate or merge with or
into another corporation, or to transfer all or any part of its property or assets, or the
exercise of any other of its corporate rights and powers.

 

- 31 -

 

SECTION 14. Transfer; Opinions of Counsel; Restrictive Legends. To the extent
applicable, each certificate or other document evidencing any of the Warrant Shares shall be
endorsed with the legends set forth below, and Holder covenants that, except to the extent
such restrictions are waived by the Company, Holder shall not transfer the Warrant Shares
without complying with the restrictions on transfer described in the legends endorsed
thereon;

(a) The following legend under the Securities Act:

“THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED,
PLEDGED, OR HYPOTHECATED ABSENT AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT
UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL, REASONABLY SATISFACTORY TO
THE COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED.”

(b) If required by the authorities of any state in connection with the issuance or sale
of the Warrant Shares, the legend required by such state authority.

(c) The Company shall not be required (i) to transfer on its books either this Warrant
or any Warrant Shares which shall have been transferred in violation of any of the
provisions set forth in this Section 14, or (ii) to treat as owner of such Warrant Shares or
to accord the right to vote as such owner or to pay dividends to any transferee to whom such
Warrant Shares shall have been so transferred.

(d) Any legend endorsed on a certificate pursuant to subsection (a) or (b) of this
Section 14 shall be removed (i) if the Warrant Shares represented by such certificate shall
have been effectively registered under the Securities Act or otherwise lawfully sold in a
public transaction, or (ii) if the holder of such Warrant Shares shall have provided the
Company with an opinion from counsel, in form and substance reasonably acceptable to the
Company and from attorneys reasonably acceptable to the Company, stating that a public sale,
transfer or assignment of the Warrant or the Warrant Shares may be made without
registration.

(e) Any legend endorsed on a certificate pursuant to subsection (b) of this Section 14
shall be removed if the Company receives an order of the appropriate state authority
authorizing such removal or if the holder of the Warrant or the Warrant Shares provides the
Company with an opinion of counsel, in form and substance reasonably acceptable to the
Company and from attorneys reasonably acceptable to the Company, stating that such state
legend may be removed.

 

- 32 -

 

(f) Without in any way limiting the representations set forth above, Holder further
agrees not to make any disposition of all or any portion of the Warrant at any time other
than to an affiliate of the Holder; provided, however, that such affiliate transferee agrees
in writing to be subject to the terms of this Section 14. In addition, the
Holder agrees not to make any disposition of all or any portion of the Warrant Shares
unless:

(i) There is then in effect a registration statement under the Securities Act covering
such proposed disposition and such disposition is made in accordance with such registration
statement; or

(ii) Holder shall have notified the Company of the proposed disposition and shall have
furnished the Company with a detailed statement of the circumstances surrounding the
proposed disposition, and, if requested by the Company, (A) Holder shall have furnished the
Company with an opinion of counsel, reasonably satisfactory to the Company, that such
disposition will not require registration of the Warrant or any Warrant Shares under the
Securities Act and (B) the transferee shall have furnished to the Company its agreement to
abide by the restrictions on transfer set forth herein as if it were a purchaser hereunder.

(g) Notwithstanding the other provisions of this Section 14, no such registration
statement or opinion of counsel shall be required for any transfer by a Holder, (i) if it is
a partnership or a corporation, to a partner or pro rata to its equity holder(s) of such
Holder (or a third party duly authorized to act on behalf of such Holder or its partners or
equity holders), or (ii) if he or she is an individual, to members of such individual’s
family for estate planning purposes; provided, however, that the transferee agrees in
writing to be subject to the terms of this Section 14.

(h) Upon delivery of the foregoing opinion of counsel (with respect to a transfer of
the Warrant Shares) and the surrender of this Warrant to the Company at its principal
office, together with (i) the assignment form annexed hereto as Exhibit B (the
“Assignment Form”) duly executed and (ii) funds sufficient to pay any transfer tax, the
Company shall, if it determines such transfer is permitted by the terms of this Warrant,
without additional charge, execute and deliver a new Warrant in the name of the assignee
named in such instrument of assignment and this Warrant shall promptly be cancelled.

SECTION 15. Lost, Stolen, Mutilated or Destroyed Warrant. If this Warrant is
lost, stolen, mutilated or destroyed, the Company shall, on such terms as to indemnity or
otherwise as it may in its discretion impose (except in the event of loss, theft, mutilation
or destruction while this Warrant is in possession of the Company’s Escrow Agent, in which
events the Company shall be solely responsible) (which shall, in the case of a mutilated
Warrant, include the surrender thereof), issue a new Warrant of like denomination and tenor
as the Warrant so lost, stolen, mutilated or destroyed. Any such new Warrant shall
constitute an original contractual obligation of the Company, whether or not the allegedly
lost, stolen, mutilated or destroyed Warrant shall be at any time enforceable by anyone.

SECTION 16. Representation of Holder. The Holder, by the acceptance hereof,
represents that it is acquiring this Warrant, and the Warrant Shares, for its own account,
for investment purposes, and not with a present view either to sell, distribute, or
transfer,
or to offer for sale, distribution, or transfer, any of the Warrant or the Warrant
Shares, or any other securities issuable upon the exercise thereof.

 

- 33 -

 

SECTION 17. Restricted Securities. The Holder understands that the Warrant and
the Warrant Shares issuable upon exercise of the Warrant, will not be registered at the time
of their issuance under the Securities Act for the reason that the sale provided for in this
Warrant is exempt pursuant to Section 4(2) of the Securities Act based on the
representations of the Holder set forth herein. The Warrant Holder represents that it is
experienced in evaluating companies such as the Company, has such knowledge and experience
in financial and business matters as to be capable of evaluating the merits and risks of its
investment and has the ability to suffer the total loss of the investment. The Holder
further represents that it has had the opportunity to ask questions of and receive answers
from the Company concerning the terms and conditions of the Warrant, the business of the
Company, and to obtain additional information to such Holder’s satisfaction. The Holder
represents that it is an “Accredited Investor” within the meaning of Rule 501 of Regulation
D under the Securities Act, as presently in effect.

SECTION 18. Notices. All Notices, requests and other communications that the
Holder or the Company is required or elects to give hereunder shall be in writing and shall
be deemed to have been given (a) upon personal delivery thereof, including by appropriate
courier service, five (5) days after delivery to the courier or, if earlier, upon delivery
against a signed receipt therefore or (b) upon transmission by facsimile or telecopier,
which transmission is confirmed, in either case addressed to the party to be notified at the
address set forth below or at such other address as such party shall have notified the other
parties hereto, by notice given in conformity with this Section 18.

If to the Company:

MiMedx Group, Inc.

811 Livingston Ct. SE, Suite B

Marietta, GA 30067

Attention: General Counsel

Facsimile: (678) 384-6741

	 	 	 	 	 	 	 
	 	 	If to the Holder:	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Facsimile:
	 	 

	 	 

SECTION 19. Miscellaneous. This Warrant and any term hereof may be changed,
waived, discharged, or terminated only by an instrument in writing signed by the party or
holder hereof against which enforcement of such change, waiver, discharge or termination is
sought. The headings in this Warrant are for purposes of reference only and shall not limit
or otherwise affect the meaning hereof.

 

- 34 -

 

SECTION 20. Date. The Issuance Date of this Warrant is the date shown on the
first page above on the face hereof. This Warrant, in all events, shall be wholly void and
of no effect after 5:00 p.m. (Eastern Time) on the Expiration Date, except that
notwithstanding any other provisions hereof, the provisions of Section 14 shall
continue in full force and effect after such date as to any Warrant Shares or other
securities issued upon the exercise of this Warrant.

SECTION 21. Severability. If any provision of this Warrant is held by a court
of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions
shall nevertheless continue in full force and effect without being impaired or invalidated
in any way and shall be construed in accordance with the purposes and tenor and effect of
this Warrant.

SECTION 22. Governing Law. This Warrant shall be governed by and construed and
enforced in accordance with the laws of the State of Georgia, without reference to its
conflicts of law principles.

[Signatures Contained on the Following Page]

 

- 35 -

 

IN WITNESS WHEREOF, the Company has executed this Warrant as of the Issuance Date.

	 	 	 	 	 
	 	MiMedx Group, Inc.

 	 
	 	By:  	 	 
	 	 	Name:  	Michael J. Senken 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

Acknowledged and Agreed:

HOLDER:

	 	 	 
	 
 

Name:

	 	 
	Title (if applicable):
	 	 

 

- 36 -

 

EXHIBIT A TO

WARRANT

SUBSCRIPTION NOTICE

TO BE EXECUTED BY THE REGISTERED HOLDER IF SUCH REGISTERED HOLDER

DESIRES TO EXERCISE THIS WARRANT

The undersigned hereby exercises the right to purchase Warrant Shares covered by this Warrant
according to the conditions thereof and herewith [makes payment of $                    , the aggregate
Warrant Exercise Price of such Warrant Shares in full] [tenders solely this Warrant, or applicable
portion hereof, in full satisfaction of the Warrant Exercise Price upon the terms and conditions
set forth herein.]

INSTRUCTIONS FOR REGISTRATION OF STOCK

	 	 	 
	Name
	 	 
	 

	 	 
	 

	 	(Please typewrite or print in block letters)
	Address
	 	 
	 

	 	 

	 	 	 	 	 	 	 
	 	 	Holder Name:	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	[Net] Number of Warrant Shares Being Purchased	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 

	 
	Dated:                     , 20_____ 

 

 

 

EXHIBIT B TO

WARRANT

ASSIGNMENT FORM

FOR VALUE RECEIVED,                                                       
                           hereby
sells, assigns and transfers unto

	 	 	 
	Name
	 	 
	 

	 	 
	 

	 	(Please typewrite or print in block letters)
	Address
	 	 
	 

	 	 

the right to purchase Common Stock represented by this Warrant to the extent of shares as to which
such right is exercisable and does hereby irrevocably constitute and appoint Attorney, to transfer
the same on the books of the Company with full power of substitution in the premises.

Date                     , 20___

	 	 	 	 	 
	Signature
	 	 	 	 
	 

	 	 

	 	 

 

 

 

Exhibit E

Form of Second Contingent Warrant

THIS WARRANT MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT AS SPECIFIED HEREIN.
NEITHER THE RIGHTS REPRESENTED BY THIS WARRANT NOR THE SHARES ISSUABLE UPON THE EXERCISE HEREOF
HAVE BEEN REGISTERED FOR OFFER OR SALE UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE
STATE LAW. SUCH RIGHTS AND SHARES MAY NOT BE SOLD OR OFFERED FOR SALE IN WHOLE OR IN PART EXCEPT
IN ACCORDANCE WITH THE PROVISIONS HEREOF.

			
	 	 	 
	Warrant No.:
	 	Issuance Date:                     , 2011
	Number of Warrant Shares:
	 	Warrant Exercise Price: USD$.01 per share

MiMedx Group, Inc.

Warrant to Purchase Common Stock

MiMedx Group, Inc., a Florida corporation (the “Company”), hereby certifies that
                                        , the registered holder hereof, or its permitted assigns (“Holder”), is
entitled, subject to the terms set forth below, including without limitation Section 3 hereof, to
purchase from the Company upon surrender of this warrant (the “Warrant”), at any time or times on
or after, and subject to the occurrence of, the Effective Date hereof but not after 5:00 P.M.
(Eastern Standard Time) on the Expiration Date (as defined herein), all or any part of the Warrant
Shares (as defined herein), of fully paid and nonassessable Common Stock (as defined herein) of the
Company by payment of the applicable aggregate Warrant Exercise Price (as defined herein) in lawful
money of the United States.

SECTION 1. Definitions. The following words and terms as used in this Warrant shall
have the following meanings:

(a) “2012 Gross Revenues” means the Company’s total revenue from all sources on a
consolidated basis, for the year ending December 31, 2012, as reflected in its audited
financial statements.

(b) “Assignment Form” shall have the meaning given to such term in Section 14(h) of
this Warrant.

(c) “Change in Control” means the date the shareholders of the Company approve a
definitive agreement (A) to merge or consolidate the Company with or into another
corporation or other business entity (for these purposes, each, a “corporation”), in which
the holders of the Company’s Common Stock immediately prior to the merger or consolidation
have voting control over less than fifty percent (50%) of the voting securities of the
surviving corporation outstanding immediately after such merger or consolidation, or (B) to
sell or otherwise dispose of all or substantially all the assets of the Company.

(d) “Common Stock” means (i) the Company’s common stock and (ii) any capital stock
resulting from a reclassification of such “Common Stock.”

 

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(e) “Company” means MiMedx Group, Inc., a Florida corporation.

(f) “Convertible Securities” means any securities issued by the Company which are
convertible into or exchangeable for, directly or indirectly, shares of Common Stock.

(g) “Effective Date” means the first to occur of the following: (i) the first business
day following the Second Measurement Date if and only if the Company’s 2012 Gross Revenues
are less than $31,150,000, and (ii) the occurrence of a Change in Control after the First
Measurement Date and prior to the Second Measurement Date, other than a Qualified Change in
Control.

(h) “Exercise Date” means any date after the Effective Date on which notice of exercise
hereof is given by Holder.

(i) “Expiration Date” means the date which is five (5) years after the Issuance Date as
shown on the face hereof; provided however that this Warrant may terminate earlier as
provided in Section 3 hereof.

(j) “First Measurement Date” means the date on which the Company files with the SEC its
audited financial statements for the fiscal year ending December 31, 2011.

(k) “Holder” shall have that meaning given to such term in the introductory paragraph
of this Warrant.

(l) “Market Price means the fair market value of one share of
Common Stock determined as follows: (i) where there exists a public market for the
Company’s Common Stock at the time of such exercise, the fair market value per share shall
be the closing trading price of the Common Stock quoted in the Over-The-Counter Market
Summary or the last reported sale price of the Common Stock or the closing price quoted on
the NASDAQ National Market System or on any exchange on which the Common Stock is listed,
whichever is applicable, for the five (5) trading days (or such fewer number of trading days
as the Company’s Common Stock may have been publicly traded) ending on the trading day prior
to the date of determination of fair market value and (ii) if at any time the Common Stock
is not listed on any domestic exchange or quoted in the NASDAQ System or the domestic
over-the-counter market, the higher of (A) the book value thereof, as determined by any firm
of independent public accountants of recognized standing selected by the Board of Directors,
as at the last day as of which such determination shall have been made, or (B) the fair
value thereof determined in good faith by the Board of Directors as of the date which is
within fifteen (15) days of the date as of which the determination is to be made (in
determining the fair value thereof, the Board of Directors shall consider stock market
valuations and price to earnings ratios of comparable companies in similar industries).

(m) “Qualified Change in Control” means any Change in Control which occurs after the
First Measurement Date and prior to the Second Measurement
Date and in which the holders of the Company’s Common Stock will receive consideration
in any form, having a value of $1.75 or more, per share of Common Stock.

 

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(n) “SEC” means the Securities and Exchange Commission.

(o) “Second Measurement Date” means the date on which the Company files with the SEC
its audited financial statements for the fiscal year ending December 31, 2012.

(p) “Securities Act” means the Securities Act of 1933, as amended.

(q) “Subscription Notice” shall have that meaning given to such term in Section 2(a) of
this Warrant.

(r) “Warrant” shall have that meaning given to such term in the introductory paragraph
of this document.

(s) “Warrant Exercise Price” shall initially be the amount per share shown above on the
face hereof.

(t) “Warrant Shares” means the shares of Common Stock subject to this Warrant and shown
above on the face hereof.

(u) Other Definitional Provisions.

(i) Except as otherwise specified herein, all references herein (A) to any person other
than the Company, shall be deemed to include such person’s successors and permitted assigns,
(B) to the Company shall be deemed to include the Company’s successors and (C) to any
applicable law defined or referred to herein, shall be deemed references to such applicable
law as the same may have been or may be amended or supplemented from time to time.

(ii) When used in this Warrant, the words “herein,” “hereof,” and “hereunder,” and
words of similar import, shall refer to this Warrant as a whole and not to any provision of
this Warrant, and the words “Section,” “Schedule,” and “Exhibit” shall refer to Sections of,
and Schedules and Exhibits to, this Warrant unless otherwise specified.

(iii) Whenever the context so requires the neuter gender includes the masculine or
feminine, and the singular number includes the plural, and vice versa.

 

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SECTION 2. Exercise of Warrant.

(a) Subject to the terms and conditions hereof (including, without limitation, the
termination provisions set forth herein), this Warrant may be exercised in whole or in part,
at any time during normal business hours on or after the Effective Date and prior to 5:00
p.m. (Eastern Standard Time) on the Expiration Date. The rights represented by this Warrant
may be exercised by the holder hereof then registered on the
books of the Company, in whole or from time to time in part (except that this Warrant
shall not be exercisable as to a fractional share), by: (i) delivery of a written notice, in
the form of the subscription notice attached as Exhibit A hereto (the “Subscription
Notice”), of such holder’s election to exercise this Warrant, which notice shall specify the
number of Warrant Shares to be purchased; (ii) payment to the Company of an amount equal to
the Warrant Exercise Price multiplied by the number of Warrant Shares as to which the
Warrant is being exercised (plus any applicable issue or transfer taxes) in cash, by wire
transfer or by certified or official bank check; and (iii) the surrender of this Warrant,
properly endorsed, at the principal office of the Company in Marietta, Georgia (or at such
other agency or office of the Company as the Company may designate by notice to the Holder);
provided, that if such Warrant Shares are to be issued in any name other than that of the
Holder, such issuance shall be deemed a transfer and the provisions of Section 14 shall be
applicable. In the event of any exercise of the rights represented by this Warrant, a
certificate or certificates for the Warrant Shares so purchased, registered in the name of,
or as directed by, the Holder, shall be delivered to, or as directed by the Holder within a
reasonable time after the date on which such rights shall have been so exercised. In the
event that this Warrant becomes exercisable due to the occurrence of a Change in Control,
the Company shall give the Holder written notice of the occurrence thereof at least five
business days prior to the consummation of the transaction which was approved by the
shareholders of the Company.

(b) Unless the rights represented by this Warrant shall have expired or have been fully
exercised, the Company shall issue, within such fifteen (15) day period, a new Warrant
identical in all respects to the Warrant exercised except (x) such new Warrant shall
represent rights to purchase the number of Warrant Shares purchasable immediately prior to
such exercise under the warrant exercised, less the number of Warrant Shares with respect to
which such original Warrant was exercised, and (y) the Warrant Exercise Price thereof shall
be, subject to further adjustment as provided in this Warrant, the Warrant Exercise Price of
the Warrant exercised. The person in whose name any certificate for Warrant Shares is
issued upon exercise of this Warrant shall for all purposes be deemed to have become the
holder of record of such Warrant Shares immediately prior to the close of business on the
date on which the Warrant was surrendered and payment of the amount due in respect of such
exercise and any applicable taxes was made, irrespective of the date of delivery of such
share certificate, except that, if the date of such surrender and payment is a date when the
stock transfer books of the Company are properly closed, such person shall be deemed to have
become the holder of such Warrant Shares at the opening of business on the next succeeding
date on which the stock transfer books are open.

SECTION 3. Termination of the Warrant. This Warrant shall automatically
terminate without exercise and shall be null and void on the earliest to occur of: (i) the
Second Measurement Date, if the 2012 Gross Revenues of the Company equals or exceeds
$31,150,000, or (ii) the occurrence of ten consecutive trading days after the First
Measurement Date and prior to the Second Measurement Date, in which the closing trading
price of the Common Stock is at least $1.75 per share, or (iii) upon the occurrence of a
Qualified Change In Control.

 

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SECTION 4. Covenants as to Common Stock.

(a) The Company covenants and agrees that all Warrant Shares that may be issued upon
the exercise of the rights represented by this Warrant will, upon issuance, be validly
issued, fully paid and nonassessable. The Company further covenants and agrees that during
the period within which the rights represented by this Warrant may be exercised, the Company
will at all times have authorized and reserved a sufficient number of shares of Common Stock
to provide for the exercise of the rights then represented by this Warrant and that the par
value of said shares will at all times be less than or equal to the applicable Warrant
Exercise Price.

(b) If any shares of Common Stock reserved or to be reserved to provide for the
exercise of the rights then represented by this Warrant require registration with or
approval of any governmental authority under any federal or state law before such shares may
be validly issued to the Holder, then the Company covenants that it will in good faith and
as expeditiously as possible endeavor to secure such registration or approval, as the case
may be.

SECTION 5. Adjustment of Warrant Exercise Price upon Stock Splits, Dividends,
Distributions and Combinations; and Adjustment of Number of Shares.

(a) In case the Company shall at any time split or subdivide its outstanding shares of
Common Stock into a greater number of shares or issue a stock dividend (including any
distribution of stock without consideration) or make a distribution with respect to
outstanding shares of Common Stock or Convertible Securities payable in Common Stock or in
Convertible Securities, the Warrant Exercise Price in effect immediately prior to such
subdivision or stock dividend or distribution shall be proportionately reduced and
conversely, in case the outstanding shares of Common Stock of the Company shall be combined
into a smaller number of shares, the Warrant Exercise Price in effect immediately prior to
such combination shall be proportionately increased, in each case, by multiplying the then
effective Warrant Exercise Price by a fraction, the numerator of which shall be the total
number of shares of Common Stock outstanding immediately prior to such subdivision, stock
dividend, distribution or combination (determined on a fully diluted basis), and the
denominator of which shall be the total number of shares of Common Stock, immediately after
such subdivision, stock dividend, distribution or combination (determined on a fully diluted
basis), and the product so obtained shall thereafter be the Warrant Exercise Price. For
purposes of this Warrant, “on a fully diluted basis” means that all issued and outstanding
capital stock of the Company, including all Convertible Securities, and all outstanding
options and warrants, whether or not vested, shall be taken into account.

(b) Upon each adjustment of the Warrant Exercise Price as provided above in this
Section 5, the Holder shall thereafter be entitled to purchase, at the Warrant Exercise
Price resulting from such adjustment, the number of shares (calculated to the nearest tenth
of a share) obtained by multiplying the Warrant Exercise Price in effect immediately prior
to such adjustment by the number of shares purchasable pursuant
hereto immediately prior to such adjustment and dividing the product thereof by the
Warrant Exercise Price immediately after such adjustment.

 

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SECTION 6. Reorganization, Reclassification, Etc. Subject to the provisions of
Section 3 hereof, in case of any capital reorganization, or of any reclassification of the
capital stock of the Company (other than a change in par value or from par value to no par
value or from no par value to par value or as a result of a split-up or combination) or in
case of the consolidation or merger of the Company with or into any other corporation (other
than a consolidation or merger in which the Company is the continuing corporation and which
does not result in the Common Stock being changed into or exchanged for stock or other
securities or property of any other person), or of the sale of the properties and assets of
the Company as, or substantially as, an entirety to any other corporation, this Warrant
shall, after such capital reorganization, reclassification of capital stock, consolidation,
merger or sale, entitle the Holder hereof to purchase the kind and number of shares of stock
or other securities or property of the Company or of the corporation resulting from such
consolidation or surviving such merger or to which such sale shall be made, as the case may
be, to which the holder hereof would have been entitled if he had held the Common Stock
issuable upon the exercise hereof immediately prior to such capital reorganization,
reclassification of capital stock, consolidation, merger or sale, and, in any such case,
appropriate provision shall be made with respect to the rights and interests of the holder
of this Warrant to the end that the provisions thereof (including without limitation
provisions for adjustment of the Warrant Exercise Price and of the number of shares
purchasable upon the exercise of this Warrant) shall thereafter be applicable, as nearly as
may be in relation to any shares of stock, securities, or assets thereafter deliverable upon
the exercise of the rights represented hereby. The Company shall not effect any such
consolidation, merger or sale, unless prior to or simultaneously with the consummation
thereof the successor corporation (if other than the Company) resulting from such
consolidation or merger of the corporation purchasing such assets shall assume by written
instrument executed and mailed or delivered to the registered holder hereof at the address
of such holder appearing on the books of the Company, the obligation to deliver to such
holder such shares of stock, securities or assets as, in accordance with the foregoing
provisions, such holder may be entitled to purchase.

SECTION 7. Notice of Adjustment of Warrant Exercise Price. Upon any adjustment
of the Warrant Exercise Price, then the Company shall give notice thereof to the Holder of
this Warrant, which notice shall state the Warrant Exercise Price in effect after such
adjustment and the increase, or decrease, if any, in the number of Warrant Shares
purchasable at the Warrant Exercise Price upon the exercise of this Warrant, setting forth
in reasonable detail the method of calculation and the facts upon which such calculation is
based.

SECTION 8. Computation of Adjustments. Upon each computation of an adjustment
in the Warrant Exercise Price and the number of shares which may be subscribed for and
purchased upon exercise of this Warrant, the Warrant Exercise Price shall be computed to the
nearest cent (i.e. fraction of .5 of a cent, or greater, shall be rounded to the next
highest cent) and the number of shares which may be subscribed for and purchased upon
exercise of this Warrant shall be calculated to the nearest whole
share (i.e. fractions of less than one half of a share shall be disregarded and
fractions of one half of a share, or greater, shall be treated as being a whole share). No
such adjustment shall be made however, if the change in the Warrant Exercise Price would be
less than $.001 per share, but any such lesser adjustment shall be made (i) at the time and
together with the next subsequent adjustment which, together with any adjustments carried
forward, shall amount to $.001 per share or more, or (ii) if earlier, upon the third
anniversary of the event for which such adjustment is required.

 

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SECTION 9. Net Issue Exercise. Notwithstanding any provisions herein to the
contrary, if the Market Price of one share of Common Stock is greater than the Warrant
Exercise Price at the date of exercise of the Warrant, in lieu of exercising the Warrant by
payment of cash, the Holder may elect to receive shares equal to the value (as determined
below) of the Warrant (or portion thereof being canceled) by surrender of the Warrant at the
principal office of the Company together with the duly executed Notice of Exercise, in which
event the Company shall issue to the Holder a number of shares of the Common Stock computed
using the following formula:

	 	 	 
	X =

	 	Y(A - B)
A

	 	 	 
	 	 	WHERE X = the number of shares of Common Stock to be issued to the Holder;

	 
	 	 	Y = the number of shares of the Common Stock purchasable under the Warrant or, if
only a portion of the Warrant is being exercised, the number of shares underlying
the Warrant to the extent exercised (at the date of such exercise);

	 
	 	 	A = the Market Price of one share of Common Stock (at the date of such calculation);
and

	 
	 	 	B = Warrant Exercise Price (at the date of such calculation).

SECTION 10. No Change in Warrant Terms on Adjustment. Irrespective of any
adjustment in the Warrant Exercise Price or the number of shares of Common Stock issuable
upon exercise hereof, this Warrant, whether theretofore or thereafter issued or reissued,
may continue to express the same price and number of shares as are stated herein and the
Warrant Exercise Price and such number of shares specified herein shall be deemed to have
been so adjusted.

SECTION 11. Taxes. The Company shall not be required to pay any tax or taxes
attributable to the initial issuance of the Warrant Shares or any transfer involved in the
issue or delivery of any certificates for Warrant Shares in a name other than that of the
registered holder hereof or upon any transfer of this Warrant.

SECTION 12. Warrant Holder Not Deemed a Shareholder. No holder, as such, of
this Warrant shall be entitled to vote or receive dividends or be deemed the holder of
 shares of the Company for any purpose, nor shall anything contained in this Warrant be
construed to confer upon the holder hereof, as such, any of the rights of a shareholder of
the Company or any right to vote, give or withhold consent to any corporate action (whether
any reorganization, issue of stock, reclassification of stock, consolidation, merger,
conveyance or otherwise), receive notice of meetings, receive dividends or subscription
rights, or otherwise, prior to the issuance of record to the holder of this Warrant of the
Warrant Shares which he is then entitled to receive upon the due exercise of this Warrant.

 

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SECTION 13. No Limitation on Corporate Action. No provisions of this Warrant
and no right or option granted or conferred hereunder shall in any way limit, affect or
abridge the exercise by the Company of any of its corporate rights or powers to
recapitalize, amend its Articles of Incorporation, reorganize, consolidate or merge with or
into another corporation, or to transfer all or any part of its property or assets, or the
exercise of any other of its corporate rights and powers.

SECTION 14. Transfer; Opinions of Counsel; Restrictive Legends. To the extent
applicable, each certificate or other document evidencing any of the Warrant Shares shall be
endorsed with the legends set forth below, and Holder covenants that, except to the extent
such restrictions are waived by the Company, Holder shall not transfer the Warrant Shares
without complying with the restrictions on transfer described in the legends endorsed
thereon;

(a) The following legend under the Securities Act:

“THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED,
PLEDGED, OR HYPOTHECATED ABSENT AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT
UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL, REASONABLY SATISFACTORY TO
THE COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED.”

(b) If required by the authorities of any state in connection with the issuance or sale
of the Warrant Shares, the legend required by such state authority.

(c) The Company shall not be required (i) to transfer on its books either this Warrant
or any Warrant Shares which shall have been transferred in violation of any of the
provisions set forth in this Section 14, or (ii) to treat as owner of such Warrant Shares or
to accord the right to vote as such owner or to pay dividends to any transferee to whom such
Warrant Shares shall have been so transferred.

(d) Any legend endorsed on a certificate pursuant to subsection (a) or (b) of this
Section 14 shall be removed (i) if the Warrant Shares represented by such certificate shall
have been effectively registered under the Securities Act or otherwise lawfully sold in a
public transaction, or (ii) if the holder of such Warrant Shares shall have provided the
Company with an opinion from counsel, in form and substance reasonably acceptable to the
Company and from attorneys reasonably acceptable to the Company, stating that a public sale,
transfer or assignment of the Warrant or the Warrant Shares may be made without
registration.

(e) Any legend endorsed on a certificate pursuant to subsection (b) of this Section 14
shall be removed if the Company receives an order of the appropriate state authority
authorizing such removal or if the holder of the Warrant or the Warrant Shares provides the
Company with an opinion of counsel, in form and substance
reasonably acceptable to the Company and from attorneys reasonably acceptable to the
Company, stating that such state legend may be removed.

 

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(f) Without in any way limiting the representations set forth above, Holder further
agrees not to make any disposition of all or any portion of the Warrant at any time other
than to an affiliate of the Holder; provided, however, that such affiliate transferee agrees
in writing to be subject to the terms of this Section 14. In addition, the Holder agrees
not to make any disposition of all or any portion of the Warrant Shares unless:

(i) There is then in effect a registration statement under the Securities Act covering
such proposed disposition and such disposition is made in accordance with such registration
statement; or

(ii) Holder shall have notified the Company of the proposed disposition and shall have
furnished the Company with a detailed statement of the circumstances surrounding the
proposed disposition, and, if requested by the Company, (A) Holder shall have furnished the
Company with an opinion of counsel, reasonably satisfactory to the Company, that such
disposition will not require registration of the Warrant or any Warrant Shares under the
Securities Act and (B) the transferee shall have furnished to the Company its agreement to
abide by the restrictions on transfer set forth herein as if it were a purchaser hereunder.

(g) Notwithstanding the other provisions of this Section 14, no such registration
statement or opinion of counsel shall be required for any transfer by a Holder, (i) if it is
a partnership or a corporation, to a partner or pro rata to its equity holder(s) of such
Holder (or a third party duly authorized to act on behalf of such Holder or its partners or
equity holders), or (ii) if he or she is an individual, to members of such individual’s
family for estate planning purposes; provided, however, that the transferee agrees in
writing to be subject to the terms of this Section 14.

(h) Upon delivery of the foregoing opinion of counsel (with respect to a transfer of
the Warrant Shares) and the surrender of this Warrant to the Company at its principal
office, together with (i) the assignment form annexed hereto as Exhibit B (the
“Assignment Form”) duly executed and (ii) funds sufficient to pay any transfer tax, the
Company shall, if it determines such transfer is permitted by the terms of this Warrant,
without additional charge, execute and deliver a new Warrant in the name of the assignee
named in such instrument of assignment and this Warrant shall promptly be cancelled.

SECTION 15. Lost, Stolen, Mutilated or Destroyed Warrant. If this Warrant is
lost, stolen, mutilated or destroyed, the Company shall, on such terms as to indemnity or
otherwise as it may in its discretion impose (except in the event of loss, theft, mutilation
or destruction while this Warrant is in possession of the Company’s Escrow Agent, in which
events the Company shall be solely responsible) (which shall, in the case of a mutilated
Warrant, include the surrender thereof), issue a new Warrant of like denomination and tenor
as the Warrant so lost, stolen, mutilated or destroyed. Any such new Warrant shall
constitute an original contractual obligation of the Company, whether
or not the allegedly lost, stolen, mutilated or destroyed Warrant shall be at any time
enforceable by anyone.

 

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SECTION 16. Representation of Holder. The Holder, by the acceptance hereof,
represents that it is acquiring this Warrant, and the Warrant Shares, for its own account,
for investment purposes, and not with a present view either to sell, distribute, or
transfer, or to offer for sale, distribution, or transfer, any of the Warrant or the Warrant
Shares, or any other securities issuable upon the exercise thereof.

SECTION 17. Restricted Securities. The Holder understands that the Warrant and
the Warrant Shares issuable upon exercise of the Warrant, will not be registered at the time
of their issuance under the Securities Act for the reason that the sale provided for in this
Warrant is exempt pursuant to Section 4(2) of the Securities Act based on the
representations of the Holder set forth herein. The Warrant Holder represents that it is
experienced in evaluating companies such as the Company, has such knowledge and experience
in financial and business matters as to be capable of evaluating the merits and risks of its
investment and has the ability to suffer the total loss of the investment. The Holder
further represents that it has had the opportunity to ask questions of and receive answers
from the Company concerning the terms and conditions of the Warrant, the business of the
Company, and to obtain additional information to such Holder’s satisfaction. The Holder
represents that it is an “Accredited Investor” within the meaning of Rule 501 of Regulation
D under the Securities Act, as presently in effect.

SECTION 18. Notices. All Notices, requests and other communications that the
Holder or the Company is required or elects to give hereunder shall be in writing and shall
be deemed to have been given (a) upon personal delivery thereof, including by appropriate
courier service, five (5) days after delivery to the courier or, if earlier, upon delivery
against a signed receipt therefore or (b) upon transmission by facsimile or telecopier,
which transmission is confirmed, in either case addressed to the party to be notified at the
address set forth below or at such other address as such party shall have notified the other
parties hereto, by notice given in conformity with this Section 18.

If to the Company:

MiMedx Group, Inc.

811 Livingston Ct. SE, Suite B

Marietta, GA 30067

Attention: General Counsel

Facsimile: (678) 384-6741

	 	 	 	 	 	 	 
	 	 	If to the Holder:	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Facsimile:
	 	 

	 	 

SECTION 19. Miscellaneous. This Warrant and any term hereof may be changed,
waived, discharged, or terminated only by an instrument in writing signed by the party or
holder hereof against which enforcement of such change, waiver, discharge
or termination is sought. The headings in this Warrant are for purposes of reference
only and shall not limit or otherwise affect the meaning hereof.

 

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SECTION 20. Date. The Issuance Date of this Warrant is the date shown on the
first page above on the face hereof. This Warrant, in all events, shall be wholly void and
of no effect after 5:00 p.m. (Eastern Time) on the Expiration Date, except that
notwithstanding any other provisions hereof, the provisions of Section 14 shall continue in
full force and effect after such date as to any Warrant Shares or other securities issued
upon the exercise of this Warrant.

SECTION 21. Severability. If any provision of this Warrant is held by a court
of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions
shall nevertheless continue in full force and effect without being impaired or invalidated
in any way and shall be construed in accordance with the purposes and tenor and effect of
this Warrant.

SECTION 22. Governing Law. This Warrant shall be governed by and construed and
enforced in accordance with the laws of the State of Georgia, without reference to its
conflicts of law principles.

[Signatures Contained on the Following Page]

 

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IN WITNESS WHEREOF, the Company has executed this Warrant as of the Issuance Date.

	 	 	 	 	 
	 	MiMedx Group, Inc.

 	 
	 	By:  	 	 
	 	 	Name:  	Michael J. Senken 	 
	 	 	Title:  	Chief Financial Officer 	 

Acknowledged and Agreed:

HOLDER:

	 	 	 
	 

Name:

	 	 
	Title (if applicable):
	 	 

 

 

 

EXHIBIT A TO

WARRANT

SUBSCRIPTION NOTICE

TO BE EXECUTED BY THE REGISTERED HOLDER IF SUCH REGISTERED HOLDER

DESIRES TO EXERCISE THIS WARRANT

The undersigned hereby exercises the right to purchase Warrant Shares covered by this Warrant
according to the conditions thereof and herewith [makes payment of $                    , the aggregate
Warrant Exercise Price of such Warrant Shares in full] [tenders solely this Warrant, or applicable
portion hereof, in full satisfaction of the Warrant Exercise Price upon the terms and conditions
set forth herein.]

INSTRUCTIONS FOR REGISTRATION OF STOCK

	 	 	 	 	 
	Name 
	 	 	 	 
	 	 
	 

	 	(Please typewrite or print in block letters)
	Address
	 	 	 
	 	 	 

	 	 	 	 	 
	 	Holder Name:

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 	
[Net] Number of Warrant Shares Being

Purchased                                         
	 
	Dated:                                        , 20___ 

 

 

 

EXHIBIT B TO

WARRANT

ASSIGNMENT FORM

	 	 	 	 	 
	FOR VALUE RECEIVED,

	 	 	 	hereby
	 

	 	 

	 	 

			
	sells, assigns and transfers unto
	Name 
	 	 
	 
	 
	 

	 	(Please typewrite or print in block letters)
	Address
	 
	 
	 	 

the right to purchase Common Stock represented by this Warrant to the extent of shares as to which
such right is exercisable and does hereby irrevocably constitute and appoint Attorney, to transfer
the same on the books of the Company with full power of substitution in the premises.

Date                                           , 20___

	 	 	 	 	 
	Signature
	 	 	 	 
	 

	 	 

	 	 

 

 

 

Exhibit F

Form of Registration Rights Agreement

REGISTRATION RIGHTS AGREEMENT

This Registration Rights Agreement (the “Agreement”) made effective as of March 31,
2011 is entered into by and among MiMedx Group, Inc., a Florida corporation (the
“Company”), and Parker H. Petit (“Lender”).

WHEREAS, the Company has issued to Lender that certain 5% Convertible Senior Secured
Promissory Note of even date herewith (the “Note”), in connection with which the Company
wishes to grant certain registration rights to the Lender;

NOW, THEREFORE, in consideration of the covenants and agreements set forth herein and for
other good and valuable consideration, the receipt and sufficiency of which are hereby mutually
acknowledged, the parties hereto covenant and agree as follows:

Section 1. Certain Definitions. As used in this Agreement, the following terms shall
have the following respective meanings:

“Affiliate” means any Person that directly or indirectly is controlled by or is under
common control with the Lender.

“Articles of Incorporation” means the Company’s Articles of Incorporation in effect on
the date hereof and as amended, modified or restated from time to time.

“Blue Sky Application” has the meaning ascribed to such term in Section 4(a) hereof.

“Commission” means the Securities and Exchange Commission or any other federal agency
at the time administering the Securities Act and the Exchange Act.

“Common Stock” means the common stock of the Company and any other securities into
which or for which any of the common stock of the Company may be converted or exchanged pursuant to
a stock split, stock dividend, plan of recapitalization, reorganization, merger, consolidation,
sale of assets or other similar transaction.

“Exchange Act” means the Securities Exchange Act of 1934, or any similar or successor
federal statute, and the rules and regulations of the Commission thereunder, all as the same shall
be in effect from time to time.

“Forms S-1 and S-3” means Forms S-1 and S-3, as the case may be, promulgated under the
Securities Act and as in effect on the date hereof or any similar or successor forms promulgated
under the Securities Act or adopted by the Commission.

“Offering” has the meaning ascribed to such term in the Preamble hereto.

“Person” means an individual, corporation, limited liability company, partnership,
joint venture, trust, or unincorporated organization, or a government or any agency or political
subdivision thereof.

“Registrable Shares” means the Common Stock issuable to the Lender upon (a) a
Voluntary Conversion (as defined in the Note) or (b) the exercise of any warrant issued in
connection with the Note.

“Registration Expenses” has the meaning ascribed to such term in Section 7 hereof.

 

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“Rule 144” means Rule 144 promulgated under the Securities Act or any similar or
successor rule, as the same shall be in effect from time to time.

“Rule 145” means Rule 145 promulgated under the Securities Act or any similar or
successor rule, as the same shall be in effect from time to time.

“Securities Act” means the Securities Act of 1933, or any similar or successor federal
statute, and the rules and regulations of the Commission thereunder, all as the same shall be in
effect from time to time.

“Selling Expenses” has the meaning ascribed to such term in Section 7 hereof.

Section 2. “Piggy-Back” Registrations.

(a) If the Company at any time after, and no earlier than, the occurrence of a Voluntary
Conversion (as defined in the Note) at a time when its equity securities are registered under
Section 12 of the Exchange Act, proposes to register under the Securities Act any of its
securities, whether for its own account or for the account of other security holders or both
(except with respect to registration statements on Forms S-4, S-8 or any successor to such forms or
another form not available for registering the Registrable Shares for sale to the public or any
registration statement including only securities issued pursuant to a dividend reinvestment plan),
each such time it will promptly give written notice to all holders of Registrable Shares of its
intention so to do. Upon the written request of any such holder, received by the Company within 20
days after the giving of any such notice by the Company, to register any or all of its Registrable
Shares, the Company will use its commercially reasonable efforts to cause the Registrable Shares as
to which registration shall have been so requested to be included in the securities to be covered
by the registration statement proposed to be filed by the Company, all to the extent requisite to
permit the sale or other disposition by the holder (in accordance with its written request) of such
Registrable Shares so registered. The Company shall be obligated to include in such registration
statement only such limited portion of Registrable Shares with respect to which such holder has
requested inclusion hereunder.

(b) If the registration of which the Company gives notice as provided above is for a
registered public offering involving an underwriting, the Company shall so advise the holders of
Registrable Shares as a part of the written notice given pursuant to this Section 2. In such event
the right of any holder of Registrable Shares to registration pursuant to this Section 2 shall be
conditioned upon such holder’s participation in such underwriting to the extent provided herein.
All holders of Registrable Shares proposing to distribute their securities through such
underwriting shall (together with the shares of Common Stock to be registered by the Company and
shares of Common Stock held by Persons who by virtue of agreements with the Company are entitled to
include shares in such registration) enter into an underwriting agreement in customary form with
the underwriter or underwriters selected for underwriting by the Company. If any holder of
Registrable Shares disapproves of the terms of any such underwriting, that holder may elect to
withdraw therefrom by timely written notice to the Company and the underwriter. Any Registrable
Shares or other securities excluded or withdrawn from such underwriting shall be withdrawn from
such registration.

(c) Notwithstanding any other provision of this Section 2, if the underwriter determines that
marketing factors require a limitation on the number of shares to be underwritten or if the
Commission imposes such a limitation, such limitation will be imposed pro rata with respect to all
securities whose holders have a contractual, incidental (“Piggy-Back”) right to include
such securities in the registration statement and as to which inclusion has been requested pursuant
to such right, provided, however, that no such reduction shall reduce the number of securities held
by holders of Registrable Shares proposing to distribute their securities through such underwriting
if any securities are to be included in such underwriting for the account of any Person other than
the Company or holders of Registrable Shares other than a holder exercising a demand or required
registration right.

(d) Notwithstanding the foregoing provisions, the Company may withdraw any registration
statement referred to in this Section 2 without thereby incurring any liability to the holders of
Registrable Shares.

 

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Section 3. Expiration of Obligations. The obligations of the Company to register
Registrable Shares pursuant to Section 2 of this Agreement shall expire on the first to occur of
(i) the date when the holder of such shares shall be able to sell its Registrable Shares under Rule
144, or (ii) when no Registrable Shares are outstanding.

Section 4. Indemnification; Procedures; Contribution.

(a) In the event that the Company registers any of the Registrable Shares under the Securities
Act in accordance with this Agreement, the Company will, to the extent permitted by law, indemnify
and hold harmless each holder and each underwriter of the Registrable Shares (including their
officers, directors, affiliates and partners) so registered (including any broker or dealer through
whom such shares may be sold) and each Person, if any, who controls such holder or any such
underwriter within the meaning of Section 15 of the Securities Act from and against any and all
losses, claims, damages, expenses or liabilities, joint or several, to which they or any of them
become subject under the Securities Act or under any other statute or at common law or otherwise,
and, except as hereinafter provided, will reimburse each such holder, each such underwriter and
each such controlling Person, if any, for any legal or other expenses reasonably incurred by them
or any of them in connection with investigating or defending any actions whether or not resulting
in any liability, insofar as such losses, claims, damages, expenses, liabilities or actions arise
out of or are based upon (i) any untrue statement or alleged untrue statement of any material fact
contained in the registration statement, any filing with any state or federal securities commission
or agency or any prospectus, offering circular or other document created or approved by the Company
incident to such registration (including any related notification, registration statement under
which such Registrable Shares were registered under the Securities Act pursuant to Section 2 of
this Agreement, any preliminary prospectus or final prospectus contained therein, or any amendment
or supplement thereof), (ii) any blue sky application or other document executed by the Company
specifically for that purpose or based upon written information furnished by the Company filed in
any state or other jurisdiction in order to qualify any or all of the Registrable Shares under the
securities laws thereof (any such application, document or information herein called a “Blue
Sky Application”), (iii) any omission or alleged omission to state in any such registration
statement, prospectus, amendment or supplement or in any Blue Sky Application executed or filed by
the Company, a material fact required to be stated therein or necessary to make the statements
therein not misleading, (iv) any violation by the Company or its agents of the Securities Act or
any rule or regulation promulgated under the Securities Act applicable to the Company or its agents
and relating to action or inaction required of the Company in connection with such registration, or
(v) any failure to register or qualify the Registrable Shares in any state where the Company or its
agents has affirmatively undertaken or agreed in writing that the Company (the undertaking of any
underwriter chosen by the Company being attributed to the Company) will undertake such registration
or qualification (provided that in such instance the Company shall not be so liable if it has used
its commercially reasonable efforts to so register or qualify the Registrable Shares) and will
reimburse each such holder, and such officer, director and partner, each such underwriter and each
such controlling Person for any legal or other expenses reasonably incurred by them in connection
with investigating or defending any such loss, claim, damage, liability or action, promptly after
being so incurred, provided, however, that the Company will not be liable in any such case (i) if
and to the extent that any such loss, claim, damage or liability arises out of or is based upon an
untrue statement or alleged untrue statement or omission or alleged omission so made in conformity
with written information furnished by any holder, any underwriter or any controlling Person in
writing specifically for use in such registration statement or prospectus, or (ii) in the case of a
sale directly by such holder of Registrable Shares (including a sale of such Registrable Shares
through any underwriter retained by such holder of Registrable Shares to engage in a distribution
solely on behalf of such holder of Registrable Shares), such untrue statement or alleged untrue
statement or omission or alleged omission was contained in a preliminary prospectus and corrected
in a final or amended prospectus, and such holder of Registrable Shares failed to deliver a copy of
the final or amended prospectus at or prior to the confirmation of the sale of Registrable Shares
to the Person asserting any such loss, claim, damage or liability in any case where such delivery
is required by the Securities Act or any state securities laws.

 

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(b) In the event of a registration of any of the Registrable Shares under the Securities Act
pursuant to Section 2 of this Agreement, each seller of such Registrable Shares thereunder,
severally and not jointly, will indemnify and hold harmless the Company, each Person, if any, who
controls the Company within the meaning of the Securities Act, each officer of the Company who
signs the registration statement, each director of the Company, each other seller of Registrable
Shares, each underwriter and each Person who controls any underwriter within the meaning of the
Securities Act, against all losses, claims, damages or liabilities, joint or several, to which the
Company or such officer, director, other seller, underwriter or controlling Person may become
subject under the Securities Act or otherwise, solely 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 any material fact contained in any prospectus offering circular or
other document incident to such registration (including any related notification, registration
statement under which such Registrable Shares were registered under the Securities Act pursuant to
Section 2, any preliminary prospectus or final prospectus contained therein, or any amendment or
supplement thereof), or any Blue Sky Application or arise out of or are based upon the omission or
alleged omission to state therein a material fact required to be stated therein or necessary to
make the statements therein not misleading, and will reimburse the Company and each such officer,
director, other seller, underwriter and controlling Person for any legal or other expenses
reasonably incurred by them in connection with investigating or defending any such loss, claim,
damage, liability or action, promptly after being so incurred, provided, however, that such seller
will be liable hereunder in any such case if and only to the extent that any such loss, claim,
damage or liability arises out of or is based upon an untrue statement or alleged untrue statement
or omission or alleged omission made in reliance upon and in conformity with information pertaining
to such seller, as such, furnished in writing to the Company by such seller specifically for use in
such registration statement or prospectus; and provided, further, that the liability of each seller
hereunder shall be limited to the proportion of any such loss, claim, damage, liability or expense
which is equal to the proportion that the public offering price of all securities sold by such
seller under such registration statement bears to the total public offering price of all securities
sold thereunder, but not in any event to exceed the net proceeds received by such seller from the
sale of Registrable Shares covered by such registration statement. Not in limitation of the
foregoing, it is understood and agreed that, except as set forth in Section 4(e), the
indemnification obligations of any seller hereunder pursuant to any underwriting agreement entered
into in connection herewith shall be limited to the obligations contained in this subparagraph (b).

(c) Promptly after receipt by an indemnified party hereunder of notice of the commencement of
any action, such indemnified party shall, if a claim in respect thereof is to be made against the
indemnifying party hereunder, notify the indemnifying party in writing thereof, but the omission so
to notify the indemnifying party shall not relieve it from any liability which it may have to such
indemnified party other than under this Section 4 and shall only relieve it from any liability
which it may have to such indemnified party under this Section 4 if and to the extent the
indemnifying party is prejudiced by such omission. In case any such action shall be brought
against any indemnified party and it shall notify the indemnifying party of the commencement
thereof, the indemnifying party shall be entitled to participate in and, to the extent it shall
wish, to assume and undertake the defense thereof with counsel satisfactory to such indemnified
party, and, after notice from the indemnifying party to such indemnified party of its election so
to assume and undertake the defense thereof, the indemnifying party shall not be liable to such
indemnified party under this Section 4 for any legal expenses subsequently incurred by such
indemnified party in connection with the defense thereof other than reasonable costs of
investigation and of liaison with counsel so selected, provided, however, that, if the defendants
in any such action include both the indemnified party and the indemnifying party and the
indemnified party shall have reasonably concluded that there may be reasonable defenses available
to it which are different from or additional to those available to the indemnifying party or that
the interests of the indemnified party reasonably may be deemed to conflict with the interests of
the indemnifying party, the indemnified party shall have the right to select one separate counsel
and to assume such legal defenses and otherwise to participate in the defense of such action, with
the expenses and fees of such separate counsel and other expenses related to such participation to
be reimbursed by the indemnifying party as incurred. No indemnifying party, in the defense of any
such claim or action, shall, except with the consent of each indemnified party, which consent shall
not be unreasonably withheld or delayed, consent to entry of any judgment or enter into any
settlement which does not include as an unconditional term thereof the
giving by the claimant or plaintiff to such indemnified party of a release from all liability
in respect to such claim or action, and the indemnification agreements contained in Sections 6(a)
and 6(b) shall not apply to any settlement entered into in violation of this sentence. Each
indemnified party shall furnish such information regarding itself or the claim in question as an
indemnifying party may reasonably request in writing and as shall be reasonably required in
connection with defense of such claim and litigation resulting therefrom.

 

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(d) In order to provide for just and equitable contribution to joint liability under the
Securities Act in any case in which either (i) any holder of Registrable Shares exercising rights
under this Agreement, or any controlling Person of any such holder, makes a claim for
indemnification pursuant to this Section 4 but it is judicially determined (by the entry of a final
judgment or decree by a court of competent jurisdiction and the expiration of time to appeal or the
denial of the last right of appeal) that such indemnification may not be enforced in such case
notwithstanding the fact that this Section 4 provides for indemnification in such case, or (ii)
contribution under the Securities Act may be required on the part of any such selling holder or any
such controlling Person in circumstances for which indemnification is provided under this Section
4, then, and in each such case, the Company and such holder will contribute to the aggregate
losses, claims, damages or liabilities to which they may be subject (after contribution from
others) in such proportion so that such holder is responsible for the portion represented by the
percentage that the public offering price of its Registrable Shares offered by the registration
statement bears to the public offering price of all securities offered by such registration
statement, and the Company is responsible for the remaining portion, provided, however, that, in
any such case, (A) no such holder of Registrable Shares will be required to contribute any amount
in excess of the proceeds received from the sale of all such Registrable Shares offered by it
pursuant to such registration statement and (B) 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.

(e) Notwithstanding the foregoing, to the extent that the provisions on indemnification and
contribution contained in the underwriting agreement entered into in connection with an
underwritten public offering are in conflict with the foregoing provisions, the provisions in the
underwriting agreement shall control.

(f) The indemnities and obligations provided in this Section 4 shall survive the completion of
any offering of Registrable Shares and the transfer of any Registrable Shares by such holder.

Section 5. Exchange Act Registration and Rule 144 Reporting. With a view to making
available the benefits of certain rules and regulations of the Commission which may at any time
permit the sale of the Registrable Shares to the public without registration, except as provided in
paragraph (iii) below, at all times after 180 days after (i) any registration statement covering a
public offering of securities of the Company under the Securities Act shall have become effective,
or (ii) the Company’s equity securities shall have been registered pursuant to Section 12 of the
Exchange Act, the Company agrees that it will use its commercially reasonable efforts to:

(a) Make and keep public information available, as those terms are understood and defined in
Rule 144, at all times after the date the Company becomes subject to the reporting requirements of
either Section 13 or Section 15(d) of the Exchange Act;

(b) File with the Commission in a timely manner all reports and other documents required of
the Company under the Securities Act and the Exchange Act;

(c) Take such action, including the voluntary registration of its Common Stock under Section
12 of the Exchange Act, as is necessary to enable the holders of Registrable Shares to utilize Form
S-3 for the sale of their Registrable Shares, such action to be taken as soon as practicable after
the end of the fiscal year in which the first registration statement filed by the Company for the
offering of its securities to the general public is declared effective;

 

- 57 -

 

(d) Furnish to each holder of Registrable Shares forthwith upon request (A) a written
statement by the Company as to its compliance with the reporting requirements of Rule 144 and, at
any time after it has become subject to such reporting requirements, of the Securities Act and the
Exchange Act, or that it qualifies as a registrant whose securities may be resold pursuant to Form
S-3 (at any time after the Company so qualifies), (B) a copy of the most recent annual or quarterly
report of the Company and (C) such other information, reports and documents so filed by the Company
as such holder may reasonably request in availing itself of any rule or regulation of the
Commission allowing such holder to sell any Registrable Shares without registration; and

(e) Make available to the Lender the same services with regard to customary Rule 144 legal
opinions as it provides to its affiliates.

Section 6. Registration Procedures.

(a) If and whenever the Company is required by the provisions of Section 2 of this Agreement
to use its commercially reasonable efforts to effect the registration of any Registrable Shares
under the Securities Act, the Company will, as expeditiously as possible:

(i) Prepare and file with the Commission a registration statement with respect to such
securities including executing an undertaking to file post-effective amendments and use its
commercially reasonable efforts to cause such registration statement to become and remain
effective for the period of the distribution contemplated thereby;

(ii) Prepare and file with the Commission such amendments and supplements to such
registration statement and the prospectus used in connection therewith as may be necessary
to keep such registration statement effective for the period specified herein and comply
with the provisions of the Securities Act with respect to the disposition of all Registrable
Shares covered by such registration statement in accordance with the sellers’ intended
method of disposition set forth in such registration statement for such period;

(iii) Furnish to each seller of Registrable Shares and to each underwriter such number
of copies of the registration statement and each such amendment and supplement thereto (in
each case including all exhibits) and the prospectus included therein (including each
preliminary prospectus) as such Persons reasonably may request in order to facilitate the
public sale or other disposition of the Registrable Shares covered by such registration
statement;

(iv) Use its commercially reasonable efforts to register or qualify the Registrable
Shares covered by such registration statement under the securities or “blue sky” laws of
such jurisdictions as the sellers of Registrable Shares or, in the case of an underwritten
public offering, the managing underwriter reasonably shall request, provided that the
Company shall not for any such purpose be required to qualify generally to transact business
as a foreign corporation in any jurisdiction where it is not so qualified or to consent to
general service of process in any such jurisdiction, unless the Company is already subject
to service in such jurisdiction;

(v) Use its commercially reasonable efforts to list the Registrable Shares covered by
such registration statement with any securities exchange or quotation system on which the
Common Stock of the Company is then listed;

(vi) Use its commercially reasonable efforts to comply with all applicable rules and
regulations under the Securities Act and Exchange Act;

 

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(vii) Immediately notify each seller of Registrable Shares and each underwriter under
such registration statement, at any time when a prospectus relating thereto is required to
be delivered under the Securities Act, of the happening of any event of which the Company
has
knowledge as a result of which the prospectus contained in such registration statement,
as then in effect, includes an untrue statement of a material fact or omits to state a
material fact required to be stated therein or necessary to make the statements therein not
misleading in light of the circumstances then existing, and promptly prepare and furnish to
such seller a reasonable number of copies of a prospectus supplemented or amended so that,
as thereafter delivered to the purchasers of such Registrable Shares, such prospectus shall
not include 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 in light of
the circumstances then existing;

(viii) If the offering is underwritten and at the request of any seller of Registrable
Shares, furnish on the date that Registrable Shares are delivered to the underwriters for
sale pursuant to such registration (i) an opinion, in customary form and dated the effective
date of the registration statement, of counsel representing the Company for the purposes of
such registration, addressed to the underwriters to such effect as reasonably may be
requested by counsel for the underwriters and copies of such opinion addressed to the
sellers of Registrable Shares and (ii) a letter dated such date from the independent public
accountants retained by the Company, addressed to the underwriters stating that they are
independent public accountants within the meaning of the Securities Act and that, in the
opinion of such accountants, the financial statements of the Company included in the
registration statement or the prospectus, or any amendment or supplement thereof, comply as
to form in all material respects with the applicable accounting requirements of the
Securities Act and such letter shall additionally cover such other financial matters
(including information as to the period ending no more than five business days prior to the
date of such letter) with respect to such registration as such underwriters reasonably may
request;

(ix) Upon reasonable notice and at reasonable times during normal business hours, make
available for inspection by each seller of Registrable Shares, any underwriter participating
in any distribution pursuant to such registration statement, and any attorney, accountant or
other agent retained by such seller or underwriter, reasonable access to all financial and
other records, pertinent corporate documents and properties of the Company, as such parties
may reasonably request, and cause the Company’s officers, directors and employees to supply
all information reasonably requested by any such seller, underwriter, attorney, accountant
or agent in connection with such registration statement;

(x) Cooperate with the selling holders of Registrable Shares and the managing
underwriter, if any, to facilitate the timely preparation and delivery of certificates
representing Registrable Shares to be sold, such certificates to be in such denominations
and registered in such names as such holders or the managing underwriter may request at
least two business days prior to any sale of Registrable Shares; and

(xi) Permit any holder of Registrable Shares which holder, in the sole and exclusive
judgment, exercised in good faith, of such holder, might be deemed to be a controlling
Person of the Company, to participate in good faith in the preparation of such registration
or comparable statement and to require the insertion therein of material, furnished to the
Company in writing, which in the reasonable judgment of such holder and its counsel should
be included.

(b) For purposes of this Agreement, the period of distribution of Registrable Shares in a firm
commitment underwritten public offering shall be deemed to extend until each underwriter has
completed the distribution of all securities purchased by it, and the period of distribution of
Registrable Shares in any other registration shall be deemed to extend until the earlier of the
sale of all Registrable Shares covered thereby or 180 days after the effective date thereof,
provided, however, in the case of any registration of Registrable Shares on Form S-3 or a
comparable or successor form which are intended to be offered on a continuous or delayed basis,
such 180 day-period shall be extended, if necessary, to keep the registration statement effective
until all such Registrable Shares are sold, provided that Rule 415, or any successor or similar
rule promulgated under the Securities Act, permits the offering to be conducted on a continuous or
delayed basis, and provided further that applicable rules under the Securities Act governing
the obligation to file a post-effective amendment, permit, in lieu of filing a post-effective
amendment which (y) includes any prospectus required by Section 10(a)(3) of the Securities Act or
(z) reflects facts or events representing a material or fundamental change in the information set
forth in the registration statement, the incorporation by reference of information required to be
included in (y) and (z) above contained in periodic reports filed pursuant to Section 13 or 15(d)
of the Exchange Act in the registration statement.

 

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(c) Whenever under the preceding Sections of this Agreement the holders of Registrable Shares
are registering such shares pursuant to any registration statement, each such holder agrees to (i)
timely provide in writing to the Company, at its request, such information and materials as the
Company may reasonably request in order to effect the registration of such Registrable Shares in
compliance with federal and applicable state securities laws, and (ii) provide the Company with
appropriate representations with respect to the accuracy of such information provided by such
Sellers pursuant to subsection (i).

Section 7. Expenses. In the case of any registration statement under Section 2 of
this Agreement, the Company shall bear all costs and expenses of each such registration, including,
but not limited to, all registration and filing fees, printing expenses, fees and disbursements of
counsel and independent public accountants for the Company, fees and expenses (including counsel
fees) incurred in connection with complying with state securities or “blue sky” laws, fees of the
National Association of Securities Dealers, Inc. (as any successor thereto), transfer taxes, fees
of transfer agents and registrars, costs of any insurance which might be obtained by the Company
with respect to the offering by the Company and the reasonable fees and disbursements of one
counsel selected by a majority in interest of the sellers of Registrable Shares (collectively,
“Registration Expenses”). The Company shall have no obligation to pay or otherwise bear
any portion of the underwriters’ commissions or discounts attributable to the Registrable Shares
(“Selling Expenses”). All Selling Expenses in connection with each registration statement
under Section 2 of this Agreement shall be borne by the participating sellers (including the
Company, where applicable) in proportion to the number of shares registered by each, or by such
participating sellers other than the Company (to the extent the Company shall be a seller) as they
may agree.

Section 8. Delay of Registration. For a period not to exceed 180 days, the Company
shall not be obligated to prepare and file, or be prevented from delaying or abandoning, a
registration statement pursuant to this Agreement at any time when the Company furnishes to holders
of Registrable Shares that have requested to have such Registrable Shares included in a
registration statement covered by the terms of this Agreement a certificate signed by the President
of the Company stating that in the good faith judgment of the Board of Directors of the Company the
filing thereof at the time requested, or the offering of Registrable Shares pursuant thereto, would
be seriously detrimental to the Company or its stockholders, or materially and adversely affect (a)
a pending or scheduled public offering of the Company’s securities, (b) an acquisition, merger,
recapitalization, consolidation, reorganization or similar transaction by or of the Company, (c)
pre-existing and continuing negotiations, discussions or pending proposals with respect to any of
the foregoing transactions, or (d) the financial condition of the Company in view of the disclosure
of any pending or threatened litigation, claim, assessment or governmental investigation which may
be required thereby, and that the failure to disclose any material information with respect to the
foregoing would cause a violation of the Securities Act or the Exchange Act.

Section 9. Conditions to Registration Obligations. The Company shall not be obligated
to effect the registration of Registrable Shares pursuant to Section 2 of this Agreement unless all
holders of shares being registered consent to reasonable conditions imposed by the Company as the
Company shall determine with the advice of counsel to be required by law including, without
limitation:

(a) Conditions prohibiting the sale of shares by such holders until the registration shall
have been effective for a specified period of time;

(b) Conditions requiring such holder to comply with all prospectus delivery requirements of
the Securities Act and with all anti-stabilization, anti-manipulation and similar provisions of
Section 10 of
the Exchange Act and any rules issued thereunder by the Commission, and to furnish to the
Company information about sales made in such public offering;

 

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(c) Conditions prohibiting such holders upon receipt of telegraphic or written notice from the
Company (until further notice) from effecting sales of shares, such notice being given to permit
the Company to correct or update a registration statement or prospectus;

(d) Conditions requiring that at the end of the period during which the Company is obligated
to keep the registration statement effective, the holders of shares included in the registration
statement shall discontinue sales of shares pursuant to such registration statement upon receipt of
notice form the Company of its intention to remove from registration the shares covered by such
registration statement that remain unsold, and requiring such holders to notify the Company of the
number of shares registered that remain unsold immediately upon receipt of notice from the Company;
and

(e) Conditions requiring the holders of Registrable Shares to enter into an underwriting
agreement in form and substance reasonably satisfactory to the Company and the holders of
Registrable Shares.

Section 10. Miscellaneous.

(a) No failure or delay on the part of any party to this Agreement in exercising any right,
power or remedy hereunder shall operate as a waiver thereof; nor shall any single or partial
exercise of any such right, power or remedy preclude any other or further exercise thereof or the
exercise of any other right, power or remedy hereunder. The remedies herein provided are
cumulative and not exclusive of any remedies provided by law.

(b) Except as hereinafter provided, amendments or additions to this Agreement may be made,
this Agreement may be terminated, and compliance with any covenant or provision set forth herein
may be omitted or waived, only with the written consent of the Company and the holder or holders of
at least a majority in interest of the Registrable Shares; provided, however, that any modification
or amendment that affects any such holder in a manner different from the effect on the other
holders of Registrable Shares shall require the affirmative approval of such holder. Any waiver or
consent may be given subject to satisfaction of conditions stated therein and any waiver or consent
shall be effective only in the specific instance and for the specific purpose for which given.
Notwithstanding the foregoing, this Agreement may be amended to add new parties and/or Registrable
Shares the Company consents thereto and any new party executes and delivers to the Company a copy
of the signature page hereto.

(c) All notices, requests, consents and other communications hereunder shall be in writing,
shall be addressed to the receiving party’s address set forth below or to such other address as a
party may designate by notice hereunder, and shall be either (i) delivered by hand, (ii) made by
telecopy or facsimile transmission, (iii) sent by overnight courier, or (iv) sent by registered or
certified mail, return receipt requested, postage prepaid:

	 	 	 	 	 
	 

	 	If to the Company to:
	 	MiMedx Group, Inc.

811 Livingston Court. SE, Suite B

Marietta, Georgia 30067

Attn: General Counsel

Fax No: (678) 384-6741
	 
	 	 	 	 
	 

	 	If to the Lender to:
	 	The address of the Lender as set forth in the
records of the Company

 

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All notices, requests, consents and other communications hereunder shall be deemed to have
been given either (i) if by hand, at the time of the delivery thereof to the receiving party at the
address of such party
set forth above, (ii) if made by telecopy or facsimile transmission, at the time that receipt
thereof has been acknowledged by electronic confirmation or otherwise, (iii) if sent by overnight
courier, on the next business day following the day such notice is delivered to the courier
service, or (iv) if sent by registered or certified mail, on the fifth business day following the
day such mailing is made.

(d) This Agreement constitutes the entire agreement between the parties and supersede any
prior understandings or agreements concerning the subject matter hereof.

(e) In the event that any court of competent jurisdiction shall determine that any provision,
or any portion thereof, contained in this Agreement shall be unenforceable in any respect, then
such provision shall be deemed limited to the extent that such court deems it enforceable, and as
so limited shall remain in full force and effect. In the event that such court shall deem any such
provision, or portion thereof, wholly unenforceable, the remaining provisions of this Agreement
shall nevertheless remain in full force and effect.

(f) The parties hereto acknowledge and agree that (i) each party and its counsel, if so
represented, reviewed and negotiated the terms and provisions of this Agreement and have
contributed to its revision and (ii) the rule of construction to the effect that any ambiguities
are resolved against the drafting party shall not be employed in the interpretation of this
Agreement.

(g) All statements, representations, warranties, covenants and agreements in this Agreement
shall be binding on the parties hereto and shall inure to the benefit of the respective successors
and permitted assigns of each party hereto.

(h) This Agreement and the rights and obligations of the parties hereunder shall be construed
in accordance with and governed by the law of the State of Florida without giving effect to the
conflict of law principles thereof.

(i) Any legal action or proceeding with respect to this Agreement may be brought in the courts
of the State of Florida or of the United States of America for the District of Florida. By
execution and delivery of this Agreement, each of the parties hereto accepts for itself and in
respect of its property, generally and unconditionally, the jurisdiction of the aforesaid courts.
Each of the parties hereto irrevocably consents to the service of process of any of the
aforementioned courts in any such action or proceeding by the mailing of copies thereof by
certified mail, postage prepaid, to the party at its address set forth in Section 10(c) hereof.

(j) In the event of any change in the Common Stock or other securities covered hereunder, by
way of a stock split, stock dividend, combination or redemption, or through merger, consolidation,
reorganization or otherwise, appropriate adjustment shall be made in the provisions hereof,
including, without limitation, an equitable adjustment of to the number of Registrable Shares. For
purposes of determining the number of shares held by the Lender, all shares held by any Affiliate
of the Lender shall be deemed to be held by the Lender.

(k) No failure or delay by a party hereto in exercising any right, power or remedy under this
Agreement, and no course of dealing among the parties hereto, shall operate as a waiver of any such
right, power or remedy of the party. No single or partial exercise of any right, power or remedy
under this Agreement by a party hereto, nor any abandonment or discontinuance of steps to enforce
any such right, power or remedy, shall preclude such party from any other or further exercise
thereof or the exercise of any other right, power or remedy hereunder. The election of any remedy
by a party hereto shall not constitute a waiver of the right of such party to pursue other
available remedies. No notice to or demand on a party not expressly required under this Agreement
shall entitle the party receiving such notice or demand to any other or further notice or demand in
similar or other circumstances or constitute a waiver of the rights of the party giving such notice
or demand to any other or further action in any circumstances without such notice or demand.

 

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(l) The headings and captions of the various subdivisions of this Agreement are for
convenience of reference only and shall in no way modify or affect the meaning or construction
of any of the terms or provisions hereof.

(m) This Agreement may be executed in any number of counterparts, all of which taken together
shall constitute one and the same instrument, and any of the parties hereto may execute this
Agreement by signing any such counterparts.

[Signatures contained on the following pages]

 

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IN WITNESS WHEREOF, the parties hereto have executed this Registration Rights Agreement or
caused this Registration Rights Agreement to be executed by their duly authorized representatives
as of the date first above written.

	 	 	 	 	 	 	 
	 	 	COMPANY:	 	 
	 
	 	 	 	 	 	 
	 	 	MiMedx Group, Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	LENDER:	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Parker H. Petit

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