Document:

Exhibit 10.1

 

Stockholders’
Agreement

 

THIS
STOCKHOLDERS’ AGREEMENT (this “Agreement”), dated as of
October 16, 2017, is entered into by and between OrthoPediatrics Corp., a Delaware corporation (the “Company”),
and Squadron Capital LLC, a Delaware limited liability company (“Squadron”).

 

WHEREAS, Squadron
holds all of the outstanding shares of the Company’s Series A Convertible Preferred Stock, par value $0.00025 per share
(the “Series A Preferred Stock”), and greater than 90% of the outstanding shares of the Company’s Series
B Convertible Preferred Stock, par value $0.00025 per share (the “Series B Preferred Stock” and, together with
the Series A Preferred Stock, the “Preferred Stock”);

 

WHEREAS, the rights
of the holders of the Preferred Stock are set forth in that certain Amended and Restated Certificate of Designations, Preferences
and Rights of Preferred Stock of the Company, as filed with the Secretary of State of the State of Delaware on May 28, 2014, as
amended on April 26, 2017 (the “Certificate of Designations”);

 

WHEREAS, pursuant
to Section 3.2 of the Certificate of Designations, the holders of record of the shares of Series A Preferred Stock and/or shares
of Common Stock issued upon conversion of the Series A Preferred Stock, exclusively and as a separate class are entitled to elect
two director of the Corporation;

 

WHEREAS, pursuant
to Section 3.2 of the Certificate of Designations, the holders of record of the shares of Series B Preferred Stock and/or shares
of Common Stock issued upon conversion of the Series B Preferred Stock, exclusively and as a separate class are entitled to elect
two directors of the Corporation;

 

WHEREAS, subject to
and effective upon the closing of the Company’s registered initial public offering of Common Stock, par value $0.00025 per
share (the “Common Stock”), made pursuant to the Registration Statement on Form S-1 (No. 333-212076) filed
with the U.S. Securities and Exchange Commission on June 16, 2016, as amended (the “IPO”): (x) Squadron has
consented to the Mandatory Conversion (as such term is defined in the Certificate of Designations) of (i) the Series A Preferred
Stock into shares of Common Stock and (ii) the Series B Preferred Stock into shares of Common Stock; (y) Squadron has agreed to
convert the aggregate amount per share equal to the Original Issue Price of the Series A Preferred Stock plus any Accruing Dividends
(as such terms are defined in the Certificate of Designations) accrued but unpaid thereon, whether or not declared, together with
any other dividends declared but unpaid into shares of Common in lieu of a cash payment therefore and (z) the Company will file
an amended and restated Certificate of Incorporation with the Secretary of State of the State of Delaware and adopt amended and
restated by-laws of the Company;

 

WHEREAS, the parties hereto desire to enter
into this Agreement to govern certain rights with respect to matters relating to Squadron’s ownership of the Common Stock.

 

NOW, THEREFORE, in consideration of the
foregoing and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending
to be legally bound, the Company and Squadron agree as follows, such agreement subject to and effective upon the closing of the
IPO.

 

     

     

    

 

Article
I– DEFINITIONS

 

As used in this Agreement,
the following terms will have the following respective meanings:

 

“Affiliate”
means, with respect to any Person, any other Person that directly, or indirectly through one or more intermediaries, controls,
is controlled by or is under common control with such first Person, where “control” and its corollaries mean the possession,
directly or indirectly, of power to direct or cause the direction of management or policies of such Person (whether through the
ownership of voting securities, partnership or other ownership interests, by contract or trust agreement or otherwise).

 

“Governmental
Authority” means any federal, state, local or foreign government or political subdivision thereof, any agency
or instrumentality of such government or political subdivision, any self-regulated organization or any other non-governmental regulatory
authority or quasi-governmental authority (to the extent that the rules, regulations or orders of such organization or authority
have the force of Law), or any arbitrator, court or tribunal of competent jurisdiction.

 

“Organizational
Documents” means: (a) the certificate of incorporation of the Corporation, as filed with the Secretary of
State of the State of Delaware on the date hereof; and (b) the bylaws of the Corporation in effect on the date hereof; in each
case as may be amended, modified, supplemented or restated from time to time.

 

“Person” means
an individual, corporation, partnership, joint venture, limited liability company, Governmental Authority, unincorporated organization,
trust, association or other entity.

 

Article
II– BOARD OF DIRECTORS

 

Section
2.01         Size of Initial Board.         The
board of directors (each, a “Director” and, collectively, the “Board”) shall initially consist
of eleven (11) directors, divided into three classes designated Class I, Class II and Class III. The number of directors may be
changed only by the vote of the Board, including the affirmative vote of the Squadron Directors.

 

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Section
2.02         Composition of the Board.

 

(a)          Following
the closing of the IPO, Squadron shall have the right (but not the obligation) to cause the Company, in its proxy statement as
mailed out from time to time, to include in its slate of recommended nominees for election to the Board: (i) four designees, for
so long as Squadron, together with its Affiliates, beneficially own, directly or indirectly, 35% or more of the voting power of
all shares of the Company’s capital stock entitled to vote generally in the election of directors; (ii) three designees,
for so long as Squadron, together with its Affiliates, beneficially own, directly or indirectly, 20% or more, but less than 35%,
of the voting power of all shares of the Company’s capital stock entitled to vote generally in the election of directors;
and (iii) two designees, for so long as Squadron, together with its Affiliates, beneficially own, directly or indirectly, 10% or
more, but less than 20%, of the voting power of all shares of the Company’s capital stock entitled to vote generally in the
election of directors. Each person whom Squadron shall designate pursuant to this Section 2.02, and who is thereafter elected
to the Board to serve as a Director, shall be referred to herein as a “Squadron Director.” The Squadron Directors
shall initially consist of: Marie Infante, who shall serve as a Class I Director; a Squadron Director who will be appointed by
the Board to fill the vacancy on the Board as of the date hereof, who, when appointed, shall serve as a Class II Director; and
David Pelizzon and Harald Ruf, who shall serve as Class III Directors.

 

(b)          The
Company agrees to include in its slate of recommended nominees for election to the Board at any meeting of stockholders called
for the purpose of electing Directors or any meeting of the Board called to fill a vacancy on the Board, the persons designated
by Squadron pursuant to Section 2.01(a) (to the extent that Directors of such nominee’s class are to be elected at
such meeting, for so long as the Board is classified) and to nominate and recommend each such person to be elected as a Director,
and to solicit proxies or consents in favor thereof. The Company shall be entitled to identify such persons as designees of Squadron
pursuant to this Agreement.

 

(c)          In
the event that a vacancy is created at any time by the death, resignation, retirement, disqualification, removal or otherwise of
any Squadron Director, the remaining Directors and the Company shall cause such vacancy to be filled by a new designee of Squadron
as soon as possible, and the Company hereby agrees to take, at any time and from time to time, all actions necessary to accomplish
the same.

 

(d)          In
the event that Squadron, together with its Affiliates, ceases to beneficially own at least 10% of the issued and outstanding shares
of Common Stock, then Squadron shall cease to have the right to designate any persons for election to the Board pursuant to this
Section 2.01, and this Agreement shall terminate pursuant to Section 3.01(a).

 

Article
III– TERMINATION

 

Section
3.01         Termination. This Agreement shall terminate upon the
earliest of: (a) the date on which Squadron, together with its Affiliates, ceases to own at least ten percent (10%) of the issued
and outstanding shares of Common Stock; (b) the dissolution, liquidation or winding up of the Company; or (c) an agreement in writing
signed by each of the parties hereto to terminate this Agreement.

 

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Article
IV– MISCELLANEOUS

 

Section
4.01         Notices. All notices, requests, demands, claims and
other communications required or permitted to be delivered, given or otherwise provided under this Agreement must be in writing
and must be delivered, given or otherwise provided: (a) by hand (in which case, it will be effective upon delivery); (b) by facsimile
or email (in which case, it will be effective upon receipt of confirmation of transmission); or (c) by overnight delivery by a
nationally recognized courier service (in which case, it will be effective one (1) business day after being deposited with such
courier service); in each case, to the address or facsimile number listed below (or to such other address or facsimile number as
shall be specified in a notice given in accordance with this Section 4.01):

 

 

	If to the Company:	OrthoPediatrics Corp.
	 	2850 Frontier Drive
	 	Warsaw, Indiana 46582
	 	Attention: General Counsel
	 	Facsimile: 574-269-3692
	 	 
	If to Squadron:	Squadron Capital LLC
	 	18 Hartford Avenue
	 	Granby, Connecticut 06035
	 	Attention: David R. Pelizzon
	 	Facsimile: 860-413-9872

 

Section
4.02         Headings; Interpretation. The headings contained in
this Agreement are for convenience purposes only and shall not in any way affect the meaning or interpretation hereof. Whenever
required by the context, the singular form of nouns, pronouns and verbs shall include the plural and vice versa. The use of the
words “or,” “either” and “any” shall not be exclusive. Reference to any agreement, document
or instrument means such agreement, document or instrument as amended or otherwise modified from time to time in accordance with
the terms thereof and, if applicable, hereof. The parties hereto have participated jointly in the negotiation and drafting of this
Agreement. In the event any ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted
jointly by the parties hereto, and no presumption or burden of proof shall arise favoring or disfavoring either party by virtue
of the authorship of any of the provisions of this Agreement.

 

Section
4.03         Severability. If any provision of this Agreement is
found by any court of competent jurisdiction to be invalid or unenforceable, the parties hereto waive such provision to the extent
that it is found to be invalid or unenforceable so long as this Agreement as so modified continues to express, without material
change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or unenforceability
of the provision in question does not substantially impair the respective expectations or reciprocal obligations of the parties
or the practical realization of the benefits that would otherwise be conferred upon the parties. Such provision shall, to the maximum
extent allowable by law, be modified by such court so that it becomes enforceable and, as modified, shall be enforced as any other
provision hereof, with all the other provisions hereof continuing in full force and effect.

 

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Section
4.04         Entire Agreement. This Agreement constitutes the entire
agreement of the parties hereto with respect to the subject matter contained herein and supersedes any and all prior and contemporaneous
discussions, negotiations, proposals, undertakings, understandings and agreements, whether written and oral, with respect thereto.

 

Section
4.05         Assignment. This Agreement, and the rights and obligations
of the parties hereunder, may not be transferred or assigned without the prior written consent of each of the parties hereto.

 

Section
4.06         Binding Effect; No Third-Party Beneficiaries. This
Agreement shall be binding upon, and shall inure to the benefit of, the parties hereto. This Agreement is for the sole benefit
of the parties hereto and nothing herein, express or implied, is intended to or shall confer upon any other Person any legal or
equitable right, benefit or remedy of any nature whatsoever.

 

Section
4.07         Amendment and Waiver. This Agreement may only be amended
or modified by an agreement in writing signed by each of the parties hereto. No waiver by any party of any of the provisions hereof
shall be effective unless explicitly set forth in writing and signed by the party so waiving. No waiver by any party shall operate
or be construed as a waiver in respect of any failure, breach or default not expressly identified by such written waiver, whether
of a similar or different character, and whether occurring before or after such waiver. No failure to exercise, or delay in exercising,
any right, remedy, power or privilege arising from this Agreement shall operate or be construed as a waiver thereof. No single
or partial exercise of any right, remedy, power or privilege hereunder shall preclude any other or further exercise thereof or
the exercise of any other right, remedy, power or privilege.

 

Section
4.08         Governing Law. This Agreement shall be governed by
and construed in accordance with the domestic substantive laws of the State of Delaware, without giving effect to any choice or
conflict of law provision or rule that would cause the application of the laws of any other jurisdiction.

 

Section
4.09         Counterparts. This Agreement may be executed in any
number of counterparts, each of which shall be deemed an original, but all of which together shall constitute but one and the same
instrument. A signature delivered by facsimile, pdf, electronic mail or other electronic means shall be considered due execution
and shall be binding upon the signatory thereto with the same force and effect as if the signature were an original.

 

[Signature Page Follows]

 

    	 	5	 

     

    

 

IN WITNESS WHEREOF,
the parties hereto have executed this Stockholders’ Agreement as of the date first written above.

 

		OrthoPediatrics Corp.
	 	
		By: /s/
    Mark C. Throdahl                           
		             Mark C. Throdahl
		             President and Chief Executive Officer
	 	
		Squadron Capital LLC
	 	
		By: /s/ David
    R. Pelizzon                            
		             David R. Pelizzon
		             President
		

 

[Signature Page to Stockholders’ Agreement]Exhibit 10.2

 

FIRST AMENDMENT TO

REGISTRATION RIGHTS AGREEMENT

OF

ORTHOPEDIATRICS CORP.

 

THIS FIRST
AMENDMENT to the Registration Rights Agreement (this “Amendment”), dated as of October 16, 2017, is
entered into by and between OrthoPediatrics Corp., a Delaware corporation (the “Company”), and Squadron
Capital LLC, a Delaware limited liability company (“Squadron”). Capitalized terms used but not defined
herein shall have the meanings given to such terms in the Registration Rights Agreement (as defined below).

 

WHEREAS, the Company,
Squadron and the additional parties listed on Schedule 1 thereof are parties to that certain Registration Rights Agreement, dated
as of May 30, 2014 (the “Registration Rights Agreement”);

 

WHEREAS, Section 7.8(b)
of the Registration Rights Agreement provides that the Registration Rights Agreement may be amended with the prior written consent
of the Company and Squadron; and

 

WHEREAS, the Company
and Squadron wish to amend the Registration Rights Agreement as provided herein, subject to, and effective upon, the closing of
the registered public offering of the Company’s Common Stock, par value $0.00025 per share, made pursuant to the Registration
Statement on Form S-1 (No. 333-212086) filed with the U.S. Securities and Exchange Commission on June 16, 2016, as amended (the
“IPO”).

 

NOW THEREFORE, in consideration
of the foregoing and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending
to be legally bound, the Company and Squadron agree as follows, such agreement subject to and effective upon the closing of the
IPO:

 

1.          Amendments
to Section 1.

 

(a) The definition
of “Qualified IPO” shall be deleted in its entirety.

 

(b) The definition
of “Registrable Securities” in Section 1 of the Registration Rights Agreement is hereby amended and restated in its
entirety to read as follows:

 

“Registrable
Securities” means (i) any Common Stock issued or issuable upon conversion of the Series B Preferred Stock issued to Squadron
and the Holders pursuant to the Purchase Agreement or issued or issuable to Squadron upon conversion, exchange or in consideration
of all or a portion of the Company’s debt held by Squadron; (ii) any Common Stock issued or issuable upon conversion of the
Series A Preferred Stock; (iii) any Common Stock issued or issuable with respect to the Series A Preferred Stock, in lieu of the
cash payment of the Original Issue Price (as defined in the Amended and Restated Certificate of Designations, Preferences and Rights
of Preferred Stock of the Company, as amended, in effect immediately prior to the IPO (the “Certificate of Designations”))
thereof pursuant to Section 5.2 of the Certificate of Designations; (iii) any Common Stock issued or issuable with respect to the
Series A Preferred Stock, in lieu of the cash payment of the Accruing Dividends (as defined in the Certificate of Designations)
accrued but unpaid thereon, whether or not declared, together with any other dividends declared but unpaid thereon, pursuant to
Section 5.2 of the Certificate of Designations; (iv) any Common Stock issued or issuable, directly or indirectly, upon conversion
and/or exercise of any other securities of the Company, acquired by Squadron or the other Holders after the date of the Agreement;
and (v) any Common Stock issued as (or issuable upon the conversion or exercise of any warrant, right or other security that is
issued as) a dividend or other distribution with respect to, or in exchange for or in replacement of, the shares referenced in
clauses (i), (ii), (iii) and (iv) above.”

 

     

     

    

 

2.          Amendment
to Section 2.4. The first sentence of Section 2.4(a) is hereby amended and restated to read as follows:

 

“The
Company will not be required to effect more than three registrations requested by Squadron pursuant to Section 2.1 above.”

 

3.          Amendment
to Section 5.3(a). Clause (i) of the first sentence of Section 5.3(a) is hereby amended and restated to read as follows:

 

“(i)
first, the maximum number of shares requested to be included by the Company in such registration that can be sold without exceeding
the Maximum Number of Shares; provided, however, that such number of shares to be included by the Company in such registration
shall be reduced by up to 40% in order to permit Squadron to sell up to 40% of the Maximum Number of Shares in such registration,
if Squadron so requests;”

 

4.          No
Further Effect. Except as amended hereby, all terms and provisions of the Registration Rights Agreement shall remain in full
force and effect, and are hereby ratified and confirmed by the Company and Squadron. All references in the Registration Rights
Agreement to “this Agreement,” “herein,” “hereof,” “hereby” and words of similar
import shall refer to the Registration Rights Agreement, as amended hereby. In the event of any conflict between the provisions
of this Amendment and the Registration Rights Agreement, the provisions of this Amendment shall control.

 

5.          Counterparts.
This Amendment may be executed in any number of counterparts, each of which will be deemed an original, but all of which together
will constitute but one and the same instrument. A signature delivered by facsimile, pdf, electronic mail or other electronic means
shall be considered due execution and shall be binding upon the signatory thereto with the same force and effect as if the signature
were an original. No party hereto or to any such agreement or instrument shall raise the use of facsimile machine, pdf, electronic
mail or other electronic means to deliver a signature or the fact that any signature or agreement or instrument was transmitted
or communicated through the use of a facsimile machine, pdf, electronic mail or other electronic means as a defense to the formation
or enforceability of a contract and each such party forever waives any such defense.

 

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6.          Governing
Law. This Amendment shall be governed by and construed in accordance with the domestic substantive laws of the State of Delaware,
without giving effect to any choice or conflict of law provision or rule that would cause the application of the laws of any other
jurisdiction.

 

[Signature Page Follows] 

 

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IN WITNESS WHEREOF, the parties hereto have
executed this First Amendment to Registration Rights Agreement as of the date first written above.

 

	 	ORTHOPEDIATRICS CORP.
	 	 	 
	 	By:	/s/ Mark C. Throdahl
	 	 	Mark C. Throdahl
	 	 	President and Chief Executive Officer
	 	 	 
	 	SQUADRON CAPITAL LLC
	 	 
	 	By:	/s/ David R. Pelizzon
	 	 	 David R. Pelizzon
	 	 	President

 

[Signature Page to First Amendment to Registration Rights Agreement]

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