Document:

SEPARATION
AGREEMENT AND RELEASE

 

This
Separation Agreement (“Agreement”) and the Release, which is attached and incorporated by reference as Exhibit
A (“Release”), are made by and between Carl D. O’Connell (“Executive”), and Xtant
Medical Holdings, Inc., its affiliates, related or predecessor corporations, subsidiaries, successors and assigns (“Employer”).

 

Employer
and Executive (collectively, “Parties”) wish to end their employment relationship in an honorable, dignified
and orderly fashion. Toward that end, the Parties have agreed to separate according to the following terms.

 

IN
CONSIDERATION OF THIS AGREEMENT, THE PARTIES AGREE AS FOLLOWS:

 

1.
Termination. Executive’s employment shall end on October 12, 2018 (“Termination Date”).

 

2.
Consideration. Employer shall, (1) after receipt of a fully executed Agreement and Release; (2) after expiration of all
applicable rescission periods; and (3) provided Executive complies with his obligations under this Agreement, provide Executive
with certain separation benefits (“Consideration”) in compliance with that certain Employment Agreement effective
October 6, 2016 between Employer and Executive, as amended on February 17, 2017 and May 15, 2018 (the “Employment Agreement”).
Pursuant to Section 12B of the Employment Agreement, Employer will pay Executive severance pay equal to $43,333.33 per month for
twelve (12) months following the Termination Date (the “Severance Period”), less all required tax withholdings
and other applicable deductions, payable in accordance with Employer’s standard payroll procedures; provided, however,
that the first payment shall include any amounts that would have been paid to Executive if payment had commenced on the Termination
Date. In addition, during the twelve (12) months following the Termination Date, with respect to group health benefits, Executive
(and his dependents) may elect, in accordance with and subject to the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”)
or similar state law, to remain covered under Employer’s group health plan for the period mandated by COBRA or similar state
law. If Executive timely and effectively elects such continuation coverage, Employer will pay the premiums for such coverage of
Executive (and his dependents, as applicable) through such twelve-month period; provided, however, that Employer’s
obligation to make such payments shall immediately expire if Executive ceases to be eligible for continuation coverage under COBRA
or similar state law or otherwise terminates such coverage. Any payments described above and due to Executive under Paragraph
12B of the Employment Agreement shall commence within sixty (60) days of Executive’s termination of employment, provided,
however, that if such sixty (60)-day period spans two (2) calendar years, payments shall commence in the latter calendar year.

 

3.
Stock Options. The Company and the Executive acknowledge and agree that (a) the Executive holds options to purchase an
aggregate of 225,000 shares of Common Stock of Company, 25,000 shares of which are vested as of the Termination Date and 200,000
shares of which are not vested as of the Termination Date, (b) the Executive has the right to exercise such vested options through
January 12, 2019, at which time such vested options shall expire if not exercised, and (c) such unvested options expired as of
the Termination Date.

 

4.
Expense Reimbursement. Employer and Executive acknowledge that Executive owes Employer $3,168.13 for personal expenses
charged to Employer’s corporate credit card, net of Executive’s unreimbursed business expenses, and that Employer
will deduct $3,168.13 from the first payment made under Section 2. Executive acknowledges that he does not have any additional
unreimbursed business expenses.

 

    	 

    	 

    

 

5.
Termination of Benefits. Except as otherwise provided by this Agreement, Executive’s participation in Employer’s
employee benefits, bonus, and all other compensation or commission plans, will terminate on the Termination Date, unless otherwise
provided by law or benefit plan. Executive shall receive no compensation or benefits under such plans, except as specifically
provided in Section 2 of this Agreement.

 

6.
Execution of Agreement and Mutual Release of all Claims. Executive agrees to fully execute this Agreement, and the Release
attached as Exhibit A, releasing any and all actual or potential claims which Executive may have or may claim to have,
arising at any time during his employment with or termination from employment with Employer, except for those claims arising from
Employer’s failure to comply with its obligations under Paragraph 12A of the Employment Agreement. Executive’s failure
to execute this Agreement and/or Release, or any attempt to rescind this Agreement or that Release, shall terminate this Agreement,
and the Parties’ respective rights and obligations under this Agreement. Likewise, Employer agrees to fully execute this
Agreement, and by doing so, Employer hereby agrees to release, and hereby does release, any and all actual or potential claims
which Employer may have or may claim to have, against Executive, arising at any time during his employment or termination of Executive.

 

7.
Satisfactory Performance and Cooperation During Transition. Executive shall fully cooperate with Employer in responding
to questions, providing assistance and information, and defending against claims of any type, and will otherwise assist Employer
as Employer may request through the Severance Period (“Transition Period”). More specifically:

 

(a)
During the Transition Period, Executive shall reasonably cooperate with Employer as it meets and otherwise communicates/works,
with Employer’s employees, customers, strategic relationships, consultants, and vendors on the transition of Executive’s
duties to other individuals. Executive shall be available, upon reasonable notice, during business hours to respond to Employer’s
questions and electronic communications. Employer shall reimburse Executive for Executive’s reasonable out-of-pocket expenses
(such reimbursement shall not include compensation for any such time or Executive’s attorney’s fees) incurred in accordance
with this paragraph upon submission of receipts to Employer for such expenses.

 

(b)
Executive shall not, absent Employer’s specific approval, initiate any form of communication with Employer’s employees,
customers or strategic partners regarding Employer, Employer’s products or Executives, and shall communicate with such persons
in the above capacity only in conjunction with person(s) who Employer has designated to participate in such communications.

 

8.
Agreement to Cooperate in Investigations and Litigation. Executive agrees that Executive will, at any future time, be available
upon reasonable notice from Employer, with or without a subpoena, to be interviewed, review documents or things, give depositions,
testify, or engage in other reasonable activities, with respect to matters and/or disputes concerning which Executive has or may
have knowledge as a result of or in connection with Executive’s employment by Employer. In performing Executive’s
obligations under this Section 8 to testify or otherwise provide information, Executive will honestly, truthfully, forthrightly,
and completely provide the information requested. Executive will comply with this Agreement upon notice from Employer that Employer
or its attorneys believe that Executive’s compliance will assist in the resolution of an investigation or the prosecution
or defense of claims. Executive understands and agrees that Employer’s obligations under this Agreement are contingent upon
Executive cooperating with Employer in investigations and litigation.

 

    	2

    	 

    

 

9.
Stipulation of No Charges. Executive affirmatively represents that he has not filed nor caused to be filed any charges,
claims, complaints, or actions against Employer before any federal, state, or local administrative agency, court, or other forum.
Except as expressly provided in this Agreement or required by law, Executive acknowledges and agrees that he has been paid all
wages, bonuses, compensation, benefits and other amounts that are due, with the exception of any vested right under the terms
of a written ERISA-qualified benefit plan. Executive waives any right to any form of recovery or compensation from any legal action,
excluding any action claiming this Agreement and Release violate the Age Discrimination in Employment Act (“ADEA”)
and/or the Older Workers Benefit Protection Act (“OWBPA”), filed or threatened to be filed by Executive or
on Executive’s behalf based on Executive’s employment, terms of employment, or separation from, Employer. Executive
understands that any Consideration paid to Executive pursuant to this Agreement may be deducted from any monetary award he may
receive as a result of a successful ADEA and/or OWBPA claim or challenge to this Agreement and Release. This does not preclude
Executive from eligibility for unemployment benefits, and does not preclude or obstruct Executive’s right to file a Charge
with the Equal Employment Opportunity Commission (“EEOC”).

 

10.
Return of Property. Executive shall return, on or before the Termination Date, all Employer property in Executive’s
possession or control, including but not limited to any business or operating plans, board meeting materials, supplier or vendor
information, customer information, Confidential Information (as defined in Section 14 below) drawings, orders, files, documents,
notes, computers, laptop computers, fax machines, cell phones, smart devices, access cards, fobs, keys, reports, manuals, records,
product samples, correspondence and/or other documents or materials related to Employer’s business that Executive has compiled,
generated or received while working for Employer, including all electronically stored information, copies, samples, computer data,
disks, or records of such materials. Executive must return to Employer, and Executive shall not retain, any Employer property
as previously defined in this section.

 

11.
Agreement Not to Seek Future Employment. Executive agrees that he will never knowingly seek nor accept employment or a
consulting/independent contractor relationship with Employer, nor any other entity owned by Xtant Medical Holdings, Inc., either
directly or through a consulting firm.

 

12.
Withholding For Amounts Owed to Employer. Execution of this Agreement shall constitute Executive’s authorization
for Employer to make deductions from Executive’s Consideration for Executive’s indebtedness to Employer, or to repay
Employer for unaccrued Paid Time Off already taken, employee purchases, wage or benefit overpayment, or other Employer claims
against Executive, to the extent permitted by applicable law.

 

13.
Non-Disparagement. Executive agrees that, unless it is in the context of an EEOC or other civil rights or other government
enforcement agency investigation or proceeding, Executive will make no critical, disparaging or defamatory comments regarding
the performance of Employer’s business or the business reputation of the Employer or of any Released Party, as defined in
the Release. Employer agrees that, unless it is in the context of an EEOC or other civil rights or other government enforcement
agency investigation or proceeding, Employer, its controlling shareholder, officers and directors will make no critical, disparaging
or defamatory comments regarding the Executive’s performance or the business reputation of the Executive. Furthermore, Executive
agrees not to assist or encourage in any way any individual or group of individuals to bring or pursue a lawsuit, charge, complaint,
or grievance, or make any other demands against Employer or any Released Party. This provision does not prohibit Executive from
participating in an EEOC or other civil rights or other government enforcement agency charge, investigation or proceeding, or
from providing testimony or documents pursuant to a lawful subpoena or as otherwise required by law.

 

    	3

    	 

    

 

14.
Compliance with Employment Agreement and Protection of Confidential Information. Executive agrees to comply with the provisions
of and the restrictions set forth in his Employment Agreement, attached as Exhibit B hereto. Executive agrees to never
divulge or use any trade secrets, confidential information, or other proprietary information of Employer which Executive obtained
or to which Executive had access during his employment with Employer. For purposes of this latter obligation, “Confidential
Information” means information that is not generally known and that is proprietary to Employer or that Employer is obligated
to treat as proprietary. It includes, but is not limited to, information or data of Employer concerning its business, financial
statements, board meeting materials, customer or patient contact information and data, products, plans, ideas, drawings, designs,
concepts, inventions, discoveries, improvements, patent applications, know-how, trade secrets, prototypes, processes, techniques
and other proprietary information. It does not include information that Executive can establish: (i) is already lawfully in the
possession of Executive through independent means at the time of disclosure thereof; (ii) is or later becomes part of the public
domain through no fault of Executive; (iii) is lawfully received by Executive from a third party having no obligations of confidentiality
to Employer; or (iv) is required to be disclosed by order of a governmental agency or by a court of competent jurisdiction. Any
information that Executive knows or should reasonably know is Confidential Information, or that Employer reasonably treats as
Confidential Information, will be presumed to be Confidential Information.

 

15.
Confidentiality. It is the intent of Employer and Executive that the terms of this Agreement be treated as Confidential,
except to the extent this Agreement is required to be disclosed under applicable federal securities laws, as determined by Employer.
Executive warrants that he has not and agrees that he will not in the future disclose the terms of this Agreement, or the terms
of the Consideration to be paid by Employer to Executive as part of this Agreement, to any person other than his attorney, tax
advisor, spouse, or representatives of any state or federal regulatory agency, who shall be bound by the same prohibitions against
disclosure as bind Executive, and Executive shall be responsible for advising those individuals or agencies of this confidentiality
provision. Executive shall not provide or allow to be provided to any person this Agreement, or any copies thereof, nor shall
Executive now or in the future disclose the terms of this Agreement to any person, with the sole exception of communications with
Executive’s spouse, attorney and tax advisor, unless otherwise ordered to do so by a court or agency of competent jurisdiction.

 

16.
Invalidity. In case any one or more of the provisions of this Agreement or Release shall be held invalid, illegal or unenforceable
in any respect, the validity, legality and enforceability of the remaining provisions contained in this Agreement and Release
will not in any way be affected or impaired thereby.

 

17.
Non-Admissions. The Parties expressly deny any and all liability or wrongdoing and agree that nothing in this Agreement
or the Release shall be deemed to represent any concession or admission of such liability or wrongdoing or any waiver of any defense.

 

18.
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of Colorado, without reference
to its choice of law rules. Any action for breach or interpretation of this Agreement shall be brought in the federal or state
courts, as appropriate, located in Colorado.

 

19.
Voluntary and Knowing Action. Executive acknowledges that he has had sufficient opportunity to review the terms of this
Agreement and attached Release, and that he has voluntarily and knowingly entered into this Agreement. Employer shall not be obligated
to provide any Consideration to Executive pursuant to this Agreement in the event Executive elects to rescind/revoke the Release.
The Release becomes final and binding on the Parties upon expiration of the rescission/revocation period, provided Executive has
not exercised his option to rescind/revoke the Release. Any attempt by Executive to rescind any part of the Release obligates
Executive to immediately return all Consideration under this Agreement to counsel for Employer.

 

    	4

    	 

    

 

20.
Legal Counsel and Fees. Except as otherwise provided in this Agreement and the Release, the Parties agree to bear their
own costs and attorneys’ fees, if any. Executive acknowledges that Employer, by this Agreement, has advised his that he
may consult with an attorney of his choice prior to executing this Agreement and the Release. Executive acknowledges that he has
had the opportunity to be represented by legal counsel during the negotiation and execution of this Agreement and the Release,
and that he understands he will be fully bound by this Agreement and the Release.

 

21.
Modification. This Agreement may be modified or amended only by a writing signed by both Employer and Executive.

 

22.
Successors and Assigns. This Agreement is binding on and inures to the benefit of the Parties’ respective successors
and assigns.

 

23.
Notices. Any notice, request or demand required or desired to be given hereunder shall be in writing and shall be addressed
as follows:

 

	 	If
    to Employer:	Jeremy
    Carpenter
	 	 	Human
    Resources Director
	 	 	Xtant
    Medical Holdings, Inc.
	 	 	664
    Cruiser Lane
	 	 	Belgrade,
    MT 59714
	 	 	 
	 	With
    a copy to:	Thomas
    A. Letscher
	 	 	Fox
    Rothschild LLP
	 	 	Campbell
    Mithun Tower - Suite 2000
	 	 	222
    South Ninth Street
	 	 	Minneapolis,
    MN 55402-3338
	 	 	 
	 	If
    to Executive:	Carl
    D. O’Connell
	 	 	XXXXXXXX
	 	 	XXXXXXXX

 

Either
Party may change its address by giving the other Party written notice of its new address.

 

24.
Waivers. No failure or delay by either Party in exercising any right or remedy under this Agreement will waive any provision
of this Agreement.

 

25.
Miscellaneous. This Agreement may be executed simultaneously in counterparts, each of which shall be an original, but all
of which shall constitute but one and the same agreement.

 

26.
Entire Agreement. Except for any continuing, post-employment, obligations under Exhibit B, or employment related
Employer policy, or as otherwise provided in this Agreement, this Agreement, the attached Release, and Exhibit B are the
entire Agreement between Employer and Executive relating to his employment and his separation. The Parties understand that this
Agreement and the Release cannot be changed unless it is done in writing and signed by both Employer and Executive.

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK.]

 

    	5

    	 

    

 

	 	EXECUTIVE
	 	 	 
	 	/s/ Carl D. O’Connell
	 	Carl D. O’Connell
	 	Print Name
	 	 	 
	 	Dated: November 29, 2018
	 	 	 
	 	XTANT
    MEDICAL HOLDINGS, INC.
	 	 
	 	By:	Michael
    Mainelli
	 	Its:	Interim
    CEO
	 	 	 
	 	Dated: November 29, 2018

 

    	6

    	 

    

 

EXHIBIT
A

 

RELEASE

 

	I.	Definitions.
    I, Carl D. O’Connell, intend all words used in this release (“Release”) to have their plain meanings
    in ordinary English. Technical legal words are not needed to describe what I mean. Specific terms I use in this Release have
    the following meanings:

 

	 	A.	“I,”
    “Me,” and “My” individually and collectively mean Carl D. O’Connell and anyone
    who has or obtains or asserts any legal rights or claims through Me or on My behalf.
	 	 	 
	 	B.	“Employer”
    as used in this Release, shall at all times mean Xtant Medical Holdings, Inc. and any affiliates, related or predecessor corporations,
    parent corporations or subsidiaries, successors and assigns.
	 	 	 
	 	C.	“Released
    Party” or “Released Parties” as used in this Release, shall at all times mean Xtant Medical Holdings,
    Inc. and its affiliates, related or predecessor corporations, subsidiaries, successors and assigns, present or former officers,
    directors, shareholders, agents, employees, representatives and attorneys, whether in their individual or official capacities,
    and its affiliates, related or predecessor corporations, parent corporations or subsidiaries, successors and assigns, present
    or former officers, directors, shareholders, agents, employees, representatives and attorneys, whether in their individual
    or official capacities, benefit plans and plan administrators, and insurers, insurers’ counsel, whether in their individual
    or official capacities, and the current and former trustees or administrators of any pension, 401(k), or other benefit plan
    applicable to the employees or former employees of Employer, in their official and individual capacities.
	 	 	 
	 	D.

	“My
    Claims” mean any and all of the actual or potential claims of any kind whatsoever I may have had, or currently may
    have against Employer or any Released Party, whether known or unknown, that are in any way related to My employment with or
    separation from employment with Employer, including, but not limited to any claims for: invasion of privacy; breach of written
    or oral, express or implied, contract; fraud; misrepresentation; violation of the Age Discrimination in Employment Act of
    1967 (“ADEA”), 29 U.S.C. § 626, as amended; the Genetic Information Nondiscrimination Act of 2008
    (“GINA”), 42 U.S.C. § 2000, et seq., the Older Workers Benefit Protection Act of 1990 (“OWBPA”),
    29 U.S.C. § 626(f), Title VII of the Civil Rights Act of 1964 (“Title VII”), 42 U.S.C. § 2000e,
    et seq., the Americans with Disabilities Act (“ADA”), 29 U.S.C. § 2101, et seq., and as amended
    (“ADAAA”), the Employee Retirement Income Security Act of 1974 (“ERISA”), as amended,
    29 U.S.C. § 1001, et seq., Equal Pay Act (“EPA”), 29 U.S.C. § 206(d), the Worker Adjustment
    and Retraining Notification Act (“WARN”), 29 U.S.C. § 2101, et seq., the Family and Medical
    Leave Act (“FMLA”), 29 U.S.C. § 2601, et seq.; National Labor Relations Act, 29 U.S.C. §
    141, et seq., Colorado’s Anti-Discrimination Act, as amended, Colorado’s Wage Claim Act, the Colorado Labor
    Peace Act, and all other Colorado statutes, regulations, and principles of common law, and related claims, the False Claims
    Act, 31 U.S.C. § 3729, et seq., Anti-Kickback Statute, 42 U.S.C. § 1320a, et seq., the Minnesota Human
    Rights Act, Minn. Stat. § 363A.01, et seq., Minn. Stat. § 181, et seq., the Minnesota Whistleblower
    Act, Minn. Stat. § 181.931, et seq., the Montana Human Rights Act, Mont. Code Ann. § 49-1-101, et seq.,
    the Montana Wrongful Discharge for Employment Act, Mont. Code Ann. § 39-2-901, et seq., the Montana Wage Payment
    Act, Mont. Code Ann. § 39-3-201, et. seq., or any and all other Colorado, Minnesota, and Montana, and other state
    human rights or fair employment practices statutes, administrative regulations, or local ordinances, and any other Colorado,
    Minnesota, and Montana, or other federal, state, local or foreign statute, law, rule, regulation, ordinance or order, all
    as amended. This includes, but is not limited to, claims for violation of any civil rights laws based on protected class status;
    claims for assault, battery, defamation, intentional or negligent infliction of emotional distress, breach of the covenant
    of good faith and fair dealing; promissory estoppel; negligence; negligent hiring; retention or supervision; retaliation;
    constructive discharge; violation of whistleblower protection laws; unjust enrichment; violation of public policy; and, all
    other claims for unlawful employment practices, and all other common law or statutory claims.

 

    	 

    	 

    

 

	II.	Agreement
    to Release My Claims. Except as stated in Section V of this Release, I agree to release all My Claims and waive any
    rights to My Claims. I also agree to withdraw any and all of My charges and lawsuits against Employer; except that
    I may, but am not required to, withdraw or dismiss, or attempt to withdraw or dismiss, any charges that I may have pending
    against Employer with the Employment Opportunity Commission (“EEOC”) or other civil rights enforcement
    agency. In exchange for My agreement to release My Claims, I am receiving satisfactory Consideration from Employer to which
    I am not otherwise entitled by law, contract, or under any Employer policy. The Consideration I am receiving is a full and
    fair consideration for the release of all My Claims. Employer does not owe Me anything in addition to what I will be receiving
    according to the Separation Agreement which I have signed.
	 	 
	III.	Unknown
    Claims. In waiving and releasing any and all actual, potential, or threatened claims against Employer, whether or
    not now known to me, I understand that this means that if I later discover facts different from or in addition to those facts
    currently known by me, or believed by me to be true, the waivers and releases of this Release will remain effective in all
    respects – despite such different or additional facts and my later discovery of such facts, even if I would not have
    agreed to the Separation Agreement and this Release if I had prior knowledge of such facts.
	 	 
	IV.	Confirmation
    of No Claims, Etc. I am not aware of any other facts, evidence, allegations, claims, liabilities, or demands relating
    to alleged or potential violations of law that may give rise to any claim or liability on the part of any Released Party under
    the Securities Exchange Act of 1934, the Sarbanes–Oxley Act of 2002, the Dodd-Frank Wall Street Reform and Consumer
    Protection Act, the False Claims Act, the Anti-kickback Statute. I understand that nothing in this Release interferes with
    My right to file a complaint, charge or report with any law enforcement agency, with the Securities and Exchange Commission
    (“SEC”) or other regulatory body, or to participate in any manner in an SEC or other governmental investigation
    or proceeding under any such law, statute or regulation, or to require notification or prior approval by Employer of any such
    a complaint, charge or report. I understand and agree, however, that I waive My right to recover any whistleblower award under
    the Securities Exchange Act of 1934, the Sarbanes–Oxley Act of 2002, the Dodd-Frank Wall Street Reform and Consumer
    Protection Act, or other individual relief in any administrative or legal action whether brought by the SEC or other governmental
    or law enforcement agency, Me, or any other party, unless and to the extent that such waiver is contrary to law. I agree that
    the Released Parties reserve any and all defenses which they might have against any such allegations or claims brought by
    Me or on My behalf. I understand that Employer is relying on My representations in this Release and related Separation Agreement.

 

	V.	Exclusions
    from Release.

 

	 	A.	The
    term “Claims” does not include My rights, if any, to claim the following: unemployment insurance benefits; workers
    compensation benefits; claims for My vested post-termination benefits under any 401(k) or similar retirement benefit plan;
    My rights to group medical or group dental insurance coverage pursuant to section 4980B of the Internal Revenue Code of 1986,
    as amended (“COBRA”); My right to enforce Paragraph 12A of the Employment Agreement; My rights to enforce
    the terms of the Separation Agreement; My rights to enforce the terms of this Release; or My rights to assert claims that
    are based on events occurring after this Release becomes effective.

 

    	2

    	 

    

 

	 	B.	Nothing
    in this Release interferes with My right to file or maintain a charge with the Equal Employment Opportunity Commission or
    other local civil rights enforcement agency, or participate in any manner in an EEOC or other such agency investigation or
    proceeding. I, however, understand that I am waiving My right to recover individual relief including, but not limited to,
    back pay, front pay, reinstatement, attorneys’ fees, and/or punitive damages, in any administrative or legal action
    whether brought by the EEOC or other civil rights enforcement agency, Me, or any other party.
	 	 	 
	 	C.	Nothing
    in this Release interferes with My right to challenge the knowing and voluntary nature of this Release under the ADEA and/or
    OWBPA.
	 	 	 
	 	D.	I
    agree that Employer reserves any and all defenses, which it has or might have against any claims brought by Me. This includes,
    but is not limited to, Employer’s right to seek available costs and attorneys’ fees as allowed by law, and to
    have any monetary award granted to Me, if any, reduced by the amount of money that I received in consideration for this Release.

 

	VI.	Older
    Workers Benefit Protection Act. The Older Workers Benefit Protection Act applies to individuals age 40 and older and
    sets forth certain criteria for such individuals to waive their rights under the Age Discrimination in Employment Act in connection
    with an exit incentive program or other employment termination program. I understand and have been advised that, if applicable,
    the above release of My Claims is subject to the terms of the OWBPA. The OWBPA provides that a covered individual cannot waive
    a right or claim under the ADEA unless the waiver is knowing and voluntary. If I am a covered individual, I acknowledge that
    I have been advised of this law, and I agree that I am signing this Release voluntarily, and with full knowledge of its consequences.
    I understand that Employer is giving Me twenty-one (21) days from the date I received a copy of this Release to decide whether
    I want to sign it. I acknowledge that I have been advised to use this time to consult with an attorney about the effect of
    this Release. If I sign this Release before the end of the twenty-one (21) day period it will be My personal, voluntary decision
    to do so, and will be done with full knowledge of My legal rights. I agree that material and/or immaterial changes to the
    Separation Agreement or this Release will not restart the running of this consideration period. I also acknowledge that the
    Separation Agreement, this Release and any other attachments or exhibits have each been written in a way that I understand.

 

    	3

    	 

    

 

	VII.	Right
    to Rescind and/or Revoke. I understand that insofar as this Release relates to My rights under the Minnesota Human
    Rights Act, it shall not become effective or enforceable until fifteen (15) days after I sign it. Any revocation must be in
    writing and hand-delivered to Employer or, if sent by mail, postmarked within the applicable time period, sent by certified
    mail, return receipt requested, and addressed as follows:

 

	 	A.	post-marked
    within the fifteen (15) day revocation period;
	 	 	 
	 	B.	properly
    addressed to:
	 	 	 
	 	 	Jeremy
    Carpenter
	 	 	Human
    Resources Director
	 	 	Xtant
    Medical Holdings, Inc.
	 	 	664
    Cruiser Lane
	 	 	Belgrade,
    MT 59714
	 	 	 
	 	C.	sent
    by certified mail, return receipt requested.
	 	 	 
	 	I
    understand that the Consideration I am receiving for settling and releasing My Claims is contingent upon My agreement to be
    bound by the terms of this Release. Accordingly, if I decide to rescind or revoke this Release, I understand that I am not
    entitled to the Consideration described in the Separation Agreement. I further understand that if I attempt to rescind or
    revoke My release of any claim, I must immediately return to Employer all Consideration I have received under My Agreement.

 

	VIII.	I
    Understand the Terms of this Release. I have had the opportunity to read this Release carefully and understand all
    its terms. I have had the opportunity to review this Release with My own attorney. In agreeing to sign this Release, I have
    not relied on any oral statements or explanations made by Employer, including its employees or attorneys. I understand and
    agree that this Release and the attached Agreement contain all the agreements between Employer and Me. We have no other written
    or oral agreements.

 

	 	/s/
    Carl D. O’Connell
	 	Carl
    D. O’Connell
	 	Dated:
    November 29, 2018

 

    	4EMPLOYMENT
AGREEMENT

 

This
Employment Agreement (“Agreement”) is effective as of July 9, 2018 (“Effective Date”), by
and between Xtant Medical Holdings, Inc., a Delaware corporation (the “Company”), and Kevin D. Brandt, an individual
(“Employee”). The Company and Employee are sometimes referred to as the “Parties” or “Party”
in this Agreement, and the Company may designate a subsidiary to be the employer of the Employee.

 

In
consideration of the mutual promises, covenants and agreements contained in this Agreement, and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

1.
EMPLOYMENT AND DUTIES.

 

A.
Job Title and Responsibilities. The Company hereby employs Employee, and Employee hereby agrees to be employed, as Vice
President and Chief Commercial Officer (together with such other position or positions consistent with Employee’s title
as the Company’s Chief Executive Officer may specify from time to time), reporting to the Chief Executive Officer and will
have such duties and responsibilities commensurate with such title.

 

B.
Full-Time Best Efforts. Employee agrees to devote Employee’s full professional time and attention to the business
of the Company (and its subsidiaries, affiliates, or related entities) and the performance of Employee’s obligations under
this Agreement, and will at all times faithfully, industriously and to the best of Employee’s ability, experience and talent,
perform all of Employee’s obligations hereunder. Employee shall not, at any time during Employee’s employment by the
Company, directly or indirectly, act as a partner, officer, director, consultant or employee, or provide services in any other
capacity to any other business enterprise that conflicts with the Company’s business or Employee’s duty of loyalty
to the Company. Employee shall seek the written consent of the Company prior to accepting any outside board positions.

 

C.
Duty of Loyalty. Employee acknowledges that during Employee’s employment with the Company, Employee has participated
in and will participate in relationships with existing and prospective clients, customers, partners, suppliers, service providers
and vendors of the Company that are essential elements of the Company’s goodwill. The parties acknowledge that Employee
owes the Company a fiduciary duty to conduct all affairs of the Company in accordance with all applicable laws and the highest
standards of good faith, trust, confidence and candor, and to endeavor, to the best of Employee’s ability, to promote the
best interests of the Company.

 

D.
Conflict of Interest. Employee agrees that while employed by the Company, and except with the advance written consent of
the Company’s Board of Directors (the “Board”), Employee will not enter into, on behalf of the Company,
or cause the Company or any of its affiliates to enter into, directly or indirectly, any transactions with any business organization
in which Employee or any member of Employee’s immediate family may be interested as a shareholder, partner, member, trustee,
director, officer, employee, consultant, lender or guarantor or otherwise; provided, however, that nothing in this
Agreement shall restrict transactions between the Company and any company whose stock is listed on a national securities exchange
or actively traded in the over-the-counter market and over which Employee does not have the ability to control or significantly
influence policy decisions.

 

    	 

    	 

    

 

2.
COMPENSATION.

 

A.
Base Pay. The Company agrees to pay Employee gross annual compensation of $400,000 (“Base Salary”),
less usual and customary withholdings, which shall be payable in arrears in accordance with the Company’s customary payroll
practices. The Base Salary will be subject to normal periodic review, and such review will consider Employee’s contributions
to the Company and the Company’s overall performance.

 

B.
Bonus and Incentive Compensation. Employee shall be eligible for bonus and incentive based compensation approved by the
Board (or a committee thereof) from time to time. The target annual bonus compensation will be 50% of Employee’s Base Salary,
except that for the 2018 calendar year, Employee shall only be eligible to receive a pro-rated bonus, with such proration based
on Employee’s start date, which bonus shall be contingent upon the achievement of performance objectives as established
by the Board (or a committee thereof) and communicated to Employee. Such bonus and incentive compensation shall be less all tax
withholdings and other applicable deductions the Company reasonably determines are required to be made. Except as otherwise provided
in this Agreement, with respect to the annual bonus compensation, Employee must remain continuously employed by the Company through
the date such bonus compensation is paid to be eligible to receive it and shall be paid no later than March 15 of the calendar
year immediately following the calendar year in which the bonus is being measured.

 

C.
Annual Equity Award. Subject to approval by the Board (or a committee thereof), Employee shall be granted annual equity-based
compensation awards pursuant to the Xtant Medical Holdings, Inc. 2018 Equity Incentive Plan or a successor plan thereto (such
plan, the “Plan”); provided that the target grant date value of such awards granted each year while
Employee is employed by the Company shall be not less than 50% of Employee’s Base Salary. Notwithstanding the foregoing,
for the 2018 calendar year, Employee shall only be eligible to receive a pro-rated equity-based compensation award, with such
proration based on Employee’s start date. The type of equity award(s) and vesting terms will be in the sole discretion of
the Board (or a committee thereof).

 

D.
Signing Benefits. The Company shall provide Employee the following one-time benefits: (1) a signing bonus of $90,000 (the
“Signing Bonus”) to be paid no later than February 28, 2019, and (2) forty thousand (40,000) restricted stock
units in accordance with the Plan (collectively, the “RSUs”), which RSUs shall be subject to approval by the
Board and shall vest in their entirety on the third year anniversary of the Effective Date, assuming Employee is still an employee
of the Company as of such date. In the event Employee terminates his employment with the Company on or prior to the one (1) year
anniversary of the Effective Date, Employee shall repay to the Company the Signing Bonus.

 

E.
Benefits. During Employee’s employment, Employee will be eligible to participate in the Company’s benefit programs,
as summarized and as governed by any plan documents concerning such benefits. Employee acknowledges that the Company may amend,
modify or terminate any of its benefit plans or programs at any time and for any reason. Employee will be eligible for 20 days
of paid vacation per year, subject to the Company’s carryover policy for unused vacation in effect from time to time. The
Company will also provide Employee with a $250,000 life insurance policy.

 

G.
Clawback. Employee agrees that any compensation or benefits provided by the Company under this Agreement or otherwise will
be subject to recoupment or clawback by the Company under any applicable clawback or recoupment policy of the Company as may be
in effect from time-to-time or as required by applicable law, regulation or stock exchange listing requirement.

 

    	 

    	 

    

 

3.
CONFIDENTIAL INFORMATION.

 

A.
Employee understands that during Employee’s employment relationship with the Company, the Company intends to provide Employee
with information, including Confidential Information (as defined herein), without which Employee would not be able to perform
Employee’s duties to the Company. Employee agrees, at all times during the term of Employee’s employment relationship
and thereafter, to hold in strictest confidence, and not to use or disclose, except for the benefit of the Company to the extent
necessary to perform Employee’s obligations to the Company, any Confidential Information that Employee obtains, accesses
or creates during the term of the relationship, whether or not during working hours, until such Confidential Information becomes
publicly and widely known and made generally available through no wrongful act of Employee or of others under confidentiality
obligations as to the information involved. Employee understands that “Confidential Information” means information
and physical material not generally known or available outside the Company and information and physical material entrusted to
the Company by third parties under an obligation of non-disclosure or non-use or both. “Confidential Information”
includes, without limitation, inventions, technical data, trade secrets, clinical data, regulatory information and strategies,
marketing ideas or plans, research, product or service ideas or plans, business strategies, investments, investment opportunities,
potential investments, market studies, industry studies, historical financial data, financial information and results, budgets,
identity of customers, forecasts (financial or otherwise), possible or pending transactions, customer lists and domain names,
price lists, and pricing methodologies.

 

B.
At all times, both during Employee’s employment and after its termination, Employee will keep and hold all such Confidential
Information in strict confidence and trust. Employee will not use or disclose any Confidential Information without the prior written
consent of the Company, except as may be necessary to perform Employee’s duties as an employee of the Company for the benefit
of the Company. Employee may disclose information that Employee is required to disclose by valid order of a government agency
or court of competent jurisdiction, provided that Employee will:

 

1.
Notify the Company in writing immediately upon learning that such an order may be sought or issued,

 

2.
Cooperate with the Company as reasonably requested if the Company seeks to contest such order or to place protective restrictions
on the disclosure pursuant to such order, and

 

3.
Comply with any protective restrictions in such order, and disclose only the information specified in the order.

 

C.
Upon termination of employment with the Company, Employee will promptly deliver to the Company all documents and materials of
any nature pertaining to Employee’s work with the Company.

 

D.
Employee agrees not to infringe the copyrights of the Company, its customers or third parties (including, without limitation,
Employee’s previous employer, customers, etc.) by unauthorized or unlawful copying, modifying or distributing of copyrighted
material, including plans, drawings, reports, financial analyses, market studies, computer software and the like.

 

    	 

    	 

    

 

4.
COVENANT NOT TO COMPETE.

 

A.
Non-competition Covenant. Employee agrees that during the Restricted Period (as defined below), without the prior written
consent of the Company, Employee shall not, directly or indirectly within the Territory (as defined below): (i) personally, by
agency, as an employee, independent contractor, consultant, officer, director, manager, agent, associate, investor (other than
as a passive investor holding less than five percent of the outstanding equity of an entity), or by any other artifice or device,
engage in any Competitive Business (as defined below), (ii) assist others, including but not limited to employees of the Company,
to engage in any Competitive Business, or (iii) own, purchase, finance, purchase, finance, or organize a Competitive Business.

 

B.
Definitions.

 

1.
“Competitive Business” means (i) any person, entity or organization which is engaged in, consulting regarding,
or development, production, marketing or selling of any product, process, technology, device, invention or service which resembles,
competes with or is intended to resemble or compete with a product, process, technology, device, invention or service under research
or development or being promoted, marketed, sold or serviced by the Company or any subsidiary; or (ii) any other line of business
that the Company or any subsidiary, is actively preparing to pursue at any time during the term of Employee’s employment
with the Company and in which Employee is involved.

 

2.
“Territory” means the United States of America.

 

3.
“Restricted Period” means the period of Employee’s employment with the Company and for a period of twelve
(12) months following the termination of Employee’s employment.

 

5.
NON-SOLICITATION AND NON-INTERFERENCE COVENANTS.

 

A.
Non-solicitation of Employees and Others. During the Restricted Period, (i) Employee shall not, directly or indirectly,
solicit, recruit, or induce, or attempt to solicit, recruit or induce any employee, consultant, independent contractor, vendor,
supplier, or agent to terminate or otherwise adversely affect his or her employment or other business relationship (or prospective
employment or business relationship) with the Company, and (ii) Employee shall not, directly or indirectly, solicit, recruit,
or induce, or attempt to solicit, recruit or induce any employee to work for Employee or any other person or entity, other than
the Company or its affiliates or related entities.

 

B.
Non-solicitation of Customers. During the Restricted Period, Employee shall not, directly or indirectly, solicit, recruit,
or induce any Customer (as defined below) for the purpose of (i) providing any goods or services related to a Competitive Business,
or (ii) interfering with or otherwise adversely affecting the contracts or relationships, or prospective contracts or relationships,
between the Company (including any related or affiliated entities) and such Customers. “Customer” means a person
or entity with which Employee had contact or about whom Employee gained information while an Employee of the Company, and to which
the Company was selling or providing products or services, was in active negotiations for the sale of its products or services,
or was otherwise doing business as of the date of the cessation of Employee’s employment with the Company or for whom the
Company had otherwise done business within the twelve (12) month period immediately preceding the cessation of Employee’s
employment with the Company.

 

6.
ACKNOWLEDGEMENTS. Employee acknowledges and agrees that:

 

A.
The geographic and duration restrictions contained in Paragraphs 4 and 5 of this Agreement are fair, reasonable, and necessary
to protect the Company’s legitimate business interests and trade secrets, given the geographic scope of the Company’s
business operations, the competitive nature of the Company’s business, and the nature of Employee’s position with
the Company;

 

    	 

    	 

    

 

B.
Employee’s employment creates a relationship of confidence and trust between Employee and the Company with respect to the
Confidential Information, and Employee will have access to Confidential Information (including but not limited to trade secrets)
that would be valuable or useful to the Company’s competitors;

 

C.
The Company’s Confidential Information is a valuable asset of the Company, and any violation of the restrictions set forth
in this Agreement would cause substantial injury to the Company;

 

D.
The restrictions contained in this Agreement will not unreasonably impair or infringe upon Employee’s right to work or earn
a living after Employee’s employment with the Company ends; and

 

E.
This Agreement is a contract for the protection of trade secrets under applicable law and is intended to protect the Confidential
Information (including trade secrets) identified above.

 

7.
“BLUE PENCIL” AND SEVERABILITY PROVISION. If a court of competent jurisdiction declares any provision of this
Agreement invalid, void, voidable, or unenforceable, the court shall reform such provision(s) to render the provision(s) enforceable,
but only to the extent absolutely necessary to render the provision(s) enforceable and only in view of the parties’ express
desire that the Company be protected to the greatest possible extent under applicable law from improper competition and the misuse
or disclosure of trade secrets and Confidential Information. To the extent such a provision (or portion thereof) may not be reformed
so as to make it enforceable, it may be severed and the remaining provisions shall remain fully enforceable.

 

8.
INVENTIONS.

 

A.
Inventions Retained and Licensed. Attached as Exhibit A is a list describing all inventions and information created, discovered
or developed by Employee, whether or not patentable or registrable under patent, copyright or similar statutes, made or conceived
or reduced to practice or learned by Employee, either alone or with others before Employee’s employment with the Company
(“Prior Inventions”), which belong in whole or in part to Employee, and which are not being assigned by Employee
to the Company. Employee represents that Exhibit A is complete and contains no confidential or Confidential information belonging
to a person or entity other than Employee. Employee acknowledges and agrees that Employee has no rights in any Inventions (as
that term is defined below) other than the Prior Inventions listed on Exhibit A. If there is nothing identified on Exhibit A,
Employee represents that there are no Prior Inventions as of the time of signing this Agreement. Employee shall not incorporate,
or permit to be incorporated, any Prior Invention owned by Employee or in which he has an interest in a Company product, process
or machine without the Company’s prior written consent. Notwithstanding the foregoing, if, in the course of Employee’s
employment with the Company, Employee directly or indirectly incorporates into a Company product, process or machine a Prior Invention
owned by Employee or in which Employee has an interest, the Company is hereby granted and shall have a non-exclusive, royalty-free,
irrevocable, perpetual, world-wide license to make, have made, modify, use, create derivative works from and sell such Prior Invention
as part of or in connection with such product, process or machine.

 

    	 

    	 

    

 

B.
Assignment of Inventions. Employee shall promptly make full, written disclosure to the Company, will hold in trust for
the sole right and benefit of the Company, and hereby irrevocably transfers and assigns, and agrees to transfer and assign, to
the Company, or its designee, all his right, title and interest in and to any and all inventions, original works of authorship,
developments, concepts, improvements, designs, discoveries, ideas, trademarks (and all associated goodwill), mask works, or trade
secrets, whether or not they may be patented or registered under copyright or similar laws, which Employee may solely or jointly
conceive or develop or reduce to practice, or cause to be conceived or developed or reduced to practice, during Employee’s
employment by the Company (the “Inventions”). Employee further acknowledges that all original works of authorship
which are made by Employee (solely or jointly with others) within the scope of and during the period of his employment with the
Company and which may be protected by copyright are “Works Made For Hire” as that term is defined by the United
States Copyright Act. Employee understands and agrees that the decision whether to commercialize or market any Invention developed
by Employee solely or jointly with others is within the Company’s sole discretion and the Company’s sole benefit and
that no royalty will be due to Employee as a result of the Company’s efforts to commercialize or market any such invention.

 

Employee
recognizes that Inventions relating to his activities while working for the Company and conceived or made by Employee, whether
alone or with others, within one (1) year after cessation of Employee’s employment, may have been conceived in significant
part while employed by the Company. Accordingly, Employee acknowledges and agrees that such Inventions shall be presumed to have
been conceived during Employee’s employment with the Company and are to be, and hereby are, assigned to the Company unless
and until Employee has established the contrary.

 

The
requirements of this Paragraph 8B do not apply to any intellectual property for which no equipment, supplies, facility or trade
secret information of the Company was used, and which was developed entirely on the Employee’s own time, and (i) which does
not relate (x) directly to the Company’s business or (y) to the Company’s actual or demonstrably anticipated research
and development or (ii) which does not result from any work the Employee performed for the Company.

 

C.
Maintenance of Records. Employee agrees to keep and maintain adequate and current written records of all Inventions made
by Employee (solely or jointly with others) during his employment with the Company. The records will be in the form of notes,
sketches, drawings and any other format that may be specified by the Company. The records will be available to and remain the
sole property of the Company at all times.

 

D.
Patent, Trademark and Copyright Registrations. Employee agrees to assist the Company, or its designee, at the Company’s
expense, in every proper way to secure the Company’s rights in the Inventions and any copyrights, patents, trademarks, service
marks, mask works, or any other intellectual property rights in any and all countries relating thereto, including, but not limited
to, the disclosure to the Company of all pertinent information and data with respect thereto, the execution of all applications,
specifications, oaths, assignments and all other instruments the Company reasonably deems necessary in order to apply for and
obtain such rights and in order to assign and convey to the Company, its successors, assigns, and nominees the sole and exclusive
rights, title, and interest in and to such inventions, and any copyrights, patents, trademarks, service marks, mask works, or
any other intellectual property rights relating thereto. Employee further agrees that his obligation to execute or cause to be
executed, when it is in his power to do so, any such instrument or paper shall continue after termination or expiration of this
Agreement or the cessation of his employment with the Company. If the Company is unable because of Employee’s mental or
physical incapacity or for any other reason, after reasonably diligent efforts, to secure Employee’s signature to apply
for or to pursue any application for any United States or foreign patents, trademarks or copyright registrations covering inventions
or original works of authorship assigned to the Company as above, then Employee hereby irrevocably designates and appoints the
Company and its duly authorized officers and agents as Employee’s agent and attorney-in-fact to act for and in his behalf
and stead to execute and file any such applications and to do all other lawfully permitted acts to further the prosecution and
issuance of letters patent, trademarks or copyright registrations thereon with the same legal force and effect as if executed
by Employee; this power of attorney shall be a durable power of attorney which shall come into existence upon Employee’s
mental or physical incapacity.

 

    	 

    	 

    

 

9.
SURVIVAL AND REMEDIES. Employee’s obligations of nondisclosure, non-solicitation, non-interference, and non-competition
under this Agreement shall survive the cessation of Employee’s employment with the Company and shall remain enforceable.
In addition, Employee acknowledges that upon a breach or threatened breach of any obligation of nondisclosure, non-solicitation,
non-interference, or noncompetition of this Agreement, the Company may suffer irreparable harm and damage for which money alone
cannot fully compensate the Company. Employee therefore agrees that upon such breach or threat of imminent breach of any such
obligation, the Company shall be entitled to seek a temporary restraining order, preliminary injunction, permanent injunction
or other injunctive relief, without posting any bond or other security, barring Employee from violating any such provision. This
Paragraph shall not be construed as an election of any remedy, or as a waiver of any right available to the Company under this
Agreement or the law, including the right to seek damages from Employee for a breach of any provision of this Agreement and the
right to require Employee to account for and pay over to the Company all profits or other benefits derived or received by Employee
as the result of such a breach, nor shall this Paragraph be construed to limit the rights or remedies available under state law
for any violation of any provision of this Agreement.

 

10.
RETURN OF COMPANY PROPERTY. All devices, records, reports, data, notes, compilations, lists, proposals, correspondence, specifications,
equipment, drawings, blueprints, manuals, DayTimers, planners, calendars, schedules, discs, data tapes, financial plans and information,
or other recorded matter, whether in hard copy, magnetic media or otherwise (including all copies or reproductions made or maintained,
whether on the Company’s premises or otherwise), pertaining to Employee’s work for the Company, or relating to the
Company or the Company’s Confidential Information, whether created or developed by Employee alone or jointly during his
employment with the Company, are the exclusive property of the Company. Employee shall surrender the same (as well as any other
property of the Company) to the Company upon its request or promptly upon the cessation of employment. Upon cessation of Employee’s
employment, Employee agrees to sign and deliver the “Termination Certificate” attached as Exhibit B,
which shall detail all Company property that is surrendered upon cessation of employment.

 

11.
NO CONFLICTING AGREEMENTS OR IMPROPER USE OF THIRD-PARTY INFORMATION. During his employment with the Company, Employee shall
not improperly use or disclose any Confidential information or trade secrets of any former employer or other person or entity,
and Employee shall not bring on to the premises of the Company any unpublished document or Confidential information belonging
to any such former employer, person or entity, unless consented to in writing by the former employer, person or entity. Employee
represents that he has not improperly used or disclosed any Confidential information or trade secrets of any other person or entity
during the application process or while employed or affiliated with the Company. Employee also acknowledges and agrees that he
is not subject to any contract, agreement, or understanding that would prevent Employee from performing his duties for the Company
or otherwise complying with this Agreement. To the extent Employee violates this provision, or his employment with the Company
constitutes a breach or threatened breach of any contract, agreement, or obligation to any third party, Employee shall indemnify
and hold the Company harmless from all damages, expenses, costs (including reasonable attorneys’ fees) and liabilities incurred
in connection with, or resulting from, any such violation or threatened violation.

 

12.
TERMINATION.

 

A.
By Either Party. Either Party may terminate the Employee’s at-will employment at any time with or without notice,
and with or without cause. Except as provided in this Paragraph 12, upon termination of employment, Employee shall only be entitled
to Employee’s accrued but unpaid Base Salary and other benefits earned under any Company-provided plans, policies and arrangements
for the period preceding the effective date of the termination of employment.

 

    	 

    	 

    

 

B.
Termination Without Cause. If the Company terminates Employee’s employment without Cause (defined below), Employee
shall be entitled to receive continuing severance pay at a rate equal to Employee’s Base Salary, as then in effect, for
twelve (12) months from the date of termination of employment, less all required tax withholdings and other applicable deductions,
payable in accordance with the Company’s standard payroll procedures, commencing on the effective date of a Separation Agreement
and Release of claims against the Company that has not been revoked, in substantially the form of Exhibit C attached hereto,
the timely execution and performance by Employee of which is specifically a condition to his receipt of any of the payments and
benefits provided under this Paragraph 12B; provided that (1) such Separation Agreement and Release shall be executed and
be fully effective within seventy (70) days of the Employee’s termination of employment; (2) the first payment shall include
any amounts that would have been paid to Employee if payment had commenced on the date of termination of employment; and (3) Employee
shall not be required to execute a release of any claims arising from the Company’s failure to comply with its obligations
under Paragraph 12A. If Employee timely and effectively elects continuation coverage under the Company’s group health plan
pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”) or similar state law, the
Company will pay or reimburse the premiums for such coverage of Employee (and his dependents, as applicable) at the same rate
it pays for active employees for a period for twelve (12) months from the date of termination of employment; provided that
the Company’s obligation to make such payments shall immediately expire if Employee ceases to be eligible for continuation
coverage under COBRA or similar state law or otherwise terminates such coverage. Notwithstanding the foregoing, any of the foregoing
payments due under this Paragraph 12B shall commence within seventy (60) days of Employee’s termination of employment, provided
that if such seventy (70)-day period spans two (2) calendar years, payments shall commence in the latter calendar year. In
addition to the foregoing and subject to Employee’s execution of a Separation Agreement and Release of claims against the
Company that has been executed and not revoked within any applicable rescission period that has expired within seventy (70) days
of the Employee’s termination of employment, Employee shall be entitled to the pro-rated amount of any unpaid bonus for
the calendar year in which his termination of employment occurs, if earned pursuant to the terms thereof and at such time and
in such manner as determined by the Board (or a committee thereof) in its sole discretion pursuant to the terms thereof, less
any payments thereof already made during such year.

 

C.
Termination Upon a Change in Control. If the Company or any successor in interest to the Company terminates Employee’s
employment without Cause in connection with or within twelve (12) months after a Change in Control (defined below) or if Employee
terminates his employment for Good Reason (defined below) within twelve (12) months after a Change in Control, Employee shall
be entitled to receive (i) his accrued but unpaid Base Salary and other benefits earned under any Company-provided plans, policies
and arrangements for the period preceding the effective date of the termination of employment, and (ii) a lump-sum payment equal
to two times Employee’s Base Salary, as then in effect, less all tax withholdings and other applicable deductions the Company
reasonably determines are required to be made, payable on the first regular payroll date after the effective date of a Separation
Agreement and Release that has been executed and not revoked within any applicable rescission period that has expired within seventy
(70) days of the Employee’s termination of employment, in substantially the form of Exhibit C attached hereto, the
execution and performance by Employee of which is specifically a condition to his receipt of any of the payments and benefits
provided under this Paragraph 12C; provided that Employee shall not be required to execute a release of any claims arising
from the Company’s failure to comply with its obligations under Paragraph 12A. If Employee timely and effectively elects
continuation coverage under the Company’s group health plan pursuant to COBRA or similar state law, the Company will pay
or reimburse the premiums for such coverage of Employee (and his dependents, as applicable) at the same rate it pays for active
employees for a period for twelve (12) months from the date of termination of employment; provided that the Company’s
obligation to make such payments shall immediately expire if Employee ceases to be eligible for continuation coverage under COBRA
or similar state law or otherwise terminates such coverage. Notwithstanding the previous provisions of this Paragraph 12C, any
payments due under this Paragraph 12C shall commence within seventy (70) days of Employee’s termination of employment, provided
that if such seventy (70)-day period spans two calendar years, payments shall commence in the latter calendar year. In addition
to the foregoing and subject to Employee’s timely execution of a Separation Agreement and Release that has been executed
and not revoked within any applicable rescission period that has expired within seventy (70) days of the Employee’s termination
of employment, Employee shall be entitled to the immediate vesting of the RSUs and the pro-rated amount of any unpaid bonus for
the calendar year in which his termination of employment occurs, if earned pursuant to the terms thereof and at such time and
in such manner as determined by the Board (or a committee thereof) in its sole discretion (but consistent with other bonuses determined
by the Board) pursuant to the terms thereof, less any payments thereof already made during such year. The payments and benefits
described in this Paragraph 12C are in lieu of, and not in addition to, the payments and benefits described in Paragraph 12B,
it being understood by Employee that he shall be paid and receive only one set of severance payments and benefits.

 

    	 

    	 

    

 

D.
Termination for Cause, Death or Disability, or Resignation. If Employee’s employment with the Company terminates
voluntarily by Employee other than for Good Reason pursuant to Paragraph 12C above, for Cause by the Company or due to Employee’s
death or disability, then payments of compensation by the Company to Employee hereunder will terminate immediately (except as
to amounts already earned). The award agreement evidencing the RSUs shall provide that if Employee dies after one-year but prior
to the vesting date, the RSUs shall vest immediately in a pro rata number of underlying shares based on Employee’s date
of death.

 

E.
Definitions.

 

1.
“Cause.” For all purposes under this Agreement, “Cause” is defined as (i) gross negligence
or willful failure to perform Employee’s duties and responsibilities to the Company; (ii) commission of any act of fraud,
theft, embezzlement, financial dishonesty or any other willful misconduct that has caused or is reasonably expected to result
in injury to the Company; (iii) conviction of, or pleading guilty or nolo contendere to, any felony or a lesser crime involving
dishonesty or moral turpitude; or (iv) material breach by Employee of any of his obligations under this Agreement or any written
agreement or covenant with the Company, including the policies adopted from time to time by the Company applicable to all employees,
that has not been cured within thirty (30) days of notice of such breach.

 

2.
“Good Reason.” For all purposes under this Agreement, “Good Reason” is defined as Employee’s
resignation within thirty (30) days following the expiration of any Company cure period (discussed below) following the occurrence
of one or more of the following, without Employee’s express written consent: (i) a material reduction of Employee’s
duties, authority, reporting level, or responsibilities, relative to Employee’s duties, authority, reporting level, or responsibilities
in effect immediately prior to such Change in Control; (ii) a material reduction in Employee’s base compensation; or (iii)
the Company’s requiring of Employee to change the principal location at which Employee is to perform his services by more
than fifty (50) miles. Employee will not resign for Good Reason without first providing the Company with written notice within
thirty (30) days of the initial occurrence of the event that Employee believes constitutes “Good Reason” specifically
identifying the acts or omissions constituting the grounds for Good Reason and a reasonable cure period of not less than thirty
(30) days following the date of such notice during which such condition shall not have been cured.

 

    	 

    	 

    

 

3.
“Change in Control.” For all purposes under this Agreement, a “Change in Control” of the
Company is as defined in the Plan; provided, that a liquidation, dissolution or winding up of the Company or change in the state
of the Company’s incorporation shall not constitute a Change in Control event for purposes of this Agreement.

 

F.
No Other Benefits. In the event of a termination of Employee’s employment with the Company, the provisions of this
Paragraph 12 are Employee’s exclusive right to severance benefits and are in lieu of participation in any other severance
policy or plan to which Employee might otherwise be entitled.

 

G.
Termination from any Offices Held. Upon his termination of employment with the Company, Employee agrees that and any and
all offices held, if applicable, shall be automatically terminated. Employee agrees to cooperate with the Company and execute
any documents reasonably required by the Company or competent authorities to effect this provision.

 

13.
GENERAL PROVISIONS.

 

A.
Governing Law; Consent To Personal Jurisdiction. The laws of the State of Minnesota shall govern the Employee’s employment
and this Agreement without regard to conflict of laws principles. Employee and the Company each hereby consents to the personal
jurisdiction of the state courts located in Hennepin County, State of Minnesota, and the federal district court sitting in Hennepin
County, State of Minnesota, if that court otherwise possesses jurisdiction over the matter, for any legal proceeding concerning
Employee’s employment or termination of employment, or arising from or related to this Agreement or any other agreement
executed between Employee and the Company.

 

B.
Entire Agreement. This Agreement, together with the Exhibits hereto, sets forth this entire Agreement between the Company
(and any of its related or affiliated entities, officers, agents, owners or representatives) and Employee relating to the subject
matter herein, and supersedes any and all prior discussions and agreements, whether written or oral, on the subject matter hereof,
including without limitation that certain Employment Offer Term Sheet provided to Employee by the Company prior to the commencement
of his employment with the Company. To the extent that this Agreement may conflict with the terms of another written agreement
between Employee and the Company, the terms of this Agreement will control.

 

C.
Modification. No modification of or amendment to this Agreement will be effective unless in writing and signed by Employee
and an authorized representative of the Company.

 

D.
Waiver. The Company’s failure to enforce any provision of this Agreement shall not act as a waiver of its ability
to enforce that provision or any other provision. The Company’s failure to enforce any breach of this Agreement shall not
act as a waiver of that breach or any future breach. No waiver of any of the Company’s rights under this Agreement will
be effective unless in writing. Any such written waiver shall not be deemed a continuing waiver unless specifically stated, and
shall operate only as to the specific term or condition waived and shall not constitute a waiver of such term or condition for
the future or as to any act other than that specifically waived.

 

E.
Successors and Assigns. This Agreement shall be assignable to, and shall inure to the benefit of and bind, the Company’s,
affiliates, subsidiaries, successors and assigns. Employee shall not have the right to assign his rights or obligations under
this Agreement.

 

    	 

    	 

    

 

F.
Construction. The language used in this Agreement will be deemed to be language chosen by Employee and the Company to express
their mutual intent, and no rules of strict construction will be applied against either Party.

 

G.
Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be enforceable, and all
of which together shall constitute one agreement. Signatures of the parties that are transmitted in person or by facsimile or
e-mail shall be accepted as originals.

 

H.
Further Assurances. Employee agrees to execute any proper oath or verify any document required to carry out the terms of
this Agreement.

 

I.
Title and Headings. The titles, captions and headings of this Agreement are included for ease of reference only and will
be disregarded in interpreting or construing this Agreement.

 

J.
Notices. All notices and communications that are required or permitted to be given under this Agreement shall be in writing
and shall be sufficient in all respects if given and delivered in person, by electronic mail, by facsimile, by overnight courier,
or by certified mail, postage prepaid, return receipt requested, to the receiving Party at such Party’s address shown in
the signature blocks below or to such other address as such Party may have given to the other by notice pursuant to this Paragraph.
Notice shall be deemed given (i) on the date of delivery in the case of personal delivery, electronic mail or facsimile, or (ii)
on the delivery or refusal date as specified on the return receipt in the case of certified mail or on the tracking report in
the case of overnight courier.

 

K.
Section 409A. The amounts payable under this Agreement are intended to be exempt from the requirements of Section 409A
of the Internal Revenue Code of 1986, as amended (“Section 409A”). Any payments due under this Agreement on
account of a termination of employment shall only be payable if the termination constitutes a “separation from service”
within the meaning of Section 409A. To the extent that any such payments are determined to be subject to Section 409A, (i) the
terms of this Agreement shall be interpreted to avoid incurring any penalties under Section 409A, (ii) any right to a series of
installment payments is to be treated as a right to a series of separate payments, and (iii) any payments due to a “specified
employee” of a publicly-traded company upon a separation from service shall be delayed until the first day of the seventh
month following such separation from service. Notwithstanding the foregoing, in no event shall the Company be responsible for
any taxes or penalties due under Section 409A.

 

14.
EMPLOYEE’S ACKNOWLEDGMENTS. Employee acknowledges that he is executing this Agreement voluntarily and without duress
or undue influence by the Company or anyone else and that Employee has carefully read this Agreement and fully understands the
terms, consequences, and binding effect of this Agreement.

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK.]

 

    	 

    	 

    

 

IN
WITNESS WHEREOF, and intending to be legally bound, the Parties have executed this Employment Agreement as of the date first written
above.

 

	EMPLOYEE
    	 	XTANT
    MEDICAL HOLDINGS, INC.
	 	 	 
	Print
    Name: 	Kevin
    Brandt	 	Print
    Name: 	Carl
    O’Connell 
	 	 	 	 	 
	Signature:
    	/s/
    Kevin Brandt	 	Signature:
    	/s/
    Carl O’Connell
	Date:
    	7/7/18   	 	Title:
    	CEO
    
	 	 	 	Date:
    	7/7/18

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