Document:

Exhibit 4.2

 

		 Aziyo Biologics, Inc. CLASS A COMMON STOCK INCORPORATED UNDER THE LAWS OF THE STATE OF DELAWARE CLASS A COMMON STOCK THIS CERTIFIES THAT BY: FULLY PAID AND NON-ASSESSABLE SHARES OF CLASS A COMMON STOCK OF THE PAR VALUE OF $0.001 PER SHARE OF AZIYO BIOLOGICS, INC. transferable on the books of the Corporation by the holder hereof in person or by duly authorized Attorney, upon surrender of this Certificate properly endorsed. This Certificate is not valid until countersigned and registered by the Transfer Agent and Registrar. WITNESS the signatures of the Corporation’s duly authorized officers. AUTHORIZED SIGNATURE COUNTERSIGNED AND REGISTERED: AMERICAN STOCK TRANSFER & TRUST COMPANY, LLC (BROOKLYN, NY) TRANSFER AGENT AND REGISTRAR TREASURER 

 

    

     

    

 

		The following abbreviations, when used in the inscription on the face of this certificate, shall be construed as though they were written out in full according to applicable laws or regulations: TEN COM— as tenants in common TEN ENT — as tenants by the entireties JT TEN— as joint tenants with right of survivorship and not as tenants in commom UNIF GIFT MIN ACT –– Custodian (Cust)(Minor) under Uniform Gifts to Minors Act (State) Additional abbreviations may also be used though not in the above list. FOR VALUE RECEIVED, hereby sell, assign and transfer unto PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE (PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE) Shares of the Class A Common Stock represented by the within Certificate, and do hereby irrevocably constitute and appoint Attorney to transfer the said stock on the books of the within-named Corporation, with full power of substitution in the premises. Dated NOTICE: Signature(s) Guaranteed: THE SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM), PURSUANT TO S.E.C. RULE 17Ad-15. 711 ARMSTRONG LANE COLUMBIA, TN 38401 PROOF OF: SEPTEMBER 10, 2020 AZIYO BIOLOGICS, INC. (931) 388-3003 PRODUCTION COORDINATOR: NICKY DECKARD 931-305-2907 WO - 20000308 BACK NEW OPERATOR: DKS PLEASE INITIAL THE APPROPRIATE SELECTION FOR THIS PROOF: OK AS IS OK WITH CHANGES MAKE CHANGES AND SEND ANOTHER PROOFExhibit 4.4

 

THESE
SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS AND MAY NOT
BE TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS THEY HAVE BEEN REGISTERED UNDER SUCH ACT AND ALL SUCH APPLICABLE LAWS OR AN EXEMPTION
FROM SUCH REGISTRATION IS AVAILABLE.

 

THE
SHARES OF CAPITAL STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT ARE SUBJECT TO CERTAIN OBLIGATIONS, RESTRICTIONS, PROXIES AND VOTING
AGREEMENTS AS SET FORTH IN A CERTAIN INVESTOR RIGHTS AGREEMENT, AS AMENDED FROM TIME TO TIME, BY AND AMONG THE STOCKHOLDER, THE
COMPANY AND CERTAIN OTHER STOCKHOLDERS, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY.

 

	Warrant
    No. 2017-1	 	 	March 27,
                                         2017

 

AZIYO
BIOLOGICS, INC.

 

WARRANT
TO PURCHASE SHARES

 

This
Warrant to Purchase Shares (this “Warrant”) is issued to HighCape Partners QP, L.P. (“Holder”)
or its registered assigns by Aziyo Biologics, Inc., a Delaware corporation (the “Company”)
as partial consideration for providing credit enhancement for the Company's loan from Alostar Bank of Commerce.

 

1.            Purchase
of Shares. Subject to the terms and conditions hereinafter set forth, the Holder is entitled, upon surrender of this Warrant
at the principal office of the Company (or at such other place as the Company shall notify the holder hereof in writing), to purchase
from the Company up to the number of fully paid and nonassessable shares of the Company’s Common Stock, par value $0.001 per share
(the “Shares”), that equals the product of (a) 1,923,077 and (b) the quotient of (i) the
lesser of (A) thirty-six (36) and (B) the number of calendar months that have ended between the date of this Warrant
and the date that the letter of credit issued by Silicon Valley Bank for the account of the Holder and for the benefit of Alostar
Bank of Commerce in the amount of up to $5,000,000 (the “Letter of Credit”) is terminated or expires
without being drawn upon and (ii) thirty-six (36) (such product shall be referred to herein as the “Share Number”),
as such Share Number may be adjusted from time to time in accordance with the terms hereof; provided, however, that if the
Letter of Credit is partially or fully drawn upon, then, contemporaneously with such event, the Share Number shall be equal to
1,923,077, as such Share Number may be adjusted from time to time in accordance with the terms hereof.

 

     

     

    

 

2.            Exercise
Price and Exercise Period.

 

(a)            Exercise
Price. The exercise price for each Share shall be equal to $0.39 (as adjusted from time to time in accordance with the terms
hereof, the “Exercise Price”).

 

(b)            Exercise
Period. This Warrant shall be exercisable, in whole or in part, during the term commencing on the date hereof and ending on
the expiration of this Warrant pursuant to Section 12 hereof.

 

3.            Method
of Exercise. While this Warrant remains outstanding and exercisable in accordance with Section 2 above, the Holder
may exercise, in whole or in part, the purchase rights evidenced hereby. Such exercise shall be effected by:

 

(a)            the
surrender of the Warrant, together with a notice of exercise to the President or Secretary of the Company at its principal offices
substantially in the form attached hereto as Exhibit 1; and

 

(b)            the
payment to the Company, in cash, of an amount equal to the aggregate Exercise Price for the number of Shares being purchased.

 

4.            Net
Exercise. In lieu of cash exercising this Warrant, the holder of this Warrant may elect to receive shares equal to the
value of this Warrant (or the portion thereof being canceled) by surrender of this Warrant to the President or Secretary of
the Company at the principal office of the Company together with notice of such election, in which event the Company shall
issue to the holder hereof a number of Shares computed using the following formula:

 

Y
(A - B)

X=                 A

 

Where

 

X
-- The number of Shares to be issued to the holder of this Warrant.

 

Y
-- The number of Shares purchasable under this Warrant.

 

A
-- The fair market value of one Share.

 

B
-- The Exercise Price (as adjusted to the date of such calculations).

 

For
purposes of this Section 4, the fair market value of a Share as determined in good faith by the Company's Board of Directors.

 

5.            Certificates
for Shares. Upon the exercise of the purchase rights evidenced by this Warrant, one or more certificates shall be issued representing
the number of Shares so purchased, and a copy of such certificate or certificates shall be delivered to the registered holder
thereof, as soon thereafter as reasonably practicable, and in any event within five (5) days of the delivery of the exercise
notice and payment therefor.

 

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6.            Issuance
of Shares. The Company covenants that the Shares, when issued pursuant to the exercise of this Warrant, will be duly and validly
issued, fully paid and nonassessable and free from all taxes, liens, and charges with respect to the issuance thereof.

 

7.            Adjustment
of Exercise Price and Number of Shares. The number of and kind of securities purchasable upon exercise of this Warrant and
the Exercise Price shall be subject to adjustment from time to time as follows:

 

(a)            Subdivisions,
Combinations and Other Issuances. If the Company shall at any time prior to the expiration of this Warrant subdivide the Shares,
by split-up or otherwise, or combine its Shares, or issue additional Shares as a dividend, the number of Shares issuable on the
exercise of this Warrant shall forthwith be proportionately increased in the case of a subdivision or stock dividend, or proportionately
decreased in the case of a combination. Appropriate adjustments shall also be made to the Exercise Price payable per Share, but
the aggregate Exercise Price payable for the total number of Shares purchasable under this Warrant (as adjusted) shall remain
the same. Any adjustment under this Section 7(a) shall become effective at the close of business on the date the subdivision
or combination becomes effective, or as of the record date of such dividend, or in the event that no record date is fixed, upon
the making of such dividend.

 

(b)            Reclassification,
Reorganization and Consolidation. In the event of any reclassification, capital reorganization, or change in the capital stock
of the Company (other than as a result of a subdivision, combination, or stock dividend provided for in Section 7(a) above),
then the holder of this Warrant shall have the right at any time prior to the expiration of this Warrant to purchase, at a total
price equal to that payable upon the exercise of this Warrant, the kind and amount of shares of stock and other securities and
property receivable in connection with such reclassification, reorganization, or change by a holder of the same number of Shares
as were purchasable by the holder of this Warrant immediately prior to such reclassification, reorganization, or change. In any
such case appropriate provisions shall be made with respect to the rights and interest of the holder of this Warrant so that the
provisions hereof shall thereafter be applicable with respect to any shares of stock or other securities and property deliverable
upon exercise hereof, and appropriate adjustments shall be made to the Exercise Price per Share payable hereunder, provided the
aggregate Exercise Price shall remain the same.

 

(c)            Notice
of Adjustment. When any adjustment is required to be made in the number or kind of shares purchasable upon exercise of this
Warrant, or in the Exercise Price, the Company shall promptly notify the Holder of such event and of the number of Shares or other
securities or property thereafter purchasable upon exercise of this Warrant.

 

(d)            Other
Action Affecting Shares. In the event that the Company shall make a distribution in respect of the Shares that is not elsewhere
described in this Section 7, the Holder shall be entitled, upon exercise of this Warrant, to receive from the Company its
pro rata share of any such distribution such that the Holder receives, upon exercise of this Warrant, the same type and amount
of property which such Holder would have received if such Holder had exercised this Warrant immediately prior to such distribution
or the date the Company shall take a record of the holders of its shares for purposes of such distribution, as applicable, and,
from and after the date of such distribution, the Company shalt hold and set aside (or cause to be held and set aside in a commercially
reasonable manner) an amount of such property equal to the Holder's pro rata portion thereof for distribution to the Holder pursuant
hereto.

 

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8.             No
Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon the exercise
of this Warrant, but in lieu of such fractional shares the Company shall make a cash payment therefor on the basis of the fair
market value thereof then in effect.

 

9.             Restrictive
Legend.

 

The
Shares issuable upon exercise of this Warrant (unless registered under the Securities Act of 1933, as amended (the “Securities
Act”)) shall be stamped or imprinted with a legend in substantially the following form:

 

THESE
SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS AND MAY NOT
BE TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS THEY HAVE BEEN REGISTERED UNDER SUCH ACT AND ALL SUCH APPLICABLE LAWS OR AN EXEMPTION
FROM SUCH REGISTRATION IS AVAILABLE.

 

THE
COMPANY WILL FURNISH WITHOUT CHARGE TO EACH STOCKHOLDER WHO SO REQUESTS THE POWERS, DESIGNATIONS, PREFERENCES AND RELATIVE, PARTICIPATING,
OPTIONAL, OR OTHER SPECIAL RIGHTS OF EACH CLASS OF STOCK OR SERIES THEREOF AUTHORIZED TO BE ISSUED BY THE COMPANY AND THE
QUALIFICATIONS, LIMITATIONS OR RESTRICTIONS OF SUCH PREFERENCES AND/OR RIGHTS. ANY SUCH REQUEST MAY BE MADE TO THE SECRETARY
OF THE COMPANY.

 

10.           Warrants
Transferable. Subject to compliance with the terms and conditions of this Section 10, this Warrant and all rights hereunder
are transferable, in whole or in part, without charge to the holder hereof (except for transfer taxes), upon surrender of this
Warrant properly endorsed or accompanied by a written instruction of transfer substantially in the form attached hereto as Exhibit 2;
provided that the transferee consents in writing to be bound by the terms hereunder. With respect to any offer, sale or other
disposition of this Warrant prior to registration of such Warrant, the holder hereof agrees to give written notice to the Company
prior thereto, describing briefly the manner thereof and indicating whether or not under the Securities Act certificates for this
Warrant require any restrictive legend as to applicable restrictions on transferability in order to ensure compliance with such
law. Upon receiving such written notice and the written consent of the proposed transferee agreeing to be bound by the terms hereunder,
the Company, as promptly as practicable, shall notify the Holder that it may sell or otherwise dispose of this Warrant, all in
accordance with the terms of the notice delivered to the Company. Each certificate representing this Warrant transferred in accordance
with this Section 10 shall bear a legend as to the applicable restrictions on transferability in order to ensure compliance
with such laws, unless such legend is not required in order to ensure compliance with such laws. The Company may issue stop transfer
instructions to its transfer agent in connection with such restrictions.

 

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11.          Rights
of Stockholders. Except as expressly set forth in Section 7 hereof, no holder of this Warrant shall be entitled, as a
Warrant holder, to vote or receive dividends or be deemed the holder of the Shares or any other securities of the Company which
may at any time be issuable on the exercise hereof for any purpose, nor shall anything contained herein be construed to confer
upon the holder of this Warrant, as such, any of the rights of a stockholder of the Company or any right to vote for the election
of directors or upon any matter submitted to stockholders at any meeting thereof, or to give or withhold consent to any corporate
action (whether upon any recapitalization, issuance of stock, reclassification of stock, change of par value, consolidation, merger,
conveyance, or otherwise) or to receive notice of meetings, or to receive dividends or subscription rights until the Warrant shall
have been exercised.

 

12.          Expiration
of Warrant; Notice of Certain Events Terminating This Warrant.

 

(a)            This
Warrant shall expire and shall no longer be exercisable upon the earliest to occur of:

 

(i)            5:00
p.m. (Eastern time) on March 1, 2027;

 

(ii)            the
consummation of a Sale Transaction (as such term is defined in the Company's Certificate of Incorporation as in effect from time
to time); and

 

(iii)            the
consummation of an underwritten public offering of the Company's Common Stock registered under the Securities Act, after which
such Common Stock is listed for trading on a United States national securities exchange.

 

(b)            The
Company shall provide at least ten (10) days prior written notice to the Holder of any event set forth in Section 12(a)(ii) or
(iii).

 

13.          Notices.
All notices and other communications required or permitted hereunder shall be in writing, shall be effective when given, and
shall in any event be deemed to be given upon receipt or, if earlier, (a) five (5) days after deposit with the U.S.
Postal Service or other applicable postal service, if delivered by first class mail, postage prepaid, (b) upon delivery,
if delivered by hand, (c) one business day after the business day of deposit with Federal Express or similar overnight courier,
freight prepaid or (d) one business day after the business day of facsimile transmission, if delivered by facsimile transmission
with copy by first class mail, postage prepaid, and shall be addressed (i) if to the Holder, 10751 Falls Road, Suite 300,
Baltimore, MD 21093 and (ii) if to the Company, at the address of its principal corporate offices (attention: President)
or at such other address as a party may designate by ten days advance written notice to the other party pursuant to the provisions
above.

 

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14.          Governing
Law. This Warrant and all actions arising out of or in connection with this Warrant shall be governed by and construed in
accordance with the laws of the State of Delaware, without regard to the conflicts of law provisions of the State of Delaware
or of any other state.

 

15.          Rights
and Obligations Survive Exercise of Warrant. Unless otherwise provided herein, the rights and obligations of the Company and
of the holder of this Warrant shall survive the exercise of this Warrant.

 

16.          Counterparts;
Electronic Signatures. This Warrant may be executed in any number of counterparts, each of which shall be deemed to be an
original, and all of which together shall constitute one and the same document. This Warrant may be executed by facsimile signatures.

 

17.          Amendments.
Except as otherwise expressly set forth in this Warrant, any term of this Warrant may be amended or waived (either retroactively
or prospectively) only with the written consent of the Company and the Holder.

 

18.          No
Waiver. No waiver of any provision or consent to any action shall constitute a waiver of any other provision or consent to
any other action, whether or not similar. No waiver or consent shall constitute a continuing waiver or consent or commit a party
to provide a waiver in the future except to the extent specifically set forth in writing.

 

[Signature
page follows]

 

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IN
WITNESS WHEREOF; the parties hereto have caused this Warrant to be duly executed and delivered by their proper and
duly authorized officers as of the date first written above.

 

 

	 	 	COMPANY:
	 	 	 	 	 
	 	 	AZIYO
    BIOLOGICS, INC.
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	/s/
    Jeffrey Hamet
	 	 	 	 	Name:
    Jeffrey Hamet
	 	 	 	 	Title:  Vice
    President of Finance
	 	 	 	 	 
	 	 	Address:	 	12510
    Prosperity Drive, Suite 370
	 	 	 	 	Silver
    Spring. MD 20904

 

Signature
                                         Page to Aziyo Biologics, Inc.

Warrant
to Purchase Shares

 

     

     

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Warrant to be duly executed and delivered by their proper and duly authorized
officers as of the date first written above.

 

 

	 	 	HOLDER:
	 	 	 
	 	 	HIGHCAPE
    PARTNERS QP, L.P.
	 	 	 	 	 
	 	 	By:	 	HighCape
    Partners GP, L.P.,
	 	 	 	 	its
    general partner
	 	 	 	 	 
	 	 	By:	 	HighCape
    Partners GP, LLC,
	 	 	 	 	its
    general partner
	 	 	 	 	 
	 	 	By:	 	/s/
    William Matthew Zuga
	 	 	 	 	Name:
    William Matthew Zuga
	 	 	 	 	Title:   Managing
    Member

 

Signature
                                         Page to Aziyo Biologics, Inc.

Warrant
to Purchase Shares

 

     

     

    

 

EXHIBIT
1

 

NOTICE
OF EXERCISE 

 

		TO:	Aziyo
                                         Biologics, Inc.

                                         12510 Prosperity Drive, Suite 370

                                         Silver Spring, MD 20904 

                                         Attention: President

 

		1.	The
                                         undersigned hereby elects to purchase _________ shares of Common Stock pursuant to the
                                         terms of the attached Warrant.

 

		2.	Method
                                         of Exercise (Please check the applicable blank): 

 

		___	The
                                         undersigned elects to exercise the attached Warrant by means of a cash payment, and tenders
                                         herewith payment in full for the purchase price of the shares being purchased, together
                                         with all applicable transfer taxes, if any.

 

		___	The undersigned elects to exercise the attached Warrant by means of the net exercise provisions of Section 4 of the Warrant. 

 

		3.	Please
                                         issue a certificate or certificates representing said Shares in the name of the undersigned
                                         or in such other name as is specified below:

 

 

	 	 	 
	 	(Name)	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	(Address)	 
	 	 	 

 

	 	 	 	 
	 	 	(Signature)	 
	 	 	 	 
	 	 	 	 
	 	 	(Name)	 
	 	 	 	 
	 	 	 	 
	(Date)	 	(Title)	 
	 	 	 	 

 

     

     

    

 

EXHIBIT 2

 

FORM OF
TRANSFER

(To be signed only upon transfer of Warrant)

 

FOR
VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto ________________________________________ the right represented
by the attached Warrant to purchase _______________ shares of Common Stock of Aziyo Biologics, Inc., a Delaware corporation,
to which the attached Warrant relates, and appoints ___________________ Attorney to transfer such right on the books of _____________,
with full power of substitution in the premises.

 

 

Dated:
________________

 

 

	 	 	 
	 	 	(Signature
    must conform in all respects to name of Holder as specified on the face of the Warrant)
	 	 	 	 
	 	 	Address:	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

 

 

Signed
in the presence of:

 

_________________________

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