Xtant Medical Holdings, Inc. (NYSEMKT:XTNT) Files An 8-K Entry into a Material Definitive Agreement

Item 1.01.

Fourteenth Amendment to Amended and Restated Credit
Agreement

Effective May 11, 2017, Bacterin International, Inc.
(Bacterin), a Nevada corporation and wholly-owned
subsidiary of Xtant Medical Holdings, Inc. (the Company),
as borrower, the Company, X-Spine Systems, Inc., an Ohio
corporation and wholly-owned subsidiary of the Company, and Xtant
Medical, Inc., a Delaware corporation and wholly-owned subsidiary
of the Company, collectively as the guarantors, ROS Acquisition
Offshore LP (ROS) and OrbiMed Royalty Opportunities II, LP
(Royalty Opportunities), entered into the Fourteenth
Amendment to Amended and Restated Credit Agreement (the
Amendment), which amended the existing Amended and
Restated Credit Agreement (the Facility).

Prior amendments to the Facility deferred Bacterins accrued
interest payment date for the fiscal quarter ended on December
31, 2016 until May 31, 2017. The Amendment further defers
Bacterins accrued interest payment date for the fiscal quarter
ended on December 31, 2016 until June 30, 2017, while also
deferring Bacterins accrued interest payment date for the fiscal
quarter ended on March 31, 2017 until June 30, 2017.

The interest due on June 30, 2017 for the fiscal quarter ended on
December 31, 2016 will be $1,147,329.47, plus interest accrued on
such interest from January 2, 2017 until paid at a rate equal to
14% plus the higher of the LIBO Rate (as defined in the Facility)
for the fiscal quarter ended on December 31, 2016, or 1%. The
interest due on June 30, 2017 for the fiscal quarter ended on
March 31, 2017 will be $1,139,597.47, plus interest accrued on
such interest from April 1, 2017 until paid at a rate equal to
14% plus the higher of the LIBO Rate for the fiscal quarter ended
on March 31, 2017, or 1%.

The Amendment also allows for X-Spine to make addition term loans
with ROS and Royalty Opportunities in an aggregate amount of up
to $15,000,000. The amount of each loan draw made by X-Spine will
be subject to a the Companys production of a thirteen-week cash
flow forecast that is approved by ROS and Royalty Opportunities.
The making of each Additional Delayed Draw Loan by ROS and
Royalty Opportunities shall be subject to the satisfaction (or
waiver in writing by each lender) of conditions precedent,
including closing certificate, delivery of budget, the hiring of
a Chief Restructuring Officer, a payoff letter from Silicon
Valley Bank, and other satisfactory documents.

The foregoing descriptions of the Amendment does not purport to
be complete and is qualified in its entirety by the full text of
the Amendment, a copy of which is filed as Exhibits 10.1 and
incorporated by reference herein.

Aurora Management Agreement

Also, on May 8, 2017, the Company entered into an agreement (the
CRO Agreement) with Aurora Management Partners Inc.
(Aurora). to the CRO Agreement, David Baker will now serve
as Chief Restructuring Officer of the Company (the CRO)
and Wayne Tanner will serve as a Deputy Restructuring Officer of
the Company. The CRO and Aurora personnel assisting on this
engagement will report to the special restructuring committee of
the Board of Directors of the Company and will provide periodic
updates on progress made in fulfilling the scope of services. The
term of the agreement will begin on May 8, 2017, and the term
continues until the engagement is completed or earlier if the
engagement is terminated by either party. Aurora will be paid the
hourly rates set forth on Schedule A to the CRO Agreement and
will reimbursed for its expenses actually incurred in providing
the services. The CRO Agreement may be terminated by either
party, in its sole discretion, for any reason and the termination
is effective immediately upon the other partys receipt of written
notice of the termination.

The foregoing descriptions of the Amendment and the CRO Agreement
do not purport to be complete and are qualified in their entirety
by the full text of the Amendment and the CRO Agreement, copies
of which are filed as Exhibits 10.1, 10.2 and 10.3 and
incorporated by reference herein.

The disclosure set forth above under Item 1.01 is hereby
incorporated by reference into this Item 2.03.

The disclosure set forth above under the Item 1.01 heading Aurora
Management Agreement is hereby incorporated by reference into
this Item 5.02. The new officers are being compensated by Aurora
for their services and do not have any other compensation
arrangements with the Company. The biographies for the new
officers are below:

David Baker, Chief Restructuring Officer, age
61, is the Managing Partner of Aurora Management Partners, and
has managed a wide variety of turnaround and bankruptcy
consulting engagements involving domestic and international
operations. David has served Auroras clients as Chairman, CEO,
Federal Receiver, State Receiver, CRO, Financial Advisor, and
COO. His debtor engagements include working capital management
and assessment, debt reorganization, viability assessments and
asset sales and acquisitions. David graduated from the University
of North Carolina at Chapel Hill in 1977 with a B.S. in
Accounting and subsequently earned his CPA certificate. From 1977
until 1985 he worked with national accounting firms. In 1985, he
left public accounting to manage a multi-state textile
manufacturer headquartered in North Carolina. In 1997 he began
his turnaround career and co-founded Aurora in 2000.

Wayne Tanner, Deputy Restructuring Officer, age
62, is a Senior Managing Director, CPA for Aurora and brings over
35 years of consulting experience in a wide spectrum of executive
management engagements. Wayne was a worldwide Equity Audit
Business Advisory Partner with Arthur Andersen for 22 years in
Atlanta. For the last ten years, Wayne has performed executive
consulting services with a variety of companies primarily in CEO,
President and Board Member roles. His industry experience is vast
and includes real estate, construction, technology, healthcare,
retail, manufacturing and distribution among others. He also has
experience in debt, mezzanine and equity placements from an
origination and restructuring environment. Wayne is a CPA with a
BBA in Accounting/Business Law and an MBA from the University of
Georgia with post-graduate work at Harvard Business School. He is
a Certified Fraud Examiner an associate member of the ABA.

(d)Exhibits.

About Xtant Medical Holdings, Inc. (NYSEMKT:XTNT)

Xtant Medical Holdings, Inc., formerly Bacterin International Holdings, Inc., develops, manufactures and markets regenerative medicine products and medical devices for domestic and international markets. The Company operates through the development, manufacture and marketing of regenerative medical products and devices segment. Its biomaterial products include OsteoSponge, OsteoSponge SC, OsteoSelect DBM putty, OsteoSelect Plus DBM putty, OsteoWrap, BacFast HD, OsteoSTX, hMatrix and 3Demin products, as well as other allografts. Its products serve the needs of orthopedic and neurological surgeons, including orthobiologics for the promotion of bone healing, implants and instrumentation for the treatment of spinal disease, tissue grafts for the treatment of orthopedic disorders, and biologics to promote healing following cranial, foot and ankle surgeries. It also processes and distributes sports allografts, milled spinal allografts and allografts for multi-disciplinary applications.

Xtant Medical Holdings, Inc. (NYSEMKT:XTNT) Recent Trading Information

Xtant Medical Holdings, Inc. (NYSEMKT:XTNT) closed its last trading session up +0.007 at 0.367 with 338,539 shares trading hands.