Nonqualified Stock Option Agreement

Exhibit 10.4

MIMEDX GROUP, INC.

Nonqualified Stock Option Agreement

THIS NONQUALIFIED STOCK OPTION AGREEMENT (this “Agreement”) dated as of the 27th day of January, 2023 (the “Date of Grant”), between MiMedx Group, Inc. (the “Company”), and Joseph H. Capper (the “Participant”). This Option has not been granted under the MiMedx Group, Inc. 2016 Equity and Cash Incentive Plan, as amended and restated through October 2, 2020 (the “Plan”), and is granted as an inducement for the Participant to be hired as an employee; however, this Agreement references certain provisions in the Plan, and unless otherwise defined in this Agreement, capitalized terms shall have the meanings ascribed to them in the Plan.

1.     Grant of Option. Subject in all respects to the terms and conditions set forth herein, the Participant is hereby granted an option to purchase from the Company all or any part of an aggregate of 3,600,000 shares of the Common Stock of the Company, at the price of $3.70 per share (this “Option”). The Option is subject to adjustment as provided in Article XVI of the Plan. No part of the Option granted hereby is intended to qualify as an “incentive stock option” under Section 422 of the Internal Revenue Code of 1986, as amended.

2.     Terms and Conditions. This Option is subject to the following terms and conditions:

(a)     Expiration Date. This Option shall expire at 11:59 p.m. on February 1, 2030 (the “Expiration Date”) or such earlier time as set forth in this Agreement. In no event shall the Expiration Date be later than seven (7) years after the Date of Grant.

(b)     Vesting of Option. The Option shall become vested and exercisable (i) based on and to the extent of the attainment of specified Share price goals specified on Appendix A measured based on the average Fair Market Value of the Common Stock during any twenty (20) consecutive trading days (each a “Measurement Period”) within the Performance Period as described below (each a “Share Price Performance Goal” and collectively the “Performance Goals”), representing a substantial increase in the Fair Market Value of the Common Stock as of the Grant Date, and (ii) subject to the Participant’s satisfaction of the Employment Condition as described below. The Employment Condition shall be satisfied with respect to one-fourth (1/4) of the shares of Common Stock subject to the Option (rounded to the nearest whole share) on each of the first, second and third anniversaries of the Date of Grant, and with respect to the remaining shares of Common Stock subject to the Option on the fourth anniversary of the Date of Grant, provided in each case the Participant has been continuously employed by, or providing services to, the Company or an Affiliate from the Date of Grant until such date(s). Subject to earlier termination as provided in Section 3, any portion of the Option that does not become vested during the Performance Period shall be forfeited at the end of the Performance Period for no consideration. Once this Option has become vested and exercisable, it shall continue to be vested and exercisable until the earlier of the termination of the Participant’s rights hereunder or the Expiration Date. To the extent exercisable, the Option may be exercised in whole or in part.

(c)     Performance Period. The Performance Period shall be the period commencing on the Date of Grant and ending January 31, 2027.

(d)     Change in Control. Upon the occurrence of a Change in Control prior to February 1, 2027, any outstanding Option shall be treated in accordance with and governed by Section 14.05 of the Plan, as if granted thereunder, and the terms provided in this Agreement. Provided that the Participant has been continuously employed by the Company for at least one year prior to the Control Change Date, upon a Change in Control occurring during the Performance Period and prior to February 1, 2027 in which the price of Common Stock at which the Company was sold in the Change in Control equals or exceeds the minimum Share Price Performance Goal ($*), the Option shall become vested and exercisable on the Change in Control with respect to the number of shares of Common Stock subject to the Option, to the extent not already either forfeited, exercised, or vested and exercisable, multiplied by the quotient obtained by dividing (i) the price of the Common Stock at which the

Company was sold in the Change in Control, by (ii) the maximum Share Price Performance Goal ($*); provided that in no event shall the quotient obtained exceed 1 (the “CIC Options”), subject to the Participant’s continuous employment with the Company upon the Change in Control (subject to the exception if the Company terminates the Participant other than for Cause (as defined in the Participant’s Key Employee Retention Agreement, dated as of January 27, 2023 (the “Retention Agreement”)) or the Participant terminates his employment for Good Reason (as defined in the Retention Agreement), in either case within three (3) months prior to the Control Change Date), and the balance of the Option, if any, shall be forfeited with no consideration. If the Participant has not been continuously employed by the Company for at least one year prior to the Control Change Date, and subject to the employment conditions in the preceding sentence, the Participant shall be entitled to a pro rated portion of the CIC Options, based on the number of days the Participant was employed in relation to the number of days in the Performance Period, and the balance of the Option shall be forfeited with no consideration.

(e)     Termination without Cause or for Good Reason. In the event the Participant’s employment is terminated by the Company without Cause (as defined in the Retention Agreement) or the Participant terminates his employment for Good Reason (as defined in the Retention Agreement), the Options shall become vested and exercisable if and to the extent that the specified Share Price Performance Goals specified on Appendix A for the Performance Period were attained during Participant’s employment, and the balance of the Option shall be forfeited with no consideration.

(f)     Method of Exercise and Payment for Shares. To the extent then vested and exercisable, the Participant may exercise the Option by delivering written notice of exercise, along with the exercise price for the portion of the Option being exercised, to the attention of the Company’s Secretary at the Company’s address specified in Section 8 below. Notwithstanding the foregoing, no single exercise of the Option may be for less than 100 shares of Common Stock unless, at the time of exercise, the maximum number of shares of Common Stock available for purchase under the Option is less than 100 shares, in which event the Option may be exercised, if at all, only for all of the shares of Common Stock then available for purchase. The exercise date shall be the date of the notice. The Participant shall pay the exercise price in cash or cash equivalent acceptable to the Committee. However, the Committee in its discretion may, but is not required to, allow the Participant to pay the exercise price (i) by surrendering shares of Common Stock the Participant already owns, (ii) by a cashless exercise through a broker, (iii) by means of a “net settlement” procedure, (iv) by such other medium of payment as the Committee shall authorize or (v) by any combination of the allowable methods of payment set forth herein. If payment is in the form of shares of Common Stock, then the certificate or certificates representing those shares must be duly executed in blank by the Participant or accompanied by a stock power duly executed in blank suitable for purposes of transferring those shares to the Company. Fractional shares of Common Stock will not be accepted in payment of the exercise price of the Option. The Company will not issue the shares of Common Stock until full payment of the exercise price for them has been made. As soon as administratively practicable upon the Company’s receipt of the exercise price, subject to the other terms of the Option, the Company shall direct the issuance of the applicable shares of Common Stock so purchased. In the case of the Participant’s death, the Option, to the extent vested and exercisable, may be exercised by the executor or administrator of the Participant’s estate or by any person or persons who have acquired the Option directly from the Participant by bequest or inheritance.

(g)     Non-Transferability of Option. The Participant shall not assign or transfer the Option, other than by will or the laws of descent and distribution. During the Participant’s lifetime, only the Participant (or, in the event of legal incapacity or incompetency, the Participant’s guardian or legal representative) may exercise the Option. No right or interest of the Participant or any transferee in this Option shall be liable for, or subject to, any lien, obligation or liability of the Participant or any transferee.

(h)     Stock Holding Requirements. Notwithstanding any other provision of this Agreement, shares of Common Stock acquired pursuant to this Option may not be sold, transferred or otherwise disposed of until the level of ownership provided in the Company’s Stock Ownership Guidelines is met, to the extent applicable to the Participant. All shares of Common Stock acquired under the Plan (“net” shares acquired in case of any net exercise or withholding of shares) shall be subject to the terms and conditions of the Company’s Stock Ownership Guidelines, as they may be amended from time to time.

3.     Termination of Option.

a.     Exercise in the Event of Death or Disability. This Option shall be exercisable for the number of shares of Common Stock subject to the Option only to the extent that the Participant is entitled to purchase pursuant to Section 2 as of the date of termination of the Participant’s employment by, or provision of services to, the Company and its Affiliates, reduced by the number of shares for which the Participant previously exercised the Option, and to the extent the Participant’s rights have not otherwise been terminated under this Agreement, if the Participant’s employment by, or provision of services to, the Company and its Affiliates terminates on account of the Participant’s death or Disability, and the balance of the Option shall be forfeited with no consideration. In that event, to the extent exercisable this Option may be exercised by the Participant, the Participant’s estate, or the person or persons to whom the Participant’s rights under this Option shall pass by will or the laws of descent and distribution (to the extent applicable), for the remainder of the period preceding the Expiration Date or until the date that is twelve (12) months after the Participant’s Termination Date due to death or Disability, whichever period is shorter.

b.     Exercise after a Change of Control. This Option shall be exercisable for the number of shares of Common Stock subject to the Option only to the extent that the Participant is entitled to purchase pursuant to Section 2 as of the date of termination of the Participant’s employment by, or provision of services to, the Company and its Affiliates on or after a Change in Control, reduced by the number of shares for which the Participant previously exercised the Option, and to the extent the Participant’s rights have not otherwise been terminated under this Agreement, if the Participant’s employment by, or provision of services to, the Company and its Affiliates terminates on or after a Change in Control (other than as described in Section 3(a) above), and the balance of the Option shall be forfeited with no consideration. In that event, to the extent exercisable the Participant may exercise this Option for the remainder of the period preceding the Expiration Date or until the date that is twelve (12) months after the Participant’s Termination Date, whichever period is shorter.

c.     Exercise after other Termination of Employment or Service. This Option shall be exercisable for the number of shares of Common Stock subject to the Option only to the extent that the Participant is entitled to purchase pursuant to Section 2 as of the date of termination of the Participant’s employment by, or provision of services to, the Company and its Affiliates, reduced by the number of shares for which the Participant previously exercised the Option, and to the extent the Participant’s rights have not otherwise terminated under this Agreement, if the Participant’s employment by, or provision of services to, the Company and its Affiliates terminates other than under any of the circumstances set forth in Sections 3(a) or (b) of this Agreement, for the remainder of the period preceding the Expiration Date or until the date that is twelve (12) months after the Participant’s Termination Date, whichever period is shorter. The balance of the Option shall be forfeited with no consideration upon such Termination Date.

d.     Termination. The Option or portion thereof not either terminated or exercised at such time will terminate automatically and without further notice at the time the Option can no longer be exercised as set forth above.

e.     For Cause. Notwithstanding any other provision of this Agreement, the Option will terminate automatically upon the termination of the Participant’s employment by, or provision of services to, the Company and its Affiliates for Cause, as defined in the Participant’s Key Employee Retention Agreement dated January 27, 2023, immediately upon notice of such termination (including any portion of the Option that may have become vested and exercisable previously).

4.     Agreement to Terms. The Participant has read and understands the terms of this Agreement, including the applicable provisions of the Plan, as if the Option was granted thereunder, and agrees to be bound by

their terms and conditions. All decisions and interpretations made by the Company or the Committee with regard to any question arising under this Option will be binding and conclusive on the Company and the Participant and any other person entitled to exercise the Options as provided for in this Agreement.

5.     Tax Consequences. The Participant acknowledges (i) that there may be adverse tax consequences upon acquisition or disposition of the shares of Common Stock received upon exercise of this Option and (ii) that Participant should consult a tax adviser prior to such acquisition or disposition. The Participant is solely responsible for determining the tax consequences of the Option and for satisfying the Participant’s tax obligations with respect to the Option (including, but not limited to, any income or excise tax as resulting from the application of Code Sections 409A or 4999 or related interest and penalties), and the Company and its Affiliates shall not be liable if this Option is subject to Code Sections 409A, 280G or 4999. The Company’s obligation to deliver shares of Common Stock upon exercise of the Option is subject to the Participant’s satisfaction of any applicable federal, state and local income and employment tax and withholding requirements in a manner and form satisfactory to the Company. The Committee, to the extent applicable law permits, may allow the Participant to pay any such amounts (but only for the minimum required withholding or such other amounts as will not otherwise have negative accounting consequences) (i) by surrendering (actual or by attestation) shares of Common Stock that the Participant already owns; (ii) by a cashless exercise though a broker, (iii) by means of a “net exercise” procedure or (iv) by such other medium of payment as the Committee in its discretion shall authorize.

6.     Fractional Shares. Fractional shares shall not be issuable hereunder, and when any provision hereof may entitle the Participant to a fractional share such fractional share shall be disregarded.

7.     Change in Capital Structure. The terms of this Option shall be adjusted in the same manner as adjustments are made as set forth in Article XVI of the Plan as the Committee determines is equitably required in the event the Company effects one or more stock dividends, stock splits, subdivisions or consolidations of shares or other similar changes in capitalization.

8.     Notice. Any notice or other communication given pursuant to this Agreement, or in any way with respect to this Option, shall be in writing and shall be personally delivered or mailed by United States registered or certified mail, postage prepaid, return receipt requested, to the following addresses:

or such other address as either party may have furnished to the other in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt.

9.     Shareholder Rights. The Participant shall not have any rights as a shareholder with respect to shares of Common Stock subject to this Option until the issuance of the shares of the Common Stock upon exercise of the Option.

10.     No Right to Continued Employment or Service. Neither the Plan, the granting of this Option nor any other action taken pursuant to the Plan or this Option constitutes or is evidence of any agreement or understanding, expressed or implied, that the Company or any Affiliate shall retain the Participant as an employee or other service provider for any period of time or at any particular rate of compensation.

11.     Binding Effect. Subject to the limitations stated above and in the Plan, this Agreement shall be binding upon and inure to the benefit of the legatees, distributees, and personal representatives of the Participant and the successors of the Company.

12.     Conflicts. In the event of any conflict between the provisions of the Plan and the provisions of this Agreement, the provisions of the Plan shall govern. All references herein to the Plan shall mean the Plan as in effect on the date hereof.

13.     Counterparts. This Agreement may be executed in a number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one in the same instrument.

14.     Miscellaneous. The parties agree to execute such further instruments and take such further actions as may be necessary to carry out the intent of this Agreement. This Agreement, and any provisions referenced herein, shall constitute the entire agreement of the parties with respect to the subject matter hereof.

15.     Section 409A. Notwithstanding any of the provisions of this Agreement, it is intended that the Option be exempt from Section 409A of the Code. Notwithstanding the preceding, neither the Company nor any Affiliate shall be liable to the Participant or any other person if the Internal Revenue Service or any court or other authority have any jurisdiction over such matter determines for any reason that the Option is subject to taxes, penalties or interest as a result of failing to be exempt from, or comply with, Section 409A of the Code.

16.     Compensation Recoupment Policy. Notwithstanding any other provision of this Agreement, the Participant shall reimburse or return to the Company the gross number of shares of Common Stock that the Participant received (or would have received absent a “net exercise” procedure) under this Agreement or, if greater, the amount of gross proceeds from any earlier sale of any such shares of Common Stock, plus any other amounts received with respect to this Award, to the extent any reimbursement, recoupment or return is required under applicable law or the Company’s Compensation Recoupment Policy or any similar policy that the Company may adopt.

17.     Governing Law. This Agreement shall be governed by the governing laws applicable to the Plan.

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IN WITNESS WHEREOF, the Company has caused this Agreement to be signed by a duly authorized officer, and the Participant has affixed the Participant’s signature hereto.

Appendix A

Performance Goals and Vesting Percentages

Share Price Performance Goals, Performance Period 1/31/23 – 1/31/27

Average Share Price is calculated over a Measurement Period.

Vesting and exercisability is also subject to Participant’s satisfaction of the Employment Condition.