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EXHIBIT 10.10    
    

 
  FORM OF WARRANT    
    

        THIS WARRANT AND THE SECURITIES ISSUABLE UPON THE EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR ANY STATE
SECURITIES LAWS. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES UNDER SUCH
ACT OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED OR UNLESS SOLD PURSUANT TO AN EXEMPTION UNDER SUCH ACT. 

CS-    

Void
after

            , 20    

 
 

WARRANT
  of
  NUVASIVE, INC.    
    

        THIS CERTIFIES THAT, for value received,                        ,
together with his, her or its successors and assigns (the "Holder") is entitled to subscribe for and
purchase, on the terms hereof, up to                        
(            ) shares of the Common Stock of NuVasive, Inc., a Delaware corporation (the "Company"), subject to the following terms and
conditions: 

        1.    Series D-1 Preferred Stock and Warrant Purchase Agreement.    This Warrant ("Warrant") is
issued pursuant to that certain Series D-1 Preferred Stock and Warrant Purchase
Agreement dated                        , 20    (the "Agreement") by and among the Company, the Holder and
other Investors (as defined in the Agreement). 

        2.    Exercise of Warrant.    The terms and conditions upon which this Warrant may be exercised, and the Common Stock
covered hereby may be purchased, are as follows: 

        2.1    Term.    Subject to the terms hereof, this Warrant may be exercised at any time, or from time to time, in whole
or in part (the "Exercise Date"), after the date hereof; provided, however, that in no event may this Warrant be exercised later than 5:00 p.m. (Pacific Time) on the earlier of (a) the
close of business on                        , 20    , (b) (i) the closing of the acquisition of the
Company by another entity by means of a transaction or series of related transactions or
(ii) the closing of the sale of all or substantially all of the assets of the Company, unless the Company's stockholders of record prior to such acquisition or sale shall hold at least fifty
percent (50%) of the voting power of the acquiring or surviving entity immediately after such acquisition or sale, or (c) the initial underwritten public offering of the Company's Common Stock
(the "Exercise Period"). At least twenty (20) business days prior to the occurrence of an event specified in (b) or (c) of this Section 2.1, the Company shall deliver to
the Holder notice of such event and that the Holder's rights under this Warrant shall terminate upon the occurrence of such event; provided, that if the Holder receives such notice less than twenty
(20) days prior to the occurrence of such event, the Holder's right to exercise this Warrant shall be extended for a period of twenty (20) days after the date the Holder receives such
notice, after which time the Holder's rights under this Warrant shall terminate. The notice required by this paragraph may be waived by the Holder. 

        2.2    Number of Shares and Exercise Price.    This Warrant may be exercised
for                        shares of Common Stock
at a per share "Exercise Price" equal to $0.25, subject to adjustment as set forth herein. 

        2.3    Method of Exercise.    The exercise of the purchase rights evidenced by this Warrant shall be effected by
(a) the surrender of the Warrant, together with a duly executed copy of the form of subscription attached hereto as Schedule A, to the
Company at its principal offices and (b) the 

 

delivery
of the purchase price either (i) pursuant to Section 2.4 below, (ii) by surrendering securities of the Company held by the Holder prior to the exercise of this Warrant
with a value equal to the purchase price (as determined in good faith by the Board), or (iii) by check or bank draft payable to the Company's order or by wire transfer of same day funds to the
Company's account for the number of shares for which the purchase rights hereunder are being exercised or any other form of consideration approved by the Company's Board of Directors. Each exercise of
this Warrant shall be deemed to have been effected immediately prior to the close of business on the day on which this Warrant shall have been surrendered to the Company as provided herein or at such
later date as may be specified in the executed form of subscription, and at such time, the person or persons in whose name or names any certificate or certificates for shares of Common Stock shall be
issuable upon such exercise, as provided herein, shall be deemed to have become the holder or holders of record thereof. 

        2.4    Net Issue Exercise.    In lieu of exercising this Warrant by paying the Exercise Price in cash or by check, the
Holder may elect to receive shares equal to the value of this Warrant (or the portion thereof being canceled) by surrender of this Warrant at the principal office of the Company together with the
Notice of Cashless Exercise annexed hereto as Schedule B duly completed and executed in which event the Company shall issue to Holder a number of
shares of Common Stock computed using the following formula: 

	 	 	X=	(Y)(A-B)
 A	 	 
	

Where X =	
 	

The number of shares of Common Stock to be issued to Holder.
	

Y =	
 	

The number of shares of Common Stock purchasable under this Warrant.
	

A =	
 	

The fair market value of one share of Common Stock.
	

B =	
 	

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

For
purposes of this Section, the fair market value of one share of Common Stock shall be the fair market value of such share as determined in good faith by the Board of Directors of the Company. 

        3.    Adjustments.    The number and kind of shares of Common Stock issuable upon the exercise of this Warrant and the
exercise price hereunder shall be subject to adjustment from time to time upon the happening of certain events, as follows: 

        3.1    Splits and Subdivisions.    If the Company should at any time or from time to time fix a record date for the
effectuation of a split or subdivision of the outstanding shares of Common Stock or the determination of the holders of Common Stock entitled to receive a dividend or other distribution payable in
additional shares of Common Stock or other securities or rights convertible into, or entitling the holder thereof to receive directly or indirectly, additional shares of Common Stock (hereinafter
referred to as the "Common Stock Equivalents") without payment of any consideration by such holder for the additional shares of Common Stock or Common Stock Equivalents, then, as of such record date
(or the date of such distribution, split or subdivision if no record date is fixed), the purchase price shall be appropriately decreased and the number of shares of Common Stock which this Warrant is
exercisable for, if any, shall be appropriately increased in proportion to such increase of outstanding shares. 

        3.2    Combination of Shares.    If the number of shares of Common Stock outstanding at any time after the date hereof
is decreased by a combination of the outstanding shares of Common Stock, the purchase price shall be appropriately increased and the number of shares of Common Stock which this Warrant is exercisable
for, if any, shall be appropriately decreased in proportion to such decrease in outstanding shares. 

2

 

        3.3    Adjustments for Other Distributions.    In the event the Company shall declare a distribution payable in
securities of other persons, evidences of indebtedness issued by the Company or other persons, assets (excluding cash dividends) or options or rights not referred to in Section 3.1, then, in
each such case for the purpose of this Section 3.3, upon exercise of this Warrant the Holder shall be entitled to a proportionate share of any such distribution as though such Holder was the
holder of the number of shares of Common Stock of the Company into which this Warrant may be exercised as of the record date fixed for the determination of the holders of Common Stock of the Company
entitled to receive such distribution. 

        3.4    Reclassification or Reorganization.    If the Common Stock (or any shares of stock or other securities which
may be) issuable upon the exercise of this Warrant shall be changed into the same or different number of shares of any class or classes of stock, whether by capital reorganization, reclassification or
otherwise (other than a subdivision or combination of shares or stock dividend provided for in Sections 3.1, 3.2 and 3.3 above, or an acquisition of the Company or sale of assets provided for in
Section 2.1
above), then and in each such event the Holder shall be entitled to receive upon the exercise of this Warrant the kind and amount of shares of stock and other securities and property receivable upon
such reorganization, reclassification or other change, to which a holder of the number of shares of Common Stock (or any shares of stock or other securities which may be) issuable upon the exercise of
this Warrant would have received if this Warrant had been exercised immediately prior to such reorganization, reclassification or other change, all subject to further adjustment as provided herein. 

        3.5    Adjustment Upon Issuance of Additional Stock.    In the event the Conversion Price (as defined in the Company's
Amended and Restated Certificate of Incorporation, as amended from time to time (the "Restated Certificate")) of the Series D-1 Preferred Stock (the rights, preferences and
privileges of which are set forth in the Restated Certificate) is adjusted upon the issuance of Additional Stock (as defined in the Restated Certificate) or upon the expiration of any options or
rights, the termination of any rights to convert or exchange or the expiration of any options or rights related to convertible or exchangeable securities (collectively, an "Expiration"), the maximum
number of shares for which this Warrant may be exercised at any time shall be adjusted from time to time to an amount determined using the following formula: 

	 	 	X=	(Y)(A)
 (B)	 	 
	

Where X =	
 	

The maximum number of shares for which this Warrant may be exercised.
	

Y =	
 	

The number of shares for which this Warrant may be exercised immediately prior to the issuance of the Additional Stock or Expiration.
	

A =	
 	

The Conversion Price of the Series D-1 Preferred Stock in effect immediately prior to the issuance of the Additional Stock or Expiration.
	

B =	
 	

The Conversion Price of the Series D-1 Preferred Stock in effect immediately following the issuance of the Additional Stock or Expiration.

Example 1 (for hypothetical purposes only): 

Date:
10/1/03

Original Conversion Price = $2.53

Conversion Price in effect immediately prior to 10/1/03 = $2.53

Adjusted Conversion Price upon issuance of Additional Shares on 10/1/03 =$2.00

Shares of Series D-1 Preferred Stock issued at the Closing (as defined in the Agreement) = 1,000,000

Warrant exercisable for 400,000 shares immediately prior to 10/1/03 

3

 

Preferred Stock:    As of 10/1/03, pursuant to the Restated Certificate, each share of Series D-1 Preferred Stock is
convertible into 1.265 (or 2.53/2.00) shares of Common Stock. So, 1,000,000 shares of Series D-1 Preferred Stock are convertible into 1,265,000 shares of Common Stock. 

Warrant:    As of 10/1/03, the Warrant will become exercisable for 506,000 shares of Common Stock: 

	(506,000)=	(400,000)(2.53)
 (2.00)

	 	 

Example 2 (for hypothetical purposes only): 

Date:
4/1/04

Original Conversion Price = $2.53

Conversion Price in effect immediately prior to 4/1/04 = $2.00

Adjusted Conversion Price upon issuance of Additional Stock on 4/1/04 = $1.75

Shares of Series D-1 Preferred Stock issued at the Closing (as defined in the
Agreement) = 1,000,000

Warrant exercisable for 506,000 shares immediately prior to 4/1/04 

Preferred Stock:    As of 4/1/04, pursuant to the Restated Certificate, each share of Series D-1 Preferred Stock
convertible into 1.4457143 (or 2.53/1.75) shares of Common Stock. So, 1,000,000 shares of Preferred Stock are convertible into 1,445,714 shares of Common Stock. 

Warrant:    As of 4/1/04, Warrant will become exercisable for 578,286 shares of Common Stock: 

	(578,286)=	(506,000)(2.00)
 (1.75)

	 	 

        3.6    Notice of Adjustments and Record Dates.    The Company shall promptly notify the Holder
in writing of each adjustment or readjustment of the exercise price hereunder and the number of shares of Common Stock issuable upon the exercise of this Warrant. Such notice shall state the
adjustment or readjustment and show in reasonable detail the facts on which that adjustment or readjustment is based. In the event of any taking by the Company of a record of the holders of Common
Stock for the purpose of determining the holders thereof who are entitled to receive any dividend or other distribution, the Company shall notify the Holder in writing of such record date at least
twenty (20) days prior to the date specified therein. 

        3.7    No Impairment.    The Company shall not avoid or seek to avoid the observance or performance of any of the
terms to be observed or performed hereunder by the Company, but shall at all times in good faith assist in the carrying out of all the provisions of this Warrant. Without limiting the generality of
the foregoing, the Company (a) shall at all times following the beginning of the Exercise Period reserve and keep available a number of its authorized shares of Common Stock, free from all
preemptive rights therein, which shall be sufficient to permit the exercise of this Warrant and (b) shall take all such action as may be necessary or appropriate in order that all shares of
Common Stock as may be issued pursuant to the exercise of this Warrant shall, upon issuance, be duly and validly issued, fully paid and nonassessable and free from all taxes, liens and charges with
respect to the issue thereof. 

        4.    Investment Intent.    Unless a current registration statement under the Securities Act of 1933, as amended,
shall be in effect with respect to the securities to be issued upon exercise of this Warrant, the Holder, by accepting this Warrant, covenants and agrees that, at the time of exercise hereof, and at
the time of any proposed transfer of any securities acquired upon exercise hereof, the Holder shall deliver to the Company a written statement that the securities acquired by the Holder upon exercise
hereof are for the account of the Holder for investment and are not acquired with a view to, or for sale in 

4

 

connection
with, any distribution thereof (or any portion thereof) and are being acquired with no present intention (at any such time) of offering or distributing such securities (or any portion
thereof). 

        5.    Replacement of the Warrant.    On receipt by the Company of evidence reasonably satisfactory to the Company of
the loss, theft, destruction or mutilation of this Warrant and, in the case of any such loss, theft or destruction of this Warrant, on delivery of an indemnity agreement reasonably satisfactory in
form and amount to the Company or, in the case of any such mutilation, on surrender and cancellation of the Warrant, the Company at its expense shall execute and deliver to the Holder, in lieu
thereof, a new Warrant of like tenor. 

        6.    No Rights or Liability as a Stockholder.    This Warrant does not entitle the Holder hereof to any voting rights
or other rights as a stockholder of the Company. No provisions hereof, in the absence of affirmative action by the Holder to purchase Common Stock, and no enumeration herein of the rights or
privileges of the Holder, shall give rise to any liability of the Holder as a stockholder of the Company. 

        7.    Miscellaneous.    

        7.1    Transfer of Warrant.    Subject to the transfer restrictions referred to in the legend endorsed hereon and
applicable restrictions described in Section 3 of the Agreement, this Warrant and all rights hereunder are transferable, in whole or in part without charge to the Holder, upon surrender of this
Warrant with a properly executed assignment in substantially the form attached hereto as Schedule C at the principal office of the Company. 

        7.2    Titles and Subtitles.    The titles and subtitles used in this Warrant are for convenience only and are not to
be considered in construing or interpreting this Warrant. 

        7.3    Notices.    Any notice required or permitted under this Warrant shall be given in writing and in accordance
with Section 7.6 of the Agreement (for purposes of which, the term "Investors" shall mean Holder hereunder), except as otherwise expressly provided in this Warrant. 

        7.4    Attorneys' Fees.    If any action at law or in equity is necessary to enforce or interpret the terms of this
Warrant, the prevailing party shall be entitled to reasonable attorneys' fees, costs and disbursements in addition to any other relief to which such party may be entitled. 

        7.5    Amendments and Waivers.    This Warrant is issued by the Company pursuant to the Agreement and all warrants
issued by the Company pursuant to the Agreement shall be collectively referred to in this Section 7.5 as the "Warrants." Any term of this Warrant may be amended and the observance of any term
of this Warrant may be waived (either generally or in a particular instance and either retroactively or prospectively), with the written consent of the Company and the holders of outstanding Warrants
representing together the right to purchase at least sixty six and two-thirds percent (662/3%) of all of the Common Stock of the Company subject to purchase pursuant to all
of the outstanding Warrants; provided, however, that any amendments made to this Warrant must be made to each of the Warrants. Any amendment or waiver effected in accordance with this
Section 7.5 shall be binding upon the Holder of this Warrant (and of any securities into which this Warrant is convertible), each future holder of all such securities, and the Company. 

        7.6    Market Standoff.    Holder hereby agrees that, during the period of duration specified by the Company and an
underwriter of Common Stock or other securities of the Company, following the effective date of a registration statement of the Company filed under the Act, it shall not, to the extent requested by
the Company and such underwriter, directly or indirectly sell, offer to sell, contract to sell (including, without limitation, any short sale), grant any option to purchase or otherwise transfer or
dispose of (other than to donees, affiliates or partners of Holder who agree to be similarly bound) any securities represented by this Warrant except Common Stock included 

5

 

in
such registration; provided, however, that such agreement shall only apply to the first such registration statement of the Company which covers Common Stock (or other securities) to be sold on its
behalf to the public in an underwritten offering and that such agreement shall not exceed 180 days after the effective date for such registration statement. 

In
order to enforce the foregoing covenant, the Company may impose stop-transfer instructions with respect to the securities represented by this Warrant until the end of such period. 

        7.7    Severability.    If one or more provisions of this Warrant are held to be unenforceable under applicable law,
such provision shall be excluded from this Warrant and the balance of the Warrant shall be interpreted as if such provision were so excluded and shall be enforceable in accordance with its terms. 

        7.8    Governing Law.    This Warrant shall be governed by and construed and enforced in accordance with the laws of
the State of Delaware, without giving effect to its conflicts of laws principles. 

        7.9    Warrant Exchangeable for Different Denominations.    This Warrant is exchangeable, upon the surrender hereof by
the Holder at the principal office of the Company, for new Warrants of like tenor representing in the aggregate the purchase rights hereunder, and each of such new Warrants shall represent such
portion of such rights as is designated by the Holder at the time of such surrender. The date the Company initially issues this Warrant shall be deemed to be the "Date of Issuance" hereof regardless
of the number of times new certificates representing the unexpired and unexercised rights formerly represented by this Warrant shall be issued. All Warrants representing portions of the rights
hereunder are referred to herein as the "Warrants." 

        7.10    Replacement.    Upon receipt of evidence reasonably satisfactory to the Company (an affidavit of the Holder
shall be satisfactory) of the ownership and the loss, theft, destruction or mutilation of any certificate evidencing this Warrant, and in the case of any such loss, theft of destruction, upon receipt
of indemnity reasonably satisfactory to the Company (provided that if the Holder is a financial institution or other institutional investor it own agreement shall be satisfactory), or in the case of
any such mutilation upon surrender of such certificate, the Company shall (at its expense) execute and deliver in lieu of such certificate a new certificate of like kind representing the same rights
represented by such lost, stolen destroyed or mutilated certificate and dated the date of such lost, stolen, destroyed or mutilated certificate. 

        7.11    Certain Expenses.    The Company shall pay all expenses incurred in connection with, and all taxes (other than
stock transfer taxes) and other governmental charges that may be imposed in respect of, the issuance, sale and delivery of the Warrants or the shares of Common Stock issuable hereunder. 

	Date:                        , 20    	 	NUVASIVE, INC.,

a Delaware corporation
	

 	
 	

By:	

    
 Alexis V. Lukianov, President

[SIGNATURE
PAGE TO WARRANT] 

6

  

 
 

SCHEDULE A    
    
    FORM OF SUBSCRIPTION    
    
    (TO BE SIGNED ONLY ON EXERCISE OF WARRANT)    
    

	To:
	NUVASIVE, INC.

        The
undersigned, the holder of the Warrant attached hereto, hereby irrevocably elects to exercise the purchase rights represented by such Warrant for, and to purchase thereunder,
                        * shares of Common Stock of NuVasive, Inc., and herewith makes payment of
$                        and requests that the certificates for such shares be issued in the name of, and
delivered to                        , whose address
is                        , and whose social security number/taxpayer identification number
is                        . 

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

 	
 	

    
 (Print Name)
	

Address:	
 	

    
    
    

	*
	Insert
here the number of shares as to which the Warrant is being exercised. 

Schedule A-1

  

 
 

SCHEDULE B    
    
    NOTICE OF CASHLESS EXERCISE    
    

	To:
	NUVASIVE, INC.

        (1)   The
undersigned hereby elects to acquire in a cashless exercise                        shares of the Common Stock (as defined in the
attached Warrant) of NuVasive, Inc.
pursuant to the terms of Section 2.4 of the attached Warrant. 

        (2)   Please
issue a certificate or certificates representing said shares of Common Stock in the name of the undersigned or in such other name as is specified below: 

	

 	
 	

By:	

    

	 	 	Name:	    

Schedule B-1

  

 
 

SCHEDULE C    
    
    ASSIGNMENT FORM    
    

        (To assign the foregoing Warrant, execute this form and supply required information. Do not use this form to purchase shares.) 

        For
value received, the foregoing Warrant and all rights evidenced thereby are hereby assigned to 

	Name:	    

	(Please Print)
	

Address:	

    

	(Please Print)
	

Date:	

                             
	

Holder's Signature:	

 

    

	

Holder's Address:	

  

    

NOTE:    The signature to this Assignment must correspond with the name as it appears on the face of the Warrant,
without alteration or enlargement or any change whatever. Officers of corporations and those acting in a fiduciary or other representative capacity should file proper evidence of authority to assign
the foregoing Warrant. 

Schedule C-1

 
 

SCHEDULE OF WARRANT HOLDERS    
    

	Date of Issuance
 
	 	Warrantholder

	07/11/02	 	Kleiner Perkins Caufield & Byers VIII, L.P.
	07/11/02	 	KPCB VIII Founders Fund
	07/11/02	 	Domain Partners IV, L.P.
	07/11/02	 	William Blair Capital Partners VII, L.P.
	07/11/02	 	William Blair Capital Partners VII QP, L.P.
	07/29/02	 	Kleiner Perkins Caufield & Byers VIII, L.P.
	07/29/02	 	KPCB VIII Founders Fund
	07/29/02	 	Domain Partners IV, L.P.
	07/29/02	 	William Blair Capital Partners VII, L.P.
	07/29/02	 	William Blair Capital Partners VII QP, L.P.
	07/31/02	 	Johnson & Johnson Development Corporation
	01/01/03	 	A. M. Pappas Life Science Ventures II, L.P.
	06/13/03	 	Caisse de depot et placement du Quebec
	06/19/03	 	Kleiner Perkins Caufield & Byers VIII, L.P.
	06/19/03	 	KPCB VIII Founders Fund
	06/19/03	 	Enterprise Partners Annex Fund IV, LP
	06/19/03	 	Enterprise Partners Annex Fund IV-A, LP
	06/19/03	 	Domain Partners IV, L.P.
	06/19/03	 	Caisse de depot ed placement du Quebec
	06/19/03	 	A. M. Pappas Life Science Ventures II, LP
	06/19/03	 	William Blair Capital Partners VII, L.P.
	06/19/03	 	William Blair Capital Partners VII QP, L.P.
	06/19/03	 	Johnson & Johnson Development Corporation
	06/30/03	 	Innovative Orthotics & Rehabilitation Inc.
	06/30/03	 	David Merrill
	06/30/03	 	Klaus Hagenmeyer
	06/30/03	 	Frederick J. Thabet
	06/30/03	 	Craig Sparks
	06/30/03	 	Todd Marinchak
	06/30/03	 	Peter A. Guagliano
	06/30/03	 	Regis William Haid, Jr.
	06/30/03	 	Mark D. Peterson
	06/30/03	 	Alexander & Marjorie Vaccaro
	06/30/03	 	Griffith Rogan Fry
	06/30/03	 	Joe C. Loy
	06/30/03	 	Keith C. Valentine
	06/30/03	 	SSI Spinal Solutions
	06/30/03	 	James Gleason
	06/30/03	 	Anthony Ross
	06/30/03	 	Jeff Hughes
	06/30/03	 	R. Jay Thabet, Jr.
	06/30/03	 	Domain Partners IV, L.P.
	06/30/03	 	Integral Capital Partners VI, L.P.
	06/30/03	 	Ronald Clayton Childs
	07/11/03	 	Tom L. Meyer, III
	07/11/03	 	Gregg Lacoste
	07/11/03	 	William Houston, Jr.
	07/11/03	 	Behrooz A. Akbarnia
	07/11/03	 	Sam & Dawn Maywood
	07/11/03	 	Bruce & Nina Van Dam
	 	 	 

	07/11/03	 	Scot Martinelli & Bobbi-Jo Romanishan
	07/11/03	 	MLPF&S Cust. William Player Barefoot IRA
	07/11/03	 	Scott Kitchel
	07/11/03	 	Rudolph Bertagnoli
	07/11/03	 	Jonathan Spangler
	07/11/03	 	Integral Capital Partners VI, L.P.
	07/11/03	 	Tony Salerni
	07/17/03	 	Kevin Armstrong
	07/17/03	 	Andy Cappuccino

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EXHIBIT 10.10

FORM OF WARRANT

WARRANT of NUVASIVE, INC.

SCHEDULE A FORM OF SUBSCRIPTION (TO BE SIGNED ONLY ON EXERCISE OF WARRANT)

SCHEDULE B NOTICE OF CASHLESS EXERCISE

SCHEDULE C ASSIGNMENT FORM

SCHEDULE OF WARRANT HOLDERSQuickLinks
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EXHIBIT 10.11    
    

 
 

NUVASIVE, INC.
  1998 STOCK OPTION/STOCK ISSUANCE PLAN    
    

 
 

ARTICLE ONE
  
    GENERAL PROVISIONS    
    

I.     PURPOSE OF THE PLAN  

        This 1998 Stock Option/Stock Issuance Plan is intended to promote the interests of Nuvasive, Inc., a Delaware corporation, by providing eligible persons in
the Corporation's employ or service with the opportunity to acquire a proprietary interest, or otherwise increase their proprietary interest, in the Corporation as an incentive for them to continue in
such employ or service. 

        Capitalized
terms herein shall have the meanings assigned to such terms in the attached Appendix. 

II.    STRUCTURE OF THE PLAN  

        A.    The
Plan shall be divided into two (2) separate equity programs: 

        (i)    the
Option Grant Program under which eligible persons may, at the discretion of the Plan Administrator, be granted options to purchase shares of Common Stock, and 

        (ii)   the
Stock Issuance Program under which eligible persons may, at the discretion of the Plan Administrator, be issued shares of Common Stock directly, either through the
immediate purchase of such shares or as a bonus for services rendered the Corporation (or any Parent or Subsidiary). 

        B.    The
provisions of Articles One and Four shall apply to both equity programs under the Plan and shall accordingly govern the interests of all persons under the Plan. 

III.  ADMINISTRATION OF THE PLAN  

        A.    The
Plan shall be administered by the Board. However, any or all administrative functions otherwise exercisable by the Board may be delegated to the Committee. Members of
the Committee shall serve for such period of time as the Board may determine and shall be subject to removal by the Board at any time. The Board may also at any time terminate the functions of the
Committee and reassume all powers and authority previously delegated to the Committee. 

        B.    The
Plan Administrator shall have full power and authority (subject to the provisions of the Plan) to establish such rules and regulations as it may deem appropriate for
proper administration of the Plan and to make such determinations under, and issue such interpretations of, the Plan and any outstanding options or stock issuances thereunder as it may deem necessary
or advisable. Decisions of the Plan Administrator shall be final and binding on all parties who have an interest in the Plan or any option or stock issuance thereunder. 

IV.    ELIGIBILITY  

        A.    The
persons eligible to participate in the Plan are as follows: 

        (i)    Employees, 

        (ii)   non-employee
members of the Board or the non-employee members of the board of directors of any Parent or Subsidiary, and 

 

        (iii)  consultants
and other independent advisors who provide services to the Corporation (or any Parent or Subsidiary). 

        B.    The
Plan Administrator shall have full authority to determine, (i) with respect to the grants made under the Option Grant Program, which eligible persons are to
receive the option grants, the time or times when those grants are to be made, the number of shares to be covered by each such grant, the status of the granted option as either an Incentive Option or
a Non-Statutory Option, the time or times when each option is to become exercisable, the vesting schedule (if any) applicable to the option shares and the maximum term for which the option
is to remain outstanding, and (ii) with respect to stock issuances made under the Stock Issuance Program, which eligible persons are to receive such stock issuances, the time or times when
those issuances are to be made, the number of shares to be issued to each Participant, the vesting schedule (if any) applicable to the issued shares and the consideration to be paid by the Participant
for such shares. 

        C.    The
Plan Administrator shall have the absolute discretion either to grant options in accordance with the Option Grant Program or to effect stock issuances in accordance
with the Stock Issuance Program. 

V.     STOCK SUBJECT TO THE PLAN  

        A.    The
stock issuable under the Plan shall be shares of authorized but unissued or reacquired Common Stock. The maximum number of shares of Common Stock which may be issued
over the term of the Plan shall not exceed 1,312,500 shares. 

        B.    Shares
of Common Stock subject to outstanding options shall be available for subsequent issuance under the Plan to the extent (i) the options expire or terminate
for any reason prior to exercise in full or (ii) the options are cancelled in accordance with the cancellation-regrant provisions of Article Two. Unvested shares issued under the Plan and
subsequently repurchased by the Corporation, at the option exercise or direct issue price paid per share, pursuant to the Corporation's repurchase rights under the Plan shall be added back to the
number of shares of Common Stock reserved for issuance under the Plan and shall accordingly be available for reissuance through one or more subsequent option grants or direct stock issuances under the
Plan. 

        C.    Should
any change be made to the Common Stock by reason of any stock split, stock dividend, recapitalization, combination of shares, exchange of shares or other change
affecting the outstanding Common Stock as a class without the Corporation's receipt of consideration, appropriate adjustments shall be made to (i) the maximum number and/or class of securities
issuable under the Plan and (ii) the number and/or class of securities and the exercise price per share in effect under each outstanding option in order to prevent the dilution or enlargement
of benefits thereunder. The adjustments determined by the Plan Administrator shall be final, binding and conclusive. In no event shall any such adjustments be made in connection with the conversion of
one or more outstanding shares of the Corporation's preferred stock into shares of Common Stock. 

 
 

ARTICLE TWO    
    
    OPTION GRANT PROGRAM    
    

I.     OPTION TERMS  

        Each option shall be evidenced by one or more documents in the form approved by the Plan Administrator; provided,
however, that each such document shall comply with the terms specified below.
Each document evidencing an Incentive Option shall, in addition, be subject to the provisions of the Plan applicable to such options. 

2

   
        A.    Exercise Price.    

        1.     The
exercise price per share shall be fixed by the Plan Administrator in accordance with the following provisions: 

        (i)    The
exercise price per share shall not be less than eighty-five percent (85%) of the Fair Market Value per share of Common Stock on the option grant date. 

        (ii)   If
the person to whom the option is granted is a 10% Stockholder, then the exercise price per share shall not be less than one hundred ten percent (110%) of the Fair
Market Value per share of Common Stock on the option grant date. 

        2.     The
exercise price shall become immediately due upon exercise of the option and shall, subject to the provisions of Section I of Article Four and the documents
evidencing the option, be payable in cash or check made payable to the Corporation. Should the Common Stock be registered under Section 12 of the 1934 Act at the time the option is exercised,
then the exercise price may also be paid as follows: 

        (i)    in
shares of Common Stock held for the requisite period necessary to avoid a charge to the Corporation's earnings for financial reporting purposes and valued at Fair
Market Value on the Exercise Date, or 

        (ii)   to
the extent the option is exercised for vested shares, through a special sale and remittance procedure pursuant to which the Optionee shall concurrently provide
irrevocable instructions (A) to a Corporation-designated brokerage firm to effect the immediate sale of the purchased shares and remit to the Corporation, out of the sale proceeds available on
the settlement date, sufficient funds to cover the aggregate exercise price payable for the purchased shares plus all applicable Federal, state and local income and employment taxes required to be
withheld by the Corporation by reason of such exercise and (B) to the Corporation to deliver the certificates for the purchased shares directly to such brokerage firm in order to complete the
sale. 

        Except
to the extent such sale and remittance procedure is utilized, payment of the exercise price for the purchased shares must be made on the Exercise Date. 

        B.    Exercise and Term of Options.    Each option shall be exercisable at such time or
times, during such period and for such number of shares as shall be determined by the Plan Administrator and set forth in the documents evidencing the option grant. However, no option shall have a
term in excess of ten (10) years measured from the option grant date. 

        C.    Effect of Termination of Service.    

        1.     The
following provisions shall govern the exercise of any options held by the Optionee at the time of cessation of Service or death: 

        (i)    Should
the Optionee cease to remain in Service for any reason other than death, Disability or Misconduct, then the Optionee shall have a period of three
(3) months following the date of such cessation of Service during which to exercise each outstanding option held by such Optionee. 

        (ii)   Should
Optionee's Service terminate by reason of Disability, then the Optionee shall have a period of twelve (12) months following the date of such cessation of
Service during which to exercise each outstanding option held by such Optionee. 

        (iii)  If
the Optionee dies while holding an outstanding option, then the personal representative of his or her estate or the person or persons to whom the option is
transferred pursuant to the Optionee's will or the laws of inheritance shall have a twelve (12)-month period following the date of the Optionee's death to exercise such option. 

3

 

        (iv)  Under
no circumstances, however, shall any such option be exercisable after the specified expiration of the option term. 

        (v)   During
the applicable post-Service exercise period, the option may not be exercised in the aggregate for more than the number of vested shares for which the
option is exercisable on the date of the Optionee's cessation of Service. Upon the expiration of the applicable exercise period or (if earlier) upon the expiration of the option term, the option shall
terminate and cease to be outstanding for any vested shares for which the option has not been exercised. However, the option shall, immediately upon the Optionee's cessation of Service, terminate and
cease to be outstanding with
respect to any and all option shares for which the option is not otherwise at the time exercisable or in which the Optionee is not otherwise at that time vested. 

        (vi)  Should
Optionee's Service be terminated for Misconduct, then all outstanding options held by the Optionee shall terminate immediately and cease to remain outstanding. 

        2.     The
Plan Administrator shall have the discretion, exercisable either at the time an option is granted or at any time while the option remains outstanding, to: 

        (i)    extend
the period of time for which the option is to remain exercisable following Optionee's cessation of Service or death from the limited period otherwise in effect
for that option to such greater period of time as the Plan Administrator shall deem appropriate, but in no event beyond the expiration of the option term, and/or 

        (ii)   permit
the option to be exercised, during the applicable post-Service exercise period, not only with respect to the number of vested shares of Common Stock
for which such option is exercisable at the time of the Optionee's cessation of Service but also with respect to one or more additional installments in which the Optionee would have vested under the
option had the Optionee continued in Service. 

        D.    Stockholder Rights.    The holder of an option shall have no stockholder rights
with respect to the shares subject to the option until such person shall have exercised the option, paid the exercise price and become the recordholder of the purchased shares. 

        E.    Unvested Shares.    The Plan Administrator shall have the discretion to grant
options which are exercisable for unvested shares of Common Stock. Should the Optionee cease Service while holding such unvested shares, the Corporation shall have the right to repurchase, at the
exercise price paid per share, any or all of those unvested shares. The terms upon which such repurchase right shall be exercisable (including the period and procedure for exercise and the appropriate
vesting schedule for the purchased shares) shall be established by the Plan Administrator and set forth in the document evidencing such repurchase right. The Plan Administrator may not impose a
vesting schedule upon any option grant or the shares of Common Stock subject to that option which is more restrictive than twenty percent (20%) per year vesting, with the initial vesting to occur not
later than one (1) year after the option grant date. However, such limitation shall not be applicable to any option grants made to individuals who are officers of the Corporation,
non-employee Board members or independent consultants. 

        F.    First Refusal Rights.    Until such time as the Common Stock is first registered
under Section 12 of the 1934 Act, the Corporation shall have the right of first refusal with respect to any proposed disposition by the Optionee (or any successor in interest) of any shares of
Common Stock issued under the Plan.
Such right of first refusal shall be exercisable in accordance with the terms established by the Plan Administrator and set forth in the document evidencing such right. 

        G.    Limited Transferability of Options.    During the lifetime of the Optionee,
Incentive Options shall be exercisable only by the Optionee and shall not be assignable or transferable other than by will or by the laws of descent and distribution following the Optionee's death.
Non-Statutory Options may, 

4

 

to
the extent permitted by the Plan Administrator, be assigned in whole or in part during the Optionee's lifetime to one or more members of the Optionee's immediate family or to a trust established
exclusively for one or more such family members. The terms applicable to the assigned portion shall be the same as those in effect for the option immediately prior to such assignment and shall be set
forth in such documents issued to the assignee as the Plan Administrator may deem appropriate. 

        H.    Withholding.    The Corporation's obligation to deliver shares of Common Stock upon
the exercise of any options granted under the Plan shall be subject to the satisfaction of all applicable Federal, state and local income and employment tax withholding requirements. 

II.    INCENTIVE OPTIONS  

        The terms specified below shall be applicable to all Incentive Options. Except as modified by the provisions of this Section II, all the provisions of
Articles One, Two and Four shall be applicable to Incentive Options. Options which are specifically designated as Non-Statutory Options shall not be subject to
the terms of this Section II. 

        A.    Eligibility.    Incentive Options may only be granted to Employees. 

        B.    Exercise Price.    The exercise price per share shall not be less than one hundred
percent (100%) of the Fair Market Value per share of Common Stock on the option grant date. 

        C.    Dollar Limitation.    The aggregate Fair Market Value of the shares of Common Stock
(determined as of the respective date or dates of grant) for which one or more options granted to any Employee under the Plan (or any other option plan of the Corporation or any Parent or Subsidiary)
may for the first time become exercisable as Incentive Options during any one (1) calendar year shall not exceed the sum
of One Hundred Thousand Dollars ($100,000). To the extent the Employee holds two (2) or more such options which become exercisable for the first time in the same calendar year, the foregoing
limitation on the exercisability of such options as Incentive Options shall be applied on the basis of the order in which such options are granted. 

        D.    10% Stockholder.    If any Employee to whom an Incentive Option is granted is a 10%
Stockholder, then the option term shall not exceed five (5) years measured from the option grant date. 

III.  CORPORATE TRANSACTION  

        A.    The
shares subject to each option outstanding under the Plan at the time of a Corporate Transaction shall automatically vest in full so that each such option shall,
immediately prior to the effective date of the Corporate Transaction, become fully exercisable for all of the shares of Common Stock at the time subject to that option and may be exercised for any or
all of those shares as fully-vested shares of Common Stock. However, the shares subject to an outstanding option shall not vest on such an accelerated
basis if and to the extent: (i) such option is assumed by the successor corporation (or parent thereof) in the Corporate Transaction and any repurchase rights of the Corporation with respect to
the unvested option shares are concurrently assigned to such successor corporation (or parent thereof) or (ii) such option is to be replaced with a cash incentive program of the successor
corporation which preserves the spread existing on the unvested option shares at the time of the Corporate Transaction and provides for subsequent payout in accordance with the same vesting schedule
applicable to those unvested option shares or (iii) the acceleration of such option is subject to other limitations imposed by the Plan Administrator at the time of the option grant. 

        B.    All
outstanding repurchase rights shall also terminate automatically, and the shares of Common Stock subject to those terminated rights shall immediately vest in full, in
the event of any Corporate Transaction, except to the extent: (i) those repurchase rights are assigned to the successor 

5

 

corporation
(or parent thereof) in connection with such Corporate Transaction or (ii) such accelerated vesting is precluded by other limitations imposed by the Plan Administrator at the time
the repurchase right is issued. 

        C.    Immediately
following the consummation of the Corporate Transaction, all outstanding options shall terminate and cease to be outstanding, except to the extent assumed by
the successor corporation (or parent thereof). 

        D.    Each
option which is assumed in connection with a Corporate Transaction shall be appropriately adjusted, immediately after such Corporate Transaction, to apply to the
number and class of securities which would have been issuable to the Optionee in consummation of such Corporate Transaction, had the option been exercised immediately prior to such Corporate
Transaction. Appropriate adjustments shall also be made to (i) the number and class of securities available for issuance under the Plan following the consummation of such Corporate Transaction
and (ii) the exercise price payable per share under each outstanding option, provided the aggregate exercise price payable for such securities
shall remain the same. 

        E.    The
Plan Administrator shall have the discretion, exercisable either at the time the option is granted or at any time while the option remains outstanding, to structure
one or more options so that those options shall automatically accelerate and vest in full (and any repurchase rights of the Corporation with respect to the unvested shares subject to those options
shall immediately terminate) upon the occurrence of a Corporate Transaction, whether or not those options are to be assumed in the Corporate Transaction. 

        F.     The
Plan Administrator shall also have full power and authority, exercisable either at the time the option is granted or at any time while the option remains outstanding,
to structure such option so that the shares subject to that option will automatically vest on an accelerated basis should the Optionee's Service terminate by reason of an Involuntary Termination
within a designated period (not to exceed eighteen (18) months) following the effective date of any Corporate Transaction in which the option is assumed and the repurchase rights applicable to
those shares do not otherwise terminate. Any option so accelerated shall remain exercisable for the fully-vested option shares until the expiration or sooner termination of the option term. In
addition, the Plan Administrator may provide that one or more of the Corporation's outstanding repurchase rights with respect to shares held by the Optionee at the time of such Involuntary Termination
shall immediately terminate on an accelerated basis, and the shares subject to those terminated rights shall accordingly vest at that time. 

        G.    The
portion of any Incentive Option accelerated in connection with a Corporate Transaction shall remain exercisable as an Incentive Option only to the extent the
applicable One Hundred Thousand Dollar limitation is not exceeded. To the extent such dollar limitation is exceeded, the accelerated portion of such option shall be exercisable as a
Non-Statutory Option under the Federal tax laws. 

        H.    The
grant of options under the Plan shall in no way affect the right of the Corporation to adjust, reclassify, reorganize or otherwise change its capital or business
structure or to merge, consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets. 

IV.    CANCELLATION AND REGRANT OF OPTIONS  

        The Plan Administrator shall have the authority to effect, at any time and from time to time, with the consent of the affected option holders, the cancellation of
any or all outstanding options under the Plan and to grant in substitution therefor new options covering the same or different number of shares of Common Stock but with an exercise price per share
based on the Fair Market Value per share of Common Stock on the new option grant date. 

6

  

 
 

ARTICLE THREE    
    
    STOCK ISSUANCE PROGRAM    
    

I.    STOCK ISSUANCE TERMS  

        Shares of Common Stock may be issued under the Stock Issuance Program through direct and immediate issuances without any intervening option grants. Each such
stock issuance shall be evidenced by a Stock Issuance Agreement which complies with the terms specified below. 

        A.    Purchase
Price. 

        1.     The
purchase price per share shall be fixed by the Plan Administrator but shall not be less than eighty-five percent (85%) of the Fair Market Value per share
of Common Stock on the issue date. However, the purchase price per share of Common Stock issued to a 10% Stockholder shall not be less than one hundred and ten percent (110%) of such Fair Market
Value. 

        2.     Subject
to the provisions of Section I of Article Four, shares of Common Stock may be issued under the Stock Issuance Program for any of the following items of
consideration which the Plan Administrator may deem appropriate in each individual instance: 

        (i)    cash
or check made payable to the Corporation, or 

        (ii)   past
services rendered to the Corporation (or any Parent or Subsidiary). 

        B.    Vesting
Provisions. 

        1.     Shares
of Common Stock issued under the Stock Issuance Program may, in the discretion of the Plan Administrator, be fully and immediately vested upon issuance or may vest
in one or more installments over the Participant's period of Service or upon attainment of specified performance objectives. However, the Plan Administrator may not impose a vesting schedule upon any
stock issuance effected under the Stock Issuance Program which is more restrictive than twenty percent (20%) per year vesting, with initial vesting to occur not later than one (1) year after
the issuance date. Such limitation shall not apply to any Common Stock issuances made to the officers of the Corporation, non-employee Board members or independent consultants. 

        2.     Any
new, substituted or additional securities or other property (including money paid other than as a regular cash dividend) which the Participant may have the right to
receive with respect to the Participant's unvested shares of Common Stock by reason of any stock dividend, stock split, recapitalization, combination of shares, exchange of shares or other change
affecting the outstanding Common Stock as a class without the Corporation's receipt of consideration shall be issued subject to (i) the same vesting requirements applicable to the Participant's
unvested shares of Common Stock and (ii) such escrow arrangements as the Plan Administrator shall deem appropriate. 

        3.     The
Participant shall have full stockholder rights with respect to any shares of Common Stock issued to the Participant under the Stock Issuance Program, whether or not
the Participant's interest in those shares is vested. Accordingly, the Participant shall have the right to vote such shares and to receive any regular cash dividends paid on such shares. 

        4.     Should
the Participant cease to remain in Service while holding one or more unvested shares of Common Stock issued under the Stock Issuance Program or should the
performance objectives not be attained with respect to one or more such unvested shares of Common Stock, then those shares shall be immediately surrendered to the Corporation for cancellation, and the
Participant shall have no further stockholder rights with respect to those shares. To the extent the surrendered shares were previously issued to the Participant for consideration paid in cash or cash
equivalent (including the Participant's purchase-money indebtedness), the Corporation shall repay 

7

 

to
the Participant the cash consideration paid for the surrendered shares and shall cancel the unpaid principal balance of any outstanding purchase-money note of the Participant attributable to such
surrendered shares. 

        5.     The
Plan Administrator may in its discretion waive the surrender and cancellation of one or more unvested shares of Common Stock (or other assets attributable thereto)
which would otherwise occur upon the non-completion of the vesting schedule applicable to those shares. Such waiver
shall result in the immediate vesting of the Participant's interest in the shares of Common Stock as to which the waiver applies. Such waiver may be effected at any time, whether before or after the
Participant's cessation of Service or the attainment or non-attainment of the applicable performance objectives. 

        C.    First
Refusal Rights. Until such time as the Common Stock is first registered under Section 12 of the 1934 Act, the Corporation shall
have the right of first refusal with respect to any proposed disposition by the Participant (or any successor in interest) of any shares of Common Stock issued under the Stock Issuance Program. Such
right of first refusal shall be exercisable in accordance with the terms established by the Plan Administrator and set forth in the document evidencing such right. 

II.    CORPORATE TRANSACTION  

        A.    Upon the occurrence of a Corporate Transaction, all outstanding repurchase rights under the Stock Issuance Program shall terminate automatically,
and the shares of Common Stock subject to those terminated rights shall immediately vest in full, except to the extent: (i) those repurchase rights are assigned to the successor corporation (or
parent thereof) in connection with such Corporate Transaction or (ii) such accelerated vesting is precluded by other limitations imposed by the Plan Administrator at the time the repurchase
right is issued. 

        B.    The
Plan Administrator shall have the discretionary authority, exercisable either at the time the unvested shares are issued or any time while the Corporation's
repurchase rights with respect to those shares remain outstanding, to provide that those rights shall automatically terminate on an accelerated basis, and the shares of Common Stock subject to those
terminated rights shall immediately vest, in the event the Participant's Service should subsequently terminate by reason of an Involuntary Termination within a designated period (not to exceed
eighteen (18) months) following the effective date of any Corporate Transaction in which those repurchase rights are assigned to the successor corporation (or parent thereof). 

III.  SHARE ESCROW/LEGENDS  

        Unvested shares may, in the Plan Administrator's discretion, be held in escrow by the Corporation until the Participant's interest in such shares vests or may be
issued directly to the Participant with restrictive legends on the certificates evidencing those unvested shares. 

 
 

ARTICLE FOUR    
    
    MISCELLANEOUS    
    

I.     FINANCING  

        The Plan Administrator may permit any Optionee or Participant to pay the option exercise price under the Option Grant Program or the purchase price for shares
issued under the Stock Issuance Program by delivering a full-recourse, interest bearing promissory note payable in one or more installments and secured by the purchased shares. The terms
of any such promissory note (including the interest rate and the terms of repayment) shall be established by the Plan Administrator in its sole discretion. In no event may the maximum credit available
to the Optionee or Participant exceed the 

8

 

sum
of (i) the aggregate option exercise price or purchase price payable for the purchased shares (less the par value of those shares) plus (ii) any Federal, state and local income and
employment tax liability incurred by the Optionee or the Participant in connection with the option exercise or share purchase. 

II.    EFFECTIVE DATE AND TERM OF PLAN  

        A.    The Plan shall become effective when adopted by the Board, but no option granted under the Plan may be exercised, and no shares shall be issued
under the Plan, until the Plan is approved by the Corporation's stockholders. If such stockholder approval is not obtained within twelve (12) months after the date of the Board's adoption of
the Plan, then all options previously granted under the Plan shall terminate and cease to be outstanding, and no further options shall be granted and no shares shall be issued under the Plan. Subject
to such limitation, the Plan Administrator may grant options and issue shares under the Plan at any time after the effective date of the Plan and before the date fixed herein for termination of the
Plan. 

        B.    The
Plan shall terminate upon the earliest of (i) the expiration of the ten (10)-year period measured from the date the Plan is adopted by the Board,
(ii) the date on which all shares
available for issuance under the Plan shall have been issued as vested shares or (iii) the termination of all outstanding options in connection with a Corporate Transaction. All options and
unvested stock issuances outstanding at the time of a clause (i) termination event shall continue to have full force and effect in accordance with the provisions of the documents evidencing
those options or issuances. 

III.  AMENDMENT OF THE PLAN  

        A.    The Board shall have complete and exclusive power and authority to amend or modify the Plan in any or all respects. However, no such amendment or
modification shall adversely affect the rights and obligations with respect to options or unvested stock issuances at the time outstanding under the Plan unless the Optionee or the Participant
consents to such amendment or modification. In addition, certain amendments may require stockholder approval pursuant to applicable laws and regulations. 

        B.    Options
may be granted under the Option Grant Program and shares may be issued under the Stock Issuance Program which are in each instance in excess of the number of
shares of Common Stock then available for issuance under the Plan, provided any excess shares actually issued under those programs shall be held in escrow until there is obtained stockholder approval
of an amendment sufficiently increasing the number of shares of Common Stock available for issuance under the Plan. If such stockholder approval is not obtained within twelve (12) months after
the date the first such excess grants or issuances are made, then (i) any unexercised options granted on the basis of such excess shares shall terminate and cease to be outstanding and
(ii) the Corporation shall promptly refund to the Optionees and the Participants the exercise or purchase price paid for any excess shares issued under the Plan and held in escrow, together
with interest (at the applicable Short Term Federal Rate) for the period the shares were held in escrow, and such shares shall thereupon be automatically cancelled and cease to be outstanding. 

IV.    USE OF PROCEEDS  

        Any cash proceeds received by the Corporation from the sale of shares of Common Stock under the Plan shall be used for general corporate purposes. 

V.     WITHHOLDING  

        The Corporation's obligation to deliver shares of Common Stock upon the exercise of any options or upon the issuance or vesting of any shares issued under the
Plan shall be subject to the satisfaction of all applicable Federal, state and local income and employment tax withholding requirements. 

9

 

VI.   REGULATORY APPROVALS  

        The implementation of the Plan, the granting of any options under the Plan and the issuance of any shares of Common Stock (i) upon the exercise of any
option or (ii) under the Stock Issuance Program shall be subject to the Corporation's procurement of all approvals and permits required by regulatory authorities having jurisdiction over the
Plan, the options granted under it and the shares of Common Stock issued pursuant to it. 

VII. NO EMPLOYMENT OR SERVICE RIGHTS  

        Nothing in the Plan shall confer upon the Optionee or the Participant any right to continue in Service for any period of specific duration or interfere with or
otherwise restrict in any way the rights of the Corporation (or any Parent or Subsidiary employing or retaining such person) or of the Optionee or the Participant, which rights are hereby expressly
reserved by each, to terminate such person's Service at any time for any reason, with or without cause. 

VIII. FINANCIAL REPORTS  

        The Corporation shall deliver a balance sheet and an income statement at least annually to each individual holding an outstanding option under the Plan, unless
such individual is a key Employee whose duties in connection with the Corporation (or any Parent or Subsidiary) assure such individual access to equivalent information. 

10

  

 
 

APPENDIX    
    

        The following definitions shall be in effect under the Plan: 

        A.  Board shall mean the Corporation's Board of Directors. 

        B.
Code shall mean the Internal Revenue Code of 1986, as amended. 

        C.
Committee shall mean a committee of two (2) or more Board members appointed by the Board to
exercise one or more administrative functions under the Plan. 

        D.  Common Stock shall mean the Corporation's common stock. 

        E.
Corporate Transaction shall mean either of the following stockholder-approved transactions to which the
Corporation is a party: 

        (i)
a merger or consolidation in which securities possessing more than fifty percent (50%) of the total combined voting power of the Corporation's outstanding securities are transferred
to a person or persons different from the persons holding those securities immediately prior to such transaction, or 

        (ii)
the sale, transfer or other disposition of all or substantially all of the Corporation's assets in complete liquidation or dissolution of the Corporation. 

        F.
Corporation shall mean Nuvasive, Inc., a Delaware corporation, and any successor corporation to all
or substantially all of the assets or voting stock of Nuvasive, Inc. which shall by appropriate action adopt the Plan. 

        G.
Disability shall mean the inability of the Optionee or the Participant to engage in any substantial
gainful activity by reason of any medically determinable physical or mental impairment and shall be determined by the Plan Administrator on the basis of such medical evidence as the Plan Administrator
deems warranted under the circumstances. 

        H.
Employee shall mean an individual who is in the employ of the Corporation (or any Parent or Subsidiary),
subject to the control and direction of the employer entity as to both the work to be performed and the manner and method of performance. 

        I.
Exercise Date shall mean the date on which the Corporation shall have received written notice of the
option exercise. 

        J.  Fair Market Value per share of Common Stock on any relevant date shall be determined in accordance with
the following provisions: 

        (i)
If the Common Stock is at the time traded on the Nasdaq National Market, then the Fair Market Value shall be the closing selling price per share of Common Stock on the date in
question, as such price is reported by the National Association of Securities Dealers on the Nasdaq National Market. If there is no closing selling price for the Common Stock on the date in question,
then the Fair Market Value shall be the closing selling price on the last preceding date for which such quotation exists. 

        (ii)
If the Common Stock is at the time listed on any Stock Exchange, then the Fair Market Value shall be the closing selling price per share of Common Stock on the date in question on
the Stock Exchange determined by the Plan Administrator to be the primary market for the Common Stock, as such price is officially quoted in the composite tape of transactions on such exchange. If
there is no closing selling price for the Common Stock on the date in question, then the Fair Market Value shall be the closing selling price on the last preceding date for which such quotation
exists. 

A-1

 

        (iii)
If the Common Stock is at the time neither listed on any Stock Exchange nor traded on the Nasdaq National Market, then the Fair Market Value shall be determined by the Plan
Administrator after taking into account such factors as the Plan Administrator shall deem appropriate. 

        K.
Incentive Option shall mean an option which satisfies the requirements of Code Section 422. 

        L.
Involuntary Termination shall mean the termination of the Service of any individual which occurs by reason
of: 

        (i)
such individual's involuntary dismissal or discharge by the Corporation for reasons other than Misconduct, or 

        (ii)
such individual's voluntary resignation following (A) a change in his or her position with the Corporation which materially reduces his or her duties and responsibilities or
the level of management to which he or she reports, (B) a reduction in his or her level of compensation (including base salary, fringe benefits and target bonuses under any
corporate-performance based bonus or incentive programs) by more than fifteen percent (15%) or (C) a relocation of such individual's place of employment by more than fifty (50) miles,
provided and only if such change, reduction or relocation is effected without the individual's consent. 

        M.
Misconduct shall mean the commission of any act of fraud, embezzlement or dishonesty by the Optionee or
Participant, any unauthorized use or disclosure by such person of confidential information or trade secrets of the Corporation (or any Parent or Subsidiary), or any other intentional misconduct by
such person adversely affecting the business or affairs of the Corporation (or any Parent or Subsidiary) in a material manner. The foregoing definition shall not be deemed to be inclusive of all the
acts or omissions which the Corporation (or any Parent or Subsidiary) may consider as grounds for the dismissal or discharge of any Optionee, Participant or other person in the Service of the
Corporation (or any Parent or Subsidiary). 

        N.
1934 Act shall mean the Securities Exchange Act of 1934, as amended. 

        O.
Non-Statutory Option shall mean an option not intended to satisfy the requirements of Code
Section 422. 

        P.
Option Grant Program shall mean the option grant program in effect under the Plan. 

        Q.  Optionee shall mean any person to whom an option is granted under the Plan. 

        R.
Parent shall mean any corporation (other than the Corporation) in an unbroken chain of corporations ending
with the Corporation, provided each corporation in the unbroken chain (other than the Corporation) owns, at the time of the determination, stock possessing fifty percent (50%) or more of the total
combined voting power of all classes of stock in one of the other corporations in such chain. 

        S.  Participant shall mean any person who is issued shares of Common Stock under the Stock Issuance Program. 

        T.
Plan shall mean the Corporation's 1998 Stock Option/Stock Issuance Plan, as set forth in this document. 

        U.
Plan Administrator shall mean either the Board or the Committee acting in its capacity as administrator of
the Plan. 

        V.
Service shall mean the provision of services to the Corporation (or any Parent or Subsidiary) by a person
in the capacity of an Employee, a non-employee member of the board of directors or a consultant or independent advisor, except to the extent otherwise specifically provided in the
documents evidencing the option grant. 

A-2

 

        W.
Stock Exchange shall mean either the American Stock Exchange or the New York Stock Exchange. 

        X.  Stock Issuance Agreement shall mean the agreement entered into by the Corporation and the Participant at
the time of issuance of shares of Common Stock under the Stock Issuance Program. 

        Y.
Stock Issuance Program shall mean the stock issuance program in effect under the Plan. 

        Z.
Subsidiary shall mean any corporation (other than the Corporation) in an unbroken chain of corporations
beginning with the Corporation, provided each corporation (other than the last corporation) in the unbroken chain owns, at the time of the determination, stock possessing fifty percent (50%) or more
of the total combined voting power of all classes of stock in one of the other corporations in such chain. 

        AA.
10% Stockholder shall mean the owner of stock (as determined under Code Section 424(d)) possessing
more than ten percent (10%) of the total combined voting power of all classes of stock of the Corporation (or any Parent or Subsidiary). 

A-3

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EXHIBIT 10.11

NUVASIVE, INC. 1998 STOCK OPTION/STOCK ISSUANCE PLAN

ARTICLE ONE GENERAL PROVISIONS

ARTICLE TWO OPTION GRANT PROGRAM

ARTICLE THREE STOCK ISSUANCE PROGRAM

ARTICLE FOUR MISCELLANEOUS

APPENDIX

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