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Exhibit 10.24  

 
 

SUBLEASE AGREEMENT    
    

        This SUBLEASE AGREEMENT ("Sublease") is entered into this 26th day of August, 2005, by and between
K2 INC., a Delaware corporation ("Sublessor") whose address is 5818 El Camino Real, Carlsbad, CA 92008 and ALPHATEC MANUFACTURING, INC., a
California corporation ("Sublessee") whose address is Suite 100, 2051 Palomar Airport Road, Carlsbad, California 92008
("Premises"). 

RECITALS  

        A.    MG
Palomar, LLC, a California limited liability company, as landlord ("Landlord"), and Sublessor, as tenant, entered into
a lease dated December 3, 2002 ("Master Lease"), with regard to the Premises. A copy of the Master Lease is attached hereto as  Exhibit "A".

        B.    Sublessor,
on July 29, 2005, agreed to sublease to Sublessee the entire Premises in accordance with the terms and conditions set forth in the Sublease Agreement,
dated as of July 29, 2005 (the "July Sublease") between the parties hereto. 

        C.    Sublessor
wishes to Sublease to Sublessee, and Sublessee wishes to Sublease from Sublessor, the entire Premises for the term beginning on August 1, 2006 and ending
on February 28, 2008 in accordance with the terms and conditions set forth hereinbelow. 

        NOW,
THEREFORE, Sublessor and Sublessee agree as follows: 

AGREEMENT  

        1.     Sublease. Sublessor subleases the Subleased Premises to Sublessee, and Sublessee subleases the Premises from Sublessor,
according to the terms and conditions of this Sublease. The provisions of the Master Lease (except Paragraphs 39, 52, 53, and 55) are incorporated herein as though Sublessor was landlord under
the Master Lease and Sublessee was tenant under the Master Lease. 

        2.     Term. The term ("Term") of this Sublease will begin on August 1,
2006 ("Commencement Date"), and will end on February 28, 2008, inclusive. 

        3.     Rent. Sublessee will pay Sublessor as rent ("Rent") for the Premises the
sum of (a) Thirty Two Thousand Two Hundred Forty-Three Dollars and Forty-Eight Cents ($32,243.48) for the term commencing on August 1, 2006 and ending on February 28, 2007,
inclusive, and (b) Thirty Three Thousand Two Hundred Ten Dollars and Seventy-Eight Cents ($33,210.78) for the term commencing on March 1, 2007 and ending on February 28, 2008,
inclusive, in each case, in advance, without notice, demand, offset, or counterclaim, on the first day of each month prior to the month such Rent shall be applicable to (e.g.. Rent for
August 2006 shall be payable July 1, 2006). Rent and any other sums due to Sublessor from Sublessee under this Sublease will be paid at the following address (unless written notice
provided of a change of address): 5818 El Camino Real, Carlsbad, CA 92008. If the Term of this Sublease begins on a day other than the first day of a month or ends on a day other than the last day of
a month, Rent will be prorated on a per diem basis. 

        4.     Acceptance of the Premises. Sublessee has accepted the Premises in its then present condition pursuant to the terms of the
July Sublease and hereby accepts the Premises in its present condition for the Term. Sublessor makes no representation or warranty as to its fitness for Tenant's intended use. Sublessor will not be
obligated to make any alterations or improvements to the Subleased Premises on account of this Sublease. Any signage shall be at Sublessee's sole cost and expense pursuant to the approval of Landlord. 

        5.     Security Deposit. Pursuant to the July Sublease, Sublessee has deposited with Sublessor the sum of Twenty Eight Thousand
Five Hundred Fifty-five and 00/100 Dollars ($28,555.00) that Sublessor 

 

will
hold in accordance with Paragraph 5 of the Master Lease (this sum will be held through the Term under the July Sublease and this Sublease). 

        6.     Other Charges. During the Term of this Sublease, Sublessee will pay to Sublessor "Lessee's Share" (as such term is defined
in the Master Lease) of any Operating Expense Increases payable by Sublessor pursuant to Paragraph 4.2 of the Master Lease. Such payments will be made as and when due under the Master Lease.
Sublessee shall also pay for all janitorial services. 

        7.     Parking. Sublessor agrees that during the Term of this Sublease, Sublessee will be entitled to non-exclusive
use of seventy six (76) vehicle parking spaces in the Project's parking facility at no additional charge to Sublessee. 

        8.     Services. Sublessor will not be obligated to provide any services to Sublessee. Sublessee's sole source of such services
is Landlord, pursuant to the Master Lease. Sublessor makes no representation about the availability or adequacy of such services. 

        9.     The Master Lease. This Sublease is subject to the Master Lease. The provisions of the Master Lease are applicable to this
Sublease as though landlord under the Master Lease were the Sublessor under this Sublease and tenant under the Master Lease were Sublessee under this Sublease; provided, however, that all
communications between Sublessee and Landlord shall be through Sublessor only. Sublessee has received a copy of the Master Lease. Sublessee will not cause or allow to be caused any default under the
Master Lease. Sublessee will indemnify Sublessor against any loss, liability, and expenses (including reasonable attorneys' fees and costs) arising out of any default under the Master Lease caused by
Sublessee, and Sublessor will indemnify Sublessee against any loss, liability, and expenses (including reasonable attorneys' fees and costs) arising out of any default under the Master Lease caused by
Sublessor. 

        10.   Consent of Landlord. In the event the Master Lease requires that Sublessor obtain the consent of Landlord to any
subletting by Sublessor then, this Sublease shall not be effective unless, within twenty (20) days of the date hereof, Landlord consents to this Sublease in writing. 

        11.   Subsequent Subleases, Assignments and Modifications. Sublessee shall not further sublet the Premises or any portion
thereof, nor assign, amend or modify this Sublease, without the express prior written consent of Sublessor, which consent may be withheld by Sublessor in its sole and absolute discretion.. Any
attempted further subletting of the Premises or assignment, amendment or modification of this Sublease without the express prior written consent of Sublessor shall be void ab initio and shall
constitute a material default by Sublessee under this Sublease. 

        12.   Attorneys' Fees. In the event suit is brought to enforce or interpret any part of this Agreement, the prevailing party
shall be entitled to recover as an element of his costs of suit, and not as damages, reasonable attorneys' fees to be fixed by the court. 

        13.   Executed Counterparts. This Agreement may be executed in one or more counterparts, all of which together shall constitute
a single agreement and each of which shall be an original for all purposes. 

[remainder
of page intentionally blank] 

2

 

        IN
WITNESS WHEREOF, the parties hereto have caused this Sublease to be duly executed as of the day and year first above written. 

	
SUBLESSOR	
 	

SUBLESSEE
	
 K2 INC.,

a Delaware corporation	
 	

ALPHATEC MANUFACTURING, INC.,

a California corporation
	

By:	
 	

 Name:

Title:	
 	

By:	
 	

 Name:

Title:

3

 
CONSENT TO SUBLEASE AGREEMENT  

(Attach
copy of Consent to Sublease Agreement) 

4

 
EXHIBIT "A"

MASTER LEASE  

(Attach
copy of Master Lease) 

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SUBLEASE AGREEMENTExhibit 10.27

 

STOCK PURCHASE AGREEMENT

 

THIS STOCK PURCHASE AGREEMENT, dated as of August 11,
2005 (“Agreement”), by and between Alphatec Spine Inc., a California
corporation (“Seller”), Shunshiro Yoshimi (“Buyer”).

 

WHEREAS, Seller currently owns 200 shares of common
stock (“API Common Stock”) of Alphatec Pacific, Inc., a Japanese
corporation (“API”);

 

WHEREAS, Seller desires to sell to Buyer, and Buyer
desires to purchase from Seller, 40 shares of API Common Stock (the “Shares”),
which represent 20% of the issued and outstanding shares of API, on and subject
to the terms and conditions set forth herein; and

 

WHEREAS, the Company and
Buyer have entered into negotiations concerning this Agreement at the offices
of HealthpointCapital, LLC in New York City.

 

NOW, THEREFORE, in consideration of the mutual promises
herein set forth and subject to the terms and conditions hereof, the parties
agree as follows:

 

1.             Sale of Shares. 
Upon receipt by Seller of the Purchase Price (as defined below), Seller
shall sell, transfer, assign, convey and deliver to Buyer, and Buyer will
purchase, accept and acquire from Seller, the Shares.

 

2.             Purchase Price. 
The aggregate purchase price to be paid by Buyer for the Shares shall be
the sum of One Dollar ($1.00) (“Purchase Price”).  The Purchase Price shall be paid by Buyer to
Seller upon execution and delivery of this Agreement.

 

3.             Instruments of Transfer.

 

(a)           Seller’s Deliveries.  Following receipt of the Purchase Price,
Seller shall deliver to Buyer, at Buyer’s request:

 

(i)            certificates
representing the Shares; and

 

(ii)           such
other instrument or instruments of transfer, in such form as shall be necessary
or appropriate to vest in Buyer good and marketable title to the Shares.

 

The date of
delivery of the certificates and other items shall be August 11, 2005, or
such other date agreed to in writing by the parties hereto (the “Transfer Date”).

 

(b)           Buyer’s Deliveries.  On or prior to the Transfer Date, Buyer shall
deliver to Seller the Purchase Price.

 

 

4.             Transfers of Shares.

 

(a)           Restrictions on Transfers;
Permitted Transferees.  Buyer will
not, directly or indirectly, offer, sell, assign, pledge, encumber or otherwise
transfer any of the  Shares or solicit
any offers to purchase or otherwise acquire or make a pledge of any of the
Shares except (i) to the Seller or its designee, or (ii) in a
Tag-Along Sale, in either case in accordance with this Agreement.

 

(b)           Permitted Transfers.  None of the restrictions contained in this
Agreement with respect to transfers of Shares shall apply with respect to any
transfer or assignment by Buyer to his wife or to an entity wholly owned by
Buyer or his wife, provided Buyer obtains the prior written consent of the
Seller to such transfer or assignment (which consent shall not be unreasonably
withheld), and provided further  that
such transferee or assignee (a “Permitted Transferee”) shall have executed and
delivered to the Seller, as a condition precedent to any acquisition of Shares,
an Agreement confirming that such Permitted Transferee takes such shares
subject to all the terms and conditions of this Agreement and agrees to be
bound by the terms thereof.  API shall
not transfer upon its books any of the Shares to any person except in
accordance with this Agreement.

 

(c)           Tag-Along/Drag-Along.

 

(i)            If Seller proposes in a single
transaction or a series of related transactions to sell, dispose of or
otherwise transfer (except to an entity controlling, controlled by or under
common control with Seller) shares of API Common Stock, Buyer shall have the
right to elect to join in such transfer as provided in this Section 4(c).  If the proposed transfer by Seller will
result in a Change of Control of API (as hereinafter defined), Buyer shall have
(a) the obligation to sell the same proportion (a “Proportionate Share”)
of the number of shares of API Common Stock to be sold as the total number of
shares of API Common Stock owned by Buyer bears to the total number of shares
of API Common Stock, and (b) the right to elect to sell all of the shares
of API Common Stock owned by Buyer.

 

(ii)           Seller, or the person or group of
persons (the “Proposed Purchaser”) that proposes to acquire shares of API
Common Stock in a transaction subject to this Section 4(c) (the “Tag-Along
Sale”), shall notify Buyer of the total number of shares of API Common Stock
proposed to be acquired in the Tag-Along Sale and the proposed date of Closing
(“Closing Date”) of the Tag-Along Sale. 
Buyer shall have seven (7) days after receipt of a notice pursuant
to the preceding sentence to make the election he is entitled to make under Section 4(c)(i).  The sale by Buyer shall be at the same price
and on the same terms and conditions as the Proposed Purchaser has offered to
Seller.  Certificates representing the
Shares of API Common Stock to be transferred from Buyer to the Proposed
Purchaser pursuant to this Section 4(c), and such other instrument or
instruments of transfer, in such form as shall be necessary or appropriate to
vest Proposed Purchaser with good and marketable title to such shares, shall be
delivered on or before the Closing Date. 
Seller shall notify the Proposed Purchaser that the transfer is subject
to Section 4(c) and shall ensure that no transfer is consummated
without the Proposed Purchaser first complying with this Section 4(c).

 

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(d)           Legend on Certificates.  Each outstanding certificate representing all
or a portion of the Shares shall bear a legend stating that any transfer of the
shares represented by such certificate is subject to the approval of the Board,
which approval shall be granted if any such transfer otherwise complies with
the provisions of this Agreement.

 

5.             Repurchase of Shares.

 

(a)           Definitions.  For purposes of Section 4 and this Section 5:

 

(i)            “Board
of Directors” means to the board of directors of API.

 

(ii)           “Change
in Control of API” means the date that: (a) any one person, entity or
group acquires ownership of capital stock of 
API that, together with the capital stock of API already held by such
person, entity or group, constitutes more than 50% of the total fair market
value or total voting power of the capital stock of API; provided, however, if
any one person, entity or group is considered to own more than 50% of the total
fair market value or total voting power of the capital stock of API, the
acquisition of additional capital stock by the same person, entity or group
shall not be deemed to be a Change of Control of API; or (b) any one
person, entity or group acquires (or has acquired during the 12-month period
ending on the date of the most recent acquisition by such person, entity or
group) assets from API that have a total gross fair market value at least equal
to 80% of the total gross fair market value of all of the assets of API
immediately prior to such acquisition or acquisitions; provided, however, a
transfer of assets by Seller or Parent shall not deemed to be a Change of
Control of API if the assets are transferred to (A) a shareholder of API
(immediately before the asset transfer) in exchange for or with respect to its
capital stock in API, (B) an entity, 50% or more of the total value or
voting power of which is owned, directly or indirectly, by API, (C) a
person, entity or group that owns, directly or indirectly, 50% or more of the
total value or voting power of all the outstanding capital stock of API, or (D) an
entity, at least 50% of the total value or voting power of which is owned,
directly or indirectly, by a person, entity or group described in subparagraph (C) above.

 

(iii)          “Change
in Control of Seller” means the date that: (a) any one person, entity
or group acquires ownership of capital stock of 
Seller or Parent that, together with the capital stock of Seller or
Parent already held by such person, entity or group, constitutes more than 50%
of the total fair market value or total voting power of the capital stock of
Seller or Parent; provided, however, if any one person, entity or group is
considered to own more than 50% of the total fair market value or total voting
power of the capital stock of Seller or Parent, the acquisition of additional
capital stock by the same person, entity or group shall not be deemed to be a
Change of Control of Seller; (b) a majority of members of the board of
directors of Seller or Parent is replaced during any 12-month period by
directors whose appointment or election is not endorsed by a majority of the
members of such board prior to the date of the appointment or election; or (c) any

 

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one person, entity or group acquires (or has acquired during the 12-month
period ending on the date of the most recent acquisition by such person, entity
or group) assets from Seller or Parent that have a total gross fair market
value at least equal to 80% of the total gross fair market value of all of the
assets of Seller or Parent immediately prior to such acquisition or
acquisitions; provided, however, a transfer of assets by Seller or Parent shall
not deemed to be a Change of Control of Seller if the assets are transferred to
(A) a shareholder of Seller or Parent (immediately before the asset
transfer) in exchange for or with respect to its capital stock in Seller or
Parent, (B) an entity, 50% or more of the total value or voting power of
which is owned, directly or indirectly, by Seller or Parent, (C) a person,
entity or group that owns, directly or indirectly, 50% or more of the total
value or voting power of all the outstanding capital stock of Seller or Parent,
or (D) an entity, at least 50% of the total value or voting power of which
is owned, directly or indirectly, by a person, entity or group described in
subparagraph (C) above.

 

(iv)          “Date
of the IPO” means the effective date of the IPO.

 

(v)           “Executive
Services Agreement” means the executive services agreement made the date
hereof between Seller and Sunshiro Yoshimi.

 

(vi)          “Exit
Date Value” means the Value of the Shares on the date on which a Change of
Control of Seller occurs.

 

(vii)         “Incremental
Annual Other Revenues”, at any time of reference, means annualized gross
revenues of API from the sale during the three (3) full calendar months
prior to such date of reference of orthopedic devices, other than spinal
implant devices, in a category whose sale by API has been approved by the Board
of Directors.

 

(viii)        “Incremental Annual Spine
Revenues”, at any time of reference, means annualized gross revenues of API
from the sale of spinal implant devices during the three (3) full calendar
months prior to such date of reference.

 

(ix)           “IPO”
means an underwritten initial public offering of the stock of Seller or Parent.

 

(x)            “Parent”
means Alphatec Holdings, Inc., a Delaware corporation.

 

(xi)           “Termination
Event” means termination, for any reason, of the services of Shunshiro
Yoshimi under the Executive Services Agreement.

 

(xii)          “Termination
Event Value” means Value of the Shares on the date a Termination Event
occurs.

 

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(xiii)         “Transaction
Value” means the amount the owner of the Shares is entitled to receive for
such shares in a transaction resulting in the Change of Control of API.

 

(xiv)        “Value
of the Shares” means, at any time of reference, the sum of (i) 60% of
Incremental Annual Spine Revenues and (ii) 20% of Incremental Annual Other
Revenues..

 

(b)           Mandatory Repurchase of Shares.

 

(i)            Seller
shall have the right and obligation to repurchase the Shares from Buyer on the
first to occur of the following:

 

(x)            the
occurrence of a Termination Event; or

 

(y)           the occurrence of a Change of Control
of Seller

 

unless a Change of
Control of API has previously occurred.

 

(ii)           In
the event Seller has the right and obligation to purchase the Shares pursuant
to Section 5(b)(i), and such right and obligation arises as a result of
the occurrence of a Change in Control of Seller prior to or simultaneously with
a Termination Event, the purchase price of the Shares shall be the Exit Date
Value.  The purchase price for the Shares
shall be paid not more than thirty (30) days following the Change in Control of
Seller.  Certificates representing the
Shares, and such other instrument or instruments of transfer, in such form as
shall be necessary or appropriate to vest Seller good and marketable title to
the Shares, shall be delivered at the same time as the delivery of the purchase
price; or

 

(iii)          In
the event that Seller has the right and obligation to purchase the Shares
pursuant to Section 5(b)(i), and such right and obligation arises as a
result of the occurrence of a Termination Event, the purchase price for the
Shares purchased pursuant to Section 5(b)(i) shall be the Termination
Event Value.  The purchase price for the
Shares shall not be paid until the earlier to occur of (a) a Change of
Control of Seller or (b) the fifth anniversary of the Termination
Event.  In the event the purchase price
is payable upon the occurrence of a Change in Control of Seller, it shall be
paid at the same time and in the same form (or forms, and in the same
proportion if there is more than one form) as the consideration paid in the
transaction resulting in the Change of Control of Seller (or, at the option of
Seller, in cash).  In the event that the
purchase price is payable upon the occurrence of the fifth anniversary of the
Termination Event, it shall be paid in cash. 
Certificates representing the Shares, and such other instrument or
instruments of transfer, in such form as shall be necessary or appropriate to
vest Seller good and marketable title to the Shares, shall be delivered as
promptly as possible following the Termination Event, provided that

 

5

 

Buyer may, at his option, deliver such shares into escrow and retain a
security interest therein until payment therefore is made.

 

(c)           Optional Put of Shares.  In the event an IPO occurs prior to a Change
of Control of Seller or a Change of Control of API, Buyer may require Seller to
repurchase all (but not less than all) the Shares by giving notice of intent to
put the Shares.  Such notice shall be
given not earlier than one year following the Date of the IPO.

 

(i)            The
purchase price for Shares purchased pursuant to this Section 5(c) shall
be the Value of the Shares on the date the notice of intent to put is delivered
to Seller.

 

(ii)           The
purchase price for the Shares shall be paid within thirty (30) days of the date
of delivery of the notice of intent to put the Shares.  The purchase price may be paid in cash or, at
the option of Seller, all or a portion of the purchase price may be paid in
shares of the stock of the issuer of the public company created in the IPO
valued at the average closing price of such stock on its principal trading
exchange on the ten (10) business days following delivery of the notice of
intent to put the Shares.  Certificates
representing the Shares, and such other instrument or instruments of transfer,
in such form as shall be necessary or appropriate to vest Seller good and
marketable title to the Shares, shall be delivered at the same time as delivery
of the purchase price.

 

(d)           Additional Agreements.  Notwithstanding anything to the contrary
herein contained:

 

(i)            If
there is a Termination for Cause or a voluntary termination of the services of
Yoshimi under the Executive Services Agreement prior to August 1, 2006,
the Termination Event Value shall be zero. 
This Section 5(d)(i) shall not apply in the event that, prior
to the termination of the services of Yoshimi, Yoshimi ceases to report to John
H. Foster other than as a result of Mr. Foster’s death or disability

 

(ii)           If  a Change of Control of API occurs prior to a
Change of Control of Seller, Seller or its designee shall have the right and
obligation to purchase the Shares for their Transaction Value, and in the event
that a Termination Event shall have occurred prior to such Change of Control of
API, Termination Event Value shall, for purposes of Section 5(b)(iii),
mean the Transaction Value.  The purchase
price for Shares purchased, or whose value is determined, pursuant to this Section 5(d)(ii) shall
be paid at the same time and in the same form (or forms and in the same
proportion if there is more than one form) as the consideration paid in the
transaction resulting in the Change of Control of API (or at the option of
Seller, in cash).  Certificates
representing the Shares, and such other instrument or instruments of transfer,
in such form as shall be necessary or appropriate to vest Seller or its
designee a good and marketable title to the

 

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Shares, shall be
delivered as promptly as possible following the Change of Control of API (unless
previously delivered pursuant to Section 5(b)(iii).

 

(iii)          In
the event that the business and operations of API are terminated prior to a
Change of Control of Seller or a Change in Control of API, Seller shall have no
obligation to repurchase the Shares; provided, however, that Buyer shall be
entitled to his Proportionate Share of the liquidation value of API, if any.

 

6.             Representations and Warranties.

 

(a)           Seller hereby represents and warrants
to Buyer as follows:

 

(i)            Seller
is the record and beneficial owner of the Shares, free and clear of all liens,
pledges, encumbrances, restrictions, voting agreements, options and claims of
any kind, and, upon the execution of this Agreement, the Shares shall be
delivered free of any such liens or encumbrances.  The Shares are validly issued, fully paid and
non-assessable

 

(ii)           A
Sale by Seller of the Shares is not a violation of the charter and bylaws of
API or the laws of Japan.

 

(iii)          Seller
has the full legal right, power and authority to enter into this Agreement and
to consummate all of the transactions contemplated hereby.

 

(iv)          The
transfer of the Shares includes the transfer of the right to vote such Shares
in accordance with the provisions of the Articles of Incorporation of API, and
to receive any and all dividends and distributions accruing to such Shares as
of the date hereof.

 

(v)           This
Agreement, when executed and delivered by Seller, constitutes the valid
and binding obligation of Seller enforceable in accordance with its terms.

 

(vi)          The
execution, delivery and performance of this Agreement by Seller does not and
will not conflict with, result in any breach of any provision of or constitute
a default under any agreement, obligation or other instrument to which it is a
party or by which it is bound.

 

(vii)         The
Shares constitute 20% of the outstanding shares of API.  There are no outstanding options, warrants or
other convertible securities or other agreements or instruments outstanding
that could dilute the percentage ownership of API represented by the
Shares.  No additional shares of API
Common Stock will be issued without the consent of Yoshimi.

 

(b)           Buyer hereby represents and warrants
to Seller as follows:

 

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(i)            Buyer
has the full legal right, power and authority to enter into this Agreement and
to consummate all of the transactions contemplated hereby.

 

(ii)           This
Agreement, when executed and delivered by Buyer, constitutes the valid and
binding obligation of Buyer, enforceable in accordance with its terms.

 

7.             No Reliance by Buyer.  Buyer is fully familiar with the affairs of
API and is therefore not relying upon Seller, or any of Seller’s or API’s
officers, employees, or other directors or shareholders or any other party for
knowledge or information regarding API or the Shares.

 

8.             Assigns. 
This Agreement is personal to each of the parties and may not be sold,
transferred, assigned, pledged or hypothecated. Except as otherwise set forth
herein, all of the terms and provisions of this Agreement shall be binding
upon, shall inure to the benefit of, and shall be enforceable by the
prospective heirs, beneficiaries, representatives, successors, and assigns of
the parties hereto.

 

9.             Severability. 
If any provision of this Agreement or the application of any such
provision to any party or circumstances shall be determined by any court of
competent jurisdiction to be invalid and unenforceable to any extent, the
remainder of this Agreement or the application of such provision to such person
or circumstances other than those to which it is so determined to be invalid
and unenforceable, shall not be affected thereby, and each provision hereof
shall be validated and shall be enforced to the fullest extent permitted by
law.

 

10.           Notices.

 

(a)           All notices under this Agreement must
be in writing and may be given by personal delivery, telex, telegram, private
courier service or registered or certified mail.

 

(b)           A notice is deemed to have been
given:

 

(i)            by
personal delivery or private courier service, as of the day of delivery of the
notice to the addressee; and

 

(ii)           by
mail, as of the fifth (5th) day after the notice is mailed.

 

(c)           Notices must be sent to:

 

(i)            if
to Seller, to:

 

8

 

Alphatec Spine Inc.

6110 Corte Del Cedro

Carlsbad, CA 92009

Telecopier: (760) 431-1573

Attention: John H. Foster

 

with a copy to:

 

Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.

Chrysler Center

666 Third Avenue

New York, New York 10017

Attention:  Stephen C. Curley, Esq.

 

(ii)           if
to the Buyer, to:

 

Shunshiro Yoshimi

25-7 Asumigaoka, 7
Chome

Midori-ku

Chiba-shi

Chiba-ken

 

with a copy to:

 

Jacobson, Mermelstein & Squire, LLP

52 Vanderbilt Avenue

New York, New York 10017

Attention:  Walter C. Squire, Esq.

 

11.           Applicable Law.  This Agreement shall be governed and
construed and interpreted in accordance with the laws of the State of New York
without giving effect to its conflicts of laws rules.

 

12.           Arbitration.  Any controversy or claim arising out of or
relating to this Agreement, or the breach thereof, shall be settled exclusively
by arbitration in accordance with the Rules of the American Arbitration
Association (“AAA”), before a panel of three (3) arbitrators.  The arbitrators shall be chosen by mutual
agreement of Buyer and Seller, or if they cannot agree, by the AAA.  The arbitrators shall be required to apply
and shall be bound by applicable New York State and federal law in rendering
their decision.  The determination of the
arbitration shall be conclusive and binging, and judgment upon the award
rendered by the arbitrators may be entered in any court having jurisdiction
thereof.  The arbitration shall take
place in New York City.  Each party shall
bear its own costs incurred in connection with any such arbitration, and the
fees and expenses of the arbitrators shall be shared equally by the Buyer and
Seller.

 

13.           Entire Agreement.  This Agreement, together with the other
writings delivered in connection herewith, embodies the entire Agreement and
understanding of the parties hereto with

 

9

 

respect to the matters herein set forth, and
supersedes any prior agreement or understanding between the parties with
respect to such subject matter.  This
Agreement cannot be amended or terminated orally, but only by a writing duly
executed by the parties.

 

14.           Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original but all of which
together shall constitute one and the same instrument.

 

15.           Headings.  Headings of the sections in this Agreement
are for reference purposes only and shall not be deemed to have any substantive
effect.

 

IN WITNESS WHEREOF, the parties have executed this
Agreement as of the date first written above.

 

	
   

  	
  ALPHATEC SPINE INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John H. Foster

  
	
   

  	
   

  	
  John H. Foster,

  
	
   

  	
   

  	
  Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Shunshiro Yoshimi

  
	
   

  	
  Shunshiro Yoshimi

  

 

10

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