Document:

License Agreement

 Exhibit 10.3 
 LICENSE AGREEMENT 
 This License Agreement (this “Agreement”) is made effective as of
March 3, 2008 (the “Effective Date”) by and among Alphatec Spine, Inc., a Delaware corporation with a principal place of business at 2051 Palomar Airport Road, Suite 100, Carlsbad, California 92008 (“Licensee”), Stout
Medical Group LP, a limited partnership company organized under the laws of the state of Delaware, and having a place of business at 410 East Walnut Street, Suite #8, Perkasie, Pennsylvania 18944 (“Licensor”) and for purposes of
Section 7.2 and Section 11.15 hereof only Alphatec Holdings, Inc., a Delaware corporation with a principal place of business at 2051 Palomar Airport Road, Suite 100, Carlsbad, California 92008 (“Holdings”). Licensee and Licensor
are each hereafter referred to individually as a “Party” and together as the “Parties”. 
 WHEREAS, Licensor is the owner
of or otherwise controls certain proprietary Licensed Patents and Licensed Technology (as defined below); and 
 WHEREAS, Licensee desires to
obtain a license from Licensor under such Licensed Patents and Licensed Technology to develop and commercialize Licensed Products (as defined below); and 
 WHEREAS, Licensor desires to grant such license to Licensee on the terms and subject to the conditions of this Agreement. 
 NOW, THEREFORE, in consideration of the mutual covenants contained herein, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Parties hereby agree as follows.

 1. DEFINITIONS 
 Whenever used in the Agreement with an initial capital letter, the terms defined in this Article 1 shall have the meanings specified. 
 1.1 “Affiliate” shall mean any company, corporation, partnership, limited liability company, trust, or other business entity that directly or indirectly controls, is controlled by, or is under
common control with a designated person or entity, and for such purpose “control” shall mean the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of the entity, whether through
the ownership of voting securities, by contract or otherwise. 
 1.2 “Common Stock” shall mean the
common stock of Holdings, and any securities into which such common stock may hereafter be reclassified, converted or exchanged. 
 1.3 “Confidential Information” shall mean with respect to a Party (the “Receiving Party”), all information which is disclosed by the other Party (the “Disclosing Party”) to the Receiving Party
hereunder or to any of its employees, consultants, Affiliates, licensees or sublicensees, except to the extent that the Receiving Party can demonstrate by written record or other suitable physical evidence that such information, (a) as of the
date of disclosure is demonstrably known to the Receiving Party or its Affiliates other than by virtue of a prior confidential disclosure to such Party or its Affiliates; (b) as of the date of 

  

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disclosure is in, or subsequently enters, the public domain, through no fault or omission of the Receiving Party; (c) is obtained from a Third Party
having a lawful right to make such disclosure free from any obligation of confidentiality to the Disclosing Party; or (d) is independently developed by or for the Receiving Party without reference to or reliance upon any Confidential
Information of the Disclosing Party. Any information in relation to the subject matter of this Agreement disclosed by a Party under that certain Mutual Confidentiality Agreement between the parties dated the 2nd day of July 2007 shall, subject to
the foregoing exceptions, be considered Confidential Information for purpose of this Agreement. 
 1.4 “Exclusive
Design” shall mean those aspects of the final design of the Licensed Product, which embody the concepts set forth on Schedule C, attached hereto, as modified pursuant to Article 3. 
 1.5 “First Commercial Sale” shall mean the date of the first transaction, transfer or disposition for value by or
on behalf of Licensee or any Affiliate or Sublicensee of Licensee to a Third Party of a Licensed Product in the United States following the applicable regulatory clearance by the FDA (as defined below). 
 1.6 “FDA” shall mean the United States Food and Drug Administration and any successor agency or authority thereto.

 1.7 “Guarantee and Agreement” shall mean the guarantee and agreement of Holdings set forth in
Section 11.15 hereof. 
 1.8 “Joint Inventions” shall have the meaning given in Section 3.3.

 1.9 “Licensor Indemnitees” and “Licensee Indemnitees” (each individually an
“Indemnitee”) shall have the meaning given in Section 8.1. 
 1.10 “Licensed
Field” shall mean: [***] 
 1.11 “Licensed Patent Rights” shall mean any of the patent
applications described in Schedule A attached hereto, and any divisional, continuation, continuation-in-part (to the extent that the continuation-in-part is entitled to the priority date of an initial patent or patent application which is the
subject of this Agreement), reissue, reexamination, registration, renewal, or extension, or any patent issuing therefrom or any supplementary protection certificates related thereto, and any foreign counterparts to any of the foregoing. 

1.12 “Licensed Product” shall mean any product sold by Licensee, its Affiliates or Sublicensees that embodies
or uses any aspect of the Licensed Patent Rights and/or the Licensed Technology. 
 1.13 “Licensed
Technology” shall mean all Technology which: 
 1.13.1 Licensor controls as of the Effective Date and which
(i) is described in or related to any patent or patent application included in the Licensed Patent Rights and (ii) is necessary or useful for Licensee to practice the license granted to it hereunder; 
  

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 1.13.2 is developed by Licensor as a part of its efforts contemplated by
Section 3.2; 
 1.13.3 Licensor controls after the Effective Date but during the Term and which (i) it has the right
to disclose and license without the payment of royalties or other consideration to any Third Party and (ii) constitutes an improvement to the subject matter of the Licensed Patent Rights or Licensed Technology as it exists on the date of
determination, including Licensor’s interest in any Joint Inventions; and/or 
 1.13.4 Licensee controls after the
Effective Date but during the Term and which constitutes an improvement to the subject matter of the Licensed Patent Rights or Licensed Technology as it exists on the date of determination. 
 1.14 “Market Launch” shall mean the first national commercial launch of any Licensed Product. 
 1.15 “Net Sales” shall mean the gross amount invoiced by or otherwise payable to Licensee, any of its Affiliates
or any Sublicensee on account of sales or other transfers of a Licensed Product anywhere in the Territory during a designated period (and for the avoidance of doubt if such Licensed Product is sold in kitted form, such gross amount invoiced shall
include the amount invoiced for the entire kit and/or each component thereof), less to the extent otherwise then or previously included in amounts invoiced for such Licensed Products and in respect of which no previous deduction was taken:

 1.15.1 trade, cash and quantity discounts or rebates actually allowed or taken on Licensed Products, including discounts or
rebates to governmental or managed care organizations; 
 1.15.2 credits or allowances actually given or made for rejection
of, and for uncollectible amounts (except to the extent later collected) on, or return of previously sold Licensed Products; 
 1.15.3 any charges for insurance, freight, and other transportation costs directly related to the delivery of Licensed Product to the extent included in the gross invoiced sales price; 
 1.15.4 any tax, tariff, duty or governmental charge levied on the sales, transfer, transportation or delivery of a Licensed Product
(including any tax such as a value added or similar tax or government charge), other than franchise or income tax of any kind whatsoever; and 
 1.15.5 any import or export duties or their equivalent borne. 
 In addition, should Licensee be required, in order to
lawfully exercise its rights as to a Licensed Product, obtain additional rights in a country to patents of any Third Parties which are not Affiliates of Licensee, which patents are (i) pending or issued on the Effective Date, and
(ii) required for Licensee to practice the inventions described in the Licensed Patent Rights or Licensed Technology or 

  

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exercise the license granted under this Agreement for reasons not attributable to a design selection made by Licensee for which alternative design selections
not requiring such additional rights are available, then Licensee may also deduct from Net Sales with respect to a designated period the amount of the royalty Licensee is required to pay to such Third Party or Parties for such necessary rights to
such patents with respect to such Licensed Product; provided that in no event (i) shall the amount of Net Sales for any designated period be reduced by more than [***] on account of royalties paid to Third Parties, and any amount so disallowed
shall be lost and not carried forward and (ii) no such reduction shall be permitted with respect to additional rights obtained more than [***] after the First Commercial Sale in such country. “Net Sales” shall not include amounts
invoiced by or otherwise payable to Licensee, any of its Affiliates and/or any Sublicensees for Licensed Products sold or otherwise transferred to Licensee or any of its Affiliates and/or its Sublicensees, unless the Licensed Product is consumed by
the invoiced entity. 
 1.16 “Shares” shall have the meaning set forth in Paragraph 4.4.1(a) hereof.

 1.17 “Sublicensee” shall mean any Third Party to whom Licensee grants a sublicense of some or all
of the rights granted to Licensee under this Agreement. 
 1.18 “Technology” shall mean all of the
following intangible legal rights, whether or not filed, perfected, registered or recorded, applicable to the Licensed Field: (i) inventions, patents, patent disclosures, patent rights, including any and all continuations,
continuations-in-part, divisionals, reissues, reexaminations, utility models, industrial designs and design patents or any extensions thereof, (ii) rights associated with works of authorship, including without limitation, copyrights, copyright
applications and copyright registrations and (iii) any and all proprietary ideas, inventions, discoveries, Confidential Information, data, results, formulae, designs, specifications, methods, processes, techniques, ideas, know-how, technical
information (including, without limitation, structural and functional information), process information, pre-clinical information, clinical information, and any and all proprietary control and manufacturing data and materials, whether or not
patentable. 
 1.19 “Term” shall have the meaning given in Section 9.1. 
 1.20 “Territory” shall mean all countries and jurisdictions of the world. 
 1.21 “Third Party” shall mean any person or entity other than Licensee, Licensor and their respective Affiliates.

 2. GRANT OF RIGHTS 
 2.1 License to Licensee. 
 2.1.1 Grant of Non-Exclusive License.
Licensor hereby grants to Licensee a non-exclusive, royalty-bearing license, including the right to grant sublicenses in accordance with Subsection 2.1.3, under the Licensed Patent Rights and Licensed Technology: (i) to conduct research and
development in support of the licensed uses described in clause (ii) of this Subsection, and (ii) to make, have made, import, export, use, offer for sale or sell Licensed Products in the Licensed Field, subject to the terms and conditions
of this Agreement. 
  

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 2.1.2 Grant of Exclusive License. Licensor hereby grants to Licensee an exclusive
(even as to the Licensor and its Affiliates), royalty-bearing license, including the right to grant sublicenses in accordance with Subsection 2.1.3: (i) to conduct research and development in support of the licensed uses describe in clause
(ii) of this Subsection, and (ii) to make, have made, import, export, use, offer for sale or sell Licensed Products in the Licensed Field to the extent embodying the Exclusive Design, subject to the terms and conditions of this Agreement.

 2.1.3 Right to Sublicense. Licensee shall have the right to grant sublicenses, subject to the terms of this
Agreement, to all or any portion of its rights under the license granted pursuant to this Subsection. 
 2.2 Right of
First Discussion in Relation to Sales of Licensed Patent Rights or Licensed Technology. In the event that Licensor decides to sell any of the Licensed Patent Rights or Licensed Technology (subject, of course, to this Agreement), it shall
give prompt notice thereof to the Licensee. Such notice shall include a description of the Licensed Patent Rights or Licensed Technology to be sold. Thereafter, Licensee shall have sixty (60) days to notify Licensor whether Licensee is
interested in commencing negotiations to obtain a fully-paid license to such Licensed Patent Rights or Licensed Technology in the Licensed Field. If Licensee does not give such notice within such sixty (60) day period, Licensor shall be
entitled to sell such Licensed Patent Rights or Licensed Technology as it sees fit. If Licensee gives such written notice within such sixty (60) days, the parties shall for a further sixty (60) days from the giving of such notice, or such
longer time period as upon which the Parties mutually agree in writing, negotiate in good faith as to the terms of such fully-paid license in the Licensed Field, and Licensor shall not be entitled to commence negotiations with any Third Party with
respect to the sale of such Licensed Patent Rights or Licensed Technology, or sell such Licensed Patent Rights or Licensed Technology, until the end of such sixty (60) day or longer agreed-upon period, after which it shall be free to negotiate
or sell such intellectual property as it sees fit. 
 2.3 Right of First Discussion as to New In-Field License.
If, at any time during the term of the Agreement, Licensor acquires or develops intellectual property in respect of uses or applications within the Licensed Field (a “New In-Field Use”) which is not included in the Licensed Technology and
which Licensor has the right to disclose and license without the payment of royalties or other consideration to any Third Party, it shall give prompt notice thereof to the Licensee. Such notice shall include a description of the intellectual
property which Licensor has acquired or developed. Thereafter, Licensee shall have sixty (60) days to notify Licensor whether Licensee is interested in commencing negotiations to obtain a license to such rights (the “New In -Field
License”). If Licensee does not give such notice within such sixty (60) day period, Licensor shall be entitled to license such intellectual property as it sees fit. If Licensee gives such written notice within such sixty (60) days,
the parties shall for a further sixty (60) days from the giving of such notice, or such longer time period as upon which the Parties mutually agree in writing, negotiate in good faith as to the terms of such New In-Field License, and Licensor
shall not be entitled to commence negotiations with any Third Party in respect to a license of such intellectual property, or license such intellectual property, within the Licensed Field until the end of such sixty (60) day or longer
agreed-upon period, after which it shall be free to negotiate or license such intellectual property as it sees fit. For the sake of clarity, this Section 2.2 does not apply to any intellectual property that is included in Licensed Technology
and, as such, is subject to the license grant under Section 2.1. 
  

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 3. DEVELOPMENT AND COMMERCIALIZATION OF LICENSED PRODUCTS. 
 3.1 Commercialization. 
 3.1.1 From and after the Effective Date, Licensee shall have full control and authority over the development and commercialization of Licensed Products in the Licensed Field in the Territory. Without prejudice to
Section 3.3 hereof, Licensee shall own all Technology resulting solely from the efforts of its agents, Affiliates and employees as a part of such development and commercialization, but for such purposes (or any other purpose of this Agreement)
Licensor shall not be considered an agent of Licensee. All activities relating to development and commercialization under this Agreement shall be undertaken at Licensee’s sole cost and expense. 
 3.1.2 Diligence. After the Effective Date, Licensee will exercise commercially reasonable efforts to develop a Licensed Product
which will pass Required Testing, and thereafter cause the Market Launch of the first Licensed Product as soon as practicable, such commercially reasonable efforts to take into account the competitiveness of the marketplace, the proprietary position
of the Licensed Product, the relative potential safety and efficacy of the Licensed Product, the cost of goods and availability of capacity to manufacture and supply the Licensed Product at commercial scale, the profitability of the applicable
Licensed Product, and other relevant factors including, without limitation, technical, legal, scientific or medical factors. 
 3.2 Licensor Assistance. Prior to the Market Launch of a Licensed Product, Licensor agrees that it shall provide commercially reasonable assistance to the Licensee in connection with the development and commercialization of a
Licensed Product as described in Schedule B hereto in exchange for the compensation also described in Schedule B. Licensor shall own all Technology resulting solely from the efforts of the agents, Affiliates and employees of Licensor
as a part of such development and commercialization, (but for such purposes (or any other purpose of this Agreement) Licensee shall not be considered an agent of Licensor), but such Technology shall be deemed included in the Licensed Technology.

 3.3 Joint Inventions. Technology conceived, developed or reduced to practice jointly by employees or
consultants of Licensor and Licensee during the term hereof shall be jointly owned by them (“Joint Inventions”). For purposes of this Section 3.3 Technology that is the subject of a patent application shall be deemed to have been
developed jointly by employees or consultants of Licensee and Licensor, and thus be a Joint Invention, if at least one employee or consultant of each of Licensee and Licensor is required to be named as an inventor in such application in order for
such patent to be valid, and a comparable concept shall apply to Technology not the subject of a patent application. Subject to its right of abandonment or other forfeiture, Licensee shall be responsible, at its costs, for preparing, filing and,
prosecuting patent applications which are available with respect to Joint Inventions in the United States, Japan, Germany, the United Kingdom, France, Spain and Italy (and elsewhere as 

  

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it may elect), using patent counsel reasonably chosen by Licensee, and for maintaining any patents obtained thereon. Licensee shall keep Licensor reasonably
appraised as to the prosecution of each such patent application. Licensee agrees to send Licensor copies of all file histories and prosecution documents for each of the patent applications of the Licensed Patent Rights, within thirty (30) days
of receipt by Licensor. Licensee shall have the right in its discretion to abandon or otherwise cause or allow to be forfeited, any patents or applications therefore as to Joint Inventions. Licensee shall give Licensor at least sixty (60) days
written notice prior to abandonment or other forfeiture so as to permit, but not obligate, Licensor, to file, in the name of Licensor, for protection as to such patent or application, at its cost and expense, and Licensee shall have no interest in
such patent or applications or underlying Joint Inventions (which shall thereupon cease to be Joint Inventions by shall rather be Confidential Information of Licensor). In any event each Party will, and will cause its employees and consultants to,
provide any assistance and executed agreements and instruments as are reasonably requested by a Party which is seeking to obtain in accordance herewith patents or other protection with respect to any Joint Inventions. 
 3.4 Licensee License Grant. Licensee hereby grants to Licensor: 
 3.4.1 Non-exclusive License. a non-exclusive, fully-paid and royalty-free, perpetual license, including the right to grant
sublicenses, under all Technology owned by Licensee as a result of the activities set forth in Section 3.1: (i) to conduct research and development in support of the licensed uses describe in clause (ii) of this Subsection, and
(ii) to make, have made, import, export, use, offer for sale or sell any component or product for indications outside of the treatment of spinal disorders, subject to the terms and conditions of this Agreement; and 
 3.4.2 Exclusive License. an exclusive, fully-paid and royalty-free, perpetual license, including the right to grant sublicenses,
under its interest in all Joint Inventions: (i) to conduct research and development in support of the licensed uses describe in clause (ii) of this Subsection, (ii) to make, have made, import, export, use, offer for sale or sell any
component or product for indications outside of the treatment of spinal disorders, subject to the terms and conditions of this Agreement, and (iii) to prosecute at Licensor’s sole cost and for its sole benefit infringements of Joint
Inventions within the scope of the licenses granted in clauses (i) and (ii) of this Subsection 3.4.2. 
 4. PAYMENTS AND
ROYALTIES 
 4.1 Initial Payment; Milestone Payments, Payment of Royalties; Royalty Rates; and Minimum Royalties;
 
 4.1.1 Initial Payment. Licensee shall pay Licensor a lump-sum, payment of (i) five-hundred thousand
dollars ($500,000), and (ii) five-hundred thousand dollars ($500,000) in shares of Common Stock, with a price per share of Common Stock for such purpose equal to the average per share NASDAQ Close/NASDAQ Official Closing Price (as defined by
NASDAQ) or a defined successor closing price (designated by NASDAQ) on the fifteen (15) trading days prior to the date of issuance; provided that if on any such trading day the Common Stock shall not be listed on the NASDAQ national exchange or
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Licensor shall receive [***] in cash in lieu of such shares of Common Stock (collectively the “Initial Payment”), with the cash portion of the
Initial Payment being due and payable within ten (10) business days of the Effective Date, and the Common Stock portion of the Initial Payment being due and payable within thirty (30) business days of the Effective Date. The Initial
Payment shall be fully-earned and non-refundable. 
 4.1.2 Initial Milestone Payments. Licensee shall pay milestone
payments (or in the case of the Common Stock cause the issuance thereof by Holdings) to Licensor (each such payment or issuance a “Milestone Payment”) as specified below no more than thirty (30) days after the occurrence of the
corresponding event designated below, unless this Agreement has been terminated prior to such due date. No Milestone Payments described in this Subsection 4.1.2 shall be credited against or otherwise reduce any other amounts payable hereunder.

  

			
	 Event
	  	 Milestone Payment

	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]

 4.1.3 Royalty Payments. During the Term, Licensee shall pay to Licensor
within thirty (30) days of the end of each calendar quarter earned royalties of [***] of Net Sales during such calendar quarter. Each royalty payment shall (i) be accompanied by a report specifying: the Net Sales (including an accounting
of deductions taken in the calculation of Net Sales) and (ii) state the applicable exchange rate used in conversion from any foreign country’s currency to United States Dollars (which conversion shall be determined in accordance with
Subsection 4.2.2). Earned royalties described in this Subsection 4.1.4 shall only be credited against minimum royalties which would otherwise be due as contemplated by Subsection 4.1.5 and shall not be credited against or otherwise reduce any other
amounts payable hereunder. 
 4.1.4 Minimum Royalties. Licensee shall pay Licensor the following minimum annual royalty
amounts in each calendar year listed next to such amount. No minimum annual royalty described in this Subsection 4.1.5 shall be credited against or otherwise reduce any other amounts payable hereunder. For a particular calendar year, in
the event that the sum of the earned royalties on Net Sales timely paid in accordance with Subsection 4.1.4 above with respect to the four calendar quarters of such calendar year are less than the minimum annual royalty for such year designated
below, the obligation to pay the difference to Licensor shall accrue on the last day of such calendar year and be payable by Licensee no later than forty-five (45) days following the end of such calendar year: 
  

			
	 Twelve (12) Months Ending
	  	 Minimum Annual Royalty

	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]

  

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 By way of illustration, if Licensee pays to Licensor during calendar year [***] a running royalty of [***], then not
later than [***], Licensee shall pay to Licensor [***] to avoid being in breach of this Agreement. 
 4.1.5 One
Royalty. Only one royalty shall be payable to Licensor hereunder for each sale of a Licensed Product, notwithstanding that more than one patent or patent claim reads upon such Licensed Product and/or such Licensed Product embodies or was made
using one or more aspects of Licensed Technology. 
 4.2 Payment, Conversion and Withholding. 
 4.2.1 Payment. All payments hereunder shall originate in the United States and be made in United States dollars. Licensor hereby
directs that all payments, save payments for services and expense reimbursement as contemplated by Section 3.2, be divided as follows and paid by wire transfer or other means reasonably selected by the payee to the following persons or as they
shall direct from time to time: 
  

			
	 [***]
	  	[***]
	 [***]
	  	[***]

 4.2.2 Conversion. Conversion of foreign currency to United States dollars
shall be made at the conversion rate existing in the United States (as reported in The Wall Street Journal) on the last business day of the quarter immediately preceding the applicable calendar quarter. If The Wall Street Journal
ceases to be published, then the rate of exchange to be used shall be that reported in such other business publication of national circulation in the United States as the Parties reasonably agree.  
 4.2.3 Tax Withholding; Restrictions on Payment. All taxes, assessments and fees of any nature levied or incurred on account of any
payments from Licensee to Licensor accruing under this Agreement, by national, state or local governments, will be assumed and paid by Licensee, except taxes levied thereon as income to Licensor and if such taxes are required by applicable law to be
withheld by Licensee they will be deducted from payments due to Licensor and will be timely paid by Licensee to the proper taxing authority for the account of Licensor, a receipt or other proof of payment therefore secured and sent to Licensor as
soon as practicable. Licensee shall remit all payments to Licensor hereunder from within the United States. 
 4.3
Records Retention; Review. 
 4.3.1 Royalties. Licensee shall keep accurate books and accounts of the
computation of the number of Licensed Products sold and the Net Sales of Licensee, its Affiliates and Sublicensees of Licensed Products, and shall cause such Affiliates and Sublicensees to keep such records of their respective sales of Licensed
Products and Net Sales of Licensed Products, in sufficient detail to permit accurate determination of all figures necessary for verification of payments required to be paid hereunder, which books and accounts shall be maintained for at least three
(3) years from the end of the calendar year to which they pertain. 
  

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 4.3.2 Review. At the request of Licensor, which shall not be made more frequently
than once per calendar year during the Term, on a business day designated by Licensor upon at least thirty (30) days’ prior written notice to Licensee, Licensee shall permit, under confidentiality obligations with terms substantially the
same as those hereunder, an independent certified public accountant reasonably selected by Licensor and reasonably acceptable to Licensee to inspect (during regular business hours) the relevant records required to be maintained by Licensee under
Subsection 4.3.1. In the event such inspection reveals an underpayment, such underpayment shall be due and payable by Licensee within thirty (30) days of the date of such inspection, together with interest thereon from the date the amount
due but unpaid was first due until the date paid, at the lower of 12% per annum or the maximum rate permitted by applicable law. Such inspection shall be at the expense of Licensor unless there is an underpayment that differs by greater than
five percent (5%) from the amount that was otherwise due, in which event Licensee shall also pay the reasonable costs of the inspection. The foregoing is without prejudice to the right of Licensee to dispute the conclusion of the accountant,
but such dispute shall not relieve Licensee of its obligation to pay interest and, under the circumstances described, costs of inspection as to amount actually due. 
 4.4 Matters Related to the Issuance of Common Stock.  
 4.4.1 Representations, Warranties and Certain Covenants of the Licensee. The Licensee represents, warrants and covenants that:

 (a) Assuming the covenant of Licensor contained in Subsection 4.4.2 of this Agreement is complied with, the issuance to
Licensor of each share of Common Stock (all shares so issued the “Shares”) will be in compliance with all applicable federal and state securities laws in connection with the offer, issuance and sale of the securities. 
 (b) The execution, delivery and performance of this Agreement by Holdings, the issuance and sale of the Shares and the consummation by
Holdings of the other transactions by it contemplated hereby do not and will not on the date of the issuance and sale of the Shares(i) conflict with or violate any provision of Holdings’ or any of its subsidiaries certificates or articles of
incorporation, bylaws or other organizational or charter documents, or (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of any lien or
encumbrance upon any of the properties or assets of Holdings or any of its subsidiaries, or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit
facility, debt or other instrument or other understanding to which Holdings or any of its subsidiaries is a party or by which any property or asset of Holdings or any such subsidiary is bound or affected, in each case with respect to this Subsection
(ii), to a degree that would have a material adverse effect on the assets or results of operations of Holdings or its subsidiaries when considered as a whole (a “Material Adverse Effect”), or (iii) conflict with or result in a
violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which Holdings or any such subsidiary is subject (including federal and state securities laws and
regulations), or by which any property or asset of Holdings or any such subsidiary is bound or affected, in each case with respect to this Subsection (iii), to a degree that would have a Material Adverse Effect. 
  

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 (c) Prior to the issuance of the Shares, Holdings shall obtain all consents, approvals,
orders, authorizations or registrations, qualifications, designations, declarations, and make all filings or registrations with any court or other federal, state, local or other governmental authority or other person that is required in order to
issue the Shares. 
 (d) The Shares, when issued in accordance herewith, will be (i) duly authorized, (ii) duly and
validly issued, (iii) fully paid and nonassessable, and (iv) free and clear of all liens imposed by Holdings, other than restrictions on transfer provided for herein. 
 (e) At all times prior to the second anniversary of the last issuance of the Shares during which there are Shares outstanding which have
not been previously (i) sold or transferred to or through a broker or dealer or underwriter in a public distribution, or (ii) sold or transferred in a transaction exempt from the registration and prospectus delivery requirements of the
Securities Act of 1933, as amended (the “Securities Act”), in the case of either Subsection (i) or Subsection (ii) in such a manner that, upon the consummation of such sale or transfer, all transfer restrictions and restrictive
legends with respect to such Shares are removed upon the consummation of such sale or transfer, Holdings shall use its commercially reasonable efforts to: (1) comply with the requirements of Rule 144(c) under the Securities Act with respect to
current public information about Holdings, and (2) furnish to the Licensor such non-publicly available reports and documents of Holdings as Licensor may reasonably request to avail itself of Rule 144 of the Securities Act, or any similar rule
or regulation of the United States Securities Exchange Commission allowing Licensor to sell the Shares without registration. 
 4.4.2 Representations and Warranties of the Licensor. The Licensor represents and warrants that (i) it is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D of the Securities Act;
(ii) it is acquiring the Shares for investment for the Licensor’s own account and not as a nominee or agent, and not with a view to the resale or distribution of any part thereof, without prejudice, however, to Licensor’s right to at
all times to sell or otherwise dispose of any or all of the Shares so issued in compliance with applicable federal and state securities laws and (iii) it does not have any contract, undertaking, agreement or arrangement with any person to sell,
transfer or grant participation to such person or to any third person, with respect to any of such Shares. 
 4.4.3
Restrictions on the Shares. Licensor understands and agrees that the Shares may not be sold, transferred, or otherwise disposed of without registration under the Securities Act or an exemption therefrom, and that in the absence of an
effective registration statement covering the Shares or any available exemption from registration under the Securities Act, the Shares must be held indefinitely. The Licensor agrees and acknowledges that the following legend will be placed on the
back of any certificate evidencing the Shares: 
 “THE SECURITIES REPRESENTED HEREBY HAVE NOT 
 BEEN REGISTERED UNDER THE SECURITIES ACT OF 
 1933, AS AMENDED, AND MAY NOT BE SOLD, 
 TRANSFERRED, ASSIGNED OR HYPOTHECATED 
 UNLESS THERE IS AN EFFECTIVE REGISTRATION 
 STATEMENT UNDER SUCH ACT COVERING SUCH 
 SECURITIES, THE SALE IS MADE IN ACCORDANCE 

  

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WITH RULE 144 UNDER THE ACT, OR THE 
 CORPORATION RECEIVES AN OPINION OF COUNSEL 
 FOR THE HOLDER OF THESE SECURITIES 
 REASONABLY SATISFACTORY TO THE 
 CORPORATION, STATING THAT SUCH SALE, 
 TRANSFER, ASSIGNMENT OR HYPOTHECATION IS 
 EXEMPT FROM THE REGISTRATION AND 
 PROSPECTUS DELIVERY REQUIREMENTS OF SUCH ACT.” 
 4.4.4 Limitation on the Number of Shares Issued.
Notwithstanding anything to the contrary in this Agreement, in no event shall the aggregate number of Shares issued pursuant to this Agreement be greater than 19.9% of the number of shares of Common Stock outstanding on the Effective Date. In the
event that an issuance of Shares pursuant to this Agreement would cause an aggregate issuance of Shares that is more than 19.9% of the number of shares Common Stock outstanding on the Effective Date, the Licensee shall make a cash payment to the
Licensor equal to the difference between cash value of the Shares that were scheduled to be issued pursuant to this Agreement, and the value of the Shares that were actually issued after giving effect to the limitation set forth in this
Section 4.4.4. 
 5. TREATMENT OF CONFIDENTIAL INFORMATION 
 5.1 Confidential Obligations. Licensor and Licensee each recognize that the other Party’s Confidential Information
constitutes highly valuable and proprietary confidential information. Licensor and Licensee each agree that during the Term and for [***] thereafter, it will keep confidential, and will cause its employees, consultants, Affiliates and sublicensees
to keep confidential, all Confidential Information of the other Party. Neither Licensor nor Licensee nor any of their respective employees, consultants, Affiliates or sublicensees shall use Confidential Information of the other Party for any purpose
whatsoever other than exercising any rights granted to it or reserved by it hereunder. Without limiting the foregoing, each Party may disclose information to the extent such disclosure is reasonably necessary to (a) file, prosecute or defend
litigation in accordance with the provisions of this Agreement or (b) comply with applicable laws, regulations (including those of the United States Securities Exchange Commission) or court orders; provided, however, that if a Party is required
to make any such disclosure of the other Party’s Confidential Information in connection with any of the foregoing, it will give reasonable advance notice to the other Party of such disclosure requirement and will use reasonable efforts to
cooperate with such other Party in efforts to secure confidential treatment of such information required to be disclosed. Each Party agrees that any Confidential Information disclosed by a Party under that certain Mutual Confidentiality Agreement
between the Parties dated the 2nd day of July 2007 shall be protected by the obligations set forth therein through the date hereof and from and after the date hereof shall be protected by the obligations as to Confidential Information set forth
herein so as to be continuously protected. 
 5.2 Limited Disclosure and Use. Licensor and Licensee each agree
that any disclosure of the other Party’s Confidential Information to any officer, employee, consultant or agent of the other Party or any of its Affiliates or Sublicensees shall be made 

  

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only if and to the extent necessary to carry out its rights and responsibilities under this Agreement, shall be limited to the maximum extent possible
consistent with such rights and responsibilities and shall only be made to the extent any such persons are bound by written confidentiality obligations to maintain the confidentiality thereof and not to use such Confidential Information except as
expressly permitted by this Agreement. Licensor and Licensee each further agree not to disclose or transfer the other Party’s Confidential Information to any Third Parties under any circumstance without the prior written approval from the other
Party (such approval not to be unreasonably withheld), except as otherwise required by law, and except as otherwise expressly permitted by this Agreement. Each Party shall take such action, and shall cause its Affiliates or Sublicensees to take such
action, to preserve the confidentiality of each other’s Confidential Information as it would customarily take to preserve the confidentiality of its own Confidential Information, using, in all such circumstances, not less than reasonable care.
Each Party, upon the request of the other Party, will return all the Confidential Information disclosed or transferred to it by the other Party pursuant to this Agreement, including all copies and extracts of documents and all manifestations in
whatever form, within sixty (60) days of such request or, if earlier, the termination or expiration of this Agreement; provided however, that a Party may retain (i) any Confidential Information of the other Party relating to any license
which expressly survives such termination, and (ii) one (1) copy of all other Confidential Information in inactive archives in legal counsel’s files solely for the purpose of establishing the contents thereof. 
 5.3 Publicity. Neither Party may publicly disclose the existence or terms or any other matter of fact regarding this
Agreement without the prior written consent of the other Party, which consent shall not be unreasonably withheld or delayed; provided, however, that either Party may make such a disclosure (i) to the extent required by law or by the
requirements of any nationally recognized securities exchange, quotation system or over-the-counter market on which such Party has its securities listed or traded, or (ii) with respect to Licensee, to any prospective Sublicensees, or to
investors, prospective investors, lenders and other potential financing sources, who are obligated to keep such information confidential. The Parties, upon the execution of this Agreement, will mutually agree to a press release with respect to this
transaction for publication. Once such press release or any other written statement is approved for disclosure by both Parties, neither Party may make subsequent public disclosure of the contents of such statement without the further approval of the
other Party. 
 5.4 Use of Name. Neither Party shall employ or use the name of the other Party in any
promotional materials or advertising without the prior express written permission of the other Party. 
 6. PROVISIONS CONCERNING THE
FILING, PROSECUTION AND MAINTENANCE OF PATENT RIGHTS 
 6.1 Patent Filing, Prosecution and Maintenance as to
Licensed Patent Rights. Subject to its right of abandonment or other forfeiture, Licensor shall be responsible, at its cost, for preparing, filing and prosecuting the patent applications listed in Schedule A, and available foreign
counterparts to such patent applications in [***] using patent counsel reasonably chosen by Licensor (which in any event includes Levine Bagade Han LLP), and for maintaining any patents obtained thereon. Licensor shall keep Licensee reasonably
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“Prosecution”) of each such patent application. Licensor agrees to send Licensee copies of all file histories and Prosecution documents for each of
the patent applications of the Licensed Patent Rights, within thirty (30) days of receipt by Licensor. Licensor shall have the right in its discretion to abandon or otherwise cause or allow to be forfeited, any Licensed Patent Rights (each a
“Discontinued Patent”). Licensor shall give Licensee at least sixty (60) days written notice (a “Discontinuation Notice”) prior to abandonment or other forfeiture of any such Discontinued Patent (the “Discontinuation
Notice Period”) so as to permit Licensee to exercise its rights under Section 6.3. 
 6.2 Requests for Other
Patent Filing, Prosecution and Maintenance. Licensee may reasonably request that Licensor seek patent protection of the Licensed Patent Rights and/or Licensed Technology in addition to that contemplated by Section 6.1 by written notice
to Licensor. 
 6.3 Right to Effect Other Patent Filing, Prosecution and Maintenance. Subject to any right of
another licensee with respect to all or part of the Licensed Patent Rights or Licensed Technology existing as of the Effective Date, as to any Discontinued Patent or as to any patent with respect to which Licensor refuses in its discretion to seek
such additional patent protection in response to a request from Licensee in accordance with Section 6.2 (a “Refused Patent”), Licensee shall have the right, but not the obligation, to give Licensor notice of its intent to continue the
Prosecution of such Discontinued Patent or Refused Patent. Subject to any right of another licensee with respect to all or part of the Licensed Patent Rights or Licensed Technology existing as of the Effective Date, if Licensee gives such notice to
Licensor, Licensor shall continue to Prosecute the Discontinued Patent or Refused Patent at the reasonable direction of Licensee. Licensee shall pay to Licensor its pro rata share of Prosecution costs (based on the number of licensees after the
Effective Date, including the Licensee and any licensees that acquire rights to the Licensed Patent Rights and Licensed Technology after the Effective Date, but specifically not including any licensee of the Licensed Patent Rights and Licensed
Technology prior to the Effective Date, or any licensee that opts out of making its pro-rata payment to Prosecute a Discontinued Patent or Refused Patent), which will be divided equally between Licensee and all such non-excluded licensees that have
acquired rights to exploit such Discontinued Patent or Refused Patent and have not opted out. Other than with respect to any licensee of the Licensed Patents right that has entered into a license agreement prior to the Effective Date, if any
licensee to the Discontinued Patent or Refused Patent, including Licensee, opts not to support continued Prosecution or does not pay its pro rata share of the costs of Prosecution (based on the number of licensees after the Effective Date, including
the Licensee and any licensees that acquire rights to the Licensed Patent Rights and Licensed Technology after the Effective Date, but specifically not including any licensee of the Licensed Patent Rights and Licensed Technology prior to the
Effective Date, or any licensee that opts out of making its pro-rata payment to Prosecute a Discontinued Patent or Refused Patent), such licensee shall have no further rights or licenses to exploit the Discontinued Patent or Refused Patent. The
Licensor shall covenant that any licenses granted to exploit the Licensed Patent Rights after the Effective Date shall contain language regarding Discontinued Patents or Refused Patents that is materially identical to the foregoing language set
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amount of such costs paid to Licensor by Licensee to Prosecute each such Discontinued Patents and Refused Patents that Licensee has filed in such country in
the name of Licensor. All such Discontinued Patents or Refused Patents filed by Licensee in the name of Licensor shall be included in the Licensed Technology. Nothing in this Section 6.3 shall be deemed to limit Licensor’s right to file,
Prosecute or maintain patent applications at its own expense in any country. 
 6.4 Notice of Infringement or
Claims. If, during the Term, either Party learns of any (i) actual, alleged or threatened infringement by a Third Party of any Licensed Patent Rights or Licensed Technology, (ii) attack on the enforceability or validity of any
Licensed Patent Rights or Licensed Technology, or (iii) claim by a Third Party alleging that the development or commercialization of a Licensed Product infringes or otherwise violates the intellectual property rights of such Third Party, then
such Party shall promptly notify the other Party of the same and shall provide such other Party with available details as to and evidence of such infringement, suit or claim. 
 6.5 Infringement. Licensor shall have the exclusive right but not the obligation to claim and take legal action against, in
its own name to the extent permissible by law, third parties for infringement or misappropriation of any Licensed Patent Rights or Licensed Technology. If Licensee is requested by Licensor to join a lawsuit under this subparagraph, whether or not
Licensee is considered to be an indispensable party, it shall so join. 
 6.6 Certain Patent Filing, Prosecution and
Maintenance as to Exclusive Design. Subject to its right of abandonment or other forfeiture, Licensor shall be responsible, at its cost, for preparing, filing and Prosecuting the patent applications as it determines, after consultation with
Licensee, is commercially reasonable in relation to technology associated with the Exclusive Design using patent counsel reasonably chosen by Licensor (which in any event includes Levine Bagade Han LLP), and for maintaining any patents obtained
thereon (each a “Design Patents”). Licensor shall keep Licensee reasonably apprised as to the prosecution of each such patent application. Licensor agrees to send Licensee copies of all file histories and prosecution documents for
each of the patent applications of the Design Patents, within thirty (30) days of receipt by Licensor. Licensor shall have the right in its discretion to abandon or otherwise cause or allow to be forfeited, any patent or application therefore
in relation to technology associated with the Exclusive Design (each a “Design Discontinued Patent”). Licensor shall give Licensee at least sixty (60) days written notice prior to abandonment or other forfeiture of any such
Design Discontinued Patent so as to permit Licensee to exercise its rights under Section 6.8. 
 6.7 Requests for
Other Patent Filing, Prosecution and Maintenance. Licensee may reasonably request that Licensor seek patent protection as to the Exclusive Design in addition to that contemplated by Section 6.6 by written notice to Licensor. 

6.8 Right to Effect Other Patent Filing, Prosecution and Maintenance. As to any Design Discontinued Patent or as to any
patent with respect to which Licensor refuses in its discretion to seek such additional patent protection in response to a request from Licensee in accordance with Section 6.7 (a “Design Refused Patent”), Licensee shall have the
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obligation, to file, in the name of Licensor, for protection as to such Design Discontinued Patent or Design Refused Patent. Licensee shall bear all costs
associated with the preparation, filing, Prosecuting and maintenance of all such Design Discontinued Patents and Design Refused Patents; provided that Licensee shall have the right to deduct from Net Sales, on a country-by-country basis, [***] of
the amount of such costs borne by Licensee with respect to each such Design Discontinued Patents and Design Refused Patents that Licensee has filed in such country in the name of Licensor. All such Design Discontinued Patents or Design Refused
Patents filed by Licensee in the name of Licensor shall be included in the Licensed Technology. Nothing in this Section 6.8 shall be deemed to limit Licensor’s right to file, prosecute or maintain patent applications at its own expense in
any country. 
 6.9 Notice of Infringement or Claims. If, during the Term, either Party learns of any
(i) actual, alleged or threatened infringement by a Third Party of any Design Patent, (ii) attack on the enforceability or validity of any Design Patent, or (iii) claim by a Third Party alleging that the development or
commercialization of a Licensed Product embodying the Exclusive Design infringes or otherwise violates the intellectual property rights of such Third Party, then such Party shall promptly notify the other Party of the same and shall provide such
other Party with available details as to and evidence of such infringement, suit or claim. 
 6.10 Infringement of
Design Patents. Licensee shall have the first right (but not the obligation), at its own expense and with legal counsel of its own choice, to bring suit (or take other appropriate legal action) against any actual, alleged or threatened
infringement of any Design Patent in the Licensed Field. Such right includes the right to settle the infringement claim, provided that such settlement may not encompass matters beyond the scope of the license grant set forth in Section 2.1.2
and if such settlement would include Licensee’s agreement to the invalidity or unenforceability of any claim within any Design Patent, Licensor must first approve in writing such settlement, which approval shall not be unreasonably withheld.
Any damages, monetary awards or other amounts recovered, whether by judgment or settlement, pursuant to any suit, proceeding or other legal action taken by Licensee under this Section 6.10, shall applied as follows: 
 (a) first, to reimburse the cost of Licensee for its reasonable costs and expenses (including reasonable attorneys’ fees and costs)
incurred in prosecuting such enforcement action; 
 (b) second, to reimburse the costs of Licensor for its reasonable costs
and expenses (including reasonable attorneys’ fees and costs) incurred in such enforcement action; 
 (c) third, to
Licensee in reimbursement for lost sales associated with Licensed Products and to Licensor in reimbursement for lost royalties, it being agreed that for such purpose such lost sales shall equate to Net Sales; and 
 (d) fourth, any amounts remaining shall be allocated to each Party on a pro rata basis based on each Party’s losses attributable to
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 If Licensee brings any such action or proceeding hereunder, Licensor agrees to be joined as party plaintiff if necessary
to prosecute such action or proceeding, and to give Licensee reasonable assistance and authority to file and prosecute the suit. Licensee shall bear Licensor’s costs, including costs of responding to discovery, arising from involvement in such
action or proceeding as and when incurred, subject to clause (a) of this Section 6.10; provided that in the event Licensor elects to actively participate in such action by counsel of Licensor’s own choice, the incremental expense
thereof shall be Licensor’s, subject to clause (b) of this Section 6.10. In no event shall Licensor being a party to or represented in any such action by Licensee affect the right of Licensee to control the suit as described in the
first sentence of this Section 6.10. If Licensee fails to take any action it is permitted to take by this Section 6.10 to obtain a discontinuance of such infringement or to bring suit against the infringer within four (4) months of
having knowledge of such infringement, Licensor shall have the right but not the obligation to enforce the Design Patents at its expense and for its sole benefit. For the avoidance of doubt, neither Licensee’s nor Licensor’s failure to
enforce any Design Patent in any way affects the rights granted to or responsibilities of Licensee under the Agreement. 
 7.
REPRESENTATIONS AND WARRANTIES 
 7.1 Representations and Warranties of Licensor. As of the Effective Date,
Licensor represents and warrants to Licensee as follows: 
 7.1.1 it owns and controls the Licensed Patents Rights and
Licensed Technology and has the right to grant the non-exclusive licenses within the Licensed Field free and clear of all encumbrances, and no Third Party has notified Licensor that the Third Party is claiming any ownership of or right to the
Licensed Patents Rights or Licensed Technology; 
 7.1.2 it has not received any notice of invalidity or infringement of any
of the Licensed Patent Rights or Licensed Technology; and 
 7.1.3 it is not a party to any agreements which would be
inconsistent with the licenses granted herein or the exercise of the license granted under this Agreement. 
 7.2
Representations and Warranties of each Party and Holdings. As of the Effective Date, each Party and Holdings represents and warrants as follows: 
 7.2.1 the execution, delivery and performance of this Agreement will not constitute a violation, be in conflict with, or result in a
breach of any agreement or contract to which it is bound; 
 7.2.2 it is a corporation or entity duly organized and validly
existing under the laws of the state or other jurisdiction of incorporation or formation; 
 7.2.3 the execution, delivery and
performance of this Agreement by it has been duly authorized by all requisite corporate action and do not require any shareholder action or approval; 
 7.2.4 it has the power and authority to execute and deliver this Agreement and to perform its obligations hereunder; and 
 7.2.5 it shall at all times comply with all applicable material laws and regulations relating to its activities under the Agreement 
  

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 7.3 No Warranties. Nothing in this Agreement is or shall be construed as a
warranty or representation that anything made, used, sold or otherwise disposed of under any license granted pursuant to this Agreement is or will be free from infringement of patents, copyrights, and other rights of Third Parties. EXCEPT AS
EXPRESSLY SET FORTH IN THIS ARTICLE 7, EACH PARTY EXCLUDES ALL OTHER REPRESENTATIONS AND WARRANTIES, EXPRESS OR IMPLIED, INCLUDING AMONG SUCH EXCLUDED REPRESENTATIONS AND WARRANTIES ANY AND ALL REPRESENTATIONS OR WARRANTIES OF MERCHANTABILITY OR
FITNESS FOR A PARTICULAR PURPOSE. 
 8. INDEMNIFICATION 
 8.1 Indemnification. 
 8.1.1 Licensee Indemnity. Licensee shall indemnify, defend and hold harmless Licensor, its Affiliates and their respective directors, officers, employees, stockholders and agents and their respective
successors, heirs and assigns (the “Licensor Indemnitees”) from and against any claims, liability, damage, loss or expense (including reasonable attorneys’ fees and expenses of litigation) incurred by or imposed upon such Licensor
Indemnitee, or any of them, in connection with any Third Party claims, suits, actions, demands or judgments to the extent arising out of or related to (i) the design, development, testing, production, manufacture, supply, promotion, marketing,
importation, sale, use or instructions for use of any Licensed Product (or any component thereof) manufactured or sold by Licensee or any Affiliate or Sublicensee under this Agreement, including without limitation any claims that (a) the design
of any Licensed Product by Licensee infringed the intellectual property right of any Third Party or (b) any Licensed Product manufactured or sold by Licensee or any Affiliate or Sublicensee under this Agreement caused the death of any person or
any injury to any person or property, (ii) any material breach of any representation or warranty by Licensee in Article 7 of this Agreement. 
 8.1.2 Licensor Indemnity. Licensor shall indemnify, defend and hold harmless Licensee, its Affiliates and their respective directors, officers, employees, stockholders and agents and their respective
successors, heirs and assigns (the “Licensee Indemnitees”) from and against any claims, liability, damage, loss or expense (including reasonable attorneys’ fees and expenses of litigation) incurred by or imposed upon such Licensee
Indemnitee, or any of them, in connection with any Third Party claims, suits, actions, demands or judgments to the extent arising out of any material breach of any representation or warranty by Licensor in Article 7 of this Agreement. 
 8.2 Indemnification Procedures. In the event that any Indemnitee is seeking indemnification under Section 8.1 above
from a Party (the “Indemnifying Party”), the Indemnitee shall notify the Indemnifying Party of such claim with respect to such Indemnitee as soon as reasonably practicable after the Indemnitee receives notice of the claim, and the Party
seeking indemnification, on behalf of itself and such Indemnitee, shall permit the Indemnifying Party to assume direction and control of the defense of the claim (including the right to settle the claim solely for monetary consideration) and shall
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Article 8 shall not apply to any harm suffered as a direct result of any delay in notice to the Indemnifying Party hereunder or to amounts paid in settlement
of any claim, demand, action or other proceeding if such settlement is effected without the consent of the Indemnifying Party, which consent shall not be withheld or delayed unreasonably. The Indemnitee, its employees and agents, shall reasonably
cooperate with the Indemnifying Party and its legal representatives in the investigation of any claim, demand, action or other proceeding covered by Section 8.1. 
 9. TERM AND TERMINATION 
 9.1 Expiration. The term of this Agreement
shall commence on the Effective Date and expire twenty (20) years after the First Commercial Sale (the “Term”). Following the Term, Licensee shall have a fully paid-up, irrevocable, freely transferable and sublicensable license in the
Territory under the Licensed Patent Rights and Licensed Technology, to develop, have developed, make, have made, use, have used, sell, have sold, offer for sale, import and have imported any and all Licensed Products in the Licensed Field.

 9.2 Termination Rights for Breach and Voluntary Termination. 
 9.2.1 Termination for Breach. Subject to the other terms of this Agreement, this Agreement and the rights granted herein may be
terminated by either Party upon any material breach by the other Party of any material obligation or condition, effective ninety (90) days after giving written notice to the breaching Party of such termination, which notice shall describe such
breach in reasonable detail. The foregoing notwithstanding, if such material breach is cured or remedied or shown to be non-existent or not to be material within the aforesaid ninety (90) day period, the notice shall be automatically withdrawn
and of no effect. 
 9.2.2 Voluntary Termination. Licensee shall have the right to terminate this Agreement effective
as of the first day of any calendar year upon not less than ninety (90) days prior written notice to Licensor. 
 9.3
Effects of Termination. 
 9.3.1 Certain Effects of Termination. Upon any termination of this Agreement:
(i) as of the effective date of such termination all relevant licenses and sublicenses granted by Licensor to Licensee hereunder, and any sublicense granted by Licensee to any Sublicensee, shall terminate automatically, (ii) all payment or
other rights or obligations accrued hereunder prior to termination shall survive the expiration or termination of the Term; (iii) except in respect of a termination by Licensor under Subsection 9.2.1, Licensee and its Affiliates and
Sublicensees shall have the right, for nine (9) months or such longer time period as upon which the Parties mutually agree in writing, to sell or otherwise dispose of all finished Licensed Products then on hand, with royalties to be paid to
Licensor on all Net Sales of such Licensed Products as provided for in this Agreement; and (iv) by Licensor under Subsection 9.2.1 or by Licensee under Subsection 9.2.2 (other than because Licensee shall have reasonably concluded that
notwithstanding its commercially reasonable efforts, no commercially viable Licensed Product is developable and marketable) Licensee shall not, nor shall it permit its Affiliates to, for a period of [***] following such termination in the event such
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Sale and for a period of [***] following such termination in the event such termination is effective on or after the First Commercial Sale, engage in any
business anywhere in the Territory, whether as a sole proprietor, partner, shareholder, consultant, agent, independent contractor, trustee or otherwise, to hold any beneficial interest in any business, incorporated or otherwise, which designs,
develops, tests, produces, manufactures, supplies, promotes, markets, imports or sells any product in the Licensed Field that are similar to the Exclusive Design (a “Competing Business”), derive any income from any interest in a Competing
Business, or provide any service or assistance to a Competing Business; provided that the foregoing will not restrict Licensee from owning a passive interest of less than five percent (5.0%) of the outstanding stock of a corporation engaged in
a Competing Business. 
 9.4 Remedies. Except as otherwise expressly set forth in this Agreement, the
termination provisions of this Article 9 are in addition to any other relief and remedies available to either Party at law. 
 9.5 Surviving Provisions. Notwithstanding any provision herein to the contrary, the rights and obligations of the Parties set forth in Subsections 3.1.1 (with respect to Licensee’s ownership of Technology), Sections 3.3,
3.4, 4.3, 7.3, 9.3, 9.4, 9.5 and Articles 5, 8, 10, and 11 (to the extent relevant) shall survive the expiration or termination of this Agreement. 
 10. DISPUTES 
 10.1 Negotiation. The Parties recognize that a bona fide dispute as to certain
matters may from time to time arise during the term of this Agreement that relates to either Party’s rights and/or obligations hereunder. In the event of the occurrence of such a dispute, either Party may, by written notice to the other Party,
have such dispute referred to their respective senior officials designated below or their successors, for attempted resolution by good faith negotiations within sixty (60) days after such notice is received. Said designated senior officials are
as follows: 
 For Licensee: President and Chief Executive Officer 
 For Licensor: Chief Executive Officer 
 In the event the
designated senior officials are not able to resolve such dispute within the sixty (60) day period, either Party may invoke the provisions of Section 10.2. 
 10.2 Arbitration. Subject to Section 10.1, any dispute, controversy or claim initiated by either Party arising out of,
resulting from or relating to this Agreement, or the performance by either Party of its obligations under this Agreement (other than bona fide Third Party actions or proceedings filed or instituted in an action or proceeding by a Third Party against
a Party), whether before or after termination of this Agreement, shall be finally resolved by binding arbitration. Whenever a Party shall decide to institute arbitration proceedings, it shall give written notice to that effect to the other Party.
Any such arbitration shall be conducted under the Commercial Arbitration Rules of the American Arbitration Association by one arbitrator appointed in accordance with such rules. Any such arbitration shall be held in New York, New York. The method
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to grant injunctions and/or specific performance and to allocate between the parties the costs of arbitration in such equitable manner as they determine.
Judgment upon the award so rendered may be entered in any court having jurisdiction or application may be made to such court for judicial acceptance of any award and an order of enforcement, as the case may be. In no event shall a demand for
arbitration be made after the date when institution of a legal or equitable proceeding based upon such claim, dispute or other matter in question would be barred by the applicable statute of limitations. Notwithstanding the foregoing, either Party
shall have the right, without waiving any right or remedy available to such Party under this Agreement or otherwise, to seek and obtain from any court of competent jurisdiction any interim or provisional relief that is necessary or desirable to
protect the rights or property of such Party, pending the selection of the arbitrators hereunder or pending the arbitrators’ determination of any dispute, controversy or claim hereunder. 
 11. MISCELLANEOUS 
 11.1 Notification. All notices, requests and other communications hereunder shall be in writing, shall be addressed to the receiving Party’s address set forth below or to such other address as a Party may designate by
notice hereunder, and shall be either (i) delivered by hand, (ii) sent by nationally-recognized overnight courier service providing evidence of receipt, or (iii) sent by registered or certified mail, return receipt requested, postage
prepaid. The addresses and other contact information for the parties are as follows: 
  

			
	If to Licensor:	  	 Stout Medical Group LP
 410 East Walnut Street, Suite
#8,
 Perkasie, Pennsylvania 18944
 (215) 450-8860 (ext.
102)
 Attn: Chief Executive Officer

		
	With a copy to:	  	[***]
		
	With a copy to:	  	 Oppenheimer Wolff & Donnelly
 Plaza VII Building,
Suite 3300
 45 South Seventh Street
 Minneapolis, Minnesota 55402

 (612) 607-7397
 Attn: Dennis P. Whelpley

		
	If to Licensee:	  	 Alphatec Spine, Inc.
 2051 Palomar Airport Road, Suite
100
 Carlsbad, CA 92011
 (760) 431-9286 (ext. 169)
 Attn: President and CEO

		
	With a copy to:	  	 Heller Ehrman LLP
 Times Square Tower
 7 Times Square
 New York, New York 10036

  

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		  	 Attention: Blaine Templeman
 Telephone: (212) 847-8572

 Fax: (212) 763-7600
 Email: blaine.templeman@hellerehrman.com

 All notices, requests and other
communications hereunder shall be deemed to have been given either (i) if by hand, at the time of the delivery thereof to the receiving Party at the address of such Party set forth above, (ii) if made by telecopy or facsimile transmission,
at the time that receipt thereof has been acknowledged by the recipient, (iii) if sent by nationally-recognized overnight courier, on the day such notice is delivered to the recipient, or (iv) if sent by registered or certified mail, on
the fifth (5th) business day following the day such mailing is made. 
 11.2 Governing Law. This Agreement will be construed and interpreted in accordance with the laws of the State of New York.

 11.3 Limitations. Except as expressly set forth in this Agreement, neither Party grants to the other Party
any right or license to any of its intellectual property. 
 11.4 Entire Agreement. This is the entire Agreement
between the Parties with respect to the subject matter hereof and supersedes all prior representations, understandings and agreements between the Parties with respect to the subject matter hereof. No modification shall be effective unless in writing
with specific reference to this Agreement and signed by the Parties. No modification shall be effective unless in writing with specific reference to this Agreement and signed by the Parties. No modification shall be effective unless in writing with
specific reference to this Agreement and signed by the Parties; provided that no modification to this Agreement may be made without the prior written consent of Hawk Healthcare, LLC if such modification both: (i) will materially and adversely
affect the stream of payments made directly to Hawk Healthcare, LLC under Subsection 4.1 hereof and (ii) does not proportionately effect the parallel payments made to Licensor under such Subsection. 
 11.5 Waiver. The terms or conditions of this Agreement may be waived only by a written instrument executed by the Party
waiving compliance. The failure of either Party at any time or times to require performance of any provision hereof shall in no manner affect its rights at a later time to enforce the same. No waiver by either Party of any condition or term shall be
deemed as a continuing waiver of such condition or term or of another condition or term. 
 11.6 Headings.
Section, Subsection and Paragraph headings are inserted for convenience of reference only and do not form part of this Agreement. 
 11.7 Assignment. Neither this Agreement nor any right or obligation hereunder may be assigned, delegated or otherwise transferred, in whole or part, by either Party without the prior express written consent of the other Party;
provided that a Party may freely assign this Agreement, including all rights and obligations hereunder, at any time to any entity acquiring in the same transaction substantially all of such Party’s business and assets, including those to which
this Agreement relates, whether by way of sale, merger, consolidation or other transaction without the prior written consent of the other Party. Any permitted assignee shall assume all obligations of its assignor under this Agreement. Any purported
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shall be void. The terms and conditions of this Agreement shall be binding upon and inure to the benefit of the permitted successors and assigns of the
parties. 
 11.8 Force Majeure. Neither Party shall be liable for failure of or delay in performing obligations
set forth in this Agreement, and neither shall be deemed in breach of its obligations, for so long as and to the extent that such failure or delay is due to natural disasters or any causes beyond the reasonable control of such Party. In event of
such force majeure, the Party affected thereby shall use reasonable efforts to cure or overcome the same and resume performance of its obligations hereunder. 
 11.9 Construction. The Parties hereto acknowledge and agree that: (i) each Party and its counsel reviewed and
negotiated the terms and provisions of this Agreement and have contributed to its revision; (ii) the rule of construction to the effect that any ambiguities are resolved against the drafting Party shall not be employed in the interpretation of
this Agreement; and (iii) the terms and provisions of this Agreement shall be construed fairly as to all Parties hereto and not in favor of or against any Party, regardless of which Party was generally responsible for the preparation of this
Agreement. 
 11.10 Severability. If any provision(s) of this Agreement are or become invalid, are ruled illegal
by any court of competent jurisdiction or are deemed unenforceable under then current applicable law from time to time in effect during the Term hereof, it is the intention of the Parties that the remainder of this Agreement shall not be affected
thereby provided that a Party’s rights under this Agreement are not thereby materially diminished. The Parties hereto covenant and agree to renegotiate any such term, covenant or application thereof in good faith in order to provide a
reasonably acceptable alternative to the term, covenant or condition of this Agreement or the application thereof that is invalid, illegal or unenforceable, it being the intent of the Parties that the basic purposes of this Agreement are to be
effectuated. 
 11.11 Status. Nothing in this Agreement is intended or shall be deemed to constitute a partner,
agency, employer-employee, or joint venture relationship between the Parties. 
 11.12 Section 365(n). All
licenses granted under this Agreement are deemed to be, for purposes of Section 365(n) of the U.S. Bankruptcy Code, licenses of right to “intellectual property” as defined in Section 101 of such Code. The Parties agree that
Licensee may fully exercise all of its rights and elections under the U.S. Bankruptcy Code, regardless of whether either Party files for bankruptcy in the United States or other jurisdiction. 
 11.13 Further Assurances. Each Party agrees to execute, acknowledge and deliver such further instructions, and to do all
such other acts, as may be necessary or appropriate in order to carry out the purposes and intent of this Agreement. 
 11.14
Counterparts. This Agreement may be executed simultaneously 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. 
  

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 11.15 Guarantee and Agreement of Alphatec Holding, Inc. By its signature
below, Holdings hereby guarantees the full and timely payment and performance of all obligations of Licensee under this Agreement and agrees to issue shares to Licensor consistent with the terms of this Agreement, including without limitation
Section 4.4 hereof. 
 [remainder of page intentionally left blank] 
  

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 IN WITNESS WHEREOF, the Parties and Holdings have caused this Agreement to be executed by their duly
authorized representative. 
  

													
	ALPHATEC SPINE, INC.	 	STOUT MEDICAL GROUP, LP:
		 	By: Stout Medical Group, Inc.
		 	Its: General Partner
					
	By:	 	/s/ Dirk Kuyper	 		 	By:	 	/s/ Tom Molz
		 	Name:	 	Dirk Kuyper	 		 		 	Name:	 	Tom Molz
		 	Title:	 	President and CEO	 		 		 	Title:	 	President and CEO

  

					
	ALPHATEC HOLDINGS, INC.
		
	By:	 	/s/ Dirk Kuyper
		 	Name:	 	Dirk Kuyper
		 	Title:	 	President and CEO

  

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 Schedule A 
 Licensed Patent Rights 
  

											
	 [***]
	  	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	  	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	  	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	  	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	  	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	  	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	 [***]
	  	[***]	 	[***]	 	[***]	 	[***]	 	[***]

  

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 Schedule B 
 Licensor Assistance and Compensation 
 [***] 
  

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 Schedule C 
 Exclusive Design Concepts 
 [***] 
  

 28 
 Confidential Treatment RequestedConsulting Development Agreement

 Exhibit 10.4 
 DEVELOPMENTAL CONSULTING AGREEMENT 
 This Developmental Consulting Agreement (the
“Agreement”) is entered into as of March 3, 2007 (the “Effective Date”), by and among Alphatec Spine, Inc., a Delaware corporation with a principal place of business at 2051 Palomar Airport Road, Suite 100, Carlsbad,
California 92011 (the “Company”), Stout Medical Group LP, a limited partnership company organized under the laws of the state of Delaware, and having a place of business at 410 East Walnut Street, Suite #8, Perkasie, Pennsylvania 18944
(“Service Provider”) and for purposes of Sections 3.2, 3.3, 11.14 and Article 7 hereof only Alphatec Holdings, Inc., a Delaware corporation with a principal place of business at 2051 Palomar Airport Road, Suite 100, Carlsbad, California
92008 (“Holdings”). Company and Service Provider are each hereafter referred to individually as a “Party” and together as the “Parties”. 
 WHEREAS, the Company desires to retain the Service Provider to render certain professional services to the Company and the Service Provider desires to be so retained by the Company and to perform the services
specified herein, all in accordance with the terms and conditions of this Agreement. 
 NOW, THEREFORE, in consideration of the premises,
conditions and representations set forth herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby mutually acknowledged, the Company and the Service Provider agree as follows: 
 1. DEFINITIONS 
 Whenever used in the Agreement with an initial capital
letter, the terms defined in this Article 1 shall have the meanings specified. 
 1.1. “Affiliate” shall mean any company,
corporation, partnership, limited liability company, trust, or other business entity that directly or indirectly controls, is controlled by, or is under common control with a designated person or entity, and for such purpose “control”
shall mean the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of the entity, whether through the ownership of voting securities, by contract or otherwise. 
 1.2. “Common Stock” shall mean the common stock of Holdings, and any securities into which such common stock may hereafter be reclassified,
converted or exchanged. 
 1.3. “Company Indemnitees” and “Service Provider Indemnitees” (each individually an
“Indemnitee”) shall have the meaning given in Article 8. 
 1.4. “Confidential Information” shall mean with respect to a
Party (the “Receiving Party”), all information which is disclosed by the other Party (the “Disclosing Party”) to the Receiving Party hereunder or to any of its employees, consultants, Affiliates, licensees or sublicensees, except
to the extent that the Receiving Party can demonstrate by written record or other suitable physical evidence that such information, (a) as of the date of disclosure is demonstrably known to the Receiving Party or its Affiliates other than by
virtue of a prior confidential disclosure to such Party or its Affiliates; (b) as of the date of disclosure is in, or subsequently enters, the public domain, through no fault or omission of the Receiving Party; (c) is obtained from a Third
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such disclosure free from any obligation of confidentiality to the Disclosing Party; or (d) is independently developed by or for the Receiving Party
without reference to or reliance upon any Confidential Information of the Disclosing Party. Any information in relation to the subject matter of this Agreement disclosed by a Party under that certain Mutual Confidentiality Agreement between the
parties dated the 2nd day of July, 2007 shall, subject to the foregoing exceptions, be considered Confidential Information for purpose of this Agreement. 
 1.5. “Existing FA Technology” shall have the meaning given in Subsection 5.2(a). 
 1.6.
“FDA” shall mean the United States Food and Drug Administration and any successor agency or authority thereto. 
 1.7.
“Filling Agent” shall mean a bioactive filling agent (either cadaveric or synthetic) designed to strengthen the Licensed Product. 
 1.8. “Guarantee and Agreement” shall mean the guarantee and agreement of Holdings set forth in Section 11.14 hereof. 
 1.9. “In-Field Products” shall have the meaning given in Section 5.3. 
 1.10. “Joint Inventions” shall
have the meaning given in Section 5.3. 
 1.11. “License Agreement” shall mean that certain License Agreement as of even date
herewith between the Parties relating to Company’s license of Technology in the Licensed Field from the Service Provider. 
 1.12.
“Licensed Field” shall mean: (i) spinal interbody or intrabody body fusion using an expandable metallic interbody device; or (ii) spinal vertebral body replacement using an expandable metallic interbody device. 
 1.13. “Licensed Product” shall mean any product sold by Company, its Affiliates or Sublicensees that embodies or uses any aspect of the
Licensed Patent Rights and/or the Licensed Technology (as such terms are defined in the License Agreement). 
 1.14. “Net Sales”
shall mean the gross amount invoiced by or otherwise payable to the Company, any of its Affiliates or any Sublicensee on account of sales or other transfers of an In-Field Products anywhere in the Territory during a designated period (and for the
avoidance of doubt if such In-Field Product is sold in kitted form, such gross amount invoiced shall include the amount invoiced for the entire kit and/or each component thereof), less to the extent otherwise then or previously included in amounts
invoiced for such In-Field Product and in respect of which no previous deduction was taken: 
 1.13.1 trade, cash and quantity discounts or
rebates actually allowed or taken on In-Field Products, including discounts or rebates to governmental or managed care organizations; 
  

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 1.13.2 credits or allowances actually given or made for rejection of, and for uncollectible amounts
(except to the extent later collected) on, or return of previously sold In-Field Products; 
 1.13.3 any charges for insurance, freight, and
other transportation costs directly related to the delivery of In-Field Products to the extent included in the gross invoiced sales price; 
 1.13.4 any tax, tariff, duty or governmental charge levied on the sales, transfer, transportation or delivery of an In-Field Products (including any tax such as a value added or similar tax or government charge), other than franchise or
income tax of any kind whatsoever; and 
 1.13.5 any import or export duties or their equivalent borne. 
 “Net Sales” shall not include amounts invoiced by or otherwise payable to the Company, any of its Affiliates and/or any Sublicensees for In-Field Products sold
or otherwise transferred to the Company or any of its Affiliates and/or its Sublicensees, unless the In-Field Products is consumed by the invoiced entity. 
 1.15. “Patent Analysis” shall have the meaning set forth in Exhibit B hereof. 
 1.16.
“Restricted Stock Agreement” shall have the meaning set forth in Section 3.2 hereof. 
 1.17. “Services” shall have
the meaning set forth in Section 2.1 hereof. 
 1.18. “Shares” shall have the meaning set forth in Paragraph. 3.4.1(a) hereof.

 1.19. “Statement of Work” shall have the meaning set forth in Section 2.1 hereof. 
 1.20. “Sublicensee” shall mean any Third Party to whom Company grants a sublicense of some or all of the rights granted to Company under this
Agreement. 
 1.21. “Technology” shall mean all of the following intangible legal rights, whether or not filed, perfected,
registered or recorded, applicable to the Licensed Field: (i) inventions, patents, patent disclosures, patent rights, including any and all continuations, continuations-in-part, divisionals, reissues, reexaminations, utility models, industrial
designs and design patents or any extensions thereof, (ii) rights associated with works of authorship, including without limitation, copyrights, copyright applications and copyright registrations and (iii) any and all proprietary ideas,
inventions, discoveries, Confidential Information, data, results, formulae, designs, specifications, methods, processes, techniques, ideas, know-how, technical information (including, without limitation, structural and functional information),
process information, pre-clinical information, clinical information, and any and all proprietary control and manufacturing data and materials, whether or not patentable. 
 1.22. “Term” shall have the meaning given in Section 9.1. 
  

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 1.23. “Territory” shall mean all countries and jurisdictions of the world. 
 1.24. “Third Party” shall mean any person or entity other than Company, Service Provider and their respective Affiliates. 
 1.25. “Triggering Event” shall mean FDA clearance of Licensed Product for marketing, irrespective of whether such Licensed Product employs
a Filling Agent. 
 2. PROFESSIONAL SERVICES 
 2.1. Statement of Work. The Company hereby engages the Service Provider to provide professional services (the “Services”) set forth on Schedule A attached hereto (the “Statement of Work”), and the Service
Provider hereby accepts such engagement. The Service Provider agrees to perform for the Company the Services, and to provide to the Company the work product set forth in Schedule A attached hereto. Schedule A may only be amended by mutual
written agreement of the Parties. 
 2.2. Location and Access. Except as otherwise stated in the Statement of Work, the Service
Provider shall perform the Services at the Service Provider’s premises or such other premises that the Company and the Service Provider may agree in writing. 
 2.3. Records and Reports. The Service Provider shall keep accurate written records of its activities under this Agreement and shall make such records available to the Company upon request. Unless otherwise
stated in the Statement of Work, the Service Provider shall provide the Company with periodic written reports on such activities. The Service Provider shall also provide the Company with such other reports that the Company may periodically request
during the term of this Agreement. 
 3. PAYMENTS TO THE SERVICE PROVIDER 
 3.1. Cash Remuneration. The Company shall pay the Service Provider five-hundred thousand dollars ($500,000) in cash in ten (10) monthly
payments of fifty thousand dollars ($50,000) each (with the first such first retainer payment due thirty (30) days after the Effective Date, and each subsequent retainer payment due thirty (30) days thereafter) (the “Cash
Retainer”); provided however, that in the event that a Triggering Event occurs prior to the date that all such ten monthly payments shall have been made, all then unpaid amounts of the Cash Retainer shall become due and payable within ten
(10) business days. In the event that a Triggering Event has not occurred on or before [***] from the Effective Date, the Service Provider shall remit to the Company the aggregate amount of the Cash Retainer actually paid to the Service
Provider plus three percent (3.0%) per annum of such amount. 
 3.2. Restricted Common Stock. Within thirty (30) days of the
Effective Date Holdings shall issue five-hundred thousand dollars ($500,000) in shares of restricted Common Stock, with a price per share of Common Stock for such purpose equal to the average per share NASDAQ Close/NASDAQ Official Closing Price (as
defined by NASDAQ) or a defined successor closing price (designated by NASDAQ) on the fifteen (15) trading days prior to the date of issuance; provided that if on any such trading day the Common Stock shall not be listed on the NASDAQ national
exchange or a similar national securities exchange, then Service Provider shall receive [***] in cash in lieu of such shares of restricted Common Stock. The Common Stock shall be subject to a restricted stock agreement in substantially the form of
Schedule B (the “Restricted Stock Agreement”) which each Party agrees it shall execute concurrently with the issuance of such Common Stock and which Agreement shall be dated as of the date of such issuance. 
  

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 3.3. Matters Related to the Issuance of Common Stock. 
 3.3.1. Representations, Warranties and Certain Covenants of the Company. The Company represents, warrants and covenants that: 
 (a) Assuming the covenant of Service Provider contained in Subsection 3.3.2 of this Agreement is complied with, the issuance to Service Provider of each
share of Common Stock (all shares so issued the “Shares”) will be in compliance with all applicable federal and state securities laws in connection with the offer, issuance and sale of the securities. 
 (b) The execution, delivery and performance of this Agreement by Holdings, the issuance and sale of the Shares and the consummation by Holdings of the
other transactions by it contemplated hereby do not and will not on the date of the issuance and sale of the Shares(i) conflict with or violate any provision of Holdings’ or any of its subsidiaries certificates or articles of incorporation,
bylaws or other organizational or charter documents, or (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of any lien or encumbrance upon any
of the properties or assets of Holdings or any of its subsidiaries, or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or
other instrument or other understanding to which Holdings or any of its subsidiaries is a party or by which any property or asset of Holdings or any such subsidiary is bound or affected, in each case with respect to this Subsection (ii), to a degree
that would have a material adverse effect on the assets or results of operations of Holdings or its subsidiaries when considered as a whole (a “Material Adverse Effect”), or (iii) conflict with or result in a violation of any law,
rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which Holdings or any such subsidiary is subject (including federal and state securities laws and regulations), or by which any
property or asset of Holdings or any such subsidiary is bound or affected, in each case with respect to this Subsection (iii), to a degree that would have a Material Adverse Effect. 
 (c) Prior to the issuance of the Shares, Holdings shall obtain all consents, approvals, orders, authorizations or registrations, qualifications,
designations, declarations, and make all filings or registrations with any court or other federal, state, local or other governmental authority or other person that is required in order to issue the Shares. 
 (d) The Shares, when issued in accordance herewith, will be (i) duly authorized, (ii) duly and validly issued, (iii) fully paid and
nonassessable, and (iv) free and clear of all liens imposed by Holdings, other than restrictions on transfer provided for herein. 
 (e) At all times prior to the second anniversary of the issuance of the Shares during which there are Shares outstanding which have not been previously (i) sold or transferred to or through a broker or dealer or underwriter in a public
distribution, or (ii) sold or transferred in a transaction exempt from the registration and prospectus delivery requirements of the 

  

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Securities Act of 1933, as amended (the “Securities Act”), in the case of either Subsection (i) or Subsection (ii) in such a manner that,
upon the consummation of such sale or transfer, all transfer restrictions and restrictive legends with respect to such Shares are removed upon the consummation of such sale or transfer, Holdings shall use its commercially reasonable efforts to:
(1) comply with the requirements of Rule 144(c) under the Securities Act with respect to current public information about Holdings, and (2) furnish to the Service Provider such non-publicly available reports and documents of Holdings as
Service Provider may reasonably request to avail itself of Rule 144 of the Securities Act, or any similar rule or regulation of the United States Securities Exchange Commission allowing Service Provider to sell the Shares without registration.

 3.3.2. Representations and Warranties of the Service Provider. The Service Provider represents and warrants that (i) it is an
“accredited investor” as that term is defined in Rule 501(a) of Regulation D of the Securities Act; (ii) it is acquiring the Shares for investment for the Service Provider’s own account and not as a nominee or agent, and not with
a view to the resale or distribution of any part thereof, without prejudice, however, to Service Provider’s right to at all times to sell or otherwise dispose of any or all of the Shares so issued in compliance with applicable federal and state
securities laws and (iii) it does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participation to such person or to any third person, with respect to any of such Shares. 
 3.3.3. Restrictions on the Shares. Service Provider understands and agrees that the Shares may not be sold, transferred, or otherwise disposed of without
registration under the Securities Act or an exemption therefrom, and that in the absence of an effective registration statement covering the Shares or any available exemption from registration under the Securities Act, the Shares must be held
indefinitely. The Service Provider agrees and acknowledges that the following legend will be placed on the back of any certificate evidencing the Shares: 
 “THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR HYPOTHECATED UNLESS THERE IS AN EFFECTIVE REGISTRATION
STATEMENT UNDER SUCH ACT COVERING SUCH SECURITIES, THE SALE IS MADE IN ACCORDANCE WITH RULE 144 UNDER THE ACT, OR THE CORPORATION RECEIVES AN OPINION OF COUNSEL FOR THE HOLDER OF THESE SECURITIES REASONABLY SATISFACTORY TO THE CORPORATION, STATING
THAT SUCH SALE, TRANSFER, ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF SUCH ACT. 
 THE SECURITIES REPRESENTED HEREBY ARE SUBJECT TO RESTRICTIONS SET FORTH IN A RESTRICTED STOCK AGREEMENT WITH THIS CORPORATION, A COPY OF WHICH AGREEMENT IS AVAILABLE FOR INSPECTION AT THE OFFICES OF THE CORPORATION OR WILL BE MADE AVAILABLE
UPON REQUEST.” 
  

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 3.3.4. Limitation on the Number of Shares Issued. Notwithstanding anything to the contrary in this
Agreement, in no event shall the aggregate number of Shares issued pursuant to this Agreement be greater than nineteen and nine-tenths percent (19.9%) of the number of shares of Common Stock outstanding on the Effective Date. In the event that
an issuance of Shares pursuant to this Agreement would cause an aggregate issuance of Shares that is more than nineteen and nine-tenths percent (19.9%) of the number of shares of Common Stock outstanding on the Effective Date, the Company shall
make a cash payment to the Service Provider equal to the difference between cash value of the Shares that were scheduled to be issued pursuant to this Agreement, and the value of the Shares that were actually issued after giving effect to the
limitation set forth in this Section 3.3.4. 
 3.4. Service Provider Expenses. Company will also pay all out-of-pocket costs
incurred by the Service Provider in connection with the provision of the Services, including costs of any materials utilized [***]. Company and Service Provider shall equally split any travel costs incurred by Service Provider in connection with any
development meetings that occur in the Carlsbad, CA area; provided that prior to such meeting the Company and Service Provider shall mutually agree on which representatives of the Service Provider shall attend such meetings. Company shall reimburse
the Service Provider for all travel costs incurred at the request of the Company, provided that such travel is requested by the Company. The foregoing sentence shall specifically exclude all development meetings in the Carlsbad, CA area. All
reimbursement described in this Section 3.4 will be invoiced monthly by the Service Provider and invoices and are payable net 45 days. 
 4.
PROTECTED INFORMATION 
 4.1. Confidential Information. Each Party recognizes that the other Party’s Confidential
Information constitutes highly valuable and proprietary confidential information. Each Party agrees that during the Term and for [***] years thereafter, it will keep confidential, and will cause its employees, consultants, Affiliates and
sublicensees to keep confidential, all Confidential Information of the other Party. Neither Party nor any of their respective employees, consultants, Affiliates or sublicensees shall use Confidential Information of the other Party for any purpose
whatsoever other than exercising any rights granted to it or reserved by it hereunder. Without limiting the foregoing, each Party may disclose information to the extent such disclosure is reasonably necessary to (a) file, prosecute or defend
litigation in accordance with the provisions of this Agreement or (b) comply with applicable laws, regulations (including those of the United States Securities Exchange Commission) or court orders; provided, however, that if a Party is required
to make any such disclosure of the other Party’s Confidential Information in connection with any of the foregoing, it will give reasonable advance notice to the other Party of such disclosure requirement and will use reasonable efforts to
cooperate with such other Party in efforts to secure confidential treatment of such information required to be disclosed. Each Party agrees that any Confidential Information disclosed by a Party under that certain Mutual Confidentiality Agreement
between the Parties dated the 2nd day of July 2007 shall be protected by the obligations set forth therein through the date hereof and from and after the date hereof shall be protected by the obligations as to Confidential Information set forth
herein so as to be continuously protected. 
  

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 4.2. Limited Disclosure and Use. Each Party agrees that any disclosure of the other Party’s
Confidential Information to any officer, employee, consultant or agent of the other Party or any of its Affiliates or Sublicensees shall be made only if and to the extent necessary to carry out its rights and responsibilities under this Agreement,
shall be limited to the maximum extent possible consistent with such rights and responsibilities and shall only be made to the extent any such persons are bound by written confidentiality obligations to maintain the confidentiality thereof and not
to use such Confidential Information except as expressly permitted by this Agreement. Each Party further agrees not to disclose or transfer the other Party’s Confidential Information to any Third Parties under any circumstance without the prior
written approval from the other Party (such approval not to be unreasonably withheld), except as otherwise required by law, and except as otherwise expressly permitted by this Agreement. Each Party shall take such action, and shall cause its
Affiliates or Sublicensees to take such action, to preserve the confidentiality of each other’s Confidential Information as it would customarily take to preserve the confidentiality of its own Confidential Information, using, in all such
circumstances, not less than reasonable care. Each Party, upon the request of the other Party, will return all the Confidential Information disclosed or transferred to it by the other Party pursuant to this Agreement, including all copies and
extracts of documents and all manifestations in whatever form, within sixty (60) days of such request or, if earlier, the termination or expiration of this Agreement; provided however, that a Party may retain (i) any Confidential
Information of the other Party relating to any license which expressly survives such termination, and (ii) one (1) copy of all other Confidential Information in inactive archives in legal counsel’s files solely for the purpose of
establishing the contents thereof. 
 4.3. Publicity. Neither Party may publicly disclose the existence or terms or any other matter
of fact regarding this Agreement without the prior written consent of the other Party, which consent shall not be unreasonably withheld or delayed; provided, however, that either Party may make such a disclosure (i) to the extent required by
law or by the requirements of any nationally recognized securities exchange, quotation system or over-the-counter market on which such Party has its securities listed or traded, or (ii) with respect to Company, to any prospective Sublicensees,
or to investors, prospective investors, lenders and other potential financing sources, who are obligated to keep such information confidential. The Parties, upon the execution of this Agreement, will mutually agree to a press release with respect to
this transaction for publication. Once such press release or any other written statement is approved for disclosure by both Parties, neither Party may make subsequent public disclosure of the contents of such statement without the further approval
of the other Party. 
 4.4. Use of Name. Neither Party shall employ or use the name of the other Party in any promotional materials or
advertising without the prior express written permission of the other Party. 
 5. OWNERSHIP OF IDEAS, COPYRIGHTS AND PATENTS 
 5.1. Company Inventions. All Technology, whether patentable, copyrightable or not, which is solely conceived, reduced to practice or developed by
the Company, its employees, agents (it being agreed to by the Parties that the Service Provider shall not be deemed to be an agent of the Company with respect to this Section 5.1) or its Affiliates (the “Company Inventions”) is the
sole and exclusive property of the Company, and the Service Provider shall not exploit any of the Company Inventions. 
  

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 5.2. Service Provider Inventions. All Technology, whether patentable, copyrightable or not, which
is solely conceived, reduced to practice or developed by the Service Provider, its Affiliates or any of their employees, agents (it being agreed to by the Parties that the Company shall not be deemed to be an agent of the Company or any if its
Affiliates with respect to this Section 5.2) is the sole and exclusive property of the Service Provider. With respect to Technology described in the preceding sentence which is: (i) owned or controlled by Service Provider on the Effective
Date and is directed toward a Filling Agent (which Technology Service Provider advises [***]) (herein “Existing FA Technology”) or (ii) developed in the course of performance of the Services (such developed Technology collectively
with Existing FA Technology “Service Provider Inventions”), the Service Provider hereby grants to the Company, subject to the terms and conditions of this Agreement, an exclusive (even as to Service Provider and its Affiliates), worldwide,
license, including the right to grant sublicenses, under such Service Provider Inventions: (a) to conduct research and development in support of the licensed uses describe in clause (b) of this Section, and (b) to make, have made,
import, export, use, offer for sale or sell Licensed Products which embody such Service Provider Inventions. The foregoing license shall be granted without an obligation to pay royalties to Service Provider, except as provided in the License
Agreement. 
 5.3. Joint Inventions. All Technology conceived, developed or reduced to practice jointly by employees or consultants of
both Parties in connection with the Services shall be jointly owned by them (“Joint Inventions”). For purposes of this Section 5.3 Technology that is the subject of a patent application shall be deemed to have been developed jointly
by employees or consultants of Company and Service Provider, and thus be a Joint Invention, if at least one employee or consultant of each of Company and Service Provider is required to be named as an inventor in such application in order for such
patent to be valid, and a comparable concept shall apply to Technology not the subject of a patent application. Service Provider hereby grants to the Company, subject to the terms and conditions of this Agreement, an exclusive (even as to Service
Provider and its Affiliates), worldwide, license, including the right to grant sublicenses, under Joint Inventions: (i) (a) to conduct research and development in support of the licensed uses describe in subclause (b) of this clause
(i), and (b) to make, have made, import, export, use, offer for sale or sell Licensed Products which embody such Joint Inventions, all without obligations to pay royalties to Service Provider except as provided in the License Agreement and
(ii) (a) to conduct research and development in support of the licensed uses describe in subclause (b) of this clause (ii), and (b) to make, have made, import, export, use, offer for sale or sell products, other than Licensed
Products, that are within in the Licensed Field and which embody such Joint Inventions (the “In-Field Products”), subject to the royalty payment obligations as set forth herein. The Company hereby grants to Service Provider, subject to the
terms and conditions of this Agreement, an exclusive (even as to the Company and its Affiliates), worldwide, royalty-free, fully paid-up, license, including the right to grant sublicenses, under Joint Inventions: (y) to conduct research and
development in support of the licensed uses describe in clause (z) of this Section, and (z) to make, have made, import, export, use, offer for sale or sell products other than products for the treatment of spinal disorders. 
  

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 5.4. Exploitation as to Treatment of Spinal Disorders Outside of Licensed Field. The Parties agree
neither Party may practice, sell, license or otherwise grant rights to or exploit Joint Inventions with respect to the treatment of spinal disorders outside of the Licensed Field without the prior written consent of the other Party, which consent
may not be unreasonably withheld. It is agreed that it shall not be unreasonable for a Party to refuse its consent to any such practice, sale, license or other grant of rights or exploitation if the other Party does not propose to equally share the
economic benefits of such practice, sale, license or other grant of rights or exploitation with the Party whose consent is required. Notwithstanding anything to the contrary in this Section 5.4, if no applicable license then remains in effect
under Section 5.3, then the obligations of the Parties set forth in the foregoing shall apply to the treatment of spinal disorders both within the Licensed Field and outside of the Licensed Field. 
 5.5 Royalties. The Company shall pay to Service Provider within thirty (30) days of the end of each calendar quarter earned royalties of
[***] of Net Sales during such calendar quarter. Each royalty payment shall (i) be accompanied by a report specifying: the Net Sales (including an accounting of deductions taken in the calculation of Net Sales) and (ii) state the
applicable exchange rate used in conversion from any foreign country’s currency to United States Dollars (which conversion shall be determined in accordance with Section 5.6). All payments hereunder shall originate in the United States and
be made in United States dollars. 
 5.6 Conversion. Conversion of foreign currency to United States dollars shall be made at the
conversion rate existing in the United States (as reported in The Wall Street Journal) on the last business day of the quarter immediately preceding the applicable calendar quarter. If The Wall Street Journal ceases to be published,
then the rate of exchange to be used shall be that reported in such other business publication of national circulation in the United States as the Parties reasonably agree.  
 5.7 Tax Withholding; Restrictions on Payment. All taxes, assessments and fees of any nature levied or incurred on account of any payments
from the Company to Service Provider accruing under this Agreement, by national, state or local governments, will be assumed and paid by the Company, except taxes levied thereon as income to Service Provider and if such taxes are required by
applicable law to be withheld by the Company they will be deducted from payments due to Service Provider and will be timely paid by the Company to the proper taxing authority for the account of Service Provider, a receipt or other proof of payment
therefore secured and sent to Service Provider as soon as practicable. The Company shall remit all payments to Service Provider hereunder from within the United States. 
 5.8 Records. The Company shall keep accurate books and accounts of the computation of the number of In-Field Products sold and the Net Sales of
the Company, its Affiliates and Sublicensees of In-Field Products, and shall cause such Affiliates and Sublicensees to keep such records of their respective sales of In-Field Products and Net Sales, in sufficient detail to permit accurate
determination of all figures necessary for verification of payments required to be paid hereunder, which books and accounts shall be maintained for at least three (3) years from the end of the calendar year to which they pertain. 
 5.9 Review. At the request of Service Provider, which shall not be made more frequently than once per calendar year during the Term, on a business
day designated by Service Provider upon at least thirty (30) days’ prior written notice to the Company, the 

  

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Company shall permit, under confidentiality obligations with terms substantially the same as those hereunder, an independent certified public accountant
reasonably selected by Service Provider and reasonably acceptable to the Company to inspect (during regular business hours) the relevant records required to be maintained by the Company under Section 5.8. In the event such inspection reveals an
underpayment, such underpayment shall be due and payable by the Company within thirty (30) days of the date of such inspection, together with interest thereon from the date the amount due but unpaid was first due until the date paid, at the
lower of 12% per annum or the maximum rate permitted by applicable law. Such inspection shall be at the expense of Service Provider unless there is an underpayment that differs by greater than five percent (5%) from the amount that was
otherwise due, in which event the Company shall also pay the reasonable costs of the inspection. The foregoing is without prejudice to the right of the Company to dispute the conclusion of the accountant, but such dispute shall not relieve the
Company of its obligation to pay interest and, under the circumstances described, costs of inspection as to amount actually due. 
 5.10 Prosecution of Patents as to Service Provider Inventions and Joint Inventions. Service Provider shall be responsible for, and shall use reasonable efforts in, preparing, applying for and filing, prosecuting, obtaining and
maintaining (“Prosecuting”, with “Prosecution” having a corresponding meaning) in the name of Service Provider any patents that may be available with respect to Service Provider Inventions and in the name of the Parties any
patents that may be available with respect to Joint Inventions in the [***] (and elsewhere as it may elect), using patent counsel reasonably chosen by Service Provider (which in any event includes Levine Bagade Han LLP), and for maintaining any
patents obtained thereon. Company shall reimburse Service Provider against invoices issued no more often than monthly for reasonable costs, including attorney’s fees, incurred by Service Provider in all such Prosecution. Service Provider shall
keep the Company reasonably appraised as to the Prosecution of each such patent application. Service Provider agrees to send Company copies of all file histories and prosecution documents for each of the patent applications related to the Service
Provider Inventions within thirty (30) days of receipt by Service Provider.  
 5.11 Requests for Prosecuting Other
Patents as to Service Provider Inventions and Joint Inventions. Company may reasonably request that Service Provider at Company’s expense seek patent protection of the Service Provider Inventions or Joint Inventions in addition to that
contemplated by Section 5.10 by written notice to Service Provider. Service Provider shall have the right in its discretion to refuse to seek any additional patent protection in response to a request from Service Provider in accordance with
this Section 5.11 (a “Refused Patent”) by giving prompt written notice to Company. Company shall be permitted, but not obligated, to assume Prosecution, in its name, as to any Refused SP Patent, at its cost and expense, and Service
Provider shall have no license to such Refused SP Patents. 
 5.12 Abandonment, Refusal and Rights as to Prosecuting Other Patents
as to Service Provider Inventions and Joint Inventions. Company shall have the right in its discretion to cease to pay for the Prosecution of patent protection as to any Service Provider Inventions or Joint Inventions then being paid for by it
as contemplated by Section 5.10 or 5.11 by giving written notice to Service Provider at least sixty (60) days prior to ceasing such payment (“Discontinued Patents”), and in such event need not pay for expenses of Prosecution
incurred after the end of such sixty (60) day period. Service Provider shall be permitted, but not obligated, to assume 

  

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Prosecution as to any Discontinued Patent, at its cost and expense, and Company shall have no license to such Discontinued Patents and as to Discontinued
Patents with respect to Joint Inventions all interests of the Company therein shall be and hereby are assigned to Service Provider effective as of the end of such sixty (60) day notice period. 
 5.13 Cooperation. In any event each Party will, and will cause its employees and consultants to, provide any assistance and executed
agreements and instruments as are reasonably requested by a Party which is seeking to obtain in accordance herewith patents or other protection with respect to any Service Provider Inventions or Joint Inventions or otherwise to give effect to the
terms of this Agreement. 
 5.14 Notice of Infringement or Claims. If, during the Term, either Party learns of any
(i) actual, alleged or threatened infringement by a Third Party of any Service Provider Inventions and Joint Inventions or (ii) attack on the enforceability or validity of any to Service Provider Inventions and Joint Inventions, then such
Party shall promptly notify the other Party of the same and shall provide such other Party with available details as to and evidence of such infringement, suit or claim. 
 5.15 Service Provider Inventions and Joint Invention Intellectual Property Enforcement Corresponding to Company Licenses. Company shall have the first right (but not the obligation), at its own expense and with
legal counsel of its own choice, to bring suit (or take other appropriate legal action) against any actual, alleged or threatened infringement of Service Provider Inventions and/or Joint Inventions to the extent an applicable exclusive license under
Sections 5.2 or 5.3 with respect to such Service Provider Inventions and/or Joint Inventions then remains in effect (and if no such license remains in effect as to a Service Provider Invention this Section shall not apply thereto rather
Section 5.17 shall apply thereto and if no such license remains in effect as to a Joint Invention this Section shall not apply thereto rather Section 5.16 shall apply thereto). Such right includes the right to settle the infringement
claim, provided that if such settlement would include Company’s agreement to the invalidity or unenforceability of any claim within such intellectual property rights, Service Provider must first approve in writing such settlement, which
approval shall not be unreasonably withheld. Any damages, monetary awards or other amounts recovered, whether by judgment or settlement, pursuant to any suit, proceeding or other legal action taken by Company under this Section 5.15, shall be
applied as follows: 
 (a) first, to reimburse the cost of the Company for its reasonable costs and expenses (including reasonable
attorneys’ fees and costs) incurred in prosecuting such enforcement action; 
 (b) second, to reimburse the costs of Service Provider
for its reasonable costs and expenses (including reasonable attorneys’ fees and costs) incurred in such enforcement action; 
 (c)
third, to the Company in reimbursement for lost sales associated with Licensed Products and to Service Provider in reimbursement for lost royalties, it being agreed that for such purpose such lost sales shall equate to Net Sales; and 
  

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 (d) fourth, any amounts remaining shall be allocated to each Party on a pro rata basis based on each
Party’s losses attributable to the infringement. 
 If Company brings any such action or proceeding hereunder, Service Provider agrees to be joined as
party plaintiff if necessary to prosecute such action or proceeding, and to give Company reasonable assistance and authority to file and prosecute the suit. In no event shall Service Provider being a party to or represented in any such action by
Company affect the right of Company to control the suit as described in the first sentence of this Section 5.15. If Company fails to take any action it is permitted to take by this Section 5.15 to obtain a discontinuance of such
infringement or to bring suit against the infringer within four (4) months of having knowledge of such infringement, Service Provider shall have the right but not the obligation to enforce such Service Provider Inventions and/or Joint
Inventions at its expense and for its sole benefit. For the avoidance of doubt, neither Company’s nor Service Provider’s failure to enforce the rights set forth in this Section 5.15 in any way affects the rights granted to or
responsibilities of either Party under the Agreement. 
 5.16 Joint Invention Intellectual Property Enforcement With Respect to Treatment
of Spinal Disorders outside of the Licensed Field. Service Provider shall have the first right (but not the obligation), at its own expense and with legal counsel of its own choice, to bring suit (or take other appropriate legal action) against
any actual, alleged or threatened infringement of Joint Inventions in relation to infringement by products for the treatment of spinal disorders outside of the Licensed Field, but if no applicable license then remains in effect under
Section 5.3, then this Section shall also apply to all infringements of Joint Invention in relation to infringement by products for the treatment of spinal disorders both within the Licensed Field and outside of the Licensed Field. Such right
includes the right to settle the infringement claim in accordance with this Section 5.16, provided that if such settlement would include Service Provider’s agreement to the invalidity or unenforceability of any claim within such
intellectual property rights, Company must first approve in writing such settlement, which approval shall not be unreasonably withheld. Any damages, monetary awards or other amounts recovered, whether by judgment or settlement, pursuant to any suit,
proceeding or other legal action taken by Service Provider under this Section 5.16, shall be applied as follows: 
 (a) first, to
reimburse the cost of Service Provider for its reasonable costs and expenses (including reasonable attorneys’ fees and costs) incurred in prosecuting such enforcement action; 
 (b) second, to reimburse the costs of the Company for its reasonable costs and expenses (including reasonable attorneys’ fees and costs) incurred
in such enforcement action; and 
 (c) third, equally between the Parties. 
 If Service Provider brings any such action or proceeding hereunder, the Company agrees to be joined as party plaintiff if necessary to prosecute such action or proceeding, and to give Service Provider reasonable
assistance and authority to file and prosecute the suit. In no event shall the Company being a party to or represented in any such action by Service Provider affect the right of Service Provider to control the suit as described in the first sentence
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take by this Section 5.16 to obtain a discontinuance of such infringement or to bring suit against the infringer within four (4) months of having
knowledge of such infringement, the Company shall have the right but not the obligation to enforce such Joint Inventions at its expense and for its sole benefit. With respect to any settlement of a claim of infringement that is based upon a Joint
Invention, for which the right to bring suit arose pursuant to this Section 5.16, neither Party shall grant any licenses which would cure any such infringement without the prior written consent of the other Party, which consent may not be
unreasonably withheld. It is agreed that it shall not be unreasonable for a Party to refuse its consent to any such license or other grant of rights or exploitation if the other Party does not propose to equally share the economic benefits of such
practice, sale, license or other grant of rights or exploitation with the Party whose consent is required. For the avoidance of doubt, neither Company’s nor Service Provider’s failure to enforce the rights set forth in this
Section 5.16 in any way affects the rights granted to or responsibilities of either Party under this Agreement. 
 5.17 Other Service
Provider Inventions and Joint Inventions Enforcement. Except to the extent that either Party has the right to bring suit (or take other appropriate legal action, including the right to enter into settlements or grant licenses) against any
actual, alleged or threatened infringement of Service Provider Inventions or Joint Inventions pursuant to Sections 5.15 and 5.16, Service Provider shall have the sole right (but not the obligation), at its own expense and with legal counsel of its
own choice, to bring suit (or take other appropriate legal action) against any actual, alleged or threatened infringement of any intellectual property rights that are based on Service Provider Inventions or Joint Inventions. Such right includes the
right to settle the infringement claim, provided that if such settlement would include Company’s agreement to the invalidity or unenforceability of any claim within such intellectual property rights, Company must first approve in writing such
settlement, which approval shall not be unreasonably withheld. 
 6. REPRESENTATIONS AND WARRANTIES OF SERVICE PROVIDER. As of the Effective Date,
Service Provider represents and warrants to Company as follows: 
 6.1. it owns and controls the Existing FA Technology, and has the right to
grant the license thereto set forth herein free and clear of all encumbrances; no Third Party has any trade secret rights in any Existing FA Technology, and no Third Party has notified Service Provider that the Third Party is claiming any ownership
of or right to Existing FA Technology; and 
 6.2. it is not a party to any agreements which would prevent the performance of the obligations
of the Service Provider contained in this Agreement. 
 7. REPRESENTATIONS AND WARRANTIES OF EACH PARTY AND HOLDINGS. As of the Effective Date, each
Party and Holdings represents and warrants as follows: 
 7.1. the execution, delivery and performance of this Agreement will not constitute a
violation, be in conflict with, or result in a breach of any agreement or contract to which it is bound; 
  

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 7.2. it is a corporation or entity duly organized and validly existing under the laws of the state or
other jurisdiction of incorporation or formation; 
 7.3. the execution, delivery and performance of this Agreement by it has been duly
authorized by all requisite corporate action and do not require any shareholder action or approval; 
 7.4. it has the power and authority to
execute and deliver this Agreement and to perform its obligations hereunder; and 
 7.5. it shall at all times comply with all applicable
material laws and regulations relating to its activities under the Agreement. 
 8. INDEMNITY 
 8.1. Company Indemnity. Company shall indemnify, defend and hold harmless Service Provider, its Affiliates and their respective directors,
officers, employees, stockholders and agents and their respective successors, heirs and assigns (the “Service Provider Indemnitees”) from and against any claims, liability, damage, loss or expense (including reasonable attorneys’ fees
and expenses of litigation) incurred by or imposed upon such Service Provider Indemnitee, or any of them, in connection with any Third Party claims, suits, actions, demands or judgments to the extent arising out of or related to (i) the design,
development, testing, production, manufacture, supply, promotion, marketing, importation, sale, use or instructions for use of any Licensed Product or In-Field Products (or any component thereof) manufactured or sold by Company or any Affiliate or
Sublicensee under this Agreement, including without limitation any claims that (a) the design of any Licensed Product or In-Field Products by Company or a Sublicensee that incorporates the Technology developed pursuant to this Agreement
infringed the intellectual property right of any Third Party (except to the extent that such claim is based upon Existing FA Technology, or to the extent that such claim is based on a Service Provider Invention and the Service Provider has
materially breached its obligations with respect to the Patent Analysis of such Service Provider Invention) or (b) any Licensed Product or In-Field Products sold by Company or any Affiliate or Sublicensee that incorporates the Technology
developed pursuant to this Agreement caused the death of any person or any injury to any person or property, (ii) any material breach of any representation or warranty by Company in Article 7 of this Agreement. 
 8.2. Service Provider Indemnity. Service Provider shall indemnify, defend and hold harmless Company, its Affiliates and their respective
directors, officers, employees, stockholders and agents and their respective successors, heirs and assigns (the “Company Indemnitees”) from and against any claims, liability, damage, loss or expense (including reasonable attorneys’
fees and expenses of litigation) incurred by or imposed upon such Company Indemnitee, or any of them, in connection with any Third Party claims, suits, actions, demands or judgments to the extent arising out of any claims that any material breach of
any representation or warranty by Service Provider in Articles 6 and 7 of this Agreement. 
 8.3. Indemnification Procedures. In the
event that any Indemnitee is seeking indemnification under Sections 8.1 or 8.2 above from a Party (the “Indemnifying Party”), the Indemnitee shall notify the Indemnifying Party of such claim with respect to such 

  

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Indemnitee as soon as reasonably practicable after the Indemnitee receives notice of the claim, and the Party seeking indemnification, on behalf of itself
and such Indemnitee, shall permit the Indemnifying Party to assume direction and control of the defense of the claim (including the right to settle the claim solely for monetary consideration) and shall cooperate as requested (at the expense of the
Indemnifying Party) in the defense of the claim. The indemnification obligations under Article 8 shall not apply to any harm suffered as a direct result of any delay in notice to the Indemnifying Party hereunder or to amounts paid in settlement of
any claim, demand, action or other proceeding if such settlement is effected without the consent of the Indemnifying Party, which consent shall not be withheld or delayed unreasonably. The Indemnitee, its employees and agents, shall reasonably
cooperate with the Indemnifying Party and its legal representatives in the investigation of any claim, demand, action or other proceeding covered by Article 8. 
 9. TERM AND TERMINATION 
 9.1. Term. This Agreement shall be effective on the Effective Date and shall continue in
full force and effect until terminated as permitted herein. 
 9.2. Termination for Breach. If one Party defaults in the performance
of, or fails to perform, any of its material obligations under this Agreement (including, without limitation, the completion of the Services prior to the end of the Term), and such default is not remedied within ten (10) days of the receipt of
written notice from the non-defaulting Party (except with respect to the failure to complete the Services by the end of the Term, for which there shall be no cure period), then the non-defaulting Party shall have the right to terminate this
Agreement upon written notice and avail itself of any and all rights and remedies to which it may be entitled in accordance with the applicable provisions of this Agreement. 
 9.3. Return of Materials. Upon expiration or termination of this Agreement for any reason each Party shall immediately return to the receiving
Party all property belonging to the other Party, including without limitation all Confidential Information in the receiving Party’s possession or control, any and all notes, drawings, lists, memoranda, magnetic disks or tapes, or other
recording media containing such Confidential Information, whether alone or together with nonconfidential information, all documents, reports, files, memoranda, records, software, credit cards, door and file keys, computer access codes, disks and
instructional manuals, or any other physical or personal property that the receiving Party received during the Term. If any such property is not in the receiving Party’s possession and control, the receiving Party shall use its best efforts to
obtain and return the same. The receiving Party will be entitled to retain one (1) copy of all Confidential Information received in an archived format for recordkeeping and legal purposes. 
 9.4. Certain Effects of Termination. Upon any termination of this Agreement by (i) Service Provider pursuant to Section 9.2 hereunder,
as of the effective date of such termination: (a) all relevant licenses and sublicenses granted by Service Provider to Company hereunder with respect to the Service Provider Inventions, and any sublicense granted by Company to any Sublicensee
with respect to the Service Provider Inventions, shall terminate automatically, (b) all relevant licenses and sublicenses granted by Service Provider to Company hereunder with respect to the Joint Inventions, and any permitted sublicense
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Sublicensee with respect to the Joint Inventions, shall terminate automatically, (c) all relevant licenses and sublicenses granted by Company to Service
Provider hereunder with respect to the Joint Inventions, and any permitted sublicense granted by Service Provider to any Sublicensee with respect to the Joint Inventions, shall continue in full force and effect, and (d) with respect to any
Joint Invention, the rights and obligations of the Parties set forth in Section 5.4, Sections 5.5 through 5.9 (inclusive) (with respect to any Net Sales before the date of such termination), Sections 5.10 through 5.14 (inclusive),
Section 5.16 and 5.17 shall survive such termination, and (ii) Company pursuant to Section 9.2 hereunder, as of the effective date of such termination: (a) all relevant licenses and sublicenses granted by Service Provider to
Company hereunder with respect to the Service Provider Inventions, and any sublicense granted by Company to any Sublicensee with respect to the Service Provider Inventions, shall terminate automatically, (b) all relevant licenses and
sublicenses granted by Service Provider to Company hereunder with respect to the Joint Inventions, and any permitted sublicense granted by Company to any Sublicensee with respect to the Joint Inventions, shall terminate automatically, (c) all
relevant licenses and sublicenses granted by Company to Service Provider hereunder with respect to the Joint Inventions, and any permitted sublicense granted by Service Provider to any Sublicensee with respect to the Joint Inventions, shall survive,
and (d) with respect to any Joint Invention, the rights and obligations of the Parties set forth in Section 5.4, Sections 5.5 through 5.9 (inclusive) (with respect to any Net Sales before the date of such termination), Sections 5.10
through 5.14 (inclusive), Section 5.16 and 5.17 shall survive such termination. 
 10. NOTICES 
 All notices, requests and other communications hereunder shall be in writing, shall be addressed to the receiving Party’s address set forth below or
to such other address as a Party may designate by notice hereunder, and shall be either (i) delivered by hand, (ii) sent by nationally-recognized overnight courier service providing evidence of receipt, or (iii) sent by registered or
certified mail, return receipt requested, postage prepaid. The addresses and other contact information for the parties are as follows: 
  

			
	If to Service Provider:	  	 Stout Medical Group LP
 410 East Walnut Street, Suite
#8,
 Perkasie, Pennsylvania 18944
 (215) 450-8860 (ext.
102)
 Attn: Chief Executive Officer

		
	With a copy to:	  	 Oppenheimer Wolff & Donnelly
 Plaza VII Building,
Suite 3300
 45 South Seventh Street
 Minneapolis, Minnesota 55402

 (612) 607-7397
 Attn: Dennis P. Whelpley

		
	If to Company:	  	 Alphatec Spine, Inc.
 2051 Palomar Airport Road, Suite
100
 Carlsbad, CA 92011
 (760) 431-9286 (ext. 169)
 Attn: President and CEO

  

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	With a copy to:	  	 Heller Ehrman LLP
 Times Square Tower
 7 Times Square
 New York, New York 10036
 Attention: Blaine Templeman
 Telephone: (212) 847-8572
 Fax: (212) 763-7600
 Email:
blaine.templeman@hellerehrman.com

 All notices, requests and other communications hereunder
shall be deemed to have been given either (i) if by hand, at the time of the delivery thereof to the receiving Party at the address of such Party set forth above, (ii) if made by telecopy or facsimile transmission, at the time that receipt
thereof has been acknowledged by the recipient, (iii) if sent by nationally-recognized overnight courier, on the day such notice is delivered to the recipient, or (iv) if sent by registered or certified mail, on the fifth (5th) business day following the day such mailing is made. 
 11.
GENERAL 
 11.1. Governing Law. This Agreement will be construed and interpreted in accordance with the laws of the State of New
York. 
 11.2. Limitations. Except as expressly set forth in this Agreement, neither Party grants to the other Party any right or
license to any of its intellectual property. 
 11.3. Entire Agreement. This is the entire Agreement between the Parties with respect
to the subject matter hereof and supersedes all prior representations, understandings and agreements between the Parties with respect to the subject matter hereof. No modification shall be effective unless in writing with specific reference to this
Agreement and signed by the Parties. No modification shall be effective unless in writing with specific reference to this Agreement and signed by the Parties. No modification shall be effective unless in writing with specific reference to this
Agreement and signed by the Parties. 
 11.4. Waiver. The terms or conditions of this Agreement may be waived only by a written
instrument executed by the Party waiving compliance. The failure of either Party at any time or times to require performance of any provision hereof shall in no manner affect its rights at a later time to enforce the same. No waiver by either Party
of any condition or term shall be deemed as a continuing waiver of such condition or term or of another condition or term. 
 11.5.
Headings. Section, Subsection and Paragraph headings are inserted for convenience of reference only and do not form part of this Agreement. 
 11.6. Assignment. Neither this Agreement nor any right or obligation hereunder may be assigned, delegated or otherwise transferred, in whole or part, by either Party without the prior express written consent of the other Party;
provided that a Party may freely assign this Agreement, including all rights and obligations hereunder, at any time to any entity acquiring in the same 

  

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transaction substantially all of such Party’s business and assets, including those to which this Agreement relates, whether by way of sale, merger,
consolidation or other transaction without the prior written consent of the other Party. Any permitted assignee shall assume all obligations of its assignor under this Agreement. Any purported assignment in violation of this Section 11.7 shall
be void. The terms and conditions of this Agreement shall be binding upon and inure to the benefit of the permitted successors and assigns of the parties. 
 11.7. Force Majeure. Neither Party shall be liable for failure of or delay in performing obligations set forth in this Agreement, and neither shall be deemed in breach of its obligations, for so long as and to
the extent that such failure or delay is due to natural disasters or any causes beyond the reasonable control of such Party. In event of such force majeure, the Party affected thereby shall use reasonable efforts to cure or overcome the same and
resume performance of its obligations hereunder. 
 11.8. Construction. The Parties hereto acknowledge and agree that: (i) each
Party and its counsel reviewed and negotiated the terms and provisions of this Agreement and have contributed to its revision; (ii) the rule of construction to the effect that any ambiguities are resolved against the drafting Party shall not be
employed in the interpretation of this Agreement; and (iii) the terms and provisions of this Agreement shall be construed fairly as to all Parties hereto and not in favor of or against any Party, regardless of which Party was generally
responsible for the preparation of this Agreement. 
 11.9. Severability. If any provision(s) of this Agreement are or become invalid,
are ruled illegal by any court of competent jurisdiction or are deemed unenforceable under then current applicable law from time to time in effect during the Term hereof, it is the intention of the Parties that the remainder of this Agreement shall
not be affected thereby provided that a Party’s rights under this Agreement are not thereby materially diminished. The Parties hereto covenant and agree to renegotiate any such term, covenant or application thereof in good faith in order to
provide a reasonably acceptable alternative to the term, covenant or condition of this Agreement or the application thereof that is invalid, illegal or unenforceable, it being the intent of the Parties that the basic purposes of this Agreement are
to be effectuated. 
 11.10. Status. Nothing in this Agreement is intended or shall be deemed to constitute a partner, agency,
employer-employee, or joint venture relationship between the Parties. 
 11.11. Section 365(n). All licenses granted under this
Agreement are deemed to be, for purposes of Section 365(n) of the U.S. Bankruptcy Code, licenses of right to “intellectual property” as defined in Section 101 of such Code. The Parties agree that Company may fully exercise all of
its rights and elections under the U.S. Bankruptcy Code, regardless of whether either Party files for bankruptcy in the United States or other jurisdiction. 
 11.12. Further Assurances. Each Party agrees to execute, acknowledge and deliver such further instructions, and to do all such other acts, as may be necessary or appropriate in order to carry out the purposes
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 11.13. Counterparts. This Agreement may be executed simultaneously 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. 
 11.14. Surviving
Provisions. Notwithstanding any provision herein to the contrary, the rights and obligations of the Parties set forth in Sections 9.3, 9.4 and Articles 4, 8, 10, and 11 (to the extent relevant) shall survive the expiration or termination of this
Agreement. 
 11.15. Guarantee and Agreement of Alphatec Holdings, Inc. By its signature below, Holdings hereby guarantees the full
and timely payment and performance of all obligations of Company under this Agreement and agrees to issue shares to Service Provider consistent with the terms of this Agreement, including without limitation Section 3.2 hereof. 
 [Signature Page Follows] 
  

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 IN WITNESS WHEREOF, the Parties and Holdings have caused this Agreement to be executed by their duly
authorized representative. 
  

									
	ALPHATEC SPINE, INC.	 		 	STOUT MEDICAL GROUP, LP:
					
		 		 		 	By:	 	Stout Medical Group, Inc.
		 		 		 	Its:	 	General Partner
					
	By:	 	 /s/ Dirk Kuyper
	 		 	By:	 	 /s/ Tom Molz

	Name:	 	Dirk Kuyper	 		 	Name:	 	Tom Molz
	Title:	 	President and CEO	 		 	Title:	 	President and CEO
				
	ALPHATEC HOLDINGS, INC.	 		 		 	
					
	By:	 	 /s/ Dirk Kuyper
	 		 		 	
	Name:	 	Dirk Kuyper	 		 		 	
	Title:	 	President and CEO	 		 		 	

  

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 SCHEDULE A 
 STATEMENT OF WORK 
 [***] 
  

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 SCHEDULE B 
 RESTRICTED STOCK AGREEMENT 
 [***] 
  

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