Document:

QuickLinks
 -- Click here to rapidly navigate through this document

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant to the Company's application requesting confidential
treatment under Rule 406 of the Securities Act. Asterisks denote omissions.

Exhibit 10.34  

 
 

ALPHATEC SPINE, INC. SALES AGENCY AGREEMENT

        This
Sales Agency Agreement (the "Agreement") is between Alphatec Spine, Inc., a California corporation (the "Company") and Keystone Surgical, LLC (hereinafter referred to as
"Sales Agent") is made as of the 1st day of October, 2005 (the "Effective Date"). 

        WHEREAS
Sales Agent has established and maintained a business office staffed with professional sales personnel in the Territory (as hereinafter defined); and 

        WHEREAS
the Company wishes to retain Sales Agent to sell its Products (as hereinafter defined) and Sales Agent wishes to act as the Company's exclusive Sales Agent within the Territory. 

        NOW
THEREFORE, in consideration of the mutual covenants and provisions herein contained, and other good and valuable consideration, the receipt and sufficiency of which is acknowledged
by the parties hereto the parties agree as follows: 

1.    APPOINTMENT OF SALES AGENT    

        Subject
to the provisions of the Agreement, the Company hereby appoints Sales Agent and Sales Agent hereby accepts appointment as the Sales Agent for the products described in  Exhibit A (hereinafter the
"Products") with responsibility for the geographical areas listed on  Exhibit B (hereinafter the
"Territory"). Sales Agent shall have the right to solicit orders for Products only from persons and entities having their places of business within the Territory that agree to use the Products so
ordered within the Territory. 

2.    SALES AGENTS' OBLIGATIONS    

        In
addition to any and all covenants, duties and obligations of Sales Agent set forth elsewhere in this Agreement, Sales Agent agrees: 

        2.1.  To
use its best efforts to promote the sale of the Products throughout the Territory; 

        2.2.  To
use its best efforts to meet the sales quotas set forth on Exhibit D; 

        2.3.  To
bear all costs and liabilities relating to the conduct of its business, including but not limited to the cost and expense of providing and maintaining its place of
business, the wages of its employees, the payment of commissions or other compensation to its agents or independent contractors, and its expenses incurred for or in connection with its performance
under or breach of this Agreement; 

        2.4.  To
refrain from making any representations or warranties in respect of the Products, except: (i) those representations and warranties authorized in writing by
the Company, in the form of brochures, memorandums, press releases, advertisements, specification sheets, or 

 

correspondences,
and (ii) verbal technical assistance that Sales Agent received from the Company which was subsequently confirmed in writing by Sales Agent; 

        2.5.  To
promote the Products in strict adherence to regulatory and professional requirements, and all applicable laws, rules, guidelines and regulations including, but not
limited to, the Federal Food, Drug and Cosmetic Act of 1938, as amended, and the regulations promulgated thereunder (the "Act"); 

        2.6.  To
render reasonable assistance to the Company, on the Company's request, in the defense of any and all Liabilities (as defined below); 

        2.7.  To
refrain from disparaging the Company and its subsidiaries or its Products, or from otherwise injuring the reputation and good standing of the Company and its
subsidiaries; 

        2.8.  To
not, directly or indirectly, solicit any sale of the Products or establish any branch or distribution depot for the sale of the Products outside the Territory
without the prior written approval of the Company; 

        2.9.  Take
full responsibility for the actions of any Sales Agent Indemnitee (as defined below); 

        2.10. To
assist the Company, on request, in ascertaining the credit standing of and in collecting receivables from any customer; and 

        2.11. To
attend, at its own expense, all sales meetings, training sessions, seminars, trade shows and the like for which the Company reasonably requests attendance by Sales
Agent. 

3.    ALPHATEC'S DUTIES AND OBLIGATIONS    

        In
order to assist Sales Agent in fostering the promotion and sale of the Company's Products, the Company agrees: 

        3.1.  Reasonably
assist Sales Agent with advertising material, sales promotion aids, displays, catalogues, literature and convention assistance; 

        3.2.  To
provide Sales Agent with new Product information and reasonably assist Sales Agent in promotional activities; 

        3.3.  To
provide Sales Agent with reasonable technical assistance, through sales seminars, meetings and training programs; and 

        3.4.  To
use commercially reasonable efforts to make Products available to the Sales Agent to be used by customers. 

2

 

4.    QUOTATIONS, ORDERS AND PAYMENT BY CUSTOMERS    

        4.1.  Sales
Agent will make quotations in respect to the sales of the Products only in accordance with the Company's then current policies and procedures and on prices
established by the Company and the Company's terms and conditions of sale, including the terms of payment specified by the Company. The Sales Agent will assist the Company in obtaining the appropriate
documentation needed for customers (credit reports, sales tax exemptions, etc.). 

        4.2.  Sales
orders generated by Sales Agent will be submitted directly to the Company by the customer. If Sales Agent receives any order for Products, it will promptly
forward it to the Company. The Company will establish and promulgate the criteria for sales orders to be generated by Sales Agent and Sales Agent will use its best efforts to secure sales orders that
meet the Company's criteria. The Company will have the right at anytime to reject any order in whole or in part. If the Company reasonably rejects any sales order generated by Sales Agent, then Sales
Agent shall be notified and given the opportunity to inform its customer or potential customer of said rejection in an attempt to preserve Sales Agent's business goodwill. On request of the Company,
Sales Agent will not supply Product to customers put on credit hold until released by the Company. 

        4.3.  The
Company will invoice the customer for the purchased Products. Sales Agent will not invoice customers for the Product unless expressly requested to do so by the
Company in writing. Payments against invoices are to be made directly to the Company, without intervention by Sales Agent unless expressly requested in writing by the Company in each instance. If
Sales Agent receives any payment from a customer, then Sales Agent will immediately forward the entire amount of such payment to the Company. 

        4.4.  The
Company will have the right, in its sole discretion, to issue credits, make discounts and allowances, and/or accept returns of the Products. Sales Agent in an
effort to be competitive with the orthopedic market or to develop new customers will have the right to request the Company to issue credits, make discounts and allowances and/or accept returns of the
Products. The Company shall use its sole discretion in determining whether to grant Sales Agent's request. 

5.    COMMISSIONS    

        5.1.  Except
as set forth in this Agreement, during the term of this Agreement the Company will pay to Sales Agent a commission at the rate specified in  Exhibit C on the Company's Net Sales (as defined below)
of Products in the Territory that were made in accordance with this Agreement. For
purposes of this Agreement, the terms "Net Sales" shall mean, for any period, the gross amount properly invoiced by Sales Agent from the sale to customers of Product, less deductions for:
(i) normal and customary quantity and/or cash discounts, including, without limitation, those granted on account of price adjustments, rebates actually allowed and taken, administrative or
other fees or reimbursements or similar payments to buying groups, pharmacy benefit management organizations, health care insurance carriers or 

3

 

other
institutions, fees paid to other distributors and chargebacks; (ii) freight, postage, shipping, and related insurance expenses; (iii) customs or excise duties or other duties
directly imposed and related to the sales making up the gross invoice amount; (iv) any rebates or similar payments made with respect to sales paid for by any governmental or regulatory
authority such as, by way of illustration and not in limitation of the parties' rights hereunder, Federal or state Medicaid, Medicare or similar state program or equivalent foreign governmental
program; (v) sales and other taxes and duties directly related to the sale of Products, to the extent that such items are included in the gross invoice price (but not including taxes assessed
against the income derived from such sale); and (vi) any such invoiced amounts that are not collected by the Company which are over 90 days past due and are recorded on the books of the
Company as bad debt in accordance with generally accepted accounting principles. For purposes of determining Net Sales, the Product shall be deemed to be sold when properly invoiced, and a "sale"
shall not include transfers or dispositions for charitable, promotional, pre-clinical, clinical, regulatory, or governmental purposes. 

        5.2.  If
new product lines are added to the Product list the commission rate related to such new Product shall be set forth on  Exhibit C attached hereto. The parties agree and acknowledge that the Company
shall have sole decision making authority in connection with
establishing commission rates for product lines added to the Product list after the Effective Date. 

        5.3.  The
Sales Agent agrees that all invoices for payment shall include a listing of all lot numbers of the Products that were sold in connection with such invoice. 

        5.4.  The
Company will make payment of commissions earned by Sales Agent in accordance with the Company's applicable policies and procedures. Commissions will be released to
the Sales Agent on the 30th day after the close of the month in which the applicable sales are made, or in the event that such day is not a business day, on the next business day. Any commissions paid
on outstanding accounts receivable at the close of the month that exceed the payment terms of net 90 days will be deducted from the Sales Agent's outstanding commission or invoiced to Sales
Agent pursuant to Section 5.6. Upon collection of past due accounts commissions will be re-posted to the commission. 

        5.5.  The
Company will keep and maintain accurate, complete and current books and records relating to commissions earned by Sales Agent. Upon payment of commission to Sales
Agent by the Company, the Company shall provide Sales Agent with a detailed breakdown of the customer sales used to calculate the commission as well as any credit, discount, allowance or
set-off taken by the Company or applied against Sales Agent commission. Any discrepancies must be reported to the Company within 30 days of the receipt of the detailed statement.
Once per calendar year, on written request from Sales Agent, the Company will permit an independent certified public accountant designated by and at the expense of Sales Agent, to audit the Company's
books and records pertaining to commissions earned by Sales Agent, such audit to be conducted on the Company's premises during normal business hours. 

        5.6.  In
the event that the Company has previously paid Sales Agent commissions on 

4

 

sales
to a customer whose account is subsequently entitled to a credit, for returns or otherwise, and sufficient commission is not available to deduct the credit within the period, the Company will
submit an invoice and a written explanation containing the reasons why the Company is entitled to reimbursement by Sales Agent of any portion or all of the commission previously paid to Sales Agent.
Sales Agent agrees to pay all properly invoiced amounts within 30 days of receipt of said invoice. 

        5.7.  The
Company will have no liability whatsoever to Sales Agent for commission payments for the Company's rejection of all or part of any order. 

6.    SALES OBJECTIVE    

        6.1.  For
each calendar year, during the term of this Agreement, including extensions, the Company will establish sales objectives for Products to be sold by the Sales Agent
within the Territory as measured in dollar volume. Such sales quotas shall be set forth on Exhibit D attached hereto. 

        6.2.  If
new product lines are added to the Product list an additional quota will be established for such new Product and such quota shall be set forth on  Exhibit D. 

7.    SAMPLES, PROMOTIONAL MATERIALS AND INSTRUMENTS    

        7.1.  From
time to time the Company may deliver to Sales Agent such items as samples, models, literature, promotional materials (the "Samples") for use in promoting and
selling the Products. Except for items actually purchased by Sales Agent or delivered by Sales Agent as unrestricted no-charge samples according to the Company's specific instructions, the
Company will retain all right, title and interest in and to the Samples and Sales Agent will hold them in a fiduciary capacity and only use such Samples as permitted in this Agreement. Upon the
termination or expiration of this Agreement or upon the request of the Company, the Sales Agent shall return all Samples to the Company. 

        7.2.  Sales
Agent will prepare and maintain accurate, complete and current books and records pertaining to the Samples that are owned by the Company, including but not
limited to type and quantity of each item and disposition thereof. 

        7.3.  The
Company shall establish for Sales Agent a Products inventory account. Except for the Products actually purchased by Sales Agent, the Company will retain all right,
title and interest in and to such Products and related instrumentation (the "Consigned Inventory"). Sales Agent will hold said Products and related instrumentation in a fiduciary capacity under a
separate account titled "Consigned Inventory". 

        7.4.  The
Company may request a physical inventory of its property held as Consigned Inventory by Sales Agent. The Company, at its expense, may review books and records of
Sales Agent as they relate to Consigned Inventory as well as to physically audit the Consigned 

5

 

Inventory,
and Sales Agent agrees to cooperate with such review. 

        7.5.  The
level of Consigned Inventory for Sales Agent shall be established upon mutual agreement between the Company and Sales Agent. 

        7.6.  The
level of total Consigned Inventory for Sales Agent will be reviewed each quarter. If any Consigned Inventory is returned damaged, then the Company, to the extent
possible, will repair or refurbish the Consigned Inventory and invoice Sales Agent for the cost of said repairs and handling. If the damaged Consigned Inventory cannot be repaired, then the Company
shall invoice Sales Agent for 100% of the list price of such Consigned Inventory. If any Consigned Inventory is lost, missing or stolen, then the Company shall invoice Sales Agent for 100% of the list
price of such Consigned Inventory 

        7.7.  Sales
Agent will prepare and maintain complete and accurate books and records pertaining to all Consigned Inventory, including but not limited to the type and quantity
of each Product as well as the disposition thereof. Sales Agent will supply the Company with a copy of each agreement where Consignment Inventory is stocked by a hospital, on Sales Agent's premises or
other mutually acceptable place during normal business hours following ten days' prior written notice to Sales Agent. 

        7.8.  Upon
the termination or expiration of this Agreement, or upon the request of the Company, the Sales Agent shall immediately, and at its own expense, return all
Consignment Inventory in its possession or control to the Company. 

8.    SALES ACTIVITY BY ALPHATEC    

        8.1.  The
Company reserves the right, at any time and from time to time, throughout the term of this Agreement, to use its employees to engage in selling, promoting and/or
other related activities concerning the Products in the Territory in the event that the Company reasonably determines that the Sales Agent is not actively pursuing sales activities in the Territory
(notwithstanding the fact that Sales Agent may be achieving its sales quotas). Any such sales by the Company's employees will not be credited to Sales Agent's account for purposes of determining the
achievement of sales quotas and calculating commissions. Prior to the commencement of any sales activity related to Products in the Territory by the Company's employees, the Company shall notify the
Sales Agent of its intention to begin such activities. 

        8.2.  The
Company reserves the right to sell the Products within the Territory to any person or entity offering to purchase and resell the Products as private label products
so long as such person or entity is not at such time a company or person to whom Sales Agent is actually selling the Products. In the event that private labeling occurs, if any, within the Territory,
the Company may, but is not obligated to, modify Sales Agent's sales quotas to reflect the competitive impact of private labeling. 

        8.3.  The
Company also reserves the right to sell the Products within the Territory to 

6

 

any
Company-designated national, regional, or government person or entity, and Sales Agent shall service such account within the Territory in return for the applicable commission set forth in  Exhibit C. If Sales Agent declines to service any such account, the Company shall service such account itself and at its own expense, and Sales
Agent shall receive no commission with respect to such account and such sales shall not be credited to the Sales Agent for purposes of determining the achievement of sales quotas. 

        The
parties agree and acknowledge that under certain circumstances, the Company may find it necessary to establish certain customers as house accounts. Justification for designation of a
customer as a house account includes, without limitation, any customer having sales, service, marketing or technical service requirements beyond the facilities and abilities of Sales Agent, or any
customer that indicated to the Company an unwillingness to use the services of the Sales Agent. The Company reserves the right to deal directly with such house accounts for sale of the Products, which
may include delivery of the Products within the Territory, and in such instances no commission shall be paid on sales to house accounts and such sales shall not be credited to the Sales Agent for
purposes of determining the achievement of sales quotas. The Company shall pay Sales Agent such commissions as are agreed upon between the Company and the Sales Agent for the services, if any,
rendered by Sales Agent at the request of the Company in connection with sales of the Products to such house accounts that are delivered within the Territory. 

        8.4.  The
Company reserves the right to negotiate and establish clinical investigators and/or clinical centers to conduct clinical evaluations of the Products within the
Territory. The Company may find it necessary to implement certain remuneration programs to the clinical investigators/clinical centers as compensation for sales of the Products, which may include
delivery of the Products within the Territory. The Company shall pay such commissions to Sales Agent as are agreed upon between the Company and the Sales Agent for services, if any, rendered by Sales
Agent at the request of the Company in connection with sales of Products obtained from these clinical investigators/clinical centers located within the Territory. If no services are rendered by Sales
Agent, then no commission shall be payable to Sales Agent and such sales shall not be credited to the Sales Agent for purposes of determining the achievement of sales quotas. 

        8.5.  The
Company reserves the right to work with any surgeon or medical center in the design and development of new products. The Company may find it necessary to provide
special remuneration programs to the surgeon inventors/medical centers as compensation for their assistance and expertise in new product development. The Company reserves the right to deal directly
with such surgeon inventors/medical centers for the sale of Products. The Company shall pay to Sales Agent such commissions as are agreed upon between the Company and the Sales Agent for services, if
any, rendered by Sales Agent at the request of the Company in connection with sales of the Products to such surgeons/inventors/medical centers located within the Territory. If no services are rendered
by Sales Agent, then no commission shall be payable to Sales Agent and such sales shall not be credited to the Sales Agent for purposes of determining the achievement of sales quotas. 

7

 

9.    RELATIONSHIP OF PARTIES    

        Sales
Agent is an independent contractor having only such authority to act for the Company as is expressly set forth in this Agreement. Sales Agent is not authorized to enter into any
commitment or contract of any kind on behalf of the Company. The Company will not incur any liability whatsoever to
any third party by reason of Sales Agent having exceeded its authority under the appointment granted by the Company herein or by reason of any misrepresentation by Sales Agent of its relationship to
the Company or of the Company's products, warranties, policies, practices or procedures. Nothing contained in this Agreement is intended to be construed as creating or implying a relationship of
principal and agent or employer and employee between the Company and Sales Agent or between the Company and Sales Agent's employees or agents, or a joint venture or partnership between the Company and
Sales Agent. 

10.    COMPLIANCE WITH LAWS AND REGULATIONS    

        Nothing
in this Agreement shall require either party to take any action which would violate any governmental regulation or law to which either of them is subject. Sales Agent shall, at
its sole cost and expense, obtain in the Territory such governmental approvals, licenses or permits as may be necessary to effectuate the purposes of this Agreement, and shall comply with all federal,
state and local laws, regulations and rulings of governmental bodies having jurisdiction over Sales Agent's business, in respect of the sale of the Products, including, without limitation, the Act. 

11.    REPORTS    

        Sales
Agent may be requested from time to time to submit to the Company written reports of Sales Agent's activities performed under this Agreement. Such reports will include a listing,
by name and location, of customers contacted by Sales Agent, major opportunities being pursued, inquiries and/or problems reported by customers, physicians and/or users of the Products, Sales Agent's
recommendations respecting actions to be taken by the Company to secure sales, and any other pertinent matters requested by the Company to be included in such reports, for the relevant period to which
the report applies. 

12.    INDEMNIFICATION    

        12.1. Sales
Agent shall indemnify, defend and hold harmless the Company, and its officers, directors, employees and agents (the "Company Indemnitees") from all claims,
damages, losses, costs and expenses (including reasonable attorneys' fees) (the "Liabilities") which any Company Indemnitee may incur to the extent that such Liabilities arise out of or result from:
(i) the sale or other distribution of Products by Sales Agent or use by any purchasers, including any improper sales by Sales Agent to customers located outside of the Territory,
(ii) any representation or warranty given by Sales Agent with respect to the Products (other than the labeling of the Products as approved by the United States Food and Drug Administration (the 

8

 

"FDA"),
(iii) the manufacture, use or sale of any product which is not supplied by Company and which is sold or combined with a Product, (iv) Sales Agent's breach of the terms of this
Agreement or (v) the negligence, recklessness, gross negligence, or willful misconduct of Sales Agent or any Sales Agent Indemnitee (as defined below). 

        12.2. Company
shall indemnify and hold harmless Sales Agent and its officers, directors, employees and agents (the "Sales Agent Indemnitees") from all Liabilities which any
Sales Agent Indemnitee may incur by reason of any Products sold or furnished by Company which result in injury, illness or death to the extent that such Liabilities arise out of or result from the
failure of the Products to meet the Product warranty set forth in Section 17 or the recklessness, gross negligence, or willful misconduct of any Company Indemnitee. 

        12.3. The
party seeking indemnification hereunder (the "Indemnified Party") shall: (i) give the other party (the "Indemnifying Party") notice of the relevant claim,
(ii) cooperate with the Indemnifying Party, at the Indemnifying Party's expense, in the defense of such claim and (iii) give the Indemnifying Party the right to control the defense and
settlement of any such claim, except that the Indemnifying Party shall not enter into any settlement that affects the Indemnified Party's rights or interest without the Indemnified Party's prior
written approval. The Indemnified Party shall have no authority to settle any claim on behalf of the Indemnifying Party. 

13.    CONFLICTS OF INTEREST    

        During
the term of this Agreement Sales Agent covenants that neither it nor any Sales Agent Indemnitee will engage directly or indirectly in any activity which materially conflicts with
Sales Agent's faithful performance of the services covenants, commitments and obligations undertaken to be performed pursuant to this Agreement. [***] 

14.    CONFIDENTIAL INFORMATION    

        14.1. Sales
Agent acknowledges that it will have access to certain Confidential Information (as defined below) relating to the Company or its business, including, but not
limited to the internal organization of the Company; the names and responsibilities of its management, supervisory and technical employees, operating plans, Inventions (as defined below), research and
development activities, plans for acquisitions and mergers, manufacturing and/or sales activities, technical information concerning Products and related instrumentation, trade secrets, specifications,
procedures, techniques, ideas, methods, Patents (as defined below) and the names of customers and suppliers (the "Confidential Information"). 

        14.2. Sales
Agent covenants that it will hold all Confidential Information confidential and shall only use such Confidential Information to satisfy its obligations under
this Agreement. During the term of this Agreement Sales Agent will be permitted, however, to disclose such part of the Confidential Information to those of its employees and/or agents as is necessary
to be known by them to assist or enable Sales Agent to perform its services and obligations under this Agreement, provided that such employee or agent has entered into a written agreement of 

9

 

confidentiality,
the terms of which are no less rigorous than the terms set forth in this Section 14. 

        14.3. The
restrictions on use and disclosure of Confidential Information set forth in this Section 14 shall not apply: (i) to the extent that the Confidential
is in the public domain without fault on the part of Sales Agent or any third party not bound by an obligation of confidentiality; or (ii) disclosures that are mandated by court of competent
jurisdiction, provided that Sales Agent notifies the Company prior to such disclosure and takes reasonable actions to limit the disclosure of such Confidential Information. 

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant to the Company's application requesting confidential
treatment under Rule 406 of the Securities Act. Asterisks denote omissions.

        14.4. Upon
the Company's written demand or upon expiration or termination of this Agreement, Sales Agent, at its own cost and expense, will promptly return all Confidential
Information to the Company to the extent held or controlled by Sales Agent in written, graphic or other tangible form, and all copies, summaries, notes and other write-ups thereof made by
Sales Agent, or its employees and agents. 

        14.5. The
obligations set forth in this Section 14 shall survive the termination or expiration of this Agreement. 

15.    TERM AND TERMINATION    

        15.1. This
Agreement will become effective on the Effective Date and will continue until the second anniversary of the Effective Date. Upon the written agreement of the
parties, this agreement may be extended for additional two-year terms. 

        15.2. This
Agreement may be terminated by the Company as follows: (i) at any time upon 60 days' written notice from the Company to the Sales Agent;
(ii) at any time during the term of this Agreement if Sales Agent fails to meet its sales quotas; (iii) at any time if Sales Agent engages in behavior that, in the Company's reasonable
determination, is materially detrimental to the Company or its business reputation; (iv) at any time if Sales Agent becomes insolvent or bankrupt, or files a voluntary petition in bankruptcy,
or has filed for an involuntary petition in bankruptcy; or (v) at any time following the end of a 15-day cure period if Sales Agent fails to cure any breach of a covenant,
commitment or obligation under this Agreement within 15 days after receipt of written notice from the Company of such breach. 

        15.3. This
Agreement may be terminated by Sales Agent as follows: (i) at any time if the Company becomes insolvent or bankrupt, or files a voluntary petition in
bankruptcy, or has filed for an involuntary petition in bankruptcy; or (ii) at any time following the end of a 15-day cure period if Sales Agent fails to cure any breach of a
covenant, commitment or obligation under this Agreement within 15 days after receipt of written notice from the Company of such breach. 

        15.4. Following
the termination or expiration of this Agreement: (i) Sales Agent shall discontinue all promotion and distribution of the Products in the Territory;
(ii) Sales Agent will not be entitled to any commissions on sales of the Products that are invoiced in the Territory after 

10

 

the
effective date of expiration or termination of this Agreement; (iii) the Company and Sales Agent will undertake to reconcile all matters pertaining to commission and other amounts, if any,
owed by either party to the other up to the effective date of expiration or termination, as promptly as practicable thereafter, and will settle accounts between them in good faith not later than
60 days after the effective date of expiration or termination of this Agreement. 

16.    INTELLECTUAL PROPERTY    

        16.1. Except
as granted in this Agreement, Sales Agent has no rights in or to the Company's trademarks, or any other trademarks, trade names or copyrights owned or used by
Company (the "Trademarks") and Sales Agent agrees that it shall not in any way infringe upon, harm, contest or otherwise impair the rights of Company to the Trademarks. All material containing
Trademarks, including all Samples, shall be used solely in connection with promoting the sale of Products, and distinguishing and identifying them. Sales Agent may not use any Trademarks in its
corporate title or the corporate title of any entity it controls. If it becomes necessary, because of conflicts with trademarks or trade names used by third parties, to develop
non-conflicting marks and names for certain parts of the Territory, Sales Agent shall so inform Company, and such new marks and names shall be developed by Company, and shall belong to
Company, subject to Sales Agent's license to use them pursuant to the terms of this Section 16. The Company, on behalf of itself and its subsidiaries, hereby grants to Sales Agent a
non-exclusive, non-transferable limited license to use the Trademarks solely in connection with its promotion, marketing and sales of the Products in the Territory pursuant to
the terms of this Agreement. Sales Agent shall have no further rights or interest in any such Trademarks. 

        16.2. Sales
Agent acknowledges and agrees that any patent on the Products acquired by the Company or any of its subsidiaries and any patent applications on the Products
filed by the Company or any of its subsidiaries (the "Patents") are the sole and exclusive property of the Company and that throughout the term of this Agreement and following its termination or
expiration, Sales Agent will not do anything inconsistent with such ownership, will not directly or indirectly challenge the title of the Company or any of its subsidiaries to the same and will not
attack the validity of such Patents. 

        16.3. Sales
Agent agrees to promptly notify the Company of any unauthorized use of the Trademarks or infringement of the Patents by others as it comes to Sales Agent's
attention. 

        16.4. Sales
Agent shall submit to the Company all inventions, discoveries and ideas concerning any modifications and improvements relating to the Products and related
instrumentation (the "Inventions"). Further, all such Inventions are, and shall remain, the sole property of the Company. Sales Agent hereby assigns to the Company all of its rights, title and
interest to Inventions, and shall take such actions as is necessary to vest such rights and interests in the Company and shall require its employees and agents to take similar actions to vest
ownership of such Inventions in the Company. 

11

 

17.    LIMITED WARRANTY.    

        The
Company warrants that, under normal use and service and when used in accordance with specifications supplied by Company, the Products will be of merchantable quality. If any Products
do not comply with such warranty, Company will, at its option and expense, correct, repair, or replace any
defective Products provided, that, in all such cases that sufficient evidence is produced by Sales Agent to establish that the Products are defective. THE COMPANY MAKES NO OTHER WARRANTIES, EXPRESSED
OR IMPLIED, WITH RESPECT TO THE PRODUCTS AND ALL WARRANTIES OF MERCHANTABILITY AND FITNESS FOR ANY PARTICULAR PURPOSE ARE EXPRESSLY AND SPECIFICALLY EXCLUDED AND DISCLAIMED. 

18.    LIMITATION OF LIABILITY.    

        THE
COMPANY'S LIABILITY UNDER THE WARRANTY SET FORTH IN SECTION 17 OR OTHERWISE WITH RESPECT TO THE PRODUCTS OR THEIR USE (INCLUDING LIABILITY FOR CONTRACT, NEGLIGENCE OR OTHERWISE IN
TORT) IS LIMITED EXCLUSIVELY TO THE REMEDY PROVIDED IN SECTION 12, AND NO OTHER RIGHT OR REMEDY WILL BE AVAILABLE TO ANY PERSON. IN NO EVENT WILL THE COMPANY BE LIABLE TO THE SALES AGENT OR ANY OTHER
PERSON OR ENTITY FOR ANY SPECIAL, INDIRECT, EXEMPLARY, PUNITIVE, INCIDENTAL OR CONSEQUENTIAL DAMAGES TO PERSON OR PROPERTY OR LOSS OF PROFITS OF ANY PERSON RESULTING FROM ANY CAUSE WHATSOEVER, EVEN IF
COMPANY HAS BEEN ADVISED, KNEW OR SHOULD HAVE KNOWN OF THE POSSIBILITY OF SUCH DAMAGES OR LOSS OF PROFITS. SOME STATES AND JURISDICTIONS OUTSIDE OF THE UNITED STATES DO NOT ALLOW A LIMITATION OR
EXCLUSION OF IMPLIED WARRANTIES, OR LIABILITY FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES, SO THE ABOVE LIMITATION OR EXCLUSION MAY NOT APPLY. SALES AGENT ACKNOWLEDGES THAT THE ALLOCATION OF RISKS AND
BENEFITS UNDER THIS AGREEMENT IS BASED ON, AND THE AMOUNTS PAID UNDER THIS AGREEMENT WOULD BE GREATER IN THE ABSENCE OF, THE LIMITATIONS DESCRIBED ABOVE. 

19.    MISCELLANEOUS PROVISIONS    

        19.1. This
Agreement contains the entire agreement and understanding between the parties respecting the subject matter hereof, and supersedes all prior and collateral
agreements and understandings, regardless of form or nature between the parties respecting that subject matter. 

        19.2. No
extension, modification or supplement to this Agreement will be effective unless made in writing and signed by a duly authorized officer of each party. 

        19.3. This
Agreement will be binding upon Sales Agent, the Company and their respective successors and permitted assigns. 

12

 

        19.4. Any
notice required, permitted or contemplated by this Agreement must be in writing, sent by facsimile, or nationally recognized overnight carrier, addressed to the
other party as set forth below, or to such other address as may from time to time be substituted therefore by notice, or delivered in person to such other party. Except as otherwise provided in this
Agreement, notices sent by facsimile will be effective on the date that written confirmation of the transmission of the facsimile is received by the sender and notices sent by overnight carrier shall
be effective on the business day following written confirmation of delivery of the notice to such carrier. For purposes of notices, the addresses of the parties will be: 

	If to the Company:	 	Alphatec Spine, Inc.

2051 Palomar Airport Road

Carlsbad, CA 92008

Attention: Bill Pastor, Vice President Sales and Physician Services

Phone: (760) 431-9286

Facsimile: (760) 431-1624
	

If to Sales Agent:	
 	

Keystone Surgical, LLC

110 Aspen Lane

San Antonio, TX 78232

Facsimile:

        19.5. Except
as provided for within this Agreement, no delay or failure by either party to enforce or take advantage of any provision of this Agreement for
non-performance or breach of any obligation hereunder by the other party, or to exercise any right hereunder, will constitute a waiver of the right of such party subsequently to enforce or
take advantage of such provision or any other provisions hereof (unless performance has been resumed or the breach has been cured by the other party) or to exercise such right or any other right
hereunder, unless such waiver is in writing signed by a duly authorized officer of the party against whom the waiver is claimed to apply, or unless the respective period for enforcement, taking
advantage or exercise, as the case may be, has expired by the express terms of this Agreement. 

        19.6. This
Agreement may not be assigned by Sales Agent except with the written consent of the Company and any assignment that occurs without proper consent shall be deemed
to be null and void. For the purposes of this Section 19.6, a merger of the Sales Agent with or into another entity, the sale of more than fifty percent (50%) of the Sales Agent's equity
securities in one or a series of transactions, or the sale of substantially all of the Sales Agent's assets shall be deemed to be an assignment. The Company may assign this Agreement by giving written
notification to the Sales Agent. 

        19.7. The
parties agree that the breach of this Agreement may cause irreparable harm to a party. Therefore, in addition to the other remedies specified herein, either party
may enforce its rights hereunder by all available equitable remedies, including, without limitation, the right to 

13

 

obtain
an injunction or specific performance. 

        19.8. The
Company shall not be responsible for any failure or delay in performance of its obligations under this Agreement because of circumstances beyond its reasonable
control, including, without limitation, acts of God, fires, floods, wars, civil disturbances, sabotage, accidents, labor disputes (whether or not the employees' demands are reasonable and within the
Company's power to satisfy), governmental actions or inability to obtain labor, material, equipment or transportation, nor shall any such failure or delay give the Sales Agent any right to terminate
this Agreement. If any delivery or shipment of Products is delayed because of any such circumstance, it shall be made as soon as possible. 

        19.9. This
Agreement may be executed in multiple counterparts, each of which will constitute an original, but all of which together will constitute one and the same
Agreement. 

        19.10. Notwithstanding
the expiration or termination of this Agreement for any reason, rights and obligations which by the nature should survive will remain in full force
and effect. In particular the following sections shall survive the expiration or termination of this Agreement: Section 2.3, Section 2.4, Section 2.6, Section 2.7,
Section 7.8, Section 12, Section 14, Section 15.4, Section 16, Section 17, Section 18, Section 19.4, Section 19.7, Section 19.10,
Section 19.11 and Section 19.12. 

        19.11. In
the event of the consummation of a Change of Control of the Company during the term of this Agreement: (i) the Company shall assign this agreement to the
acquiring party; (ii) the Company shall require that the acquiring party assume the rights and obligations of this Agreement for a term of the longer of: (a) the time period from the
date of the closing of the Change of Control until the second anniversary of the Effective Date, and (b) the time period from the date of the closing of the Change of Control until the first
anniversary of the date of the closing of such Change of Control; and (iii) Section 15.1 and subsection Section 15.2(i)-(iii) (inclusive) shall be of no force and effect.
If such Change of Control occurs at least 12 months following the Effective Date, than the acquiring party may, within 30 days of the Change of Control, terminate this Agreement upon
paying to the Sales Agent, within such 30 day period, the sum of the commissions paid to the Sales Agent for the 12-month period, represented by the four most recently completed
quarters, prior to the date of the consummation of the Change of Control. For the purposes of this Agreement, a "Change of Control" of the Company shall mean a sale of the Company, whether by merger,
consolidation or other transaction or series of related transactions, in which, in each case, the holders of the Company's voting securities outstanding immediately prior to the consummation of the
transaction or the series of related transactions own securities with less than a majority of the voting power of the Company or a successor immediately after the transaction or such series of related
transactions, or by sale of all or substantially all of the Company's assets. 

        19.12. The
validity, construction and enforcement of this Agreement and all matters related thereto or in connection therewith all be governed by the laws of the state of
California and the venue of any action brought shall be in San Diego County, California. 

14

 

        19.13. If
any provision of this Agreement is rendered or declared unlawful by reason of any existing or subsequently enacted law or by decree or order of a court of last
resort, the remaining provisions of this Agreement will continue in full force and effect. 

[SIGNATURE
PAGE FOLLOWS] 

15

 

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

	ALPHATEC SPINE, INC.
	

By:	
 	

/s/ RONALD G. HISCOCK

	Name: Ronald G. Hiscock

Title: President and Chief Operating Officer
	
KEYSTONE SURGICAL, LLC
	

By:	
 	

/s/ PATRICK KOUCERICK

	Name (please print):

Title:

16

   EXHIBIT A  

PRODUCTS  

The
Company's [***] as of the Effective Date 

The
Company's [***] as of the Effective Date 

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant to the Company's application requesting confidential
treatment under Rule 406 of the Securities Act. Asterisks denote omissions.

17

 
EXHIBIT B  

LIST OF SALES AGENT'S TERRITORY  

[***]

[***]

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant to the Company's application requesting confidential
treatment under Rule 406 of the Securities Act. Asterisks denote omissions.

18

 
EXHIBIT C  

COMMISSION RATE  

In
connection with the Company's [***] as of the Effective Time that are a [***], the commission rate on Net Sales for Products sold in the Territory
shall be [***]. 

In
connection with the Company's [***] as of the Effective Time that are either (i) [***]; (ii) [***];
(iii) [***]; (iv) [***]; or (v) [***], the commission rate on Net Sales for Products sold in the Territory
shall be [***]. 

In
connection with the Company's [***] as of the Effective Time that are either (i) [***]; or (ii) [***], the
commission rate on Net Sales for Products sold in the Territory shall be [***]. 

In
connection with the Company's [***] as of the Effective Time that are [***], the commission rate on Net Sales for Products sold in the Territory
shall be [***]. 

In
the event of [***]. 

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant to the Company's application requesting confidential
treatment under Rule 406 of the Securities Act. Asterisks denote omissions.

19

 
EXHIBIT D  

SALES QUOTAS  

2005

[***]

2006  

[***] 

2007  

[***] 

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant to the Company's application requesting confidential
treatment under Rule 406 of the Securities Act. Asterisks denote omissions.

20

QuickLinks

ALPHATEC SPINE, INC. SALES AGENCY AGREEMENTPortions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant to the Company's application requesting confidential
treatment under Rule 406 of the Securities Act.

Exhibit 10.36  

PRIVATE LABEL DISTRIBUTION AGREEMENT  

        This DISTRIBUTION AGREEMENT is entered into as of March 15, 2006 (the "Effective Date") by and between Alphatec Spine, Inc., a California corporation
("ASI"), and OsteoBiologics, Inc., a Delaware corporation ("OBI"). 

Background  

        WHEREAS, OBI has developed and manufactures certain Products (as defined herein) used to fill bony voids or gaps caused by trauma or surgery; and 

        WHEREAS,
ASI desires to market the Products as private labeled products in the Field within the Territory (as defined herein) as an exclusive distributor for a period of time; 

        NOW,
THEREFORE, in consideration of the promises and the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged by each of the parties hereto, OBI and ASI agree as follows:. 

1.    DEFINITIONS    

        1.1    Defined Terms    

        Capitalized
terms used in this Agreement and not otherwise defined herein shall have the respective meanings set forth below. 

        "Act" means the United States Food, Drug and Cosmetic Act and similar laws and regulations in foreign jurisdictions, all as may be amended
from time to time. 

        "Affiliate" means, with respect to any person, any person that, directly or indirectly, through one or more intermediaries, controls, is
controlled by, or is under common control with, such person. For purposes of this Agreement, "control" means, with respect to any person, the direct or indirect ownership of more than 50% of the
voting or income interest in such person or the possession otherwise, directly or indirectly, of the power to direct the management or policies of such person. 

        "Agents" shall mean sublicensees, sub-distributors, agents, representatives or co-promoters of ASI or OBI, as
applicable. 

        "Agreement" means this Distribution Agreement, including all Exhibits, Annexes and Schedules hereto (which are hereby incorporated by
reference herein), as the same may be amended or supplemented from time to time in accordance herewith. 

        "Change of Control" means a sale of OBI or ASI, whether by merger, consolidation or other transaction or series of related transactions,
in which, in each case, the holders of OBI's or ASI's voting securities outstanding immediately prior to the consummation of the transaction or the series of related transactions own securities with
less than a majority of the voting power of OBI or 

1

 

ASI
or a successor immediately after the transaction or such series of related transactions, or by sale of all or substantially all of OBI's or ASI's assets. 

        "Competitive Product" shall mean a product utilizing bioresorbable polymers in combination with ceramic materials for bone grafting and/or
osteochondral repair applications. 

        "Confidential Information" means all data, specifications, training materials and other know how related to the design, use,
implementation, performance or manufacture of the Products, as well as all other information and data provided by either Party to the other Party hereunder in written or other tangible medium and
marked as confidential, or if disclosed orally or displayed, identified as confidential prior to or at the time of disclosure and confirmed in writing as confidential within thirty (30) days
after disclosure or any other information which a reasonable person would deem to be confidential based on the nature of the information or the circumstances of the disclosure, in each case except any
portion thereof which: (a) is known to the receiving Party before receipt thereof under this Agreement as evidenced by the receiving Party's written records; (b) is properly and lawfully
disclosed to the receiving Party by a third person who has the legal right to make such disclosure; (c) is or becomes generally known in the trade through no fault of the receiving Party; or
(d) is independently developed by the receiving Party without use of such information, as evidenced by the receiving Party's written records. 

        "FDA" means the United States Food and Drug Administration, or any successor entity. 

        "Field" shall mean, with respect to the Products, medical uses of the Products for reconstructive surgical procedures of the spine. 

        "Gross Sales" shall mean, for a given period, the gross amount received on sales invoiced, net of refunds, by ASI or any Affiliate or
Agent on behalf of ASI, or by OBI in the case of Section 2.3, for the sale of the Products anywhere in the Territory during such period, excluding freight, insurance charges and sales taxes and
other transfer taxes. 

        "Minimum Quarterly Order Requirements" are set forth in Exhibit B with respect to the periods indicated, as such amounts may be
adjusted and agreed upon by both Parties from time to time. 

        "OBI Patent Rights" means all patents, patent applications and rights to file patent applications associated with or relating to any
Products, their manufacture, sale, use or composition and are licensed to, owned or controlled by OBI now or in the future. 

        "Parties" shall mean both ASI and OBI, and "Party" shall mean either of them as the context indicates. 

        "Products" means the OBI PolyGraftTM Synthetic Bone Graft Substitute (BGS) products listed in Exhibit A and associated
OBI disposable instrumentation listed in Exhibit A. Products may be changed, discontinued or added from time to time by mutual agreement of the Parties. 

2

 

        "Product Approvals" means, for any country or other jurisdiction in the Territory, those authorizations by the appropriate Regulatory
Authority(ies) required for importation, promotion, pricing, marketing and sale of the Products in such country or other jurisdiction. 

        "Product Improvements" means any modifications to Products or subsequent version of Products that may replace such Products and be
intended for use in the same or related spine surgery applications. Prior to the commercial release of Product Improvements under this Agreement, Exhibit A shall be amended to include the
Product Improvements as Products. 

        "Proprietary Rights" means all proprietary rights and interests of every nature, whether now existing or hereafter arising, including OBI
Patent Rights, in, to, related to or covering or incorporated into any Product, including those relating to their manufacture, sale, use or design, to the extent that such rights and interests are of
such legal status and nature to be capable of being lawfully licensed or sold and shall include without limitation inventions, ideas, improvements (including Product Improvements), manufacturing know
how, technology, copyrights, trade secrets, trademarks or service marks (including Trademarks) and Confidential Information. 

        "Regulatory Authority" means any national, supra-national, regional, state or local regulatory agency, department, bureau, commission,
council or other governmental entity, regulating the manufacture, sale or use of medical devices, including the FDA. 

        "Reimbursement Approvals" means governmental and other approvals in any country or jurisdiction, for a buyer to claim reimbursement at any
level for the purchase of the Products, from private or public health insurance organizations in such country or jurisdiction. 

        "Territory" means the United States of America and its territories and possessions. 

        "Trademarks" means those trademarks and service marks that OBI uses, owns or controls with respect to the Products, and any additional
trademarks or service marks (other than ASI's trademarks) that the Parties agree in the future may be used in connection with the sale of Products. 

        1.2    Other Defined Terms    

        Each
of the following terms shall have the respective meaning ascribed to such term in the section of this Agreement set forth opposite such term below: 

	"ASI"	 	Introductory paragraph
	"Cure Payment"	 	Section 3.5
	"Effective Date"	 	Introductory paragraph
	"Indemnifying Party"	 	Section 9.1
	"Indemnitees"	 	Section 9.1
	"Losses"	 	Section 9.1
	"OBI"	 	Introductory paragraph
	"Offer Notice"	 	Section 2.6
	"Post-Change of Control Period	 	Section 10.5
	"Product Information"	 	Section 6.1
	"Product Transfer Price"	 	Section 3.6
	"Samples"	 	Section 3.7

3

 

2.    DISTRIBUTION    

        2.1    Appointment.    Subject to the terms and conditions set forth in this Agreement, OBI hereby appoints ASI and
its Affiliates as OBI's exclusive distributor (with the full right to appoint sub-distributors and Agents to sell the Products under ASI's private label) of the Products under ASI's
private label for use in the Field within the Territory during the term of this Agreement, and ASI hereby accepts such appointment. Subject to the terms and conditions set forth in this Agreement, as
OBI's distributor of Products under ASI's private label in the Territory, ASI shall have the exclusive right to promote, market, distribute and sell Products as ASI's private label products, with such
labeling specifically including "Manufactured by OsteoBiologics, Inc." or "Manufactured by OBI", for use in the Field within the Territory. 

        2.2    Certain Restricted Parties; Distribution Relationship.    During any period in which ASI is appointed as the
exclusive distributor of Products under ASI's private label for use in the Field within the Territory, OBI agrees not to sell Products under ASI's private label to any third party. However, nothing in
this Agreement shall limit, prohibit or otherwise restrict OBI, its Affiliates, Agents or distributors from promoting, marketing, distributing or selling any of OBI's products, including, without
limitation, any of OBI's products that are the same or substantially similar to the Products, provided such products are not (i) packaged under ASI's private label; or (ii) or sold in
the in the Territory for use in the Field, except as permitted in this Agreement. 

        2.3    Intentionally Omitted.    

        2.4    ASI Marketing Efforts.    

        (a)   ASI
shall use its commercially reasonable best efforts to market and sell the Products for use in the Field within the Territory during such time as ASI's exclusive
appointment within the Territory in the Field remains in effect. 

        (b)   The
Parties agree that in the event of a material breach by ASI of its covenants set forth in Sections 2.4(a) and/or 2.4(c), OBI may terminate ASI's exclusive
appointment hereunder with respect to distribution of Products; provided that OBI shall have delivered to ASI written notice of such material failure, which notice shall set forth in reasonable detail
the nature of the alleged material failure and such material breach has not been cured or waived within sixty (60) calendar days, or if such breach is of a nature that it can not be cured
within such sixty day period ASI shall not be taking commercially reasonable measures to remedy or cure, following delivery of such notice. 

        (c)   ASI
and its Affiliates or Agents shall not during the term of this Agreement, directly or indirectly, market, promote, sell or enter into any agreements (whether written
or oral) with respect to any Competitive Products for use in the Field within the Territory without the written consent of OBI. 

        2.5    Audits.    Periodically during each calendar year, but only once during each twelve (12) month period
and within one hundred and eighty (180) days following any termination or expiration of this Agreement, OBI shall have the right, upon prior written notice of at least ten (10) business
days delivered to ASI, to review and audit all documentation that is retained by ASI in the ordinary 

4

 

course
of business and relates to ASI's performance under this Agreement. Such audit shall be at the expense of OBI, unless such audit reveals a difference in favor of OBI of at least five percent
(5%) between (i) the actual Transfer Prices paid by ASI to OBI in accordance with Section 3.6 and (ii) the Transfer Prices calculated using the unit prices based on actual Gross
Sales for Products, in which case ASI shall bear all reasonable costs of the audit. ASI shall pay OBI the amount of any difference discovered in the audit in favor of OBI within fifteen
(15) business days of OBI's request. In the event an overpayment by ASI is reflected by the audit, then the amount of such overpayment shall be repaid to ASI by OBI within fifteen
(15) business days of discovery of the same. ASI shall maintain all books of account or records that it maintains in the ordinary course of business in its usual and customary practice or as
otherwise required by applicable law and in actual practices with respect to Gross Sales of Products for a period of at least one (1) year following the calendar year to which such calculation
relates. 

        2.6    Strategic Alliance.    

        (a)   The
Parties will use their [***] to negotiate terms under which they will collaborate on the [***] of new products for
use in the [***]. OBI would have [***], and ASI would have [***] for use in the Field within the Territory. The specific terms
under which the Parties will [***] and [***] will be defined in a separate agreement. 

        (b)   If,
at any time during the term of this Agreement [***], OBI shall send a written notice to ASI (the "Offer Notice") not less than
forty-five (45) days prior to consummating any such activity. The Offer Notice shall describe in reasonable detail the [***] and all other material
information. 

        (c)   ASI
shall have thirty (30) days after receipt of the Offer Notice in which to [***], the Parties agree to negotiate the terms of such
agreement in accordance with Section 2.6(a). 

        (d)   If
ASI does not make a timely election within thirty (30) days to negotiate a collaboration agreement, or if the Parties are unable to reach mutual agreement
regarding a collaboration agreement following negotiations conducted pursuant to Section 2.6(a), [***]. 

3.    TERMS OF ORDER AND SALE OF PRODUCTS    

        3.1    Supply Forecasts.    Commencing on the Effective Date, and continuing during the remainder of the term of this
Agreement, ASI shall provide to OBI, on a quarterly basis, a twelve (12) month nonbinding rolling forecast of expected orders of Products. Such forecasts shall be consistent with ASI's Minimum
Quarterly Order Requirements and with purchase orders provided by ASI to OBI in accordance with this Agreement. 

        3.2    Product Orders.    All orders of Products shall be on ASI's standard purchase order which ASI may employ from
time to time (as may be modified by ASI from time to time), a current copy of which is attached hereto as Exhibit C, and OBI shall deliver the Products in accordance therewith, provided, that
provisions of this Agreement shall prevail over any inconsistent statements, additional statements or provisions or rights and obligations contained in any document related to this Agreement passing
between the Parties hereto including any purchase order, acknowledgment, confirmation or notice. ASI will be required to submit purchase orders for Products to OBI in writing which shall set forth the
quantity, requested delivery dates and shipping instructions. ASI 

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant to the Company's application requesting confidential
treatment under Rule 406 of the Securities Act.

5

 

shall
submit purchase orders at least [***] prior to the delivery dates requested in the order. All deliveries of Product shall be F.O.B. at OBI's offices in San Antonio,
Texas. ASI shall be responsible for all shipping costs. Payment for ASI purchase orders subsequent to the
initial stocking purchase order will be due within thirty (30) days of the date Products are shipped to ASI from OBI. 

        3.3    Product Specifications.    All Products delivered by OBI hereunder shall be ready for end-user
sale, including all packaging, labeling, instructions-for-use and sterilization as approved by ASI. OBI shall consult with ASI regarding the packaging and
instructions-for-use of the Products and all Products will be sold under the ASI name and using ASI's service marks and/or trademarks, but will bear a marking reasonably
acceptable to OBI indicating that the Products were manufactured by OBI. All Products shall be labeled (including bar coding/UPN numbers) in accordance with the procedures specified from time to time,
and with all Product Approvals, and OBI shall have the right to approve the final form of any proposed labeling for Products, such approval not to be unreasonably withheld, conditioned or delayed. 

        3.4    Obligation to Supply.    OBI shall deliver Products to ASI in accordance with the terms of this Agreement. If
ASI submits a purchase order with respect to which no corresponding delivery schedule has been provided, OBI shall make every reasonable effort to deliver Products under such purchase order within
[***] after receipt of ASI's purchase orders for Products. OBI shall have no obligation to deliver Products to ASI prior to [***] after receipt of the
applicable purchase order from ASI. 

        3.5    Minimum Orders.    As consideration for its appointment as exclusive sales distributor of Products for use in
the Field within the Territory, ASI agrees to meet the Minimum Quarterly Order Requirements set forth on Exhibit B attached hereto. During the term of this Agreement, as long as ASI meets the
Minimum Quarterly Order Requirements, OBI shall not provide the Products to any other person or entity to sell, distribute or otherwise use for applications in the Field within the Territory. ASI's
Minimum Quarterly Order Requirements will be measured on a quarterly basis for Product ordered by ASI from OBI (as opposed to sold by ASI). ASI must satisfy the Minimum Quarterly Order Requirements
each quarter, and there shall be no carry over of orders from one quarter to the next quarter for purposes of determining whether the Minimum Quarterly Order Requirements for a quarter have been met.
ASI will not be allowed to return unsold Products, except as otherwise specifically provided in this Agreement. If ASI fails to meet the Minimum Quarterly Order Requirements for any individual
Product, and the shortage is less than [***] of the requirement, then ASI will have the right to cure the shortage with a cash payment to OBI equal to
[***] of the Product Transfer Price effective at the time of the shortage for the applicable volume of ordered Product ("Cure Payment"). The Cure Payment shall be paid to OBI
within five (5) days of the end of the quarter in which such shortage is calculated. The Cure Payment will not be considered a prepayment of Product orders by ASI. If ASI elects not to make the
applicable Cure Payment, then OBI will have the right to convert ASI's rights to be non-exclusive for such Product for the duration of this Agreement (and allow ASI to maintain its limited
exclusivity on all other Products). If ASI fails to meet the Minimum Quarterly Order Requirements for any individual Product, and the shortage is more 

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant to the Company's application requesting confidential
treatment under Rule 406 of the Securities Act.

6

 

than
[***] of the requirement, then OBI will have the right to either (a) require ASI to pay OBI the applicable Cure Payment; or (b) convert ASI's rights to be
non-exclusive for such Product for the duration of this Agreement (and allow ASI to maintain its limited exclusivity on all other Products). If, following a Change of Control of ASI, the
acquirer of ASI fails to meet the aggregate Minimum Quarterly Order Requirements and that shortage is more than [***] of the aggregate Minimum Quarterly Order Requirements for
the applicable quarter, then OBI shall have the right to terminate this Agreement with [***] written notice to ASI or ASI's acquiring party, as applicable. The Parties agree to
meet no less than once every [***] in order to evaluate the Minimum Quarterly Order Requirements in good faith and make any modifications that are mutually agreed upon by the
Parties following such evaluation. 

        3.6    Product Pricing and Payment.    Payment for ASI purchase orders subsequent to the initial stocking purchase
order will be due within thirty (30) days of the date Product is shipped to ASI from OBI. With respect to Product, ASI will pay to OBI a transfer price for each individual Product as indicated
under "Transfer Price" on Exhibit A ("Product Transfer Price(s)"). The Product Transfer Prices will be established each year on the anniversary of the Effective Date by mutual agreement to an
updated version of Exhibit A by no later than [***] prior to such anniversary. The Parties agree and acknowledge, that it is the intention of the Parties that the
Transfer Price shall be approximately [***] of ASI's published list prices of each of the Products. 

        3.7    Samples.    OBI will provide to ASI [***] demo kits containing non-sterile
samples of the Products at no charge to ASI, for use in sales demonstrations and trade shows ("Samples"). ASI may order additional Samples from OBI, as reasonably requested by ASI, at
pre-agreed prices representing a significant discount to sterile Products, under the same payment terms as provided in Section 3.6. 

        3.8    Inspection upon Delivery.    

        (a)   Product
shipments from OBI to ASI shall include a certificate of compliance from OBI confirming that the Products meet product specifications and OBI's quality
standards, which are in compliance with the relevant requirements of applicable Regulatory Authorities. Notwithstanding any prior inspection or payments, all Products capable of being inspected prior
to use may, at ASI's sole discretion, be subject to final inspection and acceptance at ASI's designated location or other destination point within [***] after delivery. If ASI
elects to inspect Product, then ASI shall notify OBI within such [***] period of any defect in materials or workmanship or non-conformity of any Product to the
Product Specifications or purchase order. If ASI inspects Product and fails to so notify OBI, ASI will be deemed to have accepted the Product; provided, that the warranty set forth in
Section 8.2 hereof shall survive acceptance of the Product by ASI. 

        (b)   Notwithstanding
any prior inspections or payments, all Products incapable of being inspected until use will be subject to final inspection upon use. ASI shall notify OBI
within fifteen (15) days after the inspection-at-use of the defect in materials or workmanship or non-conformity of any Product to the Product Specifications
or purchase order. If ASI fails to so notify OBI, ASI will be deemed to have accepted the Product; provided, that the warranty set forth in Section 8.2 hereof shall survive acceptance of the
Product by ASI. 

        (c)   Without
prejudice to any other right or remedy of ASI, in case any item is determined to be defective in accordance with Section 3.8(a) or 3.8(b), ASI will have
the right to reject it. Any item that has been rejected must be replaced by and at the expense of OBI promptly after notice. ASI will not be required to pay for any rejected item or its shipping
costs. ASI will return all rejected Products to OBI at OBI's expense. 

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant to the Company's application requesting confidential
treatment under Rule 406 of the Securities Act.

7

 

        3.9    Product Returns.    OBI shall not be obligated to accept returns of any Product except as provided in
Section 3.8 and Section 8.2. 

        3.10    Maintenance of Inventory.    ASI shall maintain its inventory of Products in a manner that meets all storage
and other standards required by applicable governmental authorities and as reasonably required
by OBI, including OBI's requirement that Products be stored at less than 140 degrees Fahrenheit. OBI shall provide ASI with any such requirements, and any amendments thereto, in advance in writing. 

4.    PRODUCT APPROVALS AND COMPLIANCE    

        4.1    Regulatory.    OBI shall be responsible, at its cost and expense, for obtaining, maintaining and complying with
all regulatory requirements and approvals (including all Product Approvals and Reimbursement Approvals) necessary to promote, market, sell, distribute or deliver the Products in the Territory. ASI
shall market and promote all Products in compliance with all FDA clearances, specifically the Indications for Use relating to the Products, as provided in Exhibit D and as subsequently may be
provided in writing by OBI to ASI. 

        4.2    Marketing Materials.    Upon written request of ASI, OBI shall provide to ASI copies of its existing, and
subsequently developed, marketing materials such as artwork, video and other media related to the Products to the extent necessary to assist ASI's marketing activities and to the extent OBI is not
prohibited from providing such information by applicable law or regulation. Upon request, each Party shall provide the other any market information relating to the performance, design or use of the
Products, including customer feedback, received by such Party, or other information in such Party's possession that relates to the safety or performance of any Product, to the extent that such Party
is not prohibited from providing such information by applicable law or regulation. Each Party hereby grants to the other Party a non-exclusive, fully paid, perpetual, irrevocable license
to use all such information that such Party is provided in accordance with the immediately preceding sentence in such Party's business, including, without limitation, in OBI's continued development,
design, manufacturing, marketing and sale of the Products, Product Improvements and also to disclose the same to the extent reasonably necessary for such use. 

        4.3    Traceability Program.    ASI shall be responsible for maintaining the records required for the traceability of
the distribution of the Products by part or catalog number and lot or serial number. All Products entered into commercial distribution shall be traceable to the end user with sufficient detail that
product can be located and retrieved as may be required. ASI shall be responsible for maintaining medical device vigilance systems in the Field within the Territory as required by local regulations
and/or applicable law, and shall provide OBI with reasonable access to such records. Each Party shall inform the other promptly if it becomes aware of any complaint regarding any Product o required to
be reported to any Regulatory Authority in the Territory. 

        4.4    Product Recalls.    Notwithstanding anything in this Agreement to the contrary, OBI shall have the
responsibility for all regulatory decisions and reporting with regard to any reporting required by the applicable Regulatory Authorities and/or recalls, including the obligation to manage any recall
of any and all Products, and ASI shall have the responsibility and obligation to provide OBI with product feedback and the responsibility and obligation to cooperate fully with OBI in coordinating
recall activity of any and all Products in accordance with OBI's requests. The Parties agree to provide reasonable assistance to one another in the event of any recall or issuance of any 

8

 

advisory
letter. OBI shall be responsible for all costs and liabilities relating to the recall activity, except to the extent that any of the costs are directly attributable to the negligence of ASI,
which costs shall be the responsibility of ASI. In the event of a recall of any Product caused by a manufacturing issue, OBI shall use commercially reasonable efforts to correct any deficiency
relating to its manufacturing, packaging, testing, labeling, storing or handling of such Product, if applicable, and shall, at OBI's option, either, at OBI's cost replace each unit of the Product
recalled (including units held in inventory by ASI, its Affiliates or Agents, or its customers) with a corrected Product within a reasonable period of time, or refund the transfer price therefor. 

        4.5    Notices.    OBI and ASI shall notify the other within twenty-four (24) hours if it becomes
aware of any material issue with a Product or its manufacture, labeling or packaging, including any issue relating to regulatory compliance, safety or efficacy of a Product. Without limiting the
generality of the foregoing, OBI and ASI will notify the other immediately if it becomes aware of any death or bodily injury caused by a Product (or suspected to be caused by a Product) or within
three (3) days if it becomes aware of any malfunction of a Product that would reasonably impact the safety of the Product. 

        4.6    Compliance with Laws.    OBI will comply with all applicable laws and regulations in the jurisdictions in the
Territory in which ASI is marketing and selling Products a pertaining to the manufacture of the Products and in any other manner pertaining to performance by OBI of its obligations under this
Agreement, including the maintenance of ongoing quality assurance and testing procedures to comply with applicable regulatory requirements, provided that nothing in this Section 4.6 shall be
deemed to require OBI to seek any Product Approvals in any countries beyond those in which OBI is required to seek approvals pursuant to Section 4.1. 

        4.7    Complaints.    Both ASI and OBI must maintain a customer complaint handling system meeting the requirements of
the applicable Regulatory Authorities. ASI will be responsible for gathering initial complaint information and for providing such information to OBI in a timely manner. ASI will maintain complete and
accurate records of such information gathered. ASI will notify OBI of any complaint of which ASI becomes aware in accordance with Section 4.5. Within thirty days after such notification from
ASI, OBI shall perform a complete investigation that contains a root cause analysis, to the extent reasonably possible, and corrective action recommendations. OBI will inform ASI immediately of the
results of any such investigation and OBI's recommendations. ASI will enter all complaints, as well as recommendations and analyses of OBI, into ASI's complaint handling system. ASI will return to
OBI, at OBI's expense, the Product that is the subject of a complaint if such Product has been made available to ASI. OBI will also maintain a cross reference system from OBI's complaint handling
system to ASI's complaint handling system. Unless otherwise required in OBI's recommendation, OBI will complete all corrective actions, including corrective actions identified in a response to ASI
pursuant to this Section 4.7 or corrective actions reasonably requested by ASI, within ninety (90) days. ASI shall provide OBI with reasonable cooperation in filing complaint reports,
investigating complaints, and taking corrective actions. 

9

 

5.    TRADEMARKS; INFRINGEMENT OF INTELLECTUAL PROPERTY    

        5.1    Trademark License    

        (a)   OBI
hereby grants to ASI a fully paid up and royalty-free right and license to use the Trademarks in connection with the promotion, marketing, sale,
distribution, and delivery of the Products in the Field in the Territory during the period in which ASI is authorized to distribute Products hereunder. ASI hereby grants to OBI a fully paid up and
royalty-free right and license to use any and all of the trademarks, service marks, copyrights and logos owned, used or controlled by ASI in connection with the performance of OBI's
obligations under this Agreement. ASI shall not be required to use the Trademarks in connection with the promotion, marketing, sale, distribution, or delivery of any Product. ASI shall be entitled to
use its own service marks and trademarks, in ASI's sole discretion, subject to its obligations to identify the Products as manufactured by OBI as set forth in Section 2.1, in connection with
the promotion, marketing, sale, distribution, and delivery of Products, which service marks and trademarks shall remain at all times the exclusive property of ASI. ASI, its Affiliates and Agents shall
not obscure, change or otherwise modify the Trademarks of OBI and other information that appears on the Products or their packaging as provided by OBI to ASI. OBI, its Affiliates and Agents shall not
obscure, change or otherwise modify ASI's trademarks, service marks, copyrights and logos that appear on the Products or their packaging. 

        (b)   All
of ASI's rights with respect to the Trademarks provided hereunder are as set forth in this Section 5.1. There are no implied rights with respect to the
Trademarks. All use of the Trademarks inures to the benefit of OBI and such Trademarks shall remain the exclusive property of OBI. All use of any service marks or trademarks of ASI in connection with
the promotion, marketing, sale, distribution and delivery of Product shall inure to the benefit of ASI and such service marks and trademarks shall remain the exclusive property of ASI, and neither
Party shall contest the validity, enforcement, or registration of any such service marks or trademarks. ASI shall not contest the validity, enforcement, or registration of any of the Trademarks or any
new Trademarks which the Parties agree to use in connection with the sale of the Products. 

        5.2    Infringement    

        (a)   Each
of ASI and OBI will notify the other Party in writing of any infringement of a Patent Right, Trademark, ASI trademark or unauthorized disclosure or use of any
Confidential Information within thirty (30) days after it becomes aware of such infringement, unauthorized disclosure or use. OBI shall have the exclusive right (after consultation with ASI) at
its own cost to take all legal action it deems necessary or advisable to eliminate or minimize the consequences of any infringement of a Proprietary Right. ASI agrees to provide OBI, at OBI's cost and
expense, with reasonable cooperation in connection with any such legal action. 

        (b)   OBI
shall permit ASI to participate at its own cost in any legal action brought by OBI to eliminate or minimize the consequences of any infringement of a Patent Right or
Trademark relating to Products for use in the Field within the Territory; provided, that OBI shall maintain the right to control the prosecution of such action. 

6.    CERTAIN OBLIGATIONS OF OBI    

        6.1    Product Information.    OBI will furnish to ASI any and all Product handling manuals, sales literature, and
other applicable information relating to the Products that is reasonably necessary in OBI's discretion for ASI to formulate any other manuals, promotional materials and warning labels reasonably
deemed necessary or appropriate by ASI (collectively, the "Product Information"). ASI shall have the right with OBI's prior written approval, which approval shall not be unreasonably 

10

 

withheld
or delayed to revise, or to cause OBI to revise, any such Product Information that ASI reasonably determines to be necessary or advisable, or otherwise inaccurate or misleading, and OBI will
promptly incorporate such revisions into the Product Information. ASI shall have the right to produce, at its expense, promotional material, Product handling manuals, instructions for use, warning
labels and other written information relating to the Products which is based in whole or in part on, or derived from, the Product Information supplied by OBI. OBI shall be entitled to review such
information solely for the purpose of verifying that such information (a) is consistent with the Product Information and Product Approvals, (b) contains no material inaccuracies with
respect to a Product's performance/use or the Product Information, (c) does not disclose material Confidential Information of OBI; and (d) does not, in OBI's reasonable discretion, make
claims about the performance or use of the Product beyond those contained in the Product Information, except to the extent otherwise authorized by OBI, and OBI shall be entitled to prohibit ASI from
disseminating any such information prepared by ASI to the extent such information (i) is inconsistent with the Product Information or any Product Approvals, (ii) contains material
inaccuracies with respect to the Product's performance/use or the Product Information, (iii) discloses material Confidential Information of OBI, or (iv) makes unauthorized claims about
the performance of the Product that are not contained in the Product Information. 

        6.2    Training Advice and Assistance.    OBI will provide reasonable technical assistance and training regarding the
Products to ASI's representatives as ASI reasonably requests at ASI's facilities, for up to [***] per year; provided that, ASI shall reimburse OBI for the reasonable travel and
lodging expenses incurred by OBI personnel to provide such assistance and training. 

7.    CERTAIN OBLIGATIONS OF ASI    

        Within
three (3) business days of the execution of this Agreement, ASI shall pay to OBI a non-refundable production set-up fee of
[***] payable either by company check or bank wire transfer. Notwithstanding the preceding sentence, this production set-up fee shall be refundable if OBI fails to
deliver the initial stocking order in accordance with this Agreement. Upon execution of this Agreement, ASI shall issue the initial stocking purchase order to OBI for Products in the quantities listed
in Exhibit A. Payment for the initial stocking purchase order will be due within [***] of the date Products are shipped to ASI from OBI. 

8.    REPRESENTATIONS AND WARRANTIES    

        8.1    Mutual Representations and Warranties.    Each of OBI and ASI hereby represents and warrants to the other that: 

        (a)   it
is a duly and validly organized and existing corporation in good standing, in the case of ASI under the laws of the state of California, and in the case of OBI, under
the laws of the State of Delaware, and that it or its Affiliates that may be performing its obligations under this Agreement are legally qualified to do business in each jurisdiction in which this
Agreement may be performed and its activities hereunder requires such qualification, except where the failure to have such qualification would not have a material adverse effect, 

        (b)   the
performance of this Agreement and the consummation of the transactions contemplated herein will not result in any breach or violation of any terms or provisions 

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant to the Company's application requesting confidential
treatment under Rule 406 of the Securities Act.

11

 

of,
or constitute a default under, its Certificate or Articles of Incorporation or By-Laws, or other formation documents, 

        (c)   all
requisite corporate action has been taken for the due authorization, execution, delivery, and performance of this Agreement by it, and this Agreement constitutes a
legal binding obligation, enforceable against such Party, in accordance with its terms, except insofar as enforceability may be limited by bankruptcy, insolvency, reorganization, or similar laws
affecting the rights of creditors generally, and 

        (d)   it
is not a Party to any litigation relating to, or that could reasonably be expected to affect, its ability to perform its obligations under this Agreement. 

        8.2    Product Warranty    

        (a)   OBI
represents and warrants to ASI that all Products supplied to ASI hereunder shall: (i) be manufactured, labeled, packaged and tested (while in the possession
or control of OBI) in accordance with the applicable Product Approvals therefor and the applicable laws and regulations in each jurisdiction in the Territory relating to the manufacture, labeling,
packaging and testing of the Products; provided that nothing in this Section 8.2 shall be deemed to require OBI to obtain any Product Approvals in any countries outside the Territory,
(ii) be free from defects in materials and workmanship for a period of ninety (90) days from delivery to ASI, (iii) be free and clear of all liens and encumbrances created by OBI,
and (iv) conform in all material respects to all specifications published by OBI and approved by ASI, such approval not to be unreasonably withheld. 

        (b)   Upon
notification by ASI of any breach of Section 8.2(a) above, OBI will repair the non-conforming Products without charge to ASI, or replace the
non-conforming Products with a credit to ASI for the replaced unit. If OBI does not repair or replace the non-conforming Products within thirty (30) days from receipt of
notice from ASI, OBI shall refund the Transfer Price actually paid by ASI for the non-conforming Products and shall reimburse ASI for any shipping costs incurred in connection with the
original delivery of such Products. ASI shall, upon the request of OBI, return any non-conforming Product to OBI, to the extent practicable. 

        8.3    Ownership.    OBI represents and warrants to ASI that OBI owns or has licensed such rights, title and interests
in OBI's proprietary rights included in the Products necessary to grant the rights set forth in
Section 2.1 of this Agreement. ASI represents and warrants to OBI that ASI owns or has licensed such rights, title and interests in the trademarks, service marks, copyrights and logos to be
printed on or otherwise included with the Products. 

        8.4    No Other Warranty.    EXCEPT AS STATED IN THIS ARTICLE 8, NEITHER PARTY MAKES ANY REPRESENTATION OR WARRANTY,
EXPRESS, IMPLIED, OR STATUTORY, WITH RESPECT TO THE PRODUCTS OR SERVICES CONTEMPLATED HEREUNDER, INCLUDING WITHOUT LIMITATION ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR
PURPOSE. 

        8.5    ASI Warranties.    ASI, its Affiliates and Agents shall make no representations, warranties or guaranties of
any kind with respect to the Products other than those specifically provided by OBI with respect to the Products in Section 8.2, and ASI shall ensure that all other 

12

 

representations
and warranties with respect to the Products are disclaimed under applicable law. ASI represents and warrants that it, its Affiliates and Agents will comply with all laws, rules,
ordinances, requirements of governmental agencies, and regulations applicable to the promotion, pricing, marketing, distribution and sale of the Products, including, without limitation, the
requirements of the United States Federal Drug Administration set forth on Exhibit D attached hereto. 

9.    INDEMNIFICATION    

        9.1    Indemnified Claims.    Subject to the provisions of Section 9.2 below, each of OBI and ASI (each, an
"Indemnifying Party") will defend, indemnify and hold harmless the other Party, its subsidiaries, parent corporations, Affiliates, officers, directors, partners, shareholders, employees, and their
respective successors and assigns (collectively, the "Indemnitees") from and against any claim, suit, demand, loss, damage, expense (including reasonable attorneys' fees and those that may be asserted
by a third party) or liability (collectively, "Losses"), including, without limitation, Losses imposed upon the Indemnitee(s) by any third party, arising from or related to: (a) any material
breach of such Indemnifying Party's representations, warranties, covenants, and obligations under this Agreement; (b) any negligence or intentional misconduct by such Indemnifying Party (or its
employees, agents or representatives) in performing its obligations under this Agreement; or (c) any trademark or copyright infringement claim. The foregoing indemnification shall not apply in
the event and to the extent that a court of competent jurisdiction determines that such Losses arose as a result of any Indemnitee's negligence, intentional misconduct or breach of this Agreement. 

        9.2    Procedure.    A Party seeking indemnification shall promptly notify the other Party in writing of a claim or
suit; provided that a Party's failure to give such notice or delay in giving such notice shall not effect such Party's right to indemnification under this Section 9 except to the extent that
the other Party has been prejudiced by such failure or delay. Neither Party has any obligation to indemnify the other Party in connection with any settlement made without the Indemnifying Party's
written consent. The Indemnitee has the right to participate at its own expense in the claim or suit and in selecting counsel therefor. The Indemnitee shall cooperate with the Indemnifying Party as
reasonably requested, at Indemnifying Party's sole cost and expense. The Indemnifying Party shall not settle any claim or suit without the Indemnitee's prior written consent unless such settlement is
limited to the payment of cash by the Indemnifying Party and contains a full release of the Indemnitee. 

        9.3    Insurance.    At all times during which any Product is being clinically tested with human subjects or
commercially distributed or sold by ASI hereunder, as well as for a period of two years thereafter, both Parties shall procure and maintain from a reputable insurer insurance, including product
liability insurance, adequate to cover its obligations hereunder and which is consistent with normal business practices of prudent companies similarly situated. Such insurance policy shall at all
times name the other Party as an additional insured thereunder. It is understood that such insurance shall not be construed to create a limit of either Party's liability with respect to its
indemnification obligations under this Section 9. Upon request, either Party shall provide the other Party with written evidence of such insurance (or financial information that describes the
amounts available under any self insurance facility) upon request. Either Party shall provide the other Party with written notice at least fifteen (15) days prior to the cancellation,
non-renewal or material change in such insurance. 

13

   10.    TERM AND TERMINATION    

        10.1    Term.    The term of this Agreement shall be for a period commencing on the Effective Date and ending four
(4) years thereafter, and subject to the provisions of this Article 10, shall be extended automatically for three (3) additional two (2) year terms, unless either Party
gives the other Party written notice of its intention not to extend this Agreement at least sixty (60) days prior to the expiration of the initial term or any renewal term. This Agreement may
also be terminated earlier in accordance with the provisions of this Article 10 or as expressly provided elsewhere in this Agreement. 

        10.2    Termination for Material Breach.    Either Party shall have the absolute right to terminate this Agreement
upon sixty (60) days prior written notice to the other if the other Party fails to perform or breaches, in any material respect, any material terms or provisions of this Agreement; provided,
however, that such termination shall become effective only if such Party shall fail to remedy or cure the breach within such sixty (60) day period, or initiate commercially reasonable measures
to remedy or cure within such period if it is not practicable to complete the cure in such period. 

        10.3    Insolvency.    Each Party shall have the absolute right to terminate this Agreement in the event the other
Party shall become insolvent, or if there is instituted by or against the other Party procedures in bankruptcy that are not dismissed within sixty (60) days, or under insolvency laws or for
reorganization, receivership or dissolution, or if the other Party loses any franchise or license to operate its business as presently conducted in any part of the Territory. 

        10.4    Force Majeure.    Each Party shall have the right to terminate this Agreement as permitted in
Section 11.14. 

        10.5    Change of Control of OBI.    In the event of the consummation of a Change of Control of OBI during the term of
this Agreement, both ASI and OBI or OBI's acquiring party, as applicable, shall continue operating under this Agreement for a period of time equal to the greater of
(i) [***] or (ii) [***] years from the date of the consummation of the Change of Control (collectively, subsections (i) and
(ii) shall be referred to as the "Post-Change of Control Period"). During the [***] of the Post-Change of Control Period, the terms of this
Agreement shall remain in full force and effect. Following the [***] of the Post-Change of Control Period, and until the expiration of the Post-Change
of Control Period, the terms of this Agreement shall remain in full force and effect, however, ASI's distribution rights shall be co-exclusive with OBI or OBI's acquiring party, as
applicable (which rights may not be assigned, transferred or delegated by the acquiring party outside of the distribution channels of the
acquiring party that existed on the date of the execution of the definitive agreement relating to such Change of Control). In the event of a Change of Control of OBI or OBI's acquiring party (or the
successor in interest thereto), as applicable, during the Post-Change of Control Period, the Post-Change of Control Period shall renew and the terms of this Agreement shall
remain in force and effect in accordance with this Section 10.5. This Agreement shall expire at the end of the applicable Post-Change of Control Period. 

        10.6    Rights after Termination.    Upon expiration or termination of this Agreement for any reason, ASI and any
successor or acquiring party of ASI, shall have no further right to promote, market, distribute or sell Product, except as set forth in Section 10.7. 

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant to the Company's application requesting confidential
treatment under Rule 406 of the Securities Act.

14

 

        10.7    Inventory Liquidation after Termination.    During the [***] period following the
expiration or termination of this Agreement, any inventory of Products owned by ASI or its acquiring party, as applicable, at such expiration or termination may be sold by ASI or its acquiring party
to customers in the Territory in the ordinary course; provided, however, that for the period required to liquidate such inventory, all of the provisions contained herein governing ASI's and OBI's
obligations and rights shall remain in effect. In order to accelerate the liquidation of any such inventory, OBI or its acquiring party, as applicable, shall have the option, but not the obligation,
to purchase all or any part of such remaining inventory at the price at which the inventory was originally purchased by ASI from OBI. 

        10.8    Sections Surviving Termination.    The termination of this Agreement shall not impair the rights or
obligations of either Party hereto which shall have accrued hereunder prior to such termination. The provisions of Sections 3.8, 5.2, 8, 9, 10.7 and 11, and the rights and obligations of the Parties
thereunder shall survive the expiration or termination of this Agreement. 

11.   GENERAL PROVISIONS  

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

        11.2    Confidentiality.    It is contemplated that in the course of the performance of this Agreement each Party may,
from time to time, disclose Confidential Information to the other. Each Party agrees to take all reasonable steps to prevent disclosure of Confidential Information and not to use any Confidential
Information except for the limited purposes set forth in this Agreement; provided, that no provision of this Agreement shall be construed to preclude such disclosure of Confidential Information as may
be required by court order, or to the extent necessary and appropriate to divulge such Confidential Information to obtain governmental approval for the investigation or marketing of the Products;
provided further that notice of such disclosure is provided to the other Party sufficiently in advance of such disclosure to provide the other Party opportunity to seek confidential treatment or other
protective measures. 

        11.3    Waiver.    Except as otherwise expressly set forth herein, no provision of or right under this Agreement shall
be deemed to have been waived by any act or acquiescence on the part of either Party, its agents or employees, except by an instrument in writing signed by an authorized officer of such Party. No
waiver by either Party of any breach of this Agreement by the other Party shall be effective as to any other breach, whether of the same or any other term or condition and whether occurring before or
after the date of such waiver. 

        11.4    Independent Contractors.    Each Party represents that it is acting on its own behalf as an independent
contractor and is not acting as an agent for or on behalf of any third Party. This Agreement and the relations hereby established by and between OBI and ASI do not constitute a partnership, joint
venture, franchise, agency or contract of employment. 

        11.5    Assignment.    Neither Party may assign or transfer by operation of law or otherwise its rights or obligations
hereunder without the prior written consent of the other; provided, that notwithstanding the foregoing, either Party may assign its rights and obligations together hereunder to a person that acquires
all of the capital stock, or substantially all of the assets, of the such Party, and either Party may assign the Agreement to an Affiliate, provided that such person assumes this 

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant to the Company's application requesting confidential
treatment under Rule 406 of the Securities Act.

15

 

Agreement,
in writing, and agrees to be bound by and to comply with all the terms and conditions hereof. 

        11.6    Successors and Assigns.    This Agreement shall bind and inure to the benefit of the Parties hereto and their
respective successors and permitted assigns. 

        11.7    Publicity.    Except as is necessary for governmental notification purposes or to comply with applicable laws
and regulations (including securities laws and regulations applicable to a public reporting company) or to enforce their respective rights under this Agreement, and except as otherwise consented to by
the Parties hereto in writing, such consent not to be unreasonably withheld, conditioned, or delayed, the Parties shall (a) keep the material terms of this Agreement confidential and
(b) agree upon the text and the exact timing of any public announcement relating to the transactions contemplated by this Agreement. 

        11.8    Notices.    All notices, claims and demands hereunder, and all other communications which are required to be
given in writing pursuant to this Agreement, shall be in writing and shall be given (and shall be deemed to have been duly given upon receipt) by delivery in person or facsimile (received at the
facsimile machine to which it is transmitted prior to 5 p.m., local time, on a business day for the Party to which it is sent, or if received after 5 p.m., local time, as of the next
business day) or by registered or certified mail (postage prepaid, return receipt requested) to the respective Parties at the following addresses (or at such other address for a Party as shall be
specified in a notice given in accordance with this Section 11.8): 

if
to ASI: 

Alphatec
Spine Inc.

2051 Palomar Airport Road, Suite 100

Carlsbad, CA 92011

Attention: Vice President, Business Development

Facsimile: (760) 431-9132 

with
a copy not constituting notice to: 

Mintz
Levin Cohn Ferris Glovsky and Popeo

666 3rd Avenue, 32nd Floor

New York, NY 10017

Attention: Stephen C. Curley, Esq.

Facsimile: (212) 983-3115 

if
to OBI: 

OsteoBiologics,
Inc.

12500 Network Boulevard

San Antonio, TX 78249

Attention: Chief Financial Officer

Facsimile: (210) 690 2559 

16

 

with
a copy not constituting notice to: 

Fulbright
& Jaworski LLP

Attn: Daryl Lansdale

300 Convent Street, Suite 2200

San Antonio, TX 78205

Facsimile: (210) 270-7205 

        11.9    Severability.    In the event any provision of this Agreement shall for any reason be held to be invalid,
illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other term or provision hereof. The Parties agree that they will negotiate in good faith
or will permit a court to replace any provision hereof so held invalid, illegal or unenforceable with a valid provision which is as similar as possible in substance to the invalid, illegal or
unenforceable provision. 

        11.10    Headings.    Headings of the sections and subsections of this Agreement are for reference purposes only and
shall not limit or affect the meaning or construction of the terms and conditions hereof. 

        11.11    Interpretation.    Words such as "herein", "hereinafter", "hereof' and "hereunder" refer to this Agreement as
a whole and not merely to a section or paragraph in which such words appear, unless the context otherwise requires. The singular shall include the plural, unless the context otherwise requires.
Whenever the word "include", "includes" or "including" appears in this Agreement, it shall be deemed in each instance to be followed by the words "without limitation." 

        11.12    Entire Agreement; Amendment.    The terms and provisions contained in this Agreement constitute the entire
understanding of the Parties with respect to the transactions and matters contemplated hereby and supersede all previous communications, representations, agreements and understandings relating to the
subject matter hereof. No agreement or understanding amending, supplementing or extending this Agreement shall be binding upon either Party unless it is in writing and signed by the duly authorized
representative of the applicable Party. Without limiting the foregoing, the Parties anticipate that the Exhibits, Annexes and Schedules hereto may be amended or supplemented from time to time by
mutual written agreement. 

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

        11.14    Further Assurances, Force Majeure.    Each Party covenants and agrees that, subsequent to the execution and
delivery of this Agreement and without any additional consideration, it will execute and deliver any further legal instruments and perform any acts which are or may become reasonably necessary to
effectuate the purposes of this Agreement. Any delay in the performance of any of the duties or obligations of either Party hereto (except for any payment obligations) shall not be considered a breach
of this Agreement and the time required for performance shall be extended for a period equal to the period of such delay; provided, that such delay has been caused by or is the result of any act of
God, embargo, strike, fire, flood, act of terrorism or war, or other unforeseeable cause beyond the control and without the fault or negligence of the Party so affected. The Party so affected shall
give prompt notice to the other Party of such cause, and shall take whatever reasonable steps are necessary to relieve the effect of such cause as rapidly as possible. In the event that a force
majeure hereunder continues unabated 

17

 

for
more than four (4) months, the Party not initially claiming protection under this Section shall have the right to terminate this Agreement upon written notice to the other Party. 

        11.15    Specific Performance.    Each Party acknowledges that it will be impossible to measure in money the damage to
the other if a Party fails to comply with certain obligations imposed by this Agreement, and that in the event of any such failure or breach, the other Party will not have an adequate remedy at law or
in damages. Accordingly, each Party agrees that injunctive relief or other equitable remedy, in addition to remedies at law or damages, is an appropriate remedy for any such failure or breach. 

[Signature
Page Follows] 

18

 

        IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective duly authorized officers, and have duly delivered and executed this Agreement under
seal as of the date first set forth above. 

	OSTEOBIOLOGICS, INC.	 	ALPHATEC SPINE, INC.
	

By:	
 	

/s/ Fred Dinger
	
 	

By:	
 	

/s/ Ronald Hisock

	

Name:	
 	

Fred Dinger
	
 	

Name:	
 	

Ronald Hisock

	

Title:	
 	

President and CEO
	
 	

Title:	
 	

President and CEO

19

 
EXHIBIT A  

PRODUCTS  

	 
	 	 
	 	 
	 	Initial Stocking Order

	PRODUCT GROUP

Product Name / Size / Description
	 	ASI Part #
	 	OBI Part #
	 	Transfer

Price
	 	Quantity
	 	Total Amt

	[***]	 	 	 	 	 	 	 	 	 	 
	ASI Product Name TBD	 	 	 	 	 	 	 	 	 	 
	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	 	[***]
	 	 	 	 	 	 	 	 	 	 	

	[***]	 	 	 	 	 	 	 	 	 	 
	ASI Product Name TBD	 	 	 	 	 	 	 	 	 	 
	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	[***]	 	 	 	 	 	 	 	 	 	 
	ASI Product Name TBD	 	 	 	 	 	 	 	 	 	 
	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	[***]	 	 	 	 	 	 	 	 	 	 
	ASI Product Name TBD	 	 	 	 	 	 	 	 	 	 
	[***]	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant to the Company's application requesting confidential
treatment under Rule 406 of the Securities Act.

20

 
EXHIBIT B  

MINIMUM QUARTERLY PURCHASES

($ Amounts)  

	[***]	 	 	 	 	 	 	 	 	 	 
	Calendar Year 2006	 	[***]	 	 	 	 	 	[***]
	 	 	[***]	 	 	 	 	 	[***]
	 	 	 	 	 	 	 	 	 	 	

	 	 	[***]	 	 	 	 	 	[***]
	 	 	 	 	 	 	 	 	 	 	

	 
	 	Q1
	 	Q2
	 	Q3
	 	Q4
	 	TOTAL

	Calendar Year 2007	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	Calendar Year 2008	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	Calendar Year 2009	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	[***]	 	 	 	 	 	 	 	 	 	 
	Calendar Year 2006	 	[***]	 	 	 	 	 	[***]
	 	 	 	 	 	 	 	 	 	 	

	 
	 	Q1
	 	Q2
	 	Q3
	 	Q4
	 	TOTAL

	Calendar Year 2007	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	Calendar Year 2008	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	Calendar Year 2009	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	[***]	 	 	 	 	 	 	 	 	 	 
	Calendar Year 2006	 	[***]	 	 	 	 	 	[***]
	 	 	 	 	 	 	 	 	 	 	

	 
	 	Q1
	 	Q2
	 	Q3
	 	Q4
	 	TOTAL

	Calendar Year 2007	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	Calendar Year 2008	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	Calendar Year 2009	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	[***]	 	 	 	 	 	 	 	 	 	 
	Calendar Year 2006	 	[***]	 	 	 	 	 	[***]
	 	 	 	 	 	 	 	 	 	 	

	 
	 	Q1
	 	Q2
	 	Q3
	 	Q4
	 	TOTAL

	Calendar Year 2007	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	Calendar Year 2008	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]
	Calendar Year 2009	 	[***]	 	[***]	 	[***]	 	[***]	 	[***]

[***]

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant to the Company's application requesting confidential
treatment under Rule 406 of the Securities Act.

21

 
EXHIBIT C  

FORM OF PURCHASE ORDER  

22

 
EXHIBIT D  

FDA REQUIREMENTS  

23

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00103-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00103-of-00352.parquet"}]]