Document:

QuickLinks
 -- Click here to rapidly navigate through this document

Exhibit 10.8  

 
 

EMPLOYMENT AGREEMENT    
    

        THIS EMPLOYMENT AGREEMENT (the "Agreement"), made as of the 13th day of July, 2005, is entered into among Scott V. Palka ("Employee"), Alphatec
Manufacturing, Inc., a California corporation (the "Company"), and Alphatec Holdings, Inc., a Delaware corporation ("Parent"). 

        1.     Employment. Employee's employment with the Company shall commence on April 18, 2005 (the "Commencement Date") and
shall continue upon the terms set forth in this Agreement for the period set forth in Section 2 hereof. 

        2.     Term of Employment. 

        (a)   Until
such time as either the Employee or the Company terminates the employment as set forth herein, the term of the Employee's employment shall be three years from the
Commencement Date (the "Initial Term"). 

        (b)   The
Initial Term shall be automatically renewed as of each anniversary of the Commencement Date for an additional twelve-month period unless the Company or the Employee
delivers to the other, at least 30 days prior to each anniversary date, written notice specifying that the Employee's employment will not be renewed at the end of the
then-applicable term of the Agreement. 

        3.     Title; Capacity; Office. 

        (a)   The
Company shall employ Employee, and Employee agrees to work for the Company as its Chief Financial Officer and Vice President. Employee shall perform the duties and
responsibilities inherent in the position in which he serves and such other duties and responsibilities as the President and Chief
Executive Officer (or, presently, the President and Chief Operating Officer) (the "CEO") shall from time to time reasonably assign to him. Employee shall report to the CEO. 

        (b)   Employee's
office shall be located at the Company's headquarters in Carlsbad, California, or at such other corporate headquarters approved by the Board of Directors (the
"Board"). 

        4.     Compensation and Benefits. While employed by the Company, Employee shall be entitled to the following (it being agreed,
for the avoidance of doubt, that, except as provided in Section 6.2, amounts payable on the happening of any specified event will not be payable if the Employee is not employed by the Company
upon the happening of such event): 

        4.1   Salary. The Company shall pay Employee an annual base salary of $300,000.00, less applicable payroll withholdings,
payable in accordance with the Company's customary payroll practices, with salary increases, if any, to be determined by the CEO on an annual basis beginning January, 2006. 

        4.2   Performance Bonus. Employee will be eligible to receive a cash performance bonus each fiscal year, payable within
30 days after the end of the Company's fiscal year, in an amount of up to 50% of the base salary received by Employee for such fiscal year.    In the fiscal year ended
December 31, 2005 ("FY 2005"), Employee will be entitled to his full performance bonus (which will be 50% of base salary paid from the Commencement Date through December 31, 2005) if the
Company's Net Sales (as that term is used in the Company's audited financial statements), exclusive of sales by businesses acquired from and after the Commencement Date and subject to the provisions
of Schedule II ("Same Store Sales") equal or exceed $50 million. In the event that Same Store Sales in FY 2005 are $33 million, Employee will receive 25% of his full performance
bonus. In the event that Same Store Sales in FY 2005 are $40 million, Employee will receive 50% of his full performance bonus. In the event that Same Store Sales in FY 2005 are between
$33 million and $40 million, the percentage of Employee's full performance bonus shall be prorated between 25% and 50%, and in the event that Same Store Sales for FY 2005 are between 

 

$40 million
and $50 million, such percentage shall be prorated between 50% and 100%. After FY 2005, performance bonuses shall be based upon the achievement of objectives established by
the CEO prior to the commencement of the fiscal year. 

        4.3   Sale of the Company. Upon the Sale of the Company, Employee shall receive a special cash bonus of not less than $200,000,
less applicable payroll withholdings. A "Sale of the Company" shall be deemed
to occur upon the purchase by one person or a group of persons for cash or other consideration of more than 80% of the capital stock or assets of the Parent; provided that a "Sale of the Company"
shall not be deemed to have occurred in the event of the transfer of stock or assets in a transaction that would not result in a Change in Control (as hereinafter defined). 

        4.4   Fringe Benefits. Employee will be entitled to participate in all benefit programs that the Company establishes and makes
available to its management Employees. Employee will also be entitled to take fully paid vacation in accordance with Company policy, which shall be not less than four (4) weeks per calendar
year, with no forfeiture for unused vacation days. 

        4.5   Reimbursement of Expenses. Subject to the Company's standard policies and procedures, as determined by the CEO or the
Board from time to time, Employee shall be entitled to prompt reimbursement for reasonable expenses set forth on Schedule I incurred or paid by him in connection with, or related to the
performance of, his duties, responsibilities or services under this Agreement, upon presentation by Employee of documentation, expense statements, vouchers and/or such other supporting information as
the Company may reasonably request. 

        4.6   Equity. Upon the Commencement Date, Employee shall be granted restricted shares of Series A-1 Common
Stock (the "Restricted Shares") of Parent representing approximately 0.834% of Parent's outstanding common stock. The Company agrees that any additional investment in equity capital by
non-employee investors will be made at fair market value. Upon the termination of Employee's employment, all restricted outstanding common stock shares that have not vested shall be
repurchased by the Company for an aggregate of $1.00. One hundred percent of such restricted shares will vest over a 5-year period in equal amounts beginning on the first anniversary of
the Commencement Date, and will vest immediately upon a Change in Control. All of such restricted shares that have not previously vested shall vest upon a Sale of the Company. For purposes of this
Agreement, a "Change in Control" shall occur on the date after the Commencement Date that: (i) any one person, entity or group acquires ownership of capital stock of the Company that, together
with the capital stock of the Company already held by such person, entity or group, constitutes more than 50% of the total fair market value or total voting power of the capital stock of the Company;
provided, however, if any one person, entity or group is considered to own more than 50% of the total fair market value or total voting power of the capital stock of the Company, the acquisition of
additional capital stock by the same person, entity or group shall not be deemed to be a Change in Control; (ii) a majority of members of the Board is replaced during any 12-month
period by directors whose appointment or election is not endorsed by a majority of the members of the Board prior to the date of the appointment or election; or (iii) any one person, entity or
group acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person, entity or group) assets from the Company that have a total
gross fair market value at least equal to 80% of the total gross fair market value of all of the assets of the Company immediately prior to such acquisition or acquisitions; provided, however, a
transfer of assets by the Company shall not deemed to be a Change in Control if the assets are transferred to (A) a shareholder of the Company (immediately before the asset transfer) in
exchange for or with respect to its capital stock in the Company, (B) an entity, 50% or more of the total value or voting power of which is owned, directly or indirectly, by the Company,
(C) a person, entity or group that owns, directly or indirectly, 50% or more of the total value or voting power of all the outstanding capital stock of the Company, or 

2

 

(D) an
entity, at least 50% of the total value or voting power of which is owned, directly or indirectly, by a person, entity or group described in subparagraph (C) above. In all
respects, the definition of "Change in Control" shall be interpreted to comply with Section 409A of the Internal Revenue Code of 1986, as amended, and the provisions of Treasury Notice
2005-1, and any successor statute, regulation and guidance thereto (provided, however, that the Company does not guarantee any tax treatment of any payment or benefit in this Agreement).
The restricted shares shall also be subject to the terms of the Shareholders' Agreement entered into by the Company and the holders of the other shares of Series A-1 Common Stock. 

        5.     Termination of Employment Period. The Agreement shall terminate upon the occurrence of any of the following: 

        5.1   Termination for Cause. At the election of the Company, for Cause. For the purposes of this Section 5.1, "Cause"
for termination shall be deemed to exist upon the occurrence of any of the following: 

        (a)   a
written finding by the CEO made after reasonable investigation that Employee has engaged in dishonesty, gross negligence or gross misconduct that is injurious to the
Company, and notice to such Employee of such written finding; 

        (b)   Employee's
conviction or entry of nolo contendere to any felony or crime involving moral turpitude, fraud or embezzlement of Company property; and 

        (c)   a
written finding by the CEO that Employee has engaged in a material breach of this Agreement, and that, after written notice of the right to cure within sixty
(60) days, has not cured such material breach. 

        5.2   Termination by the Company Without Cause. At the election of the Company, without Cause, at any time, upon thirty
(30) days' written notice to Employee. Except as provided in Section 3(a) hereof, any material change in the duties or reporting responsibilities of Employee shall be treated, at the
election of Employee, as a termination without cause. 

        5.3   Voluntary Termination—At the election of the Employee, for any reason, upon thirty (30) days' notice
to the Company. 

        6.     Effect of Termination. 

        6.1   Termination for Cause or at the Election of Employee. In the event that Employee's employment is terminated for Cause
pursuant to Section 5.1 or at the Election of the Employee pursuant to Section 5.3, the Company shall have no further obligations under this Agreement other than to pay to Employee the
compensation and benefits, including payment for accrued but untaken vacation days, otherwise payable to him under Section 4 through the last day of his actual employment by the Company. 

        6.2   Termination by the Company Without Cause. In the event that Employee's employment is terminated pursuant to
Section 5.2, the Company shall continue for a period of 12 months, or 18 months if such termination follows a Change in Control, ("Severance Period"), to pay to Employee his
annual base salary then in effect in the manner set forth in Section 4.1 and payment for accrued but untaken vacation days, and to provide benefits as set forth in Section 4.4. Employee
shall also continue to be eligible for bonuses pursuant to Section 4.2, despite Employee's termination, for such 12-month (or 18-month) period;  provided, however, that in the event Employee is
terminated pursuant to Section 5.2 after a Change in Control, the Employee's bonus pursuant to
Section 4.2 for the fiscal year in which Employee is terminated shall be paid upon termination, and shall not be less than 100% of his target bonus (i.e., target bonus defined as 50% of then
base salary), prorated by multiplying the target bonus by the number of full or partial weeks Employee was employed during such fiscal year divided by 52 and the Employee shall 

3

 

continue
to vest in his restricted shares granted pursuant to Section 4.6 during the Severance Period. 

        7.     Non-disclosure and Non-competition. 

        7.1   Proprietary Information. 

        (a)   Employee
agrees that all information and know-how, whether or not in writing, of a private, secret or confidential nature concerning the Company's business
or financial affairs (collectively, "Proprietary Information") is and shall be the exclusive property of the Company. By way of illustration, but not limitation, Proprietary Information may include
inventions, products, processes, methods, techniques, formulas, compositions, compounds, projects, developments, plans, research data, clinical data, financial data, personnel data, computer programs,
and customer and supplier lists. Employee will not disclose any Proprietary Information to others outside the Company or use the same for any unauthorized purposes without written approval by an
officer of the Company, either during or after his employment, unless and until such Proprietary Information has become public knowledge without fault by Employee. 

        (b)   Employee
agrees that all files, letters, memoranda, reports, records, data, sketches, drawings, laboratory notebooks, program listings, or other written, photographic,
or other tangible material containing Proprietary Information, whether created by Employee or others, which shall come into his custody or possession, shall be and are the exclusive property of the
Company to be used by Employee only in the performance of his duties for the Company. 

        (c)   Employee
agrees that his obligation not to disclose or use information, know-how and records of the types set forth in paragraphs (a) and
(b) above, also extends to such types of information, know-how, records and tangible property of subsidiaries and joint ventures of the Company, customers of the Company or
suppliers to the Company or other third parties who may have
disclosed or entrusted the same to the Company or to Employee in the course of the Company's business. 

        (d)   Employee
agrees that all Creations (as herein defined) shall be the property of the Company. "Creations" shall mean all ideas, prospect and customer lists, inventions,
research, plans for products or services, potential marketing and sales relationships, business development strategies, marketing plans, designs, logos, branding, layouts, templates, computer software
(including, without limitation, source code), computer programs, original works of authorship, copyrightable expression, characters, know-how, trade secrets, information, data,
developments, discoveries, improvements, modifications, technology, methodologies, algorithms and designs, whether or not subject to patent or copyright protection, made, conceived, expressed,
developed, or actually or constructively reduced to practice by Executive solely or jointly with others to the extent relating to or otherwise in connection with Executive's employment by the Company.
Employee agrees to cooperate in all respects regarding requests by the Company relating to the Company's intellectual property rights in the Creations, whether such cooperation is required during or
after the termination of the employment period. 

        7.2   Noncompetition; Nonsolicitation; Nondisparagement. 

        (a)   During
his employment with the Company, Employee shall not, directly or indirectly, render services of a business, professional or commercial nature to any other person
or entity that competes with the Company's business, whether for compensation or otherwise, or engage in any business activities competitive with the Company's business, whether alone, as an Employee,
as a partner, or as a shareholder (other than as the holder of not more than one percent of the combined voting power of the outstanding stock of a public company), officer 

4

 

or
director of any corporation or other business entity, or as a trustee, fiduciary or in any other similar representative capacity of any other entity. Notwithstanding the foregoing, the expenditure
of reasonable amounts of time as a member of other companies' Board of Directors shall not be deemed a breach of this if those activities do not materially interfere with the services required under
this Agreement. 

        (b)   For
a period of one (1) year after termination of Employee's employment for any reason, Employee will not recruit solicit or induce, or attempt to induce, any
Employee or Employees of the Company to terminate their employment with, or otherwise cease their relationship with, the Company; provided, however,
that this provision shall not apply in the event that Employee is terminated pursuant to Section 5.2 following a Change in Control. 

        (c)   During
his employment with the Company and at all times thereafter, Employee shall not make any statements that are professionally or personally disparaging about, or
adverse to, the interests of the Company or any of its divisions, affiliates, subsidiaries or other related entities, or their respective
directors, officers, employees, agents, successors and assigns (collectively, "Company-Related Parties"), including, but not limited to, any statements that disparage any person, product, service,
finances, financial condition, capability or any other aspect of the business of any Company-Related Party, and that Employee will not engage in any conduct which could reasonably be expected to harm
professionally or personally the reputation of any Company-Related Party. 

        7.3   If
any restriction set forth in this Section 7 is found by any court of competent jurisdiction to be unenforceable because it extends for too long a period of
time or over too great a range of activities or in too broad a geographic area, it shall be interpreted to extend only over the maximum period of time, range of activities or geographic area as to
which it may be enforceable. 

        7.4   The
restrictions contained in this Section 7 are necessary for the protection of the business and goodwill of the Company and are considered by Employee to be
reasonable for such purpose. Employee agrees that any breach of this Section 7 will cause the Company substantial and irrevocable damage and therefore, in the event of any such breach, in
addition to such other remedies which may be available, the Company shall have the right to seek specific performance and injunctive relief. 

        8.     Other Agreements. Employee represents that his performance of all the terms of this Agreement as an Employee of the
Company does not and will not breach any (i) agreement to keep in confidence proprietary information, knowledge or data acquired by him in confidence or in trust prior to his employment with
the Company or (ii) agreement to refrain from competing, directly or indirectly, with the business of any previous employer or any other party. 

        9.     Notices. All notices required or permitted under this Agreement shall be in writing and shall be deemed effective upon
(a) a personal delivery, or (b) deposit in the United States Post Office, by registered or certified mail, postage prepaid. 

5

  

        10.   Entire Agreement. This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements
and understandings, whether written or oral relating to the subject matter of this Agreement 

        11.   Amendment. This Agreement may be amended or modified only by a written instrument executed by both the Company and
Employee. 

        12.   Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of both parties and their
respective successors and assigns, including any corporation into which the Company may be merged or which may succeed to its assets or business,  provided, however, that the obligations of Employee are personal and shall not be assigned by him, and
that the Agreement may not be assigned by the Company to any other entity without the Employee's written consent. 

        13.   Miscellaneous. 

        13.1 No Waiver. No delay or omission by the Company in exercising any right under this Agreement shall operate as a waiver of
that or any other right. A waiver or consent given by the Company on any one occasion shall be effective only in that instance and shall not be construed as a bar or waiver of any right on any other
occasion. 

        13.2 Severability. In case any provision of this Agreement shall be invalid, illegal or otherwise unenforceable, the
validity, legality and enforceability of the remaining provisions shall in no way be affected or impaired thereby. 

        13.3 Governing Law. This Agreement shall be governed by and construed and enforced in accordance with the internal laws of
the State of New York. 

        13.4 Consent to Jurisdiction. Each of the parties hereto irrevocably consents and submits to the jurisdiction of the courts
of the State of New York, sitting in the Borough of Manhattan, and the United States District Court for the Southern District of New York, sitting in the Borough of Manhattan, as the exclusive
jurisdiction and venue for any actions or proceedings brought against either party hereto, arising out of or relating to this Agreement. In any such action or proceeding brought in
such courts, the parties hereto irrevocably (i) waive any objection or jurisdiction or venue, (ii) waive personal service of the summons, complaint and other process and
(iii) agree that service thereof may be made by certified or registered first-class mail directed to the party to be served. 

        13.5 Waiver of Jury Trial. Each of the parties hereto irrevocably waives its right to a trial by jury in any action arising
out of or related to this Agreement. 

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

6

 

        IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year set forth above. 

	 
	 	 
	 	 

	 	 	/s/  SCOTT V. PALKA      
 Scott V. Palka
	

 	
 	

ALPHATEC MANUFACTURING, INC.
	

 	
 	

By:	
 	

/s/  RONALD G. HISCOCK      
 Ronald G. Hiscock

President & Chief Operating Officer
	

 	
 	

ALPHATEC HOLDINGS, INC.
	

 	
 	

By:	
 	

/s/  JOHN H. FOSTER      
 John H. Foster

Chairman & Chief Executive Officer

7

 
 
 

Schedule I    
    

Until
Employee has been relocated to California, Company to provide: 

	(a)
	Temporary
Residence in California—Company to reimburse Employee for temporary rental living expenses.

	(b)
	Company
to provide a $25,000 cash stipend to Employee for house closing/moving expenses (no receipts required). A full tax gross-up for all such costs will be done at
year-end. 

During
the term of employment, Company to reimburse, at the discretion of the CEO, for normal business expenses associated with executive status relating to travel, airline clubs, dry cleaning and
laundry, and meal allowance. 

8

 
 
 

Schedule II    
    

        Sales in Japan are currently made through a distributor. In the event that the Company shifts to direct sales, "Same Store Sales" will not include amounts that
would have been the distributor's markup. 

9

QuickLinks

EMPLOYMENT AGREEMENT

Schedule I

Schedule IIExhibit
10.9

 

ALPHATEC
SPINE, INC.

ALPHATEC
HOLDINGS, INC.

 

 

January
26, 2006

 

Scott V. Palka

 

                                Re:          Termination of Employment

 

Dear
Scott:

 

                The purpose of this letter
agreement (the “Agreement”) is to set forth the terms of your separation from Alphatec
Spine, Inc. and Alphatec Holdings, Inc. (collectively, the “Company”).  Payment of the Separation Pay described below
is contingent on your agreement to and compliance with the terms of this
Agreement.  Neither this offer to you nor
the Company’s entering into this Agreement shall constitute an admission by the
Company and this letter shall be construed as an offer of compromise.

 

                1.             Separation of Employment.  Your employment with the Company will end on the earlier of the business
day following the Company’s initial filing of a Registration Statement on Form
S-1 in connection with the Company’s initial public offering of securities and
February 17, 2006 (the “Severance Termination Date”).  If you do not agree to the terms of this
Agreement, your employment with this Company shall terminate on January 27,
2006 (the “Non-Severance Termination Date”) and this Agreement shall be null
and void.

 

                Regardless of whether you sign this Agreement, you
will receive, on the applicable termination date, a check representing the
payment to you of your accrued and unpaid salary through the Severance
Termination Date or the Non-Severance Termination Date, as the case may be, as
well as your accrued but untaken vacation. 
You acknowledge that from and after the Non-Severance Termination Date,
you shall have no authority to, and shall not, represent yourself as an
employee of the Company, and you shall have no rights to any future payments from
the Company.  In addition, by law, and
regardless of whether you sign this Agreement, you will have the right to
continue your medical insurance pursuant to the provisions of the Consolidated
Omnibus Budget Reconciliation Act of 1985 (COBRA) upon a qualifying event such
as termination of employment.  You will
receive your COBRA notice under separate cover.

                Regardless of whether you sign this Agreement, you
will cease to participate in the Company’s employee equity ownership program.  This document shall serve as notice that the
Company has exercised its right to repurchase all of the shares of restricted
stock in the Company that you own for a total purchase price of $100.00.

                If you sign this Agreement and
do not revoke it, you will continue your duties as the Company’s Chief
Financial Officer from the date of this Agreement through the Severance 

 

 

 

 

Termination
Date (the “Transition Period”).  During
the Transition Period, you shall be paid the salary you currently earn pursuant
to the Employment Agreement by and among the Company and you, dated July 13th
2005 (the “Employment Agreement”).  In
the event that your duties are not reasonably performed during the Transition
Period, the Company shall be entitled to terminate you without notice or cause.  Other than as expressly set forth in this
Agreement, the Employment Agreement is terminated in all respects.  You agree to provide a supplemental release
at the close of the Transition Period. 
You will also receive payment for any accrued vacation on the last day
of the Transition Period.

 

2.                                      Separation
Pay.

 

                In exchange for the mutual promises set forth in
this Agreement, and if you do not revoke this Agreement as you are entitled to
do as set forth below, and even though the Company has no prior obligation to
provide you with severance benefits, the Company will pay you a severance
amount equal to (i) 52 weeks of pay (aggregate gross pay of $300,000) less
applicable payroll tax withholdings and deductions, such amount to be payable
weekly in accordance with the Company’s standard payroll procedures beginning
on the Severance Termination Date (the “Severance Period”); and (ii) a lump-sum
payment equal to the bonus you are entitled to pursuant to Section 4.2 of the
Employment Agreement, such amount to be paid when all executives of the Company
are paid 2005 performance bonuses (collectively, “Separation Pay”).  In addition, during the Severance Period you
may continue to participate in all Company benefit plans and programs (provided
that you make all required contributions), excluding the Company’s 401(k)
program and the Company’s equity ownership program.

                You
acknowledge and agree that the Separation Pay is not otherwise due or owing to
you under any Company employment
agreement (oral or written) or Company policy or practice.  You also agree that the Separation Pay to be
provided to you us not intended to and does not constitute a severance plan and
do not confer a benefit on anyone other than the parties.  You further acknowledge that except for the
specific financial consideration set forth in this Agreement, you are not now
and shall not in the future be entitled to any compensation from the Company including, without
limitation, other wages, commissions, bonuses, vacation pay, holiday pay, paid
time off or any other form of compensation or benefit.  You represent by signing this Agreement that
you have received all payments to which you are legally entitled.

 

                3.             Equity.   You acknowledge that upon the consummation
of the repurchase right set forth in Section 1 above, you will own no equity in
the Company or any rights to acquire equity in the Company.

 

                4.             Confidentiality.  You expressly acknowledge and agree to the
following:

                                                (i)            that you promptly will return to the
Company all Company documents (and any copies thereof) and property, and that
you shall abide by all provisions of the Employment Agreement governing confidentiality,
proprietary information and the like,  the
terms of which shall survive the signing of this Agreement. Further, you agree
that 

 

 

2

 

                                                you will abide
by any and all common law and/or statutory obligations relating to protection
and non-disclosure of the Company’s
trade secrets and/or confidential and proprietary documents and information;

 

                                                (ii)           that all information relating in any
way to the negotiation of this Agreement, including the terms and amount of
financial consideration provided for in this Agreement, shall be held
confidential by you and shall not be publicized or disclosed to any person
(other than an immediate family member, legal counsel or financial advisor,
provided that any such individual to whom disclosure is made agrees to be bound
by these confidentiality obligations), business entity or government agency
(except as mandated by state or federal law), except that nothing in this
paragraph shall prohibit you from participating in an investigation with a
state or federal agency if requested by the agency to do so;

                                                (iii)          that you will not make any statements
that are professionally or personally disparaging about, or adverse to, the
interests of the Company
(including its officers, directors, employees and consultants) including, but
not limited to, any statements that disparage any person, product, service,
finances, financial condition, capability or any other aspect of the business
of the Company, and that you
will not engage in any conduct which could reasonably be expected to harm
professionally or personally the reputation of the Company (including its officers, directors, employees and
consultants); likewise, the Company will not make any statements that are
professionally or personally disparaging about you;

                                                                (iv)          that a breach of this Section shall constitute a material
breach of this Agreement and, in addition to any other legal or equitable
remedy available to the Company, shall entitle the Company to recover any
monies paid to you under Section 2 of this Agreement.

                                                5.             Your Release of Claims.  You hereby agree and acknowledge that by
signing

this Agreement and
accepting the Separation Pay, and for other good and valuable consideration,
you are waiving your right to assert any and all forms of legal claims against
the Company1/ of any
kind whatsoever, whether known or unknown, arising from the beginning of time
through the date you execute this Agreement (the “Execution Date”).  Except as set forth below, your waiver and
release herein is intended to bar any form of legal claim, charge, complaint or
any other form of action (jointly referred to as “Claims”) against the Company
seeking any form of relief including, without limitation, equitable relief
(whether declaratory, injunctive or otherwise), the recovery of any damages, or
any other form of monetary recovery whatsoever (including, without limitation,
back pay, front pay, compensatory damages, emotional distress 

1/ For purposes of this
Agreement, the Company includes the Company and any of its divisions,
affiliates (which means all persons and entities directly or indirectly
controlling, controlled by or under common control with the Company),
subsidiaries and all other related entities, and its and their directors,
officers, employees, trustees, agents, successors and assigns.

 

 

3

 

damages, punitive
damages, attorneys fees and any other costs) against the Company, for any
alleged action, inaction or circumstance existing or arising through the
Execution Date.

 

                Without limiting
the foregoing general waiver and release, you specifically waive and release
the Company from any Claim arising from or related to your prior employment
relationship with the Company or the termination thereof, including, without
limitation:

 

**                                  Claims under any state or federal
discrimination, fair employment practices or other employment related statute,
regulation or executive order (as they may have been amended through the
Execution Date) prohibiting discrimination or harassment based upon any
protected status including, without limitation, race, national origin, age,
gender, marital status, disability, veteran status or sexual orientation.  Without limitation, specifically included in
this paragraph are any Claims arising under the Federal Age Discrimination in
Employment Act, the Civil Rights Acts of 1866 and 1871, Title VII of the Civil
Rights Act of 1964, the Civil Rights Act of 1991, the Equal Pay Act, the
Americans With Disabilities Act, the California Fair Employment and Housing
Act, the California Labor Code and any similar California or other state
statute.

 

**                                  Claims under any other state or federal
employment related statute, regulation or executive order (as they may have
been amended through the Execution Date) relating to wages, hours or any other
terms and conditions of employment.

 

**                                  Claims under any state or federal common
law theory including, without limitation, wrongful discharge, breach of express
or implied contract, promissory estoppel, unjust enrichment, breach of a
covenant of good faith and fair dealing, violation of public policy,
defamation, interference with contractual relations, intentional or negligent
infliction of emotional distress, invasion of privacy, misrepresentation, deceit,
fraud or negligence.

 

**                                  Any other Claim arising under state or
federal law.

 

In
addition to the forgoing, you hereby agree that you waive all rights under
section 1542 of the Civil Code of the State of California.  Section 1542 provides that:

 

A general release does not extend to claims which
the creditor does not know or suspect to exist in his favor at the time of
executing the release, which if known by him must have materially affected his
settlement with the debtor.

 

                Pursuant to section 1542, you acknowledge that you may hereafter
discover facts different from or in addition to facts which you now know or
believe to be true with regard to the released claims, and further agree that
this Agreement shall remain effective in all respects not withstanding such
discovery of new or different facts, including any such facts 

 

4

 

which may give rise to currently unknown claims,
including but not limited to any claims or rights which you may have under
section 1542 of the California Civil Code.

 

Notwithstanding the foregoing, this section does not
release the Company from any obligation expressly set forth in this
Agreement.  You acknowledge and agree
that, but for providing this waiver and release, you would not be receiving the
economic benefits being provided to you under the terms of this Agreement.

 

It is the Company’s
desire and intent to make certain that you fully understand the provisions and
effects of this Agreement.  To that end,
you have been encouraged and given the opportunity to consult with legal
counsel for the purpose of reviewing the terms of this Agreement.  Also, because you are over the age of 40, and
consistent with the provisions of the Age Discrimination in Employment Act (“ADEA”),
which prohibits discrimination on the basis of age, the Company is providing
you with twenty-one (21) days in which to consider and accept the terms of this
Agreement by signing below and returning it to Ebun Garner at the Company.  In addition, you may rescind your assent to
this Agreement if, within seven (7) days after you sign this Agreement, you
deliver by hand or send by mail (certified, return receipt and postmarked
within such 7 day period) a notice of rescission to Ebun Garner at the Company.
The eighth day following your signing of this Agreement is the Effective Date.

 

Also, consistent with the provisions of the Federal
Discrimination Laws, nothing in this release shall be deemed to prohibit you
from challenging the validity of this release under the federal age or other
discrimination laws (the “Federal Discrimination Laws”) or from filing a charge
or complaint of employment-related discrimination with the Equal Employment
Opportunity Commission (“EEOC”), or from participating in any investigation or
proceeding conducted by the EEOC. 
Further, nothing in this release or Agreement shall be deemed to limit
the Company’s right to seek immediate dismissal of such charge or complaint on
the basis that your signing of this Agreement constitutes a full release of any
individual rights under the Federal Discrimination Laws, or to seek restitution
to the extent permitted by law of the economic benefits provided to you under
this Agreement in the event that you successfully challenge the validity of
this release and prevail in any claim under the Federal Discrimination Laws.

 

                6
.            Entire
Agreement/Modification/Waiver/Choice of Law/Enforceability.  You acknowledge and agree that, except as set
forth herein, this Agreement supersedes any and all prior or contemporaneous
oral and/or written agreements between you and the Company, and sets forth the entire agreement between you and the Company.  No variations or modifications hereof shall
be deemed valid unless reduced to writing and signed by the parties
hereto.  This Agreement shall be deemed
to have been made in the State of California and shall be construed in
accordance with the laws of California without giving effect to conflict of law
principles.  Both parties hereby waive
and renounce in advance any right to a trial by jury in connection with such
legal action.  The provisions of this
Agreement are severable, and if for any reason any part hereof shall be found
to be unenforceable, the remaining provisions shall be enforced in full. 

 

5

By executing this Agreement, you are acknowledging that you
have been afforded sufficient time to understand the terms and effects of this
Agreement, that your agreements and obligations hereunder are made voluntarily,
knowingly and without duress, and that neither the Company nor its
agents or representatives have made any representations inconsistent with the
provisions of this Agreement.  The
parties agree that the last act necessary to render this Agreement effective is
for the Company to sign the Agreement, and that the Agreement may be signed on
one or more copies, each of which when signed will be deemed to be an original,
and all of which together will constitute one and the same Agreement.

 

 

(Continued
on Next Page)

 

 

6

 

                If the foregoing correctly sets forth our
understanding, please sign, date and return the enclosed copy of this Agreement
to Ebun Garner at the Company.

	
   

  	
  Sincerely,

  
	
   

  	
   

  
	
   

  	
  Alphatec Spine, Inc.

  
	
   

  	
   

  
	
   

  	
  By:
  /s/ Ronald G. Hiscock

  
	
   

  	
  Its:
  President and Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
  Alphatec Holdings, Inc.

  
	
   

  	
   

  
	
   

  	
  By:
  /s/ Ronald G. Hiscock

  
	
   

  	
  Its:
  President and Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
  Dated:
  January 26, 2006

  

 

Confirmed, Agreed and Acknowledged:

 

	
  /s/ Scott Palka

  	
   

  
	
  Scott Palka

  	
   

  
	
   

  	
   

  
	
  Dated: January 26, 2006

  	
   

  

 

7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}]]