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EXHIBIT 10.26    
    

 
 

SUPPLY AGREEMENT    
    

        THIS SUPPLY AGREEMENT (the "Agreement") is made and entered into as of this 21st day of January, 2002 (the "Effective Date"), by and between NuVasive, Inc.
("NuVasive"), a Delaware corporation having its principal offices at 10065 Old Grove Road, San Diego, California 92131; and Intermountain Tissue Center ("ITC"), a division of Ohio Valley
Tissue & Skin Center, non-profit organization, with said division having its principal place of business at 615 Arapeen Drive, Suite 105, Salt Lake City, Utah 84108, facsimile
number (801) 583-0957 and e-mail address jpierce@itcutah.org. ITC and NuVasive are sometimes individually referred to as a "Party" and together referred to herein as the
"Parties." 

RECITALS:  

        WHEREAS, ITC procures, processes and distributes certain human allograft tissues for transplantation; 

        WHEREAS, NuVasive desire to engage ITC to develop, process and distribute certain allograft bone for NuVasive, all subject to and in
accordance with specifications and other terms of this Agreement. 

        WHEREAS, ITC and NuVasive, in recognition of the need for and benefits that may result from the availability of human allograft bone
tissues for transplantation, desire to cooperate with each other in the provision, processing and distribution of such tissue. 

AGREEMENT:  

        NOW THEREFORE, in consideration of the mutual covenants and promises contained herein and for other good and valuable consideration (the receipt, adequacy and
legal sufficiency of which are hereby acknowledged) the parties hereto hereby agree as follows: 

1.    Processing and Transfer Responsibilities of ITC.    

        (A)    Processing.    ITC shall from time to time use its best efforts to process, package, label, store and transfer
to NuVasive the human allograft bone listed and more particularly described on Exhibit A hereto (the "Tissues"), as such Exhibit may be amended
by the Parties from time to time, in accordance with the specifications pertaining to the Tissues imposed by NuVasive set forth on Exhibit A (the
"Specifications"). 

        (B)    Change of Specifications.    NuVasive may modify, change or supplement the Specifications upon 60 days'
written notice to ITC or upon the mutual agreement of the parties; provided, however, that any requested modifications, changes or supplements shall not affect existing firm purchase orders unless
both parties agree to such changes. ITC shall notify NuVasive at least 30 days in advance of any change in any processing procedures or protocols. 

        (C)    Forecast and Inventory.    NuVasive shall provide ITC with a month-by-month forecast of
its anticipated Tissue requirements for each calendar year, beginning with the 2002 calendar year, not later than 30 days prior to the commencement of the applicable calendar year. Within
10 days of ITC's receipt of each calendar year forecast, ITC shall indicate whether it anticipates being able to meet such forecast. NuVasive may at any time update any such forecast for any
monthly period(s) beginning 30 days or more following the date NuVasive provides written notice of such update. Such update(s) may be contained in any writing, including a purchase order or an
MRP report. ITC shall use its best efforts to maintain in inventory a stock of a minimum amount of Tissue material equal to the amount forecast by NuVasive for the next month's forecasted volume. For
instance, if the forecast for January through March is 10, 12 and 14 units respectively, then ITC shall keep 12 units on the shelf in January (February's forecast) and 14 units in February (March's
forecast). ITC shall use FIFO (first in, first out) inventory procedures with respect to the Tissues so that older stock is used up first. 

 

        (D)    Inspection of Facilities.    NuVasive shall have the right to inspect the processing facility where the Tissues
are to be processed (the "Facility") between the hours of 9:00 a.m. and 5:00 p.m. on any business day upon giving no less than 24 hours written notice during the term of this
Agreement in order to ensure ITC's continuing compliance with the terms and conditions of this Agreement. The performance of NuVasive's obligations under this Agreement is expressly conditioned upon
NuVasive's ability to regularly inspect the Facility, NuVasive's ability to regularly review ITC's processing practices, and NuVasive's being reasonably satisfied that the Facility and ITC's
processing practices conform to all of requirements set forth in this Agreement and imposed by Governing Law (as defined in Section 4(A)) and all applicable regulations. 

        (E)    Milling Machine.    Subsequent to the execution of this Agreement, but prior to any obligation to perform on
the part of ITC, NuVasive shall provide to ITC at no cost to ITC a milling machine (the "Machine") for use by ITC during the term of this Agreement in the processing of the Tissues and for other use
by ITC in its operations generally. ITC shall maintain the Machine in good working condition while in ITC's use, care or possession, shall perform all maintenance and repairs required to keep the
Machine in such condition, and hereby assumes all responsibility and liability for any loss, theft or destruction of the Machine prior to its return to NuVasive, as well as any damage, injury or harm
caused by the Machine or ITC's use thereof prior to its return to NuVasive. Upon any termination of this Agreement, ITC shall promptly return to NuVasive the Machine in good working condition,
ordinary wear and tear excepted. 

2.    Responsibilities of NuVasive.    

        (A)    Payments.    NuVasive shall promptly pay for the Tissues shipped to it as per the terms of paragraph 3
below. 

        (B)    Specifications.    NuVasive shall provide the written Specifications to ITC in sufficient detail to enable ITC
to process the Tissues as efficiently as possible. 

        (C)    Inspection of Facilities.    ITC shall have the right to inspect the handling and storage facility where the
Tissues are to be stored by NuVasive pending further shipment by NuVasive (the "NuVasive Facility") between the hours of 9:00 a.m. and 5:00 p.m. on any business day upon giving no less
than 24 hours written notice during the term of this Agreement in order to ensure NuVasive's continuing compliance with the terms and conditions of this Agreement. The performance of ITC's
obligations under this Agreement is expressly conditioned upon ITC's ability to regularly inspect the NuVasive Facility, ITC's ability to regularly review NuVasive's handling and storing practices,
and 1TC's being reasonably satisfied that the NuVasive Facility and NuVasive's handling and storage practices conform to all of requirements set forth in this Agreement and imposed by Governing Law
(as defined in Section 12) and all applicable regulations. 

3.    Professional Fees, Purchase Orders, and Terms of Payment.    

        (A)    Professional Fees.    In consideration of services performed by ITC and the Tissues to be sold by ITC, NuVasive
shall pay to ITC per particular type of Tissue as set forth in detail on Exhibit A attached hereto and made a part hereof. ITC will invoice NuVasive for all Tissues shipped to NuVasive as of
the date of each shipment and payment from NuVasive shall be due within 30 days from the date of invoice. 

        (B)    Purchase Orders and Terms of Payment.    NuVasive shall place orders for Tissues by transmitting a written
purchase order via facsimile, e-mail or First Class Mail to ITC at the address, e-mail address or facsimile number identified in the Preamble of this Agreement. The terms and
conditions set forth in such purchase orders shall apply to ITC's fee-for-service to NuVasive and delivery of the Tissues to the end users of the Tissues (the "Customers")
designated by NuVasive, unless any such term or condition conflicts with any term or condition of this Agreement, in which event the terms and conditions of this Agreement shall govern. Except as
otherwise set forth under this 

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Agreement,
payment for the Tissues shall be due to ITC no later than 30 days following date of shipment to NuVasive. NuVasive shall be responsible for invoicing hospitals and collecting payment
from its Customers. NuVasive's obligation to pay ITC shall not be dependent upon to NuVasive's actual collection of revenues from its Customers. 

4.    Delivery and Title.    

        (A)    Timing and Place of Delivery.    The Parties acknowledge and agree that, ITC will ship the Tissues directly to
NuVasive and that NuVasive will maintain an inventory of such Tissues for distribution by NuVasive to its customers. ITC shall use its best efforts to ship the Tissues within twenty-four
(24) hours of the time the purchase order is received if NuVasive requests expedited delivery. If expedited delivery is not requested, ITC shall ship the Tissues in accordance with the time
period specified in the purchase order. ITC shall provide adequate insurance for the Tissues until such Tissues(s) have been received by NuVasive. Title and risk of loss and damage with respect to all
Tissues purchased by NuVasive under this Agreement shall remain with ITC until NuVasive has received the Tissues at its designated address. 

        (B)    Packaging.    All Tissues shall be suitably packed for shipment in containers adequate to insure safe arrival
of the Tissues at NuVasive's designated delivery destination. ITC shall supply all packaging and labeling materials for the Tissues; provided, however, such packaging and labeling must be in
accordance with specifications and format provided by NuVasive. ITC shall mark all containers with necessary shipping and handling information, purchase order numbers and date of shipment. An itemized
packing list shall accompany each shipment, which will also contain customer purchase order number(s), catalog numbers, and serial numbers of the Tissues. 

        (C)    Defective Products/Return.    Within five days of receipt NuVasive will inspect the Tissues in order to
determine their suitability and their compliance with the terms of this Agreement and Governing Law. If NuVasive determines within such limited time that any Tissues do not comply with the
Specifications, Governing Law, or any representation, warranty or other provisions of this Agreement (any such Tissue, a ("Returned Tissue"), NuVasive shall notify ITC of the Returned Tissue, identify
the defects in the Returned Tissue and return the same to ITC at ITC's expense. If at any time the Parties agree, are deemed to agree, or a nonappellable order determines, that any Returned Tissue
does not comply with the Specifications, Governing Law, or any representation, warranty or other provisions of this Agreement, such Returned Tissue shall be deemed to be a "Defective Tissue". ITC
shall have a period of thirty (30) days from receipt of any Returned Tissue during which to evaluate and respond to NuVasive's claim that the Tissue is a Defective Tissue. If NuVasive has not
received a written notice of disagreement from ITC by the end of such thirty (30) day period, the Returned Tissue shall be deemed to be a Defective Tissue. If NuVasive receives a written notice
of disagreement by the end of such thirty (30) day period, the Parties agree to negotiate in good faith regarding whether and/or to what extent the Returned Tissue is a Defective Tissue for a
period of thirty (30) days from NuVasive's receipt of such notice prior to commencing any legal action or pursuing any other remedy with respect to the Returned Tissue. With respect to any
Tissues sold or supplied under this Agreement, ITC shall be prepared to promptly address corrective actions and determine root causes of defects. ITC will report in writing (or by form supplied by
NuVasive) how the root causes have been addressed and corrected within 30 days of being notified of the defect. 

        (D)    Payment of Fee-for-Service of Returned Product.    If NuVasive returns to ITC a
Returned Tissue prior to paying for such Returned Tissue, NuVasive shall have no obligation to pay for the Returned Tissue unless and until the Parties agree or a nonappellable order determines that
the Tissue was not a Defective Tissue. If NuVasive returns a Returned Tissue after paying for such Returned Tissue, NuVasive may, in its discretion (i) offset the fees paid for the Returned
Tissue against any yet unpaid invoice received from ITC, or (ii) require ITC to reimburse NuVasive for the fees paid with respect to the Returned Tissue. If following either (i) or
(ii) above, the Returned Tissue is determined 

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by
agreement of the Parties or a nonappellable order not to be a Defective Tissue, NuVasive shall promptly pay to ITC the fees for the Returned Tissue. 

5.    ITC's Representations, Warranties, and Covenants.    In addition to the other matters set forth herein, ITC hereby represents,
warrants, and covenants, on a continuing basis, to NuVasive as follows: 

        (A)    Compliance with Laws and Specifications.    ITC shall comply fully with the American Association of Tissue
Banks ("AATB") standards and all federal and state laws, regulations, rules and orders (including without limitation those of the Federal Food and Drug Administration (the "FDA")) governing the
recovery of human tissues for, processing, storage, packaging, shipping, labeling and aspects of the production and handling of the Tissues ("Governing Laws"), including, without limitation, the Good
Tissue Banking Practices and labeling requirements contained in 21 C.F.R. Parts
1270 and 1271. ITC represents and warrants that all Tissues will be recovered, processed, stored, packaged, shipped, labeled and otherwise produced and handled in accordance with all applicable
federal and state laws and regulations, AATB standards applicable to human tissues, as well as the Specifications. 

        (B)    Approvals.    ITC shall obtain and maintain, at its cost, all governmental, administrative and other approvals,
licenses, permits and other authorizations and registrations necessary for the operation and conduct of its business and performance of its obligations under this Agreement, including, without
limitation, its accreditation from the American Association of Tissue Banks, FDA tissue establishment registration and listing and all required state licenses. 

        (C)    Due Authorization; Validity.    The execution, delivery and performance of this Agreement have been duly
authorized by all necessary corporate or other action on the part of ITC, and upon execution and delivery, this Agreement will constitute a valid and binding obligation of ITC enforceable against ITC
in accordance with its terms except as enforceability may be limited by bankruptcy, insolvency and other similar laws affecting claims and rights generally or by general equitable principles. 

        (D)    Litigation.    ITC has not been served with or otherwise notified in writing of any judgment, suit, claim,
action, arbitration, legal, administrative, or other proceeding or government investigation, nor to ITC's knowledge are any such actions pending or threatened, with respect to the Tissues or ITC's
assets or business which would materially adversely affect ITC's ability to conduct business or to perform its obligations under this Agreement. 

6.    NuVasive's Representations, Warranties and Covenants.    

        (A)    Compliance with Laws and Specifications.    NuVasive shall comply fully with the American Association of Tissue
Banks ("AATB") standards and all federal and state laws, regulations, rules and orders (including without limitation those of the Federal Food and Drug Administration (the "FDA")) governing the
recovery of human tissues for, storage, packaging, shipping, labeling and aspects of the handling of the Tissues ("Governing Laws"), including, without limitation, the Good Tissue Banking Practices
and labeling requirements contained in 21 C.F.R. Parts 1270 and 1271. NuVasive represents and warrants that all Tissues will be stored, packaged, shipped, labeled and otherwise handled in accordance
with all applicable federal and state laws and regulations, AATB standards applicable to human tissue, as well as the Specifications. 

        (B)    Approvals.    NuVasive shall obtain and maintain, at its cost, all governmental, administrative and other
approvals, licenses, permits and other authorizations and registrations necessary for the operation and conduct of its business and performance of its obligations under this Agreement, including,
without limitation, FDA tissue establishment registration and listing and all required state licenses. 

        (C)    Due Authorization; Validity.    The execution, delivery and performance of this Agreement have been duly
authorized by all necessary corporate or other action on the part of NuVasive, and upon 

4

 

execution
and delivery, this Agreement will constitute a valid and binding obligation of NuVasive enforceable against NuVasive in accordance with its terms except as enforceability may be limited by
bankruptcy, insolvency and other similar laws affecting claims and rights generally or by general equitable principles. 

        (D)    Litigation.    NuVasive has not been served with or otherwise notified in writing of any judgment, suit, claim,
action, arbitration, legal, administrative, or other proceeding or government investigation, nor to NuVasive's knowledge are any such actions pending or threatened, with respect to the Tissues or
NuVasive's assets or business which would materially adversely affect NuVasive's ability to conduct business or to perform its obligations under this Agreement. 

        (E)    Specifications.    The Specifications as set forth on Exhibit A and as amended from time to time by
NuVasive do not infringe upon the patent or other property rights of third party and NuVasive shall defend against any such claims asserted by such third party against ITC. 

7.    Indemnification.    

        (A)  Each
party (the "Indemnifying Party") shall indemnify, defend and hold harmless the other (The "Indemnified Party"), its shareholders, subsidiaries and affiliates, and
its and their respective officers, directors, members, trustees, agents, employees and customers, and their successors and assigns, from and against any and all claims, demands, actions, liabilities,
fees, suits, causes of action, damages, penalties, recoveries and deficiencies, costs and expenses (including, without limitation, attorneys' fees) (collectively "Damages") which arise out of or
relate to (1) any breach by the Indemnifying Party of any of its representations, covenants or warranties set forth in this Agreement, or (2) any negligence by the Indemnifying Party
arising out of, in connection with or resulting from the processing, supply, or transfer of any Tissue. Such indemnification shall not be limited to claims brought by third parties. 

8.    Insurance and Notice of Claims.    

        (A)  ITC
represents and warrants that it is currently insured and covenants that at all times during the term of this Agreement it will maintain a comprehensive general
liability insurance policy (including products liability coverage and payment of attorneys fees coverage) with a financially sound and reputable insurer which is sufficient to adequately protect
against the risks associated with its ongoing business, including the risks which might possibly arise in connection with the transactions contemplated by this Agreement, and including without
limitation, professional liability insurance, with minimum coverage amounts of *** per occurrence and *** in the aggregate. ITC agrees to provide NuVasive a copy of its insurance policy upon request
and to provide thirty (30) days advanced written notice prior to terminating any such policy. 

        (B)  NuVasive
represents and warrants that it is currently insured and covenants that at all times during the term of this Agreement it will maintain a comprehensive general
liability insurance policy (including products liability coverage and payment of attorneys fees coverage) with a financially sound and reputable insurer which is sufficient to adequately protect
against the risks associated with its ongoing business, including the risks which might possibly arise in connection with the transactions contemplated by this Agreement, and including without
limitation, professional liability insurance, with minimum coverage amounts of *** per occurrence and *** in the aggregate. NuVasive agrees to provide ITC a copy of its insurance policy upon request
and to provide thirty (30) days advanced written notice prior to terminating any such policy. 

	***
	Material
has been omitted pursuant to a request for confidential treatment. 

        (C)    Notification of Claims.    Each of the Parties shall promptly notify the other Party after becoming aware of
any liability claims regarding the Tissues and any customer complaints or suspected 

5

 

adverse
reactions or outcomes concerning the Tissues. Each party agrees to coordinate the evaluation of such events. 

9.    Confidentiality.    

        (A)    Confidential Information.    The "Confidential Information" of any Party shall mean any information of a
confidential or proprietary nature of such Party and shall include, without limitation, all business, strategy, pricing and marketing information of such Party, all patents, copyrights, trademarks,
service marks, trade dress and other proprietary rights and applications for or with respect to any of the foregoing of such Party, and all discoveries, inventions, improvements, documents,
know-how, proprietary rights and ideas related to any process, method, formula, machine, device, manufacture, composition of matter, plan or design owned or developed by such Party,
whether patentable or not, that the other Party acquires under, through, as a result of or during the term of this Agreement. Notwithstanding the foregoing, a Party's Confidential Information shall
not include any information which: (i) has been published or otherwise becomes a matter of public knowledge by any means other than the other Party's default in the observance or performance of
any term or provision of this Agreement or any other obligation on its part to be observed and performed; (ii) was known to the other Party at the time of such disclosure without a requirement
of confidentiality, as evidenced by its written business records; (iii) is at any time disclosed to the other Party by any person or entity not a party hereto whom the other Party believes,
after reasonable inquiry, has the right to so disclose the same; or (iv) is required to be disclosed in compliance with any law governmental regulation, or court order, provided that the Party
disclosing the same shall notify the Party to which such information belongs ten (10) days in advance of any such disclosure, if feasible. 

        (B)    NuVasive's Confidential Information.    

          (i)  ITC
hereby confirms that NuVasive has and shall retain the sole right, title and interest in and to NuVasive's Confidential Information. Subject to the conditions,
restrictions and obligations contained in this Agreement, NuVasive hereby grants to ITC a limited, non-exclusive, worldwide, royalty free license (without the right to sublicense or
transfer) to use NuVasive's Confidential Information solely for the purposes of performing ITC's obligations under this Agreement. No other rights or licenses are granted by NuVasive to ITC relating
to NuVasive's Confidential Information or any other proprietary rights of NuVasive. Upon the termination or expiration of this Agreement, the licenses granted herein by NuVasive shall terminate, and
ITC shall cease all further use of NuVasive's Confidential Information or any other proprietary rights of NuVasive except with respect to Tissues that conform to the Specifications and which were
being held by ITC in its inventory at the time of termination. Such inventory may be sold by ITC after the expiration of this Agreement in the ordinary course of its business. 

         (ii)  ITC
shall maintain NuVasive's Confidential Information in confidence and shall not disclose same to any person or entity not a party hereto or use the same for its
benefit or the benefit of any person or entity other than NuVasive. ITC shall maintain complete and accurate written records of NuVasive's Confidential Information, mark same with such legends as
NuVasive may reasonably direct, and promptly deliver the same to NuVasive upon written request upon the expiration or termination hereof or at such other times as NuVasive may request, except that in
any such event, counsel for ITC may retain one copy thereof solely for use should any dispute between the Parties arise. In addition, both during the term and after the expiration or termination of
this Agreement, ITC shall take such other reasonable actions as NuVasive may request to enable NuVasive to publish, protect by litigation or otherwise, or further its title to any of NuVasive's
Confidential Information. 

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        (C)    ITC's Confidential Information.    

          (i)  NuVasive
hereby confirms that ITC has and shall retain the sole right, title and interest in and to ITC's Confidential Information. Subject to the conditions,
restrictions and obligations contained in this Agreement, ITC hereby grants to NuVasive a limited, non-exclusive, worldwide, royalty free license to use ITC's Confidential Information
solely for the purposes of exercising NuVasive's rights and performing NuVasive's obligations under this Agreement and using the Tissues for their intended purpose. No other rights or licenses are
granted by ITC to NuVasive relating to ITC's Confidential Information or any other proprietary rights of ITC. Upon the termination or expiration of this Agreement, the licenses granted herein by ITC
shall terminate, and NuVasive shall cease all further use of ITC's Confidential Information or any other proprietary rights of ITC except with respect to Tissues that conform to the Specifications and
which were being held by NuVasive in its inventory at the time of termination. Such inventory may be sold by NuVasive after the expiration of this Agreement in the ordinary course of its business. 

         (ii)  NuVasive
shall maintain ITC's Confidential Information in confidence and will not disclose same to any person or entity not a party hereto or use same for its benefit
or the benefit of any person or entity other than ITC. NuVasive shall maintain complete and accurate written records of ITC's Confidential information, mark the same with such legends as ITC may
reasonably direct, and promptly deliver the same to ITC upon written request upon the expiration or termination hereof or at such other times as ITC may request, except that in any such event, counsel
for NuVasive may retain one copy thereof solely for use should any dispute between the Parties arise. In addition, both during the term and after the expiration or termination of this Agreement,
NuVasive shall take such other reasonable actions as ITC may request to enable ITC to publish, protect by litigation or otherwise, or further its title to any of ITC's Confidential Information. 

10.    Term and Termination.    

        (A)    Term.    The term of this Agreement shall commence on the Effective Date and continue for a period of three
years following the Effective Date and, unless earlier terminated as provided herein, shall automatically renew for an additional one-year term on each anniversary of the Effective Date
unless either party gives written notice to terminate 60 days prior to completion of the first three year term or additional one-year anniversary date. 

        (B)    Early Termination.    This Agreement may be terminated as otherwise provided in this Agreement, and as follows: 

          (i)  By
either party if the other party fails to perform or otherwise breaches any of its obligations hereunder, by giving notice of its intent to terminate and stating the
grounds therefore. The party receiving such notice shall have thirty (30) days from the receipt thereof to cure the failure or breach, at which time this Agreement shall terminate if such
failure or breach has not been cured. In no event, however, shall such notice of intention to terminate be deemed to waive any rights to damages or any
other remedy which the party giving notice of breach may have as a consequence of such failure or breach. 

         (ii)  By
NuVasive, if ITC sells all or substantially all of its assets or securities to another person or entity or merges into another person or entity, which termination
shall not be unreasonably exercised by NuVasive. 

        (C)    Effect of Termination.    If this Agreement is terminated, the parties shall be released from all obligations,
duties imposed or assumed hereunder, except as otherwise provided in this Agreement. Termination of this Agreement, for whatever reason, shall not affect the obligation of either party to make
payments for which such party is liable prior to such termination, any remedies of NuVasive 

7

 

under
Section 5, any Party's indemnification obligations under Section 7 or the obligations of confidentiality specified in Section 9 hereof. 

11.    Notices.    All notices required or permitted to be given under this Agreement shall be in writing and shall be addressed to
the Party at the address and/or facsimile number first set forth above (which either party may change at any time upon five days written notice). Notices may be served by certified or registered mail,
postage paid, with return receipt requested, by private courier, prepaid, by telex, facsimile, or other telecommunication device capable of transmitting or creating a written record, or personally.
Mailed notices shall be deemed delivered five days after mailing, properly addressed. 

12.    Governing Law; Venue.    The parties intend that this Agreement shall be governed by and construed in accordance with the
laws of the state of Utah applicable to contracts made and wholly performed within Utah by persons domiciled in Utah and exclusive of choice of law rules. The parties hereby consent and submit to the
exclusive jurisdiction and venue of State of Utah and federal courts located in the Salt Lake County, State of Utah for any litigation arising out of this Agreement. 

13.    Integration; Amendment.    This Agreement and the other documents contemplated hereby constitute the entire agreement of the
parties relating to the subject matter hereof. There are no promises, terms, conditions, obligations, or warranties other than those contained in this Agreement or in such other agreements and
documents. No modification of this Agreement (by purchase order, invoice or otherwise (except as provided in Section 2(C)) shall be of any force or effect unless such modification is in
writing, refers specifically to this Agreement, contains language indicating it is a modification of this Agreement and is signed the party alleged to be bound thereby. 

14.    Waiver.    No provision of this Agreement shall be deemed to have been waived unless such waiver is in writing signed by the
waiving Party. No failure by any Party to insist upon the strict performance of any provision of this Agreement, or to exercise any right or remedy consequent upon a breach thereof, shall constitute a
waiver of any such breach of such provision or of any other provision. No waiver of any provision of this Agreement shall be deemed a waiver of any other provision of this Agreement or a waiver of
such provision with respect to any subsequent breach, unless expressly provided in writing. 

15.    Attorney's Fees.    If any suit or action arising out of or related to this Agreement is brought by any Party, the prevailing
Party shall be entitled to recover the costs and fees (including reasonable attorneys' fees) incurred by such Party in such suit or action, including without limitation any post-trial or
appellate proceeding. 

16.    Exhibits.    Each Exhibit to this Agreement shall be considered a part hereof as if set forth herein in full. 

17.    Continuing Agreement; Binding Effect.    This Agreement is a continuing agreement and shall remain in full force and effect
until all obligations of the parties hereunder have been fully performed or otherwise discharged, and shall bind and inure to the benefit of, and be enforceable by, the Parties hereto and their
respective successors, heirs, and permitted assigns. 

18.    Assignment.    No Party may assign this Agreement, in whole or in part, without the written consent of the other party. 

19.    No Third-Party Beneficiary Rights.    No person not a party to this Agreement is an intended beneficiary of this Agreement,
and no person not a party to this Agreement shall have any right to enforce any term of this Agreement. 

20.    Counterparts.    This Agreement may be executed in any number of counterparts, all of which when taken together shall
constitute one agreement binding on all parties, notwithstanding that all parties are not signatories to the same counterpart. 

8

 

21.    Invalidity.    The invalidity or unenforceability of any term or provision of this Agreement shall not affect the other terms
and provisions, and such invalid or unenforceable term or provision will, in all events, be construed and enforced to the fullest extent permissible under applicable law. 

22.    Force Majeure.    Neither Party shall be responsible for any loss or damage resulting from any delay in performing or failure
to perform any provisions of this Agreement, so long as any such failure or delay arises from a fire, explosion, flood, storm, earthquake, tidal wave, war, military operation, national emergency,
civil commotion, strike or other difference with workers or unions that is beyond the control of the Parties hereto. 

23.    Relationship.    The Parties are acting independently and shall at all times act as independent contractors of each other in
the manufacture and sale of the Products and are not partners, joint venturers, agents, or legal representatives of each other, for any purpose. Neither Party shall have any right or power to act for
or bind the other, in any respect, to pledge its credit, to accept any service of process upon it, or to receive any notices of any nature whatsoever. 

24.    Publicity.    Neither Party shall initiate any publicity, news release or other announcement, written or oral, whether to the
public or press, to stockholders or otherwise, relating to this Agreement, to any amendment hereto or to performance hereunder without the prior written consent of the other, except as may be
required, in the judgment of either parties legal counsel, to comply with the requirements of any applicable law, including, but not limited to, any disclosures required by state or federal securities
laws. 

        IN
WITNESS WHEREOF, the parties hereto have caused this Supply Agreement to be duly executed and effective as of the date and year first written above. 

	"NuVasive"	 	NuVasive, Inc.,

a Delaware corporation
	

 	
 	

By:	
 	

/s/ illegible

	 	 	Its:	 	President and CEO

	

"ITC"	
 	

Intermountain Tissue Center; a Non-profit Corporation
	

 	
 	

By:	
 	

/s/ illegible

	 	 	Its:	 	Executive Director

9

 

 Exhibit A  

	 
	 	Products

	 
	 	NuVasive

Price
	 	ITC

Price

	Cervical Allograft	 	***	 	***
	Biportal Lumbar Allograft	 	***	 	***
	Uniportal Lumbar Allograft	 	***	 	***

	***
	Material
has been omitted pursuant to a request for confidential treatment. 

10

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EXHIBIT 10.26

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EXHIBIT 10.37    
    

        THIS
WARRANT AND THE SECURITIES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR ANY APPLICABLE STATE SECURITIES
LAWS, AND MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED UNLESS (A) SUCH TRANSFER IS MADE PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT AND IN
COMPLIANCE WITH ANY APPLICABLE STATE SECURITIES LAW OR (B) THE HOLDER SHALL DELIVER TO THE ISSUER AN OPINION OF COUNSEL IN FORM AND SUBSTANCE REASONABLY ACCEPTABLE TO THE ISSUER THAT SUCH
TRANSFER IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND OF ANY APPLICABLE STATE SECURITIES LAW. 

NUVASIVE, INC. 

Common
Stock Purchase Warrant 

CS
- 1 

	

To Subscribe for and Purchase

50,000 Shares of Common Stock of

NuVasive, Inc.	
 	

January 16, 2002

        This
certifies that, for value received, WWIP LLC, a Delaware limited liability company ("WWIP"), or its registered assigns (the "Holder"), is entitled to subscribe for and purchase from
NuVasive, Inc., a Delaware corporation (the "Company"), up to 50,000 shares (subject to adjustment as hereinafter provided) (each, a "Warrant Share" and collectively, the "Warrant Shares") of
fully paid and non-assessable Common Stock of the Company (the "Common Stock"), subject to the provisions and upon the terms and conditions hereinafter set forth, at an exercise price of
$0.25 per share (such price as from time to time to be adjusted as provided herein is called the "Exercise Price"), at or prior to 5:00 p.m. California time on January 16, 2012 (the
"Exercise Period). This Warrant and any Warrant subsequently issued upon exchange or transfer hereof are hereinafter collectively called the "Warrant." This Warrant is issued to the Holder in
connection with that certain Clinical Advisor and Development Agreement by and between the Holder and the Company dated January 16, 2002 (the "Development Agreement"). 

        Section 1.    Vesting in Warrant Shares.    Holder shall acquire a vested interest in
(i) twenty-five percent (25%) of the Warrant Shares upon WWIP's completion of one (1) year of Consulting Services (as defined in the Development Agreement) measured from the
date hereof and (ii) the balance of the Warrant Shares in a series of thirty-six (36) successive equal monthly installments upon WWIP's completion of each additional month of
Consulting Services over the thirty-six (36)-month period measured from the first anniversary of the date hereof. In no event shall any additional Warrant Shares vest after WWIP's
cessation of Consulting Services; provided, however, WWIP's Consulting Services shall not cease until WWIP fails to make itself or its employees available to perform such Consulting Services. 

        Section 2.    Exercise of Warrant.    This Warrant may only be exercised for vested shares ("Vested Warrant
Shares"). This Warrant is exercisable with respect to any or all of the Vested Warrant Shares, at the option of the Holder, at any time and from time to time during the Exercise Period, upon surrender
of this Warrant to the Company together with (a) a duly completed Notice of Exercise, in the form attached hereto as Exhibit A, and
(b) payment of an amount equal to the Exercise Price multiplied by the number of Vested Warrant Shares with respect to which this Warrant is being exercised as provided in Section 3. If
the Holder exercises this Warrant with respect to less than all of the Warrant Shares represented by this Warrant, the Company shall cancel this Warrant upon the 

 

surrender
thereof and shall execute and deliver to the Holder a new Warrant for the balance of the Warrant Shares. 

        Section 3.    Payment.    Payment of the Exercise Price for the Vested Warrant Shares with respect to which
this Warrant is being exercised shall be made, at the option of the Holder, (a) by delivery of cash
payable by wire transfer of immediately available funds, (b) by the delivery of a cashier's or certified check, or (c) by any combination of items (a)-(b). 

        Section 4.    Mechanics of Exercise.    In the event of any exercise of this Warrant, a certificate or
certificates for the shares of Common Stock so purchased, registered in the name of the Holder, or its nominee or other party designated in the Notice of Exercise by the Holder hereof, shall be
delivered to the Holder within thirty (30) business days after the date on which this Warrant shall have been so exercised. The person in whose name any certificate for shares of Common Stock
is issued upon exercise of this Warrant shall for all purposes be deemed to have become the holder of record of such shares on the date on which this Warrant was surrendered and payment of the Warrant
is made, except that, if the date of such surrender and payment is a date on which the stock transfer books of the Company are closed, such person shall be deemed to have become the holder of such
shares at the close of business on the next succeeding date on which the stock transfer books are open. No payment or adjustment shall be made upon any exercise on account of any cash dividends on the
Common Stock issued upon such exercise. Fractional shares shall be treated as set forth in Section 9 hereof. 

        Section 5.    Representations and Warranties of the Holder.    The Holder hereby represents and warrants to and
for the benefit of the Company, with knowledge that the Company is relying thereon in issuing this Warrant to the Holder, as follows: 

        (a)    Purchase Entirely for Own Account.    By the Holder's execution of this Warrant, the Holder hereby confirms
that this Warrant, and the Warrant Shares issuable upon exercise of this Warrant (collectively, the "Securities") shall be acquired for investment for the Holder's own account, not as a nominee or
agent, and not with a view to the resale or distribution of any part thereof, and that the Holder has no present intention of selling, granting any participation in, or otherwise distributing the
same. By executing this Warrant, the Holder further represents that the Holder does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant
participation to such person or to any third person, with respect to any of the Securities. The Holder represents that it has full power and authority to enter into this Warrant. 

        (b)    Investment Experience.    The Holder is an investor in securities of companies in the development stage and
acknowledges that it is able to fend for itself, can bear the economic risk of its investment and has such knowledge and experience in financial or business matters that it is capable of evaluating
the merits and risks of the investment in the Securities. 

        (c)    Accredited Investor.    The Holder is an "accredited investor" within the meaning of Securities and Exchange
Commission Rule 501 of Regulation D, as now in effect. 

        (d)    Restricted Securities.    The Holder understands that the Securities it is and shall be purchasing are
characterized as "restricted securities" under the federal securities laws inasmuch as they are being acquired from the Company in a transaction not involving a public offering and that under such
laws and applicable regulations such securities may be resold without registration under the Act, only in certain limited circumstances. In this connection, the Holder represents that it is familiar
with Rule 144 promulgated under the Act, as now in effect, and understands the resale limitations imposed thereby and by the Act. 

2

 

        (e)    Legends.    The Holder understands that the certificates evidencing the Securities may bear one or all of the
following or other legends: 

          (i)  "The
securities evidenced by this certificate have not been registered under the Securities Act of 1933, as amended (the "Act") or the securities laws of any state of
the United States. The securities evidenced by this certificate may not be offered, sold or transferred for value directly or indirectly, in the absence of such registration under the Act and
qualification under applicable state laws, or pursuant to an exemption from registration under the Act and qualification under applicable state laws, the availability of which is to be established to
the reasonable satisfaction of the Company." 

         (ii)  Any
legend required by the laws of the State of California, including any legend required by the California Department of Corporations and Sections 417 and 418 of the
California Corporations Code. 

        (iii)  Any
legend required to be placed on the Securities purchased by investors in any future sale or offering of any Securities, but only to the extent that such legend is
required to be placed on all other shares of Common Stock. 

        (iv)  Any
legend required by any future stockholders, voting or other agreement to which the Holder or Securities may be subject, but only to the extent that such legend is
required to be placed on all other shares of Common Stock. 

        Section 6.    Restrictions on Disposition.    Without in any way limiting the representations set forth in
Section 5 above, the Holder further agrees not to make any disposition of all or any portion of the Securities unless and until the transferee has agreed in writing for the benefit of the
Company to be bound by this Section 6, and in addition thereto, one of the following conditions is satisfied: 

        (a)    Securities Registered.    There is then in effect a registration statement under the Act covering such proposed
disposition and such disposition is made in accordance with such registration statement. 

        (b)    Registration Not Required.    The Holder shall have (i) notified the Company of the proposed disposition
and shall have furnished the Company with a detailed statement of the circumstances surrounding the proposed disposition and (ii) if reasonably requested by the Company, furnished the Company
with an opinion of counsel, satisfactory to the Company, that such disposition will not require registration of the Securities under the Act; provided,
however, that the Company will not require opinions of counsel for transactions made pursuant to Rule 144, except in unusual circumstances. 

        Section 7.    Market Stand-Off.    

        (a)    Market-Standoff Period; Agreement.    Holder hereby agrees that, during the period of duration (such period not
to exceed 180 days) specified by the Company and an underwriter of Common Stock or other securities of the Company, following the effective date of a registration statement of the Company filed
under the Act, it shall not, to the extent requested by the Company and such underwriter, directly or indirectly sell, offer to sell, contract to sell (including, without limitation, any short sale),
grant any option to purchase or otherwise transfer or dispose of (other than to donees who agree to be similarly bound) any securities of the Company held by it at any time during such period except
Common Stock included in such registration. 

        (b)    Stop-Transfer Instructions.    In order to enforce the foregoing covenants, the Company may impose
stop-transfer instructions with respect to the securities of each Holder (and the securities of every other person subject to the restrictions in this Section 7). 

3

 

        (c)    Transferees Bound.    Each Holder agrees that prior to the Company's initial public offering it will not
transfer securities of the Company unless each transferee agrees in writing to be bound by all of the provisions of this Section 7. 

        Section 8.    Adjustment.    The number of shares of Common Stock (or any shares of stock or other securities
which may be) issuable upon the exercise of this Warrant and the Exercise Price hereunder shall be subject to adjustment from time to time upon the happening of certain events, as follows: 

        (a)    Subdivisions, Combinations and Other Issuances.    If the Company shall at any time prior to the expiration of
this Warrant subdivide its Common Stock, by split-up or otherwise, or
combine its Common Stock, or issue additional shares of its Common Stock as a dividend with respect to any shares of its Common Stock, the number of Warrant Shares issuable on the exercise of this
Warrant shall forthwith be proportionately increased in the case of a subdivision or stock dividend, or proportionately decreased in the case of a combination. Appropriate adjustments shall also be
made to the Exercise Price payable per share, but the aggregate Exercise Price payable for the total number of Warrant Shares purchasable under this Warrant (as adjusted) shall remain the same. Any
adjustment under this Section 8(a) shall become effective at the close of business on the date the subdivision or combination becomes effective, or as of the record date of such dividend, or in
the event that no record date is fixed, upon the making of such dividend. 

        (b)    Reclassification, Reorganization and Consolidation.    In case of any reclassification, capital reorganization,
or change in the Common Stock of the Company (other than as a result of a subdivision, combination, or stock dividend provided for in Section 8(a) above), then, as a condition of such
reclassification, reorganization, or change, lawful provision shall be made, and duly executed documents evidencing the same from the Company or its successor shall be delivered to the Holder, so that
the Holder shall have the right at any time prior to the expiration of this Warrant to purchase, at a total price equal to that payable upon the exercise of this Warrant, the kind and amount of shares
of stock and other securities and property receivable in connection with such reclassification, reorganization, or change by a holder of the same number of shares of Common Stock as were purchasable
by the Holder immediately prior to such reclassification, reorganization, or change. In any such case appropriate provisions shall be made with respect to the rights and interest of the Holder so that
the provisions hereof, including the provisions set forth in Section 1, shall thereafter be applicable with respect to any shares of stock or other securities and property deliverable upon
exercise hereof, and appropriate adjustments shall be made to the Exercise Price per share payable hereunder, provided the aggregate Exercise Price shall remain the same. 

        (c)    Notice of Adjustments and Record Dates.    The Company shall promptly notify the Holder in writing of each
adjustment or readjustment of the Exercise Price hereunder and the number of shares of Common Stock (or any shares of stock or other securities which may be) issuable upon the exercise of this
Warrant. Such notice shall state the adjustment or readjustment and show in reasonable detail the facts on which that adjustment or readjustment is based. In the event of any taking by the Company of
a record of the holders of Common Stock for the purpose of determining the holders thereof who are entitled to receive any dividend or other distribution, the Company shall notify the Holder in
writing of such record date at least ten (10) days prior to the date specified therein. 

        (d)    No Impairment.    The Company shall not avoid or seek to avoid the observance or performance of any of the
terms to be observed or performed hereunder by the Company, but shall at all times in good faith assist in the carrying out of all the provisions of this Warrant. Without limiting the generality of
the foregoing, the Company (a) shall at all times reserve and keep available a number of its authorized shares of Common Stock which shall be sufficient to permit the exercise of this Warrant
and (b) shall take all such action as may be necessary or 

4

 

appropriate
in order that all shares of Common Stock as may be issued pursuant to the exercise of this Warrant shall, upon issuance, be duly and validly issued, fully paid and nonassessable and free
from all taxes, liens and charges with respect to the issue thereof. 

        Section 9.    Fractional Shares.    No fractional shares shall be issued upon the exercise of this Warrant. In
lieu of any fractional share to which the Holder would otherwise be entitled, the Company shall make a cash payment equal to the Exercise Price multiplied by such fraction. 

        Section 10.    Early Termination.    In the event of, at any time during the Exercise Period, an initial public
offering of securities of the Company under the Act, the Company shall provide to the Holder thirty (30) days advance written notice of such public offering, and this Warrant shall terminate
unless exercised prior to the date such public offering is closed. 

        Section 11.    No Stockholder Rights.    This Warrant in and of itself shall not entitle the Holder to any
voting rights or other rights as a stockholder of the Company. 

        Section 12.    Transfer of Warrant.    Subject to applicable laws and the restrictions on transfer set forth
pursuant to Section 6 of this Warrant, this Warrant and all rights hereunder are transferable, by the Holder in person or by duly authorized attorney, upon delivery of this Warrant and the Form
of Assignment attached hereto as Exhibit B to any transferee designated by Holder. The transferee shall sign an investment letter in form and
substance satisfactory to the Company. 

        Section 13.    Lost, Stolen, Mutilated, or Destroyed Warrant.    If this Warrant is lost, stolen, mutilated or
destroyed, the Company may, on such terms as to indemnify or otherwise as it may reasonably impose (which shall, in the case of a mutilated warrant, include the surrender thereof), issue a new warrant
of like denomination and tenor as the warrant so lost, stolen, mutilated or destroyed. 

        Section 14.    Notices, Etc.    All notices and other communications required or permitted hereunder shall be
in writing and shall be sent by telex, telegram, express mail or other form of rapid communications, if possible, and if not then such notice or communication shall be mailed by first-class mail,
postage prepaid, addressed in each case to the party entitled thereto at the following addresses: (a) if to the
Company, to NuVasive, Inc., Attention: Chief Executive Officer, 10065 Old Grove Road, San Diego, CA 92131, and (b) if to the Holder, to WWIP LLC, Attention: Dr. Lytton A.
Williams, 1510 San Pablo Street, Suite 700, Los Angeles, CA 90033, or at such other address as one party may furnish to the other in writing. Notice shall be deemed effective on the date dispatched if
by personal delivery, telecopy, telex or telegram, two days after mailing if by express mail, or three days after mailing if by first-class mail. 

        Section 15.    Acceptance.    Receipt of this Warrant by the Holder shall constitute acceptance of and
agreement to all of the terms and conditions contained herein. 

        Section 16.    Governing Law.    This Warrant and all rights, obligations and liabilities hereunder shall be
governed by the laws of the state of California as applied to agreements among California residents entered into an to be performed entirely within California. 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK] 

5

        The
Company has caused this Warrant to be duly executed and delivered on and as of the day and year first above written.   

	 	 	NUVASIVE, INC.,
	

 	
 	

BY:	

/S/  ALEX LUKIANOV      

	

 	
 	

Name:	

	

 	
 	

Title:	

        The
undersigned Holder agrees and accepts this Warrant and acknowledges that it has read and confirms each of the representations contained in Section 5.   

	 	 	WWIP LLC,
	

 	
 	

BY:	

/S/  ILLEGIBLE      

	

 	
 	

Name:	

	

 	
 	

Title:	

[SIGNATURE
PAGE TO COMMON STOCK PURCHASE WARRANT] 

 
 

EXHIBIT A    
    
    NOTICE OF EXERCISE    
    

        (1)   The
undersigned hereby elects to purchase            shares of the Common Stock of NuVasive, Inc. (the "Company") pursuant to the terms of the attached
Warrant, and tenders herewith payment of the Exercise Price in full, together with all applicable transfer taxes, if any. 

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

	
 (Name)	 	 
	

	
 	

 
	

 (Address)	
 	

 

        (3)   The
undersigned represents that (i) the aforesaid shares of Common Stock are being acquired for the account of the undersigned for investment and not with a view
to, or for resale in connection with, the distribution thereof and that the undersigned has no present intention of distributing or reselling such shares; (ii) the undersigned is aware of the
Company's business affairs and financial condition and has acquired sufficient information about the Company to reach an informed and knowledgeable decision regarding its investment in the Company;
(iii) the undersigned is experienced in making investments of this type and has such knowledge and background in financial and business matters that the undersigned is capable of evaluating the
merits and risks of this investment and protecting the undersigned's own interest; (iv) the undersigned understands that the shares of Common Stock issuable upon exercise of this Warrant have
not been registered under the Securities Act of 1933, as amended (the "Securities Act"), by reason of a specific exemption from the registration provisions of the Securities Act, which exemption
depends upon, among other things, the bona fide nature of the investment intent as expressed herein, and, because such securities have not been registered under the Securities Act, they must be held
indefinitely unless subsequently registered under the Securities Act or an exemption from such registration is available; (v) the undersigned is aware that the aforesaid shares of Common Stock
may not be sold pursuant to Rule 144 adopted under the Securities Act unless certain conditions are met and until the undersigned has held the shares for the number of years prescribed by
Rule 144, that among the conditions for use of Rule 144 is the availability of current information to the public about the Company and the Company has not made such information available
and has no present plans to do so; and (vi) the undersigned agrees not to make any disposition of all or any part of the aforesaid shares of Common Stock unless and until there is then in
effect a registration statement under the Securities Act covering such proposed disposition and such disposition is made in accordance with said registration statement, or the undersigned has provided
the Company with an opinion of counsel satisfactory to the Company, stating that such registration is not required. 

	
 Date	 	
 (Signature)
	

 	
 	

 (Print Name)

[SIGNATURE
PAGE TO NOTICE OF EXERCISE OF COMMON STOCK PURCHASE WARRANT OF NUVASIVE, INC.] 

 
 

EXHIBIT B    
    
    ASSIGNMENT FORM    
    

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

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

	Name:	

	(Please Print)

	

Address:	

	(Please Print)

	

Date:	

	
 	

 

	

Holder's

Signature:	

	
 	

 

	

Holder's

Address:	

	
 	

 

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

QuickLinks

EXHIBIT 10.37

EXHIBIT A NOTICE OF EXERCISE

EXHIBIT B ASSIGNMENT FORM

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