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EXHIBIT 4.3    
    

 
  NUVASIVE, INC.    
    
    AMENDMENT NO. 2 TO
  SECOND AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT    
    

        This Amendment No. 2 to Second Amended and Restated Investors' Rights Agreement (this "Amendment") is made as of February 5, 2004 by and among
NuVasive, Inc., a Delaware corporation (the "Company"), the persons and entities listed on Schedule A hereto (each, an "Investor" and
collectively, the "Investors"). Capitalized terms used herein which are not defined herein shall have the definition ascribed to them in the Second Amended and Restated Investors' Rights Agreement
dated July 11, 2002 among the Company and the persons and entities listed therein (the "Agreement"). 

 
 

RECITALS    
    

        A.    The
Company and the Investors have previously entered into the Agreement and that certain Amendment No. 1 to the Agreement dated June 19, 2003 ("Amendment
No. 1"). 

        B.    In
consideration of the proposed underwritten initial public offering of common stock of the Company (the "Offering"), the Company and the Investors desire to amend
certain provisions of the Agreement. 

        C.    The
undersigned parties are sufficient to effect an amendment to the Agreement pursuant to Section 3.7 thereof. 

 
 

RECITALS    
    

        NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: 

        1.    Section 2.5(i).    Section 2.5(i) is hereby amended and restated in its entirety to read as
follows: 

"(i) the
sale of securities pursuant to a registration statement filed by the Company under the Act in connection with a firm commitment underwritten offering of its securities to the general
public, at an offering price of at least $5.00 per share (as adjusted for any stock dividends, stock splits, combinations or other recapitalizations with respect to such shares) and $25,000,000 in the
aggregate" 

        2.    Effect of Amendment.    Except as expressly modified by this Amendment, the Agreement and Amendment No. 1
shall remain unmodified and in full force and effect. 

        3.    Entire Agreement.    This Amendment together with the Agreement, Amendment No. 1 and all documents
referred to herein and therein constitute the full and entire understanding and agreement between the parties with regard to the subjects hereof and thereof. 

        4.    Governing Law.    This Amendment shall be governed by and construed under the laws of the State of California as
applied to agreements among California residents entered into and performed entirely within California. 

        5.    Counterparts.    This Amendment may be executed in two or more counterparts and the signatures delivered in
facsimile, each of which shall be deemed an original, with the same effect as if the signatures were upon the same instrument and delivered in person. 

        6.    Amendments and Waivers.    Any term of this Amendment may be amended or modified only upon the written consent
of the Company and the persons and entities holding at least sixty six and two-thirds percent (662/3%) of the Registrable Securities then outstanding. Any amendment or
waiver effected in accordance with this paragraph shall be binding upon all the Investors, each transferee and the Company. 

[SIGNATURE
PAGES TO FOLLOW] 

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

	COMPANY:	 	NUVASIVE, INC.
	

 	
 	

By:	

/s/ Alexis Lukianov
 Alexis V. Lukianov

President and Chief Executive Officer

[SIGNATURE
PAGE TO AMENDMENT NO. 2 TO

SECOND AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT] 

        IN
WITNESS WHEREOF, the parties have executed this Amendment as of the date first written above. The undersigned take this action with respect to all shares of the Company's capital
stock owned by the undersigned. 

	INVESTORS:	 	WILLIAM BLAIR CAPITAL PARTNERS VII QP, L.P.
	

 	
 	

By:	

William Blair Capital Management VII, L.P.
	 	 	Its:	General Partner
	

 	
 	

By:	

William Blair Capital Management VII, L.L.C.
	 	 	Its:	General Partner
	

 	
 	

By:	

/s/ Arda Minocherhomjee
 Arda M. Minocherhomjee

Managing Director
	

 	
 	

 	

 
	 	 	WILLIAM BLAIR CAPITAL PARTNERS VII, L.P.
	

 	
 	

By:	

William Blair Capital Management VII, L.P.
	 	 	Its:	General Partner
	

 	
 	

By:	

William Blair Capital Management VII, L.L.C.
	 	 	Its:	General Partner
	

 	
 	

By:	

/s/ Arda Minocherhomjee
 Arda M. Minocherhomjee

Managing Director
	

 	
 	

 	

 
	 	 	KLEINER PERKINS CAUFIELD & BYERS VIII, L.P.
	

 	
 	

By:	

/s/ Joseph Lacob
 Joseph Lacob, General Partner
	

 	
 	

 	

 
	 	 	KPCB LIFE SCIENCES ZAIBATSU FUND II
	

 	
 	

By:	

/s/ Joseph Lacob
 Joseph Lacob, General Partner
	

 	
 	

 	

 
	 	 	KPCB VIII FOUNDERS FUND
	

 	
 	

By:	

/s/ Joseph Lacob
 Joseph Lacob, General Partner
	

 	
 	

 	

 
	 	 	ENTERPRISE PARTNERS IV, L.P.
	

 	
 	

By:	

Enterprise Management Partners IV, L.P.
	 	 	Its:	General Partner
	

 	
 	

By:	

/s/ Andrew Senyei
 Andrew E. Senyei, General Partner
	 	 	 	 

	

 	
 	

 	

 
	 	 	ENTERPRISE PARTNERS IV ASSOCIATES, L.P.
	

 	
 	

By:	

Enterprise Management Partners IV, L.P.
	 	 	Its:	General Partner
	

 	
 	

By:	

/s/ Andrew Senyei
 Andrew E. Senyei, General Partner
	

 	
 	

 	

 
	 	 	ENTERPRISE PARTNERS ANNEX FUND IV, L.P.
	

 	
 	

By:	

Enterprise Management Partners IV-A, L.P.
	 	 	Its:	General Partner
	

 	
 	

By:	

/s/ Andrew Senyei
 Andrew E. Senyei, General Partner
	

 	
 	

 	

 
	 	 	ENTERPRISE PARTNERS ANNEX FUND IV-A, L.P.
	

 	
 	

By:	

Enterprise Management Partners IV-A, L.P.
	 	 	Its:	General Partner
	

 	
 	

By:	

/s/ Andrew Senyei
 Andrew E. Senyei, General Partner
	

 	
 	

 	

 
	 	 	DOMAIN PARTNERS IV, L.P.
	

 	
 	

By:	

One Palmer Square Associates IV, L.L.C.
	 	 	Its:	General Partner
	

 	
 	

By:	

/s/ Kathleen K. Schoemaker
 Kathleen K. Schoemaker

Managing Member
	

 	
 	

 	

 
	 	 	DP IV ASSOCIATES, L.P.
	

 	
 	

By:	

One Palmer Square Associates IV, L.L.C.
	 	 	Its:	General Partner
	

 	
 	

By:	

/s/ Kathleen K. Schoemaker
 Kathleen K. Schoemaker

Managing Member

	 	 	CAISSE DE DEPOT ET PLACEMENT DU QUEBEC
	

 	
 	

By:	

/s/ Jacque Douziech	
 	

/s/ illegible
	 	 	 	

	 	 	Its:	Senior Partner	 	Partner
	 	 	 	

	 	 	Print Name:	J. Douziech	 	illegible
	 	 	 	 	

	

 	
 	

 	

 	

 	
 	

 
	 	 	A.M. PAPPAS LIFE SCIENCE VENTURES II, L.P.
	

 	
 	

By:	

AMP&A Management II, LLC
	 	 	Its:	General Partner
	

 	
 	

By:	

/s/ Ford S. Worthy
 Ford S. Worthy, Senior Vice President
	

 	
 	

 	

 	

 	
 	

 
	 	 	JOHNSON & JOHNSON DEVELOPMENT CORPORATION
	

 	
 	

By:	

/s/ John Onopchenko
 John Onopchenko, Vice President
	

 	
 	

 	

 	

 	
 	

 
	 	 	BROBECK, PHLEGER & HARRISON, LLP
	

 	
 	

By:	

/s/ Ronald F. Greenspan

	 	 	Its:	Trustee
	 	 	 	

	 	 	Print Name:	Ronald F. Greenspan
	 	 	 	 	

	

 	
 	

 	

 	

 	
 	

 
	 	 	COMDISCO, INC.
	

 	
 	

By:	

/s/ Thomas N. Ahto

	 	 	Its:	Senior Vice President
	 	 	 	

	 	 	Print Name:	Thomas N. Ahto
	 	 	 	 	

	

 	
 	

 	

 	

 	
 	

 
	 	 	INNOVATIVE ORTHOTICS & REHABILITATION INC.
	

 	
 	

By:	

/s/ David DeFrancis

	 	 	Its:	VP
	 	 	 	

	 	 	Print Name:	David DeFrancis
	 	 	 	 	

	

 	
 	

 	

 	

 	
 	

 
	 	 	MLPF&S CUST. WILLIAM PLAYER BAREFOOT IRA, TAX ID# 13-3180817
	

 	
 	

By:	

/s/ William Player Barefoot

	 	 	Its:	 	 	 	 
	 	 	 	

	 	 	Print Name:	William Player Barefoot
	 	 	 	 	

	 	 	MLFPS AS CUSTODIAN, FBO SCOTT KITCHEL SEP
	

 	
 	

By:	

/s/ Scott Kitchel

	 	 	Its:	 	 
	 	 	 	

	 	 	Print Name:	Kitchel
	 	 	 	 	

	

 	
 	

 	

 	

 
	 	 	PETERSON FAMILY LLC
	

 	
 	

By:	

/s/ Mark Peterson

	 	 	Its:	Manager
	 	 	 	

	 	 	Print Name:	Mark Peterson
	 	 	 	 	

	

 	
 	

 	

 	

 
	 	 	ROBERTSON STEPHENS, INC.
	

 	
 	

By:	

/s/ Illegible

	 	 	Its:	Managing Director
	 	 	 	

	 	 	Print Name:	illegible
	 	 	 	 	

	

 	
 	

 	

 	

 
	 	 	RS COINVESTMENT FUND, L.L.C.
	

 	
 	

By:	

/s/ Zack Edmonds

	 	 	Its:	GP
	 	 	 	

	 	 	Print Name:	Zack Edmonds
	 	 	 	 	

	

 	
 	

 	

 	

 
	 	 	SSI SPINAL SOLUTIONS
	

 	
 	

By:	

/s/ illegible

	 	 	Its:	illegible
	 	 	 	

	 	 	Print Name:	illegible
	 	 	 	 	

	

 	
 	

 	

 	

 
	 	 	CALLAWAY PRIVATE EQUITY PARTNERS, INC.
	

 	
 	

By:	

/s/ Mart Bailey

	 	 	Its:	Managing Partner
	 	 	 	

	 	 	Print Name:	Mart Bailey
	 	 	 	 	

	

 	
 	

 	

 	

 
	 	 	INTEGRAL CAPITAL PARTNERS VI, L.P.
	

 	
 	

By:	

Integral Capital Management VI, LLC
	 	 	Its:	General Partners
	

 	
 	

By:	

/s/ Pamela K. Hagenah

	 	 	Its:	a Manager
	 	 	 	

	 	 	Print Name:	Pamela K. Hagenah
	 	 	 	 	

	

 	
 	

By:	

/s/ Behrooz Akbarnia
 Behrooz A. Akbarnia, an individual
	

 	
 	

By:	

/s/ Craig Andrews
 Craig S. Andrews, an individual
	

 	
 	

By:	

/s/ Kevin P Armstrong
 Kevin P. Armstrong, an individual
	

 	
 	

By:	

/s/ Rudolph Bertgnoli
 Rudolph Bertagnoli, an individual
	 	 	 	 	 

	

 	
 	

By:	

/s/ Andrew Cappuccino
 Andrew Cappuccino, an individual
	

 	
 	

By:	

/s/ Ronald C. Childs
 Ronald Clayton Childs, an individual
	

 	
 	

By:	

/s/ Matthew Frank
 Matthew Frank, an individual
	

 	
 	

By:	

/s/ G. Rogan Fry
 Griffith Rogan Fry, an individual
	

 	
 	

By:	

/s/ James Gleason
 James Gleason, an individual
	

 	
 	

By:	

/s/ Peter A. Guagliano
 Peter A. Guagliano, an individual
	

 	
 	

By:	

/s/ Klaus Hagenmeyer
 Klaus Hagenmeyer, an individual
	

 	
 	

By:	

/s/ Regis Haid, Jr.
 Regis William Haid, Jr., an individual
	

 	
 	

By:	

/s/ William Houston, Jr.
 William Houston, Jr., an individual
	

 	
 	

By:	

/s/ Jeff Hughes
 Jeff Hughes, an individual
	

 	
 	

By:	

    
 Gregg Lacoste, an individual
	

 	
 	

By:	

/s/ Joe C Loy
 Joe C. Loy, an individual
	

 	
 	

By:	

/s/ Todd Marinchak
 Todd Marinchak, an individual
	

 	
 	

By:	

/s/ James Marino, M.D.
 Dr. James Marino, an individual
	

 	
 	

By:	

/s/ Scot Martinelli
 Scot Martinelli, an individual
	

 	
 	

By:	

/s/ Dawn Maywood
 Dawn Maywood, an individual
	

 	
 	

By:	

/s/ Sam Maywood
 Sam Maywood, an individual
	

 	
 	

By:	

/s/ David Merrill
 David Merrill, an individual
	

 	
 	

By:	

/s/ Tom Meyer
 Tom L. Meyer, III, an individual
	 	 	 	 	 

	

 	
 	

By:	

/s/ Bobbie-Jo Romanishan
 Bobbi-Jo Romanishan, an individual
	

 	
 	

By:	

/s/ Anthony Ross
 Anthony Ross, an individual
	

 	
 	

By:	

/s/ Tony Salerni
 Tony Salerni, an individual
	

 	
 	

By:	

/s/ Jonathan Spangler
 Jonathan Spangler, an individual
	

 	
 	

By:	

/s/ Craig Sparks
 Craig Sparks, an individual
	

 	
 	

By:	

/s/ Frederick J. Thabet
 Frederick J. Thabet, an individual
	

 	
 	

By:	

/s/ R. Jay Thabet
 R. Jay Thabet, Jr., an individual
	

 	
 	

By:	

/s/ Alexander Vaccarro
 Alexander Vaccarro, an individual
	

 	
 	

By:	

/s/ Marjorie Vaccarro
 Marjorie Vaccarro, an individual
	

 	
 	

By:	

/s/ Keith C. Valentine
 Keith C. Valentine, an individual
	

 	
 	

 	

 	

 
	 	 	BNDD, LP

4130 La Jolla Village Drive

Suite 107-7

La Jolla, CA 92037
	

 	
 	

By:	

/s/ Bruce Van Dam
 Bruce Van Dam

Managing Partner

 
 

SCHEDULE A    
    

	William Blair Capital Partners VII, QP, L.P.	 	Behrooz A. Akbarnia
	William Blair Capital Partners VII, L.P.	 	Craig S. Andrews
	Kleiner Perkins Caufield & Byers VIII	 	Kevin P. Armstrong
	KPCB Life Sciences Zaibatsu Fund II	 	Rudolph Bertagnoli
	KPCB VIII Founders Fund	 	Andrew Cappuccino
	Enterprise Partners IV, L.P.	 	Ronald Clayton Childs
	Enterprise Partners IV Associates, L.P.	 	Matthew Frank
	Enterprise Partners Annex Fund IV, L.P.	 	Griffith Rogan Fry
	Enterprise Partners Annex Fund IV-A, L.P.	 	James Gleason
	Domain Partners IV, L.P.	 	Peter A. Guagliano
	DP IV Associates, L.P.	 	Klaus Hagenmeyer
	Caisse de depot et placement du Quebec	 	Regis William Haid, Jr.
	A.M. Pappas Life Science Ventures II, L.P.	 	William Houston, Jr.
	Johnson & Johnson Development Corporation	 	Jeff Hughes

Gregg Lacoste
	Brobeck, Phleger & Harrison LLP	 	Joe C. Loy
	Comdisco, Inc.	 	Todd Marinchak
	Innovative Orthotics & Rehabilitation Inc.	 	Scot Martinelli
	Integral Capital Partners VI, L.P.	 	Dr. James Marino
	MLPF&S Cust. William Player Barefoot IRA	 	Sam & Dawn Maywood
	MLFPS as Custodian, FBO Scott Kitchel SEP	 	David Merrill
	Peterson Family LLC	 	Tom L. Meyer, III.
	Robertson Stephens, Inc.	 	Bobbie-Jo Romanishan
	RS Coinvestment Fund, L.L.C.	 	Anthony Ross
	SSI Spinal Solutions	 	Tony Salerni
	Callaway Private Equity Partners, Inc.	 	Jonathan Spangler

Frederick J. Thabet

R. Jay Thabet, Jr.

Craig Sparks

Alexander & Marjorie Vaccaro

Keith C. Valentine

BNDD, LP

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EXHIBIT 4.3

NUVASIVE, INC. AMENDMENT NO. 2 TO SECOND AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT

RECITALS

RECITALS

SCHEDULE AQuickLinks
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EXHIBIT 10.1    
    

 
 

FORM OF WARRANT    
    

        THIS WARRANT AND THE SECURITIES ISSUABLE UPON THE EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR ANY STATE
SECURITIES LAWS. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES UNDER SUCH
ACT OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED OR UNLESS SOLD PURSUANT TO AN EXEMPTION UNDER SUCH ACT. 

	BW-    	 	Void after
	 	 	October 13, 2004

 
 

WARRANT
  OF
  NUVASIVE, INC.    
    

        THIS CERTIFIES THAT, for value received,                        ,
together with his, her or its successors and assigns (the "Holder") is entitled to subscribe for and
purchase, on the terms hereof, shares of "Next Stock" (as
defined below), of Nuvasive, Inc., a Delaware corporation (the "Company"), subject to the following terms and conditions: 

        1.    Convertible Promissory Note and Warrant Agreement.    This Warrant ("Warrant") is
issued pursuant to that certain Convertible Promissory Note and Warrant Agreement dated October 13, 1999 (the "Agreement") by and among the Company, the Holder and other Investors (as defined
in the Agreement). Pursuant to the Agreement, the Company also issued the Holder that certain Convertible Promissory Note dated October 13, 1999 (the "Note"). The Note and the other convertible
promissory notes issued pursuant to the Agreement are collectively referred to as the "Notes." 

        2.    Exercise of Warrant.    The terms and conditions upon which this Warrant may be
exercised, and the Next Stock (as defined below) covered hereby may be purchased, are as follows: 

        2.1    Term.    Subject to the terms hereof, this Warrant may be exercised at any time,
or from time to time, in whole or in part (the "Exercise Date"), after the earlier of (i) the date of the closing of the Company's Next Qualified Equity Financing (as defined below) or
(ii) March 31, 2000; provided, however, that in no event may this Warrant be exercised later than 5:00 p.m. (Pacific Time) on the earlier of (a) the close of business on
October 13, 2004, (b) (i) the closing of the acquisition of the Company by another entity by means of a transaction or series of related transactions or (ii) the closing of the
sale of all or substantially all of the assets of the Company, unless the Company's stockholders of record prior to such acquisition or sale shall hold at least fifty percent (50%) of the voting power
of the acquiring or surviving entity immediately after such acquisition or sale, or (c) the initial underwritten public offering of the Company's Common Stock (the "Exercise Period"). At least
ten (10) business days prior to the occurrence of an event specified in (b) or (c) of this Section 2.1, the Company shall send to the Holder notice of such event and that
the Holder's rights under this Warrant shall terminate upon the occurrence of such event; provided, that if the Company sends such notice less than ten (10) days prior to the occurrence of such
event, the Holder's right to exercise this Warrant shall be extended for a period of ten (10) days after the date the Holder receives such notice, after which time the Holder's rights under
this Warrant shall terminate. The notice required by this paragraph may be waived by the Holder. 

        2.2    Next Qualified Equity Financing.    The term Next Qualified Equity Financing shall
mean the next equity financing involving the receipt by the Company of at least Three Million Dollars 

 

($3,000,000)
(excluding amounts received on conversion of the Notes) which is completed before March 31, 2000. Notwithstanding the foregoing, the Next Qualified Equity Financing shall not
include an equity financing that is made in connection with either (i) any arrangement between the Company and any third party for any research or development involving the Company (including,
without limitation, any arrangement that includes provision for research support, product development and/or testing support), (ii) any rights to commercialize any products resulting from the
research or development programs of the Company (including, without limitation, rights to develop, make, use and/or sell any such products), or (iii) any other non-monetary
consideration. 

        2.3    Next Stock.    The term "Next Stock" shall mean the Company's Preferred Stock
issued in the Next Qualified Equity Financing. However, if there is no Next Qualified Equity Financing before March 31, 2000, Next Stock shall refer to the Company's Series A Preferred
Stock which shall have all rights allocated to Series A Preferred Stock as described in the Company's Certificate of Incorporation, as amended. 

        2.4    Number of Shares.    This Warrant may be exercised for the number of shares of
Next Stock equal to: 

	X =	 	A × B
 C	 	×	 	Y
 31

	

 	
 	

A	
 	

=	
 	

5.0%
	

 	
 	

B	
 	

=	
 	

Original principal amount of Note.
	

 	
 	

C	
 	

=	
 	

The per share price at which the Next Stock was sold in the Next Qualified Equity Financing, or if no Next Qualified Equity Financing takes place by March 31, 2000, then $1.00.
	

 	
 	

X	
 	

=	
 	

The number of shares of Next Stock that may be purchased by Holder pursuant to this Warrant.
	

 	
 	

Y	
 	

=	
 	

The total number of days elapsed from October 13, 1999 to and including the earlier of (i) the date of the closing of the Next Qualified Equity Financing; (ii) the date of the Company's repayment of all principal and interest due under
the Note; or (iii) March 31, 2000.

        2.5    Exercise Price.    This Warrant shall be exercisable into the number of shares of
Next Stock specified in Section 2.4 above. If a Next Qualified Equity Financing occurs, the "Exercise Price" shall equal the price per share at which Next Stock was sold in the Next Qualified
Equity Financing; provided, however, if no Next Qualified Equity Financing occurs, then the "Exercise Price" shall be one dollar ($1.00) per share. 

        2.6    Method of Exercise.    The exercise of the purchase rights evidenced by this
Warrant shall be effected by (a) the surrender of the Warrant, together with a duly executed copy of the form of subscription attached hereto as Schedule A,
to the Company at its principal offices and (b) the delivery of the purchase price by check or bank draft payable to the Company's order or by wire transfer of same day funds to the Company's
account for the number of shares for which the purchase rights hereunder are being exercised or any other form of consideration approved by the Company's Board of Directors. Each exercise of this
Warrant shall be deemed to have been effected immediately prior to the close of business on the day on which this Warrant shall have been surrendered to the Company as provided herein or at such later
date as may be specified in the executed form of subscription, and at such time, the person or persons in whose name or names any certificate or certificates for shares of Next Stock shall be issuable
upon such exercise, as provided herein, shall be deemed to have become the holder or holders of record thereof. 

2

 

        2.7    Net Issue Exercise.    In lieu of exercising this Warrant by paying the Exercise
Price in cash or by check, Holder may elect to receive shares equal to the value of this Warrant (or the portion thereof being canceled) by surrender of this Warrant at the principal office of the
Company together with the Notice of Cashless Exercise annexed hereto as Schedule B duly completed and executed in which event
the Company shall issue to Holder a number of shares of Next Stock computed using the following formula: 

	 	 	X=	 	(Y)(A-B)
 A	 	 

	

Where X =	
 	

The number of shares of Next Stock to be issued to Holder.
	

Y =	
 	

The number of shares of Next Stock purchasable under this Warrant.
	

A =	
 	

The fair market value of one share of Next Stock.
	

B =	
 	

Exercise Price (as adjusted to the date of such calculations).

For
purposes of this Section, the fair market value of one share of Next Stock shall be the fair market value of such share (or the underlying shares of Common Stock into which it is convertible) as
determined in good faith by the Board of Directors of the Company. 

        3.    Adjustments to Exercise Price.    The number and kind of shares of Next Stock
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: 

        3.1    Splits and Subdivisions.    If the Company should at any time or from time to time
fix a record date for the effectuation of a split or subdivision of the outstanding shares of Next Stock or the determination of the holders of Next Stock entitled to receive a dividend or other
distribution payable in additional shares of Next Stock or other securities or rights convertible into, or entitling the holder thereof to receive directly or indirectly, additional shares of Next
Stock (hereinafter referred to as the "Next Stock Equivalents") without payment of any consideration by such holder for the additional shares of Next Stock or Next Stock Equivalents, then, as of such
record date (or the date of such distribution, split or subdivision if no record date is fixed), the purchase price shall be appropriately decreased and the number of shares of Next Stock which this
Warrant is exercisable for, if any, shall be appropriately increased in proportion to such increase of outstanding shares. 

        3.2    Combination of Shares.    If the number of shares of Next Stock outstanding at any
time after the date hereof is decreased by a combination of the outstanding shares of Next Stock, the purchase price shall be appropriately increased and the number of shares of Next Stock which this
Warrant is exercisable for, if any, shall be appropriately decreased in proportion to such decrease in outstanding shares. 

        3.3    Merger, Consolidation or Sale of Assets.    If at any time or from time to time
there shall be a capital reorganization of the Company's Stock (other than a subdivision, combination, reclassification or exchange of shares provided for elsewhere in this Section 3) or a
merger or consolidation of the Company with or into another corporation, or the sale of all or substantially all of the Company's assets and properties to any other person or entity, then as a part of
such reorganization, merger, consolidation or sale, provision shall be made so that the Holder shall thereafter be entitled to receive upon the exercise of this Warrant, the number of shares of stock
or other securities or property of the Company, or of the successor corporation resulting from such reorganization, merger, consolidation or sale, to which a holder of the number of shares of Next
Stock (or any shares of stock or other securities which may be) issuable upon the exercise of this 

3

 

Warrant
would have received if this Warrant had been exercised immediately prior to such reorganization, merger, consolidation or sale. 

        3.4    Adjustments for Other Distributions.    In the event the Company shall declare a
distribution payable in securities of other persons, evidences of indebtedness issued by the Company or other persons, assets (excluding cash dividends) or options or rights not referred to in
Section 3.1, then, in each such case for the purpose of this Section 3.4, upon exercise of this Warrant the Holder shall be entitled to a proportionate share of any such distribution as
though such Holder was the holder of the number of shares of Next Stock of the Company into which this Warrant may be exercised as of the record date fixed for the determination of the holders of Next
Stock of the Company entitled to receive such distribution. 

        3.5    Reclassification or Reorganization.    If the Next Stock (or any shares of stock
or other securities which may be) issuable upon the exercise of this Warrant shall be changed into the same or different number of shares of any class or classes of stock, whether by capital
reorganization, reclassification or otherwise
(other than a subdivision or combination of shares or stock dividend provided for in Sections 3.1, 3.2 and 3.4 above, or a reorganization, merger, consolidation or sale of assets provided for in
Section 3.3 above), then and in each such event the Holder shall be entitled to receive upon the exercise of this Warrant the kind and amount of shares of stock and other securities and
property receivable upon such reorganization, reclassification or other change, to which a holder of the number of shares of Next Stock (or any shares of stock or other securities which may be)
issuable upon the exercise of this Warrant would have received if this Warrant had been exercised immediately prior to such reorganization, reclassification or other change, all subject to further
adjustment as provided herein. 

        3.6    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 Next Stock 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 Next 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 twenty
(20) days prior to the date specified therein. 

        3.7    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 following the beginning of the Exercise Period reserve and keep available a number of its authorized shares of Next
Stock, free from all preemptive rights therein, which shall be sufficient to permit the exercise of this Warrant and (b) shall take all such action as may be necessary or appropriate in order
that all shares of Next 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. 

        4.    Replacement of the Warrant.    On receipt by the Company of evidence reasonably
satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant and, in the case of any such loss, theft or destruction of this Warrant, on delivery of an indemnity agreement
reasonably satisfactory in form and amount to the Company or, in the case of any such mutilation, on surrender and cancellation of the Warrant, the Company at its expense shall execute and deliver to
the Holder, in lieu thereof, a new Warrant of like tenor. 

        5.    Investment Intent.    Unless a current registration statement under the Securities
Act of 1933, as amended, shall be in effect with respect to the securities to be issued upon exercise of this Warrant, 

4

 

the
Holder, by accepting this Warrant, covenants and agrees that, at the time of exercise hereof, and at the time of any proposed transfer of any securities acquired upon exercise hereof, the Holder
shall deliver to the Company a written statement that the securities acquired by the Holder upon exercise hereof are for the account of the Holder for investment and are not acquired with a view to,
or for sale in connection with, any distribution thereof (or any portion thereof) and are being acquired with no present intention (at any such time) of offering or distributing such securities (or
any portion thereof). 

        6.    No Rights or Liability as a Stockholder.    This Warrant does not entitle the
Holder hereof to any voting rights or other rights as a stockholder of the Company. No provisions hereof, in the absence of affirmative action by the Holder to purchase Next Stock, and no enumeration
herein of the rights or privileges of the Holder, shall give rise to any liability of the Holder as a stockholder of the Company. 

        7.    Miscellaneous.    

        7.1    Transfer of Warrant.    This Warrant shall not be transferable or assignable in
any manner and no interest shall be pledged or otherwise encumbered by Holder without the express written consent of the Company, and any such attempted disposition of this Warrant or any portion
hereof shall be of no force or effect. 

        7.2    Titles and Subtitles.    The titles and subtitles used in this Warrant are for
convenience only and are not to be considered in construing or interpreting this Warrant. 

        7.3    Notices.    Any notice required or permitted under this Warrant shall be given in
writing and in accordance with Section 5.3 of the Agreement (for purposes of which, the term "Investors" shall mean Holder hereunder), except as otherwise expressly provided in this Warrant. 

        7.4    Attorneys' Fees.    If any action at law or in equity is necessary to enforce or
interpret the terms of this Warrant, the prevailing party shall be entitled to reasonable attorneys' fees, costs and disbursements in addition to any other relief to which such party may be entitled. 

        7.5    Amendments and Waivers.    This Warrant is issued by the Company pursuant to the
Agreement. Any term of this Warrant may be amended and the observance of any term of this Warrant may be waived
(either generally or in a particular instance and either retroactively or prospectively), with the written consent of the Company and the holders of Warrants representing together the right to
purchase at least a majority of all of the Next Stock of the Company subject to purchase pursuant to all of the Warrants; provided, however, that any amendments made to this Warrant must be made to
each of the Warrants. Any amendment or waiver effected in accordance with this Section 7.5 shall be binding upon the Holder of this Warrant (and of any securities into which this Warrant is
convertible), each future holder of all such securities, and the Company. 

        7.6    Severability.    If one or more provisions of this Warrant are held to be
unenforceable under applicable law, such provision shall be excluded from this Warrant and the balance of the Warrant shall be interpreted as if such provision were so excluded and shall be
enforceable in accordance with its terms. 

[REMAINDER
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        7.7    Governing Law.    This Warrant shall be governed by and construed and enforced in
accordance with the laws of the State of California, without giving effect to its conflicts of laws principles. 

	Date: October 13, 1999	 	NUVASIVE, INC.,

a Delaware corporation
	

 	
 	

By:	

 Alexis V. Lukianov, President

6

 
 

SCHEDULE A    
    
    FORM OF SUBSCRIPTION    
    
    (TO BE SIGNED ONLY ON EXERCISE OF WARRANT)    
    

To:  NUVASIVE, INC.

        The
undersigned, the holder of the Warrant attached hereto, hereby irrevocably elects to exercise the purchase rights represented by such Warrant for, and to purchase thereunder,
                        * shares
of                        Stock of Nuvasive, Inc., and herewith makes payment of
$                        and requests that the certificates for such shares be issued in the name of,
and delivered to                        , whose address
is                        , and whose social security number/taxpayer identification number
is                        . 

	

Dated:	
 	

	
 	

 	
 	

 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	
 (Signature must conform in all respects to name of the Holder as specified on the face of the Warrant)
	 	 	 	 	 	 	 
	 	 	 	 	 	 	
 (Print Name)
	 	 	 	 	 	 	 
	 	 	 	 	Address:	 	

	 	 	 	 	 	 	 
	 	 	 	 	 	 	

	 	 	 	 	 	 	 
	 	 	 	 	 	 	

	
	 	 	 	 	 	 

	*
	Insert
here the number of shares as to which the Warrant is being exercised. 

SCHEDULE B  

 NOTICE OF CASHLESS EXERCISE  

To: NUVASIVE, INC. 

        (1)   The
undersigned hereby elects to acquire in a cashless exercise                        shares of the Next Stock (as defined in the
attached Warrant) of Nuvasive, Inc.
pursuant to the terms of Section 2.7 of the attached Warrant. 

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

	 
	 	 
	 

	 	 	

	

 	
 	

By:	

	

 	
 	

Name:	

 
 

SCHEDULE OF WARRANT HOLDERS    
    

Enterprise
Partners IV, L.P.

Enterprise Partners IV Assoicates, L.P.

Kleiner Perkins Caufiled & Byers VIII, L.P.

KPCB VIII Founders Fund 

QuickLinks

EXHIBIT 10.1

FORM OF WARRANT

WARRANT OF NUVASIVE, INC.

SCHEDULE A FORM OF SUBSCRIPTION (TO BE SIGNED ONLY ON EXERCISE OF WARRANT)

SCHEDULE OF WARRANT HOLDERS

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