Document:

Exhibit 10.10

 

 

January 9, 2006

 

Mr. Trent Northcutt

59 Feather Sound Dr.

Henderson, NV 89052

 

Dear Trent (hereinafter “you”, “your” or the “Employee”):

 

                I am very pleased to provide you with a summary of
your new employment terms with Alphatec Spine, Inc. (“Alphatec” or the “Company”).

1.             Position  Your new
position in the Company will be Vice President, Sales and you will report to Alphatec’s
President and Chief Executive Officer. 
As an Alphatec employee, we expect that you will perform any and all duties
and responsibilities normally associated with your position in a satisfactory
manner and to the best of your abilities at all times.

 

2.             Starting Date/Nature of Relationship Upon accepting
this offer your new position with Alphatec will begin on Janaury 6, 2006 (the “Commencement
Date”).  Thereafter, you will be expected
to devote all of your working time to the performance of your duties at
Alphatec throughout your employment.  No
provision of this letter shall be construed to create an express or implied
employment contract, or a promise of employment for any specific period of
time.  Your employment with Alphatec is
at-will employment which may be terminated by you or Alphatec at any time for
any reason or for no reason with or without advance notice.  It is agreed by the parties to this letter,
that your performance shall be subject to a quarterly evaluation by the
President and Chief Executive Officer and the Company’s Board of Directors
related to your achievement of performance criteria established by the
President and Chief Executive Officer.

 

3.             Compensation, Benefits, Bonus  Your base salary shall be a
rate of $5,480.77 weekly ($285,000 on an annualized basis) minus customary deductions for federal and
state taxes and the like.  In 2006 you
shall be eligible to receive a bonus of up to fifty percent (50%) of your base
salary based on the satisfaction of certain criteria established by the
President and Chief Executive Officer.

 

In addition to your
compensation, you may continue to take advantage of various benefits offered by
Alphatec including Alphatec’s 401(k) plan. 
These benefits may be modified or changed from time to time at the sole
discretion of Alphatec.  Any provision of
benefits to you in no way changes or impacts your status as an at-will
employee.

 

 

2051 Palomar Airport Road, Ste. 100, Carlsbad, California
 92011

Phone (760) 431-9286     
     Fax (760) 431-7863

 

 

The parties to this letter
agree and acknowledge that during the time period beginning on the Commencement
Date until six months following the Commencement Date (the “Relocation Date”),
the Company shall loan you up to $24,000 in properly documented expenses related
to your permanent relocation to the Carlsbad, CA area (the “Relocation Loan”).  Your obligation to repay the Relocation Loan
shall lapse as follows: one twenty-fourth (1/24) of the total amount of the
aggregate amount of the Relocation Loan shall be released from the repayment
obligation each full calendar month after the Commencement Date in which you
were a full time employee of the Company; provided that you shall have no
obligation to repay the Relocation Loan in the event of (i) a “Change in
Control” during your employment relationship; (ii) upon the termination of your
employment relationship due to your death or permanent disability; or (iii) if
your employment relationship is terminated by the Company without “cause” (as
defined below).  In the event that your
employment relationship terminates for any other reason other than by the
Company without cause or due to your death or total disability, the entire
unlapsed Relocation Loan shall become due and payable within 90 days after the
end of your employment relationship and any amounts not paid on such date shall
accrue interest at the rate of four percent (4%) per annum, compounded
annually.  For the purposes of this
Section 3, a “Change of Control” shall be defined as any merger, consolidation,
reorganization or other similar transaction or series of transactions involving
Holdings and any other corporation, person or entity in which the holders of
the outstanding voting securities of Holdings immediately prior to such
transaction hold less than 50% of the voting securities of the surviving entity
immediately following such transaction, or a sale of all or substantially all
of the assets of Holdings.

 

Following the initiation of
your employment status you will be granted options to purchase 2,500 shares of
the Class A Common Stock of Alphatec Holdings, Inc. (“Holdings”) in accordance
with the Company’s regular schedule for granting equity to its employees. 
These options will be issued pursuant to an incentive stock option agreement
between you and Holdings.  The incentive stock option agreement will
provide for an exercise price equal to the fair market value of the shares, a
five-year vesting schedule and immediate vesting upon a change of control.  The issuance of these options to purchase
shares shall in no way affect the shares of restricted stock that have been
previously granted to you in connection with your employment with the Company.

 

4.             Your Representations , Warranties
and Covenants to Alphatec  You hereby represent and warrant to Alphatec
that (i) you are free to enter into and fully perform the duties of your
position and that you are not subject to any employment, confidentiality,
non-competition or other agreement that would restrict your employment with
Alphatec, (ii) you are not in possession of any document or other tangible
property of any other entity or person of a confidential or proprietary nature
which would conflict in any manner whatsoever with any of your duties,
obligations or responsibilities to the Company pursuant to this letter; (iii)
your signing this letter does not violate any order, judgment or injunction
applicable to you, or conflict with or breach any agreement to which you are a
party or by which you are bound; (iv) on the Commencement Date you

 

 

2051 Palomar Airport Road, Ste. 100, Carlsbad, California
 92011

Phone (760) 431-9286     
     Fax (760) 431-7863

 

 

will be fully ready, willing
and able to perform each and all of your duties, obligations and
responsibilities to the Company pursuant to this letter.

 

5.             Non-solicitation/Trade Secrets/Non
disclosure  You hereby
agree and acknowledge that based upon your position within the Company that you
will have access to certain Trade Secrets (as defined below), and confidential
information (the “Trade Secrets”), which, if disclosed to a third party would
cause the Company to suffer irreparable harm. 
In order to protect the Company from unauthorized use of such Trade
Secrets following the termination of your employment, for a period of 12 months
following the termination of Employee’s employment relationship for any reason (the
“Nonsolicitation Period”), Employee will not (i) recruit, solicit or induce,
(ii) attempt to recruit, solicit or induce, (iii) encourage any person or
entity to recruit, solicit or induce, or (iv) encourage any person or entity to
attempt to recruit, solicit or induce, any employee, consultant, agent, physician,
customer or supplier of the Company to terminate their employment with, or
otherwise cease their relationship with the Company.

 

                Employee agrees that all
information and know-how, whether or not in writing, of a
proprietary, private, secret or confidential nature concerning the Company’s
business or financial affairs (collectively, “Trade Secrets”) is and shall be
the exclusive property of the Company. 
By way of illustration, but not limitation, Trade Secrets include inventions,
products, processes, methods, techniques, formulas, compositions, compounds,
projects, developments, inventions, projections, plans, research data, clinical
data, financial data, personnel data, computer programs, and customer,
physician and supplier lists.  Employee
will not disclose any Trade Secrets to others outside the Company or use the
same for any unauthorized purposes without written approval of the Company,
either during or after his employment, unless and until such Trade Secrets have
become public knowledge without fault by Employee or any third party that was
not obligated to keep such Trade Secrets confidential.  It is agreed and acknowledged by the parties
that the terms of this letter shall be deemed to be a Trade Secret and the
Employee shall only disclose such terms to his spouse or advisor acting in a
fiduciary capacity (i.e., attorney or accountant).

 

Employee agrees that all files, letters, memoranda,
reports, records, data, sketches, drawings, laboratory notebooks,
program listings, or other written, photographic, or other tangible material
containing Trade Secrets, whether created by Employee or others, which shall
come into his custody or possession, shall be and are the exclusive property of
the Company and shall solely be used by Employee in the performance of his
duties for the Company.  Employee agrees
to immediately return to the Company all Trade Secrets and all materials
containing Trade Secrets following the termination of Employee’s employment
relationship.

 

Employee
agrees that his obligation not to disclose or misuse Trade Secrets, also
includes such similar types of information of subsidiaries, affiliates and
joint ventures of the Company, customers of the Company or suppliers to the
Company or other third parties who may have disclosed or entrusted the such
similar types of information to the Company or to Employee in the course of the
Company’s business.

 

 

2051 Palomar Airport Road, Ste. 100, Carlsbad, California
 92011

Phone (760) 431-9286     
     Fax (760) 431-7863

 

 

You recognize that a breach
or threatened breach by you of any of the provisions contained in this Section
5 will cause the Company irreparable injury. 
You therefore agree that the Company shall be entitled, in addition to
any other right or remedy, to a temporary, preliminary and permanent injunc­tion,
without the necessity of proving the inadequacy of monetary damages or the
posting of any bond or security, enjoining or restraining you from any such
violation or threatened violations.

 

6.             Severance  In the event that Employee’s employment
is terminated by the Company without “cause”, then Employee shall be entitled
to continue to receive his base salary (payable in accordance with the Company’s
standard payroll procedures) from the date of termination for a six-month
period.  The time period in which the
Employee is receiving payments following the termination date shall be referred
to herein as the “Without Cause Severance Period”.  For the purposes of this Section 6, “cause”
shall be defined as (i) conduct by the Employee that violates the Company’s
Code of Conduct; (ii) the Employee’s engagement in conduct that is materially
injurious to the Company; (iii) the Employee’s material breach of the
representations, warranties or covenants contained in this letter; or (iv) a
willful or continuing failure to materially meet Employee’s performance
expectations.  In each case, the
determination of whether cause exists shall be made in the reasonable
discretion of the Company’s Board of Directors. 
In consideration for the receipt of payments during the Without Cause
Severance Period, the Employee agrees that the Nonsolicitation Period shall be
extended by the term of such Without Cause Severance Period.

.

7.             Miscellaneous  This letter constitutes all
of the terms of your new employment position with Alphatec.  It supersedes any prior agreements, or other
promises or statements (whether oral or written) regarding your employment with
Alphatec.

 

[Signature Page Follows]

 

 

 

2051 Palomar Airport Road, Ste. 100, Carlsbad, California
 92011

Phone (760) 431-9286     
     Fax (760) 431-7863

 

Your
signature on the copy of this letter and your submission of a signed copy to me
will evidence your agreement set forth herein.

 

We
are pleased to offer you this opportunity at Alphatec.  We are confident that you will make many contributions
to our unique and exciting enterprise.

 

	
   

  	
   

  	
  Sincerely,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Vicky A. Romanoski

  
	
   

  	
   

  	
  Vicky A. Romanoski

  
	
   

  	
   

  	
  Chief Administrative Officer and

  
	
   

  	
   

  	
  Vice President

  

 

Read, Agreed to and Acknowledged:

 

	
  /s/ Trent J. Northcutt

  	
   

  	
   

  
	
  Signature

  	
   

  	
   

  
	
  Trent
  J. Northcutt

  	
   

  	
   

  

 

2051 Palomar Airport Road, Ste. 100, Carlsbad, California
 92011

Phone (760) 431-9286     
     Fax (760) 431-7863QuickLinks
 -- Click here to rapidly navigate through this document

Exhibit 10.11  

 
 

EMPLOYMENT AGREEMENT    
    

        THIS EMPLOYMENT AGREEMENT (the "Agreement"), made this 8th day of June, 2005, is entered into among Vicky A. Romanoski ("Employee"), Alphatec
Manufacturing, Inc., a California corporation (the "Company"), and AMI Acquisition I Corp., a Delaware corporation ("Parent"). 

        1.     Employment. Employee's employment with the Company shall commence on June 7, 2005 (the "Commencement Date") and
shall continue upon the terms set forth in this Agreement for the period set forth in Section 2 hereof. 

        2.     Term of Employment. 

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

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

        3.     Title; Capacity; Office. 

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

        (b)   Employee's
office shall be located at the Company's headquarters in Carlsbad, California, or at such other corporate headquarters approved by the Board of Directors (the
"Board"). Employee agrees that, while she will retain her residence in the Philadelphia area, she will not be, and will act in a way that she will not be perceived as, a commuter executive. 

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

        4.1   Salary. The Company shall pay Employee an annual base salary of $175,000.00, less applicable payroll withholdings,
commencing on the Commencement Date, payable in accordance with the Company's customary payroll practices, with salary increases, if any, to be determined by the CEO on an annual basis beginning
January, 2006. 

        4.2   Performance Bonus. Employee will be eligible to receive a cash performance bonus each fiscal year, payable within
30 days after the end of the Company's fiscal year, in an amount of up to 35% of the base salary for such fiscal year. In the fiscal year ended December 31, 2005 ("FY 2005"), Employee
will be entitled to her full performance bonus (which will be 35% of base salary paid from the Commencement Date through December 31, 2005) if the Company's Net Sales (as that term is used in
the Company's audited financial statements), exclusive of sales by businesses acquired from and after the Commencement Date and subject to the provisions of Schedule II ("Same Store Sales")
equal or exceed $50 million. In the event that Same Store Sales in FY 2005 are less than $40 million, Employee will receive no performance bonus. In the event that Same Store Sales in FY
2005 are between $40 million and $50 million, Employee will receive a percentage (which shall in no event exceed 100%) of her full performance bonus equal to (x) the 

 

excess
of Same Store Sales over $40 million divided by (y) $10 million. Thereafter, performance bonuses shall be based upon the achievement of objectives established by the CEO
prior to the commencement of the fiscal year. 

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

        4.4   Reimbursement of Expenses. Employee shall be entitled to prompt reimbursement for reasonable expenses set forth on
Schedule I incurred or paid by her in connection with, or related to the performance of, her duties, responsibilities or services under this Agreement, upon presentation by Employee of
documentation, expense statements, vouchers and/or such other supporting information as the Company may reasonably request. 

        4.5   Equity. Upon the Commencement Date, Employee shall be granted restricted shares of Series A-1 Common
Stock (the "Restricted Shares") of Parent representing approximately 0.25% of Parent's outstanding common stock. The Company agrees that any additional investment in equity capital by
non-employee investors will be made at fair market value. Upon the termination of Employee's employment, all restricted outstanding common stock shares that have not vested shall be
repurchased by the Company for an aggregate of $1.00. One hundred percent of such restricted shares will vest over a 5-year period in equal amounts beginning on the first anniversary of
the Commencement Date, and will vest immediately upon a Change in Control. All of such restricted shares that have not previously vested shall vest upon a Sale of the Company. For purposes of this
Agreement, a "Change in Control" shall occur on the date after the Commencement Date that: (i) any one person, entity or group acquires ownership of capital stock of the Company that, together
with the capital stock of the Company already held by such person, entity or group, constitutes more than 50% of the total fair market value or total voting power of the capital stock of the Company;
provided, however, if any one person, entity or group is considered to own more than 50% of the total fair market value or total voting power of the capital stock of the Company, the acquisition of
additional capital stock by the same person, entity or group shall not be deemed to be a Change in Control; (ii) a majority of members of the Board is replaced during any 12-month
period by directors whose appointment or election is not endorsed by a majority of the members of the Board prior to the date of the appointment or election; or (iii) any one person, entity or
group acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person, entity or group) assets from the Company that have a total
gross fair market value at least equal to 80% of the total gross fair market value of all of the assets of the Company immediately prior to such acquisition or acquisitions; provided, however, a
transfer of assets by the Company shall not deemed to be a Change in Control if the assets are transferred to (A) a shareholder of the Company (immediately before the asset transfer) in
exchange for or with respect to its capital stock in the Company, (B) an entity, 50% or more of the total value or voting power of which is owned, directly or indirectly, by the Company,
(C) a person, entity or group that owns, directly or indirectly, 50% or more of the total value or voting power of all the outstanding capital stock of the Company, or (D) an entity, at
least 50% of the total value or voting power of which is owned, directly or indirectly, by a person, entity or group described in subparagraph (C) above. In all respects, the definition of
"Change in Control" shall be interpreted to comply with Section 409A of the Internal Revenue Code of 1986, as amended, and the provisions of Treasury Notice 2005-1, and any
successor statute, regulation and guidance thereto (provided, however, that the Company does not guarantee any tax treatment of any payment or benefit in this Agreement). 

The
restricted shares shall also be subject to the terms of the Shareholders' Agreement entered into by the Company and the holders of the other shares of Series A-1 Common Stock. 

2

 

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

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

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

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

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

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

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

        6.     Effect of Termination. 

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

        6.2   Termination by the Company Without Cause. In the event that Employee's employment is terminated pursuant to
Section 5.2, the Company shall continue for a period of 12 months, or 18 months if such termination following a Change in Control, ("Severance Period") to pay to Employee her
annual base salary then in effect in the manner set forth in Section 4.1 and payment for accrued but untaken vacation days, and to provide benefits as set forth in section 4.5. Employee
shall also continue to be eligible for bonuses pursuant to Section 4.2, despite Employee's termination, for such 12-month (or 18-month) period;  provided, however, that in the event Employee is
terminated pursuant to Section 5.2 after a Change in Control, the Employee's bonus pursuant to
Section 4.2 for the fiscal year in which Employee is terminated shall be paid upon termination, and shall not be less than 100% of her target bonus (i.e., target bonus defined as 35% of then
base salary), prorated by multiplying the target bonus by the number of full or partial weeks Employee was employed during such fiscal year divided by 52 and the Employee shall continue to vest in her
restricted shares granted pursuant to Section 4.5 during the Severance Period. 

        7.     Non-disclosure and Non-competition. 

        7.1   Proprietary Information. 

        (a)   Employee
agrees that all information and know-how, whether or not in writing, of a private, secret or confidential nature concerning the Company's business
or financial affairs (collectively, "Proprietary Information") is and shall be the exclusive property of the 

3

 

Company.
By way of illustration, but not limitation, Proprietary Information may include inventions, products, processes, methods, techniques, formulas, compositions, compounds, projects,
developments, plans, research data, clinical data, financial data, personnel data, computer programs, and customer and supplier lists. Employee will not disclose any Proprietary Information to others
outside the Company or use the same for any unauthorized purposes without written approval by an officer of the Company, either during or after her employment, unless and until such Proprietary
Information has become public knowledge without fault by Employee. 

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

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

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

        7.2   Noncompetition; Nonsolicitation; Nondisparagement. 

        (a)   During
her employment with the Company, Employee shall not, directly or indirectly, render services of a business, professional or commercial nature to any other person
or entity that competes with the Company's business, whether for compensation or otherwise, or engage in any business activities competitive with the Company's business, whether alone, as an Employee,
as a partner, or as a shareholder (other than as the holder of not more than one percent of the combined voting power of the outstanding stock of a public company), officer or director of any
corporation or other business entity, or as a trustee, fiduciary or in any other similar representative capacity of any other entity. Notwithstanding the foregoing, the expenditure of reasonable
amounts of time as a member of other companies' Board of Directors shall not be deemed a breach of this if those activities do not materially interfere with the services required under this Agreement. 

        (b)   For
a period of one (1) year after termination of Employee's employment for any reason, Employee will not recruit solicit or induce, or attempt to induce, any
Employee or Employees of the Company to terminate their employment with, or otherwise cease their 

4

 

relationship
with, the Company; provided, however, that this provision shall not apply in the event that Employee is terminated pursuant to
section 5.2 following a Change in Control. 

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

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

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

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

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

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

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

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

        13.   Miscellaneous. 

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

5

 

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

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

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

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

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

6

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

	

 	
 	

/s/  VICKY A. ROMANOSKI      
 Vicky A. Romanoski
	

 	
 	

ALPHATEC MANUFACTURING, INC.
	

 	
 	

By:	
 	

/s/  JOHN H. FOSTER      
 John H. Foster

Chairman & Chief Executive Officer
	

 	
 	

AMI ACQUISITION I CORP.
	

 	
 	

By:	
 	

/s/  JOHN H. FOSTER      
 John H. Foster

Chairman & Chief Executive Officer

7

 
Schedule I  

        During the term of employment, Company to provide: 

	(a)
	Residence
in California—Company to provide for rental living, e.g., comfortable furnished town home with normal maintenance and upkeep (i.e.,
one-to-two bedrooms) in appropriate neighborhood, with Company to approve and sign lease;

	(b)
	Travel
expenses—Company to reimburse for first-class air travel to and from Philadelphia at discretion of Employee but subject to the agreement set forth in
Section 3(b) hereof;

	(c)
	Vehicle
expenses—Company to provide rental car in California;

	(d)
	Other
Expenses—Company to reimburse, at the discretion of the CEO, for normal business expenses associated with executive status relating to travel, airline clubs, dry
cleaning and laundry while in California, meal allowance while in California, and parking while in California. 

8

 

Schedule II  

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

9

AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT  

        This Amendment No. 1 to the Employment Agreement (this "Amendment") is made as of July 7, 2005 by and among Vicky A. Romanoski ("Employee"),
Alphatec Manufacturing, Inc., a California corporation (the "Company"), and Alphatec Holdings, Inc. (formerly known as AMI Acquisition I Corp.), a Delaware corporation ("Parent")
(collectively, the "Parties"). Capitalized terms undefined herein shall have the meaning ascribed them in the Agreement. 

RECITALS  

        Reference is made to that certain Employment Agreement dated June 8, 2005 by and among the Parties (the "Agreement"). 

        The
Parties desire to amend the Agreement as set forth herein. 

        Now,
therefore, in consideration of the mutual promises set forth herein and for other good and valuable consideration, the receipt and sufficiency of which is acknowledged by the
parties hereto, the parties hereto agree as follows. 

        1.     AMENDMENTS 

        1.1   Replacement of Section 4.2. Section 4.2 of the Agreement is hereby deleted in the entirety and is replaced
with the following: 

        "Employee
will be eligible to receive a cash performance bonus each fiscal year, payable within 30 days after the end of the Company's fiscal year, in an amount of up to 35% of
the base salary received by Employee for such fiscal year. In the fiscal year ended December 31, 2005 ("FY 2005"), Employee will be entitled to her full performance bonus (which will be 35% of
base salary paid from the Commencement Date through December 31, 2005) if the Company's Net Sales (as that term is used in the Company's audited financial statements), exclusive of sales by
businesses acquired from and after the Commencement Date and subject to the provisions of Schedule II ("Same Store Sales") equal or exceed $50 million. In the event that Same Store Sales
in FY 2005 are $33 million, Employee will receive 25% of her full performance bonus. In the event that Same Store Sales in FY 2005 are $40 million, Employee will receive 50% of her full
performance bonus. In the event that Same Store Sales in FY 2005 are between $33 million and $40 million, the percentage of Employee's full performance bonus shall be prorated between
25% and 50%, and in the event that Same Store Sales for FY 2005 are
between $40 million and $50 million, such percentage shall be prorated between 50% and 100%. After FY 2005, performance bonuses shall be based upon the achievement of objectives
established by the CEO prior to the commencement of the fiscal year." 

        1.2   No Other Changes. This Amendment constitutes the entire agreement between the parties concerning the subject matter
hereof. In the event of any conflict, ambiguity or inconsistency between the provisions of this Amendment and the Agreement, the provisions of this Amendment shall prevail. The remainder of the
Agreement shall remain in full force and effect, unamended. 

        IN
WITNESS WHEREOF, the parties hereto have executed this Amendment on the day and year set forth above. 

	

 	
 	

/s/  VICKY A. ROMANOSKI      
 Vicky A. Romanoski
	

 	
 	

ALPHATEC MANUFACTURING, INC.
	

 	
 	

By:	
 	

/s/  RONALD G. HISCOCK      
 Ronald G. Hiscock

President & Chief Operating Officer
	

 	
 	

ALPHATEC HOLDINGS, INC.
	

 	
 	

By:	
 	

/s/  JOHN H. FOSTER      
 John H. Foster

Chairman & Chief Executive Officer

AMENDMENT NO. 2 TO EMPLOYMENT AGREEMENT  

        This Amendment No. 2 to the Employment Agreement (this "Amendment") is made as of July 26, 2005 by and among Vicky A. Romanoski ("Employee"),
Alphatec Manufacturing, Inc., a California corporation (the "Company"), and Alphatec Holdings, Inc. (formerly known as AMI Acquisition I Corp.), a Delaware corporation ("Parent")
(collectively, the "Parties"). Capitalized terms undefined herein shall have the meaning ascribed them in the Agreement (as defined below). 

RECITALS  

        Reference is made to that certain Employment Agreement dated June 8, 2005, as amended by Amendment No. 1 to Employment Agreement dated July
    , 2005, by and among the Parties (collectively, the "Agreement"). 

        The
Parties desire to amend the Agreement as set forth herein. 

        Now,
therefore, in consideration of the mutual promises set forth herein and for other good and valuable consideration, the receipt and sufficiency of which is acknowledged by the
parties hereto, the parties hereto agree as follows. 

        2.     AMENDMENTS

        2.1   Salary. The annual base salary set forth in Section 4.1 of the Agreement is hereby increased from $175,000.00 to
$225,000.00. 

        2.2   Performance Bonus. The performance bonus set forth in Section 4.2 of the Agreement is hereby increased from up to
35% of base salary to up to 50% of base salary. Accordingly, the target bonus parenthetically referenced in Section 6.2 of the Agreement is hereby increased from 35% to 50%. 

        2.3   Equity. The number of Restricted Shares granted under Section 4.5 of the Agreement is hereby increased from
approximately 0.25% to approximately 0.4167%. 

        2.4   Effective Date. This Amendment shall be effective retroactively as of the Commencement Date. 

        2.5   No Other Changes. This Amendment constitutes the entire agreement between the parties concerning the subject matter
hereof. In the event of any conflict, ambiguity or inconsistency between the provisions of this Amendment and the Agreement, the provisions of this Amendment shall prevail. The remainder of the
Agreement shall remain in full force and effect, unamended. 

(Continued on Next Page)

        IN
WITNESS WHEREOF, the parties hereto have executed this Amendment on the day and year set forth above. 

	

 	
 	

/s/  VICKY A. ROMANOSKI      
 Vicky A. Romanoski
	

 	
 	

ALPHATEC MANUFACTURING, INC.
	

 	
 	

By:	
 	

/s/  RONALD G. HISCOCK      
 Ronald G. Hiscock

President & Chief Operating Officer
	

 	
 	

ALPHATEC HOLDINGS, INC.
	

 	
 	

By:	
 	

/s/  JOHN H. FOSTER      
 John H. Foster

Chairman & Chief Executive Officer

QuickLinks

EMPLOYMENT AGREEMENT

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