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Exhibit 10.3  

 
 

INCENTIVE STOCK OPTION AGREEMENT    
    
    ALPHATEC HOLDINGS, INC.    
    

        AGREEMENT made as of the    day of            200  , between Alphatec Holdings, Inc. (the
"Company"), a Delaware corporation,
and                        , an employee of the Company (the "Employee"). 

        WHEREAS,
the Company desires to grant to the Employee an Option to purchase shares of its Series A-1 Common Stock, $.0001 par value per share (the "Shares"), under and
for the purposes set forth in the Company's 2005 Employee, Director and Consultant Stock Plan (the "Plan"); 

        WHEREAS,
the Company and the Employee understand and agree that any terms used and not defined herein have the same meanings as in the Plan; and 

        WHEREAS,
the Company and the Employee each intend that the Option granted herein qualify as an ISO. 

        NOW,
THEREFORE, in consideration of the mutual covenants hereinafter set forth and for other good and valuable consideration, the parties hereto agree as follows: 

1.     GRANT OF OPTION. 

        The
Company hereby grants to the Employee the right and option to purchase all or any part of an aggregate
of                        Shares, on the terms and conditions and subject to all the
limitations set forth herein,
under United States securities and tax laws, and in the Plan, which is incorporated herein by reference. The Employee acknowledges receipt of a copy of the Plan. 

2.     PURCHASE PRICE. 

        The
purchase price of the Shares covered by the Option shall be $            per Share, subject to adjustment, as provided in the Plan, in the event of a stock split, reverse stock
split or other events affecting the holders of Shares (the "Purchase Price"). Payment shall be made in accordance with Paragraph 8 of the Plan. 

3.     EXERCISABILITY OF OPTION. 

        Subject
to the terms and conditions set forth in this Agreement and the Plan, the Option granted hereby shall become exercisable as follows: 

	

On the first anniversary of the date of this Agreement	
 	

up to            Shares
	

On the second anniversary of the date of this Agreement	
 	

an additional            Shares
	

On the third anniversary of the date of this Agreement	
 	

an additional            Shares
	

On the fourth anniversary of the date of this Agreement	
 	

an additional            Shares
	

On the fifth anniversary of the date of this Agreement	
 	

an additional            Shares

        The
foregoing rights are cumulative and are subject to the other terms and conditions of this Agreement and the Plan. 

        Notwithstanding
the foregoing, in the event of a Change of Control, 100% of the Shares which would have vested in each vesting installment remaining under this Option will be vested for
purposes of Section 23(b) of the Plan unless this Option has otherwise expired or been terminated pursuant to its terms or the terms of the Plan. 

 

4.     TERM OF OPTION. 

        The
Option shall terminate ten years from the date of this Agreement or, if the Employee owns as of the date hereof more than 10% of the total combined voting power of all classes of
capital stock of the Company or an Affiliate, five years from the date of this Agreement, but shall be subject to earlier termination as provided herein or in the Plan. 

        If
the Employee ceases to be an employee of the Company or of an Affiliate (for any reason other than the death or Disability of the Employee or termination of the Employee's employment
for Cause (as defined in the Plan)), the Option may be exercised, if it has not previously terminated, within three months after the date the Employee ceases to be an employee of the Company or an
Affiliate, or within the originally prescribed term of the Option, whichever is earlier, but may not be exercised thereafter. In such event, the Option shall be exercisable only to the extent that the
Option has become exercisable and is in effect at the date of such cessation of employment. 

        Notwithstanding
the foregoing, in the event of the Employee's Disability or death within three months after the termination of employment, the Employee or the Employee's Survivors may
exercise the Option within one year after the date of the Employee's termination of employment, but in no event after the date of expiration of the term of the Option. 

        In
the event the Employee's employment is terminated by the Employee's employer for Cause, the Employee's right to exercise any unexercised portion of this Option shall cease immediately
as of the time the Employee is notified his or her employment is terminated for Cause, and this Option shall thereupon terminate. Notwithstanding anything herein to the contrary, if subsequent to the
Employee's termination as an employee, but prior to the exercise of the Option, the Board of Directors of the Company determines that, either prior or subsequent to the Employee's termination, the
Employee
engaged in conduct which would constitute Cause, then the Employee shall immediately cease to have any right to exercise the Option and this Option shall thereupon terminate. 

        In
the event of the Disability of the Employee, as determined in accordance with the Plan, the Option shall be exercisable within one year after the Employee's termination of employment
or, if earlier, within the term originally prescribed by the Option. In such event, the Option shall be exercisable: 

	(a)
	to
the extent that the Option has become exercisable but has not been exercised as of the date of Disability; and

	(b)
	in
the event rights to exercise the Option accrue periodically, to the extent of a pro rata portion through the date of Disability of any additional vesting rights that would have
accrued on the next vesting date had the Employee not become Disabled. The proration shall be based upon the number of days accrued in the current vesting period prior to the date of Disability. 

        In
the event of the death of the Employee while an employee of the Company or of an Affiliate, the Option shall be exercisable by the Employee's Survivors within one year after the date
of death of the Employee or, if earlier, within the originally prescribed term of the Option. In such event, the Option shall be exercisable: 

	(x)
	to
the extent that the Option has become exercisable but has not been exercised as of the date of death; and

	(y)
	in
the event rights to exercise the Option accrue periodically, to the extent of a pro rata portion through the date of death of any additional vesting rights that would have accrued
on the next vesting date had the Employee not died. The proration shall be based upon the number of days accrued in the current vesting period prior to the Employee's date of death. 

2

 

5.     METHOD OF EXERCISING OPTION. 

        Subject
to the terms and conditions of this Agreement, the Option may be exercised by written notice to the Company or its designee, in substantially the form of  Exhibit A attached hereto. Such notice
shall state the number of Shares with respect to which the Option is being exercised and shall be signed
by the person exercising the Option. Payment of the purchase price for such Shares shall be made in accordance with Paragraph 8 of the Plan. The Company shall deliver a certificate or
certificates representing such Shares as soon as practicable after the notice shall be received, provided, however, that the Company may delay issuance of such Shares until completion of any action or
obtaining of any consent, which the Company deems necessary under any applicable law (including, without limitation, state securities or "blue sky" laws). The certificate or certificates for the
Shares as to which the Option shall have been so exercised shall be registered in the Company's share register in the name of the person so exercising the Option (or, if the Option shall be exercised
by the Employee and if the Employee shall so request in the notice exercising the Option, shall be registered in the name of the Employee and another person jointly, with right of survivorship) and
shall be delivered as provided above to or upon the written order of the person exercising the Option. In the event the Option shall be exercised, pursuant to Section 4 hereof, by any person
other than the Employee, such notice shall be accompanied by appropriate proof of the right of such person to exercise the Option. All Shares that shall be purchased upon the exercise of the Option as
provided herein shall be fully paid and nonassessable. 

6.     PARTIAL EXERCISE. 

        Exercise
of this Option to the extent above stated may be made in part at any time and from time to time within the above limits, except that no fractional share shall be issued pursuant
to this Option. 

7.     NON-ASSIGNABILITY. 

        The
Option shall not be transferable by the Employee otherwise than by will or by the laws of descent and distribution. The Option shall be exercisable, during the Employee's lifetime,
only by the Employee (or, in the event of legal incapacity or incompetency, by the Employee's guardian or representative) and shall not be assigned, pledged or hypothecated in any way (whether by
operation of law or otherwise) and shall not be subject to execution, attachment or similar process. Any attempted transfer, assignment, pledge, hypothecation or other disposition of the Option or of
any rights granted hereunder contrary to the provisions of this Section 7, or the levy of any attachment or similar process upon the Option shall be null and void. 

8.     NO RIGHTS AS STOCKHOLDER UNTIL EXERCISE. 

        The
Employee shall have no rights as a stockholder with respect to Shares subject to this Agreement until registration of the Shares in the Company's share register in the name of the
Employee. Except as is expressly provided in the Plan with respect to certain changes in the capitalization of the Company, no adjustment shall be made for dividends or similar rights for which the
record date is prior to the date of such registration. 

9.     ADJUSTMENTS. 

        The
Plan contains provisions covering the treatment of Options in a number of contingencies such as stock splits and mergers. Provisions in the Plan for adjustment with respect to stock
subject to Options and the related provisions with respect to successors to the business of the Company are hereby made applicable hereunder and are incorporated herein by reference; provided,
however, that in the event of a Change of Control, 100% of the Shares which would have vested in each vesting installment remaining under this Option will be vested for purposes of
Section 23(b) of the Plan. 

3

 

10.   TAXES. 

        The
Employee acknowledges that any income or other taxes due from him or her with respect to this Option or the Shares issuable pursuant to this Option shall be the Employee's
responsibility. 

        In
the event of a Disqualifying Disposition (as defined in Section 15 below) or if the Option is converted into a Non-Qualified Option and such
Non-Qualified Option is exercised, the Company may withhold from the Employee's remuneration, if any, the minimum statutory amount of Federal, state and local withholding taxes
attributable to such amount that is considered compensation includable in such person's gross income. At the Company's discretion, the amount required to be withheld may be withheld in cash from such
remuneration, or in kind from the Shares otherwise deliverable to the Employee on exercise of the Option. The Employee further agrees that, if the Company does not withhold an amount from the
Employee's remuneration sufficient to satisfy the Company's income tax withholding obligation, the Employee will reimburse the Company on demand, in cash, for the amount under-withheld. 

11.   PURCHASE FOR INVESTMENT. 

        Unless
the offering and sale of the Shares to be issued upon the particular exercise of the Option shall have been effectively registered under the Securities Act of 1933, as now in
force or hereafter amended (the "1933 Act"), the Company shall be under no obligation to issue the Shares covered by such exercise unless and until the following conditions have been fulfilled: 

	(a)
	The
person(s) who exercise the Option shall warrant to the Company, at the time of such exercise, that such person(s) are acquiring such Shares for their own respective accounts, for
investment, and not with a view to, or for sale in connection with, the distribution of any such Shares, in which event the person(s) acquiring such Shares shall be bound by the provisions of the
following legend which shall be endorsed upon the certificate(s) evidencing the Shares issued pursuant to such exercise: 

"The
shares represented by this certificate have been taken for investment and they may not be sold or otherwise transferred by any person, including a pledgee, unless (1) either (a) a
Registration Statement with respect to such shares shall be effective under the Securities Act of 1933, as amended, or (b) the Company shall have received an opinion of counsel satisfactory to
it that an exemption from registration under such Act is then available, and (2) there shall have been compliance with all applicable state securities laws;" and 

	(b)
	If
the Company so requires, the Company shall have received an opinion of its counsel that the Shares may be issued upon such particular exercise in compliance with the 1933 Act
without registration thereunder. Without limiting the generality of the foregoing, the Company may delay issuance of the Shares until completion of any action or obtaining of any consent, which the
Company deems necessary under any applicable law (including without limitation state securities or "blue sky" laws). 

12.   RESTRICTIONS ON TRANSFER OF SHARES. 

	12.1
	Upon
acquiring any Shares pursuant to the exercise of the Option, the Employee agrees to become a party to the Stockholders Agreement dated March 17, 2005 between the Company
and its stockholders (the "Stockholders Agreement"), and Employee agrees to execute any certificates or other documentation that the Company deems appropriate in order for the Employee to become a
party to the Stockholders Agreement. The Shares acquired by the Employee pursuant to the exercise of the Option granted hereby shall not be transferred by the Employee except as permitted in the
Stockholders Agreement. 

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	12.2
	If,
in connection with a registration statement filed by the Company pursuant to the 1933 Act, the Company or its underwriter so requests, the Employee will agree not to sell any
Shares for a period not to exceed 180 days following the effectiveness of such registration.

	12.3
	The
Employee acknowledges and agrees that neither the Company, its shareholders nor its directors and officers, has any duty or obligation to disclose to the Employee any material
information regarding the business of the Company or affecting the value of the Shares before, at the time of, or following a termination of the employment of the Employee by the Company, including,
without limitation, any information concerning plans for the Company to make a public offering of its securities or to be acquired by or merged with or into another firm or entity.

	12.4
	All
certificates representing the Shares to be issued to the Employee pursuant to this Agreement shall have endorsed thereon a legend substantially as follows: "The shares
represented by this certificate are subject to restrictions set forth in an Incentive Stock Option Agreement
dated                        , 200    with this Company, a copy of which Agreement is
available for inspection at the offices of the Company or will be made available upon request." 

13.   NO OBLIGATION TO EMPLOY. 

        The
Company is not by the Plan or this Option obligated to continue the Employee as an employee of the Company or an Affiliate. The Employee acknowledges: (a) that the Plan is
discretionary in nature and may be suspended or terminated by the Company at any time; (b) that the grant of the Option is a one-time benefit which does not create any contractual
or other right to receive future grants of options, or benefits in lieu of options; (c) that all determinations with respect to any such future grants, including, but not limited to, the times
when options shall be granted, the number of shares subject to each option, the option price, and the time or times when each option shall be
exercisable, will be at the sole discretion of the Company; (d) that the Employee's participation in the Plan is voluntary; (e) that the value of the Option is an extraordinary item of
compensation which is outside the scope of the Employee's employment contract, if any; and (f) that the Option is not part of normal or expected compensation for purposes of calculating any
severance, resignation, redundancy, end of service payments, bonuses, long-service awards, pension or retirement benefits or similar payments. 

14.   OPTION IS INTENDED TO BE AN ISO. 

        The
parties each intend that the Option be an ISO so that the Employee (or the Employee's Survivors) may qualify for the favorable tax treatment provided to holders of Options that meet
the standards of Section 422 of the Code. Any provision of this Agreement or the Plan which conflicts with the Code so that this Option would not be deemed an ISO is null and void and any
ambiguities shall be resolved so that the Option qualifies as an ISO. Nonetheless, if the Option is determined not to be an ISO, the Employee understands that neither the Company nor any Affiliate is
responsible to compensate him or her or otherwise make up for the treatment of the Option as a Non-Qualified Option and not as an ISO. The Employee should consult with the Employee's own
tax advisors regarding the tax effects of the Option and the requirements necessary to obtain favorable tax treatment under Section 422 of the Code, including, but not limited to, holding
period requirements. 

15.   NOTICE TO COMPANY OF DISQUALIFYING DISPOSITION. 

        The
Employee agrees to notify the Company in writing immediately after the Employee makes a Disqualifying Disposition of any of the Shares acquired pursuant to the exercise of the
Option. A Disqualifying Disposition is defined in Section 424(c) of the Code and includes any disposition (including any sale) of such Shares before the later of (a) two years after the
date the Employee was granted the Option or (b) one year after the date the Employee acquired Shares by exercising the 

5

 

Option,
except as otherwise provided in Section 424(c) of the Code. If the Employee has died before the Shares are sold, these holding period requirements do not apply and no Disqualifying
Disposition can occur thereafter. 

16.   NOTICES. 

        Any
notices required or permitted by the terms of this Agreement or the Plan shall be given by recognized courier service, facsimile, registered or certified mail, return receipt
requested, addressed as follows: 

	If to the Company:	 	Alphatec Holdings, Inc.

6110 Corte Del Cedro

Carlsbad, CA 92009
	

If to the Participant:	
 	

 

or
to such other address or addresses of which notice in the same manner has previously been given. Any such notice shall be deemed to have been given upon the earlier of receipt, one business day
following delivery to a recognized courier service or three business days following mailing by registered or certified mail. 

17.   GOVERNING LAW. 

        This
Agreement shall be construed and enforced in accordance with the law of the State of Delaware, without giving effect to the conflict of law principles thereof. For the purpose of
litigating any dispute that arises under this Agreement, the parties hereby consent to exclusive jurisdiction in Delaware and agree that such litigation shall be conducted in the state courts of
Delaware or the federal courts of the United States for the District of Delaware. 

18.   BENEFIT OF AGREEMENT. 

        Subject
to the provisions of the Plan and the other provisions hereof, this Agreement shall be for the benefit of and shall be binding upon the heirs, executors, administrators,
successors and assigns of the parties hereto. 

19.   ENTIRE AGREEMENT. 

        This
Agreement, together with the Plan and the Stockholders Agreement, embodies the entire agreement and understanding between the parties hereto with respect to the subject matter
hereof and supersedes all prior oral or written agreements and understandings relating to the subject matter hereof. No statement, representation, warranty, covenant or agreement not expressly set
forth in this Agreement shall affect or be used to interpret, change or restrict, the express terms and provisions of this Agreement, provided, however, in any event, this Agreement shall be subject
to and governed by the Plan. 

20.   MODIFICATIONS AND AMENDMENTS. 

        The
terms and provisions of this Agreement may be modified or amended as provided in the Plan. 

21.   WAIVERS AND CONSENTS. 

        Except
as provided in the Plan, the terms and provisions of this Agreement may be waived, or consent for the departure therefrom granted, only by written document executed by the party
entitled to the benefits of such terms or provisions. No such waiver or consent shall be deemed to be or shall constitute a waiver or consent with respect to any other terms or provisions of this
Agreement, whether 

6

 

or
not similar. Each such waiver or consent shall be effective only in the specific instance and for the purpose for which it was given, and shall not constitute a continuing waiver or consent. 

22.   DATA PRIVACY. 

        By
entering into this Agreement, the Employee: (a) authorizes the Company and each Affiliate, and any agent of the Company or any Affiliate administering the Plan or providing
Plan recordkeeping services, to disclose to the Company or any of its Affiliates such information and data as the Company or any such Affiliate shall request in order to facilitate the grant of
options and the administration of the Plan; (b) waives any data privacy rights he or she may have with respect to such information; and
(c) authorizes the Company and each Affiliate to store and transmit such information in electronic form. 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK] 

7

 

        IN
WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly authorized officer, and the Employee has hereunto set his or her hand, all as of the day and year
first above written. 

	 	 	ALPHATEC HOLDINGS, INC.
	

 	
 	
By:	

	 	 	Name:	 
	 	 	Title:	 
	

 	
 	

 Employee

8

  

Exhibit A  

 
 

NOTICE OF EXERCISE OF INCENTIVE STOCK OPTION    
    
    [Form for Unregistered Shares]

To:
Alphatec Holdings, Inc. 

Ladies
and Gentlemen: 

        I
hereby exercise my Incentive Stock Option to purchase                        shares (the "Shares") of Series A-1 Common Stock,
 $.0001 par value, of Alphatec
Holdings, Inc. (the "Company"), at the exercise price of $            per share, pursuant to and subject to the terms of that certain Incentive Stock Option Agreement between the
undersigned and the Company dated                        , 200  . 

        I
am aware that the Shares have not been registered under the Securities Act of 1933, as amended (the "1933 Act"), or any state securities laws. I understand that the reliance by the
Company on exemptions under the 1933 Act is predicated in part upon the truth and accuracy of the statements by me in this Notice of Exercise. 

        I
hereby represent and warrant that (1) I have been furnished with all information which I deem necessary to evaluate the merits and risks of the purchase of the Shares;
(2) I have had the opportunity to ask questions concerning the Shares and the Company and all questions posed have been answered to my satisfaction; (3) I have been given the opportunity
to obtain any additional information I deem
necessary to verify the accuracy of any information obtained concerning the Shares and the Company; and (4) I have such knowledge and experience in financial and business matters that I am able
to evaluate the merits and risks of purchasing the Shares and to make an informed investment decision relating thereto. 

        I
hereby represent and warrant that I am purchasing the Shares for my own personal account for investment and not with a view to the sale or distribution of all or any part of the
Shares. 

        I
understand that because the Shares have not been registered under the 1933 Act, I must continue to bear the economic risk of the investment for an indefinite time and the Shares cannot
be sold unless the Shares are subsequently registered under applicable federal and state securities laws or an exemption from such registration requirements is available. 

        I
agree that I will in no event sell or distribute or otherwise dispose of all or any part of the Shares unless (1) there is an effective registration statement under the 1933 Act
and applicable state securities laws covering any such transaction involving the Shares or (2) the Company receives an opinion of my legal counsel (concurred in by legal counsel for the
Company) stating that such transaction is exempt from registration or the Company otherwise satisfies itself that such transaction is exempt from registration. 

        I
consent to the placing of a legend on my certificate for the Shares stating that the Shares have not been registered and setting forth the restriction on transfer contemplated hereby
and to the placing of a stop transfer order on the books of the Company and with any transfer agents against the Shares until the Shares may be legally resold or distributed without restriction. 

        I
understand that at the present time Rule 144 of the Securities and Exchange Commission (the "SEC") may not be relied on for the resale or distribution of the Shares by me. I
understand that the Company has no obligation to me to register the sale of the Shares with the SEC and has not represented to me that it will register the sale of the Shares. 

        I
understand the terms and restrictions on the right to dispose of the Shares set forth in the 2005 Employee, Director and Consultant Stock Plan and the Incentive Stock Option Agreement,
both of 

A-1

 

which
I have carefully reviewed. I consent to the placing of a legend on my certificate for the Shares referring to such restriction and the placing of stop transfer orders until the Shares may be
transferred in accordance with the terms of such restrictions. 

        I
have considered the Federal, state and local income tax implications of the exercise of my Option and the purchase and subsequent sale of the Shares. 

        I
am paying the option exercise price for the Shares as follows: 

	

        Please
issue the stock certificate for the Shares (check one): 

        o  to
me; or 

        o  to me
and                        , as joint tenants with right of survivorship 

and mail the certificate to me at the following address: 

	

	
 	

 
	

	
 	

 
	

	
 	

 

My
mailing address for shareholder communications, if different from the address listed above is: 

	

	
 	

 
	

	
 	

 
	

	
 	

 

	

 	
 	

Very truly yours,
	

 	
 	

 Employee (signature)
	

 	
 	

 Print Name
	

 	
 	

 Date
	

 	
 	

 Social Security Number

A-2

  

Exhibit A  

 
 

NOTICE OF EXERCISE OF INCENTIVE STOCK OPTION    
    
    [Form For Registered Shares]

TO:
Alphatec Holdings, Inc. 

IMPORTANT
NOTICE: This form of Notice of Exercise may only be used at such time as the Company has filed a Registration Statement with the Securities and Exchange Commission under which the issuance
of the Shares for which this exercise is being made is registered and such Registration Statement remains effective. 

Ladies
and Gentlemen: 

        I
hereby exercise my Incentive Stock Option to purchase                        shares (the "Shares") of Series A-1 Common Stock,
 $.0001 par value, of Alphatec
Holdings, Inc. (the "Company"), at the exercise price of $            per share, pursuant to and subject to the terms of that certain Incentive Stock Option Agreement between the
undersigned and the Company dated                        , 200  . 

        I
understand the nature of the investment I am making and the financial risks thereof. I am aware that it is my responsibility to have consulted with competent tax and legal advisors
about the relevant Federal, state and local income tax and securities laws affecting the exercise of the Option and the purchase and subsequent sale of the Shares. 

        I
am paying the option exercise price for the Shares as follows: 

	

        Please
issue the Shares (check one): 

        o  to
me; or 

        o  to me
and                        , as joint tenants with right of survivorship, 

at the following address: 

	

	
 	

 
	

	
 	

 
	

	
 	

 

My
mailing address for shareholder communications, if different from the address listed above, is: 

	

	
 	

 
	

	
 	

 
	

	
 	

 

A-1

 

	

 	
 	

Very truly yours,
	

 	
 	

 Employee (signature)
	

 	
 	

 Print Name
	

 	
 	

 Date
	

 	
 	

 Social Security Number

A-2

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INCENTIVE STOCK OPTION AGREEMENT ALPHATEC HOLDINGS, INC.

NOTICE OF EXERCISE OF INCENTIVE STOCK OPTION [Form for Unregistered Shares]

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Exhibit 10.4  

 
 

RESTRICTED STOCK AGREEMENT    
    
    ALPHATEC HOLDINGS, INC.    
    

        AGREEMENT made as of the    day
of                        , 200    (the "Grant Date"), between Alphatec Holdings, Inc. (the "Company"), a
Delaware corporation, and                        (the "Participant"). 

        WHEREAS,
the Company has adopted the Alphatec Holdings, Inc. 2005 Employee, Director and Consultant Stock Plan (the "Plan") to promote the interests of the Company by providing an
incentive for employees, directors and consultants of the Company or its Affiliates; 

        WHEREAS,
pursuant to the provisions of the Plan, the Company desires to offer for sale to the Participant shares of the Company's Series A-1 Common Stock, $.0001 par
value per share ("Common Stock"), in accordance with the provisions of the Plan, all on the terms and conditions hereinafter set forth; 

        WHEREAS,
Participant wishes to accept said offer; and 

        WHEREAS,
the parties hereto understand and agree that any terms used and not defined herein have the meanings ascribed to such terms in the Plan and that any and all references herein to
employment of the Participant by the Company shall include the Participant's employment or service as an employee, director or consultant of the Company or any Affiliate. 

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

        1.    Terms of Purchase.    The Participant hereby accepts the offer of the Company to issue to the Participant, in
accordance with the terms of the Plan and this Agreement,                        Shares of the Company's Common Stock (such shares,
 subject to adjustment pursuant to Section 23 of the Plan and
Subsection 2.1(h) hereof, the "Granted Shares") at a purchase price per share of $            (the "Purchase Price"), receipt of which is hereby acknowledged by the Company. Payment shall be
made
in accordance with Section 8 of the Plan. 

        The
Participant hereby agrees to become a party to the Stockholders Agreement dated March 17, 2005 between the Company and its stockholders (the "Stockholders Agreement"), and
Participant agrees to execute any certificates or other documentation that the Company deems appropriate in order for the Participant to become a party to the Stockholders Agreement. In addition to
the restrictions expressly set forth in this Agreement, the Granted Shares hereby shall not be transferred by the Participant except as permitted in the Stockholders Agreement. 

        2.1.  Company's Lapsing Repurchase Right. 

        (a)    Lapsing Repurchase Right.    Except as set forth in Subsections 2.1(b) and 2.1(c) hereof, in the event that for
any reason the Participant no longer is an employee, director or consultant of the Company or an Affiliate prior to the fifth (5) anniversary of the Grant Date, the Company (or its designee)
shall have the option, but not the obligation, to purchase from the Participant (or the Participant's Survivor), and, in the event the Company exercises such option, the Participant (or the
Participant's Survivor) shall be obligated to sell to the Company (or its designee), at a price per Granted Share equal to the Purchase Price, all or any part of the Granted Shares set forth in
clauses (i), (ii) and (iii) below (the "Lapsing Repurchase Right"). The Company's Lapsing Repurchase Right shall be valid for a period of one year commencing with the date of such
termination of employment or service. Notwithstanding any other provision hereof, in the event the Company is prohibited during such one year period from exercising its Lapsing Repurchase Right by
applicable law, then the time 

 

period
during which such Lapsing Repurchase Right may be exercised shall be extended until 30 days after the Company is first not so prohibited. 

          (i)  If
such termination is prior to the first anniversary of the Grant Date, the Company shall have the option to repurchase all of the Granted Shares acquired by the
Participant hereunder. 

         (ii)  If
such termination is on or after the first anniversary of the Grant Date, the Company shall have the option to repurchase all of the Granted Shares less 20% of the
Granted Shares for each full 12-month period elapsed after the Grant Date that the Participant continues to serve as an employee, director or consultant of the Company or an Affiliate. 

        (iii)  Notwithstanding
anything to the contrary contained in this Agreement, in the event the Company or an Affiliate terminates the Participant's employment or service for
Cause (as defined in the Plan) or in the event the Administrator determines, within 90 days after the Participant's termination, that either prior or subsequent to the Participant's termination
the Participant engaged in conduct that would constitute Cause, the Company shall have the option to repurchase all of the Granted Shares acquired by the Participant hereunder at the Purchase Price. 

        (b)    Effect of Termination for Disability or upon Death.    Except as otherwise provided in Subsection
2.1(a)(iii) above, the following rules apply if the Participant ceases to be an employee, director or consultant of the Company or an Affiliate by reason of Disability or death: to the extent
the Company's Lapsing Repurchase Right has not lapsed as of the date of Disability or death, as case may be, the Company may exercise such Lapsing Repurchase Right; provided, however, that the
Company's Lapsing Repurchase Right shall be deemed to have lapsed to the extent of a pro rata portion of the Granted Shares through the date of Disability or death, as would have lapsed had the
Participant not become Disabled or died, as the case may be. The proration shall be based upon the number of days accrued in such current vesting period prior to the Participant's date of Disability
or death, as the case may be. 

        (c)    Effect of Change in Control.    Except as otherwise provided in Subsection 2.1(a)(iii) above, the
Company's Lapsing Repurchase Right shall terminate, and the Participant's ownership of all Granted Shares then owned by the Participant shall become vested, in the event of a Change of Control of the
Company. 

        (d)    Closing.    In the event that the Company exercises the Lapsing Repurchase Right, the Company shall notify the
Participant, or, in the case of the Participant's death, his or her Survivor, in writing of its intent to repurchase the Granted Shares. Such notice may be mailed by the Company up to and including
the last day of the time period provided for above for exercise of the Lapsing Repurchase Right. The notice shall specify the place, time and date for payment of the repurchase price (the "Closing")
and the number of Granted Shares with respect to which the Company is exercising the Lapsing Repurchase Right. The Closing shall be not less than ten days nor more than 60 days from the date of
mailing of the notice, and the Participant or the Participant's Survivor with respect to the Granted Shares which the Company elects to repurchase shall have no further rights as the owner thereof
from and after the date specified in the notice. At the Closing, the repurchase price shall be delivered to the Participant or the Participant's Survivor and the Granted Shares being repurchased, duly
endorsed for transfer, shall, to the extent that they are not then in the possession of the Company, be delivered to the Company by the Participant or the Participant's Survivor. 

        (e)    Escrow.    The certificates representing all Granted Shares acquired by the Participant hereunder which from
time to time are subject to the Lapsing Repurchase Right shall be delivered to the Company and the Company shall hold such Granted Shares in escrow as provided in this Subsection 2.1(e). Promptly
following receipt by the Company of a written request from the Participant, the Company shall release from escrow and deliver to the Participant a certificate for the whole number of Granted Shares,
if any, as to which the Company's Lapsing Repurchase Right has lapsed. In 

2

 

the
event of a repurchase by the Company of Granted Shares subject to the Lapsing Repurchase Right, the Company shall release from escrow and cancel a certificate for the number of Granted Shares so
repurchased. Any securities distributed in respect of the Granted Shares held in escrow, including, without limitation, shares issued as a result of stock splits, stock dividends or other
recapitalizations, shall also be held in escrow in the same manner as the Granted Shares. 

        (f)    Prohibition on Transfer.    The Participant recognizes and agrees that all Granted Shares which are subject to
the Lapsing Repurchase Right may not be sold, transferred, assigned, hypothecated, pledged, encumbered or otherwise disposed of, whether voluntarily or by operation of law, other than to the Company
(or its designee). The Company shall not be required to transfer any Granted Shares on its books which shall have been sold, assigned or otherwise transferred in violation of this Subsection 2.1(f),
or to treat as the owner of such Granted Shares, or to accord the right to vote as such owner or to pay dividends to, any person or organization to which any such Granted Shares shall have been so
sold, assigned or otherwise transferred, in violation of this Subsection 2.1(f). 

        (g)    Failure to Deliver Granted Shares to be Repurchased.    In the event that the Granted Shares to be repurchased
by the Company under this Agreement are not in the Company's possession pursuant to Subsection 2.1(e) above or otherwise and the Participant or the Participant's Survivor fails to deliver such Granted
Shares to the Company (or its designee), the Company may elect (i) to establish a segregated account in the amount of the repurchase price, such account to be turned over to the Participant or
the Participant's Survivor upon delivery of such Granted Shares, and (ii) immediately to take such action as is appropriate to transfer record title of such Granted Shares from the Participant
to the Company (or its designee) and to treat the Participant and such Granted Shares in all respects as if delivery of such Granted Shares had been made as required by this Agreement. The Participant
hereby irrevocably grants the Company a power of attorney which shall be coupled with an interest for the purpose of effectuating the preceding sentence. 

        (h)    Adjustments.    The Plan contains provisions covering the treatment of Shares in a number of contingencies such
as stock splits and mergers. Provisions in the Plan for adjustment with respect to the Shares and the related provisions with respect to successors to the business of the Company are hereby made
applicable hereunder and are incorporated herein by reference. 

        2.2   Other Restrictions. 

        (a)   In
addition to the restrictions set forth above, the Granted Shares shall remain subject to the terms and provisions of the Stockholders Agreement to which the
Participant is a party. 

        (b)   If,
in connection with a registration statement filed by the Company pursuant to the Securities Act of 1933, as amended (the "1933 Act"), the Company or its underwriter
so requests, the Participant will agree not to sell any of his Granted Shares for a period not to exceed the lesser of: (i) 180 days following the effectiveness of such registration
statement or (ii) such period as the officers and directors of the Company agree not to sell their Common Stock of the Company. 

        (c)   The
Participant acknowledges and agrees that neither the Company, its shareholders nor its directors and officers, has any duty or obligation to disclose to the
Participant any material information regarding the business of the Company or affecting the value of the Shares before, at the time of, or following a termination of the employment of the Participant
by the Company or an Affiliate, including, without limitation, any information concerning plans for the Company to make a public offering of its securities or to be acquired by or merged with or into
another firm or entity. 

3

 

        3.    Legend.    In addition to any legend required pursuant to the Plan, all certificates representing the Granted
Shares to be issued to the Participant pursuant to this Agreement shall have endorsed thereon a legend substantially as follows: 

"The
shares represented by this certificate are subject to restrictions set forth in a Restricted Stock Agreement dated as
of                        , 200    with this Company, a copy of which
Agreement is available for inspection at the offices of the Company or will be made available upon request." 

        4.    Purchase for Investment; Securities Law Compliance.    If the offering and sale of the Granted Shares have not
been effectively registered under the 1933 Act, the Participant hereby represents and warrants that he or she is acquiring the Granted Shares for his or her own account, for investment, and not with a
view to, or for sale in connection with, the distribution of any such Granted Shares. The Participant specifically acknowledges and agrees that any sales of Granted Shares shall be made in accordance
with the requirements of the 1933 Act, in a transaction as to which the Company shall have received an opinion of counsel satisfactory to it confirming such compliance. The Participant shall be bound
by the provisions of the following legend which shall be endorsed upon the certificate(s) evidencing the Shares issued: 

"The
shares represented by this certificate have been taken for investment and they may not be sold or otherwise transferred by any person, including a pledgee, unless (1) either (a) a
Registration Statement with respect to such shares shall be effective under the Securities Act of 1933, as amended, or (b) the Company shall have received an opinion of counsel satisfactory to
it that an exemption from registration under such Act is then available, and (2) there shall have been compliance with all applicable state securities laws." 

        [or if the Company has a Form S-8 on file registering the securities:

        4.    Securities Law
Compliance.    The Participant specifically acknowledges and agrees that any sales of Granted Shares shall be made in
accordance with the requirements of the Securities Act of 1933, as amended.]  

        5.    Rights as a Stockholder.    The Participant shall have all the rights of a stockholder
with respect to the Granted Shares, including voting and dividend rights, subject to the transfer and other restrictions set forth herein and in the Plan. 

        6.    Incorporation of the Plan.    The Participant specifically understands and agrees that the Granted Shares issued
under the Plan are being sold to the Participant pursuant to the Plan, a copy of which Plan the Participant acknowledges he or she has read and understands and by which Plan he or she agrees to be
bound. The provisions of the Plan are incorporated herein by reference. 

        7.    Tax Liability of the Participant and Payment of Taxes.    The Participant acknowledges and agrees that any
income or other taxes due from the Participant with respect to the Granted Shares issued pursuant to this Agreement, including, without limitation, the Lapsing Repurchase Right, shall be the
Participant's responsibility. Without limiting the foregoing, the Participant agrees that, to the extent that the lapsing of restrictions on disposition of any of the Granted Shares or the declaration
of dividends on any such shares before the lapse of such restrictions on disposition results in the Participant's being deemed to be in receipt of earned income under the provisions of the Code, the
Company shall be entitled to immediate payment from the Participant of the amount of any tax required to be withheld by the Company. 

        Upon
execution of this Agreement, the Participant may file an election under Section 83 of the Code in substantially the form attached as  Exhibit A. The Participant acknowledges that if he does not
file such an election, as the Granted Shares are released from the Lapsing Repurchase
Right in 

4

 

accordance
with Section 2.1, the Participant will have income for tax purposes equal to the fair market value of the Granted Shares at such date, less the price paid for the Granted Shares by
the Participant. 

        8.    Equitable Relief.    The Participant specifically acknowledges and agrees that in the event of a breach or
threatened breach of the provisions of this Agreement or the Plan, including the attempted transfer of the Granted Shares by the Participant in violation of this Agreement, monetary damages may not be
adequate to compensate the Company, and, therefore, in the event of such a breach or threatened breach, in addition to any right to damages, the Company shall be entitled to equitable relief in any
court having competent jurisdiction. Nothing herein shall be construed as prohibiting the Company from pursuing any other remedies available to it for any such breach or threatened breach. 

        9.    No Obligation to Maintain Relationship.    The Company is not by the Plan or this Agreement obligated to
continue the Participant as an employee, director or consultant of the Company or an Affiliate. The Participant acknowledges: (a) that the Plan is discretionary in nature and may be suspended
or terminated by the Company at any time; (b) that the grant of the Shares is a one-time benefit which does not create any contractual or other right to receive future grants of
shares, or benefits in lieu of shares; (c) that all determinations with respect to any such future grants, including, but not limited to, the times when shares shall be granted, the number of
shares to be granted, the purchase price, and the time or times when each share shall be free from a lapsing repurchase right, will be at the sole discretion of the Company; (d) that the
Participant's participation in the Plan is voluntary; (e) that the value of the Shares is an extraordinary item of compensation which is outside the scope of the Participant's employment
contract, if any; and (f) that the Shares are not part of normal or expected compensation for purposes of calculating any severance, resignation, redundancy, end of service payments, bonuses,
long-service awards, pension or retirement benefits or similar payments. 

        10.    Notices.    Any notices required or permitted by the terms of this Agreement or the Plan shall be given by
recognized courier service, facsimile, registered or certified mail, return receipt requested, addressed as follows: 

	If to the Company:	 	Alphatec Holdings, Inc.

6110 Corte Del Cedro

Carlsbad, CA 92009
	

If to the Participant:	
 	

 

or
to such other address or addresses of which notice in the same manner has previously been given. Any such notice shall be deemed to have been given on the earliest of receipt, one business day
following delivery by the sender to a recognized courier service, or three business days following mailing by registered or certified mail. 

        11.    Benefit of Agreement.    Subject to the provisions of the Plan and the other provisions hereof, this Agreement
shall be for the benefit of and shall be binding upon the heirs, executors, administrators, successors and assigns of the parties hereto. 

        12.    Governing Law.    This Agreement shall be construed and enforced in accordance with the laws of the State of
Delaware, without giving effect to the conflict of law principles thereof. For the purpose of litigating any dispute that arises under this Agreement, whether at law or in equity, the parties hereby
consent to exclusive jurisdiction in Delaware and agree that such litigation shall be conducted in the state courts of Delaware or the federal courts of the United States for the District of Delaware. 

        13.    Severability.    If any provision of this Agreement is held to be invalid or unenforceable by a court of
competent jurisdiction, then such provision or provisions shall be modified to the extent necessary to make such provision valid and enforceable, and to the extent that this is impossible, then 

5

 

such
provision shall be deemed to be excised from this Agreement, and the validity, legality and enforceability of the rest of this Agreement shall not be affected thereby. 

        14.    Entire Agreement.    This Agreement, together with the Plan and the Stockholders Agreement, constitutes the
entire agreement and understanding between the parties hereto with respect to the subject matter hereof and supersedes all prior oral or written agreements and understandings relating to the subject
matter hereof. No statement, representation, warranty, covenant or agreement not expressly set forth in this Agreement shall affect or be used to interpret, change or restrict the express terms and
provisions of this Agreement provided, however, in any event, this Agreement shall be subject to and governed by the Plan. 

        15.    Modifications and Amendments; Waivers and Consents.    The terms and provisions of this Agreement may be
modified or amended as provided in the Plan. Except as provided in the Plan, the terms and provisions of this Agreement may be waived, or consent for the departure therefrom granted, only by written
document executed by the party entitled to the benefits of such terms or provisions. No such waiver or consent shall be deemed to be or shall constitute a waiver or consent with respect to any other
terms or provisions of this Agreement, whether or not similar. Each such waiver or consent shall be effective only in the specific instance and for the purpose for which it was given, and shall not
constitute a continuing waiver or consent. 

        16.    Counterparts.    This Agreement may be executed in one or more counterparts, and by different parties hereto on
separate counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 

        17.    Data Privacy.    By entering into this Agreement, the Participant: (a) authorizes the Company and each
Affiliate, and any agent of the Company or any Affiliate administering the Plan or providing Plan record keeping services, to disclose to the Company or any of its Affiliates such information and data
as the Company or any such Affiliate shall request in order to facilitate the grant of Shares and the administration of the Plan; (b) waives any data privacy rights he or she may have with
respect to such information; and (c) authorizes the Company and each Affiliate to store and transmit such information in electronic form. 

[THE
NEXT PAGE IS THE SIGNATURE PAGE] 

6

 

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

	 	 	ALPHATEC HOLDINGS, INC.
	

 	
 	
By:	

	 	 	Name:	 
	 	 	Title:	 
	

 	
 	
PARTICIPANT:
	

 	
 	

 Print name:

7

  

Exhibit A  

 
 

Election to Include Gross Income in Year
  of Transfer Pursuant to Section 83(b)
  of the Internal Revenue Code of 1986, as amended    
    

        In accordance with Section 83(b) of the Internal Revenue Code of 1986, as amended (the "Code"), the undersigned hereby elects to include in his gross
income as compensation for services the excess, if any, of the fair market value of the property (described below) at the time of transfer over the amount paid for such property. 

        The
following sets for the information required in accordance with the Code and the regulations promulgated hereunder: 

	1.
	The
name, address and social security number of the undersigned (the "Taxpayer") are: 

Name:

Address:

Social Security No.: 

	2.
	The
description of the property with respect to which the election is being made is as follows: 

                        (    )
shares (the "Shares") of Series A-1 Common Stock, $.0001 par value per share, of Alphatec Holdings, Inc., a Delaware corporation (the
"Company"). 

	3.
	This
election is made for the calendar year            , with respect to the transfer of the property to the Taxpayer
on                        (the "Grant Date").

	4.
	Description
of restrictions: The property is subject to the following restrictions: 

In
the event the Taxpayer's employment with the Company or an Affiliate is terminated, the Company may repurchase all or any portion of the Shares determined as set forth below at the acquisition
price paid by the Taxpayer: 

	A.
	If
the termination takes place on or prior to                        , 200  , the Company's purchase option will apply to
all of the Shares.

	B.
	If
the termination takes place after                        , 200  , the number of Shares to which the Company's purchase
option applies shall be                        (    )
Shares less                        (    ) Shares for each full twelve (12) month period elapsed after the
Grant Date if the Taxpayer is employed by the Company or an Affiliate.

	5.
	The
fair market value at time of transfer (determined without regard to any restrictions other than restrictions which by their terms will never lapse) of the property with respect to
which this election is being made was not more than $            per Share.

	6.
	The
amount paid by the Taxpayer for said property was $    per Share.

	7.
	A
copy of this statement has been furnished to the Company. 

        Signed
this            day of            , 200  . 

	

 	
 	

 Print Name:

A-1

QuickLinks

RESTRICTED STOCK AGREEMENT ALPHATEC HOLDINGS, INC.

Election to Include Gross Income in Year of Transfer Pursuant to Section 83(b) of the Internal Revenue Code of 1986, as amended

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