Document:

Consulting Agreement

 Exhibit 10.30 
 CONFIDENTIAL TREATMENT REQUESTED 
 CONSULTING AGREEMENT 
 This Consulting Agreement (this “Agreement”) between Stephen H. Hochschuler, M.D. (the “Consultant”), having an address set forth on
the signature page hereof, Alphatec Spine Inc., (the “Spine”), a California corporation having a principal place of business at 2051 Palomar Airport Road, Suite 100, Carlsbad, CA 92011, and Alphatec Holdings, Inc. (“Holdings”), a
Delaware corporation having a principal place of business at 2051 Palomar Airport Road, Suite 100, Carlsbad, CA 92011 (collectively, Spine and Holdings shall be referred to as the “Company”), is made effective as of October 13, 2006 (the
“Effective Date”). In connection with the Consultant (i) serving on the Board of Directors of the Company (the “Board”); and (ii) providing consulting services to the Company and the mutual promises of the parties
hereunder, it is agreed as follows: 
 1. Service on the Board of Directors. The Consultant agrees to serve or continue to serve
as a director of the Company on its Board for so long as the Consultant is duly elected or appointed, or until the Consultant resigns in writing, whichever is first. While the Consultant remains on the Board, the Consultant will perform the usual
and customary duties of a member of the Board, which will include attendance at Board meetings and reasonable preparation for such meetings. 
 2. Additional Consulting Services. The Company hereby retains the Consultant, and the Consultant hereby agrees, to serve as an advisor to the Company and its senior management in the Company’s Field of Interest (such
services and consultation being herein referred to as the “Services”). The term “Field of Interest” means orthopedic devices related to the spine. The Services shall not include any not to include any laboratory, pre-clinical or
clinical activities. 
 3. Performance of Services. The Consultant shall devote up to four full days (a “ full day”
shall mean a minimum of eight business hours, excluding all travel time), as requested by the Company, over the course of every four-week period during the term of this Agreement to perform consulting and advisory services in the Field of Interest,
and shall use reasonable efforts to provide any additional Services as may be reasonably be requested from time to time by the Company. Such Services shall be performed at the Company’s principal place of business or at some other location
agreed upon by the Company and the Consultant. The Consultant agrees to devote its reasonable best efforts to the performance of the Services. The Company shall have the right to publicize the Consultant’s affiliation with the Company.

 4. Compensation. For the full, prompt and faithful performance of the Services, during the term of this Agreement, the
Company shall provide the Consultant with the following: 
 (a) Payments for Services. The Company shall pay the Consultant $[***] per
week in connection with the Consultant’s provision of Services (the “Weekly Payment”). At the end of each four-week period during the term of this Agreement, the Consultant shall send the Company an invoice listing the following
information: (i) for full days, the date of all full-days in which Services were provided with brief description of the Services provided; (ii) for less than full days, the date of the provision of such Services, the number of hours spent
on such Services 

 
and a brief description of such Services. Following the receipt of such invoice from the Consultant, the Company shall perform an accounting of the
Consultant’s provision of Services to determine if the Weekly Payments paid over such four-week period are the correct payment amount. The accounting shall be conducted in accordance with the following criteria: (1) the Company shall pay
the Consultant $[***] for the first four full-days of a four-week period in which the Consultant provides Services to the Company; (2) the Company shall pay the Consultant $[***] for each full-day after the first four full-days of a four-week
period in which the Consultant provides Services to the Company; and (3) the Company shall pay the Consultant $[***] per full hour of time that Consultant performs Services to the Company that are not provided during a full-day (including
travel time) . If the accounting reveals that the Consultant has been underpaid at the end of such four-week period, the Company shall promptly pay the Consultant any amounts that are due to Consultant. The parties agree that in no event shall the
payments to the Consultant be less than $[***] over a four-week period. 
 (b) Reimbursement of Expenses. The Company will reimburse
Consultant for all reasonable travel and other expenses incurred by Consultant in rendering the Services, provided that such expenses are consistent with the Company’s Travel and Expense Policy, and are confirmed by appropriate written expense
statements and other supporting documentation. 
 (c) Nonqualified Stock Options: Upon the execution of this Agreement the Consultant
shall be granted options to purchase [***] shares of the common stock of Holdings (the “Options”), which Options shall have an exercise price equal to the closing price of Holdings’ common stock on the trading day prior to issuance.
Upon the termination of the Consultant’s Services hereunder (i) by the Company for “cause” (as defined in the Plan referenced below) or (ii) voluntarily by the Consultant, all outstanding Options that have not vested shall
be forfeited. The Options shall vest over a five-year period in equal amounts beginning on the first anniversary of the date of issuance, and shall vest immediately upon a Change in Control (as defined in the Plan referenced below) or a termination
of the Consultant’s services hereunder by the Company without “cause” (as defined in such Plan) or due to a non-renewal of the Agreement by the Company. The Options shall be subject, in all respects, to (i) the Alphatec Holdings,
Inc. 2005 Employee, Director and Consultant Stock Plan (the “Plan”), (ii) a Nonqualified Stock Option Agreement to be entered into by Holdings and the Consultant, and (iii) the Stockholders’ Agreement dated as of
March 17, 2005 between Holdings and its stockholders, to which the Consultant hereby agrees to be subject. 
 (d) Performance
Objectives. Starting in 2007 the Consultant’s shall use reasonable best efforts towards the attainment of performance objectives jointly established by the Company’s President and CEO and the Consultant. 
 (e) Acknowledgement of Consultant. Consultant understands and acknowledges that the payments Consultant will receive pursuant to Section 4 of
this Agreement are intended solely to compensate Consultant for the Services Consultant will provide hereunder. Such payments shall in no way influence Consultant’s clinical or professional judgment in performing Services hereunder or
otherwise. 
 5. Term. The Consultant’s performance of Services shall commence on the Effective Date of this Agreement and
continue until the date that is the earlier of (i) the date that this Agreement is terminated pursuant to Section 5; (ii) or the [***]-year anniversary of the Effective Date (the “Initial Term”). This Agreement shall renew
automatically for one-year 

 
terms at the end of the Initial Term and each one-year term thereafter unless it is terminated pursuant to Section 5. The period between the Effective
Date and the date of termination of this Agreement is referred to as the “Term”. 
 6. Termination; Effect of
Termination. 
 (a) This Agreement may be terminated as follows: (i) by the Company immediately upon the Consultant’s death;
(ii) by either Party upon the end of a Term upon 30 days written notice prior to the end of a Term.; (iii) by the Company if Consultant has been unable to perform Consulting Services for a period of 60 consecutive days due to a disability;
or (iv) by party if the other party materially breaches this Agreement, and such default is not remedied within 30 days of the receipt of written notice from the non-defaulting party. 
 (b) Upon termination of this Agreement the Company shall have no further obligation under this Agreement to make any payments to Consultant after the
date this Agreement is terminated (the “Termination Date”), other than payments accrued and due and payable to Consultant prior to the Termination Date. 
 (c) The Termination of this Agreement shall not relieve the Consultant or the Company of any obligations hereunder which by their terms are intended to survive the termination of the Consultant’s association with
the Company, including, but not limited to, the obligations of Sections 6(b), 6(c), 6(d), 7, 9, 10, 11, 13, 14, 17, 18 and 19. 
 (d) Upon
termination of this Agreement for any reason, the Consultant shall promptly deliver to the Company any and all property of the Company or its customers, licensees, licensors, or affiliates which may be in the Consultant’s possession or control
including, without limitation, products, cell lines, materials, memoranda, notes, diskettes, records, reports, laboratory notebooks, or other documents or photocopies of the same. 
 7. Non-competition. During the Term and during the 12-month period following a Termination Date, the Consultant shall not, without prior
written notice to the Company, alone or as a partner, officer, director, consultant, employee, stockholder or otherwise, engage in any commercial employment, consulting or business activity, occupation or other activity that is or is intended to be
competitive with the business of the Company in the Field of Interest (each a “Competitive Activity”); provided, however, that (i) the holding by the Consultant of any investment in any security shall not be deemed to be
a violation of this Section 7 if such investment does not constitute over five percent (5%) of the outstanding issue of such security; and (ii) the expenditure of reasonable amounts of time as (a) a member of other
companies’ advisory board, or (b) as a consultant to other companies shall not be deemed a breach of this if such activities do not interfere with the provision of Services under this Agreement. Upon receiving notice that Consultant
intends to engage in any such Competitive Activity, Consultant shall, at the Company’s option, either (i) comply with such safeguards as may be reasonably requested by the Company, or (ii) resign as a Consultant of the Company.

 8. Independent Contractor; Compliance. It is understood and agreed, that the Consultant is an independent contractor and
that neither this Agreement nor the rendering of the Services shall for any purpose whatsoever or in any way or manner create any employer-employee relationship between the parties. The Consultant shall not be entitled to any fringe benefits
generally provided to employees of the Company and the Company shall not be required to maintain workers’ compensation coverage for the Consultant. 

 9. Intellectual Property. 
 (a) The Consultant agrees that all ideas, discoveries, creations, manuscripts and properties, innovations, improvements, know-how, inventions, designs,
developments, apparatus, techniques and methods (all of the foregoing being hereinafter referred to as “inventions”) which may be used in the business of the Company, whether or not reduced to practice and whether patentable, copyrightable
or not, which the Consultant may conceive, reduce to practice or develop during the provision of the Services (such inventions shall be referred to as “Company inventions”), alone or in conjunction with another, or others, shall be the
sole and exclusive property of the Company, subject to the Consultant’s obligations to [***], and that the Consultant shall not publish any of the Company inventions without the prior written consent of the Company. Subject to the
Consultant’s obligations to [***], the Consultant hereby assigns to the Company all of the Consultant’s right, title and interest in and to all Company inventions. The Consultant agrees to maintain and furnish to the Company complete and
current records of all such Company inventions and disclose to the Company in writing any such Company inventions. 
 (b) Subject to the
Consultant’s obligations to [***], at any time during or after the term of this Agreement, the Consultant agrees that the Consultant will fully cooperate with the Company, its attorneys and agents, in the preparation and filing of all papers
and other documents as may be required to perfect the Company’s rights in and to any of such Company inventions, including, but not limited to, joining in any proceeding to obtain letters patent, copyrights, trademarks or other legal rights of
the United States and of any and all other countries on such inventions, provided that the Company will bear the expense of such proceedings, and that any patent or other legal right so issued to the Consultant, personally, shall be assigned by the
Consultant to the Company without charge by the Consultant. Subject to the Consultant’s obligations to [***], the Consultant hereby designates the Company as its agent, and grants to the Company a power of attorney with full power of
substitution (which power of attorney shall be deemed coupled with an interest), for the purpose of effecting the foregoing assignments from the Consultant to the Company. 
 (c) If at any time during a Term or the one-year period following a Termination Date, the Consultant (i) creates a Consultant invention (as defined
below), or (ii) decides to sell or otherwise convey or encumber any inventions in the Field of Interest at times that were created during a time period in which the Consultant was not providing Services to the Company (a “Consultant
invention”), the Consultant, after satisfying all obligations owed to [***] regarding Consultant inventions, shall provide written notice of the same to the Company and offer the Company the option (the “Option”) to acquire such
Consultant invention. The Company shall have 60 days thereafter to indicate to the Consultant whether the Company would like to exercise its option and to negotiate the terms of such purchase (the “Option Period”). If (1) the Company
does not give the Consultant notice of its exercise of the Option before the end of the Option Period, or (2) if the Company indicates in writing that it does not intend to exercise the Option, or (3) if the parties are not able, despite
their good faith efforts, to agree on terms within the Option Period, then the Consultant shall be free to seek other third-party buyers provided that such buyers shall not be offered such rights on terms better than those last offered to the
Company. 

 10. Confidentiality. In connection with the performance of Services, the Consultant will be
exposed to, and may develop or create, certain information concerning the research, business, Alphatec Inventions, products, proposed new products, designs, data, results, clinical testing programs, manufacturing processes and techniques, customers,
and other information and materials that embody trade secrets or technical or business information that is confidential and proprietary to the Company (collectively, “Confidential Information”). The Consultant hereby agrees not to disclose
or use, other than in the performance of the Services, any Confidential Information, without the Company’s prior written consent, unless such information becomes publicly available, through no fault of the Consultant or a third party not
obligated to keep such information confidential. The Consultant further agrees not to make any notes or memoranda relating to the business of the Company, other than for the benefit of the Company, and not to use or permit to be used at any time any
such notes or memoranda, other than for the benefit of the Company. In addition, the Consultant agrees, promptly upon the Company’s request to return to the Company or destroy (at the Company’s option) any and all documentary,
machine-readable or other elements or evidence based on or containing Confidential Information and any copies that may be in the Consultant’s possession or under the Consultant’s control. The provisions of this Section 10 will apply
both during and after the Term. 
 11. Injunctive Relief. The Consultant agrees that any breach of this Agreement by him could
cause irreparable damage to the Company and that in the event of such breach the Company shall have the right to obtain injunctive relief, including, without limitation, specific performance or other equitable relief to prevent the violation of the
Consultant’s obligations hereunder. It is expressly understood and agreed that nothing herein contained shall be construed as prohibiting the Company from pursuing any other remedies available for such breach or threatened breach, including,
without limitation, the recovery of damages by the Company. 
 12. No Conflicting Agreements. The Consultant represents and
warrants that he is not a party to any commitments or obligations inconsistent with this Agreement and hereby agrees to indemnify and hold the Company harmless against any claim based upon circumstances alleged to be inconsistent with such
representation and warranty. During the Term, the Consultant will not enter into any agreement either written or oral in conflict with this Agreement and will arrange to provide the Services in such a manner and at times that the Services will not
materially conflict with the Consultant’s responsibilities under any other agreement, arrangement or understanding or pursuant to any employment relationship he has at any time with any third party. 
 13. Indemnification. The Company and the Consultant (each, an “Indemnifying Party”) shall, to the fullest extent permitted by
law, hold harmless and indemnify the other party (the “Indemnified Party”) from and against any and all claims, liabilities, damages, expenses (including reasonable attorneys’ fees) and losses (collectively, “Losses”)
incurred as a result of any acts or omissions of the Indemnifying Party in connection with this Agreement and the parties’ performance hereunder, except to the extent that any such Losses were a result of the negligence or willful misconduct
of, or a breach of this Agreement by, the Indemnified Party. 
 14. Notices. All notices and other communications hereunder
shall be in writing, and shall be delivered or sent by facsimile transmission, recognized courier service, registered or certified mail, return receipt requested, addressed to the party at the address set forth on the signature page hereof, or to
such other address as such party may designate in writing to the 

 
other. Such notice or communication shall be deemed to have been given as of the date sent by the facsimile or delivered to a recognized courier service, or
three days following the date deposited with the United States Postal Service. 
 15. Successors and Assigns. This Agreement
shall be binding upon and inure to the benefit of the parties and their respective legal representatives, successors and permitted assigns. The Consultant agrees that the Company may assign this Agreement, in whole or in part, to any person or
entity controlled by, in control of, or under common control with, the Company, and to any purchaser of all or substantially all of its assets or such portion of its assets to which this Agreement relates, or to any successor corporation resulting
from any merger or consolidation of the Company with or into such corporation. The Consultant may not assign or transfer this Agreement or any of the Consultant’s rights or obligations hereunder. In no event shall the Consultant assign or
delegate responsibility for actual performance of the Services to any other person or entity without the prior written consent of the Company. 
 16. Entire Agreement. This Agreement constitutes the entire agreement between the parties as to the subject matter hereof. No provision of this Agreement shall be waived, altered or cancelled except in writing signed by the
party against whom such waiver, alteration or cancellation is asserted. Any such waiver shall be limited to the particular instance and the particular time when and for which it is given. 
 17. Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State of California. Each
party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts in San Diego County, California for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or
discussed herein. 
 18. Enforceability. The invalidity or unenforceability of any provision hereof as to an obligation of a
party shall in no way affect the validity or enforceability of any other provision of this Agreement, provided that if such invalidity or unenforceability materially adversely affects the benefits the other party reasonably expected to receive
hereunder, that party shall have the right to terminate this Agreement. Moreover, if one or more of the provisions contained in this Agreement shall for any reason be held to be excessively broad as to scope, activity or subject so as to be
unenforceable at law, such provision or provisions shall be construed by limiting or reducing it or them, so as to be enforceable to the extent compatible with the applicable law as it shall then appear. 
 19. Construction. This Agreement has been prepared jointly and shall not be strictly construed against either Party. 
 20. Counterparts. This Agreement may be executed in counterparts, each of which will be deemed an original, but all of which together will
constitute one agreement. 
 [Signature Page Follows] 

 IN WITNESS WHEREOF, the parties hereto have duly executed Agreement as of the Effective Date. 

 

			
	ALPHATEC SPINE INC.
		
	By:	 	 /s/ John H. Foster

		 	John H. Foster
		
		 	Chairman
	
	 Address for Notice Purposes:

	
	 2051 Palomar Airport Road
 Suite
100
 Carlsbad, California 90211

	
	ALPHATEC HOLDINGS, INC.
		
	By:	 	 /s/ John H. Foster

		 	 John H. Foster
 Chairman

	
	Address for Notice Purposes:
	
	 2051 Palomar Airport Road
 Suite
100
 Carlsbad, California 90211

	
	 /s/ Stephen H. Hochschuler

	Stephen H. Hochschuler, M.D.
	
	  
 Address for Notice Purposes:Security Agreement

 Exhibit 10.31 
 SECURITY AGREEMENT 
 This Security Agreement is made and entered into this January 12, 2007, by and between BANK
OF THE WEST (the “Bank”) and ALPHATEC SPINE, INC. (the “Debtor”). 
  

	1.	Grant of Security Interest. The Debtor hereby grants to the Bank a security interest in and to all of the following property (hereinafter collectively referred to as the
“Collateral”): 

 (a) Certificates of Deposit. Certificate of Deposit No(s). ALPHA SP issued by BANK OF THE
WEST and all renewals and substitutions thereof, together with all interest accruing thereunder and therefrom. 
 The Bank’s security interest in the
Collateral shall be a continuing lien and shall include all proceeds and products of the Collateral including, but not limited to, the proceeds of any insurance thereon. 
 Debtor hereby consents to and instructs Bank to file financing statements in all locations deemed appropriate by the Bank from time to time. 
 The security interest granted to Bank in the Collateral shall not secure or be deemed to secure any Indebtedness of the Debtor to the Bank which is. at the time of its creation, subject to the provisions of any state
or federal consumer credit or truth-in-lending disclosure statutes. 
  

	2.	The Indebtedness. The Collateral secures payment of the indebtedness owed to the Bank by the Debtor under that certain application and agreement for a standby letter of
credit in the approximate amount of ¥200,000,000.00 (Yen) dated January 12, 2007 and the subsequent standby letter of credit in favor of Resona Bank, LTD. (Chigaya Branch) together with any and all modifications, extensions and renewals of
such indebtedness (hereinafter collectively referred to as the “Indebtedness”) and performance of all the terms, covenants and agreements contained in this Security Agreement and in any other document, instrument or agreement evidencing or
related to the Indebtedness or the Collateral. 

 The Indebtedness secured hereby shall not include any indebtedness of the Debtor incurred for
personal, family or household purposes except to the extent any disclosure required under any consumer protection law (including but not limited to the Truth in Lending Act) or any regulation thereto, as now existing or hereafter amended, is or has
been given. 
  

	3.	Debtor’s Representations and Warranties. The Debtor hereby makes the following representations and warranties to the Bank, which representations and warranties are
continuing: 

 (a) Status: The Debtor’s correct legal name is as stated in this Agreement and the Debtor is a
corporation duly organized and validly existing under the laws of the state of California, and with its chief executive office in the state of California and is properly licensed and is qualified to do business and in good standing in, and, where
necessary to maintain the Debtor’s rights and privileges, has complied with the fictitious name statute of every jurisdiction in which the Debtor is doing business. 
 (b) Authority: The execution, delivery and performance by the Debtor of this Agreement and any instrument, document or agreement required hereunder have been duly authorized and do not and will not:
(i) violate any provision of any law, rule, regulation, order, writ, judgment, injunction, decree, determination or award presently in effect having application to the Debtor; (ii) result in a breach of or constitute a default under any
material indenture or loan or credit agreement or other material agreement, lease or instrument to which the Debtor is a party or by which it or its properties may be bound or affected; or (iii) require any consent or approval of its
stockholders or violate any provision of its articles of incorporation or by-laws; or (iv) violate any provision of its partnership agreement; or (v) require any consent or approval of its members or violate any provision of its articles
of organization or operating agreement. 
  

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 (c) Legal Effect. This Security Agreement constitutes, and any document, instrument or agreement
required hereunder when delivered will constitute, legal, valid and binding obligations of the Debtor enforceable against the Debtor in accordance with their respective terms. 
 (d) Fictitious Trade Names: There are no fictitious trade names, fictitious trade styles, assumed business names or trade names (defined
herein as “Trade Name”) used by the Debtor in connection with its business operations. The Debtor shall notify the Bank not less than 30 days prior to effecting any change in the matters described herein or prior to using any other
fictitious Trade Name at any future date, indicating the Trade Name and state(s) of its use. 
 (e) Title to Collateral; Permitted
Liens. The Debtor has good and marketable title to the Collateral and the same is not now and shall not become subject to any security interest, encumbrance, lien or claim of any third person other than: (i) liens and security interests to
secure the Indebtedness or other indebtedness owed to the Bank; (ii) liens for taxes, assessments or similar charges either not yet due or being duly contested in good faith; (iii) liens of mechanics, materialmen, warehousemen or other
like liens arising in the ordinary course of business and securing obligations which are not yet delinquent; (iv) liens and security interests which, as of the date hereof, have been disclosed to and approved by the Bank in writing;
(v) purchase money liens or purchase money security interests upon or in any property acquired or held by the Debtor in the ordinary course of business to secure indebtedness outstanding on the date hereof or permitted to be incurred hereunder,
and (vi) those liens and security interests which in the aggregate constitute an immaterial and insignificant monetary amount with respect to the net value of the Debtor’s assets (collectively “Permitted Liens”). 
 (f) Financial Statements. All financial statements, information and other data now or hereafter submitted to the Bank in connection with the
transaction with respect to which this Security Agreement is entered into are true, accurate and correct and have been or will be prepared in accordance with generally accepted accounting principles consistently applied. Since the most recent
submission of any such financial statement, information or other data to the Bank, the Debtor represents and warrants that no material adverse change in the financial condition or operations as disclosed therein or thereby has occurred which has not
been fully disclosed to the Bank in writing. 
 (g) Litigation. Except as have been disclosed to the Bank in writing, there are no
actions, suits or proceedings pending or, to the knowledge of the Debtor, threatened against or affecting the Debtor or the Debtor’s properties before any court or administrative agency which, if determined adversely to the Debtor, would have a
material adverse effect on the Debtor’s financial condition or operations or on the Collateral. 
 (h) Taxes. The Debtor has filed
all tax returns required to be filed and paid all taxes shown thereon to be due, including interest and penalties, other than taxes which are currently payable without penalty or interest or those which are being duly contested in good faith.

 (i) Environmental Compliance. The operations of the Debtor comply, and during the term of this Security Agreement will at all times
comply, in all respects with all Environmental Laws; the Debtor has obtained all licenses, permits, authorizations and registrations required under any Environmental Law (“Environmental Permits”) and necessary for its ordinary
course operations, all such Environmental Permits are in good 
  

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 standing, and the Debtor is in compliance with all material terms and conditions of such Environmental
Permits; neither the Debtor nor any of its present property or operations is subject to any outstanding written order from or agreement with any governmental authority nor subject to any judicial or docketed administrative proceeding, respecting any
Environmental Law, Environmental Claim or Hazardous Material; there are no Hazardous Materials or other conditions or circumstances existing, or arising from operations prior to the date of this Agreement, with respect to any property of the Debtor
that would reasonably be expected to give rise to Environmental Claims; provided, however, that with respect to property leased from an unrelated third party, the foregoing representation is made to the best knowledge of the Debtor. In
addition, (i) the Debtor does not have any underground storage tanks that are not properly registered or permitted under applicable Environmental Laws, or that are leaking or disposing of Hazardous Materials off-site, and (ii) the Debtor
has notified all of their employees of the existence, if any, of any health hazard arising from the conditions of their employment and have met all notification requirements under Title III of CERCLA and all other Environmental Laws. 
 For the purposes hereof: 
 (1)
“Environmental Claims” shall mean all claims, however asserted, by any governmental authority or other person alleging potential liability or responsibility for violation of any Environmental Law or for release or injury to the environment
or threat to public health, personal injury (including sickness, disease or death), property damage, natural resources damage, or otherwise alleging liability or responsibility for damages (punitive or otherwise), cleanup, removal, remedial or
response costs, restitution, civil or criminal penalties, injunctive relief, or other type of relief, resulting from or based upon (a) the presence, placement, discharge, emission or release (including intentional and unintentional, negligent
and non- negligent, sudden or non-sudden, accidental or non-accidental placement, spills, leaks, discharges, emissions or releases) of any Hazardous Material at, in, or from property, whether or not owned by the Debtor, or (b) any other
circumstances forming the basis of any violation, or alleged violation, of any Environmental Law. 
 (2) “Environmental Laws’ shall
mean all federal, state or local laws, statutes, common law duties, rules, regulations, ordinances and codes, together with all administrative orders, directed duties, requests, licenses, authorizations and permits of, and agreements with, any
governmental authorities, in each case relating to environmental, health, safety and land use matters; including the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (“CERCLA), the Clean Air Act, the Federal Water
Pollution Control Act of 1972, the Solid Waste Disposal Act, the Federal Resource Conservation and Recovery Act, the Toxic Substances Control Act, the Emergency Planning and Community Right-to-Know Act, the California Hazardous Waste Control Law,
the California Solid Waste Management, Resource, Recovery and Recycling Act, the California Water Code and the California Health and Safety Code. 
 (3) “Hazardous Materials” means all those substances which are regulated by, or which may form the basis of liability under, any Environmental Law, including all substances identified under any Environmental Law as a pollutant,
contaminant, hazardous waste, hazardous constituent, special waste, hazardous substance, hazardous material, or toxic substance, or petroleum or petroleum derived substance or waste. 
 (j) ERISA: If the Debtor has a pension, profit sharing or retirement plan subject to Employee Retirement Income Security Act of 1974
(“ERISA”), such plan has been and will continue to be funded in accordance with its terms and otherwise complies with and continues to comply with the requirements of ERISA. 
  

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	4.	Debtor’s Covenants. The Debtor covenants and agrees that, unless the Bank otherwise consents in writing, the Debtor shall at all times: 

 (a) Maintenance of Insurance. Keep and maintain the Collateral insured for not less than its full replacement value against all risks of loss and
damage and maintain such other insurance as is usually carried by companies engaged in similar businesses and owning similar properties in the same general areas in which the Debtor operates and maintain such other insurance and coverages as may be
required by the Bank. All such insurance shall be in form and amount and with companies satisfactory to the Bank. With respect to insurance covering the Collateral, such insurance shall name the Bank as loss payee pursuant to a loss payable
endorsement satisfactory to the Bank and shall not be altered or canceled except upon 10 days’ prior written notice to the Bank. Upon the Bank’s request, the Debtor shall furnish the Bank with the original policy or binder of all such
insurance. 
 (b) Inspection Rights and Accounting Records: The Debtor will maintain adequate books and records in accordance with
generally accepted accounting principals consistently applied and in a manner otherwise acceptable to Bank, and, at any reasonable time and from time to time, permit the Bank or any representative thereof to examine and make copies of the records
and visit the properties of the Debtor and discuss the business and operations of the Debtor with any employee or representative thereof. If the Debtor shall maintain any records (including, but not limited to, computer generated records or computer
programs for the generation of such records) in the possession of a third party, the Debtor hereby agrees to notify such third party to permit the Bank free access to such records at all reasonable times and to provide the Bank with copies of any
records which it may request, all at the Debtor’s expense, the amount of which shall be payable immediately upon demand. In addition, the Bank may, at any reasonable time and from time to time, conduct inspections and audits of the Collateral
and the Debtor’s accounts payable, the cost and expenses of which shall be paid by the Debtor to the Bank upon demand. 
 (c)
Reporting Requirements. Promptly upon the Bank’s request, deliver or cause to be delivered to the Bank such information pertaining to the Debtor, the Collateral or such other matters as the Bank may reasonably request. 
 (d) Payment of Obligations. Pay all of its liabilities and obligations when due. 
 (e) Loan-to-Collateral Ratio. The Debtor additionally covenants and agrees that so long as all or any part of the Indebtedness shall remain
outstanding, the outstanding principal balance of the Indebtedness shall not be greater than 10% of the value of the Collateral at its then current market value (as determined by the Bank) (the Loan-to-Collateral Ratio). To the extent that such
Loan-to-Collateral Ratio is not maintained, the Debtor shall promptly, upon the Bank’s request, assign and pledge to the Bank such additional assets of a character satisfactory to the Bank and having a market value sufficient to reinstate and
maintain such Loan-to-Collateral Ratio. 
 (f) Compensation of Employees. Compensate its employees for services rendered at an hourly
rate at least equal to the minimum hourly rate prescribed by any applicable federal or state law or regulation. 
 (g) Maintenance of
Jurisdiction: Debtor shall maintain the jurisdiction of its organization and chief executive office, or if applicable, principal residence, as set forth herein and not change such jurisdiction name or form of organization without 30 days prior
written notice to Bank. 
 (h) Notice: Give the Bank prompt written notice of any and all (i) Events of Default;
(ii) litigation, arbitration or administrative proceedings to which any Debtor is a party or which 
  

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 affects the Collateral; (iii) other matters which have resulted in, or might result in a material
adverse change in the Collateral or the financial condition or business operations of any Debtor, and (iv) any enforcement, cleanup, removal or other governmental or regulatory actions instituted, completed or threatened against any Debtor or
any of its properties. 
  

	5.	Bank’s Rights Without Default. At its option and without any obligation to do so, the Bank may, either in the name of the Bank, the Bank’s nominee or the Debtor:

 (a) Collect, endorse and receive all sums, including, but not limited to, dividends and interest, now or hereafter payable
upon or on account of the Collateral. 
 (b) Enter into any agreement relating to or affecting the Collateral and, in connection therewith,
the Bank may surrender control of any such Collateral, accept other property in exchange for such Collateral, and do and perform such acts as it deems proper. Any money or property received in exchange for any such Collateral shall be subject to and
held by the Bank pursuant to the terms of this Security Agreement. 
 (c) Make any compromise or settlement with respect to the Collateral
that the Bank, in its sole and absolute discretion, deems proper. 
 (d) Insure and do such other acts as the Bank deems necessary, in its
sole discretion, to preserve or protect the Collateral. 
 (e) Cause the Collateral to be transferred to the Bank’s name or the name of
the Bank’s nominee. 
 (f) With respect to the Collateral, exercise all rights, powers and remedies of an owner but excluding any voting
rights. 
  

	6.	Events of Default. Any one or more of the following described events shall constitute an event of default (“Event of Default”) hereunder: 

(a) Non-Payment: The Debtor shall fail to pay the aggregate principal amount of any Indebtedness when due or interest on the Indebtedness within
5 days of when due. 
 (b) Performance Under This Agreement: The Debtor shall fail in any material respect to perform or observe any
term, covenant or agreement contained in this Security Agreement or in any document, instrument or agreement relating to this Agreement and any such failure shall continue unremedied for more than 30 days after written notice from the Bank to the
Borrower(s) of the existence and character of such Event of Default. 
 (c) Representations and Warranties; Financial Statements: Any
representation or warranty made by the Debtor under or in connection with this Security Agreement or any financial statement given by the Debtor or any guarantor shall prove to have been incorrect in any material respect when made or given or when
deemed to have been made or given. 
 (d) Other Agreements: If there is a default under any agreement to which Debtor is a party with
the Bank or with a third party or parties resulting in a right by the Bank or such third party or parties, whether or not exercised, to accelerate the maturity of any Indebtedness. 
 (e) Insolvency: The Debtor or any guarantor shall: (i) become insolvent or be unable to pay its debts as they mature; (ii) make an
assignment for the benefit of creditors or to an agent authorized to liquidate any substantial amount of its properties and assets; (iii) file a voluntary petition in bankruptcy or seeking reorganization or to effect a plan or other 

 

 -5- 

 arrangement with creditors; (iv) file an answer admitting the material allegations of an involuntary
petition relating to bankruptcy or reorganization or join in any such petition; (v) become or be adjudicated a bankrupt; (vi) apply for or consent to the appointment of, or consent that an order be made, appointing any receiver, custodian
or trustee, for itself or any of its properties, assets or businesses; or (vii) any receiver, custodian or trustee shall have been appointed for all or substantial part of its properties, assets or businesses and shall not be discharged within
30 days after the date of such appointment. 
 (f) Execution: Any writ of execution or attachment or any judgment lien shall be issued
against any property of the Debtor and shall not be discharged or bonded against or released within 30 days after the issuance or attachment of such writ or lien. 
 (g) Revocation or Limitation of Guaranty: Any guaranty shall be revoked or limited or its enforceability or validity shall be contested by any guarantor, by operation of law, legal proceeding or otherwise or
any guarantor who is a natural person shall die. 
 (h) Revocation or Limitation of Subordination Agreement: Any subordination
agreement shall be revoked or limited or its enforceability or validity shall be contested by any creditor signatory thereto, by operation of law, legal proceeding or otherwise. 
 (i) Suspension: The Debtor shall voluntarily suspend the transaction of business or allow to be suspended, terminated, revoked or expired any
permit, license or approval of any governmental body necessary to conduct the Debtor’s business as now conducted. 
 (j) Material
Adverse Change: If there occurs a material adverse change in the Debtor’s business or financial condition, or if there is a material impairment of the prospect of repayment of any portion of the Indebtedness or there is a material
impairment of the value or priority of the Bank’s security interest in the Collateral. 
 (k) Change in Ownership: There shall
occur a sale, transfer, disposition or encumbrance (whether voluntary or involuntary), or an agreement shall be entered into to do so, with respect to more than 10% of the issued and outstanding capital stock of the Debtor. 
 (l) Impairment of Collateral. There shall occur any injury or damage to all or any part of the Collateral or all or any part of the Collateral
shall be lost, stolen or destroyed. 
  

	7.	Bank’s Rights and Remedies on Default. Upon the occurrence of any Event of Default, the Bank may, at its sole and absolute election, without demand and only upon such
notice as may be required by law: 

 (a) Acceleration. Declare the Indebtedness and any or all other indebtedness owing
to the Bank by the Debtor or any obligor on the Indebtedness (however such indebtedness may be evidenced or secured) immediately due and payable, whether or not otherwise due and payable. 
 (b) Cease Extending Credit. Cease extending credit to or for the account of the Debtor or any obligor on the Indebtedness under any agreement now
existing or hereafter entered into with the Bank. 
 (c) Termination. Terminate any agreement as to any future obligation of the Bank
without affecting the Debtor’s obligations to the Bank or the Bank’s rights and remedies under this Security Agreement or under any other document, instrument or agreement. 
 (d) Segregate Collections. Require the Debtor to segregate all collections and proceeds of the Collateral so that they are capable of
identification and to deliver such collections and proceeds to the Bank, in kind, without commingling, at such times and in such manner as required by the Bank. 
  

 -6- 

 (e) Records of Collateral. Require the Debtor to periodically deliver to the Bank records and
schedules showing the status, condition and location of the Collateral and such contracts or other matters which affect the Collateral. In connection herewith, the Bank may conduct such audits or other examination of such records, including, but not
limited to, verification of balances owing by any account debtor of the Debtor, as the Bank, in its sole and absolute discretion, deems necessary. 
 (f) Compromise. Grant extensions, compromise claims and settle any account for less than the amount owing thereunder, all without notice to the Debtor or any obligor on or any guarantor of the Indebtedness. 
 (g) Protection of Security Interest in Collateral. Make such payments and do such acts as the Bank, in its sole judgment, considers necessary and
reasonable to protect its security interest in the Collateral. The Debtor hereby irrevocably authorizes the Bank to pay, purchase, contest or compromise any encumbrance, lien or claim which the Bank, in its sole judgment, deems to be prior or
superior to its security interest. Further, the Debtor hereby agrees to pay to the Bank, upon demand therefor, all expenses and expenditures (including attorneys’ fees) incurred in connection with the foregoing. 
 (h) Foreclosure. Enforce any security interest or lien given or provided for under this Security Agreement or under any other document relating to
the Collateral, in such manner and such order, as to all or any part of the Collateral, as the Bank, in its sole judgment, deems to be necessary or appropriate and the Debtor hereby waives any and all rights, obligations or defenses now or hereafter
established by law relating to the foregoing. In the enforcement of its security interest in the Collateral, the Bank is authorized to enter upon the premises where any Collateral is located and take possession of the Collateral or any part thereof,
together with the Debtor’s records pertaining thereto, or the Bank may require the Debtor to assemble the Collateral and records pertaining thereto and make such Collateral and records available to the Bank at a place designated by the Bank.
The Bank may sell the Collateral or any portions thereof, together with all additions, accessions and accessories thereto, giving only such notices and following only such procedures as are required by law, at either a public or private sale, or
both, with or without having the Collateral present at the time of sale, which sale shall be on such terms and conditions and conducted in such manner as the Bank determines in its sole judgment to be commercially reasonable. The Collateral may be
disposed of in its then condition without any preparation or processing. In connection with any disposition of the Collateral, the Bank may disclaim any warranty relating to title, possession or quiet enjoyment. Any deficiency which exists after the
disposition or liquidation of the Collateral shall be a continuing liability of any obligor on or any guarantor of the Indebtedness and shall be immediately paid to the Bank. 
 (i) Non-Exclusivity of Remedies. Exercise one or more of the Bank’s rights set forth herein or seek such other rights or pursue such other
remedies as may be provided by law, in equity or in any other agreement now existing or hereafter entered into between the Bank and the Debtor or any obligor on or guarantor of the Indebtedness, or otherwise. 
 (j) Application of Proceeds. All amounts received by the Bank as proceeds from the disposition or liquidation of the Collateral shall be applied as
follows: first, to the costs and expenses of collection, including court costs and reasonable attorneys’ fees, whether or not suit is commenced by the Bank; next, to those costs and expenses incurred by the Bank in protecting, preserving,
enforcing, collecting, selling or disposing of the Collateral; next, to the payment of accrued and unpaid interest on all of the Indebtedness; next, to the payment of the outstanding principal balance of the Indebtedness; and last, to the payment of
any other indebtedness owed by the Debtor to the Bank. Any excess Collateral or excess proceeds existing after the disposition or liquidation of the Collateral will be returned or paid by the Bank to the Debtor. 
  

 -7- 

 If any non-cash proceeds are received in connection with any sale of Collateral, the Bank shall not apply such non-cash
proceeds to the Obligations unless and until such proceeds are converted to such; provided, however, that if such non-cash proceeds are not expected on the date of receipt thereof to be converted to cash within one year after such date, the Bank
shall use commercially reasonable efforts to convert such non-cash proceeds to cash within such one year period. 
  

	8.	Miscellaneous. 

 (a) Amounts Payable Under
this Security Agreement. If the Debtor fails to pay on demand the amount of any obligations referred to in this Security Agreement, the Bank may pay such amount at its option and without any obligation to do so and without waiving any default
occasioned by the Debtor’s failure to pay such amount. All amounts so paid by the Bank, together with reasonable attorneys’ fees at trial and on appeal and all other costs, charges and expenses relating to the Indebtedness, shall be a part
of the Indebtedness and shall bear interest at the highest rate chargeable on any Indebtedness until paid in full. 
 (b) Other Terms.
Terms not otherwise defined in this Security Agreement shall have the meanings attributed to such terms in the Uniform Commercial Code as in effect on July 1, 2001 and from time to time thereafter. 
 (c) Reliance. Each warranty, representation, covenant and agreement contained in this Security Agreement shall be conclusively presumed to have
been relied upon by the Bank regardless of any investigation made or information possessed by the Bank and shall be cumulative and in addition to any other warranties, representations, covenants or agreements which the Debtor shall now or hereafter
give, or cause to be given, to the Bank. 
 (d) Attorneys’ Fees. Debtor shall pay to the Bank all costs and expenses, including
but not limited to reasonable attorneys fees at trial and on appeal, incurred by Bank in connection with the administration, enforcement, including any bankruptcy, appeal or the enforcement of any judgment or any refinancing or restructuring of this
Security Agreement or any document, instrument or agreement executed with respect to, evidencing or securing the Indebtedness hereunder. 
 (e) Notices. All notices, payments, requests, information and demands which either party hereto may desire, or be required to give or make to the other party, shall be given or made to such party by hand delivery or through deposit
in the United States mail, postage prepaid, or by telephonic facsimile, addressed to the address set forth below such party’s signature to this Security Agreement or to such other address as may be specified from time to time in writing by
either party to the other. 
 (f) Waiver. Neither the failure nor delay by the Bank in exercising any right hereunder or under any
document, instrument or agreement mentioned herein shall operate as a waiver thereof, nor shall any single or partial exercise of any right hereunder or under any other document, instrument or agreement mentioned herein preclude other or further
exercise thereof or the exercise of any other right; nor shall any waiver of any right or default hereunder or under any other document, instrument or agreement mentioned herein constitute a waiver of any other right or default or constitute a
waiver of any other default of the same or any other term or provision. 
 (g) Assignment. This Security Agreement shall be binding
upon and inure to the benefit of the Debtor and the Bank and their respective successors and assigns, except that the 
  

 -8- 

 Debtor shall not have the right to assign its rights hereunder or any interest herein without the
Bank’s prior written consent. The Bank may sell or assign all or any portion of its rights and benefits hereunder and, in connection therewith, may deliver to such prospective buyer or assignee financial statements and other relevant
information pertaining to the Debtor or any obligor on the Indebtedness. 
 (h) Jurisdiction. This Security Agreement and the rights of
the parties hereunder to and concerning the Collateral, and any documents, instruments or agreements mentioned or referred to herein, shall be governed by and construed according to the laws of the State of California, without regard to conflict of
law principles, to the jurisdiction of whose courts the parties hereby submit. 
 IN WITNESS WHEREOF, the parties hereto have caused this Security Agreement
to be executed as of the date first herein above written. 
  

							
	BANK:	  	DEBTOR:
		
	BANK OF THE WEST	  	ALPHATEC SPINE, INC.
				
	BY:	  	 /s/ Kris Ilkov
	  	BY:	  	 /s/ Steven M. Yasbek

	NAME:	  	Kris Ilkov, Vice President	  	NAME:	  	Steven Yasbek, Vice President and Chief Financial Officer
				
		  		  	ADDRESS:	  	
		  		  		  	 2051 Palomar Airport Rd
 Carlsbad, CA
92009

  

 -9-

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