Related Party Transactions

3 Months Ended

Mar. 31, 2012

Related Party Transactions [Abstract]

Related Party Transactions

12. Related Party Transactions

As of March 31, 2012, the Company had a liability of $0.1 million payable to HealthpointCapital, LLC for travel and administrative expenses, including the use of Foster Management Company's airplane. Foster Management Company is an entity owned by John H. Foster, a member of the Company's board of directors. John H. Foster is a significant equity holder of HealthpointCapital, LLC, an affiliate of HealthpointCapital Partners, L.P. and HealthpointCapital Partners II, L.P.

The Company has entered into indemnification agreements with certain of its directors which are named defendants in the Orthotec matter (See Note 7 – Commitments and Contingencies – Litigation). The indemnification agreements requires the Company to indemnify these individuals to the fullest extent permitted by applicable law and to advance expenses incurred by them in connection with any proceeding against them with respect to which they may be entitled to indemnification by the Company. For the three months ended March 31, 2012, the Company incurred legal expenses of approximately $0.4 million in connection with the Company's indemnification obligations in the Orthotec matter.

Dr. Stephen H. Hochschuler served as a member of the Company's and Alphatec Spine's board of directors through April 30, 2012 and still serves as the Chairman of Alphatec Spine's Scientific Advisory Board. The Company, Alphatec Spine and Dr. Hochschuler entered into a consulting agreement on October 13, 2006 (the "Consulting Agreement"). Pursuant to the Consulting Agreement, Dr. Hochschuler is required to provide advisory services related to the spinal implant industry and the Company's research and development strategies. For the three months ended March 31, 2012 and 2011, the Company incurred costs of $30,000 and $60,000, respectively, in each period for advisory services provided by Dr. Hochschuler.