Document:

nvro-ex101_16.htm

Exhibit 10.1

Nevro Corp.

Second Amended and Restated Company Bonus Plan

	
1.
	
Purpose

This Nevro Corp. Second Amended and Restated Company Bonus Plan (the “Plan”) is intended to provide an incentive for achievement of annual corporate and/or individual goals and to motivate eligible executives and employees of Nevro Corp. (the “Company”) and its subsidiaries toward high achievement and solid business results, to tie their goals and interests to those of the Company and its stockholders and to enable the Company to attract and retain employees.  The Plan amends and restates in its entirety the Nevro Corp. Amended and Restated Company Bonus Plan (the “Prior Plan”).  The Plan, as amended and restated herein, is effective as of March 2, 2020 (the “Effective Date”) and shall govern bonuses awarded for the annual performance period commencing  January 1, 2020 and consecutive annual performance periods thereafter (each of calendar year 2020 and such consecutive annual performance periods, a “Performance Period”).  

	
2.
	
Eligible Employees

The Compensation Committee of the Board of Directors of the Company (the “Committee”) and, with respect to individuals who are not executive officers of the Company, the Chief Executive Officer of the Company (together with the Committee, the “Administrator”) shall determine which employees of the Company and its subsidiaries shall be eligible to participate in the Plan for a given Performance Period (the “Eligible Employees”).  Participation in the Plan is in the sole discretion of the Administrator.  Accordingly, an Eligible Employee who is a participant in the Plan is in no way is guaranteed or assured of being selected for participation in any subsequent Performance Period.

	
3.
	
Administration

The Committee shall administer the Plan in all respects for Eligible Employees who are executive officers and, in respect of such executive officers, all references to “Administrator” shall mean the Committee.  The Administrator shall have the sole discretion and authority to administer and interpret the Plan.

	
4.
	
Bonus Determinations

(a)The bonus pool for each Performance Period shall be funded based upon Company attainment of corporate performance objectives and/or Eligible Employee attainment of individual performance objectives, in each case, which are established for the Performance Period by the Administrator (the “Performance Goals”).  The Administrator shall determine a level of attainment for each Performance Goal, may specify “threshold,” “target” and “stretch” levels of achievement, may specify that a Performance Goal is merely subject to achievement or not or may specify that a Performance Goal shall be subjectively determined by the Administrator or an Eligible Employee’s supervisor, and, if applicable, must specify the applicable percentage achievement corresponding to each level of attainment, including, if applicable, any intermediate levels of attainment (the “Achievement Level Factor”).  The weighting of each Performance Goal shall also be specified by the Administrator, and the aggregate weightings may exceed 100%.

 

 

 

 

(b)The amount of bonus that can be earned by any Eligible Employee during the Performance Period shall be based on the Eligible Employee’s target bonus percentage (“Target Bonus Percentage”), which shall be established by the Administrator and expressed as a percentage of the Eligible Employee’s base salary or base wage.  Except as required by applicable law, overtime and double time wages for non-exempt Eligible Employees are excluded from base salary and base wage rates.  Unless determined otherwise by the Administrator, in its sole discretion, the maximum amount payable to any Eligible Employee shall be two hundred percent (200%) of such Eligible Employee’s Target Bonus Percentage in any given Performance Period.

(c)Each exempt employee’s bonus will be determined based on the Company’s and/or the Eligible Employee’s achievement of the Performance Goals, which shall be weighted as determined by the Administrator in its sole discretion (the “Performance Mix”).   Bonus awards for eligible non-exempt employees  shall not be based upon achievement of Performance Goals, but shall be determined by his or her manager’s assessment of the eligible non-exempt employee’s individual performance and contributions relative to others in his or her organization, as determined in the sole and absolute discretion of the manager.

(d)As soon as administratively practicable following the date financial statements for the Performance Period are finalized and available from the Company, the Administrator shall determine the achievement level of each Performance Goal for each Eligible Employee for the full Performance Period.  The corporate and individual performance component for each exempt Eligible Employee (the “Performance Component”) shall be the sum of the amount for each Performance Goal calculated by multiplying (1) the Achievement Level Factor for the applicable Performance Goal times (2) the weighting for such Performance Goal times (3) the Target Bonus Percentage for the exempt Eligible Employee times (4) the exempt Eligible Employee’s annual base salary and (5) any proration applied based on an employee’s new hire date or any other change in position, as determined by the Administrator. 

(e)An exempt Eligible Employee’s actual bonus payment (“Bonus Payment”) for a given Performance Period will be weighted according to the exempt Eligible Employee’s Performance Mix and calculated based on the Performance Component and, in the discretion of the Administrator, adjusted based on its assessment of individual performance (the “Discretionary Component”) determined by the exempt Eligible Employee’s manager through consideration of such exempt Eligible Employee’s individual performance and contribution during the Performance Period relative to others in their organization.  For the avoidance of doubt, the achievement of the Discretionary Component can be less than, equal to or greater than 100% and can act to reduce (including to zero) or increase the Bonus Payment for an Eligible Employee, as determined in the Administrator’s discretion.  The Administrator will also have the authority to consider such Eligible Employee’s performance and contribution relative to all Company employees at the same level in determining an individual’s actual final Bonus Payment. Unless otherwise determined by the Administrator, Eligible Employees who are on a Performance Improvement Plan at the time bonuses are determined hereunder shall not be entitled to a Bonus Payment.  

(f)Subject to Section 2(b) hereof, the Administrator may, in its sole discretion and at any time, (i) pay bonuses (including, without limitation, discretionary bonuses) to Eligible Employees under the Plan based upon such other terms and conditions as the Administrator may in its discretion determine, (ii) increase, reduce or eliminate any bonus otherwise payable under the Plan and/or (iii) establish or modify Performance Periods.  The Administrator may determine 

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the amount of any reduction on the basis of such factors as it deems relevant, and shall not be required to establish any allocation or weighting with respect to the factors it considers.

(g)Subject to applicable law, the payment of a bonus to an Eligible Employee with respect to the Performance Period shall be conditioned upon the Eligible Employee’s employment by the Company on the date such payment is made; provided, however, that the Administrator may make exceptions to this requirement, in its sole discretion, including, without limitation, in the case of an Eligible Employee’s termination of employment, retirement, death or disability.  Payment of bonuses to Eligible Employees shall be made as soon as practicable, as determined by the Administrator after the end of the Performance Period. 

(h)For the avoidance of doubt and unless otherwise determined by the Administrator, Employees not on the Company’s, or the applicable subsidiary’s, payroll on or before the end of the Plan year will not be bonus eligible in that Plan year. 

	
5.
	
Amendment and Termination

The Company reserves the right to amend or terminate the Plan at any time in its sole discretion. 

	
6.
	
Tax Withholding  

The Company shall withhold all applicable taxes from any bonus payment made under the Plan, including any federal, state and local or foreign taxes (including, but not limited to, FICA and SDI obligations).

 

	
7.
	
No Effect on Employment or Service  

Nothing in the Plan shall interfere with or limit in any way the right of the Company or any of its affiliates to terminate any Eligible Employee’s employment or service at any time, with or without cause.  Except as may otherwise be provided by applicable law or a binding written agreement entered into between the Company and any Eligible Employee, an Eligible Employee’s employment with the Company and its affiliates is on an at-will basis only.  The Company expressly reserves the right, which may be exercised at any time and without regard to when during a performance period such exercise occurs, to terminate any individual’s employment with or without cause, and to treat him or her without regard to the effect that such treatment might have upon him or her as an Eligible Employee.

 

	
8.
	
Term of Plan

The Plan shall become effective as of the Effective Date, and it shall remain in effect until all payments with respect to the applicable Performance Period have been made.

 

	
9.
	
Unfunded Obligations

The rights of Eligible Employees under the Plan shall be unfunded and unsecured.  Amounts payable under the Plan are not and will not be transferred into a trust or otherwise set aside.  Neither the Company nor any subsidiary shall not be required to establish any special or separate fund or to make any other segregation of assets to assure the payment of any bonus under the Plan.  

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10.
	
Rights Not Transferable 

No rights of any Eligible Employee to payments of any amounts under the Plan shall be sold, exchanged, transferred, assigned, pledged, hypothecated or otherwise disposed of other than by will or by laws of descent and distribution, and any such purported sale, exchange, transfer, assignment, pledge, hypothecation or disposition shall be void.

 

	
11.
	
Governing Law

The Plan and the rights and obligations of the parties to the Plan shall be governed by, and construed and interpreted in accordance with, the law of the State of California (without regard to principles of conflicts of law).

 

	
12.
	
Section 409A

It is intended that the payments under this Plan comply with or be exempt from Section 409A of the Code and the Department of Treasury regulations and other interpretive guidance issued thereunder (“Section 409A”), including without limitation any such regulations or other guidance that may be issued after the Effective Date.  Accordingly, to the maximum extent permitted, this Plan shall be interpreted to be in compliance with Section 409A and any payment hereunder shall be made in compliance with or pursuant to an exemption from Section 409A.  

 

4nvro-ex102_15.htm

Exhibit 10.2

 

 Nevro Corp • 1800 Bridge Parkway • Redwood City, CA 94065 USA • 650-251-0005

 

CONFIDENTIAL

 
   
May 15, 2020     

Dear Rod,

 

On behalf of Nevro Corp. (the “Company” or “NEVRO”), we are very pleased to offer you the position of Chief Financial Officer. Your appointment is subject to approval of the Company’s Board of Directors and the compensation set forth below is subject to the approval of the Company’s Compensation Committee. This position reports to the Chairman, President and Chief Executive Officer of the Company. Your targeted start date with NEVRO will be June 15, 2020. 

This is an exempt position and your base salary is $36,666.66 per month (annualized at $440,000), payable in accordance with the Company’s standard payroll schedule for exempt employees. You will also be eligible for an annual performance-based, discretionary cash bonus up to 60% of your annual base salary. Your bonus, prorated for 2020 based on your start date, shall be determined based upon achievement of defined performance goals, as determined by the Company’s Compensation Committee.

The Company will recommend to the Compensation Committee that you be granted a number of restricted stock units (the “RSUs”) equal to (i) $1,500,000 divided by (ii) the closing price of the Company’s common stock on your first date of employment.  The award of the RSUs is subject to approval of the Compensation Committee and each RSU will represent the right to receive one share of the Company’s common stock upon vesting and settlement. The RSUs will vest in substantially equal annual installments over four years based on your continuous service to the Company through each vesting date. The RSUs will be granted under the Company’s 2014 Equity Incentive Plan (the “Plan”) and will be subject to the terms of the Plan and an RSU agreement to be entered into between you and the Company.

 

The Company will also recommend to the Compensation Committee that you be granted a number of performance stock units (the “PSUs”) equal to (i) $1,500,000 divided by (ii) the closing price of the Company’s common stock on your first date of employment.  The award of the PSUs is subject to approval of the Compensation Committee and will be subject to certain performance criteria (the “Criteria”) to be established by the Compensation Committee. The PSUs will vest fifty percent (50%) on the second anniversary of your grant date (or the first Tuesday of the month following your start date, the “Vesting Commencement Date”) and fifty percent (50%) on the third anniversary of Vesting Commencement Date, in each case subject to (i) your continuous service to the Company through each vesting date and (ii) achievement of the Criteria.  The PSUs will, upon vesting and settlement, represent the right to receive a certain number of shares of the Company’s common stock as set forth in a performance stock unit agreement (“PSU Agreement”) to be entered into between you and the Company and as determined pursuant to the Criteria. The PSUs will be granted under the Plan and will otherwise be subject to the terms of the Plan and the PSU Agreement.

 

During the term of your employment, you will be eligible to participate in the Company’s standard benefits, which include group life, group disability, medical, dental and vision. All benefits and employee co-pay amounts are described in NEVRO’s Benefits Overview/Employee Handbook, and, along with your base salary and any potential bonus opportunity, are subject to change from time-to-time. You will also be eligible to enter into the Company’s standard Change in Control Severance Agreement for executive 

 

 

officers and an Indemnification Agreement upon commencement of your employment.

As a condition of employment with NEVRO, you will be required to sign a Proprietary Information and Inventions Agreement, which includes confidentiality and nondisclosure agreements and assignment to NEVRO of your inventions during employment involving products, procedures or processes with which you will be involved at NEVRO. You will also be required to sign an acknowledgement that you have read, understand, and will comply with our Code of Business Conduct and Ethics and its related policies and procedures.

Although we hope that your employment with NEVRO is mutually satisfactory, please note that your employment with NEVRO is “at will.” This means that you may resign from NEVRO at any time with or without cause, and NEVRO has the right to terminate your employment relationship with or without cause at any time. Neither this letter nor any other communication, either written or oral, should be construed as a contract of employment for any particular duration. 

Our offer is contingent on (a) a satisfactory background investigation including drug screening and satisfactory credit check investigation (if applicable), (b) your being able to deliver to NEVRO satisfactory evidence of identity and employment eligibility as required by Federal law on your start date and (c) you providing NEVRO with evidence satisfactory to NEVRO that you have no conflicting obligations to or agreements with any third parties that could (i) have an adverse impact on your ability to properly discharge your responsibilities to NEVRO or (ii) give rise to a third-party claim to any intellectual property developed by NEVRO or by you on behalf of NEVRO during your employment with the Company. 

We are very excited about the prospect of you joining NEVRO as a key member of our team. Your active involvement will be critical in ensuring that we are successful in building the Company to the level of achievement which we know is possible. 

We request that you indicate acceptance of our offer no later than May 19th, 2020, by 12:00 pm at which time this offer will expire if not accepted. To accept our offer, please sign and date this letter below, retain one copy for your records and return the other copy. 

Please feel free to call me at ###-###-#### with any questions you may have. 

Sincerely, 

Keith Grossman

President and Chief Executive Officer

 

	
 
	
 
	
 

	
 
	
 
	
 

	
Agreed to and Accepted:
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
/s/ Roderick H. MacLeod
	
 
	
 

	
 
	
 
	
 

	
Date:
	
 
	
 

	
 
	
5/18/2020

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