Document:

Exhibit 10.16

 

[NEVRO LOGO]

 

4040 Campbell Avenue, Suite 210, Menlo Park CA 94025

 

February 27, 2014

CONFIDENTIAL

 

Balakrishnan Shankar

 

Dear Balakrishnan,

 

On behalf of Nevro Corp (the “Company” or “NEVRO”), we are very pleased to offer you the position of VP, Operations. This position reports to the Chief Executive Officer.  Your targeted start date with NEVRO will be March 24, 2014.

 

This is an exempt position and your base salary is $21,666.67 per month (annualized at $260,000.00), payable in accordance with the Company’s standard payroll schedule for exempt employees. You will also be eligible for a performance based discretionary cash bonus up to 20%. The Company will recommend to the Board of Directors that they grant you an Incentive Stock Option grant of 2,076,000 shares. These stock options and the strike price are subject to approval by the Board of Directors. The Company’s Stock Incentive Plan (the “SIP”) provides for a four year vesting schedule under which, subject to your continuous service with the Company, your grant would vest 12/48th on the first anniversary of your employment and 1/48th of the total shares beginning in month 13 of your employment until fully vested on the fourth anniversary of your employment with NEVRO. In addition, Nevro will reimburse up to $15,000 of relocation expenses (this includes selling expenses regarding your home/condominium).

 

During the term of your employment, you will be entitled to the Company’s standard benefits to 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.

 

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, do understand, and will comply with our Code of Business Conduct and Ethics and its related Policies and Procedures.

 

An additional condition of your employment and continued employment arises out of your entry into certain restrictive covenants, including but not limited to an agreement not to compete, in exchange for a stock option issued by your current employer, St. Jude Medical, Inc. (“St. Jude”). While both you and NEVRO are hopeful that St. Jude will not seek to enforce the agreement not to compete, if St. Jude does seek to enforce the agreement, you agree that NEVRO may revoke this offer and, if your employment has commenced, may terminate your employment, without further liability. As discussed, NEVRO is a small, emerging company and is therefore not in a position to engage in expensive and protracted litigation with St. Jude’s and also cannot be put in a situation

 

 

where the role for which you are being hired is unfilled. Therefore, you agree that you will seek recovery of damages arising out of your loss of the employment opportunity with NEVRO solely against St. Jude.  Although we hope that your employment with NEVRO is mutually satisfactory, please note that your employment at 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.  The Company has an evaluation period of three (3) months for all employees. Successful completion of the evaluation period does not negate our At-Will policy.

 

Our offer is contingent on (a) your being able to deliver to NEVRO satisfactory evidence of identity and employment eligibility as required by Federal law on your start date and (b) your 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 Monday, March 3, 2014 by noon (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 650-433-3230 with any questions you may have.

 

Sincerely,

 

Nevro Corporation

 

 

	
By:
    	
/s/   Michael DeMane
    	
 
    
	
Michael   DeMane
    	
 
    
	
Chief   Executive Officer
    	
 
    

 

 

Agreed to and Accepted:

 

 

	
By:
    	
/s/   Balakrishnan Shankar
    	
 
    
	
Balakrishnan   Shankar
    	
 
    
	
 
    	
 
    
	
Date:
    	
FEBRUARY   28, 2014
    	
 
    
				

 

2Exhibit 10.17

 

NBI DEVELOPMENT, INC.

750 Battery Street, Suite 600

San Francisco, CA 94111

 

January 16th, 2007

 

CONFIDENTIAL

 

Andre Walker

 

Dear Andre:

 

On behalf of NBI Development, Inc. (the “Company” or “NBI”) we are very pleased to offer you the position of Senior Vice President — Research and Development. This position reports directly to the CEO. Your start date with NBI will be Monday, February 12, 2007.

 

You will be paid a monthly salary of $20,833.00 (which is annualized to $250,000.00) less appropriate taxes and withholdings. As we have discussed, the Company is in the process of adopting an Equity Incentive Plan (the “EIP”). If the EIP is adopted, the Company will grant you Incentive Stock Option equal to l.75% of the fully diluted shares outstanding as of January 1, 2007. It is anticipated that the EIP would provide for a four year vesting schedule under which, subject to your continuous service with the Company, your grant would vest 12/48 on the first anniversary of your employment and l/48th of the total shares beginning in month 13 of your employment until fully vested on the fourth anniversary of your employment with NBI. In addition you will have the opportunity solely in the discretion of the Company and subject to approval of the Compensation Committee of the Company’s Board of Directors to buy common stock on terms to be determined by the Board of Directors of the Company. You will also be eligible for all benefits described in enclosed NBI Development Inc Benefit Summary.

 

As a condition of employment with NBI, you will be required to sign a Proprietary Information and Invention Agreement, which includes confidentiality and nondisclosure agreements and assignment to NBI your inventions during employment involving products, procedures or processes with which you will be involved at NBI.

 

Although we hope that your employment with NBI is mutually satisfactory, please note that your employment at NBI is “at will.” This means that you may resign from NBI at any time with or without cause, and NBI 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) your being able to deliver to NBI satisfactory evidence of identity and employment eligibility as required by Federal law on your start date and (b) your providing NBI with evidence satisfactory to NBI 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 NBI or (ii) give rise to a third party claim to any intellectual property developed by NBI or by you on behalf of NBI during your employment with the Company.

 

Andre, we are very excited about the prospect of you joining NBI 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 5:00 pm Friday, January 19, 2007 (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 in the enclosed envelope.

 

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

 

Sincerely,

 

	
NBI DEVELOPMENT, INC.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Konstantinos Alataris
    	
 
    
	
Konstantinos   Alataris,
    	
 
    
	
Chief   Executive Officer
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Agreed   to and Accepted:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/   Andre Walker
    	
 
    
	
Andre   Walker
    	
 
    
	
 
    	
 
    
	
Date:   1/17/2007
    	
 
    
			

 

2Exhibit 10.19

 

NEVRO CORP.

 

NON-EMPLOYEE DIRECTOR COMPENSATION PROGRAM

 

Non-employee members of the board of directors (the “Board”) of Nevro Corp. (the “Company”) shall be eligible to receive cash and equity compensation as set forth in this Non-Employee Director Compensation Program (this “Program”), which is being adopted pursuant to the Board’s resolutions on October 9, 2014.  The cash and equity compensation described in this Program shall be paid or be made, as applicable, automatically and without further action of the Board, to each member of the Board who is not an employee of the Company or any parent or subsidiary of the Company (each, a “Non-Employee Director”) who may be eligible to receive such cash or equity compensation, unless such Non-Employee Director declines the receipt of such cash or equity compensation by written notice to the Company.  This Program shall remain in effect until it is revised or rescinded by further action of the Board.  This Program may be amended, modified or terminated by the Board at any time, without advance notice, in its sole discretion.  The terms and conditions of this Program shall supersede any prior cash and/or equity compensation arrangements for service as a member of the Board between the Company and any of its Non-Employee Directors.  This Program shall become effective on the date of the pricing of the initial public offering of Company common stock (the “Effective Date”).

 

1.                                      Cash Compensation.

 

(a)                                 Annual Retainers.  Each Non-Employee Director shall be eligible to receive an annual retainer of $40,000 for service on the Board.

 

(b)                                 Additional Annual Retainers.  In addition, a Non-Employee Director shall receive the following annual retainers:

 

(i)                                     Audit Committee.  A Non-Employee Director serving as Chairperson of the Audit Committee shall receive an additional annual retainer of $20,000 for such service.  A Non-Employee Director serving as a member of the Audit Committee (other than the Chairperson) shall receive an additional annual retainer of $10,000 for such service.

 

(ii)                                  Compensation Committee.  A Non-Employee Director serving as Chairperson of the Compensation Committee shall receive an additional annual retainer of $15,000 for such service.  A Non-Employee Director serving as a member of the Compensation Committee (other than the Chairperson) shall receive an additional annual retainer of $8,000 for such service.

 

(iii)                               Nominating and Corporate Governance Committee.  A Non-Employee Director serving as Chairperson of the Nominating and Corporate Governance Committee shall receive an additional annual retainer of $10,000 for such service.  A Non-Employee Director serving as a member of the Nominating and Corporate Governance Committee (other than the Chairperson) shall receive an additional annual retainer of $5,000 for such service.

 

(c)                                  Payment of Retainers.  The annual retainers described in Sections 1(a) and 1(b) shall be earned on a quarterly basis based on a calendar quarter and shall be paid by the Company in arrears not later than the fifteenth day following the end of each calendar quarter.  In the event a Non-Employee Director does not serve as a Non-Employee Director, or in the applicable positions described in Section 1(b), for an entire calendar quarter, the retainer paid to such Non-Employee Director shall be prorated for the portion of such calendar quarter actually served as a Non-Employee Director, or in such position, as applicable.

 

 

2.                                      Equity Compensation.  Non-Employee Directors shall be granted the equity awards described below.  The awards described below shall be granted under and shall be subject to the terms and provisions of the Company’s 2014 Equity Incentive Award Plan or any other applicable Company equity incentive plan then-maintained by the Company (the “Equity Plan”) and shall be evidenced by the execution and delivery of award agreements, including attached exhibits, in substantially the forms previously approved by the Board.  All applicable terms of the Equity Plan apply to this Program as if fully set forth herein, and all grants of stock options hereby are subject in all respects to the terms of the Equity Plan.

 

(a)                                 Initial Awards.  Each Non-Employee Director who is initially elected or appointed to the Board on or after September 10, 2014 shall automatically be granted, on the later of the date of such initial election or appointment or the Effective Date, an option (an “Initial Award”) to purchase that number of shares of the Company’s common stock such that the award has an aggregate Grant Date Fair Value (as defined below) equal to $150,000, rounded down to the nearest whole share (subject to adjustment as provided in the Equity Plan). No Non-Employee Director shall be granted more than one Initial Award.  For the purposes of this Program, “Grant Date Fair Value” shall mean the fair value of an award as of the date of grant as determined in accordance with ASC Topic 718, “Share-Based Payment”, using the Black-Scholes pricing model and the valuation assumptions used by the Company in accounting for options as of such date of grant.

 

(b)                                 Subsequent Awards.  A Non-Employee Director who will continue to serve as a Non-Employee Director immediately following such meeting, shall be automatically granted, on the date of such annual meeting, an option (a “Subsequent Award”) to purchase that number of shares of the Company’s common stock such that the award has an aggregate Grant Date Fair Value equal to $90,000, rounded down to the nearest whole share (subject to adjustment as provided in the Equity Plan).

 

(c)                                  IPO Awards.  Each Non-Employee Director who is serving on the Board as of September 10, 2014 and will continue to serve as a Non-Employee Director following the Effective Date, shall be automatically granted, on the Effective Date, an option (an “IPO Award”) to purchase that number of shares of the Company’s common stock such that the award has an aggregate Grant Date Fair Value equal to $90,000, rounded down to the nearest whole share (subject to adjustment as provided in the Equity Plan).

 

(d)                                 Termination of Service of Employee Directors.  Members of the Board who are employees of the Company or any parent or subsidiary of the Company who subsequently terminate their service with the Company and any parent or subsidiary of the Company and remain on the Board will not receive an Initial Award pursuant to Section 2(a) above, but to the extent that they are otherwise eligible, will be eligible to receive, after termination from service with the Company and any parent or subsidiary of the Company, Subsequent Awards as described in Section 2(b) above.

 

(e)                                  Terms of Awards Granted to Non-Employee Directors

 

(i)                                     Purchase Price.  The per share exercise price of each option granted to a Non-Employee Director shall equal the Fair Market Value (as defined in the Equity Plan) of a share of common stock on the date the option is granted.  Without limiting the foregoing, Fair Market Value as of the Effective Date shall be equal to the price per share to the public in the Company’s initial public offering, as set forth on the cover of the final prospectus of the initial public offering of Company common stock.

 

(ii)                                  Vesting.  Each Initial Award shall vest and become exercisable in substantially equal installments on each of the first three anniversaries of the date of grant, subject to the

 

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Non-Employee Director continuing to provide services to the Company through each such vesting date.  Each Subsequent Award and each IPO Award, shall vest and become exercisable in twelve substantially equal installments on each monthly anniversaries of the date of grant, subject to the Non-Employee Director continuing to provide services to the Company through each such vesting date.  Each Initial Award, IPO Award and Subsequent Award, along with any other stock options or other equity-based awards held by any Non-Employee Director, shall vest in full immediately prior to the occurrence of a Change in Control (as defined in the Equity Plan), to the extent outstanding at such time.

 

(iii)                               Term.  The term of each stock option granted to a Non-Employee Director shall be ten (10) years from the date the option is granted.

 

3.                                      Reimbursements.  The Company shall reimburse each Non-Employee Director for all reasonable, documented, out-of-pocket travel and other business expenses incurred by such Non-Employee Director in the performance of his or her duties to the Company in accordance with the Company’s applicable expense reimbursement policies and procedures as in effect from time to time.

 

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