Document:

drrx-ex101_7.htm

Exhibit 10.1

 

 

DURECT CORPORATION 

2000 EMPLOYEE STOCK PURCHASE PLAN 

(as last amended June 17, 2020) 

The following constitute the provisions of the 2000 Employee Stock Purchase Plan of DURECT Corporation, as amended and restated effective as of the Restatement Effective Date (as defined below). 

	
1. 
	
Purpose. The purpose of the Plan is to provide employees of the Company and its Designated Subsidiaries with an opportunity to purchase Common Stock of the Company. It is the intention of the Company to have the Plan qualify as an “Employee Stock Purchase Plan” under Section 423 of the Code. The provisions of the Plan shall, accordingly, be construed so as to extend and limit participation in a manner consistent with the requirements of that section of the Code. 

	
2.
	
Definitions. 

	
 
	
(a)
	
“Administrator” means either the Board or a committee of the Board that is responsible for the administration of the Plan as is designated from time to time. 

	
 
	
(b)
	
“Applicable Laws” means the legal requirements relating to the administration of employee stock purchase plans, if any, under applicable provisions of federal securities laws, state corporate and securities laws, the Code and the applicable regulations thereunder, the rules of any applicable stock exchange or national market system, and the rules of any foreign jurisdiction applicable to participation in the Plan by residents therein. 

	
 
	
(c)
	
“Board” means the Board of Directors of the Company. 

	
 
	
(d)
	
“Code” means the Internal Revenue Code of 1986, as amended. Reference to a specific Section of the Code or regulation thereunder shall include such Section or regulation, any valid regulation promulgated under such Section, and any comparable provision of any future legislation or regulation amending, supplementing or superseding such Section or regulation. 

	
 
	
(e)
	
“Common Stock” means the Common Stock of the Company. 

	
 
	
(f)
	
“Company” means DURECT Corporation, a Delaware corporation. 

	
 
	
(g)
	
“Compensation” means all regular straight time gross earnings, and shall not include payments for overtime, shift premium, incentive compensation, incentive payments, bonuses, commissions and other compensation. 

	
 
	
(h)
	
“Continuous Status as an Employee” means the absence of any interruption or termination of service as an Employee. Continuous Status as an Employee shall not be considered interrupted in the case of (i) sick leave; (ii) military leave; (iii) any other leave of absence approved by the Administrator, provided that such leave is for a period of not more than three months, unless reemployment upon the expiration of such leave is guaranteed by contract or statute, or unless provided otherwise pursuant to Company policy adopted from time to time; or (iv) in the case of transfers between locations of the Company or between the Company and its Designated Subsidiaries. 

	
 
	
(i)
	
“Contributions” means all amounts credited to the account of a Participant pursuant to the Plan. 

	
 
	
(j)
	
“Corporate Transaction” means a sale of all or substantially all of the Company’s assets, or a merger, consolidation or other capital reorganization of the Company with or into another corporation. 

	
 
	
(k)
	
“Designated Parents or Subsidiaries” means the Parents or Subsidiaries which have been designated by the Administrator from time to time in its sole discretion as eligible to participate in the Plan; provided however that the Administrator shall only have the discretion to designate Parents or Subsidiaries if the issuance of options to such Parent’s or Subsidiary’s Employees pursuant to the Plan would not cause the Company to incur adverse accounting charges. 

	
 
	
(l)
	
“Employee” means any person, including an Officer, who is customarily employed for at least twenty (20) hours per week and more than five (5) months in a calendar year by the Company or one of its Designated Subsidiaries. The Administrator, in its discretion, from time to time may, prior to an Offering Date for all options to be granted on such Offering Date, determine (on a uniform and nondiscriminatory basis) that the definition of Employee will or will not include an individual if he or she: (i) has not completed at least two (2) years of service since his or her last hire date (or such lesser period of time as may be determined by the Administrator in its discretion), (ii) customarily works less than twenty (20) hours per week (or such lesser period of time as may be determined by the Administrator in its discretion), (iii) customarily works not more than five (5) months per calendar year (or such lesser period of time as may be determined by the Administrator in its discretion), (iv) is a highly compensated employee under Section 414(q) of the 

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Code or is a highly compensated employee under Section 414(q) of the Code with compensation above a certain level or who is also an officer or otherwise subject to the disclosure requirements of Section 16(a) of the Exchange Act), or (5) is a citizen or resident of a non-U.S. jurisdiction (without regard to whether he or she is also a citizen of the United States or a resident alien (within the meaning of Section 7701(b)(1)(A) of the Code)) if his or her participation is prohibited under the laws of the applicable non-U.S. jurisdiction or if complying with the laws of the applicable non-U.S. jurisdiction would cause the Plan or an Offering Period to violate Section 423 of the Code, provided the exclusion of Employees in such categories is not prohibited under Applicable Laws. 

	
 
	
(m)
	
“Exchange Act” means the Securities Exchange Act of 1934, as amended. 

	
 
	
(n)
	
“Fair Market Value” means, as of any date, the value of Common Stock determined as follows: 

	
 
	
(i)
	
If the Common Stock is listed on any established stock exchange or a national market system, including without limitation The Nasdaq Global Select Market, The Nasdaq Global Market or The Nasdaq Capital Market of The Nasdaq Stock Market, its Fair Market Value shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or system on the date of determination (or, if no closing sales price or closing bid was reported on that date, as applicable, on the last trading date such closing sales price or closing bid was reported), as reported in The Wall Street Journal or such other source as the Administrator deems reliable; 

	
 
	
(ii)
	
If the Common Stock is regularly quoted on an automated quotation system (including the OTC Bulletin Board) or by a recognized securities dealer, but selling prices are not reported, the Fair Market Value of a share of Common Stock shall be the mean between the high bid and low asked prices for the Common Stock on the date of determination (or, if no such prices were reported on that date, on the last date such prices were reported), as reported in The Wall Street Journal or such other source as the Administrator deems reliable; or 

	
 
	
(iii)
	
In the absence of an established market for the Common Stock of the type described in (1) and (2), above, the Fair Market Value thereof shall be determined by the Administrator in good faith. 

	
 
	
(o)
	
“Offering” means an offer under the Plan of an option that may be exercised during an Offering Period as further described in Section 4. For purposes of the Plan, all Employees will be deemed to participate in the same Offering unless the Administrator otherwise determines that Employees of one or more Designated Parents or Subsidiaries will be deemed to participate in separate Offerings, in which case the Offerings will be considered separate even if the dates of each such Offering are identical and the provisions of the Plan will separately apply to each Offering. To the extent permitted by Section 1.423-2(a)(1) of the Treasury regulations issued under Section 423 of the Code, the terms of each Offering need not be identical provided that the terms of the Plan and the Offering together satisfy Sections 1.423-2(a)(2) and (a)(3) of such Treasury regulations. 

	
 
	
(p)
	
“Offering Date” means the first Trading Day of each Offering Period of the Plan. 

	
 
	
(q)
	
“Offering Period” means, for periods that commenced prior to the Restatement Effective Date, a period of twenty-four (24) months commencing on May 1 and November 1 of each year. Effective as of November 1, 2010 (the “New Offering Period Commencement Date”), “Offering Period” means a period of approximately six (6) months commencing on May 1 and November 1 of each year, except as otherwise as set forth in Section 4(a). 

	
 
	
(r)
	
“Officer” means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder. 

	
 
	
(s)
	
“Ongoing Offering Periods” means the Offering Periods in effect as of the Restatement Effective Date. 

	
 
	
(t)
	
“Parent” means a “parent corporation” of the Company, whether now or hereafter existing, as defined in Section 424(e) of the Code. 

	
 
	
(u)
	
“Participant” means an Employee of the Company or Designated Parent or Subsidiary who has completed a subscription agreement as set forth in Section 5(a) and is thereby enrolled in the Plan. 

	
 
	
(v)
	
“Plan” means this Employee Stock Purchase Plan. 

	
 
	
(w)
	
“Purchase Date” means the last day of each Purchase Period of the Plan. 

	
 
	
(x)
	
“Purchase Period” means the period during an Offering Period in which Shares of Common Stock may be purchased on a Participant’s behalf in accordance with the terms of the Plan. Effective as of the New Offering Period Commencement Date, unless the Administrator provides otherwise, the Purchase Period for each Offering Period commencing on or after the New Offering Period Commencement Date will have the same duration and coincide with the length of the Offering Period. 

	
 
	
(y)
	
“Purchase Price” means with respect to a Purchase Period an amount equal to 85% of the Fair Market Value of a Share of Common Stock on the Offering Date or on the Purchase Date, whichever is lower. 

	
 
	
(z)
	
“Restatement Effective Date” means the date of the Company’s 2020 Annual Meeting of Stockholders. 

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(aa)
	
“Share” means a share of Common Stock, as adjusted in accordance with Section 19 of the Plan. 

	
 
	
(bb)
	
“Subsidiary” means a “subsidiary corporation” of the Company, whether now or hereafter existing, as defined in Section 424(f) of the Code. 

	
 
	
(cc)
	
“Trading Day” means a day on which the national stock exchange upon which the Common Stock is listed is open for trading. 

	
3.
	
Eligibility. 

	
 
	
(a)
	
Any person who is an Employee as of the Offering Date of a given Offering Period shall be eligible to participate in such Offering Period under the Plan, subject to the requirements of Section 5(a) and the limitations imposed by Section 423(b) of the Code. No individual who is not an Employee shall be eligible to participate in the Plan. 

	
 
	
(b)
	
Any provisions of the Plan to the contrary notwithstanding, no Employee shall be granted an option under the Plan (i) if, immediately after the grant, such Employee (or any other person whose stock would be attributed to such Employee pursuant to Section 424(d) of the Code) would own capital stock of the Company and/or hold outstanding options to purchase stock possessing five percent (5%) or more of the total combined voting power or value of all classes of stock of the Company or of any Parent or Subsidiary, or (ii) if such option would permit his or her rights to purchase stock under all employee stock purchase plans (described in Section 423 of the Code) of the Company and its Parents or Subsidiaries to accrue at a rate which exceeds Twenty-Five Thousand Dollars ($25,000) of the Fair Market Value of such stock (determined at the time such option is granted) for each calendar year in which such option is outstanding at any time. The determination of the accrual of the right to purchase stock shall be made in accordance with Section 423(b)(8) of the Code and the regulations thereunder. 

	
4.
	
Offerings, Offering Periods and Purchase Periods. 

	
 
	
(a)
	
Offering Periods. Prior to the New Offering Period Commencement Date, the Plan was implemented by a series of Offering Periods of approximately twenty-four (24) months duration, with new Offering Periods commencing on or about May 1 and November 1 of each year and ending on April 30 and October 31, respectively, approximately twenty-four (24) months later. Beginning on the New Offering Period Commencement Date, the Plan shall be implemented by consecutive Offering Periods of approximately six (6) months duration, with new Offering Periods commencing on or about May 1 and November 1 of each year (or at such other time or times as may be determined by the Administrator) and ending on the following October 31 and April 30, respectively. The Plan shall continue until terminated in accordance with Section 20 hereof. The Administrator shall have the power to change the duration and/or the frequency of Offering Periods with respect to future offerings without stockholder approval if such change is announced at least five (5) days prior to the scheduled beginning of the first Offering Period to be affected. 

	
 
	
(b)
	
Purchase Periods for Ongoing Offering Periods. With respect to the Ongoing Offering Periods, each such Offering Period consists of four (4) consecutive Purchase Periods of six (6) months’ duration. The last day of each Purchase Period shall be the “Purchase Date” for such Purchase Period. A Purchase Period commencing on May 1 shall end on the next October 31 and a Purchase Period commencing on November 1 shall end on the next April 30. 

	
 
	
(c)
	
Offerings. Each option will be granted under the same Offering unless the Administrator otherwise designates separate Offerings for the Employees of one or more Designated Parents or Subsidiaries, in which case, each Participant’s option will be granted under the Offering designated for the Employees of the Designated Parent or Subsidiary that employs the Participant. 

	
5.
	
Participation. 

	
 
	
(a)
	
An eligible Employee may become a Participant in the Plan by completing a subscription agreement authorizing payroll deductions on the form provided by the Company (which may be similar to the form attached hereto as Exhibit A) and filing it with the designated payroll office of the Company (or by following an electronic or other procedure prescribed by the Administrator) within the time period specified by the Administrator for all eligible Employees with respect to the Offering Period in which such participation will commence. The subscription agreement shall set forth the percentage of the Participant’s Compensation (subject to Section 6(a) below) to be paid as Contributions pursuant to the Plan. 

	
 
	
(b)
	
Payroll deductions shall commence on the first full payroll paid following the Offering Date and shall end on the last payroll paid on or prior to the last Purchase Period of the Offering Period to which the subscription agreement is applicable, unless sooner terminated by the Participant as provided in Section 10. 

	
6.
	
Method of Payment of Contributions. 

	
 
	
(a)
	
At the time a Participant files a subscription agreement, the Participant shall elect to have payroll deductions made on each payday during the Offering Period in an amount not less than one percent (1%) and not more than twenty percent 

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(20%) (or such greater percentage as the Administrator may establish from time to time before an Offering Date) of such Participant’s Compensation on each payday during an Offering Period. All payroll deductions made by a Participant shall be credited to his or her account under the Plan and will be withheld in whole percentages only. A Participant may not make any additional payments into such account. 

	
 
	
(b)
	
A Participant may discontinue his or her participation in the Plan as provided in Section 10, or, on one occasion only during an Offering Period may increase and on one occasion only during an Offering Period may decrease the rate of his or her Contributions with respect to the Offering Period, by completing and filing with the Company a new subscription agreement authorizing a change in the payroll deduction rate (or by following an electronic or other procedure prescribed by the Administrator). If a Participant has not followed such procedures to change the rate of payroll deductions, the rate of his or her payroll deductions will continue at the originally elected rate throughout the Offering Period and future Offering Periods (unless terminated as provided in Section 10). Any change in rate of Contributions pursuant to the preceding sentence shall be effective as of the beginning of the next calendar month following the date of filing of the new written or electronic instructions, provided the agreement indicating such change is filed at least ten (10) business days prior to such date and, if not, then as of the beginning of the next succeeding calendar month (unless the Administrator, in its sole discretion, elects to process a given change in payroll deduction rate more quickly). 

	
 
	
(c)
	
Notwithstanding the foregoing, to the extent necessary to comply with Section 423(b)(8) of the Code and Section 3(b), a Participant’s payroll deductions may be decreased by the Company to 0% at any time during an Offering Period. Payroll deductions shall re-commence at the rate in effect immediately prior to such reduction pursuant to the Participant’s last written or electronic instructions at the time when permitted under Section 423(b)(8) of the Code and Section 3(b) herein, unless such participation is sooner terminated by the Participant as provided in Section 10. In addition, a Participant’s payroll deductions may be decreased by the Company to 0% at any time during a Offering Period in order to avoid unnecessary payroll contributions as a result of the application of the maximum share limit set forth in Section 7(a), in which case payroll deductions shall re-commence at the rate provided in such Participant’s subscription agreement at the beginning of the next Offering Period, unless terminated by the Participant as provided in Section 10. 

	
7. 
	
Grant of Option. On the Offering Date of each Offering Period, each eligible Employee participating in such Offering Period shall be granted an option to purchase (at the applicable Purchase Price) on each Purchase Date a number of Shares of the Company’s Common Stock determined by dividing such Employee’s Contributions accumulated prior to such Purchase Date and retained in the Participant’s account as of the Purchase Date by the applicable Purchase Price; provided however that the maximum number of Shares an Employee may purchase during each Purchase Period shall be 2,000 Shares (subject to any adjustment pursuant to Section 19 below), and provided further that such purchase shall be subject to the limitations set forth in Sections 3(b) and 14. Exercise of the option shall occur as provided in Section 8, unless the Participant has withdrawn pursuant to Section 10, and the option, to the extent not exercised, shall expire on the last day of the Offering Period with respect to which such option was granted. Notwithstanding the foregoing, shares subject to the option may only be purchased with accumulated payroll deductions credited to a Participant’s account in accordance with Section 6 of the Plan. In addition, to the extent an option is not exercised on each Purchase Date, the option shall lapse and thereafter cease to be exercisable. 

	
8.
	
Exercise of Option. Unless a Participant withdraws from the Plan as provided in Section 10, his or her option for the purchase of Shares will be exercised automatically on each Purchase Date of an Offering Period, and the maximum number of full Shares subject to the option will be purchased at the applicable Purchase Price with the accumulated Contributions that remain in his or her account as of the Purchase Date. No fractional Shares shall be purchased; any payroll deductions accumulated in a Participant’s account which are not sufficient to purchase a full Share shall be retained in the Participant’s account for the subsequent Offering Period, subject to earlier withdrawal by the Participant as provided in Section 10 below. Any other amounts left over in a Participant’s account after a Purchase Date shall be returned to the Participant. During his or her lifetime, a Participant’s option to purchase Shares hereunder is exercisable only by him or her. 

	
9.
	
Delivery. As soon as reasonably practicable after each Purchase Date of each Offering Period, the Company shall arrange the delivery to each Participant, as appropriate, the Shares purchased upon exercise of his or her option in a form determined by the Administrator (in its sole discretion) and pursuant to rules established by the Administrator. The Company may permit or require that Shares be deposited directly with a broker designated by the Company or to a designated agent of the Company, and the Company may utilize electronic or automated methods of share transfer. The Company may require that Shares be retained with such broker or agent for a designated period of time and/or may establish other procedures to permit tracking of disqualifying dispositions of such Shares. 

	
10.
	
Voluntary Withdrawal; Termination of Employment. 

	
 
	
(a)
	
A Participant may withdraw all but not less than all the Contributions credited to his or her account under the Plan at any time prior to each Purchase Date by giving written notice to the Company. All of the Participant’s Contributions credited to his or her account will be paid to him or her promptly after receipt of his or her notice of withdrawal and his or her option for the current period will be automatically terminated, and no further Contributions for the purchase of Shares will be made during the Offering Period. If a Participant withdraws from an Offering Period, payroll deductions will not 

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resume at the beginning of the succeeding Offering Period unless the Participant delivers to the Company a new subscription agreement. 

	
 
	
(b)
	
Upon termination of the Participant’s Continuous Status as an Employee prior to the Purchase Date of an Offering Period for any reason, including retirement or death, the Contributions credited to his or her account will be returned to him or her or, in the case of his or her death, to the person or persons entitled thereto under Section 14, and his or her option will be automatically terminated. 

	
 
	
(c)
	
In the event an Employee fails to remain in Continuous Status as an Employee of the Company for at least twenty (20) hours per week during the Offering Period in which the employee is a Participant, he or she will be deemed to have elected to withdraw from the Plan and the Contributions credited to his or her account will be returned to him or her and his or her option terminated. 

	
 
	
(d)
	
A Participant’s withdrawal from an offering will not have any effect upon his or her eligibility to participate in a succeeding offering or in any similar plan which may hereafter be adopted by the Company. 

	
11. 
	
Automatic Withdrawal. To the extent permitted by any applicable laws, regulations or stock exchange rules, if the Fair Market Value of the Shares on an Offering Date for an Offering Period (the “New Offering Period”) commencing on or after the New Offering Period Commencement Date but during an Ongoing Offering Period is lower than the Fair Market Value of the Shares on the Offering Date for the Ongoing Offering Period, then every participant in the Ongoing Offering Period shall automatically be deemed to have (i) withdrawn from the Ongoing Offering Period at the close of the Purchase Period immediately preceding the New Offering Period and (ii) to have enrolled in such New Offering Period. All payroll deductions accumulated as of any withdrawal date pursuant to this Section 11 in a participant’s account after the exercise of his or her option at the close of the Purchase Period shall be returned to the participant.

 

	
12.
	
Interest. No interest shall accrue on the Contributions of a Participant in the Plan. 

	
13.
	
Stock. 

	
 
	
(a)
	
Subject to adjustment as provided in Section 19, the maximum number of Shares which shall be made available for sale under the Plan on Purchase Dates occurring on or after the Restatement Effective Date shall be 3,250,000 Shares. If the Administrator determines that, on a given Purchase Date, the number of shares with respect to which options are to be exercised may exceed (i) the number of shares of Common Stock that were available for sale under the Plan on the Offering Date of the applicable Offering Period, or (ii) the number of shares available for sale under the Plan on such Purchase Date, the Administrator may in its sole discretion provide (x) that the Company shall make a pro rata allocation of the Shares of Common Stock available for purchase on such Offering Date or Purchase Date, as applicable, in as uniform a manner as shall be practicable and as it shall determine in its sole discretion to be equitable among all Participants exercising options to purchase Common Stock on such Purchase Date, and continue all Offering Periods then in effect, or (y) that the Company shall make a pro rata allocation of the shares available for purchase on such Offering Date or Purchase Date, as applicable, in as uniform a manner as shall be practicable and as it shall determine in its sole discretion to be equitable among all Participants exercising options to purchase Common Stock on such Purchase Date, and terminate any or all Offering Periods then in effect pursuant to Section 20 below. The Company may make pro rata allocation of the Shares available on the Offering Date of any applicable Offering Period pursuant to the preceding sentence, notwithstanding any authorization of additional Shares for issuance under the Plan by the Company’s stockholders subsequent to such Offering Date. 

	
 
	
(b)
	
The Participant shall have no interest or voting right in Shares covered by his or her option until such shares are actually purchased on the Participant’s behalf in accordance with the applicable provisions of the Plan. No adjustment shall be made for dividends, distributions, or other rights for which the record date is prior to the date of such purchase. 

	
 
	
(c)
	
Shares to be delivered to a Participant under the Plan will be registered in the name of the Participant or in the name of the Participant and his or her spouse. 

	
14. 
	
Administration. The Plan shall be administered by the Administrator which shall have full and exclusive discretionary authority to construe, interpret and apply the terms of the Plan, to determine eligibility and to adjudicate all disputed claims filed under the Plan. Every finding, decision and determination made by the Administrator shall, to the full extent permitted by Applicable Law, be final and binding upon all persons. Notwithstanding any provision to the contrary in this Plan, the Administrator may adopt rules or procedures relating to the operation and administration of the Plan to accommodate the specific requirements of local laws and procedures for jurisdictions outside of the United States. Without limiting the generality of the foregoing, the Administrator is specifically authorized to adopt rules and procedures regarding eligibility to participate, the definition of Compensation, handling of payroll deductions, making of contributions to the Plan (including, without limitation, in forms other than payroll deductions), establishment of bank or trust accounts to hold payroll deductions, payment of interest, conversion of local currency, obligations to pay payroll tax, determination of beneficiary designation requirements, withholding procedures and handling of stock certificates which vary with local requirements. 

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15.
	
Designation of Beneficiary. 

	
 
	
(a)
	
A Participant may file a written designation of a beneficiary who is to receive any Shares and cash, if any, from the Participant’s account under the Plan in the event of such Participant’s death subsequent to the end of a Purchase Period but prior to delivery to him or her of such Shares and cash. In addition, a Participant may file a written designation of a beneficiary who is to receive any cash from the Participant’s account under the Plan in the event of such Participant’s death prior to the Purchase Date of an Offering Period. If a Participant is married and the designated beneficiary is not the spouse, spousal consent shall be required for such designation to be effective. 

	
 
	
(b)
	
Such designation of beneficiary may be changed by the Participant (and his or her spouse, if any) at any time by written notice. In the event of the death of a Participant and in the absence of a beneficiary validly designated under the Plan who is living at the time of such Participant’s death, the Company shall deliver such Shares and/or cash to the executor or administrator of the estate of the Participant, or if no such executor or administrator has been appointed (to the knowledge of the Company), the Company, in its discretion, may deliver such Shares and/or cash to the spouse or to any one or more dependents or relatives of the Participant, or if no spouse, dependent or relative is known to the Company, then to such other person as the Company may designate. 

	
 
	
(c)
	
All beneficiary designations will be in such form and manner as the Administrator may designate from time to time. 

	
16. 
	
Transferability. Neither Contributions credited to a Participant’s account nor any rights with regard to the exercise of an option or to receive Shares under the Plan may be assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws of descent and distribution, or as provided in Section 15) by the Participant. Any such attempt at assignment, transfer, pledge or other disposition shall be without effect, except that the Company may treat such act as an election to withdraw funds in accordance with Section 10. 

	
17. 
	
Use of Funds. All Contributions received or held by the Company under the Plan may be used by the Company for any corporate purpose, and the Company shall not be obligated to segregate such Contributions. All Contributions received or held by the Company may be subject to the claims of the Company’s general creditors. Participants shall have the status of general unsecured creditors of the Company. Any amounts payable to Participants pursuant to the Plan shall be unfunded and unsecured obligations for all purposes, including, without limitation, Title I of the Employee Retirement Income Security Act of 1974, as amended. The Company shall retain at all times beneficial ownership of any investments, including trust investments, which the Company may make to fulfill its payment obligations hereunder. Any investments or the creation or maintenance of any trust or any Participant account shall not create or constitute a trust or fiduciary relationship between the Administrator, the Company or any Designated Parent or Subsidiary and a Participant, or otherwise create any vested or beneficial interest in any Participant or the Participant’s creditors in any assets of the Company or a Designated Parent or Subsidiary. The Participants shall have no claim against the Company or any Designated Parent or Subsidiary for any changes in the value of any assets that may be invested or reinvested by the Company with respect to the Plan. 

	
18.
	
Reports. Individual accounts will be maintained for each Participant in the Plan. Statements of account will be given to participating Employees at least annually, which statements will set forth the amounts of Contributions, the per Share Purchase Price, the number of Shares purchased and the remaining cash balance, if any. 

	
19.
	
Adjustments Upon Changes in Capitalization; Corporate Transactions. 

	
 
	
(a)
	
Adjustment. Subject to any required action by the stockholders of the Company, the number of Shares covered by each option under the Plan which has not yet been exercised and the number of Shares which have been authorized for issuance under the Plan but have not yet been placed under option (collectively, the “Reserves”), as well as the maximum number of shares of Common Stock which may be purchased by a Participant in a Purchase Period, the number of shares of Common Stock set forth in Section 13(a) above, and the price per Share of Common Stock covered by each option under the Plan which has not yet been exercised, shall be proportionately adjusted for (i) any increase or decrease in the number of issued Shares resulting from a stock split, reverse stock split, stock dividend, combination or reclassification of the Common Stock (including any such change in the number of Shares of Common Stock effected in connection with a change in domicile of the Company), (ii) any other increase or decrease in the number of Shares effected without receipt of consideration by the Company, or (iii) any other transaction with respect to Common Stock including a corporate merger, consolidation, acquisition of property or stock, separation (including a spin-off or other distribution of stock or property), reorganization, liquidation (whether partial or complete) or any similar transaction; provided however that conversion of any convertible securities of the Company shall not be deemed to have been “effected without receipt of consideration.” Such adjustment shall be made by the Administrator, whose determination in that respect shall be final, binding and conclusive. Except as expressly provided herein, no issue by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of Shares subject to an option. 

	
 
	
(b)
	
Corporate Transactions. In the event of a dissolution or liquidation of the Company, any Purchase Period and Offering Period then in progress will terminate immediately prior to the consummation of such action, unless otherwise provided 

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by the Administrator. In the event of a Corporate Transaction, each option outstanding under the Plan shall be assumed or an equivalent option shall be substituted by the successor corporation or a parent or Subsidiary of such successor corporation. In the event that the successor corporation refuses to assume or substitute for outstanding options, each Purchase Period and Offering Period then in progress shall be shortened and a new Purchase Date shall be set (the “New Purchase Date”), as of which date any Purchase Period and Offering Period then in progress will terminate. The New Purchase Date shall be on or before the date of consummation of the transaction and the Administrator shall notify each Participant in writing, at least ten (10) days prior to the New Purchase Date, that the Purchase Date for his or her option has been changed to the New Purchase Date and that either: 

	
 
	
(i)
	
the Participant’s option will be exercised automatically on the New Purchase Date, unless prior to such date the Participant has withdrawn from the Offering Period as provided in Section 10; or 

	
 
	
(ii)
	
the Company shall pay to the Participant on the New Purchase Date an amount in cash, cash equivalents, or property as determined by the Administrator that is equal to the difference in the Fair Market Value of the shares subject to the option and the Purchase Price due had the Participant’s option been exercised automatically under Subsection (b)(i) above. 

For purposes of this Section 19, an option granted under the Plan shall be deemed to be assumed, without limitation, if, at the time of issuance of the stock or other consideration upon a Corporate Transaction, each holder of an option under the Plan would be entitled to receive upon exercise of the option the same number and kind of shares of stock or the same amount of property, cash or securities as such holder would have been entitled to receive upon the occurrence of the transaction if the holder had been, immediately prior to the transaction, the holder of the number of Shares of Common Stock covered by the option at such time (after giving effect to any adjustments in the number of Shares covered by the option as provided for in this Section 19); provided however that if the consideration received in the transaction is not solely common stock of the successor corporation or its parent (as defined in Section 424(e) of the Code), the Administrator may, with the consent of the successor corporation, provide for the consideration to be received upon exercise of the option to be solely common stock of the successor corporation or its parent equal in Fair Market Value to the per Share consideration received by holders of Common Stock in the transaction. 

	
20.
	
Amendment or Termination. 

	
 
	
(a)
	
The Administrator may at any time and for any reason terminate or amend the Plan. Except as provided in Section 19, no such termination of the Plan may affect options previously granted, provided that the Plan or an Offering Period may be terminated by the Administrator on a Purchase Date or by the Administrator’s setting a new Purchase Date with respect to an Offering Period and Purchase Period then in progress if the Administrator determines that termination of the Plan and/or the Offering Period is in the best interests of the Company and the stockholders or if continuation of the Plan and/or the Offering Period would cause the Company to incur adverse accounting charges as a result of a change after the effective date of the Plan in the generally accepted accounting rules applicable to the Plan. Except as provided in Section 19 and in this Section 20, no amendment to the Plan shall make any change in any option previously granted which adversely affects the rights of any Participant. In addition, to the extent necessary to comply with Applicable Laws, the Company shall obtain stockholder approval in such a manner and to such a degree as so required. 

	
 
	
(b)
	
Without stockholder consent and without regard to whether any Participant rights may be considered to have been adversely affected, the Administrator shall be entitled to limit the frequency and/or number of changes in the amount withheld during Offering Periods, change the length of Purchase Periods within any Offering Period, determine the length of any future Offering Period, determine whether future Offering Periods shall be consecutive or overlapping, designated separate Offerings for the Employees of one or more Designated Parents or Subsidiaries, in which case the Offerings will be considered separate even if the dates of each such Offering are identical and the provisions of the Plan will separately apply to each Offering, establish the exchange ratio applicable to amounts withheld in a currency other than U.S. dollars, establish additional terms, conditions, rules or procedures to accommodate the rules or laws of applicable foreign jurisdictions, permit payroll withholding in excess of the amount designated by a Participant in order to adjust for delays or mistakes in the Company’s processing of properly completed withholding elections, establish reasonable waiting and adjustment periods and/or accounting and crediting procedures to ensure that amounts applied toward the purchase of Common Stock for each Participant properly correspond with amounts withheld from the Participant’s Compensation, and establish such other limitations or procedures as the Administrator determines in its sole discretion advisable and which are consistent with the Plan, in each case to the extent consistent with the requirements of Code Section 423 and other Applicable Laws. 

	
21.
	
Notices. All notices or other communications by a Participant to the Company under or in connection with the Plan shall be deemed to have been duly given when received in the form specified by the Company at the location, or by the person, designated by the Company for the receipt thereof. 

7

 

	
22. 
	
Conditions Upon Issuance of Shares. Shares shall not be issued with respect to an option unless the exercise of such option and the issuance and delivery of such Shares pursuant thereto shall comply with all Applicable Laws, including, without limitation, the Securities Act of 1933, as amended, the Exchange Act, the rules and regulations promulgated thereunder, applicable state securities laws and the requirements of any stock exchange upon which the Shares may then be listed, and shall be further subject to the approval of counsel for the Company with respect to such compliance. 

As a condition to the exercise of an option, the Company may require the person exercising such option to represent and warrant at the time of any such exercise that the Shares are being purchased only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a representation is required by any of the aforementioned Applicable Laws or is otherwise advisable. In addition, no options shall be exercised or shares issued hereunder before the Plan shall have been approved by stockholders of the Company as provided in Section 24. 

	
23.
	
Term of Plan; Effective Date. The Plan became effective upon the effective date of the Registration Statement on Form S-1 for the initial public offering of the Company’s Common Stock. It shall continue in effect for a term of ten (10) years from the Restatement Effective Date unless sooner terminated under Section 20. 

	
24. 
	
Stockholder Approval. Continuance of the Plan shall be subject to approval by the stockholders of the Company within twelve (12) months before or after the date the Plan is adopted. Such stockholder approval shall be obtained in the degree and manner required under Applicable Laws. 

	
25.
	
No Employment Rights. The Plan does not, directly or indirectly, create any right for the benefit of any employee or class of employees to purchase any shares under the Plan, or create in any employee or class of employees any right with respect to continuation of employment by the Company or a Designated Parent or Subsidiary, and it shall not be deemed to interfere in any way with such employer’s right to terminate, or otherwise modify, an employee’s employment at any time. 

	
26.
	
No Effect on Retirement and Other Benefit Plans. Except as specifically provided in a retirement or other benefit plan of the Company or a Designated Parent or Subsidiary, participation in the Plan shall not be deemed compensation for purposes of computing benefits or contributions under any retirement plan of the Company or a Designated Parent or Subsidiary, and shall not affect any benefits under any other benefit plan of any kind or any benefit plan subsequently instituted under which the availability or amount of benefits is related to level of compensation. The Plan is not a “Retirement Plan” or “Welfare Plan” under the Employee Retirement Income Security Act of 1974, as amended. 

	
27. 
	
Effect of Plan. The provisions of the Plan shall, in accordance with its terms, be binding upon, and inure to the benefit of, all successors of each Participant, including, without limitation, such Participant’s estate and the executors, administrators or trustees thereof, heirs and legatees, and any receiver, trustee in bankruptcy or representative of creditors of such Participant. 

	
28.
	
Governing Law. The Plan is to be construed in accordance with and governed by the internal laws of the State of California (as permitted by Section 1646.5 of the California Civil Code, or any similar successor provision) without giving effect to any choice of law rule that would cause the application of the laws of any jurisdiction other than the internal laws of the State of California to the rights and duties of the parties, except to the extent the internal laws of the State of California are superseded by the laws of the United States. Should any provision of the Plan be determined by a court of law to be illegal or unenforceable, the other provisions shall nevertheless remain effective and shall remain enforceable. 

 

8

 

 

Exhibit 2 

DURECT CORPORATION 

2000 EMPLOYEE STOCK PURCHASE PLAN 

SUBSCRIPTION AGREEMENT 

New Election              

Change of Election              

1.    I,             , hereby elect to participate in the DURECT Corporation 2000 Employee Stock Purchase Plan (the “Plan”) for the Offering Period             ,             to             ,             , and subscribe to purchase shares of the Company’s Common Stock in accordance with this Subscription Agreement and the Plan. 

2.    I elect to have Contributions in the amount of         % of my Compensation, as those terms are defined in the Plan, applied to this purchase. I understand that this amount must not be less than 1% and not more than 20% of my Compensation during the Offering Period. (Please note that no fractional percentages are permitted). 

3.    I hereby authorize payroll deductions from each paycheck during the Offering Period at the rate stated in Item 2 of this Subscription Agreement. I understand that all payroll deductions made by me shall be credited to my account under the Plan and that I may not make any additional payments into such account. I understand that all payments made by me shall be accumulated for the purchase of shares of Common Stock at the applicable purchase price determined in accordance with the Plan. I further understand that, except as otherwise set forth in the Plan, shares will be purchased for me automatically on the Purchase Date of each Offering Period unless I otherwise withdraw from the Plan by giving written notice to the Company for such purpose. 

4.    I understand that I may discontinue at any time prior to the Purchase Date my participation in the Plan as provided in Section 10 of the Plan. I also understand that I can increase or decrease the rate of my Contributions during an Offering Period by completing and filing with the Company a new Subscription Agreement with such increase or decrease taking effect as of the beginning of the next following calendar month, if filed at least ten (10) business days prior to the beginning of such month. Further, I may change the rate of deductions for future Offering Periods by filing a new Subscription Agreement, and any such change will be effective as of the beginning of the next Offering Period. In addition, I acknowledge that, unless I discontinue my participation in the Plan as provided in Section 10 of the Plan, my election will continue to be effective for each successive Offering Period. 

5.    I have received a copy of the Company’s most recent description of the Plan and a copy of the complete “DURECT Corporation 2000 Employee Stock Purchase Plan.” I understand that my participation in the Plan is in all respects subject to the terms of the Plan. 

6.    Shares purchased for me under the Plan should be issued in the name(s) of (name of employee or employee and spouse only): 

 

 

1

 

 

7.    In the event of my death, I hereby designate the following as my beneficiary(ies) to receive all payments and shares due to me under the Plan: 

 

				
	
 
	
 
	
 
	
 

	
NAME: (Please print)
	
 
	
 
	
 

	
 
	
(First)
	
(Middle)
	
(Last)

	
(Relationship)
	
 
	
 
	
 

	
 
	
 

	
 
	
(Address)
	
 
	
 

	
Social Security #:                                       
	
 

	
 
	
 

	
Percentage Benefit:                                    
	
 

 

				
	
 
	
 
		
	
NAME: (Please print)
	
 
		
	
 
	
(First)
	
(Middle)
	
(Last)

	
(Relationship)
	
 
	
 
	
 

	
 
	
 

	
 
	
(Address)
	
 
	
 

	
Social Security #:                                      
	
 

	
 
	
 

	
Percentage Benefit:                                   
	
 

8.    I understand that if I dispose of any shares received by me pursuant to the Plan within 2 years after the Offering Date (the first day of the Offering Period during which I purchased such shares) or within 1 year after the Purchase Date, I will be treated for federal income tax purposes as having received ordinary compensation income at the time of such disposition in an amount equal to the excess of the fair market value of the shares on the Purchase Date over the price which I paid for the shares, regardless of whether I disposed of the shares at a price less than their fair market value at the Purchase Date. The remainder of the gain or loss, if any, recognized on such disposition will be treated as capital gain or loss. 

I hereby agree to notify the Company in writing within 30 days after the date of any such disposition, and I will make adequate provision for federal, state or other tax withholding obligations, if any, which arise upon the disposition of the Common Stock. The Company shall be entitled, to the extent required by applicable law, to withhold from my Compensation any amount necessary to comply with applicable tax withholding requirements with respect to the purchase or sale of shares under the Plan. 

9.    If I dispose of such shares at any time after expiration of the 2-year and 1-year holding periods, I understand that I will be treated for federal income tax purposes as having received compensation income only to the extent of an amount equal to the lesser of (1) the excess of the fair market value of the shares at the time of such disposition over the purchase price which I paid for the shares under the option, or (2) 15% of the fair market value of the shares on the Offering Date. The remainder of the gain or loss, if any, recognized on such disposition will be treated as capital gain or loss. 

I understand that this tax summary is only a summary and is subject to change. I further understand that I should consult a tax advisor concerning the tax implications of the purchase and sale of stock under the Plan. 

10.    I hereby agree to be bound by the terms of the Plan. The effectiveness of this Subscription Agreement is dependent upon my eligibility to participate in the Plan. 

2

 

 

 

		
	
 
	
 

	
NAME (print):                                                                   
	
 

	
 
	
 

	
SIGNATURE:                                                                     
	
 

	
 
	
 

	
SOCIAL SECURITY #:                                                    
	
 

	
 
	
 

	
DATE:                                                                                
	
 

	
 
	
 

	
SPOUSE’S SIGNATURE (necessary

if beneficiary is not spouse):
	
 

	
 
	
 

	
 
	
 

	
(Signature)
	
 

	
 
	
 

	
 
	
 

	
(Print name)
	
 

 

3

 

 

Exhibit 3 

DURECT CORPORATION 

2000 EMPLOYEE STOCK PURCHASE PLAN 

NOTICE OF WITHDRAWAL 

I,             , hereby elect to withdraw my participation in the DURECT Corporation 2000 Employee Stock Purchase Plan (the “Plan”) for the Offering Period that began on             ,             . This withdrawal covers all Contributions credited to my account and is effective on the date designated below. 

I understand that all Contributions credited to my account will be paid to me within ten (10) business days of receipt by the Company of this Notice of Withdrawal and that my option for the current period will automatically terminate, and that no further Contributions for the purchase of shares can be made by me during the Offering Period. 

The undersigned further understands and agrees that he or she shall be eligible to participate in succeeding offering periods only by delivering to the Company a new Subscription Agreement. 

 

		
	
 
	
 

	
Dated:                                                                                            
	
 

	
 
	
Signature of Employee

	
 
	
 

	
 
	
 

	
 
	
Social Security Number

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

4Exhibit 10.1

    

     

    

    

    

    CONFIDENTIAL SEPARATION AGREEMENT AND GENERAL RELEASE

    This CONFIDENTIAL SEPARATION AGREEMENT AND GENERAL RELEASE (“Agreement”) is entered as of this May 28, 2020,
      between Iradimed Corporation (“Iradimed” or “Company”), and Leslie McDonnell, a resident of the State of Florida (“Executive”).

      Each of the above may be referred to herein as a “Party” and collectively referred to as “Parties.”

    RECITALS

    WHEREAS, Executive and Company entered into an Employment Agreement dated July 24, 2019 (“Employment Agreement”); and

    WHEREAS, pursuant to Subsection 6(c) of the Employment Agreement, Iradimed provided Executive with a restricted stock
      unit award (“RSU”) granted on or about August 19, 2019 of 94,652 RSUs that is subject to the terms and conditions of the Iradimed Restricted Stock Unit Agreement executed by Executive and Company (the “RSU Grant”); and

    WHEREAS, pursuant to Subsection 6(d) of the Employment Agreement, Iradimed provided Executive with an RSU grant on or
      about December 7, 2019 of 7,284 RSUs that is subject to the terms and conditions of the Iradimed Restricted Stock Unit Agreement executed by Executive and Company (“Equity Bonus”) ; and

    WHEREAS, pursuant to Subsection 6(c) of the Employment Agreement, Iradimed provided Executive with an option to purchase
      50,000 shares of the Iradimed Common Stock on or about August 19, 2019 (the “Option”) pursuant to the Iradimed Stock Option Agreement (“Option Agreement”);
      and

    WHEREAS, Executive, pursuant to the Employment Agreement, has been employed at Iradimed from July 24, 2019 through May
      28, 2020 (the “Separation Date”), the date she received written notice of termination of her employment pursuant to Subsection 7(b) of the Employment Agreement; and

    WHEREAS, as of the Separation Date, Executive had no RSUs vested, and 101,936 RSUs unvested, which includes any and all
      RSUs granted pursuant to the RSU Grant in Subsection 6(c) and the Equity Bonus in Subsection 6(d) of the Employment Agreement; and

    WHEREAS, as of the Separation Date, Executive had no shares vested and exercisable under the Option, and 50,000 shares
      unvested and unexerciseable under the Option, which includes any and all options granted pursuant to Subsection 6(c) of the Employment Agreement; and

    WHEREAS, as of the Separation Date, Executive voluntarily resigns her position on the Board of Directors of Iradimed
      effective as of the Separation Date; and

    WHEREAS, Executive and Iradimed now desire to specify the terms and conditions of Executive’s separation from Iradimed.

     1 of 12

    

    
      
        

    

    

    

    NOW, THEREFORE, in consideration of the promises and the performance of the covenants and agreements hereinafter
      contained, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties to this Agreement hereby represent, warrant, consent and agree as follows:

    AGREEMENT

    1.            Adoption of Recitals. The Parties adopt the above recitals as being true and correct, and they are incorporated
        herein as material parts of this Agreement. 

    2.            Employment Separation. As of the Separation Date, all salary
        payments from Iradimed will cease and any benefits Executive had as of the Separation Date under Iradimed provided benefit plans, programs, or practices will terminate, except as expressly provided in this Agreement and/or as required by federal or
        state law. After the Separation Date, Executive will not represent to any individual, entity, or the public that Executive is an employee, officer, director, agent, or representative of Iradimed. As of the Separation Date, irrespective of whether
        she signs this Agreement, Executive voluntarily resigns her position on the Board of Directors of Iradimed effective immediately. Irrespective of whether Executive executes this Agreement, Executive shall be paid Executive’s final wages earned
        through the Separation Date, including (1) payment of 129.15 hours of accrued, but unused vacation pay, less statutory deductions and withholdings and (2) payment of outstanding and approved business
        expenses.

    A.            Additional Compensation. Consistent with Section 10(a) of Executive’s Employment Agreement, Executive shall receive an amount equal to twelve (12) months of
        Executive’s base salary of $400,000 (minus applicable withholdings), which will be paid out over the course of twelve (12) months commencing on the payroll period that follows fifteen (15) days after the Separation Date.

    B.            COBRA. Consistent with Section 10(a) of Executive’s Employment Agreement and provided that (1) Executive is currently enrolled in Iradimed sponsored health plans,
        and (2) Executive elects COBRA coverage for continuation of these benefits, the Company shall provide Executive with a taxable lump sum payment in an amount equal to the employer portion of the insurance premiums, as increased in this Section 2(B)
        to account for taxed benefits, in order to continue Executive’s health benefits under COBRA for twelve (12) months following the Separation Date, as such premiums would be measured on the Separation Date, less applicable federal and state payroll
        deductions (“COBRA Benefit”). The payment of the COBRA Benefit shall be increased to include an amount equal to the estimated additional federal and applicable state income taxes that Executive would
        incur on account of the payment of the COBRA Benefit, determined based on the highest marginal tax rates, over the amount that Executive would have had to pay if the COBRA Benefit had been provided on a pre-tax basis. Executive shall receive the
        COBRA Benefit under this Section 2(B) irrespective of whether Executive executes this Agreement. Notwithstanding anything to the contrary in this Agreement, if Iradimed determines in its sole discretion that it cannot provide the COBRA Benefit
        without potentially violating applicable law (including without limitation, Section 2716 of the Public Health Service Act) or incurring an excise or penalty tax, the parties agree to reform this Section 2(B).

    
      2

      
        

    

    

    

    C.            Equity Compensation & Annual Equity Bonus. Consistent with Subsections 6(c), 6(d) and 10(a) of Executive’s Employment Agreement, all unvested RSUs and unvested
        and unexercised shares under the Option as of the Separation Date shall be accelerated and deemed vested as of the Separation Date.  The vesting, exercise, settlement, and other terms and conditions of such RSUs and Option shall be governed by the
        applicable plan documents, including the Iradimed Restricted Stock Unit Agreement and the Option Agreement.

    D.            Timing.  The timing of the benefits in Section 2 are as follows: (i) Iradimed will pay Executive the Additional Compensation (minus applicable withholdings)
        under Subsection 2(A) in substantially equal installments, in accordance with Iradimed’s customary payroll practices, in effect from time to time, starting on the payroll period starting after fifteen (15) days after the Separation Date; (ii)
        Iradimed will pay the COBRA Benefit under Subsection 2(B) as a lump sum payment within fifteen (15) days of the Separation Date; and (iii) the vesting described in Subsection 2(C) shall be effective the Separation Date.  The Additional Compensation
        payment under Subsection 2(A) will be accelerated, as set forth in Section 3, if Executive executes and does not revoke this Agreement.

    3.            Severance Benefits. Provided that Executive executes and delivers this Agreement to Iradimed no later than 21
        days after receiving this Agreement, and absent revocation of this Agreement by Executive as described in Section 5 of this Agreement, and provided that Executive complies with the material terms of this Agreement, the Company will provide the
        following Severance Benefits:

    A.            Acceleration of Additional Compensation. Provided that Executive executes and delivers this Agreement to Iradimed no later than 21 days
        after receiving this Agreement, and absent revocation of this Agreement by Executive as described in Section 5 of this Agreement, Iradimed will pay Executive the Additional Compensation set forth above in Subsection 2(A) in a lump sum payment
        (minus applicable withholdings) (the “Separation Pay”) within five (5) business days of the expiration of the revocation period set forth in Section 5 of this Agreement. For the avoidance of doubt, no
        Separation Pay will be paid prior to the revocation period, described in Section 5 of this Agreement. Executive acknowledges that Executive is not otherwise entitled to receive this Separation Pay (the acceleration of the Additional Compensation
        set forth in Subsection 2(A)) from Iradimed, which constitutes valid consideration in exchange for Executive’s release of all claims and the other obligations set forth in this Agreement.

    B.            Rehire. Executive hereby agrees not to seek employment with or to become a consultant for Iradimed following the Separation Date.
        Executive also agrees that Iradimed shall have no obligation to consider Executive for rehire. If Executive is rehired by Iradimed prior to Executive’s severance being paid in full,  Executive understands that Iradimed will stop paying any
        remaining Severance Benefits to Executive, but Executive agrees that the agreement to provide Severance Benefits and any amounts already provided to Executive shall constitute adequate consideration for this Agreement, including the General Release
        set forth in Section 4.

    4.            General Release. Executive, on behalf of Executive and Executive’s
        heirs, executors, administrators, successors, and assigns, hereby irrevocably and unconditionally releases, acquits, forever discharges and covenants not to sue Iradimed or its affiliated corporations and entities or their respective former and
        current owners, stockholders, members, managers,

    
      3

      
        

    

    

    

    predecessors, successors, assigns, agents, directors, officers, employees, representatives, attorneys, parent companies, divisions, subsidiaries, benefits administrators,
      investors, funds, and affiliates (collectively, the “Releasees”) for and from any and all federal, state, or local laws, regulations, ordinances, claims, charges, complaints, demands, actions, causes of
      action, suits, rights, debts, sums of money, costs, accounts, reckonings, covenants, contracts, agreements, promises, doings, omissions, damages, executions, obligations, liabilities, and expenses (including attorneys’ fees and costs) of every kind
      and nature that Executive ever had or now has against any or all of the Releasees, including, but not limited to, any obligation or claim arising under public policy, contract (express or implied, written or oral), tort, or common law, including but
      not limited to, wrongful discharge, defamation, emotional distress, misrepresentation, and/or obligations arising out of Iradimed’s employment policies or practices, employee handbooks, and/or statements by any employee or agent of Iradimed (whether
      oral or written), claims arising under Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. § 2000 et seq.; the Rehabilitation Act of 1973, as amended, 29 U.S.C. § 701 et seq.; the Americans with Disabilities Act of 1991, as amended, 42
      U.S.C. § 12101 et seq.; the Executive Retirement Income Security Act of 1974, as amended, 29 U.S.C. § 1001 et seq.; the Equal Pay Act of 1963, as amended, 29 U.S.C. § 206(d); the Civil Rights Act of 1866, as amended, 42 U.S.C. § 1981 et seq.; the
      Civil Rights Act of 1871, as amended, 42 U.S.C. § 1985 et seq.; the Older Workers Benefit Protection Act (“OWBPA”); the Age Discrimination in Employment Act of 1967, as amended, 29 U.S.C. §§ 621 et seq. (the “ADEA”); the Worker Adjustment and
      Retraining Notification Act, as amended, 29 U.S.C. §§ 2101 et seq.; the Immigration Reform and Control Act, as amended, 8 U.S.C. 1101 et seq.; the Fair Credit Reporting Act, as amended, 15 U.S.C. § 1681 et seq.; the Florida Civil Rights Act, the
      Florida Equal Pay Law, the Florida Wage Discrimination Law, the Florida AIDS Act, the Florida Constitution, and any and all claims arising under any other constitutional, federal, regulatory, state or local law, or under the common law or in equity;
      and any agreements between Executive and any of the Releasees (collectively the “Released Claims”), from the beginning of time through the date on which Executive signs this Agreement.

    Notwithstanding the foregoing, Executive does not release any claims (1) for any breach of this Agreement, (2) any claims which cannot be waived by law, such as claims for
      unemployment benefit rights and workers’ compensation; (3) indemnification rights you have against Company; (4) any right to file an unfair labor practice charge under the National Labor Relations Act; and (5) any rights to vested benefits, such as
      pension or retirement benefits, the rights to which are governed by the terms of the applicable plan documents and award agreements. Executive acknowledges and agrees that Executive is not owed or entitled to any compensation, benefits, or
      consideration of any kind or nature whatsoever from Iradimed or any of the other Releasees except as expressly provided in this Agreement, and to the extent that any such additional amount owed is otherwise determined to exist, the payments described
      herein are in lieu of and encompass such amounts.

    NOTHING IN THIS RELEASE SHALL BE CONSTRUED TO PROHIBIT EMPLOYEE FROM CONTACTING, FILING A CHARGE WITH OR PARTICIPATING IN ANY PROCEEDING OR INVESTIGATION BY THE
      U.S. EQUAL EMPLOYMENT OPPORTUNITY COMMISSION (“EEOC”), DEPARTMENT OF LABOR (“DOL”), NATIONAL LABOR RELATIONS BOARD (“NLRB”), OR COMPARABLE STATE OR LOCAL ENTITY. NOTWITHSTANDING THE FOREGOING, EMPLOYEE AGREES TO WAIVE ANY RIGHT
      TO RECOVER MONETARY DAMAGES IN ANY SUCH

    
      4

      
        

    

    

    

    CHARGE, INVESTIGATION OR PROCEEDING OR ANY RELATED COMPLAINT, OR LAWSUIT FILED BY EMPLOYEE OR ON EMPLOYEE’S BEHALF. NOTHING IN THIS LETTER AGREEMENT LIMITS OR IN
      ANY OTHER WAY AFFECTS EMPLOYEE COMMUNICATING WITH ANY GOVERNMENTAL AGENCY OR ENTITY, OR COMMUNICATING WITH ANY OFFICIAL OR STAFF PERSON OF A GOVERNMENTAL AGENCY OR ENTITY, CONCERNING MATTERS RELEVANT TO THE GOVERNMENTAL AGENCY OR ENTITY.

    By signing below, Executive acknowledges and agrees that Executive has been paid for all salary, wages, and compensation earned through Executive’s last day worked, and that
      Executive is not entitled to receive, and shall not claim from Company, any compensation, payments or benefits except for those payments and benefits that are expressly set forth in this Agreement.

    5.            Specific ADEA Release. Executive expressly agrees to the release of any rights or claims arising out of the
        ADEA, as amended, including the OWBPA, and their implementing regulations, and in connection with such waiver, Executive agrees and acknowledges that:

    A.            Executive

        has read this Agreement in its entirety and understands all of its terms;

    B.            Executive

        has been advised to consult with an attorney prior to signing this Agreement;

    C.            The

        Separation Pay and benefits to Executive pursuant to this Agreement constitute special benefits that Iradimed is providing in its discretion due to Executive’s unique circumstances and that Executive is not otherwise entitled to receive;

    D.            No

        rights or claims are released or waived that might arise after Executive signs this Agreement;

    E.            Executive

        has twenty-one (21) days from Executive’s receipt of this Agreement within which to consider whether or not to sign it;

    F.            Executive

        has seven (7) days following Executive’s signature of this Agreement to revoke this Agreement;

    G.            This

        Agreement shall not become effective or enforceable until immediately after the revocation period of seven (7) days has expired without Executive exercising Executive’s right to revoke this Agreement;

    H.            If,

        after signing, Executive chooses to revoke this Agreement, Executive must do so by notifying Iradimed in writing, in accordance with the requirements of Section 20 of this Agreement.

    6.            Permitted Disclosures. Nothing in this Agreement prohibits or restricts Executive (or Executive’s attorney) from
        filing a charge or complaint with the Securities Exchange Commission (“SEC”), the Financial Industry Regulatory Authority (“FINRA”), or any other
        securities regulatory agency or self-regulatory authority. Executive further understands that this

    
      5

      
        

    

    

    

    Agreement does not limit Executive’s ability to communicate with any securities regulatory agency or authority or otherwise participate in any investigation or proceeding that may
      be conducted by any securities regulatory agency or authority without notice to Iradimed. This Agreement does not limit Executive’s right to receive an award for information provided to the SEC staff or any other securities regulatory agency or
      authority. Nothing in this Agreement shall be construed to prevent disclosure of Confidential Information (as described in Section 11 of this Agreement) as may be required by applicable law or regulation, or pursuant to the valid order of a court of
      competent jurisdiction or an authorized government agency, provided that the disclosure does not exceed the extent of disclosure required by such law, regulation, or order.

    7.            Confidentiality of this Agreement.

    A.            In

        consideration of the obligations under this Agreement, Executive agrees that this Agreement and the terms and conditions hereof are strictly, and shall forever remain, confidential, and that Executive shall not disclose or disseminate any
        information concerning any such terms to any third person(s), including, but not limited to, representatives of the media, except that the Parties may disclose the terms of this Agreement to their respective
        attorneys, accountants, tax advisors, other similar professional or the Internal Revenue Service or other appropriate federal agencies (“Third Parties”). All Third Parties to whom such disclosure is
        made shall agree in advance to be bound by the terms of this Section 7.

    B.            If

        Executive is required to disclose this Agreement, its terms, or underlying facts pursuant to court order and/or subpoena, Executive shall notify the Company in writing via email or overnight mail, within three (3) business days of Executive’s
        receipt of such court order or subpoena or prior to the compliance deadline (whichever is sooner), and shall simultaneously provide the Company with a copy of such court order or subpoena. The notice shall comply with the notice requirements set
        forth in Section 20 below. The Parties agree to waive any objection to a request that the necessary document production or testimony be done in camera and under seal.

    C.            The

        Parties agree that the terms of this Section 7 are a material inducement for the execution of this Agreement.  Any disclosure or dissemination, other than as described above in Subsections 7(A) and/or 7(B), will be regarded as a breach of this
        Agreement, and a cause of action shall immediately accrue for damages and injunctive relief. The Parties acknowledge that a violation of Subsections 7(A) and/or 7(B) would cause immeasurable and irreparable damage.
          Accordingly, the Executive agrees that the Company shall be entitled to injunctive relief in any court of competent jurisdiction for any actual or threatened violation of Subsections 7(A) and/or 7(B), in
          addition to any other available remedies. Further, the Parties also agree that if Executive breaches this Section 7, Iradimed shall be entitled to seek disgorgement of the Settlement Pay as of the date of a breach by Executive of Section 7 of this Agreement.

    D.            As

        an exception to this provision, the Company may disclose information related to this Agreement, including the existence of this Agreement, for purpose of any public disclosures, including compliance with any SEC regulations and laws.  Similarly, as
        an exception to this provision, Executive may disclose information related to this Agreement only as necessary (i) to Executive’s immediate family members and professional representatives (including attorneys, accountants and/or tax advisors), who
        shall be informed of and bound by this confidentiality clause; (ii) to the extent necessary to enforce or challenge the terms of this

    
      6

      
        

    

    

    

    Agreement; or (iii) in connection with any charge or complaint filed by Executive with the EEOC, NLRB, DOL, SEC, FINRA or any similar federal, state, or local department or agency.
      Executive shall promptly provide written notice of any such order to Iradimed, pursuant to Section 20 of this Agreement.

    8.            Non-Admission. Nothing in this Agreement, including the above Separation Pay, is to
        be deemed, interpreted, or construed as an admission by Iradimed or any of the Releasees regarding liability, damages, or the validity of any claim or defense which Executive may assert.

    9.            Cooperation. The Parties agree to execute and deliver any and all documents that
        may be necessary to effectuate the terms agreed to herein.

    10.            Non-Disparagement.

    A.            Executive agrees that Executive will not, except as required by law, engage in any conduct or make any statement which is in any way critical of, or disparaging to, or otherwise derogatory about Iradimed or any of the
        Released Parties (as defined above) or any of Iradimed’s services, business affairs or financial condition, or any of Iradimed’s directors, officers, employees, agents or representatives. Executive understands and agrees that Executive’s commitment
        not to defame, disparage, or impugn Iradimed’s reputation constitutes a willing and voluntary waiver of Executive’s rights under the First Amendment of the United States Constitution and other laws. However, these non-disparagement obligations, do
        not limit Executive’s ability to truthfully communicate with the EEOC, DOL, NLRB, SEC, FINRA and comparable state or local agencies or departments whether such communication is initiated by Executive or in response to the government.

    B.            Iradimed agrees that Iradimed’s Board of Directors, executive officers, and human resources personnel shall not engage in any conduct or make any statement that is in any way critical of, or disparaging to, or otherwise
        derogatory about Executive. However, these non-disparagement obligations do not limit the ability of Iradimed’s Board of Directors, executive officers, or human resources personnel to communicate truthfully with any governmental agency, whether
        such communication is initiated by Iradimed, a member of Iradimed’s Board of Directors, an executive officer of Iradimed, Iradimed’s human resources personnel, or in response to the government.

    C.            Upon inquiry by any potential employer of Executive, Iradimed will provide a neutral reference confirming dates of employment and last position held.

    11.            Continuing Obligations

    A.            Reaffirmation. Executive, as a condition of this Agreement, acknowledges, adopts and reaffirms an agreement to be bound by the Non-Solicitation, Non-Compete and
        Confidentiality Agreement dated July 24, 2019 and attached hereto as Exhibit A (the “Restrictive Covenant Agreement”). The Restrictive Covenant Agreement
        is incorporated into this Agreement, and Executive agrees to be bound by its terms in their entirety, including, but not limited to, the following material provisions:

    
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    (i)            Confidentiality. As a result of employment with Company, Executive has access to confidential material and information belonging to the company including,
        without limitation, client lists, pricing information, procedure manuals, employee records, client records, sales and marketing techniques, computer programs, the identity of specialized consultants and contractors, and management strategies. This
        confidential information was acquired or developed by the Company at considerable expense. It is therefore, a unique and valuable asset of the Company and its remaining confidential is of extreme importance to Company. Executive acknowledges the
        importance of any confidential information made available to or acquired by Executive in the course of employment hereunder to any person, firm, corporation, association or other entity for any reason or purpose.

    (ii)            Non-Solicitation. Executive agrees that she will not, for a period of one (1) year after termination of employment, directly or indirectly, for herself
        or on behalf of any other person or entity, solicit, interfere with, or otherwise endeavor to entice away from the Company any employee, consultant, agent or distributor of the Company or its affiliates.

    12.            Return of Company Property. On or before the Separation Date, Executive shall return to Iradimed all
        property of Iradimed, including, but not limited to, all files, client and prospective client lists, management reports, drawings, memoranda, forms, financial data and reports, and all other documents obtained or created by Executive in connection
        with Executive’s employment with Iradimed (including all copies of the foregoing, and including all notes, records and other materials of or relating to Iradimed or its customers), all computers, laptops, monitors, docking stations, keyboards,
        external hard drives, televisions, handheld devices, cradles, printers and other electronic or computer devices or accessories in Executive’s possession or control, and all of the equipment and other materials in Executive’s possession or under
        Executive’s control (including but not limited to any credit cards, telephones, office equipment, software or similar items), and any and all other proprietary data or objects acquired through Executive’s employment with Iradimed. Executive
        acknowledges and agrees that all documents, data, e-mails or other communications or information whether residing on Iradimed’s systems, servers or computers or otherwise, or which Executive created or received on behalf of Iradimed, are Iradimed’s
        property, and that Executive has not and shall not take, copy, destroy, delete or in any way negatively affect or compromise any such document, data, e-mail or other communication or information.

    13.            Notice of Immunity Under the Defend Trade Secrets Act of 2016 (“DTSA”). Notwithstanding any other
        provision of this Agreement: Executive will not be held criminally or civilly liable under any federal or state trade secret law for any disclosure of a trade secret that is made: (1) in confidence to a federal, state, or local government official,
        either directly or indirectly, or to an attorney, and solely for the purpose of reporting or investigating a suspected violation of law; or (2) in a complaint or other document that is filed under seal in a lawsuit or other proceeding. If Executive
        files a lawsuit for retaliation by Iradimed for reporting a suspected violation of law, Executive may disclose Iradimed’s trade secrets to Executive’s attorney and use the trade secret information in the court proceeding if Executive: (1) files any
        document containing the trade secret under seal; and (2) does not disclose the trade secret, except pursuant to court order.

    14.            Injunctive Relief. Executive understands and acknowledges that a breach of Executive’s covenants and
        agreements contained in the Restrictive Covenant Agreement and reaffirmed in Sections 11 and 12 would cause irreparable harm to Iradimed, the exact amount of

    
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    which would be difficult to determine, and that the remedies at law for any such breach would be inadequate. Accordingly, Executive agrees that, in addition to any other remedy
      that may be available at law, in equity, or hereunder, Iradimed shall be entitled to specific performance and injunctive relief, without posting bond or other security, to enforce or prevent any violation of such covenants and agreements. In any
      action for injunctive relief, the prevailing party will be entitled to collect reasonable attorneys’ fees and other reasonable costs from the non-prevailing party.

    15.            Severability; Reformation. If any Section or Subsection of this Agreement is held to be
        unenforceable, each and all of the other Sections and Subsections of this Agreement shall remain in full force and effect. In the event that any of the restrictive covenants set forth in this Agreement or the Restrictive Covenant Agreement is found
        by a court of competent jurisdiction to be overly broad or otherwise unenforceable as written, the Parties request the court to modify or reform any such covenant to allow it to be enforced to the maximum extent permitted by law and to enforce the
        covenant as so modified or reformed. If, however, any provision contained in Severance Benefits Section or General Release Section of this Agreement shall be determined to be void or unenforceable by a court of law, administrative agency, or
        tribunal of competent jurisdiction, the entire Agreement shall be unenforceable, as the Parties recognize and acknowledge that the duties, rights, and obligations set forth in the Severance Benefits Section and General Release Section of this
        Agreement are essential to the Agreement.

    16.            Modification or Amendment. Subject to Section 15, no Section of this Agreement may be changed,
        altered, modified, or amended, except in writing signed by Executive and a duly authorized representative of Iradimed, which writing shall specifically reference this Agreement and the Section that the Parties intend to change, alter, modify, or
        amend.

    17.            Entire Agreement. Executive and Iradimed acknowledge and agree that this Agreement constitutes a
        full, final, and complete understanding and agreement between the Parties and supersedes and replaces any and all other written or oral exchanges, agreements, understandings, arrangements, or negotiations between them relating to Executive’s
        separation from Iradimed, with the exception of the Restrictive Covenant Agreement, the Iradimed Restricted Stock Unit Agreement and the Option Agreement that have been expressly reaffirmed and incorporated into this Agreement. The Parties
        affirmatively state that there are no other prior or contemporaneous agreements, exchanges, representations, arrangements, or understandings, written or oral, between them relating to the subject matter hereof other than that as set forth herein,
        and that this Agreement contains the sole and entire agreement between them with respect to the subject matter hereof, except with the inclusion of the Restrictive Covenant Agreement that has been expressly reaffirmed and incorporated into this
        Agreement. Executive and Iradimed further acknowledge and agree that language proposed for, deleted from, or otherwise changed in any drafts of this Agreement but not included herein shall not in any way affect the rights and obligations of the
        Parties. For the avoidance of doubt, Executive reaffirms and incorporates the terms of the Restrictive Covenant Agreement, as applicable, as material terms of this Agreement.

    18.            Construction. The terms of this Agreement have resulted from the negotiations of the Parties and each
        of the Parties has had an opportunity to obtain and consult with their own counsel. The language of all parts of this Agreement shall in all cases be construed as a whole, according to its fair meaning, and not strictly for or against either of the
        Parties. No Party shall be deemed to be the drafter of this Agreement; all Parties collectively shall be deemed to have drafted

    
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    it; and it shall be construed without regard to rules of construction that might otherwise apply against a drafter. Unless the context indicates otherwise, the singular or plural
      number shall be deemed to include the other.

    19.            Counterparts. This Agreement may be executed by facsimile or email and in any number of counterparts,
        each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. In any such case, the Party exchanging by facsimile or PDF shall promptly thereafter upon request provide a signed original
        counterpart hereof to the other party; provided, that the non-delivery of such a signed counterpart shall not affect the validity or enforceability hereof.

    20.            Notices. All notices and all other
        communications that are required to be given under this Agreement must be in writing and shall be deemed to have been duly given when: (i) personally delivered, (ii) mailed by United States registered or certified mail postage prepaid, (iii) sent
        via a nationally recognized overnight courier service, (iv) sent via facsimile to the recipient, or (v) sent via email to the recipient, in each case as follows:

     
      	
              
                
                  
                    If to Iradimed: 

                    

                  

                

              

            	
              Iradimed Corporation

              
                Roger Susi, Chairman of the Board

                1025 Willa Springs Dr.

                Winter Springs, FL 32708

              

            
	 	 
	
              
                
                  
                    If to Executive:

                  

                

              

            	Leslie McDonnell

    

    

    or such other address or addresses as either party hereto shall have designated by notice in writing to the other party.

    21.            Headings and Captions. The headings and captions used in this Agreement are for convenience of
        reference only, and shall in no way define, limit, expand, or otherwise affect the meaning or construction of any provision of this Agreement.

    22.            Waiver. The waiver by any party to this Agreement of a breach of any of the Sections or Subsections
        of this Agreement shall not operate or be construed as a waiver of any subsequent or simultaneous breach.

    23.            Voluntary Assent. Executive understands that Executive may be waiving significant legal rights by
        signing this Agreement, and Executive represents and agrees that Executive has entered into this Agreement freely and voluntarily, without any coercion or duress, and with a full understanding of and in agreement with all of its terms after having
        carefully read this entire Agreement.

    24.            Execution of Agreement: Executive acknowledges and agrees that in deciding to execute this Agreement:
        (a) Executive relied entirely on Executive’s own judgment and that of any legal counsel; (b) no facts, evidence, event or transaction currently unknown to Executive, but which may hereinafter become known, shall affect in any way or manner the
        final, unconditional

    
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    nature of this Agreement; (c) the execution of this Agreement is a completely knowing and voluntary act; (d) Executive understand the terms of this Agreement; (e) Executive has
      been advised to consult with legal counsel and has been provided with time to consult with legal counsel prior to the execution of this Agreement; (f) all promises made to Executive in connection with this Agreement or as inducement to sign same
      expressly are set forth in full in the other Sections of this Agreement.

    25.            Choice of Law and Jurisdiction. This Agreement shall be
        deemed to be made and entered into in the State of Florida, and shall in all respects be interpreted, enforced, and governed under the laws of Florida, without giving effect to the conflict of laws principles of Florida law. The Parties expressly
        consent to the exclusive jurisdiction and venue of the United States District Court for the Middle District of Florida, or, if that Court refuses jurisdiction or deems venue to be improper, in any Court of competent jurisdiction in Seminole County,
        Florida. The Parties expressly waive any claims or defenses of forum non conveniens to jurisdiction and venue in Seminole County, Florida.

    26.            Code § 409A.  This Agreement is intended to comply
        with § 409A of the Internal Revenue Code, as amended, and applicable regulatory guidance thereunder (the “Code”), or an exemption thereunder and shall be construed and administered in accordance with Code § 409A.  Notwithstanding any other
        provision of this Agreement, payments provided under this Agreement may only be made upon an event and in a manner that complies with Code § 409A or an applicable exemption. Any payments under this Agreement that may be excluded from Code § 409A
        either as separation pay due to an involuntary separation from service or as a short-term deferral shall be excluded from Code § 409A to the maximum extent possible. For purposes of Code § 409A, each installment payment provided under this
        Agreement shall be treated as a separate payment.

    EMPLOYEE ACKNOWLEDGES AND AGREES THAT EMPLOYEE HAS READ AND FULLY UNDERSTANDS THE CONTENTS AND THE EFFECT OF THIS AGREEMENT. EMPLOYEE
      REPRESENTS AND WARRANTS THAT EMPLOYEE HAS HAD A REASONABLE OPPORTUNITY TO SEEK THE ADVICE OF AN ATTORNEY PURSUANT TO SECTION 5 OF THIS AGREEMENT. EMPLOYEE ACCEPTS EACH AND EVERY TERM, SECTION, SUBSECTION, AND CONDITION OF THIS AGREEMENT, AND DOES SO
      VOLUNTARILY AND WITH FULL KNOWLEDGE AND UNDERSTANDING OF ITS CONTENTS, NATURE, AND EFFECT.

    

    

    

    

    REMAINDER LEFT INTENTIONALLY BLANK

    
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    WHEREFORE, the Parties enter into this Agreement and, by so signing, represent and warrant that they
      have the authority to sign on behalf of the person or entity for whom they are signing.

     

    

    
      	 	EXECUTIVE
	 	 
	
               

            	/s/Leslie McDonnell                             

            
	
               

            	Leslie McDonnell  

      

      

      	 	Date: June 15, 2020                              

      

      

      

      

      

      

      	 	IRADIMED CORPORATION

      

      

      	

            	By: /s/Roger Susi                                   
	 	 
	 	Title: President                                      

              
	 	 
	 	Date: June 16, 2020                              

            

    

     

    

    

  

  12

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