Document:

Exhibit 10.1

 

SEPARATION AGREEMENT AND RELEASE

 

This Separation Agreement and Release (“Agreement”) is made by and between Philip Sawyer (“Employee”) and Invuity, Inc. (the “Company”) (collectively referred to as the “Parties” or individually referred to as a “Party”).

 

RECITALS

 

WHEREAS, Employee was employed by the Company and served as a member of its Board of Directors (the “Board”);

 

WHEREAS, Employee signed an Executive Employment Agreement with the Company on May 10, 2016 (the “Employment Agreement”);

 

WHEREAS, Employee signed an Executive Severance Agreement with the Company on May 10, 2016 (the “Severance Agreement”);

 

WHEREAS, Employee signed an Executive Change of Control Agreement with the Company on May 10, 2016 (the “Change of Control Agreement”);

 

WHEREAS, Employee signed a Proprietary Information and Inventions Agreement with the Company on February 19, 2010 (the “Confidentiality Agreement”);

 

WHEREAS, the Company granted Employee the following stock options to purchase shares of the Company’s common stock (the “Options”) and restricted stock unit awards covering shares of the Company’s common stock (the “RSUs,” and collectively with the Options, the “Equity Awards”) pursuant to the terms and conditions of the applicable Company equity plan set forth below and an award agreement thereunder (the “Stock Agreements”):

 

	
Equity
   Plan
    	
 
    	
Type of
   Award
    	
 
    	
Grant Date
    	
 
    	
Shares
   Subject
   to
   Award
   on
   Grant
   Date
    	
 
    	
Exercise
   Price Per
   Share
    	
 
    	
Shares
   Exercised or
   Settled Prior
   to
   Employment
   Termination
   Date
    	
 
    	
Vested
   Shares
   Subject to
   Award on
   Employment
   Termination
   Date
   Without
   Acceleration
    	
 
    	
Unvested
   Shares
   Subject to
   Award on
   Employment
   Termination
   Date
   Without
   Acceleration
    	
 
    	
Shares
   Accelerating
   on Effective
   Date
    	
 
    	
Total Vested
   Shares Subject
   to Award on
   Effective Date
    	
 
    	
Total Unvested Shares
   Subject to Award on
   Effective Date
    	
 
    
	
2005   Stock Incentive Plan
    	
 
    	
Option
    	
 
    	
03/17/2010
    	
 
    	
94,444
    	
 
    	
$
    	
1.30
    	
 
    	
17,224
    	
 
    	
77,220
    	
 
    	
—
    	
 
    	
—
    	
 
    	
77,220
    	
 
    	
—
    	
 
    
	
2005   Stock Incentive Plan
    	
 
    	
Option
    	
 
    	
11/17/2010
    	
 
    	
114,360
    	
 
    	
$
    	
1.30
    	
 
    	
36,776
    	
 
    	
77,584
    	
 
    	
—
    	
 
    	
—
    	
 
    	
77,584
    	
 
    	
—
    	
 
    
	
2005   Stock Incentive Plan
    	
 
    	
Option
    	
 
    	
01/18/2012
    	
 
    	
9,944
    	
 
    	
$
    	
1.67
    	
 
    	
 
    	
 
    	
9,944
    	
 
    	
—
    	
 
    	
—
    	
 
    	
9,944
    	
 
    	
—
    	
 
    
	
2005   Stock Incentive Plan
    	
 
    	
Option
    	
 
    	
03/05/2014
    	
 
    	
23,597
    	
 
    	
$
    	
3.15
    	
 
    	
 
    	
 
    	
23,597
    	
 
    	
—
    	
 
    	
—
    	
 
    	
23,597
    	
 
    	
—
    	
 
    

 

 

	
2005   Stock Incentive Plan
    	
 
    	
Option
    	
 
    	
03/05/2014
    	
 
    	
94,317
    	
 
    	
$
    	
3.15
    	
 
    	
 
    	
 
    	
92,357
    	
 
    	
1,965
    	
 
    	
983
    	
 
    	
93,340
    	
 
    	
983
    	
 
    
	
2005   Stock Incentive Plan
    	
 
    	
Option
    	
 
    	
04/30/2014
    	
 
    	
17,347
    	
 
    	
$
    	
3.15
    	
 
    	
 
    	
 
    	
17,347
    	
 
    	
—
    	
 
    	
—
    	
 
    	
17,347
    	
 
    	
—
    	
 
    
	
2005   Stock Incentive Plan
    	
 
    	
Option
    	
 
    	
04/30/2014
    	
 
    	
112,853
    	
 
    	
$
    	
3.15
    	
 
    	
 
    	
 
    	
112,853
    	
 
    	
—
    	
 
    	
—
    	
 
    	
112,853
    	
 
    	
—
    	
 
    
	
2005   Stock Incentive Plan
    	
 
    	
Option
    	
 
    	
04/16/2015
    	
 
    	
125,440
    	
 
    	
$
    	
11.10
    	
 
    	
 
    	
 
    	
75,264
    	
 
    	
50,176
    	
 
    	
25,088
    	
 
    	
100,352
    	
 
    	
25,088
    	
 
    
	
2015   Equity Incentive Plan
    	
 
    	
Option
    	
 
    	
02/16/2016
    	
 
    	
100,000
    	
 
    	
$
    	
7.45
    	
 
    	
 
    	
 
    	
40,000
    	
 
    	
60,000
    	
 
    	
30,000
    	
 
    	
70,000
    	
 
    	
30,000
    	
 
    
	
2015   Equity Incentive Plan
    	
 
    	
RSUs
    	
 
    	
02/16/2016
    	
 
    	
50,000
    	
 
    	
N/A
    	
 
    	
20,000
    	
 
    	
—
    	
 
    	
30,000
    	
 
    	
15,000
    	
 
    	
15,000
    	
 
    	
15,000
    	
 
    
	
2015   Equity Incentive Plan
    	
 
    	
Option
    	
 
    	
01/17/2017
    	
 
    	
85,000
    	
 
    	
$
    	
6.50
    	
 
    	
 
    	
 
    	
—
    	
 
    	
85,000
    	
 
    	
42,500
    	
 
    	
42,500
    	
 
    	
42,500
    	
 
    
	
2015   Equity Incentive Plan
    	
 
    	
Option
    	
 
    	
01/17/2017
    	
 
    	
85,000
    	
 
    	
$
    	
6.50
    	
 
    	
 
    	
 
    	
23,021
    	
 
    	
61,979
    	
 
    	
30,990
    	
 
    	
54,011
    	
 
    	
30,989
    	
 
    

 

WHEREAS, Employee voluntarily separated from employment with the Company and resigned from the Board effective February 28, 2018 (the “Employment Termination Date”); and

 

WHEREAS, the Parties wish to resolve any and all disputes, claims, complaints, grievances, charges, actions, petitions, and demands that the Employee may have against the Company and any of the Releasees as defined below, including, but not limited to, any and all claims arising out of or in any way related to Employee’s employment with or separation from the Company.

 

NOW, THEREFORE, in consideration of the mutual promises made herein, the Company and Employee hereby agree as follows:

 

COVENANTS

 

1.                                      Consideration.

 

a.                                      Continuing Payments.  Subject to the provisions of this Section 1(a) and Section 15, the Company agrees to pay Employee a total of four hundred and ninety thousand dollars ($490,000.00), less applicable withholdings, until February 28, 2019 (the “Severance Period”), starting from the first regular payroll date following the Effective Date, in accordance with the Company’s regular payroll practices. Any payments that Employee would have received from 

 

 

the Employment Termination Date through the Effective Date will be included in the first payment made to the Employee following the Effective Date and pursuant to this Section.  Without limiting the  Company’s rights or remedies in any way, Employee’s right to receive the severance payments under this Section 1(a) is conditioned on Employee complying with the terms and conditions of this Agreement and the Confidentiality Agreement.

 

b.                                      Lump Sum Payment.  The Company agrees to pay Employee a lump sum payment of three hundred and fifty thousand dollars ($350,000.00), less applicable withholdings, on the first regular payroll date following the Effective Date, in accordance with the Company’s regular payroll practices.

 

c.                                       COBRA.  Following the Effective Date, if Executive elects continuation coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”) within the time period prescribed pursuant to COBRA for Executive and Executive’s eligible dependents, then the Company will reimburse Executive for the COBRA premiums for such coverage (at the coverage levels in effect immediately prior to the Employment Termination Date until the earlier of (i) February 28, 2019 or (ii) the date upon which Executive and/or Executive’s eligible dependents are no longer eligible for COBRA continuation coverage (the “COBRA Reimbursements”). The COBRA Reimbursements will be made by the Company to the Executive consistent with the Company’s normal expense reimbursement policy, provided that Executive submits documentation to the Company substantiating Executive’s payments for COBRA coverage. Notwithstanding the preceding, if the Company determines in its sole discretion that it cannot provide the COBRA Reimbursements without potentially violating applicable law (including, without limitation, Section 2716 of the Public Health Service Act), the Company will instead provide Executive a taxable payment in an amount equal to the monthly COBRA premium that Executive would be required to pay to continue Executive’s and Executive’s eligible dependents’ group health coverage in effect on the Employment Termination Date (which amount will be based on the premium for the first month of COBRA coverage), which payments will be made regardless of whether Executive elects COBRA continuation coverage and will commence in the month following the Effective Date and continue for the period of time indicated in this section.

 

d.                                      Equity Award Vesting Acceleration.  On the Effective Date, fifty percent (50%) of the unvested shares of Company common stock subject to all outstanding Equity Awards will accelerate and fully vest (provided that, with respect to Equity Awards with performance-based vesting, fifty percent (50%) of the unvested shares will vest based on deemed achievement of performance goals or other vesting criteria at one hundred percent (100%) of target levels).

 

e.                                       Extension of Option Post-Service Exercisability Period.  On the Effective Date, the post-service exercisability period of the Options is hereby extended, such that each Option, to the extent vested and exercisable as of the Termination Date (including the vesting acceleration provided by Section 1(d)), will be exercisable until the earlier of (i) May 31, 2019, or (ii) the applicable Option’s expiration date, as set forth in the applicable stock option agreement, unless otherwise earlier terminated in accordance with any other terms of the Stock Agreements.  Employee acknowledges and agrees that this extension of the Options’ post-service exercisability periods is a “modification” of each Option for purposes of each Option’s qualification as an incentive stock option (“ISO”) under Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”).  Employee acknowledges and agrees that, to the extent any Option or

 

 

portion thereof is considered an ISO, the extension of the post-service exercisability period with respect to such Options will (i) cause the ISO holding periods for each such Option to be reset as of the Effective Date, meaning the Employee will be required to hold the shares subject to the Option for two (2) years following the Effective Date and one (1) year from the date of exercise in order to receive preferential ISO tax treatment with respect to the Option, and (ii) with respect to any Option with a per share exercise price less than the current fair market value of a share of the Company’s common stock, cause the Option to cease to be an ISO and instead be treated as a nonstatutory stock option (“NSO”) as of the Effective Date, which will be subject to all applicable tax withholdings upon exercise. Employee is advised to consult with Employee’s tax or other applicable adviser with respect to the tax consequences of this Agreement amending the terms of the Options and the tax consequences to the Employee of Employee’s exercise of the Options and disposition of any shares acquired upon such exercise.  Employee acknowledges and agrees that Employee remains solely responsible for all employee-related taxes associated with the exercise of the Options.

 

f.                                        Resignation.  Employee agrees and acknowledges that he has resigned from all officer and director positions with the Company, its subsidiaries, and affiliates and agrees to assist the Company to effectuate such resignations, including executing any documents the Company may reasonably request.  The Company shall process the termination of Employee’s employment as a resignation, and shall represent that Employee resigned from Employee’s employment to any potential future employer who contacts the Company’s human resources department and requests confirmation of this information.

 

g.                                       Acknowledgement. Except as explicitly set forth in this Agreement, Employee acknowledges and agrees that Employee is not entitled to receive any severance compensation or benefits from the Company pursuant to any other agreement including, but not limited to, the Employment Agreement, the Severance Agreement, or the Change of Control Agreement. Employee hereby waives Employee’s right to receive any such severance not explicitly set forth in this Agreement and acknowledges that without this Agreement, Employee is not otherwise entitled to the consideration listed in this Section 1.

 

2.                                      Equity Awards.  The Parties agree that for purposes of determining the number of shares of the Company’s common stock that Employee is entitled to purchase or receive from the Company pursuant to the exercise or settlement (as applicable) of outstanding Equity Awards, Employee will be considered to have vested only up to the Employment Termination Date.  All unvested shares subject to outstanding Equity Awards as of the Employment Termination Date will terminate on the Employment Termination Date (excluding, for avoidance of doubt, any vesting acceleration set forth under Section 1(d)).  Other than as set forth in Sections 1(d) and 1(e) of this Agreement, the Equity Awards shall continue to be governed by the terms and conditions of the Stock Agreements.

 

3.                                      Benefits.  Employee’s health insurance benefits shall cease on February 28, 2018, subject to Employee’s right to continue Employee’s health insurance under COBRA. Employee’s participation in all benefits and incidents of employment, including, but not limited to, the accrual of bonuses, vacation, and paid time off, ceased as of the Employment Termination Date.

 

4.                                      Payment of Salary and Receipt of All Benefits.  Employee acknowledges and represents that, other than the consideration set forth in this Agreement, the Company has paid or

 

 

provided all salary, wages, bonuses, accrued vacation/paid time off, premiums, leaves, housing allowances, relocation costs, interest, severance, outplacement costs, fees, reimbursable expenses, commissions, stock, stock options and other equity awards, vesting, and any and all other benefits and compensation due to Employee.

 

5.                                      Release of Claims.  Employee agrees that the foregoing consideration represents settlement in full of all outstanding obligations owed to Employee by the Company and its current and former officers, directors, employees, agents, investors, attorneys, shareholders, administrators, affiliates, benefit plans, plan administrators, professional employer organization or co-employer, insurers, trustees, divisions, subsidiaries, predecessor and successor corporations, and assigns, (collectively, the “Releasees”). Employee, on Employee’s own behalf and on behalf of Employee’s respective heirs, family members, executors, agents, and assigns, hereby and forever releases the Releasees from, and agrees not to sue concerning, or in any manner to institute, prosecute, or pursue, any claim, complaint, charge, duty, obligation, demand, or cause of action relating to any matters of any kind, whether presently known or unknown, suspected or unsuspected, that Employee may possess against any of the Releasees arising from any omissions, acts, facts, or damages that have occurred up until and including the Effective Date of this Agreement, including, without limitation:

 

a.                                      any and all claims relating to or arising from Employee’s employment relationship with the Company and the termination of that relationship;

 

b.                                      any and all claims relating to, or arising from, Employee’s right to purchase, or actual purchase of shares of stock of the Company, including, without limitation, any claims for fraud, misrepresentation, breach of fiduciary duty, breach of duty under applicable state corporate law, and securities fraud under any state or federal law;

 

c.                                       any and all claims for wrongful discharge of employment, termination in violation of public policy, discrimination, harassment, retaliation, breach of contract (both express and implied), breach of covenant of good faith and fair dealing (both express and implied), promissory estoppel, negligent or intentional infliction of emotional distress, fraud, negligent or intentional misrepresentation, negligent or intentional interference with contract or prospective economic advantage, unfair business practices, defamation, libel, slander, negligence, personal injury, assault, battery, invasion of privacy, false imprisonment, conversion, and disability benefits;

 

d.                                      any and all claims for violation of any federal, state, or municipal statute, including, but not limited to, Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the Equal Pay Act, the Fair Labor Standards Act, the Fair Credit Reporting Act, the Age Discrimination in Employment Act of 1967, the Older Workers Benefit Protection Act, the Employee Retirement Income Security Act of 1974, the Worker Adjustment and Retraining Notification Act, the Family and Medical Leave Act, the Immigration Reform and Control Act, the California Family Rights Act, the California Labor Code, the California Workers’ Compensation Act, and the California Fair Employment and Housing Act;

 

e.                                       any and all claims for violation of the federal or any state constitution;

 

 

f.                                        any and all claims arising out of any other laws and regulations relating to employment or employment discrimination;

 

g.                                       any claim for any loss, cost, damage, or expense arising out of any dispute over the nonwithholding or other tax treatment of any of the proceeds received by Employee as a result of this Agreement; and

 

h.                                      any and all claims for attorneys’ fees and costs.

 

Employee agrees that the release set forth in this Section shall be and remain in effect in all respects as a complete general release as to the matters released. This release does not extend to any obligations incurred under this Agreement. This release does not release claims that cannot be released as a matter of law, including, but not necessarily limited to, any Protected Activity (as defined below). Any and all disputed wage claims that are released herein shall be subject to binding arbitration in accordance with Section 19, except as required by applicable law. This release does not extend to any right Employee may have to unemployment compensation benefits.

 

6.                                      Company’s Release of Claims.  The Company agrees that the foregoing consideration represents settlement in full of all outstanding obligations owed to the Company by the Employee. The Company hereby and forever releases the Employee and his respective heirs, family members, executors, agents, and assigns, from, and agrees not to sue concerning, or in any manner to institute, prosecute, or pursue, any claim, complaint, charge, duty, obligation, demand, or cause of action relating to any matters of any kind, whether presently known or unknown, suspected or unsuspected, that the Company may possess against the Employee arising from any omissions, acts, facts, or damages that have occurred up until and including the Effective Date of this Agreement. Notwithstanding any release provided for herein, this Agreement shall not serve to release any claims by the Company against Employee for any claims relating to fraud, embezzlement, misappropriation of the Company’s trade secrets, or conduct that is in violation of criminal law.

 

7.                                      Acknowledgment of Waiver of Claims under ADEA. Employee acknowledges that Employee is waiving and releasing any rights Employee may have under the Age Discrimination in Employment Act of 1967 “(“ADEA”), and that this waiver and release is knowing and voluntary. Employee agrees that this waiver and release does not apply to any rights or claims that may arise under the ADEA after the Effective Date of this Agreement. Employee acknowledges that the consideration given for this waiver and release is in addition to anything of value to which Employee was already entitled. Employee further acknowledges that Employee has been advised by this writing that: (a) Employee should consult with an attorney prior to executing this Agreement; (b) Employee has twenty-one (21) days within which to consider this Agreement; (c) Employee has seven (7) days following Employee’s execution of this Agreement to revoke this Agreement; (d) this Agreement shall not be effective until after the revocation period has expired; and (e) nothing in this Agreement prevents or precludes Employee from challenging or seeking a determination in good faith of the validity of this waiver under the ADEA, nor does it impose any condition precedent, penalties, or costs for doing so, unless specifically authorized by federal law. In the event Employee signs this Agreement and returns it to the Company in less than the 21-day period identified above, Employee hereby acknowledges that Employee has freely and voluntarily chosen to waive the time period allotted for considering this Agreement. Employee acknowledges and understands that

 

 

revocation must be accomplished by a written notification to the person executing this Agreement on the Company’s behalf that is received prior to the Effective Date. The Parties agree that changes, whether material or immaterial, do not restart the running of the 21-day period.

 

8.                                      California Civil Code Section 1542.  Employee acknowledges that Employee has been advised to consult with legal counsel and is familiar with the provisions of California Civil Code Section 1542, a statute that otherwise prohibits the release of unknown claims, which provides as follows:

 

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.

 

Employee, being aware of said code section, agrees to expressly waive any rights Employee may have thereunder, as well as under any other statute or common law principles of similar effect.

 

9.                                      No Pending or Future Lawsuits; Cooperation.  Employee represents that Employee has no lawsuits, claims, or actions pending in Employee’s name, or on behalf of any other person or entity, against the Company or any of the other Releasees. Employee also represents that Employee does not intend to bring any claims on Employee’s own behalf or on behalf of any other person or entity against the Company or any of the other Releasees.  In addition, Employee acknowledges that Employee’s assistance may be required regarding certain ongoing dispute resolution and corporate matters of Company.  To that end, Employee will execute, verify and deliver such documents and perform such other acts (including appearances as a witness) as the Company may reasonably request.  Employee’s obligation to assist the Company under this Section shall continue beyond the Termination Date.

 

10.                               Confidentiality.  Subject to Section 13 governing Protected Activity, Employee agrees to maintain in complete confidence the existence of this Agreement, the contents and terms of this Agreement, and the consideration for this Agreement (hereinafter collectively referred to as “Separation Information”). Except as required by law, Employee may disclose Separation Information only to Employee’s immediate family members, the Court in any proceedings to enforce the terms of this Agreement, Employee’s attorney(s), and Employee’s accountant(s) and any professional tax advisor(s) to the extent that they need to know the Separation Information in order to provide advice on tax treatment or to prepare tax returns, and must prevent disclosure of any Separation Information to all other third parties. Employee agrees that Employee will not publicize, directly or indirectly, any Separation Information.

 

11.                               Trade Secrets and Confidential Information/Company Property.  Employee reaffirms and agrees to observe and abide by the terms of the Confidentiality Agreement, specifically including the provisions therein regarding nondisclosure of the Company’s trade secrets and confidential and proprietary information, and nonsolicitation of Company employees. Employee’s signature below constitutes Employee’s certification under penalty of perjury that Employee will return all documents and other items provided to Employee by the Company (with the exception of a copy of the Employee Handbook and personnel documents specifically relating to Employee),

 

 

developed or obtained by Employee in connection with Employee’s employment with the Company, or otherwise belonging to the Company by the Effective Date.  For avoidance of doubt, Employee shall be permitted to keep all artwork and antiques that are displayed in the Company’s offices that were purchased and are owned by Employee.  It is understood that much of the art and antique collection will be picked up by Employee at a later date.

 

12.                               No Cooperation.  Subject to Section 13 governing Protected Activity, Employee agrees that Employee will not knowingly encourage, counsel, or assist any attorneys or their clients in the presentation or prosecution of any disputes, differences, grievances, claims, charges, or complaints by any third party against any of the Releasees, unless under a subpoena or other court order to do so or as related directly to the ADEA waiver in this Agreement. Employee agrees both to immediately notify the Company upon receipt of any such subpoena or court order, and to furnish, within three (3) business days of its receipt, a copy of such subpoena or other court order. If approached by anyone for counsel or assistance in the presentation or prosecution of any disputes, differences, grievances, claims, charges, or complaints against any of the Releasees, Employee shall state no more than that Employee cannot provide counsel or assistance.

 

13.                               Protected Activity Not Prohibited.  Employee understands that nothing in this Agreement shall in any way limit or prohibit Employee from engaging in any Protected Activity, including filing a charge, complaint, or report with, or otherwise communicating, cooperating, or participating in any investigation or proceeding that may be conducted by, any federal, state or local government agency or commission, including the Securities and Exchange Commission, the Equal Employment Opportunity Commission, the Occupational Safety and Health Administration, and the National Labor Relations Board (“Government Agencies”). Employee understands that in connection with such Protected Activity, Employee is permitted to disclose documents or other information as permitted by law, without giving notice to, or receiving authorization from, the Company. Notwithstanding the foregoing, Employee agrees to take all reasonable precautions to prevent any unauthorized use or disclosure of any information that may constitute Company confidential information under the Confidentiality Agreement to any parties other than the Government Agencies. Employee further understands that “Protected Activity” does not include the disclosure of any Company attorney-client privileged communications or attorney work product. Any language in the Confidentiality Agreement regarding Employee’s right to engage in Protected Activity that conflicts with, or is contrary to, this Section is superseded by this Agreement. In addition, pursuant to the Defend Trade Secrets Act of 2016, Employee is notified that an individual will not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that (i) is made in confidence to a federal, state, or local government official (directly or indirectly) or to an attorney solely for the purpose of reporting or investigating a suspected violation of law, or (ii) is made in a complaint or other document filed in a lawsuit or other proceeding, if (and only if) such filing is made under seal. In addition, an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the individual’s attorney and use the trade secret information in the court proceeding, if the individual files any document containing the trade secret under seal and does not disclose the trade secret, except pursuant to court order.

 

14.                               Mutual Nondisparagement.  Employee agrees to refrain from any disparagement, defamation, libel, or slander of any of the Releasees, and agrees to refrain from any tortious interference with the contracts and relationships of any of the Releasees.  The Company agrees to

 

 

refrain from any disparagement, defamation, libel or slander of the Employee.  Employee understands that the Company’s obligations under this paragraph extend only to the Company’s current executive officers and members of the Board and only for so long as each officer or member is an executive or Board member, as applicable, of the Company.  Employee shall direct any inquiries by potential future employers to the Company’s human resources department.

 

15.                               Conditional Severance Payments.  Employee agrees that the severance payments set forth in Section 1(a) will only be made if during the Severance Period Employee does not, without the prior written consent of the Company, operate, manage, control, work or consult for or otherwise join, participate in or affiliate himself with, in each case at a management or key position level, any business whose business, products or operations are in any respect involved in the Covered Business (a “Competing Activity”).

 

Upon the date that Employee engages in a Competing Activity, all payments under Section 1(a) shall immediately cease and Employee will have no further rights to any such payments or other consideration in lieu thereof.  Should Employee obtain other employment or perform services for other entities during the period severance payments under Section 1(a) are being made to Employee, Employee agrees to provide written notification to the Company as to the name and address of Employee’s new employer or person or entity contracting for Employee’s services, the position that Employee expects to hold, and a general description of Employee’s duties and responsibilities, at least three (3) business days prior to starting such employment or service.

 

For purposes of this Agreement, “Covered Business” shall mean any direct business focused on surgical illumination, electrosurgery or fluorescence imaging operated or otherwise controlled by any of the entities listed in Schedule A, attached, or their subsidiaries or affiliates. The foregoing covenant shall cover Employee’s activities in every part of the Territory.

 

For purposes of this Agreement, “Territory” shall mean (i) all counties in the State of California; (ii) all other states of the United States of America in which the Company provided goods or services, had customers, or otherwise conducted business at any time during the two-year period prior to the date of the termination of this Agreement; and (iii) any other countries from which the Company maintains non-trivial operations or facilities, provided goods or services, had customers, or otherwise conducted business at any time during Employee’s employment with the Company.

 

16.                               Breach.  In addition to the rights provided in the “Attorneys’ Fees” section below, Employee acknowledges and agrees that any material breach of this Agreement, unless such breach constitutes a legal action by Employee challenging or seeking a determination in good faith of the validity of the waiver herein under the ADEA, or of any provision of the Confidentiality Agreement shall entitle the Company immediately to recover and/or cease providing the consideration provided to Employee under this Agreement and to obtain damages, except as provided by law.

 

17.                               No Admission of Liability.  Employee understands and acknowledges that this Agreement constitutes a compromise and settlement of any and all actual or potential disputed claims by Employee.  No action taken by the Company hereto, either previously or in connection with this Agreement, shall be deemed or construed to be (a) an admission of the truth or falsity of any actual or potential claims or (b) an acknowledgment or admission by the Company of any fault or liability whatsoever to Employee or to any third party.

 

 

18.                               Costs.  The Parties shall each bear their own costs, attorneys’ fees, and other fees incurred in connection with the preparation of this Agreement.

 

19.                               ARBITRATION.  EXCEPT AS PROHIBITED BY LAW, THE PARTIES AGREE THAT ANY AND ALL DISPUTES ARISING OUT OF THE TERMS OF THIS AGREEMENT, THEIR INTERPRETATION, EMPLOYEE’S EMPLOYMENT WITH THE COMPANY OR THE TERMS THEREOF, OR ANY OF THE MATTERS HEREIN RELEASED, SHALL BE SUBJECT TO ARBITRATION IN SAN FRANCISCO COUNTY, BEFORE JUDICIAL ARBITRATION & MEDIATION SERVICES (“JAMS”), PURSUANT TO ITS EMPLOYMENT ARBITRATION RULES & PROCEDURES (“JAMS RULES”). THE ARBITRATOR MAY GRANT INJUNCTIONS AND OTHER RELIEF IN SUCH DISPUTES. THE ARBITRATOR SHALL ADMINISTER AND CONDUCT ANY ARBITRATION IN ACCORDANCE WITH CALIFORNIA LAW, INCLUDING THE CALIFORNIA CODE OF CIVIL PROCEDURE, AND THE ARBITRATOR SHALL APPLY SUBSTANTIVE AND PROCEDURAL CALIFORNIA LAW TO ANY DISPUTE OR CLAIM, WITHOUT REFERENCE TO ANY CONFLICT-OF-LAW PROVISIONS OF ANY JURISDICTION. TO THE EXTENT THAT THE JAMS RULES CONFLICT WITH CALIFORNIA LAW, CALIFORNIA LAW SHALL TAKE PRECEDENCE. THE DECISION OF THE ARBITRATOR SHALL BE FINAL, CONCLUSIVE, AND BINDING ON THE PARTIES TO THE ARBITRATION. THE PARTIES AGREE THAT THE PREVAILING PARTY IN ANY ARBITRATION SHALL BE ENTITLED TO INJUNCTIVE RELIEF IN ANY COURT OF COMPETENT JURISDICTION TO ENFORCE THE ARBITRATION AWARD. THE PARTIES TO THE ARBITRATION SHALL EACH PAY AN EQUAL SHARE OF THE COSTS AND EXPENSES OF SUCH ARBITRATION, AND EACH PARTY SHALL SEPARATELY PAY FOR ITS RESPECTIVE COUNSEL FEES AND EXPENSES; PROVIDED, HOWEVER, THAT THE ARBITRATOR MAY AWARD ATTORNEYS’ FEES AND COSTS TO THE PREVAILING PARTY, EXCEPT AS PROHIBITED BY LAW. THE PARTIES HEREBY AGREE TO WAIVE THEIR RIGHT TO HAVE ANY DISPUTE BETWEEN THEM RESOLVED IN A COURT OF LAW BY A JUDGE OR JURY. NOTWITHSTANDING THE FOREGOING, THIS SECTION WILL NOT PREVENT EITHER PARTY FROM SEEKING INJUNCTIVE RELIEF (OR ANY OTHER PROVISIONAL REMEDY) FROM ANY COURT HAVING JURISDICTION OVER THE PARTIES AND THE SUBJECT MATTER OF THEIR DISPUTE RELATING TO THIS AGREEMENT AND THE AGREEMENTS INCORPORATED HEREIN BY REFERENCE. SHOULD ANY PART OF THE ARBITRATION AGREEMENT CONTAINED IN THIS SECTION CONFLICT WITH ANY OTHER ARBITRATION AGREEMENT BETWEEN THE PARTIES, THE PARTIES AGREE THAT THIS ARBITRATION AGREEMENT SHALL GOVERN.

 

20.                               Tax Consequences.  The Company makes no representations or warranties with respect to the tax consequences of the payments and any other consideration provided to Employee or made on Employee’s behalf under the terms of this Agreement. Employee agrees and understands that Employee is responsible for payment, if any, of local, state, and/or federal taxes on the payments and any other consideration provided hereunder by the Company and any penalties or assessments thereon. Employee further agrees to indemnify and hold the Releasees harmless from any claims, demands, deficiencies, penalties, interest, assessments, executions, judgments, or recoveries by any government agency against the Company for any amounts claimed due on account

 

 

of (a) Employee’s failure to pay or delayed payment of federal or state taxes, or (b) damages sustained by the Company by reason of any such claims, including attorneys’ fees and costs.

 

21.                               Section 409A.  It is intended that this Agreement comply with, or be exempt from, Code Section 409A and the final regulations and official guidance thereunder (“Section 409A”) and any ambiguities herein will be interpreted to so comply and/or be exempt from Section 409A. Each payment and benefit to be paid or provided under this Agreement is intended to constitute a series of separate payments for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations.  The Company and Employee will work together in good faith to consider either (i) amendments to this Agreement; or (ii) revisions to this Agreement with respect to the payment of any awards, which are necessary or appropriate to avoid imposition of any additional tax or income recognition prior to the actual payment to Employee under Section 409A. In no event will the Releasees reimburse Employee for any taxes that may be imposed on Employee as a result of Section 409A.

 

22.                               Authority.  The Company represents and warrants that the undersigned has the authority to act on behalf of the Company and to bind the Company and all who may claim through it to the terms and conditions of this Agreement. Employee represents and warrants that Employee has the capacity to act on Employee’s own behalf and on behalf of all who might claim through Employee to bind them to the terms and conditions of this Agreement. Each Party warrants and represents that there are no liens or claims of lien or assignments in law or equity or otherwise of or against any of the claims or causes of action released herein.

 

23.                               Severability.  In the event that any provision or any portion of any provision hereof or any surviving agreement made a part hereof becomes or is declared by a court of competent jurisdiction or arbitrator to be illegal, unenforceable, or void, this Agreement shall continue in full force and effect without said provision or portion of provision.

 

24.                               Attorneys’ Fees.  Except with regard to a legal action challenging or seeking a determination in good faith of the validity of the waiver herein under the ADEA, in the event that either Party brings an action to enforce or effect its rights under this Agreement, the prevailing Party shall be entitled to recover its costs and expenses, including the costs of mediation, arbitration, litigation, court fees, and reasonable attorneys’ fees incurred in connection with such an action.

 

25.                               Entire Agreement.  This Agreement represents the entire agreement and understanding between the Company and Employee concerning the subject matter of this Agreement and Employee’s employment with and separation from the Company and the events leading thereto and associated therewith, and supersedes and replaces any and all prior agreements and understandings concerning the subject matter of this Agreement and Employee’s relationship with the Company, with the exception of the Confidentiality Agreement and the Stock Agreements, except as otherwise modified or superseded herein.

 

26.                               No Oral Modification.  This Agreement may only be amended in a writing signed by Employee and the Company’s Chief Executive Officer or the Chairman of the Board.

 

27.                               Governing Law.  This Agreement shall be governed by the laws of the State of California, without regard for choice-of-law provisions. Employee consents to personal and exclusive jurisdiction and venue in the State of California.

 

 

28.                               Effective Date.  Employee understands that this Agreement shall be null and void if not executed by Employee within twenty-one (21) days. Each Party has seven (7) days after that Party signs this Agreement to revoke it. This Agreement will become effective on the eighth (8th) day after Employee signed this Agreement, so long as it has been signed by the Parties and has not been revoked by either Party before that date (the “Effective Date”).

 

29.                               Counterparts.  This Agreement may be executed in counterparts and each counterpart shall be deemed an original and all of which counterparts taken together shall have the same force and effect as an original and shall constitute an effective, binding agreement on the part of each of the undersigned.  The counterparts of this Agreement may be executed and delivered by facsimile, photo, email PDF, or other electronic transmission or signature.

 

30.                               Voluntary Execution of Agreement.  Employee understands and agrees that Employee executed this Agreement voluntarily, without any duress or undue influence on the part or behalf of the Company or any third party, with the full intent of releasing all of Employee’s claims against the Company and any of the other Releasees. Employee acknowledges that:

 

(a)                                 Employee has read this Agreement;

 

(b)                                 Employee has been represented in the preparation, negotiation, and execution of this Agreement by legal counsel of Employee’s own choice or has elected not to retain legal counsel;

 

(c)                                  Employee understands the terms and consequences of this Agreement and of the releases it contains;

 

(d)                                 Employee is fully aware of the legal and binding effect of this Agreement; and

 

(e)                                  Employee has not relied upon any representations or statements made by the Company that are not specifically set forth in this Agreement.

 

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK; SIGNATURE PAGE FOLLOWS]

 

 

IN WITNESS WHEREOF, the Parties have executed this Agreement on the respective dates set forth below.

 

	
 
    	
PHILIP SAWYER , an individual
    
	
 
    	
 
    
	
Dated: March 5, 2018
    	
/s/ Philip   Sawyer
    
	
 
    	
Philip Sawyer
    
	
 
    	
 
    
	
 
    	
INVUITY, INC.
    
	
 
    	
 
    
	
Dated: March 5, 2018
    	
By
    	
/s/ Marcia   Fish
    
	
 
    	
 
    	
Marcia Fish
    
	
 
    	
 
    	
Chief Human Resources Officer
    

 

 

SCHEDULE A

 

	
1.
    	
 
    	
Medtronic Public Limited Company
    
	
2.
    	
 
    	
Black and Black Surgical Inc.
    
	
3.
    	
 
    	
OBP Medical Inc.
    
	
4.
    	
 
    	
Cura Surgical Inc.
    
	
5.
    	
 
    	
Hamamatsu Corporation
    
	
6.
    	
 
    	
Stryker Corporation
    
	
7.
    	
 
    	
Visionsense Corp.
    
	
8.
    	
 
    	
Bovie Medical Corporation
    
	
9.
    	
 
    	
PARE Surgical, Inc.
    
	
10.
    	
 
    	
Vue Medical Technologies Inc.
    
	
11.
    	
 
    	
Limitex AS
    
	
12.
    	
 
    	
Engineered Medical Solutions Co. LLC / Scintillant
    
	
13.
    	
 
    	
TeDan Surgical Innovations, LLC
    
	
14.
    	
 
    	
Kent Imaging
    
	
15.
    	
 
    	
Megadyne Group / Medadyne
    
	
16.
    	
 
    	
Johnson and JohnsonExhibit 10.2

 

INVUITY, INC.

EXECUTIVE EMPLOYMENT AGREEMENT

 

This Employment Agreement (the “Agreement”) is entered into by and between Invuity, Inc. (the “Company”), and Scott Flora (“Executive”) as of the date the Company and Executive have each executed this Agreement, as set forth below.  The terms of this Agreement will become effective on March 1, 2018 (the “Effective Date”).

 

1.                                      Duties and Scope of Employment.

 

(a)                                 Positions and Duties.  As of the Effective Date, Executive will serve as the Company’s interim President and Chief Executive Officer (the “Interim CEO”).  During the time Executive is serving as the Interim CEO, he may hold himself out to the public as the “CEO” of the Company.  Executive will render such business and professional services in the performance of Executive’s duties, consistent with Executive’s position within the Company, as will reasonably be assigned to him by the Company’s Board of Directors (the “Board”).  Executive will also continue to serve as a member of the Board.  The period of Executive’s employment under this Agreement is referred to herein as the “Employment Term.”

 

(b)                                 Obligations.  During the Employment Term, Executive will perform his duties faithfully and to the best of his ability and will devote his full business efforts and time to the Company.  For the duration of the Employment Term, Executive agrees not to actively engage in any other employment, occupation or consulting activity for any direct or indirect remuneration without the prior approval of the Board.  Executive further agrees to comply with all Company policies, including, for the avoidance of any doubt, any insider trading policies and compensation clawback policies currently in existence or that may be adopted by the Company during the Employment Term.

 

(c)                                  Termination Date.  Unless earlier agreed to in writing by the Company and Executive, this Agreement will terminate and Executive will cease to be an employee of the Company on the earlier of (i) the twelve (12) month anniversary of the Effective Date, or (ii) the date that the Board appoints a new President and Chief Executive Officer of the Company.

 

2.                                      At-Will Employment.  The parties agree that Executive’s employment with the Company will be “at-will” employment and may be terminated at any time with or without cause or notice.  Executive understands and agrees that neither his job performance nor promotions, commendations, bonuses or the like from the Company give rise to or in any way serve as the basis for modification, amendment, or extension, by implication or otherwise, of his employment with the Company.

 

3.                                      Compensation.

 

(a)                                 Base Salary.  During the Employment Term, the Company will pay Executive an annual salary of $526,000 as compensation for his services (as adjusted from time to time, the “Base Salary”).  The Base Salary will be paid periodically in accordance with the Company’s normal payroll practices and be subject to the usual, required withholdings.

 

 

(b)                                 Target Bonus.  Executive will be eligible to receive an annual target bonus of $490,000, less applicable withholdings, based on achievement of performance objectives at target levels to be determined by the Board in its sole discretion (the “Target Bonus”).  The Target Bonus, or any portion thereof, will be paid as soon as practicable after the Board determines that the Target Bonus has been earned, but in no event shall the Target Bonus be paid after the later of (i) the fifteenth (15th) day of the third (3rd) month following the close of the Company’s fiscal year in which the Target Bonus is earned or (ii) March 15 following the calendar year in which the Target Bonus is earned.

 

(c)                                  Restricted Stock Units.  The Company will recommend to the Board that the Board grant Executive an award of Company restricted stock units with a grant date fair value of $150,000 (the “RSUs”).  100% of the RSUs will vest on the twelve (12) month anniversary of the Effective Date, subject to the Executive continuing to be a “Service Provider” (as defined in the Plan) through the vesting date.  The RSUs will be subject to the terms and conditions of the Company’s 2015 Equity Incentive Plan (the “Plan”) and a restricted stock unit award agreement thereunder.

 

(d)                                 Review and Adjustments. Executive’s Base Salary, Target Bonus, and other compensatory arrangements will be subject to review and adjustment in accordance with the Company’s applicable policies.

 

4.                                      Employee Benefits.  During the Employment Term, Executive will be entitled to participate in the employee benefit plans currently and hereafter maintained by the Company of general applicability to other senior executives of the Company.  The Company reserves the right to cancel or change the benefit plans and programs it offers to its employees at any time.

 

5.                                      Vacation.  Executive will be entitled to paid vacation of twenty (20) business days per year in accordance with the Company’s vacation policy, with the timing and duration of specific days off mutually and reasonably agreed to by the parties hereto.

 

6.                                      Expenses.  The Company will reimburse Executive for reasonable travel (including first class air travel), entertainment or other expenses incurred by Executive in the furtherance of or in connection with the performance of Executive’s duties hereunder, in accordance with the Company’s expense reimbursement policy as in effect from time to time.  Executive acknowledges and agrees that any reimbursements to Executive with respect to Executive’s travel from his personal residence to the Company’s offices in San Francisco or with respect to Executive’s lodging in San Francisco will constitute taxable compensation to Executive and will be subject to all applicable withholdings.

 

7.                                      Definition of Terms.  The following terms referred to in this Agreement will have the following meanings:

 

(a)                                 Affiliate.  “Affiliate” means the Company and any other parent or subsidiary corporation of the Company, as such terms are defined in Section 424(e) and (1) of the Code.

 

(b)                                 Code.  “Code” means the Internal Revenue Code of 1986, as amended.

 

2

 

(c)                                  Equity Awards. “Equity Awards” means Executive’s outstanding stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance stock units and any other Company equity compensation awards.

 

(d)                                 Proprietary Information and Inventions Agreement.  “Proprietary Information and Inventions Agreement” means an Employee Invention Assignment and Confidentiality Agreement in the Company’s standard form.

 

7.                                      Confidential Information.  Executive agrees to execute and comply with the terms and conditions of the Proprietary Information and Inventions Agreement.

 

8.                                      Assignment.  This Agreement will be binding upon and inure to the benefit of (a) the heirs, executors and legal representatives of Executive upon Executive’s death and (b) any successor of the Company.  Any such successor of the Company will be deemed substituted for the Company under the terms of this Agreement for all purposes.  For this purpose, “successor” means any person, firm, corporation or other business entity which at any time, whether by purchase, merger or otherwise, directly or indirectly acquires all or substantially all of the assets or business of the Company.  None of the rights of Executive to receive any form of compensation payable pursuant to this Agreement may be assigned or transferred except by will or the laws of descent and distribution.  Any other attempted assignment, transfer, conveyance or other disposition of Executive’s right to compensation or other benefits will be null and void.

 

9.                                      Notices.  All notices, requests, demands and other communications called for hereunder will be in writing and will be deemed given (i) on the date of delivery if delivered personally, (ii) one (1) day after being sent by a well-established commercial overnight service, or (iii) four (4) days after being mailed by registered or certified mail, return receipt requested, prepaid and addressed to the parties or their successors at the following addresses, or at such other addresses as the parties may later designate in writing:

 

If to the Company:

 

Invuity, Inc.

Attn: Chief Financial Officer

444 De Haro Street

San Francisco, CA 94107

 

If to Executive:

 

at the last residential address known by the Company.

 

10.                               Severability.  In the event that any provision hereof becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Agreement will continue in full force and effect without said provision.

 

11.                               Arbitration.

 

(a)                                 Arbitration.  In consideration of Executive’s employment with the Company, its promise to arbitrate all employment-related disputes, and Executive’s receipt of the 

 

3

 

compensation, pay raises and other benefits paid to Executive by the Company, at present and in the future, Executive agrees that any and all controversies, claims, or disputes with anyone (including the Company and any employee, officer, director, shareholder or benefit plan of the Company in their capacity as such or otherwise) arising out of, relating to, or resulting from Executive’s employment with the Company or termination thereof, including any breach of this Agreement, will be subject to binding arbitration under the Arbitration Rules set forth in California Code of Civil Procedure Section 1280 through 1294.2, including Section 1281.8 (the “Act”), and pursuant to California law.  The Federal Arbitration Act shall also apply with full force and effect, notwithstanding the application of procedural rules set forth under the Act.

 

(b)                                 Dispute Resolution.  Disputes that Executive agrees to arbitrate, and thereby agrees to waive any right to a trial by jury, include any statutory claims under local, state, or federal law, including, but not limited to, claims under Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act of 1990, the Age Discrimination in Employment Act of 1967, the Older Workers Benefit Protection Act, the Sarbanes Oxley Act, the Worker Adjustment and Retraining Notification Act, the California Fair Employment and Housing Act, the Family and Medical Leave Act, the California Family Rights Act, the California Labor Code, claims of harassment, discrimination, and wrongful termination, and any statutory or common law claims.  Executive further understands that this Agreement to arbitrate also applies to any disputes that the Company may have with Executive.

 

(c)                                  Procedure.  Executive agrees that any arbitration will be administered by the Judicial Arbitration & Mediation Services, Inc. (“JAMS”), pursuant to its Employment Arbitration Rules & Procedures (the “JAMS Rules”).  The arbitrator shall have the power to decide any motions brought by any party to the arbitration, including motions for summary judgment and/or adjudication, motions to dismiss and demurrers, and motions for class certification, prior to any arbitration hearing.  The arbitrator shall have the power to award any remedies available under applicable law, and the arbitrator shall award attorneys’ fees and costs to the prevailing party, except as prohibited by law.  The Company will pay for any administrative or hearing fees charged by the administrator or JAMS, and all arbitrators’ fees, except that Executive shall pay any filing fees associated with any arbitration that Executive initiates, but only so much of the filing fee as Executive would have instead paid had Executive filed a complaint in a court of law.  Executive agrees that the arbitrator shall administer and conduct any arbitration in accordance with California law, including the California Code of Civil Procedure and the California Evidence Code, and that the arbitrator shall apply substantive and procedural California law to any dispute or claim, without reference to the rules of conflict of law.  To the extent that the JAMS Rules conflict with California law, California law shall take precedence.  The decision of the arbitrator shall be in writing.  Any arbitration under this Agreement shall be conducted in San Diego County, California.

 

(d)                                 Remedy.  Except as provided by the Act, arbitration shall be the sole, exclusive, and final remedy for any dispute between Executive and the Company.  Accordingly, except as provided by the Act and this Agreement, neither Executive nor the Company will be permitted to pursue court action regarding claims that are subject to arbitration.  Notwithstanding, the arbitrator will not have the authority to disregard or refuse to enforce any lawful Company policy, and the arbitrator will not order or require the Company to adopt a policy not otherwise required by law which the Company has not adopted.

 

4

 

(e)                                  Administrative Relief.  Executive is not prohibited from pursuing an administrative claim with a local, state, or federal administrative body or government agency that is authorized to enforce or administer laws related to employment, including, but not limited to, the Department of Fair Employment and Housing, the Equal Employment Opportunity Commission, the National Labor Relations Board, or the Workers’ Compensation Board.  However, Executive may not pursue court action regarding any such claim, except as permitted by law.

 

(f)                                   Voluntary Nature of Agreement.  Executive acknowledges and agrees that Executive is executing this Agreement voluntarily and without any duress or undue influence by the Company or anyone else.  Executive further acknowledges and agrees that Executive has carefully read this Agreement and that Executive has asked any questions needed for Executive to understand the terms, consequences and binding effect of this Agreement and fully understands it, including that EXECUTIVE IS WAIVING EXECUTIVE’S RIGHT TO A JURY TRIAL.  Finally, Executive agrees that Executive has been provided an opportunity to seek the advice of an attorney of Executive’s choice before signing this Agreement.

 

12.                               Integration.  This Agreement and the Proprietary Information and Inventions Agreement represents the entire agreement and understanding between the parties as to the subject matter herein and supersedes all prior or contemporaneous agreements whether written or oral.  This Agreement may be modified only by agreement of the parties by a written instrument executed by the parties that is designated as an amendment to this Agreement.

 

13.                               Waiver of Breach.  The waiver of a breach of any term or provision of this Agreement, which must be in writing, will not operate as or be construed to be a waiver of any other previous or subsequent breach of this Agreement.

 

14.                               Headings.  All captions and section headings used in this Agreement are for convenient reference only and do not form a part of this Agreement.

 

15.                               Tax Withholding.  All payments made pursuant to this Agreement will be subject to withholding of applicable taxes.

 

16.                               Governing Law.  This Agreement will be governed by the laws of the State of California (with the exception of its conflict of laws provisions).

 

17.                               Acknowledgment.  Executive acknowledges that he has had the opportunity to discuss this matter with and obtain advice from his private attorney, has had sufficient time to, and has carefully read and fully understands all the provisions of this Agreement, and is knowingly and voluntarily entering into this Agreement.

 

18.                               Counterparts.  This Agreement may be executed in counterparts, and each counterpart will have the same force and effect as an original and will constitute an effective, binding agreement on the part of each of the undersigned.

 

5

 

IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the Company by their duly authorized officers, as of the day and year set forth below.

 

COMPANY:

 

INVUITY, INC.

 

	
By: 
    	
/s/ Marcia Fish
    	
 
    	
Date:
    	
March 6, 2018
    
	
Title: 
    	
Chief Human Resources   Officer
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
EXECUTIVE:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
/s/ Scott Flora
    	
 
    	
Date:
    	
March 6, 2018
    
	
SCOTT FLORA
    	
 
    	
 
    	
 
    

 

[SIGNATURE PAGE TO EXECUTIVE EMPLOYMENT AGREEMENT]

 

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