Document:

EX-10.12

  Exhibit 10.12

   

  RELEASE AND CONSULTING AGREEMENT

   

  This Release and Consulting Agreement (the “Agreement”) is entered into as of October 20, 2021 (the “Effective Date”), by and between Treace Medical Concepts, Inc. (the “Company”) and Joe W. Ferguson (“Ferguson”) (The Company and Ferguson sometimes referred to collectively herein as the “Parties”).

   

  Preliminary Statement.  Ferguson was employed by the Company from July 14, 2014 through the Effective Date.  The Parties are entering into this Agreement (1) to provide for Ferguson’s release of claims against the Released Parties (as defined below) in return for the Company’s payment of severance benefits to Ferguson, and (2) to set forth the terms pursuant to which Ferguson will provide continued assistance to the Company in the future with respect to certain matters in return for such severance benefits and additional consulting fees, all as set forth herein.  Accordingly, for good and valuable consideration the receipt and sufficiency of which are hereby acknowledged by the Parties, the Company and Ferguson agree as follows:

   

  1.Release; Attestation.

   

  a.In return for payment of severance benefits pursuant to the Change in Control Severance Agreement between the Company and Ferguson dated May 27, 2021 (the “CIC Severance Agreement”), Ferguson hereby generally and completely releases Treace Medical Concepts, Inc., its parent and subsidiary entities, and its or their directors, officers, employees, shareholders, partners, agents, attorneys, predecessors, successors, insurers, affiliates, and assigns (collectively “Released Parties”), from any and all claims, liabilities and obligations, both known and unknown, that arise out of or are in any way related to events, acts, conduct, or omissions occurring prior to my signing this Agreement.  This general release includes, but is not limited to: (1) all claims arising out of or in any way related to Ferguson’s employment with the Company or the termination of that employment; (2) all claims related to Ferguson’s compensation or benefits from the Company, including wages, salary, bonuses, commissions, vacation pay, expense reimbursements (to the extent permitted by applicable law), severance pay, fringe benefits, stock, stock options, or any other ownership interests in the Company; (3) all claims for breach of contract, wrongful termination, and breach of the implied covenant of good faith and fair dealing; (4) all tort claims, including without limitation claims for fraud, defamation, emotional distress, and discharge in violation of public policy; and (5) all federal, state, and local statutory claims, including without limitation claims for discrimination, harassment, retaliation, attorneys’ fees, or other claims arising under the federal Civil Rights Act of 1964 (as amended), the federal Americans with Disabilities Act of 1990, the federal Age Discrimination in Employment Act of 1967 (as amended) (“ADEA”), the federal Worker Adjustment and Retraining Notification Act (as amended) and similar laws in other jurisdictions, the Florida Civil Rights Act (“FCRA”), the Employee Retirement Income Security Act of 1974 (as amended), the Family and Medical Leave Act of 1993, and any similar laws in other jurisdictions; provided, however, that this Release does not waive, release or otherwise discharge any claim or cause of action arising after the date Ferguson signs this Agreement.

   

  b.This Agreement includes a release of claims of discrimination or retaliation on the basis of workers’ compensation status, but does not include workers’ compensation claims. Excluded from this Agreement are any claims which by law cannot be waived in a private agreement between employer and employee, including but not limited to the right to file a charge with or participate in an investigation conducted by the Equal Employment Opportunity Commission (“EEOC”) or any state or local fair employment practices agency. Ferguson waives, however, any right to any monetary recovery or other relief should the EEOC, Ferguson or anyone else pursue a claim on Ferguson’s behalf.

   

  c.Ferguson acknowledges and represents that he: (i) has not suffered any age or other discrimination, harassment, retaliation, or wrongful treatment by any Released Party; and (ii) has not been denied any rights including, but not limited to, rights to a leave or reinstatement from a leave under the Family and Medical Leave Act of 1993, the Uniformed Services Employment and Reemployment Rights Act of 1994, or any similar law of any jurisdiction.

   

  1

   

  

  d.Ferguson agrees that he is voluntarily executing this Agreement.  Ferguson acknowledges that: (i) he is knowingly and voluntarily waiving and releasing any rights he may have under the ADEA, as amended by the Older Workers Benefit Protection Act of 1990, and that the consideration given for this Release is in addition to anything of value to which he was or may have been already entitled; and (ii) he has been advised by this writing, as required by the ADEA, that: (1) his waiver and release specified in this paragraph does not apply to any rights or claims that may arise after the date he signs this Agreement; (2) he has been advised to consult with an attorney prior to signing this Agreement; (3) if a “Severance” (as defined in the CIC Severance Agreement) involves an employment termination program, he has received a disclosure from the Company that includes a description of the class, unit or group of individuals covered by the program, the eligibility factors for such program, and any time limits applicable to such program and a list of job titles and ages of all employees selected for this group termination and ages of those individuals in the same job classification or organizational unit who were not selected for termination; (4) he has at least twenty-one (21) days from the date that he received this Agreement (although he may choose to sign it any time on or after his Severance Date (as defined in the CIC Severance Agreement)) to consider the Release contained herein; (5) he has seven (7) calendar days after he signs this Agreement to revoke it (“Revocation Period”) by sending his revocation to the Company’s Human Resources Manager in writing at 203 Fort Wade Rd., Suite 150, Ponte Vedra, FL 32081; and (6) this Agreement will not be effective until he has signed it and returned it to the Company’s Corporate Secretary and the Revocation Period has expired.

   

  e.FERGUSON UNDERSTANDS THAT THIS AGREEMENT INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS.

   

  f.Attestation.  Ferguson hereby acknowledges that he has executed that certain Employee Confidentiality, Non-Competition, Non-Solicitation and Inventions Agreement effective June 24, 2014 (the “Restrictive Covenants Agreement”), which is attached as Exhibit 1 to this Agreement, with the Company. Ferguson acknowledges, agrees and attests that the Restrictive Covenants Agreement is in full effect and enforceable.  Ferguson further affirms that he has complied and shall continue to comply with his current and continuing obligations under the Restrictive Covenants Agreement.  Ferguson understands and agrees that if he is found in a judgment no longer subject to review or appeal to have breached the obligations set forth in the Restrictive Covenants Agreement, then he shall immediately forfeit any amounts payable or benefits to be received and shall promptly reimburse the Company any amounts actually paid to him pursuant to his CIC Severance Agreement with the Company (other than payments made pursuant to Section 3.2 thereof).

   

  2.Consulting Provisions.

   

  a.The Parties recognize that, after more than 7 years of employment with the Company, Ferguson is in possession of considerable historical information relating to the Company that may be valuable to the Company’s ongoing operations.  As a condition of this Agreement and the consideration offered to Ferguson pursuant to this Agreement, Ferguson further agrees to provide, for a period of four (4) years from the Effective Date, assistance to the Company upon receipt of reasonable notice from the Company.  This term shall be extendable upon written request by the Company.  The Parties agree that such assistance may include, but not be limited to, attendance at in-person or remote meetings with the Company’s personnel, representatives and agents, attendance at legal proceedings, execution of legal documents, including patent documents, and assistance with locating and identifying relevant Company documents. Ferguson agrees that the initial 100 hours provided pursuant to this paragraph shall be deemed fully paid by the Severance contemplated by this Agreement.  For any hours in excess thereof, Ferguson shall be paid by the Company at the hourly rate of $300.  Time spent by Ferguson to ensure a smooth transition of his current role shall not be considered part of the services provided under this paragraph. Ferguson further agrees that as a condition of this Agreement, he shall indefinitely maintain in strictest confidence all privileged and confidential information that he has generated, received or learned of during the term of his employment with the Company (“Information”).  Ferguson further agrees that he shall not disclose such Information to any third party without the express written consent of the Company.  Ferguson further agrees that he shall not accept employment from or engage with any third party whether as an employee, advisor, consultant, greater than 1% owner (whether directly or indirectly), paid fact witness, expert or any other role in any matter (legal, administrative or otherwise) in which (i) he performs services or provides advice to another company offering instrumentation and implants for bunion and ancillary surgeries or (ii) his 

  2

   

  

  involvement would be adverse to the Company’s or its successor’s interests.  Ferguson acknowledges and agrees that his service in any such role is likely to result in the disclosure, including the inadvertent disclosure, of Information.  Ferguson agrees that this prohibition shall extend for a period of five (5) years from the Effective Date of this Agreement.

   

  b.After the Effective Date and in connection with performance of services under Section 2a, Ferguson’s relationship with the Company will be that of an independent contractor, and nothing in this Agreement should be construed to create a partnership, joint venture, or employer-employee relationship.  Ferguson will be solely responsible for all tax returns and payments required to be filed with or made to any federal, state or local tax authority with respect to Ferguson’s performance of services and receipt of amounts under Section 2 of this Agreement.  Because Ferguson is an independent contractor after the Effective Date, with respect to the services performed and amounts paid under Section 2, the Company will not withhold or make payments for social security; make unemployment insurance or disability insurance contributions; or obtain worker’s compensation insurance on Ferguson’s behalf; or undertake any other responsibility inconsistent with the independent contractor relationship.

   

  3.General Provisions.

   

  a.The parties have carefully read this Agreement in its entirety; fully understand and agree to its terms and provisions; intend and agree that it is final and binding and understand that, in the event of a breach, either party may seek relief, including damages, restitution and injunctive relief, at law or in equity, in a court of competent jurisdiction.

   

  b.Ferguson agrees that he is not signing this Agreement in reliance upon any promise, representation or warranty not expressly contained in this Agreement, including its exhibits. Any oral representations regarding this Agreement, including its exhibits, shall have no force or effect.  No modification, termination, or attempted waiver of any of the provisions of this Agreement shall be binding upon the Company unless reduced to writing and signed by a duly authorized official. Each provision of this Agreement is severable from each other provision of this Agreement. If any provision of this Agreement is determined to be invalid or unenforceable, the remaining portions of this Agreement will continue to be operative and in full force and effect. This Agreement shall be construed according to a plain reading of its terms and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provision in this Agreement.  The Company’s failure or delay in enforcing any provision of this Agreement will not be a waiver of enforcement of that provision or any other provision. All rights and remedies provided for in this Agreement are cumulative, are in addition to any other rights and remedies provided for by law, and may, to the extent permitted by law, be exercised concurrently or separately. The exercise of any one right or remedy shall not be deemed to be an election of such right or remedy or to preclude the exercise or pursuit of any other right or remedy. 

   

  c.Except as otherwise provided herein or by law, no right or interest of Ferguson under this Agreement shall be assignable or transferable, in whole or in part, either directly or by operation of law or otherwise, including without limitation by execution, levy, garnishment, attachment, pledge or in any manner; no attempted assignment or transfer thereof shall be effective. 

   

  d.This Agreement and any dispute arising under this Agreement will be governed by Florida law, without regard to any conflict of law principles.  Any litigation under this Agreement will be brought by either party exclusively in the federal courts located in Federal District Court, Middle District of Florida, Jacksonville Division and in no other venue.  As such, the parties irrevocably consent to the jurisdiction of the courts in Federal District Court, Middle District of Florida, Jacksonville Division for all such disputes and to service of process via nationally recognized overnight carrier, without limiting other service methods available under applicable law, and waive the right to have a trial by jury under or in connection with this Agreement. 

   

  [signatures on following page]

   

  3

   

  

  IN WITNESS WHEREOF, the Parties have duly executed and delivered this Agreement.

   

  TREACE MEDICAL CONCEPTS, INC.

   

   

  By: _/s/ Daniel E. Owens                        			/s/ Joe W. Ferguson _______________

  Name: Daniel E. Owens					Joe W. Ferguson

  Title: Chief Human Resources Officer

   

  4

   

  

  Exhibit 1

   

   

  Ferguson Confidentiality, Non-Competition, Non-Solicitation and Inventions Agreement

   

  [Omitted]

  5EX-10.20

   

  Exhibit 10.20

  Amended and Restated Director Compensation Program

  Board Compensation Program -- Compensation for Non-Employee Director Positions

  This Treace Medical Concepts, Inc. (the “Company”) Non-Employee Director Compensation Program (this “Program”) has been adopted under the Company’s 2021 Incentive Award Plan (the “Plan”) and shall be effective as of the closing of the Company’s initial public offering of its common stock (the “Effective Date”).  Capitalized terms not otherwise defined herein shall have the meaning ascribed in the Plan.  The cash and equity compensation described in this Program shall be paid or be made, as applicable, automatically and without further action of the Board of Directors of the Company (the “Board”), to each member of the Board who is not an employee of the Company or any parent or subsidiary of the Company (each, a “Non-Employee Director”) unless such Non-Employee Director declines the receipt of such cash or equity compensation by written notice to the Company.  The notice shall be effective for all subsequent compensation payable after the Company’s receipt of such notice unless otherwise agreed in writing between the Company and the Non-Employee Director.  

  Cash Compensation – All Non-Employee Directors are entitled to receive the following annual cash compensation for his or her services:

  ▪$40,000 per year for services as a board member

  ▪$45,000 per year additionally for services as Chairperson of the Board of Directors

  ▪$20,000 per year additionally for services as Chairperson of Audit Committee

  ▪$10,000 per year additionally for service as an Audit Committee member

  ▪$15,000 per year additionally for service as Chairperson of the Compensation Committee

  ▪$7,000 per year additionally for service as a Compensation Committee member

  ▪$10,000 per year additionally for service as the Nominating, Compliance and Governance Chairperson

  ▪$5,000 per year additionally for service as a Nominating, Compliance and Governance Committee member

  Each annual cash retainer and additional annual fee is paid quarterly in arrears on a prorated basis. In the event a Non-Employee Director does not serve as a Non-Employee Director, or in the applicable positions described above, for an entire calendar quarter, the retainer paid to such Non-Employee Director shall be prorated for the portion of such calendar quarter actually served as a Non-Employee Director, or in such position, as applicable.

  Cash compensation portion of plan for directors joining the Board after November 1, 2020 begins when the first new director is appointed to the Board.  Cash compensation for directors serving before November 1, 2020 begins with the Effective Date.  

  Initial Option Grant for Non-Employee Board Directors: Each Non-Employee Director who is initially elected or appointed to serve on the Board after November 1, 2020 shall be granted under the Plan or any other applicable Company equity incentive plan then-maintained by the Company an option to purchase shares of Common Stock (the “Initial Option”) with a value equivalent to $250,000 at “Black-Scholes” Value (as defined below).  The Initial Option will be automatically granted on the date on which such Non-Employee Director commences service on the Board.  The Initial Option will vest and become exercisable over a 3 year period at 1/36th per month from the grant date, subject to the Non-Employee Director’s continued service through the applicable vesting date.  For purposes hereof, “Black Scholes” Value means the fair value of an option determined using the Black-Scholes pricing model based on the Fair Market Value of the Company’s Common Stock and the volatility, risk-free rate and life expectancy assumptions in the Company’s financial statements disclosing those assumptions.

  Exhibit 10.20– Director Compensation Policy - page 1

   

  

   

  Annual Option Grant for Non-Employee Directors:  Each Non-Employee Director who (i) has been serving on the Board for at least four months as of each annual meeting of the Company’s stockholders after the Effective Date (each, an “Annual Meeting”), beginning with the 2022 Annual Meeting, and (ii) will continue to serve as a Non-Employee Director immediately following such Annual Meeting, shall be granted under the Plan an option to purchase shares of Common Stock (the “Annual Option”) with a “Black Scholes” Value equivalent to $145,000.  The Annual Option will be automatically granted on the date of the applicable Annual Meeting.  The Annual Option shall vest and become exercisable over a 1 year period at the rate of 1/12th per month from the grant date, subject to the Non-Employee Director’s continued service through the applicable vesting date. 

  IPO Option Grants:  If individuals agree to become Non-Employee Directors and do not begin their director term until on the Effective Date, they would receive the Initial Option with an exercise price equal to the IPO offering price.  Each Non-Employee Director serving before the Effective Date who continues after the Effective Date will receive an Annual Option on the Effective Date with an exercise price equal to the IPO offering price.

  Unless otherwise provided by the Board, no portion of an Initial Option or Annual Option which is unvested or, as applicable, unexercisable at the time of a Non-Employee Director’s termination of service with the Company (as determined by the Board) shall become vested and, as applicable, exercisable thereafter.  Any Initial Option or Annual Option granted hereunder shall be subject to the Plan and the applicable standard form of award agreement thereunder, as modified to reflect the terms herein.

  Members of the Board who are employees of the Company or any parent or subsidiary of the Company who subsequently terminate their service with the Company and any parent or subsidiary of the Company and remain on the Board will not receive an Initial Option, but to the extent that they are otherwise eligible, will be eligible to receive, after termination from service with the Company and any parent or subsidiary of the Company, Annual Options as described above.

  Change in Control:  Upon a Change in Control, all outstanding equity awards granted under the Plan and any other equity incentive plan maintained by the Company that are held by a Non-Employee Director shall become fully vested and/or exercisable, irrespective of any other provisions of the Non-Employee Director’s award agreement, subject to such Non-Employee Director’s continued service as of immediately prior to such Change in Control.

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

  Miscellaneous:  The other provisions of the Plan shall apply to the equity awards granted automatically pursuant to this Program, except to the extent such other provisions are inconsistent with this Program.  All applicable terms of the Plan apply to this Program as if fully set forth herein, and all grants of equity awards hereby are subject in all respects to the terms of the Plan.  The grant of any equity award under this Program shall be made solely by and subject to the terms set forth in a written agreement in a form approved by the Board and duly executed by an executive officer of the Company.

   

   

  Exhibit 10.20– Director Compensation Policy - page 2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00341-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00341-of-00352.parquet"}]]