Document:

Document

Exhibit 4.1
DESCRIPTION OF SECURITIES REGISTERED UNDER SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934
As of December 31, 2021, VYNE Therapeutics Inc. (the “Company”) had common stock, $0.0001 par value per share, registered under Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and listed on The Nasdaq Global Market under the trading symbol “VYNE.”
DESCRIPTION OF CAPITAL STOCK
The following summary describes our capital stock and the material provisions of our amended and restated certificate of incorporation, our amended and restated bylaws and of the Delaware General Corporation Law. Because the following is only a summary, it does not contain all of the information that may be important to you. For a complete description, you should refer to our amended and restated certificate of incorporation and amended and restated bylaws, copies of which are incorporated by reference as Exhibits 3.1 and 3.2, respectively, to our Annual Report on Form 10-K.
General
Our amended and restated certificate of incorporation authorizes 150,000,000 shares of common stock, $0.0001 par value per share, and 20,000,000 shares of preferred stock, $0.0001 par value per share.
Common Stock
Voting Rights
Each holder of our common stock is entitled to one vote for each share on all matters submitted to a vote of the stockholders, including the election of directors. Our stockholders do not have cumulative voting rights in the election of directors. Accordingly, holders of a majority of the voting shares are able to elect all of the directors. In addition, the affirmative vote of holders of 66-2/3% of the voting power of all of the then outstanding voting stock will be required to take certain actions, including amending certain provisions of our amended and restated certificate of incorporation, such as the provisions relating to amending our amended and restated bylaws, procedures for our stockholder meetings, the classified board, director liability, and exclusive forum for proceedings.
Dividends
Subject to preferences that may be applicable to any then outstanding preferred stock, holders of our common stock are entitled to receive dividends, if any, as may be declared from time to time by our board of directors out of legally available funds.
Liquidation

In the event of our liquidation, dissolution or winding up, holders of our common stock will be entitled to share ratably in the net assets legally available for distribution to stockholders after the payment of all of our debts and other liabilities and the satisfaction of any liquidation preference granted to the holders of any then outstanding shares of preferred stock.
Rights and Preferences 
Holders of our common stock have no preemptive, conversion, subscription or other rights, and there are no redemption or sinking fund provisions applicable to our common stock. The rights, preferences and privileges of the holders of our common stock are subject to, and may be adversely affected by, the rights of the holders of shares of any series of our preferred stock that we may designate in the future.  
Forum for Securities Litigation
Our amended and restated bylaws provide that, unless the Company consents in writing to the selection of an alternative forum, the federal district courts of the United States of America will be the sole and exclusive forum for the resolution of any complaint asserting a cause of action arising under the Securities Act of 1933, as amended. 
Preferred Stock
Our board of directors has the authority, without further action by our stockholders, to issue up to 20,000,000 shares of preferred stock in one or more series and to fix the rights, preferences, privileges and restrictions thereof. These rights, preferences and privileges could include dividend rights, conversion rights, voting rights, terms of redemption, liquidation preferences, sinking fund terms and the number of shares constituting, or the designation of, such series, any or all of which may be greater than the rights of common stock. The issuance of our preferred stock could adversely affect the voting power of holders of common stock and the likelihood that such holders will receive dividend payments and payments upon our liquidation. In addition, the issuance of preferred stock could have the effect of delaying, deferring or preventing a change in control of our company or other corporate action.
Anti-Takeover Effects of Provisions of our Amended and Restated Certificate of Incorporation, our Amended and Restated Bylaws and Delaware Law
Some provisions of Delaware law and our amended and restated certificate of incorporation and our amended and restated bylaws contain provisions that could make the following transactions more difficult: acquisition of us by means of a tender offer; acquisition of us by means of a proxy contest or otherwise; or removal of our incumbent officers and directors. It is possible that these provisions could make it more difficult to accomplish or could deter transactions that stockholders may otherwise consider to be in their best interest or in our best interests, including transactions that might result in a premium over the market price for our shares.
These provisions, summarized below, are expected to discourage coercive takeover practices and inadequate takeover bids. These provisions are also designed to encourage persons seeking to acquire control of us to first negotiate with our board of directors. We believe that the benefits of 

increased protection of our potential ability to negotiate with the proponent of an unfriendly or unsolicited proposal to acquire or restructure us outweigh the disadvantages of discouraging these proposals because negotiation of these proposals could result in an improvement of their terms.
Delaware Anti-Takeover Statute
We are subject to Section 203 of the Delaware General Corporation Law, which prohibits persons deemed “interested stockholders” from engaging in a “business combination” with a publicly-held Delaware corporation for three years following the date these persons become interested stockholders unless the business combination is, or the transaction in which the person became an interested stockholder was, approved in a prescribed manner or another prescribed exception applies. Generally, an “interested stockholder” is a person who, together with affiliates and associates, owns, or within three years prior to the determination of interested stockholder status did own, 15% or more of a corporation’s voting stock. Generally, a “business combination” includes a merger, asset or stock sale, or other transaction resulting in a financial benefit to the interested stockholder. The existence of this provision may have an anti-takeover effect with respect to transactions not approved in advance by the board of directors, such as discouraging takeover attempts that might result in a premium over the market price of our common stock.
Undesignated Preferred Stock
The ability to authorize undesignated preferred stock makes it possible for our board of directors to issue preferred stock with voting or other rights or preferences that could impede the success of any attempt to change control of us. These and other provisions may have the effect of deterring hostile takeovers or delaying changes in control or management of our company.
Special Stockholder Meetings
Our amended and restated bylaws provide that a special meeting of stockholders may be called by our board of directors, our President, our Chief Executive Officer, or the Secretary.
Requirements for Advance Notification of Stockholder Nominations and Proposals
Our amended and restated bylaws include advance notice procedures with respect to stockholder proposals and the nomination of candidates for election as directors, other than nominations made by or at the direction of the board of directors or a committee of the board of directors.
Elimination of Stockholder Action by Written Consent
Our amended and restated certificate of incorporation and our amended and restated bylaws do not permit stockholders to act by written consent without a meeting.
Classified Board; Election and Removal of Directors; Filling Vacancies
Our board of directors is divided into three classes. The directors in each class will serve for a three-year term, one class being elected each year by our stockholders, with staggered three-year terms. Only one class of directors will be elected at each annual meeting of our stockholders, 

with the other classes continuing for the remainder of their respective three-year terms. Because our stockholders do not have cumulative voting rights, our stockholders holding a majority of the shares of common stock outstanding will be able to elect all of our directors. Our amended and restated certificate of incorporation provides for the removal of any of our directors only for cause and requires a stockholder vote by the holders of at least a 66-2/3% of the voting power of the then outstanding voting stock. Furthermore, any vacancy on our board of directors, however occurring, including a vacancy resulting from an increase in the size of the board, may only be filled by a resolution of the board of directors unless the board of directors determines that such vacancies shall be filled by the stockholders. This system of electing and removing directors and filling vacancies may tend to discourage a third party from making a tender offer or otherwise attempting to obtain control of us, because it generally makes it more difficult for stockholders to replace a majority of the directors.
Choice of Forum
Our amended and restated certificate of incorporation provides that, unless we consent in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware will be the exclusive forum for: any derivative action or proceeding brought on our behalf; any action asserting a breach of fiduciary duty; any action asserting a claim against us arising pursuant to the Delaware General Corporation Law, our amended and restated certificate of incorporation or our amended and restated bylaws; or any action asserting a claim against us that is governed by the internal affairs doctrine. Although our amended and restated certificate of incorporation contains the choice of forum provision described above, it is possible that a court could find that such a provision is inapplicable for a particular claim or action or that such provision is unenforceable.  
Amendment of Charter Provisions
The amendment of any of the above provisions, except for the provision making it possible for our board of directors to issue undesignated preferred stock, would require approval by a stockholder vote by the holders of at least a 66-2/3% of the voting power of the then outstanding voting stock.
The provisions of the Delaware General Corporation Law, our amended and restated certificate of incorporation and our amended and restated bylaws could have the effect of discouraging others from attempting hostile takeovers and, as a consequence, they may also inhibit temporary fluctuations in the market price of our common stock that often result from actual or rumored hostile takeover attempts. These provisions may also have the effect of preventing changes in our management. It is possible that these provisions could make it more difficult to accomplish transactions that stockholders may otherwise deem to be in their best interests.
Limitations of Liability and Indemnification
Our amended and restated certificate of incorporation contains provisions that limit the liability of our directors for monetary damages to the fullest extent permitted by Delaware law. 

Consequently, our directors will not be personally liable to us or our stockholders for monetary damages for any breach of fiduciary duties as directors, except liability for:
•any breach of the director’s duty of loyalty to us or our stockholders;
•any act or omission not in good faith or that involves intentional misconduct or a knowing violation of law;
•unlawful payments of dividends or unlawful stock repurchases or redemptions as provided in Section 174 of the Delaware General Corporation Law; or
•any transaction from which the director derived an improper personal benefit.
Each of our amended and restated certificate of incorporation and amended and restated bylaws provides that we are required to indemnify our directors and officers, in each case, to the fullest extent permitted by Delaware law. Our amended and restated bylaws will also obligate us to advance expenses incurred by a director or officer in advance of the final disposition of any action or proceeding, and permit us to secure insurance on behalf of any officer, director, employee or other agent for any liability arising out of his or her actions in that capacity regardless of whether we would otherwise be permitted to indemnify him or her under Delaware law. We have entered and expect to continue to enter into agreements to indemnify our directors, executive officers and other employees as determined by our board of directors. With specified exceptions, these agreements provide for indemnification for related expenses including, among other things, attorneys’ fees, judgments, fines and settlement amounts incurred by any of these individuals in any action or proceeding. We believe that these bylaw provisions and indemnification agreements are necessary to attract and retain qualified persons as directors and officers. We also maintain directors’ and officers’ liability insurance. The limitation of liability and indemnification provisions in our amended and restated certificate of incorporation and amended and restated bylaws may discourage stockholders from bringing a lawsuit against our directors and officers for breach of their fiduciary duty. They may also reduce the likelihood of derivative litigation against our directors and officers, even though an action, if successful, might benefit us and our stockholders. Further, a stockholder’s investment may be adversely affected to the extent that we pay the costs of settlement and damage.exhibit1012-stuartexecut

  Vyne Therapeutics Inc.  520 U.S. Highway 22, Suite 204, Bridgewater, New Jersey 08807                 March 7, 2022    Dr. Iain Stuart    Dear Iain,    This letter (the “Offer Letter”) contains the terms and conditions of your employment with VYNE  Pharmaceuticals Inc. (the “Company”), a subsidiary of VYNE Therapeutics Inc. (“VYNE”), effective  as of March 7, 2022 (the “Effective Date”). The Company, together with its ultimate parent  and their respective affiliates and subsidiaries, are hereinafter referred to as the “Group Companies.”  Your employment pursuant  to  this  Offer  Let ter  will commence as of the Effective Date and  the terms and conditions of this Offer Letter shall be effective as of the Effective Date.  Unless  stated otherwise herein, this Offer Letter will supersede any prior offer letters between you and the  Company or any of its affiliates, including the letters dated September 4, 2016 and May 6, 2019 and  any amendments thereto (together, the “Previous Offer Letter”). You may be interchangeably  referred to as “you” or “the Executive” within this Offer Letter. Additionally, where the context  permits, references to “the Company” shall include the Company, its subsidiaries and affiliates and  any successor thereto.     Brief Description of Role, Reporting Structure and Major Responsibilities:      You will report to the Company’s President and Chief Executive Officer, David Domzalski.      The scope of the Chief Scientific Officer’s (CSO) role is formulating, directing and leading VYNE’s  overall scientific strategy and pharmaceutical research and development efforts. Specifically, the CSO  is specifically responsible for the following functional areas within VYNE:    • Clinical Development and Operations  • Non-Clinical Safety and Efficacy  • Pharmaceutical Development  • Medical Affairs and Medical Information  • Pharmacovigilance    Clinical Development    Provide oversight and input into the design, analysis, interpretation, reporting and presentation of  data from GCP clinical studies conducted to support research and development programs.     • Participates (or leads) project teams in providing clinical input and representation of the  medical function related to clinical development strategy and execution.   • Provide direction to the Clinical Development team in all areas of the development and  execution of a clinical program including:  • Clinical development plan creation  

 

  Vyne Therapeutics Inc.  520 U.S. Highway 22, Suite 204, Bridgewater, New Jersey 08807         • Clinical study design  • Statistical analytical plans (SAPs)  • Clinical operations plans  • Data management plans  • Medical monitoring and safety plans  • Selection and management of CROs or other contractors  • Develops, maintains and expands collaborations with outside clinical investigators,  researchers and consultants to facilitate and provide guidance for the optimum performance  of clinical  • Key R&D representative for regulatory agency interaction as required to forward the aims of  VYNE clinical development programs.     In addition, the CSO oversees:  • The development and management of clinical study budgets.  • The proposals process for new clinical study vendors.  • Data management activities to design study specific case report forms, edit checks, and  listings for data review.  • Provide functional review/approval for the development of GCP-compliant quality  system/standard operating procedures.    Non-Clinical Safety and Efficacy    Provide oversight and input into the design, analysis, interpretation, reporting and presentation of  data from non-GLP and GLP nonclinical studies (research models, ADME/PK, Safety Pharmacology  and Toxicology) conducted to support research and development programs.      • Approve appropriate nonclinical development plans supporting the clinical  development of VYNE R&D projects.  • Ensure adequate staff and resourcing of non-clinical study support to development  teams (including budgeting, timing, interpretation, and reporting of all nonclinical  studies and assuring compliance with all appropriate regulatory guidance).  • Act as a point of contact for non-clinical CROs and consultants.  • Review and approve non-clinical sections of all regulatory submissions for  development projects and interact with regulatory agencies, as needed.  • Oversee the development of and operationalization of specific research models to  support early research program evaluation.      Medical Affairs and Medical Information    • Be the key owner of all medical affairs strategies and activities supporting VYNE  products/projects.  • Approve key medico-scientific messaging platforms for VYNE products/projects.  • Ensure the development and training of field deployment of the medical science liaison team.  • Be the key company liaison with subject matter scientific thought leaders within relevant  specialties of interest to VYNE.  • Ensure medical affairs provides accurate and timely medical/scientific review of  promotional/commercial materials as appropriate.  

 

  Vyne Therapeutics Inc.  520 U.S. Highway 22, Suite 204, Bridgewater, New Jersey 08807       925825-NYCSR05A - MSW  • Represent R&D in any due diligence activities relating to either in-licensing/acquisitions of  new products or out-licensing of VYNE technologies.  • Responsible for the strategic oversight and management of the medical information call  center via third party vendors.   • Develop rigorous, succinct and compliant medical information processes and ensure  adherence to such processes.   • Strong experience in managing and navigating within electronic data capture systems  relevant to medical information eg IRMS, VEEVA.   • Introduce insights generation capability within medical information.   • Serve as a key internal scientific resource and educator.   • Understand and implement industry leading technology solutions and multi-channel methods  of communications with HCPs and patients.   • Contribute to the development, review, and approval of medical information responses and  promotional materials.     Pharmaceutical Development    • Oversee the pharmaceutical development strategy for VYNE Therapeutics.  • Ensure that timely and adequate CMC supplies are available to support all VYNE  Therapeutics development projects.    Pharmacovigilance    • Develop a comprehensive pharmacovigilance program to monitor safety data from our  clinical development programs and approved products, including reports from Investigator- Initiated studies, Medical Affairs sponsored activities and review of safety information  reported in the literature.   • Identify and manage relevant vendors as appropriate to support both medical information and  pharmacovigilance activities.   • Direct pharmacovigilance activities through identification, communication and  documentation of new processes (e.g., quarterly data review meetings).   • Strong experience in managing and navigating within electronic data capture systems  relevant to drug safety eg ARISg PV.   • Participate in signal detection efforts of a structured surveillance program. This includes  collaboration with clinical development on regularly scheduled and ad-hoc reviews of  emerging safety data.   • Perform on-going evaluation of reports of suspected, unexpected and related serious adverse  drug reactions and provide analyses of similar events for incorporation into investigational  new drug safety reports for submission to relevant external bodies eg. FDA, IRBs.   • Lead the development of periodic safety reports and safety updates as required eg. IND  annual reports, investigator brochures, Day 120 safety updates, PADERs etc.   • Participate in the reconciliation of clinical and safety databases for on-going studies such as  overseeing the generation/resolution of SAE queries and MedDRA coding and data quality  reviews in collaboration with clinical CRO drug safety specialists and medical monitors.   • Work with medical writers, as needed, in the preparation of patient narratives and safety data  analyses for safety sections of Clinical Study Reports and summary documents   • Facilitate training of all relevant VYNE staff in pharmacovigilance case data collection and  reporting.    

 

  Vyne Therapeutics Inc.  520 U.S. Highway 22, Suite 204, Bridgewater, New Jersey 08807         Compensation    You will be paid a base salary at an annual rate of $$421,811, payable in accordance with the  Company’s payroll policies, less applicable deductions and employment taxes.  Currently, the  Company’s regular pay period is bi-monthly (the 15th and 30th of each month).     You will be eligible to receive a cash bonus of up to 40% of your base salary based on achievement of  milestones and targets set by the CEO, under the framework of the applicable bonus plan of the  Company for the relevant year.     The payment and grant of the cash bonus, if awarded, shall be made no later than March 15th of the  calendar year following the year to which the performance relates, upon evaluation of your  performance and the achievement of milestones and targets set for the performance year, and in  accordance with the then-current general bonus plan.  You must be employed by the Company on the  bonus payment date to be eligible to receive the bonus.    You will receive annual equity awards to acquire common stock in VYNE with a per share exercise  price for the options equal to the fair market value of one share of VYNE common stock on the grant  date. The annual equity grants are expected to be granted in March and will vest over a period of four  years following the last day of the calendar quarter in which the grant was made as follows: 25% on  the first anniversary of the vesting commencement date and 6.25% on the last day of each subsequent  calendar quarter, subject to your continued employment with VYNE or one of its subsidiaries through  the applicable vesting date.  Please note that such vesting period does not amount to an undertaking of  the Company or VYNE to employ you for any given period.  The equity grants shall be subject to the  execution of a share award agreement with VYNE and the terms and conditions of VYNE's 2019  Equity Incentive Plan, or VYNE's 2018 Omnibus Equity Incentive Plan, in each case, as may be  amended or amended and restated from time to time.     Consistent with its policies as established from time to time, the Company will also cover all  expenses directly related to your job performance, in accordance with the Company’s policies as in  effect from time to time.     You will be entitled to four  (4)  weeks of paid vacation.  These vacation days accrue ratably over  the calendar year and may not be carried forward from year to year or paid out at the termination of  employment, except as described below or if your state laws mandate this payout. You will be  entitled to participate in the Company’s healthcare plan, then in effect, or, at the Company’s  election, the Company may direct you to purchase an individual plan providing equivalent  coverage and will reimburse you for all premium payments under such individual plan, upon proof of  payment. All matters of eligibility under the Company’s plans will be determined solely by the  carriers providing such insurance.  You will continue to be eligible to participate in the Company’s  401(k) plan.      The Company will also recognize certain holidays. These dates are communicated each year by the  Company and may change based upon business needs.     Termination of Employment    Your employment with the Company is at-will and may be terminated by either you or the Company  at any time, with or without reason.      

 

  Vyne Therapeutics Inc.  520 U.S. Highway 22, Suite 204, Bridgewater, New Jersey 08807         In the event of a termination for Cause (as defined on Appendix A) by the Company, your employment  will end immediately without notice and the Company and its subsidiaries and affiliates will have no  further liability towards you except for payment of (1) any earned but unpaid base salary, (2) any  incurred but unreimbursed business expenses and (3) any accrued but unused vacation days that exist  as of the date of your termination of employment to the extent mandated by state law (together, the  “Accrued Benefits”).    In the event of your death or the termination of your employment as a result of your disability (as  determined by the Company in good faith), the Company will have no further liability to you except  for payment of the Accrued Benefits through the date of your death or the first day of your disability.        You shall have the right to resign at any time by giving the Company thirty (30) days’ notice of the  termination date, subject to the Company’s right, at its election, to reduce the duration of the notice  period upon notice to you, in which case the last day of the reduced notice period shall constitute your  employment termination date. The Company shall not have any further liability to you except for  payment of all Accrued Benefits due through the date of termination unless such resignation is for  Good Reason which shall be governed by the provisions below.    The Company may terminate your employment without Cause upon thirty (30) days’ notice, during  which notice period you will receive your full compensation and benefits.     If your employment is terminated without Cause or you resign for Good Reason, subject to  your execution and non-revocation of a release of claims in a form acceptable to the Company  in its sole discretion within 55 days following your termination of employment, you will be  entitled to receive, in addition to the Accrued Benefits, a severance payment (the “Non-CIC  Severance Payment”) equal to the better of (A) three (3) months salary plus one (1) month  for every full year of your employment by a Group Company (up to a maximum of twelve  (12) months) or (B) (i) a severance payment in accordance with the terms set forth on  Appendix A to this Offer Letter (the “Severance Policy”) based on your then-current position  as set forth therein and (ii) if you qualify for and timely elect continuation coverage under the  Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”), continued payment by the  Company of monthly contributions in respect of your coverage under the Company’s healthcare plan  for the number of months following the date of termination as set forth in the Severance Policy, in an  amount equal to the contribution the Company would have made if you had continued to be an active  employee (assuming the applicable rates in effect as of the date of your termination of employment);  provided that, the Company’s obligations under this clause (ii) shall terminate on the earlier of (x) the  date on which you enroll in a group health plan offered by another employer and (y) the date on which  you are no longer eligible for continuation coverage under COBRA; provided further that,  notwithstanding the foregoing, in the event such Company contributions, may, in the Company’s  reasonable view, result in tax or other penalties on the Company, this provision shall terminate and the  parties shall, in good faith, negotiate for a substitute provision that provides substantially a similar  benefit to you but does not result in such tax or other penalties.    Notwithstanding the above, if you experience a Qualifying Termination within the twelve (12) month  period after a Change in Control (a “Qualifying Change in Control Termination”), subject to your  execution and non-revocation of a release of claims in a form acceptable to the Company in  its sole discretion within 55 days following your termination of employment , you will be  entitled to receive, in addition to the Accrued Benefits, a severance payment (the “CIC  Severance Payment” and, together with the Non-CIC Severance Payment, the “Severance  Payment”) in accordance with the Severance Policy as applicable for a termination of  

 

  Vyne Therapeutics Inc.  520 U.S. Highway 22, Suite 204, Bridgewater, New Jersey 08807         employment that occurs following a change in control, (ii) a cash payment equal to your target  annual bonus for the year of termination multiplied by a fraction, the numerator of which is the number  of days you were employed with the Company during the calendar year in which the date of  termination occurs, and the denominator of which is 365 (the “Pro-rated Bonus”) and (iii) if you  qualify for and timely elect continuation coverage under COBRA, continued payment by the Company  of monthly contributions in respect of your coverage under the Company’s healthcare plan for the  number of months following the date of termination as set forth in the Severance Policy, in an amount  equal to the contribution the Company would have made if you had continued to be an active employee  (assuming the applicable rates in effect as of the date of your termination of employment); provided  that, the Company’s obligations under this clause (iii) shall terminate on the earlier of (x) the date on  which you enroll in a group health plan offered by another employer and (y) the date on which you are  no longer eligible for continuation coverage under COBRA; provided further that, notwithstanding the  foregoing, in the event such Company contributions, may, in the Company’s reasonable view, result  in tax or other penalties on the Company, this provision shall terminate and the parties shall, in good  faith, negotiate for a substitute provision that provides substantially a similar benefit to you but does  not result in such tax or other penalties.    Furthermore, notwithstanding the terms of the Company equity incentive plan under which your equity  awards are granted or any applicable award agreements, in the event of a Qualifying Change in Control  Termination, all of your outstanding, unvested Company employee stock options and unvested  restricted stock units, if any, shall become fully vested and any restrictions thereon shall lapse.      For the purpose of this Offer Letter, “Good Reason” means: (i) a material reduction in your base  salary; (ii) a material reduction in your target annual bonus opportunity; (iii) a relocation of your  principal place of employment by more than twenty-five  (25) miles provided that such relocation  increases your daily commute; or (iv) an adverse change in your position, including title, reporting  relationship(s), authority, duties or responsibilities; all of the above without your consent.  You must  provide notice of the existence of the Good Reason condition within thirty (30) days of the date you  learn of the condition, and the Company shall have a period of thirty (30) days during which it may  remedy the condition, and in case of full remedy such condition shall not be deemed to constitute  Good Reason hereunder.    For purposes of this Offer Letter, “Change in Control” shall have the meaning set forth in the  Company’s 2019 Equity Plan.  For the avoidance of doubt, the term Change in Control shall not include  a sale of assets, merger or other transaction effected primarily for the purpose of changing the domicile  of the Company.    Timing of Payment    The applicable Severance Payment and the Pro-rated Bonus (in the event of a Qualifying Change in  Control Termination) will be paid in a lump sum within sixty (60) days following the date of your  termination of employment subject to the provisions of Appendix A and as set forth below.      The payments and benefits under this Offer Letter are intended to qualify for exemptions from the  application of Section 409A of the Internal Revenue Code (“Section 409A”), and this Offer Letter will  be construed to the greatest extent possible as consistent with those provisions, and to the extent not  so exempt, this Offer Letter (and any definitions hereunder) will be construed in a manner that  complies with Section 409A to the extent necessary to avoid adverse taxation under Section 409A.    Notwithstanding anything to the contrary herein, to the extent required to comply with Section 409A,  a termination of employment shall not be deemed to have occurred for purposes of any provision of  

 

  Vyne Therapeutics Inc.  520 U.S. Highway 22, Suite 204, Bridgewater, New Jersey 08807         this Offer Letter providing for the payment of amounts or benefits upon or following a termination of  employment unless such termination is also a “separation from service” within the meaning of Section  409A.  Your right to receive any installment payments will be treated as a right to receive a series of  separate payments and, accordingly, each installment payment shall at all times be considered a  separate and distinct payment. Notwithstanding any provision to the contrary in this Offer Letter, if  you are deemed by the Company at the time of your separation from service to be a “specified  employee” for purposes of Section 409A, and if any of the payments upon separation from service set  forth herein and/or under any other agreement with the Company are deemed to be “deferred  compensation,” then, to the extent delayed commencement of any portion of such payments is required  in order to avoid a prohibited distribution under Section 409A and the related adverse taxation under  Section 409A, such payments shall not be provided to you prior to the earliest of (i) the expiration of  the six-month period measured from the date of separation from service, (ii) the date of your death or  (iii) such earlier date as permitted under Section 409A without the imposition of adverse taxation.    With respect to payments to be made upon execution of an effective release, if the release revocation  period spans two calendar years, payments will be made in the second of the two calendar years to the  extent necessary to avoid adverse taxation under Section 409A.       Miscellaneous    You represent that (i) there is no legal restriction and/or contractual restriction prohibiting you  from entering into an employment relationship with the Company, (ii) that by doing so you are not  violating any third party’s rights, including any undertaking entered into with any former employer,  and (iii) that you know that the Company is employing you based upon this statement.    A dispute under this Offer Letter shall be heard and governed by the procedural and substantive laws  of the State of New Jersey or of your primary workplace. BY SIGNING THIS OFFER LETTER  YOU AND THE COMPANY AGREE TO WAIVE ANY RIGHT TO A JURY TRIAL FOR ANY  DISPUTES ARISING OUT OF THIS OFFER LETTER.    This Offer Letter constitutes and expresses the entire agreement of the parties hereto with reference  to any of the matters or things herein provided for or herein before discussed or mentioned with  reference to your employment, and it cancels and replaces any and all prior understandings and  agreements between you and the Company, except the Non-Solicitation, Non-Competition,  Confidentiality and Intellectual Property Agreement attached hereto as Appendix B. All other  promises, representations, collateral agreements and understandings not expressly incorporated in  this Offer Letter are hereby superseded by this Offer Letter.    The Company may withhold from any amounts payable under this Offer Letter all federal, state, city  or other taxes as it is required to withhold pursuant to any applicable law, regulation or ruling.  Notwithstanding any other provision of this Offer Letter, the Company shall not be obligated to  guarantee any particular tax result for you with respect to any payment provided to you hereunder,  and you shall be responsible for any taxes imposed on you with respect to any such payment.    Without derogating from the above, you will be required to abide by the Company’s policies, rules  and procedures, as may be in effect from time to time, at the Company’s sole discretion, and that may  be modified or changed as circumstances warrant.      Prior to your commencement of work, you will be required to sign a Non-Solicitation, Non- Competition, Confidentiality and Intellectual Property Agreement, which is attached hereto as  

 

  Vyne Therapeutics Inc.  520 U.S. Highway 22, Suite 204, Bridgewater, New Jersey 08807         Appendix B. You will be bound by the terms of the document.    We are pleased to present this Offer Letter to you. Please sign below to indicate your acceptance of  this employment offer on the basis of the foregoing terms.      Sincerely,        /s/ David Domzalski  David Domzalski  Chief Executive Officer            I hereby confirm that I have carefully read and understood this offer of employment and I have accepted  it and entered into it of my own free will.          /s/ Iain Stuart_____  Dr. Iain Stuart       

 

  Vyne Therapeutics Inc.  520 U.S. Highway 22, Suite 204, Bridgewater, New Jersey 08807           Appendix A  SEVERANCE POLICY       Provision CEO SVP+ VP  Non-CIC  Severance  Non CIC- Severance  Trigger  A termination of employment (i) by the Company and its  subsidiaries without “Cause” or (ii) by the employee for “Good  Reason”  (each, a “Qualifying Termination).*  Cash Severance 1.0x base salary** 0.75x base salary** 0.5x base salary**  Benefits 12 months benefits  continuation  9 months benefits  continuation  6 months benefits  continuation  Equity  Treatment  Full vesting  acceleration of time- based awards  As provided in the applicable equity plan  and award agreement  CIC  Severance  Protection Period  12 months following a Change in Control***   CIC Severance  Trigger  Double trigger (i.e., a Qualifying Termination during the Protection  Period)    Cash Severance 1.5x (salary + target  bonus), plus pro-rata  target bonus**  1.0x (salary + target  bonus), plus pro-rata  target bonus**  0.5x (salary + target  bonus), plus pro-rata  target bonus**  Benefits 18 months benefits  continuation  12 months benefits  continuation  6 months benefits  continuation  Equity Treatment Double trigger full vesting acceleration of time-based awards  Excise Tax Best net provision       *“Cause” shall have the meaning set forth in the Company’s 2019 Equity Incentive Plan (the “2019  Plan”) and “Good Reason” shall have the meaning set forth in the Offer Letter.      **Amounts shall be paid in a cash lump sum within 60 days following the date of termination;  provided that, if (i) the employee was party to an employment agreement or other plan, agreement or  arrangement with the Company or any of its subsidiaries or affiliates prior to the effective date of  this severance policy that provided for severance payments and benefits upon a termination of  employment (each such employment agreement or other plan, agreement or arrangement, a “Prior  Agreement”) and (ii) the payments and benefits provided pursuant to this severance policy are  

 

  Vyne Therapeutics Inc.  520 U.S. Highway 22, Suite 204, Bridgewater, New Jersey 08807         determined to be “deferred compensation” for purposes of Section 409A of the Internal Revenue  Code or any successor provision thereto (the “Code”), then, to the extent necessary to avoid  accelerated taxation and/or tax penalties under Section 409A of the Code, the payments and benefits  provided pursuant to this severance policy shall be paid at the same time(s) and in the same form(s)  provided in the Prior Agreement, at all times, in accordance with Section 409A of the Code.     ***”Change in Control” shall have the meaning set forth in the 2019 Plan.  For the avoidance of  doubt, the consummation of the merger contemplated by that certain Agreement and Plan of Merger  by and among the Company, Foamix Pharmaceuticals Ltd. And Giants Merger Subsidiary Ltd.,  dated as of November 10, 2019 (as amended), shall not constitute a Change in Control for purposes  of this severance policy.           

 

  Vyne Therapeutics Inc.  520 U.S. Highway 22, Suite 204, Bridgewater, New Jersey 08807               Appendix B  Non-Solicitation, Non-Competition, Confidentiality and Intellectual Property Agreement    This Non-Solicitation, Non-Competition, Confidentiality and Intellectual Property Agreement  (“Agreement”), is made and entered into by and between, VYNE Pharmaceuticals Inc. (the  “Company”) and Dr. Iain Stuart (“you” and “your”).  The Company, together with its ultimate parent  and their respective affiliates and subsidiaries, are hereinafter referred to as the “Group Companies.”    The parties hereby agree to the following in exchange for your employment with the Company:    (a) Non-Competition. You recognize that your knowledge of the Confidential Information (as  defined below) and trade secrets of the Group Companies and your role in the Group Companies’  business may allow you to compete or to assist a third party to compete unfairly with the Group  Companies.     (i) During the term of this Agreement, and for a period of 12 months following the  termination of your employment with any member of the Group Companies (the “Restricted Period”),  you agree that you shall not, without the prior consent of the Company and its ultimate parent, directly  or indirectly, as an employee, executive, agent, principal, partner, stockholder, officer, director,  consultant, independent contractor, advisor, investor or any other representative, work with or without  compensation in any business that is developing or commercializes a product with a compound that is  the same or substantially similar to a compound being developed or sold by any member of the Group  Companies(each, a “Competitive Business”) within the same geographic territory in which you  operated during your last year of employment with any member of the Group Companies.     (ii) Necessary and Reasonable.  You acknowledge that this non-compete provision is  necessary and reasonable to protect Group Companies’  business interests.  You further acknowledge  that the Group Companies would suffer irreparable harm and other damage in the event of a breach of  this provision.  You agree that the term, scope and geographic area of the covenants contained herein  are reasonable.  However, if any court of competent jurisdiction determines that this covenant is  unenforceable as to the term, scope or geographic area then this covenant nevertheless shall be  enforceable by such court as to such shorter term, such lesser scope or within such lesser geographic  area as the court determines to be reasonable and enforceable.      (b) Non-Solicitation. You will not, in any manner whatsoever, directly or indirectly, without the  prior written consent of the Company and its ultimate parent, at any time during the Restricted Period:    (i)  induce or endeavor to induce (A) any employee of any member of the Group Companies to  leave employment with any member of the Group Companies, or (B) any consultant or  contractor of any member of the Group Companies to terminate its relationship as such with  any member of the Group Companies during any period of time that the business services  provided, directly or indirectly, by such consultant or contractor are exclusively or primarily  being provided to any member of the Group Companies, provided that this clause shall not  preclude customary non-targeted recruiting efforts or general solicitations that are not  specifically directed to, but which may have the effect of causing an employee, consultant or  contractor to leave the employment or arrangement with any member of the Group Companies;  

 

  Vyne Therapeutics Inc.  520 U.S. Highway 22, Suite 204, Bridgewater, New Jersey 08807         or    (ii)  employ or attempt to employ or assist any individual or other entity to employ any  employee of any member of the Group Companies or to retain any consultant or contractor  during any period of time that the business services provided, directly or indirectly, by such  consultant or contractor are exclusively or primarily being provided to any member of the Group  Companies, provided, that this clause shall not preclude an employer of yours from offering  employment or consulting or contracting services to anyone without your direct or indirect  assistance    (c) Confidentiality. You acknowledge that by reason of your employment with any member  of the Group Companies, you have had access to Confidential Information and trade secrets of the  Group Companies, and that such Confidential Information and trade secrets are essential components  of the business of the Group Companies, and are proprietary and would be of great value and benefit  to competitors of the Group Companies. “Confidential Information” is to be broadly defined and  includes anything respecting the Company and its affiliates or their respective businesses, customers,  supplier or operations, and which is not made readily available to the general public. You agree that  both during and after your employment with any member of the Group Companies, you will not  disclose to any individual or other entity, except in the proper course of your employment with any  member of the Group Companies, or use for your own purposes or for purposes other than those of  any member of the Group Companies, any Confidential Information or trade secrets of any member  of the Group Companies acquired by you. You agree that at all times after your employment with any  member of the Group Companies, you will hold in trust, keep confidential, and not publish, disclose  or otherwise disseminate to any third party or make any use of the Confidential Information of any  member of the Group Companies except for the benefit of the Group Companies and in the course of  employment with any member of the Group Companies. You further agree not to cause the  transmission, removal or transport of Confidential Information from the Group Companies’ place of  business (principal, remote or otherwise), whether by hard or electronic copy, without prior written  approval of the Company and its ultimate parent, except for the benefit of the Group Companies and  in the course of your employment relationship with any member of the Group Companies.  You  acknowledge that you are aware that the unauthorized disclosure of Confidential Information of any  member of the Group Companies may be highly prejudicial to the Group Companies’ interests, an  invasion of privacy and an improper disclosure of proprietary information. You agree, promptly and  without request, to deliver to and inform the Company and its ultimate parent of all documents and  data pertaining to your services to the any member of the Group Companies and the Confidential  Information of the Group Companies, whether prepared by you or otherwise coming into your  possession or control.  You will not retain any written or other tangible material containing any  information concerning or disclosing any of the Confidential Information of any member of the Group  Companies, including but not limited to any electronically stored data.    (i) If information enters the public domain, except as a result of a breach of this Section  (c) by you or a breach of another confidentiality agreement to which any member of the Group  Companies is a party, the information will not be deemed Confidential Information, or a trade secret  protected by this Section (c). If you are compelled by law to disclose Confidential Information or trade  secrets of any member of the Group Companies, pursuant to subpoena, an order from a court of  competent jurisdiction, or other applicable legal authority, you may disclose such Confidential  Information or trade secrets to the extent so required, but you will, if possible, (i) provide reasonable  advance notice of the subpoena, court order, or legal authority to the Company and its ultimate parent,  

 

  Vyne Therapeutics Inc.  520 U.S. Highway 22, Suite 204, Bridgewater, New Jersey 08807         and (ii) afford the Group Companies the reasonable opportunity to take legal action to contest,  challenge, narrow or otherwise limit or condition the disclosure.  (ii) Sanctions for Unauthorized Taking of Confidential Information. You recognize that the  unauthorized taking of the Group Companies’  Confidential Information could result in civil liability  and that willful misappropriation may result in an award against you for damages and attorney’s fees  and costs in collecting such damages.  The unauthorized taking of trade secrets is a crime and may be  punishable by imprisonment, or a fine, or both, and/or may result in civil liability, including, where  applicable, punitive or similar damages, under applicable federal and state trade secret laws.  (iii) Notice of Immunity Under the Economic Espionage Act of 1996, as amended by  the Defend Trade Secrets Act of 2016 ("DTSA"). Notwithstanding any other provision of this  Agreement:  (A) You will not be held criminally or civilly liable under any federal or  state trade secret law for any disclosure of a trade secret that: (1) is made: 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) is made in a complaint or  other document that is filed under seal in a lawsuit or other proceeding.    (B) If you file a lawsuit for retaliation by any member of the Group Companies for  reporting a suspected violation of law, you may disclose the Group Companies’  trade secrets to your attorney and use the trade secret information in the court  proceeding if you: (1) file any document containing the trade secret under seal;  and (2) do not disclose the trade secret, except pursuant to court order.    (d) Intellectual Property.   (i) You have attached hereto as Exhibit 1, a list describing all inventions, original works of  authorship, developments, improvements, copyrights and patents that were made or developed  by you prior to the date you sign this Agreement, that belong to you.  If such list is not attached  or is left blank, you represent that no such inventions exist.  (ii) You agree that all ideas, techniques, inventions, systems, business and marketing plans,  projections and analyses, discoveries, technical information, programs, prototypes,  copyrightable works of authorship, including without limitation software code, and similar  developments, improvements or creations developed, conceived, created, discovered, made, or  written by you in the course of or as the result, directly or indirectly, of the performance of your  employment with any member of the Group Companies (hereinafter called "Developments"),  and all related intellectual property rights, including but not limited to, writings and other works  of authorship, United States and foreign patents, mask works, copyright and trademark  registrations and other forms of intellectual property protection, shall be and remain the property  of the Group Companies.  You further agree to assign (or cause to be assigned) and do hereby  assign fully to the Group Companies all such Developments and any copyrights, patents, mask  work rights or other intellectual property rights relating thereto.  In the event copyrightable works  do not fall within the theory of works made for hire, you agree to assign, and do hereby assign,  all rights, title and interest therein, without further consideration, to the Group Companies.  You,  insofar as you have the right to do so, agree that you will execute or cause to be executed such  United States and foreign patents, mask works, copyright and trademark registrations and other  

 

  Vyne Therapeutics Inc.  520 U.S. Highway 22, Suite 204, Bridgewater, New Jersey 08807         documents and agreements and take such other action as may be desirable in the opinion of the  Group Companies to enable intellectual property, copyright and other forms of protection for  Developments to be obtained, maintained, renewed, preserved and protected throughout the  world by or on behalf of the Group Companies.    (iii) If any member of the Group Companies is unable, after exercising reasonable efforts, to  secure your signature on any application for patent, copyright, analogous registration, or other  documents regarding any legal protection regarding Developments or other works and  inventions, whether because of your physical or mental incapacity or for any other reason, you  hereby irrevocably designate and appoint the Group Companies and their duly authorized  officers and agents as your agent and attorney-in-fact to act for and on your behalf and to  execute and file any such application or applications or other documents and to do all other  lawfully permitted acts to further the prosecution and issuance of such patent, copyright or  trademark registrations or any other legal protection thereon with the same legal force and effect  as if executed by you.  (iv) Incorporation into Company Products.  You agree that if in the course of your employment  with any member of the Group Companies, you incorporate into any invention, service, or  product any invention, improvement, Development, concept, discovery or other proprietary  information owned by you or in which you have an interest, (i) you will inform the Company  and its ultimate parent, in writing, before incorporating such invention, improvement,  development, concept, discovery or other proprietary information into any invention, Service,  or Development; and (ii) the Group Companies are hereby granted and will have a  nonexclusive, royalty-free, perpetual, irrevocable, worldwide license to make, have made,  modify, use and sell such item as part of or in connection with such invention, services, or  Development.  You will not incorporate any invention, improvement, development, concept,  discovery or other proprietary information owned by any third party into any invention without  the Company's and its ultimate parent’s prior written permission.  (v) Subsequent Use Restrictions.  During the course of employment and during the Restricted  Period, you agree to promptly notify the Company and its ultimate parent of any inventions you  develop that are based on, relate to or are a derivative of Developments or Confidential  Information.  You agree that any invention or work involving you after the separation of your  employment shall be deemed to result from access to the Company’s Developments or  Confidential Information (including without limitation patentable inventions and copyrightable  works) if such invention or work: (i) arose from your work with any member of the Group  Companies; or (ii) is related to the business of the Group Companies and is made, created, used,  sold, exploited or reduced to practice, or an application for patent, trademark, copyright or other  proprietary protection is filed by you and/or with your significant aid by a third party, within  the Restricted Period.  (e) Disclosure of New Employment.  In light of your obligations under this Agreement,   you agree to disclose the name of any future employer to the Company and its ultimate parent in  writing (even if you intend to be self-employed), along with your future business contact information,  including name and full address of the new employer.  Where necessary to protect the Group  Companies’ interests, any member of the Group Companies may notify any future or prospective  employer of the existence of this Agreement and/or the terms and conditions of your employment  with any member of the Group Companies.   This obligation shall continue until the end of the time  periods under the Non-Competition and Non-Solicitation provisions above.     

 

  Vyne Therapeutics Inc.  520 U.S. Highway 22, Suite 204, Bridgewater, New Jersey 08807         (f) Cooperation.  You shall provide reasonable cooperation in connection with any legal  action or proceeding (or any appeal from any action or proceeding) which relates to events during  your employment hereunder. The Company shall reimburse you for your reasonable travel expenses  incurred in connection with the foregoing, in accordance with the Company’s policies and subject to  the delivery of reasonable support for such expenses.      (g)  Restrictions Reasonable.  You confirm that all restrictions and covenants in this  Agreement are reasonable and valid, and waive all objections to and defenses to the strict enforcement  thereof.    (h) Survival of Restrictions.   This Agreement shall survive the termination of the Offer  Letter between you and the Company and the termination of your employment with any member of  the Group Companies, whether such termination is voluntary or involuntary, and regardless of the  reason(s) for such termination.       (i) Remedies.  In the event of breach or threatened breach by you of any provision of this  Agreement, any member of the Group Companies shall be entitled to (i) injunctive relief by temporary  restraining order, preliminary injunction, and/or permanent injunction, (ii) recovery of the attorneys’  fees and costs incurred by any member of the Group Companies in obtaining such relief, and (iii) any  other legal and equitable relief to which it may be entitled, including any and all monetary damages  which any member of the Group Companies may incur as a result of said breach or threatened breach.   Injunctive relief shall not be the exclusive relief and may be in addition to any other relief to which  any member of the Group Companies would otherwise be entitled.  The existence of any cause of  action by you against the Company shall not constitute a defense to enforcement of the restrictions on  you created by this Agreement.  If you fail to comply with this Agreement during the Restricted Period,  the time period for that the Restricted Period will be extended by one day for each day that you are  found to have violated this Agreement, up to a maximum extension of twelve (12) months.  In the  event that a court finds the restrictions on you in this Agreement are unenforceable as written, then the  parties shall consent to the reformation of the Agreement to make it enforceable to protect the interests  of the Group Companies to the maximum extent legally allowed.      (j) Parties Benefited; Assignments.  This Agreement shall inure to the benefit of the Group  Companies’ owners, successors, assigns and affiliates, and may be assigned to and enforced by any of  the foregoing.  Neither this Agreement nor any rights or obligations hereunder may be assigned by  you.    (k) Notices.  Any notice required or permitted by this Agreement shall be in writing sent by  personal delivery, or by registered or certified mail, return receipt requested, addressed to the Company  at its then principal office, or to you at your last known address, or to such other address or addressees  as any party may from time to time specify in writing.  Notices shall be deemed given when received.    (l) Governing Law, Jurisdiction and Venue.  This Agreement and any issues arising from it  or regarding its provisions shall be governed by and construed in accordance with the substantive and  procedural laws of the state of your primary workplace without reference to such jurisdiction’s choice  of law rules.    (m) Severability.  The provisions of this Agreement are severable so that in the event any  

 

  Vyne Therapeutics Inc.  520 U.S. Highway 22, Suite 204, Bridgewater, New Jersey 08807         provision(s) in this Agreement is held to be illegal or unenforceable by any court or agency of  competent jurisdiction, or by operation of any applicable law, the remaining terms of this Agreement  shall remain valid and in full force and effect.  Further, such court or agency shall modify the offending  provision to conform to the most expansive permissible reading under the law to protect the interests  of the Group Companies.    (n) No Waiver.  No waiver of any breach or default hereunder shall be considered valid  unless in writing and signed by the party giving such waiver, and no waiver shall be deemed a waiver  of any subsequent breach or default of the same or similar nature.  No failure on the part of any party  to exercise, and no delay in exercising, any right, remedy, power or privilege hereunder shall operate  as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege  hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy,  power or privilege.    (o)  Comprehension; Consultation with Counsel.  You acknowledge having read and  understood this Agreement and further acknowledge being hereby advised, by this paragraph, to  consult independent legal counsel. Accordingly, you acknowledge that you are voluntarily entering  into this Agreement of your own volition and not under duress.    (p) Waiver of Jury Trial.    YOU AND THE GROUP COMPANIES KNOWINGLY AND WILLINGLY WAIVE ANY RIGHT  TO A TRIAL BY JURY IN ANY DISPUTE ARISING OUT OF OR RELATING TO THIS  AGREEMENT.       

 

  Vyne Therapeutics Inc.  520 U.S. Highway 22, Suite 204, Bridgewater, New Jersey 08807           THE PARTIES ACKNOWLEDGE THAT THEY HAVE READ AND UNDERSTAND THIS  AGREEMENT, THAT THEY HAD THE OPPORTUNITY TO CONSULT WITH COUNSEL IF  THEY SO CHOSE, AND THAT THEY ENTER INTO THIS AGREEMENT FREELY AND  VOLUNTARILY.            /s/ Iain Stuart_________   Dr. Iain Stuart              VYNE Pharmaceuticals Inc.        By: /s/ David Domzalski___________    David Domzalski, Chief Executive Officer

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