Document:

Exhibit 10.2

 

EXECUTION VERSION

 

NEOS THERAPEUTICS, INC.

 

AMENDMENT AND WAIVER

 

This Amendment and Waiver, effective as of February 5, 2016 (the “Amendment”), is executed by the undersigned Investors and Neos Therapeutics, Inc., a Delaware corporation (the “Company”).  Reference is hereby made to that certain Amended and Restated Investor Rights Agreement, dated as of June 9, 2015 (the “Rights Agreement”), by and among the Company and the investors listed on Exhibit A thereto (each, an “Investor”).  Capitalized terms used herein that are not otherwise defined shall have the meaning ascribed thereto in the Rights Agreement.

 

WHEREAS, Section 6.6 of the Rights Agreement may be amended or terminated and the observance of any term thereof may be waived (either generally or in a particular instance and either retroactively or prospectively) only by a written instrument executed by (i) the Company and (ii) the holders of a majority of the then outstanding shares of Series B Preferred Stock, Series B-l Preferred Stock and Series C Preferred Stock, acting together as a single class held by the Investors.

 

WHEREAS, there are no outstanding shares of Series B Preferred Stock, Series B-l Preferred Stock and Series C Preferred Stock since all such shares automatically converted into shares of Common Stock of the Company upon the consummation of the IPO;

 

WHEREAS, the Company and the Investors intended for any waiver or amendment of the Rights Agreement pursuant to Section 6.6 following conversion of the Series B Preferred Stock, Series B-l Preferred Stock and Series C Preferred Stock to require the approval of (i) the Company and (ii) the holders of a majority of the Registrable Securities then outstanding which are held by Investors who held shares of Series B Preferred Stock, Series B-l Preferred Stock and Series C Preferred Stock immediately prior to the consummation of the IPO;

 

WHEREAS, the Company and, to the extent required, the undersigned Investors wish, on behalf of themselves and all other Investors, to amend Section 6.6 of the Rights Agreement to clarify that the Rights Agreement may be amended by the (i) Company and (ii) the holders of a majority of the Registrable Securities then outstanding which are held by Investors who held shares of Series B Preferred Stock, Series B-l Preferred Stock and Series C Preferred Stock immediately prior to the consummation of the IPO;

 

WHEREAS, Section 2.2 of the Rights Agreement provides that in the event the Company determines to register any of its stock or other securities under the Securities Act, in connection with a public offering of such securities, the Company shall, subject to the terms and limitations in the Rights Agreement, include in such registration Registrable Securities owned by each holder to the extent requested by such holder (the “Registration Rights”);

 

WHEREAS, the Company is requesting to the extent required that pursuant to Section 6.6 of the Rights Agreement, as amended by this Amendment, the Investors constituting the holders of a majority of the Registrable Securities then outstanding which are held by Investors who held shares of Series B Preferred Stock, Series B-l Preferred Stock and Series C Preferred Stock immediately prior to the consummation of the IPO, as of the date hereof, waive their Registration Rights, rights to notices and any related rights with respect to the currently contemplated registration of common stock to be issued by the Company pursuant to a registration statement on Form S-1 filed by the Company on January 29, 2016  and one or more additional registration statements pursuant to Rule 462(b) of the Securities Act with respect thereto (collectively, the “Registration”);

 

 

WHEREAS, the undersigned Investor wishes, on behalf of itself and, to the extent applicable, all other holders, to waive its Registration Rights pursuant to Section 6.6 of the Rights Agreement and any related rights with respect to the Registration; and

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and, to the extent required, the undersigned investors hereby agree as follows:

 

1.                                      The first paragraph of Section 6.6 of the Rights Agreement is hereby deleted in its entirety and replaced as follows:

 

“6.6                         Amendment, Termination and Waivers.  This Agreement may be amended or terminated and the observance of any term hereof may be waived (either generally or in a particular instance and either retroactively or prospectively) only by a written instrument executed by (i) the Company and (ii) the holders of a majority of the Registrable Securities then outstanding which are held by Investors who held shares of Series B Preferred Stock, Series B-l Preferred Stock and Series C Preferred Stock immediately prior to the consummation of the IPO. Notwithstanding the foregoing:”

 

2.                                      Section 2.12 of the Rights Agreement is hereby deleted in its entirety and replaced as follows:

 

“2.12                  Termination of Registration Rights.  The right of any Holder to request registration or inclusion of Registrable Securities in any registration pursuant to Section 2.1 or Section 2.2 shall terminate upon the earlier of (a) such time as Rule 144 or another similar exemption under the Securities Act is available for the sale of all of such Holder’s shares without limitation during a three-month period without registration, and (b) the fifth anniversary of the IPO.”

 

3.                                      The Company and, to the extent required, the undersigned Investors, pursuant to the terms of the Rights Agreement, as amended by this Amendment, hereby waives, and agrees to waive, on behalf of themselves and, to the extent applicable, all other holders, any and all rights under the Rights Agreement with respect to the Registration, including, without limitation, the Registration Rights, any rights to receive notice of the Registration or notice of the Registration Rights and any rights to include any Registrable Securities in the Registration.

 

4.                                      Each undersigned Investor hereby certifies with respect to itself that the number of shares of Common Stock of the Company set forth on the signature page hereto represent all of the outstanding capital stock of the Company owned by such Investor as of the date hereof.

 

5.                                      Except as expressly provided herein, all other terms and conditions in the Rights Agreement shall remain in full force and effect, and this Amendment shall be effective as of the date hereof.

 

[Signature Page to Follow]

 

 

NEOS THERAPEUTICS, INC.

 

 

	
By:
    	
/s/Richard Eisenstadt
    	
 
    
	
Name:
    	
Richard I. Eisenstadt
    	
 
    
	
Title:
    	
Chief Financial Officer
    	
 
    

 

[Signature Page to Neos Therapeutics, Inc. Registration Rights Waiver]

 

 

INVESTOR:

 

	
If   an individual, use the following:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/Jack   Schuler
    	
 
    	
Number   of Shares Owned: 1,071,652
    
	
Name:
    	
Jack   W. Schuler
    	
 
    	
1,044,578 from B, B-1, C
    
	
Date:
    	
February 1,   2016
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
If   an entity, use the following:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
ENTITY   NAME:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/Jack   Schuler
    	
 
    	
Number   of Shares Owned: 41,665
    
	
Name:
    	
JS   Grandchildren 2010 Continuation Trust
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    	
 
    
	
Date:
    	
February 1,   2016
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
ENTITY   NAME:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/Jack   Schuler
    	
 
    	
Number   of Shares Owned: 41,665
    
	
Name:
    	
Schuler   Grandchildren LLC
    	
 
    	
 
    
	
Date:
    	
February 1,   2016
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
ENTITY   NAME:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/Jack   Schuler
    	
 
    	
Number   of Shares Owned: 41,665
    
	
Name:
    	
Tanya   Eve Schuler Trust
    	
 
    	
 
    
	
Date:
    	
February 1,   2016
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
ENTITY   NAME:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/Jack   Schuler
    	
 
    	
Number   of Shares Owned: 41,665
    
	
Name:
    	
Therese   Heidi Schuler Trust
    	
 
    	
 
    
	
Date:
    	
February 1,   2016
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
ENTITY   NAME:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/Jack   Schuler
    	
 
    	
Number   of Shares Owned: 41,665
    
	
Name:
    	
Hans   Schuler Trust
    	
 
    	
 
    
	
Date:
    	
February 1,   2016
    	
 
    	
 
    

 

[Signature Page to Neos Therapeutics, Inc. Registration Rights Waiver]

 

 

INVESTOR:

 

	
If   an individual, use the following:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Number   of Shares Owned:
    
	
Name:
    	
 
    	
 
    
	
Date:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
If   an entity, use the following:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
ENTITY   NAME: JOHN PATIENCE TRUST
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/John   Patience
    	
 
    	
Number   of Shares Owned:   467,848 B, B-1, C
    
	
Name:
    	
John   Patience
    	
 
    	
 
    
	
Title:
    	
Trustee
    	
 
    	
 
    
	
Date:
    	
2/1/2016
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
ENTITY   NAME: PATIENCE ENTERPRISE L.P.
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/John   Patience
    	
 
    	
Number   of Shares Owned:   229,166 B, B-1, C
    
	
Name:
    	
John   Patience
    	
 
    	
 
    
	
Title:
    	
Trustee
    	
 
    	
 
    
	
Date:
    	
2/1/2016
    	
 
    	
 
    

 

[Signature Page to Neos Therapeutics, Inc. Registration Rights Waiver]

 

 

INVESTOR:

 

	
If   an individual, use the following:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/Alan   Heller
    	
 
    	
Number   of Shares Owned:  212,789 from B, B-1, C
    
	
Name:
    	
Alan   Heller
    	
 
    	
 
    
	
Date:
    	
2-1-16
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
If   an entity, use the following:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
ENTITY   NAME:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
Number   of Shares Owned:
    
	
Name:
    	
 
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    	
 
    
	
Date:
    	
 
    	
 
    	
 
    

 

[Signature Page to Neos Therapeutics, Inc. Registration Rights Waiver]

 

 

INVESTOR:

 

	
If   an individual, use the following:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/   Greg Robitaille
    	
 
    	
Number   of Shares Owned: 22,115 from B/B1/C
    
	
Name:
    	
Greg   Robitaille
    	
 
    	
 
    
	
Date:
    	
Feb. 1,   2016
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
If   an entity, use the following:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
ENTITY   NAME:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
Number   of Shares Owned:
    
	
Name:
    	
 
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    	
 
    
	
Date:
    	
 
    	
 
    	
 
    

 

[Signature Page to Neos Therapeutics, Inc. Registration Rights Waiver]

 

 

INVESTOR:

 

	
If   an individual, use the following:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Number   of Shares Owned:
    
	
Name:
    	
 
    	
 
    
	
Date:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
If   an entity, use the following:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
ENTITY   NAME: Burrill Life Sciences Capital Fund III, L.P.
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/Caley   Castelein
    	
 
    	
Number   of Shares Owned: 1,282,737
    
	
Name:
    	
Caley   Castelein
    	
 
    	
 
    
	
Title:
    	
Managing   Director of the General Partner
    	
 
    	
 
    
	
Date:
    	
2/1/2016
    	
 
    	
 
    

 

[Signature Page to Neos Therapeutics, Inc. Registration Rights Waiver]

 

 

INVESTOR:

 

	
If   an individual, use the following:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Number   of Shares Owned:
    
	
Name:
    	
 
    	
 
    
	
Date:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
If   an entity, use the following:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
ENTITY   NAME: SIU Capital LLC
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Ralph Iannelli
    	
 
    	
Number   of Shares Owned:
    
	
Name:
    	
Ralph   Iannelli
    	
 
    	
 
    
	
Title:
    	
Manager
    	
 
    	
 
    
	
Date:
    	
2/2/2016
    	
 
    	
 
    

 

[Signature Page to Neos Therapeutics, Inc. Registration Rights Waiver]

 

 

INVESTOR:

 

	
If   an individual, use the following:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Number   of Shares Owned:
    
	
Name:
    	
 
    	
 
    
	
Date:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
If   an entity, use the following:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
ENTITY   NAME: Esssex Capital Corporation
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Ralph Iannelli
    	
 
    	
Number   of Shares Owned:
    
	
Name:
    	
Chief   Executive Officer
    	
 
    	
 
    
	
Title:
    	
Manager
    	
 
    	
 
    
	
Date:
    	
2/2/2016
    	
 
    	
 
    

 

[Signature Page to Neos Therapeutics, Inc. Registration Rights Waiver]

 

 

INVESTOR:

 

	
If   an individual, use the following:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Number   of Shares Owned:
    
	
Name:
    	
 
    	
 
    
	
Date:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
If   an entity, use the following:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
ENTITY   NAME: KF Investment Partners L.P.
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Ralph Iannelli
    	
 
    	
Number   of Shares Owned:
    
	
Name:
    	
Ralph   Iannelli
    	
 
    	
 
    
	
Title:
    	
General   Partner
    	
 
    	
 
    
	
Date:
    	
2/2/2016
    	
 
    	
 
    

 

[Signature Page to Neos Therapeutics, Inc. Registration Rights Waiver]

 

 

INVESTOR:

 

	
If   an individual, use the following:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Number   of Shares Owned:
    
	
Name:
    	
 
    	
 
    
	
Date:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
If   an entity, use the following:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Presidio   Partners 2007, L.P.
    	
 
    	
 
    
	
By:   Presidio Partners 2007, GP, L.P.,
    	
 
    	
 
    
	
Its General Partner
    	
 
    	
 
    
	
By:   Presidio Partners 2007, GP, LLC,
    	
 
    	
 
    
	
Its General Partner
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   James Watson
    	
 
    	
Number   of Shares Owned: 1,636,372
    
	
Name:
    	
James   F. Watson
    	
 
    	
 
    
	
Title:
    	
Manager
    	
 
    	
 
    
	
Date:
    	
February 3,2016
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Presidio   Partners 2007 (Parallel, L.P.)
    	
 
    	
 
    
	
By:   Presidio Partners 2007, GP, L.P.,
    	
 
    	
 
    
	
Its General Partner
    	
 
    	
 
    
	
By:   Presidio Partners 2007, GP, LLC,
    	
 
    	
 
    
	
Its General Partner
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   James Watson
    	
 
    	
Number   of Shares Owned: 41,956
    
	
Name:
    	
James   F. Watson
    	
 
    	
 
    
	
Title:
    	
Manager
    	
 
    	
 
    
	
Date:
    	
February 3,2016
    	
 
    	
 
    

 

[Signature Page to Neos Therapeutics, Inc. Registration Rights Waiver]Exhibit

EXHIBIT 10.16

OUTSIDE DIRECTOR COMPENSATION

Pursuant to our 2015 Non-Employee Director Compensation Program, directors who are not our employees or employees of our subsidiaries receive an annual retainer fee of $100,000. The independent Lead Director receives an additional retainer fee of $40,000.  Chairpersons of the Compensation Committee and the Audit Committee receive an additional $20,000 retainer fee, and the Chairperson of the Governance & Nominating Committee receives an additional $15,000 retainer fee.  Non-employee directors also receive retainer fees for membership on the Board of Directors’ standing committees and Executive Committee. Committee member retainers are $5,000 for Governance & Nominating Committee members, $10,000 for Compensation Committee members and $15,000 for Audit Committee and Executive Committee members. Directors receive no additional compensation for participation in Board of Directors’ or committee meetings. Directors are, however, reimbursed for travel and other expenses related to attendance at these meetings as well as travel and other expenses related to attendance at educational seminars approved in advance by the Governance & Nominating Committee.
Equity awards are granted to non-employee Directors from time to time pursuant to our 2010 Long Term Compensation Plan. These grants are typically made following a Director’s initial election to the Board and each time the Director is re-elected by the shareholders to serve a new term. The annual awards, which are comprised of restricted shares, typically have a “grant date fair value” of approximately $100,000, calculated in accordance with FASB ASC Topic 718. The restricted shares vest on the first anniversary of the date of grant.

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