Document:

Exhibit 10.2 

 

 

 

 

Friday,
February 21, 2020

 

Re:        Board
Member Agreement

 

Praveen
Tyle

 

Dear
Praveen,

 

GI
Dynamics, Inc. (the “Company”) is pleased to invite you to serve as a member of the Company’s board of directors
(the “Board”). If you accept this invitation, your membership on the Board will commence upon your formal election
to the Board, which the Company expects to occur as soon as practicable following your acceptance. The initial board vote and
approval will be followed by the traditional vote of all shareholders at the next Annual General Meeting or an interim meeting
should one be scheduled.

 

You
are being invited to join the Board because of your reputation and experience in areas that relate to the Company’s business
and strategy. The Company expects that, as a member of the Board, you will contribute to the success of the Company by participating
in meetings of the Board and providing the Company with advice and guidance consistent with your role as a member of the Board.
Board meetings are generally expected to occur up to 4-5 times a year on a primarily quarterly basis. Board meetings alternate
between in-person and telephonic. Committee meetings largely occur on a telephonic basis.

 

You
will receive an annual retainer of $50,000 payable in arrears in calendar quarterly installments of $12,500; your first partial
quarter will be paid on a pro rata basis. To the extent that you are appointed to any formal board committee, you will also receive
compensation as set forth below. All amounts shown are the annual rate, which will be divided by 4 for quarterly payments, or
prorated for any partial quarter:

 

o  
Audit Committee

		■
                                            Chair:	$15,000

		■
                                            Member:	$3,000

o  
Compensation Committee

		■
                                            Chair:	$10,000

		■
                                            Member:	$2,000

		o	Nominating
                                         & Governance Committee

		■
                                            Chair:	$5,000

		■
                                            Member:	$1,000

 

    	GI Dynamics, Inc.	Board of Directors Offer Letter: Praveen Tyle
	1

     

    

 

 

 

The
Company will reimburse you for the reasonable out-of-pocket expenses incurred in attending meetings of the Board and of any committee
on which you may serve upon submission by you of reasonable supporting documentation.

 

Following
your appointment by the Board as a Director of the Company and approval by the Board and stockholders of the Company, you will
be issued an option to purchase up to 30,000 shares of the Company’s common stock subject to shareholder approval at the
Company’s Annual General Meeting in 2020. These option shares shall vest on the first anniversary of the date of grant (subject
to your continued service to the Company as a Director). Annually, subject to approval by the Board and stockholders of the Company
at subsequent Annual General Meetings, you will be issued an equity award, initially targeted to be an option to purchase up to
30,000 shares of the Company’s common stock. These option shares shall vest in full on the first anniversary of the date
of grant (subject to your continued service to the Company as a Director). All options shall be exercisable at a price per share
equal to the fair market value of the Company’s common stock on the date of grant of the option (as determined by the Board
in accordance with Section 409A of the Internal Revenue Code of 1986, as amended). The options that you receive hereunder shall
be subject to the terms of a non-qualified stock option agreement to be executed by you and the Company. In the event that the
Company is subject to a change in control, the option shares shall immediately vest and shall be fully exercisable.

 

The
Company has adopted provisions in its Certificate of Incorporation and Bylaws to indemnify directors. You and the Company will
also enter into an Indemnification Agreement in customary form which will set forth the terms and conditions of the Company’s
obligations to indemnify you. For the avoidance of doubt, for the duration of your service as a director of the Company, and thereafter
for so long as you shall be subject to any pending or possible liability or expense for which indemnification may be provided
in accordance with the Company’s customary indemnification agreement to be entered into between you and the Company, the
Company shall use commercially reasonable efforts (taking into account the scope and amount of coverage available relative to
the cost thereof) to cause to be maintained in effect policies of directors’ and officers’ liability insurance providing
coverage for directors and/or officers of the Company that is at least substantially comparable in scope and amount to that provided
by the Company’s current policies of directors’ and officers’ liability insurance.

 

As
a member of the Board, you agree to hold in confidence and trust and to act in a fiduciary manner with respect to all confidential
information provided to you by the Company or other members of the Board. You acknowledge that the Company and the Board reserves
the right to withhold any information and to exclude you from any portion of a Board meeting if such information or attendance
could reasonably be expected to result in a conflict of interest with your duties to a third party or adversely affect the attorney-client
privilege between the Company and its counsel.

 

    	GI Dynamics, Inc.	Board of Directors Offer Letter: Praveen Tyle
	2

     

    

 

 

 

Nothing
in this invitation or the stock option or indemnification agreements should be construed to interfere with or otherwise restrict
in any way the rights of the Company and the Company's stockholders to remove any individual from the Board at any time in accordance
with the provisions of applicable law.

 

We
hope that you find the foregoing terms acceptable. You may indicate your agreement with these terms and accept this invitation
by signing and dating this letter in the space provided below and returning it to me.

 

If
you would like to set up a call so I can answer any questions you might have, I am available in the coming days at your convenience.

 

On
behalf of the Company’s Board, we look forward to working with you.

 

	 	Very truly yours,
	 	 
	 	/s/
    Dan Moore
	 	Dan Moore
	 	Chairman of the Board of Directors
	 	GI Dynamics, Inc.

 

Agreed
to and Accepted:

 

/s/
Praveen Tyle

 

Praveen
Tyle

 

Dated:
2/22/2020

 

 

 

	GI Dynamics, Inc.	Board of Directors Offer Letter: Praveen Tyle
	3mnlo-ex44_366.htm

 

Exhibit 4.4

DESCRIPTION OF SECURITIES REGISTERED UNDER SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934

As of December 31, 2019, Menlo Therapeutics, Inc. (“Menlo”) 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 “MNLO.”  

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, the voting agreement to which we and certain of our stockholders are parties 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, amended and restated bylaws and voting agreement, copies of which are incorporated by reference as Exhibits 3.1, 3.2 and 2.4, respectively, to our Annual Report on Form 10-K.

General

Our amended and restated certificate of incorporation authorizes 300,000,000 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.  

Voting Agreement

 

 

In connection with the entry into that certain Agreement and Plan of Merger, dated as of November 10, 2019, by and between Menlo, Foamix Pharmaceuticals Ltd. (“Foamix”), and Giants Merger Subsidiary Ltd. (as may be amended and restated from time to time, the “Merger Agreement”), Foamix entered into voting agreements, dated November 10, 2019 (the “Menlo Voting Agreements”), with certain significant stockholders of Menlo and the Chief Executive Officer of Menlo (collectively, the “Menlo Voting Parties”), pursuant to which each Menlo Voting Party has agreed, among other things, to: (i) vote its beneficially owned shares of Menlo common stock as of the record date (a) in favor of the issuance of shares of Menlo common stock, the change of control of Menlo resulting from the merger and the other transactions contemplated by the Merger Agreement and (b) against any action or agreement that would reasonably be expected, to impede, interfere with, delay, or postpone the transactions contemplated by the Merger Agreement. Each Menlo Voting Agreement will automatically terminate upon the earliest to occur of (A) the consummation of the merger, (B) the termination of the Merger Agreement pursuant to and in compliance with its terms prior to the closing of the merger, (C) a change of recommendation of the board of directors of Foamix or board of directors of Menlo in accordance with the Merger Agreement, (D) the parties’ mutual written agreement to terminate the Menlo Voting Agreement or (E) any amendment to the Merger Agreement without the prior written consent of the applicable Menlo Voting Party that (i) decreases the merger consideration or changes the form of the merger consideration or (ii) otherwise amends the Merger Agreement in a manner materially adverse to the applicable Menlo Voting Party relative to the other stockholders of Menlo (excluding any amendments affecting directors, officers or employees of Menlo in their capacities as such who are stockholders of Menlo).

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.

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