Document:

exhibit1013-zerondaxexec

  Vyne Therapeutics Inc.  520 U.S. Highway 22, Suite 204, Bridgewater, New Jersey 08807                 March 15, 2022      Dear Tyler,    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 15, 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  th is  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 letter dated May 11, 2021, April 8, 2019, June 7, 2021   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:    We are pleased to offer you the position of VYNE’s Chief Financial Officer (“CFO”) and Treasurer.  You will report to VYNE’s Chief Executive Officer, David Domzalski or his designee.  As the CFO, you will work closely with the CEO and leadership team to craft the long-term  financing and corporate development strategy and play an important role in guiding the Group  Companies in its next growth phase.  The CFO will be a partner to the CEO in communicating the  Group Companies’ strategy to VYNE’s board of directors (the “Board”), investors and other  stakeholders.  The CFO will execute the financial strategy by assessing and leading the execution of  all capital raising for the Group Companies and will provide financial and business expertise in  assessing and crafting the financial structures of licensing and strategic partnerships/collaborations.   The CFO will be the most senior executive responsible for overseeing and directing the financial,  investor relations, supply chain and IT functions of VYNE. The CFO will be relied upon as a  financial thought leader in the Group Companies’ business and as such, be a trusted sounding board  to the CEO and leadership team. You will play a critical role in the Group Companies’ strategic  positioning and will lead the finance, investor relations, supply chain and IT organizations to ensure  they can meet the future needs and direction of the Group Companies.   The CFO will approach the role as a strategic one as well as hands-on to ensure the organizations  they oversee constantly seek improvement, with a balance of superior technical, operational and  leadership skills. As the CFO you must be a strong communicator, collaborator and able to fit in with  an entrepreneurial environment that is dynamic and results oriented.     Specific responsibilities as the CFO shall be as mutually agreed between you and the CEO, and shall  include strategic and tactical business growth and business development, financing and fundraising  matters, financial, tax and risk management for VYNE, participation on board of directors meetings,  

 

  Vyne Therapeutics Inc.  520 U.S. Highway 22, Suite 204, Bridgewater, New Jersey 08807         general management of financial matters for VYNE and investor and public relations.       Compensation    You will be paid a base salary at an annual rate of $340,000, 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 VYNE’s Chief Executive Officer (CEO), under the framework  of the applicable bonus plan of VYNE 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    

 

  Vyne Therapeutics Inc.  520 U.S. Highway 22, Suite 204, Bridgewater, New Jersey 08807       925825-NYCSR05A - MSW  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.      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, (i) 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 that  corresponds to your severance payment, 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  

 

  Vyne Therapeutics Inc.  520 U.S. Highway 22, Suite 204, Bridgewater, New Jersey 08807         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, (i) a severance payment  (the “CIC Severance Payment” and, together with the Non-CIC Severance Payment, the  “Severance Payment”) that is equal to the better of: (A) twelve (12) months of your then  current base salary or (B) a severance payment in accordance with the Severance Policy as  applicable for a termination of employment that occurs following a change in control, plus 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 (ii) 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  that corresponds to your severance payment, 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.    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 (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.      

 

  Vyne Therapeutics Inc.  520 U.S. Highway 22, Suite 204, Bridgewater, New Jersey 08807         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  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,  

 

  Vyne Therapeutics Inc.  520 U.S. Highway 22, Suite 204, Bridgewater, New Jersey 08807         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  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/ Tyler Zeronda___________  Tyler Zeronda      

 

  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 VYNE’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  

 

  Vyne Therapeutics Inc.  520 U.S. Highway 22, Suite 204, Bridgewater, New Jersey 08807         Agreement”) and (ii) the payments and benefits provided pursuant to this severance policy are  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.          

 

  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 Tyler Zeronda (“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 directly competitive with, the business of  the Group Companies (i.e., any 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  

 

  Vyne Therapeutics Inc.  520 U.S. Highway 22, Suite 204, Bridgewater, New Jersey 08807         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; 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  

 

  Vyne Therapeutics Inc.  520 U.S. Highway 22, Suite 204, Bridgewater, New Jersey 08807         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, 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.   

 

  Vyne Therapeutics Inc.  520 U.S. Highway 22, Suite 204, Bridgewater, New Jersey 08807         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 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  

 

  Vyne Therapeutics Inc.  520 U.S. Highway 22, Suite 204, Bridgewater, New Jersey 08807         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.     (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.  

 

  Vyne Therapeutics Inc.  520 U.S. Highway 22, Suite 204, Bridgewater, New Jersey 08807           (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  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/ Tyler Zeronda_____   Tyler Zeronda              VYNE Pharmaceuticals Inc.        By: /s/ David Domzalski___    David Domzalski, Chief Executive OfficerEX-4.1

  Exhibit 4.1

  DESCRIPTION OF SECURITIES

  Destination XL Group, Inc. (the “Company,” “us,” “we,” or “our”) currently have one class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended, our common stock.

  Description of Common Stock

  The following description of our common stock is not complete.  You should refer to the applicable provisions of our Restated Certificate of Incorporation (“Charter”) and our Fourth Amended and Restated By-Laws (“By-Laws”), each of which are incorporated by reference as an exhibit to the Annual Report on Form 10-K of which this Exhibit 4.1 is a part. We encourage you read our Charter, our By-Laws and the applicable provisions of the Delaware General Corporation Law for additional information.

  The Company is currently authorized to issue up to 125,000,000 shares of common stock, par value $0.01 per share.  

   

  Dividends

  Subject to the prior rights of any series of preferred stock, which may from time to time be outstanding, the holders of our common stock are entitled to receive such dividends, if any, as may be declared from time to time by our board of directors out of legally available funds. In the event we are liquidated, dissolved or our affairs are wound up, after we pay or make adequate provision for all of our known debts and liabilities, each holder of common stock will receive dividends pro rata out of assets that we can legally use to pay distributions, subject to any rights that are granted to the holders of any class or series of preferred stock.

  Voting Rights

  Each holder of our common stock is entitled to one vote per share on all matters submitted to a vote of stockholders.  Generally, a matter submitted for stockholder action shall be approved if the votes cast “for” the matter exceed the votes cast “against” such matter, unless a greater or different vote is required by statute, any applicable law or regulation, or our Charter or By-Laws. Other than in a contested election where directors are elected by a plurality vote, a director nominee shall be elected to the board by the majority of the votes properly cast at a meeting of stockholders at which a quorum is present. 

  Other Rights

  Subject to the preferential rights of any other class or series of stock, all shares of common stock have equal dividend, distribution, liquidation and other rights, and have no preference, appraisal or exchange rights, except for any appraisal rights provided by Delaware law. Furthermore, holders of common stock have no conversion, sinking fund or redemption rights, or preemptive rights to subscribe for any of our securities.

  Restrictions on Alienability of Common Stock

  Our Charter contains provisions that generally restrict any person or entity from attempting to purchase our stock, without prior permission from the board of directors, to the extent that such transfer would (i) create or result in an individual or entity becoming a five-percent shareholder of our stock, or (ii) increase the stock ownership percentage of any existing five-percent shareholder. These provisions provide that any transfer that violates such provisions shall be null and void and would require the purported transferee to, upon demand by us, transfer the shares that exceed the five percent limit to an agent designated by us for the purpose of conducting a sale of such excess shares.  By requiring prior permission from the board of directors, this restriction attempts to prevent certain future transfers of our capital stock that could adversely affect our ability to utilize our net operating loss carryforwards to reduce our federal income taxes.  

   

  

  Provisions of our Charter and By-Laws That May Have Anti-Takeover Effects

  Special Meetings of Stockholders

  Our By-Laws provide that, except as otherwise required by law and subject to the rights, if any, of the holders of any series of preferred stock, only our board of directors may call a special meeting of stockholders.

  Advance Notice of Director Nominations and Stockholder Proposals

  Our By-Laws include advance notice and informational requirements and time limitations on any director nomination or any new proposal, which a stockholder wishes to make at an annual meeting of stockholders. Generally, a stockholder’s notice of a director nomination or proposal will be timely if delivered to our corporate secretary at our principal executive offices not later than the close of business on the 90th day nor earlier than the close of business on the 120th day prior to the first anniversary of the preceding year’s annual meeting.

  Blank Check Preferred Stock

  We have shares of preferred stock available for future issuance without stockholder approval, except to the extent holders of preferred stock have a consent right under the terms of their preferred stock. The existence of authorized but unissued shares of preferred stock may enable our board of directors to render more difficult or to discourage an attempt to obtain control of us by means of a merger, tender offer, proxy contest or otherwise. For example, if in the due exercise of its fiduciary obligations, our board of directors were to determine that a takeover proposal is not in the best interests of the Company or our stockholders, our board of directors could cause shares of preferred stock to be issued without stockholder approval in one or more private offerings or other transactions that might dilute the voting or other rights of the proposed acquirer or insurgent stockholder or stockholder group. In this regard, our Charter grants our board of directors broad power to establish the rights and preferences of authorized and unissued shares of preferred stock. The issuance of shares of preferred stock could decrease the amount of earnings and assets available for distribution to holders of shares of common stock. The issuance may also adversely affect the rights and powers, including voting rights, of these holders and may have the effect of delaying, deterring or preventing a change in control of us.

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