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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended:

June 30, 2018

or

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission File Number: 001-38169

 

TYME TECHNOLOGIES, INC.

(Exact name of registrant as specified in its charter)

 

 

Delaware

 

45-3864597

(State or other jurisdiction of

incorporation or organization)

 

I.R.S. Employer

Identification No.)

 

17 State Street – 7th Floor

New York, New York 10004

(Address of principal executive offices)

(Zip Code)

(212) 461-2315

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes       No  

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes       No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

 

Accelerated filer

Non-accelerated filer

(Do not check if a smaller reporting company)

 

Smaller reporting company

 

 

 

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes       No  

As of July 26, 2018, there were 101,226,479 shares of the registrant’s common stock, par value $0.0001 per share, issued and outstanding.

 

 


Table of Contents

 

TABLE OF CONTENTS

 

 

 

 

 

Page

 

 

 

Special Note Regarding Forward-Looking Statements

 

1

 

 

 

 

 

 

 

PART I- FINANCIAL INFORMATION

 

 

Item 1.

 

Financial Statements

 

2

 

 

 

 

 

 

 

Condensed Consolidated Balance Sheets as of June 30, 2018 (unaudited) and March 31, 2018

 

2

 

 

 

 

 

 

 

Condensed Consolidated Statements of Operations (unaudited) for the three months ended June 30, 2018 and 2017

 

3

 

 

 

 

 

 

 

Condensed Consolidated Statements of Stockholders’ Equity for the three months ended June 30, 2018 (unaudited)

 

4

 

 

 

 

 

 

 

Condensed Consolidated Statements of Cash Flows for the three months ended June 30, 2018 and 2017 (unaudited)

 

5

 

 

 

 

 

 

 

Notes to Unaudited Condensed Consolidated Financial Statements

 

6

 

 

 

 

 

Item 2.

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

13

 

 

 

 

 

Item 3.

 

Quantitative and Qualitative Disclosures About Market Risk

 

17

 

 

 

 

 

Item 4.

 

Controls and Procedures

 

17

 

 

 

 

 

 

 

PART II- OTHER INFORMATION

 

 

 

 

 

 

 

Item 1.

 

Legal Proceedings

 

20

 

 

 

 

 

Item 1A.

 

Risk Factors

 

20

 

 

 

 

 

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

 

20

 

 

 

 

 

Item 3.

 

Defaults Upon Senior Securities

 

20

 

 

 

 

 

Item 4.

 

Mine Safety Disclosures

 

20

 

 

 

 

 

Item 5.

 

Other Information

 

20

 

 

 

 

 

Item 6.

 

Exhibits

 

22

 

 

 

 

 

SIGNATURES

 

 

 

23

 

 

 


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SPECIAL NOTE REGARDING FO RWARD-LOOKING STATEMENTS

Certain statements in this Quarterly Report on Form 10-Q are “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. All statements contained in this Quarterly Report on Form 10-Q other than statements of historical facts, including statements regarding our future results of operations and financial position, our business strategy and plans and our objectives for future operations, are forward-looking statements. The words “believes,” “expects,” “hopes,” “may,” “will,” “plan,” “intends,” “estimates,” “could,” “should,” “would,” “continue,” “seeks,” “anticipates,” and similar expressions (including their use in the negative), are intended to identify forward-looking statements. Forward- looking statements can also be identified by discussions of future matters such as the development and potential commercialization of our lead drug candidate and of other of new products, technology enhancements, possible collaborations, the timing, scope and objectives of our planned clinical trials and other statements that are not historical. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described in our Form 10-K for the year ended March 31, 2018 and in this report under “Risk Factors,” and in any subsequent filings with the United States Securities and Exchange Commission and many of which are beyond our control. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this report and our Annual Report on Form 10-K for the year ended March 31, 2018 and subsequent reports we file from time to time may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, achievements or events and circumstances reflected in the forward-looking statements will occur. We cannot assure you that forward-looking statements in this report or therein will prove to be accurate. Furthermore, if our forward-looking statements prove to be inaccurate, the inaccuracy may be material. In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by us to any other person that we will achieve our objectives and plans in any specified time frame, or at all. We disclaim any intent or duty to update any of these forward-looking statements after completion of this Quarterly Report on Form 10-Q to conform these statements to actual results or revised expectations.

The cautionary statements made in this report are intended to be applicable to all related forward-looking statements wherever they may appear in this report. We urge you not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. Except as required by law, we assume no obligation to update our forward-looking statements, even if new information becomes available in the future.

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PART I – FINANC IAL INFORMATION

Item 1.

Financial Statements

Tyme Technologies, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

 

 

 

June 30, 2018

 

 

March 31, 2018

 

 

 

(unaudited)

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

22,438,597

 

 

$

28,975,822

 

Prepaid rent

 

 

242,755

 

 

 

 

Prepaid expenses and other current assets

 

 

787,373

 

 

 

732,555

 

Total current assets

 

 

23,468,725

 

 

 

29,708,377

 

 

 

 

 

 

 

 

 

 

Property and equipment, net of accumulated depreciation

 

 

16,413

 

 

 

3,239

 

Prepaid clinical costs

 

 

1,306,225

 

 

 

1,306,225

 

Prepaid rent, net of current portion

 

 

283,214

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

25,074,577

 

 

$

31,017,841

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable and other current liabilities (including $362,000 and $384,000 of

   related party accounts payable, respectively)

 

$

2,717,673

 

 

$

2,817,090

 

Accrued bonuses

 

 

 

 

 

1,248,690

 

Insurance note payable

 

 

269,325

 

 

 

480,094

 

Total current liabilities

 

 

2,986,998

 

 

 

4,545,874

 

Total liabilities

 

 

2,986,998

 

 

 

4,545,874

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies (see Note 8)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders' equity

 

 

 

 

 

 

 

 

Preferred stock, $0.0001 par value, 10,000,000 shares authorized, 0

   shares issued and outstanding

 

 

 

 

 

 

Common stock, $0.0001 par value, 300,000,000 shares authorized,

   101,226,479 issued and outstanding at June 30, 2018 and March 31, 2018

 

 

10,125

 

 

 

10,125

 

Additional paid in capital

 

 

81,631,831

 

 

 

79,293,423

 

Accumulated deficit

 

 

(59,554,377

)

 

 

(52,831,581

)

Total stockholders' equity

 

 

22,087,579

 

 

 

26,471,967

 

Total liabilities and stockholders' equity

 

$

25,074,577

 

 

$

31,017,841

 

 

The Notes to Condensed Consolidated Financial Statements are an integral part of these statements.

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Tyme Technologies, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(Unaudited)

 

 

 

Three Months Ended

June 30,

 

 

 

2018

 

 

2017

 

Revenues

 

$

 

 

$

 

Operating expenses:

 

 

 

 

 

 

 

 

Research and development

 

 

3,010,688

 

 

 

1,264,358

 

General and administrative (including $400,000 and $406,000 of related party legal expenses, respectively)

 

 

3,708,481

 

 

 

1,924,204

 

Total operating expenses

 

 

6,719,169

 

 

 

3,188,562

 

Loss from operations

 

 

(6,719,169

)

 

 

(3,188,562

)

Other income

 

 

 

 

 

315,624

 

Interest expense

 

 

(3,627

)

 

 

 

Net loss

 

$

(6,722,796

)

 

$

(2,872,938

)

Basic and diluted loss per common share

 

$

(0.07

)

 

$

(0.03

)

Basic and diluted weighted average shares outstanding

 

 

101,226,479

 

 

 

89,258,377

 

 

The Notes to Condensed Consolidated Financial Statements are an integral part of these statements.

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Tyme Technologies, Inc. and Subsidiaries

Condensed Consolidated Statements of Stockholders’ Equity

For the Three Months Ended June 30, 2018

(Unaudited)

 

 

 

Common Stock

 

 

Additional

 

 

 

 

 

 

Total

 

 

 

Shares

 

 

Amount

 

 

Paid-in

Capital

 

 

Accumulated Deficit

 

 

Stockholders'

Equity

 

Balance, April 1, 2018

 

 

101,226,479

 

 

$

10,125

 

 

$

79,293,423

 

 

$

(52,831,581

)

 

$

26,471,967

 

Stock based compensation

 

 

 

 

 

 

2,338,408

 

 

 

 

 

2,338,408

 

Net loss

 

 

 

 

 

 

 

 

(6,722,796

)

 

 

(6,722,796

)

Balance, June 30, 2018

 

 

101,226,479

 

 

$

10,125

 

 

$

81,631,831

 

 

$

(59,554,377

)

 

$

22,087,579

 

 

The Notes to Condensed Consolidated Financial Statements are an integral part of these statements.

 

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Tyme Technologies, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited)

 

 

 

Three Months Ended

June 30,

 

 

 

2018

 

 

2017

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

Net loss

 

$

(6,722,796

)

 

$

(2,872,938

)

Adjustments to reconcile net loss to net cash used in operating activities

 

 

 

 

 

 

 

 

Depreciation

 

 

2,369

 

 

 

1,074

 

Amortization of employees, directors and consultants stock options

 

 

2,338,408

 

 

 

1,296,723

 

Gain on remeasurement of derivative liability

 

 

 

 

 

(315,624

)

Change in operating assets and liabilities:

 

 

 

 

 

 

 

 

Prepaid rent

 

 

(525,969

)

 

 

-

 

Prepaid expenses and other assets

 

 

(54,818

)

 

 

(1,053,768

)

Accounts payable and other current liabilities

 

 

(99,417

)

 

 

191,218

 

Accrued bonuses

 

 

(1,248,690

)

 

 

 

Net cash used in operating expenses

 

 

(6,310,913

)

 

 

(2,753,315

)

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

    Purchase of property & equipment

 

 

(15,543

)

 

 

 

Net cash used in investing activities

 

 

(15,543

)

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

Insurance note payments

 

 

(210,769

)

 

 

 

Proceeds from private placement offering of common stock and warrants,

   net of issuance costs

 

 

 

 

 

2,597,100

 

Proceeds from collection of stock subscription receivable

 

 

 

 

 

174,998

 

 

 

 

 

 

 

 

 

 

Net cash (used in) provided by financing activities

 

 

(210,769

)

 

 

2,772,098

 

 

 

 

 

 

 

 

 

 

Net (decrease) increase in cash

 

 

(6,537,225

)

 

 

18,783

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents - beginning

 

 

28,975,822

 

 

 

10,482,977

 

Cash and cash equivalents - ending

 

$

22,438,597

 

 

$

10,501,760

 

 

 

 

 

 

 

 

 

 

Supplemental Cash Flow Information:

 

 

 

 

 

 

 

 

Interest

 

$

3,627

 

 

$

 

Income taxes

 

$

 

 

$

 

 

 

 

 

 

 

 

 

 

Noncash investing and financing activities:

 

 

 

 

 

 

 

 

Derivative liability associated with the price protection feature of shares

   of common stock issued

 

$

 

 

$

11,785

 

 

The Notes to Condensed Consolidated Financial Statements are an integral part of these statements.

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Tyme Technologies, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

June 30, 2018

(Unaudited)

Note 1. Nature of Business

Tyme Technologies, Inc. (“Tyme Tech”) is a Delaware corporation headquartered in New York, NY, with wholly-owned subsidiaries, Tyme Inc. (“ Tyme ”) and Luminant Biosciences, LLC (“ Luminant ”) (collectively, the “ Company ”). Prior to 2014, Luminant conducted the initial research and development of the Company’s therapeutic platform. Since January 1, 2014, the majority of the Company’s research, development and other business activities have been conducted by Tyme, which was incorporated in Delaware in 2013. On October 27, 2016, the Board of Directors of Tyme Tech approved a change in fiscal year end from December 31 to March 31 of each year.

The Company is a clinical-stage biotechnology company developing novel cancer therapeutics that are intended to be effective across many tumor types while also maintaining low toxicity. Tyme’s operations to date have been directed primarily toward research and development activities for human oncologic product candidates. The Company has completed an ongoing Investigational New Drug application (“IND”)-enabled Phase Ib clinical study, has an ongoing Phase II clinical study for use of SM-88 in biomarker-recurrent prostate cancer patients and recently initiated a Phase II clinical study in metastatic pancreatic cancer. The Company is evaluating the expansion of its clinical programs to other types of cancer and may also seek to develop oncology drug candidates in addition to SM-88, its lead clinical program.

The accompanying condensed consolidated financial statements include the results of operations of Tyme Tech and its wholly-owned subsidiaries.

Liquidity

The condensed consolidated financial statements have been prepared on a going-concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has historically funded its operations primarily through equity offerings. During fiscal year 2018, the Company raised gross proceeds of approximately $32.1 million through the issuance of its common stock, par value $0.0001 per share (“Common Stock”). Most recently in March 2018, the Company raised aggregate gross proceeds of $23.3 million before underwriting discounts and commissions and expenses of the offering through an underwritten public offering. Previously on November 2, 2017, the Company entered into an equity distribution agreement (“Equity Distribution Agreement”) with Canaccord Genuity Inc. (“Canaccord”), to commence an at-the-market offering (the “ATM Financing Facility”) pursuant to which the Company may, from time to time, subject to certain rules and regulations, sell shares of the Company’s common stock, par value $0.0001 per share, having an aggregate offering price up to $30.0 million, through Canaccord, as the Company’s sales agent. In the year ended March 31, 2018, the Company raised approximately $6.2 million in aggregate gross proceeds before commissions and expenses through the ATM Financing Facility and paid Canaccord aggregate commissions of $0.3 million. At June 30, 2018, there remained approximately $24.0 million of availability to sell shares through the facility.  

For the three months ended June 30, 2018, the Company had negative cash flow from operations of $6.3 million and net loss of $6.7 million, which included $2.3 million   of non-cash expenses, primarily non-cash equity compensation expense. As of June 30, 2018, the Company had a working capital of approximately $22.1 million.

Management has concluded that substantial doubt does not exist regarding the Company’s ability to satisfy its obligations as they come due during the twelve-month period following the issuance of these financial statements. This conclusion is based on the Company’s assessment of qualitative and quantitative conditions and events, considered in aggregate as of the date of issuance of these financial statements that are known and reasonably knowable. Among other relevant conditions and events, the Company has considered its operational plans, liquidity sources, obligations due or expected, funds necessary to maintain the Company’s operations, and potential adverse conditions or events as of the issuance date of these financial statements. The Company has developed an operational plan that manages expenses and delays initiation of certain operational initiatives to focus on core programs if appropriate funding is not available.

Note 2. Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation

The accompanying condensed consolidated financial statements and related notes should be read in conjunction with our condensed consolidated financial statements and related notes contained in our Annual Report on Form 10-K for the year ended March 31, 2018 filed with the SEC on June 13, 2018 (the “2018 10-K”). The condensed consolidated financial statements have been

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prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) related to in terim financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. The financial information contained herein is unaudited; however, management believes all adjustments have been made that are necessary to present fairly the results for the interim periods. All such adjustments are of a normal and recurring nature. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year.

The Company’s condensed consolidated financial statements include the accounts of Tyme Tech and its subsidiaries, Tyme and Luminant. All intercompany transactions and balances have been eliminated in consolidation.

Any reference in these notes to applicable guidance is meant to refer to GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Update (“ASU”) of the Financial Accounting Standards Board (“FASB”).

Significant Accounting Policies

The Company’s significant accounting policies are disclosed in the audited financial statements for the year ended March 31, 2018 included in the Company’s 2018 10-K.

Reclassifications

The Company has reclassified certain prior period amounts to conform to the current period presentation relating to Prepaid clinical costs for $1,306,225. These reclassifications have no effect on the previously reported net loss.

Recent Accounting Pronouncements

In May 2017, the FASB issued ASU No. 2017-09, Compensation-Stock Compensation (Topic 718) - Scope of Modification Accounting (“ASU 2017-09”), which amends the scope of modification accounting for share-based payment arrangements. The standard provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting under ASC 718. Specifically, an entity would not apply modification accounting if the fair value, vesting conditions, and classification of the awards are the same immediately before and after the modification. The new standard is effective for annual periods beginning after December 15, 2017 and interim periods within those years. The Company adopted ASU 2017-09 in its consolidated financial statements in the first quarter of fiscal year 2019. It did not have a material impact.

In February 2017, the FASB issued Update No. 2017-05, Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets (“ASU 2017-05”). This update is meant to clarify the scope of ASC Subtopic 610-20, Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets and to add guidance for partial sales of nonfinancial assets.  The Company adopted ASU 2017-05 in its consolidated financial statements in the first quarter of fiscal year 2019. It did not have a material impact.

In January 2017, the FASB issued ASU 2017-01, amending Business Combinations: Clarifying the Definition of a Business (“ASU 2017-01”), to clarify the definition of a business with the objective of providing a more robust framework to assist management when evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments are to be applied prospectively to business combinations that occur after the effective date.  The Company adopted ASU 2017-01 in its consolidated financial statements in the first quarter of fiscal year 2019. It did not have a material impact.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. ASU 2016-02 is effective for annual periods beginning after December 15, 2018, and for interim periods therein, with early adoption permitted. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is currently evaluating the impact that the standard will have on its consolidated financial statements.

In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”), which addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. ASU 2016-01 will be effective for the Company for annual periods and interim periods within those annual periods beginning after December 15, 2018 and early adoption is not permitted. The Company adopted ASU 2016-01 in its consolidated financial statements in the first quarter of fiscal year 2019. It did not have a material impact.

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In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”) . ASU 2016-15 clarifies how certain cash receipts and payments should be presented in the statement of cash flow s. The new guidance is effective for annual and interim reporting periods beginning after December 15, 2017. Early adoption is permitted, provided that all of the amendments are adopted in the same period. The guidance requires application using a retrospe ctive transition method. The Company adopted ASU 2017-01 in its consolidated financial statements in the first quarter of fiscal year 2019. It did not have a material impact.

Note 3. Net Loss Per Common Share

The following table sets forth the computation of basic and diluted net loss per common share for the periods indicated:

 

 

 

Three Months Ended

June 30,

 

 

 

2018

 

 

2017

 

Basic and diluted net loss per common share calculation:

 

 

 

 

 

 

 

 

Net loss

 

$

(6,722,796

)

 

$

(2,872,938

)

Weighted average common shares outstanding — basic and

   diluted

 

 

101,226,479

 

 

 

89,258,377

 

Net loss per share of common stock — basic and diluted

 

$

(0.07

)

 

$

(0.03

)

 

The following outstanding securities at June 30, 2018 and 2017 have been excluded from the computation of diluted weighted average shares outstanding, as they are anti-dilutive:

 

 

 

June,

 

 

 

2018

 

 

2017

 

Stock options

 

 

7,305,472

 

 

 

3,552,000

 

Warrants

 

 

5,615,641

 

 

 

5,625,641

 

Total

 

 

12,921,113

 

 

 

9,177,641

 

 

Note 4. Accounts Payable and Other Current Liabilities.

Accounts payable (including accounts payable to a related party – see Note 9) and other current liabilities consisted of the following:

 

 

 

June 30,

2018

 

 

March 31,

2018

 

Legal

 

$

416,690

 

 

$

421,128

 

Consulting

 

 

101,621

 

 

 

78,101

 

Accounting and auditing

 

 

101,286

 

 

 

81,652

 

Research and development

 

 

1,244,342

 

 

 

1,678,675

 

Board of Directors and Scientific Advisory

 

 

710,971

 

 

 

442,610

 

Other

 

 

142,763

 

 

 

114,924

 

 

 

$

2,717,673

 

 

$

2,817,090

 

 

Note 5. Fair Value of Financial Instruments

There are no assets and liabilities measured at fair value on a recurring basis as of June 30, 2018 and March 31, 2018.

The changes in the fair value of the derivative liability for the three months ended June 30, 2017 are as follows:

 

Fair value at March 31, 2017

 

$

378,600

 

Fair value of liability-classified anti-dilution feature

 

$

11,785

 

Change in fair value of derivative liability

 

 

(315,624

)

Fair value at June 30, 2017

 

$

74,761

 

 

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The fair value of the derivative liability was written down to zero as of December 31, 2017 because the anti-dilution provision of the March 2017 Private Placement expired on September 10, 2017 and the anti-dilution provision of the April 2017 Private Placement expired on October 7, 2017, in each case with no shares issue d pursuant to such provisions.

The fair value of the derivative liability as of June 30, 2017 was estimated using a Monte Carlo simulation model using the following assumptions:

 

 

  

June 30,
2017

 

Volatility

  

 

60

Risk-Free Interest Rate

  

 

0.96

Expected Term in Years

  

 

2.4 months

 

Dividend Rate

  

 

0.00

Fair Value of Common Stock Share

  

$

1.78

 

 

Note 6. Debt.

Insurance Note Payable

During the year ended March 31, 2018, the Company entered into a short-term financing arrangement with its insurance carrier related to payment of premium for its Director and Officer liability insurance coverage totaling $480,094 for the policy year ending on March 31, 2019. As of June 30, 2018 and March 31, 2018, there remained a balance of $269,325 and $480,094, respectively, recorded to Insurance note payable on the accompanying consolidated balance sheets.

Note 7. Stockholders’ Equity.

Securities Purchase Agreements

In April 2017, the Company raised $2.7 million in gross proceeds through a private placement (“April 2017 Private Placement”) of 1,069,603 shares of Common Stock and 1,069,603 common stock purchase warrants (each, a “Warrant”). Each Warrant entitles its holder to purchase one share of common stock (each, a “Warrant Share”) at an exercise price of $3.00 per Warrant Share. The warrants expire two years from the date of issuance and vest immediately. The warrants are included within additional paid-in capital on the statement of stockholders’ equity and will not be subject to remeasurement.

At each of June 30, 2018 and March 31, 2018, 5,566,107 common stock purchase warrants relating to securities purchase agreements were outstanding and exercisable.

The following summarizes the common stock warrant activity for the three months ended June 30, 2018:

 

 

 

Warrant

Shares of

Common Stock

 

 

Weighted

Average

Exercise Price

 

Outstanding at March 31, 2018

 

 

5,615,641

 

 

$

3.34

 

Outstanding at June 30, 2018

 

 

5,615,641

 

 

$

3.34

 

 

At-the-Market Financing Facility

On November 2, 2017, the Company entered into the Equity Distribution Agreement with Canaccord, to commence the ATM Financing Facility pursuant to which the Company may, from time to time, sell shares of the Company’s Common Stock  having an aggregate offering price up to $30,000,000 through Canaccord, as the Company’s sales agent. For the three months ended June 30, 2018, the Company did not sell any securities through the ATM Financing Facility.  At June 30, 2018, there remained approximately $24,000,000 of availability to sell shares through the facility. Under the ATM Financing Facility, the Company is not required to issue the full available amount authorized and it may be cancelled at any time.

Public Offering

In March 2018, the Company raised approximately $23,288,000 in gross proceeds through a public offering of 10,350,000 shares of our common stock. The Offering was made pursuant to the Company’s registration statement on Form S-3 (Registration No. 333-211489), which was declared effective by the U.S. Securities and Exchange Commission on August 16, 2017, a base prospectus dated August 16, 2017 and a prospectus supplement dated March 1, 2018.

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Note 8. Commitments and Contingencies.

Contract Service Providers

In the course of the Company’s normal business operations, it enters into agreements and arrangements with contract service providers to assist in the performance of its research and development and clinical research activities.

Purchase Commitments

During fiscal year 2018, we entered into two contracts with manufacturers to supply certain components used in SM-88 in order to achieve favorable pricing on supplied products. These contracts have non-cancellable elements related to the scheduled deliveries of these products in future periods.  Payments are made by us to the manufacturer when the products are delivered and of acceptable quality. The contracts are structured to match clinical supply needs for our ongoing trials and we expect the timing of associated payments to predominately occur during fiscal year 2019. Total outstanding future obligations associated with the contracts were $1.1 million and $1.7 million at June 30, 2018 and March 31, 2018, respectively.

 

 

Note 9. Related Party Transactions.

Legal

Drinker Biddle & Reath LLP (“DBR”) has provided legal services to the Company. A partner of DBR is a member of the Board of Directors and has received, and is entitled to receive in the future, as well as cash compensation payable generally to non-employee directors, equity compensation payable to non-employee directors generally under the 2016 Director Plan. During the three months ending June 30, 2018 and 2017, approximately $400,000   and $406,000, respectively, have been incurred as legal fees associated with DBR. At June 30, 2018 and March 31, 2018, the Company had approximately $362,000 and $384,000, respectively, in accounts payable and accrued expenses payable to DBR.

Note 10. Equity Incentive Plan.

Stock Options

As of June 30, 2018, there was approximately $10,931,210 of total unrecognized compensation expense related to non-vested stock options. The cost is expected to be recognized over the remaining weighted average service period of 1.37 years. As of June 30, 2018, there were 6,095,790 shares available for grant under the Equity Incentive Plans.

Stock based compensation expense recognized was as follows (in thousands):

 

 

 

Three Months Ended

June 30,

 

 

 

2018

 

 

2017

 

General and administrative

 

$

1,661,000

 

 

$

807,000

 

Research and development

 

 

677,000

 

 

 

489,000

 

 

 

$

2,338,000

 

 

$

1,296,000

 

 

The Company uses the Black-Scholes option pricing model to determine the fair value of stock options granted. In accordance with ASC 718 for employees and non-employees, the compensation expense is amortized on a straight-line basis over the requisite service period, which approximates the vesting period. The Company accounts for forfeitures as they occur, rather than estimating forfeitures as of an award’s grant date.

The expected volatility of options granted has been determined using the method described under ASC 718 using the expected volatility of similar companies. The expected term of options granted to employees in the current fiscal period has been based on the term by using the simplified “plain-vanilla” method as allowed under SAB No. 110. The expected term of options granted to non-employees and consultants is based on the grant’s full contractual life.

Prior to the three months ended December 31, 2017, the Company used the full contractual term as the expected term in its Black Scholes model to estimate stock option value. The Company used the full contractual term because there was no history of exercise activity and the stock was thinly-traded on the OTC Market.

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Beginning in the thre e months ended December 31, 2017, the Company determined the use of the simplified method was more appropriate than the full contractual term due to the increased trading volume and activity during the quarter and the increased market and demand for shares .

Based on these factors, the Company deemed it no longer appropriate to use the full contractual term for expected life, because these changes in the business indicate the likelihood that there will be exercise activity before completion of the full contractual term.

The Company considered other methods to estimate expected term other than the simplified method. However, as noted above, there is no historical exercise data to provide a reasonable basis upon which to estimate expected term due to the limited period of time its equity shares have been publicly traded and no other refined estimate of expected life that is appropriate.

The weighted average assumptions used to determine such values are presented in the following table:

 

 

 

June 30,

2018

 

 

June 30,

2017

 

Risk free interest rate

 

 

2.87

%

 

 

2.17

%

Expected volatility

 

 

75.09

%

 

 

90.02

%

Expected term (in years)

 

5.91

 

 

10

 

Dividend yield

 

 

0

%

 

 

0

%

 

The following is a summary of the status of the Company’s stock options as of June 30, 2018:

 

 

 

Number of

Options

 

 

Weighted

Average

Exercise

Price

 

Outstanding at March 31, 2018

 

 

5,438,072

 

 

$

5.11

 

Granted

 

 

1,867,400

 

 

 

2.90

 

Exercised

 

 

 

 

 

 

Forfeited/Cancelled

 

 

 

 

 

 

 

 

Outstanding at June 30, 2018

 

 

7,305,472

 

 

4.55

 

Options exercisable at June 30, 2018

 

 

3,544,980

 

 

5.23

 

 

 

 

 

 

 

 

Stock Options Outstanding

 

 

Stock Options Vested

 

Range of

Exercise

Price

 

Number

Outstanding

at

June 30,

2018

 

 

Weighted

Average

Exercise

Price

 

 

Weighted

Average

Remaining

Life

(Years)

 

 

Aggregate

Intrinsic

Value

 

 

Number

Vested at

June 30,

2018

 

 

Weighted

Average

Exercise

Price

 

 

Aggregate

Intrinsic

Value

 

$2.30-$8.75

 

 

7,305,472

 

 

 

4.55

 

 

 

8.45

 

 

 

1,227,002

 

 

 

3,544,980

 

 

 

5.23

 

 

 

324,170

 

 

The intrinsic value, which is calculated as the excess of the market value of June 30, 2018 over the exercise price of the options, is approximately $1,227,002 and $324,170 for outstanding stock options and vested stock options, respectively. The market value as of June 30, 2018 was $3.16 as reported by the NASDAQ Capital Market.

Note 11. Income Taxes.

A valuation allowance is recorded if it is more likely than not that a deferred tax asset will not be realized. The Company weighed available positive and negative evidence and concluded that a full valuation allowance should continue to be maintained on its net deferred tax assets.

The Company is required to evaluate uncertain tax positions taken or expected to be taken in the course of preparing the Company’s condensed consolidated financial statements to determine whether the tax positions are more likely than not of being sustained by the applicable tax authority. As of June 30, 2018, the Company’s uncertain tax positions remain unchanged. Due to the full valuation allowance, none of the gross unrecognized tax benefits would affect the effective tax rate at June 30, 2018, if recognized.

The Company had no income tax related penalties or interest for periods presented in these condensed consolidated financial statements related to uncertain tax positions due to available net operating loss carryforwards, which would be recorded as tax expense should the Company accrue for such items.

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On December 22, 2017 the U.S. Tax Cuts and Jobs Act (“the Act”) was signed into legislation. The Act changed the Federal statutory tax rate to 21% for tax years beginning January 1, 2018. Because the Company has a full valuation allowance against it s net deferred tax asset, the rate change has no effect on the Company’s income tax expense.

Note 12. Subsequent Events

On July 30, 2018, the Company entered into amended employment agreements with Ben R. Taylor, the Company’s President and Chief Financial Officer, and Dr. Jonathan Eckard, the Company’s Chief Scientific Affairs Officer (the “Amended Employment Agreements”). The Amended Employment Agreements modify the severance benefits provided thereunder and provide that all equity awards would immediately vest in the event of a change of control (as defined in the Company’s 2015 Equity Incentive Plan). The Amended Employment Agreements also changed the duration of each executive’s non-compete and non-solicitation covenants to two years.

On July 30, 2018, the Board approved modifications to stock options awarded to employees under the 2015 Equity Incentive Plan on May 24, 2018 to change the vesting terms, which had previously provided for vesting over a four-year period (with 25% of the award vesting on the one-year anniversary of grant and the remaining vesting in pro rata quarterly increments), such that the awards vest instead on a three year vesting schedule, vesting in pro rata quarterly increments. No other terms of these options were modified. See Part II. Item 5. Other Information for additional details regarding the Amended Employment Agreements and stock option modifications.

 

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Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations.

You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and related notes appearing in this Quarterly Report. Some of the information contained in this discussion and analysis or set forth elsewhere in this Quarterly Report, including information with respect to our plans and strategy for our business and related financing, includes forward-looking statements that involve risks and uncertainties. As a result of many factors, including those factors set forth in the “Risk Factors” section of this report and of our Annual Report on Form 10-K filed on June 13, 2018, our actual results could differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis. As used in this report, unless the context suggests otherwise, “we,” “us,” “our,” “the Company” or “Tyme Technologies” refer to Tyme Technologies, Inc. together with its subsidiaries. All amounts in Management’s Discussion and Analysis of Financial Condition and Results of Operations are approximate.

Critical Accounting Policies and Significant Judgments and Estimates

This management’s discussion and analysis of our financial condition and results of operations is based on our financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities in our financial statements. On an ongoing basis, we evaluate our estimates and judgments, including those related to accrued expenses, revenue recognition, deferred revenue and stock-based compensation. We base our estimates on historical experience, known trends and events and various other factors that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. There have been no significant changes in our critical accounting policies and significant judgments and estimates as discussed in our Form 10-K filed with the SEC on June 13, 2018 (the “2018 10-K”).

Overview

We are a clinical stage biotechnology company developing cancer therapeutics that are intended to be broadly effective across many tumor types and have low toxicity profiles. We have completed an ongoing Investigational New Drug application (“IND”), enabled Phase I clinical study, have an ongoing Phase II clinical study for use SM-88 in biomarker-recurrent prostate cancer patients and recently initiated a Phase II clinical study in metastatic pancreatic cancer. We are actively evaluating the expansion of our clinical programs to other types of cancer and may also seek to develop oncology drug candidates in addition to SM-88, our lead clinical program.

Recent Developments

Consistent with our overall corporate mission of developing effective cancer therapies that can extend patients’ lives while not compromising on the quality of life gained, during the three months ended June 30, 2018, we continued the following notable activities:

 

SM-88: Currently Enrolling Phase II Trial for Pancreatic Cancer

We initiated our Phase II clinical trial in metastatic pancreatic cancer in March 2018.  As of the date of this report, we have opened 17 sites across the United States and have enrolled ten patients.  We remain in the process of enrolling patients and opening sites.  We anticipate the dose ranging phase to complete enrollment by the end of calendar year 2018 with 36 patients and to make the first presentation of interim data in January 2019.

 

SM-88: Currently Enrolling Phase II Prostate Cancer Trial

We continue to enroll patients in our six-month multi-center, open label study patients with biomarker-recurrent prostate cancer who have rising Prostate Specific Antigen levels and no radiographically detectable lesions. There were no additional radiographic progressions since our presentation at the American Society of Clinical Oncology Genitourinary Cancer Symposium in February 2018.  We are considering an extension of the trial to monitor longer-term safety and efficacy, as a majority of the patients who have completed the six-month trial term have requested waivers to continue treatment.  We will provide further updates on potential modifications to the trial design if and when those details become available. Our target to provide updated data from this trial remains in the first quarter of calendar year 2019.

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Potential Clinical Trial in a Third Indication

Tyme continues to make progress in the planning of a trial in sarcoma with its partnership with the Joseph Ahmed Foundation and anticipates providing an update in the second half of calendar year 2018.

On May 24, 2018, the Board approved an amendment and restatement of the 2016 Director Plan (the “Restated 2016 Director Plan”) to increase the number of shares authorized to be issued under the plan and to permit different award structures and different vesting schedules than currently provided for in the plan. The Board has submitted the Restated 2016 Director Plan for approval by the stockholders at the 2018 annual meeting of stockholders. In addition, the Board approved the 2018 Employee Bonuses as recommended by the Compensation Committee, which consisted of (a) a bonus of $297,000 for the Company’s Chief Executive Officer, Steve Hoffman, and (b) a bonus pool of $870,000 to be allocated among the Company’s other employees.  Such bonuses were paid in the quarter ended June 30, 2018.  

Additionally, on May 24, 2018, the Board approved a revised Director Compensation Program that would consist of: (1) a grant of options to acquire 100,000 shares of the Company’s common stock upon initial election to the Board; (2) annual cash compensation of $50,000 for each director; (3) an annual grant to each director of options to acquire 50,000 shares of the Company’s common stock, par value $0.0001 (the “Common Stock”); and (4) cash compensation for serving on Board committees, in amounts to be determined.  On July 30, 2018, the Board approved annual cash retainers for Board committee service.  See Part II, Item 5.  Other Information for additional details.  The Board also deemed it in the best interest of the Company to grant additional options to purchase 75,000 shares of the Company’s Common Stock under the 2016 Director Plan to each non-employee director serving on the Board, (excluding Don DeGolyer who was elected as a Director at this meeting and received his initial grant of 100,000 options) to align past awards with the revised director appointment grant practices being adopted pursuant to the Director Compensation Program, to be fully vested on the date of grant.

On July 30, 2018, the Company entered into amended employment agreements with Ben R. Taylor, the Company’s President and Chief Financial Officer, and Dr. Jonathan Eckard, the Company’s Chief Scientific Affairs Officer (the “Amended Employment Agreements”). The Amended Employment Agreements modify the severance benefits provided thereunder and provide that all equity awards would immediately vest in the event of a change of control (as defined in the Company’s 2015 Equity Incentive Plan). The Amended Employment Agreements also changed the duration of each executive’s non-compete and non-solicitation covenants to two years.

On July 30, 2018, the Board approved modifications to stock options awarded to employees under the 2015 Equity Incentive Plan on May 24, 2018 to change the vesting terms, which had previously provided for vesting over a four-year period (with 25% of the award vesting on the one-year anniversary of grant and the remaining vesting in pro rata quarterly increments), such that the awards vest instead on a three year vesting schedule, vesting in pro rata quarterly increments. No other terms of these options were modified. See Part II. Item 5. Other Information for additional details regarding the Amended Employment Agreements and stock option modifications.

Results of Operations

Three Months Ended June 30, 2018 Compared to Three Months Ended June 30, 2017

Net loss for the three months ended June 30, 2018 was $6.7 million compared to $2.9 million for the three months ended June 30, 2017.  The increase was primarily due to expenses related to its Phase II pancreatic and prostate cancer clinical trials, the initiation of pre-clinical animal testing, additional costs associated with the Company’s NASDAQ listing and administrative costs associated with the Company’s equity financings.  

Revenues

During the three month periods ended June 30, 2018 and 2017, we did not realize any revenues from operations. We do not anticipate recognizing any revenues until such time as (1) one of our product candidates has been approved for marketing by appropriate regulatory authorities, which is not anticipated to occur in the near future, or (2) we enter into a collaboration or licensing arrangement.

Operating Costs and Expenses

For the three months ended June 30, 2018, operating costs and expenses totaled $6.7 million compared to $3.2 million for the three months ended June 30, 2017, representing an increase of $3.5 million. Operating costs and expenses were comprised of the following:

Research and development expenses were $3.0 million for the three months ended June 30, 2018, compared to $1.3 million for the three months ended June 30, 2017, representing an increase of $1.7 million. All research and development expenditures have been

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incurred in respect of our lead drug candidate, SM-88, and its technology platform. Research and development activities primarily consist of the following:

 

Salary and salary related expenses for research and development personnel was $400,000 for the three months ended June 30, 2018, compared to $250,000 for the three months ended June 30, 2017, an increase of $150,000 between the comparable periods, primarily attributable to new hires in conjunction with increased clinical and other operating activities.

 

Consulting and study expenses were $1,900,000 for the three months ended June 30, 2018, compared to $450,000 for the three months ended June 30, 2017, representing an increase of $1,450,000 between the comparable periods. The increase is mainly attributable to expanded clinical activities, primarily due to new pancreatic and prostate cancer clinical trials and the initiation of pre-clinical animal testing. The study costs are anticipated to vary between future accounting periods as we continue to develop our drug candidates and seek governmental approval of such drug candidates.

 

Included in research and development expense for the three months ended June 30, 2018 is $700,000 of stock based compensation expense related to stock options granted to research and development personnel compared to $500,000 for the three months ended June 30, 2017 representing an increase of $200,000 between comparable periods. The increase is due to amortization of expense in the three months ended June 30, 2018 of options granted in conjunction with key management hires during 2018.

General and administrative expenses were $3.7 million for the three months ended June 30, 2018, compared to $1.9 million for the three months ended June 30, 2017, representing an increase of $1.8 million. The general and administrative expenses for the respective periods include:

 

Stock based compensation expense related to stock options granted was $1.7 million for the three months ended June 30, 2018 compared to $800,000 for the three months ended June 30, 2017, representing an increase of $900,000, primarily attributable to amortization of expense of fully vested options granted to the Board of Directors in the three months ended June 30, 2018.

 

During the three months ended June 30, 2018, excluding the stock based compensation costs noted above, general and administrative expenses were $1.9 million compared to $1.1 million in the same period in the prior year.  The increase of approximately $800,000 primarily resulted from an increase in professional services related to increased corporate and operational activity. These costs include legal, accounting, investor relations and communications.  

Other income (expense)

For the three months ended June 30, 2018, the Company had other income of $0. For the three months ended June 30, 2017, the Company had other income of $316,000. The other income was attributed to the remeasurement of the derivative liability relating to anti-dilution provisions of two private placement offerings in March 2017 and April 2017.

Liquidity and Capital Resources

At June 30, 2018, we had cash of $22.4 million, working capital of $22.1 million and stockholders’ equity of $22.1 million. 22,100,000

Net cash used in or provided by operating, investing and financing activities from continuing operations were as follows:

 

 

 

Three Months Ended

June 30,

 

 

 

2018

 

 

2017

 

Net cash (used in) provided by operating activities

 

$

(6,310,000

)

 

$

(2,750,000

)

Net cash (used in) provided by investing activities

 

 

 

 

 

 

Net cash (used in) provided by financing activities

 

 

(210,000

)

 

 

2,770,000

 

 

Operating Activities

Our cash used in operating activities in the three months ended June 30, 2018 totaled $6,310,000, which is the sum of (i) our net loss of $6,500,000, less non-cash expenses totaling $2,300,000 (principally stock-based compensation), and (ii) changes in operating assets and liabilities of $1,400,000, primarily due to the payment of accrued 2018 bonuses for $1,200,000 in the first quarter of 2019.

Our cash used in operating activities in the three months ended June 30, 2017 totaled $2,750,000, which is the sum of (i) our net loss of $2,875,000, less non-cash expenses totaling $980,000 (principally stock-based compensation), and (ii) changes in operating assets and liabilities of $855,000.

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Inve sting Activities

During the three months ended June 30, 2018, our investing activities consisted of purchases of $16,000 of machinery and equipment.

No cash was used in investing activities for the three months ended June 30, 2017.

Financing Activities

During the three months ended June 30, 2018, there was $211,000 of financing activities, consisting of payments related to premiums for its Director and Officer liability insurance coverage.

During the three months ended June 30, 2017, our financing activities consisted of the following:

In April 2017, the Company raised $2.6 million in net proceeds through a private placement (“April 2017 Private Placement”) of 1,069,603 shares of our Common Stock and 1,069,603 common stock purchase warrants (each, a “Warrant”). Each Warrant entitles its holder to purchase one share of Common Stock (each, a “Warrant Share”) at an exercise price of $3.00 per Warrant Share. The warrants expire two years from the date of issuance and vest immediately. The warrants are included within additional paid-in capital on the statement of stockholders’ equity and will not be subject to remeasurement. The Company collected approximately $175,000 of subscription receivables in the quarter ended June 30, 2017.

Liquidity and Capital Requirements Outlook

During fiscal year 2018, we raised net proceeds of approximately $28 million through the issuance of our common stock. Most recently in March 2018, we raised aggregate net proceeds of $21.9 million after underwriting discounts and commissions and expenses of the offering through an underwritten public offering. Previously, on November 2, 2017, the Company entered into the Equity Distribution Agreement with Canaccord, to commence the ATM Financing Facility pursuant to which the Company may, from time to time, subject to certain rules and regulations, sell shares of the Company’s Common Stock, having an aggregate offering price up to $30.0 million, through Canaccord as the Company’s sales agent. In the year ended March 31, 2018, the Company raised approximately $6.2 million in aggregate gross proceeds before commissions and expenses through the ATM Financing Facility and incurred related costs, including commission to Canaccord, of approximately $0.3 million. At March 31, 2018, there remained approximately $24.0 million of availability to sell shares through the facility.

We anticipate requiring additional capital to further fund the development of our product candidates, as well as to engage in potential partnerships or collaborations. The most significant funding needs continue to be in connection with conducting immediate Phase II clinical trials of our SM-88 drug candidate for prostate cancer and pancreatic cancer as well as additional or related studies and investigations, including small-scale pre-clinical studies related to the mechanism of action of our lead clinical program SM-88 and other potential drug candidates.  Primarily as a result of its active clinical trials, as well as other business developments, the Company currently anticipates that its quarterly cash usage, or “cash burn rate”, will approximate $5 million per quarter. The burn rate for the quarter ending June 30, 2018, was higher than prior quarters primarily due to higher clinical expenses, prepaid rent, and FY 2018 performance bonuses paid during the quarter.  If we determine to move beyond the pre-clinical stage for any of these studies or significantly expand currently active clinical trials, our liquidity requirements will be increased.  

Additionally, in May 2018, following a review of the Company’s employee and director compensation program performed in conjunction with an independent third-party compensation consultant, our board of directors approved certain changes to our executive compensation programs, which are designed to address the Company’s unique business attributes and to promote the Company’s goals of attracting and retaining talent, aligning of the interests of executives with stockholders, and avoiding excessive risk taking. After consultation with the compensation consultant, the board approved employee cash bonuses for the completed 2018 fiscal year in an aggregate total amount of approximately $1.2 million, which was paid by the Company in May 2018. The board also approved salary increases for certain of the Company’s executives and expects that, during the course of fiscal 2019, it will expand its annual cash retainer program for non-employee directors to include annual cash retainers for service on board committees, in amounts to be determined.

As of June 30, 2018, the Company has cash on hand of approximately $22 million and working capital of approximately $22 million.

Management has concluded that substantial doubt does not exist regarding the Company’s ability to satisfy its obligations as they come due during the twelve-month period following the issuance of these financial statements. This conclusion is based on the Company’s assessment of qualitative and quantitative conditions and events, considered in aggregate as of the date of issuance of these financial statements that are known and reasonably knowable. Among other relevant conditions and events, the Company has considered

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its operational plans, liquidity sources, obligations due or expected, funds necessary to maintain the Company’s operations, a nd potential adverse conditions or events as of the issuance date of these financial statements. The Company has developed an operational plan that manages expenses and delays initiation of certain operational initiatives to focus on core programs if appro priate funding is not available.

We regularly evaluate opportunities to raise capital and obtain necessary, as well as opportunistic, financing. To meet our short and long-term liquidity needs, we currently expect to use existing cash balances and a variety of other means, including potential issuances of debt or equity securities in public or private financings, including our ongoing ATM Financing Facility, option exercises, and partnerships and/or collaborations. The demand for the equity and debt of biotechnology companies like ours is dependent upon many factors, including the general state of the financial markets. During times of extreme market volatility, capital may not be available on favorable terms, if at all. Our inability to obtain such additional capital could materially and adversely affect our business operations.

While we will continue to seek capital through a number of means, there can be no assurance that additional financing will be available on acceptable terms, if at all, and our negotiating position in capital generating efforts may worsen as existing resources are used.

Additional equity financing, which we expect to raise, may be dilutive to our stockholders; debt financing, if available, may involve significant cash payment obligations and covenants that restrict our ability to operate as a business; and our stock price may not reach levels necessary to induce option exercises. If we are unable to raise the funds necessary to meet our long-term liquidity needs, we may have to delay or discontinue the development of certain or all of our drug candidates or raise funds on terms that we currently consider unfavorable.

Seasonality

The Company does not believe that its operations are seasonal in nature.

Off-Balance Sheet Arrangements

We did not have during the periods presented, and we do not currently have, any off-balance sheet arrangements, as defined under SEC rules.

Contractual Obligations

There were no material changes in contractual obligations as of June 30, 2018 from those provided in our 2018 10-K.

Item 3.

Quantitative and Qualitative Disclosures About Market Risks.

The primary objective of our investment activities is to preserve capital while at the same time maximizing yields without significantly increasing risk. Our cash balance as of June 30, 2018 was held in insured depository accounts, of which approximately $22.4 million exceeded insurance limits. Accordingly, the Company is subject to risk of loss of the uninsured excess.

Item 4.

Controls and Procedures.

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended, as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on such evaluation, and in light of the material weaknesses described below identified by Messrs. Hoffman and Taylor disclosed in our Annual Report on Form 10-K for the year ended March 31, 2018, our Chief Executive Officer and Chief Financial Officer have concluded that, as of June 30, 2018, our disclosure controls and procedures were not effective. The term “disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms.

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Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company’s management, including its principal executive and principal financial officer to allow timely decisions regarding required disclosure. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives and management necessarily applies its judgment in evaluating the cost-benefit relationship of possib le controls and procedures.

The matters involving internal controls and procedures that our management considered to be material weaknesses were as follows:

 

Ineffective information technology general controls (“ITGC”) and application controls within the Company’s general ledger system, disbursement solution and payroll solution, including:

 

o

Insufficient segregation of duties;

 

o

Lack of review controls over activity by administrative users;

 

o

Validation of information and reports used by management.

 

Ineffective controls over period end financial disclosure and reporting processes, including:

 

o

Lack of a formal closing process;

 

o

Lack of communication with non-finance business personnel and sufficient review of business activities, including significant transactions, to determine proper accounting and reporting;

 

o

Insufficient management oversight of outside accounting and financial reporting advisory firm.

 

Lack of sufficient and timely review over account balances, including:

 

o

Inadequate support and description of reconciling items;

Management began implementing certain practices and procedures to address the foregoing material weaknesses and significant deficiencies with plans to complete the remediation of the foregoing deficiencies in the future. Such remediation efforts are discussed below under “Management’s Remediation Initiatives.”

Our management believes that the material weaknesses set forth above did not have an effect on our financial results.

Management’s Remediation Initiatives

Management began implementing certain practices and procedures to address the foregoing material weaknesses with plans to complete the remediation of the foregoing deficiencies in the future. Such remediation efforts are discussed below.

Management’s Actions and Plans to Remediate Material Weaknesses:

Management believes that progress has been made during the quarter ended June 30, 2018, and through the date of this report, to remediate the underlying causes of the material weaknesses in internal control over financial reporting and has taken the following steps to remediate such material weaknesses:

 

We have hired a corporate controller who will provide oversight and define deliverables and responsibilities for the outside accounting and financial reporting advisory firm as well as increase our technical expertise within the accounting function.

 

We continue to enhance our periodic meetings with our outside accounting and financial reporting advisory firm to discuss operating results, significant transactions, conclusions reached regarding technical accounting matters and financial reporting disclosures.

 

We have begun evaluating the control functionality within the disbursement, general ledger, and human resources systems that provide key control functionality. Within these systems, we plan to modify and improve security administration and other access level and systemic controls. Where this is inherently limited, we will establish more effective compensating controls outside such system.

 

We have begun developing a detailed remediation plan with target deadlines for completion.

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Management plans to the following steps to further remediate the material weaknesses as follows:

 

We will formalize processes and policies, including financial closing processes with analytical reviews and implementation of policies for ITGC. Where necessary, we will implement relevant key controls.

 

We will establish a disclosure committee that will include both finance and non-finance representatives.

 

We will improve processes that allow for proactive review of significant transactions, including the creation of a centralized repository for significant agreements.

 

We will continue to develop processes that segregate duties consistent with control objectives.

 

We will establish a periodic review by financial management of account balance detail, journal entry posting activity and account reconciling items.

 

We will work with system vendors and the outside accounting and financial reporting advisory firm to create or modify reports that are relied upon in making financial and business decisions.

The material weaknesses will not be considered remediated until the applicable remedial controls operate for a sufficient period and management has concluded, through testing, that the controls are operating effectively.

Changes in Internal Control over Financial Reporting

Other than as described above under “Management Remediation Initiatives”, there have been no changes in our internal control over financial reporting during our three months ended June 30, 2018 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II – OTHE R INFORMATION

Item 1.

Legal Proceedings.

We are not currently a party to any material legal proceedings and we are not aware of any pending or threatened legal proceeding against us that we believe could have a material adverse effect on us, our business, operating results or financial condition.

Item 1A.

Risk Factors.

Our Annual Report on Form 10-K for the year ended March 31, 2018 includes a detailed discussion of our risk factors.  At the time of this filing, there have been no material changes to the risk factors that were included in the Form 10-K.  

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds.

None.

Item 3.

Defaults Upon Senior Securities.

None.

Item 4.

Mine Safety Disclosures.

Not applicable.

Item 5.

Other Information.

On July 30, 2018, the Company entered into amended employment agreements with each of Ben R. Taylor, age 41, as the Company’s President and Chief Financial Officer, and Dr. Jonathan Eckard, age 44, as the Company’s Chief Scientific Affairs Officer (the “Amended Employment Agreements”). The Amended Employment Agreements modify the severance benefits as described below and provide that all equity awards would immediately vest in the event of a change of control (as defined in the Company’s 2015 Equity Incentive Plan). The Amended Employment Agreement also change the duration of each executive’s non-compete and non-solicitation covenants to two years.

Mr. Taylor’s Amended Employment Agreement provides for an annual salary of $450,000 and a term that is scheduled to expire on the one-year anniversary of the effective date of Amended Employment Agreement unless earlier terminated. Mr. Taylor’s Amended Employment Agreement (i) renews for an additional one-year period unless timely notice of nonrenewal is given or the Amended Employment Agreement is earlier terminated, (ii) provides for severance benefits equal to one year of salary, immediate and full vesting of equity awards, and COBRA payments for 18 months in the event of termination by the Company without “cause” or by the executive for “good reason” (as such terms are defined in the Amended Employment Agreement) and (iii) contemplates the payment of a performance bonus based upon the achievement of performance criteria and goals approved by the Board in its sole discretion. Pursuant to the Amended Employment Agreement, Mr. Taylor continues to hold a sign-on option to purchase up to 1,500,000 shares of the Company’s common stock at a per share exercise price based on a trailing average closing price of the Company’s common stock. The sign-on option has a ten year term and was previously scheduled to vest in four equal annual installments beginning on the one-year anniversary of the grant date of the option. In connection with the Amended Employment Agreement, the sign-on option, which is subject to the terms of the Company’s 2015 Equity Incentive Plan, was subsequently amended on July 30, 2018 to change the vesting terms to vest as if the original sign-on grant had been made on a three-year vesting schedule, vesting in pro-rata increments, as well as to provide for automatic vesting upon a change of control and to permit “net” cashless exercise without the need for further Board approval.

Dr. Eckard’s Amended Employment Agreement provides for an annual salary of $375,000 and a term that is scheduled to expire on the one-year anniversary of the effective date of Amended Employment Agreement unless earlier terminated. Dr. Eckard’s Amended Employment Agreement (i) could renew for an additional one-year term unless timely notice of nonrenewal is given or the Amended Employment Agreement is earlier terminated, (ii) provides for severance benefits equal to one year of salary, immediate and full vesting of equity awards, and COBRA payments for 18 months in the event of termination by the Company without “cause” or by the executive for “good reason” (as such terms are defined in the Amended Employment Agreement) and (iii) contemplates the payment of a performance bonus based upon the achievement of performance criteria and goals approved by the Board in its sole discretion. Pursuant to the Amended Employment Agreement, Dr. Eckard continues to hold a sign-on option to purchase up to 500,000 shares of the Company’s common stock at a per share exercise price based on a trailing average closing price of the Company’s common stock. 50,000 shares vested on the grant date of the option, and the option for the remaining 450,000 shares has a ten year term and was previously scheduled to vest in four equal annual installments beginning on the one-year anniversary of the grant date of the option. In

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connection with the Amended Employment Agreement, the sign-on option, which is s ubject to the terms of the 2015 Equity Incentive Plan, was subsequently amended on July 30, 2018 to change the vesting terms to vest as if the original grant had been made on a three-year vesting schedule, vesting in pro-rata increments, as well as to prov ide for automatic vesting upon a change of control and to permit “net” cashless exercise without the need for further Board approval.

On July 30, 2018, the Board also approved modifications to stock options awarded to employees under the 2015 Equity Incentive Plan on May 24, 2018 to change the vesting terms, which had previously provided for vesting over a four-year period (with 25% of the award vesting on the one-year anniversary of grant and the remaining vesting in pro rata quarterly increments), such that the awards vest instead on a three year vesting schedule, vesting in pro rata quarterly increments. No other terms of these options were modified. These modifications impacted stock option awards to named executive officers Ben R. Taylor, President and Chief Financial Officer (400,000 options), Dr. Jonathan Eckard, Chief Scientific Affairs Officer (300,000 options), and Dr. Giuseppe Del Priore, Chief Medical Officer (300,000 options). The option modification will result in increased stock compensation expense in the second quarter of fiscal 2019 as well as future quarters as a result of the shorter vesting period.  The change in vesting period, however, is not expected to impact the total compensation expense over the life of the awards and such compensation expense is a non-cash expense.

In connection with the Compensation Committee’s continued review of the Company’s executive compensation and non-employee director compensation arrangements, in consultation with its compensation consultant, Pearl Meyer, the Compensation Committee recommended, and the Board approved annual cash retainers for Board service as follows:

 

Committee

Compensation

Compensation Committee

Chair: $12,500

Other Members: $6,250

Audit Committee

Chair: $15,000

Other Members: $7,500

 

As previously disclosed, in February 2018, our Chief Executive Officer, Steve Hoffman, and our Chief Operating Officer, Michael Demurjian, each entered into an individual written trading plan (the “10b5-1 Plans”) in accordance with both Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, and our insider trading policy. Pursuant to these plans, each executive may sell, in one or more transactions, up to one million shares.  Since initiation of those plans, Mr. Hoffman has sold 214,691 shares and Mr. Demurjian has sold 168,015 shares.  The 10b5-1 Plans will remain in effect until January 2019, unless earlier terminated by the executives, should Mr. Hoffman or Mr. Demurjian choose, as an alternative, to sell the balance of the remaining shares in a negotiated or other transaction.

 

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Item 6.

E xhibits.

 

Exhibit

  

 

Number

  

Description

 

 

    3.1

 

Amended and Restated Certificate of Incorporation of Tyme Technologies, Inc. (Incorporated by reference to Exhibit 3.1 to our Current Report on Form 8-K, filed with the SEC on September 19, 2014.)

 

 

 

    3.2

 

Certificate of Amendment to the Amended and Restated Certificate of Incorporation of Tyme Technologies, Inc., effective April 2, 2018 (Incorporated by reference to Exhibit 3.1 to our Current Report on Form 8-K, filed with the SEC on April 2, 2018.)

 

 

 

    3.3

 

Amended and Restated By-Laws of Tyme Technologies, Inc., effective April  2, 2018. (Incorporated by reference to Exhibit 3.2 to our Current Report on Form 8-K, filed with the SEC on April 2, 2018.)

 

 

 

  10.1

  

Amended and Restated 2016 Stock Option Plan for Non-Employee Directors, effective May 24, 2018. (Incorporated by reference to Exhibit 99.1 to our Current Report on Form 8-K, filed with the SEC on May 29, 2018).

 

 

 

  10.2 *

 

Amended Letter Agreement, dated July 30, 2018, by and between Ben R. Taylor and Tyme Technologies, Inc.

 

 

 

  10.3 *

 

Amended and Restated Nonqualified Stock Option Agreement, dated July 30, 2018, by and between Tyme Technologies, Inc. and Ben R. Taylor.

 

 

 

  10.4 *

 

Amended Letter Agreement, dated July 30, 2018, by and between Jonathan Eckard and Tyme Technologies, Inc.

 

 

 

  10.5 *

 

Amended and Restated Nonqualified Stock Option Agreement, dated July 30, 2018, by and between Tyme Technologies, Inc. and Jonathan Eckard.

 

 

 

  10.6 *

 

Form of Amendment to Nonqualified Stock Option Agreement under the Tyme Technologies, Inc. 2015 Equity Incentive Plan.

 

 

 

  10.7 *

 

Form of Stock Option Agreement under the Tyme Technologies, Inc. 2015 Equity Incentive Plan.

 

 

  31.1 *

  

Rule 13(a)-14(a)/15(d)-14(a) Certification of Principal Executive Officer.

 

 

  31.2 *

  

Rule 13(a)-14(a)/15(d)-14(a) Certification of Principal Financial Officer.

 

 

  32.1 * *

  

Section 1350 Certification of Chief Executive Officer and Chief Financial Officer.

 

 

101.INS  *

  

XBRL Instance Document.

 

 

101.SCH  *

  

XBRL Schema Document.

 

 

101.CAL  *

  

XBRL Calculation Linkbase Document.

 

 

101.DEF  *

  

XBRL Definition Linkbase Document.

 

 

101.LAB  *

  

XBRL Label Linkbase Document.

 

 

101.PRE  *

  

XBRL Presentation Linkbase Document.

 

Management contract or compensatory plan or arrangement.

*  

Filed herewith.

**

Furnished herewith.

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SIGNAT URES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Dated: July 31, 2018

 

TYME TECHNOLOGIES, INC.

 

 

By:

 

/s/ Steve Hoffman

 

 

Steve Hoffman

 

 

Chief Executive Officer

(Principal Executive Officer)

 

 

By:

 

/s/ Ben R. Taylor

 

 

Ben R. Taylor

 

 

President and Chief Financial Officer

 

 

(Principal Financial Officer and Principal Accounting Officer)

 

23

Exhibit 10.2

TYME TECHNOLOGIES, INC.

17 State Street – 7 th Floor

New York, New York 10004

July 30, 2018

Ben Roberts Taylor

Dear Ben:

This letter sets forth our amended and restated agreement with respect to your employment (hereinafter “amended letter agreement ”) with Tyme Technologies, Inc., a Delaware corporation (the “ Company ”).

1. Employment .  You will continue your employment with the Company upon the terms and conditions set forth in this amended letter agreement beginning on the first business day immediately following the date that you sign this amended letter agreement (the “ Effective Date ”) and ending as provided in Section 4 (the “ Employment Period ”).  

2. Position and Duties .  During the Employment Period, you will serve as President and Chief Financial Officer of the Company and will have the usual and customary duties, responsibilities and authorities of a person in such positions and such other duties assigned to you by the Board of Directors of the Company (the “Board”), the Chief Executive Officer of the Company (the “ CEO ”) and/or the Board’s Audit Committee (the “ Audit Committee ”), in all cases that are consistent with your position(s).  You will report directly to the CEO and the Board.  You will devote your full working time, efforts and attention to, and diligently and conscientiously perform the duties of, such positions.  In addition to performing such duties for the Company, you may be required to perform similar duties for the Company’s existing subsidiaries or affiliates, and/or any subsidiaries and/or affiliates which may be formed or acquired from time to time in the future, including without limitation Tyme Inc., a Delaware corporation, and Luminant Biosciences, LLC (collectively, all such subsidiaries and/or affiliates shall be referred to as the “ Company Affiliates ”).  Except for travel for business purposes, you will be employed and your primary office will be located at the Company offices located at 17 State Street – 7 th Floor – New York, New York 10004 (the “ Company Office ”).

3. Compensation .

(a) During the Employment Period, your base salary will be $450,000.00 per annum (your “ Base Salary ”).  Your Base Salary will be payable in regular installments in accordance with the Company’s general payroll practices and subject to withholding and other payroll taxes.  Your Base Salary may be reviewed annually (beginning on or about the first anniversary date of this amended letter agreement) by the Board and may be increased by the Board in its sole discretion.  Unless agreed by you in writing, your Base Salary may not be decreased by the Board or otherwise.

(b) You will also be entitled, conditioned upon your continued employment with the Company or one of the Company Affiliates through and including the applicable date of payment, to receive one or more special bonuses (each, a “ Performance Bonus ”), in such

1485734v2


amount(s), for such period(s) and based on such criteria as determined from time to time, and if ever, by the Board in t he Board s sole discretion .

(c) During the Employment Period, you will be entitled to participate in all employee benefit programs, including without limitation health/medical insurance, for which senior executive employees of the Company are generally eligible, subject to applicable plans and policies as may be amended from time to time, in the sole discretion of the Board.  During the Employment Period, you will be entitled to four weeks paid vacation during each calendar year, with such vacation time pro-rated for any partial calendar years during the Employment Period; provided , however , that no carry-over of unused vacation time shall be permitted and no compensation shall be paid for any such unused vacation time.

(d) The Company shall reimburse you for all reasonable out-of-pocket business expenses incurred by you on behalf of the Company during the Employment Period; provided that you properly account to the Company for all such expenses in accordance with the policies of the Company and the rules, regulations and interpretations of the U.S. Internal Revenue Service relating to reimbursement of business expenses (“ Expenses ).  

(e) During the Employment Period, the Company will maintain Directors and Officers Liability Insurance coverage that includes coverage of you, subject to the terms and conditions of such policy and with limits customary for similarly situated companies.

(f) You shall continue to hold the Option (as defined in your March 15, 2017 letter agreement with the Company), pursuant to the terms of that March 15, 2017 letter agreement, as the 2015 Plan and Option Agreement (each as defined in the March 15, 2017 letter agreement) may be amended.  

4. Termination .  The Employment Period will end on the date which is 12 months ( i.e. , one year) following the Effective Date (the “ Expiration Date ”), unless sooner terminated as provided below.  Unless the Employment Period has been terminated in accordance with the following sentence of this Section 4 or one party is given at least 60 days’ advance, written notice that you or the Company seek to terminate the employment arrangement on the Expiration Date, the Employment Period shall automatically be extended by an additional 12 months.  Notwithstanding the foregoing, the Employment Period (i) will terminate upon your death, (ii) may be terminated by the Company upon Notice of Termination (as defined in Section 5(e) below) delivered to you as a result of your Disability (as defined in Section 5(g) below), (iii) may be terminated by the Company at any time for Cause (as defined in Section 5(f) below), (iv) may be terminated by you for Good Reason (as defined in Section 5 (h) below) and (v) may be terminated by the Company without Cause.  

5. Severance .

(a) If the Employment Period is terminated by the Company without Cause or by you for Good Reason, you will be entitled to receive (i) your Base Salary as in effect at the time of such termination to the extent such amount has accrued through the Termination Date (as defined in Section 5(e) below) and remains unpaid, (ii) any fully earned and declared but unpaid Performance Bonus as of the Termination Date, (iii) an amount equal to one year of your Base

 

2


Salary , less applicable withholdings, which shall be payable in the same amounts and at the same intervals as if the Employment Period had not ended , ( i v ) except as set forth in the final sentence of this Section 5(a), immediate and full vesting of all your equity awards , (v) if you timely elect continued coverage pursuant to COBRA, payment of your share of the premium cost at the same rate as for active employees of the Company for the 18- month period following the Termination Date , and (vi) any unpaid Expenses as of the Termination Date . Except as set forth in Section 5(d), u pon delivery of the payments and benefits described in this Section 5(a) , the Company shall have no further obligation to you under this amended letter agreement or otherwise with respect to your employment with the Company ; provided , however , t he Company s obligation to make the payment s to you described in clause s (iii ) , (iv) and (v) of this Section 5(a) is conditioned upon your executing and delivering, no later than 45 days following the Termination Date (and not revoking) , a release relating to your employment by the Company in favor of the Company, the Company Affiliates and their respective stockholders, officers, members, managers, directors, employees, subsidiaries and affiliates substantially in the form attached as Exhibit A ; provided , further , that until the period to revoke such release has expired , the Company shall retain any Base Salary installment payment that would otherwise be made pursuant to clause ( ii i) of this Section 5(a) , with such payment being made on the next regularly scheduled payroll date after such revocation period expires .   In the event that the Company’s delivers written notice to you that the Board, in its good faith and reasonable judgment, has determined that you have been negligent in the performance of your duties , provided that you have been given an opportunity of no less than 30 days after receipt of such notice to cure any such instances of negligence, if the Company terminates you r employment without Cause following the Board’s good faith, reasonable determination that you have failed to cure, any unvested equity awards that you hold will be forfeited.

(b) If the Employment Period is terminated by the Company for Cause or by you other than for Good Reason, the Company will pay you (i) your Base Salary as in effect at the time of such termination to the extent such amount has accrued through the Termination Date and remains unpaid, (ii) any fully earned and declared but unpaid Performance Bonus as of the Termination Date, and (iii) any unpaid Expenses as of the Termination Date. Except as set forth in Section 5(d), upon delivery of the payments described in this Section 5(b), the Company will have no further obligation to you under this amended letter agreement with respect to your employment with the Company.

(c) If the Employment Period is terminated due to your Disability (as defined in Section 5(g) below) or death, the Company will pay you or your estate, whichever is applicable, (i) your Base Salary as in effect at the time of such termination to the extent such amount has accrued through the Termination Date and remains unpaid, (ii) any fully earned and declared but unpaid Performance Bonus as of the Termination Date, and (iii) any unpaid Expenses as of the Termination Date. Except as set forth in Section 5(d), upon delivery of the payments described in this Section 5(c), the Company will have no further obligation to you under this amended letter agreement or otherwise with respect to your employment with the Company.

(d) Except as otherwise required by law or as specifically provided herein, all of your rights to salary, severance, fringe benefits, bonuses and any other amounts hereunder (if any) accruing after the termination of the Employment Period will cease upon the earlier of the

 

3


Termination D ate and your last day of active service.  In the event the Employment Period is terminated, your sole remedy, and the sole remedy of your successors, assigns, heirs, representatives and estate, will be to receive the payments described in this amended letter agreement .   Notwithstanding the foregoing, the following rights will survive any termination of the Employment Period:   (i) your rights to accrued and vested benefits under any benefit plan of the Company or any of the Company Affiliates, or as set forth in any other agreement between you and the Company or any of the Company Affiliates, (ii) your right to continued participation in the Company s health and welfare plans , except as otherwise provided in Section 5(a)(v) , at your own expense pursuant to COBRA, ( i ii) your right to indemnification in respect of your service as a director or officer of the Company or any of the Company Affiliates , to the maximum extent provided under applicable law, the Company s Certificate of Incorporation and By - law s (each , as they may be amended from time-to-time ) , and any other agreement between you and the Company, (iv) your rights in respect of shares of Common Stock that you hold and (v) your rights in respect of any eq uity-based awards that remain outstanding following the Employment Period (subject to the provisions of this Agreement and any equity plan or award agreement that governs the terms of such equity-based awards ) .  

(e) Any termination of the Employment Period by the Company (other than termination upon your death) or by you must be communicated by written notice (in either case, a “ Notice of Termination ”) to you, if the Company is the terminating party, or to the Company, if you are the terminating party.  For purposes of this amended letter agreement, “ Termination Date ” means (i) if the Employment Period is terminated due to your death, the date of your death and (ii) if the Employment Period is terminated due to your Disability, by the Company (for Cause or without Cause) or by you (for Good Reason or without Good Reason), the date specified in the Notice of Termination (which may not be earlier than the date of such Notice of Termination).  Notwithstanding anything contained herein to the contrary, any termination of the Employment Period by you must be communicated to the Company no less than 30 days prior to the intended Termination Date.  

(f) For purposes of this amended letter agreement, “ Cause ” means any one of the following: (i) a material breach by you of this amended letter agreement, (ii) your conviction of, guilty plea to, or confession of guilt of, a felony involving the Company, (iii) materially fraudulent, dishonest or illegal conduct by you in the performance of services for or on behalf of the Company or any of the Company Affiliates, (iv) any repeated conduct by you in material violation of Company policy, (v) any conduct by you that is materially detrimental to the reputation of the Company or any of the Company Affiliates, (vi) your misappropriation of funds of the Company or any of the Company Affiliates, (vii) your gross negligence or wilful misconduct or wilful failure to comply with written directions of the Board which directions are within the scope of your duties hereunder, or (viii) your engaging in conduct involving an act of moral turpitude.  A purported termination of your employment for Cause shall not be effective unless (A) the Company provides written notice to you of the facts alleged by the Company to constitute Cause and such notice is delivered to you no more than 90 days after the Company has actual knowledge of such facts and (B) you have been given an opportunity of no less than ten days after receipt of such notice to cure the circumstances alleged to give rise to Cause and the Company, has cooperated in good faith with your efforts to cure such condition or circumstance, but only to the extent that such circumstances are reasonably curable.

 

4


(g) For purposes of this amended letter agreement Disability means any accident, sickness, incapacity or other physical or mental disability which prevents you from performing substantially all of the duties you have been assigned by the Company or any of its subsidiaries for either (i) 90 consecutive days or (ii) 1 8 0 days during any period of 365 consecutive days, in each case as determined in good faith by the Board. During the time periods specified above, the Company will continue to provide you with the compensation stated in Section 3 above.

(h) For purposes of this amended letter agreement, “ Good Reason ” means (i) a material diminution in your authority, title, duties or responsibilities, (ii) the failure of the Company to make all payments due to you under this amended letter agreement or otherwise or (iii) the relocation of your primary office to a location more than 25 miles from the Company Office.  A purported termination of your employment for Good Reason shall not be effective unless (A) you provide written notice to the Company of the facts alleged by you to constitute Good Reason and such notice is delivered to the Board no more than 90 days after the occurrence of such event, (B) the Company has been given an opportunity of no less than 30 days after receipt of such notice to cure the circumstances alleged to give rise to Good Reason and you have cooperated in good faith with the Company’s efforts to cure such condition or circumstance (which cooperation will not require Executive to waive or diminish any of his rights hereunder), but only to the extent that such circumstances are reasonably curable, and (c) you elect to terminate the Employment Period within 30 days following the end of the Company’s cure period due to the Company’s failure to cure.

6. Change of Control .  

(a) In the event of a Change of Control (as defined in the 2015 Plan or a successor plan), all equity awards you hold shall, to the extent unvested, fully vest as of immediately prior to such Change of Control.  

(b) Notwithstanding any other provision of this amended letter agreement:

(i) In the event it is determined by an independent nationally recognized public accounting firm that is reasonably acceptable to you, which is engaged and paid for by the Company prior to the consummation of any transaction constituting a 280G Change of Control (which for purposes of this Section 6(b) shall mean a change in ownership or control as determined in accordance with the regulations promulgated under Section 280G of the Internal Revenue Code of 1986, as amended (the “ Code ”), which accounting firm shall in no event be the accounting firm for the entity seeking to effectuate the 280G Change of Control (the “ Accountant ”), which determination shall be certified by the Accountant and set forth in a certificate delivered to you not less than ten business days prior to the 280G Change of Control setting forth in reasonable detail the basis of the Accountant’s calculations (including any assumptions that the Accountant made in performing the calculations), that part or all of the consideration, compensation or benefits to be paid to you under this amended letter agreement constitute “parachute payments” under Section 280G(b)(2) of the Code, then, if the aggregate present value of such parachute payments, singularly

 

5


or together with the aggregate present value of any consideration, compensation or benefits to be paid to you under any other plan, arrangement or agreement which constitute parachute payments (collectively, the Parachute Amount ) exceeds the maximum amount that would not give rise to any liability under Section 4999 of the Code, the amounts constituting parachute payments which would otherwise be payable to you or for your benefit shall be reduced to the maximum amount that would not give rise to any liability under Section 4999 of the Code (the Reduced Amount ); provided that such amounts shall not be so reduced if the Accountant determines that without such reduction you would be entitled to receive and retain, on a net after-tax basis (including, without limitation, any excise taxes payable under Section 4999 of the Code), an amount which is greater than the amount, on a net after-tax basis, that you would be entitled to retain upon receipt of the Reduced Amount.  In connection with making determ inations under this Section 6 (b) , the Accountant shall take into account any positions to mitigate any excise taxes payable under Section 4999 of the Code, such as the value of any reasonable compensation for services to be rendered by you before or after the 280G Change of Control .

(ii) If the determination made pursuant to Section 6(b) results in a reduction of the payments that would otherwise be paid to you except for the application of Section 6(b), the Company shall promptly give you notice of such determination.  Such reduction in payments shall be first applied to reduce any cash payments that you would otherwise be entitled to receive (whether pursuant to this amended letter agreement or otherwise) and shall thereafter be applied to reduce other payments and benefits, in each case, in reverse order beginning with the payments or benefits that are to be paid the furthest in time from the date of such determination, unless, to the extent permitted by Section 409A (as defined in Section 13(h)), you elect to have the reduction in payments applied in a different order; provided that, in no event may such payments be reduced in a manner that would result in subjecting you to additional taxation under Section 409A.  Within ten business days following such determination, the Company shall pay or distribute to you or for your benefit such amounts as are then due to you under this amended letter agreement and shall promptly pay or distribute to you or for your benefit in the future such amounts as become due to you under this amended letter agreement.

(iii) As a result of the uncertainty in the application of Sections 280G and 4999 of the Code at the time of a determination hereunder, it is possible that amounts will have been paid or distributed by the Company to or for your benefit pursuant to this amended letter agreement which should not have been so paid or distributed (each, an “ Overpayment ”) or that additional amounts which will have not been paid or distributed by the Company to or for your benefit pursuant to this amended letter agreement could have been so paid or distributed (each, an “ Underpayment ”), in each case, consistent with the calculation of the Reduced Amount hereunder.  In the event that the Accountant, based upon the assertion of a deficiency by the Internal Revenue Service against either the Company or you which the Accountant believes has a high probability of success, determines that

 

6


an Overpayment has been made, any such Overpayment paid or distributed by the Company to or for your benefit shall be repaid by you to the Company together with interest at the applicable federal rate provided for in Section 7872(f)(2)(A) of the Code; provided , however , that no such repayment shall be required if and to the extent such deemed repayment would not either reduce the amount on which you are subject to tax under Sections 1 and 4999 of the Code or generate a refund of such taxes.  In the event that the Accountant, based on controlling precedent or substantial authority, determines that an Underpayment has occurred, any such Underpayment shall be promptly paid by the Company to or for your benefit together with interest at the applicable federal rate provided for in Section 7872(f)(2)(A) of the Code.

(iv) In the event of any dispute with the Internal Revenue Service (or other taxing authority) with respect to the application of this Section 6(b), you shall control the issues involved in such dispute and make all final determinations with regard to such issues. Notwithstanding anything herein to the contrary, the Company shall promptly pay, upon demand by you, all legal fees, court costs, fees of experts and other costs and expenses which you incur no later than ten years following your death in any actual, threatened or contemplated contest of your interpretation of, or determination under, the provisions of this Section 6(b).  

7. Confidential Information .

(a) You will not disclose or use at any time any Confidential Information (as defined below in Section 7(c)), whether or not such information is developed by you, except to the extent that such disclosure or use is required in the performance or exercise by you in good faith of (i) duties assigned to you under this amended letter agreement or otherwise by the CEO or Board, (ii) rights as an employee, officer, director or shareholder of the Company or any of the Company Affiliates or (iii) rights under any agreement with the Company or any of the Company Affiliates.

(b) You will deliver to the Company at the termination of the Employment Period, or at any time the Company may request, all memoranda, notes, plans, designs, records, reports, computer files and software and other documents and data (and copies thereof) that are Confidential Information or Work Product (as defined below) or information relating to the business of the Company or the Company Affiliates which you may then possess or have under your control.

(c) As used in this amended letter agreement, the term “ Confidential Information ” means information that is not generally known or available to the public and that is used, developed or obtained by the Company or any of the Company Affiliates in connection with its or their businesses, including without limitation (i) information, observations and data concerning its and their business and affairs, (ii) products or services, (iii) fees, costs and pricing structures, (iv) designs, (v) analyses, (vi) drawings, designs, photographs, artwork and reports, (vii) computer software, including operating systems, applications and program listings, (viii) flow charts, manuals and documentation, (ix) data bases, (x) accounting and business methods, (xi) inventions, devices, new developments, methods and processes, whether patentable or

 

7


unpatentable and whether or not reduced to practice, (xi i) other copyrightable works, (xiii ) all production methods, processes, technology and trade secrets, (xiv) product and product candidate formulae and any trade secrets with respect to such products and product candidates and (xv) all similar and related information in whatever form.

(d) Notwithstanding the provisions of this amended letter agreement to the contrary, you will have no liability to the Company for disclosure of Confidential Information if the Confidential Information:

(i) is in the public domain or becomes publicly known in the industry in which the Company or any of the Company Affiliates operates or is disclosed by the Company or any of the Company Affiliates other than as the result of a breach of this amended letter agreement or any other agreement by you; or

(ii) is required to be disclosed by law, court order, or similar compulsion or in connection with any legal proceeding; provided , however , that such disclosure will be limited to the extent so required and, subject to the requirements of law, you will give the Company notice of your intent to so disclose such Confidential Information and will cooperate with the Company in seeking confidentiality protections.

(e) Notwithstanding the foregoing, nothing in or about this amended letter agreement prohibits you from (i) filing and, as provided for under Section 21F of the Securities Exchange Act of 1934, as amended (the “ Exchange Act ”), maintaining the confidentiality of a claim with the Securities and Exchange Commission (the “ SEC ”); (ii) providing Confidential Information to the SEC, or providing the SEC with information that would otherwise violate this Section 7, to the extent permitted by Section 21F of the Exchange Act; (iii) cooperating, participating or assisting in an SEC investigation or proceeding concerning the Company without notifying the Company; or (iv) receiving a monetary award as set forth in Section 21F of the Exchange Act.  Furthermore, you are advised that you shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of any Confidential Information that constitutes a trade secret to which the Defend Trade Secrets Act (18 U.S.C. Section 1833(b)) applies that is made (A) in confidence to a federal, state or local government official, either directly or indirectly, or to an attorney, in each case, solely for the purpose of reporting or investigating a suspected violation of law or (B) in a complaint or other document filed in a lawsuit or proceeding, if such filings are made under seal.

8. Inventions and Patents .  You agree that all inventions, innovations, improvements, technical information, trade secrets, systems, software developments, ideas, results, methods, designs, artwork, analyses, drawings, reports, copyrights, service marks, trademarks, trade names, logos and all similar or related information (whether patentable or unpatentable) which relate to the Company’s or any of the Company Affiliates’ businesses, research and development or existing products (or products under development) or services and which are conceived, developed or made by you (whether or not during usual business hours and whether or not alone or in conjunction with any other person) during your continued employment with the Company, together with all intellectual property rights therein, including without limitation any patent applications, letters patent, trademark, trade name and service mark applications or registrations,

 

8


copyrights and reissues thereof that may be granted for or upon any of the foregoing (collectively referred to herein as Work Product ), is the exclusive prop erty of the Company and/or the Company A ffiliates.  For the avoidance of doubt and without limiting the foregoing, ( x ) the Company or an y of the Company A ffiliates shall be the sole owner of all right, title and interest in such Work Product, including without limitation all intellectual property rights relating to such Work Product, without you retaining any license or other residual right whatsoever, and ( y ) any rights to any new or an existing Work Product are automatically conveyed, assigned and transferred to the Company pursuant to this amended letter agreement .  You hereby waive and renounce to all moral rights related, directly or indirectly, to any such existing or new Work Product.  You will take reasonable steps to promptly disclose such Work Product to the CEO and Board and perform all actions reasonably requested by the CEO and Board (whether during or after the Employment Period) to establish and confirm such ownership (including without limitation the execution and delivery of assignments, consents, powers of attorney and other instruments) and to provide reasonable ass istance to the Company and the Company A ffiliates in connection with the prosecution of any applications for patents, trademarks, trade names, service marks or reissues thereof or in the prosecution or defense of interferences relating to any Work Product.

9. Non-Competition; Non-Solicitation; Non-Disparagement .

(a) You acknowledge that, in the course of your employment with the Company, you have and will continue to become familiar with the Company’s and the Company Affiliates’ trade secrets and with other Confidential Information concerning the Company and the Company Affiliates and that your services will be of special, unique and extraordinary value to the Company and the Company Affiliates.  Therefore, you agree that, during the Restriction Period (as defined in Section 9(b) below), and for a period of eighteen (18) months following such Restriction Period, you will not (x) anywhere the Company or any of the Company Affiliates conducts business or (y) anywhere the Company or any of the Company Affiliates has spent time and resources in connection with expanding its business, directly or indirectly, either on your own behalf or on behalf of any other person, firm or entity:

(i) own, manage, operate, consult with, provide financing to, or join, control or participate in the ownership, management, operation or control of, any business wherever located (whether in corporate, proprietorship or partnership form or otherwise), if such business is engaged in the business of manufacturing, marketing, sale, research or development of pharmaceuticals for cancer utilizing a methodology or mechanism that is similar to methodologies or mechanisms used by the Company (collectively, “ Specified Therapies ”); provided, however, that this Section 9(a)(i) shall not prohibit you from working, after the Restriction Period for an entity that engages in the manufacture, sale, marketing or distribution of pharmaceutical products so long as neither you nor such employer is involved in the manufacturing, marketing, sale or research or development of therapeutics or pharmaceuticals for any of the Specified Therapies; or

(ii) except as permitted by Section 7(e), say anything which is harmful to the reputation of the Company or any of the Company Affiliates or which could be reasonably expected to lead any person to cease to deal with the Company or

 

9


any of the Company Affiliates on substantially equivalent terms to those previously offered or at all.

(b) For purposes of this amended letter agreement, “ Restriction Period ” means (i) the Employment Period and any other period during which you are employed by the Company or any of its Affiliates, whether pursuant to this Agreement or otherwise, and (ii) a period of six months following your separation from employment, regardless of the reason for your separation and whether caused by you or the Companye.

(c) Nothing in Section 9(a) will prohibit you from being a passive owner of not more than 2% of the outstanding stock of a publicly-traded corporation, so long as you have no active participation in the business of such corporation.

(d) During the Restriction Period and for a period of eighteen (18) months following the Restriction Period, you also will not:

(i) induce or attempt to induce any customer, supplier or other business relation of the Company or any of the Company Affiliates to cease doing business with the Company or any of the Company Affiliates, or in any way interfere with the relationship between any such customer, supplier or business relation, on the one hand, and the Company or any of the Company Affiliates, on the other hand;

(ii) engage, employ, solicit or contact with a view to the engagement or employment of, any employee, officer or manager of, or full-time consultant to, the Company or any of the Company Affiliates or any person who has been an employee, officer or manager of, or consultant to, the Company or any of the Company Affiliates, if he or she has been in such a role at any time within the immediately prior three months; or

(iii) assist any individual or entity to engage in the conduct referenced in clauses (i) and (ii) immediately above.

(e) The Company, on behalf of itself and all of the Company Affiliates, agrees that during the Restriction Period they and their executive officers (or other persons acting on their behalf) will not say anything which is harmful to your reputation or which could be reasonably expected to lead any person to cease to deal with you or engage you in any consulting or employment position.

10. Enforcement .

(a) Because the employment relationship between you and the Company is unique and because you have access to Confidential Information and Work Product, you agree that money damages would be an inadequate remedy for any breach of Section 7, 8 or 9.  Therefore, in the event of a breach or threatened breach of Section 7, 8 or 9, the Company may, in addition to its other rights and remedies, apply to any court of competent jurisdiction for specific performance and/or injunctive or other relief in order to enforce, or prevent any violations of, such provisions (without posting a bond or other security).

 

10


(b) Sections 5, 6, 7, 8 and 9 will expressly survive termination of this amended letter agreement .   The existence of any claim or cause of action by you against the Company and/or any of the Company Affiliates shall not constitute a defense to the enforcement by the Company of the covenants contained in Section 6 (b) , 7, 8 or 9 , but such claim or cause of action s hall be litigated separately.

11. Notices .  All notices, requests, demands, claims, and other communications hereunder will be in writing.  Any notice, request, demand, claim or other communication hereunder will be deemed duly given (a) upon delivery, if delivered personally to the recipient, against written receipt therefor, or (b) upon the first Business Day after the date sent, if sent priority next Business Day delivery to the intended recipient by a reputable express courier service (charges prepaid) and addressed to the intended recipient as set forth below:

If to the Company, to:

Steve Hoffman, Chief Executive Officer

Tyme Technologies, Inc.

17 State Street - 7 th Floor

New York, New York 10004

and with a copy (which shall not constitute notice) to:

Attn: Jim Biehl, Esq.

Drinker Biddle & Reath, LLP

105 College Road East, P.O. Box 627

Princeton, NJ 08542-0627

If to you, to the address appearing in the Company’s records.

Any party hereto may send any notice, request, demand, claim or other communication hereunder to the intended recipient at the address set forth above using any other means, but no such notice, request, demand, claim or other communication will be deemed to have been duly given unless and until it actually is received and acknowledged by the intended recipient.  Any party hereto may change the address (or add new parties and their addresses) to which notices, requests, demands, claims, and other communications hereunder are to be delivered by giving the other parties hereto notice in the manner set forth in this Section 11.

12. Representations and Warranties . You hereby represent and warrant to the Company that (a) the execution, delivery and performance of this amended letter agreement by you does not and will not conflict with, breach, violate or cause a default under any agreement, contract or instrument to which you are a party or any judgment, order or decree to which you are subject, (b) you are not a party to or bound by any employment agreement, consulting agreement, non-compete agreement, confidentiality agreement or similar agreement with any other person or entity that is inconsistent with the provisions of this amended letter agreement, (c) upon the execution and delivery of this amended letter agreement by the Company and you, this amended letter agreement will be a valid and binding obligation of you and (d) you are able to perform the services described in this amended letter agreement.  The Company hereby represents and warrants to you that (i) the execution, delivery and performance of this amended

 

11


letter agreement does not and will not conflict with, breach, violate or cause a default under any agreement, contract or instrument to which it is a party or any judgment, order or decree to which it is subject and (ii) upon the execution and delivery of this amended letter agreement by the Company and you , such agreement s will be valid and binding obligation s of the Company.

13. Lock-Up Agreement .  In connection with a registration with the United States Securities and Exchange Commission under the Securities Act of the public sale of shares of Common Stock, you shall not sell, make any short sale of, loan, grant any option for the purchase of, or otherwise dispose of any securities of the Company (other than those included in the registration) without the prior written consent of the Company or such underwriters, as the case may be, for such period of time prior to the effective date of such registration and continuing through and following the effective date of such registration (not to exceed 180 days) as the Company or the underwriters, as the case may be, shall specify.  You agree that the Company may instruct its transfer agent to place stop-transfer notations in its records to enforce the provisions of this Section.  You shall execute a form of agreement reflecting the foregoing restrictions as requested by the underwriters managing such offering.

14. General Provisions .

(a) Severability .  It is the desire and intent of the parties hereto that the provisions of this amended letter agreement be enforced to the fullest extent permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought.  Accordingly, if any particular provision of this amended letter agreement will be adjudicated by a court of competent jurisdiction to be invalid, prohibited or unenforceable for any reason, such provision, as to such jurisdiction, will be ineffective, without invalidating the remaining provisions of this amended letter agreement or affecting the validity or enforceability of this amended letter agreement or affecting the validity or enforceability of such provision in any other jurisdiction.  Notwithstanding the foregoing, if such provision could be more narrowly drawn so as not to be invalid, prohibited or unenforceable in such jurisdiction, it will, as to such jurisdiction, be so narrowly drawn, without invalidating the remaining provisions of this amended letter agreement or affecting the validity or enforceability of such provision in any other jurisdiction.

(b) Complete Agreement .  This amended letter agreement and any schedules or exhibits expressly constitute the entire agreement among the parties hereto with respect to the subject matter hereof and supersedes and pre-empts any prior understandings, agreements or representations by or among the parties, written or oral, which may have related to the subject matter hereof in any way, including your March 15, 2017 letter agreement with the Company. Notwithstanding the foregoing statement, as set forth in paragraph 3(f), you shall continue to hold the Option (as defined in your March 15, 2017 letter agreement with the Company), pursuant to the terms of that March 15, 2017 letter agreement, and the 2015 Plan and Option Agreement (each as defined in the March 15, 2017 letter agreement), as may be amended.

(c) Successors and Assigns .  Except as otherwise provided herein, this amended letter agreement will be binding upon and inure to the benefit of you and the Company and our respective successors, permitted assigns, personal representatives, heirs and estates, as

 

12


the case may be; provided , however , that your rights and obligations under this amended letter agreement will not be assigned without the prior written consent of the Company.

(d) Governing Law .  This amended letter agreement will be governed by and construed in accordance with the domestic laws of New York, without giving effect to the choice of law provisions thereof.  The parties agree that the exclusive venue for all disputes under this amended letter agreement shall be the federal and state courts sitting in New York, New York.

(e) Amendment and Waiver .  The provisions of this amended letter agreement may be amended and waived only with the prior written consent of the Company (with the approval of the Board) and you, and no course of conduct or failure or delay in enforcing the provisions of this amended letter agreement will affect the validity, binding effect or enforceability of this amended letter agreement or any provision hereof.

(f) Headings .  The section headings contained in this amended letter agreement are inserted for convenience only and will not affect in any way the meaning or interpretation of this amended letter agreement.

(g) Counterparts .  This amended letter agreement may be executed in counterparts, each of which will be deemed an original and all of which together will constitute one and the same instrument.  The signatures of any of the persons executing this amended letter agreement may be transmitted via facsimile or other electronic means and shall be sufficient evidence of the execution of this amended letter agreement.

(h) 409A Provision .  (i)  For purposes of this amended letter agreement the term “ termination of employment ” and similar terms relating to your termination of employment mean a “ separation from service ” as that term is defined under Section 409A of the Internal Revenue Code of 1986, as amended, and the final regulations issued thereunder (“ Section 409A ”).  The Company and you intend that this amended letter agreement comply in form and operation with the requirements of Section 409A, and all provisions of this amended letter agreement shall be construed and interpreted in a manner consistent with the requirements for avoiding taxes or penalties under Section 409A.  To the extent permitted by applicable Department of Treasury/Internal Revenue Service guidance, or law or regulation, the Company and you will take reasonable actions to reform this amended letter agreement or any actions taken pursuant to their operation of this amended letter agreement in order to comply with Section 409A.

(ii) For purposes of Section 409A, each of the payments that may be made hereunder is designated as a separate payment.  To the extent that the Company determines that any payment or benefit pursuant to this amended letter agreement constitutes deferred compensation (within the meaning of Section 409A), such payment or benefit shall be made at such times and in such forms as the Company determines are required to comply with Section 409A (including, without limitation, in the case of a “specified employee” within the meaning of Section 409A, the six-month delay for amounts payable upon a separation from service) and the Treasury Regulations and any applicable guidance thereunder.  

 

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(iii) Except as specifically permitted by Section 409A or as otherwise specifically set forth in this amended letter agreement , the benefits and reimbursements provided to you under this amended letter agreement and any Company plan or policy during any calendar year shall not affect the benefits and reimbursements to be provided to you under the relevant section of this amended letter agreement or any Company plan or policy in any other calendar year, and the right to such benefits and reimbursements cannot be liquidated or exchanged for any other benefit and shall be provided in accordance with Treas. Reg. Section 1.409A-3(i)(1)(iv) or any successor thereto.  Further, in the case of reimbursement payments, reimbursement payments shall be made to you as soon as practicable following the date that the applicable expense is incurred and proper documentation is provided to the Company , but in no event later than the last day of the calendar year following the calendar year in which the underlying expense is incurred.  

(i) “Business Day” Defined .  For purposes of this amended letter agreement, the capitalized term “ Business Day ” shall mean any calendar day other than a Saturday, Sunday or other day on which banks in New York, New York are authorized or required to be closed.

[THE REMAINDER OF THIS PAGE HAS INTENTIONALLY BEEN LEFT BLANK]

 

 

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If this amended letter agreement correctly expresses our mutual understanding, please sign and date a copy of this amended letter agreement and return it to the Company .

 

Very truly yours,

 

 

 

Tyme Technologies, Inc.

 

 

 

By:

/s/ Steve Hoffman

 

Name:

Steve Hoffman

 

Title:

Chief Executive Officer

 

The terms of this amended letter agreement are accepted
and agreed to as of the date set forth below by:

 

/s/ Ben Roberts Taylor

Ben Roberts Taylor

 

 

Date 7/30/18

 

 

1485734v2


 

EXHIBIT A

Form of Release

RELEASE

This Release (“ Release ”) is delivered by Ben Roberts Taylor on this __ day of _________, 20__.

DEFINITIONS

A. As used herein, unless otherwise specified, the term Employer ” shall mean Tyme Technologies, Inc., and all of its affiliates, successors, predecessors, assigns, parents, subsidiaries, divisions (whether incorporated or unincorporated), and all of its and their past and present owners, directors, officers, trustees, shareholders, managers, employees and agents (in their individual and representative capacities).

B. As used herein, unless otherwise specified, the term “ Employee ” shall mean Ben Roberts Taylor and all of his heirs, family members, executors, accountants, administrators, attorneys, agents, assigns, successors and representatives.

RECITALS

WHEREAS, Employee s employment ended on

, 20__; and

WHEREAS, it is a condition to Employee’s receipt of certain post-employment benefits (“ Conditional Benefits ”) under Sections 5(a)(iii), (iv) and (v) of the amended letter agreement, dated July 26, 2018 (the “ Employment Agreement ”), between Employee and Employer that Employee execute this Release.

NOW THEREFORE, in consideration of the promises, representations and mutual covenants contained in this Release, and for other good and valuable consideration, the sufficiency of which is hereby acknowledged, it is agreed as follows:

1. Consideration .  Employee acknowledges that the Conditional Benefits are in excess of any earned wages or benefits due and owing to Employee, and would not be paid or provided unless Employee executed this Release.  Employee acknowledges and agrees that the Conditional Benefits are adequate and independent consideration for Employee executing this Release and releasing any and all claims against Employer.

2. Release of All Claims .  In consideration of the above, and the other promises set forth in this Release, Employee fully and forever waives, releases, acquits and discharges Employer from and for all manner of claims, actions, suits, charges, grievances and/or causes of action, in law or in equity, existing by reason of and/or based upon any fact or set of facts, known or unknown, existing from the beginning of time through the effective date of this Release relating to and/or arising out of the Employment Agreement, Employee’s employment with Employer and/or the cessation of Employee’s employment with Employer (collectively, the “ Released Claims ”), including, but not limited to, all claims, actions, suits, charges, grievances

 

B-1

 


 

and/or causes of action for wages, compensation, liquidated damages, commissions, bonuses, benefits, sums of money, damages of every type, costs, attorney fees, judgments, executions, wrongful discharge, breach of contract, breach of implied contract, breach of the covenant of good faith and fair dealing, tortious interference with contract or business relationships, assault, battery, invasion of privacy, misappropriation of trade secrets, promissory estoppel, unjust enrichment, loss of consortium, violation of the penal statutes, negligent or intentional infliction of emotional distress, negligence, defamation, retaliation and/or discrimination and/or harassment on account of age, sex, sexual orientation, creed, religion, race, color, national origin, sensory disability, mental disability, physical disability, veteran or military status, marital status, or any other classification recognized under all applicable discrimination laws, or any other claim or cause of action, which has or could have been alleged under the common law, civil rights statutes, Title VII of the Civil Rights Act of 1964 ( Title VII ), the Age Discrimination in Employment Act ( ADEA ), the Family and Medical Leave Act ( FMLA ), the Employee Retirement Income Security Act ( ERISA ), the Rehabilitation Act of 1973, the Older Workers Benefits Protection Act ( OWBPA ), the Americans with Disabilities Act ( ADA ), The Consolidated Omnibus Budget Reconciliation Act ( COBRA ), the Workers Adjustment Retraining Notification Act ( WARN ), the Equal Pay Act ( EPA ), the Uniformed Services Employment and Reemployment Rights Act ( USERRA ), the National Labor Relations Act ( NLRA ), the New York State Human Rights Law, the New York City Human Rights Law, the New York Labor Law, and any and all other federal, state, local statutes, ordinances, and laws, and every type of relief (legal, equitable and otherwise), available to Employee.   Employee covenants and agrees that he will not pursue or allege any claim, matter or cause of action in violation of, and/or released under, this Release.  Nothing in this Release shall be construed as releasing Employer from , and the Released Claims shall not include : (a) any obligation to pay those amounts due to Employee under Section 5(a) of the Employment Agreement, subject to th e terms and conditions thereof ; (b) Employee s rights to enforce the terms of the Employment Agreement that survive the termination of the Employment Period (as defined in the Employment Agreement) ; (c ) Employee s rights described in Section 5(d) of the Employment Agreement; (d) Employee s non-forfeitable rights to accrued benefits (within the meaning of Sections 203 and 204 of ERISA), ( e ) Employee s right to indemnification or exculpation under the Employment Agreement, Employer s policies or law with respect to Employee s service as a director or officer of Employer ; ( f ) any claims for wages that are due and owing to Employee; ( g ) any claims that by law cannot be waived by private agreement without judicial or governmental supervision ; or ( h ) Employee s right to file a charge with or participate in any investigation or proceeding conducted by the U.S. Equal Employment Opportunity Commission ( EEOC ) or similar government agency; provided that even though Employee can file a charge or participate in an investigation or proceeding conducted by the EEOC or similar government agency, by executing this Release, Employee is waiving his ability to obtain relief of any kind from Employer to the ex tent permitted by law.  

3. Covenant Not to Sue .  Employee represents that he has not filed any action, charge, suit, or claim against Employer with any federal, state or local agency or court relating to any Released Claim.  Employee further agrees that should any claims, charges, complaints, suits or other actions be filed hereafter on his behalf by any federal, state or local agency or by any other person or entity with respect to a Released Claim, he will immediately withdraw with prejudice, or cause to be withdrawn with prejudice, and/or dismiss with prejudice, or cause to be dismissed with prejudice, any such claims, charges, complaints, suits or other actions filed against Employer.  Employee further agrees that, to the fullest extent permitted by law,

 

B-2

 


 

Employee shall receive no relief of any type (monetary, equitable, or otherwise) with respect to, relating to and/or on account of any such claims, matters or actions.  Employee agrees to opt-out of any class action or collective action filed against Employer to the extent related to a Released Claim.   

4. Confidentiality .  To the fullest extent permitted by law, Employee agrees to keep confidential all facts, opinions, and information which relate in any way to Employee’s employment and/or cessation of employment with Employer, as well as the terms of this Release; provided however , Employee may discuss the terms of this Release with his spouse, legal representative, and/or tax preparer, each of whom must also agree to maintain confidentiality and comply with this Section 4.  Notwithstanding anything herein to the contrary, Section 7(e) of the Employment Agreement will apply to this Release.  

5. Return of Employer’s Property .  Employee represents that he has returned to Employer any and all property, records, papers, documents and writings, in whatever form, of Employer in Employee’s possession and/or control, and that he has not retained any copies thereof, in whatever form.

6. Cooperation .

(a) To the fullest extent permitted by law, Employee will not cooperate with, or assist in, any claim, charge, lawsuit, or arbitration against Employer with respect to a Released Claim, unless required to do so by a lawfully issued subpoena, by court order or as expressly provided by regulation or statute. In the event Employee is served with a subpoena or is required by court order or otherwise to testify in any type of proceeding involving Employer and related to a Released Claim, Employee shall immediately advise Employer in writing of same.

(b) Employee agrees to cooperate with Employer in any internal investigation, administrative, regulatory, or judicial proceeding or any dispute with a third party.  Employee’s cooperation may include being available to Employer upon reasonable notice for interviews and factual investigations, appearing at Employer’s request to give testimony without requiring service of a subpoena or other legal process, volunteering to Employer pertinent information, and turning over to Employer all relevant documents which are or may come into Employee’s possession.  Employee understands that in the event Employer asks for Employee’s cooperation in accordance with this provision, Employer will reimburse him for reasonable travel expenses (including lodging and meals) upon submission of receipts acceptable to Employer.

7. ADEA Notice and Acknowledgement .  Employee acknowledges that he has carefully read this Release and fully understands its contents.  Prior to signing this Release, Employee has been advised in writing hereby and has had an opportunity to consult with his attorney of choice concerning the terms and conditions of this Release with regard to any claim or right Employee may have under the ADEA or otherwise.  Employee has been offered at least [21][45] days to review and consider this Release.  Employee may voluntarily and knowingly waive this [21/45]-day period, or any part thereof, if he signs this Release prior to the expiration of [21/45] days.  After signing this Release, Employee shall have seven days from the signing date to revoke this Release.  This Release shall not be effective (including for purposes under the Employment Agreement) until after the seven-day revocation period has expired.  Any

 

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revocation must be made in writing and delivered to the Chief Executive Officer of Employer .  Until all applicable periods set forth in this Section 7 have expired, Employer shall not be required to make any payment to Employee which payment is, under Section 5(a)(iii) or (iv) of the Employment Agreement, contingent upon the signing and delivery to the Company of this Release.  By signing this Release, Employee agrees and understands that he is waiving and releasing any and all rights he may have to pursue claims against Employer, from the beginning of time up to the effective date of this Release, including, without limitation, all ADEA claims.

8. Governing Law .  New York law shall govern this Release, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of New York.  

9. Successors and Assigns .  This Release shall inure to the benefit of the successors and assigns of Employer.

10. Severability .  If any portion of this Release is ruled unenforceable, all remaining portions of this Release shall remain valid.

11. No Reliance; No Waiver .  Employee represents that he is not relying on any representation, statement, or promise of Employer or any other party in giving this Release.  This Release may not be amended, modified, waived, or terminated except in a writing signed by Employee and an authorized representative of Employer.

12. Headings .  The paragraph and section headings in this Release are inserted merely for the convenience of reference only and shall not be used to construe, affect or modify the terms of any paragraph or provision of this Release.

EMPLOYEE WITHOUT ANY DURESS OR COERCION FREELY, KNOWINGLY AND VOLUNTARILY ENTERS INTO, AND GIVES THIS RELEASE.  EMPLOYEE UNDERSTANDS AND AGREES WITH ALL OF THE PROVISIONS AND THE TERMS STATED IN THIS RELEASE AND HAS BEEN AFFORDED SUFFICIENT AND REASONABLE TIME TO CONSIDER WHETHER TO ENTER INTO THIS RELEASE.  EMPLOYER ADVISES EMPLOYEE TO CONSULT WITH AN ATTORNEY OF EMPLOYEE’S CHOOSING PRIOR TO EXECUTING THIS RELEASE WHICH CONTAINS A RELEASE AND WAIVER.

 

Dated:

 

 

 

 

Ben Roberts Taylor

 

93572436.3

 

 

 

 

 

B-4

 

Exhibit 10.3

Tyme Technologies, Inc.

Amended & Restated

Nonqualified Stock Option Agreement

This Amended and Restated Nonqualified Stock Option Agreement (the “ Agreement ”), dated July 30, 2018, (the “ Effective Date ”) is made by and between Tyme Technologies, Inc., a Delaware corporation (the “ Company ”), and Ben R. Taylor (the “ Optionee ”).

WHEREAS ,  on March 27, 2017 (the “ Date of Grant ”), the Company, pursuant to the Company’s 2015 Equity Incentive Plan (the “ Plan ”), granted Optionee a nonqualified stock option (the “ Option ”) to purchase a total of 1,500,000 shares (the “ Shares ”) of the common stock, par value $0.0001 per share (the “ Common Stock ”), of the Company, at the exercise price of $2.95 per Share (the “ Exercise Price ”), on the terms and conditions set forth in the Nonqualified Stock Option Plan Agreement, dated as of the Date of Grant (the “ Prior Award ”)

WHEREAS, the Prior Award provided for a four year vesting schedule, and Optionee’s right to purchase 375,000 Shares had vested as of the date hereof;

WHEREAS , the Company and Optionee wish to modify the Prior Award to, among other things, provide the Optionee with a modified vesting schedule of the remaining unvested portion of the Option and change certain other provisions;

NOW, THEREFORE , effective as of the Effective Date, the Company and the Optionee hereby amend the Prior Award on the following terms and, in all respects, as if granted on the Date of Grant, subject to the terms and conditions of the Plan.  The Option is not intended to qualify as an Incentive Stock Option under Section 422 of the Internal Revenue Code of 1986, as amended (the “ Code ”); capitalized terms not otherwise defined in this Agreement shall have the meanings assigned to such terms in the Plan.  

1. Duration.   Subject to the earlier termination as provided in this Agreement or under the Plan, the Option shall expire and shall no longer be exercisable as of the close of business on March 27, 2027 (the “ Termination Date ”).

2.

Anti Dilution Provisions.

(a) If there is any stock dividend, stock split or combination of Shares or other change in capital structure of the Company described in Section 4.4 of the Plan, the number and amount of Shares then subject to the Option and the Exercise Price shall be proportionately and appropriately adjusted as determined by the Committee, whose determination shall be final, conclusive and binding upon Optionee and the Company.

(b) If there is any other change in the Common Stock, including a reorganization, sale or exchange of assets, exchange of shares, offering of subscription rights, or a merger, consolidation or similar transaction in which the Company is the surviving corporation, an adjustment, if any, shall be made in the Shares then subject to the Option and the Exercise Price

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as the Board or Committee may deem equitable, and whose determination shall be final, conclusive and binding upon Optionee and the Company.  Failure of the Board or the Committee to provide for an adjustm ent pursuant to this paragraph 2 (b) prior to the effective date of any Company action referred to in this paragraph 2 (b) shall be conclusive evidence that no adjustment is required in consequence of such action.

(c) Subject to Section 6(b), if the Company is merged into or consolidated with any other corporation and the Company is not the surviving corporation, or if the Company sells all or substantially all of the Company’s assets to any other corporation, then either

(i) the Company shall cause provisions to be made for the continuance of the Option after such event or for the substitution for the Option of an option covering the number and class of securities which the Optionee would have been entitled to receive in such merger, consolidation or if the Optionee had been the holder of record of a number of Shares equal to the number of Shares covered by the unexercised portion of the Option immediately prior to such merger, consolidation or sale; or

(ii) the Company shall give to Optionee written notice of the Company’s election not to cause such provision to be made and the Option shall become exercisable in full (or, at the election of the Optionee, in part) at any time during a period of thirty days, to be designated by the Company, ending not more than ten days prior to the effective date of the merger, consolidation or sale, in which case the Option shall not be exercisable to any extent after the expiration of such thirty-day period.

Notwithstanding the provisions of this paragraph 2(c), in no event shall the Option be exercisable after the Termination Date.

3. Non-Transferability.   The Option shall not be transferable by Optionee, other than by (x) will, the laws of descent or distribution or (y) pursuant to a proceeding under Title 11 of the U.S. Bankruptcy Code or similar insolvency proceeding, and is exercisable during the lifetime of Optionee only by Optionee, except as otherwise specifically provided in this Agreement or the Plan.  The terms of this Agreement shall be binding upon the executors, administrators, heirs, successors and assigns of Optionee.

4. Certain Rights Not Conferred by Option.   Optionee shall not, by virtue of holding the Option, be entitled to any rights of a stockholder in the Company.

5. Expenses.   The Company shall pay all original issue and transfer taxes with respect to the issuance of the Shares pursuant hereto and all other fees and expenses necessarily incurred by the Company in connection therewith.

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6.

Exercise of Options.

(a) 375,000 Shares of the Option were previously vested.

(b) The remaining portion of the Option shall become exercisable on the dates and in the amounts as follows:

 

Date

Number of Shares

On the Effective Date

250,000 shares

09/27/2018

125,000 shares

12/27/2018

125,000 shares

03/27/2019

125,000 shares

06/27/2019

125,000 shares

09/27/2019

125,000 shares

12/27/2019

125,000 shares

03/27/2020

125,000 shares

 

(c) In the event of a Change of Control while Optionee is in the employ of the Company, the Option, to the extent unvested and unexercisable, shall fully vest and become exercisable as of immediately prior to such Change of Control.

(d) The Option shall be exercisable, in whole or part and from time to time, but subject to the exercise schedule set forth in paragraph 6(a) of this Agreement, by written or electronic notice to the Chief Executive Officer or Secretary of the Company of such exercise, complying with the Plan and applicable procedures established by the Committee or the Company.  Such notice shall specify the number of Shares for which the Option is being exercised (which number, if less than all of the Shares then subject to exercise, shall be 100 or an integral multiple thereof) and shall be accompanied by:

(i) payment of the full exercise price for the Shares for which the Option is being exercised; and

(ii) this Agreement.

(e) The form of payment of the Exercise Price for Shares purchased pursuant to each exercise of the Option shall be paid in full at the time of each purchase in one or a combination of the following methods:

(i) cash;

(ii) check (subject to collection);

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(iii) in the discretion of the Committee, sur render to the Company of other S hares owned by the Optionee, which:

(A) have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares as to which the Option is being exercised; and

(B) have been owned of record by Optionee for at least six months;

(iv) by “net exercise,” by means of exercising the Option, to the extent exercisable, and receiving such number of Shares having a Fair Market Value on the date of such net exercise equal to the difference between:  

(A) the Fair Market Value of the full number of Shares issuable upon exercise of the Option on the date of such net exercise; and

(B) the Exercise Price multiplied by the full number of Shares issuable upon exercise of the Option; or

(v) if there is a public market for Shares, subject to applicable law, by:

(A) assignment to the Company of the net proceeds (to the extent necessary to pay such exercise price) to be received from a registered broker upon the sale of the Shares or assignment of the net proceeds (to the extent necessary to pay such exercise price) of a loan from such broker in such amount; or

(B) such other consideration and method of payment for the issuance of stock to the extent permitted under applicable law and satisfying the requirements of Rule 16b-3 promulgated pursuant to the Exchange Act.

(f) No Shares shall be delivered upon exercise of the Option until all laws, rules and regulations which the Committee may, in its sole discretion, deem applicable have been complied with.  If a registration statement under the Securities Act is not then in effect with respect to the Shares issuable upon such exercise, the Company may require as a condition precedent that Optionee, upon exercising the Option, deliver to the Company a written representation and undertaking, satisfactory in form and substance to the Committee, that, among other things, Optionee is acquiring the Shares for Optionee’s own account for investment purposes only and not with a view to the distribution thereof.

(g) Optionee shall not be considered a record holder of the Shares so purchased for any purpose until the date on which Optionee is actually recorded as the holder of such Shares in the records of the Company.

(h) Unless otherwise provided in the Optionee’s employment agreement, in the event of Optionee’s death, disability or termination of employment, the exercisability of the Option shall be governed by the provisions of Section 5.7 of the Plan, unless such provisions are waived by the Committee, in the Committee’s sole discretion.

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7. Withholding of Tax .  To the extent that the exercise of the Option, or any event pursuant to this Agreement, results in the incurrence of compensation or other taxable income by Optionee that is subject to withholding by the Company, Optionee must satisfy such tax withholding obligation by giving written notice to the Company, prior to the delivery of Shares, of the Optionee’s election to either (a) deliver to the Company an amount of cash equal to the tax withholding amount required under applicable tax laws or regulations or (b) have the Company deduct from the number of Shares that would have otherwise been delivered to Optionee a number of such S hares having a Fa ir M arket V alue equal to such tax withholding amount.  Regardless of any action of the Company, Optionee acknowledges that Optionee is ultimately liable for such tax withholding obligation.  The Company shall not be required to deliver any Shares in respect of the Option under this Agreement until such liability is satisfied.

8. Continued Employment.   Nothing herein shall be deemed to create any employment or consultancy or guaranty of continued employment or consultancy or limit in any way the Company’s right to terminate Optionee’s employment or consultancy at any time.

9. Investment Representation and Legend of Certificates .  Optionee acknowledges that, for any period in which a registration statement with respect to the Option and/or Shares under the Securities Act of 1933, as amended (the “ Securities Act ”), is not effective, Optionee shall hold the Option and will purchase and/or own the Shares for investment purposes only and not for resale or distribution.  The Company shall have the right to place upon the face and/or reverse side of any stock certificate or certificates evidencing the Shares such legend as the Committee may prescribe for the purpose of preventing disposition of such Shares in violation of the Securities Act.

 

 

 

Tyme Technologies, Inc.

 

 

 

 

 

 

 

By:

 

/s/ Steve Hoffman

 

 

 

 

Steve Hoffman

 

 

 

 

Chief Executive Officer

 

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93582799.2

 

 

 

 


 

OPTIONEE ACKNOWLEDGEMENT

OPTIONEE ACKNOWLEDGES AND AGREES THAT, EXCEPT AS SET FORTH IN THIS AGREEMENT OR OPTIONEE’S EMPLOYMENT AGREEMENT, THE EXERCISABILITY OF THE SHARES SUBJECT TO THIS AGREEMENT AND THE OPTION IS EARNED ONLY BY CONTINUING EMPLOYMENT OR CONSULTANCY AT THE WILL OF THE COMPANY (NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED THE OPTION OR ACQUIRING SHARES HEREUNDER).  OPTIONEE FURTHER ACKNOWLEDGES AND CONFIRMS THAT NOTHING IN THIS AGREEMENT, NOR IN THE PLAN WHICH IS INCORPORATED HEREIN BY REFERENCE, SHALL CONFER UPON OPTIONEE ANY RIGHT WITH RESPECT TO CONTINUATION OF EMPLOYMENT OR CONSULTANCY BY THE COMPANY, NOR SHALL IT INTERFERE IN ANY WAY WITH OPTIONEE’S OR THE COMPANY’S RIGHT, SUBJECT TO OPTIONEE’S AND THE COMPANY’S RIGHTS UNDER OTHER AGREEMENTS, IF ANY, WITH THE COMPANY, TO TERMINATE EMPLOYMENT OR CONSULTANCY AT ANY TIME, WITH OR WITHOUT CAUSE.

Optionee acknowledges receipt of a copy of the Plan and certain information related to the Plan and the Company and represents that Optionee is familiar with the terms and provisions of the Plan, and hereby accepts the Option subject to all of the terms and provisions of the Plan.  Optionee has reviewed the Plan and this Agreement in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Agreement and fully understands all of the terms and provisions of the Option and this Agreement.  Optionee hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Committee upon any questions arising under the Plan.  Optionee further agrees to notify the Company upon any change in the residence address currently set forth in the Company’s records.

 

Accepted and agreed as of
the date as first set forth above:

 

/s/ Ben R. Taylor

Ben R. Taylor

 

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93582799.2

 

 

 

 

Exhibit 10.4

TYME TECHNOLOGIES, INC.

17 State Street – 7 th Floor

New York, New York 10004

July 30, 2018

Jonathan Eckard

Dear Jon:

This letter sets forth our amended and restated agreement with respect to your employment (hereinafter “amended letter agreement ”) with Tyme Technologies, Inc., a Delaware corporation (the “ Company ”).

1. Employment .  You will continue your employment with the Company upon the terms and conditions set forth in this amended letter agreement beginning on the first business day immediately following the date that you sign this amended letter agreement (the “ Effective Date ”) and ending as provided in Section 4 (the “ Employment Period ”).  

2. Position and Duties .  During the Employment Period, you will serve as Chief Scientific Affairs Officer of the Company and will have the usual and customary duties, responsibilities and authorities of a person in such positions and such other duties assigned to you by the Chief Executive Officer of the Company (the “ CEO ”) which are consistent with your position.  You will report directly to the CEO. You will devote your full working time, efforts and attention to, and diligently and conscientiously perform the duties of, such positions.  In addition to performing such duties for the Company, you may be required to perform similar duties for the Company’s existing subsidiaries or affiliates, and/or any subsidiaries and/or affiliates which may be formed or acquired from time to time in the future, including without limitation Tyme Inc., a Delaware corporation, and Luminant Biosciences, LLC (collectively, all such subsidiaries and/or affiliates shall be referred to as the “ Company Affiliates ”).  Except for travel for business purposes, you will be employed and your primary office will be located at the Company offices located at 17 State Street – 7 th Floor – New York, New York 10004 (the “ Company Office ”).

3. Compensation .

(a) During the Employment Period, your base salary will be $375,000.00 per annum (your “ Base Salary ”).  Your Base Salary will be payable in regular installments in accordance with the Company’s general payroll practices and subject to withholding and other payroll taxes.  Your Base Salary may be reviewed annually (beginning on or about the first anniversary date of this amended letter agreement) by the Board and may be increased by the Board in its sole discretion.  Unless agreed by you in writing, your Base Salary may not be decreased by the Board or otherwise.

(b) You will also be entitled, conditioned upon your continued employment with the Company or one of the Company Affiliates through and including the applicable date of payment, to receive one or more special bonuses (each, a “ Performance Bonus ”), in such

 


 

amount(s), for such period(s) and based on such criteria as determined from time to time, and if ever, by the Board in t he Board s sole discretion .

(c) During the Employment Period, you will be entitled to participate in all employee benefit programs, including without limitation health/medical insurance, for which senior executive employees of the Company are generally eligible, subject to applicable plans and policies as may be amended from time to time, in the sole discretion of the Board.  During the Employment Period, you will be entitled to four weeks paid vacation during each calendar year, with such vacation time pro-rated for any partial calendar years during the Employment Period; provided , however , that no carry-over of unused vacation time shall be permitted and no compensation shall be paid for any such unused vacation time.

(d) The Company shall reimburse you for all reasonable out-of-pocket business expenses incurred by you on behalf of the Company during the Employment Period; provided that you properly account to the Company for all such expenses in accordance with the policies of the Company and the rules, regulations and interpretations of the U.S. Internal Revenue Service relating to reimbursement of business expenses (“ Expenses ).  

(e) During the Employment Period, the Company will maintain Directors and Officers Liability Insurance coverage that includes coverage of you, subject to the terms and conditions of such policy and with limits customary for similarly situated companies.

(f) You shall continue to hold the Option (as defined in your August 1, 2017 letter agreement with the Company), pursuant to the terms of that August 1, 2017 letter agreement, as the 2015 Plan and Option Agreement (each as defined in the August 1, 2017 letter agreement) may be amended.  

4. Termination .  The Employment Period will end on the date which is 12 months ( i.e. , one year) following the Effective Date (the “ Expiration Date ”), unless sooner terminated as provided below.  Unless the Employment Period has been terminated in accordance with the following sentence of this Section 4 or one party has given at least 60 days’ advance, written notice that you or the Company seek to terminate the employment arrangement on the Expiration Date, the Employment Period shall automatically be extended by an additional 12 months.  Notwithstanding the foregoing, the Employment Period (i) will terminate upon your death, (ii) may be terminated by the Company upon Notice of Termination (as defined in Section 5(e) below) delivered to you as a result of your Disability (as defined in Section 5(g) below), (iii) may be terminated by the Company at any time for Cause (as defined in Section 5(f) below), (iv) may be terminated by you for Good Reason (as defined in Section 5 (h) below) and (v) may be terminated by the Company without Cause.  

5. Severance .

(a) If the Employment Period is terminated by the Company without Cause or by you for Good Reason, you will be entitled to receive (i) your Base Salary as in effect at the time of such termination to the extent such amount has accrued through the Termination Date (as defined in Section 5(e) below) and remains unpaid, (ii) any fully earned and declared but unpaid Performance Bonus as of the Termination Date, (iii) an amount equal to one year of your Base

 

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Salary , less applicable withholdings, which shall be payable in the same amounts and at the same intervals as if the Employment Period had not ended , ( i v ) except as set forth in the final sentence of this Section 5(a), immediate and full vesting of all your equity awards , (v) if you timely elect continued coverage pursuant to COBRA, payment of your share of the premium cost at the same rate as for active employees of the Company for the 18- month period following the Termination Date , and (vi) any unpaid Expenses as of the Termination Date . Except as set forth in Section 5(d), u pon delivery of the payments and benefits described in this Section 5(a) , the Company shall have no further obligation to you under this amended letter agreement or otherwise with respect to your employment with the Company ; provided , however , t he Company s obligation to make the payment s to you described in clause s (iii ) , (iv) and (v) of this Section 5(a) is conditioned upon your executing and delivering, no later than 45 days following the Termination Date (and not revoking) , a release relating to your employment by the Company in favor of the Company, the Company Affiliates and their respective stockholders, officers, members, managers, directors, employees, subsidiaries and affiliates substantially in the form attached as Exhibit A ; provided , further , that until the period to revoke such release has expired , the Company shall retain any Base Salary installment payment that would otherwise be made pursuant to clause ( ii i) of this Section 5(a) , with such payment being made on the next regularly scheduled payroll date after such revocation period expires .   In the event that the Company’s delivers written notice to you that the Board, in its good faith and reasonable judgment, has determined that you have been negligent in the performance of your duties , provided that you have been given an opportunity of no less than 30 days after receipt of such notice to cure any such instances of negligence, if the Company terminates you r employment without Cause following the Board’s good faith, reasonable determination that you have failed to cure, any unvested equity awards that you hold will be forfeited.

(b) If the Employment Period is terminated by the Company for Cause or by you other than for Good Reason, the Company will pay you (i) your Base Salary as in effect at the time of such termination to the extent such amount has accrued through the Termination Date and remains unpaid, (ii) any fully earned and declared but unpaid Performance Bonus as of the Termination Date, and (iii) any unpaid Expenses as of the Termination Date. Except as set forth in Section 5(d), upon delivery of the payments described in this Section 5(b), the Company will have no further obligation to you under this amended letter agreement with respect to your employment with the Company.

(c) If the Employment Period is terminated due to your Disability (as defined in Section 5(g) below) or death, the Company will pay you or your estate, whichever is applicable, (i) your Base Salary as in effect at the time of such termination to the extent such amount has accrued through the Termination Date and remains unpaid, (ii) any fully earned and declared but unpaid Performance Bonus as of the Termination Date, and (iii) any unpaid Expenses as of the Termination Date. Except as set forth in Section 5(d), upon delivery of the payments described in this Section 5(c), the Company will have no further obligation to you under this amended letter agreement or otherwise with respect to your employment with the Company.

(d) Except as otherwise required by law or as specifically provided herein, all of your rights to salary, severance, fringe benefits, bonuses and any other amounts hereunder (if any) accruing after the termination of the Employment Period will cease upon the earlier of the

 

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Termination D ate and your last day of active service.  In the event the Employment Period is terminated, your sole remedy, and the sole remedy of your successors, assigns, heirs, representatives and estate, will be to receive the payments described in this amended letter agreement .   Notwithstanding the foregoing, the following rights will survive any termination of the Employment Period:   (i) your rights to accrued and vested benefits under any benefit plan of the Company or any of the Company Affiliates, or as set forth in any other agreement between you and the Company or any of the Company Affiliates, (ii) your right to continued participation in the Company s health and welfare plans , except as otherwise provided in Section 5(a)(v) , at your own expense pursuant to COBRA, ( i ii) your right to indemnification in respect of your service as a director or officer of the Company or any of the Company Affiliates , to the maximum extent provided under applicable law, the Company s Certificate of Incorporation and By - law s (each , as they may be amended from time-to-time ) , and any other agreement between you and the Company, (iv) your rights in respect of shares of Common Stock that you hold and (v) your rights in respect of any eq uity-based awards that remain outstanding following the Employment Period (subject to the provisions of this Agreement and any equity plan or award agreement that governs the terms of such equity-based awards ) .  

(e) Any termination of the Employment Period by the Company (other than termination upon your death) or by you must be communicated by written notice (in either case, a “ Notice of Termination ”) to you, if the Company is the terminating party, or to the Company, if you are the terminating party.  For purposes of this amended letter agreement, “ Termination Date ” means (i) if the Employment Period is terminated due to your death, the date of your death and (ii) if the Employment Period is terminated due to your Disability, by the Company (for Cause or without Cause) or by you (for Good Reason or without Good Reason), the date specified in the Notice of Termination (which may not be earlier than the date of such Notice of Termination).  Notwithstanding anything contained herein to the contrary, any termination of the Employment Period by you must be communicated to the Company no less than 30 days prior to the intended Termination Date.  

(f) For purposes of this amended letter agreement, “ Cause ” means any one of the following: (i) a material breach by you of this amended letter agreement, (ii) your conviction of, guilty plea to, or confession of guilt of, a felony involving the Company, (iii) materially fraudulent, dishonest or illegal conduct by you in the performance of services for or on behalf of the Company or any of the Company Affiliates, (iv) any repeated conduct by you in material violation of Company policy, (v) any conduct by you that is materially detrimental to the reputation of the Company or any of the Company Affiliates, (vi) your misappropriation of funds of the Company or any of the Company Affiliates, (vii) your gross negligence or wilful misconduct or wilful failure to comply with written directions of the Board which directions are within the scope of your duties hereunder, or (viii) your engaging in conduct involving an act of moral turpitude.  A purported termination of your employment for Cause shall not be effective unless (A) the Company provides written notice to you of the facts alleged by the Company to constitute Cause and such notice is delivered to you no more than 90 days after the Company has actual knowledge of such facts and (B) you have been given an opportunity of no less than ten days after receipt of such notice to cure the circumstances alleged to give rise to Cause and the Company, has cooperated in good faith with your efforts to cure such condition or circumstance, but only to the extent that such circumstances are reasonably curable.

 

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(g) For purposes of this amended letter agreement Disability means any accident, sickness, incapacity or other physical or mental disability which prevents you from performing substantially all of the duties you have been assigned by the Company or any of its subsidiaries for either (i) 90 consecutive days or (ii) 1 8 0 days during any period of 365 consecutive days, in each case as determined in good faith by the Board. During the time periods specified above, the Company will continue to provide you with the compensation stated in Section 3 above.

(h) For purposes of this amended letter agreement, “ Good Reason ” means (i) a material diminution in your authority, title, duties or responsibilities, (ii) the failure of the Company to make all payments due to you under this amended letter agreement or otherwise or (iii) the relocation of your primary office to a location more than 25 miles from the Company Office.  A purported termination of your employment for Good Reason shall not be effective unless (A) you provide written notice to the Company of the facts alleged by you to constitute Good Reason and such notice is delivered to the Board no more than 90 days after the occurrence of such event, (B) the Company has been given an opportunity of no less than 30 days after receipt of such notice to cure the circumstances alleged to give rise to Good Reason and you have cooperated in good faith with the Company’s efforts to cure such condition or circumstance (which cooperation will not require Executive to waive or diminish any of his rights hereunder), but only to the extent that such circumstances are reasonably curable, and (c) you elect to terminate the Employment Period within 30 days following the end of the Company’s cure period due to the Company’s failure to cure.

6. Change of Control .  

(a) In the event of a Change of Control (as defined in the 2015 Plan or a successor plan), all equity awards you hold shall, to the extent unvested, fully vest as of immediately prior to such Change of Control.  

(b) Notwithstanding any other provision of this amended letter agreement:

(i) In the event it is determined by an independent nationally recognized public accounting firm that is reasonably acceptable to you, which is engaged and paid for by the Company prior to the consummation of any transaction constituting a 280G Change of Control (which for purposes of this Section 6(b) shall mean a change in ownership or control as determined in accordance with the regulations promulgated under Section 280G of the Internal Revenue Code of 1986, as amended (the “ Code ”), which accounting firm shall in no event be the accounting firm for the entity seeking to effectuate the 280G Change of Control (the “ Accountant ”), which determination shall be certified by the Accountant and set forth in a certificate delivered to you not less than ten business days prior to the 280G Change of Control setting forth in reasonable detail the basis of the Accountant’s calculations (including any assumptions that the Accountant made in performing the calculations), that part or all of the consideration, compensation or benefits to be paid to you under this amended letter agreement constitute “parachute payments” under Section 280G(b)(2) of the Code, then, if the aggregate present value of such parachute payments, singularly

 

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or together with the aggregate present value of any consideration, compensation or benefits to be paid to you under any other plan, arrangement or agreement which constitute parachute payments (collectively, the Parachute Amount ) exceeds the maximum amount that would not give rise to any liability under Section 4999 of the Code, the amounts constituting parachute payments which would otherwise be payable to you or for your benefit shall be reduced to the maximum amount that would not give rise to any liability under Section 4999 of the Code (the Reduced Amount ); provided that such amounts shall not be so reduced if the Accountant determines that without such reduction you would be entitled to receive and retain, on a net after-tax basis (including, without limitation, any excise taxes payable under Section 4999 of the Code), an amount which is greater than the amount, on a net after-tax basis, that you would be entitled to retain upon receipt of the Reduced Amount.  In connection with making determ inations under this Section 6 (b) , the Accountant shall take into account any positions to mitigate any excise taxes payable under Section 4999 of the Code, such as the value of any reasonable compensation for services to be rendered by you before or after the 280G Change of Control .

(ii) If the determination made pursuant to Section 6(b) results in a reduction of the payments that would otherwise be paid to you except for the application of Section 6(b), the Company shall promptly give you notice of such determination.  Such reduction in payments shall be first applied to reduce any cash payments that you would otherwise be entitled to receive (whether pursuant to this amended letter agreement or otherwise) and shall thereafter be applied to reduce other payments and benefits, in each case, in reverse order beginning with the payments or benefits that are to be paid the furthest in time from the date of such determination, unless, to the extent permitted by Section 409A (as defined in Section 13(h)), you elect to have the reduction in payments applied in a different order; provided that, in no event may such payments be reduced in a manner that would result in subjecting you to additional taxation under Section 409A.  Within ten business days following such determination, the Company shall pay or distribute to you or for your benefit such amounts as are then due to you under this amended letter agreement and shall promptly pay or distribute to you or for your benefit in the future such amounts as become due to you under this amended letter agreement.

(iii) As a result of the uncertainty in the application of Sections 280G and 4999 of the Code at the time of a determination hereunder, it is possible that amounts will have been paid or distributed by the Company to or for your benefit pursuant to this amended letter agreement which should not have been so paid or distributed (each, an “ Overpayment ”) or that additional amounts which will have not been paid or distributed by the Company to or for your benefit pursuant to this amended letter agreement could have been so paid or distributed (each, an “ Underpayment ”), in each case, consistent with the calculation of the Reduced Amount hereunder.  In the event that the Accountant, based upon the assertion of a deficiency by the Internal Revenue Service against either the Company or you which the Accountant believes has a high probability of success, determines that

 

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an Overpayment has been made, any such Overpayment paid or distributed by the Company to or for your benefit shall be repaid by you to the Company together with interest at the applicable federal rate provided for in Section 7872(f)(2)(A) of the Code; provided , however , that no such repayment shall be required if and to the extent such deemed repayment would not either reduce the amount on which you are subject to tax under Sections 1 and 4999 of the Code or generate a refund of such taxes.  In the event that the Accountant, based on controlling precedent or substantial authority, determines that an Underpayment has occurred, any such Underpayment shall be promptly paid by the Company to or for your benefit together with interest at the applicable federal rate provided for in Section 7872(f)(2)(A) of the Code.

(iv) In the event of any dispute with the Internal Revenue Service (or other taxing authority) with respect to the application of this Section 6(b), you shall control the issues involved in such dispute and make all final determinations with regard to such issues. Notwithstanding anything herein to the contrary, the Company shall promptly pay, upon demand by you, all legal fees, court costs, fees of experts and other costs and expenses which you incur no later than ten years following your death in any actual, threatened or contemplated contest of your interpretation of, or determination under, the provisions of this Section 6(b).  

7. Confidential Information .

(a) You will not disclose or use at any time any Confidential Information (as defined below in Section 7(c)), whether or not such information is developed by you, except to the extent that such disclosure or use is required in the performance or exercise by you in good faith of (i) duties assigned to you under this amended letter agreement or otherwise by the CEO or Board, (ii) rights as an employee, officer, director or shareholder of the Company or any of the Company Affiliates or (iii) rights under any agreement with the Company or any of the Company Affiliates.

(b) You will deliver to the Company at the termination of the Employment Period, or at any time the Company may request, all memoranda, notes, plans, designs, records, reports, computer files and software and other documents and data (and copies thereof) that are Confidential Information or Work Product (as defined below) or information relating to the business of the Company or the Company Affiliates which you may then possess or have under your control.

(c) As used in this amended letter agreement, the term “ Confidential Information ” means information that is not generally known or available to the public and that is used, developed or obtained by the Company or any of the Company Affiliates in connection with its or their businesses, including without limitation (i) information, observations and data concerning its and their business and affairs, (ii) products or services, (iii) fees, costs and pricing structures, (iv) designs, (v) analyses, (vi) drawings, designs, photographs, artwork and reports, (vii) computer software, including operating systems, applications and program listings, (viii) flow charts, manuals and documentation, (ix) data bases, (x) accounting and business methods, (xi) inventions, devices, new developments, methods and processes, whether patentable or

 

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unpatentable and whether or not reduced to practice, (xi i) other copyrightable works, (xiii ) all production methods, processes, technology and trade secrets, (xiv) product and product candidate formulae and any trade secrets with respect to such products and product candidates and (xv) all similar and related information in whatever form.

(d) Notwithstanding the provisions of this amended letter agreement to the contrary, you will have no liability to the Company for disclosure of Confidential Information if the Confidential Information:

(i) is in the public domain or becomes publicly known in the industry in which the Company or any of the Company Affiliates operates or is disclosed by the Company or any of the Company Affiliates other than as the result of a breach of this amended letter agreement or any other agreement by you; or

(ii) is required to be disclosed by law, court order, or similar compulsion or in connection with any legal proceeding; provided , however , that such disclosure will be limited to the extent so required and, subject to the requirements of law, you will give the Company notice of your intent to so disclose such Confidential Information and will cooperate with the Company in seeking confidentiality protections.

(e) Notwithstanding the foregoing, nothing in or about this amended letter agreement prohibits you from (i) filing and, as provided for under Section 21F of the Securities Exchange Act of 1934, as amended (the “ Exchange Act ”), maintaining the confidentiality of a claim with the Securities and Exchange Commission (the “ SEC ”); (ii) providing Confidential Information to the SEC, or providing the SEC with information that would otherwise violate this Section 7, to the extent permitted by Section 21F of the Exchange Act; (iii) cooperating, participating or assisting in an SEC investigation or proceeding concerning the Company without notifying the Company; or (iv) receiving a monetary award as set forth in Section 21F of the Exchange Act.  Furthermore, you are advised that you shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of any Confidential Information that constitutes a trade secret to which the Defend Trade Secrets Act (18 U.S.C. Section 1833(b)) applies that is made (A) in confidence to a federal, state or local government official, either directly or indirectly, or to an attorney, in each case, solely for the purpose of reporting or investigating a suspected violation of law or (B) in a complaint or other document filed in a lawsuit or proceeding, if such filings are made under seal.

8. Inventions and Patents .  You agree that all inventions, innovations, improvements, technical information, trade secrets, systems, software developments, ideas, results, methods, designs, artwork, analyses, drawings, reports, copyrights, service marks, trademarks, trade names, logos and all similar or related information (whether patentable or unpatentable) which relate to the Company’s or any of the Company Affiliates’ businesses, research and development or existing products (or products under development) or services and which are conceived, developed or made by you (whether or not during usual business hours and whether or not alone or in conjunction with any other person) during your continued employment with the Company, together with all intellectual property rights therein, including without limitation any patent applications, letters patent, trademark, trade name and service mark applications or registrations,

 

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copyrights and reissues thereof that may be granted for or upon any of the foregoing (collectively referred to herein as Work Product ), is the exclusive prop erty of the Company and/or the Company A ffiliates.  For the avoidance of doubt and without limiting the foregoing, ( x ) the Company or an y of the Company A ffiliates shall be the sole owner of all right, title and interest in such Work Product, including without limitation all intellectual property rights relating to such Work Product, without you retaining any license or other residual right whatsoever, and ( y ) any rights to any new or an existing Work Product are automatically conveyed, assigned and transferred to the Company pursuant to this amended letter agreement .  You hereby waive and renounce to all moral rights related, directly or indirectly, to any such existing or new Work Product.  You will take reasonable steps to promptly disclose such Work Product to the CEO and Board and perform all actions reasonably requested by the CEO and Board (whether during or after the Employment Period) to establish and confirm such ownership (including without limitation the execution and delivery of assignments, consents, powers of attorney and other instruments) and to provide reasonable ass istance to the Company and the Company A ffiliates in connection with the prosecution of any applications for patents, trademarks, trade names, service marks or reissues thereof or in the prosecution or defense of interferences relating to any Work Product.

9. Non-Competition; Non-Solicitation; Non-Disparagement .

(a) You acknowledge that, in the course of your employment with the Company, you have and will continue to become familiar with the Company’s and the Company Affiliates’ trade secrets and with other Confidential Information concerning the Company and the Company Affiliates and that your services will be of special, unique and extraordinary value to the Company and the Company Affiliates.  Therefore, you agree that, during the Restriction Period (as defined in Section 9(b) below), and for a period of eighteen (18) months following such Restriction Period, you will not (x) anywhere the Company or any of the Company Affiliates conducts business or (y) anywhere the Company or any of the Company Affiliates has spent time and resources in connection with expanding its business, directly or indirectly, either on your own behalf or on behalf of any other person, firm or entity:

(i) own, manage, operate, consult with, provide financing to, or join, control or participate in the ownership, management, operation or control of, any business wherever located (whether in corporate, proprietorship or partnership form or otherwise), if such business is engaged in the business of manufacturing, marketing, sale, research or development of pharmaceuticals for cancer utilizing a methodology or mechanism that is similar to methodologies or mechanisms used by the Company (collectively, “ Specified Therapies ”); provided, however, that this Section 9(a)(i) shall not prohibit you from working, after the Restriction Period for an entity that engages in the manufacture, sale, marketing or distribution of pharmaceutical products so long as neither you nor such employer is involved in the manufacturing, marketing, sale or research or development of therapeutics or pharmaceuticals for any of the Specified Therapies; or

(ii) except as permitted by Section 7(e), say anything which is harmful to the reputation of the Company or any of the Company Affiliates or which could be reasonably expected to lead any person to cease to deal with the Company or

 

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any of the Company Affiliates on substantially equivalent terms to those previously offered or at all.

(b) For purposes of this amended letter agreement, “ Restriction Period ” means (i) the Employment Period and any other period during which you are employed by the Company or any of its Affiliates, whether pursuant to this Agreement or otherwise, and (ii) a period of six months following your separation from employment, regardless of the reason for your separation and whether caused by you or the Companye.

(c) Nothing in Section 9(a) will prohibit you from being a passive owner of not more than 2% of the outstanding stock of a publicly-traded corporation, so long as you have no active participation in the business of such corporation.

(d) During the Restriction Period and for a period of eighteen (18) months following the Restriction Period, you also will not:

(i) induce or attempt to induce any customer, supplier or other business relation of the Company or any of the Company Affiliates to cease doing business with the Company or any of the Company Affiliates, or in any way interfere with the relationship between any such customer, supplier or business relation, on the one hand, and the Company or any of the Company Affiliates, on the other hand;

(ii) engage, employ, solicit or contact with a view to the engagement or employment of, any employee, officer or manager of, or full-time consultant to, the Company or any of the Company Affiliates or any person who has been an employee, officer or manager of, or consultant to, the Company or any of the Company Affiliates, if he or she has been in such a role at any time within the immediately prior three months; or

(iii) assist any individual or entity to engage in the conduct referenced in clauses (i) and (ii) immediately above.

(e) The Company, on behalf of itself and all of the Company Affiliates, agrees that during the Restriction Period they and their executive officers (or other persons acting on their behalf) will not say anything which is harmful to your reputation or which could be reasonably expected to lead any person to cease to deal with you or engage you in any consulting or employment position.

10. Enforcement .

(a) Because the employment relationship between you and the Company is unique and because you have access to Confidential Information and Work Product, you agree that money damages would be an inadequate remedy for any breach of Section 7, 8 or 9.  Therefore, in the event of a breach or threatened breach of Section 7, 8 or 9, the Company may, in addition to its other rights and remedies, apply to any court of competent jurisdiction for specific performance and/or injunctive or other relief in order to enforce, or prevent any violations of, such provisions (without posting a bond or other security).

 

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(b) Sections 5, 6, 7, 8 and 9 will expressly survive termination of this amended letter agreement .   The existence of any claim or cause of action by you against the Company and/or any of the Company Affiliates shall not constitute a defense to the enforcement by the Company of the covenants contained in Section 6 (b) , 7, 8 or 9 , but such claim or cause of action s hall be litigated separately.

11. Notices .  All notices, requests, demands, claims, and other communications hereunder will be in writing.  Any notice, request, demand, claim or other communication hereunder will be deemed duly given (a) upon delivery, if delivered personally to the recipient, against written receipt therefor, or (b) upon the first Business Day after the date sent, if sent priority next Business Day delivery to the intended recipient by a reputable express courier service (charges prepaid) and addressed to the intended recipient as set forth below:

If to the Company, to:

Steve Hoffman, Chief Executive Officer

Tyme Technologies, Inc.

17 State Street - 7 th Floor

New York, New York 10004

and with a copy (which shall not constitute notice) to:

Attn: Jim Biehl, Esq.

Drinker Biddle & Reath, LLP

105 College Road East, P.O. Box 627

Princeton, NJ 08542-0627

If to you, to the address appearing in the Company’s records.

Any party hereto may send any notice, request, demand, claim or other communication hereunder to the intended recipient at the address set forth above using any other means, but no such notice, request, demand, claim or other communication will be deemed to have been duly given unless and until it actually is received and acknowledged by the intended recipient.  Any party hereto may change the address (or add new parties and their addresses) to which notices, requests, demands, claims, and other communications hereunder are to be delivered by giving the other parties hereto notice in the manner set forth in this Section 11.

12. Representations and Warranties . You hereby represent and warrant to the Company that (a) the execution, delivery and performance of this amended letter agreement by you does not and will not conflict with, breach, violate or cause a default under any agreement, contract or instrument to which you are a party or any judgment, order or decree to which you are subject, (b) you are not a party to or bound by any employment agreement, consulting agreement, non-compete agreement, confidentiality agreement or similar agreement with any other person or entity that is inconsistent with the provisions of this amended letter agreement, (c) upon the execution and delivery of this amended letter agreement by the Company and you, this amended letter agreement will be a valid and binding obligation of you and (d) you are able to perform the services described in this amended letter agreement.  The Company hereby represents and warrants to you that (i) the execution, delivery and performance of this amended

 

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letter agreement does not and will not conflict with, breach, violate or cause a default under any agreement, contract or instrument to which it is a party or any judgment, order or decree to which it is subject and (ii) upon the execution and delivery of this amended letter agreement by the Company and you , such agreement s will be valid and binding obligation s of the Company.

13. Lock-Up Agreement .  In connection with a registration with the United States Securities and Exchange Commission under the Securities Act of the public sale of shares of Common Stock, you shall not to sell, make any short sale of, loan, grant any option for the purchase of, or otherwise dispose of any securities of the Company (other than those included in the registration) without the prior written consent of the Company or such underwriters, as the case may be, for such period of time prior to the effective date of such registration and continuing through and following the effective date of such registration (not to exceed 180 days) as the Company or the underwriters, as the case may be, shall specify.  You agree that the Company may instruct its transfer agent to place stop-transfer notations in its records to enforce the provisions of this Section.  You shall execute a form of agreement reflecting the foregoing restrictions as requested by the underwriters managing such offering.

14. General Provisions .

(a) Severability .  It is the desire and intent of the parties hereto that the provisions of this amended letter agreement be enforced to the fullest extent permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought.  Accordingly, if any particular provision of this amended letter agreement will be adjudicated by a court of competent jurisdiction to be invalid, prohibited or unenforceable for any reason, such provision, as to such jurisdiction, will be ineffective, without invalidating the remaining provisions of this amended letter agreement or affecting the validity or enforceability of this amended letter agreement or affecting the validity or enforceability of such provision in any other jurisdiction.  Notwithstanding the foregoing, if such provision could be more narrowly drawn so as not to be invalid, prohibited or unenforceable in such jurisdiction, it will, as to such jurisdiction, be so narrowly drawn, without invalidating the remaining provisions of this amended letter agreement or affecting the validity or enforceability of such provision in any other jurisdiction.

(b) Complete Agreement .  This amended letter agreement and any schedules or exhibits expressly constitute the entire agreement among the parties hereto with respect to the subject matter hereof and supersedes and pre-empts any prior understandings, agreements or representations by or among the parties, written or oral, which may have related to the subject matter hereof in any way, including your March 15, 2017 letter agreement with the Company. Notwithstanding the foregoing statement, as set forth in paragraph 3(f), you shall continue to hold the Option (as defined in your March 15, 2017 letter agreement with the Company), pursuant to the terms of that March 15, 2017 letter agreement, and the 2015 Plan and Option Agreement (each as defined in the March 15, 2017 letter agreement), as may be amended.

(c) Successors and Assigns .  Except as otherwise provided herein, this amended letter agreement will be binding upon and inure to the benefit of you and the Company and our respective successors, permitted assigns, personal representatives, heirs and estates, as

 

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the case may be; provided , however , that your rights and obligations under this amended letter agreement will not be assigned without the prior written consent of the Company.

(d) Governing Law .  This amended letter agreement will be governed by and construed in accordance with the domestic laws of New York, without giving effect to the choice of law provisions thereof.  The parties agree that the exclusive venue for all disputes under this amended letter agreement shall be the federal and state courts sitting in New York, New York.

(e) Amendment and Waiver .  The provisions of this amended letter agreement may be amended and waived only with the prior written consent of the Company (with the approval of the Board) and you, and no course of conduct or failure or delay in enforcing the provisions of this amended letter agreement will affect the validity, binding effect or enforceability of this amended letter agreement or any provision hereof.

(f) Headings .  The section headings contained in this amended letter agreement are inserted for convenience only and will not affect in any way the meaning or interpretation of this amended letter agreement.

(g) Counterparts .  This amended letter agreement may be executed in counterparts, each of which will be deemed an original and all of which together will constitute one and the same instrument.  The signatures of any of the persons executing this amended letter agreement may be transmitted via facsimile or other electronic means and shall be sufficient evidence of the execution of this amended letter agreement.

(h) 409A Provision .  (i)  For purposes of this amended letter agreement the term “ termination of employment ” and similar terms relating to your termination of employment mean a “ separation from service ” as that term is defined under Section 409A of the Internal Revenue Code of 1986, as amended, and the final regulations issued thereunder (“ Section 409A ”).  The Company and you intend that this amended letter agreement comply in form and operation with the requirements of Section 409A, and all provisions of this amended letter agreement shall be construed and interpreted in a manner consistent with the requirements for avoiding taxes or penalties under Section 409A.  To the extent permitted by applicable Department of Treasury/Internal Revenue Service guidance, or law or regulation, the Company and you will take reasonable actions to reform this amended letter agreement or any actions taken pursuant to their operation of this amended letter agreement in order to comply with Section 409A.

(ii) For purposes of Section 409A, each of the payments that may be made hereunder is designated as a separate payment.  To the extent that the Company determines that any payment or benefit pursuant to this amended letter agreement constitutes deferred compensation (within the meaning of Section 409A), such payment or benefit shall be made at such times and in such forms as the Company determines are required to comply with Section 409A (including, without limitation, in the case of a “specified employee” within the meaning of Section 409A, the six-month delay for amounts payable upon a separation from service) and the Treasury Regulations and any applicable guidance thereunder.  

 

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(iii) Except as specifically permitted by Section 409A or as otherwise specifically set forth in this amended letter agreement , the benefits and reimbursements provided to you under this amended letter agreement and any Company plan or policy during any calendar year shall not affect the benefits and reimbursements to be provided to you under the relevant section of this amended letter agreement or any Company plan or policy in any other calendar year, and the right to such benefits and reimbursements cannot be liquidated or exchanged for any other benefit and shall be provided in accordance with Treas. Reg. Section 1.409A-3(i)(1)(iv) or any successor thereto.  Further, in the case of reimbursement payments, reimbursement payments shall be made to you as soon as practicable following the date that the applicable expense is incurred and proper documentation is provided to the Company , but in no event later than the last day of the calendar year following the calendar year in which the underlying expense is incurred.  

(i) “Business Day” Defined .  For purposes of this amended letter agreement, the capitalized term “ Business Day ” shall mean any calendar day other than a Saturday, Sunday or other day on which banks in New York, New York are authorized or required to be closed.

[THE REMAINDER OF THIS PAGE HAS INTENTIONALLY BEEN LEFT BLANK]

 

 

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If this amended letter agreement correctly expresses our mutual understanding, please sign and date a copy of this amended letter agreement and return it to the Company .

 

Very truly yours,

 

 

 

Tyme Technologies, Inc.

 

 

 

By:

/s/ Steve Hoffman

 

Name:

Steve Hoffman

 

Title:

Chief Executive Officer

 

The terms of this amended letter agreement are accepted
and agreed to as of the date set forth below by:

 

/s/ Jonathan Eckard

Jonathan Eckard

 

 

Date 7/30/18

 

 

 

 


 

EXHIBIT A

Form of Release

RELEASE

This Release (“ Release ”) is delivered by Jonathan Eckard on this __ day of _________, 20__.

DEFINITIONS

A. As used herein, unless otherwise specified, the term Employer ” shall mean Tyme Technologies, Inc., and all of its affiliates, successors, predecessors, assigns, parents, subsidiaries, divisions (whether incorporated or unincorporated), and all of its and their past and present owners, directors, officers, trustees, shareholders, managers, employees and agents (in their individual and representative capacities).

B. As used herein, unless otherwise specified, the term “ Employee ” shall mean Jonathan Eckard and all of his heirs, family members, executors, accountants, administrators, attorneys, agents, assigns, successors and representatives.

RECITALS

WHEREAS, Employee s employment ended on

, 20__; and

WHEREAS, it is a condition to Employee’s receipt of certain post-employment benefits (“ Conditional Benefits ”) under Sections 5(a)(iii), (iv) and (v) of the amended letter agreement, dated July 26, 2018 (the “ Employment Agreement ”), between Employee and Employer that Employee execute this Release.

NOW THEREFORE, in consideration of the promises, representations and mutual covenants contained in this Release, and for other good and valuable consideration, the sufficiency of which is hereby acknowledged, it is agreed as follows:

1. Consideration .  Employee acknowledges that the Conditional Benefits are in excess of any earned wages or benefits due and owing to Employee, and would not be paid or provided unless Employee executed this Release.  Employee acknowledges and agrees that the Conditional Benefits are adequate and independent consideration for Employee executing this Release and releasing any and all claims against Employer.

2. Release of All Claims .  In consideration of the above, and the other promises set forth in this Release, Employee fully and forever waives, releases, acquits and discharges Employer from and for all manner of claims, actions, suits, charges, grievances and/or causes of action, in law or in equity, existing by reason of and/or based upon any fact or set of facts, known or unknown, existing from the beginning of time through the effective date of this Release relating to and/or arising out of the Employment Agreement, Employee’s employment with Employer and/or the cessation of Employee’s employment with Employer (collectively, the “ Released Claims ”), including, but not limited to, all claims, actions, suits, charges, grievances

 

A-1

 


 

and/or causes of action for wages, compensation, liquidated damages, commissions, bonuses, benefits, sums of money, damages of every type, costs, attorney fees, judgments, executions, wrongful discharge, breach of contract, breach of implied contract, breach of the covenant of good faith and fair dealing, tortious interference with contract or business relationships, assault, battery, invasion of privacy, misappropriation of trade secrets, promissory estoppel, unjust enrichment, loss of consortium, violation of the penal statutes, negligent or intentional infliction of emotional distress, negligence, defamation, retaliation and/or discrimination and/or harassment on account of age, sex, sexual orientation, creed, religion, race, color, national origin, sensory disability, mental disability, physical disability, veteran or military status, marital status, or any other classification recognized under all applicable discrimination laws, or any other claim or cause of action, which has or could have been alleged under the common law, civil rights statutes, Title VII of the Civil Rights Act of 1964 ( Title VII ), the Age Discrimination in Employment Act ( ADEA ), the Family and Medical Leave Act ( FMLA ), the Employee Retirement Income Security Act ( ERISA ), the Rehabilitation Act of 1973, the Older Workers Benefits Protection Act ( OWBPA ), the Americans with Disabilities Act ( ADA ), The Consolidated Omnibus Budget Reconciliation Act ( COBRA ), the Workers Adjustment Retraining Notification Act ( WARN ), the Equal Pay Act ( EPA ), the Uniformed Services Employment and Reemployment Rights Act ( USERRA ), the National Labor Relations Act ( NLRA ), the New York State Human Rights Law, the New York City Human Rights Law, the New York Labor Law, and any and all other federal, state, local statutes, ordinances, and laws, and every type of relief (legal, equitable and otherwise), available to Employee.   Employee covenants and agrees that he will not pursue or allege any claim, matter or cause of action in violation of, and/or released under, this Release.  Nothing in this Release shall be construed as releasing Employer from , and the Released Claims shall not include : (a) any obligation to pay those amounts due to Employee under Section 5(a) of the Employment Agreement, subject to th e terms and conditions thereof ; (b) Employee s rights to enforce the terms of the Employment Agreement that survive the termination of the Employment Period (as defined in the Employment Agreement) ; (c ) Employee s rights described in Section 5(d) of the Employment Agreement; (d) Employee s non-forfeitable rights to accrued benefits (within the meaning of Sections 203 and 204 of ERISA), ( e ) Employee s right to indemnification or exculpation under the Employment Agreement, Employer s policies or law with respect to Employee s service as a director or officer of Employer ; ( f ) any claims for wages that are due and owing to Employee; ( g ) any claims that by law cannot be waived by private agreement without judicial or governmental supervision ; or ( h ) Employee s right to file a charge with or participate in any investigation or proceeding conducted by the U.S. Equal Employment Opportunity Commission ( EEOC ) or similar government agency; provided that even though Employee can file a charge or participate in an investigation or proceeding conducted by the EEOC or similar government agency, by executing this Release, Employee is waiving his ability to obtain relief of any kind from Employer to the ex tent permitted by law.  

3. Covenant Not to Sue .  Employee represents that he has not filed any action, charge, suit, or claim against Employer with any federal, state or local agency or court relating to any Released Claim.  Employee further agrees that should any claims, charges, complaints, suits or other actions be filed hereafter on his behalf by any federal, state or local agency or by any other person or entity with respect to a Released Claim, he will immediately withdraw with prejudice, or cause to be withdrawn with prejudice, and/or dismiss with prejudice, or cause to be dismissed with prejudice, any such claims, charges, complaints, suits or other actions filed against Employer.  Employee further agrees that, to the fullest extent permitted by law,

 

A-2

 


 

Employee shall receive no relief of any type (monetary, equitable, or otherwise) with respect to, relating to and/or on account of any such claims, matters or actions.  Employee agrees to opt-out of any class action or collective action filed against Employer to the extent related to a Released Claim.   

4. Confidentiality .  To the fullest extent permitted by law, Employee agrees to keep confidential all facts, opinions, and information which relate in any way to Employee’s employment and/or cessation of employment with Employer, as well as the terms of this Release; provided however , Employee may discuss the terms of this Release with his spouse, legal representative, and/or tax preparer, each of whom must also agree to maintain confidentiality and comply with this Section 4.  Notwithstanding anything herein to the contrary, Section 7(e) of the Employment Agreement will apply to this Release.  

5. Return of Employer’s Property .  Employee represents that he has returned to Employer any and all property, records, papers, documents and writings, in whatever form, of Employer in Employee’s possession and/or control, and that he has not retained any copies thereof, in whatever form.

6. Cooperation .

(a) To the fullest extent permitted by law, Employee will not cooperate with, or assist in, any claim, charge, lawsuit, or arbitration against Employer with respect to a Released Claim, unless required to do so by a lawfully issued subpoena, by court order or as expressly provided by regulation or statute. In the event Employee is served with a subpoena or is required by court order or otherwise to testify in any type of proceeding involving Employer and related to a Released Claim, Employee shall immediately advise Employer in writing of same.

(b) Employee agrees to cooperate with Employer in any internal investigation, administrative, regulatory, or judicial proceeding or any dispute with a third party.  Employee’s cooperation may include being available to Employer upon reasonable notice for interviews and factual investigations, appearing at Employer’s request to give testimony without requiring service of a subpoena or other legal process, volunteering to Employer pertinent information, and turning over to Employer all relevant documents which are or may come into Employee’s possession.  Employee understands that in the event Employer asks for Employee’s cooperation in accordance with this provision, Employer will reimburse him for reasonable travel expenses (including lodging and meals) upon submission of receipts acceptable to Employer.

7. ADEA Notice and Acknowledgement .  Employee acknowledges that he has carefully read this Release and fully understands its contents.  Prior to signing this Release, Employee has been advised in writing hereby and has had an opportunity to consult with his attorney of choice concerning the terms and conditions of this Release with regard to any claim or right Employee may have under the ADEA or otherwise.  Employee has been offered at least [21][45] days to review and consider this Release.  Employee may voluntarily and knowingly waive this [21/45]-day period, or any part thereof, if he signs this Release prior to the expiration of [21/45] days.  After signing this Release, Employee shall have seven days from the signing date to revoke this Release.  This Release shall not be effective (including for purposes under the Employment Agreement) until after the seven-day revocation period has expired.  Any

 

A-3

 


 

revocation must be made in writing and delivered to the Chief Executive Officer of Employer .  Until all applicable periods set forth in this Section 7 have expired, Employer shall not be required to make any payment to Employee which payment is, under Section 5(a)(iii) or (iv) of the Employment Agreement, contingent upon the signing and delivery to the Company of this Release.  By signing this Release, Employee agrees and understands that he is waiving and releasing any and all rights he may have to pursue claims against Employer, from the beginning of time up to the effective date of this Release, including, without limitation, all ADEA claims.

8. Governing Law .  New York law shall govern this Release, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of New York.  

9. Successors and Assigns .  This Release shall inure to the benefit of the successors and assigns of Employer.

10. Severability .  If any portion of this Release is ruled unenforceable, all remaining portions of this Release shall remain valid.

11. No Reliance; No Waiver .  Employee represents that he is not relying on any representation, statement, or promise of Employer or any other party in giving this Release.  This Release may not be amended, modified, waived, or terminated except in a writing signed by Employee and an authorized representative of Employer.

12. Headings .  The paragraph and section headings in this Release are inserted merely for the convenience of reference only and shall not be used to construe, affect or modify the terms of any paragraph or provision of this Release.

EMPLOYEE WITHOUT ANY DURESS OR COERCION FREELY, KNOWINGLY AND VOLUNTARILY ENTERS INTO, AND GIVES THIS RELEASE.  EMPLOYEE UNDERSTANDS AND AGREES WITH ALL OF THE PROVISIONS AND THE TERMS STATED IN THIS RELEASE AND HAS BEEN AFFORDED SUFFICIENT AND REASONABLE TIME TO CONSIDER WHETHER TO ENTER INTO THIS RELEASE.  EMPLOYER ADVISES EMPLOYEE TO CONSULT WITH AN ATTORNEY OF EMPLOYEE’S CHOOSING PRIOR TO EXECUTING THIS RELEASE WHICH CONTAINS A RELEASE AND WAIVER.

 

Dated:

 

 

 

 

Jonathan Eckard

93572645.2

 

 

 

 

 

A-4

 

Exhibit 10.5

Tyme Technologies, Inc.

Amended & Restated

Nonqualified Stock Option Agreement

This Amended and Restated Nonqualified Stock Option Agreement (the “ Agreement ”), dated July 30, 2018, (the “ Effective Date ”) is made by and between Tyme Technologies, Inc., a Delaware corporation (the “ Company ”), and Jonathan Eckard (the “ Optionee ”).

WHEREAS ,  on August 1, 2017 (the “ Date of Grant ”), the Company, pursuant to the Company’s 2015 Equity Incentive Plan (the “ Plan ”), granted Optionee a nonqualified stock option (the “ Option ”) to purchase a total of 500,000 shares (the “ Shares ”) of the common stock, par value $0.0001 per share (the “ Common Stock ”), of the Company, at the exercise price of $4.31 per Share (the “ Exercise Price ”), on the terms and conditions set forth in the Nonqualified Stock Option Plan Agreement, dated as of the Date of Grant (the “ Prior Award ”)

WHEREAS, the Prior Award provided for a four year vesting schedule, and Optionee’s right to purchase 50,000 Shares had vested as of the date hereof;

WHEREAS , the Company and Optionee wish to modify the Prior Award to, among other things, provide the Optionee with a modified vesting schedule of the remaining unvested portion of the Option and change certain other provisions;

NOW, THEREFORE , effective as of the Effective Date, the Company and the Optionee hereby amend the Prior Award on the following terms and, in all respects, as if granted on the Date of Grant, subject to the terms and conditions of the Plan.  The Option is not intended to qualify as an Incentive Stock Option under Section 422 of the Internal Revenue Code of 1986, as amended (the “ Code ”); capitalized terms not otherwise defined in this Agreement shall have the meanings assigned to such terms in the Plan.  

1. Duration.   Subject to the earlier termination as provided in this Agreement or under the Plan, the Option shall expire and shall no longer be exercisable as of the close of business on August 1, 2027 (the “ Termination Date ”).

2.

Anti Dilution Provisions.

(a) If there is any stock dividend, stock split or combination of Shares or other change in capital structure of the Company described in Section 4.4 of the Plan, the number and amount of Shares then subject to the Option and the Exercise Price shall be proportionately and appropriately adjusted as determined by the Committee, whose determination shall be final, conclusive and binding upon Optionee and the Company.

(b) If there is any other change in the Common Stock, including a reorganization, sale or exchange of assets, exchange of shares, offering of subscription rights, or a merger, consolidation or similar transaction in which the Company is the surviving corporation, an adjustment, if any, shall be made in the Shares then subject to the Option and the Exercise Price

 


 

as the Board or Committee may deem equitable, and whose determination shall be final, conclusive and binding upon Optionee and the Company.  Failure of the Board or the Committee to provide for an adjustm ent pursuant to this paragraph 2 (b) prior to the effective date of any Company action referred to in this paragraph 2 (b) shall be conclusive evidence that no adjustment is required in consequence of such action.

(c) Subject to Section 6(b), if the Company is merged into or consolidated with any other corporation and the Company is not the surviving corporation, or if the Company sells all or substantially all of the Company’s assets to any other corporation, then either

(i) the Company shall cause provisions to be made for the continuance of the Option after such event or for the substitution for the Option of an option covering the number and class of securities which the Optionee would have been entitled to receive in such merger, consolidation or if the Optionee had been the holder of record of a number of Shares equal to the number of Shares covered by the unexercised portion of the Option immediately prior to such merger, consolidation or sale; or

(ii) the Company shall give to Optionee written notice of the Company’s election not to cause such provision to be made and the Option shall become exercisable in full (or, at the election of the Optionee, in part) at any time during a period of thirty days, to be designated by the Company, ending not more than ten days prior to the effective date of the merger, consolidation or sale, in which case the Option shall not be exercisable to any extent after the expiration of such thirty-day period.

Notwithstanding the provisions of this paragraph 2(c), in no event shall the Option be exercisable after the Termination Date.

3. Non-Transferability.   The Option shall not be transferable by Optionee, other than by (x) will, the laws of descent or distribution or (y) pursuant to a proceeding under Title 11 of the U.S. Bankruptcy Code or similar insolvency proceeding, and is exercisable during the lifetime of Optionee only by Optionee, except as otherwise specifically provided in this Agreement or the Plan.  The terms of this Agreement shall be binding upon the executors, administrators, heirs, successors and assigns of Optionee.

4. Certain Rights Not Conferred by Option.   Optionee shall not, by virtue of holding the Option, be entitled to any rights of a stockholder in the Company.

5. Expenses.   The Company shall pay all original issue and transfer taxes with respect to the issuance of the Shares pursuant hereto and all other fees and expenses necessarily incurred by the Company in connection therewith.

2

 


 

6.

Exercise of Options.

(a) 50,000 Shares of the Option were previously vested.

(b) The remaining portion of the Option shall become exercisable on the dates and in the amounts as follows:

Date

Number of Shares

On the Effective Date

75,000 shares

08/01/2018

41,666 shares

11/01/2018

41,667 shares

02/01/2019

41,667 shares

05/01/2019

41,667 shares

08/01/2019

41,666 shares

11/01/2019

41,667 shares

02/01/2020

41,667 shares

05/01/2020

41,667 shares

08/01/2020

41,666 shares

 

(c) In the event of a Change of Control while Optionee is in the employ of the Company, the Option, to the extent unvested and unexercisable, shall fully vest and become exercisable as of immediately prior to such Change of Control.

(d) The Option shall be exercisable, in whole or part and from time to time, but subject to the exercise schedule set forth in paragraph 6(a) of this Agreement, by written or electronic notice to the Chief Executive Officer or Secretary of the Company of such exercise, complying with the Plan and applicable procedures established by the Committee or the Company.  Such notice shall specify the number of Shares for which the Option is being exercised (which number, if less than all of the Shares then subject to exercise, shall be 100 or an integral multiple thereof) and shall be accompanied by:

(i) payment of the full exercise price for the Shares for which the Option is being exercised; and

(ii) this Agreement.

(e) The form of payment of the Exercise Price for Shares purchased pursuant to each exercise of the Option shall be paid in full at the time of each purchase in one or a combination of the following methods:

(i) cash;

(ii) check (subject to collection);

(iii) in the discretion of the Committee, surrender to the Company of other Shares owned by the Optionee, which:

3

 


 

(A) have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares as to which the Option is being exercised ; and

(B) have been owned of record by Optionee for at least six months;

(iv) by “net exercise,” by means of exercising the Option, to the extent exercisable, and receiving such number of Shares having a Fair Market Value on the date of such net exercise equal to the difference between:  

(A) the Fair Market Value of the full number of Shares issuable upon exercise of the Option on the date of such net exercise; and

(B) the Exercise Price multiplied by the full number of Shares issuable upon exercise of the Option; or

(v) if there is a public market for Shares, subject to applicable law, by:

(A) assignment to the Company of the net proceeds (to the extent necessary to pay such exercise price) to be received from a registered broker upon the sale of the Shares or assignment of the net proceeds (to the extent necessary to pay such exercise price) of a loan from such broker in such amount; or

(B) such other consideration and method of payment for the issuance of stock to the extent permitted under applicable law and satisfying the requirements of Rule 16b-3 promulgated pursuant to the Exchange Act.

(f) No Shares shall be delivered upon exercise of the Option until all laws, rules and regulations which the Committee may, in its sole discretion, deem applicable have been complied with.  If a registration statement under the Securities Act is not then in effect with respect to the Shares issuable upon such exercise, the Company may require as a condition precedent that Optionee, upon exercising the Option, deliver to the Company a written representation and undertaking, satisfactory in form and substance to the Committee, that, among other things, Optionee is acquiring the Shares for Optionee’s own account for investment purposes only and not with a view to the distribution thereof.

(g) Optionee shall not be considered a record holder of the Shares so purchased for any purpose until the date on which Optionee is actually recorded as the holder of such Shares in the records of the Company.

(h) Unless otherwise provided in the Optionee’s employment agreement, in the event of Optionee’s death, disability or termination of employment, the exercisability of the Option shall be governed by the provisions of Section 5.7 of the Plan, unless such provisions are waived by the Committee, in the Committee’s sole discretion.

7. Withholding of Tax .  To the extent that the exercise of the Option, or any event pursuant to this Agreement, results in the incurrence of compensation or other taxable income by Optionee that is subject to withholding by the Company, Optionee must satisfy such tax

4

 


 

withholding obligation by giving written notice to the Company, prior to the delivery of Shares, of the Optionee’s election to either (a) deliver to the Company an amount of cash equal to the tax withholding amount required under applicable tax laws or regulations or (b) have the Company deduct from the number of Shares that would have otherwise been delivered to Optionee a number of such S hares having a Fa ir M arket V alue equal to such tax withholding amount.  Regardless of any action of the Company, Optionee acknowledges that Optionee is ultimately liable for such tax withholding obligation.  The Company shall not be required to deliver any Shares in respect of the Option under this Agreement until such liability is satisfied.

8. Continued Employment.   Nothing herein shall be deemed to create any employment or consultancy or guaranty of continued employment or consultancy or limit in any way the Company’s right to terminate Optionee’s employment or consultancy at any time.

9. Investment Representation and Legend of Certificates .  Optionee acknowledges that, for any period in which a registration statement with respect to the Option and/or Shares under the Securities Act of 1933, as amended (the “ Securities Act ”), is not effective, Optionee shall hold the Option and will purchase and/or own the Shares for investment purposes only and not for resale or distribution.  The Company shall have the right to place upon the face and/or reverse side of any stock certificate or certificates evidencing the Shares such legend as the Committee may prescribe for the purpose of preventing disposition of such Shares in violation of the Securities Act.

 

 

 

Tyme Technologies, Inc.

 

 

 

 

 

 

 

By:

 

/s/ Steve Hoffman

 

 

 

 

Steve Hoffman

 

 

 

 

Chief Executive Officer

 

5

 


 

OPTIONEE ACKNOWLEDGEMENT

OPTIONEE ACKNOWLEDGES AND AGREES THAT, EXCEPT AS SET FORTH IN THIS AGREEMENT OR OPTIONEE’S EMPLOYMENT AGREEMENT, THE EXERCISABILITY OF THE SHARES SUBJECT TO THIS AGREEMENT AND THE OPTION IS EARNED ONLY BY CONTINUING EMPLOYMENT OR CONSULTANCY AT THE WILL OF THE COMPANY (NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED THE OPTION OR ACQUIRING SHARES HEREUNDER).  OPTIONEE FURTHER ACKNOWLEDGES AND CONFIRMS THAT NOTHING IN THIS AGREEMENT, NOR IN THE PLAN WHICH IS INCORPORATED HEREIN BY REFERENCE, SHALL CONFER UPON OPTIONEE ANY RIGHT WITH RESPECT TO CONTINUATION OF EMPLOYMENT OR CONSULTANCY BY THE COMPANY, NOR SHALL IT INTERFERE IN ANY WAY WITH OPTIONEE’S OR THE COMPANY’S RIGHT, SUBJECT TO OPTIONEE’S AND THE COMPANY’S RIGHTS UNDER OTHER AGREEMENTS, IF ANY, WITH THE COMPANY, TO TERMINATE EMPLOYMENT OR CONSULTANCY AT ANY TIME, WITH OR WITHOUT CAUSE.

Optionee acknowledges receipt of a copy of the Plan and certain information related to the Plan and the Company and represents that Optionee is familiar with the terms and provisions of the Plan, and hereby accepts the Option subject to all of the terms and provisions of the Plan.  Optionee has reviewed the Plan and this Agreement in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Agreement and fully understands all of the terms and provisions of the Option and this Agreement.  Optionee hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Committee upon any questions arising under the Plan.  Optionee further agrees to notify the Company upon any change in the residence address currently set forth in the Company’s records.

 

Accepted and agreed as of
the date as first set forth above:

 

/s/ Jonathan Eckard

Jonathan Eckard

 

6

 

Exhibit 10.6

Tyme Technologies, Inc.

Amendment to

Nonqualified Stock Option Agreement

This Amendment to Nonqualified Stock Option Agreement (the “ Amendment ”), dated ________, 2018 (the “ Effective Date ”) is made by and between Tyme Technologies, Inc., a Delaware corporation (the “ Company ”), and ____________ (the “ Optionee ”).

WHEREAS ,  on May 24, 2018 (the “ Date of Grant ”), the Company, pursuant to the Company’s 2015 Equity Incentive Plan (the “ Plan ”), granted Optionee a nonqualified stock option (the “ Option ”) to purchase a total of _________ shares (the “ Shares ”) of the common stock, par value $0.0001 per share (the “ Common Stock ”), of the Company, at the exercise price of $2.90 per Share (the “ Exercise Price ”), on the terms and conditions set forth in the Nonqualified Stock Option Plan Agreement, dated as of the Date of Grant (the “ Prior Award ”)

WHEREAS, the Prior Award provided for a four year vesting schedule for the Option;

WHEREAS , the Company wishes to modify the Prior Award to provide the Optionee with a modified vesting schedule of the Option to reflect a three year Option vesting schedule;

NOW, THEREFORE , in consideration of the foregoing and of the representations, warranties, covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Optionee hereby agree as follows:

1.

Amendment of Section 8 . Section 8(a) of the Prior Award is hereby deleted in its entirety and replaced with the following:

(a) Except as otherwise provided herein, the Option shall become exercisable according to the following schedule, provided that the Optionee is employed by the Company on such date:

 

Date

Number of Shares

08/24/2018

1/12th of shares for each grant

11/24/2018

1/12th of shares for each grant

02/24/2019

1/12th of shares for each grant

05/24/2019

1/12th of shares for each grant

08/24/2018

1/12th of shares for each grant

11/24/2018

1/12th of shares for each grant

02/24/2019

1/12th of shares for each grant

05/24/2019

1/12th of shares for each grant

08/24/2018

1/12th of shares for each grant

11/24/2018

1/12th of shares for each grant

02/24/2019

1/12th of shares for each grant

05/24/2019

1/12th of shares for each grant


 

2.

Survival .  Except as modified hereby, the Prior Award continues in full force and effect, unmodified in any way.

3.

Counterparts .  This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same amendment.  

[Signature Page Follows]

 

 

2

 

 


 

IN WITNESS WHEREOF, the parties have executed this Amendment to Nonqualified Stock Option Agreement as of the date first written above.

 

Tyme Technologies, Inc.

 

 

 

By:

 

 

Steve Hoffman

 

Chief Executive Officer

 

Optionee

 

 

 

By:

 

Name:

 

 

[Signature Page to Amendment to Nonqualified Stock Option Award]

Exhibit 10.7

Tyme Technologies, Inc.

[Nonqualified] [Incentive] Stock Option Agreement

Tyme Technologies, Inc., a Delaware corporation (the “ Company ”), pursuant to the Company’s 2015 Equity Incentive Plan (the “ Plan ”), has granted to [NAME OF EMPLOYEE] (the “ Optionee ”) [a nonqualified] [an incentive] stock option (the “ Option ”) to purchase a total of _________ shares (each, a “ Share ”) of the common stock, par value $0.0001 per share (the “ Common Stock ”), of the Company, at the exercise price of $_____ per Share (the “ Exercise Price ”), on the terms and conditions set forth in this Nonqualified Stock Option Plan Agreement (this “ Agreement ”) and, in all respects, subject to the terms and conditions of the Plan.  The date of grant of the Option is July __, 2018 (the “ Date of Grant ”).  The Option is [not] intended to qualify as an Incentive Stock Option under Section 422 of the Internal Revenue Code of 1986, as amended (the “ Code ”); provided , however , to the extent that the Option does not qualify as an Incentive Stock Option under the Code, such portion of the Option shall be treated as an option that does not qualify as an Incentive Stock Option under the Code. Capitalized terms not otherwise defined in this Agreement shall have the meanings assigned to such terms in the Plan.  

1. Duration.   Subject to the earlier termination as provided in this Agreement or under the Plan, the Option shall expire and shall no longer be exercisable as of the close of business on ____________ (the “ Termination Date ”).

2.

Anti Dilution Provisions.

(a) If there is any stock dividend, stock split or combination of Shares or other change in capital structure of the Company described in Section 4.4 of the Plan, the number and amount of Shares then subject to the Option and the Exercise Price shall be proportionately and appropriately adjusted as determined by the Committee, whose determination shall be final, conclusive and binding upon Optionee and the Company.

(b) If there is any other change in the Common Stock, including a reorganization, sale or exchange of assets, exchange of shares, offering of subscription rights, or a merger, consolidation or similar transaction in which the Company is the surviving corporation, an adjustment, if any, shall be made in the Shares then subject to the Option and the Exercise Price as the Board or Committee may deem equitable, and whose determination shall be final, conclusive and binding upon Optionee and the Company.  Failure of the Board or the Committee to provide for an adjustment pursuant to this paragraph 2(b) prior to the effective date of any Company action referred to in this paragraph 2(b) shall be conclusive evidence that no adjustment is required in consequence of such action.

(c) Subject to Section 6(b), if the Company is merged into or consolidated with any other corporation and the Company is not the surviving corporation, or if the Company sells all or substantially all of the Company’s assets to any other corporation, then either

(i) the Company shall cause provisions to be made for the continuance of the Option after such event or for the substitution for the Option of an option covering the number and class of securities which the Optionee would have been entitled to receive in such merger, consolidation or if the Optionee had been the holder of record of a number

 

 


 

of S hares equal to the number of Shares covered by the unexercised portion of the Option immediately prior to such merger, consolidation or sale; or

(ii) the Company shall give to Optionee written notice of the Company’s election not to cause such provision to be made and the Option shall become exercisable in full (or, at the election of the Optionee, in part) at any time during a period of thirty days, to be designated by the Company, ending not more than ten days prior to the effective date of the merger, consolidation or sale, in which case the Option shall not be exercisable to any extent after the expiration of such thirty-day period.

Notwithstanding the provisions of this paragraph 2(c), in no event shall the Option be exercisable after the Termination Date.

3. Non-Transferability.   The Option shall not be transferable by Optionee, other than by (x) will, the laws of descent or distribution or (y) pursuant to a proceeding under Title 11 of the U.S. Bankruptcy Code or similar insolvency proceeding, and is exercisable during the lifetime of Optionee only by Optionee, except as otherwise specifically provided in this Agreement or the Plan.  The terms of this Agreement shall be binding upon the executors, administrators, heirs, successors and assigns of Optionee.

4. Certain Rights Not Conferred by Option.   Optionee shall not, by virtue of holding the Option, be entitled to any rights of a stockholder in the Company.

5. Expenses.   The Company shall pay all original issue and transfer taxes with respect to the issuance of the Shares pursuant hereto and all other fees and expenses necessarily incurred by the Company in connection therewith.

6.

Exercise of Options.

(a) The Option shall become exercisable on the dates and in the amounts as follows:

[INSERT HERE APPLICABLE VESTING SCHEDULE.]

(b) In the event of a Change of Control while Optionee is in the employ of the Company, the Option, to the extent unvested and unexercisable, shall fully vest and become exercisable as of immediately prior to such Change of Control.

(c) The Option shall be exercisable, in whole or part and from time to time, but subject to the exercise schedule set forth in paragraph 6(a) of this Agreement, by written or electronic notice to the Chief Executive Officer or Secretary of the Company of such exercise, complying with the Plan and applicable procedures established by the Committee or the Company.  Such notice shall specify the number of Shares for which the Option is being exercised (which number, if less than all of the Shares then subject to exercise, shall be 100 or an integral multiple thereof) and shall be accompanied by:

(i) payment of the full exercise price for the Shares for which the Option is being exercised; and

2

 


 

(ii) this Agreement.

(d) The form of payment of the Exercise Price for Shares purchased pursuant to each exercise of the Option shall be paid in full at the time of each purchase in one or a combination of the following methods:

(i) cash;

(ii) check (subject to collection);

(iii) in the discretion of the Committee, surrender to the Company of other Shares owned by the Optionee, which:

(A) have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares as to which the Option is being exercised; and

(B) have been owned of record by Optionee for at least six months;

(iv) by “net exercise,” by means of exercising the Option, to the extent exercisable, and receiving such number of Shares having a Fair Market Value on the date of such net exercise equal to the difference between:  

(A) the Fair Market Value of the full number of Shares issuable upon exercise of the Option on the date of such net exercise; and

(B) the Exercise Price multiplied by the full number of Shares issuable upon exercise of the Option; or

(v) if there is a public market for Shares, subject to applicable law, by:

(A) assignment to the Company of the net proceeds (to the extent necessary to pay such exercise price) to be received from a registered broker upon the sale of the Shares or assignment of the net proceeds (to the extent necessary to pay such exercise price) of a loan from such broker in such amount; or

(B) such other consideration and method of payment for the issuance of stock to the extent permitted under applicable law and satisfying the requirements of Rule 16b-3 promulgated pursuant to the Exchange Act.

(e) No Shares shall be delivered upon exercise of the Option until all laws, rules and regulations which the Committee may, in its sole discretion, deem applicable have been complied with.  If a registration statement under the Securities Act is not then in effect with respect to the Shares issuable upon such exercise, the Company may require as a condition precedent that Optionee, upon exercising the Option, deliver to the Company a written representation and undertaking, satisfactory in form and substance to the Committee, that, among other things, Optionee is acquiring the Shares for Optionee’s own account for investment purposes only and not with a view to the distribution thereof.

3

 


 

(f) Optionee shall not be considered a record holder of the Shares so purchased for any purpose until the date on which Optionee is actually recorded as the holder of such Shares in the records of the Company.

(g) Unless otherwise provided in the Optionee’s employment agreement, in the event of Optionee’s death, disability or termination of employment, the exercisability of the Option shall be governed by the provisions of Section 5.7 of the Plan, unless such provisions are waived by the Committee, in the Committee’s sole discretion.

7. Withholding of Tax .  To the extent that the exercise of the Option, or any event pursuant to this Agreement, results in the incurrence of compensation or other taxable income by Optionee that is subject to withholding by the Company, Optionee must satisfy such tax withholding obligation by giving written notice to the Company, prior to the delivery of Shares, of the Optionee’s election to either (a) deliver to the Company an amount of cash equal to the tax withholding amount required under applicable tax laws or regulations or (b) have the Company deduct from the number of Shares that would have otherwise been delivered to Optionee a number of such Shares having a Fair Market Value equal to such tax withholding amount.  Regardless of any action of the Company, Optionee acknowledges that Optionee is ultimately liable for such tax withholding obligation.  The Company shall not be required to deliver any Shares in respect of the Option under this Agreement until such liability is satisfied.

8. Continued Employment.   Nothing herein shall be deemed to create any employment or consultancy or guaranty of continued employment or consultancy or limit in any way the Company’s right to terminate Optionee’s employment or consultancy at any time.

9. Investment Representation and Legend of Certificates .  Optionee acknowledges that, for any period in which a registration statement with respect to the Option and/or Shares under the Securities Act of 1933, as amended (the “ Securities Act ”), is not effective, Optionee shall hold the Option and will purchase and/or own the Shares for investment purposes only and not for resale or distribution.  The Company shall have the right to place upon the face and/or reverse side of any stock certificate or certificates evidencing the Shares such legend as the Committee may prescribe for the purpose of preventing disposition of such Shares in violation of the Securities Act.

 

Tyme Technologies, Inc.

 

 

 

By:

 

 

Steve Hoffman

 

Chief Executive Officer


4

 


 

OPTIONEE ACKNOWLEDGEMENT

OPTIONEE ACKNOWLEDGES AND AGREES THAT, EXCEPT AS SET FORTH IN THIS AGREEMENT OR OPTIONEE’S EMPLOYMENT AGREEMENT, THE EXERCISABILITY OF THE SHARES SUBJECT TO THIS AGREEMENT AND THE OPTION IS EARNED ONLY BY CONTINUING EMPLOYMENT OR CONSULTANCY AT THE WILL OF THE COMPANY (NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED THE OPTION OR ACQUIRING SHARES HEREUNDER).  OPTIONEE FURTHER ACKNOWLEDGES AND CONFIRMS THAT NOTHING IN THIS AGREEMENT, NOR IN THE PLAN WHICH IS INCORPORATED HEREIN BY REFERENCE, SHALL CONFER UPON OPTIONEE ANY RIGHT WITH RESPECT TO CONTINUATION OF EMPLOYMENT OR CONSULTANCY BY THE COMPANY, NOR SHALL IT INTERFERE IN ANY WAY WITH OPTIONEE’S OR THE COMPANY’S RIGHT, SUBJECT TO OPTIONEE’S AND THE COMPANY’S RIGHTS UNDER OTHER AGREEMENTS, IF ANY, WITH THE COMPANY, TO TERMINATE EMPLOYMENT OR CONSULTANCY AT ANY TIME, WITH OR WITHOUT CAUSE.

Optionee acknowledges receipt of a copy of the Plan and certain information related to the Plan and the Company and represents that Optionee is familiar with the terms and provisions of the Plan, and hereby accepts the Option subject to all of the terms and provisions of the Plan.  Optionee has reviewed the Plan and this Agreement in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Agreement and fully understands all of the terms and provisions of the Option and this Agreement.  Optionee hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Committee upon any questions arising under the Plan.  Optionee further agrees to notify the Company upon any change in the residence address currently set forth in the Company’s records.

Accepted and agreed as of
the date as first set forth above:

 

 

[NAME OF EMPLOYEE]

 

5

 

EXHIBIT 31.1

RULE 13a-14(a)/15d-14(a) CERTIFICATION

I, Steve Hoffman, certify that:

1.

I have reviewed this Quarterly Report on Form 10-Q of Tyme Technologies, Inc.; and

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;  

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.

The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.

The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: July 31, 2018

 

/s/ Steve Hoffman

 

 

Steve Hoffman

 

 

Chief Executive Officer

 

 

(Principal Executive Officer)

 

EXHIBIT 31.2

RULE 13a-14(a)/15d-14(a) CERTIFICATION

I, Ben R. Taylor, certify that:

1.

I have reviewed this Quarterly Report on Form 10-Q of Tyme Technologies, Inc.; and  

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.

The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.

The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: July 31, 2018

 

/s/ Ben R. Taylor

 

 

Ben R. Taylor

 

 

President and Chief Financial Officer

 

 

(Principal Financial Officer and Principal Accounting Officer)

 

EXHIBIT 32.1

CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

(18 U.S.C. SECTION 1350)

In connection with the Quarterly Report on Form 10-Q of Tyme Technologies, Inc. (the “Company”) for the three-month period ended June 30, 2018, to which this certification is being filed as of the date hereof as an exhibit thereto (the “Report”), I, Steve Hoffman, Chief Executive Officer of the Company, and I, Ben R. Taylor, President and Chief Financial Officer of the Company, each certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(a)

The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C 78m or 78 o (d)); and

(b)

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: July 31, 2018

 

 

/s/ Steve Hoffman

Steve Hoffman

Chief Executive Officer

(Principal Executive Officer)

 

 

/s/ Ben R. Taylor

Ben R. Taylor

President and Chief Financial Officer

(Principal Financial Officer and Principal Accounting Officer)

THIS CERTIFICATION WILL NOT BE DEEMED “FILED” FOR PURPOSES OF SECTION 18 OF THE EXCHANGE ACT OR OTHERWISE SUBJECT TO THE LIABILITY OF THAT SECTION. SUCH CERTIFICATION WILL NOT BE DEEMED TO BE INCORPORATED BY REFERENCE INTO ANY FILING UNDER THE SECURITIES ACT OR THE EXCHANGE ACT, EXCEPT TO THE EXTENT THAT OUR COMPANY SPECIFICALLY INCORPORATES IT BY REFERENCE. A SIGNED ORIGINAL OF THIS CERTIFICATION HAS BEEN PROVIDED TO THE COMPANY AND WILL BE RETAINED BY THE COMPANY AND FURNISHED TO THE SECURITIES AND EXCHANGE COMMISSION OR ITS STAFF UPON REQUEST.