Execution


 


AMENDMENT
8 TO TERM LOAN AGREEMENT


 


THIS
AMENDMENT 8, dated as of October 4, 2019 and effective as of September 30, 2019 (this “Amendment”),
is made among TearLab Corporation, a Delaware corporation (“Borrower”), the subsidiary guarantors listed
on the signature pages hereof under the heading “SUBSIDIARY GUARANTORS” (each a “Subsidiary Guarantor”
and, collectively, the “Subsidiary Guarantors”) and the lenders listed on the signature pages hereof
under the heading “LENDERS” (each a “Lender” and, collectively, the “Lenders”),
with respect to the Loan Agreement referred to below.


 


RECITALS


 


WHEREAS,
the Borrower and the Lenders are parties to a Term Loan Agreement, dated as of March 4, 2015, as amended by the Omnibus Amendment
Agreement, dated as of April 2, 2015, Amendment 2, dated as of August 6, 2015, Amendment 3, dated as of December 31, 2015, Amendment
4, dated as of April 7, 2016, Amendment 5, dated as of October 12, 2017, Amendment 6, dated as of April 4, 2018, and Amendment
7, dated as of November 12, 2018 (the “Loan Agreement”), with the Subsidiary Guarantors from time to
time party thereto.


 


WHEREAS,
the Borrower has requested, and the Lenders have agreed, on the terms and subject to the conditions set forth herein, to amend
the Loan Agreement.


 


NOW,
THEREFORE, in consideration of the mutual agreements, provisions and covenants contained herein, the parties agree as follows:


 


SECTION
1. Definitions; Interpretation.


 


(a)
Terms Defined in Loan Agreement. All capitalized terms used in this Amendment (including in the recitals hereof) and not
otherwise defined herein shall have the meanings assigned to them in the Loan Agreement.


 


(b)
Interpretation. The rules of interpretation set forth in Section 1.03 of the Loan Agreement shall be applicable
to this Amendment and are incorporated herein by this reference.


 


SECTION
2. Amendment. Subject to Section 3:


 


(a)
Section 3.02(d) of the Loan Agreement is hereby amended as follows:


 


(i)
by replacing clause (i) thereof with the phrase “only 8.50% (or, in the case of the Interest Periods ending on March 31,
2019, June 30, 2019, and September 30, 2019, none) of the 13.00% per annum interest in cash and” and


 


(ii)
by replacing clause (ii) thereof with the phrase “4.50% (or, in the case of the Interest Periods ending on March 31, 2019,
June 30, 2019, and September 30, 2019, all) of the 13.00% per annum interest as compounded interest, added to the aggregate
principal amount of the Loans (the amount of any such compounded interest being a (“PIK Loan”)”.


 




    	 



    	 



    

 


(b)
Section 8.10 of the Loan Agreement is hereby amended and restated in its entirety as follows:


 


“8.10
Board Observation Rights. Borrower shall, concurrently with delivery to Borrower’s Board of Directors (the “Board”),
give a designated representative of the Lenders (who may change from time to time at the sole discretion of CRG Servicing LLC,
as agent for Lenders) (the “Representative”) copies of all notices, minutes, consents, documents, e-mails
and other material that Borrower provides to its directors at the same time and in the same manner as provided to such directors,
and shall permit the Representative to attend all meetings of the Board, whether held in person or by conference call, as a non-voting
observer, except that the Representative may be excluded from access to any material or meeting or portion thereof if the Board
determines in good faith, upon advice of counsel, that such exclusion is reasonably necessary solely to preserve attorney-client
privilege. Upon reasonable notice and at a scheduled meeting of the Board or such other time, if any, as the Board may determine
in its sole discretion, the Representative may address the Board with respect to a Lender’s concerns regarding significant
business issues facing Borrower.”


 


SECTION
3. Conditions of Effectiveness.


 


(a)
The effectiveness of Section 2 shall be subject to the following conditions precedent:


 


(i)
The Borrower shall have paid or reimbursed Lenders for Lenders’ reasonable out of pocket costs and expenses incurred in
connection with this Amendment, including Lenders’ reasonable and documented out of pocket legal fees and costs, pursuant
to Section 12.03(a)(i)(z) of the Loan Agreement.


 


(ii)
The representations and warranties in Section 4 shall be true in all material respects on the date hereof and on the first
date on which the conditions set forth in Section 3 shall have been satisfied.


 


SECTION
4. Representations and Warranties; Reaffirmation.


 


(a)
The Borrower hereby represents and warrants to each Lender as follows:


 


(i)
The Borrower has full power, authority and legal right to make and perform this Amendment. This Amendment is within the Borrower’s
corporate powers and has been duly authorized by all necessary corporate and, if required, by all necessary shareholder action.
This Amendment has been duly executed and delivered by the Borrower and constitutes a legal, valid and binding obligation of the
Borrower, enforceable against the Borrower in accordance with its terms, except as such enforceability may be limited by (a) bankruptcy,
insolvency, reorganization, moratorium or similar laws of general applicability affecting the enforcement of creditors’
rights and (b) the application of general principles of equity (regardless of whether such enforceability is considered in a proceeding
in equity or at law). This Amendment (x) does not require any consent or approval of, registration or filing with, or any other
action by, any Governmental Authority or any third party, except for such as have been obtained or made and are in full force
and effect, (y) will not violate any applicable law or regulation or the charter, bylaws or other organizational documents of
the Borrower and its Subsidiaries or any order of any Governmental Authority, other than any such violations that, individually
or in the aggregate, could not reasonably be expected to have a Material Adverse Effect, (z) will not violate or result in an
event of default under any material indenture, agreement or other instrument binding upon the Borrower and its Subsidiaries or
assets, or give rise to a right thereunder to require any payment to be made by any such Person.


 




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(ii)
No Default has occurred or is continuing or will result after giving effect to this Amendment.


 


(iii)
The representations and warranties made by or with respect to the Borrower in Section 7 of the Loan Agreement are true
in all material respects (taking into account any changes made to schedules updated in accordance with Section 7.21 of
the Loan Agreement or attached hereto), except that such representations and warranties that refer to a specific earlier date
were true in all material respects on such earlier date.


 


(iv)
There has been no Material Adverse Effect since the date of the Loan Agreement.


 


(b)
The Borrower hereby ratifies, confirms, reaffirms, and acknowledges its obligations under the Loan Documents to which it is a
party and agrees that the Loan Documents remain in full force and effect, undiminished by this Amendment, except as expressly
provided herein. By executing this Amendment, the Borrower acknowledges that it has read, consulted with its attorneys regarding,
and understands, this Amendment.


 


SECTION
5. Governing Law; Submission to Jurisdiction; Waiver of Jury Trial.


 


(a)
Governing Law. This Amendment and the rights and obligations of the parties hereunder shall be governed by, and construed
in accordance with, the law of the State of New York, without regard to principles of conflicts of laws that would result in the
application of the laws of any other jurisdiction; provided that Section 5-1401 of the New York General Obligations Law
shall apply.


 


(b)
Submission to Jurisdiction. The Borrower agrees that any suit, action or proceeding with respect to this Amendment or any
other Loan Document to which it is a party or any judgment entered by any court in respect thereof may be brought initially in
the federal or state courts in Houston, Texas or in the courts of its own corporate domicile and irrevocably submits to the non-exclusive
jurisdiction of each such court for the purpose of any such suit, action, proceeding or judgment. This Section 5 is for
the benefit of the Lenders only and, as a result, no Lender shall be prevented from taking proceedings in any other courts with
jurisdiction. To the extent allowed by applicable Laws, the Lenders may take concurrent proceedings in any number of jurisdictions.


 


(c)
Waiver of Jury Trial. The Borrower and each Lender hereby irrevocably waives, to
the fullest extent permitted by applicable law, any and all right to trial by jury in any suit, action or proceeding arising out
of or relating to this Amendment, the other Loan Documents or the transactions contemplated hereby or thereby.


 




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SECTION
6. Miscellaneous.


 


(a)
No Waiver. Nothing contained herein shall be deemed to constitute a waiver of compliance with any term or condition contained
in the Loan Agreement or any of the other Loan Documents or constitute a course of conduct or dealing among the parties. Except
as expressly stated herein, the Lenders reserve all rights, privileges and remedies under the Loan Documents. Except as amended
hereby, the Loan Agreement and other Loan Documents remain unmodified and in full force and effect. All references in the Loan
Documents to the Loan Agreement shall be deemed to be references to the Loan Agreement as amended hereby.


 


(b)
Severability. In case any provision of or obligation under this Amendment shall be invalid, illegal or unenforceable in
any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or
obligation in any other jurisdiction, shall not in any way be affected or impaired thereby.


 


(c)
Headings. Headings and captions used in this Amendment (including the Exhibits, Schedules and Annexes hereto, if any) are
included for convenience of reference only and shall not be given any substantive effect.


 


(d)
Integration. This Amendment constitutes a Loan Document and, together with the other Loan Documents, incorporates all negotiations
of the parties hereto with respect to the subject matter hereof and is the final expression and agreement of the parties hereto
with respect to the subject matter hereof.


 


(e)
Counterparts. This Amendment may be executed in any number of counterparts, all of which taken together shall constitute
one and the same instrument and any of the parties hereto may execute this Amendment by signing any such counterpart.


 


(f)
Controlling Provisions. In the event of any inconsistencies between the provisions of this Amendment and the provisions
of any other Loan Document, the provisions of this Amendment shall govern and prevail. Except as expressly modified by this Amendment,
the Loan Documents shall not be modified and shall remain in full force and effect.


 


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IN
WITNESS WHEREOF, the parties hereto have duly executed this Amendment, as of the date first above written.


 


	 	BORROWER:
	 	 
	 	TEARLAB
    CORPORATION
	 	 
	 	By:	/s/
    Seph Jensen 
	 	Name:	Seph
    Jensen
	 	Title:	Chief
    Executive Officer
	 	 	 
	 	SUBSIDIARY
    GUARANTORS:
	 	 	 
	 	TEARLAB
    RESEARCH, INC.
	 	 	 
	 	By	/s/
    Seph Jensen 
	 	Name:	Seph
    Jensen
	 	Title:	Chief
    Executive Officer
	 	 	 
	 	OCUHUB
    HOLDINGS, INC.
	 	 	 
	 	By	/s/
    Seph Jensen 
	 	Name:	Seph
    Jensen
	 	Title:	Chief
    Executive Officer
	 	 	 
	 	OCCULOGIX
    CANADA CORP.
	 	 	 
	 	By	/s/
    Seph Jensen 
	 	Name:	Seph
    Jensen
	 	Title:	Chief
    Executive Officer


 




    	 



    	 



    

 


	LENDERS:	 
	 	 
	CAPITAL ROYALTY PARTNERS II L.P.	 
	 	 	 	 
	 	By CAPITAL ROYALTY PARTNERS II GP
    L.P., its General Partner	 
	 	 	 	 
	 	 	By
    CAPITAL ROYALTY PARTNERS II GP LLC, its General Partner	 
	 	 	 	 
	 	 	By	/s/ Nathan
    Hukill	 
	 	 	 	Nathan
    Hukill	 
	 	 	 	Authorized
    Signatory	 
	 	 	 	 	 
	PARALLEL INVESTMENT OPPORTUNITIES
    PARTNERS II L.P.	 
	 	 	 	 
	 	By PARALLEL INVESTMENT OPPORTUNITIES
    PARTNERS II GP L.P., its General Partner	 
	 	 	 	 
	 	 	By
    PARALLEL INVESTMENT OPPORTUNITIES PARTNERS II GP LLC, its General Partner	 
	 	 	 	 	 
	 	 	By	/s/ Nathan
    Hukill	 
	 	 	 	Nathan
    Hukill	 
	 	 	 	Authorized
    Signatory	 
	 	 	 	 	 
	CRG
    Issuer 2015-1	 
	 	 	 	 
	By CRG
    Servicing LLC, as Administrator	 
	 	 
	By	/s/
    Nathan Hukill 	 
	 	Nathan Hukill	 
	 	President