Document:

EX-10.2

 Exhibit 10.2 

THIS SENIOR SECURED CONVERTIBLE PROMISSORY NOTE (THIS “NOTE”) AND THE SECURITIES ISSUABLE UPON THE CONVERSION HEREOF HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S PROMULGATED UNDER THE SECURITIES ACT,
PURSUANT TO REGISTRATION UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION. HEDGING TRANSACTIONS INVOLVING THE SECURITIES REPRESENTED HEREBY MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE SECURITIES ACT. THE ISSUER
OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT SUCH OFFER, SALE OR TRANSFER OTHERWISE COMPLIES WITH THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS. 

SENIOR SECURED CONVERTIBLE PROMISSORY NOTE 
  

			
	US$5,000,000	  	June 15, 2017

 Boston, Massachusetts 

FOR VALUE RECEIVED, GI DYNAMICS, INC., a Delaware
corporation (“Payor”), hereby promises to pay to the order of CRYSTAL AMBER FUND LIMITED (the “Holder”),
the principal sum of Five Million dollars (US$5,000,000) with interest on the outstanding principal amount at the rate of five percent (5%) per annum, compounded annually based on a 365-day year. Interest shall commence with the date hereof and
shall continue on the outstanding principal until paid in full or, if permitted by the terms of the Note, converted pursuant to Section 2 below. 

1. PAYMENT AND MATURITY 

(a) Reference is hereby made to the Note Purchase Agreement (the “Purchase Agreement”) dated as of even date herewith
between Payor and Holder. Capitalized terms used herein and not otherwise defined herein shall have the respective meanings given to them in the Purchase Agreement. 

(b) If this Senior Secured Convertible Promissory Note (this “Note”) has not already been paid in full or, if permitted
by the terms of this Note, converted in accordance with the terms of Section 2(a), 2(b) or 2(c) below, the entire outstanding principal balance of this Note and all unpaid accrued interest thereon shall be due and payable on
December 31, 2018 (the “Maturity Date”). All payments of interest and principal shall be in lawful money of the United States of America. All payments shall be applied first to accrued interest, and thereafter to
principal. If any payments on this Note become due on a Saturday, Sunday or a public holiday under the laws of the State of New York, such payment shall be made on the next succeeding business day and such extension of time shall be included in
computing interest in connection with such payment. 

  
 1. 

 (c) Upon the occurrence and during the continuance of any Event of Default, the principal balance
of this Note shall bear interest at the rate of eight percent (8%) per annum, including after the commencement of, and during the pendency of, any bankruptcy or other insolvency proceeding. 

2. CONVERSION 

(a) Automatic Conversion upon Qualified Financing. Subject to Section 2(d) hereof, if, at any time prior to
December 31, 2018, Payor issues and sells shares of its common stock, par value $0.01 per share (the “Common Stock”) or CHESS Depositary Interests (with each CDI representing 1/50th of a share of Common Stock) (“CDIs”) to investors (the “Investors”) in a Qualified Financing (as defined herein) and this Note has not been paid in
full, then the entire unpaid principal amount of this Note, together with any interest accrued but unpaid thereon (such principal amount and interest, the “Outstanding Amount”), shall automatically convert into CDIs at a
conversion price (the “Conversion Price”) equal to the price per CDI of the CDIs issued and sold at such Qualified Financing (or, if only Common Stock is issued and sold in such Qualified Financing, a conversion price equal
to the price per share of such Common Stock proportionately adjusted to reflect the ratio of CDIs to Common Stock in effect at the time of such Qualified Financing or, if another security of the Payor is issued and sold in such Qualified Financing,
a conversion price equal to the price of such security proportionately adjusted to reflect the ratio of CDIs to such security in effect at the time of such Qualified Financing). “Qualified Financing” means a round of equity
financing of Common Stock or CDIs in a single transaction or a series of related transactions involving the issuance of the Payor’s securities to one or more investors which raises gross proceeds to the Payor of at least $10,000,000 in the
aggregate (excluding proceeds from this Note). Subject to Section 2(d) hereof, the number of CDIs to be issued upon such conversion shall be equal to the quotient obtained by dividing (i) the Outstanding Amount by (ii) the
price per CDI rounded to the nearest whole CDI. Upon such conversion, the Holder will execute such agreements as may be entered into by purchasers of CDIs, shares of Common Stock or other securities, as applicable, in the Qualified Financing
generally. For the avoidance of doubt, no Investor in such Qualified Financing shall receive rights or preferences that are more favorable than those provided to the Holder. 

(b) Optional Conversion. Subject to Section 2(d) and Section 6(c) of this Note, the Holder shall have the option (the
“Conversion Option”), but not the obligation, at any time after the date hereof and prior to December 31, 2018, exercisable upon written notice to the Payor, to (a) convert all (but not less than all) of the
Outstanding Amount into the number of CDIs equal to the quotient obtained by dividing (x) the Outstanding Amount by (y) the price per CDI equal to the volume weighted average bid closing price of the Payor’s CDIs on the Australian
Securities Exchange (the “ASX”) for the five (5) trading days ending immediately prior to business day that the Payor’s receipt of the Holder’s written notice to convert (regardless if received during the
trading hours or after) (such conversion price, the “CO Conversion Price”). 

  
 2. 

 (c) Change of Control. Upon the consummation of a Change of Control (that is not
the result of a Qualified Financing) prior to December 31, 2018 in which the Payor’s stockholders receive cash consideration, the Holder shall receive an amount in cash equal to all unpaid interest that has accrued to date hereunder and
110% of the entire unpaid principal amount of this Note in full satisfaction of all obligations under the Note. Upon the consummation of a Change of Control (that is not the result of a Qualified Financing) prior to December 31, 2018 in which
the consideration received by the Payor’s stockholders consists of non-cash consideration, including, without limitation, securities, the Holder shall, subject to Section 2(d) hereof, have the Conversion Option set forth in
Section 2(b) hereof. A “Change of Control” means any transaction or series of related transactions that could result in any of the following: (i) the sale of all or substantially all of the assets of the
Payor to any person or related group of persons (other than the Holder or a person that directly or indirectly controls, is controlled by, or is under common control with, the Holder), (ii) the acquisition, directly or indirectly, by any person
or related group of persons (other than the Payor or the Holder or a person that directly or indirectly controls, is controlled by, or is under common control with, the Payor or the Holder) of beneficial ownership of securities possessing more than
fifty percent (50%) of the total combined voting power of the Payor’s outstanding securities pursuant to a tender or exchange offer made directly to the Payor’s stockholders, (iii) a merger or consolidation of the Payor, other
than for the purpose of re-domiciling the Payor, unless following such transaction or series of transactions, the holders of the Payor’s securities prior to the first such transaction continue to hold more than fifty percent (50% percent) of
the voting rights and equity interests in the surviving entity, (iv) a recapitalization, reorganization or other transaction involving the Payor that constitutes or results in a transfer of more than one-third of the equity interests in the
Payor, unless following such transaction or series of transactions, the holders of the Payor’s securities prior to the first such transaction continue to hold more than fifty percent (50%) of the voting rights and equity interests in the
surviving entity or acquirer or (v) the execution by the Payor or its controlling stockholders of an agreement providing for or reasonably likely to result in any of the foregoing events. 

(d) Stockholder Approval. Notwithstanding anything to the contrary contained herein or in the Note Purchase Agreement, in the
event that the rules of the ASX (or any other exchange on which the CDIs or Common Stock is then traded) require the Payor to obtain stockholder approval to issue CDIs pursuant to Section 2(a) or Section 2(b) or
Section 2(c) hereof, the Payor shall convene a meeting of stockholders to seek approval to issue those CDIs or Common Stock. If such approval is not obtained at such meeting, the Holder shall instead become entitled to receive an amount
in cash equal to all unpaid (and unconverted) interest that has accrued to date hereunder and 110% of the entire unpaid (and unconverted) principal amount of this Note in full satisfaction of all obligations under the Note, and such amounts shall be
due and payable upon the earlier of (i) the Maturity Date, or (ii) the date that is six months following the date of the stockholders’ meeting at which such approval is not obtained. For the avoidance of doubt, while the Payor is
listed on the ASX and the rules of the ASX require the Payor to obtain stockholder approval to issue CDIs, no conversion may occur under this Note, and no CDIs or Common Stock may be issued pursuant to Section 2(a) or
Section 2(b) or Section 2(c) hereof, unless and until the Payor has obtained stockholder approval pursuant to this Section 2(d). 

(e) Fractional Shares. No fractional shares of Payor’s capital stock will be issued upon conversion of this Note. In lieu of
any fractional share to which Holder would otherwise be entitled, Payor will pay to Holder in cash the amount of the unconverted principal and interest balance of this Note that would otherwise be converted into such fractional share. 

  
 3. 

 Upon conversion of this Note pursuant to Section 2, Holder shall surrender this Note, duly endorsed,
at the principal offices of Payor. At its expense, Payor will, as soon as practicable thereafter, issue and deliver to Holder, at Holder’s address set forth on the first page hereto or such other address requested by Holder, a certificate or
certificates or holding statement (as applicable) for the number of shares of Common Stock or CDIs to which Holder is entitled upon such conversion, together with any other securities and property to which Holder is entitled upon such conversion
under the terms of this Note, including a check payable to Holder for any cash amounts payable as a result of any fractional shares as described herein. 

(f) Holder Representations and Warranties; Transfer and Assignment. The representations and warranties and rights and obligations
of transfer and assignment of Holder that are set forth in Section 4 of the Purchase Agreement with respect to the shares of Common Stock or CDIs issuable to Holder are hereby made a part of this Note and incorporated herein by this reference.

 (g) Restriction on Transfer. Notwithstanding any other provision of this Note, the Purchase Agreement or the Security
Agreement, the Holder may not sell or transfer any shares of Common Stock or CDIs issued to the Holder pursuant to Section 2(a) or Section 2(b) or Section 2(c) hereof (“Restricted
Securities”), or grant, issue or transfer interests in, or options over, any Restricted Securities, at any time within 12 months after the issue of those Restricted Securities (“Restricted Period”) except as
permitted by section 708 or any other applicable section of the Corporations Act 2001 (Cth). Before commencement of the Restricted Period, to prevent any such restricted dealings in the Restricted Securities during the Restricted Period, the
Holder agrees to (i) the application of a holding lock to the Restricted Securities by the Payor’s securities registry for the Restricted Period, and (ii) enter into any other documents reasonably necessary to prevent any such
restricted dealings in the Restricted Securities during the Restricted Period. 
 3. DEFAULT;
REMEDIES 
 (a) The occurrence of any Event of Default described in Section 5.1 of the Purchase
Agreement shall be an Event of Default hereunder. 
 (b) Upon the occurrence and during the continuance of any Event of Default, all unpaid
principal on this Note, accrued and unpaid interest thereon and all other amounts owing hereunder shall, at the option of the Holder, and, upon the occurrence of any Event of Default pursuant to Sections 5.1(b), (c) or (d) of the Purchase
Agreement, automatically, be immediately due, payable and collectible by Holder pursuant to applicable law. Subject to Section 5(c) of the Security Agreement dated as of the date hereof between the Payor and the Holder (“Security
Agreement”), the Holder shall have all rights and may exercise all remedies available to it under law, successively or concurrently. 

(c) Upon the occurrence and during the continuance of any Event of Default, Payor shall pay, on demand, all reasonable attorneys’ fees and
court costs incurred by Holder in enforcing and collecting this Note. 

  
 4. 

 4. PREPAYMENT. Payor may not prepay this Note prior to the Maturity Date
without the consent of the Holder, except to the extent permitted pursuant to Section 2(c) and Section 2(d) hereof. 

5. NON-TRANSFERABLE. The Holder may not sell or transfer this Note, or grant, issue or transfer interests
in, or options over, this Note at any time within 12 months after the date hereof except as permitted by section 708 or any other applicable section of the Corporations Act 2001 (Cth). 

6. FUNDAMENTAL TRANSACTIONS; CORPORATE EVENTS. 

(a) Fundamental Transactions. If, at any time while this Note is outstanding, (i) the Payor effects any merger or consolidation of
the Payor with or into another person pursuant to which the Common Stock is effectively converted and exchanged, (ii) the Payor effects any sale of all or substantially all of its assets in one or a series of related transactions pursuant to
which the Common Stock is effectively converted and exchanged, (iii) any tender offer or exchange offer (whether by the Payor or another person) is completed pursuant to which at least a majority of the outstanding Common Stock is tendered and
exchanged for other securities, cash or property or (iv) the Payor effects any reclassification of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other
securities, cash or property (other than as a result of a subdivision or combination of shares of Common Stock covered by Section 5(a) above) (in any such case, a “Fundamental Transaction”), then
prior to any subsequent conversion of this Note, and subject to the provisions of Section 2(c) hereof, the Holder shall be entitled to require the surviving entity to issue to the Investor an instrument identical to this Note (with an
appropriate adjustment to the conversion price(s)) such that the Holder may receive stock (or a beneficial interest in stock) of the surviving company’s stock. Subject to the provisions of Section 2(c) hereof, the terms of any
agreement pursuant to which a Fundamental Transaction is effected shall include terms requiring any such successor or surviving entity to comply with the provisions of this paragraph (c) and insuring that this Note (or any such replacement
security) will be similarly adjusted upon any subsequent transaction analogous to a Fundamental Transaction. 
 (b) Notice of
Corporate Events. If the Payor (i) declares a dividend or any other distribution of cash, securities or other property in respect of its Common Stock, including without limitation any granting of rights or warrants to subscribe for or
purchase any shares of the Payor or any subsidiary, (ii) authorizes and publicly approves, or enters into any agreement contemplating or solicits stockholder approval for any Fundamental Transaction or (iii) publicly authorizes the
voluntary dissolution, liquidation or winding up of the affairs of the Payor, then the Payor shall deliver to the Holder a notice describing the material terms and conditions of such transaction, at least ten (10) business days prior to the
applicable record or effective date on which a person would need to hold Common Stock or CDIs in order to participate in or vote with respect to such transaction, and the Payor will take all steps reasonably necessary in order to insure that the
Holder is given the practical opportunity to convert this Note prior to such time so as to participate in or vote with respect to such transaction; provided, however, that the failure to deliver such notice or any defect therein shall not affect the
validity of the corporate action required to be described in such notice. 

  
 5. 

 (c) Subsequent Equity Sales. Notwithstanding any provision of this Note to the contrary,
in the event that the Company issues any CDIs or Common Stock or any security that is exchangeable or convertible into CDIs or Common Stock (“Additional Securities”) at a price (the “AD Conversion
Price”) per CDI (or equivalent number of shares of Common Stock) that is less than the Existing Conversion Price (or the equivalent for shares of Common Stock) in an equity financing other than a Qualified Financing, then the CO
Conversion Price may be reduced as provided in this Section 6(c). 
 (i) For a period of time (the “Specified Expiration
Period”) commencing on the date of the closing of the issuance of the Additional Securities and expiring on the date that is thirty (30) days after the date that Payor delivers a notice (such notice being an “Additional
Securities Notice”) describing the material terms and conditions of such transaction (but in any event, not less than 30 days after the issuance of the Additional Securities), the CO Conversion Price shall be reduced so that during such
period it will not be more than an amount (the “CO Maximum Amount”) equal to the following: Existing Conversion Price * (A+B) / (A+C). 

(ii) For purposes of this Note, the following terms shall have the definitions ascribed thereto in this subsection: 

(1) “A” shall mean the number of CDIs (plus the number of CDIs representing the issued and outstanding shares of
Common Stock (with each CDI representing 1/50th of a share of Common Stock)), deemed to be outstanding immediately prior to the issuance of the Additional Securities (including all shares of
outstanding Common Stock, all shares of outstanding preferred stock on an as-converted basis, and all outstanding options, warrants or similar instruments on an as-exercised or converted basis, including the CDIs or shares of Common Stock underlying
this Note). 
 (2) “B” shall mean the aggregate cash consideration received by Payor at the closing of the issuance
of Additional Securities (together with such additional cash amounts payable with respect to any exercise or conversion of Additional Securities for shares of Common Stock or CDIs if such amount is then less than the Existing Conversion Price)
divided by the Existing Conversion Price. 
 (3) “C” shall mean the number of CDIs underlying the Additional
Securities in such issuance, including for this purpose the number CDIs representing the number of shares of Common Stock underlying such Additional Securities (with each CDI representing 1/50th
of a share of Common Stock). 
 (4) “Existing Conversion Price” shall mean the CO Conversion Price in effect
immediately prior to the issuance of the Additional Securities. 
 (5) “Pre Sale Pro Rata Percentage” shall mean a
percentage equal to (x) the number of CDIs that are owned by the Holder (excluding the CDIs or shares of Common Stock underlying this Note) immediately prior to the issuance of the Additional Securities (the “Holder’s Existing
Ownership”); (y) divided by A, which for purposes hereof excludes securities issuable upon conversion of the Note. 

  
 6. 

 (6) “Post Sale CDIs” shall mean the number of CDIs outstanding
determined on a fully diluted basis (including the CDIs or shares of Common Stock underlying this Note that become exercisable pursuant to clause (iv) below) and including for this purpose the number CDIs representing the number of shares of
Common Stock underlying such Additional Securities (with each CDI representing 1/50th of a share of Common Stock). 

(iii) The Payor agrees that it will provide each Additional Securities Notice to the Holder promptly after the issuance of Additional
Securities, including a calculation in reasonable detail of the CO Maximum Amount. 
 (iv) The number of CDIs that the Holder may elect to
have issued in accordance with Section 2(b) of this Note at the CO Conversion Price as reduced by this Section 6(c) shall not be more than the amount that, when combined with the Holder’s Existing Ownership, would result
in the Holder’s ownership percentage of the Post Sale CDIs exceeding its Pre Sale Pro Rata Percentage. 
 7. WAIVER;
PAYMENT OF FEES AND EXPENSES. Payor waives presentment and demand for payment, notice of dishonor, protest and notice of protest of this Note, and shall pay all costs of
collection when incurred, including, without limitation, reasonable attorneys’ fees, costs and other expenses. The right to plead any and all statutes of limitations as a defense to any demands hereunder is hereby waived to the full extent
permitted by law. No delay by Holder shall constitute a waiver, election or acquiescence by it. 
 8. CUMULATIVE
REMEDIES. Holder’s rights and remedies under this Note, the Purchase Agreement and the Security Agreement shall be cumulative. No exercise by Holder of one right or remedy shall be deemed an election, and no waiver by Holder
of any Event of Default shall be deemed a continuing waiver of such Event of Default or the waiver of any other Event of Default. 

9. OTHER INDEBTEDNESS. Without the prior written consent of the Holder, no Indebtedness of the Payor
shall be senior in any respect to the Indebtedness represented by this Note. “Indebtedness” means obligations with respect to principal, accrued and unpaid interest, penalties, premiums and any other fees,
expenses and breakage costs on and other payment obligations arising under any (a) indebtedness for borrowed money, (b) indebtedness issued in exchange for or in substitution for borrowed money, (c) obligations evidenced by any note,
bond, debenture, guarantee or other debt security or similar instrument or contract for borrowed money and (d) guarantees of the types of obligations described in paragraphs (a) though (c) above which are presently due, or which are
or may become due in the future. 
 10. MISCELLANEOUS 

(a) Governing Law. The terms of this Note shall be construed in accordance with the laws of the State of New York, as applied to
contracts entered into by New York residents within the State of New York, and to be performed entirely within the State of New York. 

  
 7. 

 (b) Exclusive Jurisdiction. All actions and proceedings arising out of, or relating to,
this Agreement shall be heard and determined in any state or federal court sitting in the State of New York, County of New York. The undersigned, by execution and delivery of this Agreement, expressly and irrevocably consent and submit to the
personal jurisdiction of any of such courts in any such action or proceeding; and (ii) waive any claim or defense in any such action or proceeding based on any alleged lack of personal jurisdiction, improper venue or forum non conveniens or any
similar basis. 
 (c) Successors and Assigns; Assignment. The terms and conditions of this Note shall inure to the benefit of and be
binding upon the respective successors and assigns of the parties. The Payor may not assign this Note or delegate any of its obligations hereunder without the written consent of the Holder. Subject to Section 5 hereof, the Holder may
assign this Note and its rights hereunder without the consent of the Payor, subject to compliance with Section 4 of the Purchase Agreement. 

(d) Titles and Subtitles. The titles and subtitles used in this Note are used for convenience only and are not to be considered in
construing or interpreting the Note. 
 (e) Notices. All notices required or permitted hereunder by the Holder of this Note to
Payor shall be in writing and shall be deemed effectively given: (a) upon personal delivery to the principal offices of the Payor, to the attention of the Chief Executive Officer or the Chief Financial Officer, (b) five (5) days after
having been sent by registered or certified mail, return receipt requested, postage prepaid, or (c) one (1) day after deposit with a nationally recognized overnight courier, specifying next day delivery. Any refusal of delivery of a notice
by Payor shall be deemed to have been delivered. 
 (f) Amendment; Modification; Waiver. No term of this Note may be amended,
modified or waived without the written consent of the Payor and Holder. Further, while the terms of any waiver granted by ASX in respect of this Note, the Purchase Agreement or the Security Agreement remains applicable to the Payor, any variation to
the terms of this Note which is not a minor change or which is inconsistent with the terms of any relevant waiver granted by ASX to the Payor must be approved by the Payor’s ordinary securityholders. 

(g) Counterparts. This Note may be executed in two or more counterparts, each of which shall be deemed and original, but all of which
together shall constitute one and the same instrument. 
 [Signature page follows] 

  
 8. 

 IN WITNESS WHEREOF, the parties have executed
this CONVERTIBLE PROMISSORY NOTE as of the date first written above. 
  

			
	GI DYNAMICS, INC.
		
	By:	 	 /s/ Scott Schorer

	Name:	 	Scott Schorer
	Title:	 	President & CEO

 AGREED TO AND ACCEPTED: 

CRYSTAL AMBER FUND LIMITED 

 

			
	By:	 	 /s/ Kevin Smith

	Name:	 	Kevin Smith
	Title:	 	Alternative Director
		 	Crystal Amber Asset Management (Guernsey)
		 	Limited as Investment Manager of Crystal Amber Fund LimitedExhibit
10.1

 

June
15, 2017

 

Dear
Seph,

 

As
an executive employee of TearLab Research, Inc., (the “Company”), you are aware of the potential for a future sale
of the Company. For the benefit of employees and Company shareholders, it may be helpful in securing favorable sales terms to
reduce the severance obligations of the Company under certain existing executive contracts, including your contract dated September
24, 2013. Accordingly, the Company is offering you the voluntary choice to enter into an amendment to your employment contract
dated June 15, 2017

 

Should
you choose to agree to the amendment, the Exhibit B (ORIGINAL) to your employment contract will be replaced with the attached
Exhibit B AMENDED. Please carefully read Exhibit B AMENDED in its entirety. Should you agree to the amendment, the terms and obligations
of your employment set forth in your original employment contract that were not contained in Exhibit B are not changed by the
amendment. You should be aware that your employment with the Company will remain at-will. As a result, you are free to resign
at any time, for any reason or for no reason. Similarly, the Company is free to conclude its employment relationship with you
at any time, with or without cause, and with or without notice. We request that, in the event of resignation, you give the Company
at least 30 days’ notice. Notwithstanding the foregoing, you may be entitled to certain severance benefits upon a qualifying
termination of your employment, as provided in Exhibit B AMENDED.

 

Should
you agree to the amendment, this letter and the corresponding Exhibit B AMENDED, along with the provisions of your original employment
contract that are not impacted by the amendment, shall constitute your entire employment contract with the Company. The provisions
of your employment contract, including, but not limited to, its at-will employment provisions, may not be modified or amended
except by a written agreement signed by the Director of Human Resources of the Company and you.

 

Sincerely,

 

	 	/s/
    Lynne     Pratt
	 	Lynne Pratt
	 	Director Human Resources

 

I
FURTHER ACKNOWLEDGE THAT I HAVE ENTERED INTO THIS AGREEMENT VOLUNTARILY AND HAVE NOT BEEN FORCED OR COERCED INTO DOING SO.

 

Agreed
to and accepted:

 

	Signature:	/s/
    Seph Jensen	 
	 	 	 
	Printed Name:	Seph Jensen	 
	 	 	 
	Date:	June 15, 2017	 

 

    	 

    	 

    

 

Exhibit
B AMENDED

 

Termination
by Executive

 

You
may terminate your employment with the Company at any time by providing the Company with at least thirty (30) days of notice in
writing. During the resignation notice period, you will be required to perform the duties set forth in this letter. Notwithstanding,
upon receipt of your resignation (other than with respect to a resignation within twelve (12) months of the occurrence of a Change
in Control as defined below), the Company may, in its sole and absolute discretion, terminate your employment before the date
the resignation was to be effective, and the Company will, in full satisfaction of its obligations to you: (a) continue to pay
your base salary in accordance with the Company’s payroll practices until the date the resignation was to be effective up
to a maximum of three (3) months, subject to the terms and conditions of Exhibit A of your employment contract; (b) reimburse
the outstanding expenses properly incurred by you until the date your employment ceases; and (c) pay you a pro-rated bonus in
a lump sum calculated as at the date your employment ceases as soon as administratively practicable after the termination by the
Company, but in no event will any such pro-rated bonus be paid after the later of: (i) the fifteenth (15th) day of the third (3rd)
month after the end of the Company’s fiscal year in which such bonus is earned, or (ii) March 15 following the calendar
year in which such bonus is earned.

 

Termination
by Company for Cause, Death or Disability

 

The
Company may terminate your employment at any time with Cause and without prior notice or any further obligations by the Company.
On the termination of your employment for cause or on your death or disability, the Company will, in full satisfaction of its
obligations to you: (a) pay your base salary and vacation pay accrued until the date your employment ceases; and (b) reimburse
the outstanding expenses properly incurred by you until the date your employment ceases. You will not be entitled to any other
payments (including severance or bonus) should you be terminated for Cause.

 

For
the purposes of this Exhibit, a termination for “Cause” occurs in the event you are terminated because:

 

	 	(1)	You breach your
    employment contract;
	 	 	 
	 	(2)	You commit an act
    of dishonesty, fraud, or misrepresentation, or other acts of moral turpitude, including acts that jeopardize the Company’s
    reputation or relationship with its employees, shareholders, clients, vendors or affiliates;
	 	 	 
	 	(3)	You violate your
    duty of loyalty to the Company;
	 	 	 
	 	(4)	You misappropriate
    or fail to protect the Company’s proprietary and or confidential information, or that of the Company’s clients,
    partners, or affiliates;
	 	 	 
	 	(5)	You are convicted
    of a felony;
	 	 	 
	 	(6)	You die or become
    disabled in a manner that prevents you from being able to perform the essential functions of your job with reasonable accommodation.

 

    	 

    	 

    

 

If
your termination occurs due to your death or disability, you will be entitled to a pro-rated bonus calculated as at the date your
employment ceases, which shall be paid in a lump sum as soon as administratively practicable after your death or disability, but
in no event will any such pro-rated bonus be paid after the later of: (i) the fifteenth (15th) day of the third (3rd) month after
the end of the Company’s fiscal year in which such bonus is earned, or (ii) March 15 following the calendar year in which
such bonus is earned.

 

Termination
by Company without Cause or Resignation on Change of Control

 

The
Company may terminate your employment at any time without cause on providing written notice, and if it does terminate you without
cause the Company will pay you the severance benefits outlined in subdivision (a) and (b) below. Also, you may resign due to a
Material Adverse Change in your terms and conditions of employment within twelve (12) months following the occurrence of a Change
in Control as defined below, on providing written notice within thirty (30) days of the events constituting a Material Adverse
Change and a cure period of not less than thirty (30) days for the Company to cure any such Material Adverse Change; provided,
however, that such resignation must occur within thirty (30) days following the end of such cure period. If the Company terminates
your employment without cause or if you resign within twelve (12) months of a Change in Control due to a Material Adverse Change
and after providing the required notice and cure period, then subject to the terms and conditions of Exhibit C, the Company
will, in full satisfaction of its obligations to you:

 

(a)
Pay a lump sum amount equal to: (i) one (1) times your annual base salary in effect at the time of the termination; plus (ii)
one (1) times the average of the bonus paid to you in the two (2) years preceding the year of termination; and

 

(b)
Reimburse you for the cost of group health benefit plan premiums for up to twelve 12) months from the date your employment ceases.
Such reimbursements shall be made concurrent with any obligation owed to you by the Company under the U.S. federal COBRA law to
the extent applicable. Notwithstanding the foregoing, if the Company determines in its sole discretion that it cannot provide
the foregoing COBRA premium reimbursements without potentially violating, or being subject to an excise tax under, applicable
law (including, without limitation, Section 2716 of the Public Health Service Act), the Company will in lieu thereof provide to
you a taxable monthly payment, payable on the last day of a given month (except as provided by the following sentence), in an
amount equal to the monthly COBRA premium that you would be required to pay to continue the group health coverage for you and/or
your eligible dependents in effect on the termination of employment date (which amount will be based on the premium for the first
month of COBRA coverage), which payments will be made regardless of whether you and/or your eligible dependents elect COBRA continuation
coverage and will commence on the month following your termination of employment and will end on the earlier of (x) the date upon
which you obtain other employment or (y) the date the Company has paid an amount equal to twelve (12) payments. Any such taxable
monthly payments that otherwise would have been paid to you within the sixty (60) days following your termination date instead
will be paid on the sixty-first (61st) day following your termination of employment, with any remaining payments paid
as provided in the prior sentence (subject to any delay as may be required by Appendix C). For the avoidance of doubt, the taxable
payments in lieu of COBRA reimbursements may be used for any purpose, including, but not limited to continuation coverage under
COBRA, and will be subject to all applicable tax withholdings.

 

    	 

    	 

    

 

As
set forth in Exhibit C to your employment contract, your receipt of any severance benefits under this Agreement or otherwise is
expressly conditioned upon your execution of a complete and general release of all claims that may be released as a mater of law.

 

Change
of Control and “Material Adverse Change”

 

“Change
of Control” means:

 

(a)
any transaction or series of transactions, whether by way of consolidation, amalgamation or merger of the Company, with or into
any other person, other than an affiliate of the Company as defined in the Ontario Business Corporations Act as amended (an “Affiliate”);

 

(b)
any transfer, conveyance, sale, lease, exchange or otherwise of all or substantially all of the assets of the Company, to any
other person, other than an Affiliate;

 

(c)
more than fifty percent (50%) of the directors of the Company in office (i) were not directors of the Company on the same day
in the immediately preceding calendar year and (ii) were not proposed by the directors of the Company existing prior to their
appointment or election;

 

(d)
the lawful acquisition, directly or indirectly and by any means whatsoever, by any person, or by a group of persons acting jointly
or in concert, of that number of voting shares of the Company, which is forty percent (40%) or more of the total voting shares
issued and outstanding immediately after such acquisition, unless another person or group of persons has previously lawfully acquired
and continues to hold a number of voting units which represents a greater percentage than the first-mentioned person or group
of persons; or

 

(e)
the directors of the Company by resolution deem that a Change in Control has occurred or is about to occur.

 

Consequences
of Termination

 

Upon
termination of your employment for any reason, the Company will pay your base salary and vacation pay accrued until the date your
employment ceases and reimburse your expenses properly incurred until the date your employment ceases. The termination of your
employment terminates any officer positions you may hold pursuant to this letter, and you agree to sign any documentation necessary
to give effect to this Exhibit B, or to give effect to any pro forma resolutions of the Company in respect of the period
prior to termination of your employment.

 

Bonus
Upon Change of Control of the Company

 

If
you are employed on the day a Change of Control of the Company occurs, then the Company shall pay you a bonus of Twenty Thousand
Dollars ($20,000.00) subject to customary payroll taxes and deductions, within 30 days of the finalization of the Change of Control
of the Company.

 

    	 

    	 

    

 

Exhibit
C

 

To
the extent any severance benefits will be made under this letter, they will be delayed as necessary pursuant to (A) the Release
requirement described below and (B) the provisions of Section 409A of the U.S. Internal Revenue Code of 1986, as amended (the
“Code”), and the final regulations and any guidance promulgated thereunder and any applicable state law equivalents
(“Section 409A”), each as outlined below.

 

Release
Requirement 

 

The
receipt of any severance pay and benefits under this letter is subject to you signing and not revoking a standard release of claims
with the Company (the “Release”) and provided that the Release becomes effective and irrevocable within sixty (60)
days following your termination of employment (such deadline, the “Release Deadline”). If the Release does not become
effective and irrevocable by the Release Deadline, you will forfeit any rights to severance benefits under this letter.

 

Severance
pay and benefits under this letter will commence or be paid, as applicable, on the sixtieth (60th) day following the date of your
termination of employment, or, if later, such time as required by the paragraphs below. Except as required by the paragraphs below,
any lump sum or installment payments that would have been made to you during the sixty (60) day period immediately following your
termination of employment but for the preceding sentence will be paid on the first payroll period following the sixtieth (60th)
day following your termination of employment and the remaining payments will be made as provided in this letter.

 

Section
409A

 

Notwithstanding
anything to the contrary in this letter, no severance benefits to be paid or provided to you, if any, pursuant to this letter
or otherwise that, when considered together with any other severance payments or separation benefits, are considered deferred
compensation under Section 409A (together, the “Deferred Payments”) will be paid or otherwise provided until you have
a “separation from service” within the meaning of Section 409A. Similarly, no severance payable to you, if any, pursuant
to this letter that otherwise would be exempt from Section 409A pursuant to U.S. Treasury Regulation Section 1.409A-1(b)(9) will
be payable until you have a “separation from service” within the meaning of Section 409A.

 

Notwithstanding
anything to the contrary in this letter or otherwise, if you are a “specified employee” within the meaning of Section
409A at the time of your termination (other than due to death), then the Deferred Payments, if any, that are payable within the
first six (6) months following your separation from service, will become payable on the first payroll date that occurs on or after
the date six (6) months and one (1) day following the date of your separation from service. All subsequent Deferred Payments,
if any, will be payable in accordance with the payment schedule applicable to each payment or benefit. Notwithstanding anything
herein to the contrary, if you die following your separation from service, but prior to the six (6) month anniversary of your
separation from service, then any payments delayed in accordance with this paragraph will be payable in a lump sum as soon as
administratively practicable after the date of your death and all other Deferred Payments will be payable in accordance with the
payment schedule applicable to each payment or benefit. Each payment, installment and benefit payable under this letter is intended
to constitute a separate payment for purposes of U.S. Treasury Regulation Section 1.409A-2(b)(2).

 

    	 

    	 

    

 

Any
amount paid under this letter that qualifies as a payment made as a result of an involuntary separation from service pursuant
to U.S. Treasury Regulation Section 1.409A-1(b)(9)(iii) that does not exceed the Section 409A Limit will not constitute a Deferred
Payment.

 

For
purposes of this letter, “Section 409A Limit” will mean one (1) times the lesser of: (i) your annualized compensation
based upon the annual rate of pay paid to you during your taxable year preceding the taxable year of your separation from service
as determined under U.S. Treasury Regulation Section 1.409A-1(b)(9)(iii)(A)(1) and any Internal Revenue Service guidance issued
with respect thereto; or (ii) the maximum amount that may be taken into account under a qualified plan pursuant to Section 401(a)(17)
of the Code for the year in which your separation from service occurs.

 

All
reimbursements and in-kind benefits under this letter that provide for a “deferral of compensation” within the meaning
of Section 409A (i) shall be made no later than the last day of the calendar year that immediately follows the calendar year in
which Employee incurred the expense; (ii) not be subject to liquidation or exchange for another benefit or payment; (iii) provided
to Employee in any calendar year shall not affect the expenses eligible for reimbursement or in-kind benefits to be provided in
any other calendar year; and (iv) except as specifically provided herein, any such reimbursements or in-kind benefits must be
for expenses incurred and benefits provided on or prior to termination (except that a plan providing medical or health benefits
may, to the extent permitted by Section 409A impose a generally applicable limit that may be reimbursed or paid). To the extent
applicable, reimbursements that provide for a “deferral of compensation” within the meaning of Section 409A are intended
to constitute compliant deferred compensation payable on a specified date or fixed schedule in accordance with the requirements
set forth under U.S. Treasury Regulation Section 1.409A-3(i)(1)(iv).

 

The
foregoing provisions are intended to be exempt from or comply with the requirements of Section 409A so that none of the severance
payments and benefits to be provided hereunder will be subject to the additional tax imposed under Section 409A, and any ambiguities
or ambiguous terms herein will be interpreted to be exempt or so comply. You and the Company agree to work together in good faith
to consider amendments to this letter agreement and to take such reasonable actions which are necessary, appropriate or desirable
to avoid imposition of any additional tax or income recognition prior to actual payment to you under Section 409A.

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