Document:

Amendment No. 1, effective as of February 3, 2010

 Exhibit 10.1 
 AMENDMENT NO. 1 
 TO 
 LICENSE AGREEMENT 
 BETWEEN 
 MAYO FOUNDATION FOR MEDICAL EDUCATION AND RESEARCH 
 AND 
 ENTEROMEDICS, INC. 
 This Amendment No. 1 (the “Amendment No. 1”) is
entered into as of February 3rd, 2010 (the
“Execution Date”) by and between Mayo Foundation for Medical Education and Research, a Minnesota charitable corporation, located at 200 First Street SW, Rochester, Minnesota 55905-0001 (“MAYO”), and EnteroMedics, Inc., a private
for-profit corporation located at 2800 Patton Road, Roseville, Minnesota 55113 (“COMPANY”) and amends that certain License Agreement by and between MAYO and COMPANY with an Effective Date as of February 3, 2005 (the “License
Agreement”) with the effect of amending, restating and replacing the following provisions in their entirety with the text set forth below: 
 1.05 “Field”: shall mean the treatment of obesity using devices, including devices that use electrical signaling to block the vagal nerve, and the treatment of gastrointestinal disorders other than obesity (for example,
pancreatitis, irritable bowel syndrome, and inflammatory bowel disease) solely using devices that use electrical signaling to block the vagal nerve. 
 1.07 “Future Patents”: shall mean all patent applications assigned exclusively to MAYO filed on inventions arising out of Product Development during their commitment to provide Know-How under Section 2.02 by the
Obesity Device Group, Vagal Blocking Device Group, and Phase II Mayo Group including any continuation, division, substitution, reissue, or reexamination and any patents issuing from any of the foregoing and any foreign counterpart of any of the
foregoing. Future Patents shall not be interpreted to include Jointly Owned Patents. 
 1.08 “Know–How”: shall mean
Obesity Device Group Know-How, Vagal Blocking Device Group Know-How and Phase II Mayo Group Know-How. 
 1.25 “Phase II Mayo
Group”: The Phase II Mayo Group (2010-050) includes the following members: 
 Michael Camilleri, M.D.;

 William Sandborn, M.D.; 
 Michael Sarr, M.D.; and 
 Michael Kendrick, M.D. 
 1.26 “Phase II Mayo Group Know-How”: shall mean
information, whether patentable or not, developed for and provided to COMPANY by the Phase II Mayo Group through Product Development or Product Testing during the extended period provided for under this Amendment No. 1. 

 2.02 MAYO KNOW-HOW COMMITMENT. For a period of five (5) years from the Effective Date for the
Obesity Device Group and the Vagal Blocking Device Group and for a period of two (2) years from the Execution Date for the Phase II Mayo Group, unless terminated earlier by either COMPANY or MAYO as provided for in this Agreement, MAYO commits
to the following: 
  

	(a)	Subject to existing obligations to third parties, MAYO policies and for so long as its members are employees of MAYO, the Obesity Device Group shall confer with the
COMPANY in the Field as follows: (i) exclusively for Product Development for devices to treat obesity and nonexclusively for Product Testing; and (ii) non-exclusively for Product Development and Product Testing with COMPANY for Vagal
Devices to treat gastrointestinal disorders other than obesity (for example, pancreatitis and irritable bowel syndrome) and excluding obesity. 

  

	(b)	Subject to existing obligations to third parties, MAYO policies and for so long as its members are employees of MAYO, the Vagal Blocking Device Group shall confer
exclusively with the COMPANY for Product Development and nonexclusively for Product Testing, all for Vagal Devices. 

  

	(c)	Subject to existing obligations to third parties, MAYO policies and for so long as its members are employees of MAYO, the Phase II Mayo Group shall confer with the
COMPANY in the Field as follows: (i) exclusively for Product Development for devices to treat obesity and nonexclusively for Product Testing; and (ii) non-exclusively for Product Development and Product Testing with COMPANY for Vagal
Devices to treat gastrointestinal disorders other than obesity. 

  

	(d)	Subject to existing obligations to third parties, MAYO hereby grants COMPANY a royalty-bearing, worldwide license to use the Know-How in the Field to develop, make, use
and sell COMPANY Products as provided below: 

 1. With respect to Obesity Device Group Know-How for: 

 

	 	(a)	Product Development, such license shall be exclusive for obesity devices and non-exclusive for Vagal Devices for treating conditions other than obesity; and

  

	 	(b)	Product Testing, such license shall be non-exclusive. 

 2. With respect to the Vagal Blocking Device Group Know-How for: 
  

	 	(a)	Product Development, such license shall be exclusive; and 

  

	 	(b)	Product Testing, such license shall be non-exclusive. 

 3. With respect to the Phase II Mayo Group Know-How for: 
  

	 	(a)	Product Development, such license shall be exclusive for devices to treat obesity and nonexclusive for Vagal Devices for treating other conditions other than obesity;
and 

  

	 	(b)	Product Testing, such license shall be non-exclusive. 

 COMPANY shall have the right to sublicense such know-how, but not any obligation of MAYO to confer, on the same terms and conditions as set forth above with respect to Licensed Patents. 
  

	(e)	MAYO represents and warrants that to the best of internal patent counsel’s knowledge as of the Effective Date and without a duty to inquire, MAYO is not aware of
any existing third party obligations that will materially interfere with the Obesity Device Group, the Vagal Blocking Device Group or the Phase II Mayo Group from conferring with COMPANY under Section 2.02, in accordance the terms and
conditions of this Agreement. 

 Each member of the Obesity Device Group, the Vagal Blocking Device Group and the
Phase II Mayo Group shall use reasonable efforts to attend meetings, achieve specific Product Development objectives and milestones, and conduct Product Testing, contributing on average among the individuals of the groups between 3-6 person hours
per month as requested by COMPANY. Any time credited under this Section shall not also be subject to compensation under any other agreement including any agreement referenced under Section 3.14 of this Agreement. 
 3.06 KNOW-HOW RETAINER FEES: The COMPANY shall pay MAYO a minimum annual retainer fee of One Hundred and Seventy-Five Thousand Dollars (US$175,000)
for the Obesity Device Group as partial compensation for its Know-How as specified in the payment schedule below. The COMPANY shall also pay MAYO an additional minimum annual retainer fee of Seventy-Five Thousand Dollars (US$75,000) for the Vagal
Blocking Device Group as partial compensation for its Know-How as specified in the payment schedule below. Beginning in 2010, the COMPANY shall pay MAYO a minimum annual retainer fee of One Hundred Thousand Dollars (US$100,000) for the Phase II Mayo
Group as partial compensation for its Know-How as specified in the payment schedule below. The following payments shall be made within ten (10) days of the dates listed: 
  

			
	 Date
	  	 Retainer fee payment due MAYO

	 a) The Effective Date
	  	One Hundred Twenty-Five Thousand Dollars (US$125,000);
	 b) November 1, 2005
	  	One Hundred Twenty-Five Thousand Dollars (US$125,000);
	 c) January 1, 2006
	  	One Hundred Twenty-Five Thousand Dollars (US$125,000);
	 d) July 1, 2006
	  	One Hundred Twenty-Five Thousand Dollars (US$125,000);
	 f) January 1, 2007
	  	Two Hundred Fifty Thousand Dollars (US$250,000);
	 g) January 1, 2008
	  	Two Hundred Fifty Thousand Dollars (US$250,000);
	 h) January 1, 2009
	  	Two Hundred Fifty Thousand Dollars (US$250,000);
	 i) February 15, 2010
	  	One Hundred Thousand Dollars (US$100,000); and
	 j) January 1, 2011
	  	One Hundred Thousand Dollars (US$100,000).

 3.13 DISTRIBUTION OF CONSIDERATION WITHIN MAYO. MAYO may distribute funds received by reason of this
Article 3 to individuals within the Obesity Device Group, Vagal Blocking Device Group, or Phase II Mayo Group as MAYO, in its sole discretion, deems advisable and will hold the COMPANY harmless from any claims by any employee member of the
Obesity Device Group, Vagal Blocking Device Group, or Phase II Mayo Group that any such distribution or related allocation is inadequate or unreasonable. 
 3.15 Phase II Mayo GROUP MILESTONE PAYMENT. COMPANY shall pay MAYO Two Hundred and Fifty Thousand Dollars (US$250,000) within twelve months after the first commercial sale of the first Company
Product after receipt of FDA approval for such Company Product for providing Phase II Mayo Group Know-How; provided, that if MAYO exercises its right to terminate the Phase II Mayo Group’s obligations pursuant to Section 6.04(b),
such payment shall be reduced to equal the product of (i) the number of months that have elapsed since the Execution Date of this Amendment No. 1 through the effective date of such termination, divided by twenty-four (24),
multiplied by (ii) $250,000 (in which case, it is agreed that such payment shall not be due until twelve months after the first commercial sale of the first Company Product after receipt of FDA approval for such Company Product). It is a
material breach of this agreement if such payment is not received within ninety (90) days of achieving the milestone. 
 6.04 EARLY
TERMINATION OF CONFERENCE RIGHTS. 
  

	(a)	Starting three (3) years after the Effective Date of this Agreement, MAYO, at its discretion and without a showing of cause, may terminate the Obesity Device
Group’s and Vagal Device Group’s obligations to confer under Sections 2.02(a) and 2.02(b) by giving notice of such election to the COMPANY. If MAYO so terminates, then, upon such notice: 

  

	 	1.	all licenses granted to the COMPANY for the Licensed Patents, the Jointly Owned Patents and the Know-How shall be fully paid-up and royalty-free;

  

	 	2.	any Obesity Group Milestone Payment obligations under Section 3.05 that have not accrued shall expire; 

  

	 	3.	any Know-How Retainer Fees obligations under Section 3.06 that have not accrued shall expire; 

  

	 	4.	any Know-How Milestone Payments obligations under Section 3.07 that have not accrued shall expire; and 

	 	5.	the grant of licenses from MAYO to the COMPANY shall become non-exclusive. 

  

	(b)	Starting one (1) year after the Execution Date of this Amendment No. 1, MAYO, at its discretion and without a showing of cause, may terminate the Phase II
Mayo Group’s obligations to confer under Section 2.02(c) by giving notice of such election to the COMPANY. If MAYO so terminates, then, upon such notice: 

  

	 	1.	all licenses granted to the COMPANY for the Phase II Mayo Group’s Future Patents and Phase II Mayo Group Know-How arising and/or provided during the extended
period provided for under this Amendment No. 1 shall be fully paid-up and royalty-free; 

  

	 	2.	any Phase II Mayo Group obligations under Section 3.15 that have not accrued shall expire; 

  

	 	3.	any Know-How Retainer Fees obligations under Section 3.06(i) and (j) that have not accrued shall expire; and 

  

	 	4.	the grant of Phase II Mayo Groups licenses from MAYO to the COMPANY shall remain in effect. 

 9.02 NO ASSIGNMENT. Neither party may assign its rights hereunder to any third party without the prior written consent of the other party; provided, that a party may assign its rights
without the prior written consent of the other party to any affiliate or other entity that controls, is controlled by or is under common control with such party. Notwithstanding the foregoing, COMPANY is free to transfer or assign this Agreement (or
any rights granted under this Agreement) with the sale or transfer of assets of that portion of its business to which this Agreement pertains. Nothing herein shall give COMPANY the right to assign the obligations to confer in Sections 2.02(a),
2.02(b), or 2.02(c). COMPANY will promptly notify MAYO of any such assignment. Any purported assignment in violation of this clause is void. Any assignment shall not in any manner relieve the assignor from liability for the performance of this
Agreement by its assignee. Upon the occurrence of an assignment pursuant to this Section 9.02, MAYO may, in its sole discretion, provide notice that it desires to continue to confer per the terms of this Agreement. If MAYO fails to provide such
notice within sixty (60) days of notification of assignment in writing by COMPANY, (1) no Know-How Retainer Fees under Section 3.06 shall thereafter accrue and be payable; and (2) no Know-How Milestone Payments under
Section 3.15 shall thereafter accrue and be payable. 
 Except as expressly amended by this Amendment No. 1, all terms and conditions
of the License Agreement shall remain in full force and effect. 
  

									
	MAYO FOUNDATION FOR MEDICAL EDUCATION AND RESEARCH	 		 	ENTEROMEDICS, INC.
					
	By:	 	 /s/ Steven P. Van Nurden
	 		 	By:	 	 /s/ Mark B. Knudson

	Name: Steven P. Van Nurden	 		 	Name: Mark B. Knudson
	Title: Assistant Treasurer	 		 	Title: President and CEOEmployment Agreement by and between David Bar-Or and DMI Life Sciences, Inc.

 Exhibit 10.1 
 EMPLOYMENT AGREEMENT 
 This Employment Agreement (the
“Agreement”), is effective as of April 17, 2009 (the “Effective Date”), between DMI LIFE SCIENCES, INC., a Delaware corporation (with its successors and assigns, referred to as the “Company”), and DAVID
BAR-OR, M.D. (“Employee”). 
 WHEREAS, the Company and DMI Biosciences, Inc., a Colorado corporation (“DMIB”) are
party to an Asset Purchase Agreement dated as of April 16, 2009 (the “APA”) pursuant to which the Company will purchase certain assets of DMIB; 
 WHEREAS, the Company and Employee mutually desire to have Employee employed by the Company upon the terms and conditions set forth herein; 
 WHEREAS, the execution and delivery of this Agreement is a condition to the closing of the transactions contemplated by the APA; 
 NOW, THEREFORE, in consideration of the foregoing premises and of the mutual agreements and covenants hereinafter set forth, the parties hereto agree
to the terms and conditions of this Agreement as follows: 
 1. Employment for Term. The Company hereby agrees to employ Employee and
Employee hereby accepts such employment with the Company for the period beginning on the Effective Date. The term of this Agreement (the “Term”) shall continue until the termination of Employee’s employment in accordance with the
provisions of this Agreement. The termination of Employee’s employment under this Agreement shall end the Term but shall not terminate Employee’s or the Company’s other obligations that are intended to survive the termination of this
Agreement (including without limitation, the payments under Section 7 and 8 and Employee’s obligations under Section 9). 
 2.
Position and Duties. During the Term, Employee shall serve as Chairman of the Board, Chief Scientific Officer and Director of Research of the Company, perform such duties as are consistent with his position and report to the Board of Directors
of the Company. During the Term, Employee shall also hold such additional positions and titles as the Board of Directors of the Company (the “Board”) may determine from time to time. During the Term, Employee shall devote as much time as
is necessary to satisfactorily perform his duties as an employee and officer of the Company. Without limitation of the foregoing, the Company hereby acknowledges that it consents to Employee’s participation in those outside activities described
on Exhibit A hereto. The Company shall nominate Employee, and use its best efforts to have Employee elected, to the Board of Directors of the Company (the “Board”) and as Chairman of the Board throughout the Term of this Agreement and
shall include him in the management slate for election as a director at every stockholders meeting during the Term at which his term as a director would otherwise expire. Employee agrees to accept election, and to serve during the Term, as director
of the Company. On termination of Employee’s employment, regardless of the reason for such termination, Employee shall immediately (and with contemporaneous effect) resign any directorships, offices or other positions that Employee may hold in
the Company or any affiliate, unless otherwise agreed in writing by the parties. 
 3. Compensation. 
 (a) Base Salary. The Company shall pay Employee a base salary of $227,500 per annum, payable at least monthly on the
Company’s regular pay cycle for professional employees (as it may be increased (but not decreased) in the sole discretion of the Board, the “Base Salary”). 
  

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 (b) Annual Review. The Base Salary shall be reviewed at the end of each calendar year
(the first such review to occur at the end of calendar year 2009). Any increases in the Base Salary shall be at the sole discretion of the Board. 
 (c) Equity Compensation. In connection with the execution of this Agreement, the Company hereby agrees to grant initial equity compensation to Employee in the aggregate amount of 2,700,000 shares
of Common Stock, which amount is approximately     % of the total of the Company’s shares, calculated on a fully-diluted, as-converted basis and after giving effect to the closing of the transactions contemplated by the APA.
Such equity compensation shall be in the form of restricted shares of the Company’s Common Stock. All such equity compensation shall vest in accordance with the vesting schedule set forth in the applicable equity compensation agreements. The
composition and vesting schedule for such equity compensation is summarized on Exhibit B hereto. Such vesting schedule will be accelerated, to the extent provided in this Agreement, in certain circumstances. 
 (d) Other and Additional Compensation. Subsections (a) and (c) above establish Employee’s compensation during the Term
which shall not preclude the Board from awarding Employee a higher salary or any bonuses or stock options, restricted stock or other forms of additional equity awards in the discretion of the Board during the Term at any time. 
 4. Employee Benefits. During the Term, Employee shall be entitled to participate at the same level as other senior executive officers of the Company
in any group insurance, hospitalization, medical, health and accident, disability, fringe benefit and tax-qualified retirement plans or programs of the Company now existing or hereafter established to the extent that he is eligible under the general
provisions thereof. For the term of this Agreement, Employee shall be entitled to paid vacation at the rate of (4) weeks per annum. In accordance with Company policy, unused vacation may not be carried over from year to year. 
 5. Expenses. The Company shall reimburse Employee for actual, reasonable out-of-pocket expenses incurred by him in the performance of his services
for the Company upon the receipt of appropriate documentation of such expenses. 
 6. Termination. 
 (a) General. The Term shall end immediately upon Employee’s death. Employee’s employment may also be terminated by the
Company with or without Cause or as a result of Employee’s Disability, as defined in Section 7 or by Employee with or without Good Reason (as such terms are defined below). 
 (b) Notice of Termination. Either party shall give written notice of termination to the other party. 
 (c) Notification of New Employer. In the event that Employee leaves the employ of the Company, Employee grants consent to
notification by the Company to Employee’s new employer about his rights and obligations under this Agreement and the PIA (hereinafter defined). 
  

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 7. Severance Benefits. 
 (a) Cause Defined. “Cause” means (i) willful malfeasance or willful misconduct by Employee in connection with his employment; (ii) Employee’s gross negligence in performing
any of his duties under this Agreement; (iii) Employee’s conviction of, or entry of a plea of guilty to, or entry of a plea of nolo contendre with respect to, any crime other than a traffic violation or infraction which is a misdemeanor;
(iv) Employee’s material breach of any written policy applicable to all employees adopted by the Company which is not cured to the reasonable satisfaction of the Company within thirty (30) business days after notice thereof; or
(v) material breach by Employee of any of his obligations in this Agreement which is not cured to the reasonable satisfaction of the Company within thirty (30) business days after notice thereof. 
 (b) Disability Defined. “Disability” shall mean (i) Employee’s incapacity due to a physical or mental condition
and, if reasonable accommodation is required by law, after any reasonable accommodation, that results in Employee being substantially unable to perform his duties hereunder for six consecutive months (or for six months out of any nine month period)
or (ii) a qualified independent physician mutually acceptable to the Company and Employee determines that Employee is incapacitated due to a physical or mental condition and, if reasonable accommodation is required by law, after any reasonable
accommodation so as to be unable to regularly perform the duties of his position and such condition is expected to be of a permanent or near-permanent duration. Until such time as Employee is terminated for Disability under this paragraph (b),
Employee shall continue to receive his Base Salary hereunder, provided that if the Company provides Employee with disability insurance coverage, payments of Employee’s Base Salary shall be reduced by the amount of any disability insurance
payments received by Employee due to such coverage. The Company shall give Employee written notice of termination due to Disability which shall take effect sixty (60) days after the date it is sent to Employee unless Employee shall have
returned to the performance of his duties hereunder during such sixty (60) day period (whereupon such notice shall become void). In the event that the Company terminates Employee’s employment as a result of his Disability, Employee shall
be entitled to the same benefits as if his employment had been terminated by the Company without Cause. 
 (c) Good Reason
Defined. For purposes of this Agreement, “Good Reason” shall mean, without Employee’s written consent: (i) there is a material reduction of the level of Employee’s compensation (excluding any bonuses) (except where there
is a general reduction applicable to the management team generally, provided, however, that in no case may the Base Salary be reduced below the amount stated in Section 3(a)), (ii) there is a material reduction in Employee’s overall
responsibilities or authority, or scope of duties (it being understood that the occurrence of a Change in Control shall not, by itself, necessarily constitute a reduction in Employee’s responsibilities or authority); or (iii) there is a
material change in the principal geographic location at which Employee must perform his services (it being understood that the relocation of Employee to a facility or a location within forty (40) miles of the State Capitol Building in Denver,
Colorado shall not be deemed material for purposes of this Agreement). No event shall be deemed to be “Good Reason” if the Company has cured the event (if susceptible to cure) within 30 days of receipt of written notice from Employee
specifying the event or events which, absent cure, would constitute “Good Cause.” 
 (d) Accrued Compensation
Defined. Accrued Compensation shall mean an amount which shall include all amounts earned or accrued by Employee through the date of termination of this Agreement but not paid as of such date, including (i) Base Salary,
(ii) reimbursement for business expenses incurred by the Employee on behalf of the Company, pursuant to the Company’s expense reimbursement policy in effect at such time, (iii) expense allowance per

  

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Company policy, (iv) accrued but unused vacation pay per Company policy, and (v) bonuses and incentive compensation earned and awarded prior to the date of termination. Accrued
Compensation shall be paid on the first regular pay date after the date of termination (or earlier, if required by applicable law). 
 (e) Termination. 
 (i) Cause; Without Good Reason. If the Company ends the Term for
Cause, or if Employee resigns as an employee of the Company for reasons other than an event of Good Reason, then the Company shall pay to Employee the Accrued Compensation but shall have no obligation to pay Employee any amount, whether for salary,
benefits, bonuses, or other compensation or expense reimbursements of any kind, accruing after the end of the Term, and such rights shall, except as otherwise required by law or pursuant to the applicable award agreement or plan, be forfeited
immediately upon the end of the Term. For the sake of clarity, any stock options, restricted stock or other equity compensation shall, to the extent vested on the date of resignation without Good Reason or the date the Company ends the Term for
Cause, remain outstanding and exerciseable to the extent provided in the applicable award agreement or plan. 
 (ii) Without Cause; Good Reason; Death. In the event that the Company terminates Employee’s employment hereunder without Cause, Employee terminates his employment with Good Reason or his employment terminates as a result of his
death, he shall be entitled to the Accrued Compensation and, subject to Section 21 below, 
 (A) A lump sum payment equal to
two times his Base Salary in effect at the date of termination, less applicable withholding. 
 (B) Continued participation (via
state or federal insurance continuation laws such as COBRA, to the extent available) in the health and welfare plans (or comparable plans, if continued participation in the Company’s plans is not available) provided by the Company to Employee
at the time of termination for a period of two years from the date of termination or, if earlier, until he is eligible for comparable coverage with a subsequent employer. The Company agrees to reimburse the payments Employee makes for such coverage,
whether via continuation or separate comparable policy. Premium reimbursements shall be made by the Company to Employee consistent with the Company’s normal expense reimbursement policy, provided that Employee submits documentation to the
Company substantiating his payments for insurance coverage. Employee shall give the Company prompt notice of his eligibility for comparable coverage. 
 (C) Any unvested options, restricted stock and other stock-based grants to Employee shall be deemed fully vested on the date of termination and any restrictions thereon shall lapse. All stock options
shall remain exerciseable from the date of termination until the tenth anniversary of the date such options were granted (or, if earlier, the expiration date of the applicable Company plan under which such options were granted). 
 (D) Any severance payments and/or other separation benefits contemplated by this Agreement are conditional on Employee: (i) continuing
to comply with the terms of this Agreement and the PIA (as defined herein); (ii) delivering prior to or contemporaneously with any such severance payments, and not revoking, (x) a

  

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customary general release of claims relating to Employee’s employment and/or this Agreement against the Company or its successor, its subsidiaries and their respective directors, officers
and stockholders and (y) a customary affirmation of Employee’s continuing obligations hereunder and under the PIA. 
 Unless otherwise
required by law, no severance payments and/or benefits under this Agreement will be paid and/or provided until after the expiration of any relevant revocation period. 
 8. Change in Control Payments. The provisions of this paragraph 8 set forth the terms of an agreement reached between Employee and the Company regarding Employee’s rights and obligations upon
the occurrence of a “Change in Control” (as hereinafter defined) of the Company during the Term. These provisions are intended to assure and encourage in advance Employee’s continued attention and dedication to his assigned duties and
his objectivity during the pendency and after the occurrence of any such Change in Control. The following provisions shall apply in the event of a Change in Control, in addition to any payment or benefit that may be required pursuant to
Section 7. 
 (a) Equity. Upon the occurrence of a Change in Control, all stock options, restricted stock and other
stock-based grants to Employee by the Company or that may be granted in the future shall, irrespective of any provisions of his award agreements, immediately and irrevocably vest and become exercisable and any restrictions thereon shall lapse. All
stock options shall remain exerciseable from the date of the Change in Control until the expiration of the term of such stock options. 
 (b) Definitions. For purposes of this paragraph 8, the following terms shall have the following meanings: 
 “Change in
Control” shall mean any of the following: 
 (1) the acquisition by any individual, entity, or group (within the meaning of
Section 13(d)(3) or 14(d)(2) of the Exchange Act) (the “Acquiring Person”), other than the Company, or any of its Subsidiaries, of beneficial ownership (within the meaning of Rule 13d-3- promulgated under the Exchange Act) of 50% or
more of the combined voting power or economic interests of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (excluding any issuance of securities by the Company in a transaction or series
of transactions made principally for bona fide equity financing purposes, and also excluding the acquisition of Company securities by DMIB in connection with the transactions contemplated by the APA); 
 (2) during any period of two (2) consecutive years (not including any period prior to the execution of this Agreement), individuals who
at the beginning of such period constitute the Company’s board of directors, and any new directors (other than a director designated by a person who has entered into an agreement with the Company to effect a transaction described in paragraphs
(1), (3) or (4) of this definition) whose election by the board of directors or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds of the directors then still in office who either were
directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute at least a majority of the members of the Company’s board of directors; or 
  

 5 

 (3) the acquisition of the Company by another entity by means of any transaction or series
of related transactions to which the Company is party (including, without limitation, any stock acquisition, reorganization, merger or consolidation but excluding any issuance of securities by the Company in a transaction or series of transactions
made principally for bona fide equity financing purposes, and also excluding the acquisition of Company securities by DMIB in connection with the transactions contemplated by the APA) other than a transaction or series of related transactions in
which the holders of the voting securities of the Corporation outstanding immediately prior to such transaction or series of related transactions retain, immediately after such transaction or series of related transactions, as a result of shares in
the Company held by such holders prior to such transaction or series of related transactions, at least a majority of the total voting power represented by the outstanding voting securities of the Company or such other surviving or resulting entity
(or if the Company or such other surviving or resulting entity is a wholly-owned subsidiary immediately following such acquisition, its parent); or 
 (4) the sale or other disposition of all or substantially all of the assets of the Company in one transaction or series of related transactions. 
 9. Proprietary Information and Inventions Agreement. As a condition of Employee’s employment with the Company, Employee agrees to sign the
Company’s standard form of Proprietary Information and Inventions Agreement (“PIA”). 
 10. Successors and Assigns.

 (a) Employee. This Agreement is a personal contract, and the rights and interests that the Agreement accords to
Employee may not be sold, transferred, assigned, pledged, encumbered, or hypothecated by him. All rights and benefits of Employee shall be for the sole personal benefit of Employee, and no other person shall acquire any right, title or interest
under this Agreement by reason of any sale, assignment, transfer, claim or judgment or bankruptcy proceedings against Employee. Except as so provided, this Agreement shall inure to the benefit of and be binding upon Employee and his personal
representatives, distributes and legatees. 
 (b) The Company. This Agreement shall be binding upon the Company and inure
to the benefit of the Company and of its successors and assigns, including (but not limited to) any Company that may acquire all or substantially all of the Company’s assets or business or into or with which the Company may be consolidated or
merged. In the event that the Company sells all or substantially all of its assets, merges or consolidates, otherwise combines or affiliates with another business, dissolves and liquidates, or otherwise sells or disposes of substantially all of its
assets, then this Agreement shall continue in full force and effect. The Company’s obligations under this Agreement shall cease, however, if and only if the successor to, the purchaser or acquirer of either of the Company or of all or
substantially all of its assets, or the entity with which the Company has affiliated, shall assume in writing the Company’s obligations under this Agreement (and deliver and executed copy of such assumption to Employee), in which case such
successor or purchaser, but not the Company, shall thereafter be the only party obligated to perform the obligations that remain to be performed on the part of the Company under this Agreement. 
 11. Entire Agreement. This Agreement (together with the equity award agreements referred to herein) represents the entire agreement between the
parties concerning Employee’s employment with the Company and supersedes all prior negotiations, discussions, understanding and agreements, whether written or oral, between Employee and the Company relating to the subject matter of this
Agreement. 
  

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 12. Amendment or Modification, Waiver. No provision of this Agreement may be amended or waived unless
such amendment or waiver is agreed to in writing signed by Employee and by a duly authorized officer of the Company. No waiver by any party to this Agreement or any breach by another party of any condition or provision of this Agreement to be
performed by such other party shall be deemed a waiver of a similar or dissimilar condition or provision at the same time, any prior time or any subsequent time. 
 13. Notices. Any notice to be given under this Agreement shall be in writing and delivered personally or sent by overnight courier or registered or certified mail, postage prepaid, return receipt
requested, addressed to the party concerned at the address indicated below, or to such other address of which such party subsequently may give notice in writing: 
  

			
	If to Employee:	  	To the address specified in the payroll records of the Company.
		
	If to the Company:	  	DMI Life Sciences, Inc.
		  	8400 East Crescent Parkway
		  	Suite 600
		  	Greenwood Village, Colorado 80111

 Any notice delivered
personally or by overnight courier shall be deemed given on the date delivered and any notice sent by registered or certified mail, postage prepaid, return receipt requested, shall be deemed given on the date mailed. 
 14. Severability. If any provision of this Agreement or the application of any such provision to any party or circumstances shall be determined by
any court of competent jurisdiction to be invalid and unenforceable to any extent, the remainder of this Agreement or the application of such provision to such person or circumstances other than those to which it is so determined to be invalid and
unenforceable shall not be affected, and each provision of this Agreement shall be validated and shall be enforced to the fullest extent permitted by law. If for any reason any provision of this Agreement containing restrictions is held to cover an
area or to be for a length of time that is unreasonable or in any other way is construed to be too broad or to any extent invalid, such provision shall not be determined to be entirely null, void and of no effect; instead, it is the intention and
desire of both the Company and Employee that, to the extent that the provision is or would be valid or enforceable under applicable law, any court of competent jurisdiction shall construe and interpret or reform this Agreement to provide for a
restriction having the maximum enforceable area, time period and such other constraints or conditions (although not greater than those contained currently contained in this Agreement) as shall be valid and enforceable under the applicable law.

 15. Survivorship. The respective rights and obligations of the parties hereunder shall survive any termination of this Agreement to
the extent necessary to the intended preservation of such rights and obligations. 
 16. Headings. All descriptive headings of sections
and paragraphs in this Agreement are intended solely for convenience of reference, and no provision of this Agreement is to be construed by reference to the heading of any section or paragraph. 
  

 7 

 17. Withholding Taxes. All salary, benefits, reimbursements and any other payments to Employee under
this Agreement shall be subject to all applicable payroll and withholding taxes and deductions required by any law, rule or regulation of and federal, state or local authority. 
 18. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which together constitute one and same instrument.

 19. Applicable Law; Arbitration. The validity, interpretation and enforcement of this Agreement and any amendments or modifications
hereto shall be governed by the laws of the State of Colorado, as applied to a contract executed within and to be performed in such State. The parties agree that any disputes shall be definitively resolved by binding arbitration before the American
Arbitration Association in Denver, Colorado and consent to the jurisdiction to the federal courts of the District of Colorado or, if there shall be no jurisdiction, to the state courts located in Arapahoe County, Colorado, to enforce any arbitration
award rendered with respect thereto. Each party shall choose one arbitrator and the two arbitrators shall choose a third arbitrator. All costs and fees related to such arbitration (and judicial enforcement proceedings, if any) shall be borne by the
Company unless Employee’s claim is deemed to be frivolous by the arbitrator(s) or judge. 
 20. Legal Fees. Each party shall pay its
own counsel fee expenses incurred in drafting and negotiating this Agreement. 
 21. Section 409A. Notwithstanding anything to the
contrary in this Agreement, if Employee is a “specified employee” within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and the final regulations and any guidance promulgated
thereunder (“Section 409A”) at the time of Employee’s termination (other than due to death), and the severance payable to Employee, if any, pursuant to this Agreement, when considered together with any other severance payments or
separation benefits which may be considered deferred compensation under Section 409A (together, the “Deferred Compensation Separation Benefits”) will not and could not under any circumstances, regardless of when such termination
occurs, be paid in full by March 15 of the year following Employee’s termination, then only that portion of the Deferred Compensation Separation Benefits which do not exceed the Section 409A Limit (as defined below) may be made within
the first six (6) months following Employee’s termination of employment in accordance with the payment schedule applicable to each payment or benefit. For these purposes, each severance payment is hereby designated as a separate payment
and will not collectively be treated as a single payment. Any portion of the Deferred Compensation Separation Benefits in excess of the Section 409A Limit shall accrue and, to the extent such portion of the Deferred Compensation Separation
Benefits would otherwise have been payable within the first six (6) months following Employee’s termination of employment, 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 Employee’s termination. All subsequent Deferred Compensation Separation Benefits, if any, will be payable in accordance with the payment schedule applicable to each payment or benefit. Notwithstanding anything
herein to the contrary, if Employee dies following his termination but prior to the six (6) month anniversary of his termination, 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 Employee’s death and all other Deferred Compensation Separation Benefits will be payable in accordance with the payment schedule applicable to each payment or benefit. The foregoing provision is
intended to comply with the requirements of Section 409A so that none of the severance payments and

  

 8 

 
benefits to be provided hereunder will be subject to the additional tax imposed under Section 409A, and any ambiguities herein will be interpreted to so comply. The Company and Employee
agree to work together in good faith to consider amendments to this 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 Employee under Section 409A, For purposes of this Agreement, “Section 409A Limit” will mean the lesser of two (2) times: (A) Employee’s annualized compensation based upon the annual rate of pay paid to Employee
during the Company’s taxable year preceding the Company’s taxable year of Employee’s termination of employment as determined under Treasury Regulation 1.409A-1(b)(9)(iii)(A)(1) and any Internal Revenue Service guidance issued with
respect thereto; or (B) 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 Employee’s employment is terminated. 
 22. Indemnification. As a condition to the effectiveness of this Agreement, the Company and Employee shall enter into a mutually acceptable
indemnification agreement. 
 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

  

							
	DMI LIFE SCIENCES, INC.	 		 	EMPLOYEE
				
	By:	 	
 

	 		 	
 

		 	Name:	 		 	Name: DAVID BAR-OR, M.D.

  

 9 

 EXHIBIT A 
 Outside Activities 
 1. DMI Biosciences, Inc. Employee
is an employee, officer, director and equityholder of DMI Biosciences. Employee shall continue in such roles during the term of this Agreement. 
 2. Trauma Research LLC Employee serves as an employee, manager and member of Trauma Research. Employee shall continue in such roles during the term of this Agreement. 
 3. Institute for Molecular Medicine, Inc. Employee is an employee, officer, director and equityholder of IMM. Employee shall continue in such roles during the term of this Agreement. 
  

 10 

 EXHIBIT B 
 Terms of Equity Compensation 
 Management equity grant:

  

	 	•	 	 2,700,000 total shares, all of which will be in the form of restricted stock 

  

	 	•	 	 All shares fully vest upon change in control, death, disability, termination without cause, termination for good reason 

 

	 	•	 	 900,000 shares of restricted stock which are fully vested on Day 1 

  

	 	•	 	 0 shares of restricted stock vest during months 0—12 under time vesting 

  

	 	•	 	 900,000 shares of restricted stock vest monthly/ratably during months 12—24 

  

	 	¡	 	 this tranche of restricted stock is subject to acceleration of vesting upon the achievement of the milestones described below

  

	 	•	 	 900,000 shares of restricted stock vest monthly/ratably during months 24—36 

  

	 	¡	 	 this tranche of restricted stock is subject to acceleration of vesting upon the achievement of the milestones described below

 Vesting milestones 
  

	 	•	 	 Design and fabricate (small scale) a disposable single-use electrochemical test strip capable of attaining reproducible and accurate test results of
oxidation-reduction potential (ORP) in blood of one or more selected patient populations (including normals) that correlate to the results obtained from existing ORP 

  

	 	¡	 	 450,000 shares become fully vested upon this milestone achievement 

  

	 	•	 	 Write clinical trial protocol for initial POC study, including but not limited to a brief summary, background information, study design, inclusion and
exclusion criteria, sample size calculation, data capture processes, adverse event recording, safety reviews, statistical analysis and relevant scientific and regulatory references 

  

	 	¡	 	 450,000 shares become fully vested upon this milestone achievement 

  

	 	•	 	 Complete a sampling study for one new clinical indication of ORP 

  

	 	¡	 	 450,000 shares become fully vested upon this milestone achievement 

  

	 	•	 	 Submit 510(k), an IDE or a PMA application to FDA in any patient population or clinical application for initial use of ORP sensor

  

	 	¡	 	 450,000 shares become fully vested upon this milestone achievement 

 To the extent that any of the above milestones are satisfied, the restricted shares which will early vest shall be taken from the portion of the restricted shares with the longest remaining time to
vesting under the time vesting schedule. 
  

 11

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