Document:

Document

EXHIBIT 10.2

       
AWARD NOTICE 
AND
RESTRICTED STOCK UNIT AGREEMENT
CHEWY, INC.
2022 OMNIBUS INCENTIVE PLAN
The Participant has been granted Restricted Stock Units with the terms set forth in this Award Notice, and subject to the terms and conditions of the Plan and the Restricted Stock Unit Agreement to which this Award Notice is attached. Capitalized terms used and not defined in this Award Notice shall have the meanings set forth in the Restricted Stock Unit Agreement and the Plan, as applicable.
Participant: 
Date of Grant: 
Restricted Stock Units Granted: Restricted Stock Units (the “Award”)
Vesting Schedule: 

1.Regular Vesting. Subject to the Participant’s continued Service through the vesting date, 100% of the Award will vest on the earlier of (1) the date of the Company’s annual meeting of stockholders in the year following the Date of Grant or (2) one year from the Date of Grant set forth above, and will be settled in accordance with Section 4 of the Agreement. 
2.Change in Control Treatment. Subject to the Participant’s continued Service through the Change in Control, 100% of the Award will vest upon a Change in Control.
*     *     *

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RESTRICTED STOCK UNIT AGREEMENT
CHEWY, INC.
2022 OMNIBUS INCENTIVE PLAN
This Restricted Stock Unit Agreement, effective as of the Date of Grant (as defined below), is between Chewy, Inc., a Delaware corporation (“Chewy”), and the Participant (as defined below).
WHEREAS, Chewy has adopted the Chewy, Inc. 2022 Omnibus Incentive Plan (as it may be amended, the “Plan”) in order to provide equity-based incentive awards to eligible service providers to encourage them to deliver outcomes and/or continue in the Service of the Company; and
WHEREAS, the Board of Directors has determined to grant RSUs (as defined below) to the Participant (as defined below) as provided herein and the Company and the Participant (as defined below) hereby wish to memorialize the terms and conditions applicable to such RSUs.
NOW, THEREFORE, the parties hereto agree as follows:

1.Definitions. Capitalized terms not otherwise defined herein shall have the same meanings as in the Plan. The following terms shall have the following meanings for purposes of this Agreement:
(a)“Agreement” shall mean this Restricted Stock Unit Agreement including (unless the context otherwise requires) the Award Notice.
(b)“Award Notice” shall mean the notice to the Participant.
(c)“Cause” shall have the meaning ascribed to such term in any employment agreement entered into by the Participant and Company and if not so defined, or no such agreement exists, “Cause” shall mean (i) a refusal or failure to follow the lawful and reasonable directions of the Board of Directors or individual to whom the Participant reports, which refusal or failure is not cured within thirty (30) days following delivery of written notice of such conduct to the Participant; (ii) conviction of the Participant of any felony involving fraud or act of dishonesty against the Company or any of its affiliates; (iii) conduct by the Participant which, based upon good faith and reasonable factual investigation and determination of the Company, demonstrates gross unfitness to serve; (iv) intentional, material violation by the Participant of any contractual, statutory, or fiduciary duty owed by the Participant to the Company or any of its affiliates; or (v) willful misconduct causing material economic harm or public disgrace to the Company of any of its subsidiaries or affiliates.
(d)“Date of Grant” shall mean the “Date of Grant” listed in the Award Notice.
(e)“Participant” shall mean the “Participant” listed in the Award Notice.
(f)“RSUs” shall mean that number of Restricted Stock Units listed in the Award Notice as “Restricted Stock Units Granted.”
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2.Grant of Units. The Company hereby grants the RSUs to the Participant, each of which represents the right to receive one Share upon vesting of such RSU, subject to and in accordance with the terms, conditions and restrictions set forth in the Plan, the Award Notice, and this Agreement.
3.RSU Account. The Company shall cause an account (the “Unit Account”) to be established and maintained on the books of the Company to record the number of RSUs credited to the Participant under the terms of this Agreement. The Participant’s interest in the Unit Account shall be that of a general, unsecured creditor of the Company.  Each RSU shall accrue dividend equivalents (“Dividend Equivalents”) with respect to dividends that would otherwise be paid on the Share underlying such RSU during the period from the Date of Grant to the date such Share is delivered in accordance with Section 4 below.  Dividend Equivalents shall be subject to the same vesting conditions applicable to the RSU on which such Dividend Equivalents are accrued, and shall be paid in cash to the Participant upon delivery of the underlying Share in respect of which the Dividend Equivalents were accrued.
4.Vesting; Settlement. 
(a)The RSUs shall become vested in accordance with the schedule set forth on the Award Notice. The Company shall deliver to the Participant one Share for each RSU (as adjusted under the Plan) as soon as practicable and no later than twenty (20) business days following the applicable vesting date, subject to Sections 4(b) below, and such vested RSU shall be cancelled upon such delivery. 
(b)If permitted by the Company, the Participant may elect, subject to the terms and conditions of the Plan and any other applicable written plan or procedure adopted by the Company from time to time for purposes of such election, to defer the distribution of all or any portion of the Shares that would otherwise be distributed to the Participant hereunder (the “Deferred Shares”), consistent with the requirements of Section 409A of the Code. Upon the earning of RSUs that have been so deferred, the applicable number of Deferred Shares will be credited to a bookkeeping account established on the Participant’s behalf (the “Account”). Subject to Section 3, the number of Shares equal to the number of Deferred Shares credited to the Participant’s Account will be distributed to the Participant in accordance with the terms of the Plan and the other applicable written plans or procedures of the Company, consistent with the requirements of Section 409A of the Code.
(c)The Participant will be solely liable for all federal, state, local, foreign and other tax obligations related to the RSUs (collectively, “Tax-Related Items”), and the Company (i) makes no representation or undertakings regarding the treatment of any Tax-Related Items in connection with the grant, vesting, or settlement of the RSUs or the subsequent sale of any Shares and (ii) does not commit to structure the RSUs to reduce or eliminate the Participant’s liability for Tax-Related Items.  The Participant acknowledges that the Company has encouraged the Participant to consult the Participant’s own adviser regarding the tax consequences of the Award, and that the Participant is not relying on the Company or its Affiliates or agents for tax advice. 
(d)The Company shall pay any costs incurred in connection with issuing the Shares. Upon the issuance of the Shares to the Participant, the Participant’s Unit Account shall be eliminated. Notwithstanding anything in this Agreement to the contrary, the Company shall have no obligation to issue or transfer the Shares as contemplated by this Agreement unless and until such issuance or transfer shall comply with all relevant provisions of law and the requirements of any stock exchange on which the Company’s shares are listed for trading.
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5.Termination of Service. 
(a)In the event that the Participant’s Service with the Company terminates for any reason, any unvested RSUs shall be forfeited and all of the Participant’s rights hereunder with respect to such unvested RSUs (and any Dividend Equivalents accrued thereon) shall cease as of the Termination Date (unless otherwise provided for by the Committee in accordance with the Plan).
(b)The Participant’s rights with respect to the RSUs shall not be affected by any change in the nature of the Participant’s Service so long as the Participant continues to be an employee or service provider, as applicable, of the Company. Whether (and the circumstances under which) the Participant’s Service has terminated and the determination of the Termination Date for the purposes of this Agreement shall be determined by the Committee (or, with respect to any Participant who is not a director or “officer” as defined under Rule 16a-1(f) of the Exchange Act, its designee, whose good faith determination shall be final, binding and conclusive; provided, that such designee may not make any such determination with respect to the designee’s own Service for purposes of the RSUs). 
6.Restrictions on Transfer. 
(a)RSU Transfers. The Participant may not assign, alienate, pledge, attach, sell or otherwise transfer or encumber the RSUs or the Participant’s right under the RSUs to receive Shares, except other than by will or by the laws of descent and distribution and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against the Company or any of its Affiliates; provided, that the designation of a beneficiary (if permitted by the Committee) shall not constitute an assignment, alienation, pledge, attachment, sale, transfer or encumbrance.
(b)Lock-ups. By acceptance of the grant of RSUs pursuant to this Agreement, the Participant acknowledges and agrees that the Participant shall, unless the Company elects otherwise, comply with the terms of any lock-up agreement entered into by the Company’s chief executive officer with the underwriters of any public offering of Shares as if the Participant had executed such a lock-up agreement.   
7.Repayment of Proceeds; Clawback Policy. 
(a)If the Participant’s Service is terminated by the Company or its Subsidiaries for Cause or the Participant resigns while grounds for Cause exist, or the Company discovers that after a termination of Service that grounds for a termination with Cause existed at the time thereof, then the Participant shall be required, in addition to any other remedy available (on a non-exclusive basis), to pay to the Company, within ten (10) business days of the Company’s request to the Participant therefor, the aggregate after-tax proceeds (taking into account all amounts of tax that would be recoverable upon a claim of loss for payment of such proceeds in the year of repayment) the Participant received upon the sale or other disposition of, or distributions in respect of, the RSUs or Shares issued in settlement of the RSUs.  With respect to the scenario where the Company discovers that after a termination of Service that grounds for a termination with Cause existed at the time thereof, then any reference in this Agreement to grounds existing for a termination with Cause shall be determined without regard to any cure period or other procedural delay or event required prior to a finding of, or termination with, Cause. 
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(b)The RSUs and all proceeds of the RSUs shall be subject to the Company’s clawback or recoupment policy, if any, and as in effect from time to time, to the extent the Participant is a director or “officer” as defined under Rule 16a-1(f) of the Exchange Act.
(c)By acceptance of the grant of RSUs pursuant to this Agreement, the Participant acknowledges and agrees that the Company may cause the cancellation or forfeiture of RSUs or Shares issuable upon settlement of any RSU on the books and records of the Company or any transfer agent to enforce the provisions of this Section 7. 
8.No Right to Continued Service. Neither the Plan nor this Agreement nor the Participant’s receipt of the RSUs hereunder shall impose any obligation on the Company or any of its Affiliates to continue the Service of the Participant. Further, the Company or any of its Affiliates (as applicable) may at any time terminate the Service of the Participant, free from any liability or claim under the Plan or this Agreement, except as otherwise expressly provided herein.
9.No Rights as a Stockholder. The Participant’s interest in the RSUs shall not entitle the Participant to any rights as a stockholder of the Company. The Participant shall not be deemed to be the holder of, or have any of the rights and privileges of a stockholder of the Company in respect of, the Shares unless and until such Shares have been issued to the Participant.
10.Adjustments Upon Change in Capitalization. The terms of this Agreement, including the RSUs, the Participant’s Unit Account, any performance targets (including share price hurdles), and/or the Shares, shall be subject to adjustment in accordance with Section 9 of the Plan. This paragraph shall also apply with respect to any extraordinary dividend or other extraordinary distribution in respect of the Company’s Common Stock (whether in the form of cash or other property).
11.Award Subject to Plan. By entering into this Agreement, the Participant agrees and acknowledges that the Participant has received and read a copy of the Plan. The RSUs granted hereunder are subject to the Plan. The terms and provisions of the Plan, as it may be amended from time to time, are hereby incorporated herein by reference. In the event of a conflict between any term or provision contained herein and a term or provision of the Plan, the applicable terms and provisions of the Plan will govern and prevail.
12.Severability. Should any provision of this Agreement be held by a court of competent jurisdiction to be unenforceable or invalid for any reason, the remaining provisions of this Agreement shall not be affected by such holding and shall continue in full force in accordance with their terms.
13.Governing Law; Venue; Language. This Agreement shall be governed by and construed in accordance with the internal laws of the State of Florida applicable to contracts made and performed wholly within the State of Florida, without giving effect to the conflict of laws provisions thereof. Any suit, action or proceeding with respect to this Agreement (or any provision incorporated by reference), or any judgment entered by any court in respect thereof, shall be brought in the U.S. District Court for the Southern District of Florida or in any other court of competent jurisdiction in Broward County, Florida, and each of the Participant, the Company, and any transferees who hold RSUs pursuant to a valid assignment, hereby submits to the exclusive jurisdiction of such courts for the purpose of any such suit, action, proceeding, or judgment. Each of the Participant, the Company, and any transferees who hold RSUs pursuant to a valid assignment hereby irrevocably waives (a) any objections which it may now or hereafter have to the laying of the venue of any suit, action, or proceeding arising out of or relating to this 
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Agreement brought in the U.S. District Court for the Southern District of Florida or in any other court of competent jurisdiction in Broward County, Florida; (b) any claim that any such suit, action, or proceeding brought in any such court has been brought in any inconvenient forum; and (c) any right to a jury trial. If the Participant has received a copy of this Agreement (or the Plan or any other document related hereto or thereto) translated into a language other than English, such translated copy is qualified in its entirety by reference to the English version thereof, and in the event of any conflict the English version will govern.
14.Successors in Interest. Any successor to the Company shall have the benefits of the Company under, and be entitled to enforce, this Agreement. Likewise, the Participant’s legal representative shall have the benefits of the Participant under, and be entitled to enforce, this Agreement. All obligations imposed upon the Participant and all rights granted to the Company under this Agreement shall be final, binding and conclusive upon the Participant’s heirs, executors, administrators and successors.
15.Data Privacy Consent.
(a)General. The Participant hereby explicitly and unambiguously consents to the collection, use and transfer, in electronic or other form, of the Participant’s personal data as described in this Agreement and any other RSU grant materials by and among, as applicable, the Participant’s service-recipient or contracting party (the “Service Recipient”) and the Company for the exclusive purpose of implementing, administering and managing the Participant’s participation in the Plan. The Participant understands that the Company may hold certain personal information about the Participant, including, but not limited to, the Participant’s name, home address and telephone number, work location and phone number, date of birth, social security number or other identification number, salary, nationality, job title, hire date, any shares of stock or directorships held in the Company, details of all awards or any other entitlement to shares awarded, cancelled, exercised, vested, unvested or outstanding in the Participant’s favor, for the purpose of implementing, administering and managing the Plan (“Personal Data”).
(b)Use of Personal Data; Retention. The Participant understands that Personal Data may be transferred to any third parties assisting in the implementation, administration and management of the Plan, now or in the future, that these recipients may be located in the Participant’s country or elsewhere, and that the recipient’s country may have different data privacy laws and protections than the Participant’s country. The Participant understands that the Participant may request a list with the names and addresses of any potential recipients of the Personal Data by contacting the Participant’s local human resources representative. The Participant authorizes the recipients to receive, possess, use, retain and transfer the Personal Data, in electronic or other form, for the purposes of implementing, administering and managing the Participant’s participation in the Plan. The Participant understands that Personal Data will be held only as long as is necessary to implement, administer and manage the Participant’s participation in the Plan. The Participant understands that the Participant may, at any time, view Personal Data, request additional information about the storage and processing of Personal Data, require any necessary amendments to Personal Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing the Participant’s local human resources representative.
(c)Withdrawal of Consent. The Participant understands that the Participant is providing the consents herein on a purely voluntary basis. If the Participant does not consent, or if the Participant later seeks to revoke the Participant’s consent, the Participant’s Service and career with the Service Recipient will not be adversely affected; the only consequence of the Participant’s refusing or withdrawing the Participant’s 
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consent is that the Company would not be able to grant RSUs or other equity awards to the Participant or administer or maintain such awards. Therefore, the Participant understands that refusing or withdrawing the Participant’s consent may affect the Participant’s ability to participate in the Plan. For more information on the consequences of Participant’s refusal to consent or withdrawal of consent, the Participant understands that the Participant may contact the Participant’s local human resources representative.
16.[Reserved].
17.Limitation on Rights; No Right to Future Grants; Extraordinary Item of Compensation. By accepting this Agreement and the grant of the RSUs contemplated hereunder, the Participant expressly acknowledges that (a) the Plan is established voluntarily by the Company, it is discretionary in nature and may be suspended or terminated by the Company at any time, to the extent permitted by the Plan; (b) the grant of RSUs is exceptional, voluntary and occasional and does not create any contractual or other right to receive future grants of RSUs, or benefits in lieu of RSUs, even if RSUs have been granted in the past; (c) all determinations with respect to future grants of RSUs, if any, including the date of grant, the number of Shares granted and the applicable vesting terms, will be at the sole discretion of the Company; (d) the Participant’s participation in the Plan is voluntary; (e) the value of the RSUs is an extraordinary item of compensation that is outside the scope of the Participant’s services contract, if any, and nothing can or must automatically be inferred from such services contract or its consequences; and (f) the future value of the underlying Shares is unknown and cannot be predicted with certainty. In addition, the Participant understands, acknowledges and agrees that the Participant will have no rights to compensation or damages related to RSU proceeds in consequence of the termination of the Participant’s Service for any reason whatsoever and whether or not in breach of contract.
18.Award Administrator. The Company may from time to time designate a third party (as an “Award Administrator”) to assist the Company in the implementation, administration and management of the Plan and any RSUs granted thereunder, including by sending award notices on behalf of the Company to Participants, and by facilitating through electronic means acceptance of RSU Agreements by Participants.
19.Section 409A of the Code.
(a)This Agreement is intended to comply with the provisions of Section 409A of the Code and the regulations promulgated thereunder. Without limiting the foregoing, the Committee shall have the right to amend the terms and conditions of this Agreement in any respect as may be necessary or appropriate to comply with Section 409A of the Code or any regulations promulgated thereunder, including without limitation by delaying the issuance of the Shares contemplated hereunder.
(b)Notwithstanding any other provision of this Agreement to the contrary, if a Participant is a “specified employee” within the meaning of Section 409A of the Code, no payments in respect of any RSU that is “deferred compensation” subject to Section 409A of the Code and not exempt for Section 409A as a short-term deferral or otherwise  and which would otherwise be payable upon the Participant’s “separation from service” (as defined in Section 409A of the Code) shall be made to such Participant prior to the date that is six (6) months after the date of the Participant’s “separation from service” or, if earlier, the Participant’s date of death. Following any applicable six (6)-month delay, all such delayed payments will be paid in a single lump sum on the earliest date permitted under Section 409A of the Code that is also a business day. The Participant is solely responsible and liable for the satisfaction of all taxes and penalties under Section 409A of the Code that may be imposed on or in respect of the Participant 
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in connection with this Agreement, and the Company shall not be liable to any Participant for any payment made under this Plan that is determined to result in an additional tax, penalty or interest under Section 409A of the Code, nor for reporting in good faith any payment made under this Agreement as an amount includible in gross income under Section 409A of the Code. Each payment in a series of payments hereunder shall be deemed to be a separate payment for purposes of Section 409A of the Code.
20.Book Entry Delivery of Shares. Whenever reference in this Agreement is made to the issuance or delivery of certificates representing one or more Shares, the Company may elect to issue or deliver such Shares in book entry form in lieu of certificates.
21.Electronic Delivery and Acceptance. The Company may, in its sole discretion, decide to deliver any documents related to current or future participation in the Plan by electronic means. The Participant hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the Company.
22.Acceptance and Agreement by the Participant. By accepting the RSUs (including through electronic means), the Participant agrees to be bound by the terms, conditions, and restrictions set forth in the Plan, this Agreement, and the Company’s policies, as in effect from time to time, relating to the Plan.
23.No Advice Regarding Grant. The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding the Participant’s participation in the Plan, or the Participant’s acquisition or sale of the underlying Shares. The Participant is hereby advised to consult with the Participant’s own personal tax, legal and financial advisors regarding the Participant’s participation in the Plan before taking any action related to the Plan.
24.Imposition of Other Requirements. The Company reserves the right to impose other requirements on the Participant’s participation in the Plan, on the RSUs and on any Shares acquired under the Plan, to the extent the Company determines it is necessary or advisable for legal or administrative reasons, and to require the Participant to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.
25.Waiver. The Participant acknowledges that a waiver by the Company of breach of any provision of this Agreement shall not operate or be construed as a waiver of any other provision of this Agreement, or of any subsequent breach by the Participant or any other participant in the Plan.
26.Counterparts. This Agreement may be executed in separate counterparts, each of which is deemed to be an original and all of which taken together constitute one in the same agreement.
[Signatures follow]

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CHEWY INC.

												
			By:	
	 	 	 	
				
				

 Acknowledge and agreed as of the date first written above:

						
				
				Participant Signature:Exhibit 4.1

 

THIS INTEREST HAS NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER THE SECURITIES LAWS OF ANY STATES IN THE UNITED STATES.
THIS INTEREST IS SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER
THE ACT AND THE APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM.

 

ROYALTY INTEREST

 

	Effective Date: August 24, 2022	U.S. $12,000,000.00

  

FOR VALUE RECEIVED, Jaguar
Health, Inc., a Delaware corporation (“Company”), promises to pay to Streeterville
Capital, LLC, a Utah limited liability company, or its successors or assigns (“Investor”), $12,000,000.00 and
any interest, fees, and charges in accordance with the terms set forth herein (the “Royalty Repayment Amount”) and
to pay interest on the Royalty Repayment Amount at the rate of five percent (5%) per annum from the Purchase Price Date until the one-year
anniversary of the Purchase Price Date and ten percent (10%) per annum thereafter until the same is paid in full. This Royalty Interest
(this “Interest”) is issued and made effective as of August 24, 2022 (the “Effective Date”). This
Interest is issued pursuant to that certain Royalty Interest Purchase Agreement dated August 24, 2022, as the same may be amended from
time to time, by and between Company and Investor (the “Purchase Agreement”). All interest calculations hereunder shall
be simple interest computed on the basis of a 360-day year comprised of twelve (12) thirty (30) day months and shall be payable
in accordance with the terms of this Interest. Certain capitalized terms used herein are defined in Attachment 1 attached hereto
and incorporated herein by this reference.

 

Company agrees to pay $25,000.00
to Investor to cover Investor’s legal fees, accounting costs, due diligence, monitoring and other transaction costs incurred in
connection with the purchase and sale of this Interest, which amount will be deducted from the amount funded at closing.

 

1.            
Payment; Prepayment.

 

1.1.            
Payment. All payments owing hereunder shall be in lawful money of the United States of America as provided for herein, and
delivered to Investor at the address or bank account furnished to Company for that purpose. All payments shall be applied first to (a)
costs of collection, if any, then to (b) fees and charges, if any, then to (c) accrued and unpaid interest, and thereafter, to (d) principal.

 

1.2.            
Prepayment. Company may repay the Royalty Repayment Amount at any time without penalty.

 

2.             
Royalty.

 

2.1.             Royalty
Payments. Beginning on the Payment Start Date and continuing each month thereafter until such time as the Royalty Repayment
Amount has been paid in full, Company will pay Investor: (a) ten percent (10%) of Company’s Net Sales on Included Products;
(b) ten percent (10%) of worldwide revenues related to upfront licensing fees and milestone payments from licensees and/or
distributors, but specifically excluding licensing fees and/or milestone payments that are (i) reimbursements of clinical trial
expenses or (ii) associated with the license of Included Products from the Company to Napo EU S.p.A. (including its successors and
assigns, “Napo EU”), including but not limited to the upfront fee payable by Napo EU to Napo Pharmaceuticals,
Inc. for Included Products and Crofelemer for other indications; and (c) fifty percent (50%) of royalties collected from licenses of
the Included Products to third parties (the “Royalty Payments”). Company shall pay the Royalty Payments in
arrears on the tenth (10th) day of each month for the prior month. For the avoidance of doubt, the first Royalty Payment
will be due by the tenth (10th) day of the month following the month in which the Payment Start Date occurs for such
entire calendar month.

 

     

     

    

 

2.2.            
Minimum Royalty Payment. Beginning on the Payment Start Date and continuing until either the Royalty Repayment Amount has
been paid in full or the 6-month anniversary of the Payment Start Date (whichever occurs first), the monthly Royalty Payment shall be
the greater of (a) $250,000.00, and (b) the actual amount of revenues Investor is entitled to for such month pursuant to Section 2.1 above.
Beginning on the 6-month anniversary of the Payment Start Date and continuing until either the Royalty Repayment Amount has been paid
in full or the 12-month anniversary of the Payment Start Date (whichever occurs first), the monthly Royalty Payment shall be the greater
of (i) $400,000.00, and (ii) the actual amount of revenues Investor is entitled to for such month pursuant to Section 2.1 above. Beginning
on the 12-month anniversary of the Payment Start Date and continuing until either the Royalty Repayment Amount has been paid in full or
the 18-month anniversary of the Payment Start Date (whichever occurs first), the monthly Royalty Payment shall be the greater of (A) $600,000.00,
and (B) the actual amount of revenues Investor is entitled to for such month pursuant to Section 2.1 above. Beginning on the 18-month
anniversary of the Payment Start Date and continuing until the Royalty Repayment Amount has been paid in full, the monthly Royalty Payment
shall be the greater of (1) $750,000.00, and (2) the actual amount of revenues Investor is entitled to for such month pursuant to Section
2.1 above.

 

3.           
 Company Exchange Right. Company may exchange from time to time at Company’s sole discretion any Exchange Amount
for Exchange Shares at a price per share equal to the Nasdaq Minimum Price as of each applicable Exchange Date. Notwithstanding the foregoing,
Company shall not have the right to exchange any Exchange Amount and issue any Exchange Shares to Investor if: (a) the issuance of such
Exchange Shares would cause Investor’s beneficial ownership, together with its affiliates, to exceed 4.99% of Company’s issued
and outstanding Common Stock as of such date; (b) any of the Exchange Conditions has not been satisfied as of the applicable Exchange
Date; or (c) the total cumulative number of Exchange Shares to be issued to Investor would exceed the Exchange Cap unless (i) stockholder
approval is obtained to issue more than the Exchange Cap or (ii) the Common Stock is not listed for quotation on Nasdaq or NYSE American.
The Exchange Cap shall be appropriately adjusted for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock
split or other similar transaction. Following delivery of an Exchange Notice, Company may not deliver another Exchange Notice to Investor
for at least three (3) Trading Days.

 

4.            
Defaults and Remedies.

 

4.1.             Defaults.
The following are events of default under this Interest (each, an “Event of Default”): (a) Company fails to pay
any principal or any interest, fees, charges, or any other amount when due and payable hereunder, which default remains uncured for
a period of three (3) Business Days; (b) a receiver, trustee or other similar official shall be appointed over Company or a material
part of its assets and such appointment shall remain uncontested for thirty (30) calendar days or shall not be dismissed or
discharged within sixty (60) calendar days; (c) [INTENTIONALLY LEFT BLANK]; (d) Company makes a general assignment for the benefit
of creditors; (e) Company files a petition for relief under any bankruptcy, insolvency or similar law (domestic or foreign); (f) an
involuntary bankruptcy proceeding is commenced or filed against Company which is not dismissed or discharged within sixty (60)
calendar days; (g) Company defaults or otherwise fails to observe or perform any covenant, obligation, condition or agreement of
Company contained herein or in any other Transaction Document (as defined in the Purchase Agreement), other than those specifically
set forth in this Section 4.1 and Section 4 of the Purchase Agreement, which default continues for a period of thirty (30) calendar
days following notice by Investor to Company thereof; (h) any representation, warranty or other statement made or furnished by or on
behalf of Company to Investor herein or in any Transaction Document, is false, incorrect, incomplete or misleading in any material
respect when made or furnished; (i) the occurrence of a Fundamental Transaction without Investor’s prior written consent, such
consent shall not be unreasonably withheld; (j) Company effectuates a reverse split of its Common Stock without twenty (20) Business
Days prior written notice to Investor (other than such splits effectuated to remain listed with NASDAQ); (k) any money judgment,
writ or similar process is entered or filed against Company or any subsidiary of Company or any of its property or other assets for
more than $1,000,000.00, and shall remain unpaid, unvacated, unbonded or unstayed for a period of thirty (30) calendar days unless
otherwise consented to by Investor; (l) Company fails to observe or perform any covenant set forth in Section 4 of the Purchase
Agreement, which default continues for a period of thirty (30) calendar days following the occurrence of the applicable breach; or
(m) Company breaches any covenant or other term or condition contained in any Other Agreements, which default continues for a period
of thirty (30) calendar days following notice by Investor to Company thereof.

 

    2

     

    

 

 

4.2.            
Remedies. At any time following the occurrence of any Event of Default, Investor may, at its option, elect to increase the
Royalty Repayment Amount by applying the Default Effect (subject to the limitation set forth below) via written notice to Company without
accelerating the Royalty Repayment Amount, in which event the Royalty Repayment Amount shall be increased as of the date of the occurrence
of the applicable Event of Default pursuant to the Default Effect. At any time following the occurrence of any Event of Default, upon
written notice given by Investor to Company, interest shall accrue on the Royalty Repayment Amount beginning on the date the applicable
Event of Default occurred at an interest rate equal to the lesser of 18% per annum or the maximum rate permitted under applicable law
(“Default Interest”). Nothing herein shall limit Investor’s right to pursue any other remedies available to it
at law or in equity.

 

5.            
Unconditional Obligation; No Offset. Company acknowledges that this Interest is an unconditional, valid, binding and enforceable
obligation (except as may be limited by applicable bankruptcy, insolvency and similar laws affecting creditors’ rights and by general
principles of equity) of Company not subject to offset, deduction or counterclaim of any kind. Company hereby waives any rights of offset
it now has or may have hereafter against Investor, its successors and assigns, and agrees to make the payments called for herein in accordance
with the terms of this Interest.

 

6.            
Waiver. No waiver of any provision of this Interest shall be effective unless it is in the form of a writing signed by the
party granting the waiver. No waiver of any provision or consent to any prohibited action shall constitute a waiver of any other provision
or consent to any other prohibited action, whether or not similar. No waiver or consent shall constitute a continuing waiver or consent
or commit a party to provide a waiver or consent in the future except to the extent specifically set forth in writing.

 

7.            
Payment of Collection Costs. If this Interest is placed in the hands of an attorney for collection or enforcement prior
to commencing arbitration or legal proceedings, or is collected or enforced through any arbitration or legal proceeding, or Investor otherwise
takes action to collect amounts due under this Interest or to enforce the provisions of this Interest, then Company shall pay the reasonable
and documented out-of-pocket costs incurred by Investor for such collection, enforcement or action including, without limitation, reasonable
and documented attorneys’ fees and disbursements.

 

8.            
Governing Law; Venue. This Interest shall be construed and enforced in accordance with, and all questions concerning the
construction, validity, interpretation and performance of this Interest shall be governed by, the internal laws of the State of Utah,
without giving effect to any choice of law or conflict of law provision or rule (whether of the State of Utah or any other jurisdiction)
that would cause the application of the laws of any jurisdiction other than the State of Utah. The provisions set forth in the Purchase
Agreement to determine the proper venue for any disputes are incorporated herein by this reference.

 

    3

     

    

  

9.           
 Arbitration of Disputes. By its acceptance of this Interest, each party agrees to be bound by the Arbitration Provisions
(as defined in the Purchase Agreement) set forth in the Purchase Agreement.

 

10.          
Cancellation. After repayment of the entire Royalty Repayment Amount, this Interest shall be deemed paid in full, shall
automatically be deemed canceled, and shall not be reissued.

 

11.           
Amendments. The prior written consent of both parties hereto shall be required for any change or amendment to this Interest.

 

12.           
Assignments. Company may not assign this Interest without the prior written consent of Investor. This Interest may not be
offered, sold, assigned or transferred by Investor without the prior written consent of Company, which consent shall not be unreasonably
withheld.

 

13.          
Time is of the Essence. Time is expressly made of the essence with respect to each and every provision of this Interest
and the documents and instruments entered into in connection herewith.

 

14.           
Notices. Whenever notice is required to be given under this Interest, unless otherwise provided herein, such notice shall
be given in accordance with the subsection of the Purchase Agreement titled “Notices.”

 

15.           
Liquidated Damages. Investor and Company agree that in the event Company fails to comply with any of the terms or provisions
of this Interest, Investor’s damages would be uncertain and difficult (if not impossible) to accurately estimate because of the
parties’ inability to predict future interest rates, future share prices, future trading volumes and other relevant factors. Accordingly,
Investor and Company agree that any fees, balance adjustments, Default Interest or other charges assessed under this Interest are not
penalties but instead are intended by the parties to be, and shall be deemed, liquidated damages.

 

16.           
Waiver of Jury Trial. EACH OF INVESTOR AND COMPANY IRREVOCABLY WAIVES ANY AND ALL RIGHTS SUCH PARTY MAY HAVE TO DEMAND THAT
ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR IN ANY WAY RELATED TO THIS INTEREST OR THE RELATIONSHIPS OF THE PARTIES HERETO
BE TRIED BY JURY. THIS WAIVER EXTENDS TO ANY AND ALL RIGHTS TO DEMAND A TRIAL BY JURY ARISING UNDER COMMON LAW OR ANY APPLICABLE STATUTE,
LAW, RULE OR REGULATION. FURTHER, EACH PARTY HERETO ACKNOWLEDGES THAT SUCH PARTY IS KNOWINGLY AND VOLUNTARILY WAIVING SUCH PARTY’S
RIGHT TO DEMAND TRIAL BY JURY.

 

17.          
Voluntary Agreement. Company has carefully read this Interest and has asked any questions needed for Company to understand
the terms, consequences and binding effect of this Interest and fully understand them. Company has had the opportunity to seek the advice
of an attorney of Company’s choosing, or has waived the right to do so, and is executing this Interest voluntarily and without any
duress or undue influence by Investor or anyone else.

 

18.          
Severability. If any part of this Interest is construed to be in violation of any law, such part shall be modified to achieve
the objective of Company and Investor to the fullest extent permitted by law and the balance of this Interest shall remain in full force
and effect.

 

[Remainder of page intentionally left blank;
signature page follows]

 

    4

     

    

 

IN WITNESS WHEREOF, Company
has caused this Interest to be duly executed as of the Effective Date.

 

	 	COMPANY:
	 	 
	 	Jaguar Health, Inc.
	 	 
	 	By:	/s/ Lisa Conte
	 	Name: 	Lisa Conte
	 	Title: 	President and CEO

  

ACKNOWLEDGED, ACCEPTED AND AGREED:

 

INVESTOR:

 

Streeterville
Capital, LLC

  

	By:	 /s/ John M. Fife	 
	 	John M. Fife, President	 

 

[Signature Page to Royalty
Interest]

 

     

     

    

 

ATTACHMENT 1

DEFINITIONS

 

For purposes of this
Interest, the following terms shall have the following meanings:

 

A1.             
“Business Day” means any day other than a Saturday, Sunday or any day on which banks located in the State of
California or Utah are authorized or obligated to close.

 

A2.             
“Common Stock” means the Company’s voting common stock, par value $0.0001 per share.

 

A3.             
“Default Effect” means multiplying the Royalty Repayment Amount as of the date the applicable Event of Default
occurred by 15%.

 

A4.             
“Exchange Amount” means the amount of the Royalty Interest that Company desires to exchange for Exchange Shares.

 

A5.             
“Exchange Cap” means the maximum number of Exchange Shares that could be issued to Investor without violating
The Nasdaq Capital Market rules related to the aggregation of offerings under Nasdaq Listing Rule 5635(d), if applicable.

 

A6.             
“Exchange Conditions” means: (a) with respect to the applicable Exchange Date all of the Exchange Shares would
be (i) registered for trading under applicable federal and state securities laws, (ii) freely tradable under Rule 144, or (iii) otherwise
freely tradable without the need for registration under any applicable federal or state securities laws; (b) the applicable Exchange Shares
would be eligible for immediate resale by Investor; (c) no Event of Default shall have occurred under the Royalty Interest; (d) if Company’s
Common Stock is trading on OTCQB or OTCQX, the Exchange Amount is less than or equal to twenty-five percent (25%) of the median daily
dollar trading volume of Company’s Common Stock during the ten (10) Trading Days preceding the Exchange Date; and (e) the Common
Stock is trading on Nasdaq, NYSE, OTCQB or OTCQX.

 

A7.             
“Exchange Date” means the date that an Exchange Notice is submitted by Company to Investor.

 

A8.             
“Exchange Notice” means a notice delivered by Company to Investor specifying the Exchange Amount to be exchanged
and the number of Exchange Shares to be issued.

 

A9.             
“Exchange Shares” means the number of shares of Company’s Common Stock to be issued pursuant to an applicable
Exchange Notice.

 

A10.           “Fundamental
Transaction” means that, except in connection with the transactions contemplated by the Merger Agreement and the S-4
Transactions, (a) (i) Company shall, directly or indirectly, in one or more related transactions, consolidate or merge with or
into (whether or not Company or any of its subsidiaries is the surviving corporation) any other person or entity, or
(ii) Company shall, directly or indirectly, in one or more related transactions, sell, lease, license, assign, transfer, convey
or otherwise dispose of all or substantially all of its respective properties or assets to any other person or entity, or
(iii) Company or any of its subsidiaries shall, directly or indirectly, in one or more related transactions, allow any other
person or entity to make a purchase, tender or exchange offer that is accepted by the holders of more than 50% of the outstanding
shares of voting stock of Company (not including any shares of voting stock of Company held by the person or persons making or party
to, or associated or affiliated with the persons or entities making or party to, such purchase, tender or exchange offer), or
(iv) Company shall, directly or indirectly, in one or more related transactions, consummate a stock or share purchase agreement
or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement)
with any other person or entity whereby such other person or entity acquires more than 50% of the outstanding shares of voting stock
of Company (not including any shares of voting stock of Company held by the other persons or entities making or party to, or
associated or affiliated with the other persons or entities making or party to, such stock or share purchase agreement or other
business combination), or (v) Company shall, directly or indirectly, in one or more related transactions, reorganize,
recapitalize or reclassify the Common Stock, other than an increase in the number of authorized shares of Company’s Common
Stock, or (b)  any “person” or “group” (as these terms are used for purposes of Sections 13(d) and
14(d) of the 1934 Act and the rules and regulations promulgated thereunder) is or shall become the “beneficial owner”
(as defined in Rule 13d-3 under the 1934 Act), directly or indirectly, of 50% of the aggregate ordinary voting power
represented by issued and outstanding voting stock of Company. Notwithstanding the foregoing, a Fundamental Transaction shall not
include any transaction where Company, directly or indirectly, in one or more related transactions, including, without limitation,
business development transactions entered into for the purpose of licensing any or all of Company’s technology or products,
consummates a stock or share purchase agreement or other business combination (including, without limitation, a reorganization,
recapitalization, spin-off or scheme of arrangement) with any other person or entity whereby such other person or entity acquires
more than 50% of the outstanding shares of voting stock of Company if such person or entity agrees to a non-disturb of the terms of
this Interest and such person or entity has the ability to fulfill the obligations of this Interest.

  

    Attachment 1 to Royalty Interest, Page 1

     

    

 

A11.          
“Included Products” means the pharmaceutical drug known as Crofelemer, including any improvements or modifications
thereto and any follow-on products, owned or controlled by Company, including Lechlemer for any indications that could cannibalize Crofelemer
indications or any other chronic indication. For the avoidance of doubt, the Included Products shall include without limitation any future
indications for which Crofelemer is approved, such as cancer therapy-related diarrhea and irritable bowel syndrome. The Included Products
shall cover all global sales related to the above.

 

A12.          
“Merger Agreement” means the Agreement and Plan of Merger, dated March 31, 2017, by and among Napo Pharmaceuticals,
Inc., a Delaware corporation, Company and Napo Acquisition Corporation, a Delaware corporation, as amended.

 

A13.          
“Nasdaq Minimum Price” means such term as defined in Nasdaq Listing Rule 5635(d).

 

A14.          
“Net Sales” means, with respect to any given period, the gross amount invoiced for the sale of the Included
Products to unaffiliated third parties (other than sublicensees) (the “Invoiced Sales”) less deductions for:

 

14.1.          
normal and customary trade, quantity and cash discounts and sales returns and allowances, including (i) those granted on account
of price adjustments, billing errors, rejected goods, damaged goods and returns, (ii) administrative and other fees and reimbursements
and similar payments to wholesalers and other distributors, buying groups, pharmacy benefit management organizations, health care insurance
carriers and other institutions, (iii) allowances, rebates and fees paid to distributors, and (iv) chargebacks;

 

14.2.          
freight, postage, shipping and insurance expenses to the extent that such items are included in the Invoiced Sales;

 

14.3.          
customs and excise duties and other duties related to the sales to the extent that such items are included in the Invoiced Sales;

 

14.4.          
rebates and similar payments made with respect to sales paid for by any governmental or regulatory authority such as, by way of
illustration and not in limitation of the parties’ rights hereunder Federal or state Medicaid, Medicare or similar state program
or equivalent foreign governmental program;

 

14.5.          
sales and other taxes and duties directly related to the sale or delivery of Included Products (but not including taxes assessed
against the income derived from such sale);

 

14.6.          
any other similar and customary deductions that are consistent with GAAP, or in the case of non-United States sales, other applicable
accounting standards;

 

14.7.          
distribution expenses to the extent that such items are included in the Invoiced Sales; and

 

14.8.          
any such invoiced amounts that are not collected by Company or its affiliates.

 

For purposes of determining
Net Sales, the Included Products shall be deemed to be sold when invoiced and a “sale” shall not include transfers or dispositions
for charitable, promotional, pre-clinical, clinical, regulatory or governmental purposes to the extent no amount is received by Company,
its affiliates, or sublicensees in connection therewith.

 

For purposes of calculating
Net Sales, sales between or among Company, its affiliates and its sublicensees shall be excluded from the computation of Net Sales, but
sales by Company, its affiliates or its sublicensees to third parties (other than sublicensees) shall be included in the computation of
Net Sales; provided, however, royalties received from sales made by third party licensees will not be considered Net Sales.

 

A15.          
“Other Agreements” means, collectively, (a) all existing and future agreements and instruments between, among
or by Company (or an affiliate), on the one hand, and Investor (or an affiliate), on the other hand, and (b) any financing agreement or
a material agreement that affects Company’s ongoing business operations.

 

A16.          
“Payment Start Date” means January 1, 2024.

 

    Attachment 1 to Royalty Interest, Page 2

     

    

  

A17.          
 “Purchase Price Date” means the date the Purchase Price (as defined in the Purchase Agreement) is delivered
by Investor to Company.

 

A18.          
“S-4 Transactions” means any and all transactions individually or in the aggregate and documents and agreements
referenced and/or filed as exhibits as disclosed or contemplated in that certain Form S-4 Registration Statement relating to Company and
filed with the United States Securities and Exchange Commission on April 18, 2017, as amended, modified or supplemented from time to time.

  

    Attachment 1 to Royalty Interest, Page 3

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