Document:

EX-10.2

 Exhibit 10.2 

PERFORMANCE STOCK UNIT AWARD AGREEMENT 

Pursuant to the 

FINANCIAL INSTITUTIONS, INC. 

2015 LONG-TERM INCENTIVE PLAN 
  

			
	 Name of Participant:
	 	
		
	Date of Grant:	 	
		
	Number of Restricted Stock Units:	 	
		
	Service Period:	 	The three-year period beginning on [DATE] and ending on [DATE]
		
	Earned RSUs and Vesting Schedule:	 	The Number of Restricted Stock Units set forth above shall become Earned RSUs in accordance with the terms of this Agreement and based on the achievement of the applicable Performance Goal(s) during the applicable Performance
Period(s) in accordance with Exhibit A.

 This PERFORMANCE STOCK UNIT AWARD AGREEMENT (this “Agreement”), dated as of [DATE], is made
between Financial Institutions, Inc. (the “Company”) and the above-named individual (the “Participant”) to record the grant to the Participant of a Performance Stock Unit Award (the “Award”) on the Date of Grant set
forth above pursuant to Section 6.5 and Section 6.6 of the Financial Institutions, Inc. 2015 Long-Term Incentive Plan (the “Plan”). The Award is intended to qualify as “performance-based compensation” under Code Section 162(m),
and will be interpreted and administered accordingly. Capitalized terms not defined in this Agreement shall have the meaning given to such terms under the Plan. 

The Company and the Participant hereby agree as follows: 

Section 1. Grant of Restricted Stock Units. The Company hereby grants to the Participant, as of the Date of Grant,
subject to and in accordance with the terms and conditions of the Plan and this Agreement, a Performance Stock Unit Award for the Number of Restricted Stock Units set forth above (the “Restricted Stock Units”). 

Section 2. Achievement and Vesting of Restricted Stock Units. Subject to Section 4 below, and the achievement
of the applicable Performance Goal(s) during the applicable Performance Period (both as set forth on Exhibit A), provided that the Participant provides substantial services and remains in continuous employment with the Company or a Subsidiary
through the end of the Service Period set forth above, the Earned RSUs shall vest on the last day of the Service Period. Except as otherwise provided by Section 4 below, if the Participant ceases to provide substantial services or remain in
continuous employment with the Company or a Subsidiary for any reason before the completion of the Service Period, the unvested Restricted Stock Units shall be immediately forfeited. Notwithstanding the foregoing, before the Award will be
earned and paid, the Committee must determine and certify in accordance with the requirements of Code Section 162(m) that the Performance Goal(s) and other material terms of the Award have been satisfied, and if applicable, the level of performance
achieved. 
 Section 3. Timing and Form of Payout. Except as otherwise provided by Section 4 below and subject to Section 8
below, within 90 days following the last day of the Service Period (the “Payment Date”), the vested Earned RSUs shall be paid to the Participant by the Company delivering to the Participant a number of shares of Common Stock equal to the
number of vested Earned RSUs as of the Payment Date. The Company may issue the shares of Common Stock either (a) in certificate form or (b) in book entry form, registered in the name of the Participant. Notwithstanding anything herein to the
contrary, the Company shall have no obligation to issue shares of Common Stock in payment of the Earned RSUs unless such issuance and such payment shall comply with all relevant provisions of law and the requirements of any Stock Exchange on which
the shares of Common Stock are traded. 

 Section 4. Effects of Certain Events. 

 

	 	(a)	Change in Control. Subject to the terms of the Plan, if prior to the completion of the Service Period set forth above there is a Change in Control: 

 

	 	(i)	if Replacement Awards are not provided to the Participant to replace unvested Restricted Stock Units, then the number of the Participant’s Earned RSUs shall be determined at the target level of performance, and
such Earned RSUs shall vest as of such date. If the Change in Control qualifies as a “change in control” for purposes of Code Section 409A, then subject to Section 8 below, such vested Earned RSUs shall be paid to the Participant within 90
days following the Change in Control. Otherwise such vested Earned RSUs shall be paid at the time specified under Section 3 above. 

  

	 	(ii)	if Replacement Awards are provided to the Participant to replace unvested Restricted Stock Units, then in the event of the Participant’s Involuntary Termination during the period of two (2) years immediately
following the Change in Control, the number of Earned Shares under such Replacement Awards shall be determined at the target level of performance, and such Earned RSUs shall vest as of the date of the Involuntary Termination, and subject to Section
8 below, shall be paid to the Participant within 90 days following the Involuntary Termination. 

  

	 	(b)	Death or Disability. If during the Service Period, the Participant’s employment with the Company or a Subsidiary terminates due to death or Disability, then the number of the Participant’s Earned RSUs
shall be determined at the target level of performance, and such Earned RSUs shall vest as of such date, and subject to Section 8 below, shall be paid to the Participant or the Participant’s legal representative in the event of the Disability
of the Participant, or in the event of the death of the Participant, to the legal representative of the Participant’s estate, or if no legal representative has been appointed, to the successor in interest determined under the Participant’s
will, on a pro-rata basis within 90 days following the Participant’s termination of employment due to death or Disability. Unless Exhibit A provides otherwise, the pro-rata portion of the Earned RSUs shall be determined in accordance with
Section 4(d) below. 

  

	 	(c)	Retirement. If a Participant terminates employment during the Service Period due to Retirement, then the Award shall continue and a pro-rata number of Earned RSUs shall vest and be paid at the time and form of
payment specified by Section 2 and Section 3 above, respectively, based on actual performance through the end of the applicable Performance Period. Unless Exhibit A provides otherwise, the pro-rata portion of the Earned RSUs shall be determined in
accordance with Section 4(d) below. “Retirement” shall mean the resignation or voluntary termination of employment after attainment of age 65 and ten or more years of service with the Company or a Subsidiary. 

 

	 	(d)	Determination of Pro-Rata Portion. Unless Exhibit A provides otherwise, in the event of the death, Disability or a Retirement of a Participant, the pro-rata portion of the Earned RSUs under Section 4(b) or
Section 4(c), as applicable, shall be determined separately for each portion of the Award that is subject to a separate Performance Goal based on the Performance Period for the portion of the Award that is subject to that separate Performance Goal.
In the event of a Participant’s death, Disability or Retirement prior to the completion of the applicable Performance Period for a portion of the Award that is subject to a given Performance Goal, the pro-rata portion of the Earned RSUs for
such portion of the Award shall be determined by multiplying the Earned RSUs for such portion of the Award by a fraction, the numerator of which is the number of completed months in the Performance Period during which the Participant was employed by
the Company or a Subsidiary, and the denominator of which is the total number of months in the Performance Period for that portion of the Award. In the event of a Participant’s Retirement after the completion of the applicable Performance
Period for a portion of the Award that is subject to a given Performance Goal, the pro-rata portion of the Earned RSUs for such portion of the Award shall be the full number of Earned RSUs for that portion of the Award. 

Section 5. Dividend Equivalents. No dividend equivalents shall accrue or be paid to the Participant with
respect to any Restricted Stock Units. 
 Section 6. Rights as Shareholder. In addition to the transfer and
other restrictions set forth elsewhere in this Agreement and in the Plan, the Participant, as holder of the Restricted Stock Units, shall not possess any rights of a holder 

  
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of Common Stock (including voting and dividend rights) with respect to the shares of Common Stock underlying such Restricted Stock Unit Award until such time as the Restricted Stock Unit Award
vests, is paid and the shares of Common Stock are issued to the holder of the Restricted Stock Unit Award. 

Section 7. No Transferability. The Restricted Stock Units may not be sold, transferred, pledged, assigned,
encumbered, or otherwise alienated or hypothecated other than by will or the laws of descent and distribution. Earned RSUs shall be payable only to the Participant during the Participant’s lifetime, or in the event of the Disability of the
Participant, to the Participant or the legal representative of the Participant, or in the event of the death of the Participant, to the legal representative of the Participant’s estate, or if no legal representative has been appointed to the
successor in interest determined under the Participant’s will. 
 Section 8. Withholding Taxes. As a
condition of and prior to the payout of any Restricted Stock Units, the Company shall be entitled to require the Participant to remit to the Company an amount sufficient to satisfy the amount of any federal, state, or local taxes required to be
withheld with respect to the vesting and payout of the Earned RSUs, or any other taxable event related thereto. The Committee may permit the Participant to make such payment in any form or manner authorized by the Committee in its sole
discretion, including, but not limited to one or more of the forms specified below: 
  

	 	(a)	U.S. dollars by personal check, bank draft, or money order payable to the Company, by money transfer or direct account debits; 

  

	 	(b)	Delivery to the Company of a number of shares of Common Stock having an aggregate fair market value of not less than the minimum tax withholding required for the Award; 

 

	 	(c)	Involvement of a stockbroker in accordance with the federal margin rules set forth in Regulation T; 

  

	 	(d)	A cashless exercise if and to the extent permissible by applicable law; or 

  

	 	(e)	Any combination of the above forms and methods. 

 In the event the Participant fails to provide timely payment
of all sums required by the Company pursuant to this Section 8, the Company shall have the right and option, but not obligation, to treat such failure as an election by the Participant to provide all or any portion of such required payment by means
of tendering vested shares of Common Stock. 
 In the event that the Participant becomes subject to federal, state or local taxes (e.g., social security or
Medicare tax) on the Restricted Stock Units before the date that the Restricted Stock Units are paid, the Company shall accelerate the vesting and payment of, and shall withhold the number of shares of Common Stock underlying the Restricted Stock
Units (based on the Fair Market Value on the date that the Restricted Stock Units become subject to such taxes) necessary to satisfy the minimum amount of the taxes required to be withheld, including the payment of any federal, state or local taxes
(e.g., federal and state income taxes) on the withheld shares pursuant to this paragraph. 
 Section 9.
Adjustments. As provided by the Plan, in the event of any increase or decrease in the number of issued shares of Common Stock resulting from a stock split, stock dividend, combination or exchange of shares, exchange for other securities,
reclassification, reorganization, recapitalization, or any other increase or decrease in the number of outstanding shares of Common Stock effected without consideration to the Company, the specified number of Restricted Stock Units shall be
proportionately adjusted to prevent dilution or enlargement of the rights granted to, or available for, the Participant hereunder. Furthermore, if and to the extent permissible for purposes of the “performance-based compensation” exception
under Code Section 162(m), the Committee shall adjust the Performance Goal(s) to the extent (if any) it determines that the adjustment is necessary or advisable to preserve the intended incentives and benefits to reflect any material change in
corporate capitalization, any material corporate transaction (such as a reorganization, combination, separation, merger, acquisition, or any combination of the foregoing), or any complete or partial liquidation of the Company, or any other similar
special circumstances, including the issuance of a significant number of shares of Common Stock. 
 Section 10. No
Employment Rights. Nothing in the Plan or this Agreement confers upon the Participant any right with respect to continuance of employment by the Company or any of its Subsidiaries, or affects the right of the Company or any of its Subsidiaries
may have to terminate the Participant’s employment at any time. 

  
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 Section 11. Coordination with Plan. The Participant hereby
acknowledges receipt of a copy of the Plan and agrees to be bound by all of the terms and provisions thereof including any that may conflict with those contained in this Agreement. 

Section 12. Notices. All notices to the Company shall be in writing and sent to the Company’s Director of Human
Resources at the Company’s offices. Notices to the Participant shall be addressed to the Participant at the Participant’s address as it appears on the Company’s records. 

Section 13. Amendment. The Company may alter, amend or terminate this Agreement only with the Participant’s
consent, except as otherwise expressly provided by the Plan or this Agreement. 
 Section 14. Governing
Law. This Agreement shall be governed by the laws of the State of New York to the extent not preempted by federal law, without reference to principles of conflict of laws, and construed accordingly. 

Section 15. Compensation Recovery Policy. Notwithstanding any other provision of this Agreement to the contrary, any Restricted Stock
Units granted and/or shares of Common Stock issued hereunder, and/or any amount received with respect to any sale of any such shares of Common Stock, shall be subject to potential cancellation, recoupment, rescission, payback or other action in
accordance with the terms of the Company’s compensation recovery policy, if any, or any similar policy that the Company may adopt from time to time (the “Policy”). The Participant agrees and consents to the Company’s application,
implementation and enforcement of (i) the Policy that may apply to the Participant and (ii) any provision of applicable law relating to cancellation, rescission, payback or recoupment of compensation, including, but not limited to Section 10D of the
Exchange Act, and expressly agrees that the Company may take such actions as are necessary to effectuate the Policy or applicable law without further consent or action being required by the Participant. To the extent that the terms of this
Agreement and the Policy or any similar policy conflict, then the terms of such policy shall prevail. 
 Section 16. Excise Tax Cap.
In the event that a Participant becomes entitled to any payment or benefit under this Agreement (such benefits together with any other payments or benefits payable to the Participant under any other agreement with the Participant, or plan or policy
of the Company, are referred to in the aggregate as the “Total Payments”), if all or any part of the Total Payments will be subject to the tax imposed by Code Section 4999, or any similar tax that may hereafter be imposed (the “Excise
Tax”), then: 
  

	 	(a)	Within 30 days following the Participant’s termination of employment, the Company will notify the Participant in writing: (1) whether the payments and benefits under this Agreement, when added to any other payments
and benefits making up the Total Payments, exceed an amount equal to 299% of the Participant’s “base amount” as defined in Code Section 280G(b)(3) (the “299% Amount”); and (2) the amount that is equal to the 299%
Amount. 

  

	 	(b)	The payments and benefits under this Agreement shall be reduced such that the Total Payments do not exceed the 299% Amount, so that no portion of the payments and benefits under this Agreement will be subject to the
Excise Tax. Any payment or benefit so reduced will be permanently forfeited and will not be paid to the Participant. 

  

	 	(c)	The calculation of the 299% Amount and the determination of how much the Participant’s payments and benefits must be reduced in order to avoid application of the Excise Tax will be made by the Company’s public
accounting firm prior to the Participant’s termination of employment, which firm must be reasonably acceptable to the Participant (the “Accounting Firm”). The Company will cause the Accounting Firm to provide detailed supporting
calculations of its determinations to the Company and the Participant. Notice must be given to the Accounting Firm within 15 business days after an event entitling the Participant to a payment under this Agreement. All fees and expenses of the
Accounting Firm will be borne solely by the Company. 

  

	 	(d)	For purposes of making the reduction of amounts payable under this Agreement, such amounts will be eliminated in compliance with the requirements of Code Section 409A, to the extent applicable. 

Section 17. Section 409A. This Agreement and the Restricted Stock Units hereunder are intended to comply with Code
Section 409A, and this Agreement shall be administered and interpreted consistent with such intention. Notwithstanding the foregoing, the Company makes no representations to the Participant regarding the taxation of the

  
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Restricted Stock Units under this Agreement, including, but not limited to, the tax effects of Code Section 409A, and the Participant shall be solely responsible for the taxes imposed upon him or
her with respect to the Restricted Stock Units. References to “termination of employment” and similar terms used in this Agreement mean, to the extent necessary to comply with Code Section 409A, the date that the Participant first
incurs a “separation from service” within the meaning of Code Section 409A. Notwithstanding anything in this Agreement to the contrary, if at the time of the Participant’s separation from service, the Participant is a “specified
employee” for purposes of Code Section 409A, and payment under this Agreement as a result of such separation from service is required by Code Section 409A to be delayed by six months, then the Company shall make such payment on the day
following the six-month anniversary of the Participant’s separation from service to the extent required to comply with Code Section 409A. 

IN WITNESS WHEREOF, the Company and the Participant have caused this Agreement to be executed on the date set forth opposite their respective
signatures, but effective as of the Date of Grant. 
  

											
	Dated:   	 	  
	 		 	For the Company:	 	
						
		 		 		 	By:	 	  
	 	
						
		 		 		 	Name:   	 	  
	 	
						
		 		 		 	Title:	 	  
	 	
					
	Dated:   	 	  
	 		 	PARTICIPANT:	 	
						
		 		 		 	By:	 	  
	 	
						
		 		 		 	Name:   	 	  
	 	

  
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 EXHIBIT A 

PERFORMANCE PERIOD AND PERFORMANCE GOALS 

Performance Period 
 The
three-year period beginning on January 1, [YEAR] and ending on December 31, [YEAR]. 
 Performance Goals 

XXX 
 Definitions. 

XXX 
 Pro-Ration of Earned RSUs

 XXX 

  
 6EX-10.1

 Exhibit 10.1 

CONSULTING AGREEMENT 
 This Consulting
Agreement (the “Agreement”) is made effective as of May 4, 2016 (the “Effective Date”), by and between GI Dynamics, Inc. a Delaware corporation, with its principal place of business being 25 Hartwell Avenue, Lexington, MA
02421 (the “Company”) and Danforth Advisors, LLC, a Massachusetts limited liability corporation, with its principal place of business being 91 Middle Road, Southborough, MA 01772 (“Danforth”). The Company and Danforth are herein
sometimes referred to individually as a “Party” and collectively as the “Parties.” 
 WHEREAS, the Company possesses
know-how and proprietary technology related to endoscopically delivered device therapy for the treatment of metabolic disorders like diabetes; and 

WHEREAS, Danforth has expertise in financial and corporate operations and strategy; and 

WHEREAS, Danforth desires to serve as an independent consultant for the purpose of providing the Company with certain strategic and financial
advice and support services, as more fully described in Exhibit A attached hereto, (the “Services”); and 
 WHEREAS, the
Company wishes to engage Danforth on the terms and conditions set forth herein. 
 NOW THEREFORE, in consideration of the foregoing and for
other good and valuable consideration, the receipt of which are hereby acknowledged, the Parties agree and covenant as follows. 
  

	1.	Services of Consultant. Danforth will assist the Company with matters relating to the Services. The Services are more fully described in Exhibit A attached hereto. Danforth and the Company will review the
Services on a monthly basis to prioritize and implement the tasks listed on Exhibit A. 

  

	2.	Compensation for Services. In full consideration of Danforth’s full, prompt and faithful performance of the Services, the Company shall compensate Danforth a consulting fee more fully described in Exhibit
A (the “Consulting Fee”). Danforth shall, from time to time, but not more frequently than twice per calendar month, invoice the Company for Services rendered, and such invoice will be paid upon fifteen (15) days of receipt. Each
month the Parties shall evaluate jointly the current fee structure and scope of Services. Danforth reserves the right to an annual increase in consultant rates of up to 4%, effective January 1 of each year. Upon termination of this Agreement
pursuant to Section 3, no compensation or benefits of any kind as described in this Section 2 shall be payable or issuable to Danforth after the effective date of such termination. In addition, the Company will reimburse Danforth for
reasonable out-of-pocket business expenses, including but not limited to travel and parking, incurred by Danforth in performing the Services hereunder, upon submission by Danforth of supporting documentation reasonably acceptable to the Company. Any
such accrued expenses in any given three (3) month period that exceed one thousand dollars ($1,000) shall be submitted to the Company for its prior written approval. 

  
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 All Danforth invoices and billing matters should be addressed to: 

 

			
	 Company Accounts Payable Contact:
	  	GI Dynamics, Inc.
		  	25 Hartwell Avenue
		  	Lexington, MA 02421
		  	Attention: Accounts Payable
		  	ap@gidynamics.com

 All Company payments and billing inquiries should be addressed to: 

 

			
	 Danforth Accounting:
	  	Betsy Sherr
		  	bsherr@danforthadvisors.com
		  	(508) 277-0031
		  	Danforth Advisors
		  	PO Box 335
		  	Southborough, MA 01772

  

	3.	Term and Termination. The term of this Agreement will commence on the Effective Date and will continue through the anniversary of such date in the next calendar year (the “Term”). This Agreement may be
extended for an additional period by mutual written agreement. This Agreement may be terminated by either Party hereto: (a) with Cause (as defined below), upon thirty (30) days prior written notice to the other Party; or (b) without
cause upon sixty (60) days prior written notice to the other Party. For purposes of this Section 3, “Cause” shall include: (i) a breach of the terms of this Agreement which is not cured within thirty (30) days of
written notice of such default or (ii) the commission of any act of fraud, embezzlement or deliberate disregard of a rule or policy of the Company. 

  

	4.	Time Commitment. Danforth will devote such time to perform the Services under this Agreement as may reasonably be required. 

  

	5.	Place of Performance. Danforth will perform the Services at such locations upon which the Company and Danforth may mutually agree. Danforth will not, without the prior written consent of the Company, perform any
of the Services at any facility or in any manner that might give anyone other than the Company any rights to or allow for disclosure of any Confidential Information (as defined below). 

 

	6.	Compliance with Policies and Guidelines. Danforth will perform the Services in accordance with all rules or policies adopted by the Company that the Company discloses in writing to Danforth. 

 

	7.	 Confidential Information. Danforth acknowledges and agrees that during the course of performing the
Services, the Company may furnish, disclose or make available to 

  
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Danforth information, including, but not limited to, material, compilations, data, formulae, models, patent disclosures, procedures, processes, business plans, projections, protocols, results of
experimentation and testing, specifications, strategies and techniques, and all tangible and intangible embodiments thereof of any kind whatsoever (including, but not limited to, any apparatus, biological or chemical materials, animals, cells,
compositions, documents, drawings, machinery, patent applications, records and reports), which is owned or controlled by the Company and is marked or designated as confidential at the time of disclosure or is of a type that is customarily considered
to be confidential information (collectively the “Confidential Information”). Danforth acknowledges that the Confidential Information or any part thereof is the exclusive property of the Company, shall not be used for any purpose other
than providing the Services to the Company hereunder and shall not be disclosed to any third party without first obtaining the written consent of the Company. Danforth further agrees to take all practical steps to ensure that the Confidential
Information, and any part thereof, shall not be disclosed or issued to its affiliates, agents or employees, except on like terms of confidentiality, and shall be responsible for such person’s compliance with the terms of this Agreement. The
above provisions regarding confidentiality and non-use shall survive for a period of five (5) years following any termination or expiration of this Agreement. 

 

	8.	 Intellectual Property. Danforth agrees that all ideas, inventions, discoveries, creations, manuscripts,
properties, innovations, improvements, know-how, inventions, designs, developments, apparatus, techniques, methods, and formulae that Danforth conceives, makes, develops or improves as a result of performing
the Services, whether or not reduced to practice and whether or not patentable, alone or in conjunction with any other party and whether or not at the request or upon the suggestion of the Company (all of the foregoing being hereinafter collectively
referred to as the “Inventions”), shall be the sole and exclusive property of the Company. Without limiting the foregoing, Danforth also acknowledges that all original works of authorship which are made by Danforth (solely or jointly with
others) within the scope of the Services hereunder or which relate to the business of the Company and which are protectable by copyright are “works made for hire” pursuant to the United States Copyright Act (17 U.S.C. Section 101).
Danforth hereby assigns to the Company all of Danforth’s right, title and interest in and to all such Inventions and original works of authorship and hereby agrees to maintain and furnish to the Company complete and current records of all such
Inventions and original works of authorship and disclose to the Company in writing any such Inventions. Danforth hereby agrees that Danforth shall fully cooperate with the Company, its attorneys and agents, at the Company’s expense, in the
preparation and filing of all papers and other documents as may be required to perfect and protect the Company’s rights in and to any such Inventions and original works of authorship. In the event that Danforth is requested in any proceeding to
disclose any Confidential Information, Danforth shall give the Company prompt notice of such request so that the Company may seek an appropriate protective order. If, in the absence of a protective order, Danforth is nonetheless compelled by order
or subpoena of any court or tribunal of competent jurisdiction to disclose Confidential Information, Danforth may disclose such information without liability hereunder; provided, however, that Danforth shall give the Company notice of
the Confidential Information to be disclosed as far in advance of its disclosure as is 

  
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practicable and uses its reasonable best efforts to obtain assurances that confidential treatment shall be accorded to such Confidential Information. Danforth hereby agrees in consideration of
the Company’s agreement to engage Danforth and pay compensation for the Services rendered to the Company and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged that Danforth shall not,
without the prior written consent of the Company, directly or indirectly, consult for, or become an employee of, any company which conducts business in the Field of Interest anywhere in the world. As used herein, the term “Field of
Interest” shall mean the research, development, manufacture and/or sale of the products resulting from the Company’s technology. The limitations on competition contained in this Section 8 shall continue during the time that Danforth
performs any Services for the Company, and for a period of three (3) months following the termination of any such Services that Danforth performs for the Company. If any part of this section should be determined by a court of competent
jurisdiction to be unreasonable in duration, geographic area, or scope, then this Section 8 is intended to and shall extend only for such period of time, in such area and with respect to such activity as is determined to be reasonable. Except
as expressly provided herein, nothing in this Agreement shall preclude Danforth from consulting for or being employed by any other person or entity. 

  

	9.	Non Solicitation. All personnel representing Danforth are contracted agents of Danforth. As such, they are obligated to provide the Services to the Company and are obligated to Danforth under confidentiality,
non-compete, and non-solicitation agreements. Accordingly, they are not retainable as employees or contractors by the Company and the Company hereby agrees not to solicit, hire or retain their services for so long as they are contracted agents of
Danforth and for two (2) years thereafter. Should the Company violate this restriction, it agrees to pay Danforth liquidated damages equal to equal to thirty percent (30%) of the employee’s starting annual base salary and target
annual bonus for each Danforth contracted agent hired by the Company in violation of this Agreement, plus Danforth’s reasonable attorneys’ fees and costs incurred in enforcing this agreement should the Company fail or refuse to pay the
liquidated damages amount in full within thirty (30) days following its violation. 

  

	10.	Placement Services. In the event that Danforth refers a potential employee to the Company and that individual is hired, Danforth shall receive a fee equal to twenty percent (20%) of the employee’s
starting annual base salary and target annual bonus. This fee is due and owing whether an individual is hired, directly or indirectly on a permanent basis or on a contract or consulting basis by the Company, as a result of Danforth’s efforts
within one (1) year of the date applicant(s) are submitted to the Company by Danforth. Such payment is due within thirty (30) days following the employee’s completion of six months of continuous employment by the Company.

  

	11.	 No Implied Warranty. Except for any express warranties stated herein, the Services are provided on an
“as is” basis, and the Company disclaims any and all other warranties, conditions, or representations (express, implied, oral or written), relating to the Services or any part thereof. Further, in performing the Services Danforth is not
engaged to disclose illegal acts, including fraud or defalcations, which may have taken place. The foregoing notwithstanding, Danforth will promptly notify the Company if Danforth 

  
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becomes aware of any such illegal acts during the performance of the Services. Because the Services do not constitute an examination in accordance with standards established by the American
Institute of Certified Public Accountants (the “AICPA”), Danforth is precluded from expressing an opinion as to whether financial statements provided by the Company are in conformity with generally accepted accounting principles or any
other standards or guidelines promulgated by the AICPA, or whether the underlying financial and other data provide a reasonable basis for the statements. 

  

	12.	Indemnification. Each Party hereto agrees to indemnify and hold the other Party hereto, its directors, officers, agents and employees harmless against any claim based upon circumstances alleged to be inconsistent
with such representations and/or warranties contained in this Agreement. Further, the Company shall indemnify and hold harmless Danforth and any of its subcontractors against any claims, losses, damages or liabilities (or actions in respect thereof)
that arise out of or are based on the Services performed hereunder, except for any such claims, losses, damages or liabilities arising out of the gross negligence or willful misconduct of Danforth or any of its subcontractors. The Company will
endeavor to add Consultant and any applicable subcontractor to its insurance policies as additional insureds. 

  

	13.	Independent Contractor; No Conflict. Danforth is not, nor shall Danforth be deemed to be at any time during the term of this Agreement, an employee of the Company, and therefore Danforth shall not be entitled to
any benefits provided by the Company to its employees, if applicable. Danforth’s status and relationship with the Company shall be that of an independent contractor and consultant. Danforth shall not state or imply, directly or indirectly, that
Danforth is empowered to bind the Company without the Company’s prior written consent. Nothing herein shall create, expressly or by implication, a partnership, joint venture or other association between the parties. Danforth will be solely
responsible for payment of all charges and taxes arising from his or her relationship to the Company as a consultant. Danforth hereby represents and warrants that (i) Danforth has no commitments or obligations inconsistent or conflicting with
this Agreement; and (ii) the performance by Danforth of the Services within the Field of Interest do not as of the Effective Date and shall not at any time during the Term conflict with, breach or violate any covenants or agreements regarding,
or otherwise overlap, any field in which Danforth is currently otherwise performing services to any third party. 

  

	14.	Records. Upon termination of Danforth’s relationship with the Company, Danforth shall deliver to the Company any property or Confidential Information of the Company relating to the Services which may be in
its possession including products, project plans, materials, memoranda, notes, records, reports, laboratory notebooks, or other documents or photocopies and any such information stored using electronic medium. 

 

	15.	Notices. Any notice under this Agreement shall be in writing (except in the case of verbal communications, emails and teleconferences updating either Party as to the status of work hereunder) and shall be deemed
delivered upon personal delivery, one day after being sent via a reputable nationwide overnight courier service or two days after deposit in the mail or on the next business day following transmittal via facsimile. Notices under this Agreement shall
be sent to the following representatives of the Parties: 

 If to the Company: 

 

			
	 Name:
	  	Scott Schorer
	 Title:
	  	Chief Executive Officer
	 Address:
	  	25 Hartwell Ave.
		  	Lexington, MA 02421
	 Phone:
	  	(774) 454-7407
	 E-mail:
	  	sschorer2@gmail.com

  
 5 

 If to Danforth: 
  

			
	 Name:
	  	Gregg Beloff
	 Title:
	  	Managing Partner
	 Address:
	  	91 Middle Road
		  	Southborough, MA 01772
	 Phone:
	  	(617) 686-7679
	 E-mail:
	  	gbeloff@danforthadvisors.com

  

	16.	Assignment and Successors. This Agreement may not be assigned by a Party without the consent of the other which consent shall not be unreasonably withheld, except that each Party may assign this Agreement and the
rights, obligations and interests of such Party, in whole or in part, to any of its Affiliates, to any purchaser of all or substantially all of its assets or to any successor corporation resulting from any merger or consolidation of such Party with
or into such corporation. 

  

	17.	Force Majeure. Neither Party shall be liable for failure of or delay in performing obligations set forth in this Agreement, and neither shall be deemed in breach of its obligations, if such failure or delay is
due to natural disasters or any causes beyond the reasonable control of either Party. In the event of such force majeure, the Party affected thereby shall use reasonable efforts to cure or overcome the same and resume performance of its obligations
hereunder. 

  

	18.	Headings. The Section headings are intended for convenience of reference only and are not intended to be a part of or to affect the meaning or interpretation of this Agreement. 

 

	19.	Integration; Severability. This Agreement is the sole agreement with respect to the subject matter hereof and shall supersede all other agreements and understandings between the Parties with respect to the same.
If any provision of this Agreement is or becomes invalid or is ruled invalid by any court of competent jurisdiction or is deemed unenforceable, it is the intention of the Parties that the remainder of the Agreement shall not be affected.

  

	20.	Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts, excluding choice of law principles. The Parties agree that any action or
proceeding arising out of or related in any way to this Agreement shall be brought solely in a Federal or State court of competent jurisdiction sitting in the Commonwealth of Massachusetts. 

  
 6 

	21.	Counterparts. This Agreement may be executed in counterparts, each of which will be deemed an original, but all of which together will constitute one agreement. 

If you are in agreement with the foregoing, please sign where indicated below, whereupon this Agreement shall become effective as of the Effective Date. 

 

													
	DANFORTH ADVISORS, LLC	 		 	GI DYNAMICS, INC.
					
	By:  	 	/s/ GREGG BELOFF	 		 	By:  	 	/s/ SCOTT SCHORER
	Print Name:	 	Gregg Beloff	 		 	Print Name:	 	Scott Schorer
	Title:  	 	Managing Director	 		 	Title:  	 	      CEO
	Date:  	 	5/4/16	 		 	Date:  	 	5/4/16

  
 7 

 EXHIBIT A 

Description of Services and Schedule of Fees 

Danforth will perform mutually agreed to finance and accounting functions which are necessary to support the management and operations of the Company, certain
of which are set forth below. 
 Senior Advisor Services: 
  

	 	•	 	Participate in longer-term strategic planning process 

  

	 	•	 	Participate in financing activities, including additional capital raises and/or debt and equity restructurings 

  

	 	•	 	Oversee the finance and accounting functions, including the Danforth engagement team 

  

	 	•	 	Board, Audit, Compensation, and Corporate Governance committee meeting preparation, support and attendance 

CFO Services: 
  

	 	•	 	Support strategic business planning 

  

	 	•	 	Support fundraising activities 

  

	 	•	 	Provide finance support for operational planning 

  

	 	•	 	Lead cost reduction planning and implementation 

  

	 	•	 	Assist with corporate and business development/licensing initiatives 

  

	 	•	 	Perform financial modeling, planning and analysis 

  

	 	•	 	Oversight and review of public company filings, financial statements, and regulatory compliance 

  

	 	•	 	Lead the Company’s annual audit 

  

	 	•	 	Support investor relations activities, as appropriate 

  

	 	•	 	Strategic opportunity assessment 

  

	 	•	 	Stock option plan management 

  

	 	•	 	Capitalization table management 

  
 8 

 Human Resources Services: 

As needed to support the growth and needs of the organization, Danforth will provide a Human Resources specialist who could provide: 

 

	 	•	 	HR audits to ensure legal compliance 

  

	 	•	 	Policy and handbook development 

  

	 	•	 	Benefit selection including establishment of 401(k) plans 

  

	 	•	 	Recruiting for key positions 

  

	 	•	 	Creation of compensation plans 

  

	 	•	 	Defining the culture of company 

  

	 	•	 	Talent evaluation 

  

	 	•	 	HR Preparation for potential liquidly events (purchase /IPO) 

 Ancillary Services: 

SEC Support Services: 
 As needed and as requested
by the Company, Danforth shall provide senior level accounting and finance support, which many include items such as management of an audit, preparation of financial statement for SEC filings, IPO readiness planning, Sarbanes-Oxley implementation,
systems implementations, etc. 
 Financial Planning & Analysis Services: 

As needed to support ongoing operations or specific strategic and/or financing initiatives, Danforth will provide an FP&A specialist to prepare budgets,
forecasts, and/or cost analyses, perform deal analyses, develop financial projections related to strategic alternatives and support investor/analyst communications, and complete other tasks consistent with financial planning and analysis activities.

 Technical Accounting Services: 
 As needed to
support the financial and regulatory strategy, Danforth will provide a technical accounting specialist to address technical accounting needs that may arise, including without limitation drafting memos to describe the treatment of complex topics such
as revenue recognition and accounting for complex debt and equity instruments. 

  
 9 

 Fees: 
  

			
	 Senior Advisor: Daniel Geffken
	  	$300/hour
	 CFO: James Murphy
	  	$275/hour
	 Human Resources: Dan Gauthier
	  	$200/hour
		
	 SEC Support:
	  	Varies
	 FP&A: Slava Burdman
	  	$185/hour
	 Technical Accounting:
	  	$275/hour

 Equity Compensation 
 On
May 2, 2016 or, if later, the date on which this Agreement is executed (the “Issue Date”), the Company will issue Danforth a common stock purchase warrant under the following terms: 

 

	 	•	 	The warrant will entitle Danforth to purchase up to 28,532 shares of the Company’s common stock 

  

	 	•	 	The warrant will have an exercise price equal to the Fair Market Value of the Company’s common stock on the Issue Date (based upon the closing price of the Company’s CDIs on the Australian Securities Exchange
on such date, after giving effect to the AUD/USD exchange rate then in effect and the 50-for-1 ratio of CDIs to shares of Common Stock). 

  

	 	•	 	The warrant shall vest on a monthly basis over two years in equal monthly increments, rounded to the nearest whole share. 

  

	 	•	 	The warrant will have a term of 5 years from the Issue Date. 

  
 10

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