Document:

Exhibit 10.17

PROMISSORY NOTE

	
$50,000.00

	
January 12, 2016

For value received, the undersigned, CLS HOLDINGS USA, INC., a Nevada corporation (the “Maker”), hereby promises to pay to the order of Jeffrey Binder (the “Holder”), at 11767 S. Dixie Highway, Suite 115, Miami, FL 33156 (or such other place(s) as Holder may designate from time to time), the principal sum of Fifty Thousand and 00/100 Dollars ($50,000.00), or such portion thereof as shall have been advanced from time to time, together with accrued and unpaid interest thereon, on the terms provided in this promissory note (this “Note”).

Interest shall accrue on the unpaid principal balance of this Note, commencing on the date that such principal was advanced, at the rate of six percent (6%) per annum, the first advance hereunder having been made on August 11, 2015.  On January 1, 2017, Maker shall pay all then accrued interest to Holder.  Commencing on April 1, 2017, Maker shall pay the outstanding principal balance on such date, in eight (8) equal quarterly installments, together with accrued interest, in arrears, and continuing on the first day of each July, October, January and April thereafter until paid in full.  All outstanding principal and any accrued unpaid interest thereon shall be due and payable on January 1, 2019 (the “Maturity Date”).  There shall be no further advances by the Holder pursuant to this Note following the initial payment of principal hereunder. Both principal and interest are payable in lawful money of the United States of America.

All amounts under this Note shall become at once due and payable, at Holder’s option, if one or more of the following events shall happen and be continuing (an “Event of Default”):  (a) failure to make any payment of principal or interest on this Note within five (5) business days after notice by Holder of such failure; (b) assignment made by the Maker for the benefit of credits or upon the appointment of a receiver, liquidator or trustee of the Maker or the admission in writing by the Maker of its inability to pay its debts generally as they become due or the adjudication of the Maker to be a bankrupt or insolvent, or the filing of any petition for the bankruptcy, reorganization or arrangement of the Maker; or (c) issuance of any tax lien warrant, process or order of attachment, garnishment or other lien and/or the filing of a lien against any property of the Maker which is not discharged within fourteen (14) days from the date of filing.  After the occurrence of an Event of Default and for so long as it shall be continuing, this Note shall bear interest at the highest rate permitted under then applicable law.

In the case that any Event of Default shall happen and be continuing, the Holder may proceed to enforce the payment of this Note or to enforce any other legal or equitable rights as such Holder may have under applicable law.

In the event Holder retains or consults an attorney to enforce the terms hereof, Holder shall be entitled to collect from the Maker all costs and expenses incurred in enforcing or preserving its rights hereunder, including, but not limited to, reasonable attorney’s fees (including those incurred in connection with judicial, bankruptcy, appellate, administrative and other proceedings).  No delay or omission by Holder in exercising any right or remedy hereunder shall operate as a waiver of any such right or remedy hereunder.  All remedies of Holder hereunder are cumulative, and no exercise by Holder of any one or more of his rights or remedies hereunder or under applicable law shall be deemed to be an election of remedies by Holder.

Upon thirty (30) days' prior notice to Holder, the Maker may prepay this Note, in whole or in part, without penalty; provided that any such prepayment will be applied first to the payment of unpaid expenses accrued under this Note, second to unpaid interest accrued on this Note, and third, if the amount of prepayment exceeds the amount of all such expenses and accrued interest, to the unpaid principal amount of this Note.

At Holder's election, at any time prior to payment or prepayment of this Note in full, all principal and accrued interest under this Note may be converted, in whole or in part, into shares of the common stock of Maker. The Holder shall receive one (1) Unit for each $0.75 converted, with each Unit consisting of one (1) share of common stock and a five-year warrant to purchase (1) share of common stock at a price of $1.00 per share.  With respect to the shares of common stock issued upon conversion and the shares of common stock underlying the warrants issued upon conversion, Maker shall grant Holder "piggyback" registration rights, which contain such terms and restrictions as Maker reasonably determines.

In the event any interest is paid on this Note which is deemed to be in excess of the then legal maximum rate, then that portion of the interest payment representing an amount in excess of the then legal maximum rate shall be deemed a payment of principal and applied against the unpaid principal amount of this Note.

The Maker hereby waives presentment for payment, demand, notice of dishonor and protest of this Note, and further agrees that this Note shall be deemed to have been made under and shall be governed by and construed in accordance with the laws of the State of Florida in all respects, including matters of construction, validity and performance, and that none of its terms or provisions may be waived, altered, modified or amended except as Holder may expressly consent thereto in a writing duly executed by an authorized representative of Holder. The federal or state courts located in Miami-Dade County, Florida, shall have exclusive jurisdiction in connection with all matters which may arise under or in connection with this Note, and the Maker shall not assert that any action brought in such forum is inconvenient and should be moved to another jurisdiction.  Venue shall be had exclusively in the state and federal courts located in Miami-Dade County, Florida, to the exclusion of all other places of venue.

The Maker agrees to pay all costs in connection with this Note, including any applicable documentary stamps. All of the terms of this Note shall inure to the benefit of the Holder and its successors and assigns and shall be binding upon the Maker and its successors and assigns.

2

IN WITNESS WHEREOF, the Maker has executed this Note as of the day and year first above written.

MAKER:

CLS HOLDINGS USA, INC.

By:          /s/ Jeffrey I. Binder                                    

Name: Jeffrey I. Binder

Title:   Chairman, President and 

Chief Executive Officer

  

 

 

 

3Exhibit 10.35

 

Execution Version

 

AMENDMENT TO AMENDED AND

RESTATED EMPLOYMENT AGREEMENT

 

This AMENDMENT TO THE
AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this “Amendment”) is made as of May 31, 2016 by Phibro Animal
Health Corporation, a Delaware corporation (the “Company”) and Gerald K. Carlson (the “Employee”).

 

WITNESSETH.

 

WHEREAS, the Company
and the Employee entered into that certain Amended and Restated Employment Agreement, dated as of March 27, 2014 (the “Employment
Agreement”); and

 

WHEREAS, the parties
hereto desire to amend the Employment Agreement as set forth herein.

 

NOW, THEREFORE, in
consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties agree as follows:

 

		1.	Section 5 of the Employment Agreement is amended by adding the following Section 5(e) to the end
thereof:

 

(e)  RETIREE
MEDICAL.  The parties acknowledge that upon termination of employment, Employee (and his eligible spouse) would be
eligible for benefits under the Company’s Retirement Health Care Plan (“Retiree Health Plan”) as such Retiree
Health Plan may be amended from time to time by the Company.  Inasmuch as the Employee and his spouse desire to waive
all rights to future benefits under the Retiree Health Plan, and, in lieu thereof, for Employee to receive a cash payment upon
Employee’s retirement from the Company, the parties have agreed that as consideration for Employee’s waiver of any
and all future benefits under the Retiree Health Plan, which waiver shall be consented to by his spouse, the Company agrees that
upon Employee’s retirement from the Company, he shall be paid a lump sum cash payment in the amount of $350,000.00; such
cash payment shall be paid as soon as practicable after the execution and delivery of the general release and the spousal release
described in section 8 of this Agreement, but in no event later than March 15th of the calendar year following the year in which
his severance from service occurs.  

 

		2.	Section 7(d) of the Employment Agreement is hereby amended by added the following Section 7(d)(vi)
before the last paragraph of Section 7(d):

 

“(vi)        a
lump sum payment of an amount equal to onethird (1/3) of Employee’s annual Base Salary, provided that such termination
must occur prior to December 31, 2016 and, in such event, such payment shall be paid as soon as practicable after the execution
and delivery of the general release described in section 8 of this Agreement by Employee, but in no event later than March 15,
2017.”

 

     

     

    

 

		3.	Section 8 of the Employment Agreement is hereby deleted in its entirety and replaced with the following:

 

8.          RELEASE.  Any
and all amounts payable and benefits or additional rights provided pursuant to this Agreement beyond the Accrued Benefits shall
only be payable if the Employee delivers to the Company and does not revoke a general release of claims in favor of the Company
reasonably satisfactory to the Company substantially in the form attached hereto as Exhibit A.  Such release shall
be executed and delivered (and no longer subject to revocation, if applicable) within sixty (60) days following termination.  Any
and all amounts payable pursuant to Section 5(e) of this Agreement shall only be payable if the Employee’s spouse delivers
to the Company and does not revoke the Spousal Consent set forth as Exhibit B to this Agreement, which Spousal Consent shall
be executed and delivered (and no longer subject to revocation, if applicable) within sixty (60) days following termination. In
no event however, may the Employee, directly or indirectly, designate the calendar year of any payment to be made under this Agreement
or otherwise which constitutes a “deferral of compensation” within the meaning of Section 409A.  In addition,
to the extent payments under this Agreement that are contingent on the Employee’s execution of the Release described in this
paragraph constitute deferred compensation for purposes of Section 409A and the Release’s execution period shall commence
in one tax year and end in the subsequent tax year, the payments under this Agreement shall be made solely in the subsequent tax
year.

 

		4.	Section 23(b)(i) of the Employment Agreement is hereby deleted in its entirety and replaced with
the following:

 

		(b)	SECTION 409A COMPLIANCE.

 

		(i)	The intent of the parties is that payments and benefits under this Agreement shall, (i) to the extent possible, be exempt from
the restrictions of Internal Revenue Code Section 409A and the regulations and guidance promulgated thereunder (collectively “Code
Section 409A”) or, (ii) to the extent no exemption from Code Section 409A is available or satisfied, then to comply with
that Code Section, and, with respect to (i) or (ii), to the maximum extent permitted, this Agreement shall be interpreted to be
either exempt from Code Section 409A as available or to be in compliance therewith.  To the extent that any provision
hereof is modified in order to be exempt from or to comply with Code Section 409A, such modification shall be made in good faith
and shall, to the maximum extent reasonably possible, maintain the original intent and economic benefit to the Employee and the
Company of the applicable provision without violating the provisions of Code Section 409A.  In no event whatsoever shall
the Company be liable for any additional tax, interest or penalty that may be imposed on the Employee by Code Section 409A or damages
for failing to comply with Code Section 409A.

 

    2 

     

    

 

		5.	Exhibit A to the Employment Agreement is hereby deleted in its entirety and replaced with Exhibit
A to this Amendment.

 

		6.	The Employment Agreement is hereby amended by the addition of Exhibit B hereto as Exhibit B to
the Employment Agreement.  

 

		7.	Except as specifically set forth herein, the Employment Agreement and all of its terms and conditions
remain in full force and effect, and the Employment Agreement is hereby ratified and confirmed in all respects, except that on
or after the date of this Amendment all references in the Employment Agreement to “this Agreement,” “hereto,”
“hereof,” “hereunder,” or words of like import shall mean the Employment Agreement as amended by this Amendment.  Capitalized
terms used and not otherwise defined herein shall have the meanings given to such terms in the Employment Agreement.

 

		8.	This Amendment may be executed in any number of counterparts, each of which shall be deemed an
original and such counterpart together shall constitute one and the same instrument.

 

		9.	This Amendment, including the validity, interpretation, construction and performance of this Amendment,
shall be governed by and construed in accordance with the laws of the State of New Jersey applicable to agreements made and to
be performed in such State, without regard to such State’s conflicts of law principles.

 

		10.	This Amendment shall be binding upon and inure to the benefit of and be enforceable by the respective
successors and assigns of the parties hereto. The Employment Agreement, as amended by this Amendment, embodies the entire agreement
and understanding between the parties hereto and supersedes all prior agreements and understandings relating to the subject matter
hereof.

 

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

 

    3 

     

    

 

SIGNATURE
PAGE TO AMENDMENT TO THE AMENDED 

AND RESTATED
EMPLOYMENT AGREEMENT

 

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

 

	 	PHIBRO ANIMAL HEALTH
    CORPORATION
	 	 
	 	By: 	/s/ Jack C. Bendheim
	 	 	Name: Jack C. Bendheim
	 	 	Title:   Chairman and Chief Executive Officer
	 	 
	 	EMPLOYEE
	 	 
	 	/s/Gerald K. Carlson
	 	Gerald K. Carlson

 

     

     

    

 

EXHIBIT A

 

GENERAL RELEASE

 

I, ________________________, in consideration of and subject
to the performance by Phibro Animal Health Corporation (together with its subsidiaries, the “Company”), of its
obligations under the Employment Agreement dated as of March 27, 2014, as amended on May 31, 2016 (the “Agreement”),
do hereby release and forever discharge as of the date hereof the Company and its respective affiliates and all present, former
and future managers, directors, officers, employees, successors and assigns of the Company and its affiliates and direct or indirect
owners (collectively, the “Released Parties”) to the extent provided below (this “General Release”).  The
Released Parties are intended to be third-party beneficiaries of this General Release, and this General Release may be enforced
by each of them in accordance with the terms hereof in respect of the rights granted to such Released Parties hereunder.  Terms
used herein but not otherwise defined shall have the meanings given to them in the Agreement.

 

1.          I
understand that any payments or benefits paid or granted to me under Sections 5(e) and 7 of the Agreement represent, in part, consideration
for signing this General Release and are not salary, wages or benefits to which I was already entitled.  I understand
and agree that I will not receive certain of the payments and benefits specified in Sections 5(e) and 7 of the Agreement unless
I execute this General Release and do not revoke this General Release within the time period permitted hereafter.  Such
payments and benefits will not be considered compensation for purposes of any employee benefit plan, program, policy or arrangement
maintained or hereafter established by the Company or its affiliates.

 

2.          Except
as provided in paragraphs 3 and 4 below and except for the provisions of the Agreement which expressly survive the termination
of my employment with the Company, I knowingly and voluntarily (for myself, my heirs, executors, administrators and assigns) release
and forever discharge the Company and the other Released Parties from any and all claims, suits, controversies, actions, causes
of action, crossclaims, counterclaims, demands, debts, compensatory damages, liquidated damages, punitive or exemplary damages,
other damages, claims for costs and attorneys’ fees, or liabilities of any nature whatsoever in law and in equity, both past
and present (through the date that this General Release becomes effective and enforceable) and whether known or unknown, suspected,
or claimed against the Company or any of the Released Parties which I, my spouse, or any of my heirs, executors, administrators
or assigns, may have, which arise out of or are connected with my employment with, or my separation or termination from, the Company
(including, but not limited to, any allegation, claim or violation, arising under: Title VII of the Civil Rights Act of 1964, as
amended; the Civil Rights Act of 1991; the Age Discrimination in Employment Act of 1967, as amended (including the Older
Workers Benefit Protection Act); the Equal Pay Act of 1963, as amended; the Americans with Disabilities Act of 1990;
the Family and Medical Leave Act of 1993; the Worker Adjustment Retraining and Notification Act; the Employee Retirement
Income Security Act of 1974; any applicable Executive Order Programs; the Fair Labor Standards Act; or their state
or local counterparts; or under any other federal, state or local civil or human rights law, or under any other local, state,
or federal law, regulation or ordinance; or under any public policy, contract or tort, or under common law; or arising
under any policies, practices or procedures of the Company; or any claim for wrongful discharge, breach of contract, infliction
of emotional distress, defamation; or any claim for costs,

 

    A-1 

     

    

 

fees, or other expenses,
including attorneys’ fees incurred in these matters) (all of the foregoing collectively referred to herein as the “Claims”).

 

3.          I
represent that I have made no assignment or transfer of any right, claim, demand, cause of action, or other matter covered by paragraph
2 above.

 

4.          I
agree that this General Release does not waive or release any rights or claims that I may have under the Age Discrimination in
Employment Act of 1967 which arise after the date I execute this General Release.  I acknowledge and agree that my separation
from employment with the Company in compliance with the terms of the Agreement shall not serve as the basis for any claim or action
(including, without limitation, any claim under the Age Discrimination in Employment Act of 1967).

 

5.          I
agree that I hereby waive all rights to sue or obtain equitable, remedial or punitive relief from any or all Released Parties of
any kind whatsoever in respect of any Claim, including, without limitation, reinstatement, back pay, front pay, and any form of
injunctive relief.  Notwithstanding the above, I further acknowledge that I am not waiving and am not being required
to waive any right that cannot be waived under law, including the right to file an administrative charge or participate in an administrative
investigation or proceeding; provided, however, that I disclaim and waive any right to share or participate
in any monetary award resulting from the prosecution of such charge or investigation or proceeding.  Additionally, I
am not waiving (i) any right to the Accrued Benefits or any severance benefits to which I am entitled and have not waived under
the Agreement, (ii) any claim relating to directors’ and officers’ liability insurance coverage or any right of indemnification
under the Company’s organizational documents or otherwise, or (iii) my rights as an equity or security holder in the Company
or its affiliates.

 

6.          In
signing this General Release, I acknowledge and intend that it shall be effective as a bar to each and every one of the Claims
hereinabove mentioned or implied.  I expressly consent that this General Release shall be given full force and effect
according to each and all of its express terms and provisions, including those relating to unknown and unsuspected Claims (notwithstanding
any state or local statute that expressly limits the effectiveness of a general release of unknown, unsuspected and unanticipated
Claims), if any, as well as those relating to any other Claims hereinabove mentioned or implied.  I acknowledge and agree
that this waiver is an essential and material term of this General Release and that without such waiver the Company would not have
agreed to the terms of the Agreement.  I further agree that in the event I should bring a Claim seeking damages against
the Company, or in the event I should seek to recover against the Company in any Claim brought by a governmental agency on my behalf,
this General Release shall serve as a complete defense to such Claims to the maximum extent permitted by law.  I further
agree that I am not aware of any pending claim of the type described in paragraph 2 above as of the execution of this General Release.

 

7.          I
agree that neither this General Release, nor the furnishing of the consideration for this General Release, shall be deemed or construed
at any time to be an admission by the Company, any Released Party or myself of any improper or unlawful conduct.

 

    A-2 

     

    

 

8.          I
agree that if I violate this General Release by suing the Company or the other Released Parties, I will pay all costs and expenses
of defending against the suit incurred by the Released Parties, including reasonable attorneys’ fees.

 

9.          I
agree that this General Release and the Agreement are confidential and agree not to disclose any information regarding the terms
of this General Release or the Agreement, except to my immediate family and any tax, legal or other counsel I have consulted regarding
the meaning or effect hereof or as required by law, and I will instruct each of the foregoing not to disclose the same to anyone.

 

10.         Any
non-disclosure provision in this General Release does not prohibit or restrict me (or my attorney) from responding to any inquiry
about this General Release or its underlying facts and circumstances by the Securities and Exchange Commission (SEC), the Financial
Industry Regulatory Authority (FINRA), any other self-regulatory organization or any governmental entity.

 

11.         I
hereby acknowledge that Sections 7 through 13, 18 through 21 and 23 of the Agreement shall survive my execution of this General
Release.

 

12.         I
represent that I am not aware of any claim by me other than the claims that are released by this General Release.  I
acknowledge that I may hereafter discover claims or facts in addition to or different than those which I now know or believe to
exist with respect to the subject matter of the release set forth in paragraph 1 above and which, if known or suspected at the
time of entering into this General Release, may have materially affected this General Release and my decision to enter into it.

 

13.         Notwithstanding
anything in this General Release to the contrary, this General Release shall not relinquish, diminish, or in any way affect any
rights or claims arising out of any breach by the Company or by any Released Party of the Agreement after the date hereof.

 

14.         Whenever
possible, each provision of this General Release shall be interpreted in, such manner as to be effective and valid under applicable
law, but if any provision of this General Release is held to be invalid, illegal or unenforceable in any respect under any applicable
law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision or any other
jurisdiction, but this General Release shall be reformed, construed and enforced in such jurisdiction as if such invalid, illegal
or unenforceable provision had never been contained herein.

 

    A-3 

     

    

 

BY SIGNING THIS GENERAL RELEASE, I REPRESENT
AND AGREE THAT:

 

		1.	I HAVE READ IT CAREFULLY;

 

		2.	I UNDERSTAND ALL OF ITS TERMS AND KNOW THAT I AM GIVING UP IMPORTANT RIGHTS, INCLUDING BUT NOT
LIMITED TO, RIGHTS UNDER THE AGE DISCRIMINATION IN EMPLOYMENT ACT OF 1967, AS AMENDED, TITLE VII OF THE CIVIL RIGHTS ACT OF 1964,
AS AMENDED; THE EQUAL PAY ACT OF 1963, THE AMERICANS WITH DISABILITIES ACT OF 1990; AND THE EMPLOYEE RETIREMENT INCOME
SECURITY ACT OF 1974, AS AMENDED;

 

		3.	I VOLUNTARILY CONSENT TO EVERYTHING IN IT;

 

		4.	I HAVE BEEN ADVISED TO CONSULT WITH AN ATTORNEY BEFORE EXECUTING IT AND I HAVE DONE SO OR, AFTER
CAREFUL READING AND CONSIDERATION, I HAVE CHOSEN NOT TO DO SO OF MY OWN VOLITION;

 

		5.	I HAVE HAD AT LEAST 21 DAYS FROM THE DATE OF MY RECEIPT OF THIS RELEASE TO CONSIDER IT, AND THE
CHANGES MADE SINCE MY RECEIPT OF THIS RELEASE ARE NOT MATERIAL OR WERE MADE AT MY REQUEST AND WILL NOT RESTART THE REQUIRED 21-DAY
PERIOD;

 

		6.	I UNDERSTAND THAT I HAVE SEVEN (7) DAYS AFTER THE EXECUTION OF THIS RELEASE TO REVOKE IT AND THAT
THIS RELEASE SHALL NOT BECOME EFFECTIVE OR ENFORCEABLE UNTIL THE REVOCATION PERIOD HAS EXPIRED;

 

		7.	I HAVE SIGNED THIS GENERAL RELEASE KNOWINGLY AND VOLUNTARILY AND WITH THE ADVICE OF ANY COUNSEL
RETAINED TO ADVISE ME WITH RESPECT TO IT; AND

 

		8.	I AGREE THAT THE PROVISIONS OF THIS GENERAL RELEASE MAY NOT BE AMENDED, WAIVED, CHANGED OR MODIFIED
EXCEPT BY AN INSTRUMENT IN WRITING SIGNED BY AN AUTHORIZED REPRESENTATIVE OF THE COMPANY AND BY ME.

 

	SIGNED:	 	 	DATED:	 

 

    A-4 

     

    

 

 

EXHIBIT B

 

Spousal
Consent

 

I, ________________________, am the lawful spouse of Gerald
K. Carlson.

 

I agree and consent to my spouse’s election to waive any
and all future benefits under the Phibro Animal Health Corporation Retirement Health Care Plan (“Retiree Health Plan”).  I
understand and acknowledge that:

 

		1.	As a result of this consent, I will not receive any benefits under the Retiree Health Plan.

 

		2.	My spouse’s waiver of benefits under the Retiree Health Plan is being made in return for a cash payment under his Employment
Agreement and I hereby acknowledge that such payment constitutes consideration for my waiver under this Spousal Consent also.

 

	Date:	 	 	Signed:

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