Document:

Exhibit

AMENDED AND RESTATED 
RETENTION AND OWNERSHIP 
CHANGE EVENT AGREEMENT
This Amended and Restated Retention and Ownership Change Event Agreement (“Agreement”) is made effective as of the last date set forth below by and between Immersion Corporation (the “Company”) and Anne Peters (“Executive”). 
RECITALS
Executive and the Company entered into a Retention and Ownership Change Event Agreement dated as of December 12, 2008 and amended as of April 27, 2009, March 2, 2010, and March 3, 2017 (the “Original Agreement”). 
     The Board has determined that it is in the best interests of the Company to amend the Original Agreement to provide for immediate vesting of 100% of Executive’s unvested Company equity awards upon termination without Cause or resignation for Good Reason due to a Change in Control.
AGREEMENT
In recognition thereof, the parties now agree as follows:
1.Definitions.  For purposes of this Agreement:
(a)“Change in Control” means the occurrence of any of the following:
(i)    any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) becomes the “beneficial owner” (as defined in Rule 13d‐3 promulgated under the Exchange Act), directly or indirectly, of securities of the Company representing more than fifty percent (50%) of the total combined voting power of the Company’s then‐outstanding securities entitled to vote generally in the election of the Company’s Board of Directors; provided, however, that the following acquisitions shall not constitute a Change in Control: (1) an acquisition by any such person who on the effective date of such transaction is the beneficial owner of more than fifty percent (50%) of such voting power, (2) any acquisition directly from the Company, including, without limitation, a public offering of securities, (3) any acquisition by the Company, (4) any acquisition by a trustee or other fiduciary under an employee benefit plan of the Company or (5) any acquisition by an entity owned directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of the voting securities of the Company; or
(ii)    an Ownership Change Event or series of related Ownership Change Events (collectively, a “Transaction”) in which the stockholders of the Company immediately before the Transaction do not retain immediately after the Transaction direct or indirect beneficial ownership of more than fifty percent (50%) of the total combined voting power of the outstanding securities entitled to vote generally in the election of Directors or, in the case of an Ownership Change Event described in Section 1(c)(iii), the entity to which the assets of the Company were transferred (the “Transferee”), as the case may be; or

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(iii)    a liquidation or dissolution of the Company;
provided, however, that a Change in Control shall be deemed not to include a transaction described in subsections (i) or (ii) of this Section 1(a) in which a majority of the members of the Board of Directors of the continuing, surviving or successor entity, or parent thereof, immediately after such transaction is comprised of incumbent members.  Notwithstanding the foregoing, to the extent that any amount that constitutes deferred compensation subject to and not exempted from the requirements of Section 409A of the Code (“Section 409A”), would become payable under this Agreement by reason of a Change in Control, such amount shall become payable only if the event constituting a Change in Control would also constitute a change in ownership or effective control of the Company or a change in the ownership of a substantial portion of the assets of the Company within the meaning of Section 409A.
(b)“Good Reason” means any of the following conditions, which condition(s) remain(s) in effect thirty (30) days after written notice to the Board or the Company’s Chief Executive Officer from Executive of such condition(s):
(i)    a material decrease in Executive’s base salary, other than a material decrease that applies generally to other executives of the Company at Executive’s level; 
(ii)    a material, adverse change in the Executive’s title, authority, responsibilities, or duties; or
(iii)    the relocation of the Executive’s work place for the Company to a location that is more than forty (40) miles distant from Executive’s present work location for the Company;
provided, that such written notice must be given within thirty (30) days following the first occurrence of any of the good reason conditions set forth in this subsection (b) and the Executive’s resignation must occur within six (6) months following the first occurrence of the good reason condition.
(c)“Ownership Change Event” means the occurrence of any of the following with respect to the Company:  (i) the direct or indirect sale or exchange in a single or series of related transactions by the stockholders of the Company of more than fifty percent (50%) of the voting stock of the Company; (ii) a merger or consolidation in which the Company is a party; or (iii) the sale, exchange, or transfer of all or substantially all of the assets of the Company (other than a sale, exchange or transfer to one or more subsidiaries of the Company).
(d)a termination for “Cause” means Executive’s termination based upon (1) Executive’s theft, dishonesty, misconduct, breach of fiduciary duty, or falsification of any Company documents or records; (2) Executive’s material failure to abide by the Company’s code of conduct or other policies (including, without limitation, policies relating to confidentiality and reasonable workplace conduct); (3) Executive’s unauthorized use, misappropriation, destruction or diversion of any tangible or intangible asset or corporate opportunity of the Company (including, without limitation, Executive’s improper use or disclosure of the Company’s confidential or proprietary information); (4) any intentional act by the Executive that has a material detrimental effect on the Company’s reputation or business; (5) Executive’s repeated 

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failure or inability to perform any reasonable assigned duties after written notice from the Company of, and a reasonable opportunity to cure, such failure or inability; (6) Executive’s conviction (including any plea of guilty or nolo contendere) for any criminal act that impairs  Executive’s ability to perform her duties for the Company.
(e)“Separation from Service” shall have the meaning determined by Treasury Regulations issued pursuant to Section 409A.
2.    Termination Without Cause or Resignation for Good Reason.  In the event that the Company or its successor terminates Executive’s employment without Cause or Executive resigns for Good Reason and Executive is not entitled to receive the severance pay and benefits described in Section 3 below, Executive will be entitled to receive the following payment and benefits, provided that prior to the sixtieth (60th) day following the date of such termination Executive has signed a general release of known and unknown claims in a form satisfactory to the Company, and the period for revocation has lapsed without the general release having been revoked: 
(a)    payment in a lump sum on the sixtieth (60th) day following Executive’s termination of employment of an amount equal to six (6) months’ base salary at Executive’s final base salary rate, subject to applicable withholding; and
(b)    commencing on the sixtieth (60th) day following Executive’s termination of employment, payment of the premiums (including reimbursement to Executive of any such premiums paid by Executive during such sixty (60) day period) necessary to continue Executive’s and dependents group health insurance coverage under COBRA until the earlier of (i) six (6) months following Executive’s termination date, or (ii) the date on which Executive first becomes eligible to obtain other group health insurance coverage.  Thereafter, Executive may elect to purchase continued group health insurance coverage at her own expense in accordance with COBRA.  Notwithstanding the foregoing, payment of such premiums shall not commence unless and until Executive has incurred a Separation from Service.
In the event that a Change in Control constituting a change in ownership or effective control of the Company or a change in the ownership of a substantial portion of the assets of the Company within the meaning of Section 409A (a “Section 409A Change in Control Event”) occurs on or before the ninetieth (90th) day following a date on which Executive experiences a termination of employment in connection with which Executive is entitled to receive the payment provided by Section 2(a), Executive will be entitled to receive the following additional payment and benefits:
(a)    payment on the sixtieth (60th) day following the Section 409A Change in Control Event of an amount equal to six (6) months’ base salary at Executive’s final base salary rate, subject to applicable withholding; and
(b)    commencing with the seventh (7th) month following Executive’s termination of employment, payment of the premiums necessary to continue Executive’s and dependents group health insurance coverage under COBRA until the earlier of (i) twelve (12) months following Executive’s termination date, or (ii) the date on which Executive first becomes eligible to obtain other group health insurance coverage.  Thereafter, Executive may elect to 

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purchase continued group health insurance coverage at her own expense in accordance with COBRA.  Notwithstanding the foregoing, payment of such premiums shall not commence unless and until Executive has incurred a Separation from Service.
3.    Termination Without Cause or Resignation for Good Reason Due to a Change in Control.  In the event that, within one (1) year following a Change in Control, the Company or its successor terminates Executive’s employment without Cause or Executive resigns for Good Reason, Executive will be entitled to receive the following payment and benefits, provided that prior to the sixtieth (60th) day following the date of such termination Executive has signed a general release of known and unknown claims claims in a form satisfactory to the Company, and the period for revocation has lapsed without the general release having been revoked:
(a)    payment in a lump sum on the sixtieth (60th) day following Executive’s termination of employment of an amount equal to twelve (12) months’ base salary at Executive’s final base salary rate, subject to applicable withholding; 
(b)    commencing on the sixtieth (60th) day following Executive’s termination of employment, payment of the premiums (including reimbursement to Executive of any such premiums paid by Executive during such sixty (60) day period) necessary to continue Executive’s and dependents group health insurance coverage under COBRA until the earlier of (i) twelve (12) months following Executive’s termination date, or (ii) the date on which Executive first becomes eligible to obtain other group health insurance coverage.  Thereafter, Executive may elect to purchase continued group health insurance coverage at her own expense in accordance with COBRA.  Notwithstanding the foregoing, payment of such premiums shall not commence unless and until Executive has incurred a Separation from Service; and
(c)    Immediate vesting in one hundred percent (100%) of her then unvested Company equity awards.
4.    Voluntary Termination.  In the event that Executive resigns from her employment with the Company at any time (other than a resignation for Good Reason during the period covered by Section 2 or Section 3), or in the event that Executive’s employment terminates at any time as a result of her death or disability (meaning Executive is unable to perform her duties for any consecutive six (6) month period, with or without reasonable accommodation, as a result of a physical and/or mental impairment), Executive will be entitled to no compensation or benefits from the Company other than those earned through the date of Executive’s termination.  Executive agrees that if she resigns from her employment with the Company, she will provide the Company with 20 calendar days’ written notice of such resignation.  The Company may, in its sole discretion, elect to waive all or any part of such notice period and accept the Executive’s resignation at an earlier date.  
5.    Termination for Cause.  If Executive’s employment is terminated by the Company at any time for Cause as defined above in paragraph 1, Executive will be entitled to no compensation or benefits from the Company other than those earned through the date of her termination for Cause.  

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6.    Compliance With Section 409A.
(a)    Notwithstanding anything set forth herein to the contrary, no amount payable pursuant to Section 2 or Section 3 of the Agreement which constitutes a “deferral of compensation” within the meaning of Treasury Regulations promulgated pursuant to Section 409A (the “Section 409A Regulations”) shall be paid unless and until Executive has incurred a Separation from Service.  Furthermore, to the extent that Executive is a “specified employee” of the Company as of the date of Executive’s Separation from Service,and to the extent required by the Section 409A Regulations, no amount that constitutes a deferral of compensation which is payable on account of the Employee’s Separation from Service shall be paid to Executive before the date (the “Delayed Payment Date”) which is the first day of the seventh month after the date of Executive’s Separation from Service or, if earlier, the date of Executive’s death following such Separation from Service.  All such amounts that would, but for this paragraph, become payable prior to the Delayed Payment Date will be accumulated and paid on the Delayed Payment Date.  To the extent that any provision of this Agreement is ambiguous as to its compliance with Section 409A, the provision will be read in such a manner so that all payments hereunder comply with Section 409A.  Payments pursuant to this section are intended to constitute separate payments for purposes of Section 1.409A-2(b)(2) of the Section 409A Regulations.
(b)    The parties intend that the payments and benefits provided to Executive pursuant to this Agreement be paid in compliance with Section 409A so that no excise tax is incurred under Section 409A.  To the extent permitted by Section 409A and the Section 409A Regulations, the parties agree to modify this Agreement, the timing (but not the amount(s)) of the payments or benefits provided herein, or both, to the extent necessary to comply with Section 409A.
7.    Limitation on Payments.  In the event that the severance and other benefits provided for in this Agreement or otherwise payable to Executive (i) constitute “parachute payments” within the meaning of Section 280G of the Code and (ii) but for this Section 7, would be subject to the excise tax imposed by Section 4999 of the Code, then Executive’s severance benefits under this Agreement and benefits payable outside of this Agreement will be either:
(a)    delivered in full, or
(b)    delivered as to such lesser extent which would result in no portion of such severance and other benefits being subject to excise tax under Section 4999 of the Code, whichever of the foregoing amounts, taking into account the applicable federal, state and local income taxes and the excise tax imposed by Section 4999, results in the receipt by Executive on an after-tax basis, of the greatest amount of severance benefits, notwithstanding that all or some portion of such severance benefits may be taxable under Section 4999 of the Code.  If a reduction in the payments is required pursuant to the preceding sentence, the reduction shall occur in the manner (the “Reduction Method”) that results in the greatest economic benefit for Executive.  If more than one method of reduction will result in the same economic benefit, the items so reduced will be reduced pro rata (the “Pro Rata Reduction Method”).  Notwithstanding the foregoing, if the Reduction Method or the Pro Rata Reduction Method would result in any portion of the payments being subject to taxes pursuant to Section 409A of the Code that would not otherwise be subject to taxes pursuant to Section 409A of the Code, then the Reduction Method and/or the Pro Rata Reduction Method, as the case may be, shall be modified so as to 

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avoid the imposition of taxes pursuant to Section 409A of the Code as follows: (A) as a first priority, the modification shall preserve to the greatest extent possible, the greatest economic benefit for Executive as determined on an after-tax basis; (B) as a second priority, the payments that are contingent on future events (e.g., being terminated without Cause), shall be reduced (or eliminated) before the payments that are not contingent on future events; and (C) as a third priority, the payments that are “deferred compensation” within the meaning of Section 409A of the Code shall be reduced (or eliminated) before the Contingent Payments that are not deferred compensation within the meaning of Section 409A of the Code.  Unless the Company and Executive otherwise agree in writing, any determination required under this Section will be made in writing by the independent public accountants who are primarily used by the Company immediately prior to Change in Control (the “Accountants”), whose determination will be conclusive and binding upon Executive and the Company for all purposes.  For purposes of making the calculations required by this Section, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code.  The Company and Executive will furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this Section.  The Company will bear all costs the Accountants may reasonably incur in connection with any calculations contemplated by this Section.
8.    At-Will Employment.  Notwithstanding anything contained in this Agreement, the parties acknowledge and agree that Executive’s employment with the Company is and shall continue to be “at-will.”
9.    Dispute Resolution.  In the event of any dispute or claim between the parties, including any claims relating to or arising out of this Agreement or the termination of Executive’s employment with the Company for any reason, Executive and the Company agree that all such disputes shall be fully resolved by binding arbitration conducted by the American Arbitration Association (“AAA”) in Santa Clara County, under the AAA’s National Rules for the Resolution of Employment Disputes then in effect, which are available online at the AAA’s website at www.adr.org.  Executive and the Company each acknowledge and agree that they are waiving their respective rights to have any such disputes or claims tried by a judge or jury.
10.    Notices.  Notices and all other communications contemplated by this Agreement shall be in writing and shall be deemed to have been duly given when personally delivered or when received if mailed by U.S. registered or certified mail, return receipt requested and postage prepaid.  In the case of the Executive, mailed notices shall be addressed to the Executive at the home address which the Executive most recently communicated to the Company in writing.  In the case of the Company, mailed notices shall be addressed to its corporate headquarters, and all notices shall be directed to the attention of its Chief Executive Officer.
11.    Successors.
(a)    Company’s Successors.  Any successor to the Company (whether direct or indirect and whether by purchase, lease, merger, consolidation, liquidation or purchase of all or substantially all of the Company’s business and/or assets) shall assume the Company’s obligations under this Agreement in writing and agree expressly to perform the Company’s obligations under this Agreement in the same manner and to the same extent that the Company 

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would be required to perform such obligations in the absence of a succession.  For all purposes under this Agreement, the term “Company” shall include any successor to the Company’s business and/or assets which executes and delivers the assumption agreement described in this subsection (a) or which becomes bound by the terms of this Agreement by operation of law.
(b)    Executive’s Successors.  Without the written consent of the Company, the Executive shall not assign or transfer this Agreement or any right or obligation under this Agreement to any other person or entity. Notwithstanding the foregoing, the terms of this Agreement and all rights of the Executive hereunder shall inure to the benefit of, and be enforceable by, the Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.
12.    Termination.  This Agreement shall terminate in the event that Executive is no longer part of the executive team of the Company as determined by the Board of Directors and does not terminate service for Good Reason.
13.    Miscellaneous Provisions.
(a)    No Duty to Mitigate.  The Executive shall not be required to mitigate the amount of any payment contemplated by this Agreement, nor shall any such payment be reduced by any earnings that the Executive may receive from any other source.
(b)    Modification/Waiver.  No provision of this Agreement may be amended, modified, waived or discharged unless the amendment, modification, waiver or discharge is agreed to in writing and signed by the Executive and by an authorized officer of the Company (other than Executive).  No waiver by either party of any breach of, or of compliance with, any condition or provision of this Agreement by the other party shall be considered a waiver of any other condition or provision or of the same condition or provision at another time.
(c)    Integration.  This Agreement constitutes the entire agreement and understanding between the parties regarding Executive’s retention and severance benefits, and it supersedes all prior or contemporaneous agreements, whether written or oral, regarding that subject matter, including the Original Agreement.
(d)    Choice of Law.  The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of California.
(e)    Severability.  The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability of any other provision hereof, which shall remain in full force and effect.
(f)    Employment Taxes.  All payments made pursuant to this Agreement shall be subject to withholding of applicable income and employment taxes.
(g)    Counterparts.  This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together will constitute one and the same instrument.

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THE PARTIES SIGNING BELOW HAVE READ THE FOREGOING AGREEMENT AND FULLY UNDERSTAND AND AGREE TO EACH AND EVERY PROVISION CONTAINED HEREIN. 
	
				
	Date:
	2/21/2018
	 
	/s/ Anne Peters

	 
	 
	 
	Anne Peters

	 
	 
	 
	 

	 
	 
	 
	Immersion Corporation

	 
	 
	 
	 

	Date:
	2/26/2018
	 
	By: Carl Schlachte

	 
	 
	 
	Its:

    

Page 8Execution
Version

 

AMENDMENT
6 TO TERM LOAN AGREEMENT

 

THIS
AMENDMENT 6, dated as of April 4, 2018 and effective as of March 31, 2018 (this “Amendment”), is made
among TearLab Corporation, a Delaware corporation (“Borrower”), the subsidiary guarantors listed on
the signature pages hereof under the heading “SUBSIDIARY GUARANTORS” (each a “Subsidiary Guarantor”
and, collectively, the “Subsidiary Guarantors”) and the lenders listed on the signature pages hereof
under the heading “LENDERS” (each a “Lender” and, collectively, the “Lenders”),
with respect to the Loan Agreement referred to below.

 

RECITALS

 

WHEREAS,
the Borrower and the Lenders are parties to a Term Loan Agreement, dated as of March 4, 2015, as amended by the Omnibus Amendment
Agreement, dated as of April 2, 2015, Amendment 2, dated as of August 6, 2015, Amendment 3, dated as of December 31, 2015, Amendment
4, dated as of April 7, 2016, and Amendment 5, dated as of October 12, 2017 (the “Loan Agreement”),
with the Subsidiary Guarantors from time to time party thereto.

 

WHEREAS,
the Borrower has requested, and the Lenders have agreed, on the terms and subject to the conditions set forth herein, to amend
the Loan Agreement.

 

NOW,
THEREFORE, in consideration of the mutual agreements, provisions and covenants contained herein, the parties agree as follows:

 

SECTION
1. Definitions; Interpretation.

 

(a)
Terms Defined in Loan Agreement. All capitalized terms used in this Amendment (including in the recitals hereof) and not
otherwise defined herein shall have the meanings assigned to them in the Loan Agreement.

 

(b)
Interpretation. The rules of interpretation set forth in Section 1.03 of the Loan Agreement shall be applicable
to this Amendment and are incorporated herein by this reference.

 

SECTION
2. Amendment. Subject to Section 3:

 

(a)
Section 3.02(c) of the Loan Agreement is hereby amended by adding the following sentences to the end thereof:

 

“Notwithstanding
the foregoing sentence or any other provision of the Loan Documents to the contrary, Borrower shall not be required to pay, in
cash, accrued interest on the Loans that would otherwise be payable on each Payment Date between (and including) March 31, 2018
through (and including) December 31, 2018 (such period being the “Deferral Period” and such interest
being the “Deferral Period Interest”). Instead, the Deferral Period Interest payable on any Payment
Date during the Deferral Period shall be added to the outstanding principal amount of the Loans as of such Payment Date, and such
increased outstanding principal amount shall continue to accrue interest in accordance with the provisions of this Agreement,
at the rate of 13.00% per annum; provided, however, that interest payable at the Default Rate shall be payable
from time to time in cash and on demand.”

 

    	 

    	 

    

 

(b)
Section 8.10 of the Loan Agreements is amended and restated in its entirety as follows:

 

“8.10Board
Observation Rights. Borrower shall, concurrently with delivery to Borrower’s Board of Directors (the “Board”),
give a designated representative of the Lenders (who may change from time to time at the sole discretion of CRG Servicing LLC,
as agent for Lenders) (the “Representative”) copies of all notices, minutes, consents and other material
that Borrower provides to its directors, and shall permit the Representative to attend all meetings of the Board as a non-voting
observer, except that the Representative may be excluded from access to any material or meeting or portion thereof if the Board
determines in good faith, upon advice of counsel, that such exclusion is reasonably necessary to preserve attorney-client privilege
or to protect highly confidential proprietary information. Upon reasonable notice and at a scheduled meeting of the Board or such
other time, if any, as the Board may determine in its sole discretion, the Representative may address the Board with respect to
a Lender’s concerns regarding significant business issues facing Borrower.”

 

(d)
Section 9.01 of the Loan Agreement is amended as follows:

 

(i)
Clause (g) thereof is amended and restated in its entirety as follows:

 

“(g)
[Reserved].”;

 

(ii)
Clause (h) thereof is amended by replacing the phrase “, when added to the aggregate principal amount of the outstanding
Indebtedness permitted in reliance on Section 9.01(g), does not exceed $500,000” appearing in subclause (ii) with the phrase
“does not exceed $200,000”; and

 

(iii)
Clause (n) thereof is amended and restated in its entirety as follows:

 

“(n)
[Reserved].”

 

(e)
Section 9.03(e) of the Loan Agreement is amended by amending and restating such clause in its entirety as follows:

 

“(e)
[Reserved].”

 

(f)
Section 9.05 of the Loan Agreement is amended as follows:

 

(i)
Clause (f) thereof is amended by deleting the phrase “(i) Investments by any Obligor in any Subsidiary of Borrower
that is not a Subsidiary Guarantor, when added to Asset Sales permitted in reliance on Section 9.09(d)(ii), not exceeding
$1,500,000 in the aggregate at any time; and (ii)”;

 

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(ii)
Clause (k) thereof is amended by replacing the “; and” at the end thereof with “.”; and

 

(iii)
Clause (l) thereof is deleted in its entirety.

 

(g)
Section 9.09 of the Loan Agreement is amended as follows:

 

(i)
Clause (d) thereof is amended and restated in its entirety as follows:

 

“(d)
transfers of Property by any Subsidiary to any Obligor on arm’s length terms or for reasonably equivalent value;”;

 

(ii)
Clause (g) thereof is amended by adding the word “and” at the end thereof;

 

(iii)
Clause (h) thereof is amended by replacing the “; and” at the end thereof with “.”; and

 

(iv)
Clause (i) thereof is amended by replacing the amount “$500,000” therein with “$50,000”.

 

(h)
Section 10.01 of the Loan Agreement is amended and restated in its entirety as follows:

 

“Minimum
Liquidity. Borrower shall maintain at all times Liquidity in an amount in excess of the greater of (i) $3,000,000 and (ii)
the minimum cash balance that Borrower is required to maintain pursuant to any working capital revolving credit facility to which
Borrower is a party and that is secured by Borrower’s accounts receivable (provided, however, that for greater certainty,
Borrower shall not be permitted to enter into any such facility without the consent of the Lenders in accordance with the terms
of this Agreement).”

 

SECTION
3. Conditions of Effectiveness.

 

(a)
The effectiveness of Section 2 shall be subject to the following conditions precedent:

 

(i)
The Warrants shall have been amended to revise the strike price to $0.44 per share.

 

(ii)
The Fee Letter shall have been amended in form and substance satisfactory to the Lenders.

 

(iii)
The Borrower shall have prepaid the Loans in part, in the principal amount of $1,000,000, and shall have paid accrued but unpaid
interest on such principal being prepaid; provided, however, that the Borrower shall not be required to pay any
Prepayment Premium or Facility Fee (as defined in the Fee Letter, as amended to date) with respect to such prepayment.

 

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(iv)
The Borrower shall have paid or reimbursed Lenders for Lenders’ reasonable out of pocket costs and expenses incurred in
connection with this Amendment, including Lenders’ reasonable and documented out of pocket legal fees and costs, pursuant
to Section 12.03(a)(i)(z) of the Loan Agreement.

 

(v)
The representations and warranties in Section 4 shall be true in all material respects on the date hereof and on the first
date on which the conditions set forth in Section 3 shall have been satisfied.

 

SECTION
4. Representations and Warranties; Reaffirmation.

 

(a)
The Borrower hereby represents and warrants to each Lender as follows:

 

(i)
The Borrower has full power, authority and legal right to make and perform this Amendment. This Amendment is within the Borrower’s
corporate powers and has been duly authorized by all necessary corporate and, if required, by all necessary shareholder action.
This Amendment has been duly executed and delivered by the Borrower and constitutes a legal, valid and binding obligation of the
Borrower, enforceable against the Borrower in accordance with its terms, except as such enforceability may be limited by (a) bankruptcy,
insolvency, reorganization, moratorium or similar laws of general applicability affecting the enforcement of creditors’
rights and (b) the application of general principles of equity (regardless of whether such enforceability is considered in a proceeding
in equity or at law). This Amendment (x) does not require any consent or approval of, registration or filing with, or any other
action by, any Governmental Authority or any third party, except for such as have been obtained or made and are in full force
and effect, (y) will not violate any applicable law or regulation or the charter, bylaws or other organizational documents of
the Borrower and its Subsidiaries or any order of any Governmental Authority, other than any such violations that, individually
or in the aggregate, could not reasonably be expected to have a Material Adverse Effect, (z) will not violate or result in an
event of default under any material indenture, agreement or other instrument binding upon the Borrower and its Subsidiaries or
assets, or give rise to a right thereunder to require any payment to be made by any such Person.

 

(ii)
No Default has occurred or is continuing or will result after giving effect to this Amendment.

 

(iii)
The representations and warranties made by or with respect to the Borrower in Section 7 of the Loan Agreement are true
in all material respects (taking into account any changes made to schedules updated in accordance with Section 7.21 of
the Loan Agreement or attached hereto), except that such representations and warranties that refer to a specific earlier date
were true in all material respects on such earlier date.

 

(iv)
There has been no Material Adverse Effect since the date of the Loan Agreement.

 

(v)
As of the date hereof, the Warrants represent 1.22% of Borrower’s fully diluted shares outstanding.

 

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(b)
The Borrower hereby ratifies, confirms, reaffirms, and acknowledges its obligations under the Loan Documents to which it is a
party and agrees that the Loan Documents remain in full force and effect, undiminished by this Amendment, except as expressly
provided herein. By executing this Amendment, the Borrower acknowledges that it has read, consulted with its attorneys regarding,
and understands, this Amendment.

 

SECTION
5. Governing Law; Submission to Jurisdiction; Waiver of Jury Trial.

 

(a)
Governing Law. This Amendment and the rights and obligations of the parties hereunder shall be governed by, and construed
in accordance with, the law of the State of New York, without regard to principles of conflicts of laws that would result in the
application of the laws of any other jurisdiction; provided that Section 5-1401 of the New York General Obligations Law
shall apply.

 

(b)
Submission to Jurisdiction. The Borrower agrees that any suit, action or proceeding with respect to this Amendment or any
other Loan Document to which it is a party or any judgment entered by any court in respect thereof may be brought initially in
the federal or state courts in Houston, Texas or in the courts of its own corporate domicile and irrevocably submits to the non-exclusive
jurisdiction of each such court for the purpose of any such suit, action, proceeding or judgment. This Section 5 is for
the benefit of the Lenders only and, as a result, no Lender shall be prevented from taking proceedings in any other courts with
jurisdiction. To the extent allowed by applicable Laws, the Lenders may take concurrent proceedings in any number of jurisdictions.

 

(c)
Waiver of Jury Trial. The Borrower and each Lender hereby irrevocably waives, to
the fullest extent permitted by applicable law, any and all right to trial by jury in any suit, action or proceeding arising out
of or relating to this Amendment, the other Loan Documents or the transactions contemplated hereby or thereby.

 

SECTION
6. Miscellaneous.

 

(a)
No Waiver. Nothing contained herein shall be deemed to constitute a waiver of compliance with any term or condition contained
in the Loan Agreement or any of the other Loan Documents or constitute a course of conduct or dealing among the parties. Except
as expressly stated herein, the Lenders reserve all rights, privileges and remedies under the Loan Documents. Except as amended
hereby, the Loan Agreement and other Loan Documents remain unmodified and in full force and effect. All references in the Loan
Documents to the Loan Agreement shall be deemed to be references to the Loan Agreement as amended hereby.

 

(b)
Severability. In case any provision of or obligation under this Amendment shall be invalid, illegal or unenforceable in
any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or
obligation in any other jurisdiction, shall not in any way be affected or impaired thereby.

 

(c)
Headings. Headings and captions used in this Amendment (including the Exhibits, Schedules and Annexes hereto, if any) are
included for convenience of reference only and shall not be given any substantive effect.

 

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(d)
Integration. This Amendment constitutes a Loan Document and, together with the other Loan Documents, incorporates all negotiations
of the parties hereto with respect to the subject matter hereof and is the final expression and agreement of the parties hereto
with respect to the subject matter hereof.

 

(e)
Counterparts. This Amendment may be executed in any number of counterparts, all of which taken together shall constitute
one and the same instrument and any of the parties hereto may execute this Amendment by signing any such counterpart.

 

(f)
Controlling Provisions. In the event of any inconsistencies between the provisions of this Amendment and the provisions
of any other Loan Document, the provisions of this Amendment shall govern and prevail. Except as expressly modified by this Amendment,
the Loan Documents shall not be modified and shall remain in full force and effect.

 

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

 

 

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