Document:

CONFIDENTIAL
TREATMENT REQUESTED

 

CONFIDENTIAL
PORTIONS OF THIS DOCUMENT HAVE BEEN REDACTED AND HAVE BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. INFORMATION
THAT WAS OMITTED IN THE EDGAR VERSION HAS BEEN NOTED IN THIS DOCUMENT WITH A PLACEHOLDER IDENTIFIED BY THE MARK “[***]”.

 

Dated

 

Manufacturing,
Supply and

Development
Agreement

 

Parties

 

MiniFAB
(Ault) Pty Ltd 

ACN
100 768 474

 

TearLab
Research, Inc.

 

Contact

 

Bernard
O’Shea

Norton
Rose Fulbright Australia

Level
15, RACV Tower, 485 Bourke Street, Melbourne, Victoria 3000

Tel:
+61 (0)3 8686 6573

www.nortonrosefulbright.com

Our
ref: 2626784

 

[***]
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treatment has been requested with respect to the omitted portions.

 

    	 		 

    	 	 	 

    

 

Contents

 

	1.
    	Definitions
    and interpretation 	 	1
	2.
    	Establishment
    of New Location	 	8
	3.
    	Manufacture
    of Product	 	9
	4.
    	Forecasting
    and ordering	 	11
	5.
    	Delivery	 	15
	6.
    	Price	 	17
	7.
    	Disaster
    Recovery Planning	 	17
	8.
    	Development
    of New Products	 	18
	9.
    	Intellectual
    Property	 	24
	10.
    	Obligations
    of MiniFAB	 	28
	11.
    	Meeting	 	29
	12.
    	Amendments
    to Specifications	 	29
	13.
    	Registrations,
    safety and Product liability	 	31
	14.
    	Insurance	 	32
	15.
    	Warranties	 	32
	16.
    	Sub-Contractors	 	33
	17.
    	Term,
    breach and termination	 	33
	18.
    	Liability
    and Indemnity	 	37
	19.
    	Confidentiality	 	39
	20.
    	Disputes	 	41
	21.
    	Force
    Majeure	 	43
	22.
    	Notices	 	43
	23.
    	General	 	44
	Schedule
    1 - Pricing Schedule	 	47
	Schedule
    2 Base Card	 	48
	Schedule
    3 Finished Product	 	49
	Schedule
    4 Deed Poll of Accession	 	50
	Annexure
    A Requirement Definitions of Product	 	51
	Annexure
    B Specifications for Product	 	52

 

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treatment has been requested with respect to the omitted portions.

 

    	 		 

    	 	 	 

    

 

	Agreement
    dated	March
    2016

 

	Parties	MiniFAB
    (Aust) Pty Ltd ACN 100 768 474
	 	of
    9 The Centreway, Mount Waverley, Victoria 3149,
	 	Australia
	 	(MiniFAB)
	 	 
	 	TearLab
    Research, Inc.
	 	of
    9980 Huennekens St, Suite 100, San Diego, CA 92121, U.S.A.
	 	(TearLab)

 

Introduction

 

	A.	MiniFAB
    and TearLab entered into a manufacturing and development agreement on 19 July 2011 which was subsequently varied by a deed
    executed in or about May 2013 (the agreement as amended being the Original Agreement).
	 	 
	B.	The
    parties have agreed to replace the Original Agreement with this Agreement to provide for:

 

	 	(1)	the
    manufacture and supply of certain products, being initially the first product developed under the Original Agreement;
	 	 	 
	 	(2)	the
    terms and conditions governing the development of future products or variations to existing products;
	 	 	 
	 	(3)	the
    future alteration of the supply arrangements to provide for manufacture and supply of the relevant products through a MiniFAB
    owned and controlled entity based in the United States; and
	 	 	 
	 	(4)	the
    transition period of pricing mechanisms in the old agreement to the new agreement.

 

It
is agreed

 

	1.	Definitions
    and interpretation
	 	 
	1.1	Definitions
	 	 
	 	In
    this Agreement:

 

	 	(1)	Affiliate
    means with respect to any person, any other person controlling, controlled by or under direct or indirect common control
    with such person. A person will be deemed to control a corporation (or other entity) if such person possesses, directly or
    indirectly, the power to direct or cause the direction of the management and policies of such corporation (or other entity),
    whether through the ownership of voting securities, by contract or otherwise.

 

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	 	(2)	Agreement
    means this document, including any schedule or annexure to it;
	 	 	 
	 	(3)	Base
    Card means the Osmolarity Test Card as further described In Schedule 2:
	 	 	 
	 	(4)	Business
    Day means a day that is not a Saturday, Sunday or any other day which is a public holiday or a bank holiday in Melbourne,
    Australia or California, United States;
	 	 	 
	 	(5)	cGMP
    means current Good Manufacturing Practices, as established by the FDA;
	 	 	 
	 	(6)	Commencement
    Date of Original Agreement means January 1, 2010;
	 	 	 
	 	(7)	Commercially
    Reasonable Efforts means the exercise of such efforts and commitment of such resources by MiniFAB as would be expended
    on, or committed by MiniFAB for, a comparable development or manufacturing program of a similar scope and at a similar stage
    in development or product lifecycle, comparable profit margin and potential, competitive landscape, and risk profile, in each
    case with due regard to the nature of efforts and cost required for such development or manufacturing and taking into account
    payments made by TearLab, or obligated to be made by TearLab, under this Agreement;
	 	 	 
	 	(8)	Confidential
    Information of a party means any Information (and all of its tangible and intangible embodiments of any kind whatsoever)
    provided by that party or its Representatives to the other party or its Representatives whether provided orally or in any
    form and is marked, identified as or otherwise acknowledged to be confidential at the time of disclosure to the other party;
    provided, however, that information, data and results generated by MiniFAB under the Original Agreement or the Original Development
    Agreement, or in the course of performing activities under this Agreement, that relate to TearLab’s technology or to
    the development of Product or prototypes thereof shall be deemed the Confidential Information of TearLab;
	 	 	 
	 	(9)	Dedicated
    Improvements has the meaning given in clause 9.3;
	 	 	 
	 	(10)	Deed
    Poll of Accession means a deed in the form of Schedule 4;
	 	 	 
	 	(11)	Default
    Rate means [***];
	 	 	 
	 	(12)	Delivery
    Point means the TearLab’s nominated warehouse in California, or such other place as may be agreed from time to time;

 

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	 	(13)	Effective
    Date means the date of execution of this Agreement by the last party signing it;
	 	 	 
	 	(14)	End
    Date means 30 June 2021:
	 	 	 
	 	(15)	FDA
    means the United States Food and Drug Administration;
	 	 	 
	 	(16)	Final
    Assembly Changeover Date means the operative date specified by MiniFAB under and in accordance with clause 2.2(3);
	 	 	 
	 	(17)	Force
    Majeure means any cause which is not within the reasonable control of the party affected by it including, acts of God,
    war declared or undeclared, civil disturbance, acts or omissions of government or other competent authority, fire, lightning,
    explosion or flood, but excludes any cause due to lack of demand or market success for the Products;
	 	 	 
	 	(18)	Governmental
    Agency means any court, administrative agency or commission or other governmental agency, body or instrumentality, domestic
    or foreign;
	 	 	 
	 	(19)	Information
    means any information or know-how pertaining to, or in the possession or control of, a party including, information concerning
    its business, systems, technology and affairs, such as:

 

	 	(a)	financial,
    technological, strategic or business information, concepts, plans, strategies, directions or systems;
	 	 	 
	 	(b)	research,
    development, operational, legal, marketing or accounting information, concepts, plans, strategies, directions or systems;
	 	 	 
	 	(c)	technology,
    source and object codes for computer software, Intellectual Property rights and technical and historical information relating
    thereto;
	 	 	 
	 	(d)	customer
    and supplier information; and
	 	 	 
	 	(e)	information
    relating to the Product.

 

	 	(20)	Insolvency
    Event in the context of:

 

	 	(a)	MiniFAB
    means:

 

	 	(i)	a
    receiver, receiver and manager, official manager, trustee, administrator, other controller (as defined in the Corporations
    Act 2001 (Cth)) or similar official is appointed, or steps are taken for such appointment, over any of the equipment or
    undertaking of MiniFAB:

 

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	 	(ii)	MiniFAB
    is or becomes unable to pay its debts when they are due or is or becomes unable to pay its debts within the meaning of the
    Corporations Act 2001 (Cth) or is presumed to be insolvent under the Corporations Act 2001 (Cth);
	 	 	 
	 	(iii)	MiniFAB
    ceases to carry on business; or
	 	 	 
	 	(iv)	an
    application or order is made for the liquidation of MiniFAB or a resolution is passed or any steps are taken to liquidate
    or pass a resolution for the liquidation of MiniFAB otherwise than for the purpose of an amalgamation or reconstruction; and

 

	 	(b)	TearLab
    or NewFAB means:

 

	 	(i)	a
    receiver, receiver and manager, controller, managing controller, administrator, official manager, trustee or provisional or
    official liquidator is appointed over the assets or undertaking of TearLab or NewFAB;
	 	 	 
	 	(ii)	TearLab
    or NewFAB:

 

	 	(A)     suspends
    payments of its debts generally;
	 	 
	 	(B)     enters
    into or resolves to enter into any arrangement, composition or compromise with, or assignment for the benefit of, its creditors
    or any class of them;
	 	 
	 	(C)     files
    a petition in Chapter 7 bankruptcy under the U.S. Bankruptcy Code; or
	 	 
	 	(D)     ceases
    to carry on business; or

 

	 	(iii)	an
    order is made or resolution passed for the winding up or dissolution of TearLab or NewFAB other than for the purposes of solvent
    reconstruction or amalgamation; or
	 	 	 
	 	(iv)	in
    the case of TearLab, if TearLab Corporation suffers an ‘Event of Default’ under clause 11.01(1) of the ‘Term
    Loan Agreement’ (dated March 4, 2015 between TearLab Corporation, as borrower, and Capital Royalty Partners II L.P.
    and others (CRG), as lenders) and that default is not waived by the lenders.

 

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	 	(21)	Intellectual
    Property means any copyright, design (whether registered or unregistered), trademark (whether registered or unregistered),
    patent or patent application or invention, circuit layout, know-how, confidential information (whether such information is
    in writing or recorded in any other form) and other proprietary or personal rights arising from intellectual activity in the
    business, industrial, scientific or artistic fields;
	 	 	 
	 	(22)	Loss
    means any loss, damage, cost, interest, expense, fee, penalty, fine, forfeiture, assessment, demand, liability or damages
    incurred by a person to the extent resulting from any action, suit, claim, proceeding or cause of action brought against such
    party by a third party.
	 	 	 
	 	(23)	Manufacture
    means all the activities required to produce Product which complies with the Specifications including the manufacture,
    packaging, labelling, storage, handling and shipment of the Product;
	 	 	 
	 	(24)	MiniFAB
    Facility means the facility at 1 Dalmore Drive, Caribbean Business Park, Scoresby, Victoria, Australia;
	 	 	 
	 	(25)	Monthly
    Manufacturing Limit means initially 417,000 units of Product per month as varied in accordance with clause 4.2;
	 	 	 
	 	(26)	New
    Location means the new location for final assembly of the Product to be established in the United States, as advised under
    clause 2.1;
	 	 	 
	 	(27)	NewFAB
    means the new Affiliate of MiniFAB to be established in the United States;
	 	 	 
	 	(28)	Original
    Development Agreement means the development agreement for a tear collection interface device comprised of Terms of Business
    and the Project Proposal for Project Tear-Sense (Stage 0), each dated 17 November 2006 between MiniFAB and TearLab;
	 	 	 
	 	(29)	Quarter
    means each period of 3 months beginning 1 January. 1 April, 1 July and 1 October;
	 	 	 
	 	(30)	Price
    means the price payable by TearLab to MiniFAB for the supply of the Product, inclusive of all packaging, labelling, freight,
    insurance and all other shipping and handling charges, as set out in the Pricing Schedule;
	 	 	 
	 	(31)	Pricing
    Schedule means the Pricing Schedule set out in Schedule 1;
	 	 	 
	 	(32)	Product
    means the Base Card, together with the capsule and applicable packaging, all as further described in Schedule 2 and Schedule
    3;
	 	 	 
	 	(33)	Provider
    means MiniFAB in respect of the Base Cards and the Supplier in respect of the further steps required to Manufacture Product;
	 	 	 
	 	(34)	Purchase
    Order means an order for Product as provided for in clause 4.1(1)(a);

 

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	 	(35)	Registrations
    means all registrations or approvals required from the relevant Regulatory Authority or Authorities for the export, import,
    storage, promotion, supply, sale or other distribution in the Product;
	 	 	 
	 	(36)	Regulatory
    Authority means any Governmental Agency having responsibility for the regulation of, oversight of or whose approval is
    required for the manufacture, marketing, sale or supply of the Product or the facilities in which they are manufactured, processed
    or stored;
	 	 	 
	 	(37)	Regulatory
    Requirements means, collectively:

 

	 	(a)	all
    laws and regulations and any and all other requirements of the FDA or any other Regulatory Authority that are mandatory
    to the manufacture, packaging, labelling, storage, handling and shipment of the Product by MiniFAB or NewFAB and, subject
    to clause 10.3, includes cGMP; and
	 	 	 
	 	(b)	all
    standards set by the International Organization for Standardization (ISO) that are mandatory to the manufacture, packaging,
    labelling, storage, handling and shipment of the Product by MiniFAB or NewFAB, including ISO 13485:2003 (Medical Devices Quality
    Management System), ISO 10993-1 (Biocompatibility), ISO 10993-5 (Biocompatibility: Cytotoxicity), and ISO 10993-10 (Biocompatibility:
    Sensitization and Irritation),
	 	 	 
	 	 	but
    excludes any law, regulation, requirement or standards that apply to the design, trials, marketing, sales or supply of the
    Product (and which do not also apply to the manufacture of the Product and/or to MiniFAB or NewFAB’s supply to TearLab
    hereunder);

 

	 	(38)	Representative
    of a party means the employees, directors, agents or advisors of that party;
	 	 	 
	 	(39)	Requirement
    Definitions or PRD means the written documentation guiding MiniFAB’s development of the Product, including detailed
    requirement definitions for the Product, as agreed by the parties. The Requirement Definitions may be modified from time to
    time by mutual agreement of TearLab and MiniFAB in the course of ongoing development work for such Product, and MiniFAB agrees
    to use Commercially Reasonable Efforts to accommodate changes to the Requirement Definitions as TearLab may from time to time
    request;
	 	 	 
	 	(40)	Specifications
    means, with respect to the Product, the definitive written documentation guiding the manufacture, packaging, labelling,
    storage and handling of such product, prepared and agreed in accordance with clause 3,1 , and as modified from time to time
    by mutual agreement of TearLab and MiniFAB in accordance with clause 12;

 

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	 	(41)	Supplier
    means MiniFAB prior to the Final Assembly Changeover Date and NewFAB thereafter;
	 	 	 
	 	(42)	TearLab
    IP has the meaning given in clause 9.2;
	 	 	 
	 	(43)	Technical
    Agreement means the technical agreement entered into between MiniFAB or New FAB and TearLab with respect to the Product,
    as may be amended or replaced from time to time, which specifies their respective responsibilities for quality control and
    quality assurance and related activities and qualifications with respect to the Product;
	 	 	 
	 	(44)	Term
    means the term of this Agreement, including any extended term under clause 17.1; and
	 	 	 
	 	(45)	Transition
    Payments means the payments described as such and set out in the Pricing Schedule.
	 	 	 
	 	(46)	Volume
    Threshold means the sales by TearLab of the Product to end user customers exceed 1.075 million units over a period of
    3 consecutive 3 month periods, that is months: 1, 2 and 3; 2, 3 and 4: and 3, 4 and 5.

 

	1.2	Interpretation

 

	 	(1)	Reference
    to:

 

	 	(a)	one
    gender includes the others;
	 	 	 
	 	(b)	a
    person includes a body corporate;
	 	 	 
	 	(c)	a
    party includes the party’s executors, administrators, successors and permitted assigns;
	 	 	 
	 	(d)	a
    statute, regulation, code or other law or a provision of any of them includes:

 

	 	(i)	any
    amendment or replacement of it; and
	 	 	 
	 	(ii)	another
    regulation or other statutory instrument made under it, or made under it as amended or replaced; and

 

	 	(e)	dollars
    means US dollars unless otherwise stated.

 

	 	(2)	“Including”
    and similar expressions are not words of limitation.

 

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	 	(3)	Where
    a capitalized word or expression is given a particular meaning, other parts of speech and grammatical forms of that capitalized
    word or expression have a corresponding meaning.
	 	 	 
	 	(4)	Headings
    and any table of contents or index are for convenience only and do not form part of this Agreement or affect its interpretation.
	 	 	 
	 	(5)	A
    provision of this Agreement must not be construed to the disadvantage of a party merely because that party was responsible
    for the preparation of the Agreement or the inclusion of the provision in the Agreement.
	 	 	 
	 	(6)	If
    an act must be done on a specified day which is not a Business Day, it must be done instead on the next Business Day.

 

	2.	Establishment
    of New Location
	 	 
	2.1	MiniFAB
    to establish New Location
	 	 
	 	From
    the date this Agreement is signed, MiniFAB will work to establish a facility on the United States of America mainland (New
    Location) where NewFAB will undertake the final assembly of the Product.
	 	 
	2.2	Commencement
    of US final assembly

 

	 	(1)	Not
    more than 6 months after the Volume Threshold is reached (or earlier if MiniFAB determines), provided there is at least 2
    years remaining on the Term, MiniFAB and TearLab will meet in good faith to determine whether the projected manufacturing
    volume requirements for the remainder of the Term warrant investment in the New Location.
	 	 	 
	 	(2)	If
    the parties determine that a New Location is warranted, then MiniFAB must provide TearLab with written notice of the date
    on which the New Location will become operative for final assembly of the Product, which date shall be no later than 18 months
    after the date in which determination is made (Readiness Notice). The Readiness Notice will provide at least 3 months’
    notice of the date that final assembly at the New Location will commence from. The Readiness Notice is to be accompanied by
    an executed Deed Poll of Accession, and if required provide details of NewFAB.
	 	 	 
	 	(3)	Upon
    receipt of the Readiness Notice TearLab may enter and inspect the New Location with a view to satisfying itself the New Location
    is reasonably suitable for the conduct of final assembly of the Product in accordance with this Agreement. If TearLab considers
    there are any deficiencies it will notify MiniFAB, and either the deficiencies must be rectified or otherwise resolved. If
    acceptance of the New Location for final assembly cannot be agreed between MiniFAB and TearLab within 2 months of the Readiness
    Notice, then the matter will be dealt with in accordance with clause 20. After acceptance and at least 2 weeks prior to the
    New Location becoming operative for final assembly of the Product, MiniFAB will provide TearLab with a further written notice
    specifying the operative date.

 

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	2.3	Accession
    of NewFAB

 

	 	At
    the appropriate time as provided for by clause 2.2 MiniFAB must deliver to TearLab an executed Deed Poll of Accession. Thereafter,
    as and from the Final Assembly Changeover Date, NewFAB will be bound to perform and discharge those obligations placed upon
    it as a Supplier under this Agreement.

 

	2.4	Other
    markets - other locations

 

	 	(1)	When
    TearLab sales to its customers of Product in agreed target markets other than the United States (Other Market Sales) reach
    levels to be agreed, MiniFAB will establish additional facilities to service those target markets in which the Product will
    undergo assembly and packaging ready for shipment to customers in those markets.
	 	 	 
	 	(2)	When
    Other Market Sales reach significant levels, but short of the levels referred to in clause 2.4(1), MiniFAB and TearLab will
    discuss whether other market distribution services might be warranted and could be established and priced on mutually
    beneficial basis.

 

	2.5	Discuss
    warehousing

 

	 	Within
    2 months after receipt of the Readiness Notice under clause 2,2, TearLab will initiate discussions with MiniFAB in relation
    to the possibility of warehousing and logistics services being delivered to TearLab by MiniFAB.

 

	3.	Manufacture
    of Product
	 	 
	3.1	Development
    of Specifications

 

	 	The
    Specifications may be modified or amended by mutual written agreement of the Parties. In the event that TearLab requests changes
    to the Specifications MiniFAB agrees to use Commercially Reasonable Efforts to accommodate such requested changes.

 

	3.2	Product
    compliance

 

	 	MiniFAB
    shall set up the manufacturing process, manufacture the Product, and assemble and package the Product, all in accordance with
    the Specifications and all Regulatory Requirements. MiniFAB shall label the Product with such labels, tradenames, and trademarks
    as directed by TearLab.

 

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	3.3	Supply
    and Purchase Obligations

 

	 	(1)	MiniFAB
    shall manufacture the Product exclusively for TearLab; and MiniFAB shall sell the Product exclusively to TearLab or its designee;
    and unless the Parties otherwise agree MiniFAB shall not otherwise manufacture, sell, or distribute the Product to any third
    party.
	 	 	 
	 	(2)	TearLab
    must exclusively order the Product from MiniFAB unless there are Exceptional Circumstances or clause 3.3(5) applies . For
    the purposes of this Agreement, Exceptional Circumstances mean:

 

	 	(a)	an
    inability by MiniFAB to provide the Product for 60 days; or
	 	 	 
	 	(b)	a
    3 month period in which each delivery of Product has at least 10% of the Product failing to meet the Supply Requirements,
    and MiniFAB being unable to supply conforming replacement Product such that MiniFAB would have to exceed the Monthly Manufacturing
    Limit in the following two months in order to ensure that it was able to supply the forecast requirements of Product in those
    two months.

 

	 	 	In
    the case that there are Exceptional Circumstances, MiniFAB may notify TearLab when the Exceptional Circumstances have been
    overcome and TearLab will be required, from 60 days after such notification, to be supplied exclusively with Product from
    MiniFAB; provided that TearLab shall have the right to fully honor any supply commitments incurred by TearLab resulting from
    the Exceptional Circumstances, to the extent that such commitment are not inconsistent with this Agreement.

 

	 	(3)	MiniFAB
    hereby acknowledges that TearLab needs to obtain a reliable supply of the Product that meet certain quality, quantity and
    timing requirements, and agrees to comply with the following Supply Requirements:

 

	 	(a)	ensure
    that each batch of Product is in full compliance with the Specifications (allowing for any failure rates specified in the
    Specifications); and
	 	 	 
	 	(b)	ensure
    that it does not for 3 successive months deliver to TearLab less than 95% of quantity of Product ordered by TearLab for delivery
    in those months in accordance with this agreement, after taking account of replacement Product.

 

	 	(4)	If
    MiniFAB fails to comply with the Supply Requirements then:

 

	 	(a)	MiniFAB
    must provide TearLab with the reasons for the non-compliance;
	 	 	 
	 	(b)	the
    parties must meet and discuss the reasons given by MiniFAB;
	 	 	 
	 	(c)	the
    parties must, acting reasonably, negotiate a mutually agreed remedy plan to address the reasons for the non-compliance; and
	 	 	 
	 	(d)	MiniFAB
    must implement the agreed remedy plan.

 

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	 	(5)	If
    MiniFAB:

 

	 	(a)	gives
    notice to TearLab of Exceptional Circumstances or TearLab reasonably determines that the Exceptional Circumstances have occurred;
    or
	 	 	 
	 	(b)	fails
    to meet Supply Requirements more than 3 times in any 18 month period and is unable to satisfy TearLab (acting reasonably)
    that it will be able to maintain a reliable supply of the Product that meet the quality, quantity and timing requirements,
    then TearLab may order the Product from an alternative supplier.

 

	 	(6)	MiniFAB
    acknowledges and agrees that in consideration for Customer’s agreement to purchase the Product exclusively from MiniFAB,
    TearLab shall be entitled to all remedies (which remedies shall be cumulative) available under this Agreement and under applicable
    law, including without limitation the reasonable cover remedy, subject to TearLab duty to reasonably mitigate the damages.

 

	4.	Forecasting
    and ordering
	 	 
	4.1	Basic
    Forecast

 

	 	(1)	15
    Business Days before the 1st day of each calendar month, TearLab must submit to the Supplier a forecast of the
    quantity of the Product that TearLab expects to take delivery of in each of the next 12 months. This will be on the basis
    that:

 

	 	(a)	Month
    1 — will be a firm order for Product (Purchase Order), which the Supplier must accept and comply with, provided it is
    no more than 120% of the quantity specified in Month 2 of the prior forecast, does not breach the Upper Limit Rule below and
    is no more than the Monthly Manufacturing Limit;
	 	 	 
	 	(b)	Months
    2 and 3 are constrained forecasts and cannot be more than 120% of the quantity specified in Months 3 and 4 respectively of
    the prior forecast;
	 	 	 
	 	(c)	Months
    4 through 12 are best efforts forecasts by TearLab but are not binding in any way; and
	 	 	 
	 	(d)	The
    total of months 1 through to 6 multiplied by 1.2 represents an aggregate upper limit on the total orders for Product that
    the Supplier can be required to manufacture and deliver in that 6 month period (the Upper Limit Rule).

 

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    	 	-11-	 

    	 	 	 

    

 

	 	(2)	A
    Purchase Order constitutes an irrevocable offer in respect of the relevant month made by TearLab to the Supplier for the Product
    for the delivery of the Product to the Delivery Point all in accordance with the terms and conditions of this Agreement. Once
    received by the Supplier, the Purchase Order is firm and may not be cancelled or modified without the Supplier’s prior
    written consent.
	 	 	 
	 	(3)	Subject
    to clauses 4.1(4) and 4.2, the Supplier must accept a Purchase Order if the quantity of the Product the subject of the Purchase
    Order is no more than 120% of the most recent forecast for that month, it does not breach the Upper Limit Rule and is no more
    than the Monthly Manufacturing Limit (Complying Order). In addition, the Supplier agrees to use Commercially Reasonable Efforts
    to accept and satisfy an order which is not a Complying Order. In the event that TearLab places an order which is not a Complying
    Order, the Supplier shall:

 

	 	(a)	accept
    the Purchase Order with respect to quantities that would mean the order is a Complying Order; and
	 	 	 
	 	(b)	notify
    TearLab in writing of those quantities (if any) exceeding such quantity as the Supplier is prepared to deliver, which together
    with the quantities accepted under clause 4.1(3)(a) will be taken to comprise the Purchase Order.

 

	 	(4)	If
    the Supplier believes, on reasonable grounds, that a Purchase Order is materially incorrect or, to the extent a Purchase Order
    is not a Complying Order, the Supplier is not capable of satisfying the Purchase Order to the extent of such excess, the Supplier
    must notify TearLab as soon as possible. If the Supplier does not reject a Purchase Order to the extent of such excess within
    5 Business Days of receipt of the Purchase Order, then the Supplier is deemed to have accepted the Purchase Order in full.
    Any rejection by the Supplier of a Purchase Order that is not provided for in this clause 4.1(4) is deemed to be a material
    breach of this Agreement for the purposes of clause 17.2(1).

 

	4.2	Capacity
    increase

 

	 	(1)	When
    the Volume Threshold is reached, provided that there is at least two years remaining in the Term, upon request by TearLab
    MiniFAB and TearLab will meet in good faith to determine whether the projected manufacturing volume requirements for the remainder
    of the Term warrant investment in an increase in its annual production capacity of Product to 10 million units (or some other
    capacity increase that is economically viable).

 

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	 	(2)	If
    the parties determine that an increase in its annual production capacity is warranted (including TearLab being satisfied that
    the capital expenditure is proportionate to the economic value likely to be derived), then MiniFAB will initiate an increase
    in its annual production capacity of Product to 10 million units per annum (or such other capacity increase as is agreed).
    MiniFAB will use Commercially Reasonable Efforts to have such increased capacity online within 12 months of such event occurring.
    When such increased capacity is on-line MiniFAB will advise TearLab and advise the new Monthly Manufacturing Limit.
	 	 	 
	 	(3)	When
    MiniFAB advises TearLab of the new Monthly Manufacturing Limit under clause 4.2(1), the increased capacity will be deemed
    to be a Requested Capacity Increase of 5 million Product units per annum for the purposes of clauses 4.3(2), 4.3(3) and 4.3(4).

 

	4.3	Manufacturing
    Limit

 

	 	(1)	TearLab
    may, at any time initiate discussions to determine whether the projected manufacturing volume requirements for the remainder
    of the Term warrant investment in an increase in MiniFAB’s annual production capacity (noting that on the basis of current
    manufacturing technology, economical increases will be in steps of 5 million Product units per annum). if the parties determine
    that an increase in annual production capacity is warranted, then TearLab may request that the production capacity be increased
    (Requested Capacity Increase).
	 	 	 
	 	(2)	If
    new facilities are required to meet the Requested Capacity Increase, there will be an 18 month lead time for the Requested
    Capacity Increase to come on-line, Otherwise, there will be a 12 month lead time for the Requested Capacity Increase to come
    on-line. Once the Requested Capacity Increase comes on-line MiniFAB will advise TearLab of the new Monthly Manufacturing Limit.
	 	 	 
	 	(3)	If
    MiniFAB agrees to meet a Requested Capacity Increase, TearLab must provide Purchase Orders in the 3 years after the Requested
    Capacity Increase comes online (or such shorter period which ends at the end of the Term) which require at least 80% of the
    Requested Capacity Increase to be utilised over the 3 years (or such shorter period which ends at the end of the Term) (the
    AP Period). Such calculation is to be done on the basis that the full capacity of the pre-existing production capacity is
    utilised, before the added capacity is used, even if the added capacity was actually utilised to produce the relevant Products.
	 	 	 
	 	(4)	If
    TearLab fails to provide Purchase Orders which meet the requirements of clause 4.3(3), TearLab will reimburse the Supplier
    for the un-recouped proportion of the capital expense of undertaking the Requested Capacity Increase as determined in accordance
    with the following formula. Once evidence of the capital expense is provided, TearLab will pay such compensation within 30
    days.

 

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    	 	-13-	 

    	 	 	 

    

 

	 	CP
    =	RCIxAPx0.8
    — PO	xCE	 
	 	RCIxAP	 

 

	 	Where:
	 	 
	 	CP
    is the compensation payable to MiniFAB, but may not be less than zero. RCI is the Requested Capacity Increase per annum.
	 	 
	 	AP
    is the period in years for which the increased capacity is on-line during the Term expressed in years, capped at a maximum
    of 3.
	 	 
	 	PO
    is the total number of units of Product supplied during the AP Period after deducting the capacity available during the AP
    Period before the Requested Capacity Increase.
	 	 
	 	CE
    is the capital expense of undertaking the Requested Capacity Increase. The Supplier will be required to provide evidence of
    this amount.

 

	4.4	Management
    of stock levels of Product

 

	 	(1)	TearLab
    will use all reasonable endeavours to order sufficient quantities of Product to ensure that, subject to the Supplier performing
    its obligations under this Agreement, TearLab maintains on hand in the United States a sufficient stock of Product which has
    been delivered by the Supplier to satisfy three months expected demand (Target Stock).
	 	 	 
	 	(2)	The
    relevant stock may be warehoused in whole or in part by the Supplier, subject to the parties agreeing commercial terms for
    that additional service.

 

	4.5	Minimum
    Order Requirement

 

	 	In
    any given period of 6 calendar months, TearLab must place in those 6 months aggregate Purchase Orders equal to 50% of the
    aggregate of the forecast orders for Product provided in the respect of the first month of that period (the Minimum Orders).
    If TearLab fails to do so, then it must pay to MiniFAB an amount equal to the Price (as set out in the Pricing Schedule) multiplied
    by the difference between the Minimum Orders and the actual aggregate Purchase Orders. Unless otherwise agreed, such amount,
    if any, will be calculated and invoiced by MiniFAB within 60 days of the end of the relevant 6 month period, and be payable
    by TearLab within 40 days of invoice. Where any such sum is paid, it will be deemed to be equivalent to a Purchase Order of
    the relevant number of Products in the month in which it is paid, and be taken into account in any further calculation under
    this clause in respect of that month.

 

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    	 	-14-	 

    	 	 	 

    

 

	5.	Delivery
	 	 
	5.1	Product

 

	 	MiniFAB
    will manufacture the Product ordered in respect of a month and deliver it CIP (Incoterms 2010) for no delivery charge to the
    Delivery Point by the end of the relevant month. In the event that any two or more consecutive monthly orders by TearLab in
    accordance with clause 4 are delivered more than forty-five (45) day after the end of the month to which they relate (unless
    some later date has been agreed), then TearLab shall be entitled to a ten percent (10%) discount on the Price of the Products
    which were not delivered at the end of that 45 day period. Provided that the Products are delivered within 90 days after the
    end of the relevant month, then the discount set out above is the sole and exclusive remedy of TearLab for any loss, damage
    or liability suffered or incurred by TearLab in connection with the delay. To avoid doubt, delivery occurs when the Products
    are available for inspection at the Delivery Point.

 

	5.2	Inspection
    and Nonconforming Product

 

	 	(1)	TearLab
    has the right to enter the MiniFAB Facility and inspect the Product within 14 days after delivery (or such longer time as
    provided in the Technical Agreement) and must accept the Product if they meet the Specifications. The Product will be deemed
    accepted if TearLab does not inspect the Product within such 14 day period. If TearLab fails to object in writing within the
    applicable period, then TearLab must accept the delivered Product. TearLab may reject the delivered Product only if the Product
    fail to meet the Specifications. If TearLab rejects the delivered Product, TearLab must provide MiniFAB in writing the reasons
    for the rejection and the reasonably available evidence to substantiate those reasons.
	 	 	 
	 	(2)	If
    TearLab rejects any Product, then MiniFAB shall promptly supply conforming replacement Product as soon as possible, whether
    or not MiniFAB agrees that TearLab properly rejected such Product. MiniFAB agrees to notify TearLab in writing if such replacement
    Product cannot be despatched from the MiniFAB Facility within five (5) Business Days.
	 	 	 
	 	(3)	If
    TearLab properly rejected the original Product, then:

 

	 	(a)	TearLab’s
    payment for the rejected Product shall be deemed payment for the replacement Product; and
	 	 	 
	 	(b)	If
    it takes MiniFAB more than 1 month after the original required delivery date to deliver the replacement Product, then TearLab
    shall be entitled to a ten percent (10%) discount on the Price of the rejected Product, and provided the replacement Product
    are delivered within 2 months of the original required delivery date then that discount is the sole and exclusive remedy of
    TearLab for any loss, damage or liability suffered or incurred by TearLab in connection with the rejected Product.

 

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	 	(4)	If
    TearLab was not entitled to reject the original Product in accordance with clause 5.2(1) then TearLab shall pay for both the
    rejected Product and the replacement Product.
	 	 	 
	 	(5)	If
    the parties disagree whether TearLab properly rejected the original Product, then the parties shall refer such matter to a
    mutually acceptable, independent testing laboratory (the Testing Lab) to determine whether such Product were properly rejected.
    The fees and costs of the Testing Lab shall be borne by TearLab if the Testing Lab determines that the Product were improperly
    rejected and by MiniFAB if the Testing Lab determines that the Product were properly rejected. If the Testing Lab is unable
    to determine whether the rejected Product met the Specifications, then either party may submit the matter to the dispute resolution
    process in clause 20.
	 	 	 
	 	(6)	TearLab
    may withhold payment for any rejected Product (and only the rejected Product) until:

 

	 	(a)	MiniFAB
    delivers conforming Product, or
	 	 	 
	 	(b)	the
    Testing Lab or dispute resolution process determines that the Product rejected by TearLab met the Specifications.

 

	5.3	Risk
    and title

 

	 	(1)	Risk
    in the Product will remain with the Supplier until the Product is provided at the Delivery Point.
	 	 	 
	 	(2)	Property
    in the Product supplied by the Supplier to TearLab under this Agreement does not pass to TearLab until the money owing for
    the Product has been paid in full. If TearLab in the meantime takes custody of the Product, TearLab retains them as bailee
    of the Supplier. Once title to Products passes to TearLab, the Supplier retains a lien on them in respect of other monies
    payable to it by TearLab.

 

	5.4	Quality
    Control

 

	 	MiniFAB
    shall conduct all quality control testing of the Product supplied under this Agreement prior to delivery in accordance with
    the relevant Technical Agreement and applicable Laws. MiniFAB shall, and shall cause its subcontractors to, retain records
    and samples of Product relating to such testing, and samples (identified by batch number) of the Product supplied to TearLab,
    in each case in conditions and for times as required by applicable Law (collectively, Delivery Samples), and shall
    provide TearLab with reasonable access to the Delivery Samples for testing and other purposes on TearLab’s request.
    If TearLab conducts quality control testing of Product after their delivery to TearLab, TearLab must use the same analytical
    methodology as used by MiniFAB. Upon written request from TearLab, MiniFAB shall provide a reasonably detailed description
    of the analytical methodology used by MiniFAB for quality control testing of the Product.

 

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    	 	-16-	 

    	 	 	 

    

 

	6.	Price
	 	 
	6.1	Pricing
    Schedule
	 	 
	 	The
    Price for the Product is set out in the Pricing Schedule.
	 	 
	6.2	Provisions
    of the Pricing Schedule
	 	 
	 	To
    the extent the Pricing Schedule contains any provisions inconsistent with the body of this Agreement the provisions of the
    Pricing Schedule apply.
	 	 
	6.3	Invoicing
	 	 
	 	MiniFAB
    will invoice TearLab the Price for Product after shipment to the Delivery Point.
	 	 
	6.4	Payment
	 	 
	 	TearLab
    must pay all undisputed invoices within 40 days after date of the invoice.
	 	 
	6.5	Interest
	 	 
	 	If
    TearLab fails to pay an amount on the due date for any undisputed payment, TearLab must additionally pay interest at the Default
    Rate on the amount outstanding. Interest will be calculated and payable monthly, computed on the last day of each month on
    the maximum outstanding during that month, from the due date until all amounts are paid in full. MiniFAB may apply any payments
    received from TearLab against the interest on outstanding amounts first.
	 	 
	6.6	Transition
    Payments
	 	 
	 	In
    addition to the Price for the Product TearLab must pay the Transition Payments to MiniFAB on the dates set out in the Pricing
    Schedule,

 

	7.	Disaster
    Recovery Planning
	 	 
	7.1	Duplicate
    final assembly Cell
	 	 
	 	Once
    the Volume Threshold is reached, provided there is at least 2 years remaining on the Term, MiniFAB and TearLab will meet in
    good faith to determine whether the projected manufacturing volume requirements for the remainder of the Term warrant investment
    in a duplicate final assembly and packaging cell at an alternative and separate secured location within the MiniFAB Facility
    or New Location.

 

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    	 	-17-	 

    	 	 	 

    

 

	7.2	Base
    Card stock

 

	 	(1)	MiniFAB
    will manufacture and hold a supply of Base Cards, to enable MiniFAB to re-establish its Manufacturing capacity within a reasonable
    period following a disaster event. The supply will be as agreed, but will not be less than 3 months’
	 	 	 
	 	(2)	After
    the Final Assembly Changeover Date, 2 months’ supply of the Base Card stock held under clause 7.2(1) will be held in
    the New Location.

 

	8.	Development
    of New Products
	 	 
	8.1	R&D
    Services

 

	 	(1)	R&D
    Services for New Products include:

 

	 	(a)	project
    management services relating to the development of the New Product;
	 	 	 
	 	(b)	assisting
    TearLab in the development, validation and finalisation of the Requirement Definitions for the New Product;
	 	 	 
	 	(c)	assisting
    TearLab in the development, validation and finalisation of the Specifications for the New Product;
	 	 	 
	 	(d)	using
    Commercially Reasonable Efforts to develop processes, methodology and technology to manufacture the New Product;
	 	 	 
	 	(e)	using
    Commercially Reasonable Efforts to evaluate and recommend appropriate technology necessary to manufacture the New Product;
	 	 	 
	 	(f)	using
    Commercially Reasonable Efforts to develop and construct plant and equipment necessary to manufacture the New Product; and
	 	 	 
	 	(g)	such
    other services as specified in a Development Order.

 

	 	(2)	R&D
    Services exclude.

 

	 	(a)	the
    initial formulation of and research on the Requirement Definitions for the New Product;
	 	 	 
	 	(b)	carrying
    out experiments, clinical tests or other validation methodologies in relation to the New Product;

 

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	 	(c)	preparations
    or filings relating to obtaining Registration for the New Product;
	 	 	 
	 	(d)	sales,
    distribution, marketing or public release of the New Product;
	 	 	 
	 	(e)	patent
    review; and
	 	 	 
	 	(f)	legal
    or other professional advisory services.

 

	8.2	Request
    for development

 

	 	(1)	TearLab
    may, from time to time, request MiniFAB in writing to provide R&D Services to develop a New Product (Development Request).
	 	 	 
	 	(2)	Subject
    to clause 8.2(4), if and when TearLab elects, in its discretion, to develop a Second Product, TearLab agrees that it will
    provide an opportunity for MiniFAB to provide the R&D Services with respect to the Second Product, as follows:

 

	 	(a)	TearLab
    shall provide a written Development Request for the Second Product pursuant to clauses 8.2(1) and 8.2(3);
	 	 	 
	 	(b)	the
    parties shall discuss in good faith the anticipated activities under the Development Request and capabilities required to
    perform such activities;
	 	 	 
	 	(c)	if
    MiniFAB does not wish to undertake to perform the applicable R&D Services for the Second Product, MiniFAB agrees to promptly
    notify TearLab in writing;
	 	 	 
	 	(d)	if
    MiniFAB wishes to perform the applicable R&D Activities for the Second Product, MiniFAB shall propose the financial terms
    under which it is willing to undertake the R&D Services specified in the Development Request; and
	 	 	 
	 	(e)	if
    MiniFAB has appropriate capability to perform such R&D Activities for the Second Product as set forth in the Development
    Request, and offers to perform such activities on financial terms that are at least as favorable to TearLab as other bids
    for conducting such R&D Services TearLab receives from third parties with capability of performing such R&D Services,
    then TearLab shall engage MiniFAB for the conduct of such R&D Services for the Second Product. In such event, the parties
    shall prepare and sign a mutually agreed written Development Order, which shall set forth the activities to be conducted,
    timelines, deliverables, financial terms, and other mutually agreed terms and conditions regarding such R&D Services.
    Such Development Order shall be consistent with the intellectual property provisions and other applicable terms and conditions
    of this Agreement.

 

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    	 	-19-	 

    	 	 	 

    

 

	 	 	Subject
    to the foregoing and clause 8.2(5), TearLab may engage any other person to provide R&D Services and TearLab shall have
    no obligation to engage MiniFAB to perform any R&D Services. For clarity, TearLab shall not be obligated to engage MiniFAB
    to perform R&D Services for any New Product other than the Second Product.

 

	 	(3)	A
    Development Request must include:

 

	 	(a)	a
    detailed description of the New Product;
	 	 	 
	 	(b)	draft
    Requirement Definitions for the New Product; and
	 	 	 
	 	(c)	a
    draft project plan including a proposed timetable.

 

	 	(4)	MiniFAB
    will consider a Development Request and notify TearLab in writing whether or not MiniFAB accepts the Development Request within
    20 Business Days of receipt of the request. If MiniFAB fails to respond within that time period, then it is deemed to have
    rejected the Development Request. To avoid doubt, MiniFAB is not required to provide any reason for rejecting a Development
    Request. It is understood that the Development Request is intended as an opportunity for the parties to negotiate terms and
    conditions on which MiniFAB may conduct the applicable R&D Services for TearLab. Accordingly, (i) MiniFAB shall not be
    obligated to accept any Development Request, and (ii) except as expressly set forth in clause 8.2(2)(e) with respect to the
    Second Product, TearLab shall not be obligated to engage MiniFAB to conduct R&D Services. Without limiting the foregoing,
    if MiniFAB rejects (or is deemed to have rejected) the Development Request for the Second Product, then despite clause 8.2(2),
    TearLab may engage another service provider to provide R&D Services in respect of that Development Request. TearLab shall
    have no obligation to offer to MiniFAB any further opportunity, or to engage MiniFAB, to perform any R&D Services except
    as expressly set forth under clause 8.2(2).
	 	 	 
	 	(5)	Without
    limiting anything else in this clause 8, if TearLab wishes to develop any New Product that is relevant to MiniFAB’s
    technology, it must provide MiniFAB with the opportunity to submit a proposal for the performance of the work by providing
    a Development Request. TearLab may also tender the development work in respect of the New Product to any other person, but
    it must give MiniFAB a final opportunity to quote on the work before offering the job to someone else.

 

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    	 	-20-	 

    	 	 	 

    

 

	8.3	Development
    Order

 

	 	(1)	If
    MiniFAB accepts a Development Request, then:

 

	 	(a)	MiniFAB
    will provide TearLab with a revised draft project plan including proposed milestones and payment milestones; and
	 	 	 
	 	(b)	the
    parties must meet within 20 Business Days of the acceptance to meet and discuss the Development Request with the intent to
    finalise a Development Order.

 

	 	(2)	The
    parties will act reasonably in negotiating the terms of the Development Order.
	 	 	 
	 	(3)	To
    avoid doubt, neither party is bound by a Development Request, a Development Order or any obligations to develop a New Product
    until the relevant Development Order is signed by both parties.

 

	8.4	Provision
    of R&D Services

 

	 	(1)	MiniFAB
    will provide the R&D Services in accordance with the relevant Development Order in a diligent and ethical manner, with
    due care and skill and to a high professional standard, in accordance with this Agreement, and all applicable Regulatory Requirements.
	 	 	 
	 	(2)	MiniFAB
    will use Commercially Reasonable Efforts to meet any milestones agreed in the relevant Development Order. Each Development
    Order may specify the agreed-upon remedies that shall apply for any failure by MiniFAB to meet such milestones, or otherwise
    fail to perform the R&D Services in accordance with clause 8.4(1).

 

	8.5	Responsibilities
    of each party

 

	 	(1)	MiniFAB
    is responsible for and will bear the costs and expenses associated with:

 

	 	(a)	the
    provision of the R&D Services in accordance with the relevant Development Order (Development Expenses); and
	 	 	 
	 	(b)	the
    construction and acquisition of any plant and equipment and other related capital expenditures relating to the R&D Services.

 

	 	(2)	TearLab
    will develop, validate and finalise the Requirement Definitions and the Specifications of the New Product in consultation
    with MiniFAB. MiniFAB will assist TearLab in accordance with the R&D Services.
	 	 	 
	 	(3)	TearLab
    is solely responsible for and will bear all costs and expenses associated with all activities relating to the research and
    development of the New Product that are not expressly included as part of R&D Services or that are expressly excluded
    from the R&D Services.

 

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	8.6	Ownership
    of Requirement Definitions and Specifications
	 	 
	 	The
    Requirement Definitions and the Specifications of any Product and all Intellectual Property rights relating to any Product,
    the Requirement Definitions and the Specifications therefor are and will remain to be owned solely by TearLab. MiniFAB hereby
    assigns all Intellectual Property subsisting in the foregoing to TearLab.
	 	 
	8.7	Payment
    for R&D Services
	 	 
	 	TearLab
    will pay MiniFAB for the provision of the R&D Services in accordance with payment milestones specified in the relevant
    Development Order.
	 	 
	8.8	Other
    matters relating to Development Order
	 	 
	 	Prior
    to the Successful Completion of a New Product, the parties will meet and negotiate (acting reasonably) the following items
    relating to the New Product:

 

	 	(1)	the
    Pricing Schedule for the New Product;
	 	 	 
	 	(2)	the
    Manufacturing and Ordering Schedule (including the Annual Production Capacity) for the New Product, if any; and
	 	 	 
	 	(3)	if
    the New Product is a replacement or successor of an existing Product, variations to the Manufacturing and Ordering Schedule
    of the existing product (including the Annual Production Capacity and Expected Limit) for that existing Product.

 

	8.9	Prototype
    Acceptance Testing

 

	 	(1)	If
    required under the relevant Development Order, the parties will conduct acceptance testing of the New Product in accordance
    with this clause 8.9.
	 	 	 
	 	(2)	Promptly
    upon completion of the development of the New Product, MiniFAB shall manufacture and supply to TearLab a reasonable number
    of prototype units for the purposes of TearLab’s testing and evaluation, together with such documentation (including
    without limitation the QA test report), materials and equipment reasonably necessary for TearLab to perform testing and evaluation
    of the prototype. It is understood that the mutually agreed Development Order may provide for the supply and testing of multiple
    sets of prototype units for the New Product at different stages of development (such as, for example, alpha prototypes and
    beta prototypes).
	 	 	 
	 	(3)	TearLab
    may reject the prototype of the New Product only if it does not conform to the Requirement Definitions. TearLab must accept
    the prototype of the New Product if it conforms to the Requirement Definitions.

 

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	 	(4)	If
    TearLab rejects the prototype then TearLab must notify MiniFAB of the reasons for such rejection and MiniFAB will have thirty
    (30) days to cure such defect or non-conformance or dispute TearLab’s rejection pursuant to the dispute resolution process
    under clause 19. TearLab may require MiniFAB to resubmit revised prototype units to TearLab for testing and evaluation until
    the prototype fully conforms to the Requirement Definitions of the Product.
	 	 	 
	 	(5)	Upon
    TearLab’s acceptance of the New Product (“Acceptance”), TearLab shall promptly inform MiniFAB in writing.

 

	8.10	Successful
    Completion
	 	 
	 	Successful
    Completion in relation to a New Product means:

 

	 	(1)	if
    the relevant Development Order provides a definition - the meaning ascribed to that term in the Development Order; or
	 	 	 
	 	(2)	the
    Acceptance of a New Product by TearLab, as such term is defined in clause 8.9.

 

	8.11	Discontinuance
    — Unable to finalise Requirement Definitions
	 	 
	 	If
    the parties are unable to finalise the Requirement Definitions for the New Products by the deadline specified in the relevant
    Development Order (or after a reasonable time if no such deadline is specified), then either party may discontinue the relevant
    Development Order by notifying the other party in writing, in which case TearLab will be solely responsible for all Development
    Expenses incurred up to that point in time and any other unavoidable costs reasonably incurred by MiniFAB in connection with
    the discontinuance.
	 	 
	8.12	Discontinuance
    — TearLab
	 	 
	 	TearLab
    may discontinue the development of any New Product at any time upon written notice, in which case MiniFAB will invoice, and
    TearLab must pay, all outstanding amounts that are payable in accordance with the payment milestones specified in the Development
    Order for the R&D Services actually rendered by MiniFAB prior to the termination of the relevant Development Order. It
    is understood and agreed that any R&D Services with respect to the Second Product and any other New Product will be undertaken
    in reasonable stages in order to provide TearLab an opportunity to evaluate the results of the R&D Services in each such
    stage and to determine whether TearLab, in its discretion, wishes to cease development of the Second Product or other New
    Product. In the event that TearLab unilaterally discontinues development of the Second Product and terminates the corresponding
    R&D Services (other than as a result of MiniFAB’s inability or unwillingness to conduct such R&D Services, or
    as set forth in clause 17.2) prior to MiniFAB’s shipment of beta prototypes, then TearLab agrees that it will provide
    an opportunity for MiniFAB to provide the R&D Services with respect to development of its next subsequent New Product
    (excluding any New Products then already under contract for development by third parties) as set forth in clause 8.2(2), subject
    to the terms of clause 8.2(4).

 

[***]
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treatment has been requested with respect to the omitted portions.

 

    	 	-23-	 

    	 	 	 

    

 

	8.13	Definitions
    used in this clause

 

	 	(1)	New
    Products means any test cards developed pursuant to this Agreement and any other goods that the parties agree are New
    Products. For the avoidance of doubt, New Products do not include the first Product;
	 	 	 
	 	(2)	Second
    Product means the first New Product developed pursuant to this Agreement, which the parties intend to be a test cards
    similar to the first Product, provided that such product would be designed to measure either (i) a marker other than osmolarity,
    or (ii) both osmolarity and one other additional marker:

 

	9.	Intellectual
    Property
	 	 
	9.1	Ownership
    of Requirement Definitions and Specifications
	 	 
	 	The
    Requirement Definitions and the Specifications of the Product and all Intellectual Property rights relating to the Product,
    the Requirement Definitions and the Specifications are and will remain owned solely by TearLab.
	 	 
	9.2	TearLab
    Background IP
	 	 
	 	TearLab
    shall retain ownership of any pre-existing Intellectual Property rights in materials and information provided by TearLab to
    the Provider for use by the Provider for the purposes of undertaking activities under this Agreement.
	 	 
	9.3	MiniFAB
    Background IP

 

	 	(1)	MiniFAB
    shall retain ownership of any pre-existing Intellectual Property rights in materials, information, tools and methodologies
    provided by MiniFAB for the purposes of undertaking activities under this Agreement, and any improvements to them (except
    to the extent that those improvements relate solely to the Product (Dedicated Improvements)) (collectively, “MiniFAB
    Background IP”) and MiniFAB hereby grants TearLab a worldwide, non-exclusive, royalty-free license (with the right to
    grant and authorize sublicenses) to make, have made, use, offer for sale, sell and otherwise exploit MiniFAB Background IP
    as may be required to make, have made, use, offer for sale, sell and otherwise exploit the Product or incorporated into processes
    or procedures for manufacturing or testing the Product.
	 	 	 
	 	(2)	All
    MiniFAB Background IP shall be treated by TearLab and its sublicensees and their third party manufacturers as Confidential
    Information of MiniFAB; provided, however, that

 

[***]
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treatment has been requested with respect to the omitted portions.

 

    	 	-24-	 

    	 	 	 

    

 

	 	(a)	TearLab
    may disclose the MiniFAB Background IP to actual and potential investors, sublicensees, advisors and/or contract manufacturers
    of Base Cards or finished Products, in each case under reasonable and customary terms of confidentiality; and
	 	 	 
	 	(b)	TearLab
    and its sublicensees and contract manufacturers may disclose such information as is reasonably necessary in seeking regulatory
    approvals in connection with the manufacture, clinical development, use or commercialization of Product.

 

	9.4	Limited
    licences

 

	 	(1)	Subject
    to the terms and conditions of this Agreement, TearLab grants a non-exclusive licence (TearLab Licence) in respect of any
    Intellectual Property, know-how and technical information owned (or licensed with the right to sublicense) by TearLab relating
    to the Manufacture of the Base Cards or final assembly of the finished Product (TearLab IP) to:

 

	 	(a)	MiniFAB
    to perform MiniFAB’s obligations under this Agreement, which licence may not be sublicensed (except lo the extent necessary
    to allow MiniFAB to subcontract as permitted under clause 16), is royalty free and continues only during the Term:
	 	 	 
	 	(b)	NewFAB
    to perform NewFAB’s obligations under this Agreement, which licence may not be sublicensed (except to the extent necessary
    to allow MiniFAB to subcontract as permitted under clause 16), is royalty free and continues only during the Term; and
	 	 	 
	 	(c)	MiniFAB
    to reproduce, use and modify the TearLab IP solely for the purposes of manufacturing, marketing, distributing and selling
    the Product in accordance with clause 17.5, which licence may be sublicensed, is royalty bearing in accordance with clause
    17.5(2)(e), and continues for the term provided in clause 17.5(2)(b), and is irrevocable.

 

	 	(2)	Under
    the licences granted in clauses 9.4(1)(a) and 9.4(1)(b) MiniFAB and NewFAB may only use the TearLab IP to the extent necessary
    or desirable to perform their obligations under this Agreement.

 

	9.5	Provision
    of TearLab IP materials
	 	 
	 	TearLab
    will provide or otherwise make available all information and materials relating to the TearLab IP known to or possessed by
    TearLab that are reasonably necessary to enable MiniFAB and NewFAB to perform their obligations under this Agreement.

 

[***]
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treatment has been requested with respect to the omitted portions.

 

    	 	-25-	 

    	 	 	 

    

 

	9.6	Ownership
    of TearLab IP and Improvements to TearLab IP

 

	 	(1)	All
    TearLab IP, together with all improvements to TearLab IP, including any modifications and developments made thereto by MiniFAB
    or NewFAB, and any Dedicated Improvements (collectively, TearLab Improvements), shall be the sole property of TearLab. MiniFAB
    and NewFAB hereby assign to TearLab their entire right, title and interest in TearLab Improvements. TearLab Improvements will
    be included in TearLab IP and covered by the TearLab Licence.
	 	 	 
	 	(2)	All
    TearLab IP shall be treated by MiniFAB and NewFAB as Confidential Information of TearLab.
	 	 	 
	 	(3)	MiniFAB
    and NewFAB shall promptly disclose to TearLab all TearLab Improvements, and provide TearLab with copies of all information
    available to MiniFAB and NewFAB regarding TearLab Improvements.
	 	 	 
	 	(4)	To
    the extent any of the rights that the parties intend to be assigned by MiniFAB or NewFAB to TearLab (as set forth in clause
    9.1 and this clause 9.6) cannot be assigned by MiniFAB or NewFAB to TearLab, MiniFAB or NewFAB (as relevant) hereby grant
    to TearLab an exclusive, royalty-free, transferable, irrevocable, worldwide license (with rights to sublicense through multiple
    tiers of sub-licensees) to practice such non-assignable rights, title and interest. To the extent any of such rights can be
    neither assigned nor licensed by MiniFAB or NewFAB to TearLab, MiniFAB and NewFAB hereby irrevocably waive and agree never
    to assert such non-assignable and non-licensable rights, title and interest against TearLab or any of TearLab’s licensees
    or successors in interest to such non-assignable and non-licensable rights.

 

	9.7	IP
    Warranties and indemnity

 

	 	(1)	TearLab
    warrants that TearLab has the right and authority to grant the TearLab Licence.
	 	 	 
	 	(2)	TearLab
    shall indemnify and at all times holds harmless MiniFAB and NewFAB against any Losses resulting from a third person’s
    claim against MiniFAB or NewFAB alleging that the use of TearLab IP by MiniFAB or NewFAB constitutes an infringement of any
    Intellectual Property of that third person; provided, however, that TearLab shall not be obligated to indemnify MiniFAB or
    NewFAB, and MiniFAB and NewFAB shall indemnify and at all times hold harmless TearLab against any such Losses (i.e., Losses
    arising from third party claims of infringement), to the extent the alleged infringement results from any modifications and
    developments made to TearLab IP by MiniFAB or NewFAB other than in accordance with instructions contained in any Specifications.

 

[***]
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treatment has been requested with respect to the omitted portions.

 

    	 	-26-	 

    	 	 	 

    

 

	9.8	Assurance
    of TearLab Licence
	 	 
	 	MiniFAB
    acknowledges that certain parts of the TearLab IP may incorporate or exploit Intellectual Property that is licensed from University
    of California, San Diego (UCSD IP). If MiniFAB’s rights under clause 17.5 take effect, TearLab will (providing MiniFAB
    remains within the licensure requirements):

 

	 	(1)	provide
    MiniFAB with all information and materials relating to the UCSD IP, including explanations on which parts of the TearLab IP
    incorporate or exploit the UCSD IP;
	 	 	 
	 	(2)	use
    its best endeavours to procure a sub-licensable licence direct to MiniFAB to allow MiniFAB reproduce, use and modify the UCSD
    IP solely for the purposes of manufacturing, marketing, distributing and selling the Product in accordance with clause 17.5,
    which licence is only to take effect from the date as provided in clause 17.5; and
	 	 	 
	 	(3)	facilitate,
    and provide all reasonable assistance to MiniFAB in relation to, any negotiations for a direct licence between MiniFAB and
    the University of California, San Diego in respect of the UCSD IP.

 

	9.9	Infringement
    and protection of TearLab IP
	 	 
	 	TearLab
    is solely responsible for the protection, defence and maintenance of the TearLab IP. However, MiniFAB and NewFAB will promptly
    notify TearLab if they are aware of any infringement of the TearLab IP by any third person.
	 	 
	9.10	Base
    Card Moulds

 

	 	(1)	Notwithstanding
    the previous provisions of this clause 9, all injection moulds directed to the Base Cards that are paid for directly by TearLab
    and invoiced as a separate item will belong to TearLab, otherwise they will be owned by MiniFAB.
	 	 	 
	 	(2)	All
    rights in and to such injection moulds, shall be owned by MiniFAB and are not part of TearLab IP. MiniFAB will cooperate with
    TearLab in good faith to assist TearLab in such manner as TearLab may reasonably request if such moulds are required to be
    duplicated,
	 	 	 
	 	(3)	In
    the event that this Agreement is terminated for any reason, MiniFAB will still provide reasonable assistance to TearLab under
    clause 9.10(2) on reasonable commercial terms as agreed between MiniFAB and TearLab.

 

[***]
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treatment has been requested with respect to the omitted portions.

 

    	 	-27-	 

    	 	 	 

    

 

	10.	Obligations
    of MiniFAB
	 	 
	10.1	Cooperation
    with TearLab
	 	 
	 	MiniFAB
    will (a) provide TearLab with analytical and manufacturing documentation, internal progress reports, regulatory compliance
    files and quality assurance files, and other relevant information as requested by TearLab regarding quality control for the
    Product supplied under this Agreement, (b) reasonably cooperate with TearLab in responding to all requests for information
    from customers and the relevant Regulatory Authorities having jurisdiction to make such requests, and (c) on a quarterly basis,
    prepare and submit to TearLab a production capacity development plan addressing MiniFAB’s efforts to increase production
    capacity to meet TearLab’s forecasts, and participate in a review thereof with TearLab. TearLab must bear any reasonable
    pre-approved out-of-pocket costs incurred by MiniFAB pursuant to this clause 10.1. If TearLab refuses to pre-approve any such
    reasonable costs described in the preceding sentence on request by MiniFAB, then MiniFAB is released from its obligations
    under this clause 1001 in respect of the obligations that are subject of, and to the extent subject of, those costs that TearLab
    refused to pre-approve.
	 	 
	10.2	Regulatory
    licences
	 	 
	 	MiniFAB
    and at the appropriate time NewFAB must at its own cost obtain and comply with all necessary licences, consents, permits and
    regulations which may from time to time be required by the relevant Regulatory Authorities to carry out their obligations
    under this Agreement. Where necessary, TearLab is responsible for obtaining all Registrations and approvals for the export
    of the Products from Australia or supply of the Products anywhere in the world.
	 	 
	10.3	Regulatory
    approvals and exemptions
	 	 
	 	As
    between the parties, TearLab shall be responsible, in its discretion, for activities in seeking Registrations and other regulatory
    approvals from applicable Regulatory Authorities with respect to the Product (including any CLIA waiver from the FDA in respect
    of the FDA 510(k) application for the TearLab system which uses the Product developed under the Original Agreement).
	 	 
	10.4	Lot
    records
	 	 
	 	Without
    limiting the generality of clause 10.1, on a monthly basis, MiniFAB must retain and furnish to TearLab for analysis by TearLab’s
    Quality Department:

 

	 	(1)	samples
    of each lot of Product supplied under this Agreement; and
	 	 	 
	 	(2)	quality
    control records,

 

	 	 	to
    the extent required by the Specifications and all applicable Regulatory Requirements.

 

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treatment has been requested with respect to the omitted portions.

 

    	 	-28-	 

    	 	 	 

    

 

	10.5	Facility
    Audits
	 	 
	 	TearLab
    shall have the right, during normal business hours and upon reasonable notice, to audit the Provider’s facility (or
    any one of such facilities) at which the Products are manufactured for compliance with the Specifications, the Regulatory
    Requirements, and the terms and conditions of this Agreement. MiniFAB shall give TearLab prior written notice (whenever reasonably
    feasible) of any Governmental Agency inspection of any facility, and shall permit a representative of TearLab to be present
    at such inspection. MiniFAB shall promptly provide to TearLab copies of all notices, correspondence and other materials delivered
    to or received from the Governmental Agency regarding such facility or the Products.

 

	11.	Meeting
	 	 
	11.1	During
    the Term, MiniFAB and TearLab will endeavour to meet at least every 6 months to discuss and review the state of the relationship
    between them. Each of them must ensure that at least one of its senior representatives attend each meeting. Any such meeting
    may be teleconferenced.
	 	 
	11.2	MiniFAB
    and TearLab will alternate to organise the meeting. The person responsible for organising the meeting must prepare a formal
    agenda prior to the meeting and organise formal minutes to be taken and distributed to ail attendees after the meeting takes
    place. Each party may provide its suggest agenda items. The compulsory topics for the agenda are as follows:

 

	 	(1)	review
    of previous minutes; and
	 	 	 
	 	(2)	progress
    of any development and registration.

 

	11.3	The
    parties acknowledge that the Pricing Schedule is based on various assumptions relating to demands, pricing and profitability
    of the Product. If either MiniFAB or TearLab reasonably considers that these assumptions are not valid, then they will, on
    request from the other party, discuss the impact of these invalid assumptions on the Pricing Schedule. The parties may (but
    are not obliged to) agree to amend the Pricing Schedule in accordance with the process set out in clause 23.4, inclusive of
    the minimum order amount.

 

	12.	Amendments
    to Specifications
	 	 
	12.1	Compliance
    with Regulatory Requirements
	 	 
	 	In
    the event that TearLab or MiniFAB becomes aware of any changes or any pending changes in any applicable Regulatory Requirements
    which could affect the manufacture of the Product, TearLab or MiniFAB, as applicable must promptly notify the other in writing
    of any such change or proposed change and the Specifications of the Product must then, if necessary be amended by mutual written
    agreement of the MiniFAB and TearLab. Such change will become effective and binding on the Provider from a date agreed by
    MiniFAB and TearLab. Costs and expenses reasonably incurred by the Provider to implement the amendments to the Specifications
    required under this clause 12.1 may be reflected in the Price of Product as set forth in clause 12.3.

 

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    	 	-29-	 

    	 	 	 

    

 

	12.2	Voluntary
    changes
	 	 
	 	Either
    MiniFAB or TearLab may suggest changes in the Specifications by notifying the other in writing in reasonable detail of such
    suggested changes. MiniFAB and TearLab must negotiate in good faith with a view to agreeing to the suggested changes and who
    will bear the cost of the same. If they agree in writing upon the suggested changes, including the lead-time for implementing
    such changes, the relevant Specifications must be amended accordingly, and any such change will become effective and binding
    on the Provider from a date agreed by them. Notwithstanding the foregoing, TearLab shall not be obligated to agree to any
    change to Specifications proposed by MiniFAB,
	 	 
	12.3	Cost
    of amendments to Specifications or changes in Regulatory Requirements
	 	 
	 	Unless
    otherwise agreed by the parties, it is understood that the Price of the Product will be adjusted up or down by an amount equal
    to the increase or decrease in the Provider’s costs (as determined by the parties’ mutually agreed cost model,
    which shall not include amounts allocable to other products or to facilities or equipment not utilized for Product) as a result
    of changes in Regulatory Requirements and/or changes in the Specifications. Subject to clauses 12.1 and 12.2, TearLab is responsible
    for all pre-approved reasonable out-of-pocket costs and expenses incurred by the Provider to implement any changes to the
    Specifications under this clause 12. It is understood and agreed that if TearLab pays for the purchase of capital equipment
    under this clause 12.3, then (i) TearLab shall be the owner of such equipment, (ii) such equipment shall not be used in the
    manufacture or testing of any products other than the Product, and (iii) and the parties shall reasonably cooperate to execute
    and file such documents as are reasonably required to evidence and protect TearLab’s ownership interest in such equipment.
    In the event MiniFAB proposes an upward adjustment in the Price of Product under this clause 12.3, TearLab shall have the
    right, at its sole cost, to designate an independent accounting firm reasonably acceptable to MiniFAB to audit MiniFAB’s
    books and records to verify the amount of the cost increase claimed by MiniFAB to determine the rights of the parties as described
    above in this clause 12.3.

 

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    	 	-30-	 

    	 	 	 

    

 

	13.	Registrations,
    safety and Product liability
	 	 
	13.1	Registrations
    of Products
	 	 
	 	TearLab
    is responsible for the sales, marketing and distribution of the Product, and is also responsible for:

 

	 	(1)	obtaining
    all necessary Registrations for the Product; and
	 	 	 
	 	(2)	maintaining
    records of all sales of Product sufficient to adequately administer a recall, market withdrawal or correction for such period
    as is required under applicable regulations.

 

	 	MiniFAB
    agrees to maintain all applicable records relating to the Manufacture of Product supplied hereunder for a period of 5 years
    after they are supplied hereunder, as more particularly set forth in the relevant Technical Agreement. Thereafter, MiniFAB
    shall notify TearLab in writing before destroying any such records and, if requested by TearLab, agrees to transfer all such
    records to TearLab or its designee at TearLab’s expense.
	 	 
	13.2	Adverse
    events
	 	 
	 	TearLab
    must promptly disclose to MiniFAB during the Term any information it acquires which relates to the safety of the Product,
    including, inter alia, all side effects, injury, toxicity or sensitivity reactions including unexpected or increased incidence
    and severity thereof. All such information will be treated as Confidential Information of TearLab.
	 	 
	13.3	Notification
    of defects
	 	 
	 	In
    the event the Provider becomes aware of any defect in the Product it will immediately notify TearLab in writing and provide
    it with a full disclosure of the defect or non-compliance.
	 	 
	13.4	Recalls

 

	 	(1)	The
    parties each must notify the other promptly and in writing if any Product is requested or required to be the subject of a
    recall, market withdrawal or correction (Recall).
	 	 	 
	 	(2)	TearLab
    is solely responsible for the handling and disposition of any Recall and will assume all regulatory responsibility for such
    matters, including responsibility for all communications with the relevant Governmental Agencies. MiniFAB shall diligently
    cooperate with TearLab in the administration of any recall.
	 	 	 
	 	(3)	If
    a Recall is necessary because the Product does not comply with the relevant Requirements, and that non-compliance is caused
    by the fault of the Provider then the Provider will bear the reasonable cost of the Recall. In all other cases TearLab is
    solely responsible for the cost of the Recall.
	 	 	 
	 	(4)	For
    the purposes of clause 13.4(3), ‘reasonable cost’ means those costs incurred as a direct result of the non-compliance,
    and which costs are to be reduced to the extent that TearLab contributed to or failed to reasonably mitigate such costs.

 

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    	 	-31-	 

    	 	 	 

    

 

	14.	Insurance
	 	 
	14.1	Required
    Insurance from MiniFAB
	 	 
	 	MiniFAB
    must take out and maintain during the Term in respect of both itself and NewFAB:

 

	 	(1)	all
    insurances required by law, including workers compensation insurance in accordance with relevant law; and
	 	 	 
	 	(2)	public
    liability insurance for an amount of not less than A$2 Million per claim and in the aggregate.

 

	14.2	Required
    Insurance from TearLab
	 	 
	 	TearLab
    must take out and maintain during the Term:

 

	 	(1)	all
    insurances required by law, including workers compensation insurance in accordance with relevant law; and
	 	 	 
	 	(2)	product
    liability insurance for an amount of not less than US$2 Million per claim in the aggregate.

 

	14.3	Evidence
    of insurance
	 	 
	 	Each
    party must, if reasonably requested by the other party, provide the other party with evidence that the each insurance required
    to be taken out by the party pursuant to this clause 14 exists and is current.

 

	15.	Warranties
	 	 
	15.1	Product
    warranties
	 	 
	 	Each
    of MiniFAB and NewFAB warrant that

 

	 	(1)	the
    Product Manufactured under this Agreement will comply with the Specifications and shall be free from defects in material and
    workmanship;
	 	 	 
	 	(2)	the
    facilities for Manufacture of the Product shall be maintained and operated in compliance with all applicable Regulatory Requirements;
    and
	 	 	 
	 	(3)	all
    Product shall be Manufactured in compliance with the Specifications.

 

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    	 	-32-	 

    	 	 	 

    

 

	16.	Sub-Contractors

 

	 	(1)	Except
    with respect to laser ablation and etching and injection moulding activities, which activities shall be conducted at MiniFAB’s
    Facility unless otherwise agreed by the parties, the Provider may engage sub-contractors to perform the Provider’s obligations
    under this Agreement upon express prior written consent of TearLab, which consent shall not be unreasonably withheld.
	 	 	 
	 	(2)	Without
    limitation, it is agreed that if TearLab is not comfortable that a proposed sub-contractor has the requisite capabilities
    and that such proposed sub-contractor will protect TearLab’s Intellectual Property rights and that such proposed subcontractor
    will comply with the terms and conditions set forth in this Agreement (including assignment of intellectual property), or
    if such proposed sub-contractor is involved in the manufacture, development or commercialization of products competing with
    the Product, then it shall be reasonable for TearLab to withhold approval of such proposed sub-contractor.
	 	 	 
	 	(3)	The
    appointment of sub-contractors shall not affect or diminish the Provider’s responsibilities and obligations under this
    Agreement, and the Provider shall ensure the compliance of each such subcontractor with the confidentiality obligations and
    other obligations of the Provider set forth in this Agreement.

 

	17.	Term,
    breach and termination
	 	 
	17.1	Term

 

	 	(1)	This
    Agreement commences on the Effective Date and continues for an initial period ending on the End Date.
	 	 	 
	 	(2)	Either
    party will have the right to extend this Agreement for an additional term of five (5) years, which right is to be exercised
    by notice in writing to the other party at least 6 months before the End Date, provided that if there has been a significant
    movement in the cost of raw materials so as to render the continuation of the Agreement untenable in the reasonable opinion
    of MiniFAB, then MiniFAB will give notice of that fact to TearLab and the parties will negotiate in good faith to amend the
    terms to the extent necessary to achieve a sustainable agreement.
	 	 	 
	 	(3)	If
    this Agreement is extended under clause 17.1(2) then after the renewal date TearLab will have the option to purchase MiniFAB’s
    rights to exclusivity under this Agreement for $1,500,000. The option may be exercised by giving six (6) months’ notice
    to MiniFAB.
	 	 	 
	 	(4)	If
    this Agreement is extended under clause 17.1(2) then at the end of that further term this Agreement shall automatically renew
    for an additional term of five (5) years, unless either party provides the other party with a written notice of non-renewal
    at least 6 months prior to the end of the then current term.

 

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    	 	-33-	 

    	 	 	 

    

 

	17.2	Termination
    for cause - MiniFAB

 

	 	(1)	TearLab
    commits a material breach of this Agreement and fails to correct the breach within 60 days after written notice to do so;
	 	 	 
	 	(2)	TearLab
    fails to carry out any material provision of this Agreement and the failure is not capable of remedy; or
	 	 	 
	 	(3)	an
    Insolvency Event occurs in relation to TearLab.

 

	17.3	Termination
    for cause - TearLab
	 	 
	 	Notwithstanding
    clause 17.1, TearLab may terminate this Agreement effective immediately upon the giving of written notice to MiniFAB (Defaulting
    Party) if:

 

	 	(1)	MiniFAB
    or NewFAB commits a material breach of this Agreement and fails to correct the breach within 60 days after written notice
    to do so;
	 	 	 
	 	(2)	MiniFAB
    or NewFAB fails to carry out any material provision of this Agreement and the failure is not capable of remedy; or
	 	 	 
	 	(3)	an
    Insolvency Event occurs in relation to the MiniFAB or NewFAB.

 

	17.4	Effect
    of termination

 

	 	(1)	Upon
    termination or expiry of this Agreement for any reason other than due to an Insolvency Event in relation to TearLab or breach
    by TearLab:

 

	 	(a)	the
    Supplier will complete the delivery of all outstanding Purchase Orders;
	 	 	 
	 	(b)	TearLab
    will be bound to purchase and MiniFAB will be bound to manufacture into Product, sell and supply, the whole of its stock of
    cards held by it. This is subject to an upper limit equal to the then outstanding limit on total orders created by the Upper
    Limit Rule, with TearLab having an option to purchase any excess quantity that may be available.

 

	 	The
    Supplier will invoice and TearLab will pay for the Product in accordance with the usual terms of this Agreement.

 

	 	(2)	Upon
    termination or expiry of this Agreement for any reason:

 

	 	(a)	TearLab
    must pay all outstanding undisputed invoices for all completed Purchase Orders; and
	 	 	 
	 	(b)	each
    party must immediately return the Confidential Information of the other party to the other party.

 

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    	 	-34-	 

    	 	 	 

    

 

	 	(3)	In
    the event of any termination of this Agreement other than a termination for cause by MiniFAB under clause 17.2, TearLab shall
    have the right to require MiniFAB:

 

	 	(a)	to
    provide all reasonable assistance as requested by TearLab, including transfer of technology, materials, information and documentation,
    to enable TearLab to manufacture the Product internally or to secure the production and supply of the Product by a third party
    contractor (whether or not all or part of such technology, materials, information and documentation falls within the MiniFAB
    Background IP owned by MiniFAB); and
	 	 	 
	 	(b)	to
    provide TearLab with the consultancy services of all key engineering personnel of MiniFAB to effect or support such transfer
    of technology and/or the license to MiniFAB Background IP.

 

	 	 	TearLab
    shall pay MiniFAB for the time spent by MiniFAB’s key personnel in conducting such technology transfer activities as
    may be requested by TearLab, at MiniFAB’s reasonable and customary rates for similar consultancy, and shall reimburse
    MiniFAB’s out-of-pocket expenses incurred in conducting such technology transfer.

 

	 	(4)	Except
    as provided in clause 17.5, termination is without prejudice to the rights of either party for any prior breach.

 

	17.5	Continuing
    right to manufacture

 

	 	(1)	The
    parties acknowledge that if this Agreement is terminated by MiniFAB prior to the End Date as a result of TearLab being the
    subject of an Insolvency Event or breach by TearLab or TearLab’s inability to supply the market, such premature termination
    deprives MiniFAB of the opportunity to earn an appropriate return on its investment in the Products and its expected return
    from the full expected performance of this Agreement through its expected term. Accordingly, this clause provides certain
    rights to MiniFAB under these scenarios. Both parties recognize that a significant portion of TearLab’s ability to market
    and sell its products is subject to a license and royalty agreement with the University of California at San Diego (UCSD).
    Both parties also acknowledge that no rights conferred in this Agreement can conflict or go beyond the rights granted to TearLab
    under its current agreement with UCSD and as amended.

 

[***]
Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential
treatment has been requested with respect to the omitted portions.

 

    	 	-35-	 

    	 	 	 

    

 

	 	(2)	In
    recognition of the above, it is agreed that if TearLab ceases to trade or otherwise ceases to supply the Product to the market
    for a period of at least 60 days for reasons other than (1) lack of supply of product, or (2) a regulatory recall or action
    which prohibits supply into the market, and no new party acquires the assets to allow it to supply the Product to the market,
    then MiniFAB will have the right to make and supply the Product to the existing users in the global market, and the following
    provisions will apply from the termination of this Agreement:

 

	 	(a)	MiniFAB’s
    obligation under clause 3.3(1) to manufacture the Product exclusively for TearLab and to sell the Product exclusively to TearLab
    or its designee, and not otherwise to manufacture, sell, warehouse or distribute the Product to any third party shall terminate;
	 	 	 
	 	(b)	TearLab
    irrevocably appoints MiniFAB as its worldwide, non-exclusive distributor to market, distribute and sell the Base Cards and/or
    finished Product, for the period through to 5 years after the End Date commencing from the effective date of termination of
    this Agreement;
	 	 	 
	 	(c)	Unless
    otherwise agreed by MiniFAB, TearLab must maintain the regulatory approvals for the Product, and MiniFAB will reimburse TearLab
    for the costs and expenses reasonably incurred by TearLab in maintaining the regulatory approvals;
	 	 	 
	 	(d)	MiniFAB
    will manufacture the Product on behalf of TearLab in accordance with the Regulatory Requirements, and may market, distribute
    and sell the Product anywhere in the world, subject to regulatory approvals; and
	 	 	 
	 	(e)	MiniFAB
    will pay TearLab a royalty in respect of the ongoing use of the TearLab IP and reliance on the regulatory approvals for the
    Product equal to 5% of the price received by MiniFAB for the Product, net of any tax (excluding income tax), excise or other
    governmental charge upon or in relation to the sale of the Product (less any amounts payable to UCSD under the licence contemplated
    in clause 9.8(2)), plus an amount equivalent to any amount payable by TearLab to UCSD in respect of the sales of the Product
    by MiniFAB, such royalty to be calculated and paid on a monthly in arrears basis.

 

	17.6	Survival
	 	 
	 	All
    clauses that by their nature survive expiration or termination of this Agreement will remain in force. For the avoidance of
    doubt, clauses 1, 1.1, 9.1, 9.6, 9.7(2), 9.8, 13.1, 13.4, 15, 9.2, 17, 18, 19, 20, 22 and 23 survive termination.

 

[***]
Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential
treatment has been requested with respect to the omitted portions.

 

    	 	-36-	 

    	 	 	 

    

 

	18.	Liability
    and Indemnity
	 	 
	18.1	Indemnity
    by TearLab
	 	 
	 	TearLab
    shall indemnify MiniFAB and NewFAB and their Representatives against ail Losses incurred by any of them as result of claims
    by third persons against any of them arising directly or indirectly as a result of:

 

	 	(1)	any
    grossly negligent, unlawful, fraudulent or wilful misconduct committed by TearLab or its Representatives in the performance
    of this Agreement;
	 	 	 
	 	(2)	the
    marketing, promotion, sale or supply of the Product by TearLab; or
	 	 	 
	 	(3)	TearLab’s
    failure to obtain, maintain or comply in any respect with any Registrations,

 

	 	except,
    in each case, to the extent Losses result from any event described in clause 18.2.
	 	 
	18.2	Indemnity
    by MiniFAB
	 	 
	 	MiniFAB
    shall indemnify TearLab and its Representatives against all Losses incurred by them as a result of claims by third persons
    against TearLab arising directly or indirectly, to the extent resulting from:

 

	 	(1)	any
    grossly negligent, unlawful, fraudulent or wilful misconduct committed by the MiniFAB or NewFAB or their Representatives in
    the performance of this Agreement;
	 	 	 
	 	(2)	any
    manufacturing defect in any Product supplied to TearLab, or any failure of any Product to conform to the Specifications; or
	 	 	 
	 	(3)	the
    failure to obtain and maintain all necessary governmental permits for the development and manufacture of Product hereunder,

 

	 	except,
    in each case, to the extent Losses result from any event described in clause 18.1.
	 	 
	18.3	General
    provisions applicable to indemnities

 

	 	(1)	A
    party (the “Indemnitee”) that intends to claim indemnification under this clause 18 shall promptly notify the
    other party (the “Indemnitor”) of any claim, demand, action or other proceeding for which the Indemnitee intends
    to claim such indemnification.
	 	 	 
	 	(2)	The
    Indemnitor shall have the right to assume and control the defense thereof with counsel selected by the Indemnitor; provided,
    however, that the Indemnitee shall have the right to retain its own counsel to participate in the defense, subject to Indemnitor’s
    right to control the defense.

 

[***]
Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential
treatment has been requested with respect to the omitted portions.

 

    	 	-37-	 

    	 	 	 

    

 

	 	(3)	The
    indemnity obligations under this clause 18 shall not apply to amounts paid in settlement of any Loss if such settlement is
    effected without the prior express written consent of the Indemnitor, which consent shall not be unreasonably withheld or
    delayed.
	 	 	 
	 	(4)	The
    failure to deliver notice to the Indemnitor within a reasonable time after notice of any relevant claim, or the commencement
    of any such action or other proceeding shall not relieve such Indemnitor of all liability to the Indemnitee under this clause
    18 with respect thereto, but if such failure is prejudicial to the Indemnitor’s ability to defend such claim, and if
    such prejudice results in Losses that otherwise would likely have been avoided or reduced if timely notice had been given,
    then the Indemnitor shall be relieved of said part of the Losses.
	 	 	 
	 	(5)	The
    Indemnitor may not settle or otherwise consent to an adverse judgment in any such claim, that diminishes the rights or interests
    of the Indemnitee without the prior express written consent of the Indemnitee, which consent shall not be unreasonably withheld
    or delayed (it being understood that no consent by the Indemnitee is required for the Indemnitor to obtain a full release
    of all claims by a third person against an Indemnitee in exchange solely for the payment of a settlement amount by Indemnitor).
	 	 	 
	 	(6)	The
    Indemnitee, its employees and agents, shall reasonably cooperate with the Indemnitor and its legal representatives in the
    investigation of any claim covered by this clause 18.
	 	 	 
	 	(7)	The
    indemnities contained in this clause 18 do not negate the obligation of the party having the benefit of such indemnity to
    mitigate its Losses: and are continuing obligations on each party, separate and independent of any other obligation.

 

	18.4	No
    consequential damages
	 	 
	 	Except
    for any liability under clause 19 or the indemnity provided under clauses 18.1 or 18.2, to the extent permitted by law, neither
    party will be liable to the other party in any circumstances for any special, incidental, punitive, exemplary, consequential
    or any other indirect loss or damage, or in any event for any loss of revenue, loss of production, loss of profit or loss
    of data.

 

[***]
Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential
treatment has been requested with respect to the omitted portions.

 

    	 	-38-	 

    	 	 	 

    

 

	19.	Confidentiality
	 	 
	19.1	Prohibited
    acts
	 	 
	 	Neither
    party may, without the other party’s prior written consent, copy or disclose or cause to be copied or disclosed any
    Confidential Information of the other party other than to the extent that such Confidential Information must be disclosed:

 

	 	(1)	to
    the party’s sub-contractors, employees, legal advisers, auditors, investors or other consultants in order for this Agreement
    to be performed, provided that the recipients of the information undertake in writing to the party to keep that information
    strictly confidential; or
	 	 	 
	 	(2)	to
    Regulatory Authorities as required to obtain or maintain any regulatory approvals.

 

	19.2	Permitted
    uses
	 	 
	 	Each
    party may only make use of Confidential Information of the other party to the extent necessary to enable the party to perform
    its obligations or exercise its rights under this Agreement.
	 	 
	19.3	Excluded
    Information
	 	 
	 	For
    the purposes of this clause, Confidential Information does not include any information which the receiving party can establish:

 

	 	(1)	was
    in the public domain when it was disclosed to the receiving party;
	 	 	 
	 	(2)	becomes,
    after being disclosed to the receiving party, part of the public domain, except through disclosure contrary to this Agreement;
	 	 	 
	 	(3)	was
    already in the receiving party’s possession when it was disclosed to the receiving party and was not otherwise acquired
    from the other party directly or indirectly; or
	 	 	 
	 	(4)	was
    lawfully disclosed to the receiving party by a third party having the unrestricted legal right to disclose that information
    without requiring the maintenance of confidentiality.

 

	 	Prior
    to making a disclosure of information which the receiving party alleges is no longer or never was Confidential Information
    by virtue of falling within one of the above exceptions, the receiving party must give to the other party 10 Business Days’
    notice of the proposed disclosure and the reasons for the exception applying,

 

[***]
Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential
treatment has been requested with respect to the omitted portions.

 

    	 	-39-	 

    	 	 	 

    

 

	19.4	Compulsory
    disclosures
	 	 
	 	The
    obligations of confidentiality in this clause do not apply to a receiving party where the receiving party is required under
    the lawful compulsion of any court, tribunal, authority or regulatory body to disclose any Confidential Information of the
    other party. Provided that before a party discloses any Confidential Information pursuant to the foregoing it must provide
    the other party with reasonable notice to enable it to seek a protective court order or other remedy in respect of the Confidential
    Information, and it must provide the other party with all assistance and co-operation which the other party considers necessary
    to obtain such protective court order or other remedy.
	 	 
	19.5	Protection
    of information
	 	 
	 	Each
    party must notify the other party in writing immediately upon the discovery of arty apparent unauthorised use or disclosure
    of any Confidential Information and take all reasonable steps to enforce the confidentiality obligations imposed or required
    to be imposed by this clause 19 including diligently prosecuting at its cost any breach or threatened breach of any such confidentiality
    obligations by any person to whom it has disclosed or allowed access to the Confidential Information or at the other party’s
    option making all reasonable efforts to assist the other party to help regain possession of the Confidential Information and
    prevent any further unauthorised disclosure or use.
	 	 
	19.6	Confidentiality
    of agreement
	 	 
	 	The
    parties must maintain absolute confidentiality concerning the existence and subject matter of this Agreement and no public
    announcement or communication relating to the negotiations of the parties or the existence, subject matter or terms of this
    Agreement may be made or authorised by a party without the prior written approval of the other party except that the following
    disclosures may be made in relation to this Agreement:

 

	 	(1)	by
    either party to its sub-contractors, employees, auditors, consultants, professional advisers, bankers, financial advisers,
    financiers, investors and potential investors upon those persons undertaking to keep confidential any information so disclosed;
    or
	 	 	 
	 	(2)	to
    comply with any applicable law or requirement of any Governmental Agency or of any public stock exchange on which shares of
    the disclosing party are listed.

 

	19.7	Return
    of Confidential information
	 	 
	 	Each
    party agrees that on termination or expiration of this Agreement it will deliver to that other party any and all materials
    containing or embodying that other party’s Confidential Information and any copies thereof; provided that each party
    shall be entitled to retain one (1) copy of the other party’s Confidential Information, to be kept at such party’s
    legal files for use solely for the purpose of ensuring continued compliance with the terms of this Agreement.

 

[***]
Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential
treatment has been requested with respect to the omitted portions.

 

    	 	-40-	 

    	 	 	 

    

 

	20.	Disputes
	 	 
	20.1	Attempt
    to Settle
	 	 
	 	If
    a dispute arises between the parties in connection with this Agreement then the parties must use all reasonable endeavours
    acting in good faith to settle the dispute as soon as practicable.
	 	 
	20.2	Limitations
    on Court Proceedings
	 	 
	 	A
    party must not commence court proceedings in relation to a dispute arising in connection with this Agreement until it has
    exhausted the procedures in this clause 20, unless the party seeks urgent interlocutory relief.
	 	 
	20.3	Disputes
    relating to Products
	 	 
	 	If
    the dispute relates to whether or not a particular Product meets the relevant Specifications and the Regulatory Requirements,
    then the parties must submit the dispute to an independent laboratory, which will act as an expert in determining whether
    or not the Product meets the relevant Specifications and the Regulatory Requirements; provided, however, that if it is not
    technically feasible to make such independent laboratory determination in connection with a particular dispute (e.g., if insufficient
    number of samples of a relevant lot of Product is available), then such dispute shall be determined by arbitration under clause
    20.5.
	 	 
	20.4	Other
    disputes
	 	 
	 	If
    a dispute does not relate to whether or not a particular Product meets the relevant Specifications and the Regulatory Requirements
    and the parties are unable in good faith to settle the dispute within 20 Business Days after the dispute arose, then either
    party may submit the matter to arbitration under clause 20.5.
	 	 
	20.5	Arbitration

 

	 	(1)	If
    any dispute arises under, or in connection with, this Agreement and/or in connection with any breach or alleged breach of
    this Agreement, and such matter is not resolved pursuant to clause 20.1 or 20.3 or by other agreement of the parties, such
    matter shall be finally resolved through binding arbitration as set forth in this clause 20.5. Either party may initiate arbitration
    of such a matter, and the party initiating arbitration of such dispute must give to the other party or parties to the dispute
    notice specifying the dispute and requiring its resolution under this clause 20.5 (Notice of Dispute). Such Notice of Dispute
    shall be given in accordance with the arbitration rules specified under this clause 20.5.

 

[***]
Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential
treatment has been requested with respect to the omitted portions.

 

    	 	-41-	 

    	 	 	 

    

 

	 	(2)	Each
    such dispute is by this clause 20.5 referred to binding arbitration for final resolution. The arbitration must be conducted
    in:

 

	 	(a)	Melbourne,
    Australia if the Notice of Dispute is given by TearLab; and
	 	 	 
	 	(b)	San
    Diego California, USA, if the Notice of Dispute is given by MiniFAB.

 

	 	(3)	If
    the parties have not agreed upon the arbitrator within 7 days after the Notice of Dispute is given, the arbitrator will be
    appointed in accordance with the then-current rules of the International Centre for Dispute Resolution.
	 	 	 
	 	(4)	The
    arbitrator must not be a present or former member, officer, employee or agent of a party to the dispute or a person who has
    acted as a mediator or advised any party in connection with the dispute.
	 	 	 
	 	(5)	The
    arbitration shall be conducted in accordance with the then-current rules of the International Centre for Dispute Resolution
    by one (1) arbitrator appointed in accordance with such rules. The arbitrator shall determine what discovery will be permitted,
    consistent with the goal of limiting the cost and time which the parties must expend for discovery; provided the arbitrator
    shall permit such discovery as the arbitrator deems necessary to permit an equitable resolution of the dispute. The arbitrator
    shall not order or require discovery against either party of a type or scope that is not permitted against the other party.
    The costs of the arbitration, including administrative and arbitrators’ fees, shall be shared equally by the parties,
    and each party shall bear its own costs and attorneys’ and witness’ fees incurred in connection with the arbitration.
    Any arbitration subject to this Article shall be completed within one (1) year from the filing of notice of a request
    for such arbitration. No punitive damages may be granted by the arbitrator. The arbitration proceedings and the decision shall
    not be made public without the joint consent of the parties, and each party shall maintain the confidentiality of such proceedings
    and decision unless otherwise permitted by the other party, except to the extent (and solely to the extent) either party is
    required to disclose such information by applicable securities or other laws. The parties agree that the decision shall be
    the sole, exclusive and binding remedy between them regarding any and all disputes, controversies, claims and counterclaims
    presented to the arbitrator. Any award may be entered in a court of competent jurisdiction for a judicial recognition of the
    decision and applicable orders of enforcement, and either party may apply to any court of competent jurisdiction for appropriate
    temporary injunctive relief pending resolution of any arbitration proceeding. The arbitrator shall provide a written arbitration
    award setting forth the arbitrator’s findings on material questions of law and of fact, including references to the
    evidence on which the findings of fact were based. Each party may be represented by a qualified legal practitioner or other
    representative.
	 	 	 
	 	(6)	This
    clause 20.5 applies even where the Agreement is otherwise void or voidable.

 

[***]
Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential
treatment has been requested with respect to the omitted portions.

 

    	 	-42-	 

    	 	 	 

    

 

	20.6	Continuing
    Obligations
	 	 
	 	Except
    as specifically provided in this Agreement, the parties must continue to perform their obligations under this Agreement despite
    the existence of a dispute or any steps being taken under this clause 20.

 

	21.	Force
    Majeure
	 	 
	21.1	Party
    not liable
	 	 
	 	Where
    a party is required under this Agreement to perform an obligation or do any act or thing by a designated time or date (Obligation),
    the party is not liable for any delay in performing or for failure to perform an Obligation where the delay or failure arises
    from Force Majeure and that party has complied with this clause.
	 	 
	21.2	Notice
    of Force Majeure
	 	 
	 	A
    party who claims Force Majeure must

 

	 	(1)	give
    the other party prompt notice of the Force Majeure with reasonably full particulars and an estimate of the extent and duration
    of its delay in performance, or inability to perform; and

 

	21.3	Termination
    in case of Force Majeure
	 	 
	 	If
    the delay continues beyond 30 days after the notice given under clause 21.2, the parties must meet to discuss in good faith
    a mutually satisfactory resolution of the problem and, if unable to achieve such a resolution within a further 60 days, either
    party may elect to terminate this Agreement by 30 days’ prior written notice to the other.

 

	22.	Notices
	 	 
	22.1	A
    notice or other communication connected with this Agreement (Notice) has no legal effect unless it is in writing.
	 	 
	22.2	In
    addition to any other method of service provided by law, the Notice may be:

 

	 	(1)	sent
    by prepaid post to the address of the addressee set out in this Agreement or subsequently notified;

 

[***]
Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential
treatment has been requested with respect to the omitted portions.

 

    	 	-43-	 

    	 	 	 

    

 

	 	(2)	sent
    by facsimile to the facsimile number of the addressee;
	 	 	 
	 	(3)	sent
    via email to the email address of the addressee; or
	 	 	 
	 	(4)	delivered
    at the address of the addressee set out in this Agreement or subsequently notified.

 

	22.3	If
    the Notice is sent or delivered in a manner provided by clause 22.2, it must be treated as given to and received by the party
    to which it is addressed:

 

	 	(1)	if
    sent by facsimile or email, on the next Business Day at the place of receipt, unless a transmission failure notice is received
    by the sender; or
	 	 	 
	 	(2)	if
    sent by post or otherwise, upon receipt by the addressee.

 

	22.4	Despite
    clause 22.3(1):

 

	 	(1)	a
    facsimile is not treated as given or received unless at the end of the transmission the sender’s facsimile machine issues
    a report confirming the transmission of the number of pages in the Notice;
	 	 	 
	 	(2)	a
    facsimile is not treated as given or received if it is not received in full and in legible form and the addressee notifies
    the sender of that fact by the close of the Business Day on which it would otherwise be treated as given and received.

 

	23.	General
	 	 
	23.1	Communication
	 	 
	 	Each
    party will on an ongoing basis by fully responsive to requests from the other for approvals or the provision of information
    relevant to the first party’s activities under the Agreement.
	 	 
	23.2	Further
    assurance
	 	 
	 	Each
    party must promptly at its own cost do all things (including executing and if necessary delivering all documents) necessary
    or desirable to give full effect to this Agreement, to the extent commercially reasonable to do so.
	 	 
	23.3	Entire
    understanding
	 	 
	 	This
    Agreement is the entire agreement and understanding between the parties on everything connected with the subject matter of
    this Agreement and supersedes any prior agreement or understanding on anything connected with that subject matter on the going-forward
    basis from the Effective Date.

 

[***]
Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential
treatment has been requested with respect to the omitted portions.

 

    	 	-44-	 

    	 	 	 

    

 

	23.4	Variation
	 	 
	 	An
    amendment or variation to this Agreement is not effective unless it is in writing and signed by the parties.
	 	 
	23.5	Assignment
    within corporate structure
	 	 
	 	Neither
    party may assign its right or obligations under this Agreement without the consent of the other party, except where the assignee
    is related body corporate to the assignor. In this clause, where a body corporate is: (a) a holding company of another body
    corporate; or (b) a subsidiary of another body corporate; or (c) a subsidiary of a holding company of another body corporate;
    the first-mentioned body and the other body are related to each other.
	 	 
	23.6	No
    assignment of bare IP
	 	 
	 	TearLab
    may not assign the benefit of any Intellectual Property rights granted by MiniFAB or NewFAB under this Agreement independent
    of the obligations of this Agreement without the written consent of MiniFAB, which may be given on such terms as it reasonably
    considers necessary to protect its right under this Agreement.
	 	 
	23.7	Waiver
	 	 
	 	A
    party’s failure or delay to exercise a power or right does not operate as a waiver of that power or right. The exercise
    of a power or right does not preclude either its exercise in the future or the exercise of any other power or right. A waiver
    is not effective unless it is in writing. Waiver of a power or right is effective only in respect of the specific instance
    to which it relates and for the specific purpose for which it is given.
	 	 
	23.8	Costs
    and outlays
	 	 
	 	Each
    party must pay its own costs and outlays connected with the negotiation, preparation and execution of this Agreement.
	 	 
	23.9	Governing
    law and jurisdiction
	 	 
	 	This
    Agreement shall be governed and construed in accordance with the laws of England, United Kingdom
	 	 
	23.10	Affiliates
    Actions
	 	 
	 	Each
    party will ensure that none of its affiliates takes any action which is inconsistent with that Party’s obligations under
    this Agreement, or which if it was done or not done under this Agreement by that party would amount to a breach of this Agreement
    by that party.

 

[Signature
page follows]

 

[***]
Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential
treatment has been requested with respect to the omitted portions.

 

    	 	-45-	 

    	 	 	 

    

 

	Executed
    as an agreement.	 	 
	 	 	 
	Executed
    by MINIFAB (AUST) PTY LTD 	 	 
	in
    accordance with section 127 of the 	 	 
	Corporations
    Act 2001:	 	 
	 	 	 
	/s/
    Michael Wilkinson	 	/s/
    Erol Harvey
	Director/company
    secretary	 	Director
	 	 	 
	Michael
    Wilkinson	 	Erol
    Harvey
	Name
    of director/company secretary	 	Name
    of director
	(BLOCK
    LETTERS)	 	(BLOCK
    LETTERS)
	 	 	 
	Signed
    for and on behalf of TearLab	 	 
	Research,
    Inc. by its authorized	 	 
	representative
    in the presence of:	 	 
	 	 	 
	/s/
    Wes Brazell	 	/s/
    Seph Jensen
	Signature
    of witness	 	Signature
    of authorised representative
	 	 	 
	Wes
    Brazell	 	Seph
    Jensen
	Name
    of witness 	 	Name
    of authorised representative
	(BLOCK
    LETTERS)	 	(BLOCK
    LETTERS)
	 	 	 
	940
    S. Kimball, Southlake, TX, USA	 	 
	Address
    of witness	 	 

 

[***]
Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential
treatment has been requested with respect to the omitted portions.

 

    	 	-46-	 

    	 	 	 

    

 

Schedule
1 - Pricing Schedule

 

	2.	Price

 

Both
parties acknowledge the need for a pricing transition structure to address the pricing mechanisms under the Original Agreement
as well as the existing inventory as of the date of the Agreement. The Initial TCI Card Volume and the Transition Payments noted
below represent complete disposition of any pricing adjustments from the Original Agreement. In addition, the Initial TCI Card
Volume up to [***] units are for the first units of product purchased in the aggregate without regard to year. After an aggregate
of [***] products are purchased, the price of all units will revert to $[***] per unit until the Final Tier Trigger is reached.

 

The
Price for each Product is as set out in the tables below.

 

	Initial
    TCI Card Volume*	 	TCI Card Price USD
	[***]	 	[***]
	 	 	 
	[***]	 	[***]
	 	 	 
	[***]	 	[***]
	 	 	 
	[***]	 	[***]

 

	*	The
    ‘Final Tier Trigger’ is reached on the earlier of:

 

	 	(1)	the date when the
    annual card volume in any twelve (12) month period exceeds 4,500,000 cards; or
	 	 	 
	 	(2)	March 31, 2018

 

All
sales of cards from MiniFAB to TearLab made after the date on which the Final Tier Trigger occurs will be based on the Final Tier
pricing set out in the table below.

 

	Final
    Tier TCI Card Volume**	 	TCI Card Price USD
	[***]	 	[***]
	 	 	 
	[***]	 	[***]
	 	 	 
	[***]	 	[***]
	 	 	 
	[***]	 	[***]

 

	**	TCI
    Card Price per Product will be determined at the end of each month, by reference to the relevant Final Tier TCI Card Volume
    to be applicable to orders placed in the following month based on the total number of Products ordered in the rolling twelve
    (12) month period ending on the last day of the expiring month.

 

The
Transition Payments to be made by TearLab to MiniFab are set out in the table below.

 

	Transition Payment Timing	 	Amount USD
	[***]	 	[***]
	 	 	 
	[***]	 	[***]
	 	 	 
	[***]	 	[***]

 

[***]
Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential
treatment has been requested with respect to the omitted portions.

 

    	 	-47-	 

    	 	 	 

    

 

Schedule
2

Base
Card

 

Name

 

Osmolarity
Tear Collection Interface Base Chip (Base TCI cards)

 

Description

 

A
Base Test Card for collecting tear fluid and measuring osmolarity, as more particularly described in the applicable Requirements
Definitions and Specifications.

 

Osmolarity
Base Test Chip means the tear collection device, without capsule and packaging, developed by MiniFAB and TearLab to measure osmolarity.
The osmolarity test card (TCI card interface) is described in PRD0001 (A copy of which is annexed to this Agreement).

 

[***]
Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential
treatment has been requested with respect to the omitted portions.

 

    	 	-48-	 

    	 	 	 

    

 

Schedule
3

Finished
Product

 

Name

 

Osmolarity
Test Cards (TCI cards)

 

Description

 

A
Test Card for measuring osmolarity, as more particularly described in the applicable Requirements Definitions and Specifications.

 

Osmolarity
Test Card means the tear collection device developed by MiniFAB and TearLab to measure osmolarity. The osmolarity test card (TCI
card interface) is described in PRD0001 (A copy of which is annexed to this Agreement).

 

All
price and cost information is based on a tested and packaged osmolarity test card, packaged and configured as mutually agreed.

 

[***]
Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential
treatment has been requested with respect to the omitted portions.

 

    	 	-49-	 

    	 	 	 

    

 

Schedule
4

Deed
Poll of Accession

 

Deed
Poll dated

 

Name

 

Address

 

(Acceding
Party)

 

Introduction

 

This
deed poll is supplemental to the Manufacturing and Supply Agreement between MiniFAB (Aust) Pty Ltd and TearLab Research, Inc.
(TearLab) dated on or about [date] (Manufacturing and Supply Agreement).

 

Operative
part

 

	1.	The
    Acceding Party confirms that it has been supplied with a copy of the Manufacturing and Supply Agreement and covenants with
    all present parties to the Manufacturing and Supply Agreement (whether original or by accession) (“Parties’’)
    to observe, perform and be bound by the Manufacturing and Supply Agreement so that the Acceding Party is deemed, from the
    date on which a copy of this deed poll is delivered to TearLab, to be a party to the Manufacturing and Supply Agreement.
	 	 
	2	This
    deed poll is governed in accordance with the laws of England, United Kingdom.
	 	 
	3.	The
    Acceding Party’s address details for services of notices under the Manufacturing and Supply Agreement are:

 

 

	Name:	#Company
    name#’
	Attention:	#name#
	Address:	#address#
	Facsimile
    no:	#fax
    number#
	Electronic
    mail address:	#email
    address#

 

Executed
as a deed poll.

 

[Insert
appropriate execution clause]

 

[***]
Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential
treatment has been requested with respect to the omitted portions.

 

    	 	-50-	 

    	 	 	 

    

 

Annexure
A

Requirement
Definitions of Product

 

[#To
be inserted]

 

[***]
Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential
treatment has been requested with respect to the omitted portions.

 

    	 	-51-	 

    	 	 	 

    

 

Annexure
B

Specifications
for Product

 

[#
To be inserted]

 

[***]
Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential
treatment has been requested with respect to the omitted portions.

 

    	 	-52-	 

    	 	 	 

    

 

Annexure
C

Manufacturing
Plan Version 1.1

 

[#To
be inserted]

 

 

[***]
Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential
treatment has been requested with respect to the omitted portions.

 

    	 	-53-AMENDMENT
4 TO TERM LOAN AGREEMENT

 

THIS
AMENDMENT 4, dated as of April 7, 2016 (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, by Amendment 2, dated as of August 6, 2015, and by Amendment 3, dated as of December 31,
2015 (the “Loan Agreement”), with the Subsidiary Guarantors from time to time party thereto.

 

WHEREAS,
the Borrower has informed the Lenders that its Subsidiary, OcuHub Holdings, Inc. (“OcuHub Holdings”)
has sold 9,082 membership units (the “OcuHub Units”) of its subsidiary, OcuHub LLC, pursuant to that
certain Unit Purchase Agreement dated as of April 7, 2016, such OcuHub Units representing the majority of OcuHub LLC membership
units previously owned by OcuHub Holdings.

 

WHEREAS,
OcuHub LLC is a Subsidiary Guarantor under the Loan Agreement.

 

WHEREAS,
the Borrower has requested, and Lenders have agreed, to terminate the guarantee provided by OcuHub LLC under the Loan Agreement
(the “OcuHub Guarantee”).

 

WHEREAS,
the parties hereto desire, on the terms and subject to the conditions set forth herein, to amend the Loan Agreement, terminate
the OcuHub Guarantee and release OcuHub LLC of its Obligations under the Loan Agreement and each other Loan Document to which
it is a party.

 

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 4, the Loan Agreement is hereby amended as follows:

 

(a)All
references in the Loan Agreement to “Permitted Priority Debt” are hereby deleted.

 

(b)Section
1.01 of the Loan Agreement is amended by deleting the definition of “Permitted Priority Debt”.

 

(c)Section
6.02(g) of the Loan Agreement is amended by replacing the “$5.00” at the end of such section with “$1.50”.

 

(d)Section
9.01(c) of the Loan Agreement is amended and restated in its entirety as follows:

 

“(c)
[Reserved];”

 

(e)Section
9.02(c) of the Loan Agreement is amended and restated in its entirety as follows:

 

“(c)
[Reserved];”

 

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

 

“Borrower
shall maintain at all times Liquidity in an amount in excess of $5,000,000.”

 

(g)Sections
10.02(b)-(f) of the Loan Agreement are amended and restated in their entirety as follows:

 

(b)
during the twelve month period beginning on January 1, 2016, of at least $27,000,000;

 

(c)
during the twelve month period beginning on January 1, 2017, of at least $31,000,000;

 

(d)
during the twelve month period beginning on January 1, 2018, of at least $36,000,000;

 

(e)
during the twelve month period beginning on January 1, 2019, of at least $45,000,000;

 

(f)
during the twelve month period beginning on January 1, 2020, of at least $55,000,000.”

 

(h)Annex
B to the Form of Compliance Certificate attached to the Loan Agreement as Exhibit E is replaced in its entirety with Exhibit
A attached hereto.

 

    	 	2	 

    	 

    

 

SECTION
3.Termination of Guarantee. Subject to Section 4, the Lenders here agree that:

 

(a)The
OcuHub Guarantee is hereby irrevocably, absolutely and unconditionally terminated and discharged (except any provisions thereof
that expressly survive termination thereof) without any further action.

 

(b)OcuHub
LLC is hereby irrevocably, absolutely and unconditionally released from any and all Obligations under the Loan Agreement and each
other Loan Document to which it is a party.

 

SECTION
4.Conditions of Effectiveness. The effectiveness of Sections 2 and 3 shall be subject to the following conditions
precedent:

 

(a)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.

 

(b)The
representations and warranties in Section 5 shall be true in all material respects on the date hereof and on the first
date on which the condition set forth in Section 4(a) shall have been satisfied.

 

SECTION
5.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.

 

    	 	3	 

    	 

    

 

(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.

 

(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
6.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 6 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
7.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.

 

    	 	4	 

    	 

    

 

(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.

 

(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.

 

[Remainder
of page intentionally left blank]

 

    	 	5	 

    	 

    

 

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

 

	 	BORROWER:
	 	 	 
	 	TEARLAB
    CORPORATION
	 	 	 
	 	By:
    	/s/
    Wes Brazell
	 	Name:	Wes
    Brazell
	 	Title:	Chief
    Financial Officer
	 	 	 
	 	SUBSIDIARY
    GUARANTORS:
	 	 	 
	 	TEARLAB
    RESEARCH, INC.
	 	 	 
	 	By:	/s/
    Wes Brazell
	 	Name:	Wes
    Brazell
	 	Title:	Chief
    Financial Officer
	 	 	 
	 	OCUHUB
    HOLDINGS, INC.
	 	 	 
	 	By:
    	/s/
    Wes Brazell
	 	Name:	Wes
    Brazell
	 	Title:	Chief
    Financial Officer
	 	 	 
	 	OCCULOGIX
    CANADA CORP.
	 	 	 
	 	By:
    	/s/
    Wes Brazell
	 	Name:	Wes
    Brazell
	 	Title:	Chief
    Financial Officer

 

[Signature
page 1 to Fourth Amendment to Term Loan Agreement]

 

    	 	 	 

    	 

    

 

	 	Agreed
    and acknowledged with respect to Section 3 only:
	 	 	 
	 	OCUHUB
    LLC
	 	 	 
	 	By:
    	/s/
    Seph Jensen
	 	Name:	Seph
    Jensen
	 	Title:	CEO

 

[Signature
page 2 to Fourth Amendment to Term Loan Agreement]

 

    	 	 	 

    	 

    

 

LENDERS:

 

CAPITAL
ROYALTY PARTNERS II L.P. 

     By
CAPITAL ROYALTY PARTNERS II GP

     L.P.,
its General Partner 

              By
CAPITAL ROYALTY PARTNERS II 

              GP
LLC, its General Partner 

 

	By:
    	/s/ Nathan Hukill	 
	Name:	Nathan
    Hukill	 
	Title:	Authorized
    Signatory	 

 

PARALLEL
INVESTMENT OPPORTUNITIES 

PARTNERS II L.P.

     By
PARALLEL INVESTMENT 

     OPPORTUNITIES PARTNERS
II GP L.P., its 

      General Partner

              By
PARALLEL INVESTMENT 

              OPPORTUNITIES
PARTNERS II GP LLC,

              its
General Partner

 

	By:	/s/ Nathan Hukill	 
	Name:	Nathan
    Hukill	 
	Title:	Authorized
    Signatory	 

 

	CRG
    Issuer 2015-1	 
	By
    CRG Servicing LLC, as Administrator	 
	 	 	 
	By:	/s/
    Nathan Hukill	 
	Name:
    	Nathan
    Hukill	 
	Title	President	 

 

[Signature
page 3 to Fourth Amendment to Term Loan Agreement]

 

    	 	 	 

    	 

    

 

Exhibit
A

 

(See
attached)

 

    	 	 	 

    	 

    

 

Annex
B to Compliance Certificate

 

CALCULATIONS
OF FINANCIAL COVENANT COMPLIANCE

 

	I.	 	Section
    10.01: Minimum Liquidity	 	 
	 	 	 	 	 
	A.	 	Amount
    of unencumbered cash and Permitted Cash Equivalent Investments (which for greater certainty shall not include any undrawn
    credit lines), in each case, to the extent held in an account over which the Lenders have a first priority perfected security
    interest, subject to Permitted Priority Liens:	 	$__________
	 	 	 	 	 
	 	 	Is
    Line IA equal to or greater than $5,000,000?:	 	Yes:
    In compliance; 

    No: Not in compliance
	 	 	 	 	 
	II.	 	Section
    10.02(a)-(f): Minimum Revenue—Subsequent Periods	 	 
	 	 	 	 	 
	A.	 	Revenues
    during the twelve month period beginning on January 1, 2015	 	$__________
	 	 	 	 	 
	 	 	[Is
    line II.A equal to or greater than $25,000,000?	 	Yes:
    In compliance; 

    No: Not in compliance]1
	 	 	 	 	 
	B.	 	Revenues
    during the twelve month period beginning on January 1, 2016	 	$__________
	 	 	 	 	 
	 	 	[Is
    line II.B equal to or greater than $27,000,000?	 	Yes:
    In compliance; 

    No: Not in compliance]2
	 	 	 	 	 
	C.	 	Revenues
    during the twelve month period beginning on January 1, 2017	 	$__________
	 	 	 	 	 
	 	 	[Is
    line II.C equal to or greater than $31,000,000?	 	Yes:
    In compliance; 

    No: Not in compliance]3
	 	 	 	 	 
	D.	 	Revenues
    during the twelve month period beginning on January 1, 2018	 	$__________
	 	 	 	 	 
	 	 	[Is
    line II.D equal to or greater than $36,000,000?	 	Yes:
    In compliance; 

    No: Not in compliance]4
	 	 	 	 	 
	E.	 	Revenues
    during the twelve month period beginning on January 1, 2019	 	$__________
	 	 	 	 	 
	 	 	[Is
    line II.E equal to or greater than $45,000,000?	 	Yes:
    In compliance; 

    No: Not in compliance]5
	 	 	 	 	 
	F.	 	Revenues
    during the twelve month period beginning on January 1, 2020 	 	 
	 	 	 	 	 
	 	 	[Is
    line II.F equal to or greater than $55,000,000?	 	Yes:
    In compliance; 

    No: Not in compliance]6

 

 

 

1
Include bracketed entry only on the Compliance Certificate to be delivered within 90 days of the end of 2015 pursuant to
Section 8.01(b) of the Loan Agreement.

2
Include bracketed entry only on the Compliance Certificate to be delivered within 90 days of the end of 2016 pursuant to
Section 8.01(b) of the Loan Agreement.

3
Include bracketed entry only on the Compliance Certificate to be delivered within 90 days of the end of 2017 pursuant to
Section 8.01(b) of the Loan Agreement.

4
Include bracketed entry only on the Compliance Certificate to be delivered within 90 days of the end of 2018 pursuant to
Section 8.01(b) of the Loan Agreement.

5
Include bracketed entry only on the Compliance Certificate to be delivered within 90 days of the end of 2019 pursuant to
Section 8.01(b) of the Loan Agreement.

6
Include bracketed entry only on the Compliance Certificate to be delivered within 90 days of the end of 2020 pursuant to
Section 8.01(b) of the Loan Agreement.

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