Document:

Exhibit 10.2

 

 

 

 

 

 

 

 

 

 

 

 

 

ANNUAL EMPLOYEE INCENTIVE COMPENSATION

PLAN FOR CONSUMERS ENERGY COMPANY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ANNUAL EMPLOYEE INCENTIVE COMPENSATION

PLAN FOR CONSUMERS ENERGY COMPANY

 

I.                                      GENERAL PROVISIONS

 

1.1         Purpose.  The purpose of the Annual Employee Incentive Compensation Plan (“EICP” or “Plan”) is to provide an equitable and competitive level of compensation that will permit Consumers Energy Company (“Company”) and its subsidiaries to attract, retain and motivate their Employees.

 

1.2         Effective Date.    The Plan as described herein is amended and restated effective as of March 14, 2014 and revised August 4, 2017.

 

1.3         Eligibility.  Regular non-union U.S. employees who have received a performance rating of at least “Effective” (also known as “Meets Expectations” or “Satisfactory” or “Fully Contributing”) for the Performance Year as documented on their annual performance, evaluation, feedback and development appraisal are eligible for participation in the EICP.   Any regular non-union employee who has received a performance rating of less than “Effective” (also known as “Meets Expectations” or “Satisfactory” or “Fully Contributing”) or under-contributing (“U”) for the Performance Year as documented on their annual performance, evaluation, feedback and development appraisal is not eligible for participation in the EICP.

 

II.                                CORPORATE PERFORMANCE GOALS

 

Each year the President and CEO of CMS Energy Corporation will establish the Corporate Performance Goals (“Goals”) for the EICP.  The Goals will consist of between five and fifteen utility specific performance criteria relating to such items as customer service, safety and reliability.  When establishing the Goals for a Performance Year, the President and CEO will include the total number of criteria to be used for the year as well as the award percent for achievement of a specified number of the established criteria.  The specific Goals will be communicated to employees no later than March 31st of the Performance Year.  The Award Formula may include additional adjustments based on financial performance goals relating to CMS Energy Corporation as determined by the Compensation and Human Resources Committee of the Company Board of Directors (the “Committee”).

 

III.                          ANNUAL AWARD FORMULA

 

3.1         Annual Awards.  Annual Awards for each eligible EICP participant will be based upon a standard award as set forth in the table below.  The total amount of a participant’s Annual Award shall be computed according to the annual award formula set forth in Section 3.2.  The Standard Award Amounts are subject to

 

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adjustment by the President and CEO of CMS Energy Corporation as indicated by market practices.

 

	
 
    	
 
    	
Fulltime
    	
 
    	
Part time
    	
 
    
	
 
    	
 
    	
Standard
    	
 
    	
Standard
    	
 
    
	
Salary
    	
 
    	
Award
    	
 
    	
Award
    	
 
    
	
Grade
    	
 
    	
Amount
    	
 
    	
Amount
    	
 
    
	
25
    	
 
    	
$18,500
    	
 
    	
 
    	
 
    
	
24
    	
 
    	
$18,250
    	
 
    	
 
    	
 
    
	
23
    	
 
    	
$11,250
    	
 
    	
 
    	
 
    
	
22
    	
 
    	
$11,000
    	
 
    	
 
    	
 
    
	
21
    	
 
    	
$6,750
    	
 
    	
 
    	
 
    
	
20
    	
 
    	
$6,500
    	
 
    	
 
    	
 
    
	
19
    	
 
    	
$6,250
    	
 
    	
 
    	
 
    
	
18
    	
 
    	
$1,000
    	
 
    	
$500
    	
 
    
	
17
    	
 
    	
$875
    	
 
    	
$438
    	
 
    
	
16
    	
 
    	
$750
    	
 
    	
$375
    	
 
    
	
15
    	
 
    	
$675
    	
 
    	
$338
    	
 
    
	
14
    	
 
    	
$600
    	
 
    	
$300
    	
 
    
	
13
    	
 
    	
$575
    	
 
    	
$288
    	
 
    
	
12
    	
 
    	
$550
    	
 
    	
$275
    	
 
    
	
11
    	
 
    	
$525
    	
 
    	
$263
    	
 
    
	
10
    	
 
    	
$500
    	
 
    	
$250
    	
 
    
	
9
    	
 
    	
$475
    	
 
    	
$238
    	
 
    
	
8
    	
 
    	
$450
    	
 
    	
$225
    	
 
    
	
7
    	
 
    	
$425
    	
 
    	
$213
    	
 
    
	
6
    	
 
    	
$400
    	
 
    	
$200
    	
 
    
	
5
    	
 
    	
$375
    	
 
    	
$188
    	
 
    
	
4
    	
 
    	
$350
    	
 
    	
$175
    	
 
    
	
3
    	
 
    	
$325
    	
 
    	
$163
    	
 
    
	
2
    	
 
    	
$300
    	
 
    	
$150
    	
 
    
	
1
    	
 
    	
$275
    	
 
    	
$138
    	
 
    

 

 

3.2         Annual Awards for EICP participants will be calculated and made as follows:

 

Annual Award = Standard Award Amount X Operational Award Level X 50% Plus Standard Target Amount X Financial Award Level X 50%

 

IV.                          PAYMENT OF ANNUAL AWARDS

 

4.1         Cash Annual Award.  All Annual Awards for a Performance Year will be paid in cash no later than March 15th of the calendar year following the Performance Year provided that the Annual Award for a particular Performance Year has not been deferred voluntarily pursuant to Section 4.2.  The amounts required by law to be withheld for income and employment taxes will be deducted from the Annual Award payments.  All Annual Awards become the obligation of the company on whose payroll the Employee is enrolled at the time the Committee makes the Annual Award.

 

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4.2         Deferred Annual Awards.

 

(a)             The payment of all or any portion (rounded to an even multiple of 10%) of a cash Annual Award may be deferred voluntarily at the election of individual participants in salary grades 19-25.  Any such deferral will be net of any applicable FICA or FUTA taxes.  A separate irrevocable election must be made prior to the  Performance Year.  Any Annual Award made by the Committee after termination of employment of a participant or retirement of a participant will be paid in accordance with any deferral election made within the enrollment period.

 

(b)            At the time the participant makes a deferral election he or she must select the payment options (including the Payment Event as set forth at (c) below and the Payment Term as set forth at (d) below) applicable to the Deferred Annual Award for the Performance Year, as well as any earnings or income attributable to such amounts.  The payment options elected will apply only to that year’s Deferred Annual Award and will not apply to any previous Deferred Annual Award or to any subsequent Deferred Annual Award.  Any participant who elects to defer all or a portion of an Annual Award and who fails to select a Payment Event or a Payment Term will be presumed to have elected a Payment Event of Separation from Service in accordance with paragraph (c)(i) below and/or a Payment Term of a single sum.

 

(c)             The Payment Event elected can be either:

 

(i)                Separation from Service for any reason other than death.  Payment will be made, or begin, in the later of: (1) January of the year following the year of the Separation from Service; or (2) the seventh month after the month of the Separation from Service.  Later installments, if any, will be paid in January of the succeeding years;

 

(ii)            Payment upon attainment of a date certain that is more than 1 year after the last day of the applicable Performance Year.  Later installments, if any, will be paid in January of the succeeding years;

 

(iii)        The first to occur of (i) or (ii) above; or

 

(iv)  The later of (i) or (ii) above.

 

(d)           Payment Term.  At the time of electing to defer an Annual Award, the participant must also elect how he or she wishes to receive any such payment from among the following options (the participant may elect a separate Payment Term for each Payment Event elected):

 

(i)                Payment in a single sum upon occurrence of the Payment Event.

 

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(ii)            Payment of a series of annual installment payments over a period from two (2) years to fifteen (15) years following the Payment Event.  Each installment payment shall be equal to a fractional amount of the balance in the account the numerator of which is one and the denominator of which is the number of installment payments remaining.  Although initially such installment payments will be identical, actual payments may vary based upon investment performance.  For example, a series of 5 installment payments will result in a payout of 1/5 of the account balance in the first installment, 1⁄4 of the account balance (including investment gains or losses since the first installment date) in the second installment, etc.

 

(e)        Changes to Payment Options.  Once a payment option has been elected, subsequent changes which would accelerate the receipt of benefits from the Plan are not permitted, except that the Plan Administrator, which is the Benefit Administration Committee as defined in the Savings Plan for Employees of Consumers Energy and other CMS Energy Companies (the “Savings Plan”), may at its discretion accelerate payments to the extent permitted by Code Section 409A and applicable regulations.  A subsequent election to change the payment options related to a Payment Event, in order to delay a payment or to change the form of a payment, can only be made when all of the following conditions are satisfied:

 

(i)                such election may not take effect until at least 12 months after the date on which the election is made;

 

(ii)            the payment(s) with respect to which such election is made is deferred for a period of not less than 5 years from the date such payment would otherwise have been made (or, in the case of installment payments under Section 4.2(d)(ii) with regard to amounts deferred (and the related earnings) prior to January 1, 2016, 5 years from the date the first installment was scheduled to be paid); and

 

(iii)  such election must be made not less than 12 months before the date the payment was previously scheduled to be made (or, in the case of installment payments under Section 4.2(d)(ii) with regard to amounts deferred (and the related earnings) prior to January 1, 2016, 12 months before the first installment was scheduled to be paid), if the participant’s previous commencement date was a specified date.

 

Effective January 1, 2016, the right to a series of installment payments is to be treated as a right to a series of separate payments to the extent permissible under Code Section 409A and any applicable regulations.

 

(f)              Investments. At the time of electing to voluntarily defer payment, the participant must elect how the Deferred Annual Award will be treated by the Company or Subsidiary.  To the extent that any amounts deferred are placed in

 

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a rabbi trust with an independent record keeper, a participant who has previously deferred amounts under this Plan will automatically have his or her existing investment profile apply to this deferral also.  All determinations of the available investment options by the Plan Administrator are final and binding upon participants.  A participant may change the investment elections at any time prior to the payment of the benefit, subject to any restrictions imposed by the Plan Administrator, the plan record keeper or by any applicable laws and regulations.  A participant not making an election will have amounts deferred treated as if in a Lifestyle Fund as defined in the Savings Plan applicable to the participant’s age 65, rounded up, or such other investment as determined by the Plan Administrator.  All gains and losses will be based upon the performance of the investments selected by the participant from the date the deferral is first credited to the nominal account.  If the Company elects to fund its obligation as discussed below, then investment performance will be based on the balance as determined by the record keeper.

 

(g)            The amount of any Deferred Annual Award is to be satisfied from the general corporate funds of the company on whose payroll the Plan participant was enrolled prior to the payout beginning and are subject to the claims of general creditors of the company.  This is an unfunded nonqualified deferred compensation plan.  To the extent the Company elects to place funds with a trustee to pay its future obligations under this Plan, such amounts are placed for the convenience of the Company or Subsidiary, remain the property of the Company or Subsidiary and the participant shall have no right to such funds until properly paid in accordance with the provisions of this Plan.  For administrative ease and convenience, such amounts may be referred to as participant accounts, but as such are a notional account only and are not the property of the participant.  Such amounts remain subject to the claims of the creditors of the Company or Subsidiary.

 

(h)            Payment in the Event of an Unforeseeable Emergency. The participant may request that payments commence immediately upon the occurrence of an Unforeseeable Emergency as that term is defined in Code Section 409A and any applicable regulations.  Generally, an unforeseeable emergency is a severe financial hardship resulting from an illness or accident of the participant or the participant’s spouse or dependent, loss of the participant’s property due to casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the participant.  A distribution on account of unforeseeable emergency may not be made to the extent that such emergency is or may be relieved through reimbursement or compensation from insurance or otherwise, by liquidation of the participant’s assets (without causing severe financial hardship), or by cessation of deferrals under this arrangement, the Savings Plan or other arrangements. Distributions because of an unforeseeable emergency shall not exceed the amount permitted under Section 409A and accordingly are limited to the amount reasonably necessary to satisfy the emergency need (after use of insurance proceeds, liquidation of

 

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assets, etc.) plus an amount to pay taxes reasonably anticipated as a result of the distribution. In the event any payment is made due to an unforeseeable emergency, all deferral elections for the current Performance Year will cease and the participant will not be eligible to make any deferral elections under this Plan for the following Performance Year.  For any participant receiving a hardship withdrawal under the Savings Plan, all deferral elections under this Plan for the current Performance Year will cease and the participant will not be eligible to make any deferral elections under this Plan for the following Performance Year.

 

4.3         Payment in the Event of Death.

 

(a)             A participant may name the beneficiary of his or her choice on a beneficiary form provided by the Company or record keeper, and the beneficiary shall receive, within 90 days of the participant’s death, in a single sum, all payments credited to the participant in the event that the participant dies prior to receipt of Deferred Annual Awards.  If a beneficiary is not named or does not survive the participant, the payment will be made to the participant’s estate. In no event may any recipient designate a year of payment for an amount payable upon the death of the participant.

 

(b)            A participant may change beneficiaries at any time, and the change will be effective as of the date the plan record keeper or the Company accepts the form as complete.  The Company will not be liable for any payments made before receipt and acceptance of a written beneficiary request.

 

V.                                CHANGE OF STATUS

 

Payments in the event of a change in status will not be made if no Annual Awards are made for the Performance Year.

 

5.1         Pro-Rata Annual Awards.  A new EICP participant, whether hired or promoted to the position, or an EICP employee promoted to a higher salary grade during the Performance Year will receive a pro rata Annual Award based on the percentage of the Performance Year in which the employee is in a particular salary grade.  An EICP participant whose salary grade has been lowered, but whose employment is not terminated during the Performance Year will receive a pro rata Annual Award based on the percentage of the Performance Year in which the employee is in a particular salary grade.  Awards will also be prorated for any change in full time or part time work status.

 

5.2         Termination.  An EICP participant whose employment is terminated pursuant to a violation of the Company code of conduct or other corporate policies will not be considered for or receive an Annual Award.

 

5.3         Resignation.  An EICP participant who resigns prior to payment (during or after a Performance Year) will not be eligible for an Annual Award.  If the resignation is

 

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due to reasons such as a downsizing or reorganization, or the ill health of the employee or ill health in the immediate family, the employee may petition the Plan Administrator and may be considered, in the discretion of the Plan Administrator, for a pro rata Annual Award.  The Plan Administrator’s decision to approve or deny the request for a pro rata Annual Award shall be final.

 

5.4         Death, Disability, Retirement, Leave of Absence.  An EICP participant whose status as an active employee is changed during the Performance Year due to death, Disability, Retirement, or Leave of Absence (as determined by the Plan Administrator) will receive a pro rata Annual Award.  An EICP participant whose employment is terminated following the Performance Year but prior to payment due to death, Disability or Retirement will continue to be eligible for an Annual Award for the Performance Year.  Any such payment or Annual Award payable due to the death of the EICP participant will be made to the named beneficiary, or if no beneficiary is named or if the beneficiary doesn’t survive the EICP participant, then to the EICP participant’s estate no later than March 15 following the applicable Performance Year.  Notwithstanding the above, an EICP participant who retires, is on disability or leave of absence and who becomes employed by a competitor of CMS Energy or Consumers Energy or their subsidiaries or affiliates prior to award payout will forfeit all rights to an Annual Award, unless prior approval of such employment has been granted by the Committee.  A “competitor” shall mean an entity engaged in the business of (1) selling (a) electric power or natural gas at retail or wholesale within the State of Michigan or (b) electric power at wholesale within the market area in which an electric generating plant owned by a subsidiary or affiliate of CMS Enterprises is located or (2) developing an electric generating plant within the State of Michigan or a market area in which an electric generating plant owned by a subsidiary.

 

5.5         Payment Following Leave of Absence.  Payment of an award for an EICP participant who is on leave of absence or Family Medical Leave Act leave at the time of payment shall be delayed until the participant has returned to work and then shall be paid in the payroll period that is within an administratively reasonable time after returning to work, but no later than March 15 of the year following the year the participant has returned to work.

 

.

 

VI.                          MISCELLANEOUS

 

6.1         Impact on Benefit Plans.  Payments made under the Plan will be considered as earnings for the Supplemental Executive Retirement Plans (Salary Grades 24 and 25) but not for purposes of the Employees’ Savings Plan, Pension Plan, or other employee benefit programs.

 

6.2         Impact on Employment.  Neither the adoption of the Plan nor the granting of any Annual Award under the Plan will be deemed to create any right in any individual to

 

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be retained or continued in the employment of the Company or any corporation within the Company’s control group.

 

6.3         Termination or Amendment of the Plan.  The Company may amend or terminate the Plan at any time.  Upon termination, any Deferred Annual Award accrued under the Plan and vested will remain in the Plan and be paid out in accordance with the Payment Elections previously selected.  The Plan Administrator is authorized to make any amendments that are deemed necessary or desirable to comply with any applicable laws, regulations or orders or as may be advised by counsel or to clarify the terms and operation of the Plan.  The Company may terminate the Plan and accelerate any benefits under the Plan, at its discretion, if it acts consistent in all manners with the requirements of Code Section 409A and any applicable regulations with respect to when a terminated plan may accelerate payment to a participant.

 

6.4         Governing Law.  The Plan will be governed and construed in accordance with the laws of the State of Michigan.

 

6.5         Dispute Resolution.  Any disputes related to the Plan must be brought to the Plan Administrator.  The Plan Administrator is granted full discretionary authority to apply the terms of the Plan, make administrative rulings, interpret the Plan and make any other determinations with respect to the Plan.  If the Plan Administrator makes a determination and the participant disagrees with or wishes to appeal the determination, the participant must appeal the decision to the Plan Administrator, in writing and not later than 60 days from when the determination was mailed to the participant.  If the participant does not timely appeal the original determination, the participant has no further rights under the Plan with respect to the matter presented in the claim.  If the participant appeals the original determination and that appeal does not result in a mutually agreeable resolution, then the dispute shall be subject to final and binding arbitration before a single arbitrator selected by the parties to be conducted in Jackson, Michigan, provided the participant makes such request for arbitration in writing within 30 days of the final decision by the Plan Administrator.  The arbitration will be conducted and finished within 90 days of the selection of the arbitrator.  The parties shall share equally the cost of the arbitrator and of conducting the arbitration proceeding, but each party shall bear the cost of its own legal counsel and experts and other out-of-pocket expenditures.  The arbitrator must use an arbitrary and capricious standard of review when considering any determinations and findings by the Plan Administrator.

 

VII.                    AMENDMENT TO REFLECT CODE SECTION 409A

 

7.1         Code Section 409A.  This Plan has been amended, effective as of January 1, 2005, to comply with the requirements of Section 409A of the Code.  To the extent counsel determines additional amendments may be reasonable or desirable in order to comply with Code Section 409A, and any other applicable rules, laws and regulations, such changes shall be authorized with the approval of the Plan Administrator.

 

8Exhibit 10.1

 

Jaguar Health, Inc.
 201 Mission Street, Suite 2375
 San Francisco, CA 94105

 

October 25, 2017

 

VIA ELECTRONIC MAIL

Maxim Group LLC

405 Lexington Avenue, 2nd Floor

New York, New York 10174

 

Dear All:

 

Reference is hereby made to that certain Underwriting Agreement, dated September 29, 2017 (the “Underwriting Agreement”), by and between Jaguar Health, Inc. (the “Company”) and Maxim Group LLC, as representative of the several underwriters named in Schedule I thereto (the “Representative”). Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Underwriting Agreement.

 

The parties have agreed to amend the covenant relating to subsequent equity sales and related defined terms set forth in the Underwriting Agreement (the “Amendment”). In addition, the Representative has agreed to provide its consent to the Company’s amendment, extension or other modification of certain existing transaction documents (the “Consent”). This letter agreement (“Letter Agreement”) shall serve as an amendment to the Underwriting Agreement and consent of the Representative, in each case pursuant to Section 7.4 of the Underwriting Agreement, and as written evidence of the mutual agreement between the parties to the Amendment and the Consent.

 

1.              Underwriting Agreement Amendments.  Accordingly, the Company and the Representative hereby agree that:

 

a.  Section 1.1 of the Underwriting Agreement is hereby amended to include the following provisions:

 

“Contacted Investors” means the investors contacted by Maxim Group LLC in connection with this Offering set forth in Appendix B hereto but for the avoidance of doubt whether or not listed on Appendix B, excluding the “Excluded Investors” (as defined below).

 

“CVP Notes” means the $2,155,000 aggregate principal amount of secured convertible promissory notes due August 2, 2018, issued pursuant to the Securities Purchase Agreement, dated June 29, 2017, by and between the Company and Chicago Venture Partners, L.P., as well as any accrued and unpaid interest, fees, charges, and late fees payable thereon at maturity.

 

 

“Excluded Investors” means Aspire Capital Fund, LLC, Chicago Venture Partners, L.P., Kingdon Capital Management, Kingdon Associates, M. Kingdon Offshore Master Fund  L.P., Kingdon Family Partnership, L.P.,  Kingdon Credit Master Fund L.P., KCSA Strategic Communications,  and any of such entities’ respective affiliates.

 

“Excluded Transactions” means: (a) any financing of Common Stock and/or warrants to purchase shares of common stock (“Warrants”) and/or debt at or above twenty cents ($0.20) per share between the Company and any of the Excluded Investors, including but not limited to for the avoidance of doubt any “Consented Transactions” (as defined in Section 2 below) and (b) any financing of Common Stock and/or Warrants at or above twenty cents ($0.20) per share between the Company and investors introduced by a Middle Eastern broker dealer; provided, however, no Excluded Transaction will include any anti-dilution provisions.

 

“Kingdon Notes” means the $10,000,000 aggregate principal amount of convertible promissory notes, issued pursuant to the Amended and Restated Note Purchase Agreement, dated March 31, 2017, by and among Napo Pharmaceuticals, Inc., Kingdon Associates, M. Kingdon Offshore Master Fund L.P., Kingdon Family Partnership, L.P., and Kingdon Credit Master Fund L.P., as well as any accrued and unpaid interest, fees, charges, and late fees payable thereon at maturity.

 

b.  Section 4.19(a) of the Underwriting Agreement is hereby deleted in its entirety and replaced as follows:

 

“(a)         From September 29, 2017 until January 27, 2018, neither the Company nor any Subsidiary shall issue, enter into any agreement to issue or announce the issuance or proposed issuance of any shares of Common Stock or Common Stock Equivalents;  except (x) any issuance or any agreement to issue or any announcement of the issuance or proposed issuance of any shares of Common Stock or Warrants at or above twenty cents ($0.20) per share (adjusted appropriately for any stock splits, combinations, reclassifications and the like) or (y) any issuance or any agreement to issue or any announcement of the issuance or proposed issuance of any shares of  Common Stock or Common Stock Equivalents for non-direct cash or other consideration for financial commitments or arrangements and other services in only restricted stock, provided that the number of shares issued in any one-month period pursuant to this clause (y) shall be no more than 2.0% of the Company’s fully diluted shares outstanding as of October 24, 2017 (the “Non-Cash Shares”), regardless of the deemed price per share.  The Non-Cash Shares shall be issued subject to volume trading restrictions at no more than 5.0% of the daily trading volume.”

 

c. Section 4.19 of the Underwriting Agreement is hereby amended to add the following Section 4.19(d):

 

“(d)         Notwithstanding the foregoing, in connection with any financing by the Company or any Subsidiary conducted from September 29, 2017 until January 27, 2018 (the “120 Tail Period”), except in connection with the Excluded Transactions, Maxim Group LLC shall serve as the sole and exclusive financial advisor on such financing, and the 

 

 

Company shall pay Maxim Group LLC a fee equal to seven percent (7%) of total gross proceeds received by the Company from investors contacted by Maxim Group LLC in  connection with such financing; provided, however, that Maxim shall not contact any investors other than the Contacted Investors without the prior written consent of the Company. Other than any fees to be paid to Maxim Group LLC pursuant to this Section 4.19(d), no brokerage or finder’s fees or commissions are or will be payable by the Company, any Subsidiary or Affiliate of the Company to any other broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to any such financing during the 120 Tail Period except in connection with any Excluded Transaction.”

 

d. Section 4.20 of the Underwriting Agreement is hereby deleted in its entirety and replaced as follows:

 

“If on, or before October 3, 2018, the Company completes any financing of equity, equity-linked or debt or other capital raising activity of the Company (except (i) the exercise by any person or entity of any options, warrants or other convertible securities outstanding on the date hereof, or (ii) the Excluded Transactions) with any Contacted Investors, then the Company will pay Maxim Group LLC upon the closing of such financing seven percent (7%) of the total gross proceeds received by the Company from such investors in connection with such financing.”

 

2.              Consent.  Notwithstanding any provision set forth in the Underwriting Agreement or the Amendment, the Representative hereby consents to any amendment, extension or other modification to the CVP Notes, Kingdon Notes or related transaction documents; provided however, that no such amendment, extension or modification shall result in the issuance of shares of Common Stock or Common Stock Equivalents at a conversion price of less than $0.40 per share (adjusted appropriately for any stock splits, combinations, reclassifications and the like) (collectively, the “Consented Transactions”).

 

3.              Miscellaneous.

 

a.  Effectiveness.  From and after the date hereof, all references to the Underwriting Agreement shall mean the Underwriting Agreement as amended by this Letter Agreement.

 

b. Other Provisions Unaffected.  Except as modified by this Letter Agreement, the Underwriting Agreement is unchanged and shall continue in full force and effect in accordance with the provisions thereof.

 

c.  Amendments.  The provisions of this Letter Agreement may not be amended, modified or supplemented, and waivers or consents to departure from the provisions hereof may not be given, except by the written consent of all parties hereto.

 

[Signature page follows]

 

 

	
 
    	
Very   truly yours,
    
	
 
    	
 
    
	
 
    	
JAGUAR   HEALTH, INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Lisa A. Conte
    
	
 
    	
Name:   
    	
Lisa   A. Conte
    
	
 
    	
Title:   
    	
President &   CEO
    
	
 
    	
 
    
	
 
    	
 
    
	
MAXIM   GROUP LLC
    	
 
    
	
As   the Representative of the several
    	
 
    
	
Underwriters   listed on Schedule I to the Underwriting Agreement
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Clifford A. Teller
    	
 
    
	
Name:   
    	
Clifford   A. Teller
    	
 
    
	
Title:   
    	
Executive   Managing Director, Investment Banking
    	
 
    

 

Signature Page to Letter Agreement

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