Item 1.01 Entry into A Material Definitive Agreement.
PPP Loan
On May 6, 2020, TearLab Corp. (the "Company") entered into a loan agreement to
receive funding under a United States Small Business Administration ("SBA") loan
(the "PPP Loan") from a commercial bank under the SBA's Payroll Protection
Program ("PPP"). The Company received the funds on May 7, 2020. The principal
loan amount is $801,030.
The PPP Loan has a two-year term, maturing on May 6, 2022. The interest rate on
the PPP Loan is 1.0% per annum. Principal and interest are payable in monthly
installments, beginning six months after the date of disbursement, until
maturity with respect to any portion of the PPP Loan which is not forgiven as
described below. The Company did not provide any collateral or guarantees for
the PPP Loan, nor did the Company pay any facility charge to obtain the PPP
Loan. The PPP Loan provides for customary events of default, including, among
others, those relating to failure to make payment, bankruptcy, breaches of
representations and material adverse effects. The Company is permitted to prepay
or partially prepay the PPP Loan at any time with no prepayment penalties.
The PPP Loan may be partially or fully forgiven if the Company complies with the
provisions of the CARES Act, including the use of PPP Loan proceeds for payroll
costs, rent, utilities and other expenses. The PPP Loan is forgivable in its
entirety if the Company supplies verifying documentation that it has used 75% of
the PPP Loan proceeds for covered payroll costs and not more than 25% of the PPP
Loan proceeds for SBA approved non-payroll costs incurred before February 15,
2020, over the eight week period from the date of disbursement of the loan.
The foregoing description of the PPP Loan is qualified in its entirety by
reference to the provisions of the PPP Loan agreement, which is attached hereto
as Exhibit 10.1 and is incorporated herein by reference.
CRG Consent
On May 10, 2020, effective May 7, 2020, the Company entered into a Consent (the
"Consent") to its Term Loan Agreement, dated as of March 4, 2015, as amended by
the Omnibus Amendment Agreement, dated as of April 2, 2015, Amendment 2, dated
as of August 6, 2015, Amendment 3, dated as of December 31, 2015, Amendment 4,
dated as of April 7, 2016, Amendment 5, dated as of October 12, 2017, Amendment
6, dated as of April 4, 2018, Amendment 7, dated as of November 12, 2018, and
Amendment 8, dated as of October 4, 2019, by and among the Company, certain of
its subsidiaries from time to time party thereto as guarantors and certain
affiliate funds of CRG as lenders. The Consent provides for the lenders' consent
to the Company's receipt of the PPP Loan.
The foregoing description of the Consent is qualified in its entirety by
reference to the provisions of the Consent, which is attached hereto as Exhibit
10.2 and is incorporated herein by reference.
Item 2.03 Creation of a Direct Financial Obligation under an Off-Balance Sheet
Arrangement of a Registrant.
The information about the PPP Loan and the Consent disclosed in Item 1.01 above
is incorporated by reference into this Item 2.03.
Item 9.01 Financial Statements and Exhibits.
Exhibit No. Description
10.1 Paycheck Protection Program Promissory Note and Agreement dated as
of May 6, 2020
10.2 Consent© Edgar Online, source Glimpses
TEARLAB CORPORATION 
