Document:

Distribution Agreement

 EXHIBIT 10.56 

DISTRIBUTION AGREEMENT 

THIS AGREEMENT is made as of this
9th day of January, 2010 (“Effective Date”)
between CareView Communications, Inc. (“Licensor” or “CareView”) and Foundation Medical, LLC, a South Carolina limited liability company (“Distributor”). 

RECITALS 

WHEREAS, Licensor desires to grant Distributor a license for a definite term to promote, distribute and sell certain products and
software bearing the trademark “CareView” in the “Territory” as that term is defined herein; 
 WHEREAS, the
Distributor desires to actively promote, distribute and sell the products in the “Territory” on the following terms and conditions, 

COVENANTS 

In consideration of their mutual covenants and agreements contained herein and the mutual benefits to be derived therefrom, the parties,
intending to be legally bound, hereby covenant and agree as follows: 
 ARTICLE 1 

DEFINITIONS 

In this Agreement, the following terms shall have the following meanings: 

1.1 Agreement. The term “Agreement” when used herein means this document and any annex, exhibit, attachment,
schedule, addendum or modification hereto, unless the context otherwise indicates. 
 1.2 Products. The term
“Products” means all current and future CareView products and/or services developed by or for Licensor or promoted for sale by Licensor. The services shall include the 

 

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products bearing the trademarks CareView Systems, ProcedureView, NurseView, PatientView, FacilityView, EquipmentView, NetView, Virtual Bed Rails, BabyView, MovieView, PhysicianView or SecureView
and manufactured as completed and finished by Approved Manufacturers. A partial list of the Products is set forth in Exhibit “A.” The Products shall include the hardware, software, software upgrades, spare or constituent parts of such
products. 
 1.3 Approved Manufacturer. The term “Approved Manufacturer” means manufacturers who are approved
by CareView and who manufacture “Products” according to processes, specifications and other quality standards set by CareView. 

1.4 Customer. The term “Customer(s)” when used herein means any purchaser of the “Products” sold
by Distributor. 
 1.5 Confidential Information. The term “Confidential Information” when used herein
means and includes specifications, suppliers, vendors, contractors, producers, manufacturers, facilities, employees, salesmen, sales presentations, contract verification procedures, billing and collection practices and procedures, software packages
and combinations, advertising response ratios, sales figures, income and expense figures, all of which are owned by Licensor or Distributor and regularly used in the operation of Licensor’s or Distributor’s business, and all other
information, whether or not reduced to writing, relating to the manufacture, marketing, promotion, distribution and sale of the Products, as well as any other information relating to the business of Licensor or Distributor that may be divulged to
the Distributor or Licensor in the course of its performance of this Agreement and that is not generally known in the trade. 

1.6 Trademarks. The term “Trademark” when used herein means CareView’s trademarks. 

 

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 1.7 Contract Year. The term “Contract Year” when used herein means a
twelve month period commencing on the Effective Date. 
 1.8 Territory. The term “Territory” when used
herein means the states of Maine, Vermont, New Hampshire, Connecticut, Massachusetts, New York, Pennsylvania, New Jersey, the District of Columbia, Rhode Island, Delaware, Maryland, Virginia, West Virginia, North Carolina, South Carolina, Alabama,
Georgia and Florida. 
 1.9 Affiliate. The term “Affiliate” when used herein means any person or entity
which directly or indirectly through one or more intermediaries controls, is controlled by or is under common control with a specified person or entity. For purposes hereof, the terms “control”, “controlled”, or
“controlling” with respect to a specified person or entity shall include, without limitation: (i) the ownership, control or power to vote fifty percent (50%) or more of (x) the outstanding shares of any class of voting
securities or (y) beneficial interests, of any such person or entity, as the case may be, directly or indirectly, or acting through one or more persons or entities; (ii) the control in any manner over the managing member(s) or the election
of a majority of directors or trustees (or persons exercising similar functions) of such person or entity; or (iii) the power to exercise, directly or indirectly, control over the management or policies of such person or entity. 

ARTICLE 2 

SCOPE OF AGREEMENT 

2.1 Appointment of Distributor. On the terms of this Agreement Licensor hereby appoints Distributor as the exclusive distributor
of the Products in the Territory. The Licensor shall refer any and all inquiries relating to the Products in the Territory to the Distributor. Licensor’s website shall refer to the Distributor as the exclusive distributor of the Products in the
Territory. Licensor’s website shall also provide the contact information for the Distributor and shall provide the link to the Distributor’s website(s). 

 

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 2.2 Distribution Outside Territory. The Distributor shall limit its sales activities
with respect to the Products to Customers located in the Territory and shall refrain from any marketing or sale of the Products outside the Territory. No marketing or direct or indirect sale of the Products outside the Territory shall be permitted
via catalogues, the internet or any other medium. Notwithstanding the above, Distributor may submit to Licensor in writing any potential Customer not located in the Territory that Distributor has an existing relationship with and that Distributor
desires to contact regarding the Products. Upon written authorization by Licensor (at its sole discretion), Distributor may contact such approved potential Customer and would receive the commission described in Exhibit “B” upon such
commission being earned. 
 2.3 Expenses. The Distributor agrees that it shall incur no expense chargeable to Licensor,
except as may be specifically authorized in advance in writing in each case by Licensor. 
 2.4 Competition. Unless
specifically authorized in writing by Licensor, during the term of this Agreement, the Distributor shall not distribute, market, promote, sell, or offer to sell, or act as a distributor or sales agent for the solicitation of orders for any items
that are competitive with any of the Products. 
 2.5 No Manufacture Rights. The Distributor shall have no rights under
this Agreement to manufacture any of the Products unless approved in writing by Licensor. 
  

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 ARTICLE 3 

DISTRIBUTOR COMPENSATION 

3.1 Commissions. Distributor will earn a commission as detailed on Exhibit “B” upon the completion of an approved
contract (at the sole discretion of Licensor) and the written acceptance by the Customer of the Product by a Customer introduced to Licensor’s Products by Distributor. 

3.2 Payment. Earned commissions will be paid monthly as revenue is received from the Customer on or about the
20th of the month following receipt. 

ARTICLE 4 

WARRANTIES AND OBLIGATIONS OF THE DISTRIBUTOR OR LICENSOR 

4.1 Sales Promotion. At all times, the Distributor shall use commercially reasonable efforts to promote the sale of the Products
to potential Customers within the Territory. 
 4.2 Aftermarket Support by Licensor and Technical Training. The Licensor
shall provide free, full and complete twenty four hour telephone customer service support pertaining to the use of the Products in the Territory. In addition, Licensor will make CareView technicians available at its offices to train
Distributor’s technicians up to twice per calendar year depending on the needs of the Distributor. 
 4.3 Marketing
Material. The Licensor shall provide a copy of all marketing materials and updates to marketing materials to the Distributor free of charge. 

4.4 Software Applications. Distributor may develop, at its sole cost, any applications for its Territory which must be approved by
Licensor which approval shall not be unreasonably withheld, conditioned or delayed. Any applications developed by Distributor will be provided free of any cost to Licensor for use in its business. 

4.5 Anti-Solicitation. The Distributor warrants that it will not either directly or indirectly market or solicit orders or accept
orders from third parties, if Distributor has knowledge that such third parties intend to sell such orders outside the Territory. 
  

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 4.6. Distributor Additional Duties. 

(i) Distributor shall exercise commercially reasonable efforts to safeguard the prestige and goodwill represented by the Trademark, and
the image associated therewith. 
 (ii) Distributor shall not use or register any trademark, trading style or trade name which
is identical to or closely resembles the Trademark or any substantial part or parts thereof. 
 (iii) Distributor shall not use
the Trademark as or incorporated into a domain name for internet use, unless: (i) Distributor obtains the prior written consent of Licensor which Licensor may withhold at its sole and absolute discretion; (ii) registration of such domain
name shall be in the name of Licensor, and contain the contact details of Licensor. In addition, Distributor shall only use the domain name for the purposes of selling Products in the Territory and for the avoidance of doubt the Distributor herein
acknowledges that it shall not knowingly accept orders for the Products or sell products to any person or entity outside the Territory except in accordance with Section 2.2 above, or to any person or entity for re-sale of out the Territory.

 ARTICLE 5 

CONFIDENTIALITY AND PROPRIETARY RIGHTS 

5.1 Confidential Information. The Distributor acknowledges that the Confidential Information comprises valuable trade secrets and
is proprietary to the Licensor. The Distributor shall hold in strict confidence the Confidential Information and shall not disclose the same to any other person, firm or corporation except as reasonably required to perform its obligations under the
Agreement and solely if the Distributor obtains the prior written consent of Licensor for such disclosure of Confidential Information. 
  

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 The Licensor acknowledges that the Confidential Information comprises valuable trade secrets
and is proprietary to the Distributor. The Licensor shall hold in strict confidence the Confidential Information and shall not disclose the same to any other person, firm or corporation except as reasonably required to perform its obligations under
the Agreement and solely if the Licensor obtains the prior written consent of the Distributor for such disclosure of Confidential Information. 

5.2 Use of Confidential Information. The Distributor shall not use for any purpose other than implementation of this Agreement any
portion of the Confidential Information supplied by Licensor hereunder or any patent, trademark or other industrial property right of Licensor, nor copy any design of the Products. The Licensor shall not use for any purpose other than implementation
of this Agreement any portion of the Confidential Information supplied by the Distributor. 
 5.3 Trademarks and Trade
Names. The Distributor shall not register any of Trademarks or any mark or name closely resembling them. Distributor agrees to execute and deliver to Licensor such documents as Licensor may require registering Distributor as a registered user or
permitted user of the Trademark. In addition, Distributor agrees to follow Licensor’s instructions for proper use thereof in order that protection and/or registration for the Trademark may be obtained or maintained. 

5.4 Protection of Proprietary Rights. The Distributor agrees to cooperate with and assist Licensor, at Licensor’s expense, in
the protection of Trademarks, patents or copyrights owned by or licensed to Licensor and shall inform Licensor immediately of any infringements or other improper action with respect to such Trademarks, patents or copyrights that shall come to the
attention of the Distributor. The Licensor and the Distributor shall thereupon confer together as to what steps, if any, are to be taken to stop or prevent such infringement. The Licensor agrees to use commercially reasonable efforts to stop any
such infringements but shall not be obliged to commence proceedings 
  

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against the infringer. If Licensor decides to commence proceedings, however, Licensor shall be responsible for attorneys’ fees and costs incurred in connection with said proceeding and will
retain any damages recovered. The Distributor agrees, if necessary, to be named by Licensor as a party in any action against an infringer, provided the costs of defense of the Distributor are paid by Licensor. If Licensor does not commence
proceedings, the Distributor at its sole cost and expense may commence proceedings after it obtains the prior written consent of Licensor which consent shall not be unreasonably withheld, conditioned, or delayed. If the Distributor commences
proceedings it may retain any damages recovered. 
 ARTICLE 6 

TERM AND TERMINATION 

6.1 Term. Unless terminated as provided in Section 8.2 below or by mutual written consent, this Agreement shall continue in
full force and effect for an initial term expiring three years after the Effective Date. The term of this Agreement will thereafter be renewed automatically by one year periods unless written notice to the contrary is delivered to either party by
the other party at least thirty days prior to the end of the term. All terms of this Agreement shall apply to the extension period(s). 

6.2 Termination With Cause. This Agreement may be terminated by the Licensor, at its sole discretion, prior to expiration of the
initial three year term for cause by prior written notice to the Distributor as follows: 
 6.2.1 By Licensor, in the event the
Distributor should fail to perform any of its material obligations hereunder and should fail to remedy such non-performance within thirty (30) calendar days after receiving written demand therefor; 

 

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 6.2.2 By Licensor, effective immediately, if the Distributor should become the subject of
any voluntary or involuntary bankruptcy, receivership or other insolvency proceedings or make an assignment or other arrangement for the benefit of its creditors, or if such party should be nationalized or have any of its material assets
expropriated; 
 6.4 Rights of Parties on Termination or Expiration. The following provisions shall apply on the
termination or expiration of this Agreement: 
 6.4.1 All commissions earned by Distributor will be paid in accordance with the
terms of Article 3 regardless of the reason for the termination or expiration of the Agreement. 
 6.4.2 All indebtedness of the
Distributor to Licensor shall become immediately due and payable without further notice or demand. 
 6.5 Non-renewal.
Each party acknowledges that the other party may at its sole and absolute discretion refrain from renewing this Agreement beyond the initial three year term of this Agreement. As such, under no circumstances shall either party be liable to the other
party (in law or in equity) solely by reason of non renewal of this Agreement. 
 ARTICLE 7 

GENERAL PROVISIONS 

7.1 Entire Agreement. This Agreement, including the exhibits hereto, represents the entire agreement between the parties on the
specific subject matter hereof and supersedes all prior discussions, agreements and understandings of every kind and nature between them with respect thereto. No modification or renewal of this Agreement will be effective unless in writing and
signed by both parties. 
 7.2 Notices. All notices under this Agreement shall be in English and shall be in writing and
given by: (i) registered overnight airmail and (ii) telefax or email, addressed to the parties at the addresses immediately below their respective signatures hereto, or to such other address of which either party may advise the other in
writing. Notices will be deemed given when sent. 
  

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 NOTICES: 

Distributor: 
 Foundation Medical, LLC

 c/o Don Shirley 
 1122 Lady Street,
Suite 910 
 Columbia, SC 29201 
 Email:
dshirley@foundation-med.com 
 803-376-8988 
  

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 Licensor: 

CareView Communications, Inc. 
 c/o Steve Johnson

 405 State Highway 121 Bypass, Suite B-240 

Lewisville, TX 75067 
 Email:
sjohnson@care-view.com 
 972-943-6050 

7.3 Force Majeure. Neither party shall be in default hereunder by reason of any failure or delay in the performance of any
obligation under this Agreement where such failure or delay arises out of any cause beyond the reasonable control and without the fault or negligence of such party. Such causes shall include, without limitation, storms, floods, other acts of nature,
fires, explosions, riots, war or civil disturbance, strikes or other labor unrests, embargoes and other governmental actions or regulations that would prohibit either party from performing any aspects of the obligations hereunder, delays in
transportation, and inability to obtain necessary labor, supplies or manufacturing facilities. 
 7.4 Severability. The
illegality or unenforceability of any provision of this Agreement shall not affect the validity and enforceability of any legal and enforceable provisions hereof. 

7.5 Applicable Law and Attorneys’ Fees. This Agreement shall be construed and interpreted in accordance with, and governed
by, the substantive laws of the State of Texas in the United States of America. If either Party employs attorneys to enforce any rights arising out of or relating to this Agreement, the prevailing Party shall be entitled to recover reasonable
attorney’s fees.
 7.6 Waiver. The Distributor and Licensor agree that the failure of Licensor or Distributor at any
time to require performance by the Distributor or Licensor of any of the provisions herein shall not operate as a waiver of the right of Licensor or Distributor to request strict performance of the same or like provisions, or any other provisions
hereof, at a later time. 
  

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 7.7 Headings. Any headings used herein are for the convenience in reference only and
are not part of this Agreement, nor shall they in any way affect the interpretation hereof. 
 7.8 Survival. All
obligations of a continuing nature, shall survive the termination or expiration of this Agreement for any reason. 
 7.9 The
Distributor. The term “Distributor” shall include the Distributor and its respective principals, employees, parents, subsidiaries and Affiliates. 
  

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 IN WITNESS WHEREOF, Licensor and the Distributor have caused this instrument to be executed by their duly
authorized employees, as of the day and year first above written. 
  

			
	ACCEPTED BY:
	
	“Distributor”
	
	Foundation Medical, LLC
		
	By:	 	 /s/ Don Shirley

		 	Don Shirley
	Its:	 	Co-Owner/ President
	
	“Licensor”
		
	By:	 	 /s/ Steven Johnson

		 	Steven Johnson
	Its:	 	President/Chief Operating Officer

  

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 Exhibit “A” 

PARTIAL LIST OF LICENSOR’S POTENTIAL PRODUCTS 

The foregoing represents a partial list of the CareView Systems: 
  

	 	•	 	 SecureView. SecureView monitors and records bedside activity in the Patient’s room. 

 

	 	•	 	 NurseView. NurseView allows Authorized Users to view monitored rooms from the 

 

	 	•	 	 PhysicianView. PhysicianView enables the admitting physicians and non-physician staff members to view their Patients from any personal computer

  

	 	•	 	 PatientView. PatientView enables Patients to allow family members and friends to monitor and videoconference with them in their private rooms.

  

	 	•	 	 NetView. NetView allows the Patient access to the Internet using the wireless keyboard and the television in the room or personal laptop
computers. 

  

	 	•	 	 MovieView. MovieView allows the Patient, family and/or friends access to a wide selection of movies for their viewing pleasure while they are in
their hospital room. 

  

	 	•	 	 EquipmentView. EquipmentView enables the room communication platform to wirelessly communicate with selected equipment, appliances and devices
in the Patient’s room with the hospital’s information network. 

  

	 	•	 	 RFID Tracking. RFID tracking enables the CareView System to locate the Hospital assets and/or Patients throughout the hospital.

  

	 	•	 	 WI-FI Network. The CareView System through a series of repeaters enables the entire hospital to wirelessly access the Internet.

  

	 	•	 	 FacilityView. FacilityView monitors and records activity in any area facility would desire security camera’s to be placed. All privacy and
access options are determined and configured by The Hospital. 

  

	 	•	 	 Virtual Bed Rails. Virtual Bed Rails are invisible motion sensitive infrared borders that trigger an onscreen alarm when any defined movement
crosses over the bed rail. 

  

 14Letter of Intent

 Exhibit 10.57 

 

 

 April 13, 2010 

CareView Communications, Inc. 
 405 State
Highway 121 Bypass 
 Suite B240 

Lewisville, Texas 75067 
  

	Attn.:	Samuel A. Greco, CEO 

	 	Steve Johnson, President and COO 

__________________________________ 
 Discovery
Medical Investments, LLC 
 2913 Saturn Street 

Suite # E 
 Brea, CA 92821 

	Attn.:	Robert Sun, President 

__________________________________ 
 Mann
Equity, LLC 
 19837 Greenbriar Drive 

Tarzana, CA 91356 

	Attn.:	Sean Mann, Managing Director 

__________________________________ 
  

	Re: 	Agreement for Transactions in The People’s Republic of China, Hong Kong and Taiwan (collectively, the “Foreign Jurisdictions”) 

Gentlemen: 
 We are pleased to submit this
Letter of Intent (“LOI”), with respect to the transactions described below, wherein a company based in Hong Kong to be mutually agreed upon by all parties to this LOI, on the one hand (hereinafter “SPV”), and CareView
Communications, Inc., a Nevada Corporation, on the other hand (the “Company”), contemplate entering into an exclusive licensing agreement whereby the SPV will be granted a license to utilize certain intellectual property, to deal in and
negotiate and bargain for certain manufacturing rights, and to receive guaranteed services of the Company for the purpose of the SPV Transaction (as defined below) in the Foreign Jurisdictions. The rights granted to the SPV hereunder – and in
any formalized, binding agreements executed hereafter, including the granting of the License (collectively, such 
  

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agreements, the “Definitive Agreement”) – shall represent material consideration to AFH Holding & Advisory, LLC, a Nevada limited liability company (“AFH”) for
purposes of inducing AFH to enter into and provide certain services under this LOI and under the Definitive Agreement. 
  

			
	 Item
	  	 Description

	TERMS OF LICENSE; IP; SERVICE GUARANTEE:	  	SPV shall be granted an exclusive license (the “License”) to commercialize, in the Foreign Jurisdictions, all Intellectual Property owned, or to be owned by the Company
or which the Company otherwise has any rights, contractual or otherwise, for a period of 12 months following execution of the Definitive Agreement (the “License Period”). The License Period shall be permanently extended, subject to the
terms and conditions of the License, upon consummation of the SPV Transaction. For purposes of this LOI, the phrase “Intellectual Property” shall mean and refer to all devices, formulas, patterns, patented property, trade secret materials
or any other property as to which the Company has a right to utilize such Intellectual Property in its business during the License Period, including, but not limited to, “Nurse View,” “Patient View,” “Equipment View,”
“Net View,” “Virtual Bed Rails,” “Baby View,” “Movie View,” “Physician View,” and “Secure View” (collectively, the “Intellectual Property”). The Intellectual Property shall
include the Intellectual Property as it currently exists or as improved or modified in the future. The License shall include, and hereby does include for purposes of this LOI, a guarantee by the Company that the Company shall provide the SPV and its
designees with all technology, insulation training, support, maintenance and other services normally and anticipatorily accompanying the granting of the License for the Intellectual Property in the Foreign Jurisdictions. It also includes the right
to bargain for manufacturing rights in the Foreign Jurisdictions with the standard being the US Model Business Corporation Act and Principles of Corporate Governance and what is in the reasonable best interests of the SPV.
		
	 OWNERSHIP OF
 SPV
AND
 GROSS
 REVENUE
SHARING:
	  	Upon the execution of the Definitive Agreement (the “Closing”), the parties shall mutually designate the SPV and shall assure that (a) Amir F. Heshmatpour and his
relatives and affiliates and designees (the “AFH Group”) will own in the aggregate 16.7% of the issued and outstanding shares of Common Stock of the SPV (the “Advisor Shares”), (b) Mann Equity, LLC, a California limited liability
company (“Mann”) will own in the aggregate

  

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		  	16.7% of the issued and outstanding shares of Common Stock of the SPV (the “Mann Shares”), (c ) Discovery Medical Investments, LLC, a California limited liability
company (“Discovery”) will own in the aggregate 16.6% of the issued and outstanding shares of Common Stock of the SPV (the “Discovery Shares”) and (d) the Company will own in the aggregate the balance – or 50% – of the
issued and outstanding shares of Common Stock of the SPV (the “Company Shares”). In addition, as further consideration for the parties entering into the Definitive Agreement, the gross revenues, excluding costs and expenses incurred in
normal and ordinary course of business, shall be paid to AFH Group, Mann, Discovery and the Company in the exact percentages as their ownership interest in the SPV as set forth above (an such payments, a “Revenue Share
Payment”).
		
	 Business of the

SPV:
	  	The parties hereto acknowledge their mutual intention that the business of the SPV shall be to commercialize the Intellectual Property which is the subject of the License in the
Foreign Jurisdictions through a joint venture or other similar transaction between the SPV, on the one hand, and an entity based in one or more of the Foreign Jurisdictions, on the other hand (any such entity, the “Foreign Partner”) or
such other business arrangements as may be deemed mutually agreeable by the parties hereto (hereinafter collectively the “SPV Transaction”).
		
	 Rights of Foreign

Partner to Joint Venture:
	  	Upon the closing of any SPV Transaction, the parties hereto all intend that the closing terms shall include provisions that the Foreign Partner shall be provided by the SPV with
the rights to manage, finance, and otherwise conduct the affairs of the SPV Transaction in a manner deemed prudent in the reasonable business judgment of the Foreign Partner given realities of the business, legal and health care cultures existing in
such Foreign Jurisdictions.
		
	 Forfeitures and

Preservation of

Rights
	  	Upon the failure to close the SPV Transaction or a Default of the License, and absent further agreement of the parties hereto to the contrary, (a) the License shall terminate and
(b) all Company Shares shall be forfeited and declared null and void on the SPV’s internal books and records. For purposes of this LOI, the phrase “Default of the License” shall mean such defaults by the Company, SPV or the Foreign
Partner, as the case may be, as are mutually agreed upon in the Definitive Agreement. This LOI shall constitute an assignment separate from certificate as that phrase is defined under California law, such that the termination of the License shall by
definition automatically and without delivery of the Company Shares back to the SPV constitute the immediate cancellation and surrender of the Company Shares such that the Company owns no shares in the SPV. Thereafter, the parties hereto mutually
intend and acknowledge that the SPV may continue to transact business in accordance with applicable law.

  

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	Due Diligence:	  	AFH and the Company shall have the right to conduct a customary business, accounting, financial and legal due diligence investigation of the business and operations of the Company
or the SPV, as the case may be, to their respective satisfaction.
		
	 Conditions to

Closing:
	  	 (1) Immediately on Closing, SPV shall have the ownership percentages and revenue sharing agreements properly documented and confirmed as
required under applicable law, and in accordance with the foregoing provisions.
  

(2) All necessary consents of third parties (if any) will be obtained prior to Closing.

 
 (3) The Company shall provide to the parties hereto all reasonable documentation
confirming its ownership of or other rights to the Intellectual Property, and its right to enter into the transactions contemplated hereby.

		
	 No Material

Change
 in
Business:
	  	From and after the date of this LOI until the earliest to occur of: (i) the termination of this LOI as provided below or (ii) the execution of the Definitive Agreement and all other
actions required hereunder, including granting of the License, the Company will use commercially reasonable efforts to protect and maintain its Intellectual Property in the manner such as protected and maintained as of the date of this LOI and to
otherwise conduct its business so as not to interfere with the consummation of the transactions contemplated hereby.
		
	 Covenants of the

Company and

Management:
	  	The Definitive Agreement shall include normal and customary covenants (in respect of the Company and its subsidiaries, if any) to be mutually agreed upon.
		
	Closing:	  	The parties agree to use commercially reasonable efforts to execute and perform on all transactions contemplated hereby (other than the SPV transaction), including, but not limited
to, the Definitive Agreement, on or before the date that is 30 days from and after full execution by all parties of this LOI.
		
	 Exclusive

Dealing:
	  	From the date of this LOI until the earlier of the date of (i) termination of this LOI as provided below or (ii) the execution of the Definitive Agreement and other documents
contemplated hereby, neither the SPV nor the Company, nor any of their officers, employees, directors, managers, stockholders, other

 

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		  	equity holders, advisors, representatives or affiliates will enter into or continue any negotiations or discussions with other parties relating to any transaction in the Foreign
Jurisdictions similar to those contemplated hereby. Each party may pursue any and all remedies in law or in equity in the event of a breach of this provision by the other party, including an action for specific performance without the posting of any
bond.
		
	Confidentiality:	  	Each party agrees to keep confidential any information obtained by it from the other party in connection with its investigations or otherwise in connection with these
transactions and, if such transactions are not consummated, to return to the other party any documents and copies thereof received or obtained by it in connection with the proposed transactions. Further, except as and to the extent required by law,
without the prior written consent of the other party, neither party shall make any public comment, statement or communication with respect to, or otherwise disclose or permit the disclosure of the existence of discussions regarding, a possible
transaction among the parties or any of the terms, conditions or other aspects of the transactions proposed in this LOI. If a party is required by law to make any such disclosure, it must first – at least 72-hours prior to making such
disclosure – provide to the other party the content of the proposed disclosure, the reasons that such disclosure is required by law, and the time and place that the disclosure will be made.
		
	Costs:	  	Except as otherwise set forth herein, each party shall be responsible for and bear all of its own costs and expenses incurred in connection with the preparation and negotiation
of the Definitive Agreement and any ancillary agreements, as well as fees of attorneys, auditors, financial advisors, placement agents, brokerage or finder’s fees and other fees and expenses; provided, however, that AFH shall advance the costs
and expenses and be reimbursed up to $100,000by SPV from the initial proceeds paid, loaned, invested in or otherwise received by it following the date of this LOI.
		
	Termination:	  	After the execution of this LOI by the parties, this LOI may be terminated upon: (i) the mutual written agreement of AFH and the Company, (ii) upon written election of any party
if that party or its counsel identifies any information, item or other matter in the course of its due diligence investigation of the other party that it deems unsatisfactory, provided that the other party shall be entitled to cure any such item or
other matter if such item or other matter is capable of being cured within 30 days after written notice of such item or other matter from the terminating party, and (iii) upon written election of any party hereto, if the Conditions to Closing are
not satisfied in their entirety or if the Definitive Agreement is not executed by all parties hereto on or before July 31, 2010.

 

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	 Binding

Provisions:
	  	Except for the Items relating to (i) Exclusive Dealing; (ii) Confidentiality; (iii) Costs; (iv) Termination; and (v) the Miscellaneous Provisions, the other provisions set forth
in this LOI are not intended to and do not constitute a binding or legally enforceable agreement and are not binding on the parties. The provision set forth in clauses (i)-(v) above shall be binding on the parties and legally
enforceable.
		
	 Miscellaneous

Provisions:
	  	 (1) Governing Law, Dispute Resolution, and Jurisdiction. This LOI shall be governed by and construed in accordance with the
laws of the State of California without giving effect to the conflicts of laws principles thereof. All disputes, controversies or claims arising out of or relating to this LOI shall be brought in the Superior Court located in Los Angeles County,
Central District. The parties hereby irrevocably waive any objection to jurisdiction and venue or any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. The parties
agree to submit to the in personam jurisdiction of such courts and hereby irrevocably waive trial by jury. The prevailing party in any such dispute shall be entitled to recover from the other party its reasonable attorneys’ fees, costs and
expenses.
  
 (2) Counterparts. This LOI may be signed in two or more
counterparts, each of which shall constitute an original, and all of which together shall constitute one and the same agreement. The exchange of copies of this LOI and of signature pages by facsimile transmission or by email transmission in portable
digital format, or similar format, shall constitute effective execution and delivery of such instrument(s) as to the parties and may be used in lieu of the original for all purposes. Signatures of the parties transmitted by facsimile or by email
transmission in portable digital format, or similar format, shall be deemed to be their original signatures.

 If you agree to
the foregoing, please return a signed copy of this LOI to the undersigned no later than April 16, 2010, after which time this LOI will expire if not so accepted.

 

			
	Very truly yours,
	
	AFH HOLDING AND ADVISORY, LLC
		
	By:	 	/s/ Amir Heshmatpour
	Name:	 	Amir Heshmatpour
	Title:	 	Managing Director

  

 6 

 

 

 

 

  

			
	CAREVIEW COMMUNICATIONS, INC.
		
	By:	 	/s/ Sam Greco
	Name:	 	Sam Greco
	Title:	 	CEO

  

			
	By:	 	/s/ Steve Johnson
	Name:	 	Steve Johnson
	Title:	 	President and COO

  

			
	DISCOVERY MEDICAL INVESTMENTS, LLC
		
	By:	 	/s/ Robert Sun
	Name:	 	Robert Sun
	Title:	 	President

  

			
	MANN EQUITY, LLC
		
	By:	 	/s/ Sean Mann
	Name:	 	Sean Mann
	Title:	 	Managing Director

  

 7

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