Document:

sfr-ex45_148.htm

Exhibit 4.5

 

Colony Starwood Homes

2017 Employee Share Purchase Plan

This Colony Starwood Homes 2017 Employee Share Purchase Plan (the “Plan”) is effective April 1, 2017 subject to approval by the Company’s shareholders. The Plan is a new Employee Share Purchase Plan, is intended to qualify as an “Employee Stock Purchase Plan” as set forth in Section 423 of the Code, and shall be interpreted in a manner that is consistent with that intent.

1. Purpose and Structure of the Plan

The purpose of this Plan is to provide eligible employees of the Company and Participating Companies who wish to become shareholders in the Company a convenient method of doing so. It is believed that employee participation in the ownership of the business will be to the mutual benefit of both the employees and the Company.

2. Definitions.

2.1 “Account” means the funds accumulated with respect to an individual employee as a result of deductions from such employee’s paycheck (or otherwise as permitted in certain circumstances under the terms of the Plan) for the purpose of purchasing common shares under this Plan. The funds allocated to an employee’s Account shall remain the property of the employee at all times but may be used by the Company for any corporate purpose to the extent permitted by applicable law and may also be commingled with the general funds of the Company except to the extent such commingling may be prohibited by the laws of any applicable jurisdiction.

2.2 “Affiliate” means an entity, other than a Subsidiary, in which the Company has an equity or other ownership interest of at least Fifty “50” percent ownership both as to vote and value.

2.3 “Administrator” means the Committee or the persons acting within the scope of their authority to administer the Plan pursuant to a delegation of authority from the Committee pursuant to Section 22.

 

2.4 “Board” means the Board of Trustees of the Company.

2.5 “Code” means the Internal Revenue Code of 1986, as amended from time to time.

2.6 “Committee” means the Compensation Committee of the Board. The Committee may delegate its responsibilities as provided in Section 22.

2.7 “Company” means Colony Starwood Homes and any successor thereto, and where required by the context, shall include any Participating Company.

2.8 “Compensation” means an employee’s regular straight-time earnings or base salary, bonuses and commissions (determined before giving effect to any elective salary reduction or deferral agreements) and including vacation, sick time, paid-time-off,  and short term disability pay and 

excluding overtime, severance pay, long term disability payments funded through insurance,  relocation expenses, sign-on bonuses, expense reimbursements, commuting or automobile allowances,  shift differentials, incentive compensation (including without limitation any share plan, share award, share purchase, RSU or similar Plan) and payout of nonqualified deferred compensation from the Company or any Subsidiary. 

2.9 “Corporate Transaction” means a merger, consolidation, acquisition of property or stock, separation, reorganization or other corporate event described in Section 424 of the Code.

2.10 “Effective Date” means April 1, 2017, subject to the Plan obtaining shareholder approval in accordance with Section 30.

2.11 “Employee” means any person who renders services to the Company or a Participating Company as an employee pursuant to an employment relationship with such employer. For purposes of the Plan, the employment relationship shall be treated as continuing intact while the individual is on military leave, sick leave or other leave of absence approved by the Company or a Participating Company that meets the requirements of Treasury Regulation Section 1.421-1(h)(2). Where the period of leave exceeds three (3) months, or such other period of time specified in Treasury Regulation Section 1.421-1(h)(2), and the individual's right to re-employment is not guaranteed by statute or contract, the employment relationship shall be deemed to have terminated on the first day immediately following such three-month period, or such other period specified in Treasury Regulation Section 1.421-1(h)(2). 

2.12 “Eligible Employee” means an Employee who (i) has been employed by the Company or a Participating Company for 6 continuous and consecutive months on the last business day preceding the Offering Date for an Offering Period ; (ii) is customarily employed for at least twenty (20) hours per week; and (iii) is customarily employed for more than five (5) months in any calendar year. 

2.13 “Enrollment Agreement” means an agreement (which may be electronic) between the Company and an Employee, in such form as may be established by the Company from time to time, pursuant to which the Employee elects to participate in this Plan, elects changes with respect to such participation as permitted under the Plan, or elects to stop payroll deductions and withdraw from an Offering Period.

2.14 “ESPP Broker” means a stock brokerage or other entity designated by the Company to establish accounts for shares purchased under the Plan by participants.

2.15 “Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended.  

2.16 “Fair Market Value” means the closing bid price as reported on the New York Stock Exchange (or if the common shares are not then listed on such exchange, such other national securities exchange on which the shares are then listed).

2.17 “Offering Date” as used in this Plan shall be the commencement date of an Offering Period. 

2.18 “Offering Period” means the three (3) month calendar quarter period during which the participant’s share purchase is funded through payroll deduction accumulations.  The first Offering Period shall begin on the Effective Date and continue until the last Trading Date of the calendar quarter containing the Effective Date.  Each subsequent Offering Period following the 

first Offering Period shall begin on the first day of the calendar quarter next following the preceding Purchase Date and continue until the last Trading Date of the calendar quarter in which such purchase began.  

2.19 “Participating Company” means the Company and any Subsidiary or Affiliate that has been designated by the Administrator to participate in the Plan.

2.20 “Plan” means this Colony Starwood Homes 2017. Employee Share Purchase Plan, as set forth herein and as amended from time to time.

2.21 “Purchase Date” means the last Trading Date of each calendar quarter.

2.22  “Purchase Price” is the price  of a common share  of the Company as established pursuant to Section 5 of the Plan.

2.23 “Securities Act” means the Securities Act of 1933, as amended.

2.24 “Subsidiary” means any domestic corporation (other than the Company), that is in an unbroken chain of corporations beginning with Company if, on an Offering Date, each of the corporations other than the last corporation in the unbroken chain owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in the chain, as described in Code Section 424(f).

2.25 “Trading Date” means a day on which the New York Stock Exchange is open for trading.

3. Employees Eligible to Participate. Unless otherwise determined by the Committee in a manner that is consistent with Section 423 of the Code, any individual who is an Eligible Employee as of the first day of the enrollment period designated by the Committee for a particular Offering Period shall be eligible to participate in such Offering Period, subject to the requirements of Section 423 of the Code.

4. Offerings. Subject to shareholder approval at the next regularly scheduled shareholder meeting to be held in May of 2017, and subject to the right of the Company in its sole discretion to sooner terminate the Plan, the first offering will commence April 1, 2017, and the Plan will operate with separate consecutive three-month Offering Periods as defined above.  Unless a termination of or change to the Plan has previously been made by the Company, the final offering under this Plan shall commence on October 1, 2027 and shall terminate on December 31, 2027. In order to become eligible to purchase shares, an Employee must complete and submit an Enrollment Agreement and any other necessary documents pursuant to Section 7. Participation in one offering under the Plan shall neither limit, nor require, participation in any other offering.

5. Price. The Purchase Price per share shall be eighty-five percent (85%) of the Fair Market Value of a common share on the Purchase Date correlating to the Offering Period provided that the Purchase Price per common share will in no event be less than the par value of a common share.  

6. Number of Shares to be Offered. The maximum number of common shares that will be offered under the Plan is One Million (1,000,000) shares, subject to adjustment as permitted under Section 20.1. The shares to be sold to participants under the Plan will be common shares 

of beneficial interest in the Company. No option granted under the Plan shall permit a participant to purchase common shares which, if added together with the total number of common shares purchased by all other participants in such offering would exceed the total number of common shares remaining available under the Plan. Thus, if the total number of common shares for which options are to be granted on any date in accordance with Section 12 exceeds the number of common shares then available under the Plan (after deduction of all shares for which options have been exercised under the Plan or are then outstanding), the Company shall make a pro rata allocation of the shares remaining available in as nearly a uniform manner as it determines is practicable and equitable. In such event, the payroll deductions to be made pursuant to the authorizations therefor shall be reduced accordingly and the Company shall give written notice of the reduction to each Employee affected.

7. Participation.

7.1 An Eligible Employee may become a participant by completing an Enrollment Agreement provided by the Company and submitting it to the Company, or with such other entity designated by the Company for this purpose, in accordance with the enrollment procedures established by the Committee at least 5 days prior to the commencement of the offering to which it relates. The Enrollment Agreement may be completed at any time after the Employee becomes eligible to participate in the Plan, and will be effective as of the Offering Date next following the receipt of a properly completed Enrollment Agreement by the Company (or the Company’s designee for this purpose).  Participation in the Plan is entirely voluntary.  

7.2 Payroll deductions for a participant shall commence on the first payroll date following the Offering Date as described above and shall continue through subsequent offerings pursuant to Section 10 until the participant’s termination of employment, subject to modification by the Employee as provided in Section 8.1, and unless participation is earlier withdrawn or suspended by the Employee as provided in Section 9.

7.3 Payroll deduction shall be the sole means of accumulating funds in a participant’s Account.

 

7.4 The Company may require current participants to complete a new Enrollment Agreement at any time it deems necessary or desirable to facilitate Plan administration or for any other reason.

8. Payroll Deductions.

8.1 Submission of the Enrollment Agreement pursuant to Section 7 shall constitute authorization for deductions to be made from the Employee’s Compensation on each payday during the time he or she is a participant in an offering, at any non-fractional percentage rate from 1% to 80%. A participant may change his or her payroll deduction percentage election, including changing the payroll deduction percentage to zero, effective as of any Offering Date by filing a revised authorization, provided the revised authorization is filed at least 5 days prior to such Offering Date.

8.2 All payroll deductions made for a participant shall be credited to his or her Account under the Plan. A participant may not make any separate cash payment into his or her Account nor may payment for shares be made other than by payroll deduction.

8.3 A participant may withdraw from or suspend his or her participation in the Plan as provided in Section 9, but no other change can be made during an offering with respect to that offering. A participant may also make a prospective election, by changing his or her payroll deduction percentage to zero as set forth in Section 8.1, to cease participation in the Plan effective as of the next Offering Date. Other changes permitted under the Plan may only be made with respect to an offering that has not yet commenced.

9. Withdrawal and Suspension.

9.1 An Employee may withdraw from an offering, in whole but not in part, at any time prior to the first day of the last calendar month of such offering by submitting a withdrawal notice to the Company, in which event the Company will refund the entire balance of his or her Account as soon as practicable thereafter and terminate the participant’s option.  

9.2 An Employee may, at any time prior to the first day of the last calendar month of an offering, reduce to zero the percentage by which he or she has elected to have his or her Compensation reduced, thereby suspending participation in the Plan. The reduction will be effective as soon as administratively feasible after receipt of the participant’s election. Shares shall be purchased in accordance with Section 13 based on the amounts accumulated in the participant’s Account prior to the suspension of payroll deductions.

9.3 If an Employee withdraws or suspends his or her participation pursuant to Sections 9.1 or 9.2, he or she shall not participate in a subsequent offering unless and until he or she re-enters the Plan. To re-enter the Plan, an Employee who has previously withdrawn or suspended participation by reducing payroll deductions to zero must file a new Enrollment Agreement in accordance with Section 7.1. The Employee’s re-entry into the Plan will not become effective before the beginning of the next offering following his or her withdrawal or suspension.

10. Automatic Re-Enrollment. At the termination of each offering each participating Employee who continues to be eligible to participate pursuant to Section 3 shall be automatically re-enrolled in the next offering, unless the Employee has advised the Company otherwise by (i) submitting a new Enrollment Agreement in accordance with Section 7.1, (ii) withdrawing or suspending participation in the Plan in accordance with Section 9, or (iii) terminating employment or otherwise becoming ineligible to participate in the Plan. Upon termination of the Plan, any balance in each Employee’s Account shall be refunded to him.

11. Interest. No interest will be paid or allowed on any money in the Accounts of participating Employees, except to the extent payment of interest is required by the laws of any applicable jurisdiction.

12. Granting of Option. On each Offering Date, this Plan shall be deemed to have granted to the participant an option for as many common shares as he or she will be able to purchase with the amounts credited to his or her Account during his or her participation in that offering. Notwithstanding the foregoing, no participant may exercise such option as would permit his or her rights to purchase common shares under all employee stock purchase plans (described in Section 423 of the Code) of the Company and its Subsidiaries to accrue at a rate that exceeds $25,000 of the Fair Market Value of such common shares (determined at the time the option is granted) for each calendar year in which such option is outstanding at any time.  

 

13. Exercise of Option. Each Employee who continues to be a participant in an offering on the last Trading Date of that offering shall be deemed to have exercised his or her option on that date and shall be deemed to have purchased from the Company the number of whole common shares reserved for the purpose of the Plan as the balance of his or her Account on such date will pay for at the Purchase Price. No fractional shares may be purchased.  If any accumulated deductions remain in a participant’s Account after the purchase of whole common shares, then such remaining amount shall be held in the participant’s Account and used to purchase common shares at the Purchase Price on the next succeeding Purchase Date, subject to earlier withdrawal by the participant in accordance with Section 8 or termination of employment in accordance with Section 17.

14. Employee’s Rights as a Shareholder. No participating Employee shall have any right as a shareholder with respect to any shares until the shares have been purchased in accordance with Section 13 above and the shares have been issued by the Company.

15. Evidence of Share Ownership.

15.1 Following the end of each offering, the number of common shares purchased by each participant shall be deposited into an account established in the participant’s name at the ESPP Broker. The Committee may permit or require that the shares be deposited directly into such account and may require that the shares be retained with such ESPP Broker for a specified period of time.

15.2 A participant shall be free to undertake a disposition (as that term is defined in Section 424(c) of the Code) of the shares in his or her ESPP Broker account at any time, whether by sale, exchange, gift, or other transfer of legal title, but in the absence of such a disposition of the shares, the shares must remain in the participant’s ESPP Broker account.

15.3 Each participant shall give the Company prompt written notice of any disposition or other transfer of shares pursuant to the exercise of an option acquired under the Plan, if such disposition or transfer is made within two years after the Offering Date or within one year after the Purchase Date.

16. Rights Not Transferable. No Employee shall be permitted to sell, assign, transfer, pledge, or otherwise dispose of or encumber either the payroll deductions credited to his or her Account or an option or any rights with regard to the exercise of an option or rights to receive shares under the Plan other than by will, the laws of descent and distribution or to a beneficiary as provided in Section 18, and such right and interest shall not be liable for, or subject to, the debts, contracts, or liabilities of the employee. Any attempt to assign, transfer, pledge or otherwise dispose of such rights or amounts shall be without effect.  During the Employee’s lifetime, only the Employee can make decisions regarding the participation in or withdrawal from an offering under the Plan.

17. Termination of Employment. Upon termination of employment for any reason whatsoever, including but not limited to death or retirement, or a change in the participant’s employment status following which the participant is no longer an Eligible Employee, the participant will be deemed to have withdrawn from the Plan and the balance in the Account of a participating Employee shall be paid to the Employee, or in the case of the participant’s death, to the beneficiary elected in accordance with Section 18. Whether and when employment is deemed 

terminated for purposes of this Plan shall be determined by the Administrator in its sole discretion and may be determined without regard to statutory notice periods or other periods following termination of active employment.  

18. Designation of Beneficiary. A participant may file, on forms supplied by the Committee, either in written or electronic form, a designation of beneficiary of who is to receive any shares of common stock from the participant’s account established with the ESPP Broker in the event of such participant's death. In addition, a participant may file, either in written or electronic form as permitted by the Committee, a written designation of beneficiary who is to receive any cash withheld through payroll deductions and credited to the participant's account in the event of the participant's death prior to the Purchase Date of an Offering Period.

 

19. Amendment or Discontinuance of the Plan. The Committee and the Board shall have the right at any time and without notice to amend, modify or terminate the Plan; provided that no such amendment of the Plan shall, except as provided in Section 20.1, increase the total number or total value of shares to be offered under the Plan above the limit specified in Section 6 unless shareholder approval is obtained therefor.  If any Offering Period is terminated before its scheduled expiration, all amounts that have not been used to purchase common shares will be returned to participants (without interest, except as otherwise required by law) as soon as administratively practicable.

20. Changes in Capitalization, Dissolution or Liquidation, or Corporate Transactions. 

20.1 In the event that any dividend or other distribution (whether in the form of cash, common shares, or other property), recapitalization, share split, reverse share split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of common shares or other securities of the Company, or other change in the Company's structure affecting the common shares occurs, then in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan, the Committee will, in such manner as it deems equitable, adjust the number of shares and class of common shares that may be delivered under the Plan, the Purchase Price per share and the number of common shares covered by each outstanding option under the Plan, and the numerical limits of Section 6.

20.2 Unless otherwise determined by the Committee, in the event of a proposed dissolution or liquidation of the Company, any Offering Period then in progress will be shortened by setting a new Purchase Date and the Offering Period will end immediately prior to the proposed dissolution or liquidation. The new Purchase Date will be before the date of the Company's proposed dissolution or liquidation. Before the new Purchase Date, the Committee will provide each participant with written notice, which may be electronic, of the new Purchase Date and that the participant's option will be exercised automatically on such date, unless before such time, the participant has withdrawn from the Offering in accordance with Section 9.

20.3 In the event of a Corporate Transaction, each outstanding option will be assumed or an equivalent option substituted by the successor corporation or a parent or Subsidiary of such successor corporation. If the successor corporation refuses to assume or substitute the option, the Offering Period with respect to which the option relates will be shortened by setting a new Purchase Date on which the Offering Period will end. The new Purchase Date will occur before the date of the Corporate Transaction. Prior to the new Purchase Date, the Committee will 

provide each participant with written notice, which may be electronic, of the new Purchase Date and that the participant's option will be exercised automatically on such date, unless before such time, the participant has withdrawn from the Offering in accordance with Section 9.

21. Share Ownership. Notwithstanding anything in the Plan to the contrary, no Eligible Employee shall be granted an option under the Plan if immediately after the grant of the option, such Eligible Employee (or any other person whose shares would be attributed to such Eligible Employee pursuant to Section 424(d) of the Code) would own capital shares of the Company or hold outstanding options to purchase shares possessing 5% or more of the total combined voting power or value of all classes of shares of the Company or any Subsidiary.

22. Administration and Board Authority. 

 

22.1 The Plan shall be administered by the Board. The Board has delegated its full authority under the Plan to the Committee, and the Committee may further delegate any or all of its authority under this Plan to such senior officer(s) of the Company as it may designate. Notwithstanding any such delegation of authority, the Board may itself take any action under the Plan in its discretion at any time, and any reference in this Plan document to the rights and obligations of the Committee shall be construed to apply equally to the Board. Any references to the Board mean only the Board. The authority that may be delegated by the Committee includes, without limitation, the authority to (i) interpret the terms of this Plan; (ii) designate from time to time which Subsidiaries will be Participating Companies; (iii) determine procedures for Eligible Employees to enroll in or withdraw from the Plan, including setting or changing payroll deduction percentages and obtaining necessary tax withholdings; (iv) allocate the available shares under the Plan for particular offerings; and (v) adopt amendments to the Plan, without limitation, including amendments to increase the shares available for issuance under the Plan pursuant to Section 20.1 (but not including increases in the available shares above the maximum Fair Market Value permitted by Sections 6 and 20.1 which shall require Board and shareholder approval). All expenses of administering the Plan shall be borne by the Company.

22.2 The Administrator shall be vested with full authority and discretion to construe the terms of the Plan and make factual determinations under the Plan, and to make, administer, and interpret such rules and regulations as it deems necessary to administer the Plan, and any determination, decision, or action of the Administrator in connection with the construction, interpretation, administration, or application of the Plan shall be final, conclusive, and binding upon all participants and any and all persons claiming under or through any participant. The Administrator may retain outside entities and professionals to assist in the administration of the Plan including, without limitation, a vendor or vendors to perform enrollment and brokerage services. The authority of the Administrator will specifically include, without limitation, the power to make any changes to the Plan with respect to the participation of employees of any Subsidiary when the Administrator deems such changes to be necessary or appropriate to achieve a desired tax treatment or to comply with the laws applicable to such Subsidiaries. Those changes may include, without limitation, the exclusion of particular Subsidiaries from participation in the Plan; modifications to eligibility criteria, maximum number or value of shares that may be purchased in a given period, or other requirements set forth herein; and procedural or administrative modifications. Any modification relating to offerings to a particular 

Participating Company will apply only to that Participating Company, and will apply equally to all similarly situated employees of that Participating Company. 

23. Statements. Participants will be provided with statements at least annually which shall set forth the contributions made by the participant to the Plan, the Purchase Price of any common shares purchased with accumulated funds, the number of common shares purchased, and any payroll deduction amounts remaining in the participant's Account.

24. Notices. All notices or other communications by a participant to the Company or other entity designated for a particular purpose under or in connection with the Plan shall be deemed to have been duly given when received by the Company or other designated entity, or when received in the form specified by the Company at the location, or by the person, designated by the Company for the receipt thereof. 

25. Termination of the Plan. This Plan will terminate at the earliest of the following: 

(a) May 31, 2017, should the shareholders of the Company not approve this Plan;

(b) December 31, 2027;

(c) The date of the filing of a Notice of Termination by the Company or the effective date of a merger, conversion or consolidation wherein the Company is not to be the surviving corporation, which merger or consolidation is not between or among corporations related to the Company. Prior to the occurrence of any of such events, on such date as the Company may determine, the Company may permit a participating employee to exercise the option to purchase shares for as many shares as the balance of his or her Account will allow at the price set forth in accordance with Section 5. If the employee elects to purchase shares, any remaining balance of the employee’s Account will be refunded to the employee after that purchase;

(d) The date the Board acts to terminate the Plan in accordance with Section 19; and

(e) The date when all shares reserved under the Plan have been purchased.

26. Governmental Regulation/Compliance with Applicable Law/Separate Offering. The Company’s obligation to sell and deliver common shares of the Company under this Plan is subject to the approval of any governmental authority required in connection with the authorization, issuance, or sale of such shares. In addition, the terms of an offering under this Plan, or the rights of an Employee under an offering, may be modified to the extent required by applicable law. Common shares shall not be issued with respect to an option granted under the Plan unless the exercise of such option and the issuance and delivery of the shares pursuant thereto shall comply with all applicable provisions of law, including, without limitation, the Securities Act, the Exchange Act, and the requirements of any stock exchange upon which the shares may then be listed. 

 

27. No Employment/Service Rights. Nothing in the Plan shall confer upon any Employee the right to continue in employment for any period of specific duration, nor interfere with or otherwise restrict in any way the rights of the Company (or any Subsidiary employing such person), or of any Employee, which rights are hereby expressly reserved by each, to terminate such person’s employment at any time for any reason, with or without cause.

28. Equal Rights and Privileges. Notwithstanding any provision of the Plan to the contrary and in accordance with Section 423 of the Code, all Eligible Employees who are granted options under the Plan shall have the same rights and privileges.

29. Successors and Assigns. The Plan shall be binding on the Company and its successors and assigns.

30. Shareholder Approval. The Plan shall be subject to approval by the shareholders of the Company within twelve (12) months before or after the date the Plan is adopted by the Board.

31. Section 423. The Plan is intended to qualify as an "employee stock purchase plan" under Section 423 of the Code. Any provision of the Plan that is inconsistent with Section 423 of the Code shall be reformed to comply with Section 423 of the Code. 

32. Dates and Times. All references in the Plan to a date or time are intended to refer to dates and times determined pursuant to U.S. Mountain Time. Business days for purposes of the Plan are U.S. business days.

33. Masculine and Feminine, Singular and Plural. Whenever used in the Plan, a pronoun shall include the opposite gender and the singular shall include the plural, and the plural shall include the singular, whenever the context shall plainly so require.

34. Governing Law. The Plan shall be governed by the laws of the State of Arizona without regard to Arizona laws that might cause other law to govern under applicable principles of conflicts of law.

35. Severability. If any provision of the Plan shall for any reason be held to be invalid or unenforceable, such invalidity or unenforceability shall not affect any other provision hereof, and the Plan shall be construed as if such invalid or unenforceable provision were omitted.

36. Headings. The headings of Sections herein are included solely for convenience and shall not affect the meaning of any of the provisions of the Plan.

37.  Interpretation.   The Company is a Maryland real estate investment trust taxable as a C-Corporation and for all Code purposes is treated as a Corporation. To more accurately reflect the ownership structure of the Company, ownership interest in the Company purchased under this Plan are referred to as a common share or a share, rather than as common stock or stock. Nonetheless, references to ‘stock’ have been utilized in sections of this Plan document where the term ‘stock’ is unique to a name or is a direct reference to a Code provision.CareView Communications, Inc. 8-K

Exhibit 10.1

EMPLOYMENT AGREEMENT

BY AND BETWEEN

CAREVIEW COMMUNICATIONS, INC.

AND

JON FREEMAN

THIS EMPLOYMENT
AGREEMENT (this “Agreement”) is made and entered into as of May 5, 2017 and effective as of June 12, 2017 (the
“Effective Date”) by and between CAREVIEW COMMUNICATIONS, INC., a Nevada corporation (“CareView”),
and JONATHAN FREEMAN (“Employee”).

WHEREAS, CareView
and Employee desire to enter into this Agreement to assure CareView of the services of Employee and to set forth the respective
rights and duties of the parties hereto;

WHEREAS, CareView
is principally engaged in the business (the “Business”) of providing a high speed data network system that can be deployed
throughout a healthcare facility utilizing the cable television infrastructure and the Company’s control server to provide
bedside, point-of-care video monitoring and recording as well as a patient entertainment and education system, such activities,
present and future; and

NOW, THEREFORE,
in consideration of the premises and the mutual covenants, terms and conditions set forth herein, and other good and valuable consideration
the receipt and sufficiency of which are hereby acknowledged by the parties, CareView and Employee agree as follows:

ARTICLE I

Employment

1.1       

Employment and
Title. CareView hereby employs Employee, and Employee hereby accepts such employment as Chief Financial Officer (the “Employment
Position”), all upon the terms and conditions set forth herein.

1.2       

Services.
During the Employment Term (as hereinafter defined), Employee agrees to perform diligently and in good faith the duties of the
Employment Position under the direction of the Board of Directors (the “Board”) and the President of CareView. Employee
agrees to perform the services to be performed hereunder for the benefit of CareView. Employee shall be vested with such authority
as is generally commensurate with the Employment Position, as further outlined below. Employee will report to the President and
the Board. Employee shall give his full attention to his duties for no less than forty (40) hours per week; however, nothing in
this Agreement shall be construed to preclude Employee from pursuing outside interests so long as they are not and do not compete
or conflict with his duties to the Company or the Business of the Company.

 

    	  

    	 

    

 

1.3       

Location.
The principal place of employment and the location of Employee’s principal office shall be in or in close proximity to Lewisville,
Texas; provided however, Employee agrees to engage in reasonable travel in the performance of his duties under this Agreement.

1.4       

Representations.  

(a)       

Employee represents
and warrants to CareView that he has full power and authority to enter into and perform this Agreement and that his execution and
performance of this Agreement shall not constitute a default or breach by him under the terms of any other agreement to which he
is a party or by which he is bound. Employee represents that no consent or approval of any third party is required for his execution,
delivery and performance of this Agreement or that all consents or approvals of any third party required for such execution, delivery
and performance of this Agreement have been obtained. Employee further represents that his employment hereunder will not involve
the use of information or materials that belong to a former employer, person, or entity, and for which he has a duty of confidentiality.

(b)       

CareView represents
and warrants to Employee that it has full power and authority to enter into and perform this Agreement and that CareView’s
execution and performance of this Agreement shall not constitute a default or breach by CareView under the terms of any other agreement
to which it is a party or by which it is bound. CareView represents that no consent or approval of any third party is required
for CareView’s execution, delivery and performance of this Agreement or that all consents or approvals of any third party
required for such execution, delivery and performance of this Agreement have been obtained.

ARTICLE II

Employment Term

The term of Employee’s
employment hereunder (the “Employment Term”) shall commence as of the Effective Date hereof and shall continue for
an initial term of one (1) year from the Effective Date (the “Initial Term”), unless earlier terminated pursuant
to the provisions of this Agreement.

ARTICLE III

Compensation

3.1       

Base Salary.

A.       

As compensation
for the services to be rendered by Employee during the Employment Term, CareView shall pay Employee an annual base salary (as in
effect from time to time, “Base Salary”) of not less than $180,000. The Base Salary shall accrue monthly (prorated
for periods less than a month) and shall be paid in accordance with CareView’s standard payroll practices.

B.       

The Employee’s
Base Salary shall be reviewed annually for an upward adjustment (but never for a downward adjustment), or may be reviewed more
frequently as recommended by the President and approved by the Board of Directors.

    	2 

    	 

    

 

C.       

Employee will
be issued Non-Qualified Stock Option (the “Stock Option”) for 500,000 shares of common stock priced as of the Effective
Date. The Stock Option will be pursuant to the terms and conditions of the 2016 Stock Option Plan and subject to Board Approval.

3.2       

Bonus Compensation.
As of the end of each of CareView’s fiscal year ends during the Employment Term, Employee will be entitled to receive such
additional bonus or other compensation, if any, as may be approved by the Board of Directors or a Compensation Committee comprised
of members appointed by the Company’s Board of Directors.

3.3       

Benefits.
During the Employment Term, Employee shall be entitled to the same fringe benefits as are from time to time made available to CareView’s
most senior executive officers, such as (i) medical, hospital, dental, life, disability, and other insurance coverage, (ii) participation
in incentive, bonus, stock option, equity ownership, pension, profit sharing, and other benefit plans, and (iii) normal vacation
allowance and other paid time off for all employees who are executive officers of CareView.

3.4       

Paid Time Off.
During the Employment Term, Employee will be entitled to no less than 20 days paid time off (PTO) annually during each calendar
year.

3.5       

Withholding.
Any and all amounts payable under this Agreement, including amounts payable under this Article III and Article VIII,
are subject to withholding for such federal, state and local taxes required pursuant to any applicable law, rule or regulation.

ARTICLE IV

Working Facilities, Expense and Insurance

4.1       

Working Facilities.
Employee shall be furnished with an office at the location set forth in Section 1.3 hereof, or at such other location
as agreed to by he and CareView, and CareView will provide Employee with secretarial and other assistance suitable to the Employment
Position and reasonably required for the performance of Employee’s duties hereunder.

4.2       

Reimbursement
for Expenses. CareView shall reimburse Employee, in accordance with CareView’s policies and practices for senior
management, for all reasonable expenses actually incurred by him while employed by CareView and in the performance of his duties
under and in accordance with the terms and conditions of this Agreement, subject to Employee furnishing to CareView an itemized
account, reasonably satisfactory to CareView, in substantiation of such expenditures, along with appropriate documentation thereof
including receipts for all such expenses in the manner required pursuant to CareView’s policies and procedures and the Internal
Revenue Code of 1996, as amended (the “Code”), and applicable regulations in effect from time to time.

 

    	3 

    	 

    

 

ARTICLE V

Covenants and Restrictions

During the Employment
Term and for a period of one (1) year following the date of termination of employment hereunder, Employee covenants and agrees
to be bound by the following provisions of this Article V, except in carrying out his duties hereunder.

5.1       

Non-Competition.
Without the express written consent of the Board of Directors, Employee shall not directly or indirectly, own any interest in,
participate or engage in, assist, render any services (including advisory services) to, become associated with, work for, serve
(in any capacity whatsoever, including, without limitation, as an employee, consultant, advisor, agent, independent contractor,
officer or director) or otherwise become in any way or manner connected with the ownership, management, operation, or control of,
any business, firm, corporation, partnership or other entity (collectively referred to herein as a “Person”) that engages
in, or assists others in engaging in or conducting any business, which deals, directly or indirectly, in products or services similar
to or competitive with the Company’s product line or services in the United States; provided, however, the above shall not
be deemed to exclude Employee from acting as director of another corporation with the consent of the Company’s Board of Directors;
provided further, however, that the above shall not be deemed to prohibit Employee from owning or acquiring securities issued by
any corporation whose securities are listed with a national securities exchange or are traded in the over-the-counter market, provided
that Employee at no time owns, directly or indirectly, beneficially or otherwise, five percent (5%) or more of any class of any
such corporation’s outstanding capital stock.

5.2       

Non-Solicitation.
Employee shall not knowingly provide, or solicit to provide to any Person or individual (i) any goods or services which are
competitive with those provided by the Company or which would be competitive with the goods or services that the Company has planned
to provide; or (ii) any goods or services to any customer of the Company. The term “customer” shall mean any person
or individual to whom the Company has provided goods or services within the twenty-four (24) month period prior to the termination
of Employee’s employment hereunder. Notwithstanding anything herein to the contrary, no limitation shall be imposed on Employee
hereunder with respect to any goods and services that the Company planned to provide and which were not actually being provided
at the time of the termination of Employee hereunder.

5.3       

Confidentiality.
During the Employment Term or thereafter as specified herein, Employee agrees that he shall not divulge to others, nor shall he
use to the detriment of the Company or in any business or process of manufacture competitive with or similar to any business or
process of manufacture engaged in by the Company, or any subsidiary or affiliated company, any Confidential Information (as defined
below in Section 7.2) obtained by him during the course of his employment with the Company relating to sales, salesmen,
sales volume or strategy, customers, formulas, processes, methods, machines, manufactures, compositions, ideas, improvements or
inventions belonging to or relating to the business of the Company, or its subsidiary or affiliated company.

    	4 

    	 

    

 

5.4       

Personnel.
Employee shall neither solicit, nor seek to solicit any of the Company’s personnel in any capacity whatsoever, nor shall
he induce or attempt to induce any of the Company’s personnel to leave the employ of the Company in order to work for Employee
or otherwise.

5.5       

Damages.
Employee acknowledges that his breach of any of the restrictive covenants contained in this Article V may cause irreparable
damage to the Company for which remedies at law would be inadequate. Accordingly, if Employee breaches or threatens to breach any
of the provisions of this Article V, the Company shall be entitled to appropriate injunctive relief, including, without
limitation, preliminary and permanent injunctions in any court of competent jurisdiction, restraining Employee from taking any
action prohibited hereby. This remedy shall be in addition to all other remedies available to the Company at law or equity. If
any portion of this Article V is adjudicated to be invalid or unenforceable, this Article V shall be deemed
amended to delete therefrom the portion so adjudicated, with such deletion to apply only with respect to the operation of this
Article V in the jurisdiction in which such adjudication is made.

ARTICLE VI

Illness or Incapacity

6.1       

Right to Terminate.
Except as provided by this Article VI and notwithstanding anything else to the contrary contained in this Agreement, CareView
shall have no right to terminate Employee during any Employment Term that Employee suffers illness or incapacity. CareView shall
have the right to terminate Employee hereunder by delivery of thirty (30) days written notice of termination if Employee is
unable to perform, with reasonable accommodation in all material respects, the Employee’s duties hereunder for a period exceeding
six (6) consecutive months due to illness or incapacity. A termination of employment under this Article VI will be
deemed a termination “Death and/or Disability” as described in Section 8.2 hereof.

6.2       

Right to Temporarily
Replace. If Employee’s illness or incapacity, whether by physical or mental cause, renders him unable for
a minimum period of thirty (30) consecutive calendar days to carry out his duties and responsibilities as set forth herein,
CareView shall have the right to designate a person to temporarily perform Employee’s duties; provided however, that if Employee
returns to work from such illness or incapacity within the six (6) month period following the commencement of his inability due
to such illness or incapacity, Employee shall be reinstated in the capacity described in Article I hereof with all
rights, duties and privileges attendant thereto.

6.3       

Rights Prior
to Termination. Employee shall be entitled to receive his full Base Salary under Section 3.1 hereof,
and all other benefits under Article III hereof, during such illness or incapacity unless and until expiration or termination
of Employee hereunder.

6.4       

Determination
of Illness or Incapacity. For purposes of this Article VI, the term “illness or incapacity” shall mean
Employee’s inability to perform Employee’s duties hereunder, substantially on a full-time basis because of physical
or mental illness or physical injury as determined by the Company’s Board of Directors, in its reasonable discretion and
based upon competent medical evidence. Upon CareView’s written request, Employee shall submit to reasonable medical and other
examinations to provide the evidence required hereunder.

    	5 

    	 

    

 

ARTICLE VII

Trade Secrets

7.1       

Confidentiality.
Employee will hold Confidential Information (as hereinafter defined) in confidence and trust and limit disclosure of Confidential
Information strictly to persons who have a need to know such Confidential Information in connection with the Business and who have
agreed in writing with CareView to maintain the confidentiality of such Confidential Information. Employee will not disclose, use,
or permit the use or disclosure of Confidential Information, except in satisfying Employee’s obligations under this Agreement.
Employee will use reasonable care to protect Confidential Information from inappropriate disclosure, whether inadvertent or intentional.
Notwithstanding the foregoing, Employee may disclose Confidential Information if such disclosure is required by a court order or
an order of a similar judicial or administrative body; provided, however, that Employee immediately notifies CareView of such requirement
in writing and cooperates reasonably with CareView in obtaining a protective or similar order with respect thereto.

7.2       

Confidential
Information. For the purposes of this Agreement, the phrase “Confidential Information” means information or
materials that in CareView’s reasonable determination provide advantage to CareView over others not having such information
or materials and includes (i) customer information, supplier information, sales channel and distributor information, material
terms of any contracts, marketing philosophies, strategies, techniques and objectives (including product and service roll-out dates
and volume estimates), legal and regulatory positions and strategies, advertising and promotional copy, competitive advantages
and disadvantages, non-published financial data, product or service plans, designs, costs, prices and names, inventions, discoveries,
improvements, technological developments, know-how, software code, business opportunities (including planned or proposed financings,
mergers, acquisitions, ventures and partnerships) and methodologies and processes (including the look and feel of computer screens
and reports) relating to the Business; (ii) information designated in writing or conspicuously marked as “confidential”
or “proprietary” or likewise designated or marked with words of similar import; (iii) information for which CareView
has an obligation of confidentiality so long as such obligation is known to Employee; and (iv) information of a nature that
a reasonable person would conclude that it is confidential or proprietary. Notwithstanding the foregoing, information will not
be deemed Confidential Information if such information: (i) prior to receipt from CareView, is or was known to Employee directly
or indirectly from a source other than one having an obligation of confidentiality to CareView; (ii) becomes known (independently
of disclosure by CareView) to Employee directly or indirectly from a source other than one having an obligation of confidentiality
to CareView; (iii) becomes publicly known or otherwise ceases to be secret or confidential, except through a breach of this
Agreement by Employee; or (iv) is independently developed by Employee. Employee may disclose Confidential Information pursuant
to the requirements of a governmental agency or by operation of law, if he provides CareView reasonable prior written notice sufficient
to permit CareView to contest such disclosure.

    	6 

    	 

    

 

7.3       

Notification
of Third Party Disclosure Requests. If Employee receives any written or oral third party request, order, instruction or
solicitation for the disclosure of Confidential Information not in conformance with this Agreement, or if Employee becomes aware
of any attempt by a third party to improperly gain Confidential Information, Employee shall immediately notify the Company’s
Board of Directors of such request, order, instruction or solicitation or of such attempt and fully disclose the details surrounding
such request, order, instruction or solicitation or such attempt.

7.4       

Non-Removal of
Records. All documents, files, records, data, papers, materials, notes, books, correspondence, drawings and other
written, graphic or electronic records of the Business and all computer software of CareView which Employee shall prepare or use,
or come into contact with, shall be and remain the exclusive property of CareView and shall not be physically, electronically,
telephonically or otherwise removed from CareView’s premises without CareView’s prior written consent.

7.5       

Return or Destruction
of Confidential Information. Confidential Information gained, received or developed by Employee or in which Employee
participated in developing, will remain the exclusive property of CareView. Employee will promptly return to CareView or destroy
or erase all records, books, documents or any other materials whatsoever (including all copies thereof) containing such Confidential
Information in his possession or control upon the earlier of (i) the receipt of a written request from CareView for return
or destruction of Confidential Information or (ii) the termination of Employee hereunder.

7.6       

Trade Secrets
of Others. During the Employment Term, Employee will not use any information or materials belonging to any former employer
or any other person or entity and for which Employee has a duty of confidentiality, or use or allow the use of any illegally obtained
confidential or secret information or materials.

ARTICLE VIII

Termination

8.1       

Termination.
Either party hereto may terminate this Agreement at any time on ninety (90) days prior written notice. This Agreement may be immediately
terminated by the Employer for “cause” at any time upon notice to the Employee. This Agreement may be terminated immediately
by the Employee for “good reason” at any time, upon notice to the Employer. If the Employer terminates this Agreement
for “cause” or if the Employee terminates this Agreement other than for “good reason,” the Employee shall
not be entitled to receive any compensation hereunder relating to any period subsequent to the effective date of such termination.
If the Employer terminates this Agreement without “cause” or if the Employee terminates this employment for “good
cause,” the Employee shall be entitled to, for a period (the “Severance Period”) beginning on the date of termination
and ending twelve (12) months from Effective Date the following:

a.       

The payment of the Base Salary, at
the rate in effect immediately prior to the date of termination, payable for the entire Severance Period;

b.       

Immediate vesting of all granted
yet unvested stock options to Employee including an extended time to exercise said options beginning on the date of termination
and to be reviewed annually by the Compensation Committee for an annual extension at the sole discretion of the Compensation Committee
not to extend the option beyond its original life; and

    	7 

    	 

    

 

c.       

Continue to participate during the
Severance Period in all benefit plans contemplated by Section 3.3 hereof, and the Employer shall continue to make contributions
to such benefit plans on the Employee’s behalf during the Severance Period; and

d.       

Continue to receive during the Severance
Period all other benefits to which the Employee is entitled hereunder, including, without limitation, those contemplated by Section
3.3 hereof; provided, however, that as provided under clauses ii and iii above is barred (by the terms of the applicable plans
or pursuant to applicable law), the Employer shall arrange to provide the Employee with benefits (including, without limitation,
at the Board of Directors discretion, cash compensation if appropriate and necessary) substantially similar to those which the
Employee would otherwise have been entitled to receive under such plans from which his continued participation is barred.

8.2        

Disability: Death.
In the event the Employee shall, because of illness or incapacity, physical or mental, be unable to perform substantially all of
his duties hereunder for a period of six consecutive months or for a total of nine months during any eighteen (18) month period,
the Employer may, in its sole discretion, at any time thereafter while such disability continues, terminate this Agreement by notice
thereof to the Employee specifying the termination date. In the event the Employee shall die during the period of his employment,
his employment hereunder shall immediately terminate without further act. Upon termination in accordance with this Section 8.2,
the Employer shall pay to the Employee or his estate, as applicable, all compensation provided for hereunder with respect to the
period ending on the termination date and a lump sum equal to the Employee’s Base Salary (in effect at the date of termination)
for six (6) months. In addition, the Employee or his estate, as applicable, will continue to be entitled to the benefits of any
life insurance (in the event of his death) or disability insurance (in the event of his disability) pursuant to Section 6.1 hereof.

8.3 

Change of Ownership/Control.
In the event of a change of ownership/control (40% or more), the Employee or Employer may terminate this Agreement for “good
reason” and provide a lump sum payment of an amount equal one (1) year, all options granted and not vested will immediately
vest, plus all vested benefits. Further, Employee will be entitled to all benefits that are provided under law as well as the Employers
plan (COBRA, continuing life insurance, etc.).

8.4       

Definitions.
The term “cause” as used in this Agreement in relation to termination of this Agreement or the Employee’s employment
hereunder shall mean:

a.       

The willful and continued failure
of Employee to perform substantially his duties with the Employer (other than any such failure resulting from the Employee’s
incapacity due to physical or mental illness) or

b.       

The willful engaging by the Employee
in illegal conduct which is materially and demonstrably injurious to the Employer.

c.       

For purposes of this Section 8.3,
no action or failure to act, on the Employee’s part shall be considered “willful” unless done, or omitted to
be done, by him in bad faith or without reasonable belief that his actions or omissions were in, or not opposed to, the best interests
of the Employer. Actions taken by the Employee based upon the authority given to the Employee by the Board of Directors of based
upon the advice of counsel shall be presumed to be done, or omitted to be done, in good faith and in the best interests of the
Employer.

    	8 

    	 

    

 

The term “good reason” as
used in this Agreement in relations to termination of this Agreement or the Employee’s employment hereunder shall mean:

i.       

An adverse change in the Employee’s
status or title, or

ii.       

A permanent or temporary assignment
(of thirty (30) days in duration) without the Employee’s consent, to an office located more than 35 miles from the Corporate
Office.

iii.       

A material change in ownership and
control of the company.

iv.       

A change in reporting relationship

v.       

A reduction in Base Salary

 

ARTICLE IX

Miscellaneous

9.1       

No Waivers.
The failure of either party to enforce any provision of this Agreement shall not be construed as a waiver of any such provision,
nor prevent such party thereafter from enforcing such provision or any other provision of this Agreement.

9.2       

Notices.
Any notice required or permitted to be given to under the terms of this Agreement may be delivered in person, by courier or Federal
Express, United Parcel Service, Airborne Express, US Express Mail or other similar nationally recognized overnight delivery service
that obtains a confirmation of delivery, or by registered or certified mail, postage prepaid, return receipt requested, or by fax
or e-mail transmission if delivery is promptly confirmed, and shall be addressed as follows:

	If
    to CareView:	 	CareView
                                         Communications, Inc.

        405
        State Highway 121 Bypass

        Suite
        B-240

        Lewisville,
        TX 75067

        Attn:
        CEO

	 	 	 
	If
    to Employee:	 	Jon
                                         Freeman

        jon@freeman99.com

        612.203.0364

Either party may hereafter notify the other
in writing of any change in address. Any notice shall be deemed duly given: (i) when personally delivered, (ii) when
delivered by courier or overnight delivery service, (iii) on the third day after it is mailed by registered or certified mail,
postage prepaid, return receipt requested as provided herein, or (iv) when proper transmission is confirmed if transmitted
by fax or e-mail.

    	9 

    	 

    

 

9.3       

Severability.
The provisions of this Agreement are severable. If any provision of this Agreement shall be held to be invalid or otherwise unenforceable,
in whole or in part, the remainder of the provisions or enforceable parts hereof, shall not be affected thereby.

9.4       

Successors and
Assigns. The rights and obligations of CareView under this Agreement shall inure to the benefit of and be binding upon
the successors and assigns of CareView, including the survivor upon any merger, consolidation, share exchange or combination of
CareView with any other entity. Employee shall not have the right to assign, delegate, or otherwise transfer to any person or entity
any duty or obligation to be performed by Employee hereunder.

9.5       

Entire Agreement.
This Agreement supersedes all prior and contemporaneous agreements and understandings between the parties hereto, oral or written,
and may not be modified or terminated orally. No modification (except as otherwise provided herein with respect to the modification
of provisions that are unreasonable, arbitrary or against public policy), termination, or attempted waiver shall be valid unless
in writing, signed by the party against whom such modification, termination or waiver is sought to be enforced. This Agreement
was the subject of negotiation by the parties hereto and their counsel. The parties agree that no prior drafts of this Agreement
shall be admissible as evidence (whether in any arbitration or court of law) in any proceeding which involves the interpretation
of any provisions of this Agreement.

9.6       

Governing Law.
This Agreement shall be governed by and construed in accordance with the internal laws of the State of Texas without reference
to the conflict of law principles thereof.

9.7       

Confidential
Arbitration. The parties hereto agree that any dispute concerning or arising out of the provisions of this Agreement, Employee’s
employment, or termination of Employee, shall be resolved by confidential arbitration in accordance with the rules of the American
Arbitration Association. Such confidential arbitration shall be held in Dallas, Texas, and the decision of the arbitrator(s) shall
be conclusive and binding on the parties and shall be enforceable in any court of competent jurisdiction. The arbitrator may, in
the arbitrator’s discretion, award attorney’s fees and costs to such party as the arbitrator sees fit in rendering
a decision.

    	10 

    	 

    

 

ARTICLE X

Survival

The provisions of
Article V and VII of this Agreement and this Article X shall survive the termination, rescission or expiration
of this Agreement, whether upon or prior to any date of termination hereof. The representations and warranties of the parties hereto
shall survive the execution of this Agreement and come without limitation.

ARTICLE XI

Intellectual Property

All Confidential
information, computer software, video and sound recordings, scripts, creations, inventions, improvements, designs and discoveries
conceived, created, invented, authored, developed, produced or discovered by Employee during the Employment Term, whether alone
or with others, whether during or after regular work hours, are and will be CareView’s property. Employee hereby assigns
to CareView all copyrights, trademarks, patents, related applications and registrations, and other rights of authorship, invention
or ownership he may have with respect to such item. CareView agrees to pay for all patent filing and maintenance fees associated
with such inventions.

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

	 	CAREVIEW COMMUNICATIONS, INC.,
	 	a Nevada corporation
	 	 
	 	By:	/s/ Steven G. Johnson
	 	 	 
	 	Name:    	Steven G. Johnson
	 	Its:	President and Chief Executive Officer          
	 	 	 
	 	Date:	May 5, 2017
	 	 	 
	 	 	 
	 	EMPLOYEE
	 	 	 
	 	By:	/s/ Jon Freeman
	 	 	Jon Freeman
	 	 	 
	 	Date:	May 5, 2017

 

    	11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00272-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00272-of-00352.parquet"}]]