Document:

Exhibit 10.5

 

AXSOME THERAPEUTICS

 

CONSULTING AGREEMENT

 

THIS CONSULTING AGREEMENT (the “Agreement”) is made and entered into as of April 13, 2012, (the “Effective Date”) by and between Axsome Therapeutics, Inc., a Delaware corporation having a principal place of business at 45 Rockefeller Plaza, Suite 2000, New York, NY 10111 (hereinafter referred to as the “Company”) and Mark Coleman, M.D., a physician residing at 10 Chris Elliot Court, Cockeysville, MD 21030 (hereinafter referred to as the “Consultant”).

 

WHEREAS, the Company wishes to engage the Consultant to provide the services described herein and Consultant agrees to provide the services for the compensation and otherwise in accordance with the terms and conditions contained in this Agreement.

 

NOW THEREFORE, in consideration of the foregoing, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, accepted and agreed to, the Company and the Consultant, intending to be legally bound, agree to the terms set forth below.

 

1.                                      TERM.  Commencing as of the Effective Date, and continuing for a period of three (3) years (the “Term”), unless earlier terminated pursuant to Article 4 hereof, the Consultant agrees that he will serve as a consultant to the Company.  This Agreement may be renewed or extended for any period as may be agreed by the parties.

 

2.                                      DUTIES AND SERVICES.

 

(a)                                 Consultant’s duties and responsibilities shall be to provide the Company strategic, regulatory and clinical advice, guidance and assistance in connection with the company’s development of pharmaceutical and other therapeutic products (collectively, the “Duties” or “Services”).

 

(b)                                 The Services may be performed via telephone and other forms of remote correspondence, and may include meetings with personnel, other consultants, and regulatory authorities at times and locations to be mutually agreed upon. In each instance, Consultant shall perform the Services only upon Company’s request and after the scope of the Services has been approved by the Company.

 

(c)                                  The Consultant represents and warrants to the Company that he/she is under no contractual or other restrictions or obligations which are inconsistent with the execution of this Agreement, or which will interfere with the performance of his Duties.  Consultant represents and warrants that the execution and performance of this Agreement will not violate any policies or procedures of any other person or entity for which he/she performs Services concurrently with those performed herein.

 

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(d)                                 In performing the Services, Consultant shall comply, to the best of his knowledge, with all business conduct, regulatory and health and safety guidelines established by the Company for any governmental authority with respect to the Company’s business.

 

3.                                      CONSULTING FEE.

 

(a)                                 Subject to the provisions hereof, the Company shall pay Consultant a consulting fee of four hundred fifty ($450) Dollars for each hour of Services provided to the Company (the “Consulting Fee”) payable in cash or options of Company stock.

 

(b)                                 Consultant shall be entitled to prompt reimbursement for all pre-approved expenses incurred in the performance of his Duties, upon submission and approval of written statements and receipts in accordance with the then regular procedures of the Company.

 

(c)                                  The Consultant agrees that all Services will be rendered by him as an independent contractor and that this Agreement does not create an employer-employee relationship between the Consultant and the Company.  The Consultant shall have no right to receive any employee benefits including, but not limited to, health and accident insurance, life insurance, sick leave and/or vacation. Consultant agrees to pay all taxes including, self-employment taxes due in respect of the Consulting Fee and to indemnify the Company in the event the Company is required to pay any such taxes on behalf of the Consultant.

 

4.                                      EARLY TERMINATION OF THE TERM.

 

(a)                                 If the Consultant voluntarily ceases performing his Duties, becomes physically or mentally unable to perform his Duties, or is terminated for cause, then, in each instance, the Consulting Fee shall cease and terminate as of such date. Any termination “For Cause” shall be made in good faith by the Company’s Board of Directors.

 

(b)                                 This Agreement may be terminated without cause by either party upon not less than thirty (30) days prior written notice by either party to the other.

 

(c)                                  Upon termination under Sections 4(a) or 4(b), neither party shall have any further obligations under this Agreement, except for the obligations which by their terms survive this termination as noted in Section 16 hereof.  Upon termination and, in any case, upon the Company’s request, the Consultant shall return immediately to the Company all Confidential Information, as hereinafter defined, and copies thereof.

 

5.                                      RESTRICTED ACTIVITIES. During the Term and for a period of one (1) year thereafter, Consultant will not, directly or indirectly:

 

(i)                                     solicit or request any employee of or consultant to the Company to leave the employ of or cease consulting for the Company;

 

(ii)                                  solicit or request any employee of or consultant to the Company to join

 

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the employ of, or begin consulting for, any individual or entity that researches, develops, markets or sells products that compete with those of the Company;

 

(iii)                               solicit or request any individual or entity that researches, develops, markets or sells products that compete with those of the Company, to employ or retain as a consultant any employee or consultant of the Company; or

 

(iv)                              induce or attempt to induce any supplier or vendor of the Company to terminate or breach any written or oral agreement or understanding with the Company.

 

6.                                      PROPRIETARY RIGHTS.

 

(a)                                 Definitions.  For the purposes of this Article 6, the terms set forth below shall have the following meanings:

 

(i)                                     Concept and Ideas.  Those concepts and ideas disclosed by the Company to Consultant or which are first developed by Consultant during the course of the performance of Services hereunder, whether or not during normal business hours and no matter where such Services are performed, and which relate to the Company’s present, past or prospective business activities, services, and products, all of which shall remain the sole and exclusive property of the Company.  The Consultant shall have no publication rights and all of the same shall belong exclusively to the Company.

 

(ii)                                  Confidential Information. For the purposes of this Agreement, Confidential Information shall mean and collectively include: all information relating to the business, plans and/or technology of the Company including, but not limited to technical information including inventions, methods, plans, processes, specifications, characteristics, assays, raw data, scientific preclinical or clinical data, records, databases, formulations, clinical protocols, equipment design, know-how, experience, and trade secrets; developmental, marketing, sales, customer, supplier, consulting relationship information, operating, performance, and cost information; computer programming techniques whether in tangible or intangible form, and all record bearing media containing or disclosing the foregoing information and techniques including, written business plans, patents and patent applications, grant applications, notes, and memoranda, whether in writing or presented, stored or maintained in or by electronic, magnetic, or other means.

 

Notwithstanding the foregoing, the term “Confidential Information” shall not include any information which: (a) can be demonstrated to have been in the public domain or was publicly known or available prior to the date of the disclosure to Consultant; (b) can be demonstrated in writing to have been rightfully in the possession of Consultant prior to the disclosure of such information to Consultant by the Company; (c) becomes part of the public domain or publicly known or available by publication or otherwise, not due to any unauthorized act or omission on the part of

 

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Consultant; or (d) is supplied to Consultant by a third party without binder of secrecy, so long as that such third party has no obligation to the Company or any of its affiliated companies to maintain such information in confidence.

 

(b)                                 Non-Disclosure to Third Parties.  Except as required by Consultant’s Duties, Consultant shall not, at any time now or in the future, directly or indirectly, use, publish, disseminate or otherwise disclose any Confidential Information, Concepts, or Ideas to any third party without the prior written consent of the Company which consent may be denied in each instance and all of the same, together with publication rights, shall belong exclusively to the Company.

 

(c)                                  Documents, etc.  All documents, diskettes, tapes, procedural manuals, guides, specifications, plans, drawings, designs and similar materials, lists of present, past or prospective customers, customer proposals, invitations to submit proposals, price lists and data relating to the pricing of the Company’s products and services, records, notebooks and all other materials containing Confidential Information or information about Concepts or Ideas (including all copies and reproductions thereof), that come into Consultant’s possession or control by reason of Consultant’s performance of the relationship, whether prepared by Consultant or others: (a) are the property of the Company, (b) will not be used by Consultant in any way other than in connection with the performance of his Duties, (c) will not be provided or shown to any third party by Consultant, (d) will not be removed from the Company’s or Consultant’s premises (except as Consultant’s Duties require), and (e) at the termination (for whatever reason), of Consultant’s relationship with the Company, will be left with, or forthwith returned by Consultant to the Company.

 

(d)                                 Patents, etc.  The Consultant agrees that the Company is and shall remain the exclusive owner of the Confidential Information and Concepts and Ideas.  Any interest in patents, patent applications, inventions, technological innovations, trade names, trademarks, service marks, copyrights, copyrightable works, developments, discoveries, designs, processes, formulas, know-how, data and analysis, whether registrable or not (“Developments”), which Consultant, as a result of rendering Services to the Company under this Agreement, may conceive or develop, shall: (i) forthwith be brought to the attention of the Company by Consultant and (ii) belong exclusively to the Company.  No license or conveyance of any such rights to the Consultant is granted or implied under this Agreement.

 

(e)                                  Assignment.  The Consultant hereby assigns and, to the extent any such assignment cannot be made at present, hereby agrees to assign to the Company, without further compensation, all of his right, title and interest in and to all Concepts, Ideas, and Developments. The Consultant will execute all documents and perform all lawful acts which the Company considers necessary or advisable to secure its rights hereunder and to carry out the intent of this Agreement.

 

7.                                      EQUITABLE RELIEF.  Consultant agrees that any breach of Articles 5 and 6 above by him would cause irreparable damage to the Company and that, in the event of such breach, the Company shall have, in addition to any and all remedies of law, the right to an injunction,

 

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specific performance or other equitable relief to prevent the violation or threatened violation of Consultant’s obligations hereunder.

 

8.                                      WAIVER.  Any waiver by the Company of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach of the same or any other provision hereof.  All waivers by the Company shall be in writing.

 

9.                                      SEVERABILITY; REFORMATION.  In case any one or more of the provisions or parts of a provision contained in this Agreement shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision or part of a provision of this Agreement; and this Agreement shall, to the fullest extent lawful, be reformed and construed as if such invalid or illegal or unenforceable provision, or part of a provision, had never been contained herein, and such provision or part reformed so that it would be valid, legal and enforceable to the maximum extent possible. Without limiting the foregoing, if any provision (or part of provision) contained in this Agreement shall for any reason be held to be excessively broad as to duration, activity or subject, it shall be construed by limiting and reducing it, so as to be enforceable to the fullest extent compatible with then existing applicable law.

 

10.                               ASSIGNMENT.  The Company shall have the right to assign its rights and obligations under this Agreement to a party which assumes the Company’s obligations hereunder.  Consultant shall not have the right to assign his rights or obligations under this Agreement without the prior written consent of the Company.  This Agreement shall be binding upon and inure to the benefit of the Consultant’s heirs and legal representatives in the event of his death or disability.

 

11.                               HEADINGS.  Headings and subheadings are for convenience only and shall not be deemed to be a part of this Agreement.

 

12.                               AMENDMENTS.  This Agreement may be amended or modified, in whole or in part, only by an instrument in writing signed by all parties hereto.  Any amendment, consent, decision, waiver or other action to be made, taken or given by the Company with respect to the Agreement shall be made, taken or given on behalf of the Company only by authority of the Company’s Board of Directors.

 

13.                               NOTICES.  Any notices or other communications required hereunder shall be in writing and shall be deemed given when delivered in person or when mailed, by certified or registered first class mail, postage prepaid, return receipt requested, addressed to the parties at their addresses specified in the preamble to this Agreement or to such other addresses of which a party shall have notified the others in accordance with the provisions of this Section 13.

 

14.                               COUNTERPARTS.  This Agreement may be executed in two or more counterparts, each of which shall constitute an original and all of which shall be deemed a single agreement.

 

15.                               GOVERNING LAW.  This Agreement shall be construed in accordance with and

 

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governed for all purposes by the laws of the State of New York without reference to conflict of law principles. Any dispute under this Agreement shall be subject to the exclusive jurisdiction and venue of the New York state courts and the Federal courts in New York County, New York. The parties hereby consent to the personal exclusive jurisdiction and venue of these courts.

 

16.                               SURVIVAL.  The provisions of Sections 5 to 9 and 15 to 16 of this Agreement shall survive the expiration of the Term or the termination of this Agreement.  This Agreement supersedes all prior agreements, written or oral, between the Company and the Consultant relating to the subject matter of this Agreement.

 

	
ACCEPTED   AND AGREED TO:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
For:   Mark Coleman, M.D.
    	
 
    	
For:   Axsome Therapeutics, Inc.
    
	
 
    	
 
    	
 
    
	
/s/   Mark H. Coleman, M.D.
    	
 
    	
/s/   Herriot Tabuteau, M.D.
    
	
Signature
    	
 
    	
Signature
    
	
 
    	
 
    	
 
    
	
Mark   H. Coleman
    	
 
    	
Herriot   Tabuteau, M.D.
    
	
Print   Name
    	
 
    	
Print   Name
    
	
 
    	
 
    	
 
    
	
MD
    	
 
    	
Chief   Executive Officer
    
	
Title
    	
 
    	
Title
    

 

6

 

AXSOME THERAPEUTICS

 

FIRST AMENDMENT TO CONSULTING AGREEMENT

 

THIS FIRST AMENDMENT (the “First Amendment”) to the Consulting Agreement dated April 13, 2012 (the “Agreement”), by and between Axsome Therapeutics, Inc., a Delaware corporation having a principal place of business at 45 Rockefeller Plaza, 20th Floor, New York, NY 10111 (the “Company”) Mark Coleman, M.D., a physician residing at 10 Chris Elliot Court, Cockeysville, MD 21030(the “Consultant”) is effective June 2, 2014.

 

WHEREAS, the parties wish to amend the Agreement to adjust the compensation provided under the Agreement.

 

NOW THEREFORE, the Company and Consultant intending to be legally bound, hereby agree to the following:

 

1.                                      The following Section 3(d) is hereby added to the Agreement:

 

“(d)                           Subject to approval by the Board of Directors of the Company (the “Board”), the Company shall pay Consultant an additional consulting fee in the form of options to purchase 10,471 shares (the “Shares”) of common stock at an exercise price per share of $9.55 under the Company’s Equity Compensation Plan (the “Plan”) to be awarded as soon as practicable following the Board’s approval (the “Date of Grant”).  The vesting of the Shares is contingent upon the Company, within 18 months of the effective date of the First Amendment to this Agreement (“First Amendment”), either acquiring or entering into a product license agreement (the “License”) with ExxPharma Therapeutics LLC (such acquisition or License, the “ExxPharma Transaction”).  If the ExxPharma Transaction is consummated within 18 months of the effective date of the First Amendment, fifty percent (50%) of the Shares will vest upon the filing of a new drug application for abuse deterrent hydromorphone covered by patents acquired or licensed from ExxPharma Therapeutics LLC (“ExxPharma IP”) and fifty percent (50%) of the Shares will vest upon FDA approval of an abuse deterrent hydromorphone product covered by the ExxPharma IP (the “Product”).  If the ExxPharma Transaction is not consummated within 18 months of the effective date of the First Amendment, no Shares will vest.”

 

2.                                      The following Section 3(e) is hereby added to the Agreement:

 

“(e)                            Provided that the ExxPharma Transaction is consummated within 18 months of the effective date of the First Amendment, the parties will enter into an agreement as soon as practicable following

 

 

consummation of the ExxPharma Transaction providing for payment by the Company of 0.5% of net sales on the Product to Consultant (the “Royalty Agreement”).  The Royalty Agreement will remain in effect for (i) as long the License is required or, (ii) in the event of acquisition of ExxPharma Therapeutics LLC, until the earlier of the Product ceasing to be covered by ExxPharma IP or introduction of a generic alternative.  If the ExxPharma Transaction is not consummated within 18 months of the effective date of the First Amendment, the Company will have no obligation to enter into the Royalty Agreement.”

 

3.                                      This First Amendment, the Agreement and the Nonqualified Stock Option Grant Agreements between the parties constitute the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements and understanding between the parties (whether written or oral) relating thereto.  No modification shall be effective unless made in writing and signed by a duly authorized representative of each party.

 

4.                                      All other terms and conditions of the Agreement shall remain in full force and effect.

 

5.                                      This First Amendment and the Agreement shall be construed in accordance with and governed for all purposes by the laws of the State of New York without reference to conflict of law principles. Any dispute under this First Amendment and the Agreement shall be subject to the exclusive jurisdiction and venue of the New York state courts and the Federal courts in New York County, New York. The parties hereby consent to the personal exclusive jurisdiction and venue of these courts.

 

6.                                      This First Amendment may be executed by facsimile or by e-mail delivery of a “.pdf” file and in any number of counterparts, each of which when executed shall be deemed to be an original, but all of which shall constitute the same First Amendment.

 

[Signature Page Follows]

 

 

IN WITNESS WHEREOF, the Company and Consultant have executed and delivered this Agreement or caused this Agreement to be executed and delivered by their duly authorized representatives as set forth below.

 

	
MARK   COLEMAN, M.D.
    	
 
    	
AXSOME   THERAPEUTICS, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
/s/   Mark Coleman, M.D.
    	
 
    	
By:
    	
Herriot   Tabuteau, M.D.
    
	
                          (signature)
    	
 
    	
 
    	
                 (signature)
    
	
 
    	
 
    	
Herriot   Tabuteau, M.D.
    
	
 
    	
 
    	
Chief   Executive OfficerCareview Communications, Inc. 8-K

Exhibit 10.01

FIRST
AMENDMENT TO CREDIT AGREEMENT

FIRST
AMENDMENT TO CREDIT AGREEMENT (this “Amendment”), dated as of October 7, 2015, is entered into by and among
CAREVIEW COMMUNICATIONS, INC., a Nevada corporation (“Holdings”), CAREVIEW COMMUNICATIONS, INC., a Texas corporation
and a wholly-owned subsidiary of Holdings (the “Borrower”), and PDL BIOPHARMA, INC., a Delaware corporation,
in its capacity as lender (in such capacity, the “Lender”) and in its capacity as agent (in such capacity,
the “Agent”).

W
I T N E S S E T H

WHEREAS
the Borrower, the Lender and the Agent have entered into that certain Credit Agreement dated as of June 26, 2015 (the “Credit
Agreement”);

WHEREAS
the Borrower has requested that the Lender agree to amend the conditions precedent required to be satisfied prior to the borrowing
by the Borrower of the Tranche One Loan, as set forth herein;

WHEREAS
the Lender is willing to make such amendments to the Credit Agreement upon the terms and conditions set forth herein;

WHEREAS
pursuant to Section 10.1 of the Credit Agreement, PDL, as the Lender and the Agent, is willing to agree to make such amendments
to the Credit Agreement subject to the terms and conditions set forth herein;

NOW,
THEREFORE, in consideration of the agreements hereinafter set forth, and for other good and valuable consideration, the receipt
and adequacy of which are hereby acknowledged, the parties hereto agree as follows:

Article
I.

DEFINITIONS

1.1             
Definitions. Unless otherwise defined herein or the context
otherwise requires, terms used in this Amendment, including its preamble and recitals, have the meanings provided in the Credit
Agreement.

Article
II.

AMENDMENTS

2.1             
Amendments. Upon satisfaction of the conditions set forth
in Article III hereof, the Credit Agreement is hereby amended as follows:

(a)               
Section 1.1 (Definitions) of the Credit Agreement
is hereby amended by adding, or amending and restating in their entirety, as applicable, the following definitions in alphabetical
order:

 

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“Bed
Equivalent Units” means, as of any date of determination, an aggregate number of units equal to (i) 1 unit for each
room control platform; (ii) 2 units for each nurse station monitor; (iii) 14 units for each Headend; and (iv) fractional units
for mobile assets computed by taking the gross revenue for all mobile assets for the last full calendar month ending immediately
prior to the date of determination divided by 60, in the case of each such unit in clauses (i) through (iv) for
which each of the following clauses (a) to (c) is true: (a) such unit is mounted (where applicable) and operational,
(b) required personnel have been trained in the use of such unit (where applicable) and (c) the Borrower is receiving revenue
as of such date in respect of such unit.

“Headend”
means an individual head-end server operating as the communications center for the CareView Systems that allows such CareView
Systems to communicate over a coaxial cable television infrastructure, in each case (i) that consists of at least two servers,
a switch and a router and (ii) for which the Borrower is charging a monthly service fee.

“Tranche
One Funding Date” means the date on which the conditions set forth in Section 4.2 have been satisfied or waived by the
Agent in its sole discretion and the Tranche One Loan is funded.

(b)              
Each of the following definitions is hereby deleted from Section
1.1 (Definitions) of the Credit Agreement in its entirety: “Billable CareView System Unit”, “Tranche
One Loan Request Date”, “Tranche One Milestone”, and “Tranche One Milestone Notice”.

(c)               
Section 2.1.1(a) (Loans) of the Credit Agreement is
hereby amended and restated in its entirety as follows:

“(a)
on the Tranche One Funding Date, the entire amount of its Tranche One Commitment, after which the Tranche One Commitment shall
terminate in full.”

(d)              
Section 4.2 (Tranche One Loan) of the Credit Agreement
is hereby amended and restated in its entirety as follows:

4.2Tranche
One Loan. The obligation of the Lender to make the Tranche One Loan is subject to the following conditions precedent, each
of which shall be satisfactory in all respects to the Agent and the Lender:

4.2.1Delivery
of Borrowing Request. The Borrower shall have delivered to Agent a Borrowing Request requesting that the entire amount of
the Tranche One Commitment be funded on a date that is no less than one Business Day after the date of such Borrowing Request.

4.2.2Payment
of Closing Fee and Fees and Expenses. The Borrower shall have paid, on or prior to the Tranche One Funding Date, (i) the Closing
Fee, (ii) all fees and expenses owing and payable to the Agent and the Lender as of such date and (iii) subject to Section
10.3, without duplication, all costs and expenses incurred by the Agent and the Lender in connection with the funding of

 

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the
Tranche One Loan which are required to be paid by the Borrower, and shall provide evidence acceptable to the Agent of the foregoing.

4.2.3Notes.
A Note in respect of the Tranche One Loan.

4.2.4Officer’s
Certificate. A certificate, dated the Tranche One Funding Date and signed by the chief executive officer or the chief financial
officer of each of Holdings and the Borrower, confirming compliance with the conditions set forth in Section 4.2.5, 4.2.6, and
4.2.7.

4.2.5Representations
and Warranties. Each representation and warranty by each Loan Party contained herein or in any other Loan Document to which
such Loan Party is a party, shall be true and correct in all material respects (without duplication of any materiality qualifier
contained therein) as of the Tranche One Funding Date (or as of a specific earlier date if such representation or warranty expressly
relates to an earlier date).

4.2.6No
Default. No Default or Event of Default shall have occurred and be continuing.

4.2.7No
Material Adverse Change. Since December 31, 2014, no event or occurrence shall have occurred that has resulted or could reasonably
be expected to result in a Material Adverse Effect.

(e)               
Section 4.3.2 (Tranche Two Milestone) of the Credit
Agreement is hereby amended and restated in its entirety as follows:

4.3.2Tranche
Two Milestone. On or prior to June 30, 2017, (a) the Borrower shall have placed in service a minimum of 31,500 Bed Equivalent
Units and (b) the Consolidated EBITDA of Holdings, computed on an annualized basis for the three-calendar month period immediately
preceding the Tranche Two Funding Date, shall not be less than $7,000,000 (the foregoing conditions, collectively, the “Tranche
Two Milestone”). For the avoidance of doubt, if the Tranche Two Milestone shall have not occurred on or prior to June
30, 2017, the condition set forth in this Section 4.3.2 shall not be satisfied.

(f)               
Section 6.9 (Tranche One Milestone Notice) of the
Credit Agreement is hereby deleted in its entirety and replaced with “[RESERVED]”.

Article
III.

CONDITIONS TO EFFECTIVENESS

This
Amendment shall be and become effective (the “Closing”) on the date (the “First Amendment Effective
Date”) all of the conditions set forth in this Article III shall have been satisfied (or waived by the Agent
and the Lender in its sole discretion in accordance with Section 10.1 of the Credit Agreement):

 

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3.1             
Counterparts. The Agent shall have received counterparts
to this Amendment duly executed by each of Holdings, the Borrower, the Lender and the Agent.

3.2             
Fees and Expenses. The Agent shall have received, by wire
transfer of immediately available funds to an account of the Agent designated in writing, reimbursement from the Borrower of all
costs and expenses incurred by the Agent and the Lender in connection with this Amendment and the transactions contemplated hereby,
including any and all fees payable or owed to Gibson, Dunn & Crutcher LLP in connection with the drafting, negotiation, and
execution of this Amendment.

3.3             
Amendment and Restatement of Warrants. The Agent shall have
received counterparts duly executed by Holdings of amended and restated Warrants (the “Amended and Restated Warrants”),
which Amended and Restated Warrants shall provide for an exercise price of $0.40 per share and be in a form reasonably acceptable
to the Agent.

3.4             
Representations and Warranties. Both prior to and after giving
effect to this Amendment, each representation and warranty by each Loan Party that is a party hereto contained herein or in any
other Loan Document to which such Loan Party is a party, shall be true and correct in all material respects (without duplication
of any materiality qualifier contained therein) on and as of the First Amendment Effective Date (or as of a specific earlier date
if such representation or warranty expressly relates to an earlier date).

3.5             
Event of Default. Both prior to and giving effect to this
Amendment, no Default or Event of Default shall have occurred and be continuing, and no Default or Event of Default shall result
from the execution and delivery of this Amendment and the consummation of the transactions contemplated herein.

3.6             
No Material Adverse Effect. Since December 31, 2014, no event
or occurrence shall have occurred that has resulted or could reasonably be expected to result in a Material Adverse Effect.

Article
IV.

REPRESENTATIONS AND WARRANTIES

4.1             
Representations and Warranties of Loan Parties. In order
to induce the Agent and the Lender to enter into this Amendment, each of Holdings and the Borrower hereby represents and warrants
to the Agent and the Lender that as of the date hereof, both prior to and after giving effect to this Amendment:

(a)               
Organization. Holdings is a corporation validly existing
and in good standing under the laws of the State of Nevada; the Borrower is a corporation validly existing and in good standing
under the laws of the State of Texas; and each other Loan Party and each of its Subsidiaries is duly organized, validly existing
and in good standing (as applicable) under the laws of the jurisdiction of its incorporation or organization. Each Loan Party
has all power and authority and all material governmental approvals required for the ownership and operation of its properties
and the conduct of its business as now conducted and as proposed to be conducted and is qualified to do business, and is in good
standing (as applicable), in every jurisdiction where, because of the nature of its activities or properties, such qualification
is required, except for such

 

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jurisdictions
where the failure to so qualify could not reasonably be expected to have a Material Adverse Effect.

(b)              
Due Authorization. The execution, delivery and performance
of this Amendment, and the performance of its obligations under the Credit Agreement as amended hereby, have been duly authorized
by all necessary action on the part of each Loan Party that is a party hereto.

(c)               
No Conflict. The execution, delivery and performance of this
Amendment by each Loan Party that is a party hereto and the consummation of the transactions contemplated hereby do not and will
not (a) require any consent or approval of, or registration or filing with or any other action by, any Governmental Authority
(other than any consent or approval which has been obtained and is in full force and effect), (b) conflict with (i) any provision
of material Applicable Law, (ii) the charter, by-laws, limited liability company agreement, partnership agreement or other organizational
documents of any Loan Party or (iii) any material agreement, indenture, instrument or other document, or any judgment, order or
decree, which is binding upon any Loan Party or any of their respective properties or (c) require, or result in, the creation
or imposition of any Lien on any asset of Holdings, the Borrower or any other Loan Party (other than Liens in favor of the Agent
created pursuant to the Collateral Documents).

(d)              
Incorporation of Representations and Warranties from Loan Documents.
Each representation and warranty by each Loan Party that is a party hereto contained in the Credit Agreement or in any other Loan
Document to which such Loan Party is a party is true and correct in all material respects (without duplication of any materiality
qualifier contained therein) as of the date hereof (or as of a specific earlier date if such representation or warranty expressly
relates to an earlier date).

(e)               
No Default. Both prior to and after giving effect to this
Amendment, no Default or Event of Default has occurred and is continuing, and no Default or Event of Default will result from
the execution and delivery of this Amendment and the consummation of the transactions contemplated herein.

(f)               
No Material Adverse Effect. Since December 31, 2014, no event
or occurrence has occurred that has resulted or could reasonably be expected to result in a Material Adverse Effect.

(g)              
Validity; Binding Nature. This Amendment has been duly executed
by each Loan Party that is a party hereto, and each of (i) this Amendment and (ii) the Credit Agreement as amended hereby is the
legal, valid and binding obligation of each Loan Party that is a party hereto, enforceable against such Person in accordance with
its terms, subject to bankruptcy, insolvency and similar laws affecting the enforceability of creditors’ rights generally
and to general principles of equity.

Article
V.

MISCELLANEOUS

5.1             
Loan Document. This Amendment is a Loan Document executed
pursuant to the Credit Agreement and shall (unless otherwise expressly indicated therein) be construed, administered and applied
in accordance with the terms and provisions of the Credit Agreement.

 

    	5

    	 

    

5.2             
Effect of Amendment. Except as expressly set forth herein,
this Amendment shall not by implication or otherwise limit, impair, constitute a waiver of, or otherwise affect, the rights and
remedies of the parties to the Credit Agreement and shall not alter, modify, amend or in any way affect any of the terms or conditions
contained therein, all of which are ratified and affirmed in all respects and shall continue in full force and effect. Nothing
herein shall be deemed to entitle any Loan Party to any future consent with respect to, or waiver, amendment, modification or
other change of, any of the terms or conditions contained in the Credit Agreement in similar or different circumstances. Except
as expressly stated herein, the Agent and the Lender reserve all rights, privileges and remedies under the Loan Documents. All
references in the Credit Agreement and the other Loan Documents to the Credit Agreement shall be deemed to be references to the
Credit Agreement as modified hereby.

5.3             
Reaffirmation. Each of Holdings and the Borrower hereby reaffirms
its obligations under each Loan Document to which it is a party. Each of Holdings and the Borrower hereby further ratifies and
reaffirms the validity and enforceability of all of the liens and security interests heretofore granted, pursuant to and in connection
with the Guarantee and Collateral Agreement or any other Loan Document, to the Agent, as collateral security for the obligations
under the Loan Documents in accordance with their respective terms, and acknowledges that all of such liens and security interests,
and all Collateral heretofore pledged as security for such obligations, continue to be and remain collateral for such obligations
from and after the date hereof.

5.4             
Counterparts. This Amendment may be executed by the parties
hereto in several counterparts, each of which shall be deemed to be an original and all of which shall constitute together but
one and the same agreement. Delivery of an executed signature page of this Amendment by facsimile transmission or electronic transmission
shall be as effective as delivery of a manually executed counterpart hereof.

5.5             
Construction; Captions. Each party hereto hereby acknowledges
that all parties hereto participated equally in the negotiation and drafting of this Amendment and that, accordingly, no court
construing this Amendment shall construe it more stringently against one party than against the other. The captions and headings
of this Amendment are for convenience of reference only and shall not affect the interpretation of this Amendment.

5.6             
Successors and Assigns. This Amendment shall be binding upon
and inure to the benefit of the parties hereto and their respective successors and assigns (as permitted under the Credit Agreement).

5.7             
Governing Law. This Amendment,
the rights and obligations of the parties hereto, and any claims or disputes relating thereto shall be governed by and construed
in accordance with THE INTERNAL LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES (OTHER THAN SECTION
5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW). 

5.8             
Severability. The illegality or unenforceability of any provision
of this Amendment or any instrument or agreement required hereunder shall not in any way affect or

 

    	6

    	 

    

impair
the legality or enforceability of the remaining provisions of this Amendment or any instrument or agreement required hereunder.

5.9             
Release of Claims. In consideration of the Lender’s
and Agent’s agreements contained in this Amendment, each of Holdings and Borrower hereby releases and discharges the Lender
and the Agent and their affiliates, subsidiaries, successors, assigns, directors, officers, employees, agents, consultants and
attorneys (each, a “Released Person”) of and from any and all other claims, suits, actions, investigations,
proceedings or demands, whether based in contract, tort, implied or express warranty, strict liability, criminal or civil statute
or common law of any kind or character, known or unknown, which Holdings or Borrower ever had or now has against the Agent, any
Lender or any other Released Person which relates, directly or indirectly, to any acts or omissions of the Agent, any Lender or
any other Released Person relating to the Credit Agreement or any other Loan Document on or prior to the date hereof.

[Signature
page follows]

    	7

    	 

    

IN
WITNESS WHEREOF, each of the parties hereto has caused this Amendment to be duly executed and delivered as of the date first above
written.

 

HOLDINGS:

 

CAREVIEW
COMMUNICATIONS, INC.,

a
Nevada corporation

 

 

By:/s/
Steven Johnson

Name:
Steven Johnson

Title:
President and CEO

 

BORROWER:

 

CAREVIEW
COMMUNICATIONS, INC.,

a
Texas corporation

 

 

By:
/s/ Steven Johnson

Name:
Steven Johnson

Title:
President and CEO

 

LENDER:

 

PDL
BIOPHARMA, INC.

 

 

By:/s/
John P. McLaughlin

Name:
John P. McLaughlin

Title:
President and Chief Executive Officer

 

AGENT:

 

PDL
BIOPHARMA, INC.

 

 

 

By:
/s/ John P. McLaughlin

Name:
John P. McLaughlin

Title:
President and Chief Executive Office

 

 

[Signature
Page to First Amendment to Credit Agreement]

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