Document:

Careview 8-K

 

Exhibit 10-6

 

 

THE
HONORABLE TOMMY G. THOMPSON

 

 

  

December
31, 2013

 

 

 

 Steven G. Johnson President 

CareView Communications, Inc. 

405 State Highway 121 Bypass,
Suite B-240

Lewisville, TX 75067

  

Re:Resignation

 

Dear Steve:

  

Thank you for giving me the opportunity
to serve on the Board of Directors of CareView Communications, Inc. (“CareView”). It has been my honor and pleasure
to serve on this Board.

 

Effective
immediately, however, I hereby tender my resignation to you as a director of CareView but welcome the opportunity to continue to
work with CareView as Co-Founder, Director Emeritus, and President of Business Development and Acquisitions.

 

In closing, I am thankful for
having had the opportunity to work with you and the other directors on CareView’s Board and look forward to being engaged
with, and assisting, the Company in my new role. I wish you and the Company continued success in all of your future endeavors.

 

Sincerely,

 

 /s/ Tommy G. Thompson

 

Tommy G. Thompson

 

 

 

 

1313 MANASSAS TRAIL

 MADISON, WI
53718Careview 8-K

Exhibit 10.7

 

Binding TERM
SHEET

FOR The HealthCor
Partners 

SENIOR convertible
NOTE Investment in

CAREVIEW
COMMUNICATIONS, INC.

 

DECEMBER
27, 2013

 

This Binding Term Sheet
summarizes the principal terms of the HCP Senior Convertible Note investment in CareView Communications, Inc., a Nevada corporation
(the “Company”). This Term Sheet shall be governed in all respects by the laws of the State of Delaware.

 

The senior convertible
notes issued on April 21, 2011 and January 31, 2012, respectively, are herein referred to as the “Existing Notes”.

 

	OFFERING TERMS
	Proposed Closing Date:	On or about January 14, 2014, or as soon as practicable thereafter (the “Closing”).
	Investors:	HealthCor Partners Management, L.P., on behalf of certain affiliated funds (collectively, “HCP”).
	Type and Amount of Investment:	$5,000,000 of a Senior Convertible Note (the “New Senior Convertible Note”).
	Maturity:	10 years following the issuance of the New Senior Convertible Note.
	Interest:	
        The New Senior Convertible Note shall
        bear interest accordingly:

        During years 1-5 (the “First
        Five Year Note Period”), interest will be payable (on a cumulative basis) by the issuance of additional convertible debt
        (a “PIK”) at an interest rate of 12.5%, compounded quarterly.

        During years 6-10 (the “Second
        Five Year Note Period”), interest may be paid in cash or as a continuation of the cumulative PIK (at the Company’s
        option), at an annual interest rate of 10.0%, compounded quarterly.

        Interest shall be calculated and payable
        on a quarterly basis in arrears.

        Notwithstanding the foregoing, during
        the existence of an event of default, the then applicable interest rate will be increased by 5%.

         

	Interest Acceleration:	Same as the Existing Notes
((i.e., two ‘five-year’ periods), with the following exception:

                                                           

                                                          The New Senior Convertible Note will
        include the following language and the last sentence of Section 2(d)(i) of each of the Existing Notes will

 

    	 

    	 

    

		
        be amended and restated in
its entirety to read as follows:

        “For purposes of this
Note, the term “Major Event” shall mean the occurrence of (i) the signing of a definitive agreement or a series
of agreements for the transfer, sale, lease or license of all or substantially all of the Company’s assets or capital securities;
(ii) the signing of a definitive agreement to consolidate or merge with or into another Person (whether or not the Company is
the Successor Entity) that results or would result, after giving effect to the consummation of the transactions contemplated by
such agreement, in such other Person (or the holders of such other Person’s capital stock immediately prior to the transaction)
(other than the Holder or its Affiliates) being or becoming the beneficial owner (within the meaning of Rule 13d-3 promulgated
under the Exchange Act) of thirty-five percent (35%) or more of any class of the Company’s or the Successor Entity’s
outstanding capital securities; (iii) the signing of a definitive agreement or a series of agreements to consummate a stock acquisition
or sale or other business combination (including, without limitation, a reorganization, recapitalization, or spin-off), or series
thereof, with any other Person or Persons (other than the Holder or its Affiliates) that results or would result, after giving
effect to the consummation of the transactions contemplated by such agreement or agreements, in such other Person or Persons being
or becoming the beneficial owner (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of thirty-five percent
(35%) or more of any class of the Company’s outstanding capital securities; (iv) the commencement or other public announcement
by any Person (other than the Company, the Holder or the Holder’s Affiliates) of a purchase, tender or exchange offer for
35% or more of the outstanding shares of Common Stock (not including any shares of Common Stock held by the Person or Persons
making or party to, or associated or affiliated with the Persons making or party to, such purchase, tender or exchange offer);
(v) any “person” or “group” (as these terms are used for purposes of Sections 13(d) and 14(d) of
the Exchange Act) (other than the Holder or its Affiliates) is or shall become the “beneficial owner” (as defined
in Rule 13d-3 under the Exchange Act), directly or indirectly, of either (x) 35% or more of the aggregate ordinary voting
power represented by issued and outstanding Common Stock or (y) 35% or more of the aggregate ordinary voting power represented
by issued and outstanding Common Stock not held by the such Person or Persons as of the date hereof; or (vi) the public announcement
by any Person, Persons or group (other than the Company, the Holder or the Holder’s Affiliates) of a bona fide intention
to enter into any of the agreements or to engage in or commence any of the actions described in clauses (i) through (v) above,
or otherwise reflecting an intent to acquire the Company or all or substantially all of its assets or capital securities, or the
public announcement by the Company of its receipt of a communication from such a Person, Persons or group

	

    	 

    	 

    
	 	

                                                          evidencing the same.”

                                                           

	Optional Conversion:	
        HCP will have the right, at any time,
        and at its sole discretion, to convert, in whole or in part, the principal and accumulated accrued interest of the New Senior Convertible
        Note into common stock of the Company.

        The conversion price the New
Senior Convertible Note shall be equal to $0.40..

	Call Provision:	None
	Put Provision: 	None
	Forced Conversion Provision:	None
	Covenants:	Same as the Existing Notes.  
	Events of Default	Same as the Existing Notes.  
	Security:	The New Senior Convertible Note will be pari passu with the Existing Notes and have the same security rights.
	Warrant:	
        The Company shall issue HCP a warrant
        to purchase 4,000,000 shares. The actual number of shares will be subject to final adjustments, based on the Company’s stock
        price at the time of Closing, but in no event will be less than 4,000,000.

        The strike price of this warrant shall
        be equal to $0.40.

        The term of the warrant shall be 10
        years and shall include cashless exercise provisions.

 

	Preemptive Rights:	Same as the Existing Notes.
	Representations and Warranties:	Standard representations and warranties by the Company.
	Registration Rights:	Same as the Existing Notes.  

    	 

    	 

    

	Conditions to Close:	Conditions to Closing shall be mutually satisfactory final documentation and the lack of: (i) a Company material adverse change (“MAC”), (ii) new information that is deemed highly unfavorable to the Company or (iii) a Market MAC. HCP shall use good faith in determining what events or information would be considered to fall under any of the conditions outlined in the previous sentence.  It shall be a further condition to Closing that the closing sale price of the Company’s common stock on the OTC Markets-OTCQB shall at no time prior to Closing be less than $0.25 per share.
	Use of Proceeds:	Use of proceeds is intended to enable the Company to (i) install equipment pursuant to hospital contracts, (ii) recruit and employ executives and sales personnel with experience in the healthcare/hospital space, (iii) expand its intellectual property portfolio, and (iv) for general working capital purposes.
	No-Shop / Confidentiality:	The Company agrees that it will not, from the date these terms are accepted until January 31, 2014, take any action to solicit, initiate, encourage or assist the submission of, or engage or enter into any negotiations, discussions or agreements with respect to, any proposal, negotiation or offer from any person or entity other than HCP relating to the sale or issuance of any of any financial security of the Company or the acquisition, sale, lease, license or other disposition of the Company or any material part of the stock or assets of the Company and shall notify HCP promptly of any inquiries by any third parties in regards to the foregoing.  The Company will not disclose the terms of this Term Sheet to any person other than officers, members of the Board of Directors, and the Company’s accountants and attorneys and other potential investors acceptable to HCP, without the written consent of HCP or except as required by law.   
	Expenses: 	The Company will bear the reasonable legal fees and other out-of-pocket expenses of HCP with respect to the transaction.  

    	 

    	 

    

EXECUTED
this 27th day of December, 2013.

 

 

	 	HealthCorPartners Management, L.P.
	 	 
	 	By: HealthCor Partners Management GP, LLC,
	 	       its general partner
	 	 	 	 
	 	By:	/s/ Jeffrey C. Lightcap
	 	  	  Name: Jeffrey C. Lightcap
	 	   	  Title: Senior Managing Director
	 	    	  Date: December 27, 2013
	 	 
	 	CareView
Communications, Inc.
	 	 
	 	By:	/s/ Steven Johnson
	 	  	  Name: Steven Johnson
	 	   	  Title: President
	 	  	  Date: December 30, 2013

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