Document:

Exhibit 10.2

    

     

    

    
      COMMERCIAL TERM NOTE

      

      

      
        	
                 

              	
                Lafayette, Louisiana

              
	
                $5,000,000.00

              	
                September 19, 2019

              

      

      

      

      For value received, the undersigned maker(s) (hereinafter referred to as “Borrower”, which term means individually, collectively, and interchangeably any, each and/or all of them), jointly, severally, and solidarily,
        promises to pay to the order of HANCOCK WHITNEY BANK (“Bank”), a Mississippi state chartered bank, with an office located at 1301 Camellia Blvd., Suite 100, Lafayette, LA 70508, the sum of FIVE MILLION AND 00/100 DOLLARS ($5,000,000.00) together
        with interest thereon, in accordance with the terms set forth in this Commercial Note (“Note”).

      

      

      REPAYMENT:

      

      

      Level principal and interest.  Principal and accrued interest shall be due and payable in equal consecutive payments in the amount of One hundred Forty-Eighty Thousand Nine
        Hundred Fifty-Eight Dollars ($148,958.18), to be applied first to interest and the remainder to principal, beginning October 19, 2019, and on the same day in each month thereafter until September 19, 2022 (the “Maturity Date”), on which date
        the entire unpaid balance of principal and accrued interest shall be due and payable in full; provided, however, that if this Note bears interest at a variable rate and the interest rate payable pursuant to this Note shall have increased or
        decreased as a result of a change in such variable rate, Bank may, at its option and in its discretion, increase or decrease the amount of Borrower’s periodic payments due hereunder to ensure that the principal scheduled to be amortized over the
        term of this Note is fully amortized.

      

      

      Unless sooner declared due and payable in accordance with the provisions of this Note, on the Maturity Date, all outstanding principal, interest, fees, costs and expenses owing by Borrower to Bank shall be due and
        payable in full without notice or demand.

      

      

      INTEREST:

      

      

      Fixed Rate.  Interest shall accrue on the unpaid principal balance at the rate of 4.60% per annum, fixed.

      

      

      Default Rate.  After maturity, whether that maturity results from acceleration or otherwise, interest shall, to the extent permitted by applicable law, accrue at the Default
        Rate.  Additionally, upon the occurrence of any Event of Default hereunder other than a delinquent payment (and from and after the date of such occurrence), interest shall, to the extent permitted by applicable law, accrue at the Default Rate.  The
        Default Rate shall be the maximum rate authorized by applicable law, and if applicable law establishes no maximum rate, then eighteen percent (18.0%) per annum.

      

      

       All interest shall be computed on the basis of the actual number of days elapsed over a year composed of 360 days.  Interest shall accrue from the first date that funds are advanced to Borrower until all sums due
        hereunder are paid in full.

      

      

      Notwithstanding the foregoing, under no circumstances will the effective rate of interest on this Note exceed the maximum rate permissible under applicable law. To the extent
          federal law permits to contract for, charge or receive a greater amount of interest, Bank reserves the right to rely on federal law for the purpose of determining the maximum rate. It is the intention of Borrower and Bank to conform
        strictly to any applicable usury laws. The aggregate of all consideration which constitutes interest under applicable law that is contracted for, charged or received under this Note shall under no circumstances exceed the maximum amount of interest
        allowed by applicable law, and any excess shall be credited to the principal balance on this Note or, if this Note shall have been paid in full, refunded to Borrower.

      

      

      All payments to be made by the Borrower to Bank under or pursuant to this Note shall be in immediately available United States currency, without setoff or counterclaim, and in the event that any payments submitted
        hereunder are in funds not available until collected, said payments shall continue to bear interest until collected.

      

      

      PREPAYMENT:  Provided no other agreement between the Borrower and Bank expressly imposes a prepayment penalty, Borrower may prepay without penalty any principal on this Note in
        whole or in part and any prepayments made on this Note shall be applied to the principal payment(s) due on this Note in the inverse order of their maturity.

       

      LATE PAYMENT AND NSF CHARGES: In the event any installment payment of principal and/or interest is more than ten
          (10) days past due, Borrower promises to pay, in addition to the amount otherwise due hereunder, a delinquency charge of 5.00% of the unpaid portion of the regularly schedule payment, but not more than $1,000.00.  In the event that any payment
          under this Note by check or preauthorized charge is later dishonored or returned to Bank unpaid due to insufficient funds, Borrower agrees to pay Bank an additional NSF check charge equal to $25.00.

      

      

      BALANCE OWING:  The amount from time to time outstanding under this Note and each payment on this Note shall be evidenced by entries in Bank’s internal records, which shall be
        conclusive evidence absent manifest error of (a) the amount of principal and interest owing on this Note from time to time; (b) the amount of each advance made to Borrower under this Note; and (c) the amount of each principal and/or interest
        payment received by Bank on this Note.  The failure of Bank to make an accurate entry of advances and payments shall not limit or otherwise affect the obligation of Borrower to repay funds actually advanced by Bank hereunder.  Any loan or advance
        shall be conclusively presumed to have been made under the terms of this Note to or for the benefit of Borrower when made in accordance with such requests and directions, or when made pursuant to the terms of any written agreement executed in
        connection herewith between Borrower and Bank, or when said advances are deposited to the credit of the account of Borrower with Bank regardless of the fact that persons other than those authorized hereunder may have authority to draw against such
        account, or when applied as a payment of principal and/or interest to another obligation of Borrower to Bank.

      

      

      OBLIGORS: Any or each party to this Note (including each maker and endorser) and any or each surety and guarantor of this Note bound under separate instrument or agreement are
        hereinafter referred to jointly and severally as “Obligor.”

      

      

       

      
        
          

        

      

      
      SECURITY AND SET-OFF: In order to secure the repayment of the indebtedness evidenced by this
        Note, including, without limitation, future advances, interest, attorneys’ fees, expenses of collection and costs, as well as the payment and performance of any and all other liabilities or obligations of any Borrower to Bank, whether direct or
        indirect, absolute or contingent, due or to become due, or now existing or hereafter arising, and including, but not limited to, all agreements with respect to any swap, forward, future, or derivative transaction or option or similar agreement
        involving, or settled by reference to, one or more interest rates, currencies, commodities, equity or debt instruments or securities, or economic, financial or pricing indices or measures of economic, financial or pricing risk or value
        (collectively, the “Obligations”), Borrower hereby pledges to Bank, and grants to Bank a continuing lien and security interest in and a right of set-off and compensation against, all property of Borrower, including any such property Borrower
        holds jointly with someone else, that is now or hereafter on deposit with, in the possession of, under the control of or held by Bank or any financial institution affiliate of the Bank, including, without limitation, all cash, deposit accounts,
        funds on deposit, stocks, bonds, treasury obligations and other securities, investment property, financial assets, securities accounts, notes, documents, instruments, certificates of deposit, items, chattel paper, and other property (except IRA,
        pension, other tax-deferred retirement accounts and any accounts or property held in a trust or fiduciary capacity for which setoff would be prohibited by law), together with all property added to or substituted for any of the foregoing, and all
        interest, dividends, income, fruits, accessions and proceeds of any of the foregoing. The terms “chattel paper,” “deposit accounts,” “documents,” “items,” “instruments,” “investment property,” “securities accounts,” “financial assets” and
        “proceeds” shall have the meaning provided in the Louisiana Uniform Commercial Code.  Each Obligor releases Bank from any obligation with respect to the collateral including any obligation to collect any proceeds of or preserve any of Obligor’s
        rights, including, without limitation, rights against prior parties, in any collateral in which Bank possesses a security interest.   Any responsibility of Bank with respect to any collateral in which Bank possesses a security interest,
        whether arising contractually or as a matter of law, is hereby expressly waived.

      

      

      EVALUATIONS: Borrower represents and warrants that the indebtedness evidenced by this Note was contracted for by Borrower at Borrower’s request based upon Borrower’s own
        independent determination of need.  Borrower and each other Obligor understand and agree that any appraisals or evaluations made by or for the Bank of the financial condition of any person or the value of any property were made solely for the
        Bank’s benefit and Bank in no way has represented or warranted the financial condition of any person or the value of any property in making or obtaining said appraisals or evaluations or in extending credit to Borrower or any other Obligor.
        Borrower and each other Obligor understand and agree that they have no right to rely on Bank’s appraisals or evaluations in assuming this debt and executing this instrument and that their obligation to pay the debt represented by this Note is
        independent of any such appraisals or evaluations.

      

      

      RENEWAL: If an earlier note of Borrower to Bank is renewed at the time of execution hereof, then this Note constitutes an extension, but not a novation, of the amount of the
        unpaid and continuing indebtedness, and all rights held by Bank under the earlier note shall continue in full force and effect.

      

      

      FINANCIAL INFORMATION: Borrower shall, and shall cause each other Obligor to, promptly provide to Bank true and correct current financial statements and such other information
        regarding the financial condition, business and properties of each Obligor as Bank may request from time to time, all in form, substance and detail satisfactory to the Bank.  The financial statements shall include, among other things, detailed
        information regarding (i) any entities, such as corporations, partnerships, or limited liability companies of which the Obligor is the majority owner and (ii) any entities of which the Obligor is not the majority owner, but for which Obligor is
        directly or contingently liable on debts or obligations of any kind incurred by those entities.  All financial statements or records submitted to Bank via electronic means, including, without limitation by facsimile, open internet communications or
        other telephonic or electronic methods, including, without limitation, documents in Tagged Image Format Files (“TIFF”) or Portable Document Format (“PDF”) shall be treated as originals, fully binding and with full legal force and effect and the
        parties waive any rights they may have to object to such treatment.  The Bank may rely on all such records in good faith as complete and accurate records produced or maintained by or on behalf of the party submitting such records.

      

      

      DEFAULT: If any of the following events shall occur (each such event being referred to herein as an “Event of Default”): (a) the non-payment of any principal or
        interest on this Note or any other Obligation on the date when due; (b) the death, dissolution, liquidation or insolvency of any Obligor; (c) the filing by or against any Obligor of a proceeding under the U.S. Bankruptcy Code; (d) the application
        for appointment of a receiver for, the making of a general assignment for the benefit of creditors of, or the filing of any proceeding seeking any other relief afforded debtors or affecting rights of creditors generally under the laws of any
        jurisdiction by or against any Obligor; (e) the default by any Obligor in the payment or performance of (i) any obligation under this Note or under any deed of trust, mortgage, security agreement or any other document securing payment of this
        Note,  or (ii) any obligation under any other note or under any other agreement of any Obligor with or in favor of Bank; (f) any judgment, garnishment, seizure, tax lien or levy against any assets of any Obligor; (g) any material adverse change in
        the financial condition of any Obligor, or any material discrepancy between the financial statements submitted by any Obligor and the actual financial condition of any Obligor; (h) any statement, warranty, or representation made by any Obligor to
        Bank proves to be untrue in any material respect; (i) any default by any Obligor in the payment or performance of any material liabilities, indebtedness or obligations to any other creditor; (j) any merger, consolidation or change in any Obligor’s
        type or form of organizational structure without the prior written consent of  Bank; or (k) any discontinuance or termination of any guaranty of all or any portion of this Note by any Obligor or any attempt by any Obligor to do so; then, at the
        option of Bank, the full amount of this Note and all other obligations and liabilities, direct or contingent, of any Obligor to Bank shall be immediately due and payable without notice or demand.

      

      

      REMEDIES: Bank shall have the remedies of a secured party under the Louisiana Uniform Commercial Code.  In addition to any and all other remedies which may be available to it,
        all of which shall be cumulative and may be pursued singly, successively or together against any Obligor and/or any security given at any time to secure the payment hereof, all at the sole discretion of Bank.  Failure on the part of Bank to
        exercise any right described herein or in such other documents shall not constitute a waiver of such right or preclude Bank’s subsequent exercise thereof. If any notice of sale or other intended disposition of the collateral is required by law to
        be given, Borrower hereby agrees that a notice sent in compliance with applicable law or if applicable law does not define the required notice period then at least ten (10) days prior to such action shall constitute reasonable notice to Borrower. 
        If the proceeds of any collateral securing this Note disposed of by Bank are insufficient to pay this Note in full, Obligor shall remain fully obligated for any deficiency.

      

      

      For purposes of executory process, Obligor hereby acknowledges the debt created by this Note, confesses judgment in favor of Bank for the full amount of the debt evidenced by this Note, and consents to enforcement by
        executory process.  To the extent permitted by law, Obligor hereby expressly waives (a) the benefit of appraisement provided for in Art. 2723 of the Louisiana Code of Civil Procedure and (b) all other rights to notices, demands, appraisements and
        delays provided by the Louisiana Code of Civil Procedure or any other applicable laws.

      

      

      FEES AND EXPENSES:  Obligor agrees to pay on demand all charges, fees, costs and/or taxes levied or assessed against Bank in connection with this Note or any collateral
        securing this Note, together with all reasonable attorneys and paralegals’ fees and expenses, and all other costs and expenses incurred by Bank in connection with the preparation, enforcement (including, without limitation, in bankruptcy, probate
        or administration proceeding or otherwise), workout, restructuring or collection of this Note, whether or not suit is filed, including such fees incurred in bankruptcy proceedings, at state and/or federal trial and appellate court levels, together
        with all other costs and expenses that may be incurred by Bank in connection with the enforcement of this Note or the preservation or enforcement of any of Bank’s rights or interests with respect to any collateral securing this Note.

      

      

      
        WAIVER:  The Borrower waive(s), on behalf of itself and each Obligor,  presentment, demand, protest, notice of dishonor, notice of demand or
            intent to demand, notice of acceleration or intent to accelerate, and all other notices, and agree(s) that no extension or indulgence to the undersigned (or any of them) or release, substitution or nonenforcement of any security, or release or
            substitution of any of the undersigned, any guarantor or any other party, whether with or without notice, shall affect the obligations of any of the undersigned. The undersigned waive(s) all defenses or right to discharge available under
            applicable law and waive(s) all other suretyship defenses or right to discharge and waives any right to receive notice of interest rate changes.

      

      

      

      
        2

        
          

        

      

      Each Obligor  also agrees Bank may, one or more times, in its sole discretion, without releasing or affecting any of its rights and without notice to or the consent of such Obligor, take any one or more of the
        following actions: (a) release, renew, extend or modify the obligations of Borrower or any other Obligor; (b) release, exchange, modify, or surrender in whole or in part Bank’s rights with respect to any collateral for this Note; (c) with the
        consent of Borrower, modify or alter the term, interest rate or due date of any payment of this Note; (d) grant any postponements, compromises, indulgences, waivers, surrenders or discharges or modify the terms of its agreements with Borrower or
        any other Obligor; (e) change its manner of doing business with Borrower or any other Obligor or person; or (f) impute payments or proceeds of any collateral furnished by any Obligor, in whole or in part to any costs, interest, or principal due on
        this Note, or to any other obligation of any Obligor to Bank, or in the event of a third party claim thereto retain the payments or proceeds as collateral for this Note without applying same toward payment of this Note, and each Obligor hereby
        expressly waives any claims or  defenses arising from any such actions.

      

      

      COMMERCIAL USE: Borrower warrants and represents to Bank and all other holders of this Note that all loans evidenced by this Note are and will be for business, commercial, or
        other similar purpose and not primarily for personal, family, or household purposes.

      

      

      SALE/ASSIGNMENT:  The Borrower acknowledge(s) that the Bank has the right to sell, assign, transfer, negotiate, or grant participations in all or any part of this Note and any
        related obligations, including, without limit, this Note, without notice to the undersigned and that the Bank may disclose any documents and information which the Bank now has or later acquires relating to the undersigned or to any collateral or to
        any Obligor or this Note in connection with such sale, assignment, transfer, negotiation, or grant.  The Borrower agree(s) that the Bank may provide information relating to this Note or relating to the undersigned to the Bank’s parent, affiliates,
        subsidiaries and service providers.

      

      

      GOVERNING LAW, JURISDICTION AND VENUE:  THIS NOTE IS MADE AND DELIVERED IN THE STATE OF LOUISIANA AND SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS THEREOF WITHOUT
          REFERENCE TO THE CONFLICTS OF LAW PRINCIPLES THAT WOULD CAUSE THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION. BORROWER AND EACH OTHER OBLIGOR PARTY TO THIS NOTE HEREBY IRREVOCABLY SUBMITS AND CONSENTS TO THE EXCLUSIVE PERSONAL JURISDICTION
          AND VENUE OF ANY STATE OR FEDERAL COURT IN LOUISIANA LOCATED IN THE SAME JUDICIAL DISTRICT AS THE OFFICE OF BANK SPECIFIED IN THE FIRST PARAGRAPH OF THIS NOTE AND AGREES THAT ALL ACTIONS OR PROCEEDINGS ARISING DIRECTLY, INDIRECTLY OR OTHERWISE IN
          CONNECTION WITH, OUT OF, RELATED TO OR FROM THIS NOTE SHALL BE LITIGATED ONLY IN ONE OF THE FOREGOING DESCRIBED COURTS. BORROWER AND EACH OTHER OBLIGOR PARTY TO THIS NOTE, FOR THEMSELVES, AND THEIR RESPECTIVE HEIRS, SUCCESSORS AND ITS ASSIGNS,
          AND FOR ANY PERSON CLAIMING UNDER OR THROUGH ANY OF THEM, HEREBY KNOWINGLY AND VOLUNTARILY WAIVES ANY AND ALL RIGHTS TO HAVE THE JURISDICTION AND VENUE OF ANY LITIGATION ARISING DIRECTLY, INDIRECTLY OR OTHERWISE IN CONNECTION WITH, OUT OF,
          RELATED TO OR FROM THIS NOTE IN ANY OTHER COURT, AND HEREBY KNOWINGLY AND VOLUNTARILY WAIVES ANY AND ALL RIGHTS TO REMOVE THIS ACTION TO, OR TO TRANSFER, DISMISS, OR CHANGE VENUE TO, ANY OTHER COURT. BORROWER AND EACH OTHER OBLIGOR PARTY TO THIS
          NOTE FURTHER ACKNOWLEDGES AND AGREES THAT NEITHER BANK NOR ANY PERSON ACTING ON BEHALF OF BANK HAS IN ANY WAY AGREED WITH OR REPRESENTED TO BORROWER OR SUCH OBLIGOR THAT THE PROVISIONS OF THIS PARAGRAPH HAVE BEEN WAIVED OR WILL NOT BE FULLY
          ENFORCED BY BANK.

      

      

      WAIVER OF JURY TRIAL. BORROWER KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAIVES,
          TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHTS BORROWER MAY HAVE TO TRIAL BY JURY IN ANY LEGAL PROCEEDING BASED ON, ARISING OUT OF, OR IN ANY WAY RELATED TO: THIS NOTE; THE OBLIGATIONS; ANY NOTES, LOAN AGREEMENTS, OR ANY
          OTHER LOAN DOCUMENT OR AGREEMENT EXECUTED OR CONTEMPLATED TO BE EXECUTED IN CONNECTION WITH ANY OF THE OBLIGATIONS OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. THIS JURY WAIVER ALSO APPLIES TO ANY CLAIM, COUNTERCLAIM, CAUSE OF ACTION OR DEMAND ARISING

          FROM OR RELATED TO (I) ANY COURSE OF CONDUCT, COURSE OF DEALING, OR RELATIONSHIP OF BORROWER, ANY OBLIGOR, OR ANY OTHER PERSON WITH BANK OR ANY EMPLOYEE, OFFICER, DIRECTOR OR ASSIGNEE OF BANK IN CONNECTION WITH THE OBLIGATIONS; OR (II) ANY STATEMENT (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PERSON BY OR ON BEHALF OF BANK TO BORROWER,
          ANY OBLIGOR, OR ANY OTHER PERSON IN CONNECTION WITH THE OBLIGATIONS, REGARDLESS OF WHETHER SUCH CAUSE OF ACTION ARISES BY CONTRACT, TORT OR OTHERWISE.  BORROWER HEREBY ACKNOWLEDGES THAT THIS WAIVER OF JURY TRIAL IS A MATERIAL INDUCEMENT TO THE
          BANK IN EXTENDING CREDIT TO THE BORROWER, THAT THE BANK WOULD NOT HAVE EXTENDED SUCH CREDIT WITHOUT THIS JURY TRIAL WAIVER, AND THAT BORROWER HAS BEEN REPRESENTED BY AN ATTORNEY OR HAS HAD AN OPPORTUNITY TO CONSULT WITH AN ATTORNEY IN CONNECTION
          WITH THIS JURY TRIAL WAIVER AND UNDERSTANDS THE LEGAL EFFECT OF THIS WAIVER.  BORROWER FURTHER CERTIFIES THAT NO PERSON HAS REPRESENTED TO IT, EXPRESSLY OR OTHERWISE, THAT BANK OR ANY OTHER PERSON WOULD NOT, IN THE EVENT OF A LEGAL PROCEEDING,
          SEEK TO ENFORCE THE FOREGOING WAIVER.

      

      

      MISCELLANEOUS: The provisions of this Note may not be waived or modified except in writing, signed by Bank.  Failure of Bank to exercise rights, remedies or options Bank may
        have upon the happening of one or more of the events giving rise to such rights, remedies or options shall not constitute a waiver of the right to exercise the same or any other right, remedy or option at any subsequent time in respect to the same
        or any other event.  The acceptance by Bank of any payment hereunder that is less than payment in full of all amounts due and payable at the time of such payment shall not constitute a waiver of the right to exercise any of the rights, remedies or
        options granted herein to Bank at that time or at any subsequent time or nullify any prior exercise of any such right, remedy or option without the express written acknowledgment of the Bank.

      

      

      If any provision of this Note shall be held to be legally invalid or unenforceable by any court of competent jurisdiction, all remaining provisions of this Note shall remain in full force and effect.

      

      

      The term Bank as used herein shall include transferees, successors, and assigns of Bank, and all rights of Bank hereunder shall inure to the benefit of its transferees, successors, and assigns. All obligations of
        Obligor shall bind Obligor’s heirs, legal representatives, successors, and assigns.

      

      

      The descriptive headings of the several sections of this Note are inserted for convenience only and shall not in any way affect the meaning or construction hereof.

      

      

      Bank may, at its option and in its sole discretion, maintain and rely upon a photocopy, electronic copy or other reproduction of this Note, and Borrower and each other Obligor, for themselves and their respective
        heirs, successors, and assigns, and any person claiming by or through any of them, hereby waive any and all objections to, and claims or defenses based upon, the failure of Bank to produce the original hereof for any purpose whatsoever.

      

      

      
        3

        
          

        

      

      This Note embodies the final, entire agreement of Borrower and Bank with respect to the subject matter hereof.  No course of dealing, course of performance, usage of trade or evidence of any prior, contemporaneous or
        subsequent oral agreements or discussions or other extrinsic evidence of any nature shall be used to contradict, vary, supplement or modify any term of this note.  There are no oral agreements between the parties.

      

      

      THIS NOTE AND ALL OTHER LOAN DOCUMENTS EMBODY THE FINAL, ENTIRE AGREEMENT OF BORROWER AND BANK AND SUPERSEDES ANY AND ALL PRIOR COMMITMENTS, AGREEMENTS, REPRESENTATIONS, AND UNDERSTANDINGS, WHETHER
        WRITTEN OR ORAL, RELATING TO THE SUBJECT MATTER HEREOF AND THEREOF AND MAY NOT BE CONTRADICTED OR VARIED BY ANY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR A SUBSEQUENT ORAL AGREEMENTS OR DISCUSSIONS OF BORROWER AND BANK.  THERE ARE NO ORAL AGREEMENTS
        BETWEEN THE BORROWER AND BANK.

      

      

      	 INTERNAL USE ONLY	 	BORROWER:	 
	 	 	 	 	 
	 	 	Viemed, Inc.	 
	 	 	 	 	 
	 	 	By: 

            	
              /s/ Casey Hoyt

            	 
	 	 	Name:  	Casey Hoyt	 
	 	 	Title:	Chief Executive Officer	 

      

      

      	 	
              Sleep Management, L.L.C.

            	 
	 	 	 	 
	 	
              By:

            	
              /s/ Casey Hoyt

            	 
	 	
              Name:

            	
              Casey Hoyt

            	 
	 	
              Title:

            	
              General Manager

            	 
	 	 	 	 
	 	
              Home Sleep Delivered, L.L.C.

            	 
	 	 	 	 
	 	
              By:

            	
              /s/ Casey Hoyt

            	 
	 	
              Name:

            	
              Casey Hoyt

            	 
	 	
              Title:

            	
              General Manager

            	 

      

      

      

      

      4EX-10.1

 Exhibit 10.1 
  

 
 September 16, 2019 
 Ovid
Therapeutics Inc. 
 1460 Broadway, Suite 15044 
 New York, NY,
10036 
  

	 	Re:	 3(a)(9) Exchange Agreement

Ladies and Gentlemen:      

This letter agreement (the “Agreement”) confirms the agreement of Ovid Therapeutics Inc., a Delaware corporation (the
“Company”), and the holders of the Common Stock listed on Schedule I attached hereto (the “Stockholders”), pursuant to which the Stockholders have agreed to exchange an aggregate of 1,262,000
shares (the “Shares”) of Common Stock, par value $0.001 per share (the “Common Stock”), beneficially owned by the Stockholders in consideration for a total of 1,262 shares of Series A Preferred Stock
of the Company (the “Preferred Shares”), which shall have the rights, preferences and privileges set forth in the Amended and Restated Certificate of Designation set forth on Exhibit A attached hereto (the
“COD”). The Preferred Shares will be convertible into a total of 1,262,000 shares of Common Stock (subject to adjustment as provided in the COD), subject to beneficial ownership conversion limitations set forth in the COD.

 In consideration of the foregoing, the Company and the Stockholders agree as follows: 

(1)    No later than the close of business on the second business day after the date hereof (the “Closing
Date”) and subject to the satisfaction or waiver of the conditions set forth herein, the Stockholders shall exchange the Shares for the Preferred Shares (the “Exchange”) in the respective amounts listed on
Schedule I. The Exchange shall be consummated pursuant to Section 3(a)(9) of the Securities Act of 1933, as amended (the “Securities Act”). On the Closing Date: (a) the Company shall file the COD with the
Secretary of State of the State of Delaware; (b) the Company and the Stockholders shall jointly and irrevocably instruct Computershare Trust Company, N.A. (the “Transfer Agent”) to cancel the direct registration
book-entry statements from the Transfer Agent evidencing the Shares; and (c) the Company shall irrevocably instruct the Transfer Agent to issue and deliver to the Stockholders the Preferred Shares in book-entry form, in the amounts and in the
names set forth on Schedule I. 
 (2)    The Company represents and warrants to each Stockholder as follows: 

(a)    Neither the Company nor any of its affiliates nor any person acting on behalf of or for the benefit
of any of the forgoing, has paid or given, or agreed to pay or give, directly or indirectly, any commission or other remuneration (within the meaning of Section 3(a)(9) of the Securities Act and the rules and regulations of the Commission
promulgated thereunder) for soliciting the Exchange. Assuming the representations and warranties of the Stockholders contained herein are true and complete, the Exchange will qualify for the registration exemption contained in Section 3(a)(9)
of the Securities Act. 
 (b)    It has the requisite corporate power and authority to enter into this
Agreement and to consummate the Exchange and such transactions shall not contravene any contractual, regulatory, statutory or other obligation or restriction applicable to the Company. 

(c)    It has reserved a sufficient number of shares of Common Stock as may be necessary to fully permit
the conversion of the Preferred Shares and the issuance of the Common Stock issuable upon conversion of the Preferred Shares, without regard to any beneficial ownership limits set forth in the COD. 

 (3)    Each Stockholder, as to itself only, represents and warrants to
the Company as follows: 
 (a)    It has the requisite power and authority to enter into this Agreement
and consummate the Exchange and such transactions shall not contravene any contractual, regulatory, statutory or other obligation or restriction applicable to such Stockholder. 

(b)    It is the record and beneficial owner of the aggregate number of shares of Common Stock and
Preferred Stock of the Company set forth opposite its name on Schedule I, which shares constitute all of the shares of Common Stock and Preferred Stock beneficially owned by BVF and its affiliates. 

(c)    It is the record and beneficial owner of, and has valid and marketable title to, the Shares being
exchanged by it pursuant to this Agreement, free and clear of any lien, pledge, restriction or other encumbrance (other than restrictions arising pursuant to applicable securities laws), and has the absolute and unrestricted right, power and
capacity to surrender and exchange the Shares being exchanged by it pursuant to this Agreement, free and clear of any lien, pledge, restriction or other encumbrance. It is not a party to or bound by, and the Shares being exchanged by it pursuant to
this Agreement are not subject to, any agreement, understanding or other arrangement (i) granting any option, warrant or right of first refusal with respect to such Shares to any person, (ii) restricting its right to surrender and exchange
such Shares as contemplated by this Agreement, or (iii) restricting any other of its rights with respect to such Shares. 

(d)    Neither it nor any of its affiliates nor any person acting on behalf of or for the benefit of any of
the forgoing, has paid or given, or agreed to pay or give, directly or indirectly, any commission or other remuneration (within the meaning of Section 3(a)(9) and the rules and regulations of the Commission promulgated thereunder) for
soliciting the Exchange, and the Stockholders have received no additional consideration for the Shares other than the Preferred Shares. 

(4)    This agreement, and any action or proceeding arising out of or relating to this agreement, shall be exclusively
governed by the laws of the State of New York. 
 (5)    In the event that any part of this agreement is declared by any
court or other judicial or administrative body to be null, void or unenforceable, said provision shall survive to the extent it is not so declared, and all of the other provisions of this agreement shall remain in full force and effect. In such an
event, the Stockholders and the Company shall endeavor in good faith negotiations to modify this agreement so as to affect the original intent of the parties as closely as possible. 

(6)    No provision of this Agreement may be amended or modified except upon the written consent of the Company and each
of the Stockholders, and no provision hereof may be waived other than by a written instrument signed by the party against whom enforcement of any such waiver is sought. 

(7)    This Agreement may be executed in two or more counterparts, each of which shall constitute an original, but all of
which, when taken together, shall constitute but one instrument, and shall become effective when one or more counterparts have been signed by each party hereto and delivered to the other parties. 

[SIGNATURE PAGE FOLLOWS] 

  
 2 

 Please sign to acknowledge agreement with the above terms and return to the undersigned.

  

			
	Common Stockholder:
	
	Biotechnology Value Fund, L.P.
	
	By: BVF Partners L.P., General Partner
		
	By:	 	 BVF, Inc., General Partner

		
	By:	 	 /s/ Mark Lampert

	Name:	 	Mark Lampert
	Title:	 	President

  

			
	Biotechnology Value Fund II, L.P.
	
	By: BVF Partners L.P., General Partner
		
	By:	 	 BVF, Inc., General Partner

		
	By:	 	 /s/ Mark Lampert

	Name:	 	Mark Lampert
	Title:	 	President

  

			
	Biotechnology Value Trading Fund OS, L.P.
	
	By: BVF Partners OS, Ltd., General Partner
	
	By: BVF Partners L.P., Sole Member
		
	By:	 	 BVF, Inc. General Partner

		
	By:	 	 /s/ Mark Lampert

	Name:	 	Mark Lampert
	Title:	 	President

 Signature Page to 3(a)(9) Exchange Agreement 

 Acknowledged and agreed to: 

Ovid Therapeutics Inc.
  

			
	By:	 	 /s/ Thomas Perone

	Name:	 	Thomas Perone
	Title:	 	General Counsel and Corporate Secretary

 Signature Page to 3(a)(9) Exchange Agreement 

 SCHEDULE I 
  

																	
	 Stockholder
	  	Shares of
Common Stock
Beneficially
Owned	 	  	Shares of Series A
Preferred Stock
Beneficially
Owned	 	  	Shares of
Common Stock
to be
Exchanged	 	  	Shares of Series A
Preferred
Stock to be
Received	 
	 Biotechnology Value Fund, L.P.
	  	 	1,787,782	 	  	 	600	 	  	 	633,000	 	  	 	633	 
	 Biotechnology Value Fund II, L.P.
	  	 	1,433,747	 	  	 	496	 	  	 	538,000	 	  	 	538	 
	 Biotechnology Value Trading Fund OS, L.P.
	  	 	256,794	 	  	 	87	 	  	 	91,000	 	  	 	91	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Total
	  	 	3,478,323	 	  	 	1,183	 	  	 	1,262,000	 	  	 	1,262	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 

 EXHIBIT A 

FORM OF AMENDED AND RESTATED CERTIFICATE OF DESIGNATION

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00300-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00300-of-00352.parquet"}]]