Document:

Exhibit

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Exhibit 10.17
Execution Version

[*] indicates that a confidential portion of the text of this agreement has been omitted. The non-public
information has been filed separately with the Securities and Exchange Commission.
LICENSE AGREEMENT
This Agreement is entered into by and between
VTT Technical Research Centre of Finland Ltd, (hereinafter referred to as "VTT") 
Business ID: 2647375-4
Address: Vuorimiehentie 3, P.O. Box 1000, FI-02044 VTT, Finland 
and
Dyadic International (USA), Inc. (hereinafter referred to as the "Licensee") 
Business ID: 45-0486747
Address: 140 Intracoastal Pointe Drive, Jupiter, FL 33477-5094
The above mentioned parties hereinafter also referred to as "Party" or "Parties".
WHEREAS, VTT has developed certain technology related to expression systems for micro- organisms and to promoters in expression systems;
WHEREAS, VTT has made an invention(s) related to the aforementioned technology and has filed patent application for the purpose of protecting the invention.
WHEREAS, the Licensee is interested in obtaining a right to use the invention and/or related patent(s) defined in more detail below in this Agreement, in its business; and
WHEREAS, VTT is desirous of granting such right to the Licensee in accordance with the terms and conditions of this Agreement; and
NOW THEREFORE, in consideration of the foregoing, the Parties agree as follows:
1.    DEFINITIONS
		
	1.1
	"Patent Rights" shall mean VTT's patent rights under the patent application nr. FI 20165137 (filed 22.2.2016) titled "Expression system for eukaryotic micro-organisms", and its counterparts in different countries claiming priority from this patent application.

		
	1.2
	"Licensed Products" shall mean any and all products that are within the Patent Rights manufactured, have manufactured, sold or otherwise supplied by the Licensee, Dyadic Group Companies and their sub-licensee(s).

		
	1.3
	"Effective Date" shall mean the date of the latest signature of this Agreement by the Parties.

		
	1.4
	"Invention" shall mean inventions described in the Patent Rights, i.e. an expression system for a eukaryotic microorganism, host, a host comprising said expression system, and a method for producing a desired protein product by using said host; a method for identifying a universal core promoter, a universal core promoter obtainable by said 

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method, and an expression system, a eukaryotic micro-organism host and method for producing a protein product by using a universal core promoter.
		
	1.5
	"Field" shall mean protein production in pharmaceutical applications in connection with Cl strains.

		
	1.6
	"Cl strain" shall mean any fungal strains that have taxonomy of either (a) [*], (b) [*] or (c) [*].

		
	1.7
	"Sub-license Agreement" means a written agreement between the Licensee and its sub• licensee (including also Dyadic Group Companies) concerning user rights granted to the Patent Rights and/or the Invention covered by the Patent Rights.

		
	1.8
	"Dyadic Group Companies" shall mean Licensee and companies that are controlled by the Licensee. Control shall mean the holding of more than 50% of the nominal value of the issued share capital in the legal entity concerned, or of a majority of the voting rights of the shareholders of that entity.

		
	1.9
	"Commission" shall mean Commission Contract between VTT Technical research Centre of Finland and Dyadic International, signed 5.9.2016.

2.    GRANT OF LICENSE; RIGHTS BY LICENSEE
		
	2.1
	Grant of License

VTT hereby grants to Licensee, a worldwide, non-exclusive, and non-transferable right and license to use the Invention covered by the Patent Rights to manufacture, have manufactured, sell, use, distribute, and market Licensed Products in the Field . Furthermore, the Licensee and its sub-licensees are allowed to modify, improve and/or develop independently the Cl Strains, using Patent Rights, e.g. in case of expressing new target proteins or modification of the functional components of the synthetic promoter system after the project performed under the Commission between the Parties has ended. Such improvements made after the project under the Commission shall be the property of the Licensee. The right to modify, improve and/or develop improvements and/or the use of such improvements is limited to CI Strains in the Field. For the avoidance of doubt, improvements made by VTT to the technology covered by Patent Rights shall be the property of VTT.
The Patent Rights shall remain the property of VTT and it is understood that, in addition to the rights expressly granted to the Licensee under this Agreement, no licence or right of use under any patent or patentable right, copyright, trademark or other proprietary right, or pertaining to any materials or information belonging to VTT is granted or conveyed to the Licensee by this Agreement.
The use of VTT's name or logo in connection with the advertising or sale of Licensed Products is prohibited, without prior written consent of VTT.

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	2.2.
	Right to Sub-license

Licensee, and Dyadic Group Companies with whom the Licensee concludes a Sub-License Agreement shall, subject to the payment by the Licensee of the sub-license fee(s) stated in Clause 3.2, have the right to grant sub-licenses to the Patent Rights (the promoter technology) non-exclusively solely in connection with sales and/or licensing of the Licensee's Cl platform and/or sales or licensing of Licensed Products in the Field. The sub• licenses shall solely be made through Sub-license Agreements. The Licensee shall inform VTT of all of its sub-licensees, and Sub-license Agreements under this Agreement immediately when such Sub-license Agreement is concluded. Sub-licensees of the Licensee except Dyadic Group Companies shall not have the right to further sub-license the Patent Rights. The Licensee shall, however, in any case remain the sole point of contact towards VTT regarding the Patent Rights and sub-licenses granted. Furthermore, the Licensee shall ensure that the Sub-license Agreements contain the same limitations regarding the use of the Patent Rights as stated in this Agreement and the Licensee shall be responsible for the actions of Dyadic Group Companies and actions of sub-licensees regarding the Patent Rights and compliance with said limitations.
3.    PAYMENTS
		
	3.1
	First Lump Sum Payment

The Licensee shall pay VTT for the license herein granted a non-refundable lump sum payment in the amount of [*] euros when the Licensee a) first uses the technology covered by the Patent Rights to manufacture or to have manufactured Licensed Products; b) makes the first sale of a Licensed Product; c) concludes a Sub-license Agreement; or d) on the 31st of July 2019, whichever occurs first. The Licensee shall promptly notify VTT of the aforementioned triggering events by e-mail to the address identified in Clause 8.1, and VTT shall invoice the first lump sum payment promptly after receipt of said notice, or in case d) occurs first, VTT shall invoice the first lump-sum payment on the 31st of July 2019.
		
	3.2.
	Sub-license Fee

Licensee shall pay a sub-license fee in the amount of [*] euros for each Sub-license Agreement concluded by the Licensee and/or by Dyadic Group Companies. Said sub-license fee shall be invoiced by VTT promptly after receipt of the Licensee's notification(s) that a Sub-license Agreement(s) has been concluded by the Licensee or Dyadic Group Companies. The sub-license fee shall not apply to sub-licenses granted by Licensee to Dyadic Group Companies.
		
	3.3
	Annual Fee

The Licensee shall pay VTT a non-refundable annual fee in the amount of [*] euros.
The payment shall be invoiced by VTT in February of each year this Agreement is in force, starting in February 2020.
		
	3.4
	Audit

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Licensee shall keep, and shall cause Dyadic Group Companies and sub-licensees to keep, accurate records and books of account of all development processes related to the technology covered by the Patent Rights. Furthermore, Licensee and Dyadic Group Companies shall keep accurate records of any Sub-license Agreements concluded under this Agreement. The Licensee and shall permit VTT to engage a certified public accounting firm to examine such books and records for auditing purposes at any time during normal business hours. In case the audit shows that the Licensee has failed to notify VTT of Sub-license Agreements concluded, the Licensee shall immediately pay VTT the sub-license fee(s) that should have been paid under this Agreement and the interest stated in Clause 3.5 calculated from the day when the Sub-license Agreement was concluded.
		
	3.5
	Payment Terms

All invoices shall be payable within thirty (30) days from the date of the relevant invoice. Value added tax and any taxes, duties or charges imposed by authorities outside of Finland shall be added, if applicable, to the payments. Interest on late payments shall be determined in accordance with the Finnish Interest Act 633/1982. Possible debt collection charges shall be added to the invoice.
4.    LIABILITY
		
	4.1
	No Warranties

VTT warrants that it is the owner of the Patent Rights. VTT warrants that up until the Effective Date, the validity of the Patent Rights has not been challenged and there have been no past claim and that there are no pending claims or actions brought against VTT regarding the Patent Rights.
Apart from the aforementioned, the Patent Rights are provided "AS IS" and VTT makes no representations or warranties with respect to the Patent Rights and/or inventions covered by the Patent Rights, including but not limited to warranties regarding commercial utility, merchantability or fitness for any particular purpose, absence of a latent or other defect, validity, enforceability or that the use of the Patent Rights, and/or inventions covered by the Patent Rights will not infringe any patent, copyright, other proprietary or property rights of others. VTT does not guarantee the patentability of any inventions included in the Patent Rights.
		
	4.2
	Liability

The Licensee shall bear any product liability as well as any other liability for the commercial utilization of the Patent Rights and/or the inventions covered by the Patent Rights. The Licensee shall be solely responsible for, and VTT shall have no obligation to honour, any warranties that Licensee provides to its customers with respect to the Patent Rights and /or Licensed Products. The Licensee shall indemnify and hold VTT harmless from and against damages and losses regarding the aforementioned.
VTT shall not be liable to Licensee, its successors, assigns,sub-licensees, or affiliates for any loss of profits, loss of business, interruption of business, nor for indirect, special or consequential damages of any kind whether under this Agreement or otherwise, even if VTT has been advised of the possibility of such loss. 

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VTT's liability shall, in all cases be limited to the sum of payments received from the Licensee under this Agreement, unless damages are caused by wilful act or gross negligence.
5.    PATENTS AND PATENT INFRINGEMENT
		
	5.1
	Patents

For the term of this Agreement, VTT shall be responsible for the application, maintenance and prosecution of the Patent Rights. VTT shall also pay the costs arising out of the application, maintenance and prosecution of the Patent Rights. VTT shall take reasonable steps to apply and maintain the Patent Rights.
The Patent Rights will enter into PCT phase and national phase already during the Commission and it is agreed that VTT shall continue the patent application process regarding said patent application in the USA and in Europe as an EP patent application aiming at validations in DE, GB, and FR. Should the Licensee wish to continue the patent application in any other countries, it may request VTT to do so at least 45 days prior to the relevant deadline in the application process, in which case the Licensee shall pay VTT all the patenting costs arising out of such other countries as they occur.
VTT does not, however, guarantee the patentability of any inventions included in the Patent Rights.
		
	5.2
	Patent Infringement by Licensee

In the event that Licensee is sued by a third party for patent infringement because of its exercise of the license granted herein, Licensee shall defend the suit at its expense, but VTT may reasonably cooperate, at Licensee's request and expense, in the conduct of the defence, however, VTT shall have no obligation to participate in the defence of any infringement suits or actions.
		
	5 .3
	Patent Infringement by Others

In the event that any infringement or suspected infringement of the Patent Rights comes to the attention of either Party, it shall promptly notify the other Party thereof.
Upon the occurrence of any infringement or suspected infringement of the Patent Rights, VTT and the Licensee shall as soon as practicable consult to decide what steps shall be taken to prevent or terminate such infringement. VTT or the Licensee shall take all such steps as may be agreed by them, including the institution of legal proceedings, where necessary, in the name of one of the Parties or in the joint names of VTT and the Licensee as appropriate. For the avoidance of doubt, neither Party shall have any obligation to initiate or take part in any specific actions or proceedings.
6.    CONFIDENTIALITY
Both Parties shall keep confidential and not disclose to third parties during the term of this

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as any other confidential information received from the other Party in connection with this Agreement. The confidential information received from the other Party shall only be used for the purposes of performing the Parties' rights and obligations under this Agreement.
The obligations regarding confidentiality shall not concern information that the receiving Party can show:
		
	a)
	is or becomes published or otherwise generally available to the public without violation of this Agreement; or

		
	b)
	is already known to the receiving Party at the time of disclosure; or

		
	c)
	is lawfully obtained by the receiving Party from a third party without any restrictions on confidentiality; or

		
	d)
	is independently developed by the receiving Party without any use of confidential information.

If the receiving Party is required, pursuant to an administrative or a judicial action or subpoena, to disclose disclosing Party's confidential information, the receiving Party shall have the right to make such disclosure, provided to the extent it is lawfully allowed to do so, it shall prior to any such disclosure notify the disclosing Party and give the disclosing Party the opportunity to seek any legal remedy it considers necessary to protect its confidential information.
Notwithstanding the foregoing, it is acknowledged that this is a non-exclusive license and VTT has also other commitments regarding the Patent Rights and therefore it is agreed that VTT shall have the right to disclose the general content of this Agreement to other licensees or research partners in case needed to show compliance with such other commitments or licenses.
7.    TERM AND TERMINATION
		
	7.1
	Term

The term of this Agreement and the rights and licenses granted hereunder shall commence on the Effective Date and shall expire when the last patent included in the Patent Rights expires, unless terminated earlier in accordance with this Section 8. in case this Agreement expires due to the expiration of all patents included in the Patent Rights the Licensee, Dyadic Group Companies and their sub-licensees shall retain a fully paid up, worldwide right to utilise the technology covered by the Patent Rights as they see fit.
Notwithstanding the foregoing, the Licensee, in its discretion can terminate this agreement by a written notice to VTT at least thirty (30) days prior to the termination. In case of termination of this Agreement for any other reason except expiration of all the patents included in Patent Rights all user rights and licenses granted to the Licensee and to Dyadic Group Companies under this Agreement shall lapse from the date of termination. The termination does not have any effect on payment obligations accrued prior to such termination. Furthermore, the termination does not have any effect on the user rights of sub-licensees of the Licensee or sub-licensees of Dyadic Group Companies, provided that the Licensee has paid VTT the sub-license fee regarding each Sub-license Agreement and that the sub-licensees comply with the user rights and limitations thereto as stated in this Agreement.

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	7.2
	Default

If Licensee shall at any time default in the making of any payments, or shall commit breach of any covenant or agreement herein contained, and shall fail to remedy any such default or breach within thirty (30) days after receipt by Licensee of written notice thereof from VTT, VTT may, at its option, cancel this Agreement and revoke the rights and licenses herein granted, by notice in writing to such effect.
Both Parties shall have the right to terminate this Agreement immediately in case the other Party essentially breaches the terms of this Agreement and does not remedy such breach within 30 days after it has received a written notice from the other party identifying the said breach. In case of termination all rights granted to the Patent Rights shall lapse. The termination does not have any effect on payment obligations accrued prior to such termination.
		
	7 .3
	Insolvency

If the Licensee becomes insolvent, enters into bankruptcy or liquidation or any other arrangement for the benefit of its creditors, this Agreement and the licenses herein granted shall thereupon automatically terminate.
		
	7.4
	Survival of Rights

Provisions the legal effects of which are meant to survive the expiration or termination of this Agreement shall survive the termination or expiration of this Agreement.
		
	8.
	MISCELLANEOUS

		
	8.1
	All notices, documents, statements, reports and other writings required or permitted to be given by the terms of this Agreement shall be sent either by mail or by e-mail, properly addressed to VTT or Licensee at their following addresses:

VTT:
Address: VTT, IPR Management I License Agreements, P.O. Box 1000, FI-02044 VTT, Finland
E-mail: IP.agreements@vtt.fi
Contact person: [*]
Licensee:
Address: 140 Intracoastal Pointe Drive, Jupiter, FL 33477-5094
E-mail: memalfarb@dyadic.com, JLatiuk@dyadic.com or HZosiak@dyadic.com
Contact person: Mark Emalfarb, Julie Latiuk or Heidi Zosiak (phone 1-561-743-8333)
Invoices shall be sent to the Licensee to the following address: 140 Intracoastal Pointe Drive, Jupiter, FL 33477-5094.

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	8.2
	No Waiver

A waiver by either party of a breach or violation of any provision of this Agreement will not constitute or be construed as a waiver of any other breach or violation of this Agreement.
		
	8.3
	Governing Law and Settlement of Disputes

This Agreement shall be subject to laws of Finland excluding its principles on conflict of laws.
Any disputes arising out of or in connection with this Agreement which cannot be solved amicably, shall be submitted to arbitration procedure and shall be finally settled under the Arbitration Rules of the International Chamber of Commerce by one or three arbitrators appointed by the said the Rules. The proceedings shall take place in Helsinki, Finland, and shall be held in English.
		
	8.4
	Entire Agreement

This Agreement constitutes the entire understanding of the Parties relating to the Patent Rights and supersedes all prior understandings and agreements. No modification or amendment of this Agreement shall be valid or binding except if in writing signed by each of the Parties.
		
	8.5
	Assignment, Binding effect

No rights hereunder may be assigned and no duties hereunder may be delegated by Licensee except with the express prior written consent of VTT. This Agreement may not be transferred in any manner including to a successor in interest by merger, by operation of law, assignment, purchase or otherwise, except with the prior written consent of VTT. Notwithstanding the foregoing, in case such transfer or merger is incident to transfer or merger of the entire business of Licensee, or if the business operations of the Licensee related to the Patent Rights are sold to a third party, a transfer is allowed provided that the Licensee promptly notifies VTT of such transfer. All prohibited transfers and/or assignments shall be null and void.
Subject to the foregoing, this Agreement and the rights and licenses herein granted shall be binding upon and shall inure to the benefit of VTT, Licensee and their successors and permitted assigns.
		
	8.6
	Counterparts

This Agreement has been drawn up in two (2) originals, one for each party.

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IN WITNESS WHEREOF, the Parties hereto have duly executed this Agreement.

	
				
	VTT Technical Research Centre of Finland Ltd

	 
	Date
	17.3.2017
	 

	 
	 
	 
	 

	 
	/s/ [*]
	 

	 
	Name: [*]

	 
	Title: [*]

	 
	 
	 
	 

	Licensee: Dyadic International (USA), Inc.

	 
	Date
	3/27/2017
	 

	 
	 
	 
	 

	 
	/s/ Mark Emalfarb
	 

	 
	Name: Mark Emalfarb

	 
	Title: CEODocument

Exhibit 10.1

AMENDMENT NO. 2 TO REVOLVING CREDIT AGREEMENT
This Amendment No. 2 to Revolving Credit Agreement (“Amendment”) dated November 1, 2018 (“Amendment No. 2 Effective Date”) is made between Digirad Corporation, a Delaware corporation (“Borrower”) and Comerica Bank, a Texas banking association (“Bank”).
Borrower and Bank entered into a Revolving Credit Agreement dated June 21, 2017, as amended (“Credit Agreement”) providing terms and conditions governing certain loans and other credit accommodations extended by Bank to Borrower.
Borrower has failed to comply with certain terms of the Loan Agreement and has requested Bank’s waiver of any related Event of Default. Bank has agreed to grant that waiver, only on the terms and conditions set forth in this Amendment.
Accordingly, Borrower and Bank agree as follows:
1.Capitalized Terms.  In this Amendment, capitalized terms that are used without separate definition shall have the meanings given to them in the Credit Agreement.
2.    Amendments.  The Credit Agreement is amended as follows:
(a)    “Fixed Charge Coverage Ratio” which is defined in the Credit Agreement, is given the following amended definition:
“Fixed Charge Coverage Ratio” shall mean, in respect of any applicable Person(s) and for any applicable period of determination, the ratio of (a) Adjusted EBITDA for such period, less (i) cash income taxes paid for such period, less (ii), FCCR Capital Expenditures made during such period, less (iii) payments, repurchases or redemptions of stock of made by such Person during such period, less (iv) Distributions and Purchases  made by such Person during such period, to (b) (i) the Current Maturities of Long Term Debt of such Person(s) as of the last day of such period plus (ii) interest paid during such period; provided, that for the purposes of calculating the Fixed Charge Coverage Ratio: (I) for the period ending December 31, 2018, Distributions and Purchases shall be calculated for the one (1) fiscal quarter period then ending on an annualized basis; (II) for the period ending March 31, 2019, Distributions and Purchases shall be calculated for the two (2) fiscal quarter period then ending on an annualized basis; (III) for the period ending June 30, 2019, Distributions and Purchases shall be calculated for the three (3) fiscal quarter period then ending on an annualized basis; and (IV) for the period ending September 30, 2019, and for each period of determination thereafter, and Purchases shall be calculated for the four (4) fiscal quarter period then ending.”
(b)    “FCCR Capital Expenditures” which is defined in the Credit Agreement, is given the following amended definition: 
“FCCR Capital Expenditures” shall mean the greater of (a) Capital Expenditures made during such period, excluding that portion of Capitalized Leases that was not paid for in cash, or (b) $2,000,000.”
(c)    “Guarantor(s)”, which is defined in the Credit Agreement, is given the following amended definition:

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“Guarantor(s)” shall mean (a) Digirad Imaging Solutions, Inc., a Delaware corporation, (b) MD Office Solutions, a California corporation, (d) Project Rendezvous Holding Corporation, a Delaware corporation, (c) Project Rendezvous Acquisition Corporation, a Delaware corporation, (d) DMS Health Technologies, Inc., a North Dakota corporation, (e) DMS Imaging, Inc., a North Dakota corporation, (f) DMS Health Technologies-Canada, Inc., a North Dakota corporation, and (g) each Domestic Subsidiary of Borrower which has executed and delivered to the Bank a Guaranty (or a joinder to a Guaranty) and a Security Agreement (or a joinder to the Security Agreement).”
(d)    Clause (k) of “Permitted Acquisition”, which is defined in the Credit Agreement, is given the following amended definition: 
“(k)    The purchase price of such proposed new acquisition, computed on the basis of total acquisition consideration paid or incurred, or required to be paid or incurred, with respect thereto, including the amount of Debt (such Debt being otherwise permitted under this Agreement) assumed or to which such assets, businesses or business or Equity Interests, or any Person so acquired is subject and including any portion of the purchase price allocated to any non-compete agreements, (X) is less than One Million Dollars ($1,000,000), and (Y) when added to the purchase price for each other acquisition consummated hereunder as a Permitted Acquisition (not including acquisitions specifically consented to which fall outside of the terms of this definition) within a trailing twelve (12) month period, plus the amount invested in Joint Ventures within that trailing twelve (12) month period, does not exceed One Million Dollars ($1,000,000).”
(e)    Clause (g) of “Permitted Investments”, which is defined in the Credit Agreement, is given the following amended definition: 
“(g)    Creation of, or entry into, a Joint Venture, provided that, (1) both immediately before and after entry into or creation of such Joint Venture, and after giving effect to the Joint Venture, no Default or Event of Default shall have occurred and be continuing, (2) the aggregate amount invested in Joint Ventures does not exceed One Million Dollars ($1,000,000) within a trailing twelve (12) month period, and (3) the aggregate amount invested in Joint Ventures plus the aggregate amount of acquisitions under clause (k) of the definition of Permitted Acquisitions (not including acquisitions specifically consented to which fall outside of the terms of that definition) does not exceed One Million Dollars ($1,000,000) within a trailing twelve (12) month period;”
3.    Representations.  Borrower represents and agrees that:
(a)    Except as expressly modified in this Amendment, (i) the representations and warranties set forth in the Credit Agreement as modified and in each of the Loan Documents remain true and correct in all respects, except to the extent that they expressly speak as of a specific prior date, and (ii) the covenants set forth in the Credit Agreement continue to be satisfied in all respects, and are legal, valid and binding obligations with the same force and effect as if entirely restated in this Amendment. 
(b)    When executed, this Amendment will be a duly authorized, legal, valid, and binding obligation of Borrower enforceable in accordance with its terms, and will not conflict with or violate 

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any of Borrower’s organization documents or any agreement, instrument, law, or order to which Borrower or any material portion of its assets is subject or bound. 
(c)    Except for events or conditions for which Bank is giving its waiver in this Amendment, there is no default continuing under the Credit Agreement, or any related document, agreement, or instrument, and no event has occurred or condition exists that is or, with the giving of notice or lapse of time or both, would be such a default.  
4.    Conditions Precedent.  The effectiveness of this Amendment is subject to Bank’s receipt of or Borrower’s satisfaction of all of the following and failure to deliver any one or more of the following by the indicated date for delivery, if any, shall constitute an Event of Default:
(a)    this Amendment and such other agreements and instruments reasonably requested by Bank pursuant hereto (including such documents as are necessary to create and perfect Bank’s interest in the Collateral), each duly executed by Borrower and any other applicable party;
(b)    execution and delivery by the Guarantors of the Acknowledgement and Consent of Guarantors as set forth below; 
(c)    payment of all of Bank’s expenses incurred through the date of this Amendment together with the costs of recording any amendment required by this Amendment and upon Borrower’s execution of this Amendment, Bank will be authorized to charge any deposit or other account of Borrower maintained with Bank for such expenses; and
(d)    such other documents and completion of such other matters as Bank may reasonably deem necessary or appropriate.
5.    Conditional Waiver of Default.  Borrower acknowledges that it is not in compliance with the Credit Agreement because it has failed to comply with Section 6.9(a) (Fixed Charge Coverage Ratio) for the period ending September 30, 2018 (“Identified Default”). Borrower has requested Bank’s waiver of the Identified Default, and Bank is willing to grant that waiver provided that (a) Borrower provides its financial statements for the fiscal ending September 30, 2018 in accordance with Section 6.1(c); (b) payment of a waiver fee to Bank in the amount set forth in the disbursement statement provided by Bank to Borrower; and (c) no other or further Default or Event of Default has occurred.  Without satisfying these conditions Bank will not waive the Identified Default. No delay on the part of Bank in the exercise of any remedy, power, right or privilege under the Credit Agreement, or any other document, instrument or agreement entered into in connection therewith, shall impair such remedy, power, right, or privilege or be construed to be a waiver of any Event of Default, and Bank hereby expressly reserves all of Bank’s remedies, powers, rights or privileges under the Credit Agreement and each other document, instrument or agreement entered into in connection therewith, at law, in equity, or otherwise, which Bank may exercise in full or in part at any time without notice or demand in its sole and unrestricted discretion. 
6.    Release of Telerythmics.  Bank hereby releases Telerhythmics, LLC from the Guaranty dated June 21, 2017 and from the Security Agreement dated June 21, 2017.
7.    No Other Changes.  Except as specifically provided in this Amendment, it does not vary the terms and provisions of any of the Loan Documents.  This Amendment shall not impair the rights, remedies, and security given in and by the Loan Documents.  The terms of this Amendment shall control any conflict between its terms and those of the Credit Agreement.

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8.    Ratification.  Except for the modifications under this Amendment, the parties ratify and confirm the Credit Agreement and the Loan Documents and agree that they remain in full force and effect.
9.    Further Modification; No Reliance.  This Amendment may be altered or modified only by written instrument duly executed by Borrower and Bank.  In executing this Amendment, Borrower is not relying on any promise or commitment of Bank that is not in writing signed by Bank.  This Amendment shall not be more strictly construed against any one of the parties as compared to any other.  
10.    Successors and Assigns.  This Amendment shall inure to the benefit of and be binding upon the parties and their respective successors and assigns.
11.    Governing Law.  The parties agree that the terms and provisions of this Amendment shall be governed by and construed in accordance with the internal laws of the State of California, without regard to principles of conflicts of law.
12.    Release and Waiver.  Borrower waives, discharges, and forever releases Bank, Bank’s employees, officers, directors, attorneys, stockholders, and their successors and assigns, from and of any and all claims, causes of action, allegations or assertions that Borrower has or may have had at any time up through and including the date of this Amendment, against any or all of the foregoing, regardless of whether any such claims, causes of action, allegations or assertions are known to Borrower or whether any such claims, causes of action, allegations or assertions arose as result of Bank’s actions or omissions in connection with the Credit Agreement, any other Loan Document, any amendments, extensions or modifications thereto, or Bank’s administration of the Indebtedness or otherwise. It is further understood and agreed that any and all rights under the provisions of Section 1542 of the California Civil Code are expressly waived by Borrower.  Section 1542 of the California Civil Code provides as follows:
A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.
13.    Expenses.  Borrower shall promptly pay all out-of-pocket fees, costs, charges, expenses, and disbursements of Bank incurred in connection with the preparation, execution, and delivery of this Amendment, and the other documents contemplated by this Amendment.  Borrower hereby authorizes Bank to charge any deposit or other account of Borrower maintained with Bank for reimbursement of any such fees, costs, charges, expenses, and disbursements. 
14.    Counterparts.  This Amendment may be executed in one or more counterparts, and by separate parties on separate counterparts, all of which shall constitute one and the same agreement.
 [end of amendment – signature page follows]

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This Amendment No. 2 to Credit Agreement is executed and delivered as of the Amendment No. 2 Effective Date.
	
		
	Comerica Bank

By:    /s/ Marcus A. Di Fiore         
            Marcus A. Di Fiore
Title:    Vice President

	Digirad Corporation

By:   /s/ Matthew G. Molchan         
   Matthew G. Molchan
Its:     Chief Executive Officer and President

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Acknowledgement and Consent of Guarantors
Each of the undersigned have guaranteed the payment and performance of the Indebtedness pursuant to the Guaranty dated June 21, 2017 (“Guaranty”).  Each of the undersigned (a) acknowledges and consents to the execution, delivery and performance of the foregoing Amendment No. 2 to Revolving Credit Agreement, and (b) agrees that (i) its guaranty remains in full force and effect and (ii) it has absolutely no defenses, claims, rights of set-off, or counterclaims against Bank under, arising out of, or in connection with, the foregoing Amendment No. 2 to Revolving Credit Agreement, the Revolving Credit Agreement, the Guaranty, or the other Loan Documents.  Each of the undersigned further represents that it is in compliance with all of the terms and conditions of the Guaranty. 
Dated November 1, 2018
	
		
	DIGIRAD IMAGING SOLUTIONS, INC.

By:   /s/ Matthew G. Molchan         
   Matthew G. Molchan
Its:   Chief Executive Officer and President

	PROJECT RENDEZVOUS ACQUISITION CORPORATION 

By:    /s/ Matthew G. Molchan         
   Matthew G. Molchan
Its:    President

	DMS HEALTH TECHNOLOGIES, INC.

By:   /s/ Matthew G. Molchan         
   Matthew G. Molchan
Its:    President

	MD OFFICE SOLUTIONS

By:   /s/ Matthew G. Molchan      
   Matthew G. Molchan
Its:    Chairman of the Board 

	DMS IMAGING, INC.

By:   /s/ Matthew G. Molchan         
   Matthew G. Molchan
Its:   President

	PROJECT RENDEZVOUS HOLDING CORPORATION

By:    /s/ Matthew G. Molchan     
   Matthew G. Molchan
Its:   President

	DMS HEALTH TECHNOLOGIES-CANADA, INC.

By:    /s/ Matthew G. Molchan         
   Matthew G. Molchan
Its:    President

	 

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