Document:

Exhibit 10.4

      

      

      

      
        FIRST AMENDMENT TO COMMERCIAL

        BUSINESS LOAN AGREEMENT FOR TERM LOANS AND
                LINES OF CREDIT

        

        

        THIS FIRST AMENDMENT TO
              COMMERICAL BUSINESS LOAN AGREEMENT FOR TERM LOANS AND LINES OF CREDIT (this “First Amendment”) is dated March 19, 2019, by and among VIEMED, INC., a Delaware corporation (“Viemed”), SLEEP MANAGEMENT, L.L.C. (“Sleep Management”), a Louisiana
            limited liability company, and HOME SLEEP DELIVERED, L.L.C. (“Home
                Sleep”), a Louisiana limited liability company (collectively, the “Borrower”), and HANCOCK WHITNEY BANK, a Mississippi state chartered bank, formally known as Whitney Bank (the “Lender”).  The Borrower, Guarantor, if any, and any other person who may be liable now or in the future for any portion of any Loans are referred to as “Obligor”, which term means individually, collectively, and interchangeably any, each and/or all of them.

        

        

        R E C I T A L S:

        

        

        A.          Borrower and Lender are parties to that certain
            Commercial Business Loan Agreement for Term Loans and Lines of Credit dated February 21, 2018, pursuant to which the Lender established in favor of Borrower, among other things, a revolving line of credit in the maximum aggregate principal
            amount of $5,000,000.00 (collectively, with all past, present and future amendments and/or restatements, the “Agreement”).

        

        

        B.           Borrower has now applied to Lender for a two (2)
            year renewal and increase of Borrower’s existing revolving line of credit.

        

        

        C.           Lender, subject to the terms and conditions of this First Amendment, has agreed to Borrower’s requests.          

        

        

        NOW, THEREFORE, in consideration of the
            mutual covenants hereunder set forth, Borrower and Lender do hereby covenant and agree to amend the Agreement as follows:

        

        

        1.           Revisions to Article A – The Loan or Loans.

        

        

        A.           The first subsection of
            Section A of the Agreement, entitled “A LINE OF CREDIT LOAN,” is hereby deleted in its entirety and replaced as follows:

        

        

        A LINE OF
              CREDIT LOAN  (the “Line of Credit,” which term shall include all renewals, extensions or modifications thereof) to Borrower in the maximum principal amount of Ten Million and no/100 ($10,000,000.00) dollars, bearing interest at the
            rate of One Month ICE LIBOR plus 3.00% per annum from date of advance until paid, payable in monthly installments of interest only, payable in
            arrears, commencing on April 19, 2019, and continuing on the same day of each month thereafter, with a final payment of all principal and outstanding interest due and payable on March 19, 2021.  The Line of Credit shall be represented by Bank’s
            standard form of commercial note containing additional terms and conditions (the “Revolving Note”).  The term “One Month ICE LIBOR” shall have the meaning set forth in the Revolving Note, and, notwithstanding any other provision of this
            Agreement, at no time shall the interest rate on the Revolving Note be less than four percent (4.00%) per annum.

         

          

         

        
          
            	
                    1st Amendment

                  	
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        B.           The second subsection of
            Section A of the Agreement, entitled “BORROWING BASE,” is hereby deleted in its entirety

        

        

        C.          The third subsection of Section
            A of the Agreement, entitled “LETTER OF CREDIT SUBLIMIT,” is hereby deleted in its entirety and replaced as follows:

        

        

        LETTER OF CREDIT SUBLIMIT.  As

            a subfeature under the Line of Credit, the Bank may from time to time issue letters of credit for the account of Borrower (each a “Letter of Credit”); provided, however, that (i) the form and substance of each Letter of Credit shall be subject
            to approval by Bank in its sole and absolute discretion; (ii) Borrower shall execute and deliver any and all such applications, letter of credit reimbursement agreements and/or other documents or instruments as Bank shall require; and (iii)
            Borrower shall pay to Bank such fees as Bank normally and customarily charges for the issuance of Letters of Credit.  In addition, the aggregate drawn and undrawn amount of all outstanding Letters of Credit shall not at any time (i) exceed the
            total aggregate amount of $2,000,000.00; and/or (ii) exceed the remaining availability under the Line of Credit.

        

        

        2.           Revisions to Article C – Use of Proceeds.  Section C of the Agreement, entitled “Use of Proceeds,”
            is hereby deleted in its entirety and replaced as follows:

        

        

        
          
            
              C.          USE OF PROCEEDS.  The proceeds from the Loan will be used for the following purpose(s):  (1) working capital and general corporate purposes with a letter of credit sublimit of $2,000,000.00; and (2)
                    Permitted Acquisitions pursuant to Subsection D(15), below.

            

          

        

        

        

        3.           Revisions to Article D – Representations, Warranties and Covenants.

        

        

        A.        Section
            D(3)(a)(iii) of the Agreement, entitled “Borrowing Base Certificates,” and Section D(3)(a)(iv) of the Agreement, entitled “Accounts Receivable Aging,” are hereby deleted in their entirety.

        

        

        B.           New Section D(3)(a)(iii),
            entitled “Compliance Certificate,” is hereby added to the Agreement as follows:

        

        

        (iii)        Compliance Certificate:  As soon as available, but in no event later than forty-five (45) days after the close of the first three (3) quarters of the fiscal year (March 31st, June 30th, and September 30th) and one hundred twenty (120) days after the close of final quarter of the fiscal year (December 31st), a current compliance
            certificate of Borrower, in the form attached hereto as Exhibit “A”, certified by an appropriate executive officer of Obligor.

        

        

        
          
            	
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                    Hancock Whitney Bank

                  

          

          
            

        

        C.           Subsection D(8) of the
            Agreement, entitled “Financial Covenants and Ratios,” is hereby deleted in its entirety and replaced as follows:

        

        

        
          
            
              
                
                  (8)          Financial Covenants and Ratios.  Borrower shall comply with the following covenants and ratios:

                

              

            

          

        

        

        

        (a)         Total Debt to Adjusted EBITDA Ratio.  Borrower, on a consolidated basis, shall maintain a
              maximum “Total Debt to Adjusted EBITDA Ratio” of not more than 1.50 to 1.00.  Total Debt to Adjusted EBITDA Ratio shall equal Total Debt divided by Adjusted EBITDA.  “Total Debt” is defined as debt for borrowed money plus capitalized leases. “Adjusted EBITDA” is defined as net income before taxation plus depreciation

            expense plus amortization expense plus interest expense plus stock-based compensation plus non-cash/non-recurring gain or loss.  Non-cash/non-recurring gains or losses shall not exceed $500,000.00 without
            Bank’s approval.  This covenant shall be tested quarterly (as of March 31st, June 30th, September 30th, and December 31st) on a rolling four quarters basis.

        

        

        (b)         Fixed Charge Coverage Ratio.   Borrower, on a consolidated basis, shall maintain a minimum “Fixed Charge Coverage Ratio” of not less than 1.35 to 1.00. 
            “Fixed Charge Coverage Ratio” shall equal (Adjusted EBITDAR less dividends) divided by current maturing long-term debt (prior period) plus current maturing capital lease obligations (prior period) plus interest expense plus lease expense (COGS &
            G&A) plus cash taxes.  Current maturing long-term debt (CMLTD) and current maturing capital lease obligations (CMCLO) shall
            exclude any balloon payments and the maturity of the Revolving Note.  “Adjusted EBITDAR” is defined as net income before taxation plus depreciation

            expense plus amortization expense plus interest expense plus stock-based compensation plus non-cash/non-recurring gain or loss plus lease expense (COGS & G&A). 
            Non-cash/non-recurring gains or losses shall not exceed $500,000.00 without Bank’s approval.  This covenant shall be tested quarterly (as of March 31st, June 30th, September 30th, and December 31st) on a rolling four quarters basis.

        

        

        (c)          Minimum Working Capital.  Borrower shall maintain minimum “Working Capital” of at least $2,500,000.00.  “Working Capital” is defined as total current assets less total current liabilities.  This covenant shall be tested quarterly (as
              of March 31st, June 30th, September 30th, and December 31st) beginning September 30, 2019.

        

        

        
          
            	
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        D.           New Subsection D(15),
            entitled “Acquisitions,” is hereby added to the Agreement as follows:

        

        

        
          
            
              (15)        Acquisitions.  Borrower shall comply with the following terms and conditions with respect to any Acquisition during the term and existence of this Agreement.

            

          

        

        

        

        (i)           Definitions.  As used in this Agreement, the following capitalized
            terms shall have the meanings set forth herein:

        

        

        (a)         “Acquisition” means the acquisition (or series of related acquisitions), whether by purchase, merger, consolidation, or otherwise, by Borrower
              (or any combination of Borrower) of (i) the majority of the capital stock of, (ii) the majority of the assets of (whether by value, quantity, or otherwise), and/or (iii) an otherwise controlling interest in, any Target Entity.

        

        (b)        “Consideration” means any and all items of value paid or given by Borrower in an Acquisition, whether in cash,
              securities, assets (whether tangible or intangible), services, instruments, indebtedness, guaranties, and/or other items of value (or any combination thereof), and regardless of whether such value is paid or given at the closing of the
              Acquisition or at a later date (or any combination thereof).

        

        

        (c)       “Permitted Acquisition” means any Acquisition satisfying each of the requirements set forth in Subsection
              D(15)(ii), below.

        

        

        
          
            
              (d)         “Target Entity” means the entity, or division or line of business of such entity, which is the subject of an Acquisition.

            

          

        

        

        

        (e)         “Target Entity Information” means (1) brief description of the proposed Acquisition; (2)

            a copy of the most recent drafts of the Acquisition documents and, at least one Business Day prior to the closing of an Acquisition, an executed copy of the Acquisition agreement and any ancillary documents related thereto as required by the
            Lender; (3) a description of the Acquisition consideration; (4) an organizational chart of the Borrower taking into account the Acquisition; (5) Lien search results and lien releases regarding the Target Entity; (6) Payoff letters for outstanding debt of the Target Entity; (7) for Acquisitions involving Consideration of $3,000,000.00 or more, upon the request of Lender, an externally generated quality of earnings report; (8) Financial statements of the proposed Target Entity (balance
            sheets, income statements, and statements of cash flows) by month, for the most recent 12 month period; (9) if applicable for the proposed Target Entity, any file concerning pending or threatened litigation or administrative proceedings, foreign or domestic, inquiries or investigations involving the
            Target Entity or any of its subsidiaries or the agents of the foregoing, including copies of pleadings, briefs, depositions, and correspondence; (10) a flow of funds regarding the Acquisition; and (11) Such other information about the Target Entity as may be reasonably required by Lender.

        

        

        
          
            	
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              (ii)        Permitted Acquisitions.  Borrower may close any Acquisition, and may use proceeds from the Line of Credit to form all or a portion of the
                  required Consideration for such Acquisition, upon full satisfaction by Borrower of the requirements set forth in this Subsection D(15)(ii):

            

          

        

        

        

        (a)         The Target Entity is in the same or similar line of business as Borrower as of the date of this Agreement;

        

        

        (b)         The Target Entity has its primary operations in the United States of America;

        

        

        (c)        The Acquisition has been approved by the board of directors, shareholders, and/or other controlling body of the Target Entity (without substantially replacing or bypassing the board of directors and/or other controlling body), and is
            not a “hostile” Acquisition;

        

        

        (d)      The aggregate Consideration for the Acquisition does not exceed $5,000,000.00, whether paid at closing or thereafter;

        

        

        (e)       Borrower shall have notified the Lender not less than 10 business days (or such shorter time period as may be agreed to be the Lender) prior to any such Acquisition;

        

        

        (f)        If a new subsidiary of Borrower is formed or acquired as a result of or in connection with the Acquisition, the subsidiary shall join in this Agreement and as a co-borrower on any then-existing Loans and/or promissory notes of
            Borrower;

        

        

        
          
            	
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        (g)       Any property and assets (inventory, equipment, accounts, securities, real estate, vehicles, etc.) acquired by Borrower as a result of an Acquisition, including without limitation all property and assets of any subsidiary formed or
            acquired as a result of or in connection with an Acquisition, shall be pledged as security for any then-existing Loans and/or promissory notes of Borrower;

        

        

        (h)        No default or event of default shall exist under this Agreement and/or any other Loan Documents, including with respect to the covenants on a proforma basis, prior to the Acquisition and/or as a result of such Acquisition;

        

        

        (i)          Borrower, on a consolidated basis, shall maintain a leverage ratio on a proforma basis of not more than 1.50x;

        

        

        (j)       Borrower shall have delivered to the Lender a compliance certificate evidencing Borrower’s compliance with subsections (g) and (h), above, prior to the closing of the Acquisition; and

        

        

        (k)         Borrower shall have provided Lender the Target Entity Information.

        

        

        
          
            
              (iii)         Acquisition in Excess of $5,000,000.  In addition to full compliance with the
                    requirements set forth in Subsection 15(D)(ii), above, Borrower shall obtain Bank’s prior written consent, which
                    consent may be withheld in Bank’s sole discretion, for any proposed Acquisition having Consideration in excess of $5,000,000.00.

            

          

        

        

        

        4.          Expenses.  Borrower will pay all of the costs, expenses and fees incurred in connection with the Agreement, as documented pursuant to the original Agreement, as
            modified by this First Amendment and any future amendments, including attorneys’ fees and appraisal fees.

        

        

        5.         Confirmation

                of Loan Documents and Security.  Each Obligor understands and agrees that all other terms, conditions, and provisions of the Agreement
            and/or the Loan Documents shall remain in full force and effect.  All of the liens, privileges, mortgages, security interests, priorities, and equities existing and to exist under and in accordance with the terms of the Agreement, as amended,
            the Revolving Note, and the Loan Documents are hereby extended and carried forward as security for the Agreement, the Revolving Note, the Loans, and all other indebtedness, obligations, and liabilities of the Borrower to Lender.

        

        

        
          
            	
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        6.         Representations;

                Resolutions.  As of the date hereof, and after giving effect to this First Amendment, each Obligor confirms, reaffirms, and restates the
            representations and warranties set forth in the Agreement and the Loan Documents.  Each Obligor further confirms and reaffirms each and every resolution, certificate, consent, and/or other authorization provided to Lender, and further
            represents that each such resolution, certificate, consent, and/or other authorization (i) remains in full force and effect, (ii) stands of record on the books of such Obligor, and (iii) may be relied upon by Lender, including without
            limitation the Authorizations given by Borrower and Guarantor on or about February 21, 2018, as well as any before or after.

        

        

        7.         No

                Right of Setoff; Release of Claims.  Borrower acknowledges that as of the date of this First Amendment, Borrower has no right to setoff any
            amount against the amounts owed by Borrower to Lender.  In consideration of this First Amendment, each Obligor further releases Lender from any and all claims arising on or prior to the date of this First Amendment, known or unknown, in
            connection with the Agreement, the Loans, the Revolving Note, and/or the Loan Documents.

        

        

        8.          No

                Course of Dealing.  This First Amendment shall not establish a course of dealing or be construed as evidence of any willingness on Lender’s
            part to grant other or future amendments, should any be requested, and Lender is under no obligation to grant or approve such other or future amendments.

        

        

        9.       AMENDMENT.  THE AGREEMENT AND THIS FIRST AMENDMENT ARE CREDIT OR LOAN AGREEMENTS AS DESCRIBED IN LOUISIANA REVISED STATUTES 6:1121, ET SEQ. THERE ARE NO ORAL AGREEMENTS BETWEEN LENDER AND ANY OBLIGOR.  THE AGREEMENT, AS AMENDED BY THIS FIRST AMENDMENT, THE REVOLVING NOTE, AND THE LOAN DOCUMENTS SET FORTH THE ENTIRE AGREEMENT OF THE PARTIES
            WITH RESPECT TO THE SUBJECT MATTER HEREOF AND THEREOF AND SUPERSEDE ALL PRIOR WRITTEN AND ORAL UNDERSTANDINGS BETWEEN THE PARTIES WITH RESPECT TO THE MATTERS HEREIN SET FORTH. THE AGREEMENT, AS AMENDED BY THIS FIRST AMENDMENT, MAY NOT BE
            MODIFIED OR AMENDED EXCEPT BY A WRITING SIGNED AND DELIVERED BY BORROWER AND LENDER.

         

          

        10.         Miscellaneous provisions.

        

        

        a.          This First Amendment shall be governed by and
            construed in accordance with the laws of the State of Louisiana.  This First Amendment may be executed in any number of counterparts, all of which counterparts, when taken together, shall constitute one and the same instrument.

        

        

        b.          Except as expressly amended herein, the Agreement
            and all of the terms, conditions, and provisions set forth therein shall continue in full force and effect. The Agreement, as amended by this First Amendment, is hereby ratified and confirmed by the parties hereto.

        

        c.         No novation or satisfaction of any indebtedness, obligations, and/or liabilities owed by any Obligor to Lender is intended by this First Amendment. 

        

        

        
          
            	
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                    Hancock Whitney Bank

                  

          

          
            

        

        d.            Unless specifically defined in this First
            Amendment, capitalized terms used herein shall have the meanings set forth in the Agreement.

        

        11.        USA Patriot Act.  Lender is subject to the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”) and Lender hereby notifies
            Borrower that pursuant to the requirements of the Act, Lender is required to obtain, verify, and record information that identifies Borrower, which information includes the name and address of Borrower and other information that will allow
            Lender to identify Borrower in accordance with the Act.  Borrower shall, promptly following each request by Lender, provide all documentation and other information requested by Lender in order for Lender to comply with its ongoing obligations
            under the applicable “know your customer” and anti-money laundering rules and regulations, including the Act.

        

        

        
          
            	
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        Executed by the parties as of the date set forth above.

         

          

        	 	
                Lender:

              
	 	 
	 	
                Hancock Whitney Bank,

              
	 	
                a Mississippi state chartered bank

              
	 	  
	 	
                By:

              	
                /s/ Grant Guillotte

              	 
	 	 	
                Grant Guillotte

              
	 	 	
                Senior Vice President

              
	 	  
	 	
                Borrower:

              
	 	 
	 	
                Viemed, Inc.

              

        

        

        	 	
                By:

              	
                /s/ Casey Hoyt

              	 
	 	
                

                

              	
                Casey Hoyt

              
	 	
                

                

              	
                Chief Executive Officer

              
	 	 
	 	
                Sleep Management, L.L.C.

              
	 	 
	 	
                By:

              	
                /s/ Casey Hoyt

              	 
	 	 	
                Casey Hoyt

              
	 	 	
                Member & Manager

              
	 	 	 
	 	
                Home Sleep Delivered, L.L.C.

              
	 	 
	 	
                By:

              	
                /s/ Casey Hoyt

              	 
	 	 	
                Casey Hoyt

              
	 	 	
                Member & General Manager

              

        

        

        
          
            	
                    1st Amendment

                  	
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                    Hancock Whitney Bank

                  

          

          
            

        

        EXHIBIT “A”

         

          

        
          Form Quarterly Compliance Certificate

           

        
          
 

        Hancock Whitney Bank

        Attn:  Grant Guillotte

        1301 Camellia Blvd., Suite 100

        Lafayette, LA 70508

        

        

        	

              	
                RE:

              	
                Compliance Certificate

              
	 	

              	
                Viemed, Inc., et

                      al.

              

        

        

        Dear Mr. Guillotte

        

        

        This Compliance Certificate is submitted pursuant to the requirements of that certain Commercial Business Loan Agreement for Term
            Loans and Lines of Credit (the “Agreement”), dated February 21, 2018, as amended, by and among Viemed, Inc., Sleep Management, LLC, and Home Sleep Delivered, LLC
            (collectively, the “Borrowers”), and Hancock Whitney Bank (the “Lender”).  Pursuant to the
            appropriate paragraphs of the Agreement, Borrowers certify that:

        

        

        No Defaults:  No condition, event, or act that, with or without notice or lapse of time or both, would constitute a default or event of default under the terms of the Agreement has
            occurred during (a) the three (3) month period ending ____________ 3_, 20___ (as applicable, the “Reporting Period”), or (b) the period since the submission of
            Borrower’s last Compliance Certificate, if longer than the Reporting Period.  Furthermore, the Borrowers have complied with all provisions of the Agreement.

        

        

        Financial Covenants:  Borrowers submit the following financial information for the Reporting Period in accordance with the financial covenants and ratios contained in the
            Agreement:

        

        

        I.          The Total Debt to Adjusted
            EBITDA Ratio for the Reporting Period was ______ to 1.00, as computed on a rolling four quarters basis immediately below.  The maximum allowed Total Debt
            to Adjusted EBITDA Ratio is 1.50 to 1.00.  Accordingly, the Total Debt to Adjusted EBITDA Ratio covenant set forth in Section D(8)(a) of the Agreement [has] [has
              not] been satisfied.

        

        

        	 	
                1)

              	
                Total Debt:

              	 	
                $___________

              	 
	 	 	 	 	 	 	 
	 	 	
                a.

              	
                Debt for Borrowed Money

              	
                $___________

              	 	 
	 	 	
                b.

              	
                Capitalized Leases

              	
                $___________

              	 	 

        

        

        	 	
                2)

              	
                Adjusted EBITDA

              	 	
                $___________

              	 
	 	 	 	 	 	 	 
	 	 	
                a.

              	
                Net Income

              	
                $___________

              	 	 
	 	 	
                b.

              	
                Tax Expense

              	
                $___________

              	 	 
	 	 	
                b.

              	
                Interest Expense

              	
                $___________

              	 	 
	 	 	
                c.

              	
                Depreciation Expense

              	
                $___________

              	 	 
	 	 	
                d.

              	
                Amortization Expense

              	
                $___________

              	 	 
	 	 	
                e.

              	
                Stock-based Compensation

              	
                $___________

              	 	 
	 	 	
                f.

              	
                Non-cash/recurring Gain/Loss

              	
                $___________

              	 	 

        

        

        
          
            	
                    1st Amendment

                  	
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                  RATIO (Item 1 divided by
                      Item 2)

                	
                  ______________

                

        

        

        

        II.          The Fixed Charge Coverage
            Ratio for the Reporting Period was ______ to 1.00, as computed on a rolling four
            quarters basis immediately below.  The minimum allowed Fixed Charge Coverage Ratio is 1.35 to 1.00.  Accordingly, the Fixed Charge Coverage Ratio covenant set forth in Section D(8)(b) of the Agreement [has] [has not] been satisfied.

        

        

        	 	
                1)

              	
                Adjusted EBITDAR less Dividends

              	
                $___________

              	 
	 	 	 	 	 	 	 
	 	 	
                a.

              	
                Net Income

              	
                $___________

              	 	 
	 	 	
                b.

              	
                Tax Expense

              	
                $___________

              	 	 
	 	 	
                b.

              	
                Interest Expense

              	
                $___________

              	 	 
	 	 	
                c.

              	
                Depreciation Expense

              	
                $___________

              	 	 
	 	 	
                d.

              	
                Amortization Expense

              	
                $___________

              	 	 
	 	 	
                e.

              	
                Stock-based Compensation

              	
                $___________

              	 	 
	 	 	
                f.

              	
                Non-cash/recurring Gain/Loss

              	
                $___________

              	 	 
	 	 	
                g.

              	
                Lease Expense (COGS/G&A)

              	
                $___________

              	 	 
	 	 	
                h.

              	
                Dividends

              	
                $___________

              	 	 

        

        

        	 	
                2)

              	
                CMLTDpp plus CMCLOpp plus
                    Interest Expense plus

              	
                $___________

              	 
	 	 	
                Lease Expense (COGS/G&A) plus
                    Cash Taxes1

              	 	 
	 	 	 	 	 	 	 
	 	 	
                a.

              	
                CMLTDpp

              	
                $___________

              	 	 
	 	 	
                b.

              	
                CMCLOpp

              	
                $___________

              	 	 
	 	 	
                c.

              	
                Interest Expense

              	
                $___________

              	 	 
	 	 	
                d.

              	
                Lease Expense

              	
                $___________

              	 	 
	 	 	
                e.

              	
                Cash Taxes

              	
                $___________

              	 	 

        

        

        	 	
                RATIO (Item 1 divided by
                    Item 2)

              	
                ______________

              

        

        

        III.       Working Capital for the
            Reporting Period was $________________, as computed immediately below.  The minimum allowed Working Capital is $2,500,000.00.  Accordingly, the Minimum
            Working Capital Requirement covenant set forth in Section D(8)(c) of the Agreement [has] [has not] been satisfied.

        

        

        
          	 	 

                	
                  
                    Total Current Assets less Total
                        Current Liabilities

                  

                	
                  $___________

                	 
	 	 	 	 	 	 	 
	 	 	
                  a.

                	
                  
                    Total Current Assets

                  

                	
                  $___________

                	 	 
	 	 	
                  b.

                	
                  
                    Total Current Liabilities

                  

                	
                  $___________

                	 	 

        

        

        

        
          

        1 CMLTD is means “current maturing long-term debt” and CMCLO is means
            “current maturing capital lease obligations.”

         

          

        
          
            	
                    1st Amendment

                  	
                    11

                  	
                    Hancock Whitney Bank

                  

          

          
            

        

         CERTIFIED this ___ day of ___________ 20__, by the undersigned executive officer of Borrowers.

         

        

        	 	
                Viemed, Inc.

              
	 	
                Sleep Management, LLC

              
	 	
                Home Sleep Delivered, LLC

              

        	 	 
	 	
                By:

              	 

              
	 	
                Print:

              	 

              
	 	
                Title:

              	 

              

        

        

        

        

        
          
            	
                    1st Amendment

                  	
                    12

                  	
                    Hancock Whitney BankExhibit 10.5

    

    

    

    
      INDEMNITY AGREEMENT

      

      

      DATED this _____ day of _________________,
          _____.

       

      BETWEEN:

       

      VIEMED HEALTHCARE, INC., a corporation
          incorporated under the laws of the Province of British Columbia

       

      (hereinafter referred to as the “Indemnifier”)

       

      - and -

       

      ____________________, an individual residing in the _________________

       

      (hereinafter referred to as the “Indemnified Party”).

       

      WHEREAS the Indemnified Party has been
          elected and/or appointed a director and/or officer of the Indemnifier;

       

      AND WHEREAS the Indemnifier desires to
          indemnify the Indemnified Party in certain circumstances in respect of liability which the Indemnified Party may incur as a result of such Indemnified Party acting as the director and/or officer of the Indemnifier;

       

      NOW THEREFORE, IN CONSIDERATION OF the
          premises and mutual covenants herein contained, and in consideration of the sum of One Dollar ($1.00) paid by the Indemnified Party to the Indemnifier (the receipt of which is hereby acknowledged) and in consideration of the Indemnified Party
          acting as the director and/or officer of the Indemnifier, the Indemnifier and the Indemnified Party do hereby covenant and agree as follows:

       

      
        
          	1.	
                  Indemnification

                

        

      

       

      
        
          	

                	(a)	
                  To the full extent allowed by applicable law, the Indemnifier irrevocably agrees to indemnify and save harmless the Indemnified Party, his or her heirs, successors and
                      legal representatives from and against any and all damages, liabilities, losses, costs, charges and expenses suffered or incurred at any time by the Indemnified Party, his or her heirs, successors or legal representatives as a result
                      or by reason of the Indemnified Party acting as the director and/or officer of the Indemnifier or by reason of any action taken or not taken by such Indemnified Party in such capacity, including without limitation, any liability
                      arising under applicable corporate and securities legislation or otherwise, and including any costs, charges and expenses the Indemnified Party may incur in enforcing this Agreement, provided that such damages, liabilities, losses,
                      costs, charges or expenses were not suffered or incurred as a direct result of such Indemnified Party’s own gross negligence, fraud, dishonesty or wilful default.

                

        

      

       

      
        
          	

                	(b)	
                  The Indemnifier irrevocably agrees:

                

        

      

       

      
        
          

        - 2 -

      

      
      
        
          	

                	(i)	
                  except in respect of an action by or on behalf of the Indemnifier to procure a judgment in its favour, to indemnify the Indemnified Party and his or her heirs, successors
                      and legal representatives against all damages, liabilities, losses, costs, charges, expenses, penalties and fines including an amount paid to settle an action where such settlement has been consented to by the Indemnifier, acting
                      reasonably, cause of action, proceeding, claim or demand whatsoever or to satisfy a judgment, reasonably incurred by the Indemnified Party in respect of any civil, criminal, quasi criminal or administrative action or proceeding to
                      which the Indemnified Party is made a party by reason of such Indemnified Party acting as the director and/or officer of the Indemnifier, if:

                

        

      

       

      
        
          	

                	(1)	
                  the Indemnified Party acted honestly and in good faith with a view to the best interests of the Indemnifier; and

                

        

      

       

      
        
          	

                	(2)	
                  in the case of a criminal, quasi criminal or administrative action or proceeding that is enforced by monetary penalty, the Indemnified Party had reasonable grounds for
                      believing that the Indemnified Party’s conduct was lawful;

                

        

      

       

      
        
          	

                	(ii)	
                  to indemnify the Indemnified Party and his or her heirs, successors and legal representatives in respect of an action by or on behalf of the Indemnifier to procure a
                      judgment in its favour, to which the Indemnified Party is made a party by reason of such Indemnified Party acting as the director and/or officer of the Indemnifier against all costs, charges and expenses reasonably incurred by the
                      Indemnified Party in connection with the action if the Indemnified Party has fulfilled the conditions set forth in Clauses 1(b)(i)(1) and (2) set out above and if the Indemnifier obtains the approval of a court of competent
                      jurisdiction to grant such indemnity;

                

        

      

       

      
        
          	

                	(iii)	
                  in the event that the approval of a court of competent jurisdiction is required to effect any indemnification granted hereunder, the Indemnifier agrees to make
                      application at its expense for and use its best efforts to obtain the court’s approval to such indemnification provided that the Indemnified Party has fulfilled the conditions set forth in Clauses 1(b)(i)(1) and (2) herein;

                

        

      

       

      
        
          	

                	(iv)	
                  notwithstanding Clauses 1(b)(i) and (ii) above, to indemnify the Indemnified Party and his or her heirs, successors and legal representatives in respect of all costs,
                      charges and expenses reasonably incurred by the Indemnified Party in connection with the defence of any civil, criminal, quasi criminal or administrative action or proceeding to which the Indemnified Party is made a party by reason of
                      such Indemnified Party acting as the director and/or officer of the Indemnifier, if the Indemnified Party:

                

        

      

       

      
        
          	

                	(1)	
                  was substantially successful on the merits in such Indemnified Party’s defence of the action or proceeding; and

                

        

      

       

      
        
          	

                	(2)	
                  fulfills the conditions set out in Clauses 1(b)(i)(1) and (2) set out above; and

                

        

      

       

      
        
          	

                	(v)	
                  to indemnify the Indemnified Party and his or her heirs, successors and legal representatives in respect of all costs, charges and expenses reasonably incurred by the
                      Indemnified Party in connection with defence of any threatened civil, criminal, quasi criminal or administrative action or proceeding or alleged wrongdoing (or settlement thereof with the consent of the Indemnifier acting reasonably)
                      against the Indemnified Party by reason of such Indemnified Party acting as the director and/or officer of the Indemnifier.

                

        

      

       

      
        
          

        - 3 -

      

      
        
          	

                	(c)	
                  For the purposes of this Agreement, the termination of any action, claim, demand or proceeding by judgement, order, settlement, conviction, plea or similar or other
                      result shall not, of itself, create a presumption either that the Indemnified Party did not act honestly or in good faith with a view to the best interests of the Indemnifier or that, in the case of a criminal, quasi criminal or
                      administrative action or proceeding that is enforced by a monetary penalty, the Indemnified Party did not have reasonable grounds for believing that his conduct was lawful.

                

        

      

       

      
        
          	

                	(d)	
                  Without limiting the generality of the foregoing and notwithstanding anything contained herein:

                

        

      

       

      
        
          	

                	(i)	
                  nothing in this Agreement shall be interpreted, by implication or otherwise, in limitation of the scope of the indemnification provided in Subsections 1(a) and (b)
                      hereof; and

                

        

      

       

      
        
          	

                	(ii)	
                  Subsection 1(b) is intended to provide indemnification to the Indemnified Party to the fullest extent permitted by applicable laws (the “Applicable Laws”) and, in the event that such Applicable Laws or the interpretation thereof are amended to permit a broader scope of indemnification (including, without
                      limitation, the deletion or limiting of one or more of the provisos to the applicability of indemnification), Subsection 1(b) shall be deemed to be amended concurrently with such amendment to the Applicable Law so as to provide such
                      broader indemnification.

                

        

      

       

      
        
          	2.	
                  Prepaid Expenses

                

        

      

       

      To the full extent allowed by applicable law, all costs, charges and expenses reasonably incurred by the Indemnified Party in
          investigating, defending or appealing any civil, criminal, quasi criminal or administrative action or proceeding, actual or threatened, covered hereunder shall, at the request of such Indemnified Party, be paid by the Indemnifier in advance or
          promptly reimbursed if paid by the Indemnified Party as may be appropriate to enable the Indemnified Party to properly investigate, defend or appeal such action or proceeding, with the understanding and agreement being herein made that, in the
          event it is ultimately determined as provided hereunder that the Indemnified Party was not entitled to be so indemnified, or was not entitled to be fully so indemnified, that the Indemnified Party shall indemnify and hold harmless the
          Indemnifier, and pay to the Indemnifier forthwith after such ultimate determination such amount or the appropriate portion thereof, so paid in advance.

       

      
        
          	3.	
                  Other Rights and Remedies

                

        

      

       

      Indemnification and advance payment of costs, charges and expenses as provided by this Agreement shall not be deemed to derogate from
          or exclude any other rights to which the Indemnified Party may be entitled under any provision of the Applicable Laws or otherwise at law, as the same may be amended from time to time, this Agreement, the Articles of the Indemnifier, any vote of
          shareholders of the Indemnifier, or otherwise, both as to matters arising out of the Indemnified Party’s position as the director and/or officer of the Indemnifier, or as to matters arising out of another capacity with the Indemnifier. The
          Indemnifier hereby agrees that it will not amend its Articles in any way that will be inconsistent with this Agreement.

       

      
        
          

        - 4 -

      

      
        
          	4.	
                  Notice of Proceedings

                

        

      

       

      The Indemnified Party agrees to give notice to the Indemnifier promptly after being served with any statement of claim, writ, notice
          of motion, indictment or other document commencing or continuing any civil, criminal, quasi criminal or administrative action or proceeding against the Indemnified Party, or receiving notice of any threatened civil, criminal, quasi criminal or
          administrative action or proceeding or alleged wrongdoing against the Indemnified Party, and in respect of which the Indemnified Party is entitled to be indemnified hereunder and the Indemnifier agrees to give notice to the Indemnified Party in
          writing within seven days of (a) being served with any such statement of claim, writ, notice of motion, indictment or other document commencing or continuing any civil, criminal, quasi criminal or administrative action or proceeding naming the
          Indemnified Party as a party, or (b) receiving notice of any such threatened civil, criminal, quasi criminal or administrative action or proceeding or alleged wrongdoing against the Indemnified Party.

       

      The Indemnifier further agrees to promptly retain counsel, who shall be reasonably satisfactory to the Indemnified Party, to represent the Indemnified
          Party in any such matter.

       

      
        
          	5.	
                  Right to Retain Other Counsel

                

        

      

       

      In any such matter the Indemnified Party shall have the right to retain other counsel to act on such Indemnified Party’s behalf,
          provided that the fees and disbursements of such other counsel shall be paid by such Indemnified Party unless (a) such Indemnified Party and the Indemnifier shall have mutually agreed to the retention of such other counsel, (b) the Indemnifier
          shall not have taken up or assumed the defense of such action, claim, demand or proceeding and employed counsel within the prescribed time after notice of such action, claim, demand or proceeding from the Indemnified Party, or (c) the named
          parties to any such action, claim, demand or proceeding (including any added third, or interpleaded parties) include the Indemnifier and the Indemnified Party and, in the written opinion of the Indemnified Party’s counsel, a copy of which is
          provided to the Indemnifier, representation by the same counsel would be inappropriate due to actual or potential differing interests between them (including the availability of different defences), in which event the Indemnifier agrees to pay
          the reasonable fees and disbursements of such counsel (on a solicitor and his own client basis).

       

      
        
          	6.	
                  Tax Gross Up

                

        

      

       

      If the Canada Revenue Agency or any provincial taxing authority, or the United States Internal Revenue Service or any state taxing
          authority, assesses the Indemnified Party on the basis that any indemnity payment received must be included in computing the Indemnified Party’s income for tax purposes, then, unless the Indemnifier elects to dispute such assessment at its
          expense and is successful in reversing the assessment, the Indemnifier will make an additional payment or payments from time to time, at such times in such amounts as will ensure the Indemnified Party is not out-of-pocket, to the Indemnified
          Party to fully ensure that, taking into account any income inclusion required in respect of any indemnity payment or such additional payment or payments, the Indemnified Party is after receiving such additional payment or payments, fully
          compensated for any actual tax liability (including any interest or penalty), or for the use of losses, deductions, credits or similar amounts used in offsetting an income inclusion or other assessed amounts relating to any indemnity payment or
          to any additional payment made under this Agreement.

       

      
        
          	7.	
                  Enforcement of Claim

                

        

      

       

      If any claim arising from any right to indemnification conferred by the Indemnifier upon the Indemnified Party pursuant to this
          Agreement is not paid in full by the Indemnifier within 30 days after a written claim has been received by the Indemnifier, the Indemnified Party may, at any time thereafter, bring suit against the Indemnifier to recover the unpaid amount of the
          claim and, if successful in whole or in part, the Indemnified Party will be entitled to be paid also the expense of prosecuting such claim.

       

      
        
          

        - 5 -

      

      
        
          	8.	
                  Insurance

                

        

      

       

      
        
          	

                	(a)	
                  The Indemnifier shall use commercially reasonable efforts to obtain and at all times maintain a policy of insurance with respect to liability relating to its directors
                      and officers, whether or not the Indemnifier would have the power to indemnify the Indemnified Party against such costs, charges, expenses, liabilities or losses under the applicable law, which policy shall (i) pursuant to its terms
                      extend to the Indemnified Party in his capacity as director and/or officer of the Indemnifier and (ii) be written, to the extent commercially available, on an occurrence basis.

                

        

      

       

      
        
          	

                	(b)	
                  In the event that the Indemnified Party is an insured under such policy and an insurable event occurs, the Indemnified Party will be indemnified promptly as agreed hereto
                      regardless of whether the Indemnifier has received the insurance proceeds. The Indemnified Party is entitled to full indemnification as agreed hereto notwithstanding any deductible amounts or policy limits contained in any such
                      insurance policy.

                

        

      

       

      
        
          	9.	
                  Indemnified Party to Cooperate

                

        

      

       

      The Indemnified Party agrees to give the Indemnifier such information and cooperation as the Indemnifier may reasonably require from
          time to time in respect of all matters hereunder.

       

      
        
          	10.	
                  Notices

                

        

      

       

      Any notice, document or other communication required or permitted by this Agreement to be given by a party hereto shall be in writing
          and is sufficiently given if delivered personally, or if sent by prepaid ordinary mail posted in Canada, or if transmitted by any form of telecommunication (which is tested prior to transmission, confirms to the sender the receipt of the entire
          transmission by the recipient and reproduces a complete written version of the transmission at the point of reception) to such party addressed as follows:

       

      
        	
                 

              	(a)	
                if to the Indemnified Party, at:

              	
                 

              
	
                 

              	
                 

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                 

              	
                 

              

        

        

        	 	 	Email address:	 	 

      

       

      	 	(b)	
              if to the Indemnifier, at:

            	 
	 	 	 	 
	 	 	
              202 North Luke Street

            	 
	 	 	
              Lafayette, Louisiana 70506

            	 

       

      

      	 	 	Email address:	 	 

      

      
        
          

        - 6 -

      

      Notice so mailed shall be deemed to have been given on the third business day (“Business Day”)
        means a day other than a Saturday, Sunday or any day other than Saturday or Sunday on which the principal commercial banks located at Toronto, Ontario are not open for business during normal banking hours) after deposit in a post office or public
        letterbox. Neither party shall mail any notice, request or other communication hereunder during any period in which Canadian postal workers are on strike or if such strike is imminent and may reasonably be anticipated to affect the normal delivery
        of mail. Notice transmitted by a form of recorded telecommunication during normal business hours on a Business Day (9:00 a.m. to 5:00 p.m. local time at the place of receipt) shall be deemed to have been given on the day of transmission or, in the
        case of notice transmitted outside of normal business hours shall be deemed to have been given on the first Business Day after the day of transmission; provided that immediately following such transmission such notice is given by personal delivery.
        Notice delivered personally shall be deemed to have been given on the day it was delivered. Any party may from time to time notify the others in the manner provided herein of any change of address which thereafter, until changed by like notice,
        shall be the address of such party for all purposes hereof.
       

      
        
          	11.	
                  Severability

                

        

      

       

      If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever (a)
          the validity, legality and enforceability of the remaining provisions of this Agreement (including, without limitation, all portions of any paragraph of this Agreement containing such provisions held to be invalid, illegal or unenforceable that
          are not of themselves in whole invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby, and (b) to the fullest possible extent, the provisions of this Agreement (including, without limitation, all portions of any
          paragraphs of this Agreement containing any provisions held to be invalid, illegal or unenforceable, that are not of themselves in whole invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested by the
          provision which is held to be invalid, illegal or unenforceable.

       

      
        
          	12.	
                  Governing Law

                

        

      

       

      The parties hereto agree that this Agreement shall be construed and enforced in accordance with the laws of the Province of Ontario
          and the laws of Canada applicable therein and shall be treated, in all respects, as a Ontario contract.

        

      

      
        
          	13.	
                  Modification and Waiver

                

        

      

       

      No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both parties hereto. No
          waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provision hereof (whether or not similar) nor shall such waiver constitute a continuing waiver.

       

      
        
          	14.	
                  Entire Agreement

                

        

      

       

      This Agreement shall supersede and replace any and all prior agreements (except any written agreement of employment between the
          Indemnifier and the Indemnified Party, which shall remain in full force and effect), except to the extent augmented or amended hereby, between the parties hereto respecting the specific subject matter set forth herein, and shall constitute the
          entire agreement between the parties hereto in respect of the specific subject matter set forth herein.

       

      
        
          

        - 7 -

      

      
      
        
          	15.	
                  Survival; Successors and Assigns

                

        

      

       

      The indemnification and advance payment of costs, charges and expenses as provided by, and granted pursuant to, this Agreement will
          continue if the Indemnified Party ceases to be the director and/or officer, employee or agent of the Indemnifier for any actions, proceedings, claims or demands whatsoever arising out of the Indemnified Party’s relationship with the Indemnifier
          and notwithstanding any action, proceeding, claim or demand is made, filed or threatened after the Indemnified Party terminates such relationship. This Agreement shall be binding upon and enure for the benefit of the Indemnifier and its
          successors and assigns and to the Indemnified Party and his or her estates, executors, administrators, legal representatives, lawful heirs, successors and assigns.

       

      
        
          	16.	
                  Resignations Will Not Be Prevented

                

        

      

       

      Nothing contained in this Agreement shall prevent the Indemnified Party from resigning at any time from any office that the
          Indemnified Party holds with the Indemnifier or otherwise holds at the request of the Indemnifier.

       

      
        
          	17.	
                  Successor Legislation

                

        

      

       

      Any references herein to any enactment shall be deemed to be references to such enactment as the same may be amended or replaced from
          time to time.

       

      
        
          	18.	
                  Counterparts

                

        

      

       

      For the convenience of the parties, this Agreement may be executed in several counterparts, each of which when so executed shall be,
          and be deemed to be, an original instrument and such counterparts together shall constitute one and the same instrument (and notwithstanding their date of execution shall be deemed to bear date as of the date of this Agreement). A signed
          facsimile, portable document format (PDF) or telecopied copy of this Agreement shall be effective and valid proof of execution and delivery.

       

      
        
          	19.	
                  Effective Date

                

        

      

       

      For greater certainty, notwithstanding the date of execution hereof, the indemnities provided herein shall be effective as against the
          Indemnifier as of the date the Indemnified Party first was appointed or elected the director and/or officer of the Indemnifier.

       

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

       

      	Signed, sealed and	)	 
	
              delivered, in the presence of:

            	)	 
	 	)	 
	 	)	 
	 	)	 
	 	)	 
	
              Witness

            	)	
              Name:

            

      

      

      
        
          

        - 8 -

      

      	 	
              VIEMED HEALTHCARE, INC.

            
	 	 	 
	 	
              Per:

            	 
	 	 	
              Name:

            
	 	 	
              Title:

            
	 	
              I have authority to bind the Corporation.

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