Document:

Form of First Amendment to Note and Restricted Stock Purchase Agreement

 Exhibit 10.40 
 FIRST AMENDMENT TO 
 NOTE AND RESTRICTED STOCK PURCHASE AGREEMENT 
 This First Amendment to Note and Restricted Stock Purchase Agreement (this “Amendment”) is entered into as of June 20, 2007
by and between Catcher Holdings, Inc., a Delaware corporation (the “Company”), and the Purchasers (as defined below). This Amendment amends that Note and Restricted Stock Purchase Agreement (the
“Agreement”), dated as of April 4, 2007 by and among the Company and the persons and entities listed on Exhibit A thereto (each a “Purchaser” and collectively, the
“Purchasers”). Capitalized terms not otherwise defined herein shall have the meanings given in the Agreement. 
 RECITALS 
 WHEREAS, pursuant to the Agreement, the Company has previously issued to the
Purchasers Secured Convertible Promissory Notes with an aggregate principal amount of $850,000 and 297,500 shares of the Company’s Common Stock; 
 WHEREAS, Section 5.4 of the Agreement provides that it may be amended with the written consent of the Company and the holders of a majority of the Shares and Conversion Shares on an
as-converted basis (assuming for such purpose the exercise or conversion of all outstanding Notes and underlying Conversion Warrants and Conversion Shares into shares of Common Stock); and 
 WHEREAS, the Company and the holders of a majority of the Shares and Conversion Shares on an as-converted basis (assuming for such
purpose the exercise or conversion of all outstanding Notes and underlying Conversion Warrants and Conversion Shares into shares of Common Stock) desire to amend the Agreement as set forth herein. 
 NOW, THEREFORE, in consideration of the foregoing and of the mutual promises and covenants set forth herein, the
parties agree as follows: 
 1. AMENDMENT OF DEFINITION OF
NOTES. The definition of “Notes” in Section 1.1 of the Agreement is hereby deleted and replaced in its entirety by the following: 
 “Notes” shall mean the Secured Convertible Promissory Notes in the form attached as Exhibit A to the First Amendment to Note and Restricted Stock Purchase Agreement, dated as of June 20, 2007, by
and among the Company and the Purchasers. 
 2. AMENDMENT OF SECTION 4.5.
Section 4.5 of the Agreement is hereby deleted and replaced in its entirety by the following: 
 Prohibited Transactions.
During the last thirty (30) days prior to the date of any conversion of a Note, neither the Purchaser holding such Note nor any Affiliate of such Purchaser which (x) had knowledge of the transactions contemplated hereby and thereby,
(y) has or shares discretion relating to such Purchaser’s investments or trading or information concerning such Purchaser’s investments, including in 

 
respect of the Securities, or (z) is subject to such Purchaser’s review or input concerning such Affiliate’s investments or trading
(collectively, “Trading Affiliates”) has, directly or indirectly, effected or agreed to effect any short sale, whether or not against the box, established any “put equivalent position” (as defined in Rule 16a-1(h) under the
Exchange Act) with respect to the shares of Common Stock issued upon conversion of the Notes pursuant to Section 6 thereof (the “Conversion Common Stock”), granted any other right (including, without limitation, any put or call
option) with respect to the Conversion Common Stock or with respect to any security that includes, relates to or derived any significant part of its value from the Conversion Common Stock or otherwise sought to hedge its position in the Securities
(each, a “Prohibited Transaction”). Prior to the conversion of such Note, the Purchaser shall not, and shall cause its Trading Affiliates not to, engage, directly or indirectly, in a Prohibited Transaction. Such Purchaser acknowledges that
the representations, warranties and covenants contained in this Section 4.5 are being made for the benefit of the Purchasers as well as the Company and that each of the other Purchasers shall have an independent right to assert any claims
against such Purchaser arising out of any breach or violation of the provisions of this Section 4.5. 
 3. AMENDMENT
OF SECTION 5.4. Section 5.4 of the Agreement is hereby deleted and replaced in its entirety by the following: 
 Amendments; Waivers. No provision of this Agreement may be waived or amended except in a written instrument signed by the Company and the Purchasers holding, together, a majority of the outstanding aggregate
Loan Amount of the Notes issued hereunder. No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver
of any other provision, condition or requirement hereof, nor shall any delay or omission of either party to exercise any right hereunder in any manner impair the exercise of any such right. 
 4. NOTE AMENDMENT. Upon execution of this Amendment, each of the Convertible Secured Promissory Notes issued
pursuant to the Agreement (an “Original Note”), shall be amended and restated in its entirety to have the terms set forth in the form of Convertible Secured Promissory Note attached hereto as Exhibit A (a “New Note”)
and with a principal amount equal to the Loan Amount of the Original Note multiplied by 1.3 plus any accrued but unpaid interest. The obligation of the Company to issue a New Note hereunder shall be conditioned upon the surrender by the Purchaser of
such Original Note being exchanged. 
 5. REGISTRATION RIGHTS. In connection with this Amendment, the
Purchasers and the Company shall execute a Registration Rights Agreement in the form attached hereto as Exhibit B covering the Shares and the capital stock issuable upon conversion of the New Notes in accordance with the terms thereof.

 6. REPRESENTATIONS OF PURCHASER. The Purchaser represents and warrants that the
representations and warranties in Section 3.2 of the Agreement, each of which pertain to the Holder’s suitability as an investor acquiring securities not registered under the Securities Act of 1933, are true and correct as of the date of
this Amendment. 

 7. CONSENT AND WAIVER. This Amendment
shall serve as the Purchasers’ consent to the new indebtedness of the Company evidenced by the Convertible Secured Promissory Notes issued pursuant to the Note and Restricted Stock Purchase Agreement, dated as of June 20, 2007, by and
among the Company and the Purchasers listed on Exhibit A thereto, and a waiver of the Company’s obligations pursuant to original Section 4.5 of the Agreement. 
 8. NO OTHER AMENDMENT. Except as specifically amended by this Amendment, the Agreement
shall continue in full force and effect. In the event of any conflict between the terms of this Amendment and the Agreement, the terms of this Amendment shall govern and control. 
 9. GOVERNING LAW. This Amendment shall be governed by and construed under the laws of the State of Virginia as
applied to agreements among Virginia residents entered into and to be performed entirely within Virginia. 
 10.
COUNTERPARTS. This Amendment may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
 11. SEVERABILITY. If one or more provisions of this Amendment are held to be unenforceable under applicable law,
such provision shall be excluded from this Amendment and the balance of the Amendment shall be interpreted as if such provision were so excluded and shall be enforceable in accordance with its terms. 
 12. ENTIRE AGREEMENT. This Amendment, together with the Agreement and the other agreements executed
pursuant hereto and thereto, constitutes the full and entire understanding and agreement between the parties with regard to the subjects hereof and thereof. 
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 IN WITNESS WHEREOF, the parties have executed this
First Amendment to Note and Restricted Stock Purchase Agreement as of the date first written above. 
  

			
	CATCHER HOLDINGS, INC.
		
	By:	 	 /s/ Robert H. Turner

	Name:	 	Robert H. Turner
	Title:	 	Chief Executive Officer

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 SIGNATURE PAGES OF PURCHASERS TO FOLLOW] 

 IN WITNESS WHEREOF, the parties have executed this
First Amendment to Note and Restricted Stock Purchase Agreement as of the date first written above. 
  

			
	AGREED AND ACCEPTED:
		
	 By:
	 	  

	 Name:
	 	
	 Title:
	 	

 EXHIBIT A 
 NEW NOTE 

 EXHIBIT B 
 REGISTRATION RIGHTS AGREEMENTThird Amendment to Second Amended and Restated Credit and Security Agreement

 Exhibit 10.1 
 THIRD AMENDMENT TO SECOND AMENDED AND RESTATED 
 CREDIT AND SECURITY AGREEMENT 
 THIS THIRD AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AND SECURITY AGREEMENT (the “Third Amendment”), dated June 14, 2007, is
entered into by and between SRI/SURGICAL EXPRESS, INC., a Florida corporation (“Borrower”), WACHOVIA BANK, NATIONAL ASSOCIATION, a national banking association (“Wachovia”) and LASALLE BANK NATIONAL ASSOCIATION, a national
banking association (“LaSalle,” and together with Wachovia, the “Banks”); 
 WITNESSETH: 
 WHEREAS, the Borrower and the Banks have previously entered into the Second Amended and Restated Credit and Security Agreement, dated as of
June 21, 2005 as amended by that certain Amendment to the Second Amended and Restated Credit and Security Agreement, dated as of May 8, 2006 and the Second Amendment to Second Amended and Restated Credit and Security Agreement dated as of
August 31, 2006 (collectively, the “Agreement”), and 
 NOW, THEREFORE, in consideration of the premises, mutual
covenants hereinafter contained and other good and valuable consideration, the Borrower and the Banks do hereby amend the Agreement as follows: 
 Section 1. Section 7.2 of Agreement Amended. Section 7.2 of the Agreement is hereby amended by deleting in its entirety such Section 7.2 and inserting the following in lieu thereof: 
 7.2 Funds Flow Coverage Ratio. Borrower shall, on a consolidated basis, maintain, a Funds Flow Coverage Ratio of not less than
(a) 1.75 to 1.00 for the fiscal quarter June 30, 2007, and (b) 2.00 to 1.00 for the fiscal quarter ending September 30, 2007 and thereafter. “Funds Flow Coverage Ratio” shall mean (i) the sum, for the four fiscal
quarters then ended, of net income after taxes plus depreciation, amortization of good will, interest, Add-Backs and expenses related to Share Based Payments as required by Statement of Financial Accounting Standards (SFAS) No. 123(R) minus all
dividends, withdrawals and non-cash income divided by (ii) the sum of all current maturities of long-term debt and capital leases obligations, plus interest. Such Share Based Payments shall exclude for this covenant calculation purposes any
expenses related to such Share Based Payments arising from payments in cash or other property; provided, the term “other property” shall not include stock, restricted stock or options to purchase stock. “Add-Backs” shall mean
(1) $804,000 AT Kearney or other consulting provider acceptable to the Banks, for consulting expense incurred for fiscal quarter ending December 31, 2006, (2) $392,000 CEO severance charge incurred in 

 
fiscal quarter ending March 31, 2007, (3) an amount of AT Kearney consulting expenses not to exceed $450,000 to be incurred in fiscal quarters
ending June 30, 2007, and (4) executive search fees in an aggregate amount not to exceed $100,000 to be incurred during fiscal quarters ending March 31, 2007 or June 30, 2007. 
 Section 2. Applicable Margin. In consideration for this Third Amendment and the waiver of non-compliance, the Applicable Margin (as defined
in the Agreement) shall remain fixed at Tier Level IV notwithstanding anything to the contrary in the Agreement. Upon compliance by the Borrower of the Fund Flow Coverage Ratio on a consolidated basis of not less than 2.25 to 1.00 for two
consecutive quarters, the Applicable Margin shall not be fixed at Tier Level IV and shall be calculated as set forth in the Agreement. 
 Section 3. Effect of Modification and Amendment of Agreement. The Agreement shall be deemed to be modified and amended in accordance with the provisions of this Third Amendment to the Agreement and the respective rights, duties
and obligations of the Borrower and the Banks under the Agreement shall remain to be determined, exercised and enforced under the Agreement subject in all respects to such modifications and amendments in writing, and all the terms and conditions of
this Third Amendment to the Agreement shall be part of the terms and conditions of the Agreement for any and all purposes. All the other terms of the Agreement shall continue in full force and effect subject to the amendments set forth herein.

 Section 4. Representations and Warranties. The Borrower represents and warrants to the Banks as follows: 
 (a) Representations and Warranties in Agreement. The representations and warranties of the Borrower contained in the Agreement (i) were true
and correct when made, and (ii) after giving effect to this Third Amendment continue to be true and correct on the date hereof (except to the extent of changes resulting from transactions contemplated or permitted by the Agreement, as amended
hereby, and changes occurring in the ordinary course of business that singly or in the aggregate are not materially adverse, and to the extent that such representations and warranties relate expressly to an earlier date). 
 (b) Authority. The execution and delivery by the Borrower of this Third Amendment and the performance by the Borrower of all of its agreements and
obligations under this Third Amendment within its corporate authority, have been duly authorized by all necessary corporate action and do not and will not: (i) contravene any provision of its charter documents or any amendment thereof;
(ii) conflict with, or result in a breach of any material term, condition or provision of, or constitute a default under or result in the creation of any mortgage, lien, pledge, charge, security interest or other encumbrance upon any of its
respective property under any agreement, deed of trust, indenture, mortgage or other instruments to which it is a party or by which any of its properties are bound including, without limitation, any of other agreements; (iii) violate or
contravene any provision of any law, statute, rule or regulation to which the 

  

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Borrower is subject or any decree, order or judgment of any court or governmental or regulatory authority, bureau, agency or official applicable to the
Borrower; (iv) require any waivers, consents or approvals by any of its creditors which have not been obtained; or (v) require any approval, consent, order, authorization or license by, or giving notice to, or taking any other action with
respect to, any governmental or regulatory authority or agency under any provision of any law. 
 (c) Enforceability of Obligations.
This Third Amendment and the Agreement, as amended hereby, constitute the legal, valid and binding obligations of the Borrower enforceable against the Borrower in accordance with their respective terms, provided that: (i) enforcement may
be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws of general application affecting the rights and remedies of creditors; and (ii) the availability of the remedies of specific performance and injunctive
relief may be subject to the discretion of the court before which any proceedings for such remedies may be brought. 
 Section 5.
Counterparts. This Third Amendment to the Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument. 
 Section 6. Governing Law. This Third Amendment to the Agreement shall be construed in accordance with and governed by the laws of the State
of Florida. 
 IN WITNESS WHEREOF, the Borrower and the Banks have caused this Third Amendment to the Agreement to be executed in their
respective names to be hereunto by their duly authorized representatives, all as of the date first above written. 
  

									
	 THE BORROWER:
	 		 	THE BANKS:
			
	 SRI/SURGICAL EXPRESS, INC.
	 		 	WACHOVIA BANK, NATIONAL ASSOCIATION
					
	 By:
	 	 /s/ Wallace D. Ruiz
	 		 	By:	 	 /s/ Timothy J. Coop

	 Name:
	 	Wallace D. Ruiz	 		 	Name:	 	Timothy J. Coop
	 Title:
	 	Sr. Vice President & CFO	 		 	Title:	 	Senior Vice President
				
		 		 		 	LASALLE BANK NATIONAL ASSOCIATION
					
		 		 		 	By:	 	 /s/ Kimberly A. Bruce

		 		 		 	Name:	 	Kimberly A. Bruce
		 		 		 	Title:	 	First Vice President

  

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