Document:

Careview Communications, Inc. 8-K

 

Exhibit 10.06 

 

Execution Version

 

REGISTRATION
RIGHTS AGREEMENT

 

THIS
REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is entered into as of June 26, 2015 by and between CareView
Communications, Inc., a Nevada corporation (the “Company”) and PDL BioPharma, Inc., a Delaware corporation
(the “Original Holder”).

 

RECITALS

 

A.            The
Company, certain subsidiaries and the Original Holder have entered into a Credit Agreement dated as of June 26, 2015 pursuant
to which the Original Holder has agreed to lend to the Company up to Forty Million Dollars ($40,000,000.00) on the terms and conditions
set forth therein (the “Credit Agreement”).

 

B.            Pursuant to the Credit Agreement, the Company has issued to the Original Holder a Warrant dated as of June 26, 2015 (the
“Warrant”), pursuant to which the Original Holder and its assignees have the right to acquire shares of
common stock, par value $0.001 per share, of the Company.

 

C.
          In connection with the execution and delivery of the Credit Agreement and the Warrant and the consummation of the
transactions contemplated thereby, the Company has agreed to grant the Original Holder certain registration rights as set
forth below.

 

AGREEMENT

 

In
consideration of the foregoing and the mutual covenants and agreements herein contained, and intending to be legally bound hereby,
the parties agree as follows:

 

Article
I

DEFINITIONS

 

Section
1.1         Certain
Definitions. As used in this Agreement, capitalized terms not otherwise defined herein shall have the meanings ascribed to
them below:

 

“Business
Day” means any day that is not a Saturday, a Sunday or other day on which banks are required or authorized by law to
be closed in The City of New York.

 

“Common
Stock” means the common stock, par value $0.001 per share, of the Company, and any equity securities issued or issuable
in exchange for or with respect to the Common Stock by way of a stock dividend, stock split or combination of shares or in connection
with a reclassification, recapitalization, merger, consolidation or other reorganization or otherwise.

 

“Common
Stock Equivalent” means all options, warrants and other securities convertible into, or exchangeable or exercisable
for (at any time or upon the occurrence of any event or contingency and without regard to any vesting or other conditions to which
such securities may be subject), Common Stock.

 

    	 

    	 

    

 

“Designated
Holder” means the Original Holder or, if the Original Holder no longer holds more than 10% of the then outstanding Registrable
Securities, Participating Holders holding more than 50% of the then outstanding Registrable Securities.

 

“Effectiveness
Period” means the period from the date hereof until such date as the Holders no longer hold any Registrable Securities.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“FINRA”
means the Financial Industry Regulatory Authority, Inc.

 

“HealthCor
Holder” means those holders of the Company’s securities party to the HealthCor Registration Rights Agreement.

 

“HealthCor
Registration Rights Agreement” means that certain registration rights agreement dated April 21, 2011, by and among the
Company, HealthCor Partners Fund, L.P., HealthCor Hybrid Offshore Master Fund, L.P. and the other investors party thereto, as
amended, supplemented or modified from time to time.

 

“HealthCor
Registrable Securities” shall have the same meaning as “Registrable Securities” as defined in the HealthCor
Registration Rights Agreement.

 

“Holder”
or “Holders” means the Original Holder and any Person who shall acquire and hold Registrable Securities in
accordance with the terms of this Agreement.

 

“Issuer
Free Writing Prospectus” means an issuer free writing prospectus, as defined in Rule 433 under the Securities Act,
relating to an offer of Registrable Securities.

 

“Participating
Holders” has the meaning set forth in Section 2.1(a)(ii).

 

“Prospectus”
means the prospectus included in a Registration Statement (including, without limitation, a prospectus that includes any information
previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 424(b) promulgated
under the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering
of any portion of the Registrable Securities covered by the Registration Statement, and all other amendments and supplements to
the Prospectus, including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by
reference in such Prospectus.

 

“Person”
means any individual, corporation, partnership, limited liability company, limited liability partnership, syndicate, person, trust,
association, organization or other entity or any governmental or regulatory body or other agency or authority or political subdivision
thereof, including any successor, by merger or otherwise, of any of the foregoing.

 

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“Registrable
Securities” means the Warrant Shares, any other securities issued or issuable upon exercise of the Warrant and any other
securities issued or issuable with respect to or in exchange for any such securities, provided such securities shall cease to
be Registrable Securities when: (i) sold pursuant to an effective registration statement or sold pursuant to Rule 144 or
any successor provision under the Securities Act; or (ii) such security becomes eligible for sale without restriction by
the applicable Holder pursuant to and in compliance with Rule 144 or any successor provision under the Securities Act.

 

“Registration
Expenses” means all fees and expenses incurred in connection with the Company’s performance of or compliance with
the provisions of Article II, including: (i) all registration, listing, qualification and filing fees (including FINRA
filing fees); (ii) fees and expenses of compliance with state securities or “blue sky” laws (including counsel
fees in connection with the preparation of a blue sky and legal investment survey and FINRA filings); (iii) printing and
copying expenses; (iv) messenger and delivery expenses; (v) expenses incurred in connection with any road show; (vi) fees
and disbursements of counsel for the Company; (vii) with respect to each registration, the reasonable fees and disbursements
of one counsel for the selling Holder(s) selected by the Designated Holder and reasonably satisfactory to the Company, in the
case of a registration pursuant to Section 2.1, and selected by the underwriter and reasonably satisfactory to the Designated
Holder, in the case of a registration pursuant to Section 2.2; (viii) fees and disbursements of independent public accountants,
including the expenses of any audit or “cold comfort” letter, and fees and expenses of other persons, including special
experts, retained by the Company; (ix) underwriter fees, excluding discounts and commissions, and any other expenses which
are customarily borne by the issuer or seller of securities in a public equity offering; and (x) all internal expenses of
the Company (including all salaries and expenses of officers and employees performing legal or accounting duties).

 

“Registration
Statement” means any registration statement required to be filed under this Agreement, including the Prospectus, amendments
and supplements to such registration statement or Prospectus, including pre- and post-effective amendments, all exhibits thereto,
and all material incorporated by reference or deemed to be incorporated by reference in such registration statement.

 

“SEC”
means the Securities and Exchange Commission.

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Warrant
Shares” means the shares of Common Stock issuable upon the exercise of the Warrant.

 

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Article
II

REGISTRATION RIGHTS

 

Section
2.1         Demand
Registrations.

 

(a)           (i)        Subject to Section 2.1(c), at any time following the
date hereof but prior to the expiration of the Effectiveness Period, the Designated Holder shall have the right to require the
Company to file a registration statement under the Securities Act covering Registrable Securities by delivering a written request
therefor to the Company specifying the number of Registrable Securities to be included in such registration and the intended method
of distribution thereof. All such requests by any Holder pursuant to this Section 2.1(a)(i) are referred to as “Demand
Registration Requests,” the registrations so requested are referred to as “Demand Registrations”
and the Holders making such demand for registration are referred to as the “Initiating Holders.” As promptly
as practicable, but no later than 10 days after receipt of a Demand Registration Request, the Company shall give written notice
(a “Demand Exercise Notice”) of such Demand Registration Request to all Holders of record of Registrable Securities
other than the Initiating Holders.

 

 (ii)       The
Company, subject to Sections 2.3 and 2.6, shall include in a Demand Registration (A) the Registrable Securities of
the Initiating Holders and (B) the Registrable Securities of any other Holder of Registrable Securities that shall have
made a written request to the Company within the time limits specified below for inclusion in such registration (together
with the Initiating Holders, the “Participating Holders”). Any such request from the other Holders must be
delivered to the Company within 15 days after the receipt of the Demand Exercise Notice and must specify the maximum number
of Registrable Securities intended to be disposed of by such other Holders.

 

(b)          
(i)        The Company shall as soon as practicable (and in the case
of an offering to be made on a continuous basis under Rule 415, in no event later than thirty (30) days following the Demand Registration
Request) cause to be prepared and filed with the SEC a Registration Statement providing for the resale of all Registrable Securities
which Holders request to be registered. The Registration Statement shall be on Form S-3 if the Company is then eligible to register
for resale the Registrable Securities on such form (a “Short Form Registration”). If the Company is not then
eligible to register for resale the Registrable Securities on Form S-3, such registration shall be on Form S-1 or another appropriate
form in accordance herewith (a “Long Form Registration”).

 

 (ii)       The Company shall cause the Registration Statement to be declared
effective under the Securities Act as promptly as possible after the filing thereof (and in the case of an offering to be made
on a continuous basis under Rule 415, in no event later than either of (A) 180 calendar days following the date of the Demand
Registration Request or (B) five Business Days following notification by the staff of the SEC to the Company that there will be
no review of the Registration Statement or, if comments have been given, that the staff will have no further comments with respect
thereto). The Company shall keep the Registration Statement continuously effective under the Securities Act until the date when
all Registrable Securities covered by such Registration Statement have been sold.

 

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(c)          The Demand Registration rights granted in Section 2.1(a) to
the Holders are subject to the following limitations:

 

(i)         the Company shall not be required to cause a registration pursuant
to Section 2.1(a) to be filed within 90 days or to be declared effective within a period of 180 days after the effective
date of any other registration statement of the Company filed pursuant to the Securities Act;

 

(ii)        if the Company delivers to the Initiating Holders a certificate
signed by the Company’s chief executive officer stating that, in the good faith judgment of the Company’s Board of
Directors: (x) the registration could reasonably be expected to materially interfere with an acquisition, corporate reorganization
or other material transaction then under consideration by the Company or (y) there is some other material development relating
to the operations or condition (financial or other) of the Company that has not been disclosed to the general public and as to
which it is in the Company’s best interests not to disclose (each of (x) and (y), a “Valid Business Reason”),
the Company may postpone or withdraw a filing of a registration statement relating to a Demand Registration Request until such
Valid Business Reason no longer exists, but in no event shall the Company avail itself of such right for more than 60 days (unless
the Holders of at least a majority of the Registrable Securities consent in writing to a longer delay of up to an additional 30
days) in any period of 365 consecutive days (such period of postponement or withdrawal under this clause (ii), the “Postponement
Period”); and the Company shall give notice of its determination to postpone or withdraw a registration statement and
of the fact that the Valid Business Reason for such postponement or withdrawal no longer exists, in each case, promptly after
the occurrence thereof;

 

(iii)       The Company shall not be obligated to effect more than three Long
Form Registrations. There shall be no limitation on the number of Short Form Registrations under Section 2.1(a); and

 

(iv)       Notwithstanding any provision of this Agreement to the contrary,
neither the Designated Holder nor any other Holder shall have any right under this Agreement to require that a distribution of
Registrable Securities be effected by means of an underwriting.

 

If
the Company shall give any notice of postponement or withdrawal of any registration statement pursuant to clause (ii) above,
the Company shall not register any equity security of the Company during the period of postponement or withdrawal. Each Holder
of Registrable Securities agrees that, upon receipt of any notice from the Company that the Company has determined to withdraw
any registration statement pursuant to clause (ii) above, such Holder will discontinue its disposition of Registrable Securities
pursuant to such registration statement. If the Company shall have withdrawn or prematurely terminated a registration statement
filed under Section 2.1(a)(i), the Company shall not be considered to have effected an effective registration for the purposes
of this Agreement until the Company shall have filed a new registration statement covering the Registrable Securities covered
by the withdrawn registration statement and such registration statement shall have been declared effective and shall not have
been withdrawn. If the Company shall give any notice of withdrawal or postponement of a registration statement, at such time as
the Valid Business Reason that caused such withdrawal or postponement no longer exists (but in no event more than 60 days, or,
with the written consent of the Holders of at least a majority of the Registrable Securities, 90 days, after the date of the postponement
or withdrawal), the Company shall use its commercially reasonable efforts to effect the registration under the Securities Act
of the Registrable Securities covered by the withdrawn or postponed registration statement in accordance with this Section 2.1.

 

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(d)          
A Holder may withdraw its Registrable Securities from a Demand Registration at any time. If all such Holders do so, the
Company shall cease all efforts to secure registration and such registration nonetheless shall be deemed a Demand
Registration for purposes of this Section 2.1 unless (i) the withdrawal is made following withdrawal or
postponement of such registration by the Company pursuant to a Valid Business Reason as contemplated by
Section 2.1(c), (ii) the withdrawal is based on the reasonable determination of the Holders who requested such
registration that there has been, since the date of the Demand Registration Request, a material adverse change in the
business or prospects of the Company or (iii) the Holders who requested such registration shall have paid or reimbursed
the Company for all of the reasonable out-of-pocket fees and expenses incurred by the Company in connection with the
withdrawn registration.

 

(e)           A Demand Registration shall not be deemed to have been effected
and shall not count as such (i) unless a registration statement with respect thereto has become effective and has remained
effective for a period of at least 180 days or such shorter period during which all Registrable Securities covered by such Registration
Statement have been sold or withdrawn, (ii) if, after the registration statement with respect thereto has become effective,
it becomes subject to any stop order, injunction or other order or requirement of the SEC or other governmental agency or court
for any reason, or (iii) if it is withdrawn by the Company pursuant to a Valid Business Reason as contemplated by Section 2.1(c).

 

Section
2.2         Piggyback
Registrations.

 

(a)           If at any time during the Effectiveness Period, the Company shall
determine to register any of its equity securities under the Securities Act (other than pursuant to (i) registrations on
such form or similar form(s) solely for registration of securities in connection with an employee benefit plan or dividend reinvestment
plan or (ii) a Demand Registration under Section 2.1) on a registration statement on Form S-1 or Form S-3
or an equivalent general registration form then in effect (but excluding any registration statement on Form S-4 or Form S-8),
whether or not for its own account, the Company shall give prompt written notice of its intention to do so to each Holder of record
of Registrable Securities. Upon the written request of any such Holder, made within 15 days following the receipt of any such
written notice (which request shall specify the maximum number of Registrable Securities intended to be disposed of by such Holder
and the intended method of distribution thereof), the Company, subject to Sections 2.2(b), 2.3 and 2.6, shall use commercially
reasonable efforts to cause all such Registrable Securities to be included in the registration statement with the securities that
the Company at the time proposes to register to permit the sale or other disposition by the Holders in accordance with the intended
method of distribution thereof of the Registrable Securities to be so registered. No registration of Registrable Securities effected
under this Section 2.2(a) shall relieve the Company of its obligations to effect Demand Registrations under Section 2.1.

 

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(b)           If, at any time after giving written notice of its determination
to register any equity securities and prior to the effective date of the registration statement filed in connection with such
registration, the Company shall determine for any reason not to register or to delay registration of such equity securities, the
Company will give written notice of such determination to each Holder of record of Registrable Securities and (i) in the
case of a determination not to register, shall be relieved of its obligation to register any Registrable Securities in connection
with such abandoned registration, without prejudice, however, to the rights of Holders under Section 2.1 and (ii) in
the case of a determination to delay such registration of its equity securities, shall be permitted to delay the registration
of such Registrable Securities for the same period as the delay in registering such other equity securities.

 

(c)           Any Holder shall have the right to withdraw its request for inclusion
of its Registrable Securities in any registration statement pursuant to this Section 2.2 by giving written notice to the
Company of its request to withdraw. Such request must be made in writing prior to the earlier of (i) the use by the Company
or any underwriters of any preliminary prospectus or preliminary prospectus supplement that is part of such registration statement,
(ii) the execution of the underwriting agreement with respect to such registration or (iii) the execution of the custody
agreement with respect to such registration. Such withdrawal shall be irrevocable and, after making such withdrawal, a Holder
shall no longer have any right to include Registrable Securities in the registration as to which such withdrawal was made.

 

Section
2.3         Priority
in Registrations.

 

(a)           If any registration pursuant to Section 2.2 involves an underwritten
offering that is proposed by the Company and the lead managing underwriter of such offering (the “Manager”)
shall advise the Company that, in its view, the aggregate number of securities requested to be included in such registration by
the Company, the Holders and the holders of securities of the Company, including the HealthCor Holders, that have the right to
require such registration pursuant to an agreement entered into by the Company (“Additional Registration Rights”)
exceeds the number (the “Section 2.3(a) Sale Number”) that can be sold in an orderly manner in such registration
within a price range acceptable to the Company (such difference, the “Aggregate Underwriter Cutback”), the
Company shall include in such registration: (i) all Common Stock that the Company proposes to register for its own account less
such number of shares equal to 50% of the Aggregate Underwriter Cutback (such number of shares to be registered, the “Company
Allotment”), and (ii) the aggregate of all Registrable Securities and all HealthCor Registrable Securities for which
the Holders and the HealthCor Holders, respectively, request registration (such number of securities, the “Aggregate
Registration Request”) less such number of securities equal to 50% of the Aggregate Underwriter Cutback (such number
of securities to be registered, the “Registrable Securities Allotment”). To the extent that the Aggregate Registration
Request exceeds the Registrable Securities Allotment, the securities to be included in the Registrable Securities Allotment shall
be allocated on a pro rata basis among (i) all Holders requesting that Registrable Securities be included in such registration
pursuant to the exercise of piggyback rights pursuant to Section 2.2 of this Agreement and (ii) all HealthCor Holders requesting
that HealthCor Registrable Securities be included in such registration, based on the number of (x) Registrable Securities
that each such Holder is then requesting for inclusion and (y) HealthCor Registrable Securities that each such HealthCor Holder
is then requesting for inclusion, which, together with the Company Allotment, shall not exceed the Section 2.3(a) Sale Number.

 

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(b)           If any registration pursuant to Section 2.2 involves an underwritten
offering that was proposed by the HealthCor Holders or other holders of Additional Registration Rights and the Manager shall advise
the Company that, in its view, the number of securities requested to be included in such registration exceeds the number (the
“Section 2.3(b) Sale Number”) that can be sold in an orderly manner in such registration within a price range
acceptable to the Company, the securities to be included in such registration shall be allocated by the Company first,
on a pro rata basis among (i) all Holders requesting that Registrable Securities be included in such registration pursuant
to the exercise of piggyback rights pursuant to Section 2.2 of this Agreement and (ii) all HealthCor Holders requesting the inclusion
in such registration of HealthCor Registrable Securities, based on the number of (x) Registrable Securities that each such
Holder is then requesting for inclusion and (y) HealthCor Registrable Securities that each such HealthCor Holder is requesting
for inclusion, which shall not exceed the Section 2.3(b) Sale Number, and second, to the other holders of Additional Registration
Rights (if any).

 

Section
2.4         Registration
Procedures. Whenever the Company is required by the provisions of this Agreement to use commercially reasonable efforts to
effect or cause the registration of any Registrable Securities under the Securities Act as provided in this Agreement, the Company
as expeditiously as possible:

 

(a)           shall prepare and file with the SEC the requisite Registration Statement,
which shall comply as to form in all material respects with the requirements of the applicable form and shall include all financial
statements required by the SEC to be filed therewith, and use commercially reasonable efforts to cause such Registration Statement
to become and remain effective (provided, however, that before filing a Registration Statement or Prospectus or
any amendments or supplements thereto, or comparable statements under securities or blue sky laws of any jurisdiction, or any
Issuer Free Writing Prospectus related thereto, the Company will furnish to one counsel for the Holders participating in the planned
offering (selected by the Designated Holder and reasonably satisfactory to the Company, in the case of a registration pursuant
to Section 2.1, and selected by the lead managing underwriter, if any, and reasonably satisfactory to the Designated Holder,
in the case of a registration pursuant to Section 2.2) and the lead managing underwriter, if any, copies of all such documents
proposed to be filed (including all exhibits thereto), which documents will be subject to the reasonable review and reasonable
comment of such counsel, and the Company shall not file any Registration Statement or amendment thereto, any Prospectus or supplement
thereto or any Issuer Free Writing Prospectus related thereto to which the Designated Holder covered by such Registration Statement
or the underwriters, if any, shall reasonably object);

 

(b)           shall prepare and file with the SEC such amendments and supplements
to such Registration Statement and the Prospectus used in connection therewith as may be necessary to keep such Registration Statement
effective for such period as any seller of Registrable Securities pursuant to such Registration Statement shall request and to
comply with the provisions of the Securities Act with respect to the sale or other disposition of all Registrable Securities covered
by such Registration Statement in accordance with the intended methods of disposition by the seller or sellers thereof set forth
in such Registration Statement;

 

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(c)           shall furnish, without charge, to each seller of such Registrable
Securities and each underwriter, if any, of the securities covered by such Registration Statement such number of copies of such
Registration Statement, each amendment thereto, the Prospectus included in such Registration Statement, each preliminary Prospectus
and each Issuer Free Writing Prospectus utilized in connection therewith, all in conformity with the requirements of the Securities
Act, and such other documents as such seller and underwriter may reasonably request in order to facilitate the public sale or
other disposition of the Registrable Securities owned by such seller, and shall consent to the use in accordance with all applicable
law of each such Registration Statement, each amendment thereto, each such Prospectus, preliminary Prospectus or Issuer Free Writing
Prospectus by each such seller of Registrable Securities and the underwriters, if any, in connection with the offering and sale
of the Registrable Securities covered by such Registration Statement or Prospectus;

 

(d)           shall use commercially reasonable efforts to register or qualify
the Registrable Securities covered by such Registration Statement under such other securities or “blue sky” laws of
such jurisdictions as any sellers of Registrable Securities or any managing underwriter, if any, reasonably shall request, and
do any and all other acts and things that may be reasonably necessary or advisable to enable such sellers or underwriter, if any,
to consummate the disposition of the Registrable Securities in such jurisdictions, except that in no event shall the Company be
required to qualify to do business as a foreign corporation in any jurisdiction where, but for the requirements of this Section 2.4(d),
it would not be required to be so qualified, to subject itself to taxation in any such jurisdiction or to consent to general service
of process in any such jurisdiction;

 

(e)           shall promptly notify each Holder selling Registrable Securities
covered by such Registration Statement and each managing underwriter, if any:

 

(i)         when the Registration Statement, any pre-effective amendment, the
Prospectus or any Prospectus supplement related thereto, any post-effective amendment to the Registration Statement or any Issuer
Free Writing Prospectus has been filed and, with respect to the Registration Statement or any post-effective amendment, when the
same has become effective;

 

(ii)        of any request by the SEC or state securities authority for amendments
or supplements to the Registration Statement or the Prospectus related thereto or for additional information;

 

(iii)       of the issuance by the SEC of any stop order suspending the effectiveness
of the Registration Statement or the initiation of any proceedings for that purpose;

 

(iv)       of the receipt by the Company of any notification with respect to
the suspension of the qualification of any Registrable Securities for sale under the securities or blue sky laws of any jurisdiction
or the initiation of any proceeding for such purpose;

 

(v)        of the existence of any fact of which the Company becomes aware
which results in the Registration Statement, the prospectus related thereto, any document incorporated therein by reference, any
Issuer Free Writing Prospectus or the information conveyed to any purchaser at the time of sale to such purchaser containing an
untrue statement of a material fact or omitting to state a material fact required to be stated therein or necessary to make any
statement therein not misleading; and

 

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(vi)       if at any time the representations and warranties contemplated by
any underwriting agreement, securities sale agreement, or other similar agreement relating to the offering shall cease to be true
and correct in all material respects; and, if the notification relates to an event described in clause (v), the Company,
subject to the provisions of Section 2.1(c), promptly shall prepare and file with the SEC, and furnish to each seller and
each underwriter, if any, a reasonable number of copies of, a Prospectus supplemented or amended so that, as thereafter delivered
to the purchasers of such Registrable Securities, such Prospectus shall not include an untrue statement of a material fact or
omit to state a material fact required to be stated therein or necessary to make the statements therein in the light of the circumstances
under which they were made not misleading;

 

(f)            shall comply with all applicable rules and regulations of the SEC,
and make generally available to its security holders, as soon as reasonably practicable after the effective date of the Registration
Statement (and in any event within 90 days after the end of such 12 month period described hereafter), an earnings statement,
which need not be audited, covering the period of at least 12 consecutive months beginning with the first day of the Company’s
first calendar quarter after the effective date of the registration statement, which earnings statement shall satisfy the provisions
of Section 11(a) of the Securities Act and Rule 158 thereunder;

 

(g)           shall cause all Registrable Securities covered by such Registration
Statement to be authorized to be listed on a national securities exchange if shares of the particular class of Registrable Securities
are at that time, or will be immediately following the offering, listed on such exchange;

 

(h)           shall provide and cause to be maintained a transfer agent and registrar
for all such Registrable Securities covered by such Registration Statement not later than the effective date of such Registration
Statement;

 

(i)            shall enter into such customary agreements (including, if applicable,
an underwriting agreement) and take such other actions as the Designated Holder shall reasonably request in order to expedite
or facilitate the disposition of such Registrable Securities (it being understood that the Holders of the Registrable Securities
that are to be distributed by any underwriters shall be parties to any such underwriting agreement and may, at their option, require
that the Company make to and for the benefit of such Holders the representations, warranties and covenants of the Company which
are being made to and for the benefit of such underwriters);

 

(j)            in connection with an underwritten offering, shall obtain an opinion
from the Company’s counsel and a “cold comfort” letter from the Company’s independent public accountants
in customary form and covering such matters as are customarily covered by such opinions and “cold comfort” letters
delivered to underwriters in underwritten public offerings, which opinion and letter shall be reasonably satisfactory to the underwriter,
if any;

 

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(k)           shall use commercially reasonable efforts to obtain the withdrawal
of any order suspending the effectiveness of the Registration Statement;

 

(l)            shall provide a CUSIP number for all Registrable Securities, not
later than the effective date of the Registration Statement;

 

(m)          shall make reasonably available its employees and personnel for
participation in “road shows” and other marketing efforts and otherwise provide reasonable assistance to the underwriters,
taking into account the needs of the Company’s businesses and the requirements of the marketing process, in the marketing
of Registrable Securities in any underwritten offering;

 

(n)           shall promptly prior to the filing of any document that is to be
incorporated by reference into the Registration Statement or the Prospectus, and prior to the filing of any Issuer Free Writing
Prospectus, provide copies of such document to counsel for the selling holders of Registrable Securities and to each managing
underwriter, if any, and make the Company’s representatives reasonably available for discussion of such document and make
such changes in such document concerning the selling holders prior to the filing thereof as counsel for such selling holders or
underwriters may reasonably request;

 

(o)           shall cooperate with the sellers of Registrable Securities and the
managing underwriter, if any, to facilitate the timely preparation and delivery of certificates not bearing any restrictive legends
representing the Registrable Securities to be sold, and cause such Registrable Securities to be issued in such denominations and
registered in such names in accordance with the underwriting agreement prior to any sale of Registrable Securities to the underwriters
or, if not an underwritten offering, in accordance with the instructions of the sellers of Registrable Securities at least three
Business Days prior to any sale of Registrable Securities and instruct any transfer agent and registrar of Registrable Securities
to release any stop transfer orders in respect thereof;

 

(p)           shall take all such other commercially reasonable actions as are
necessary or advisable in order to expedite or facilitate the disposition of such Registrable Securities;

 

(q)           shall not take any direct or indirect action prohibited by Regulation M
under the Exchange Act; provided, however, that to the extent that any prohibition is applicable to the Company,
the Company will take such action as is necessary to make any such prohibition inapplicable;

 

(r)            shall cooperate with each seller of Registrable Securities and each
underwriter or agent participating in the disposition of such Registrable Securities and their respective counsel in connection
with any filings required to be made with FINRA; and

 

(s)           shall take all reasonable action to ensure that any Issuer Free
Writing Prospectus utilized in connection with any registration covered by Section 2.1 or 2.2 complies in all material respects
with the Securities Act, is filed in accordance with the Securities Act to the extent required thereby, is retained in accordance
with the Securities Act to the extent required thereby and, when taken together with the related prospectus, will not contain
any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in light of
the circumstances under which they were made, not misleading.

 

    	11

    	 

    

 

If
the Company files any shelf Registration Statement for the benefit of the holders of any of its securities other than the Holders,
the Company shall include in such Registration Statement such disclosures as may be required by Rule 430B under the Securities
Act, referring to the unnamed selling security holders in a generic manner by identifying the initial offering of the securities
to the Holders, in order to ensure that the Holders may be added to such shelf Registration Statement at a later time through
the filing of a prospectus supplement rather than a post-effective amendment.

 

The
Company may require as a condition precedent to the Company’s obligations under this Section 2.4 that each seller of
Registrable Securities as to which any registration is being effected furnish the Company such information in writing regarding
such seller and the distribution of such Registrable Securities as the Company from time to time reasonably may request; provided,
that such information is necessary for the Company to consummate such registration and shall be used only in connection with such
registration.

 

Each
seller of Registrable Securities agrees that upon receipt of any notice from the Company under Section 2.4(e)(v), such seller
will discontinue such seller’s disposition of Registrable Securities pursuant to the Registration Statement covering such
Registrable Securities until such seller’s receipt of the copies of the supplemented or amended Prospectus. In the event
the Company shall give any such notice, the applicable period set forth in Section 2.4(b) shall be extended by the number
of days during such period from and including the date of the giving of such notice to and including the date when each seller
of any Registrable Securities covered by such Registration Statement shall have received the copies of the supplemented or amended
Prospectus.

 

If
any such Registration Statement or comparable statement under “blue sky” laws refers to any Holder by name or otherwise
as the Holder of any securities of the Company, such Holder shall have the right to require (i) the insertion therein of
language, in form and substance reasonably satisfactory to such Holder and the Company, to the effect that the holding by such
Holder of such securities is not to be construed as a recommendation by such Holder of the investment quality of the Company’s
securities covered thereby and that such holding does not imply that such Holder will assist in meeting any future financial requirements
of the Company or (ii) in the event that such reference to such Holder by name or otherwise is not in the judgment of the
Company, as advised by counsel, required by the Securities Act or any similar federal statute or any state “blue sky”
or securities law then in force, the deletion of the reference to such Holder.

 

Section
2.5         Registration
Expenses.

 

(a)           The Company shall pay all Registration Expenses (i) with respect
to any Demand Registration whether or not it becomes effective or remains effective for the period contemplated by Section 2.4(b)
and (ii) with respect to any registration effected under Section 2.2.

 

(b)           Notwithstanding the foregoing, (i) the provisions of this Section 2.5
shall be deemed amended to the extent necessary to cause these expense provisions to comply with “blue sky” laws of
each state in which the offering is made, (ii) in connection with any registration hereunder, each Holder of Registrable
Securities being registered shall pay all underwriting discounts and commissions and any transfer taxes, if any, attributable
to the sale of such Registrable Securities, pro rata with respect to payments of discounts and commissions in accordance with
the number of Registrable Securities sold in the offering by such Holder and (iii) the Company shall, in the case of all
registrations under this Article II, be responsible for all its internal expenses.

 

    	12

    	 

    

 

Section
2.6         Underwritten
Offerings.

 

(a)           In the case of a registration pursuant to Section 2.2, if the
Company shall have determined to enter into an underwriting agreement in connection therewith, any Registrable Securities to be
included in such registration shall be subject to such underwriting agreement. Any Holder participating in such registration may,
at its option, require that any or all of the representations and warranties by, and the other agreements on the part of, the
Company to and for the benefit of such underwriters shall also be made to and for the benefit of such Holder and that any or all
of the conditions precedent to the obligations of such underwriters under such underwriting agreement be conditions precedent
to the obligations of such Holder. No Holder shall be required to make any representations or warranties to or agreements with
the Company or the underwriters other than representations, warranties or agreements regarding such Holder, its ownership of and
title to the Registrable Securities and its intended method of distribution; and any liability of such Holder to any underwriter
or other Person under such underwriting agreement shall be limited to liability arising from breach of its representations and
warranties and shall be limited to an amount equal to the proceeds (net of expenses and underwriting discounts and commissions)
that it derives from such registration.

 

(b)           In the case of a registration under Section 2.2, if the Company
has determined to enter into an underwriting agreement in connection therewith, all securities to be included in such registration
shall be subject to an underwriting agreement and no Person may participate in such registration unless such Person agrees to
sell such Person’s securities on the basis provided therein and, subject to the provisions of this Section 2.6, completes
and executes all reasonable questionnaires, and other documents, including custody agreements and powers of attorney, that must
be executed in connection therewith, and provides such other information to the Company or the underwriter as may be necessary
to register such Person’s securities.

 

Section
2.7         Holdback
Agreements.

 

(a)           Each seller of Registrable Securities agrees, to the extent requested
in writing by a managing underwriter, if any, of any registration effected pursuant to Section 2.2, not to (i) lend;
offer; pledge; sell; contract to sell; sell any option or contract to purchase; purchase any option or contract to sell; grant
any option, right or warrant to purchase; or otherwise transfer or dispose of, directly or indirectly, any shares of Common Stock
or any securities convertible into or exercisable or exchangeable (directly or indirectly) for any shares of Common Stock (whether
such shares or any such securities are then owned by the Holder or are thereafter acquired) or (ii) enter into any swap or
other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of such securities,
whether any such transaction described in clause (i) or (ii) above is to be settled by delivery of Common Stock or other securities,
in cash or otherwise, other than as part of such underwritten public offering during the time period reasonably requested by the
managing underwriter, not to exceed 90 days plus such additional period of time as may be required to comply with FINRA Rule 2711
or any similar or successor rules thereto, as such underwriter shall specify reasonably and in good faith.

 

    	13

    	 

    

 

(b)           The Company agrees that, if it shall previously have received a
request for registration pursuant to Section  2.2, and if such previous registration shall not have been withdrawn or abandoned,
it shall not sell, transfer or otherwise dispose of any Common Stock, or any other equity security of the Company or any security
convertible into or exchangeable or exercisable for any equity security of the Company (other than as part of such underwritten
public offering, a registration on Form S-4 or Form S-8 or any successor or similar form which is then in effect or
upon the conversion, exchange or exercise of any then outstanding Common Stock Equivalent), until a period of 180 days shall have
elapsed from the effective date of such previous registration; and the Company shall so provide in any registration rights agreements
hereafter entered into with respect to any of its securities.

 

Section
2.8         No
Required Sale. Nothing in this Agreement shall be deemed to create an independent obligation on the part of any Holder to
sell any Registrable Securities pursuant to any effective registration statement.

 

Section
2.9         Indemnification.

 

(a)           In the event of any registration of any securities of the Company
under the Securities Act pursuant to this Article II, the Company will, and hereby agrees to, indemnify and hold harmless,
to the fullest extent permitted by law, each Holder of Registrable Securities, its directors, officers, fiduciaries, employees,
agents, affiliates, consultants, representatives, general and limited partners, stockholders, successors, assigns (and the directors,
officers, employees and stockholders thereof), and each other Person, if any, who controls such Holder within the meaning of the
Securities Act, from and against any and all losses, claims, damages or liabilities, joint or several, actions or proceedings
(whether commenced or threatened) and expenses (including reasonable fees of counsel and any amounts paid in any settlement effected
with the Company’s consent, which consent shall not be unreasonably withheld or delayed) to which each such indemnified
party may become subject under the Securities Act or otherwise in respect thereof (collectively, “Losses”),
insofar as such Losses arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material
fact contained in any Registration Statement under which such securities were registered under the Securities Act or the omission
or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein
not misleading or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary,
final or summary Prospectus or any amendment or supplement thereto, together with the documents incorporated by reference therein,
or any Issuer Free Writing Prospectus utilized in connection therewith, or the omission or alleged omission to state therein a
material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made,
not misleading, and the Company will reimburse any such indemnified party for any legal or other expenses reasonably incurred
by such indemnified party in connection with investigating or defending any such Loss as such expenses are incurred; provided,
however, that the Company shall not be liable (i) to any such indemnified party in any such case to the extent such
Loss arises out of or is based upon any untrue statement or alleged untrue statement of a material fact or omission or alleged
omission of a material fact made in such Registration Statement or amendment thereof or supplement thereto or in any such prospectus
or any preliminary, final or summary Prospectus or Issuer Free Writing Prospectus in reliance upon and in conformity with written
information furnished to the Company by or on behalf of such indemnified party specifically for use therein, (ii) for any
failure of a Holder to deliver a Prospectus, to the extent that such Holder was required to do so under applicable securities
laws, or (iii) for the use by such Holder of an outdated or defective Prospectus after the Company has notified such Holder
in writing that the Prospectus is outdated or defective. Such indemnity and reimbursement of expenses shall remain in full force
and effect regardless of any investigation made by or on behalf of such indemnified party and shall survive the transfer of such
securities by such Holder.

 

    	14

    	 

    

 

(b)           Each Holder of Registrable Securities that are included in the securities
as to which any registration under Section 2.1 or 2.2 is being effected shall, severally and not jointly, indemnify and hold
harmless (in the same manner and to the same extent as set forth in paragraph (a) of this Section 2.9) to the extent
permitted by law the Company, its officers and directors, each Person controlling the Company within the meaning of the Securities
Act and all other prospective sellers and their respective directors, officers, fiduciaries, employees, agents, affiliates, consultants,
representatives, general and limited partners, stockholders, successors, assigns and respective controlling Persons with respect
to any untrue statement or alleged untrue statement of any material fact in, or omission or alleged omission of any material fact
from, such Registration Statement, any preliminary, final or summary Prospectus contained therein, or any amendment or supplement
thereto, or any Issuer Free Writing Prospectus utilized in connection therewith, if such statement or alleged statement or omission
or alleged omission was made in reliance upon and in conformity with written information furnished to the Company or its representatives
by or on behalf of such Holder specifically for use therein and reimburse such indemnified party for any legal or other expenses
reasonably incurred in connection with investigating or defending any such Loss as such expenses are incurred; provided,
however, that the aggregate amount that any such Holder shall be required to pay pursuant to this Section 2.9(b) and
Sections 2.9(c), (e) and (f) shall in no case be greater than the amount of the net proceeds received by such Holder upon
the sale of the Registrable Securities pursuant to the Registration Statement giving rise to such claim, except in the case of
fraud or willful misconduct by such Holder. Such indemnity and reimbursement of expenses shall remain in full force and effect
regardless of any investigation made by or on behalf of such indemnified party and shall survive the transfer of such securities
by such Holder.

 

    	15

    	 

    

 

(c)           Any Person entitled to indemnification under this Agreement promptly
shall notify the indemnifying party in writing of the commencement of any action or proceeding with respect to which a claim for
indemnification may be made pursuant to this Section 2.9, but the failure of any such Person to provide such notice shall
not relieve the indemnifying party of its obligations under the preceding paragraphs of this Section 2.9, except to the extent
the indemnifying party is materially prejudiced thereby and shall not relieve the indemnifying party from any liability that it
may have to any such Person otherwise than under this Article II. In case any action or proceeding is brought against an
indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled
to participate therein and, unless in the reasonable opinion of outside counsel to the indemnified party a conflict of interest
between such indemnified and indemnifying parties may exist in respect of such claim, to assume the defense thereof jointly with
any other indemnifying party similarly notified, to the extent that it chooses, with counsel reasonably satisfactory to such indemnified
party, and after notice from the indemnifying party to such indemnified party that it so chooses, the indemnifying party shall
not be liable to such indemnified party for any legal or other expenses subsequently incurred by such indemnified party in connection
with the defense thereof other than reasonable costs of investigation; provided, however, that (i) if the indemnifying
party fails to take reasonable steps necessary to defend diligently the action or proceeding within 20 days after receiving notice
from such indemnified party, (ii) if such indemnified party who is a defendant in any action or proceeding that is also brought
against the indemnifying party reasonably shall have concluded that there may be one or more legal defenses available to such
indemnified party that are not available to the indemnifying party or (iii) if representation of both parties by the same
counsel is otherwise inappropriate under applicable standards of professional conduct, then, in any such case, the indemnified
party shall have the right to assume or continue its own defense as set forth above (but with no more than one firm of counsel
for all indemnified parties in each jurisdiction, except to the extent any indemnified party or parties reasonably shall have
concluded that there may be legal defenses available to such party or parties that are not available to the other indemnified
parties or to the extent representation of all indemnified parties by the same counsel is otherwise inappropriate under applicable
standards of professional conduct) and the indemnifying party shall be liable for any expenses therefor. Without the written consent
of the indemnified party, which consent shall not be unreasonably withheld, no indemnifying party shall effect the settlement
or compromise of, or consent to the entry of any judgment with respect to, any pending or threatened action or claim in respect
of which indemnification or contribution may be sought hereunder, whether or not the indemnified party is an actual or potential
party to such action or claim, unless such settlement, compromise or judgment (A) includes an unconditional release of the
indemnified party from all liability arising out of such action or claim and (B) does not include a statement as to or an
admission of fault, culpability or a failure to act, by or on behalf of any indemnified party.

 

(d)           If for any reason the foregoing indemnity is unavailable or is insufficient
to hold harmless an indemnified party under Section 2.9(a), (b) or (c), then each indemnifying party shall contribute to
the amount paid or payable by such indemnified party as a result of any Loss in such proportion as is appropriate to reflect the
relative fault of the indemnifying party, on the one hand, and the indemnified party, on the other hand, with respect to such
offering of securities. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied
by the indemnifying party or the indemnified party and the parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such untrue statement or omission. If, however, the allocation provided in the second preceding
sentence is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable by such
indemnified party in such proportion as is appropriate to reflect not only such relative faults but also the relative benefits
of the indemnifying party and the indemnified party as well as any other relevant equitable considerations. The parties hereto
agree that it would not be just and equitable if contributions pursuant to this Section 2.9(d) were to be determined by pro
rata allocation or by any other method of allocation which does not take account of the equitable considerations referred to in
the preceding sentences of this Section 2.9(d). The amount paid or payable in respect of any Loss shall be deemed to include
any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such
Loss. No Person guilty of fraudulent misrepresentation within the meaning of Section 11(f) of the Securities Act shall be
entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. Notwithstanding anything in
this Section 2.9(d) to the contrary, no indemnifying party other than the Company shall be required pursuant to this Section 2.9(d)
to contribute any amount in excess of the net proceeds received by such indemnifying party from the sale of Registrable Securities
in the offering to which the losses, claims, damages or liabilities of the indemnified parties relate, less the amount of any
indemnification payment made by such indemnifying party pursuant to Sections 2.9(b) and (c).

 

    	16

    	 

    

 

(e)           The indemnity and contribution agreements contained herein shall
be in addition to any other rights to indemnification or contribution which any indemnified party may have pursuant to law or
contract and shall remain operative and in full force and effect regardless of any investigation made or omitted by or on behalf
of any indemnified party and shall survive the transfer of the Registrable Securities by any such party.

 

(f)            The indemnification and contribution required by this Section 2.9
shall be made by periodic payments of the amount thereof during the course of the investigation or defense, as and when bills
are received or expense, loss, damage or liability is incurred.

 

Article
III

GENERAL

 

Section
3.1         Rule 144.
The Company covenants that (a) it will timely file the reports required to be filed by it under the Securities Act or the
Exchange Act or, if it is not required to file such reports, upon the request of any Holder it shall make publicly available other
information so long as necessary to permit sales of such Registrable Securities in compliance with Rule 144 under the Securities
Act and (b) it will take such further action as any Holder of Registrable Securities reasonably may request, all to the extent
required from time to time to enable such Holder to sell Registrable Securities without registration under the Securities Act
within the limitation of the exemptions provided by (i) Rule 144 under the Securities Act, as such Rule may be amended
from time to time, or (ii) any similar rule or regulation hereafter adopted by the SEC. Upon the request of any Holder of
Registrable Securities, the Company will deliver to such Holder a written statement as to whether it has complied with such requirements.

 

Section
3.2         Nominees
for Beneficial Owners. If Registrable Securities are held by a nominee for the beneficial owner thereof, the beneficial owner
thereof may, at its option, be treated as the Holder of such Registrable Securities for purposes of any request or other action
by any Holder or Holders of Registrable Securities pursuant to this Agreement or any determination of any number or percentage
of shares constituting Registrable Securities held by any Holder or Holders of Registrable Securities contemplated by this Agreement;
provided, that the Company shall have received assurances reasonably satisfactory to it of such beneficial ownership.

 

Section
3.3         No
Inconsistent Agreements. The rights granted to the Holders of Registrable Securities hereunder do not in any way conflict
with and are not inconsistent with any other agreements to which the Company is a party or by which it is bound.

 

    	17

    	 

    

 

Article
IV

MISCELLANEOUS

 

Section
4.1         Amendment;
Waiver and Termination.

 

(a)           Any provision of this Agreement may be amended or waived if, and
only if, such amendment or waiver is in writing and is signed, in the case of an amendment, by the Company and Holders of a majority
of the then outstanding Registrable Securities or, in the case of a waiver, by the party or parties against whom the waiver is
to be effective, in an instrument specifically designated as an amendment or waiver hereto; provided, however, that
waiver by the Holders shall require the consent of Holders of a majority of the then outstanding Registrable Securities.

 

(b)           No failure or delay of any party in exercising any right or remedy
hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment
or discontinuance of steps to enforce such right or power, or any course of conduct, preclude any other or further exercise thereof
or the exercise of any other right or power. The rights and remedies of the parties hereunder are cumulative and are not exclusive
of any rights or remedies which they would otherwise have hereunder.

 

(c)           The rights to request registration or inclusion of Registrable Securities
in any registration pursuant to the terms of this Agreement shall terminate upon the expiration of the Effectiveness Period.

 

Section
4.2         Notices.
All notices and other communications hereunder shall be in writing and shall be deemed duly given (a) on the date of delivery
if delivered personally, or if by facsimile or e-mail, upon written confirmation of receipt sent by the recipient via facsimile,
e-mail or otherwise, (b) on the first Business Day following the date of dispatch if delivered utilizing a next-day service
by a recognized next-day courier or (c) on the earlier of confirmed receipt or the fifth Business Day following the date
of mailing if delivered by registered or certified mail, return receipt requested, postage prepaid. All notices hereunder shall
be delivered to the addresses set forth below, or pursuant to such other instructions as may be designated in writing by the party
to receive such notice:

 

(i)         if
to any Holder other than the Original Holder, to its last known address appearing on the books of the Company maintained for such
purpose, and if to the Original Holder, to:

 

             932 Southwood Boulevard

             Incline Village, NV 89451

             Attention: General Counsel

             Telephone: (775) 832-8500

             Facsimile:
(775) 832-8501

 

    	18

    	 

    

 

             with
a copy (which shall not constitute notice) to:

 

             Karen
E. Bertero

             Gibson
Dunn & Crutcher LLP

             333
South Grand Avenue, Los Angeles, CA 90071-3197

             Telephone:
(213) 229-7360

             Facsimile:
(213) 229-7888

             Email: KBertero@gibsondunn.com

 

(ii)        if
to the Company, to:

 

             405
State Highway 121

             Suite
B-240

             Lewisville,
Texas 75067

             Attention:
General Counsel

             Telephone:
(972) 943-6050

 

             with
a copy (which shall not constitute notice) to:

          

             Mintz,
Levin, Cohn, Ferris, Glovsky and Popeo, P.C.

             One
Financial Center, Boston, MA 02111

             Attention:
Meryl Epstein

             Telephone:
(617) 348-1635

             Facsimile:
(617) 542-2241

             E-mail: MJEpstein@mintz.com

 

or
such other address as the Company or the Original Holder shall have specified to the other party in writing in accordance with
this Section 4.2.

 

Section
4.3         Interpretation.
When a reference is made in this Agreement to a Section or Article, such reference shall be to a Section or Article of this Agreement
unless otherwise indicated. The headings contained in this Agreement are for convenience of reference purposes only and shall
not affect in any way the meaning or interpretation of this Agreement. All words used in this Agreement will be construed to be
of such gender or number as the circumstances require. The word “including” and words of similar import when used
in this Agreement will mean “including, without limitation,” unless otherwise specified. The words “hereof,”
“herein” and “hereunder” and words of similar import when used in this Agreement shall refer to the Agreement
as a whole and not to any particular provision in this Agreement. The term “or” is not exclusive. The word “will”
shall be construed to have the same meaning and effect as the word “shall.” References to days mean calendar days
unless otherwise specified.

 

Section
4.4        Entire
Agreement. This Agreement, the Warrant and the Credit Agreement constitute the entire agreement, and supersede all prior written
agreements, arrangements, communications and understandings and all prior and contemporaneous oral agreements, arrangements, communications
and understandings between the parties with respect to the subject matter hereof and thereof.

 

    	19

    	 

    

 

Section
4.5        No
Third-Party Beneficiaries. Except as provided in Section 2.9, nothing in this Agreement, express or implied, is intended
to or shall confer upon any Person other than the parties and their respective successors and permitted assigns any legal or equitable
right, benefit or remedy of any nature under or by reason of this Agreement.

 

Section
4.6         Governing
Law. This Agreement and all disputes or controversies arising out of or relating to this Agreement or the transactions contemplated
hereby shall be governed by, and construed in accordance with, the internal laws of the State of New York, without regard to the
laws of any other jurisdiction that might be applied because of the conflicts of laws principles of the State of New York.

 

Section
4.7         Submission
to Jurisdiction. Each of the parties irrevocably agrees that any legal action or proceeding arising out of or relating to
this Agreement brought by the other party or its successors or assigns shall be brought and determined in any New York State or
federal court sitting in the Borough of Manhattan in The City of New York (or, if such court lacks subject matter jurisdiction,
in any appropriate New York State or federal court), and each of the parties hereby irrevocably submits to the exclusive jurisdiction
of the aforesaid courts for itself and with respect to its property, generally and unconditionally, with regard to any such action
or proceeding arising out of or relating to this Agreement and the transactions contemplated hereby. Each of the parties agrees
not to commence any action, suit or proceeding relating thereto except in the courts described above in New York, other than actions
in any court of competent jurisdiction to enforce any judgment, decree or award rendered by any such court in New York as described
herein. Each of the parties further agrees that notice as provided herein shall constitute sufficient service of process and the
parties further waive any argument that such service is insufficient. Each of the parties hereby irrevocably and unconditionally
waives, and agrees not to assert, by way of motion or as a defense, counterclaim or otherwise, in any action or proceeding arising
out of or relating to this Agreement or the transactions contemplated hereby, (a) any claim that it is not personally subject
to the jurisdiction of the courts in New York as described herein for any reason, (b) that it or its property is exempt or
immune from jurisdiction of any such court or from any legal process commenced in such courts (whether through service of notice,
attachment prior to judgment, attachment in aid of execution of judgment, execution of judgment or otherwise) and (c) that
(i) the suit, action or proceeding in any such court is brought in an inconvenient forum, (ii) the venue of such suit,
action or proceeding is improper or (iii) this Agreement, or the subject matter hereof, may not be enforced in or by such
courts.

 

Section
4.8        Assignment;
Successors. This Agreement will be binding upon, inure to the benefit of, and be enforceable by, the parties and their respective
successors and assigns. If any Person shall acquire Registrable Securities from any Holder in any manner, whether by operation
of law or otherwise, such Person shall promptly notify the Company and such Registrable Securities acquired from such Holder shall
be held subject to all of the terms of this Agreement, and by taking and holding such Registrable Securities such Person shall
be entitled to receive the benefits of and be conclusively deemed to have agreed to be bound by and to perform all of the terms
and provisions of this Agreement. Any such successor or assign shall agree in writing to acquire and hold the Registrable Securities
acquired from such Holder subject to all of the terms hereof. If any Holder shall acquire additional Registrable Securities, such
Registrable Securities shall be subject to all of the terms, and entitled to all of the benefits, of this Agreement.

 

    	20

    	 

    

 

Section
4.9        Enforcement.
The parties agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed
in accordance with their specific terms or were otherwise breached. Accordingly, each of the parties shall be entitled to specific
performance of the terms hereof, including an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically
the terms and provisions of this Agreement in any New York State or federal court sitting in the Borough of Manhattan in The City
of New York (or, if such court lacks subject matter jurisdiction, in any appropriate New York State or federal court), this being
in addition to any other remedy to which such party is entitled at law or in equity. Each of the parties hereby further waives
(a) any defense in any action for specific performance that a remedy at law would be adequate and (b) any requirement
under any law to post security as a prerequisite to obtaining equitable relief.

 

Section
4.10       Severability.
Whenever possible, each provision or portion of any provision of this Agreement shall be interpreted in such manner as to be effective
and valid under applicable law, but if any provision or portion of any provision of this Agreement is held to be invalid, illegal
or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability
shall not affect any other provision or portion of any provision in such jurisdiction, and this Agreement shall be reformed, construed
and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision or portion of any provision had never
been contained herein.

 

Section
4.11       Waiver of Jury
Trial. EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING
OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

Section
4.12       Counterparts. This Agreement may be executed in two or more counterparts, all of
which shall be considered one and the same instrument and shall become effective when one or more counterparts have been signed
by each of the parties and delivered to the other parties.

 

Section
4.13       Facsimile or .pdf
Signature. This Agreement may be executed by facsimile or .pdf signature and a facsimile or .pdf signature shall constitute
an original for all purposes

 

Section
4.14      Time of Essence.
Time is of the essence with regard to all dates and time periods set forth or referred to in this Agreement.

 

Section
4.15      No Presumption
Against Drafting Party. Each of the parties hereto acknowledges that it has been represented by counsel in connection with
this Agreement and the transactions contemplated by this Agreement. Accordingly, any rule of law or any legal decision that would
require interpretation of any claimed ambiguities in this Agreement against the drafting party has no application and is expressly
waived.

 

[The
remainder of this page is intentionally left blank.]

 

    	21

    	 

    

 

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

	 	 	 	 
	 	CAREVIEW COMMUNICATIONS, INC., a Nevada corporation,
	 	 	 
	 	By:	/s/ Steven Johnson	 
	 	Name: Steven Johnson
	 	Title: President and CEO

 

Signature Page to Registration
Rights Agreement

 

    	 

    	 

    

 

	 	 	 	 
	 	PDL BIOPHARMA, INC., a Delaware corporation
	 	 	 
	 	By:	/s/ John P,
    McLaughlin	 
	 	Name: John P. McLaughlin
	 	Title:   President and Chief Executive Officer
	

 

Signature Page to Registration
Rights AgreementCareview Communications. Inc. 8-K 

 Exhibit
10.07

 

Execution
Version

 

THIS
WARRANT AND THE COMMON STOCK ISSUABLE UPON EXERCISE HEREOF HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION
WITH, THE SALE OR DISTRIBUTION THEREOF AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. SUCH SECURITIES
MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED, DISTRIBUTED, TRANSFERRED OR OTHERWISE DISPOSED EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR AN EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS.

	 	 
	Date of Issuance: June 26, 2015	Number of Shares: 4,444,445
	 	(subject to adjustment)

 

WARRANT
TO PURCHASE COMMON STOCK OF  

 

CAREVIEW
COMMUNICATIONS, INC.

 

CareView
Communications, Inc., a Nevada corporation (the “Company”), for value received, hereby certifies that PDL BioPharma,
Inc., a Delaware corporation, or its registered assigns (the “Registered Holder”), is entitled, subject to
the terms set forth herein, to purchase from the Company, at any time after the date hereof and on or before June 26, 2025 (the
“Expiration Date”), up to Four Million Four Hundred and Forty Four Thousand Four Hundred and Forty Five (4,444,445)
shares, as adjusted from time to time pursuant to the provisions of this Warrant, of common stock of the Company, par value $0.001
(“Common Stock”), at an exercise price of $0.45 per share. The securities issuable upon exercise of this Warrant
and the exercise price per share, each as adjusted from time to time pursuant to the provisions of this Warrant, are sometimes
hereinafter referred to as the “Warrant Stock” and the “Exercise Price,” respectively.

 

This
Warrant is issued pursuant to that certain Credit Agreement dated as of June 26, 2015 (the “Credit Agreement”),
by and among the Company, CareView Communications, Inc., a Texas corporation and a wholly-owned subsidiary of the Company, and
PDL BioPharma, Inc.

 

1.             EXERCISE
OF WARRANT 

			

 

Section
1.1           Payment.
Subject to compliance with the terms and conditions of this Warrant and applicable securities laws, this Warrant may be exercised
by the Registered Holder, in whole or in part, at any time or from time to time, on or before the Expiration Date by (a) surrender
of this Warrant at the principal office of the Company, or such other office or agency as the Company may designate, together
with the form of Notice of Exercise attached hereto as Exhibit A (the “Notice of Exercise”)
duly executed by the Registered Holder or by such Registered Holder’s duly authorized attorney, and (b) payment in
full of the aggregate Exercise Price payable in respect of the number of shares of Warrant Stock purchased upon such exercise
(the “Purchase Price”), unless the Registered Holder elects a net issue exercise in accordance with Section 1.2.
The Purchase Price may be paid by (i) cash, check or wire transfer of immediately available funds to the Company, (ii) cancellation
and surrender by the Registered Holder of promissory notes or other instruments representing indebtedness of the Company to the
Registered Holder or (iii) a combination of (i) and (ii).

 

    	 

    	 

    

 

Section
1.2           Net
Issue Exercise.

 

(a)            In
lieu of exercising this Warrant in the manner provided in Section 1.1, the Registered Holder may elect to receive shares of Warrant
Stock equal to the value of this Warrant (or the portion thereof being exercised and canceled) by surrender of this Warrant at
the principal office of the Company, or such other office or agency as the Company may designate, together with the Notice of
Exercise duly executed by the Registered Holder or such Registered Holder’s duly authorized attorney, in which event the
Company shall issue to the Registered Holder a number of shares of Warrant Stock computed using the following formula:

	 	 
	X =	Y (A
    - B)
	 	A

 

		Where	X
                                         =	The
                                         number of shares of Warrant Stock to be issued to the Registered Holder.

 

			Y
                                         =	The
                                         number of shares of Warrant Stock being purchased under this Warrant pursuant to the
                                         Notice of Exercise (as adjusted to the date of such calculation).

 

			A
                                         =	The
                                         Fair Market Value of one share of Warrant Stock (as adjusted to the date of such calculation).

 

			B
                                         =	The
                                         Exercise Price (as adjusted to the date of such calculation).

 

All
references herein to an “exercise” of the Warrant in this Warrant shall include an exchange pursuant to this Section 1.2.

 

(b)            For
purposes of this Warrant, the term “Fair Market Value” of a share of Warrant Stock as of a particular date shall mean:

 

  (i)       
If the Common Stock is traded on a securities exchange or Nasdaq,
the Fair Market Value shall be deemed to be the average of the closing prices thereof on such exchange or market over the 30 trading
days ending immediately prior to (but not including) the applicable date of valuation;

 

  (ii)      
If the Common Stock is actively traded over-the-counter, the Fair Market Value shall be deemed to be the average of the
closing bid prices over the 30-day period ending immediately prior to (but not including) the applicable date of valuation;

 

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  (iii)     
If there is no active public market for the Common Stock but there
is an active public market for a class or series of capital stock of the Company into which the Common Stock is convertible, then
if such class or series of capital stock is:

 

(A)          traded
on a securities exchange or Nasdaq, the Fair Market Value shall be deemed to be the average of the closing prices of a share of
such class or series of capital stock of the Company on such exchange or market over the five trading days ending immediately
prior to (but not including) the applicable date of valuation multiplied by the number of shares of such class or series of capital
stock into which one share of the Common Stock is convertible, or

 

(B)          actively
traded over-the-counter, the Fair Market Value shall be deemed to be the average of the closing bid prices for a share of such
class or series of capital stock of the Company over the 30-day period ending immediately prior to (but not including) the applicable
date of valuation multiplied by the number of shares of such class or series of capital stock into which one share of the Common
Stock is convertible; or

 

  (iv)         If
there is no active public market for the Common Stock or any other class or series of capital stock of the Company into which
the Common Stock is convertible, the Fair Market Value shall be the highest price which the Company could obtain on the date of
calculation from a willing buyer (not a current employee or director) for shares of Common Stock sold by the Company, from authorized
but unissued shares, as reasonably determined in good faith by the Board of Directors.

 

Section
1.3         Effective
Time of Exercise. The exercise of this Warrant in whole or in part shall be deemed to have been effected immediately prior
to the close of business on the day on which a Notice of Exercise with respect to this Warrant shall have been surrendered to
the Company as provided in Section 1.1 or Section 1.2 above, as applicable. The person entitled to receive shares of Warrant Stock
issuable upon exercise of this Warrant in whole or in part shall be treated for all purposes as the holder of record of such shares
as of the close of business on the date the Registered Holder is deemed to have exercised this Warrant.

 

Section
1.4         Stock Certificates;
Fractional Shares; Partial Exercise.

 

(a)         
As soon as practicable on or after the date of exercise determined
in accordance with Section 1.3, the Company shall issue the number of shares of Warrant Stock to which the Registered Holder is
entitled upon the exercise. On or before the first business day following the date of any exercise of this Warrant, the Company
shall transmit by facsimile an acknowledgment of confirmation of receipt of the Notice of Exercise to the Registered Holder and
the Company’s transfer agent (the “Transfer Agent”). On or before the third business day following the
date of any exercise of this Warrant, the Company shall (A) provided that the Transfer Agent is participating in The Depository
Trust Company (“DTC”) Fast Automated Securities Transfer Program, upon the request of the Registered Holder,
credit the aggregate number of Warrant Stock to which the Registered Holder is entitled pursuant to such exercise to the Registered
Holder’s or its designee’s balance account with DTC through its Deposit Withdrawal At Custodian system, or (B) if
the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program, issue and deliver by overnight
courier to the address as specified in the Notice of Exercise, a certificate, registered in the Company’s share register
in the name of the Registered Holder or its designee, for the number of shares of Warrant Stock to which the Registered Holder
is entitled pursuant to such exercise. The Company shall be responsible for all fees and expenses of the Transfer Agent and all
fees and expenses with respect to the issuance of Warrant Stock via DTC, if any. Any certificates so delivered shall be in such
denominations as may be requested by the Registered Holder and shall be registered in the name of the Registered Holder or such
other name as shall be designated by the Registered Holder, as specified in the Notice of Exercise.

 

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(b)        
No fractional shares or scrip representing fractional shares shall
be issued upon an exercise of this Warrant. In lieu of any fraction shares which would otherwise be issuable, the Company shall
pay cash equal to the product of such fraction multiplied by the Fair Market Value of one share of Warrant Stock on the date of
exercise determined in accordance with Section 1.3.

 

(c)         
In case of any partial exercise of this Warrant, the Company shall
cancel this Warrant and shall execute and deliver a new warrant or warrants (dated the date hereof) of like terms and with the
same date, calling in the aggregate on the face or faces thereof for the number of shares of Warrant Stock equal (without giving
effect to any adjustment thereof) to the number of such shares called for on the face of this Warrant minus the number of such
shares purchased by the Registered Holder upon such exercise as provided in this Section 1 (without giving effect to any adjustment
thereof).

 

2.             ADJUSTMENT
OF NUMBER OF SHARES AND EXERCISE PRICE

 

 The
number of shares of Warrant Stock issuable upon exercise of this Warrant and the Exercise Price are subject to adjustment as follows:

 

Section
2.1         Adjustment
for Stock Splits, Stock Subdivisions or Combinations of Shares. If all or any portion of the outstanding shares of the
Common Stock shall be subdivided into a greater number of shares, the Exercise Price in effect immediately prior to such subdivision
shall, simultaneously with the effectiveness of such subdivision, be proportionately reduced. If all or any portion of the outstanding
shares of the Common Stock shall be combined into a smaller number of shares, the Exercise Price in effect immediately prior to
such combination shall, simultaneously with the effectiveness of such combination, be proportionately increased. When any adjustment
is required to be made in the Exercise Price, the number of shares of Warrant Stock purchasable upon the exercise of this Warrant
shall be changed to the number determined by dividing (a) an amount equal to the number of shares issuable upon the exercise of
this Warrant immediately prior to such adjustment, multiplied by the Exercise Price in effect immediately prior to such adjustment,
by (b) the Exercise Price in effect immediately after such adjustment.

 

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Section
2.2         Adjustment
for Dividends or Distributions of Stock or Other Securities or Property. In case the Company shall make or issue, or shall
fix a record date for the determination of eligible holders entitled to receive, a dividend or other distribution with respect
to all or any portion of the outstanding shares of the Common Stock payable in (a) securities of the Company or (b) assets
(excluding cash dividends paid or payable solely out of retained earnings), then, in each such case, the Registered Holder on
exercise hereof at any time after the consummation, effective date or record date of such dividend or other distribution, shall
receive, in addition to the shares of Warrant Stock issuable on such exercise prior to such date, and without the payment of additional
consideration therefor, the securities or such other assets of the Company to which the Registered Holder would have been entitled
upon such date if the Registered Holder had exercised this Warrant on the date hereof and had thereafter, during the period from
the date hereof to and including the date of such exercise, retained such shares and/or all other additional stock available by
it as aforesaid during such period giving effect to all adjustments called for by this Section 2.

 

Section
2.3         Reclassification.
If the Company, by reclassification of securities or otherwise, shall change the Common Stock into the same or a different number
of securities of any other class or classes, this Warrant shall thereafter represent the right to acquire such number and kind
of securities as would have been issuable as the result of such change with respect to the Common Stock immediately prior to such
reclassification or other change and the Exercise Price therefore shall be appropriately adjusted, all subject to further adjustment
as provided in this Section 2. No adjustment shall be made pursuant to this Section 2.3 upon any conversion or redemption of Common
Stock which is the subject of Section 2.5.

 

Section
2.4         Adjustment
for Capital Reorganization, Merger or Consolidation. In case of any capital reorganization of the capital stock of the Company
(other than a combination, reclassification, exchange or subdivision of shares otherwise provided for herein), any Acquisition
or any other merger or consolidation of the Company with or into another organization, or the sale of all or substantially all
the assets of the Company then, and in each such case, as a part of such transaction, lawful provision shall be made so that the
Registered Holder shall thereafter be entitled to receive upon exercise of this Warrant, during the period specified herein and
upon payment of the applicable Purchase Price, the number of shares of stock or other securities or property of the successor
organization resulting from such transaction that a holder of the securities deliverable upon exercise of this Warrant would have
been entitled to receive in such transaction if this Warrant had been exercised immediately before such transaction, all subject
to further adjustment as provided in this Section 2. The foregoing provisions of this Section 2.4 shall similarly apply to successive
acquisitions, reorganizations, consolidations, mergers, sales, transfers and similar transactions and to the stock or securities
of any other organizations that are at the time receivable upon the exercise of this Warrant. If the per-share consideration payable
to the Registered Holder for shares in connection with any such transaction is in a form other than cash, then the provisions
of Section 1.2(b) shall be applied except that each reference to Warrant Stock shall be replaced by the consideration payable
in connection with such transaction. If the provisions of Section 1.2(b) cannot be applied to value such consideration, then the
value of such consideration shall be determined in good faith by the Company’s Board of Directors. In all events, appropriate
adjustment, as determined in good faith by the Company’s Board of Directors, shall be made in the application of the provisions
of this Warrant with respect to the rights and interests of the Registered Holder after the transaction, to the end that the provisions
of this Warrant shall be applicable after that event, as near as reasonably may be, in relation to any shares or other property
deliverable after that event upon exercise of this Warrant.

 

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Section
2.5         Conversion
of Warrant Stock. In case all or any portion of the outstanding shares of the Common Stock are redeemed or converted into
other securities or property pursuant to the Company’s Articles of Incorporation or otherwise, or the Common Stock otherwise
ceases to exist, then, in such case, the Registered Holder of this Warrant, upon exercise hereof at any time after the date on
which the Common Stock is so redeemed or converted, or ceases to exist (the “Termination Date”), shall receive,
in lieu of the number of shares of Warrant Stock that would have been issuable upon such exercise immediately prior to the Termination
Date, the securities or property that would have been received if this Warrant had been exercised in full and the Warrant Stock
received thereupon had been simultaneously converted immediately prior to the Termination Date, all subject to further adjustment
as provided in this Warrant. Additionally, the Exercise Price shall be immediately adjusted to equal the quotient obtained by
dividing (a) the aggregate Purchase Price of the maximum number of shares of Warrant Stock for which this Warrant was exercisable
immediately prior to the Termination Date by (b) the number of shares of Warrant Stock for which this Warrant is exercisable
immediately after the Termination Date, all subject to further adjustment as provided herein.

 

Section
2.6         Certificate
as to Adjustments. When any adjustment in the Exercise Price or the number or type of shares issuable upon exercise of this
Warrant is required to be made pursuant to this Section 2, the Chief Financial Officer or Controller of the Company shall compute
such adjustment in accordance with the terms of this Warrant and prepare a certificate setting forth (a) a brief statement of
the facts upon which such adjustment is based, (b) the Exercise Price after such adjustment and (c) the kind and amount of stock
into which this Warrant shall be exercisable after such adjustment. The Company shall promptly send (by electronic transmission
and/or facsimile and by either first class mail, postage prepaid or overnight delivery) a copy of each such certificate to the
Registered Holder.

 

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3.             TRANSFERS

 

Section
3.1         Unregistered
Securities. Each holder of this Warrant acknowledges that this Warrant and the Warrant Stock have not been registered under
the Securities Act of 1933, as amended (the “Securities Act”), and agrees not to sell, offer for sale, pledge,
hypothecate, distribute, transfer or otherwise dispose of this Warrant or any Warrant Stock issued upon its exercise in the absence
of (a) an effective registration statement under the Securities Act as to this Warrant or such Warrant Stock and registration
or qualification of this Warrant or such Warrant Stock under any applicable state securities law then in effect, (b) an applicable
exemption from such registration requirements of the Securities Act and registration or qualification requirements under any applicable
state securities law then in effect or (c) the availability of Rule 144 promulgated under the Securities Act for the sale
of such securities. Each certificate or other instrument for Warrant Stock issued upon the exercise of this Warrant pursuant to
Section 1.4(a) shall bear a legend as follows, unless issued or sold pursuant to an effective registration statement or if, in
the reasonable opinion of securities counsel for the Company, such legend is not necessary:

 

THE
SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE
OR DISTRIBUTION THEREOF AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. SUCH SHARES MAY NOT BE SOLD,
OFFERED FOR SALE, PLEDGED, HYPOTHECATED, DISTRIBUTED, TRANSFERRED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION
OR UNLESS THE COMPANY RECEIVES AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY STATING THAT SUCH SALE OR TRANSFER IS EXEMPT
FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF SAID ACT.”

 

Section
3.2         Transferability.

 

(a)        
This Warrant and all rights and obligations hereunder may be transferred
to any person, in whole or in part, on the books of the Company maintained pursuant to Section 3.3 upon surrender of the Warrant
with a properly executed form of Assignment attached hereto as Exhibit B (the “Form of Assignment”)
at the principal office of the Company. Upon the proper surrender by the Registered Holder of the Warrant, the Company will issue
and deliver to or upon the order of the Registered Holder a new Warrant or Warrants of like tenor as such Registered Holder may
direct, calling in the aggregate on the face or faces thereof for the number of shares of Warrant Stock called for on the face
of the Warrant so surrendered.

 

(b)        
Each holder of this Warrant, by holding the same, consents and agrees
that when this Warrant shall have been so endorsed, the person in possession of this Warrant may be treated by the Company, and
all other persons dealing with this Warrant, as the absolute owner hereof and as the Registered Holder for any purpose and as
the person entitled to exercise the rights represented hereby, any notice to the contrary notwithstanding; provided, however
that until a transfer of this Warrant is properly made pursuant to the terms of this Warrant and duly registered on the books
of the Company maintained pursuant to Section 3.3, the Company may treat the Registered Holder hereof as the owner for all purposes.

 

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Section
3.3         Warrant Register.
The Company or its agent will maintain a register containing the names and addresses of the Registered Holder of this Warrant,
and will promptly update such register to reflect any transfers in compliance with the terms hereof. Until any transfer of this
Warrant is reflected in the warrant register maintained pursuant to this Section 3.3, the Company may treat the Registered Holder
of this Warrant as the absolute owner hereof for all purposes. Any Registered Holder may change such Registered Holder’s
address as shown on the warrant register by written notice to the Company requesting such change.

 

4.             REPRESENTATIONS
AND WARRANTIES OF THE COMPANY

 

 The
Company hereby represents and warrants to the Registered Holder as follows:

 

Section
4.1         Authorization;
Enforceability. The Company has full corporate power and authority to execute and deliver this Warrant, to perform its obligations
hereunder and to consummate the transactions contemplated hereby, including the authorization, issuance and delivery of the Warrant
Stock. The execution, delivery and performance by the Company of this Warrant and the consummation by the Company of the transactions
contemplated hereby have been duly and validly authorized by the Board of Directors of the Company. This Warrant has been duly
executed and delivered by the Company and constitutes the legal, valid and binding obligation of the Company, enforceable against
the Company in accordance with its terms, except as enforcement may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting creditors’ rights generally and by general principles of equity (regardless of whether
considered in a proceeding in equity or at law).

 

Section
4.2         Valid Issuance
of Securities. The Warrant Stock to be issued hereunder, when issued, sold and delivered in accordance with the terms hereof
for the consideration expressed herein, will be duly and validly issued, fully paid and nonassessable and free of restrictions
on transfer other than restrictions on transfer under this Warrant and applicable state and federal securities laws and liens
or encumbrances created by or imposed by the Registered Holder.

 

Section
4.3         Government
Consents. No consent, approval, order or authorization of, or registration, qualification, designation, declaration or filing
with, any federal, state or local governmental authority on the part of the Company is required in connection with the issuance
of the Warrant or the Warrant Stock by the Company.

 

Section
4.4         No Conflict.
The execution and delivery of this Warrant and the performance of the Company’s obligations hereunder, including the issuance
of the Warrant Stock, (a) will not result in any violation of the Company’s Articles of Incorporation or Bylaws or (b) be
in conflict with or constitute, with or without the passage of time or giving of notice, either or both a material violation or
default under any material agreement, instrument, judgment, order, writ, decree or contract or an event which results in the creation
of any material lien, charge or encumbrance upon any assets of the Company or cause an acceleration of any obligation under any
such material agreement, instrument, judgment, order, writ, decree or contract.

 

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5.             REPRESENTATIONS
AND WARRANTIES OF THE REGISTERED HOLDER

 

 The
Registered Holder hereby represents and warrants to the Company as follows:

 

Section
5.1         Certain Securities
Laws Matters. By acceptance of this Warrant, the Registered Holder hereby confirms that this Warrant is acquired for investment
only and not with a view to, or for sale in connection with, any distribution; that the Registered Holder has had such opportunity
as such Registered Holder has deemed adequate to obtain from representatives of the Company such information as is necessary to
permit the Registered Holder to evaluate the merits and risks of its investment in the Company; that the Registered Holder is
able to bear the economic risk of holding the Warrant and/or the Warrant Stock (or any shares of stock or other securities at
the time issuable upon exercise of the Warrant) for an indefinite period; that the Registered Holder understands that this Warrant
and the Warrant Stock (or any shares of stock or other securities at the time issuable upon exercise of the Warrant) are not and
will not be registered under the Securities Act except as set forth in in the Registration Rights Agreement (as defined in Section
6.4 hereof) and will be “restricted securities” within the meaning of Rule 144 under the Securities Act; and that
the Registered Holder is an “accredited investor” as such term is defined in Rule 501 of Regulation D promulgated
under the Securities Act.

 

6.             COVENANTS
OF THE COMPANY

 

Section
6.1         Reservation
and Listing of Securities. The Company hereby covenants that (a) at all times there shall be reserved for issuance and
delivery upon exercise of this Warrant such number of shares of Common Stock as may be issuable from time to time upon exercise
hereof in full and, from time to time, will take all steps necessary to amend its Articles of Incorporation to provide sufficient
reserves of shares of Common Stock, and (b) it will cause the Warrant Stock to be authorized to be listed on a securities
exchange or Nasdaq if the Common Stock is listed on such exchange or Nasdaq.

 

Section
6.2         No Impairment.
The Company will not, by amendment of its Articles of Incorporation or Bylaws, or through reorganization, consolidation, merger,
dissolution, issue or sale of securities, sale of assets or any other voluntary action, avoid or seek to avoid the observance
or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such
terms and in the taking of all such action as may be necessary or appropriate in order to protect the rights of the Registered
Holder against impairment.

 

Section
6.3         Replacement
Warrants. Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of
this Warrant, the Company will issue, in lieu thereof, a new Warrant of like tenor.

 

Section
6.4         Registration
Rights. All shares of Warrant Stock are subject to that certain Registration Rights Agreement dated as of June 26, 2015 by
and between the Company and the Registered Holder (the “Registration Rights Agreement”), and the Registered
Holder shall be deemed to be a “Holder” pursuant to the Registration Rights Agreement and is entitled, subject to
the terms and conditions of the Registration Rights Agreement, to all registration rights granted to Holders thereunder.

 

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7.             NOTICES

 

Section
7.1         Record Dates.
In case:

 

(a)         
the Company shall set a record date for the holders of the Common
Stock for the purpose of entitling or enabling them to receive any dividend or other distribution (excluding cash dividends paid
or payable solely out of retained earnings), or to receive any right to subscribe for or purchase any shares of stock of any class
or any other securities, or to receive any other right;

 

(b)        
of any capital reorganization of the Company, any reclassification
of the capital stock of the Company, any consolidation or merger of the Company with or into another organization (other than
a consolidation or merger in which the Company is the surviving entity), or any transfer of all or substantially all of the assets
of the Company; or

 

(c)        
of the voluntary or involuntary dissolution, liquidation or winding-up
of the Company,

 

then,
and in each such case, the Company will mail or cause to be mailed to the Registered Holder of this Warrant a notice specifying,
as the case may be, (i) the record date for the purpose of such dividend, distribution or right, and stating the amount and
character of such dividend, distribution or right, or (ii) the effective date on which such reorganization, reclassification,
consolidation, merger, transfer, dissolution, liquidation or winding-up is to take place, the time, if any is to be fixed, as
of which the holders of record of capital stock of the Company (or such other securities at the time deliverable upon such reorganization,
reclassification, consolidation, merger, transfer, dissolution, liquidation or winding-up) are to be determined, and the material
terms and conditions of the impending transaction. In each such case, the notice shall be provided at least 20 business days prior
to the record date or effective date for the event specified in such notice, in each case in accordance with the provisions of
Section 7.2.

 

Section
7.2         Generally.
Unless otherwise provided herein, any notice required or permitted by this Warrant shall be in writing and shall be deemed sufficient
upon delivery, when delivered personally or by overnight courier or if sent by facsimile, upon written confirmation of receipt
of facsimile, or five business days following deposit in the U.S. mail, as certified or registered mail, with postage prepaid,
addressed to the party to be notified at such party’s address as set forth on the signature page, or as subsequently modified
by written notice.

 

8.             MISCELLANEOUS

 

Section
8.1         No Rights
or Liabilities as a Stockholder. This Warrant shall not entitle the Registered Holder to any voting rights or other rights
as a stockholder of the Company. In the absence of affirmative action by the Registered Holder to purchase Warrant Stock by exercise
of this Warrant, no provisions of this Warrant, and no enumeration herein of the rights or privileges of the Registered Holder
hereof, shall cause the Registered Holder to be or have any rights of a stockholder of the Company for any purpose.

 

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Section
8.2         Survival
of Representations and Warranties. Unless otherwise set forth in this Warrant, the warranties, representations and covenants
of the Company and the Registered Holder contained in or made pursuant to this Warrant shall survive the execution and delivery
of this Warrant.

 

Section
8.3         Amendment
and Modification. This Warrant may not be amended, modified or supplemented in any manner, whether by course of conduct or
otherwise, except by an instrument in writing specifically designated as an amendment hereto, signed on behalf of each of the
parties in interest at the time of the amendment.

 

Section
8.4         Waiver.
No failure or delay of any party in exercising any right or remedy hereunder shall operate as a waiver thereof, nor shall any
single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such right or
power, or any course of conduct, preclude any other or further exercise thereof or the exercise of any other right or power. Any
agreement on the part of a party hereto to waive any right or power hereunder shall be valid only if set forth in a written instrument
executed and delivered by or on behalf of such party. The rights and remedies of the parties hereunder are cumulative and are
not exclusive of any rights or remedies which they would otherwise have hereunder.

 

Section
8.5         Assignment;
Successors and Assigns. This Warrant and any of the rights, interests or obligations under this Warrant may be assigned, in
whole or in part, by operation of law or otherwise, by the Registered Holder. This Warrant will be binding upon, inure to the
benefit of, and be enforceable by, the parties and their respective successors and assigns.

 

Section
8.6         Interpretation.
When a reference is made in this Warrant to a Section or Exhibit such reference shall be to a Section or Exhibit of this Warrant
unless otherwise indicated. The headings contained in this Warrant or in any Exhibit are for convenience of reference purposes
only and shall not affect in any way the meaning or interpretation of this Warrant. All words used in this Agreement will be construed
to be of such gender or number as the circumstances require. Any capitalized terms used in any Exhibit but not otherwise defined
therein shall have the meaning as defined in this Warrant. All Exhibits annexed hereto or referred to herein are hereby incorporated
in and made a part of this Warrant as if set forth herein. The word “including” and words of similar import when used
in this Agreement will mean “including, without limitation,” unless otherwise specified.

 

Section
8.7         Governing
Law. This Warrant and all disputes or controversies arising out of or relating to this Warrant or the transactions contemplated
hereby shall be governed by, and construed in accordance with, the internal laws of the State of New York, without regard to the
laws of any other jurisdiction that might be applied because of the conflicts of laws principles of the State of New York.

 

    	11

    	 

    

 

Section
8.8         Severability.
Whenever possible, each provision or portion of any provision of this Warrant shall be interpreted in such manner as to be effective
and valid under applicable law, but if any provision or portion of any provision of this Warrant is held to be invalid, illegal
or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability
shall not affect any other provision or portion of any provision in such jurisdiction, and this Warrant shall be reformed, construed
and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision or portion of any provision had never
been contained herein.

 

Section
8.9         Counterparts.
This Warrant may be executed in two or more counterparts, all of which shall be considered one and the same instrument and shall
become effective when one or more counterparts have been signed by each of the parties and delivered to the other parties.

 

[The
remainder of this page is intentionally left blank.]

 

    	12

    	 

    

 

IN
WITNESS WHEREOF, the parties hereto have executed this Warrant as of June 26, 2015. 

	 	 	 
	 	CAREVIEW COMMUNICATIONS, INC.
	 	 
	 	/s/ Steven Johnson
	 	Name: Steven Johnson
	 	Title:   CEO

 

Signature Page to Warrant to Purchase Commomn Stock of
CareView Communications, Inc.

 

    	 

    	 

    

 

Acknowledged
and Agreed:

	 	 
	REGISTERED HOLDER:
	 
	PDL BIOPHARMA, INC.
	 
	By:	/s/
    John P. McLaughlin
	Name: John P. McLaughlin
	Title:   President and Chief Executive Officer

 

Signature Page to Warrant to Purchase Commomn Stock of
CareView Communications, Inc.

 

    	 

    	 

    

  

EXHIBIT
A

 

NOTICE
OF EXERCISE

 

WARRANT
TO PURCHASE COMMON STOCK OF CAREVIEW COMMUNICATIONS, INC.

 

The
undersigned hereby irrevocably elects to exercise the right of purchase represented by the Warrant of CareView Communications,
Inc. dated June 26, 2015 for, and to purchase thereunder, such number of shares of Warrant Stock (or such other securities or
property for which this Warrant may then be exercised) indicated below of CareView Communications, Inc. as provided for therein,
and (check the applicable box(es)):

 

		☐	Tenders
                                         herewith payment of the Purchase Price in the form of cash or a certified or official
                                         bank check in same-day funds (or has initiated a wire) in the amount of $____________
                                         for _________ shares of Warrant Stock.

 

		☐	Tenders
                                         herewith payment of the Purchase Price in the form of the surrender and cancellation
                                         of indebtedness of the Company held by the Registered Holder in the amount of $____________
                                         (the “Indebtedness”) for _________ shares of Warrant Stock. The Indebtedness
                                         represents a portion of the indebtedness outstanding under the Credit Agreement (as such
                                         term is defined in the Warrant).

 

		☐	Elects
                                         a Net Issue Exercise pursuant to Section 1.2, and accordingly requests delivery
                                         of a net of _________ shares of Warrant Stock, calculated as follows:

	 	 	 	 	 
	X = 	Y (A-B)	 	(        ) = 	(        )
    [(        ) – (         )]
	 	A	 	 	            (_____)

 

			X = the
                                         number of shares of Warrant Stock to be issued to the Registered Holder.

                                         Y = the number of shares of Warrant Stock purchasable under the portion of the Warrant
                                         being exchanged (as adjusted to the date of such calculation).

                                         A = the Fair Market Value of one share of Warrant Stock

                                         B = Purchase Price (as adjusted to the date of such calculation)

 

Please
issue such shares of Warrant Stock in the name of and pay any cash for any fractional share to (please print name, address and
taxpayer i.d. number): 

	 	 
	Name:	 
	 	 
	Address:	 
	 	 
	Tax. I.D.:	 
	 	 
	Signature:	 

 

Notice of Exercise

 

    	 

    	 

    

 

Note:
The above signature must correspond to the name as written upon the face of the Warrant in every particular, without alteration
or any change whatsoever. If said number of Warrant Shares shall not be all of the Warrant Shares purchasable under the Warrant,
a new Warrant is to be issued in the name of said undersigned for the balance remaining of the Warrant Shares purchasable thereunder.

 

Notice of Exercise

 

    	 

    	 

    

 

EXHIBIT
B

 

ASSIGNMENT

 

WARRANT
TO PURCHASE COMMON STOCK OF CAREVIEW COMMUNICATIONS, INC.

 

For
value received, the undersigned hereby sells, assigns and transfers unto ________________________ the within Warrant, together
with all right, title and interest therein, and does hereby irrevocably constitute and appoint _________________________ attorney,
to transfer said Warrant on the books of CareView Communications, Inc. with respect to the number of shares of Warrant Stock set
forth below, with full power of substitution in the premises:

 

	Name(s)
    of Assignee(s)	Address	#
    of Shares of Warrant Stock
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

And
if said number of shares of Warrant Stock shall not be all the number of shares of Warrant Stock represented by the Warrant, a
new Warrant is to be issued in the name of said undersigned for the balance remaining of the Warrants registered by said Warrant.

	 	 
	Dated:	 
	 	 
	Signature:	 

 

Note:
The signature to the foregoing Assignment must correspond to the name as written upon the face of the Warrant in every particular,
without alteration or any change whatsoever.

 

Form of Assignment

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