Document:

Subscription and Investors Rights Agreement

 EXHIBIT 10.00 

SUBSCRIPTION AND INVESTOR RIGHTS AGREEMENT 

AMONG 

CAREVIEW COMMUNICATIONS, L.L.C. 

AND 

T2
 
 DATED FEBRUARY 28, 2005 

 TABLE OF CONTENTS 

 

			
	 ARTICLE I GLOSSARY AND INTERESTS
	  	1
	 1.1 Glossary
	  	1
	 1.2 Purchase and Sale of Interests
	  	1
		
	 ARTICLE II REPRESENTATION AND WARRANTIES
	  	2
	 2.1 Representations and Warranties of the Company
	  	2
	 2.2 Representations and Warranties of
T2
	  	6
		
	 ARTICLE III RIGHTS OF
T2
	  	6
	 3.1 Come-Along Right
	  	6
	 3.2 Information Rights
	  	7
	 3.3 Registration Rights
	  	8
	 3.4 Rights of Transferees
	  	8
		
	 ARTICLE IV THOMPSON SERVICES
	  	8
	 4.1 Chairman of the Board
	  	8
	 4.2 Article IV Payments
	  	9
	 4.3 Termination of Service Period
	  	9
	 4.4 Article IV Conditions Subsequent
	  	10
	 4.5 Termination of Engagement Letter
	  	11
		
	 ARTICLE V DISPUTE RESOLUTION
	  	11
	 5.1 Disputes
	  	11
	 5.2 Resolution of Purported Breaches by the Parties
	  	11
	 5.3 Payment Cures
	  	12
	 5.4 Governing Law
	  	12
		
	 ARTICLE VI MISCELLANEOUS
	  	12
	 6.1 Notices
	  	12
	 6.2 Further Assurances
	  	13
	 6.3 Severability
	  	13
	 6.4 Specific Performance
	  	13
	 6.5 Governing Law
	  	13
	 6.6 Amendments
	  	13
	 6.7 Counterparts
	  	13
	 6.8 Noncompetition
	  	14
	 6.9. Noncircumvention
	  	14
		
	 EXHIBIT 1 : DEFINITIONS
	  	1
	 EXHIBIT 1.2 : OPERATING AGREEMENT OF CAREVIEW
	  	1

  

 i 

			
	 EXHIBIT 2.1B : CAREVIEW CAPITALIZATION
	  	1
	 EXHIBIT 2.1C : CAREVIEW OWNERS AND DEBTHOLDERS
	  	1
	 EXHIBIT 2.1H : CAREVIEW FINANCIAL STATEMENTS
	  	1
	 EXHIBIT 2.1J : CAREVIEW PATENTS, TRADEMARKS, ETC.
	  	1
	 EXHIBIT 2.1K : CAREVIEW CONTRACTS
	  	1
	 EXHIBIT 3.3 : REGISTRATION RIGHTS
	  	1
	 EXHIBIT 5.1 : ARBITRATION
	  	1

  

 ii 

 SUBSCRIPTION AND INVESTOR RIGHTS AGREEMENT 

THIS SUBSCRIPTION AND INVESTOR RIGHTS AGREEMENT (Agreement), dated as of February 28, 2005, is entered
into by and among CareView Communications, LLC, a Texas limited liability company (the “Company”); T2
; and all of the current owners of the Company (the Principals). Each of the Company,
T2 and
 the Principals are referred to herein as a Party and collectively as the Parties. 
 In
consideration of the mutual covenants contained herein, and for other valuable consideration, receipt of which is hereby acknowledged, the Parties hereto agree as follows: 

ARTICLE I 

GLOSSARY AND INTERESTS 

1.1 Glossary. Exhibit 1.1, “Glossary”, hereto, the terms of which are incorporated herein by reference, shall constitute the
glossary of this Agreement, (Glossary), and any and all such terms when used in this Agreement and/or any of its exhibits (which are incorporated herein by reference thereto) shall be used in accordance with the definitions
ascribed to such terms in the Glossary. In addition to definitions, the terms defined in the Glossary may contain material and substantive language, provisions and/or terms of and/or to this Agreement, and are to be read as any
other term, paragraph, sentence, section, subsection, provision, etc. of this Agreement. The headings of the Articles and Sections of this Agreement are for convenience only and shall not be considered in construing or interpreting any
of the terms or provisions hereof. Whenever required by the context, any pronoun used in this Agreement shall include the corresponding masculine, feminine, or neuter forms, and the singular form of nouns, pronouns, and verbs shall include
the plural and vice versa. The use of the word “including” in this Agreement shall be by way of example rather than by limitation. Wherever required by the context, references to a fiscal year shall refer to a portion thereof. The use of
the words “or,” “either,” and “any” shall not be exclusive. The Parties hereto have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or
interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties hereto, and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any of the
provisions of this Agreement. Wherever a conflict exists between this Agreement and any other agreement, this Agreement shall control but solely to the extent of such conflict. 

1.2 Purchase and Sale of Interests.
T2
hereby agrees to purchase from the Company and the Company hereby agrees to sell to
T2,
 as founders stock/equity in the Company, a 17% ownership interest in the Company (the
T2
Interest). The purchase price (Purchase Price) for the
T2
Interest shall be One Thousand Dollars ($1,000), which the Parties stipulate and agree to be (i) the fair market value of the
T2
Interest on the date of this Agreement and (ii) founders’ stock/equity of the Company. The Company also agrees to issue to
T2 for
 no additional consideration the Adjusted Gross Income Interest. A copy of the Company’s Operating Agreement (herein the CareView Agreement) in effect on the date hereof showing the issuance of the
T2
Interest and the Adjusted Gross Income Interest is attached hereto as Exhibit 1.2, “Operating Agreement of CareView”, and
T2 will
 execute the Operating Agreement as a member. The Company and the Principals acknowledge and agree that the
T2
Interest and the 
  

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Adjusted Gross Income Interest are freely transferable by
T2 subject
 to the Company’s approval which may not be unreasonably withheld. Given such transfer the Company shall require any such transferee of
T2 to
 become a Substitute Member pursuant to the Operating Agreement. Prior to the consummation of an Initial Public Offering and/or a
T2 Approved
Recapitalization, the
T2
Interest will not be diluted (i.e., it will represent and continue to represent a 17% ownership interest in the Company) and after an Initial Public Offering any dilution
must be pro rata with the other owners of the Company. At no time will the Adjusted Gross Income Interest be diluted. After the Initial Public Offering (subject to relevant Securities Laws) all restrictions on transfer
of T2
Interests and/or Adjusted Gross Income Interest shall be removed. No security, whether now existing or hereafter issued will have any priority or preference of any kind or nature
over the T2
Interest or the Adjusted Gross Income Interest. 

In the event Thompson fails to complete the Service Period up to May 31, 2006, by virtue of death or
Disability, then
T2 hereby
 agrees to sell its T2
Interests to the Company for Fifty Thousand Dollars ($50,000).
T2’s consideration
 for the receipt of the T2
Interest is the Purchase Price as well as other good and valuable consideration, the receipt of which is hereby acknowledged by the Company.
T2’s
consideration for the receipt of the Adjusted Gross Income Interest (via its owners) current input into marketing opportunities of the Company, as well as other good and
valuable consideration, the receipt of which is hereby acknowledged by the Company. Although, Thompson is an owner of
T2 and
 shall be the Chairman of the Board of the Company, such potential conflict, is fully disclosed and acknowledged and accepted by the Company, the Principals and
T2.
 The performance or breach of the Article IV, “Thompson Services”, by Thompson shall have no impact whatsoever on the Non-Article IV Terms hereof but a material breach of this Agreement by the Company which is
not cured as provided for herein shall constitute independent grounds for Thompson’s and/or
T2’s (but
 shall not constitute independent grounds for the Company’s) termination of the Service Period as set forth in Section 4.1, “Chairman of the Board”.

 It is understood by the Parties that
T2
has entered into this Agreement, simultaneously with the July 05, 2005 Engagement Letter (“Engagement Letter”) between Company and Akin Gump Strauss
Hauer & Feld, L.L.P. (“AG”) as referenced in Exhibit 2.1K, “CareView Contracts”; and neither this Agreement nor the Engagement Letter shall supercede the other, but Thompson’s
failure to complete the Service Period by virtue of death or Disability or Thompson’s and/or
T2’s
termination of the Service Period as referenced above is grounds for the Company’s termination of the Engagement Letter. But for Tommy Thompson having
entered into this Agreement, Company would not have executed the Engagement Letter. 

ARTICLE II 

REPRESENTATION AND WARRANTIES 

2.1 Representations and Warranties of the Company. The Company hereby represents and warrants to
T2 as
 follows (each of which shall survive without contractual limitations the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby): 

A. Organization and Standing. The Company is a corporation duly organized, validly existing and in good standing
under the laws of the State of Texas and has full power 
  

 2 

 
and authority to conduct its business as presently conducted and as proposed to be conducted by it and to enter into and perform this Agreement and to carry out the transactions
contemplated by this Agreement. The Company has furnished to
T2 true
 and complete copies of all of its charter and/or formation documents and/or agreements, each as amended to date and presently in effect. 

B. Capitalization. The capitalization of the Company is as set forth on Exhibit 2.1B, “CareView
Capitalization”. All of the issued and outstanding securities of the Company have been duly authorized and validly issued and are fully paid and nonassessable. Except as otherwise provided in this Agreement or as set forth on the
Exhibits hereto, (i) no subscription, warrant, option, convertible security or other right (contingent or otherwise) to purchase or acquire any ownership of the Company is authorized or outstanding, (ii) except as specifically and
expressly provided in the Operating Agreement, there is not any commitment of the Company to issue any subscription, warrant, option, convertible security or other such right or to issue or distribute to holders of any ownership
interests any evidences of indebtedness or assets of the Company and (iii) the Company has no obligation (contingent or otherwise) to purchase, redeem or otherwise acquire any ownership interests or any other interest therein or
to pay any dividend or distribution (except as specifically and expressly provided in the Operating Agreement). All of the issued and outstanding Ownership Interests have been offered, issued and sold by the Company in
compliance with applicable Federal and state securities laws. 
 C. Debtholders and Owners List. Listed on Exhibit
2.1C, “CareView Owners and Debtholders”, is a true and complete list of the debtholders and owners of the Company, showing the amount of debt and the ownership interest in the Company held by each debtholder and owner as of
the date of this Agreement and the consideration paid to the Company, if any, for such instruments and interests. 

D. Issuance of Ownership Interests. The issuance, sale, and delivery of the
T2
Interest and the Adjusted Gross Income Interest in accordance with this Agreement has been duly authorized by all necessary action on the part of the Company, and the
T2
Interest and the Adjusted Gross Income Interest when so issued, sold and delivered against payment therefor in accordance with the provisions of this Agreement, will be duly
and validly issued, fully paid and non-assessable. 
 E. Authority for Agreement. The execution,
delivery and performance by the Company and the Principals of this Agreement and all other agreements required to be entered into pursuant to this Agreement have been duly authorized by all necessary action, and duly
executed and delivered by the Company and the Principals. This Agreement and such other agreements constitute valid and binding obligations of the Company enforceable in accordance with their respective terms. The
execution of and performance of the transactions contemplated by this Agreement and such other agreements to be executed and delivered by the Company hereunder and compliance with their provisions by the Company will not violate
any provision of law and will not conflict with or result in any breach of any of the terms, conditions or provisions of, or constitute a default under, its charter documents and agreements or any indenture, lease, agreement or other instrument to
which the 
  

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Company are a Party or by which they or any of their properties are bound, or any decree, judgment, order, statute, rule or regulation applicable to the Company. 

F. Governmental Consents. No consent, approval, order or authorization of, or registration,
qualification, designation, declaration or filing with, any governmental authority is required on the part of the Company in connection with the execution and delivery of this Agreement, the offer, issue, sale and delivery of the
T2
Interest and/or the Adjusted Gross Income Interest, or the other transactions contemplated by this Agreement. 

G. Litigation. There is no action, suit, proceeding or investigation pending, or, to the best of the Company’s
knowledge, any basis therefor or threat thereof, against the Company which questions the validity of this Agreement or the right of the Company to enter into it, or which might result, either individually or in the
aggregate, in any material adverse change in the assets, condition (financial or otherwise), business or prospects of the Company, nor is there any litigation pending, or, to the best of the Company’s knowledge, any basis therefor
or threat thereof, against the Company by reason of the past employment relationships, the proposed activities of the Company or negotiations by the Company with possible investors in the Company. 

H. Financial Statements; Absence of Liabilities. Financial Statements of the Company as of
December 31, 2004, are being prepared. When they are completed they shall become attached hereto as Exhibit 2.1H, “CareView 2004 Financial Statements”, and shall be warranted by the Company as a complete and correct copy of the
balance sheet (the “Balance Sheet”) of the Company as of December 31, 2004 and (the “Balance Sheet Date”), and the related statements of operations and of changes in financial position for the 12 months
ended on December 31, 2004 (collectively, the “Financial Statements”). Moreover, the Company warrants to
T2 that
 as of February 28, 2005: i) there is no positive income or cash flow, and ii) that the Company is still in its start-up or founding stage. The Financial Statements shall be complete and correct, shall be in accordance with the
books and records of the Company and shall present fairly the financial condition and results of operations of the Company, as of the dates and for the periods indicated, and shall be prepared in accordance with generally accepted
accounting principles in all material respects. The Company shall not have, at the Balance Sheet Date, any liabilities of any type, whether absolute or contingent, which were not fully reflected on the Balance Sheet, and, since
the Balance Sheet Date, the Company has not incurred or otherwise become subject to any such liabilities or obligations except in the ordinary course of business and as set forth elsewhere herein. 

I. Property and Assets. The Company has good and marketable title to all of its properties and assets, including all
properties and assets reflected in the Balance Sheet, except those disposed of in the ordinary course of business, and none of such properties or assets is subject to any mortgage, pledge, lien, security interest, lease, charge or
encumbrance. 
 J. Patents and Trademarks. Set forth on Exhibit 2.1J, “CareView Patents, Trademarks,
etc.”, is a true and complete list of all patents, patent applications, trademarks, service marks, trademark and service mark applications, trade names, copyrights and 

 

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licenses presently owned or held by the Company or any or all of the Principals and related to the business of the Company (as currently conducted or anticipated). The
Company owns or possesses all of the patents, trademarks, service marks, trade names, copyrights, proprietary rights, trade secrets, and licenses or rights to the foregoing, necessary for the conduct of the Company’s business as
conducted and as proposed to be conducted. To the best of the Company’s knowledge, the business proposed by the Company will not cause the Company to infringe or violate any of the patents, trademarks, service marks, trade
names, copyrights, licenses, trade secrets or other proprietary rights of any other person or entity. 
 K. Material
Contracts and Obligations. Exhibit 2.1K, “CareView Contracts”, hereto lists all material agreements of any nature to which the Company is a Party or by which it is bound. 

L. Compliance. The Company has, in all material respects, complied with all laws, regulations and orders applicable
to its present and proposed business and has all materials permits and licenses required hereby. 
 M. Absence of
Changes. Since the Balance Sheet Date, there has been no material adverse change in the condition, financial or otherwise, net worth, prospects or results of operations of the Company. 

N. Disclosures. Neither this Agreement nor any Exhibit hereto, nor any report, certificate or
instrument furnished to
T2 in
 connection with the transactions contemplated by this Agreement, when read together, contains or will contain any material misstatement of fact or omits or will omit to state a material fact necessary to make the statements contained herein
or therein not misleading. The Company knows of no information or fact which has or would have a material adverse effect on the financial condition, business or prospects of the Company which has not been disclosed to
T2.
 Each projection furnished to
T2 was
 prepared with due care based on reasonable assumptions and represents the Company’s best estimate of future results based on information available as of the date hereof, and no events have occurred that would require a material change
in such assumptions. 
 O. Thompson Provisions. The Company
acknowledges and agrees that but for the Company’s entering into the terms of the Non-Article IV Terms, Thompson and
T2 would
 not have entered into the terms of Article IV, “Thompson Services”. However, the Company warrants and agrees: i) that the performance of the Article IV, “Thompson Services”, and/or any breach thereof by Thompson
and/or
T2 shall
 have no legal and/or equitable impact whatsoever on the Non-Article IV Terms of this Agreement; and ii) that a breach of the Non-Article IV Terms of this Agreement by the Company grants Thompson and
T2 the
 right to terminate the Service Period without affecting its/their other rights, claims and/or causes of action against the Company. 

However, it is understood by the Parties that
T2 has
 entered into this Agreement, simultaneously with the July 05, 2005 Engagement Letter (“Engagement Letter”) between Company and Akin Gump Strauss Hauer & Feld, L.L.P. (“AG”) as referenced
in Exhibit 2.1K, “CareView Contracts”; and neither this Agreement nor the Engagement Letter shall supercede the other, but Thompson’s and/or
T2’s termination
 of the Service 
  

 5 

 
Period as referenced above is grounds for the Company’s termination of the Engagement Letter. But for Tommy Thompson having entered into this Agreement,
Company would not have executed the Engagement Letter. 
 2.2 Representations and Warranties of
T2.

T2 represents
 and warrants to the Company as follows: 
 A. Investment.
T2 is
 acquiring the T2 Interest
and the Adjusted Gross Income Interest for its own account for investment and not with a current view to, or currently for sale in connection with, any distribution thereof, nor
with any present intention of distributing or selling the same. 
 B. Authority.
As of the fulfillment or waiver of the Article IV Conditions Subsequent,
T2 shall
 have been ratified with retroactive authority to enter into and perform this Agreement in accordance with its terms as of the date first written above. 

C. Authority for Agreement. The execution, delivery and performance of this Agreement shall be
duly authorized and ratified by T2
as of the fulfillment or waiver of the Article IV Conditions Subsequent. This Agreement and all other
agreements or transactions contemplated within this Agreement shall constitute valid and binding obligations of
T2,
 enforceable against
T2 in
 accordance with their respective terms. 
 D. Accredited Investor. All
of
T2’s
 owners shall be “accredited investors” within the meaning of Rule 501 under the Securities Act and shall be experienced in evaluating and investing in companies such as the Company, and are able to fend for themselves in the
transactions contemplated by this Agreement. The initial
T2
owners shall be Thompson, Gerald L. Murphy and Dennis M. Langley and/or their family trusts. 

ARTICLE III 

RIGHTS OF
T2 

3.1 Come-Along Rights. If at any time prior to an Initial Public Offering, any of the Principals wish to
sell any Ownership Interests owned by him/them (the “Selling Party”) to any person or entity (the “Purchaser”),
T2 shall
 have the right, but not the obligation, to offer for sale to the Purchaser, the same proportion of
T2
Interest as the proposed sale represents with respect to the total number of Ownership Interests that the Selling Party owns or has the right to acquire pursuant to
outstanding options, warrants or convertible securities at the same price per percentage interest and on the same terms and conditions as involved in such sale by the Selling Party. Promptly after receiving an offer to sell Ownership
Interests (an “Offer”), the Selling Party shall provide written notice of the Offer to
T2.
 T2 shall
 notify the Selling Party of its intention as soon as practicable after receipt of the Offer made, but in no event later than 15 days after receipt thereof. The Selling Party and
T2,
 if it exercises its rights under this Section (a “Participating Shareholder”) shall sell to the Purchaser all of the interests proposed to be sold by them at not less than the price per percentage interest and upon other
terms and conditions, if any, not more favorable to the Purchaser than those in the Offer provided by the Selling Party as 

 

 6 

 
provided above.
T2’s
 rights under this Section shall be assignable to any subsequent purchaser of all or any portion of the
T2
Interest. 
 3.2 Information
Rights. The Company will deliver to
T2:
 
 A. Within 90 days after the end of each fiscal year, an audited balance sheet of the Company as of the end of
such year and audited statements of operations and statements of cash flows and statements of changes in owners’ equity of the Company for such year, (a) prepared in accordance with generally accepted accounting principles
consistently applied, and (b) accompanied by (i) an unqualified opinion of an independent accounting firm of recognized national standing and acceptable to the Investors, and (ii) a copy of such firm’s annual management letter to
the Board; 
 B. Within 45 days after the end of each fiscal quarter (other than an end of a fiscal year) of the Company,
an unaudited balance sheet of the Company as at the end of such quarter, unaudited statements of operations, statements of cash flows and statements of changes in owners’ equity of the Company for such fiscal quarter and for the
current fiscal year to the end of such fiscal quarter and setting forth comparisons to the annual budget and to the corresponding period in the preceding year and providing a narrative of management’s discussion and analysis of the results and
prospects; 
 C. Within 20 days after the end of each calendar month (other than an end of a fiscal year), an unaudited balance
sheet of the Company as at the end of the prior month and unaudited statements of operations, statements of cash flows and statements of changes in owners’ equity of the Company for such month and for the current fiscal year to
the end of such month; 
 D. As soon as available, but in any event not later than 30 days after the commencement of each new
fiscal year, a business plan that shall contain projected quarterly and annual financial statements and quarterly and annual operating and capital budgets for such upcoming fiscal year, and within 30 days after any monthly period in which there is a
material adverse deviation from an annual or quarterly budget, an officer’s certificate explaining the deviation and what actions the Company has taken and proposes to take with respect thereto; and 

E. Promptly upon receipt thereof, any additional reports, management letters or other detailed information concerning significant aspects
of the Company’s operations and financial affairs given to the Company by its independent accountants (and not otherwise contained in other materials provided hereunder). 

T2
 (or its representatives) shall have the right upon reasonable notice to inspect and audit any books and records of the
Company or any subsidiaries. The inspection and audit will be at the cost of
T2.
 However, if any payment of Adjusted Gross Income Interest is more than 3% less than it should have been, then the Company will pay the additional amount owed, interest at the Prime Rate plus 6 percentage points, and reimburse
T2 for
 the fees and expenses of the audit or inspection. 
  

 7 

 3.3 Registration Rights. The Company hereby grants
T2 certain
 Registration Rights as more particularly set forth in Exhibit 3.3, “Registration Rights”, the terms of which are incorporated herein. 

3.4 Rights of Transferees. Except as otherwise expressly provided herein, the rights and obligations of any
Party under this Agreement shall be binding upon the Company, the Principals and
T2 and
 their respective heirs, executors, administrators, legal representatives, successor and assigns. 
 ARTICLE IV 

 THOMPSON SERVICES 

4.1 Chairman of the Board. Subject to the Article IV Conditions Subsequent, Thompson shall be the Chairman of the Board of
the Company, and Thompson’s signature hereof shall constitute his conditional acceptance of such position with the Company, upon the terms and conditions hereinafter set forth in this Article. Thompson shall serve as
Company’s Chairman of the Board during the Service Period. Thompson’s responsibilities will be: i) to provide executive services regarding senior level sales and marketing services for Company, including making
presentations, speeches and appearances promoting the products of the Company and regarding health care topics to gatherings of senior personnel of the health care industry throughout the United States and in foreign countries; ii) to make
follow-up targeted telephone calls and/or meetings regarding major transactions which the Company reasonably believes are necessary to complete material transactions; and iii) to provide other services as mutually agreed upon by the
Parties (i, ii and/or iii above being referred to herein as Thompson Article IV Services). 
 Notwithstanding the foregoing, the
Parties acknowledge that in performing services for Company, Thompson shall not be required to provide services which conflict with the following: i) Thompson’s duties relating to other business enterprises,
including meetings and/or activities on dates associated with being member of other companies’ Boards of Directors; ii) family and/or personal vacations and holidays; iii) periods of personal or family illness; iv) and other
speeches and/or political activities previously scheduled. Moreover, absent Thompson’s voluntary election to do so, Thompson shall not be required to spend more than 25% of his business related time, in his capacity as Chairman of
the Board of Directors of the Company and/or otherwise providing services hereunder. 
 The Service Period
shall commence on the date first set forth above and shall end on May 31, 2008 (the Initial Service Period), and thereafter continuing in an evergreen fashion for successive three (3) year periods from June 1 to May 31
(each a Secondary Service Period); unless sooner terminated as provided in Section 4.3, “Termination of Service Period”, hereof, the Service Period may be terminated by either i) the Company or ii)
Thompson and
T2 at
 the end of the Service Period or any Secondary Service Period by delivery of a written notice of nonrenewal to the other Party at least ninety (90) days prior to the end of such Service Period or Secondary
Service Period, as the case may be. Should Company elect not to renew the Service Period, Company shall pay
T2
in a lump sum on the date the Service Period ends two years’ worth of the Annual Base Payment in effect on the date of the end of the Service Period in question.

  

 8 

 4.2 Article IV Payments. During the Service Period: 

A. Company shall pay
T2 as
 compensation for Thompson Article IV Services pursuant to this Section, an Annual Base Payment of not less than Three Hundred Thousand Dollars ($300,000) of which One Hundred Thousand Dollars will be paid directly to
T2 and
 Two Hundred Thousand Dollars will be paid to AG pursuant to the terms of the Engagement Letter.
T2’s Annual Base Payment
shall be reviewed at least annually by the governing Board of Company and may be subject to increases at such reviews (but not decreases). As partial consideration for the
Annual Base Payment,
T2 shall
 provide and employ at least one person attached to its Kansas City Office (Shawnee, Kansas) for Fifty Thousand, ($50,000) per year, who shall help coordinate Thompson with Company, and with the aide whom shall accompany Thompson,
and assist in the services set forth in Subsection D, below. 
 B.
Company shall provide Thompson all rights and benefits which are provided for the Company’s employees and any senior executive. In addition thereto, Company shall provide Thompson directly (not
T2)
 the following benefits at mutually agreeable levels: i) family health insurance coverage; ii) disability insurance; iii) travel by first class, charter and/or private aircraft; iv) a full-time personal aide (as further explained
in Subsection 4.2 D below; v) a full-time personal driver to be employed by Company; and vi) an automobile and insurance for such automobile. In addition, Company shall pay all of
T2’s and
 Thompson’s fees and expenses in negotiating, preparing and entering into this Agreement including without limitation, legal fees and expenses, travel, lodging, and meals. 

C. Company shall reimburse Thompson and
T2
for reasonable expenses incurred by Thompson and T2
 while working on Company business, in accordance with the greater of the Company’s normal business expense
reimbursement policies or as provided in Section 4.2 B above. 
 D. The personal aide: i)
shall be an employee of Company; ii) shall accompany and assist Thompson as a professional aide in all Thompson’s business endeavors, including those not associated with the Company; ii) shall become professionally
versed in Company’s business; iii) shall function as a constant liaison between Thompson and the Company and
T2;
 iv) shall coordinate with Thompson’s schedule vis-à-vis the Company and Thompson Article IV Services hereunder; v) shall brief Company as to relevant data which Thompson has discovered vis-à-vis
the Company and/or potential clients; vi) shall coordinate materials, tasks and all other items desirable between Company,
T2
and Thompson; and vii) shall be trained and briefed by the Company on an as needed basis; and viii) shall perform any and all other liaison functions between Thompson, the Company and
T2,
 and the Company’s clients on an as needed basis. The aide shall communicate with the Company and T2
’s Kansas offices daily (Monday through Friday) regarding the above. 

4.3 Termination of Service Period. Thompson may be removed as the Chairman of the Board of Directors as provided for by the
Company’s governance documents, but the Service 
  

 9 

 
Period and the Thompson Article IV Services may be terminated only as provided in this section and its subsections, to-wit: 

A. Immediately upon the death of Thompson, and upon thirty (30) days prior written notice to Thompson, in the event
Thompson, by reason of physical or mental Disability, shall be unable to perform a material portion of the services required of Thompson, hereunder for a continuous ninety (90) day period as determined by
Thompson’s primary physician. 
 B. For Cause, which for the purposes of this Article IV, “Thompson
Services”, shall mean: 
 1. a material breach by Thompson of Article IV, “Thompson Services”, of this
Agreement which is not cured as provided for in Article V, “Dispute Resolution” and Exhibit 5.1, “Arbitration”. 

2. Thompson’s commission of fraud or criminal activity against Company in any material respect or conviction of a
felony which significantly impairs the reputation of, or otherwise harms, Company or its subsidiaries. 

Cause, as a prerequisite, must be determined to exist by the vote of at least two-thirds (2/3rds) vote of
all the Directors of the Board (including Thompson) of the Company, and thereafter is subject to Article V, “Dispute Resolution”, and Exhibit 5.1, “Arbitration”, hereof. Thompson and
T2 may
 terminate the Service Period and the Thompson Article IV Services hereunder if the Company is determined to be in material breach of any term of this Agreement, regardless of whether such breach(s) relate(s) to the
provisions of Article IV, “Thompson Services”, or Non-Article IV Terms if Company is found to be in a material breach of any provision(s). Such termination of the Service Period, shall not affect, offset and/or
diminish the other damages, causes of actions, claims, etc. which Thompson and/or
T2 may
 have against the Company for any breach of the Non-Article IV Terms by the Company. 

C. Notwithstanding anything herein to the contrary, the Non-Article IV Terms of this Agreement shall
not be altered or affected in any manner whatsoever by the following: i) the breach of any Thompson Article IV services by Thompson and/or
T2,
 ii) the termination of the Service Period, with or without Cause, by the Company or by Thompson, and/or iii) a determination by the Arbitrator that the Parties are obligated to one another for a breach of
any of the terms of Article IV, “Thompson Services”. 
 4.4 Article IV Conditions Subsequent.
Although, Thompson shall serve as the Chairman of the Board of the Company, he shall not be required to provide any of the other Article IV Thompson Services and neither he nor
T2 shall
 commence to receive the Annual Base Payments and/or other payments set forth in Section 4.2, “Article IV Payments”, until the Article IV Conditions Subsequent have either transpired or been waived by the Company,
T2 and
 Thompson. Once the Article IV Conditions Subsequent have been fulfilled, the amount of the Annual Base Payment shall be retroactively applied from March 1, 2005, until the date of the

  

 10 

 
fulfillment of such conditions subsequent, even though Thompson and
T2 may
 not have provided Thompson Article IV Services or any other services during such period. 
 4.5
Termination of Engagement Letter. It is understood by the Parties that
T2
has entered into this Agreement, simultaneously with the July 05, 2005 Engagement Letter (“Engagement Letter”) between Company and Akin Gump Strauss
Hauer & Feld, L.L.P. (“AG”) as referenced in Exhibit 2.1K, “CareView Contracts”; and neither this Agreement nor the Engagement Letter shall supercede the other. However, Thompson’s
resignation or dismissal as Chairman of the Board of the Company; or Company’s non-renewal of the Service Period as referenced in Section 4.1 “Chairman of the Board”; or Thompson’s removal as the
Chairman of the Board of Directors as provided for by the Company’s governance documents or as provided for in Section 4.3 are grounds for the Company’s termination of the Engagement Letter. Should Thompson
resign or be terminated from Akin Gump Strauss Hauer & Feld, L.L.P. (“AG”) during the course of this Agreement, and the Company elects to terminate the Engagement Letter, then payments to AG as
depicted in the Engagement Letter, will subsequently be transferred as payments to
T2
for the remainder of this Agreement. But for Tommy Thompson having entered into this Agreement, Company would not have executed the Engagement Letter.

 ARTICLE V 

DISPUTE RESOLUTION 

5.1 Disputes. Any and all Disputes between or among the Parties shall be resolved by such Parties pursuant to this
Article V, “Dispute Resolution”, and Exhibit 5.1, “Arbitration”, the terms of which are incorporated herein. 
 5.2
Resolution of Purported Breaches by the Parties. In the event a Party believes the other Party is in breach of the terms hereof for any reason(s), it shall provide written notice of such purported breach(es) describing such
breach(es) with particularity (in fact and in legal impact) and the purported breaching Party shall be granted thirty (30) days from its actual receipt of such notice to cure said breach(es) if it concurs that the complaint(s)
constitutes a breach(s) hereof, and if so cured by the purported breaching Party, the breach(es) shall be deemed to have never occurred. In the event the Parties cannot agree as to whether the complaint(s) constitutes a breach(es) of
the terms hereof, or the purported breaching Party does not elect to undertake the expense of resolving the complaint(s), then the Parties agree to submit the facts to an appropriate court pursuant to the subsequent Sections of this
Article V, “Dispute Resolution”, and Exhibit 5.1, “Arbitration”. If the court determines any action or inaction of the purported breaching Party in fact constitutes a breach(es) of the terms hereof, then the breaching
Party shall have thirty (30) days from the date the court’s decision becomes final to cure said breach(es), and if so cured by the breaching Party, shall be deemed to have never occurred. Unless expressly specified otherwise
herein to the contrary, a breaching Party shall only be obligated to the non-breaching Party for said non-breaching Party(s) actual damages (plus Interest thereon from the date of the occurrence or loss) proximately
caused by the breach of the Agreement. In no event shall the remedy of termination or cancellation of the Agreement be employed, permitted or decreed; and, unless specified otherwise herein to the contrary, a Party shall not be
responsible for punitive or consequential damages for a breach of the Agreement. 
  

 11 

 
Specific performance and other equitable remedies, unless otherwise barred herein are expressly stipulated by the Parties to be with the discretion, authority and purview of the court.

 5.3 Payment Cures. The cure of any monetary payment breach shall require the breaching Party to pay the full amount due,
plus Interest thereon during the period that the amount due remains unpaid. In the alternative, the Party alleged to be in default may place the disputed amount in an interest-bearing, Third Party escrow account, and the
Party(s) ultimately determined to be entitled to such amount shall receive the Interest accrued thereon in such escrow account. 

5.4 Governing Law. This Agreement shall be governed by and construed and interpreted in accordance with the laws of the State of
Delaware applicable to agreements made and to be performed entirely within such state, including all matters of enforcement, validity and performance. 

ARTICLE VI 

MISCELLANEOUS 
 6.1
Notices. Any Notice required or permitted to be given hereunder shall be in writing shall be: (i) personally delivered; and/or (ii) transmitted by postage pre-paid first class certified United States mail return receipt
requested; and/or (iii) transmitted by pre-paid, overnight courier (e.g. FedEx, DHL, UPS, etc . . .). Duplicative notices may be given in writing by: United States mail (not certified and no return receipt), facsimile (fax) and/or e-mail. All
Notices and other communications shall be deemed to have been duly given, received and effective on the earlier of: (i) the date of receipt if delivered personally; (ii) the second business day after the date of transmission if by
overnight courier; (iii) the date the return receipt is signed by the receiving Party in the case of pre-paid postage; or (iv) the date of actual receipt if the same can be demonstrated by other evidence (including parole evidence).
Any Party may unilaterally change its address for purposes hereof by Notice given to the other Party. Notices hereunder shall be directed to the following agents of the Parties at the following addresses:

  

			
	Company	  	CareView Communications, L.L.C.
		  	Attn: David E. Webb, President
		  	5000 Legacy Drive, Suite 470
		  	Plano, TX 75024
		
	T2
	  	T2 Consulting,
 LLC
		  	Attn: Dennis M. Langley
		  	5225 Renner Road
		  	Shawnee, Kansas 66217
		
	Thompson	  	Tommy G. Thompson
		  	3101 North Hampton Drive, #1611
		  	Alexandria, VA 22302

  

 12 

 The following additional contact information is also being provided: 

 

					
		  	CareView Communications, L.L.C.
		  	Telephone: 972-943-6000
		  	Fax: 972-403-7659
		  	E-mail:	 	davidw@horizonmc.net
		  		 	norma.wolfson@horizonmc.net
		
		  	T2 Consulting,
 LLC
		  	Telephone: (913) 962-9999
		  	Fax: (913) 962-6517
		  	E-mail: dlangley@e3-llc.com
		
		  	Tommy G. Thompson
		  	Telephone: 202-494-3486
		  	Fax: 202-756-0274
		  	E-mail: tthompson@logisticshealth.com

 6.2
Further Assurances. The Parties hereby agree to execute, acknowledge and deliver to each other any further writings, documents, transfers, acknowledgements, instruments, powers of attorney, authorizations, filings, applications,
reports, etc. that may be reasonably required to give full force and effect to the provisions of this Agreement, and to take such further actions reasonably required in fulfillment of obligations set forth herein or in furtherance of the
intent hereof. 
 6.3 Severability. The provisions of this Agreement are severable, so that the invalidity or
unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other term or provision of this Agreement, which shall remain in full force and effect. 

6.4 Specific Performance. In addition to any and all other remedies that may be available at law in the event of any
breach of this Agreement,
T2 shall
 be entitled to specific performance of the agreements and obligations of the Company hereunder and to such other injunctive or other equitable relief as may be granted by a court of competent jurisdiction. 

6.5 Governing Law. This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of
Delaware. 
 6.6 Amendments. This Agreement constitutes the full and complete agreement of the
Parties hereto with respect to the subject matter hereof. This Agreement may be amended, modified, terminated or waived (in any one instance or generally and whether retroactively or prospectively): i) by a writing signed by the
Company and
T2 regarding
 Non-Article IV Terms; and ii) if it relates to Article IV, “Thompson Services”, by Thompson,
T2,
and the Company. 
 6.7 Counterparts. This
Agreement may be executed in any number of counterparts, each of which shall constitute one Agreement binding on all the Parties hereto and may be executed by facsimile. 

 

 13 

 6.8 Noncompetition. Each Party and their Affiliated Entities undertakes that it
shall not, for so long as it owns any interest in the Company and for a period of twenty-four (24) months after it ceases to own any interest in the Company, solicit or entice away or attempt to solicit or entice away from the
Company, the other Party and/or any of their Affiliated Entities any employees, customers or any Person who is or has at any time within thirty six (36) months prior to the date in question been or employee,
customer, client, agent or correspondent of, or in the habit of dealing with, the Company. 
 6.9. Noncircumvention. No
Party nor any of their Affiliated Entities shall directly or indirectly circumvent, avoid, bypass, or in any way obviate the Company’s or any other Party’s rights under this Agreement. The terms of this
Agreement are binding upon Affiliated Entities of the Party’s to the extent any Affiliated Entity(s) violate(s) or proximately causes a violation of any of the terms of this Agreement. In the event of a
violation proximately caused by an Affiliated Entity(s) of any Party, the Party which is affiliated therewith agrees to be pecuniarily liable to the other Party(s) of the Company as if they had directly violated
the terms hereof. In the event an Affiliated Entity(s) violates or proximately causes a violation of the terms hereof, the Party, which is affiliated with such Entity shall indemnify and keep the other Party(s) and the
Company whole as if it/he had directly violated the terms hereof, and the aggrieved Party(s) shall be entitled to attach and/or to offset the share of any proceeds of such Party under this Agreement. Notwithstanding the
above, the Affiliated Entity(s) of any Party shall NOT be liable to any other Party or Company for violations of this Agreement, proximately caused by a Party hereto without the willful, material, in such
violation by the Affiliated Entity(s). 
 Remainder of Page Intentionally Left Blank 

 

 14 

 IN WITNESS WHEREOF, this Agreement has been executed by the Parties hereto as
of the day and year first above written or consent to and ratify as if executed on such date. 
  

			
	THE COMPANY:
	
	CAREVIEW COMMUNICATIONS, L.L.C.
		
	By:	 	 /s/ Henry Burklhalter

		 	      Henry Burkhalter
		 	      Chairman

  

			
	Attested by:	 	 /s/ Ronald F. Beck

		 	    Ronald F. Beck
		 	    President and CEO

  

			
	Principals of CareView for purposes of assenting to all of the terms hereof and of being bound personally by the terms of the last paragraph of Section 1.2,
“Purchase and Sale of Interests”, hereof.
	
	 Cazatur Group, LLC

		
	By:	 	 /s/ Henry Burkhalter

		 	     Henry Burkhalter
		 	     Manager
	
	Recap Group, LLC
		
	By:	 	 /s/ David E. Webb

		 	     David E. Webb
		 	     Manager

  

 15 

			
	Investsearch Management, LLC
		
	By:	 	 /s/ David E. Webb

		 	     David E. Webb
		 	     Manager
	
	Investsearch, LLC
		
	By:	 	 /s/ David E. Webb

		 	     David E. Webb
		 	     Manager
	
	Dozer Man, LLC
		
	By:	 	 /s/ Allen Wheeler

		 	     Allen Wheeler
		 	     Manager
	
	Beck Financial, Corp.
		
	By:	 	 /s/ Ronald F. Beck

		 	     Ronald F. Beck
		 	     President
	
	 /s/ Tommy G. Thompson

	Tommy G. Thompson, Personally, but only for the provisions set forth in Article IV, “Thompson Services”, regarding Thompson Article IV
Services

  

 16 

			
	T2 as
 an Unincorporated Association pending ratification by T2
Consulting, LLC
		
	By:	 	 /s/ Dennis M. Langley

		 	      Dennis M. Langley, Member
		
	By:	 	 /s/ Tommy G. Thompson

		 	      Tommy G. Thompson, Member
		
	By:	 	 /s/ Gerald L. Murphy

		 	      Gerald L. Murphy, Member

  

 17 

 RATIFICATION 

T2
 Consulting, LLC hereby ratifies and accepts the Agreement effective this
24th day of May, 2005, and accepts the liability of
T2 pursuant
 to the Agreement from February 28, 2005, until this ratification date. 
  

			
	T2 Consulting,
 LLC
		
	By:	 	 /s/ Dennis M. Langley

		 	      Dennis M. Langley, Manager
		
	By:	 	 /s/ Tommy G. Thompson

		 	      Tommy G. Thompson, Manager
		
	By:	 	 /s/ Gerald L. Murphy

		 	      Gerald L. Murphy, Manager

  

 18 

 EXHIBIT 1.1 

GLOSSARY 
 Aside from
definitions, various Sections and Subsections of this Glossary, Exhibit 1.1 may and shall contain material and substantive contractual terms and expressions of intent. Terms in the singular shall have the same meanings when used in the plural
and vice versa, and any gender designation shall refer to all genders. The following terms shall be used throughout the Agreement in accordance with the definitions ascribed to them in this Glossary, to-wit: 

AAA means the American Arbitration Association. 

Adjusted Gross Income Interest means an income interest in the Company reflecting rights to 5% of (a) all
revenue of any type or nature and from whatever source received by the Company and its subsidiaries; less (b) pre-tax , nondebt service, payments to Persons which are not Affiliates or employees of the Company, if
any, made in the ordinary course of the Company’s business in the nature of third party, nondebt, cost of goods sold (and not general and administrative expenses) (e.gs., payments to hospitals and programming costs for movies). The
Adjusted Gross Income Interest will be paid no later than the
15th day of each calendar month. Payments will be
accompanied by a report reasonably acceptable to
T2.
 In the event Thompson should fail to complete the Service Period through to May 31, 2008, by virtue of his death or Disability, then the Adjusted Gross Income Interest shall be reduced to an amount equal to the
product of the following formula, to-wit: five percent (5%) multiplied by a fraction, the denominator of which shall be 1095, and the numerator of which shall be the number of days from and including June 1, 2005, through and including the
day of Thompson’s death or Disability. 
 Affiliated Entity or Affiliate shall be deemed
affiliated as to each other to the extent: (a) one of the Entities directly or indirectly controls, or is controlled by, the operations of the other, or the direct or indirect control of one of the Entities is exercised by the
officers, directors, stockholders, or partners of the other Entity (whether or not such persons exercise such control in their capacities as officers, directors, stockholders, or partners); or (b) one of the Entities directly or
indirectly owns, and/or its officers, directors, stockholders or partners (limited or general) directly or indirectly own, a fifteen percent (15%) or greater interest in the capital and/or profits of the other Entity. 

Agreement shall mean the “Subscription and Investor Rights Agreement” to which this Glossary is attached as Exhibit
1.1. 
 Akin Gump Strauss Hauer & Feld, L.L.P. (AG) shall mean the entity referenced in Exhibit 2.1K,
“CareView Contracts”. 
 Annual Base Payment shall be ascribed the meaning given thereto in Subsection A of
Section 4.2, “Article IV Payments”. 
  

 1 

 Arbitration shall have the meaning operationally ascribed thereto in Article V, “Dispute
Resolution” of the Agreement and Exhibit 5.1, “Arbitration”. 
 Arbitration Act shall mean the Federal
Arbitration Act of the United States and any Laws governing Arbitration in effect in the State of Delaware. 
 Arbitrator
means an arbitrator selected in accordance with Exhibit 5.1, “Arbitration”, of the Agreement. 

Article IV Conditions Subsequent means that the following two (2) conditions subsequent have occurred: i) the
Company shall have received financing and capitalization from Easton Hunt Capital Partners, L.P., Easton Hunt New York, L.P. and/or other Entity reasonably acceptable to
T2 which
 is sufficient (in
T2’s judgment)
 to adequately capitalize the Company, and ii) shall have contracts with two (2) federal hospitals and one (1) private sector hospital. 

Cause shall be ascribed the meaning given thereto in Section 4.3, “Termination of Service Period”. 

Commission means the Securities and Exchange Commission or any other Federal agency at the time administering the Securities
Act. 
 Company shall mean CareView Communications, L.L.C., a Texas Limited Liability Company. 

Disability shall have the meaning ascribed thereto in Subsection A of Section 4.3, “Termination of Service Period”.

 Dispute means any claims, disputes and/or other matters in questions arising out of, or relating to this Agreement or
the breach hereof. 
 Engagement Letter means the July 05, 2005 Engagement Letter (“Engagement Letter”)
between Company and Akin Gump Strauss Hauer & Feld, L.L.P. (“AG”) as referenced in Exhibit 2.1K, “CareView Contracts”. 

Exchange Act means the Securities Exchange Act of 1934, as amended, or any similar Federal statute, and the rules and regulations of
the Commission issued under such Act, as they each may, from time to time, be in effect. 
 Governmental Authority or
Governmental Entity shall mean any (and all) juridical and/or governmental body(s), agent(s), agency(s), board(s), commission(s), organization(s), task force(s), staff(s), representative(s), council(s), court(s), tribunal(s),
committee(s), panel(s), group(s), body(s), department(s), division(s), person(s), Entity(s), etc. whether at the federal, national, provincial, local, reserve, regional, city, municipal, county, parish level, and/or any other level(s) of
government including inter-governmental Entities of any government including, but not limited to any and all legislative, executive, judicial, quasi-judicial, quasi-legislative, and administrative Entity(s) whether they function in an
authoritative role, police enforcement function, management capacity, legal capacity, judicial capacity, oversight role, and/or any role, capacity or function whose power and authority is ultimately derived from a government. 

 

 2 

 Initial Service Period shall have the meaning ascribed thereto in Section 4.1,
“Chairman of the Board”. 
 Initial Public Offering means the effective date of a Registration Statement covering
the Company’s (or its successor’s or subsidiaries) first underwritten public offering of equity securities, resulting in gross proceeds to the Company of at least $10,000,000. 

Law shall mean any and all rule(s), by-law(s), law(s), constitution(s), common law(s), statute(s), code(s), regulation(s), ordinance(s),
precept(s), practice(s), canon(s), procedure(s), directive(s), order(s), judgment(s), estoppel(s), injunction(s), authoritative statement(s), etc. of any Governmental Authority. 

Non-Article IV Terms shall mean any and all terms of the Agreement which are not set forth in Article IV, “Thompson
Services”. 
 Offer shall be ascribed the meaning given thereto in Section 3.1, “Come-Along Rights”.

 Ownership Interest means any ownership interest of any Person in the Company. 

Participating Shareholder shall be ascribed the meaning given thereto in Section 5 of the Agreement. 

Party(s) shall be ascribed the meaning given thereto in the first paragraph of the Agreement as further
explained in this definition. The Company and
T2 are
 Parties hereto for all purposes. The principals are Parties hereto i) for the limited purposes of assenting to the terms hereof vis-à-vis the Company, ii) for accepting the pre-incorporation status of
T2 and
 post incorporation ratification hereof by
T2,
 and iii) in contractual privity to
T2 for
 the provisions set forth in the last paragraph of Section 1.2, “Purchase and Sale of Interests”. Thompson is a Party hereto for the limited purpose of the provisions set forth in Article IV, “Thompson
Services”. 
 Person or Entity means any corporation, proprietorship,
partnership (general or limited), natural person, trust, estate, foundation, association or any other entity or group. 
 Prime
Rate means the rate of interest set forth from time to time as the Prime Rate in the Wall Street Journal. 

Principal(s) shall be ascribed the meaning given thereto in the first paragraph of this Agreement. 

Purchaser shall be ascribed the meaning given thereto in Section 3.1, “Come-Along Rights”. 

Registration Statement means a registration statement filed by the Company with the Commission for a public offering and sale
of securities of the Company (other than a registration statement on Form S-8 or Form S-4, or their successors, or any other similar form, or any registration statement covering only securities proposed to be issued in exchange for securities
or assets of another corporation). 
 Registration Expenses means all expenses incurred by the Company in complying with
Section 8 of the Agreement, including, without limitation, all registration and filing fees, exchange listing 
  

 3 

 
fees, printing expenses, fees of accountants for the Company, fees and disbursements of counsel for the Company and the fees and expenses (not in excess of $20,000) of one counsel
selected by
T2 to
 represent
T2,
 state blue sky fees and expenses, and the expense of any special audits incident to or required by any such registration, but excluding underwriting discounts, selling commissions or any other brokerage or underwriting fees and expenses. 

 Registrable Shares means (i) the shares of Common Stock issued or issuable upon conversion of
the T2
Interest and (ii) any other securities of the Company or any converted company then owned by
T2 or
 its successors or assigns. 
 Secondary Service Period shall have the meaning ascribed thereto in Section 4.1,
“Chairman of the Board”. 
 Service Period shall have the mean ascribed to it in Section 4.1, “Chairman of the
Board”. 
 Securities Act means the Securities Act of 1933, as amended, or any similar Federal statute, and the rules
and regulations of the Commission issued under such Act, as they each may, from time to time, be in effect. 
 Selling Party
shall be ascribed the meaning given thereto in Section 3.1, “Come-Along Rights”. 

T2
 is a Party to the Agreement. As of the date of the Agreement,
T2 will
 be an unincorporated association among Thompson, Gerald L. Murphy, Dennis M. Langley and/or their family trusts. As of the date of the fulfillment or waiver of the Article IV Conditions Subsequent,
T2 shall
 be a Delaware limited liability company. The Company and the Principals accept such status of
T2
and agree to be bound by the terms of the Agreement to
T2 in
 its incorporated state (i.e. to be bound to Thompson, Gerald L. Murphy, Dennis M. Langley and/or their family trusts), until the formation of
T2 as
 a Delaware limited liability company and thereafter to be bound to
T2,
 as a limited liability company. The official name of
T2 as
 of its formation as a Delaware limited liability company shall be
T2 Consulting, LLC. Once
T2 has
 been formed and has ratified this Agreement, Dennis M. Langley, Gerald L. Murphy and/or their family trusts shall be personally released from any and all obligations hereunder, and Thompson shall be personally released from any and
all obligations hereunder, except, and only except, those set forth in Article IV, “Thompson Services”. 

T2
 Approved Recapitalization shall mean any additional capitalization by the Company, approved in writing by
T2,
 which has the effect of diluting T2
Interest. In no event whatsoever, shall the
T2
Interest be diluted if the other then existing equity interests of the Principals and the Company are not being diluted proportionately with the
T2
Interest.
T2 may
 reject any proposed T2 Approved Recapitalization
for any or no reason in its sole and absolute discretion. 

T2
 Interest shall have the meaning ascribed thereto in Section 1.2, “Purchase and Sale of Interests”. 

 Third Party means a Person not affiliated with any Party. 

Thompson shall mean Tommy G. Thompson. 

Thompson Article IV Services shall be ascribed the meaning given thereto in Section 4.1, “Chairman of the Board”.

  

 4 

 EXHIBIT 1.2 

OPERATING AGREEMENT OF CAREVIEW 
  

 1 

 EXHIBIT 2.1B 

CAREVIEW CAPITALIZATION 
  

 1 

 EXHIBIT 2.1C 

CAREVIEW OWNERS AND DEBTHOLDERS 
  

 1 

 EXHIBIT 2.1H 

CAREVIEW 2004 FINANCIAL STATEMENTS 
  

 1 

 EXHIBIT 2.1J 

CAREVIEW PATENTS, TRADEMARKS, ETC. 
  

 1 

 EXHIBIT 2.1K 

CAREVIEW CONTRACTS 
  

 1 

 EXHIBIT 3.3 

REGISTRATION RIGHTS 

(a). Certain Definitions. As used in this Exhibit 3.3,
“T2”
 means
T2 and
 any Persons or Entities to whom the rights granted under this Section are transferred by
T2 and
 their successors or assigns. 
 (b). Required Registrations. 

(i) At any time after the earlier of (A) December 31, 2007 or the end of the nine-month period commencing
on the Initial Public Offering pursuant to a Registration Statement,
T2 may
 request, in writing, that the Company effect a tax-free conversion of the Company into a corporation and the subsequent registration on Form S-1, or if available, Form S-2 (or any successor form) of all or any part of Registrable
Shares owned by
T2 having
 an aggregate offering price of at least $500,000 (based on the then current market price or fair value). If
T2 intends
 to distribute the Registrable Shares by means of an underwriting, it shall so advise the Company in their request of such intention and of their selection of an underwriter (which selection shall be subject to the consent of the
Company, which consent shall not be unreasonably withheld). 
 (ii) At any time
after the Company becomes eligible to file a Registration Statement on Form S-3 (or any successor form relating to secondary offerings),
T2 may
 request the Company, in writing, to effect the registration on Form S-3 (or such successor form), of Registrable Shares having an aggregate offering price of at least $500,000 (based on the current public market price). Thereupon, the
Company shall, as expeditiously as possible, use its best efforts to effect to the registration of all Registrable Shares which the Company has been requested to register. 

(iii) The Company shall not be required to effect more than two registrations pursuant to subsection (b)(i) above, but there shall
be no numerical limitation on the number of registrations that the Company shall be required to affect pursuant to subsection (b)(ii) above; provided however, only the first three registrations pursuant to subsection (b)(ii) above will
be at Company’s expense with additional such registrations to be at the expense of the holders of the shares to be registered. 

(iv) If at the time of any request to register Registrable Shares pursuant to this Section, the Company
is engaged or has bona fide plans to engage, within 30 days of the time of the request, in a registered public offering as to which
T2 may
 include Registrable Shares pursuant to subsection (b) or is engaged in any other activity which, in the good faith determination of the Board, would be adversely affected by the requested registration to the material detriment of
the Company, then the Company may at its option direct that such request be delayed for a period not in excess of three months from the effective date of such offering or the date of commencement of such other material activity, as the
case may be. 
  

 1 

 (c). Incidental Registration. 

(i) Whenever the Company proposes it any time after the Initial Public Offering and from time to time
to file a Registration Statement that contemplates the sale of Common Stock and is on a form which would allow registration of the Registrable Shares, it will, prior to such filing, give written notice to
T2 of
 its intention to do so and, upon the written request of T2
 given within 10 days after the Company provides such notice, the Company shall use its best efforts to cause all Registrable Shares which the Company has been
requested by
T2 to
 be registered under the Securities Act to the extent necessary to permit their sale or other disposition in accordance with the intended methods of distribution specified in the request of
T2;
 provided, however, that the Company shall have the right to postpone or withdraw any registration proposed pursuant to this subsection (d) without obligation to
T2.
 
 (ii) In connection with any offering under subsection (c)(i) involving an
underwriting, the Company shall not be required to include any Registrable Shares in such underwriting unless the holders thereof accept the terms of the underwriting as agreed upon between the Company and the underwriters
selected by it, and then only in such quantity as will not, in the opinion of the underwriters, jeopardize the success of the offering by the Company. If in the written opinion of the managing underwriter the registration of all, or part of,
the Registrable Shares which the holders have requested to be included would materially and adversely affect such public offering, then the Company shall be required to include in the underwriting only that number of Registrable
Shares, if any, which the managing underwriter believes may be sold without causing such material adverse effect, but in no event shall the amount of Registrable Shares included in the offering be reduced below 10% of the total amount of
securities included in the offering. If the number of Registrable Shares to be included in the underwriting in accordance with the foregoing is less than the total number of shares which the holders of Registrable Shares have requested
to be included, then the holders of Registrable Shares who have requested registration shall participate in the underwriting pro rata based upon the number of Registrable Shares of that the holders have requested to be so included.

 (d). Registration Procedures. If and whenever the Company is required by the provisions of this Agreement to use its best
efforts to effect the registration of any of the Registrable Shares under the Securities Act, the Company shall: 

(i) File with the Commission a Registration Statement with respect to such Registrable Shares and use its best
efforts to cause that Registration Statement to become and remain effective; 
 (ii) As expeditiously as possible prepare
and file with the Commission any amendments and supplements to the Registration Statement and the prospectus included in the Registration Statement as may be necessary to keep the Registration Statement effective for a
period of not less than 60 days from the effective date; 
 (iii) As expeditiously as possible furnish to
T2 such
 reasonable numbers of copies of the prospectus, including a preliminary prospectus, in the conformity with the 

 

 2 

 
requirements of the Securities Act, and such other documents as
T2 may
 reasonably request in order to facilitate the public sale or other disposition of the Registrable Shares owned by
T2;
 
 (iv) As expeditiously as possible use its best efforts to register or qualify the
Registrable Shares covered by the Registration Statement under the securities or blue sky laws of such states as
T2 shall
 reasonably request, and do any and all other acts and things that may be necessary or desirable to enable
T2 to
 consummate the public sale or other disposition within such states of the Registrable Shares owned by
T2;
 provided, however, that the Company shall not be required in connection with this clause (iv) to qualify as a foreign corporation in any jurisdiction, execute a general consent to service of process in any jurisdiction, or subject
itself to taxation in any jurisdiction; and 
 (v) Use its best efforts to cause the Registrable
Shares to be listed on the principal securities exchange on which similar securities of the Company are there listed, if any, if the listing of such shares is then permitted under the rules of such exchange. 

If the Company has delivered preliminary or final prospectuses to
T2 and
 after having done so the prospectus is amended to comply with the requirements of the Securities Act, the Company shall promptly notify
T2 and,
 if requested,
T2 shall
 immediately cease making offers of Registrable Shares and return all prospectuses to the Company. The Company shall promptly provide
T2 with
 revised prospectuses and, following receipt of the revised prospectuses and compliance with any related requirements of the Securities Act and any applicable state securities or blue sky laws,
T2 shall
 be free to resume making offers of the Registrable Shares. 
 (e). Allocation
of Expenses. The Company will pay all Registration Expenses of all registrations under this Agreement; provided, however, that if a registration is withdrawn at the request of
T2 (other
 than as a result of information concerning the business or financial condition of the Company which is made known to
T2 after
 the date on which such registration was requested) and if T2
 elects not to have such registration counted as a registration requested under subsection (b),
T2
shall pay the Registration Expenses of such registration pro rata in accordance with the number of their Registrable Shares included in such registration. 

(f). Indemnification. 

(i) In the event of any registration of any of the Registrable Shares under the Securities Act pursuant to this Agreement,
the Company will indemnify and hold harmless the seller of such Registrable Shares, each underwriter of such Registrable Shares, and each other person, if any, who controls such seller or underwriter within the meaning of the
Securities Act or the Exchange Act against any losses, claims, damages or liabilities, joint or several, to which such seller, underwriter or controlling person may become subject under the Securities Act, the Exchange
Act, state securities or blue sky laws or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue

  

 3 

 
statement of any material fact contained in any Registration Statement under which such Registrable Shares were registered under the Securities Act, any preliminary
prospectus or final prospectus contained in the Registration Statement, or any amendment or supplement to such Registration Statement, or arise out of or are based upon the omission or alleged omission to state a material fact required
to be stated therein or necessary to make the statements therein not misleading; and the Company will reimburse such seller, underwriter and each such controlling person for any legal or any other expenses reasonably incurred by such seller,
underwriter or controlling person in connection with investigating or defending any such loss, claim, damage, liability or action; provided, however, that the Company will not be liable in any such case to the extent that any such loss,
claim, damage or liability arises out of or is based upon (i) any untrue statement or omission made in such Registration Statement, preliminary prospectus or prospectus, or any such amendment or supplement, in reliance upon and in
conformity with information furnished to the Company, in writing, by or on behalf of such seller, underwriter or controlling person specifically for use in the preparation thereof or (ii) the failure of such seller to delivery copies of
the prospectus in the manner required by the Securities Act. 
 (ii) In the event of any registration of any of the
Registrable Shares under the Securities Act pursuant to this Agreement, each seller of Registrable Shares, severally (and not jointly or jointly and severally), will indemnify and hold harmless the Company, each of its
directors and officers and each underwriter, if any, and each person, if any, who controls the Company or any such underwriter within the meaning of the Securities Act or the Exchange Act, against any losses, claims, damages or
liabilities, joint or several, to which the Company, such directors and officers, underwriter or controlling person may become subject under the Securities Act, Exchange Act, state securities or blue sky laws or otherwise,
insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in any Registration Statement under which such
Registrable Shares were registered under the Securities Act, any preliminary prospectus or final prospectus contained in the Registration Statement, or any amendment or supplement to the Registration Statement or arise
out of or are based upon any omission or alleged omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading, if the statement or omission was made in reliance upon and in conformity
with information furnished in writing to the Company by or on behalf of such seller, specifically for use in connection with the preparation of such Registration Statement, prospectus, amendment or supplement; provided, however, that,
the obligations of a seller hereunder shall be limited to an amount equal to the proceeds to the seller arising from the sale of Registrable Shares as contemplated herein where any such losses, claims, damages or liabilities are not
determined to be caused at least primarily by any untrue statement of material fact made by, or any omission to state a material fact by, such Seller. 

(iii) Each Party entitled to indemnification under this Section (the “Indemnified Party”) shall give notice to
the Party required to provide indemnification (the “Indemnifying Party”) within a reasonable period of time after such Indemnified Party has actual knowledge of any claim as to which indemnity may be sought, and shall
permit 
  

 4 

 
the Indemnifying Party to assume the defense of any such claim or any litigation resulting there from; provided, however, that counsel for the Indemnifying Party, who shall conduct
the defense of such claim or litigation, shall be approved by the Indemnified Party (whole approval shall not be withheld unreasonably). The Indemnified Party may participate in such defense at such Party’s expense;
provided, however, that the Indemnifying Party shall pay such expense if representation of such Indemnified Party by the counsel retained by time Party would be inappropriate due to actual or potential differing interests between the
Indemnified Party and any other Party represented by such counsel in such proceeding. No Indemnifying Party in the defense of any such claim or litigation shall, except with the prior written consent of each Indemnified
Party, consent to entry of any judgment or enter into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party of a release from all liability in respect of
such claim or litigation, and no Indemnified Party shall consent to entry of any judgment or settle such claim or litigation without the prior written consent of the Indemnifying Party. 

(g). Indemnification with Respect to Underwritten Offering. In the event that Registrable Shares are sold pursuant to a Registration
Statement in an underwritten offering pursuant to subsection (b)(i), the Company agrees to enter into an underwriting agreement containing customary representations and warranties with respect to the business and operations of an issuer
of the securities being registered and customary covenants and agreements to be performed by such issuer, including without limitation customary provisions with respect to indemnification by the Company of the underwriters of such offering.

 (h). Information by Holder. Each holder of Registrable Shares included in any registration shall furnish to the Company
such information regarding such holder and the distribution proposed by such holder as the Company may request in writing if it is required in connection with any registration, qualification or compliance referred to in this Section.

 (i). Limitation on Subsequent Registration Rights. The Company shall not, without the prior written consent
of
T2,
 enter into any agreement (other than this Agreement) with any holder or prospective holder of any securities of the Company or any assignee or successors which would allow such holder or prospective holder to demand that his
securities in the Company or any assignee or successors be registered or that his securities be included in any registration filed under subsection (b) or (c). 

(j). Rule 144 Requirements. After the earliest of (i) the closing of the sale of securities of the Company pursuant to a
Registration Statement, (ii) the registration by the Company of a class of securities under Section 12 of the Exchange Act or (iii) the issuance by the Company of an offering circular pursuant to Regulation
A under the Securities Act, the Company or any assignee or successors agrees to: 
 (i) Make and keep public
information available, as those terms are understood and defined in Rule 144 under the Securities Act; 
 (ii) Use its
best efforts to file with the Commission in a timely manner all reports and other documents required of the Company or any assignee or successors under the 

 

 5 

 
Securities Act and the Exchange Act (at any time after it has become subject to such reporting requirements); and 

(iii) Furnish to any holder of Registrable Shares upon request a written statement by the Company as to its compliance with the reporting
requirements of said Rule 144 (at any time after 90 days following the closing of the first sale of securities by the Company pursuant to a Registration Statement), and of the Securities Act and the Exchange Act (at any time after it has become
subject to such reporting requirements), a copy of the most recent annual or quarterly reports of the Company, and such other reports and documents of the Company as such holder may reasonably request to avail itself of any similar rule or
regulation of the Commission allowing it to sell any such securities without registration. 
  

 6 

 EXHIBIT 5.1 ARBITRATION 

This Exhibit is to that particular Agreement between CareView and
T2 Consulting.
The terms of this Exhibit and the Agreement are hereby incorporated into one another. It is the expressed intent of the Parties that any and all Disputes between and
among the Parties and their Affiliated Entities (including their officers, directors, shareholders, employees, elected officials, etc.), regardless of the nature thereof, which have not been resolved or cured by the Parties as
described in Article V, “Dispute Resolution,” of the Agreement, shall be submitted to Arbitration (pursuant to the terms of the Agreement and this Exhibit thereto) under the applicable Rules and Procedures of
Arbitration of the American Arbitration Association (AAA). The Parties further stipulate that the decision or award rendered from said Arbitration will be enforceable under the Federal Arbitration Act of the United States
and/or comparable arbitration enforcement laws in the USA. 
 1. Arbitration Notice. Notice of the demand for
Arbitration shall be filed in writing with the other Parties to the Agreement as provided for in Article V, “Dispute Resolution” and with the AAA. The demand for Arbitration shall be made within a
reasonable time (not less than ten (10) days and not more than sixty (60) days) after the notice is received. In no event shall notice be given after the date when the institution of legal or equitable proceedings based on such claim,
dispute or other matter in question would be barred by the applicable statute of limitations or statute of repose. Notice to each Party shall be given as provided in Section 6.1, “Notices”, of the Agreement. 

2. Choosing an Arbitrator. The Parties agree to have one (1) disinterested and independent Arbitrator appointed by the Federal
District Court in Kansas City, Kansas to sit during the Arbitration proceedings and render an award thereon. The court appointed Arbitrator shall be an attorney or judge with a background in corporate law and business transactions.

 3. Location of Hearing; Language. Actual Arbitration hearings shall take place in the Kansas City Metropolitan Area unless
otherwise mutually agreed to, in writing. 
 4. Discovery. Unless otherwise agreed by the Parties, the Parties will be
entitled to conduct discovery prior to the hearing, on a schedule to be agreed to by the Parties or established by the Arbitrator, consisting of production of documents relevant to the Dispute, depositions of witnesses having
knowledge relevant to the Dispute, and depositions (and production of reports if prepared) of any expert witness the other Party intends to call at the Arbitration hearing. 

5. Presentation of Arguments. Absent the mutual agreement of the Parties to the contrary, all arguments must be presented in no more than
thirty (30) days after the start of the Arbitration hearings. Failure to present arguments within the time allotted shall be considered a default only in respect to the matter presented for Arbitration. If any Party so
defaults, it hereby agrees to forfeit all other remedies available to it in Law, equity or otherwise for the matter being arbitrated only. 

6. Rendering of Award. After each side rests in the Arbitration hearing, the award of the Arbitrator must be rendered in writing
within ten (10) days; however, an award rendered extrinsic of such time frame shall be valid and binding on the Parties. If either Party believes the 

 

 1 

 
award to be ambiguous or unclear in any manner, it shall submit its questions in writing to the Arbitrator and to the other Party which may elect to submit comments on the questions
in writing to the Arbitrator and to the questioning Party within ten (10) days, and the Arbitrator shall respond thereto in writing within ten (10) days of their receipt of the later of the questions or the comments on
the questions. 
 7. Remedies and Rules of Construction. In the Arbitration of any Dispute between the Parties
hereto the Arbitrator and/or reviewing courts are expressly restricted as follows by the contractual agreement of the Parties: 

A. Absent an expressed written statement(s) in the Agreement the terms of the Agreement may not be revised, rewritten or
modified by the Arbitrator or reviewing court (such terms can only be interpreted in accordance with the guidelines and directives herein and therein contained). Cy-pres may be invoked only if the Agreement or any of its
provisions are determined by a court of proper jurisdiction to be invalid, illegal, but its invocation shall be only for the purpose of carrying out as nearly as possible the intentions of the Parties and of preserving the Parties
pecuniary interests via reformation, modification, revision and/or reinstitution. 
 B. The common law principle of legal
construction that the document is to be strictly construed against the drafting Party is expressly waived by the Parties hereto and the Arbitrator is expressly instructed not to apply such principle in his/her deliberations.

 C. The Arbitrator must resolve the conflict; i.e., the Arbitrator may not allow the conflict to remain
unresolved. 
 D. The Arbitrator may not deliver an award which is arbitrary, capricious, or which is not supported by
substantial evidence, or which revises, rewrites or ignores the terms of this Agreement, and if he/she does so, the award may be submitted for review to a court of proper jurisdiction and venue, which is hereby requested to vacate, overturn,
reverse and/or remand the same. 
 E. The award/decision rendered by the Arbitrator shall be final and conclusive, and
the Parties stipulate that legal and/or equitable judgment may be entered upon it in the court having jurisdiction. It is also stipulated and agreed and the specific intent of the Parties hereto that termination of the Agreement
shall not be remedy ordered and/or awarded by the Arbitrator, or the court. 
 F. It is stipulated that this
agreement to arbitrate shall be enforceable via specific performance and/or injunctive relief. It is also stipulated and agreed that the Arbitrator in rendering his/her award/decision shall be authorized to order both specific performance,
and in the same decision award a Party(s) monetary damages as to the failure of the other Party(s) to perform its previous obligations to the other Party(s). 

G. Any Party(s) shall be entitled to the pre and post judgment remedy of attaching or offsetting income or monies in order to pay
any amount due or owing to it by the other Party(s) pursuant to the Agreement. If the pre and/or post judgment, self-help remedy of 

 

 2 

 
attaching or offsetting income is disputed it shall be decided as other Disputes between or among the Parties, with no penalty(s) being awarded for the use of pre and/or post
judgment, self-help remedies, even if the use thereof is held to have been in error. 
 8. Costs of Arbitration. All costs of arbitration
shall be borne by the losing Party(s). The losing Party(s) shall be the Party(s) designated as such by the Arbitrator. In the event a Party prevails on certain issues and loses on others, the cost of Arbitration
shall be apportioned between the Parties in any manner the Arbitrator orders. Costs of Arbitration include, but are not limited to the following with Interest thereon from the date such expenses are accrued, to wit:
i) expenses and fees of the Arbitrator; ii) legal expenses of the Parties during the course of and in preparation for Arbitration and Dispute Resolution and/or involving or enforcing the process Arbitration and
Dispute Resolution and/or involving or enforcing the process Arbitration and Dispute Resolution and/or enforcing the decision or judgment of the Arbitrator via legal proceedings; iii) travel and out-of-pocket expenditures
of any Party in relation to Arbitration and Dispute Resolution. In the event there is any dispute regarding what constitutes an Arbitration expense or the reasonableness of a particular item of expense submitted, the
Arbitrator shall resolve the same. 
 9. Application of AAA and Federal Arbitration Act. Except as herein provided, the provisions
of the AAA and the Federal Arbitration Act shall apply; and wherever and whenever there is a conflict between the provisions of the AAA and the Federal Arbitration Act and the Agreement, the provisions of the relevant
Agreement shall prevail. 
 10. Enforceable at Law and In Equity. It is stipulated that the Parties’ agreement to
arbitrate shall be enforceable via specific performance and/or injunctive relief via any proper court with jurisdiction. The award and judgment rendered by the Arbitrator shall be final and conclusive, and the Parties stipulate that
legal and/or equitable judgment may be entered upon jurisdiction in accordance with the Federal Arbitration Act in the Federal Courts for the District of Kansas in Kansas City, Kansas. 

 

 3Product and Services Agreement

 EXHIBIT 10.01 

Products and Services Agreement 

This Product and Services Agreement (this “Agreement”) is made and entered into as of
            , 201     by and between CareView Communications, Inc. (the “Provider”) and
                     (the “Hospital”). 

1. PRODUCTS AND SERVICES PROVIDED; AUTHORIZED USER REQUIREMENTS; MONTHLY FEES AND REVENUES 

1.1 Products and Services Provided; Permitted Users. This Agreement sets forth the terms and conditions on which the Provider
shall provide its products (collectively, the “CareView System®”) and services
(collectively, the “Services”) to the Hospital. The CareView System currently consists of (A) the primary package (the “Primary Package”) of
(i) SecureView®,
(ii) PhysicianView®, (iii) Virtual Bed
Rails®, (iv) CareView Fall Management
Program® and
(v) NurseView®; (B) the shared revenue package (the “Shared Revenue Package”)
of (i) PatientView®;
(ii) NetView®; and
(iii) MovieView® and (C) the connectivity package (the “Connectivity Package”)
of (i) EquipmentView®, (ii) RFID Tracking and (iii) WI-FI Networking. Additional services and
applications may be provided and shall be listed on Exhibit B. To use the CareView System, the Hospital’s representative must be (i) a licensed physician, (ii) another licensed healthcare professional or a non-physician
staff member, (iii) an employee or agent of the Hospital, or (iv) another individual expressly authorized by the Provider in writing to use the CareView System and that has agreed in writing to be bound by the terms and conditions of this
Agreement (as applicable, an “Authorized User”). The Hospital hereby represents and warrants that the Hospital has the authority to accept this Agreement on behalf of all Authorized Users, and to bind such Authorized Users
and members thereof to the terms of this Agreement. 
 1.2 Compliance with Laws and Regulations. The Hospital, for itself and on behalf
of its employees, officers, agents, subcontractors, Authorized Users and any other person expressly authorized to use the CareView System pursuant to the terms of this Agreement agrees to use the CareView System in a manner consistent with all
applicable professional and ethical standards and requirements, local, state, and federal Laws, and otherwise in accordance with the terms of this Agreement. 

1.3 Definition of Authorized User. For purposes of this Agreement, the term the “Hospital” shall include each Authorized User and the
Hospital is liable and responsible for ensuring an Authorized User’s compliance with this Agreement. 
 1.4 Monthly Fees and Revenues.

 (a) Commencing as of the Date of Fee Commencement as set forth on Schedule I, the Hospital shall pay the
Monthly Fees and Revenues on a monthly basis in the amounts set forth on Schedule I. The Hospital shall commence paying the Monthly Fees and Revenues on the Date of Fee Commencement (which Date of Fee Commencement is not required to
occur on the first (1st) day of a month), and to the extent that the Date of Fee Commencement does not occur on the first (1st) day of a 

 

 1 

 
calendar month, then the Primary Package Fee and the Connectivity Package Fee shall be prorated based on the number of days in the calendar month in which the Date of Fee Commencement occurs.
Other than the payment of Monthly Fees and Revenues on the Date of Fee Commencement (to the extent that the Date of Fee Commencement does not occur on the first (1st) day of a calendar month), Monthly Fees and Revenues shall be due and payable
on the first (1st) day of each month (or if such first (1st) day is not a business day, the first (1st) business day of each month) during the Term (each such date being referred to herein as a “Due Date”).
From the Date of Fee Commencement until the Hospital is notified otherwise by the Provider and, if applicable, any Lender, the Monthly Fees shall be paid to the account specified in a written direction provided by the Provider to the Hospital. All
Monthly Fees and Revenues shall be payable in U.S. Dollars. 
 (b) If any installment of Monthly Fees and Revenues are not paid
on the respective Due Date, the Hospital shall pay to the Provider interest on such overdue payment at the Agreement Default Rate, accruing from the Due Date of such payment until the same is paid. 

(c) The Installation and Training Fee, if any, shall be paid by the Hospital to the Provider on the Date of Fee Commencement. 

(d) The Primary Package Fee and the Connectivity Package Fee are payable in advance of the month during which the services are rendered,
which payment other than the payment occurring on the Date of Fee Commencement, shall be made on the first (1st) day of the month (or if such first (1st) day is not a business day, the first (1st) business day of each month). Payments
for the Shared Revenue will be payable in arrears on the first (1st) day of the month following the month during which the services are rendered (or if such first (1st) day is not a business day, the first (1st) business day of each
month). 
 1.5 Net Agreement. The obligations of the Hospital hereunder shall be separate and independent covenants and agreements, and
Monthly Fees and Revenues and all other sums payable by the Hospital hereunder shall continue to be payable in all events, and the obligations of the Hospital hereunder shall continue during the Term, except in the event of an Event of Default by
the Provider that extends beyond all grace and cure periods. This is an absolutely net agreement and the Monthly Fees and Revenues and all other sums payable hereunder by the Hospital shall be paid without notice or demand, and without setoff,
counterclaim, recoupment, abatement, suspension, reduction or defense. This Agreement is the absolute and unconditional obligation of the Hospital, and the obligations of the Hospital under this Agreement shall not be affected by any interference
with the Hospital’s use of any of the Products or Services or CareView Equipment (except in the event of an Event of Default by the Provider that extends beyond all grace and cure periods), including, but not limited to, (i) any damage to
or destruction of any of the CareView Equipment other than that caused by an Event of Default by or the negligence of the Provider or (ii) any theft or loss of any of the CareView Equipment. Except as expressly set forth herein, this Agreement
shall not terminate, and the Hospital shall not have any right to terminate this Agreement or to abate the payment of the Monthly Fees and Revenues due hereunder. 

 

 2 

 1.6 Groups-Patient Relationship. The CareView System shall be solely provided pursuant to the
Hospital’s existing Group-Patient relationship. [Note: Can you provide an explanation of this provision] 
 1.7 Defined Terms. The
Glossary of Defined Terms, attached hereto as Exhibit A, is incorporated herein by reference. 
 2. PRIMARY PACKAGE

 2.1 SecureView. SecureView monitors and records bedside activity in the patient’s room. All privacy and access options are
determined and configured by the Hospital. 
 2.2 NurseView. NurseView allows Authorized Users to view monitored rooms from the
Nurse’s Station. All privacy and access options are determined and configured by the Hospital. 
 2.3 PhysicianView. PhysicianView
enables the admitting physicians and non-physician staff members to view their patients from any personal computer. All privacy and access options are determined by the Hospital. 

2.4 Virtual Bed Rails. Virtual Bed Rails allows the hospital to activate a safety module that will notify the nursing the station when a patient
exits a defined area in the patient room. 
 2.5 Fall Management Program. The CareView Fall Management Program allows the hospital to
separately file, identify and research the activity of patients for whom virtual bed rails were engaged. 
 2.6 FacilityView.
FacilityView monitors and records activity in any area of the Hospital that the Hospital would desire security camera’s to be placed. All privacy and access options are determined and configured by the Hospital. 

3. SHARED REVENUE PACKAGE 
 3.1
PatientView. PatientView enables patients to allow family members and friends to monitor and videoconference with them in their private rooms. All privacy and access options are determined and configured by the Hospital. 

3.2 NetView. NetView allows the patient access to the Internet using the wireless keyboard and the television in the room or personal laptop
computers. 
 3.3 MovieView. MovieView allows the patient, family and/or friends access to a wide selection of movies for their viewing
pleasure while they are in their hospital room. 
 3.4 BabyView. BabyView allows mothers to view their newborn child from their hospital
bed while the baby is in the Nursery or Neo-Natal Intensive Care Unit (“NICU”). 
 3.5 Revenue Sharing. Shared Revenue
will be divided between the Hospital and the Provider equally. 
  

 3 

 4. CONNECTIVITY PACKAGE 

4.1 EquipmentView. EquipmentView enables the room communication platform to wirelessly communicate with selected equipment, appliances and devices
in the patient’s room with the Hospital’s information network. 
 4.2 RFID Tracking. RFID tracking enables the CareView System
to locate the Hospital assets and/or personnel throughout the Hospital. 
 4.3 WI-FI Network. The CareView System through a series of
repeaters enables the entire hospital to wirelessly access the Internet.  
 5. CAREVIEW EQUIPMENT 

5.1 Description. In order to use the CareView System, it will be necessary for the Provider to install the “CareView Equipment”, which
consists of the room communications platform, nurse’s monitoring station, head-end control server, any and all cameras installed as part of the CareView System and the Provider’s proprietary software. The room communications platform is
located in each room. The Nurse’s Station contains a specifically-configured touch screen monitor and controller. The head-end control server is located at the Hospital’s demarcation point of the cable television plant. A detailed schedule
of the CareView Equipment covered by this Agreement will be provided upon completion of the installation. 
 5.2 Ownership. None of the
CareView Equipment shall be deemed fixtures or part of the Hospital’s realty. The Provider shall at all times retain any and all right, title and interest in and to the CareView Equipment. The Provider’s ownership shall be displayed by
notice, plaques or inscription contained on the CareView Equipment. The Hospital shall have no right to pledge, sell, mortgage, give away, remove, relocate, alter or tamper with the CareView Equipment (or any notice of our ownership thereon) at any
time. The Provider shall have the right to make such filings as are necessary to evidence its ownership rights in the CareView Equipment, and the Hospital agrees to execute any reasonably necessary documents for the Provider to make such filings.

 5.3 Deployment and Costs. the Provider will provide a Pre-Deployment Checklist that requests site, system and equipment information
that must be completed prior to installation. This will allow the Provider to identify existing conditions before starting any installation work and provide an opportunity to update or condition the cable plant. It shall be the responsibility of the
Hospital to insure that the CATV plant meets or exceeds the requirements specified on the Pre-Deployment Checklist. Should the Hospital wish to have the Provider bring the existing CATV plant to required specifications, the Provider will charge the
Hospital for the costs and fees associated with bringing the existing CATV plant to required specifications. In any event, the cost of attaining the needed specification level should never exceed one hundred dollars ($100) per room. During the
inspection, if abnormal conditions (such as asbestos) are discovered, the parties may agree in their respective sole discretion to explore alternative network arrangements. 

 

 4 

 5.4 Installation. The Provider will be responsible for installing all Careview Equipment in the
Hospital rooms, nursing stations and all areas where CareView Equipment is to be utilized at no cost to the hospital. The Hospital will make available for installation those rooms, nursing stations and areas so that the scheduled installation may be
completed within a one week period. The installation of the CareView Equipment shall be performed so as not to disrupt or interfere with the Hospital’s operations or patient care. Should the Provider be unreasonably denied access to those rooms
requiring installation of the CareView Equipment, the Hospital agrees to reimburse the Provider for all reasonable fees incurred for such delays. The Hospital agrees to reimburse the Provider for all travel, hotel and dinner costs for the employees,
agents and subcontractors of the Provider installing the CareView System. 
 5.5 Insurance. The Hospital agrees to provide property,
theft and casualty insurance on the CareView Equipment installed on the Hospital property up to amounts of $1,000,000 per occurrence and $3,000,000 in the aggregate. 

5.6 Equipment Attachment. The Hospital shall not attach any electrical or other devices to or otherwise alter the CareView Equipment without the
Provider’s prior written consent. 
 5.7 Software Upgrades. During the Term of this Agreement, the Provider will provide certain
product upgrades at no additional cost to the Hospital for NurseView, SecureView, PatientView, BabyView, PhysicianView, NetView, MovieView, Virtual Bed Rails, and the CareView Fall Management Program. 

5.8 Service and Repair. The Provider will provide service and repair to all CareView Equipment for the Term of this Agreement. The Hospital shall
notify the Provider in writing within twenty-four (24) hours of any damage to, or accident involving, the CareView Equipment. The Hospital will provide the Provider with access to the CareView Equipment, including without limitation, for the
purpose of inspecting the CareView Equipment or performing any work, maintenance, replacement and repair which the Provider is permitted or required to perform under this Lease. The Provider or its designees shall perform all maintenance,
replacement and repair of the CareView Equipment. Should it be determined by the Provider that replacement of the CareView Equipment is the appropriate initial response, the Hospital agrees to replace such CareView Equipment, at its cost and
expense, with other CareView Equipment that has been supplied by the Provider to the Hospital. The Hospital shall pay the cost of any repairs or replacements of the CareView Equipment, in excess of insurance recoveries received by the Provider in
connection with insurance maintained pursuant to Section 5.5 of this Agreement, that are necessitated by any damage to, or misuse of the CareView Equipment. The charges shall be the actual cost to repair and replace such CareView Equipment. The
Hospital hereby agrees to grant to the Lender and its assignees the licenses and other rights to enter onto the Hospital property that are granted to the Provider pursuant to the terms of this Agreement. 

5.9 Training. The Provider provides initial basic training for Authorized Users. Further, the Provider will train a designated official(s) of the
Hospital to provide continuing education on the use of the CareView System. 
  

 5 

 6. NETWORK COMMUNICATIONS 

The Hospital agrees to provide an appropriate, dedicated connection to the internet for the CareView System and CareView Equipment in accordance with the
specifications provided by the Provider to the Hospital. If any additional connection is required for operation of the CareView System and/or CareView Equipment in accordance with the terms of this Agreement, the Hospital agrees to provide such
connection. The Hospital agrees to provide and maintain the Return Path for the exclusive use of the Provider in connection with the CareView Equipment and CareView System. 

7. PRIVACY POLICY
 The Provider agrees to
comply with the Hospital’s Privacy Policy; as such policy may be amended from time to time. The Provider shall also comply with the HIPAA Business Associate Provisions attached hereto as Exhibit C. 

8. OPERATIONS 
 Except as provided
for under this Agreement or applicable law, the Provider is not responsible for maintaining data arising from use of the CareView System. The Provider will handle and maintain data in accordance with its standard operating procedures. The Provider
is not responsible for transmission errors or corruption or compromise of data carried over local or interchange telecommunication carriers. 

The Provider will have the exclusive right to insert two channels onto the CATV network to support patient education and marketing of the Hospital and
CareView System. The Provider will also have the right to transmit data to further the education and marketing features of the CareView System and display approved advertising on those channels or data. 

9. DURATION; DEFAULT AND TERMINATION OF AGREEMENT 

(a) This Agreement shall commence on the date hereof and will continue for a term of five (5) years (the “Term”), provided
that if this Agreement commences on any day other than the first (1st) day of a calendar month, then the Term shall be deemed to end on the expiration of the fifth (5th) calendar year following the first full calendar month of this
Agreement. Upon the expiration or earlier termination of this Agreement, the Hospital will destroy all copies of CareView Materials in the Hospital’s possession, return all CareView Equipment and cease any access to or use of the CareView
System. The Hospital hereby grants a license to enter onto the Hospital property for the purpose of removal of the CareView Equipment following the expiration or earlier termination of this Agreement. 

(b) The occurrence of any of the following events shall be an “Event of Default” by the Hospital under this Agreement: 

(i) The Hospital’s failure to pay any amount required to be paid hereunder when due. 

 

 6 

 (ii) The breach by the Hospital of any other term, covenant or condition of this Agreement,
if such a breach is not cured within thirty (30) days after receipt of written notification of such breach. 
 (iii) A
proceeding shall have been instituted in a court having jurisdiction, seeking a decree or order (A) for relief in respect of the Hospital in any involuntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter
in effect, (B) for the appointment of a receiver, liquidator, assignee, custodian, trustee, sequestrator or other similar official of the Hospital or for any substantial parts of its property or (C) for the winding up or liquidation of the
affairs of the Hospital; and in any such case either (x) any such proceeding shall remain undismissed or unstayed and in effect for a period of sixty (60) consecutive days or (y) such court shall enter a decree or order granting the
relief sought in such proceeding. 
 (iv) The Hospital shall commence a voluntary case under any applicable bankruptcy,
insolvency or other similar law now or hereafter in effect, shall consent to the entry of an order for relief in any involuntary case under any such law, or shall consent to the appointment or taking possession by a receiver, liquidator, assignee,
trustee, custodian, sequestrator or other similar official of the Hospital or for any substantial part of its property, or shall make a general assignment for the benefit of creditors, or shall fail generally to pay its debts as they become due or
shall take any corporate action in furtherance of any of the foregoing. 
 (c) The occurrence of any of the following events shall be an
“Event of Default” by the Provider under this Agreement: 
 (i) The breach by the Provider of any other term, covenant
or condition of this Agreement, if such a breach is not cured within thirty (30) days after receipt of written notification of such breach. 

(ii) A proceeding shall have been instituted in a court having, seeking a decree or order (A) for relief in respect of the Provider
in any involuntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, (B) for the appointment of a receiver, liquidator, assignee, custodian, trustee, sequestrator or other similar official of the
Provider or for any substantial parts of its property or (C) for the winding up or liquidation of the affairs of the Provider; and in any such case either (x) any such proceeding shall remain undismissed or unstayed and in effect for a
period of sixty (60) consecutive days or (y) such court shall enter a decree or order granting the relief sought in such proceeding. 

(iii) The Provider shall commence a voluntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in
effect, shall consent to the entry of an order for relief in any involuntary case under any such law, or shall consent to the appointment or taking possession by a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar
official of the Provider or for any substantial part of its property, or shall make a general assignment for the benefit of creditors, or shall fail generally to pay its debts as they become due or shall take any corporate action in furtherance of
any of the foregoing. 
  

 7 

 (d) Upon the occurrence of any Event of Default, and in addition to any other remedies provided under
applicable law, the party not in default may, at its option, (i) terminate this Agreement, (ii) proceed by any lawful means to enforce performance of this Agreement, and/or (iii) sue for damages at law or in equity under this
Agreement or under applicable law. Any such remedies shall be cumulative and not exclusive. 
 (e) Upon written notification to the Hospital
that this Agreement has been pledged pursuant to the Financing, the Hospital shall provide the Lender with notice of any Event of Default by the Provider under this Agreement or any other circumstances which would entitle the Hospital to cancel or
terminate this Agreement or abate the Monthly Fees and Revenues or other sums payable hereunder, and agrees that, notwithstanding any provisions of this Agreement to the contrary, no notice of cancellation, termination or abatement thereof shall be
effective unless the Lender shall have received notice of the default or other circumstance giving rise to such cancellation, termination or abatement and shall have failed with thirty (30) days after receipt of such notice to cure such default
or remedy such circumstance, or if such default cannot be cured within thirty (30) days, shall have failed within thirty (30) days after receipt of such notice to commence to cure such default or remedy such circumstance and to thereafter
diligently pursue any action necessary to cure such default or remedy such circumstance, as the case may be. The Hospital hereby agrees to execute and deliver such documents and instruments as shall reasonably be requested in connection with the
Financing to more fully perfect the security interest of the Lender in this Agreement and the CareView Equipment. 
 10. LEGAL NOTICES 

 10.1 LIMITATION OF LIABILITIES. IN NO EVENT SHALL THE PROVIDER, NOR ANY OF ITS SHAREHOLDERS, AFFILIATES, SUBSIDIARIES, DIRECTORS,
MANAGERS, EMPLOYEES OR OTHER REPRESENTATIVES BE LIABLE FOR ANY DIRECT DAMAGES IN EXCESS OF THE FEES PAID DURING THE PRECEDING TWELVE (12) MONTHS. IN ADDITION, TO THE MAXIMUM EXTENT PERMITTED BY LAW, AND EXCEPT FOR THE PROVIDER’S AND THE
HOSPITAL’S INDEMNIFICATION OBLIGATIONS UNDER THIS AGREEMENT, IN NO EVENT SHALL THE PROVIDER, THE HOSPITAL NOR ANY OF THEIR SHAREHOLDERS, AFFILIATES, DIRECTORS, MANAGERS, EMPLOYEES OR OTHER REPRESENTATIVES BE LIABLE FOR ANY SPECIAL, PUNITIVE,
INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES, LOSS OF USE, LOSS OF PROFITS, INTERRUPTION OF SERVICE OR LOSS OF DATA, WHETHER IN ANY ACTION IN WARRANTY OR CONTRACT. 

10.2 WARRANTIES. THE CAREVIEW SYSTEM AND ANY PRODUCTS OR SERVICES CONTAINED THEREIN ARE PROVIDED “AS IS”. THE PROVIDER HEREBY
DISCLAIMS AND EXCLUDES ALL IMPLIED WARRANTIES OF ANY KIND. THE PROVIDER DOES WARRANT THAT THE CAREVIEW SYSTEM AND ANY PRODUCTS OR SERVICES CONTAINED THEREIN WILL SATISFY THE HOSPITAL’S REQUIREMENTS FOR SUCH PRODUCTS AND SERVICES AS DESCRIBED IN
SECTIONS 2, 3 AND 4 OF THIS AGREEMENT. THE PROVIDER DOES NOT WARRANT AGAINST HUMAN OR MACHINE ERRORS, OMISSIONS, DELAYS, INTERRUPTIONS OR LOSSES, INCLUDING LOSS OF DATA. 
  

 8 

 10.3 NON-INFRINGEMENT. THE CAREVIEW SYSTEM AND ANY INFORMATION, PRODUCTS OR SERVICES CONTAINED
THEREIN DO NOT INFRINGE IN ANY WAY UPON ANY KNOWN THIRD PARTY INTELLECTUAL PROPERTY RIGHTS, PATENTS OR TRADEMARKS. 
 10.4 CERTAIN
JURISDICTIONS. TO THE EXTENT ANY OF THE LIMITATIONS OF LIABILITY OR DISCLAIMERS OF WARRANTIES PROVIDED IN THIS SECTION 10 ARE RESTRICTED BY APPLICABLE LAW IN CERTAIN JURISDICTIONS, SUCH LIMITATIONS OF LIABILITY SHALL NOT APPLY IN SUCH
JURISDICTIONS TO THE EXTENT OF SUCH RESTRICTIONS. 
 11. INTELLECTUAL PROPERTY 

11.1 Copyright Materials and Other Intellectual Property. The information available through the CareView System is the property of CareView or its
licensors and is protected by United States copyright, trademark, and other intellectual property laws and may be displayed, reformatted, and printed only for the Hospital’s personal, non-commercial use. The Hospital agrees not to reproduce,
retransmit, distribute, disseminate, sell, publish, broadcast, or circulate the information owned by CareView, the Provider or their respective licensors received through the CareView System to anyone, including but not limited to others in the
Hospital’s organization who is not authorized to use the CareView System pursuant to Section 1.1 of this Agreement. Any copy made of information obtained through the CareView website must include the copyright notice. Use, reproduction,
copying, or redistribution of CareView’s logos is strictly prohibited without prior written permission from CareView. All software and accompanying documentation made available for download from the CareView System is the copyrighted work of
CareView or its licensors. The copyright holder retains software and documentation ownership. Ownership of CareView’s or the Provider’s intellectual property is not transferred to the Hospital; rather, the Hospital is granted a
non-exclusive license to use the CareView System and the software and documentation constituting the CareView System during the term of this Agreement. 

To the extent that CareView is not the “Provider” under this Agreement, CareView, its successors and/or assigns from time to time, shall be
third party beneficiaries to and of this Agreement, including, without limitation, with respect to this Section 11.1. 

11.2 Trademarks. CareView
System®,
PatientView®,
BabyView®,
PhysicianView®,
SecureView®,
NurseView®,
NetView®,
ProcedureView® and
EquipmentView® are each registered or pending trademarks of CareView. All other CareView Services, service names
and proprietary tools, including, but not limited to CareView, are trademarks of CareView. All other brands and names are the property of their respective owners. Nothing contained on the CareView System should be construed as granting any license
or right to use any trademark displayed on this site without the express written permission of CareView, the Provider and such third-party that may own the trademark. 

11.3 Patents. Various aspects of the CareView System are subject to United States patents and patents pending. Any use of these
patented assets is prohibited without the express prior written consent of CareView and the Provider, except as allowed by the Agreement. 
  

 9 

 11.4 Limited License. Subject to the terms of this Agreement, CareView and the Provider hereby grants
the Hospital a limited, revocable, non-transferable and non-exclusive license to use the software, network facilities, content and documentation on and in the CareView System to the extent, and only to the extent, necessary to access, explore and
otherwise use the CareView System pursuant to the terms of this Agreement. Such non-exclusive license shall automatically expire upon the termination of this Agreement. The Hospital agrees not to reproduce or copy any documentation, content, text,
data, graphics, images, audio or video clips, interfaces or other materials or works of authorship (collectively, the “CareView Material”) in or on the CareView System unless such reproduction or copying is expressly
restricted or limited with respect to the CareView Material. 
 The non-exclusive license granted herein does not permit the Hospital, and the
Hospital agrees not to: (a) modify, translate, reverse engineer, disassemble, decompile or create derivative works of the CareView Material or any other part of the CareView System or allow a third party, whether directly or indirectly
(including, but not limited to the direct or indirect use of wizards, agents, bots, or other utilities), to modify, translate, reverse engineer, disassemble, decompile or create derivative works of the CareView Material or any other part of the
CareView System, except as expressly permitted in writing by CareView or by law; or (b) transfer, distribute, sell, lease, rent, disclose or provide access to the CareView Material or any other part of the CareView System to any third party or
use the CareView Material or CareView System and hardware to provide service bureau, time sharing or other services to third parties. Any change or alterations to this limited non-exclusive license are to be incorporated into the License Addendum
attached hereto. 
 12. MISCELLANEOUS 

12.1 Indemnity. THE HOSPITAL AGREES TO INDEMNIFY, DEFEND AND HOLD HARMLESS CAREVIEW AND THE PROVIDER, ITS OFFICERS, DIRECTORS, EMPLOYEES, AGENTS,
LICENSORS, SUPPLIERS AND AFFILIATES FROM AND AGAINST ALL LOSSES, LIABILITY, EXPENSES, DAMAGES AND COSTS, INCLUDING REASONABLE ATTORNEY’S FEES, ARISING OUT OF OR RELATED TO ANY BREACH OF THE TERMS OF THIS AGREEMENT, THE HOSPITAL’S
RELATIONSHIP WITH A PATIENT, ANY NEGLIGENT OR WRONGFUL ACTION OR OMISSION BY THE HOSPITAL RELATED TO THE HOSPITAL’S USE OF OR PROVIDING OF SERVICES THROUGH THE CAREVIEW SYSTEM AND/OR THE CAREVIEW EQUIPMENT, OR ANY NEGLIGENT OR WRONGFUL USE OF
CAREVIEW’S SERVICES OR THE CAREVIEW EQUIPMENT BY THE HOSPITAL, ANY AUTHORIZED PERSON OR ANY OTHER PERSON ACCESSING THE HOSPITAL’S ACCOUNT. THE PROVIDER AGREES TO INDEMNIFY, DEFEND AND HOLD HARMLESS THE HOSPITAL, THE HOSPITAL’S
OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, AND AFFILIATES FROM AND AGAINST ALL LOSSES, LIABILITY, EXPENSES, DAMAGES AND COSTS, INCLUDING REASONABLE ATTORNEY’S FEES, ARISING OUT OF OR RELATED TO (i) ANY NEGLIGENT OR WRONGFUL ACTION OR OMISSION
BY THE PROVIDER RELATED TO THE PROVIDING BY THE PROVIDER OF THE CAREVIEW SERVICES, (ii) THE UNAUTHORIZED USE OR ACCESS TO ANY PROTECTED HEALTH INFORMATION, (iii) ANY CLAIMS 

 

 10 

 
OF INFRINGEMENT OF ANY THIRD PARTY’S INTELLECTUAL PROPRETY RIGHTS, PATENT OR TRADEMARK IN CONNECTION WITH THE CAREVIEW SYSTEM, OR (IV) ANY BREACH OF THIS AGREEMENT. 

12.2 Survival. The provisions of Sections 7 (Privacy Policy), 10 (Legal Notices), 12.1 (Indemnity), and any liabilities or
payment obligations that have accrued prior to termination, shall survive any termination of this Agreement. All licenses granted by CareView and the Provider under this Agreement shall be automatically revoked as of the termination of this
Agreement. 
 12.3 Notice. Any notice, request, demand, statement, authorization, approval or consent made hereunder shall be in writing
and shall be sent by Federal Express, or other reputable courier service, or by postage pre-paid registered or certified mail, return receipt requested, and shall be deemed given when received or refused (as indicated on the receipt) and addressed
as follows: 
  

									
	If to the Provider:	 	
				
		 		 	 CareView Communications, Inc.

405 State Highway 121 Bypass, Suite B-240

Lewisville, TX 75067
 Attn: Samuel A. Greco,
Chief Executive Officer
	 	
		
	If to the Hospital:	 	
				
		 	  
	 		 	
		 	  
	 		 	
		 	  
	 		 	
		 	Attn:	 	  
	 		 	

 In connection with any Financing, notices shall be addressed to the Lender as specified in a written notice provided
to the Hospital. Each party may designate a change of address by notice given, as hereinabove provided, to the other party, at least fifteen (15) days prior to the date such change of address is to become effective. 

12.4 Severability. The provisions of this Agreement are severable, and in the event any provision hereof is determined to be invalid or
unenforceable, such invalidity or unenforceability shall not in any way affect the validity or enforceability of the remaining provisions hereof. If any provision of this Agreement is held to be invalid or unenforceable, such provision shall be
reformed, if reasonably possible, only to the extent necessary to make it enforceable. 
 12.5 Force Majeure. Neither CareView nor the
Provider shall be liable in damages or have the right to terminate this Agreement for any delay or default in performing hereunder if such delay or default is caused by conditions beyond its control including, but not limited to Acts of God,
government restrictions (including, the denial or cancellation of any export or other necessary license), wars, insurrections and/or any other cause beyond the reasonable control of the party whose performance is affected.  

 

 11 

 12.6 Entire Agreement. This Agreement, together with any Exhibits attached hereto and the Provider
and CareView rules or policies referred to herein, represents the complete agreement between the Hospital and the Provider concerning the subject matter hereof, and it replaces all prior oral or written communications concerning such subject matter.

 12.7 Assignment. The Hospital may not assign, transfer or delegate this Agreement or any part of it without the prior written consent
of the Provider and the Lender, in their respective sole discretion. Notwithstanding any provision to the contrary in this Agreement, the Provider shall have the right, in its sole discretion, to (i) assign its rights and obligations under this
Agreement to a subsidiary of the Provider (in which event written notice of such assignment will be provided by the Provider to the Hospital), and in the event that CareView is not the Provider hereunder, to enter into a services agreement with
CareView pursuant to which CareView performs portions or all of the obligations of the Provider pursuant to this Agreement and (ii) assign, pledge and encumber its right, title and interest in and to this Agreement, the CareView Equipment, the
CareView System and all proceeds arising therefrom and all right, title and interest thereunder in connection with the Financing and/or in order to finance the CareView Equipment. The Hospital hereby agrees to execute and deliver such documents,
instruments and consents as are reasonably necessary in connection with the foregoing and hereby consents to any such filings (including, without limitation, the filing of ucc financing statements) as are required to perfect the security interest of
the Lender in this Agreement, the CareView Equipment, the CareView System and all proceeds arising therefrom and all right title and interest thereunder in connection with the Financing and/or in order to finance the CareView Equipment. 

12.8 Successors and Assigns. This Agreement will be binding upon and inure to the benefit of the heirs, successors and permitted assignees of the
parties. 
 12.9 Waiver. Failure to exercise or delay in exercising any right hereunder, or failure to insist upon or enforce strict
performance of any provision of this Agreement, shall not be considered waiver thereof, which can only be made by a signed writing. No single waiver shall be considered a continuing or permanent waiver. 

12.10 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York without giving effect
to any choice of law rules that may give a contrary result. The Hospital agrees that any legal action or proceeding between CareView and the Hospital for any purpose concerning this Agreement shall be brought exclusively in a court of competent
jurisdiction sitting in New York, United States. The Hospital agrees to submit to the personal jurisdiction of, and that venue is proper in, any federal or state court in New York, United States. 

12.11 Confidentiality. The Hospital agrees to keep the particulars of this agreement confidential and to only share this document, its terms and
conditions, features and options within the internal organization of the Hospital and/or related governing bodies. 
  

 12 

 IN WITNESS WHEREOF, this Agreement is effective as of the      day of
            , 201    . 
  

											
	[LEGAL NAME OF THE HOSPITAL]	  		  		  		  	
						
	Signature:	  	  
	  		  	Signature:	  	  
	  	
	Name:	  		  		  	Name:	  	  
	  	
	Title:	  		  		  	Title:	  	  
	  	
						
	Date:	  	  
	  		  	Date:	  	  
	  	
					
	CareView Communications, Inc.	  		  		  		  	
	A Texas Corporation	  		  		  		  	
						
	Signature:	  	  
	  		  		  		  	
	Name:	  	Samuel A. Greco	  		  		  		  	
	Title:	  	Chief Executive Officer	  		  		  		  	
						
	Date:	  	  
	  		  		  		  	

  

 13 

 EXHIBIT A 

GLOSSARY OF DEFINED TERMS 

“Agreement” shall have the meaning set forth in the introductory paragraph of this Agreement. 

“Agreement Default Rate” shall mean five percent (5%) per annum above the Prime Rate as in effect from time to
time. 
 “Authorized User” shall have the meaning set forth in Section 1.1 of this Agreement. 

“CareView” shall mean CareView Communications, Inc., a Texas corporation. 

“CareView Broadcast System Content Fees” shall mean the aggregate monthly fees and charges paid to the Provider with
respect to the CareView Broadcast System Content as set forth on Schedule I. 
 “CareView
Material” shall have the meaning set forth in Section 11.4 of this Agreement. 

“CareView
System®” shall have the meaning set forth in Section 1.1 of this Agreement. 

“Connectivity Package” shall have the meaning set forth in Section 1.1 of this Agreement. 

“Connectivity Package Fee” shall mean the aggregate monthly fees and charges paid to the Provider with respect to the
Connectivity Package as set forth on Schedule I. 
 “Due Date” shall have the meaning set forth
in Section 1.4(a) of this Agreement. 
 “Financing” shall mean any loan entered into by the Provider, as
borrower, pursuant to which this Agreement is pledged as collateral for the Financing. 
 “Installation and Training
Fees” shall mean the one-time fee paid to the Provider on the Date of Fee Commencement with respect to installation and training as set forth on Schedule I. 

“Laws” shall mean all present and future laws, statutes, codes, ordinances, orders, judgments, decrees, injunctions,
rules, regulations and requirements, even if unforeseen or extraordinary, of every duly constituted governmental authority or agency. 

“Lender” shall mean the lender, and its respective successors and assigns from time to time, in connection with any
Financing. 
  

 14 

 “Monthly Fees and Revenues” shall mean the aggregate monthly amount of the
Primary Package Fee, the Shared Revenue, the CareView Broadcast System Content Fees and the Connectivity Package Fee. 

“NICU” shall have the meaning set forth in Section 3.4 of this Agreement. 

“Primary Package Fee” shall mean the aggregate monthly fees and charges paid to the Provider with respect to the Primary
Package as set forth on Schedule I. 
 “Prime Rate” shall mean the current rate of interest per
annum announced from time to time by Citibank N.A. (or its successor) as its prime rate in New York, New York, or if Citibank N.A. shall cease to announce such rate, then the current rate published as the prime rate in The Wall Street
Journal. 
 “Provider” shall have the meaning set forth in the introductory paragraph of this Agreement.

 “Return Path” means the frequency bandwith from 5 to 42 megahertz. 

“Services” shall have the meaning set forth in Section 1.1 of this Agreement. 

“Shared Revenue” shall mean the aggregate monthly fees, amounts and shared revenue paid to the Provider with respect to the
Shared Revenue Package as set forth on Schedule I. 
 “Shared Revenue Package” shall have the
meaning set forth in Section 1.1 of this Agreement. 
 “Term” shall have the meaning set forth in
Section 9(a) of this Agreement. 
  

 15 

 EXHIBIT B 

SERVICE DESCRIPTION 
  

	I.	Primary Package 

  

	 	a.	Basic Service – SecureView, NurseView and PhysicianView shall be the Primary Package of product offerings contained within this agreement. (see
Section 2.1 through 2.4) 

 II. Shared Revenue Package 

 

	 	a.	PatientView – PatientView, the video conferencing system within the patient room. (see Section 3.1) 

 

	 	b.	NetView – NetView, the system that allows the patient access to the Internet using a wireless keyboard and the room television or their laptop computer.
(see Section 3.2) 

  

	 	c.	MovieView – MovieView, the system that allows the patient to view movies in the patient room. (see Section 3.3) 

 

	 	d.	BabyView – BabyView, the application that enables mothers to continually monitor their newborn from the Nursery and/or NICU. 

 

	III.	The CareView Broadcast System – The Provider will provide the Hospital with the capability to broadcast to each room a variety of educational,
informational and service communications to patients and guests alike. The Hospital will be allowed to access the system for: 

  

	 	a.	Welcome message – a pre-recorded message from the Hospital CEO welcoming the patient to the facility. 

 

	 	b.	Pre-procedure Education – to inform and educate the patient regarding a procedure that is scheduled to be performed (i.e. angioplasty, hip replacement,
spine surgery, etc.). 

  

	 	c.	Patient Condition Education – to inform and educate the patient regarding a condition they have and suggested lifestyle improvements to live with those
conditions (i.e. high blood pressure, diabetes, etc.). 

  

	 	d.	Discharge message – a pre-recorded message from the Hospital CEO prior to discharge along with a request to complete the patient satisfaction survey to
follow. 

  

	 	e.	Discharge services – A variety of discharge services may be desired such as e-scripts to the Hospital owned or local pharmacies, e-ordering home care
services, and messaging to the patient’s message board regarding the date. 

  

	IV.	The CareView Broadcast System Content – content for the broadcast system will be charged as follows: 

 

	 	a.	Welcome message – Provided by the Hospital. 

  

	 	b.	Pre-procedure Education – the programs will be made available by the Provider. 

 

	 	c.	Patient Condition Education – the programs will be made available by the Provider. 

 

	 	d.	Discharge message – Provided by the Hospital. 

  

	 	e.	Patient Satisfaction Survey – this is an optional program customized to fit the Hospital’s needs and will be priced accordingly.

  

 16 

	 	f.	Discharge services – this customized option will be charged based on the nature and extent of the request. 

 

	V.	Connectivity Package 

  

	 	a.	EquipmentView and RFID Tracking are services that are customized to each individual facility. To qualify for the Connectivity Package, the Hospital must be on the
CareView System for at least six months (see Section 4.1 and 4.2). 

  

	 	b.	FacilityView – FacilityView may be installed in various locations within the Hospital to provide for security camera/network service. (see Section
4.4) 

  

	 	c.	WI-FI Network – WI-FI Network through a series of access points enables the Hospital to wirelessly access the Internet. 

 

	VI.	Installation and Training. 

  

	 	a.	The Provider will provide one-time installation and training. (see Section 5.3, 5.4, and 5.9) 

 

 17 

 EXHIBIT C 

BUSINESS ASSOCIATES 

(follows this page) 
  

 18 

 SCHEDULE I 

AGREEMENT AND PRICING TERMS 

Date of Fee Commencement:
                    , 201     

I. The Primary Package Fee 

a. Basic Service: A monthly fee of $69.95 per camera installed. Pursuant to this Agreement,
             cameras are being installed. 
 II. The Shared Revenue 

 a. PatientView:
                                . 

b. NetView:
                                . 

c. MovieView:
                                . 

d. BabyView:
                                . 

e. Package Pricing: 
 III.
The Connectivity Package Fee 
 a. FacilityView: A monthly fee of $49.95 per camera installed. Pursuant to this
Agreement,              cameras are being installed. 
 b.
EquipmentView: 
 c. RFID Tracking: 

d. WI-FI Network: 
 IV.
Installation and Training Fee 
 a. Installation and Training: A one-time fee of
$             to be paid on the Date of Fee Commencement. 
  

 19

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