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EXHIBIT 10.1

                                                                   July 15, 2022
Ontrak, Inc. 
2200 Paseo Verde Parkway, Suite 280
Henderson, NV 89052
Attention: Brandon LaVerne
Email: blaverne@ontrakhealth.com 
RE: Waiver of Certain Conditions 
Ladies and Gentlemen:
Reference is made to that certain Master Note Purchase Agreement dated as of April 15, 2022 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Note Purchase Agreement”) entered into by and among ONTRAK, INC., a Delaware corporation (the “Company”), as issuer, certain of its Subsidiaries, as Guarantors, ACUITAS CAPITAL LLC, a Delaware limited liability company, as initial purchaser (“Purchaser”), and the Collateral Agent.  Capitalized terms used but not defined in this letter agreement (this “Waiver”) shall have the meanings given them in the Note Purchase Agreement.  All section references herein are to sections of the Note Purchase Agreement.
Background
The Company delivered to Purchaser a Funding Notice on July 14, 2022 pursuant to which the Company agreed to issue and to sell to Purchaser a Note in a principal amount of $5,000,000 (the “Initial Note”).  In connection with the foregoing, the Company requested that Purchaser waive compliance with (a) certain conditions required to be satisfied in connection with the purchase and sale of the Initial Note, and (b) the covenant in Section 6.8(b) through and including August 15, 2022.
Waiver
Subject to the terms and conditions herein, Purchaser (being the sole Purchaser under the Note Purchase Agreement) and the Company hereby agree: 
(i)Purchaser shall waive the condition in Section 2.1(b) that the Company provide not less than ten Business Days advance written notice to Purchaser and the Company shall be required to provide such written notice to Purchaser in connection with purchase of the Initial Note not less than one Business Day in advance of the date of the proposed purchase of the Initial Note (which the parties acknowledge has been provided);
(ii)With respect to the purchase and sale of any Notes on any Credit Date on or before August 15, 2022 (including the Initial Note), Purchaser shall waive the condition in Section 3.2(a)(v) that, after giving Pro Forma Effect to the purchase of such Notes, the Borrower be in compliance with the requirements of Section 6.8(b) as of the date of issuance of such Notes and after giving Pro Forma Effect to the purchase of such Notes;
(iii)Purchaser shall waive the condition in Section 3.2(a)(xiii) that, at least ten days prior to each Credit Date, the Purchasers shall have received all documentation and other information required by bank regulatory authorities under applicable “know-your-customer” and anti-money laundering rules and regulations, including the PATRIOT Act and the Company agrees to deliver such information to the Purchaser no later the date that is ten days following the Initial Note Date; 
(iv)Purchaser shall waive the condition in Section 3.2(a)(xiv) that, at least five days prior to each Credit Date, the Note Parties shall deliver a Beneficial Ownership Certification in relation to such Note Party and the Company agrees to deliver such information to Purchaser no later than the date that is five days following the Initial Note Date; and
(v)Purchaser shall waive any violation of Section 6.8(b) through and including August 15, 2022.
Miscellaneous
As of the date hereof, there is no Collateral Agent under the Note Purchase Agreement.
This Waiver is a discretionary action by Purchaser and, except as expressly set forth herein, does not constitute, and shall not be deemed to be, a waiver of, any Event of Default that may exist or any future failure of any Note Party to fully comply with the Note Purchase Agreement and other Note Documents.  In addition, neither this discretionary action by Purchaser nor anything in this Waiver shall directly or indirectly: (i) constitute a Waiver to any future departure under the Note Purchase Agreement or create a course of dealing, (ii) constitute a Waiver to or waiver of any past, present or future Default or Event of Default or other violation of any provisions of the Note Purchase Agreement or any other Note Documents except as expressly set forth herein, (iii) except as expressly set forth herein, amend, modify or operate as a waiver of any provision of the Note Purchase Agreement or any other 
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Note Documents or any right, power, privilege or remedy of the Collateral Agent or Purchasers thereunder, or (iv) constitute a course of dealing or other basis for altering any rights or obligations of the Collateral Agent or Purchasers under the Note Documents or any Obligations of the Company or any other Note Party under the Note Purchase Agreement, other Note Documents or any other contract or instrument.
The Note Purchase Agreement and each other Note Document shall continue in full force and effect in accordance with its respective terms and is hereby ratified and confirmed in all respects, and the waivers set forth above are limited solely to the matters expressly stated above and shall not be deemed to be a waiver or amendment of, or a departure from, any other provision of the Note Purchase Agreement.
This Waiver shall be governed by, and construed in accordance with, the internal laws of the State of New York and all applicable federal laws of the United States of America.
This Waiver shall be binding upon and inure to the benefit of the parties hereto, their respective successors, successors-in-titles and assigns.  
This Waiver, and the terms and provisions hereof, constitute the entire agreement among the parties hereto pertaining to the subject matter hereof and supersede any and all prior or contemporaneous amendments relating to the subject matter hereof.  There are no oral agreements among the parties hereto pertaining to the subject matter hereof.  
This Waiver may be executed in any number of counterparts and by different parties hereto in separate counterparts; each counterpart so executed and delivered shall be deemed an original and all of which taken together shall constitute but one and the same instrument.  Delivery of an executed counterpart of this Waiver by electronic mail in pdf form shall be as effective as delivery of a manually executed counterpart hereof.
[Signatures follow]
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IN WITNESS WHEREOF, this Waiver has been duly executed as of the date first written above.

ACUITAS CAPITAL LLC, as Purchaser

By:     /s/ Terren S. Peizer                    
Name: Terren S. Peizer
Title:   Chairman

ONTRAK, INC., as the Company and as a Note Party 

By: __/s/ Brandon LaVerne_________________________
Name: Brandon LaVerne
Title:   Co-President and Chief Operating Officer

3Exhibit 10.2

 

AMENDMENT TO
EMPLOYMENT AGREEMENT

 

THIS AMENDMENT TO EMPLOYMENT AGREEMENT, made as of
the 15th day of July 2022, by and between PENNS WOODS BANCORP, INC. (“Penns Woods”), a Pennsylvania business corporation,
and RICHARD A. GRAFMYRE, and adult individual (“Executive”).

 

BACKGROUND

 

1. Penns Woods and Executive are presently parties
to an amended and restated employment agreement, dated as of March 9, 2021, as amended (the “Employment Agreement”).

 

2. Penns Woods and Executive desire to amend the
Employment Agreement in certain respects as set forth herein.

 

AGREEMENT:

 

NOW, THEREFORE, the parties hereto, intending to
be legally bound, agree as follows:

 

1. Amendment of Section 4(f) of the Employment
Agreement. Section 4(f) of the Employment Agreement is hereby amended and restated in its entirety to read as follows:

 

“(f)  Automobile.
Promptly upon Executive’s written request, Penns Woods shall provide Executive with a vehicle selected by Executive (which shall
be owned or leased by Penns Woods) for the Executive’s business and personal use. Penns Woods will cover all repairs and operating
expenses of said vehicle, including the cost of liability insurance, comprehensive and collision insurance. If use of an automobile has
been provided to Executive pursuant to this Section 4(f), then upon termination of Executive’s employment hereunder for any reason,
Executive shall either immediately return the vehicle to Penns Woods or purchase the vehicle (or assume the lease) in accordance with
the vehicle purchase policy of Penns Woods. Upon request by Penns Woods, Executive shall submit to Penns Woods on a timely basis documentation
which defines the percentage of Executive’s use of the vehicle which was for business purposes.”

 

2. Addition of New Section 4(h) to the Employment
Agreement. The Employment Agreement is hereby amended to add a new Section 4(h) to read in its entirety to read as follows:

 

“(h) Term of Stock Options. In
the event of a termination of employment for any reason (other than for Cause), the Company agrees to take such actions are
necessary to cause all of the Executive’s outstanding stock options as of the date of such termination of employment to
continue to be exercisable for the entire remaining term of each stock option.”

 

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3. Addition of New Section 4(i) to the Employment
Agreement. The Employment Agreement is hereby amended to add a new Section 4(i) to read in its entirety to read as follows:

 

“(i) Cellular Phone and Phone
Number. In the event that Executive’s employment with Penns Woods terminates for any reason, Executive shall be permitted to
retain the cellular telephone provided by the Company to Executive, including the cellular phone number. Expenses related to use of any
cellular telephone retained by Executive following a termination of employment shall be paid by Executive.

 

4. Amendment of Section 6(a) of the Employment
Agreement. Section 6(a) of the Employment Agreement is hereby amended and restated in its entirety to read as follows:

 

“(a) Benefits. In the event
that Executive’s employment is involuntarily terminated by Penns Woods during the Employment Period without Cause (other than by
reason of Section 3(d)) absent a Change in Control, Penns Woods shall continue to pay Executive’s then current annual base
salary under Section 4(a) for the greater of: (i) the number of full months remaining in the Employment Period as of the date
of termination of employment or (ii) six (6) months. With respect to clause (i) of this Section, a final pro-rated payment
shall be made for any fraction of a month remaining in the Employment Period as of the date of his termination of employment. In addition,
during the twenty four (24) month period following Executive’s termination of employment that is subject to this Section 6(a), Executive
shall be permitted to continue participation in, and Penns Woods shall maintain the same level of contribution for, Executive’s
participation in the medical/health insurance plan or program in effect with respect to Executive during the one (1) year period prior
to his termination of employment, or, if Penns Woods is not permitted to provide such benefits because Executive is no longer an employee
or as a result of any applicable legal requirement, Executive shall receive a dollar amount, on or within thirty (30) days following the
date of termination, equal to the cost to Executive of obtaining such benefits (or substantially similar benefits).”

 

5. Ratification of Agreement. Except as
otherwise provided in this Amendment to Employee Agreement, all terms and conditions of the Employment Agreement remain in full force
and effect, and nothing contained in this Amendment to Employment Agreement shall be deemed to alter or amend any provision of the Employment
Agreement except as specifically provided herein. References in the Employment Agreement to the “Agreement” shall be deemed
to be references to the Agreement as amended hereby.

 

6. Waiver. No provision of this
Amendment to Employment Agreement may be modified, waived, or discharged unless such waiver, modification, or discharge is agreed to
in writing and signed by Executive and Penns Woods. No waiver by any party hereto at any time of any breach by the other party
hereto of, or compliance with, any condition or provision of this Amendment to Employment Agreement to be performed by such other
party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time.

 

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7. Assignment. This Amendment to Employment
Agreement shall not be assignable by any party, except by Penns Woods to any affiliated company or to any successor in interest to its
businesses.

 

8. Entire Agreement. This Amendment to
Employment Agreement contains the entire agreement of the parties relating to the subject matter hereof.

 

9. Applicable Law. This Agreement shall
be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania, without regard to its conflict of laws principles.

 

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

 

	 	PENNS WOODS BANCORP, INC.

 

		By:	/s/ Christine
                                            M. Barto

	 	Name: Christine M. Barto
	 	Title: Senior Vice President/Chief Human Relations Officer

 

	 	(“Penns Woods”)

 

	 	/s/ Richard A. Grafmyre
	 	Richard A. Grafmyre

 

	 	(“Executive”)

 

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