SEPARATION AGREEMENT AND GENERAL RELEASE

This Separation Agreement and General Release (the "Agreement") is hereby
entered into by and between Gary W. MacLeod ("Employee") and Non Invasive
Monitoring Systems, Inc. its affiliates, directors, officers, employees and
agents (the "Company").  (Employee and the Company sometimes referred to
collectively as the "Parties");

WHEREAS, the Employee and the Company entered into an Employment Agreement dated
November 10, 2005 (“Employment Agreement”) which set forth that Employee shall
sign a General Release prior to receipt of benefits under ¶10 (b) of the
Employment Agreement;
WHEREAS, the parties agree that Employee’s employment was terminated without
cause pursuant to ¶10(b) of the Employment Agreement;

WHEREAS, the Employee remains employed with the Company until January 31, 2008;

WHEREAS, the Employee enters into this Agreement knowingly and voluntarily and
with a full understanding of its terms and has been given the opportunity to
consult advisors, legal and otherwise, of his own choosing and fully understands
the meaning and intent of this Agreement; and

WHEREAS, in exchange for the benefits set forth herein (including the Release by
the Company set forth herein), Employee desires and does release the Company,
its affiliates, directors, officers, employees and agents from any obligations
or liability in connection with his employment or the termination thereof;

 
 

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NOW, THEREFORE, in exchange for the consideration contained herein, which the
Parties hereto agree is sufficient, the Parties agree as follows:

1.    PAYMENT: In consideration for the execution by Employee of this Agreement
and in compliance with the promises made herein, the Company agrees to pay
Employee severance benefits in accordance ¶ 10 (b)(i - iv) of the Employment
Agreement, as modified herein. Employee represents that he has already received
severance benefits pursuant to ¶10(b)(i) and ¶10(b)(ii) of the Employment
Agreement and that the only benefits due and owing from the Company are those
set forth under ¶10(b)(iv)[stock options] (as modified hereby) of the Employment
Agreement (as the Company has no insurance plan there are no amounts owed under
¶10(b)(iii)). Employee agrees to forfeiture of sufficient options so that his
current options will convert into 550,000 shares upon cashless exercise pursuant
to the notice of cashless exercise of January 24, 2007. Employee agrees that all
other options to purchase stock in the Company , granted to him in connection
with his employment are hereby forfeited.

2.    NO OTHER PAYMENTS DUE AND OWING: Employee hereby acknowledges and agrees
that no other compensation, vacation, expense reimbursement or other payments or
benefits of any kind are due and owing to Employee from the Company other than
that which is set forth in ¶1 herein.

3.    RELEASE BY EMPLOYEE: Employee understands and agrees that the promises and
benefits set forth in ¶1, above, are in full settlement and satisfaction for the
full release and discharge of all actions, claims, grievances, complaints,
administrative claims and demands whatsoever that Employee had or now has or may
have against the Company, its affiliated companies, subsidiaries, predecessor
companies, officers, employees, shareholders, partners, directors, divisions and
agents, attorneys, contractors, consultants, successors and assigns
(collectively “the Releasees”) and Employee does hereby release, acquit,
satisfy, and forever discharge the Company and all Releasees from all manner of
actions, causes of action, suits, debts, sums of money, agreements, damages,
judgments, and claims and demands whatsoever, known or unknown, absolute or
contingent, in law or equity, that Employee ever had, or now has against the
Company and the Releasees, including, but not limited to, all matters arising
out of, or either directly or indirectly pertaining to Employee’s employment
with the Company and termination of employment at the Company including, without
limitation, all claims including those brought under the Age Discrimination in
Employment Act of 1967, as amended, 29 U.S.C. § 621, et seq. ("ADEA"), Title VII
of the Civil Rights Act of 1964, as amended, 42 U.S.C. §§ 2000e, et seq.,
("Title VII"), the Reconstruction Era Civil Rights Act, as amended, 42 U.S.C
§§1981, et seq. ("Civil Rights Act"), the Civil Rights Act of 1991, as amended,
42 U.S.C. §1981a, et seq. ("CRA of 1991"), the Americans with Disabilities Act,
42 U.S.C. §§ 12101, et seq. ("ADA"), the Family and Medical Leave Act, 29 U.S.C.
§§2601, et seq. ("FMLA"), the Fair Labor Standards Act, 29 U.S.C. §201, et seq.
("FLSA"), the Employee Retirement Income Security Act of 1974, as amended, 29
U.S.C §1001, et seq. ("ERISA"), the Equal Pay Act, 29 U.S.C. §201, et seq.,
(“EPA”), the Rehabilitation Act, 29 U.S.C. §§701, et seq. (“RA”),, Whistleblower
Protection Statutes, 10 U.S.C §2409, 12 U.S.C. § 1831j, 31 U.S.C. § 5328, 41
U.S.C. § 265, (collectively as “WPS”) and/or any and all other equivalent
federal, state, or local statutes, laws, rules and regulations limited to, any
claim of discrimination on the basis of race, sex, pregnancy, religion, marital
status, sexual orientation, national origin, handicap or disability, age,
veteran status, special disabled veteran status, or citizenship status or any
other category protected by law; any other claim based on a statutory
prohibition or requirement; any claim arising out of or related to an express or
implied employment contract, any other contract affecting terms and conditions
of employment, or a covenant of good faith and fair dealing; any tort claims,
claims for workers compensation, any personal gain with respect to any claim
arising under the qui tam provisions of the False Claims Act, 31 U.S.C. 3730 and
any claims to attorney fees or expenses.

 
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4.    RELEASE BY COMPANY. Company does hereby release, acquit, satisfy, and
forever discharge Employee from all manner of actions, causes of action, suits,
debts, sums of money, agreements, damages, judgments, and claims and demands
whatsoever, known or unknown, absolute or contingent, in law or equity (other
than for fraud, and other than those arising under this Agreement and the
surviving provisions of the Employment Agreement), that Company ever had, or now
has against the Employee, including, but not limited to, all matters arising out
of, or either directly or indirectly pertaining to Employee’s employment with
the Company and termination of employment at the Company. The Company has no
current actual knowledge of any fraud engaged in by Employee (such knowledge of
the Company being based solely on the actual knowledge of Dr. Sackner).

5.    NO ADMISSION OF LIABILITY: Employee further understands and agrees that
the consideration provided to Employee under the terms of this Agreement does
not constitute an admission by the Company or Releasees that they have violated
any such law or legal obligation, as to which the Company and Releasees
expressly deny any such liability or violation, including any and all claims for
costs; fees and other expenses, including attorney’s fees.

6.    NO REEMPLOYMENT AND RESIGNATION AS DIRECTOR. Employee further acknowledges
and agrees that he will not apply for a job with the Company or the other
Releasees at any time in the future and hereby waives any right that may accrue
to him from any rejection of any such application for employment therefrom that
he makes notwithstanding this provision. This Agreement shall constitute good
and sufficient cause to reject any application Employee may make for employment
with the Company or the other Releasees notwithstanding this Agreement. Employee
will deliver to the Company a letter of resignation as a director of the Company
and each of its subsidiaries upon execution of this Agreement.

 
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7.    REPURCHASE OF EQUIPMENT. Upon execution of this Agreement, Employee will
repurchase the following equipment from the Company for $11,650, which equipment
was previously sold by him to the Company for $11,650.

Qty
 
Item
 
Date Purchased
 
Cost
                        
2
   
Dark Oak Desk
   
3/31/2007
 
$
2,100.00
 
1
   
Oval Conference Table
   
3/31/2007
 
$
1,000.00
 
7
   
Swivel Chairs
   
3/31/2007
 
$
700.00
 
4
   
Displays -Mkt
   
3/31/2007
 
$
1,400.00
 
1
   
Black Metal Filing Cab.
   
3/31/2007
 
$
150.00
 
4
   
CPU's
   
3/31/2007
 
$
1,500.00
 
4
   
Monitors
   
3/31/2007
 
$
1,800.00
 
4
   
HP Printers
   
3/31/2007
 
$
400.00
 
1
   
Fax/Scanner/Copier
   
3/31/2007
 
$
100.00
 
1
   
Laser Printer Color
   
3/31/2007
 
$
1,100.00
 
1
   
Phone System
   
3/31/2007
 
$
1,400.00
             
 
 
$
11,650.00
 

Transport of the equipment (including without limitation all shipping costs and
expenses) from the Company’s offices to Employee’s destination shall be the sole
responsibility of Employee. Employee shall transport such equipment within ten
days of the execution of this Agreement. In addition, Employee represents and
warrants that the foregoing equipment is the only equipment he has ever sold to
the Company.

 
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7.    NO OTHER CLAIMS: Employee represents that he has not filed any complaint
or charges, either formal or informal, against the Company with any local, state
or federal agency or court relating to his employment; that he will not do so at
any time thereafter; and that, if any such agency or court assumes jurisdiction
of any such complaint or charge against the Company on behalf of the Employee,
Employee will direct that agency or court to withdraw from the matter. Employee
will not voluntarily seek to cooperate nor participate in the investigation or
prosecution of any action against the Company.

8.    SURVIVAL OF TERMS:  Employee understands that pursuant to ¶12(h) of the
Employment Agreement, that the following provisions shall continue and survive
Employee’s termination of employment and are specifically incorporated herein:
Confidentiality, Disclosure of Information and Inventories (¶4), Non
Solicitation (¶5), Non Competition (¶6) and Non Disparagement (¶7).

9.    CONFIDENTIALITY: Employee understands and agrees that all discussions,
negotiations, proposals, correspondence and/or agreements by and between the
Parties shall not be revealed by Employee to any third-party, including, but not
limited to any firm, corporation, association, partnership, governmental agency,
members of the press and media, present and former officers, and any other
members of the public, including, but not limited to, current, former or future
employees, agents, or representatives of the Company. This confidentiality
requirement shall not, however, preclude Employee from disclosing the existence
or terms of the Agreement to his spouse or immediate family members; nor shall
it preclude Employee from disclosing the existence or terms of the Agreement to
his accountants, financial advisors and/or attorneys (as to whom the Employee
shall relay the instant confidentiality requirement), or in compliance with a
subsequent subpoena or to any governmental authorities which require such
information.

 
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10.    BREACH BY EMPLOYEE: The Company’s obligations to the Employee after the
Effective Date are contingent on Employee’s obligations under this Agreement.
Any material breach of this Agreement by the Employee will result in the
immediate cancellation of the Company’s obligations under this Agreement and of
any benefits that have been granted to the Employee by the terms of this
Agreement or ¶10(b) of the Employment Agreement, except to the extent that such
cancellation is prohibited by law or would result in the invalidation of the
foregoing release.
 
11.    CHOICE OF LAW: This Agreement shall in all respects be interpreted,
enforced, and governed under the substantive and procedural laws of the State of
Florida. The language of all parts of this Agreement shall in all cases be
construed as a whole, according to its fair meaning and not strictly for or
against either of the parties.

12.    SEVERABILITY: Should any of the provisions of this Agreement be declared
or be determined by any court of competent jurisdiction to be illegal, invalid
or unenforceable, the legality, validity and enforceability of the remaining
parts, terms or provisions shall not be affected thereby and said illegal,
unenforceable or invalid part, term or provision shall be deemed not to be part
of this Agreement.

 
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13.    EXECUTION IN COUNTERPARTS: This Agreement may be executed simultaneously
in two or more counterparts, each of which shall be deemed an original, but all
of which together shall constitute one and the same instrument.
 
14.    ENTIRE AGREEMENT: This Agreement constitutes the entire agreement between
the parties pertaining to the subject matter of Employee’s separation from the
Company. No changes, additions or modifications to this Agreement shall be valid
unless set forth in writing and signed by each of the parties.

15.    REVIEW PERIOD: Employee also hereby acknowledges and agrees that,
pursuant to the Older Workers Benefits Protection Act, he has been offered at
least twenty-one (21) days to consider all the terms and conditions of this
Agreement, including for the purpose of consulting with an attorney. The Company
acknowledges that this Agreement may be revoked by Employee within seven (7)
days after this Agreement is signed by Employee and that such revocation is
effective upon receipt of

written notice to:
Marvin A. Sackner, M.D. Honorary M.D. University of Zurich

Chief Executive Officer & Chairman of the Board NIMS, Inc.
IVAX Building
4400 Biscayne Boulevard, 6th Floor
Miami, Florida 33137

a copy to:
William P. Oberdorf, Esq.

LeClairRyan
2 Penn Plaza East  
Newark, New Jersey 07105

This Agreement shall not become effective or enforceable until the seven day
revocation period has expired (the "Effective Date", i.e. seven days after this
Agreement has been signed by Employee) and no payments will be made hereunder
until such revocation period has expired. Any payments made to Employee shall be
returned upon revocation.
 
 
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16.    BY SIGNING THIS SEPARATION AGREEMENT AND GENERAL RELEASE, EMPLOYEE
AFFIRMS: 
 
HE HAS READ IT; 

HE UNDERSTANDS IT, AND KNOWS THAT HE IS GIVING UP IMPORTANT RIGHTS;

HE AGREES WITH EVERYTHING IN IT;

HE HAS BEEN ADVISED TO CONSULT WITH HIS ATTORNEY PRIOR TO EXECUTING THIS
SEPARATION AGREEMENT AND GENERAL RELEASE ;

HE HAS SIGNED THIS SEPARATION AGREEMENT AND GENERAL RELEASE KNOWINGLY AND
VOLUNTARILY.

 
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IN WITNESS WHEREOF, this Agreement is executed this 22nd day of February, 2008.
 

  Gary W. MacLeod       /s/ Gary W. MacLeod  

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              Non Invasive Monitoring Systems, Inc.  
   
   
  Dated: By:       Name:

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  Title:  

STATE OF Florida )     ) COUNTY OF Sarasota )

 
The foregoing instrument was acknowledged before me in Sarasota County, Florida,
this 22nd day of February, 2008, by Gary W. MacLeod, who is personally known to
me or who has produced a Florida driver's license (number # M 243 299-63-190-0)
as identification and who did take oral oath.
 

  Notary Public: /s/ Lorene Cleary  
   
 

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    State of Florida at Large
SEAL
    Print Name:

My Commission Expires: Lorene Cleary

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05/10/2010    

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Dated: 2/22/08
 
 
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IN WITNESS WHEREOF, this Agreement is executed this 26th day of February, 2008.
 

  Gary W. MacLeod          

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              Non Invasive Monitoring Systems, Inc.  
   
   
  Dated: 02/26/2008 By:   /s/ Marvin A Sackner, M.D.   Name:

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Marvin A Sackner, M.D.   Title: COB & CEO

STATE OF Florida )     ) COUNTY OF Miami-Dade )

 
The foregoing instrument was acknowledged before me this 26th day of February,
2008, by M. Sackner, M.D., as officer of Non-Invasive Monitoring Systems, Inc.
who is personally known to me or who has produced a _______________ driver's
license (number ___________________) as identification and who did take oral
oath.
 

  Notary Public: /s/ Marco A. Lopez  
   
 

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    State of Florida
SEAL
    Print Name:

My Commission Expires: Marco A. Lopez

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03/30/2011    

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Dated: 2/26/08
 
 
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