Document:

Form of Registration Rights Agreement

 Exhibit 10.23 
  
 REGISTRATION RIGHTS AGREEMENT 

 TABLE OF CONTENTS 
  

							
	 	 	 	  	 	  	Page

			
	ARTICLE I	  	DEFINITIONS	  	1
				
	 	 	Section 1.1	  	Definitions	  	1
			
	ARTICLE II	  	REGISTRATION RIGHTS	  	3
				
	 	 	Section 2.1	  	Shelf Registration	  	3
				
	 	 	Section 2.2	  	Demand Registration	  	4
				
	 	 	Section 2.3	  	Piggy-Back Registration	  	5
				
	 	 	Section 2.4	  	Registration Procedures; Filings; Information	  	6
				
	 	 	Section 2.5	  	Registration Expenses	  	9
				
	 	 	Section 2.6	  	Indemnification by the Company	  	10
				
	 	 	Section 2.7	  	Indemnification By Holders Of Registrable Securities	  	10
				
	 	 	Section 2.8	  	Conduct Of Indemnification Proceedings	  	11
				
	 	 	Section 2.9	  	Contribution	  	12
				
	 	 	Section 2.10	  	Participation In Underwritten Registrations	  	12
				
	 	 	Section 2.11	  	Rule 144	  	13
				
	 	 	Section 2.12	  	Holdback Agreements	  	13
			
	ARTICLE III	  	MISCELLANEOUS	  	14
				
	 	 	Section 3.1	  	Remedies	  	14
				
	 	 	Section 3.2	  	Amendments And Waivers	  	14
				
	 	 	Section 3.3	  	Notices	  	15
				
	 	 	Section 3.4	  	Successors And Assigns	  	15
				
	 	 	Section 3.5	  	Counterparts	  	15
				
	 	 	Section 3.6	  	Governing Law	  	15
				
	 	 	Section 3.7	  	Severability	  	15
				
	 	 	Section 3.8	  	Entire Agreement	  	15
				
	 	 	Section 3.9	  	Headings	  	16
				
	 	 	Section 3.10	  	No Third Party Beneficiaries	  	16

  

 i 

 REGISTRATION RIGHTS AGREEMENT 
  
 THIS REGISTRATION RIGHTS AGREEMENT, dated as of
                    , 2004 (this “Agreement”), is entered into by and between Capital Lodging, a Maryland real estate investment
trust (the “Company”), and holders of restricted shares of the Company’s common stock whose names are set forth on the signature pages hereto (each a “Restricted Stock Holder” and collectively, the “Restricted Stock
Holders”). 
  
 This Agreement is made in connection with (1)
the contribution agreement (the “Contribution Agreement”) dated as of                     , 2004, among the Company, Capital
Lodging, L.P., a Delaware limited partnership (the “Operating Partnership”), AP/APH Ventures, LLC, a Delaware limited liability company (“Ventures”) and certain affiliates of Ventures and (2) the initial public offering of shares
of the Company’s common shares of beneficial interests, par value $0.001 per share (the “Common Shares”), the Company, the Operating Partnership and the Restricted Stock Holders will engage in certain formation transactions (the
“Formation Transactions”) whereby the Restricted Stock Holders will contribute to the Operating Partnership (or affiliates thereof) their respective interests in certain hotel properties and other assets (the “Initial Contributed
Assets”) in exchange for Common Shares. 
  
 NOW, THEREFORE,
in consideration of the premises and the mutual agreements herein contained, and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
  
 ARTICLE I 
 DEFINITIONS 
  
 Section 1.1 Definitions. In addition to the definitions set forth above, the following terms, as used herein, have the following meanings: 
  
 “Affiliate” of any Person means any other Person directly or indirectly controlling or controlled by or under
common control with such Person. For the purposes of this definition, “control” when used with respect to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management and
policies of such Person, whether through the ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing. 
  
 “Agreement” means this Registration Rights Agreement, as it may be
amended, supplemented or restated from time to time. 
  
 “Business Day” means any day, other than a Saturday or Sunday, that is neither a legal holiday nor a day on which banking institutions in Dallas, Texas are authorized or required by law, regulation or executive order to close.

  
 “Commission” means the Securities and Exchange
Commission. 

 “Declaration of Trust” means the Declaration of Trust of the Company as filed with the
Secretary of State of the State of Maryland on April 5, 2004, as the same may be amended, modified or restated from time to time. 
  
 “Demand Registration” means a Demand Registration as defined in Section 2.2. 
  
 “Exchange Act” means the Securities Exchange Act of 1934, as
amended and the rules and regulations promulgated thereunder. 
  
 “Holder” means any Initial Holder who is the record or beneficial owner of any Registrable Security or any assignee or transferee of such Registrable Security (including assignments or transfers of Registrable Securities to such
assignees or transferees as a result of the foreclosure on any loans secured by such Registrable Securities) to the extent such assignee or transferee agrees in writing to be bound by all the provisions hereof, unless such Registrable Security is
acquired in a public distribution pursuant to a registration statement under the Securities Act or pursuant to transactions exempt from registration under the Securities Act where securities sold in such transaction may be resold without subsequent
registration under the Securities Act. 
  
 “Immediate
Family” of any individual means such individual’s estate and heirs or current spouse, or former spouse, parents, parents-in-law, children (whether natural or adoptive or by marriage), siblings and grandchildren and any trust or estate, all
of the beneficiaries of which consist of such individual or any of the foregoing. 
  
 “Initial Holder” means (i) any Restricted Stock Holder and any Affiliate thereof, (ii) any partner, member or stockholder of any Restricted Stock Holder, (iii) any Affiliate of any such partner, member or
stockholder, and (iv) the Immediate Family of any of the foregoing. 
  
 “Initial Public Offering” means the offering of the Company’s Common Shares pursuant to the Form S-11 Registration Statement (No. 333-114602) filed by the Company with the Commission under the Securities Act. 
  
 “Ownership Limit Provisions” mean the various provisions of the
Company’s Declaration of Trust set forth in Article VII thereof restricting the ownership of Common Shares by Persons to specified percentages of the outstanding Common Shares. 
  
 “Person” means an individual or a corporation, partnership, limited liability company, association, trust, or any
other entity or organization, including a government or political subdivision or an agency or instrumentality thereof. 
  
 “Piggy-Back Registration” means a Piggy-Back Registration as defined in Section 2.3. 
  

 2 

 “Registrable Securities” means Common Shares of the Company at any time owned, either of record
or beneficially, by any Holder and issued either in connection with the Formation Transactions and any additional Common Shares issued as a dividend, distribution or exchange for, or in respect of such shares until: 
  
 (i) a registration statement covering such shares has been
declared effective by the Commission and such shares have been disposed of pursuant to such effective registration statement; 
  
 (ii) such shares are sold under circumstances in which all of the applicable conditions of Rule 144 (or any similar provisions then in
force) under the Securities Act are met or under which such shares may be sold pursuant to Rule 144(k); 
  
 (iii) all of such shares held by such Person may be sold pursuant to Rule 144 under the Securities Act and could be sold in one
transaction in accordance with the volume limitations contained in Rule 144(e)(1)(i) under the Securities Act; or 
  
 (iv) such shares have been otherwise transferred in a transaction that would constitute a sale thereof under the Securities Act, the
Company has delivered a new certificate or other evidence of ownership for such shares not bearing the Securities Act restricted stock legend and such shares may be resold without subsequent registration under the Securities Act; 
  
 provided, however, that “Registrable Securities” for purposes of the
indemnification obligations contained in Section 2.6 and Section 2.7 shall mean all shares that are registered on the applicable Shelf Registration, Demand Registration or Piggy-Back Registration, notwithstanding that such shares may
not otherwise be “Registrable Securities” by operation of clause (iii) above. 
  
 “Securities Act” means the Securities Act of 1933, as amended and the rules and regulations promulgated thereunder. 
  
 “Selling Holder” means a Holder who is selling Registrable Securities pursuant to a registration statement filed pursuant to this Agreement
under the Securities Act. 
  
 “Shelf Registration
Statement” has the meaning set forth in Section 2.1. 
  
 “Underwriter” means a securities dealer who purchases any Registrable Securities as principal and not as part of such dealer’s market-making activities. 
  
 ARTICLE II 
 REGISTRATION RIGHTS 
  
 Section 2.1
Shelf Registration. As soon as reasonably practicable after (i) the one year anniversary of the consummation date of the Initial Public Offering, or (ii) such later date on which the Company is then eligible to use Form S-3 under the
Securities Act, and, provided that the Company is then eligible to use Form S-3 under the Securities Act, the Company shall prepare and file a “shelf” registration statement with respect to the resale of the Common Shares issued to the
Restricted Stock Holders in connection with the Formation Transactions and the resale of any other Registrable Securities on an appropriate form for an offering to be made on a continuous basis pursuant to Rule 415 under the Securities Act (the
“Shelf Registration Statement”) and shall use its best efforts to cause the Shelf Registration Statement to be declared effective on or as soon as practicable thereafter but in any event within ninety (90) days of the first filing thereof,
and to keep such Shelf Registration Statement continuously effective for a 
  

 3 

 period ending when all shares of Common Stock covered by the Shelf Registration Statement are no longer Registrable
Securities. In the event that the Company fails to file such Shelf Registration Statement within thirty (30) days following the first anniversary of the consummation of the Initial Public Offering, or if filed fails to cause the Shelf Registration
Statement to be declared effective or to maintain the effectiveness of, such Shelf Registration Statement, Holders of Registrable Securities may make a written request for the Demand Registration (as defined below) pursuant to Section 2.2
herein or participate in a Piggy Back Registration (as defined below) pursuant to Section 2.3 herein; provided, that, if and so long as a Shelf Registration Statement is on file and effective (and Selling Holders are not
otherwise restricted from selling Registrable Securities pursuant thereto), then the Company shall have no obligation to effect the Demand Registration or allow participation in a Piggy Back Registration. 
  
 Section 2.2 Demand Registration. 
  
 (a) Request for Registration. Subject to Section
2.1 hereof, commencing on or after the date which is one year after the consummation date of the Initial Public Offering, one or more Holders of Registrable Securities may make a written request for registration under the Securities Act of all
or part of its or their Registrable Securities and the Company shall use commercially reasonable efforts to file with the Commission a Registration Statement (a “Demand Registration Statement”) registering the resale of the Registrable
Securities that the Holders elect to include pursuant to this Section 2.2(a) (the “Demand Registration”) within thirty (30) days following receipt of a demand pursuant to this Section 2.2(a) and to cause such Demand
Registration Statement to be declared effective within seventy-five (75) days of filing with the Commission; provided, that, the Company shall not be obligated to effect more than one Demand Registration in total; and provided,
further, that the Holders making such written request shall propose the sale of at least [            ] shares of Registrable Securities (such number to be adjusted
successively in the event the Company effects any stock split, stock consideration or recapitalization after the date hereof). Such request will specify the number of shares of Registrable Securities proposed to be sold and will also specify the
intended method of disposition thereof. Within ten (10) days after receipt of such request, the Company will give written notice of such registration request to all other Holders of the Registrable Securities and include in such registration all
such Registrable Securities with respect to which the Company has received written requests for inclusion therein within twenty (20) Business Days after the receipt by the applicable Holder of the Company’s notice. Such request will also
specify the number of shares of Registrable Securities to be registered and the intended method of disposition thereof. Unless the Holder or Holders of a majority of the Registrable Securities to be registered in the Demand Registration shall
consent in writing, no other party, including the Company (but excluding another Holder of a Registrable Security), shall be permitted to offer securities under the Demand Registration; provided, that, if such Demand Registration shall
be an underwritten offering and the managing Underwriter delivers a written opinion to the Company and the Holders of Registrable Securities included in such offering that the size of the offering that the Holders, the Company and such other persons
intend to make is such that the success of the offering would be materially and adversely affected (including, without limitation, the price per share) by the inclusion of the Registrable Securities requested to be included, then the managing
Underwriter(s) may exclude Common Shares (including Registrable Securities) from the registration and the underwriting, and the number of Common Shares that may be included in the registration and the underwriting shall be allocated, first,
to each of the Holders 
  

 4 

 requesting inclusion of their Registrable Securities in such registration statement on a pro
rata basis based on the total number of Registrable Securities then held by each such Holder, and second, to the Company and such other holders of Common Shares that are proposed to be included in such registration on a pro
rata basis based on the total number of Common Shares that are proposed to be included in such registration. The effectiveness of the Demand Registration shall be maintained by the Company for a period of not less than one hundred eighty
(180) days. 
  
 (b) Revocation of Demand.
Any Holder whose Registrable Securities were to be included in the Demand Registration, by written notice to the Company, may withdraw such request and, if upon receipt of such notice of the withdrawal of such request the Holders that have not
elected to withdraw do not hold, in the aggregate, the requisite number of Registrable Securities to initiate a request under Section 2.2(a), then the Company shall not effect such registration and such registration shall not be deemed
effected for purposes of Section 2.2(a). 
  
 (c) Selling Holders Become Party to Agreement. Each Holder acknowledges that by asserting or participating in its registration rights pursuant to this Article II, he or she may become a Selling Holder and thereby will be
deemed a party to this Agreement and will be bound by each of its terms. 
  
 (d) Underwritten Offerings. If the Holders of a majority of shares of the Registrable Securities to be registered in the Demand Registration so elect by written notice to the Company, the offering of such
Registrable Securities pursuant to the Demand Registration shall be in the form of an underwritten offering. The Holders of a majority of the shares of Registrable Securities to be registered in the Demand Registration shall select the book-running
managing Underwriter in connection with the Demand Registration; provided, that, such managing Underwriter must be reasonably satisfactory to the Company. The Company may select any additional investment banks and managers to be used
in connection with the offering; provided, however, that such additional investment banks and managers must be reasonably satisfactory to the Selling Holders of a majority of the Registrable Securities proposed to be included in the
Demand Registration. The Holders of a majority of the Registrable Securities to be registered in an underwritten Demand Registration shall be permitted to attend any and all meetings with the Underwriters regarding such underwritten Demand
Registration through one or more designated representatives. 
  
 (e) Effective Demand Registration. The Demand Registration pursuant to this Agreement shall not be deemed to have been effected unless a registration statement with respect thereto has been declared effective
by the Commission and remains effective and in compliance with the provisions of the Securities Act and the laws of any state or other jurisdiction applicable to the disposition of all Registrable Securities covered by such registration statement
until such time as all of such Registrable Securities have been disposed of in accordance with such registration statement. 
  
 Section 2.3 Piggy-Back Registration. 
  
 (a) Subject to Section 2.1 hereof, if the Company proposes to file a registration statement under the Securities Act with respect
to an equity offering by the Company 
  

 5 

 for its own account or for the account of any of its respective securityholders of any class of security
(other than a registration statement on Form S-4 or S-8 (or any substitute form that may be adopted by the Commission) or filed in connection with an exchange offer or offering of securities solely to the Company’s existing securityholders),
then the Company shall give written notice of such proposed filing to the Holders of Registrable Securities as soon as practicable (but in no event less than twenty (20) days before the anticipated filing date), and such notice shall offer such
Holders the opportunity to register such number of shares of Registrable Securities as each such Holder may request (a “Piggy-Back Registration”). The Company shall use commercially reasonable efforts to cause the managing Underwriter or
Underwriters of a proposed underwritten offering to permit the Registrable Securities requested to be included in a Piggy-Back Registration to be included on the same terms and conditions as any similar securities of the Company included therein.

  
 (b) Right To Terminate Registration.
Notwithstanding any other provision of this Agreement, the Company shall have the right to terminate or withdraw any registration initiated by it under this Section 2.3, at any time, whether or not any Holder has elected to include
Registrable Securities in such registration. 
  
 (c) Underwriting. If a registration statement under which the Company gives notice under this Section 2.3 is for an underwritten offering, then the Company shall so advise the Holders of Registrable Securities. In such event,
the right of any such Holder to include Registrable Securities in a registration pursuant to this Section 2.3 shall be conditioned upon such Holder’s participation in such underwriting and the inclusion of such Holder’s Registrable
Securities in the underwriting to the extent provided herein. All Holders proposing to distribute their Registrable Securities through such underwriting shall enter into an underwriting agreement in customary form with the managing Underwriter(s)
selected for such underwriting. Notwithstanding any other provision of this Agreement, if the managing Underwriter(s) delivers a written opinion to the Company and the Holders of Registrable Securities included in such offering that the size of the
offering that the Holders, the Company and such other persons intend to make is such that the success of the offering would be materially and adversely affected (including, without limitation, the price per share) by the inclusion of the Registrable
Securities requested to be included, then the managing Underwriter(s) may exclude Common Shares (including Registrable Securities) from the registration and the underwriting, and the number of Common Shares that may be included in the registration
and the underwriting shall be allocated, first, to the Company, second, to each of the Holders requesting inclusion of their Registrable Securities in such registration statement on a pro rata basis based on the total
number of Registrable Securities then held by each such Holder, and third, to each other holder of Common Shares that are proposed to be included in such registration (other than those Common Shares to be issued by the Company or Registrable
Securities); provided, however, that, if the Company previously has completed two (2) registered public offerings for the primary issuance of Common Shares, then in the event a limitation on the number of Common Shares is requested,
the Company’s first allocation shall be limited to that number of Common Shares with an aggregate public offering price of $     million. If any Holder disapproves of the terms of any such underwriting, such Holder
may elect to withdraw therefrom by written notice to the Company and the managing Underwriter, delivered at least ten (10) Business Days prior to the effective date of the registration statement. Upon receipt of such notice, the applicable
Registrable Securities shall be excluded and withdrawn from the registration. For any Holder 
  

 6 

 that is a partnership or corporation, the partners, retired partners and shareholders of such Holder, or
the estates and family members of any such partners and retired partners and any trust for the benefit of any of the foregoing persons shall be deemed to be a single “Holder,” and any pro rata reduction with respect to such
“Holder” shall be based upon the aggregate amount of Registrable Securities carrying registration rights owned by all entities and individuals included in such “Holder,” as defined in this sentence. 
  
 Section 2.4 Registration Procedures; Filings; Information. In
connection with any Shelf Registration Statement under Section 2.1 or the Demand Registration pursuant to Section 2.2 hereof, the Company will use its best efforts to effect the registration and the sale of such Registrable Securities
in accordance with the intended method of disposition thereof as quickly as practicable, and in connection with any such request: 
  
 (a) The Company will, prior to filing a registration statement or prospectus or any amendment or supplement thereto, furnish to each
Selling Holder and each Underwriter, if any, of the Registrable Securities covered by such registration statement copies of such registration statement as proposed to be filed, and thereafter furnish to such Selling Holder and Underwriter, if any,
such number of conformed copies of such registration statement, each amendment and supplement thereto (in each case including all exhibits thereto and documents incorporated by reference therein), the prospectus included in such registration
statement (including each preliminary prospectus) and such other documents as such Selling Holder or Underwriter may reasonably request to facilitate the disposition of the Registrable Securities owned by such Selling Holder. 
  
 (b) The Company will use its best efforts to (i) register or
qualify the Registrable Securities under such other securities or “blue sky” laws of such jurisdictions in the United States (where an exemption does not apply) as any Selling Holder or managing Underwriter or Underwriters, if any,
reasonably (in light of such Selling Holder’s intended plan of distribution) requests and (ii) cause such Registrable Securities to be registered with or approved by such other governmental agencies or authorities as may be necessary by virtue
of the business and operations of the Company and do any and all other acts and things that may be reasonably necessary or advisable to enable such Selling Holder to consummate the disposition of the Registrable Securities owned by such Selling
Holder; provided, that, the Company will not be required to (A) qualify generally to do business in any jurisdiction where it would not otherwise be required to qualify but for this paragraph (d), (B) subject itself to taxation in any
such jurisdiction, or (C) consent to general service of process in any such jurisdiction. 
  
 (c) After the filing of the registration statement, the Company will promptly notify each Selling Holder of Registrable Securities covered
by such registration statement of any stop order issued or threatened by the Commission or any suspension of the qualification (or exemption from qualification) of the Registrable Securities for sale in any jurisdiction and take all reasonable
actions required to prevent the entry of such stop order or such suspension of the qualification (or exemption from qualification) or to remove such stop order if entered or obtain the lifting of such suspension of the qualification (or exemption
from qualification). 
  
 (d) The Company will
immediately notify each Selling Holder of such Registrable Securities, at any time when a prospectus relating thereto is required to be delivered 
  

 7 

 under the Securities Act, of the occurrence of an event requiring the preparation of a supplement or
amendment to such prospectus so that, as thereafter delivered to the purchasers of such Registrable Securities, such prospectus will not contain an untrue statement of a material fact or omit to state any material fact required to be stated therein
or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading and promptly make available to each Selling Holder any such supplement or amendment. 
  
 (e) The Company will enter into customary agreements
(including an underwriting agreement, if any, containing such representations and warranties by the Company and such other terms as are generally prevailing in agreements of that type or may reasonably be requested by an Underwriter, including,
without limitation, indemnification and contribution to the effect and to the extent provided herein) and take such other actions as are reasonably required to expedite or facilitate the disposition of such Registrable Securities. 
  
 (f) The Company will make available for inspection by any
Selling Holder of such Registrable Securities, any Underwriter participating in any disposition pursuant to such registration statement and any attorney, accountant or other professional retained by any such Selling Holder or Underwriter
(collectively, the “Inspectors”), all financial and other records, pertinent corporate documents and properties of the Company (collectively, the “Records”) as shall be reasonably necessary to enable them to exercise their due
diligence responsibility, and cause the Company’s officers, directors and employees to supply all information reasonably requested by any Inspectors in connection with such registration statement. Records which the Company determines, in good
faith, to be confidential and which it notifies the Inspectors are confidential shall not be publicly disclosed by the Inspectors unless (i) the disclosure of such Records is necessary to avoid or correct a misstatement or omission in such
registration statement or (ii) the release of such Records is ordered pursuant to a subpoena or other order from a court of competent jurisdiction. Each Selling Holder of such Registrable Securities agrees that information obtained by it as a result
of such inspections shall be deemed confidential and shall not be used by it as the basis for any market transactions in the securities of the Company unless and until such information is made generally available to the public. Each Selling Holder
of such Registrable Securities further agrees that it will, upon learning that disclosure of such Records is sought in a court of competent jurisdiction, give notice to the Company and allow the Company, at its expense, to undertake appropriate
action to prevent disclosure of the Records deemed confidential. 
  
 (g) The Company will furnish to each Selling Holder and to each Underwriter, if any, a signed counterpart, addressed to such Selling Holder or Underwriter, of (i) an opinion or opinions of counsel to the Company and
(ii) a comfort letter or comfort letters from the Company’s independent public accountants, each in customary form and covering such matters of the type customarily covered by opinions or comfort letters, as the case may be, as the Holders of a
majority of the Registrable Securities included in such offering or the managing Underwriter or Underwriters therefor reasonably requests. 
  
 (h) The Company will otherwise comply with all applicable rules and regulations of the Commission, and make available to its
securityholders, as soon as reasonably practicable, an earnings statement covering a period of 12 months, beginning within three months after the effective date of the registration statement, which earnings statement shall 
  

 8 

 satisfy the provisions of Section 11(a) of the Securities Act and Rule 158 of the Commission promulgated
thereunder (or any successor rule or regulation hereafter adopted by the Commission). 
  
 (i) The Company will use its commercially reasonable efforts to cause all such Registrable Securities to be listed on each securities
exchange on which similar securities issued by the Company are then listed. 
  
 (j) The Company will provide a CUSIP number for all Registrable Securities, not later than the effective date of any registration statement filed pursuant to this Agreement. 
  
 (k) The Company will provide and cause to be maintained a
transfer agent for all Registrable Securities covered by any registration statement filed pursuant to this Agreement from and after a date not later than the effective date of such registration statement. 
  
 (l) In connection with an underwritten offering,
participate, to the extent reasonably requested by the managing Underwriter for the offering or the Selling Holders, in customary efforts to sell the securities under the offering, including, without limitation, participating in “road
shows.” 
  
 (m) Cooperate with the Selling
Holders and the managing Underwriters, if any, to facilitate the timely preparation and delivery of certificates representing Registrable Shares to be sold, which certificates shall not bear any restrictive legends. 
  
 (n) Cooperate with the Selling Holders and each Underwriter
participating in the disposition of such Registrable Shares and their respective counsel in connection with any filings required to be made with the NASD. 
  
 The Company may require each Selling Holder of Registrable Securities to promptly furnish in writing to the Company such information regarding such
Selling Holder, the Registrable Securities held by it and the intended method of distribution of the Registrable Securities as the Company may from time to time reasonably request and such other information as may be legally required in connection
with such registration. 
  
 Each Selling Holder agrees that, upon
receipt of any notice from the Company of the happening of any event of the kind described in Section 2.4(d) hereof, such Selling Holder will forthwith discontinue disposition of Registrable Securities pursuant to the registration statement
covering such Registrable Securities until such Selling Holder’s receipt of the copies of the supplemented or amended prospectus contemplated by Section 2.4(d) hereof, and, if so directed by the Company, such Selling Holder will deliver
to the Company all copies, other than permanent file copies then in such Selling Holder’s possession, of the most recent prospectus covering such Registrable Securities at the time of receipt of such notice. Each Selling Holder of Registrable
Securities agrees that it will immediately notify the Company at any time when a prospectus relating to the registration of such Registrable Securities is required to be delivered under the Securities Act of the happening of an event as a result of
which information previously furnished by such Selling Holder to the Company in writing expressly for inclusion in such prospectus contains an untrue statement of a material fact or omits to state any material fact required to be stated therein or
necessary to make the statements therein not misleading in light 
  

 9 

 of the circumstances in which they were made. In the event the Company shall give such notice, the Company shall extend
the period during which such registration statement shall be maintained effective by the number of days during the period from and including the date of the giving of notice pursuant to Section 2.4(d) hereof to the date when the Company shall
make available to the Selling Holders of Registrable Securities covered by such registration statement a prospectus supplemented or amended to conform with the requirements of Section 2.4(d) hereof. 
  
 Section 2.5 Registration Expenses. In connection with any
registration statement required to be filed hereunder, the Company shall pay the following registration expenses incurred in connection with the registration hereunder (the “Registration Expenses”): (i) all registration and filing fees,
(ii) fees and expenses of compliance with securities or blue sky laws (including reasonable fees and disbursements of counsel in connection with blue sky qualifications of the Registrable Securities), (iii) printing expenses (including, without
limitation, all salaries and expenses of its officers and employees performing legal or accounting duties), (iv) internal expenses (including, without limitation, all salaries and expenses of its officers and employees performing legal or accounting
duties), (v) the fees and expenses incurred in connection with the listing of the Registrable Securities, (vi) fees and disbursements of counsel for the Company and customary fees and expenses for independent certified public accountants retained by
the Company (including the expenses of any comfort letters or costs associated with the delivery by independent certified public accountants of a comfort letter or comfort letters requested pursuant to Section 2.4(g) hereof), and (vii) the
fees and expenses of any special experts retained by the Company in connection with such registration; provided, that, the Company shall not be required to pay expenses in excess of $100,000 in the aggregate in connection with any
underwritten registration, and the Selling Holders shall pay (or reimburse the Company for) any expenses in excess of such amount on a pro rata basis, based on the number of Registrable Securities proposed to be sold in such offering.
The Company shall have no obligation to pay any underwriting fees, discounts or commissions attributable to the sale of Registrable Securities, or any out-of-pocket expenses of the Holders (or the agents who manage their accounts) or any transfer
taxes relating to the registration or sale of Registrable Securities. 
  
 Section 2.6 Indemnification by the Company. The Company agrees to indemnify and hold harmless each Selling Holder of Registrable Securities, its officers, directors and agents, and each Person, if any, who controls such
Selling Holder within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act from and against any and all losses, claims, damages and liabilities caused by any untrue statement or alleged untrue statement of a material
fact contained in any registration statement or prospectus relating to the Registrable Securities (as amended or supplemented if the Company shall have furnished any amendments or supplements thereto) or any preliminary prospectus, or caused by any
omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, except insofar as such losses, claims,
damages or liabilities are caused by any such untrue statement or omission or alleged untrue statement or omission based upon information furnished in writing to the Company by such Selling Holder or on such Selling Holder’s behalf expressly
for inclusion therein. The Company also agrees to indemnify any Underwriters of the Registrable Securities, their officers and directors and each Person who controls such underwriters within the meaning of Section 15 of the Securities Act or Section
20 of the 
  

 10 

 Exchange Act on substantially the same basis as that of the indemnification of the Selling Holders provided in this
Section 2.6, provided, that, the foregoing indemnity with respect to any preliminary prospectus shall not inure to the benefit of any Underwriter of the Registrable Securities from whom the person asserting any such losses,
claims, damages or liabilities purchased the Registrable Securities which are the subject thereof if such person did not receive a copy of the prospectus (or the prospectus as supplemented) at or prior to the confirmation of the sale of such
Registrable Securities to such person in any case where such delivery is required by the Securities Act and the untrue statement or omission of a material fact contained in such preliminary prospectus was corrected in the prospectus (or the
prospectus as supplemented). The indemnity provided for in this Section 2.6 shall remain in full force and effect regardless of any investigation made by or on behalf of any Selling Holder. 
  
 Section 2.7 Indemnification By Holders Of Registrable
Securities. Each Selling Holder agrees, severally but not jointly, to indemnify and hold harmless the Company, its officers, directors and agents and each Person, if any, who controls the Company within the meaning of either Section 15 of
the Securities Act or Section 20 of the Exchange Act to the same extent as the foregoing indemnity from the Company to such Selling Holder, but only with respect to information relating to such Selling Holder furnished in writing by such Selling
Holder or on such Selling Holder’s behalf expressly for use in any registration statement or prospectus relating to the Registrable Securities, or any amendment or supplement thereto, or any preliminary prospectus. In case any action or
proceeding shall be brought against the Company or its officers, directors or agents or any such controlling person, in respect of which indemnity may be sought against such Selling Holder, such Selling Holder shall have the rights and duties given
to the Company, and the Company or its officers, directors or agents or such controlling person shall have the rights and duties given to such Selling Holder, by Section 2.6. The liability of any Selling Holder pursuant to this Section
2.7 may, in no event, exceed the net proceeds received by such Selling Holder from sales of Registrable Securities giving rise to the indemnification obligations of such Selling Holder. 
  
 Section 2.8 Conduct Of Indemnification Proceedings. In case any
proceeding, action or claim (“Proceeding”) (including any governmental investigation) shall be instituted involving any person in respect of which indemnity may be sought pursuant to Section 2.6 or Section 2.7, such person
(an “Indemnified Party”) shall promptly notify the person against whom such indemnity may be sought (an “Indemnifying Party”) in writing and the Indemnifying Party shall assume the defense thereof, including the employment of
counsel reasonably satisfactory to such Indemnified Party, and shall assume the payment of all fees and expenses. In any such Proceeding, any Indemnified Party shall have the right to retain its own counsel, but the fees and expenses of such counsel
shall be at the expense of such Indemnified Party unless (i) the Indemnifying Party and the Indemnified Party shall have mutually agreed to the retention of such counsel, (ii) the Indemnifying Party shall have failed to promptly assume the defense
of such Proceeding and to employ counsel reasonably satisfactory to the Indemnified Party in such Proceeding, or (iii) the named parties to any such Proceeding (including any impleaded parties) include both the Indemnified Party and the Indemnifying
Party and representation of both parties by the same counsel would be inappropriate due to actual or potential differing interests between them. It is understood that the Indemnifying Party shall not, in connection with any Proceeding, or related
Proceedings in the same jurisdiction, be liable for the reasonable fees and expenses of more than one separate firm of attorneys (in addition to any local counsel) at any time for all 
  

 11 

 such Indemnified Parties (unless in the reasonable judgment of the Indemnified Party a conflict of interest may exist
between such Indemnified Party and any other of such Indemnified Parties with respect to such Proceeding, in which event the Indemnifying Party shall be liable for the fees and expenses of such additional counsel or counsels), and that all such fees
and expenses shall be reimbursed as they are incurred. In the case of any such separate firm retained for the Indemnified Parties, such firm shall be designated in writing by (i) in the case of Persons indemnified pursuant to Section 2.6
hereof, the Selling Holders which owned a majority of the Registrable Securities sold under the applicable registration statement and (ii) in the case of Persons indemnified pursuant to Section 2.7, the Company. The Indemnifying Party shall
not be liable for any settlement of any Proceeding effected without its written consent, but if settled with such consent, or if there be a final judgment for the plaintiff, the Indemnifying Party shall indemnify and hold harmless such Indemnified
Parties from and against any loss or liability (to the extent stated above) by reason of such settlement or judgment. Notwithstanding the foregoing sentence, if at any time an Indemnified Party shall have requested an Indemnifying Party to reimburse
the Indemnified Party for fees and expenses of counsel as contemplated by the third sentence of this paragraph, the Indemnifying Party agrees that it shall be liable for any settlement of any Proceeding effected without its written consent if (i)
such settlement is entered into more than thirty (30) Business Days after receipt by such Indemnifying Party of the aforesaid request and (ii) such Indemnifying Party shall not have reimbursed the Indemnified Party in accordance with such request
prior to the date of such settlement. No Indemnifying Party shall, without the prior written consent of the Indemnified Party, effect any settlement of any pending or threatened Proceeding in respect of which any Indemnified Party is or could have
been a party and indemnity could have been sought hereunder by such Indemnified Party, unless such settlement includes an unconditional release of such Indemnified Party from all liability arising out of such Proceeding. 
  
 Section 2.9 Contribution. If the indemnification provided for
in Section 2.6 or Section 2.7 hereof is unavailable to an Indemnified Party or insufficient in respect of any losses, claims, damages or liabilities referred to herein, then each such Indemnifying Party, in lieu of indemnifying such
Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages or liabilities as between the Indemnifying Party on the one hand and the Indemnified Party on the other, in such
proportion as is appropriate to reflect the relative fault of the Indemnifying Party on the one hand and of the Indemnified Party on the other in connection with the statements or omissions which resulted in such losses, claims, damages or
liabilities, as well as any other relevant equitable considerations. The relative fault of the Indemnifying Party on the one hand and the Indemnified Party on the other shall be determined by reference to, among other things, whether the untrue or
alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by such party, and the parties’ relative intent, knowledge, access to information and opportunity to
correct or prevent such statement or omission. 
  
 The Company and
the Selling Holders agree that it would not be just and equitable if contribution pursuant to this Section 2.9 were determined by pro rata allocation or by any other method of allocation which does not take account of the
equitable considerations referred to in the immediately preceding paragraph. The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities referred to in the immediately preceding paragraph shall be
deemed to include, subject to the limitations set forth above, any legal or other 
  

 12 

 expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such Proceeding.
Notwithstanding the provisions of this Section 2.9, no Selling Holder shall be required to contribute any amount in excess of the amount by which the net proceeds from the sale of the Registrable Securities of such Selling Holder to the
public exceeds the amount of any damages which such Selling Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Selling Holders’ obligations to contribute pursuant to this Section 2.9 are
several in proportion to the net proceeds of the offering received by such Selling Holder bears to the total net proceeds of the offering received by all the Selling Holders and not joint. 
  
 Section 2.10 Participation In Underwritten Registrations. No
Person may participate in any underwritten registration hereunder unless such Person (a) agrees to sell such Person’s securities on the basis provided in any underwriting arrangements approved by the Persons entitled hereunder to approve such
arrangements and (b) completes and executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other documents reasonably required under the terms of such underwriting arrangements and these registration rights provided
for in this Article II. 
  
 Section 2.11 Rule
144. The Company covenants that it will file any reports required to be filed by it under the Securities Act and the Exchange Act and that it will take such further action as any Holder may reasonably request, all to the extent required from
time to time to enable Holders to sell Registrable Securities without registration under the Securities Act within the limitation of the exemptions provided by (a) Rule 144 under the Securities Act, as such rule may be amended from time to time, or
(b) any similar rule or regulation hereafter adopted by the Commission. Upon the request of any Holder, the Company will deliver to such Holder a written statement as to whether it has complied with such requirements. The Company will cooperate with
the Holders to enable them to sell Registrable Securities in block trades or other similar transactions, including furnishing to the Holders, at the sole cost and expense of the Company (i) an opinion or opinions of counsel to the Company, and (ii)
a comfort letter from the Company’s independent public accountants, as the Holders may reasonably request, and (iii) such reasonable representations, warranties, covenants and indemnities as are customary for such transactions. 
  
 Section 2.12 Holdback Agreements. 
  
 (a) Restrictions on Public Sale by Holder of Registrable
Securities. To the extent not inconsistent with applicable law and except with respect to a Shelf Registration, each Holder whose securities are included in a registration statement pursuant to this Agreement agrees not to effect any sale or
distribution of the issue being registered or a similar security of the Company, or any securities convertible into or exchangeable or exercisable for such securities, including a sale pursuant to Rule 144 under the Securities Act, during the 14
days prior to, and during the ninety (90)-day period beginning on, the effective date of such registration statement (except as part of such registration), if and to the extent requested in writing by the Company in the case of a non-underwritten
public offering or if and to the extent 
  

 13 

 requested in writing by the managing Underwriter or Underwriters in the case of an underwritten public
offering. 
  
 (b) Restrictions on Public Sale
by the Company and Others. The Company agrees that any agreement entered into after the date of this Agreement pursuant to which the Company issues or agrees to issue any privately placed securities shall contain a provision under which holders
of such securities agree not to effect any sale or distribution of any securities similar to those being registered in accordance with Section 2.2 or Section 2.3 hereof, or any securities convertible into or exchangeable or exercisable
for such securities, during the 14 days prior to, and during the 90-day period beginning on, the effective date of any registration statement (except as part of such registration statement where the Holders of a majority of the Registrable
Securities to be included in such registration statement consent or as part of registration statements filed as set forth in Section 2.3), if and to the extent requested in writing by the Company in the case of a non-underwritten public
offering or if and to the extent requested in writing by the managing Underwriter or Underwriters in the case of an underwritten public offering, in each case including a sale pursuant to Rule 144 under the Securities Act (except as part of any such
registration, if permitted); provided, however, that the provisions of this paragraph (b) shall not prevent the conversion or exchange of any securities pursuant to their terms into or for other securities. 
  
 (c) Temporary Suspension of Rights to Sell Based on
Confidential Information. If the Company determines in its good faith judgment that the filing of the Shelf Registration Statement under Section 2.1 or the Demand Registration under Section 2.2 hereof or the use of any related
prospectus would require the disclosure of material information that the Company has a bona fide business purpose for preserving as confidential or the disclosure of which would impede the Company’s ability to consummate a significant
transaction, and that the Company is not otherwise required by applicable securities laws or regulations to disclose at such time, upon written notice of such determination by the Company, the rights of the Holders to offer, sell or distribute any
Registrable Securities pursuant to the Shelf Registration Statement or the Demand Registration or to require the Company to take action with respect to the registration or sale of any Registrable Securities pursuant to the Shelf Registration
Statement or the Demand Registration shall be suspended until the date upon which the Company notifies the Holders in writing that suspension of such rights for the grounds set forth in this Section 2.12(c) is no longer necessary;
provided, that, the Company shall not be entitled to exercise the foregoing suspension of rights in excess of a total of one hundred eighty (180) days in any twelve (12)- month period. The Company agrees to give such notice as promptly
as practicable following the date that such suspension of rights is no longer necessary. Nothing in this Section 2.12(c) shall prevent a Holder from offering, selling or distributing pursuant to Rule 144 or any other applicable exemption from
the registration requirements of the Securities Act at any time. Any suspension of the Holders’ right to offer, sell or distribute Registrable Securities pursuant to this Section 2.12(c) shall result in the automatic increase of the
total number of days during which the applicable registration statement shall be required to be maintained effective by the Company hereunder. 
  
 (d) Temporary Suspension of Rights to Sell Based on Exchange Act Reports not yet Filed or Regulation S-X. If all reports required
to be filed by the Company pursuant to the Exchange Act have not been filed by the required date without regard to any extension, or if 
  

 14 

 
the consummation of any business combination by the Company has occurred or is probable for purposes of Rule 3-05 or Article 11 of Regulation S-X under the
Securities Act, upon written notice thereof by the Company to the Holders, the rights of the Holders to offer, sell or distribute any Registrable Securities pursuant to the Shelf Registration Statement or the Demand Registration or to require the
Company to take action with respect to the registration or sale of any Registrable Securities pursuant to the Shelf Registration Statement or the Demand Registration shall be suspended until the date on which the Company has filed such reports or
obtained and filed the financial information required by Rule 3-05 or Article 11 of Regulation S-X to be included or incorporated by reference, as applicable, in the Shelf Registration Statement, and the Company shall notify the Holders as promptly
as practicable when such suspension is no longer required. Nothing in this Section 2.12(d) shall prevent a Holder from offering, selling or distributing pursuant to Rule 144 or any other applicable exemption from the registration requirements
of the Securities Act at any time. 
  
 ARTICLE III

 MISCELLANEOUS 
  
 Section 3.1 Remedies. In addition to being entitled to exercise all rights provided herein and granted by law, including recovery of
damages, the Holders shall be entitled to specific performance of the rights under this Agreement. The Company agrees that monetary damages would not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of
this Agreement and hereby agrees to waive the defense in any action for specific performance that a remedy at law would be adequate. 
  
 Section 3.2 Amendments And Waivers. The provisions of this Agreement, including the provisions of this sentence, may not be amended,
modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given, in each case without the written consent of the Company and the Holders of a majority of the Registrable Securities. No failure or delay by
any party to insist upon the strict performance of any covenant, duty, agreement or condition of this Agreement or to exercise any right or remedy consequent upon any breach thereof shall constitute waiver of any such breach or any other covenant,
duty, agreement or condition. 
  
 Section 3.3
Notices. All notices and other communications in connection with this Agreement shall be made in writing by hand delivery, registered first-class mail, facsimile, or air courier guaranteeing overnight delivery to the address set forth on
the signature page hereto, or to such other address and to such other Persons as any party hereto may hereafter specify in writing. 
  
 All such notices and communications shall be deemed to have been duly given: at the time delivered by hand, if personally delivered; when received if
deposited in the mail, postage prepaid, if mailed; when receipt acknowledged, if sent via facsimile; and on the next business day, if timely delivered to an air courier guaranteeing overnight delivery. 
  
 Section 3.4 Successors And Assigns. Except as expressly
provided in this Agreement the rights and obligations of the Initial Holders under this Agreement shall not be assignable by 
  

 15 

 
any Initial Holder to any Person that is not an Initial Holder. This Agreement shall be binding upon the parties hereto and their respective successors and
assigns. 
  
 Section 3.5 Counterparts. This
Agreement may be executed in any number of counterparts and by the parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.
Each party shall become bound by this Agreement immediately upon affixing its signature hereto. 
  
 Section 3.6 Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State of
Maryland without regard to the choice of law provisions thereof. 
  
 Section 3.7 Severability. In the event that any one or more of the provisions contained herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable, the validity, legality and
enforceability of any such provision in every other respect and of the remaining provisions contained herein shall not be affected or impaired thereby. 
  
 Section 3.8 Entire Agreement. This Agreement is intended by the parties as a final expression of their agreement and intended to be a
complete and exclusive statement of the agreement and understanding of the parties hereto in respect of the subject matter contained herein. There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to
herein with respect to the registration rights granted by the Company with respect to the Registrable Securities. This Agreement supersedes all prior agreements and understandings between the parties with respect to such subject matter. 

 
 Section 3.9 Headings. The headings in this Agreement
are for convenience of reference only and shall not limit or otherwise affect the meaning hereof. 
  
 Section 3.10 No Third Party Beneficiaries. Nothing express or implied herein is intended or shall be construed to confer upon any
person or entity, other than the parties hereto and their respective successors and assigns, any rights, remedies or other benefits under or by reason of this Agreement. 
  
  

 16 

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

  

			
	 COMPANY:
  

CAPITAL LODGING

		
	 By:
	 	 
	 	 	

	
	 Address:
 2927 Maple Avenue, Suite 503
 Dallas, Texas 75201

	
	 RESTRICTED STOCKHOLDERS:
  
 [ENTITY]

		
	 By:
	 	[            ]
	 	 	its [            ]
		
	 By:
	 	 
	 	 	

	
	 Address:
 1201 Constellation Boulevard, #2900
 Los Angeles, California 90067

  

 [Signature Page to Registration Rights Agreement]Employment Agreement

 Exhibit 10.3 
  
 BIO-LOGIC SYSTEMS CORP. 
 EMPLOYMENT AGREEMENT 
  
 This Employment Agreement (the “Agreement”) between Bio-logic Systems Corp., a Delaware corporation (the “Company”) and Gabriel Raviv, Ph.D. (the “Executive”), is hereby effective March 1,
2004 (the “Effective Date”). 
  
 W I T N E S S
E T H: 
  
 WHEREAS, the Executive is employed as the
Chief Executive Officer of the Company; 
  
 WHEREAS, the
Executive has developed extensive experience with respect to the management and operations of the Company which is considered extremely valuable to the continued prosperity of the Company; and 
  
 WHEREAS, the Company and the Executive desire to set forth in this
Agreement, the terms, conditions and obligations of the parties with respect to such employment, and this Agreement is intended by the parties to and shall supersede all previous agreements and understandings, whether written or oral, concerning
such employment. 
  
 NOW, THEREFORE, for and in
consideration of the premises and mutual covenants contained herein and for good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 
  
 1. Employment. The Company shall continue to employ the
Executive upon the terms and conditions hereinafter set forth. The Executive shall perform such duties and responsibilities for the Company which are commensurate with his position, subject to the reasonable direction of the Board of Directors of
the Company (the “Board”). 
  
 2.
Term. The initial term of this Agreement shall be for a four (4) year period beginning on the Effective Date and ending on February 29, 2008 (the “Initial Term”). Thereafter, the Initial Term will automatically be
extended and renewed for successive 24-month periods (each, a “Renewal Term”), unless otherwise terminated pursuant to the terms of this Agreement. The Initial Term together with any Renewal Term, in whole or part, shall be
designated as the “Term.” 
  
 3.
Compensation. During the Term, the Executive shall be compensated for his services to the Company in accordance with the following: 
  
 (a) The Company will pay to the Executive an annual base salary of $300,000, payable in cash in substantially equal installments in
accordance with the payroll practices of the Company in effect from time to time. The Executive’s annual base salary shall be reviewed by the Company at least once in each fiscal year and increased in the sole discretion of the Board. The
annual base salary, as such base salary may be increased by the Board and as in effect from time to time, shall be referred to herein as the “Base Salary.” 
  
 (b) The Executive shall be entitled to participate in the Company’s bonus program based on the
Executive’s performance and the Company’s results during such 

 fiscal year, with any such bonus payable at such time following each fiscal year as shall be determined
by the Board in its discretion and based upon performance criteria determined each year by the Board in its sole discretion. 
  
 (c) The Executive shall be eligible to receive stock awards under the Company’s 1994 Stock Option Plan or such other stock plan or
equity incentive plan adopted by the Company and in effect from time to time. Any such stock awards shall be made at the discretion of the administrator of such stock plan and the awards shall be subject to the terms of the plan and the applicable
award agreement. 
  
 (d) The Executive shall be
provided, at the Company’s expense, with the use of a car, and the Executive is authorized to incur reasonable expenses for entertainment, traveling, meals, lodging and similar items in promoting the Company’s business. The Company will
reimburse the Executive for all reasonable expenses so incurred, consistent with the Company policies and requirements for reimbursement as in effect from time to time. 
  
 (e) The Executive shall also be entitled to receive such benefits and perquisites (the
“Benefits”) which may be made available to other senior executives of the Company from time to time. For purposes of this Agreement, “Benefits” shall include that certain supplemental disability policy as such policy is
currently in effect for the benefit of Executive, and the premiums for which disability policy shall be paid for by the Company (the “Supplemental Disability Policy”). The granting of such Benefits to Executive and the level or amount of
any such Benefits so granted shall be as determined from time to time by the Board in its discretion. 
  
 4. Extent of Service. During the Term, the Executive shall devote his full time, attention and energy to the business of the Company and the
Executive shall not be engaged in any other business activity pursued for gain, profit or other pecuniary advantage which interferes with the Executive’s duties and responsibility provided for herein. 
  
 5. Key Man Insurance. The Executive agrees to cooperate with
the Company if it decides to procure a life insurance policy on the life of the Executive, including without limitation submitting to a physical examination. The Company shall determine the terms and conditions and amounts of any such insurance
policy, including the determinations of owner and beneficiary of any such policy. 
  
 6. Non-Competition and Non-Solicitation. The Executive agrees that: 
  
 (a) As consideration for the Company entering into this Agreement and in recognition of the Company’s proprietary interest in the
Business of the Company, during the Term and for a period of two years thereafter (the “Restricted Period”), Executive will not (without the written consent of the Board) directly or indirectly Compete with the Business of the
Company. “Compete” shall mean directly or indirectly, as employee, agent, consultant, stockholder, director, co-partner or in any other individual or representative capacity, own, operate, manage, control, engage in, invest in or
participate in any manner in, act as a consultant or adviser to, render services for (alone or in 
  

 2 

 association with any person, firm, corporation or entity), or otherwise assist any person that engages
in, owns, invests in, operates, manages or controls any venture or enterprise engaging in or proposing to engage in the Business of the Company. “Business of the Company” means the business of the Company or its Affiliates (as
defined in Section 6(b)) as now conducted or as such business may be conducted or expanded in the future, and shall include without limitation the design, development, manufacture, assembly, distribution, sale and servicing of computer-based
electronic diagnostic systems related to the diagnosis of various neurological, sleep, hearing, sensory and psychiatric disorders and the monitoring of brain function. Executive acknowledges and agrees that the Business of the Company is global and
worldwide and that during the Restricted Period Executive shall not Compete with the Business of the Company anywhere in the world. Notwithstanding anything to the contrary contained herein, during the Restricted Period Executive may own
beneficially or of record up to five (5%) percent of the outstanding equity securities of any publicly-traded corporation engaged in the Business of the Company, so long as the securities of such corporation are listed on a national securities
exchange or on the Nasdaq National Market, and such securities were purchased by the Executive in open market broker transactions at available public prices. 
  

(b) During the Restricted Period, in addition to the obligations pursuant to Subsection 6(a), the Executive agrees that neither he nor
any business in which he engages will, directly or indirectly, (i) induce any customers of the Company or of corporations or businesses which directly or indirectly control or are controlled by or under common control with the Company
(“Affiliates”) to patronize any business that is engaged in the Business of the Company, (ii) canvass, solicit or accept any similar business from any customer of the Company or any of its Affiliates, (iii) request or advise any
customer of the Company or any of its Affiliates to withdraw, curtail or cancel such customer’s business with the Company or any of its Affiliates, (iv) disclose to any other person, firm or corporation the names or addresses of any of the
customers of the Company or any of its Affiliates or (v) compete with the Company or any of its Affiliates in acquiring or merging with any other business or acquiring the assets of such other business. 
  
 (c) During the Restricted Period, in addition to the
obligations pursuant to Subsections 6(a) and 6(b), the Executive agrees that neither he nor any business in which he engages will, directly or indirectly, (i) hire or attempt to hire any employee of the Company or any of its Affiliates or (ii)
encourage any employee of the Company or any of its Affiliates to terminate employment. Notwithstanding the foregoing, it shall not be deemed a violation of this Subsection 6(c) if a business which employs the Executive hires or attempts to hire an
employee of the Company or any of its Affiliates and the Executive has no knowledge or involvement with such solicitations. 
  
 (d) In the event that any of the provisions of this Section 6 should ever be deemed to exceed the time, geographic on occupational
limitations permitted by applicable laws, then such provisions shall be and are hereby reformed to the maximum time, geographic or occupational limitations permitted by law. 
  

 3 

 (e) As consideration for the covenants set forth in this Section 6, the Company shall pay
$470,000 to the Executive following the conclusion of the Term; provided, however, that no such payment shall be made if the Executive’s employment with the Company is terminated for reasons of Cause (as defined in Subsection
8(e)), even though such covenants shall remain enforceable and in full force and effect. 
  
 7. Confidential Information. 
  
 (a) Except as may be required by law, or except to the extent required to perform the Executive’s duties and responsibilities hereunder, the Executive shall keep secret and confidential indefinitely all
non-public confidential information concerning the Company and its Affiliates which was acquired by or disclosed to the Executive during the course of his employment with the Company (“Confidential Information”) and not use in any
manner or disclose the same, either directly or indirectly, to any other person, firm or business entity. 
  
 (b) Upon the end of the Term or at the Company’s earlier request, the Executive will promptly return to the Company any and all
records, documents, physical property, information, computer disks or other materials relative to the business of the Company and its Affiliates obtained by him during his course of employment with the Company. 
  
 (c) To the extent that any disclosure of Confidential
Information is required by law, including by any court or agency or pursuant to a subpoena, the Executive shall promptly inform the Company and shall take steps necessary to prevent the disclosure of Confidential Information until the Company has
been informed of such requested disclosure, and the Company has an opportunity to respond to such court, agency or applicable third party and to take whatever steps it deems necessary. To the extent that the Executive obtains information on behalf
of the Company or any of its Affiliates that may be subject to attorney-client privilege as to the Company’s attorneys, the Executive shall take steps necessary to maintain the confidentiality of such information and to preserve such privilege.

  
 8. Termination. Except as described below in
this Section 8, upon conclusion of the Term and the termination of the Executive’s employment with the Company, the obligations of the Company under this Agreement shall terminate forthwith, other than obligations to (i) pay the
Executive’s Base Salary to the date of termination, (ii) pay or make available to the Executive all Benefits which by their terms or under applicable law survive the voluntary termination of the Executive’s employment, (iii) transfer to
Executive the title to any automobile that is operated by Executive but paid for by the Company; and (iv) pay to the Executive the amount described in Subsection 6(e) (if applicable) (collectively, the “Accrued Obligation”). The
Executive shall remain bound by his non-disclosure, non-solicitation and non-competition covenants set forth in Sections 6 and 7 hereof. The vesting and exercisability of any of Executive’s outstanding stock awards shall be treated in
accordance with the terms of their respective grants or awards. 
  

 4 

 (a) Termination due to Death or Disability. If the Executive shall become
physically or mentally disabled and unable to perform the essential functions of his employment (in the reasonable opinion of the Board), even with reasonable accommodation, and such disability is reasonably expected, as determined by the Board, to
continue for at least 90 days, or if the Executive should die while an employee of the Company, the Executive’s employment with the Company shall immediately terminate. In either case (but subject to the execution by the Executive and delivery
to the Company of the General Release and Cooperation Agreement described in Section 17 hereof if termination of employment is by reason other than death), the Company shall pay to the Executive or to the Executive’s surviving spouse (or to the
Executive’s estate if there is no surviving spouse, as applicable) (i) an amount equal to two times the Executive’s Base Salary and (ii) the Accrued Obligation. At the election of the Company, the payment of such amounts may be made to
such Executive (or surviving spouse or estate, as appropriate) in two lump sum payments as follows: one-half of such amounts shall be paid not more than sixty (60) days from the date of such termination, and the remaining one-half shall be paid not
more than thirteen (13) months from the date of such termination of employment hereunder (without any penalty for prepayment in whole or in part). Other than payment of such amounts, the Company shall have no further obligations under this
Agreement. 
  
 (b) Termination by Executive
for Good Reason. The Executive may terminate employment with the Company at any time following the conclusion of the Initial Term (and for reasons other than those described in Subsection 8(c) (Change of Control)), for Good Reason. For purposes
of the foregoing, “Good Reason” shall mean: (1) a material breach of this Agreement by the Company which is not cured within 90 days of the date of notice to the Company (as described herein); or (2) if the Company, without
Executive’s consent (A) requires Executive to relocate his office to a location outside of Cook County, Illinois and Lake County, Illinois and more than 25 miles from Lake County, Illinois; or (B) reassigns Executive to a position of lesser
rank or status or reduces or materially changes Executive’s responsibilities to the Company or requires that Executive report to or take direction from anyone other than the Board of Directors of Company. In connection with the foregoing,
Executive shall deliver written notice to the Company describing the alleged material breach of this Agreement by the Company (pursuant to item (1) above) or the circumstances supporting such other Good Reason determination by Executive (pursuant to
item (2) above). In the event the parties cannot in good faith reach agreement and cure the alleged breach by the Company or otherwise eliminate the circumstances supporting such Good Reason determination, in each case as specified in
Executive’s notice to the Company, prior to date which is 90 days from the date of such notice, Executive’s employment hereunder shall be terminated automatically as of the expiration of such 90 day period, or earlier at the election of
the Company. Upon any such termination of employment with the Company by Executive for Good Reason, and subsequent delivery to the Company of the General Release and Cooperation Agreement described in Section 17 hereof, the Company shall pay to
Executive (i) an amount equal to two times Executive’s Base Salary and (ii) the Accrued Obligation. At the election of the Company, the payment of such amounts may be made to Executive in equal installments over a period not to exceed
twenty-four (24) months from the effective date of such termination of employment hereunder (without any penalty for prepayment in whole or in part). Other than payment of such amounts, the Company shall have no further obligations under this
Agreement. 
  
 (c) Termination Following a
Change in Control. 
  

	 	(i)	If at anytime following a Change in Control the Company shall elect to terminate the Executive’s employment for any reason other than those specified in Subsection 8(a) or
8(e), it shall provide written notice of such termination to the Executive. The Executive may also terminate his employment with the Company following a Change in Control by delivering written notice to the Company within 90 days of the occurrence
of such Change in Control. In either case but subject to the execution and delivery by the Executive to the Company of the General Release and Cooperation Agreement described in Section 17 hereof, the Company shall provide to the Executive the
following: 

  

 5 

	 	(A)	the Accrued Obligation, payable in a lump sum within 60 days following termination of employment; 

  

	 	(B)	an amount equal to three times his Base Salary, payable in a lump sum within 60 days following termination of employment; 

  

	 	(C)	an amount equal to his target bonus for the year of termination, determined on a pro rata basis according to the number of days elapsed since the beginning of the plan year, payable
in a lump sum within 60 days following termination of employment; 

  

	 	(D)	if the Executive elects continuation of coverage of medical and dental benefits under the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), the Company will pay 100%
such premiums for the first 18 months of coverage; and 

  

	 	(E)	payment of premiums necessary for continuation of the Supplemental Disability Policy or, at the election of the Company, a lump sum amount equal to the aggregate premiums to be paid
thereon, in either case for a period of 18 months following the effective date of termination. 

  
 Other than payment of such amounts, the Company shall have no further obligations under this Agreement. 
  

	 	(ii)	For purposes of this Agreement, a “Change in Control” shall be deemed to have occurred if: 

  

	 	(A)	any “person,” as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934 (the “Exchange Act”) (other than the Company,
any trustee or other fiduciary holding securities under an employee benefit plan of the Company, or any corporation owned directly or indirectly by the shareholders of the Company in substantially the same proportion as the ownership of stock of the
Company) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing more than 50% of the combined voting power of the Company’s then
outstanding securities; or 

  

	 	(B)	individuals who, as of the Effective Date, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board,
provided that any person becoming a director subsequent to the date 

  

 6 

 hereof whose election, or nomination for election by the Company’s shareholders, was approved by a
vote of at least a majority of the directors then comprising the then Incumbent Board (other than an election or nomination of an individual whose initial assumption of office is in connection with an actual or threatened election contest relating
to the election of the directors of the Company, as such terms are used in Rule 14a-11 of Regulation 14A under the Exchange Act) shall be, for purposes of this Agreement, considered as though such person were a member of the Incumbent Board; or

  

	 	(C)	a merger or consolidation of the Company with any other corporation occurs, other than (x) a merger or consolidation which would result in the voting securities of the Company
outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than 60% of the combined voting power of the voting securities of the Company
or such surviving entity outstanding immediately after such merger or consolidation or (y) a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no “person” (as hereinabove
defined) acquires more than 50% of the combined voting power of the Company’s then outstanding securities; or 

  

	 	(D)	the consummation of the sale or disposition by the Company of all or substantially all of the Company’s assets or the shareholders of the Company approve a plan of complete
liquidation of the Company. 

  
 (d) Termination
by the Company for Reasons Other than Cause Prior to a Change in Control. In the event the Company shall elect to terminate the Executive’s employment for any reason other than those specified in Subsection 8(a), 8(c) or 8(e), it shall
provide written notice of such termination to the Executive. Subject to the execution and delivery by the Executive to the Company of the General Release and Cooperation Agreement described in Section 17 hereof, the Company shall provide to the
Executive the following: 
  

	 	(i)	the Accrued Obligation; 

  

	 	(ii)	an amount equal to two times his Base Salary; 

  

 7 

	 	(iii)	an amount equal to his target bonus for the year of termination, determined on a pro rata basis to the date of termination according to the number of days elapsed since the
beginning of the plan year; 

  

	 	(iv)	if the Executive elects continuation coverage of medical and dental benefits under the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), the Company will pay 100% such
premiums for the first 18 months of coverage, payable when such premiums are due; and 

  

	 	(v)	payment of premiums necessary for continuation of the Supplemental Disability Policy or, at the election of the Company, a lump sum amount equal to the aggregate premiums to be paid
thereon, in either case for a period of 18 months following the effective date of termination. 

  
 The aggregate amounts payable to Executive as set forth in parts (i), (ii) and (iii) (and (v) if applicable) of this Subsection 8(d) shall be payable to
Executive, at the election of the Company, in two lump sum payments as follows: one-half of such amounts shall be paid not more than sixty (60) days from the date of such termination, and the remaining one-half shall be paid not more than thirteen
(13) months from the date of such termination hereunder (without any penalty for prepayment in whole or in part). Other than the payment of such amounts, the Company shall have no further obligations under this Agreement. 
  
 (e) Termination by the Company for Cause. The Company shall have a
right to terminate the Executive’s employment under this Agreement prior to the expiration of the Term for reason of Cause. “Cause” shall mean: 
  

	 	(i)	the commission by Executive of any act of fraud or embezzlement against the Company; 

  

	 	(ii)	any conviction or admission by Executive of a felony; 

  

	 	(iii)	a material and willful breach by Executive of any provision of this Agreement, which breach is not cured within sixty (60) days following written notice thereof to Executive; or

  

	 	(iv)	repeated failure to comply with the lawful and reasonable written directions of the Board. 

  
 Upon termination of Employment by the Company for reasons of Cause, the Executive shall not be entitled to any payments or
benefits under this Agreement, including without limitation any Accrued Obligation (unless required by law), although the non-disclosure, non-competition and non-solicitation provisions shall continue to bind Executive and be in full force and
effect and enforceable hereunder. Following any termination of the Executive by the Company for Cause, the Company shall have no obligations under this Agreement. 
  

 8 

 9. Obligations On Termination.  
  
 To the extent Executive terminates his employment with the Company,
Executive agrees to cooperate with the Company and assist the Board in identifying and locating his successor. In addition Executive agrees to devote such time as may be necessary to transition the office of Chief Executive Officer of the Company
and the responsibilities attendant thereto. Effective upon the expiration of the Term or termination of this Agreement for any reason, Executive shall be deemed to have resigned from all offices, directorships, trusteeships, or other positions he
may then hold with the Company or any Affiliate, without any further action required. 
  
 Executive hereby acknowledges and agrees that unless otherwise agreed between the Company and Executive all personal property and equipment furnished to or prepared by the Executive in the course of or incident to his
employment belong to the Company and shall be promptly returned to the Company upon termination of the Agreement. “Personal property” includes, without limitation, all books, manuals, records, reports, notes, contracts, lists, and other
documents, materials, or copies thereof, and any other proprietary information relating to the business of the Company. 
  
 10. Excise Taxes. Anything in this Agreement to the contrary notwithstanding, if any payment or benefit to which the Executive is entitled
from the Company (the “Payments,” which will include the vesting of stock awards or other benefit or property) is more likely than not to be subject to the tax imposed by Section 4999 of the Internal Revenue Code of 1986, as amended
(or any successor provision to that section), the Payments shall be reduced to the extent required to avoid application of such tax. The Executive will be entitled to select the order in which Payments are to be reduced in accordance with the
preceding sentence. Determination of whether Payments would result in the application of the tax imposed under Section 4999, and the amount of reduction that is necessary so that no such tax is applied, shall be made, at the Company’s expense,
by the independent accounting firm employed by the Company immediately prior to the occurrence of any change in control of the Company which will result in the imposition of such tax. 
  
 11. Equitable Remedies. The Executive acknowledges that the Company would be irreparably injured by a
violation of Section 6 or 7 and agrees that the Company, in addition to other remedies available to it for such breach or threatened breach shall be entitled to a preliminary injunction, temporary restraining order or other equivalent relief
restraining the Executive from any actual or threatened breach of Section 6 or 7 (without the need to post a bond or to show damages). 
  
 12. Defense of Claims. The Executive agrees that, on and after the Effective Date, he will cooperate with the Company and its Affiliates to
the extent that such claims may relate to the period of his employment by the Company or to any services performed by him for the Company. 
  
 13. Consulting Agreement. Without limitation of the provisions of Section 9, and if requested by the Company, the Executive agrees to
negotiate in good faith the terms of a consulting agreement with the Company following the Executive’s termination of employment, for a period of up to one year (or such longer period agreed upon by the parties). 
  

 9 

 14. Successors and Assigns. 
  
 (a) This Agreement is personal to the Executive and without the prior written consent of the Company the
Executive’s obligations under this Agreement will not be assignable by the Executive. This Agreement will inure to the benefit of and be enforceable by the Executive’s heirs, executors, administrators, legal representatives and assigns.

  
 (b) This Agreement will inure to the benefit
of and be binding upon the Company and its successors and assigns. 
  
 (c) The Company will require any successor to, or purchaser or acquirer of (in each case, whether direct or indirect, by purchase, merger, consolidation, reorganization or otherwise), all or substantially all of the
business and/or assets of the Company to assume expressly and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession, purchase or acquisition had taken place.

  
 15. Indemnification. The Executive shall be
eligible for indemnification as provided in the Company’s Certificate of Incorporation or Bylaws or pursuant to other agreements as may be in effect from time to time, and the Company shall also advance expenses for which indemnification may be
ultimately claimed as such expenses are incurred to the fullest extent permitted under applicable law. The Executive will provide an undertaking to repay such advances if it is ultimately determined that the Executive is not entitled to
indemnification; provided, however, that any determination required to be made with respect to whether Executive’s conduct complies with the standards required to be met as a condition of indemnification or advancement of expenses
under applicable law and the Company’s Certificate of Incorporation or Bylaws or other agreement shall be made by independent counsel mutually acceptable to the Executive and the Company (except to the extent otherwise required by law). Any
other provision herein to the contrary notwithstanding, the Company shall not be obligated to (a) indemnify or advance expenses to the Executive with respect to claims initiated or brought voluntarily by the Executive and not by way of defense
(except with respect to actions or proceedings to establish or enforce a right to indemnification under this Agreement or any other agreement or insurance policy or under the Company’s Certificate of Incorporation or Bylaws) or (b) indemnify
the Executive for expenses and the payment of profits arising from the purchase and sale by the Executive of securities in violation of Section 16(b) of the Exchange Act. 
  
 16. Inventions as Sole Property of the Company. 
  
 (a) Executive covenants and agrees that all Inventions (as defined below) shall be the sole and exclusive
property of the Company. 
  
 (b) As used in this
Agreement, “Inventions” means any and all inventions, developments, discoveries, improvements, works of authorship, concepts or ideas, or expressions thereof, whether or not subject to patents, copyright, trademark, trade secret
protection or other intellectual property right protection (in the United States or elsewhere), and whether or not reduced to practice, conceived or developed by Executive 
  

 10 

 while employed with the Company or within one (1) year following termination of such employment which
relate to or result from the actual or anticipated business, work, research or investigation of the Company or any of its Affiliates or which are suggested by or result from any task assigned to or performed by Executive for the Company or any of
its subsidiaries or affiliates. 
  
 (c) Pursuant
to the Illinois Employees’ Patent Act, Public Act 83-493, the parties agree that Section 16(b) shall not apply to an invention for which no equipment, supplies, facility or trade secret information of the Company was used and which was
developed entirely on Executive’s own time, unless the invention (i) relates to the business of the Company or to the Company’s actual or demonstrably anticipated research or development; or (ii) results from any work performed by
Executive for the Company. 
  
 (d) Executive
acknowledges that all original works of authorship which are made by him (solely or jointly) are works made for hire under the United States Copyright Act (17 U.S.C., et seq.). 
  
 (e) Executive agrees to promptly disclose to the Company all Inventions, all original works of authorship
and all work product relating thereto. This disclosure will include complete and accurate copies of all source code, object code or machine-readable copies, documentation, work notes, flow-charts, diagrams, test data, reports, samples and other
tangible evidence or results (collectively, “Tangible Embodiments”) of such Inventions, works of authorship and work product. All Tangible Embodiments of any Invention, work of authorship or work product related thereto will be
deemed to have been assigned to the Company as a result of the act of expressing any Invention or work of authorship therein. 
  
 (f) Executive hereby assigns to the Company (together with the right to prosecute or sue for infringements or other violations of the
same) the entire worldwide right, title and interest to any such Inventions or works made for hire, and Executive agrees to perform, during and after employment, all acts deemed necessary or desirable by the Company to permit and assist it, at the
Company’s expense, in registering, recording, obtaining, maintaining, defending, enforcing and assigning Inventions or works made for hire in any and all countries. Executive hereby irrevocably designates and appoints the Company and its duly
authorized officers and agents as Executive’s agents and attorneys-in-fact to act for and in Executive’s behalf and instead of Executive, to execute and file any documents and to do all other lawfully permitted acts to further the above
purposes with the same legal force and effect as if executed by Executive; this designation and appointment constitutes an irrevocable power of attorney and is coupled with an interest. 
  
 (g) Without limiting the generality of any other provision of this Section 16, Executive hereby authorizes
the Company and each of its subsidiaries and affiliates (and their respective successors) to make any desired changes to any part of any Invention, to combine it with other materials in any manner desired, and to withhold Executive’s identity
in connection with any distribution or use thereof alone or in combination with other materials. 
  

 11 

 (h) The obligations of Executive set forth in this Section 15 (including, but not limited
to, the assignment obligations) will continue beyond the termination of Executive’s employment with respect to Inventions conceived or made by Executive alone or in concert with others during Executive’s employment with the Company and
during the one (1) year thereafter, whether pursuant to this Agreement or otherwise. These obligations will be binding upon Executive and Executive’s executors, administrators and other representatives. 
  
 17. General Release and Cooperation Agreement. Notwithstanding
anything in this Agreement to the contrary (including Section 8) and in consideration therefor, following the termination of employment of Executive for any reason, the Company shall not be obligated to make any payment or provide any benefits to
Executive hereunder unless and until the Executive executes and delivers to the Company a General Release and Cooperation Agreement in substantially the form attached as Exhibit A hereto. 
  
 18. Arbitration. Any dispute or controversy arising under or in connection with the employment of the
Executive with the Company during the Term of this Agreement shall be resolved by binding arbitration. The arbitration shall be held in Chicago, Illinois, and, except to the extent inconsistent with this Agreement, shall be conducted in accordance
with the Commercial Arbitration Rules of the American Arbitration Association then in effect at the time of the arbitration, and otherwise in accordance with principles which would be applied by a court of law or equity. The arbitrator shall be
acceptable to both the Company and the Executive. If the parties cannot agree on an acceptable arbitrator, the dispute shall be heard by a panel of three arbitrators, one appointed by the Company, one appointed by the Executive and the third
appointed by the other two arbitrators. All expenses of arbitration shall be borne by the party who incurs the expense, or, in the case of joint expenses, by both parties in equal portions. 
  
 19. Costs and Expenses. The Company will pay all costs
and expenses (including attorneys’ fees and expenses) incurred by it in connection with the negotiation, preparation and execution of this Agreement. The Executive will pay the Executive’s costs and expenses (including attorneys’ fees
and expenses) incurred by him in connection with the negotiation, preparation and execution of this Agreement. 
  
 20. Notice. Any notice required or permitted to be given under this Agreement shall be in writing, signed by the party or parties giving or
making the same and shall be served on the person or persons for whom it was intended or who should be advised or notified, by Federal Express or other similar overnight service. If the notice is sent to the Executive, the notice should be sent to
the address listed on the signature page of this Agreement or to such other address furnished by the Executive in writing in accordance herewith. If notice is sent to the Company, the notice should be sent to: 
  
 Bio-logic Systems Corp. 
 One Bio-logic Plaza 
  

 12 

 Mundelein, Illinois 60060 
 Attention: President 
  
 or to such other address as furnished by the Company in writing in accordance herewith. Notice and communications will be effective when actually received by the
addressee. 
  
 21. Miscellaneous. 
  
 (a) This Agreement shall be subject to and governed by the
laws of the State of Illinois, without reference to principles of conflict of laws. The captions of this Agreement are not part of the provisions, hereof and will have no force or effect. 
  
 (b) The Executive’s or the Company’s failure to
insist upon strict compliance with any provision hereof or any other provision of this Agreement or the failure to assert any right the Executive or the Company may have hereunder will not be deemed to be a waiver of such provision or right or any
other provision or right of this Agreement. 
  
 (c) This Agreement may not be modified except by an agreement in writing executed by the parties hereto. This Agreement may be executed in counterparts, each which shall be deemed an original and when taken together shall constitute one
agreement. 
  
 (d) The invalidity or
unenforceability of any provision of this Agreement will not affect the validity or enforceability of any other provision of this Agreement. 
  
 (e) The rights and obligations set forth in Sections 6, 7, 9, 10, 11, 12, 13, 14, 15 and 16 shall survive and continue in full force in
accordance with their terms notwithstanding any termination of this Agreement. 
  
 (f) The Company may withhold from any amounts payable under this Agreement such Federal, state or local taxes as may be required to be
withheld pursuant to any applicable law or regulation. 
  
 (g) This Agreement shall supersede any and all prior employment agreements or understandings, written or oral, with the Executive, including the employment agreement between the Company and the Executive dated May 20, 1986, as such
agreement may have been modified, amended or supplemented to date. 
  
 *        *        * 
  

 13 

 IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed and delivered as of the
day and year first above written. 
  

			
	BIO-LOGIC SYSTEMS CORP.
		
	 By:
	 	 /s/ Craig W. Moore

	
	 /s/ Gabriel Raviv

	 Executive

	
	 1048 Woodlawn Road

	 Street

	
	 Glenview, IL 60025

	 City, State and Zip Code

  
  

 14 

 EXHIBIT A 
  
 GENERAL RELEASE AND COOPERATION AGREEMENT 
  
 This General Release and Cooperation Agreement (the “Agreement”) between Bio-logic Systems Corp., a
Delaware corporation (the “Company”) and Gabriel Raviv, Ph.D. (the “Executive”) is hereby effective
                                    . 
  
 W I T N E S S E T H: 
  
 WHEREAS, the Executive was employed by the Company; 
  
 WHEREAS, the Executive’s employment with the Company has
terminated effective [insert date]; 
  
 WHEREAS, as
of March 1, 2004, the Company and the Executive entered into an executive employment agreement (the “Employment Agreement”) which provides that, in certain instances, the Executive shall be entitled to certain payments specified
therein (capitalized terms used but not defined herein having the meanings ascribed thereto in the Employment Agreement); and 
  
 WHEREAS, the Company and the Executive desire to fully resolve and compromise any and all claims, charges, actions, causes of action and disputed
issues of law and fact that either party may have against the other party. 
  
 NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements contained herein and in the Employment Agreement, it is agreed by and between the Company and the Executive that:

  
 1. Release of Claims by the Executive. The
Executive, on behalf of himself and his agents, representatives, assigns, heirs, executors and administrators, hereby fully releases the Company from, and agrees not to sue it regarding, any and all liability, claims, demands, actions, causes of
action, suits, grievances, debts, sums of money, agreements, promises, damages, costs, expenses, attorneys’ fees, and remedies of any type, direct or indirectly regarding any act or failure to act that occurred up to and including the effective
date of this Agreement, including but not limited to all claims arising out of or in connection with Executive’s employment or separation of employment with the Company, and including but not limited to: 
  
 (a) any and all claims for violation of any federal, state
or municipal statute, including, but not limited to, Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. §2000e et seq., the Civil Rights Act of 1866, 42 U.S.C. §1981, the Civil Rights Act of 1991, Pub. L. No. 102-166,
the Age Discrimination in Employment Act, as amended, 29 U.S.C. §621 et seq., the Fair Labor Standards Act, 29 U.S.C. §201 et seq., the National Labor Relations Act, 29 U.S.C. §151 et seq., the Americans with
Disabilities Act, 42 U.S.C. §12101 et seq., Executive Retirement Income Security Act of 1974, 29 U.S.C. §1001 et seq., and the Family and Medical Leave Act, 29 U.S.C. §2601 et seq.; 
  

 A-1 

 (b) any and all claims for wrongful discharge of employment; termination in violation of
public policy; discrimination; breach of contract, both express and implied; breach of a covenant of good faith and fair dealing, both express and implied; promissory estoppel; negligent or intentional infliction of emotion distress; negligent or
intentional misrepresentation; negligent or intentional interference with contract or prospective economic advantage; unfair business practices; defamation; libel; slander; negligence; personal injury; assault; battery; invasion of privacy; false
imprisonment; and conversion; 
  
 (c) any and all
claims arising out of any other laws and regulations relating to employment, employment discrimination, and payment of wages and other compensation; and 
  
 (d) any and all claims for attorneys’ fees and costs. 
  
 Notwithstanding the foregoing, this Section 1 shall not adversely affect the Executive’s right to indemnification as
set forth in the Employment Agreement or any other rights set forth in the Employment Agreement. 
  
 2. Severability. Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is held to be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of this
Agreement. 
  
 3. Entire Agreement. This Agreement
constitutes and contains the entire agreement and understanding between the parties concerning the subject matter of this Agreement, and except as stated herein, supersedes all prior negotiations, proposed agreements, understandings and agreements
between the parties. 
  
 4. Amendment; Modification.
No amendment or modification of this Agreement and no waiver by any party of the breach of any covenant contained herein shall be binding unless executed in writing by the party against whom enforcement of such amendment, modification or waiver
is sought. No waiver shall be deemed a continuing waiver or a waiver in respect of any subsequent breach or default, either of a similar or different nature, unless expressly so stated in writing. 
  
 5. Successors and Assigns. This Agreement shall be binding upon
and inure to the benefit of the Company and the Executive and their respective representatives, predecessors, heirs, successors and assigns. 
  
 6. Good Faith; Full Knowledge; Attorney Review; No Coercion. The parties acknowledge that they have entered into this Agreement for their
mutual benefit in good faith and that the terms of this Agreement will be complied with in good faith and reasonableness. The parties acknowledge that they have had an adequate opportunity to review this Agreement with an attorney, that they fully
understand its terms, that they were not coerced into signing it, and that they have signed it knowingly and voluntarily. 
  

 A-2 

 7. Notice. Any notice required or permitted to be given under this Agreement shall be in
writing, signed by the party or parties giving or making the same and shall be served on the person or persons for whom it was intended or who should be advised or notified, by Federal Express or other similar overnight service. If the notice is
sent to the Executive, the notice should be sent to the address listed on the signature page of this Agreement or to such other address furnished by the Executive in writing in accordance herewith. If notice is sent to the Company, the notice should
be sent to: 
  
 Bio-logic Systems Corp.

 One Bio-logic Plaza 
 Mundelein, Illinois 60060 
 Attention: President 
  
 or to such other address as furnished by the Company in writing in accordance herewith.
Notice and communications will be effective when actually received by the addressee. 
  
 8. Descriptive Headings; Interpretation. The descriptive headings in this Agreement are inserted for convenience of reference only and are not intended to be part of or to affect the meaning or
interpretation of this Agreement. The use of the word “including” in this Agreement shall be by way of example rather than by limitation. 
  
 9. No Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties hereto to express
their mutual intent, and no rule of strict construction will be applied against any party hereto. 
  
 10. Governing Law. This Agreement shall be subject to and governed by the laws of the State of Illinois, without reference to principles of
conflict of laws. 
  
 11. Counterparts. This
Agreement may be executed in counterparts and will be as fully binding as if signed in one entire document. 
  
 12. Revocation Period. The Executive has the right to revoke this Agreement within seven days after he signs it. In order to revoke this
Agreement, the Executive must sign and send a written notice of his decision to revoke this Agreement to the Company. To be effective, the written notice must be received by the Company no later than 4:00 p.m. on the eighth day after the Executive
signed this Agreement to be effective. 
  
 13. Knowing and
Voluntary Waiver. The Executive acknowledges that: 
  
 (a) The Executive has carefully read this Agreement and fully understands its meaning; 
  
 (b) The Executive had the opportunity to take up to 21 days after receiving this Agreement to review it before signing below; 

 
 (c) The Company hereby advises the Executive in writing
that he should consult with an attorney before signing this Agreement; 
  

 A-3 

 (d) The Executive has full knowledge of the significance of this Agreement and is
entering into it knowingly, voluntarily and without any coercion or duress; and 
  
 (e) The only consideration the Executive is receiving for signing this Agreement is described in the Employment Agreement, and no other
promises or representations of any kind have been made by any person or entity to cause the Executive to sign this Agreement. 
  
 *        *        * 
  
 IN WITNESS WHEREOF, the parties have executed this Agreement as of the day
and year first above written. 
  

			
	BIO-LOGIC SYSTEMS CORP.
		
	 By:
	 	  

	
	
 Executive

	
	
 Street

	
	
 City, State and Zip Code

  

 A-4

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