Document:

Exhibit 10.4 

 

Execution
Version

 

SECURITY
AGREEMENT

 

THIS
SECURITY AGREEMENT (this “Agreement”) is entered into as of February 18, 2015, by and between Creative Realities,
Inc., a Minnesota corporation (the “Company”), those subsidiaries of the Company party hereto (collectively
with the Company, the “Obligors” and each, an “Obligor”), and Mill City Ventures III, Ltd.
(the “Secured Party”) under that certain Securities Purchase Agreement with the Company dated of even date
herewith (the “Purchase Agreement”). Capitalized terms not otherwise defined in this Agreement shall have the
meanings ascribed to them in the Purchase Agreement.

 

NOW,
THEREFORE, Obligors agree with Secured Party as follows:

 

1.          Definitions.
All terms defined in the Uniform Commercial Code of the State of Minnesota (the “UCC”) and used herein, unless
otherwise defined herein, shall have the same definitions herein as specified in the UCC.

 

2.         Security
Interest. Each Obligor hereby grants Secured Party a security interest in its accounts receivable, whether now owned or hereafter
acquired or arising, and all proceeds of such accounts receivable (collectively, the “Collateral”).

 

3.         Obligations
Secured. The security interest granted in this Agreement shall secure all of the obligations of the Company under the Note
offered and sold pursuant to the Purchase Agreement, and all extensions, renewals or modifications thereof.

 

4.          Authorization
to File Financing Statements. Each Obligor hereby irrevocably authorizes Secured Party at any time and from time to time to
file in such form and in such offices as the Secured Party reasonably determines appropriate to perfect the security interests
granted hereunder any initial financing statements and amendments thereto (and continuations thereof) that (a) indicate the Collateral
as the accounts receivable of each Obligor, and (b) contain any other information required by Article 9 of the UCC or its equivalent
in any foreign jurisdiction. Each Obligor agrees to furnish any such information to Secured Party promptly upon request.

 

5.          Ownership.
Each Obligor represents and warrants that it owns, and to the extent that the Collateral is to be acquired after the date hereof
will own, the Collateral free from encumbrance. Each Obligor will defend the Collateral against all claims of all persons at any
time claiming the Collateral or any interest in the Collateral, except Secured Party.

 

6.          Representations,
Warranties and Covenants Concerning Collateral. Each Obligor represents and warrants that no financing statement covering
the Collateral is on file in any public office. Each Obligor warrants that (a) its exact legal name is as stated on the signature
page of this Agreement, (b) it is an organization of the type and organized in the jurisdiction set forth on the signature page
of this Agreement, and (c) its place(s) of business, its chief executive office and its mailing address, are set forth on the
signature page of this Agreement. Each Obligor agrees that it will not change its name, any place of business, any location of
its collateral, its mailing address or its chief executive office without giving at least 30 days prior written notice to Secured
Party. The Collateral is and will remain personal property. The Obligors shall not change their type of organization, jurisdiction
of organization or other legal structure without the prior written consent of Secured Party. Each Obligor hereby appoints Secured
Party as its attorney-in-fact to do all acts and things which Secured Party may deem necessary to perfect and to continue perfected
the security interest created hereby and to protect and to preserve the Collateral.

 

    	 

    	 

    

 

7.          Other
Actions as to any and all Collateral. Each Obligor further agrees to take any other action reasonably requested by Secured
Party to ensure the attachment, perfection and priority of, and the ability of Secured Party to enforce, Secured Party’s
security interest in any and all of the Collateral.

 

8.          No
Sale or Transfer. No Obligor may sell or transfer the Collateral except in the ordinary course of business prior to the occurrence
of a Default. A sale or transfer in the ordinary course of business does not include a sale or transfer in partial or total satisfaction
of a debt, or in bulk.

 

9.          Inspection
and Taxes. Each Obligor will at all reasonable times during normal business hours allow Secured Party and its agents, employees,
attorneys or accountants to examine, inspect and make extracts from such Obligor’s books and other records. Obligors will
pay when due all taxes and assessments on the Collateral.

 

10.          Costs.
The Company agrees to pay all reasonable out-of-pocket fees, costs and expenses incurred in connection with any filing required
hereunder, including without limitation, any financing statements pursuant to the UCC or similar laws, continuation statements,
partial releases and/or termination statements related thereto or any expenses of any searches reasonably required by the Secured
Party. If an Obligor fails to perform any of its duties hereunder, Secured Party may, but shall not be required to, do so on any
Obligor’s behalf. If an Obligor defaults under this Security Agreement, each Obligor will pay the costs, including the reasonable
actual attorneys’ fees, of Secured Party incurred in enforcing this Agreement. Any amounts expended by Secured Party in
performing an Obligor’s duties or enforcing this Security Agreement shall be payable by the Obligors to Secured Party on
demand and shall bear interest at the rate applicable from time to time under the Note held by Secured Party. Any liability arising
under this Section 10 will be joint and several among the Obligors.

 

11.          Default.
Obligors will each be in default under this Security Agreement upon the happening of any of the following events (each a “Default”):
(a) an Obligor’s failure to perform when due any of the obligations hereunder required to be performed by it (after giving
effect to any applicable cure period); (b) the occurrence of any “Event of Default” as defined in the Note; or (c)
any representation or warranty made by an Obligor herein is false or misleading in any material respect.

 

12.          Remedies.
This Agreement and Secured Party’s rights under this Agreement or under applicable law may be enforced by Secured Party,
at its discretion, against any one or more of the parties referred to above which are encompassed within the term Obligor, without
any need to bring any enforcement action against the other parties who are encompassed within the term Obligor. At any time during
the continuance of a Default, Secured Party may declare any or all monetary obligations under the Note due and payable, and shall
have the remedies of Secured Party under the Uniform Commercial Code. Secured Party may take possession of the Collateral with
or without judicial process. Secured Party may require any Obligor to assemble the Collateral and make it available to Secured
Party. Secured Party will give the Obligors reasonable notice of the time that any intended sale or disposition of the Collateral
is to be made. The requirements of reasonable notice shall be met if the notice is mailed, postage prepaid, to any Obligor at
least 20 calendar days before the time of the sale or disposition.

 

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13.          No
Waivers. No waiver by Secured Party of any Default shall operate as a waiver of any other Default or of the same Default on
a future occasion. The acceptance of this Security Agreement will not waive or impair any other security that Secured Party may
have or hereafter acquire for the obligations secured hereunder, nor will the taking of any additional security waive or impair
the rights granted in this Security Agreement. Secured Party may resort to any security it may have in any order it deems proper,
and may apply any payments made on any part of the obligations secured hereunder to any part of such obligations, despite any
directions of an Obligor to the contrary. No delay or omission of the Secured Party to exercise, and no course of dealing with
respect to, any right, power or remedy accruing upon the occurrence and during the continuance of any Default as aforesaid shall
impair any such right, power or remedy or shall be construed to be a waiver of any such Default or an acquiescence therein.

 

14.          Governing
Law; Binding Effect. This Security Agreement shall be governed by the laws of the State of New York without regard to its
conflicts-of-law principles, and shall inure to the benefit of, and bind, Secured Party and each Obligor and their respective
successors and assigns. Each party agrees that all legal proceedings concerning the interpretations, enforcement and defense of
the transactions contemplated by this Security Agreement (whether brought against a party hereto or its respective affiliates,
directors, officers, shareholders, partners, members, employees or agents) shall be commenced exclusively in the state and federal
courts sitting in Hennepin County, Minnesota. Each party hereby irrevocably submits to the exclusive jurisdiction of the state
and federal courts sitting in Hennepin County, Minnesota, for the adjudication of any dispute hereunder or in connection herewith
or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any
suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit,
action or proceeding is improper or is an inconvenient venue for such proceeding. Each party hereby irrevocably waives personal
service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered
or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under
this Security Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof.
Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law.
No provision of this Security Agreement shall be amended, modified or waived other than by a written instrument that refers to
this Security Agreement and is signed on behalf of Secured Party.

 

15.          Termination.
This Agreement shall terminate upon the indefeasible satisfaction and payment of all obligations owed to Secured Party by each
Obligor, but shall automatically be reinstated with no further action by any party hereto, in the event any such payment is or
is ordered to be returned by Secured Party for any reason whatsoever, including without limitation the insolvency, bankruptcy
or reorganization of any Obligor, and each Obligor shall sign and deliver to the Secured Party all documents, and shall do such
other acts and things, as may be necessary to reinstate and perfect the Secured Party's security interest.

 

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16.          Consent
to Jurisdiction. AT THE OPTION OF SECURED PARTY, THIS AGREEMENT MAY BE ENFORCED IN ANY FEDERAL OR STATE COURT SITTING IN NEW
YORK, NEW YORK, OR IN ANY OTHER JURISDICTION WHERE THE COLLATERAL IS LOCATED; AND EACH PARTY CONSENTS TO THE JURISDICTION AND
VENUE OF ANY SUCH COURT AND WAIVES ANY ARGUMENT THAT VENUE IN SUCH FORUMS IS NOT CONVENIENT. IN THE EVENT ANY PARTY COMMENCES
ANY ACTION IN ANOTHER JURISDICTION OR VENUE UNDER ANY TORT OR CONTRACT THEORY ARISING DIRECTLY OR INDIRECTLY FROM THE RELATIONSHIP
CREATED BY THIS AGREEMENT, SECURED PARTY AT ITS OPTION SHALL BE ENTITLED TO HAVE THE CASE TRANSFERRED TO ONE OF THE JURISDICTIONS
AND VENUES ABOVE DESCRIBED, OR IF SUCH TRANSFER CANNOT BE ACCOMPLISHED UNDER APPLICABLE LAW, TO HAVE SUCH CASE DISMISSED WITHOUT
PREJUDICE.

 

* 
*  *  *  *  * *

 

    	4

    	 

    

 

 

In
witness whereof, the undersigned parties have set their hands to this Security Agreement to be effective as of the date
first set forth above.

 

		CREATIVE
    REALITIES, INC.
	 	 
	 	By:
    	/s/
    John Walpuck 
	 	 	John
    Walpuck
	 	 	Chief
    Financial Officer
	 	 	 
	 	BROADCAST
    INTERNATIONAL, INC.
	 	 
	 	By:	/s/
    John Walpuck 
	 	 	John
    Walpuck 
	 	 	Chief
    Financial Officer
	 	 	 
	 	CREATIVE
    REALITIES, LLC
	 	 
	 	By:	/s/
    John Walpuck
	 	 	John
    Walpuck  
	 	 	Chief
    Financial Officer
	 	 	 
	 	WIRELESS
    RONIN TECHNOLOGIES CANADA, INC.
	 	 
	 	By:	/s/
    John Walpuck  
	 	 	John
    Walpuck  
	 	 	Chief
    Financial Officer  

 

OBLIGOR
INFORMATION:

 

	Obligor	Jurisdiction
    of Organization; Type of Organization	Address
	Creative
    Realities, Inc.	Minnesota
    (corporation)	55
    Broadway, 9th Floor New York, New York 10006
	Broadcast
    International, Inc.	Utah
    (corporation)	6952
    S. High Tech Drive Suite C, Salt Lake City, Utah 84047
	Creative
    Realities, LLC	Delaware
    (limited liability company)	55
    Broadway, 9th Floor New York, New York 10006
	Wireless
    Ronin Technologies Canada, Inc.	Canada
    (corporation)	4510
    Rhodes Drive, Suite 800, Windsor, Ontario

 

 

5EX-10.1

 Exhibit 10.1 

MARVELL TECHNOLOGY GROUP LTD. 

EXECUTIVE PERFORMANCE INCENTIVE PLAN 

(Effective April 16, 2015) 

 TABLE OF CONTENTS 

 

									
	 	 	 	 	 	  	Page	 
		
	SECTION 1 BACKGROUND, PURPOSE AND DURATION	  	 	1	  
				
		 	1.1	 	    Effective Date	  	 	1	  
		 	1.2	 	    Purpose of the Plan	  	 	1	  
		
	SECTION 2 DEFINITIONS	  	 	1	  
				
		 	2.1	 	    “Actual Award”	  	 	1	  
		 	2.2	 	    “Affiliate”	  	 	1	  
		 	2.3	 	    “Base Salary”	  	 	1	  
		 	2.4	 	    “Board”	  	 	2	  
		 	2.5	 	    “Change in Control”	  	 	2	  
		 	2.6	 	    “Code”	  	 	2	  
		 	2.7	 	    “Committee”	  	 	2	  
		 	2.8	 	    “Company”	  	 	2	  
		 	2.9	 	    “Determination Date”	  	 	2	  
		 	2.10	 	    “Disability”	  	 	2	  
		 	2.11	 	    “Employee”	  	 	3	  
		 	2.12	 	    “Fiscal Year”	  	 	3	  
		 	2.13	 	    “Maximum Award”	  	 	3	  
		 	2.14	 	    “Participant”	  	 	3	  
		 	2.15	 	    “Payout Formula”	  	 	3	  
		 	2.16	 	    “Performance Goals”	  	 	3	  
		 	2.17	 	    “Performance Period”	  	 	3	  
		 	2.18	 	    “Plan”	  	 	3	  
		 	2.19	 	    “Target Award”	  	 	3	  
		 	2.20	 	    “Termination of Employment”	  	 	4	  
		
	SECTION 3 SELECTION OF PARTICIPANTS AND DETERMINATION OF AWARDS	  	 	4	  
				
		 	3.1	 	    Performance Goals	  	 	4	  
		 	3.2	 	    Selection of Participants	  	 	5	  
		 	3.3	 	    Determination of Performance Goals	  	 	5	  
		 	3.4	 	    Determination of Target Awards	  	 	5	  
		 	3.5	 	    Determination of Payout Formula	  	 	5	  
		 	3.6	 	    Date for Determinations	  	 	5	  
		 	3.7	 	    Determination of Actual Awards	  	 	6	  
		
	SECTION 4 PAYMENT OF AWARDS	  	 	6	  
				
		 	4.1	 	    Right to Receive Payment	  	 	6	  
		 	4.2	 	    Timing of Payment	  	 	6	  
		 	4.3	 	    Form of Payment	  	 	6	  
		 	4.4	 	    Termination of Employment	  	 	7	  

  
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 TABLE OF CONTENTS 

(continued) 
  

									
	 	 	 	 	 	  	Page	 
		
	SECTION 5 ADMINISTRATION	  	 	7	  
				
		 	5.1	 	    Committee is the Administrator	  	 	7	  
		 	5.2	 	    Committee Authority	  	 	7	  
		 	5.3	 	    Decisions Binding	  	 	7	  
		 	5.4	 	    Delegation by the Committee	  	 	8	  
		
	SECTION 6 GENERAL PROVISIONS	  	 	8	  
				
		 	6.1	 	    Tax Withholding	  	 	8	  
		 	6.2	 	    No Effect on Employment	  	 	8	  
		 	6.3	 	    Participation	  	 	8	  
		 	6.4	 	    Indemnification	  	 	8	  
		 	6.5	 	    Successors	  	 	9	  
		 	6.6	 	    Nontransferability of Awards	  	 	9	  
		
	SECTION 7 AMENDMENT, TERMINATION AND DURATION	  	 	9	  
				
		 	7.1	 	    Amendment, Suspension or Termination	  	 	9	  
		 	7.2	 	    Duration of the Plan	  	 	9	  
		
	SECTION 8 LEGAL CONSTRUCTION	  	 	10	  
				
		 	8.1	 	    Gender and Number	  	 	10	  
		 	8.2	 	    Severability	  	 	10	  
		 	8.3	 	    Requirements of Law	  	 	10	  
		 	8.4	 	    Governing Law	  	 	10	  
		 	8.5	 	    Captions	  	 	10	  
		 	8.6	 	    Code Section 409A	  	 	10	  

  
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 MARVELL TECHNOLOGY GROUP LTD. 

EXECUTIVE PERFORMANCE INCENTIVE PLAN 

SECTION 1 
 BACKGROUND,
PURPOSE AND DURATION 
 1.1 Effective Date. The Plan is effective April 16, 2015 (the “Effective Date”),
subject to approval by the shareholders of the Company at the 2015 Annual General Meeting of Shareholders of the Company. 
 1.2 Purpose
of the Plan. The Plan is intended to increase shareholder value and the success of the Company by motivating Participants (1) to perform to the best of their abilities, and (2) to achieve the Company’s objectives. The Plan’s
goals are to be achieved by providing Participants with the opportunity to earn incentive awards for the achievement of goals relating to the performance of the Company. The Plan is intended to permit the payment of bonuses that qualify as
performance-based compensation under Section 162(m) of the Code. 
 SECTION 2 

DEFINITIONS 
 The following
words and phrases shall have the following meanings unless a different meaning is plainly required by the context: 
 2.1 “Actual
Award” means as to any Performance Period, the actual award (if any) payable to a Participant for the Performance Period. Each Actual Award is determined by the Payout Formula for the Performance Period, subject to the Committee’s
authority under Section 3.7 to eliminate or reduce the award otherwise determined by the Payout Formula. 
 2.2
“Affiliate” means a member of the Company’s “affiliated group,” as defined in Section 1504 of the Code (determined without regard to Section 1504(b) of the Code). 

2.3 “Base Salary” means as to any Performance Period, the Participant’s earned salary during the Performance Period.
Such Base Salary shall be before both (a) deductions for taxes or benefits, and (b) deferrals of compensation pursuant to Company-sponsored plans and Affiliate-sponsored plans. 

 2.4 “Board” means the Board of Directors of the Company. 

2.5 “Change in Control” means the occurrence of any of the following, in one or a series of related transactions: 

a. Change in ownership of the Company; 

b. Change in effective control of the Company; or 

c. Change in the ownership of a substantial portion of the Company’s assets (with an asset value change in ownership exceeding more than
50% of the total gross fair market value replacing the 40% default rule); 
 all as defined under Section 409A of the Code, the final
Treasury Regulations and the official Internal Revenue Service guidance thereunder (“Section 409A”). 
 2.6
“Code” means the Internal Revenue Code of 1986, as amended. Reference to a specific section of the Code or regulation thereunder shall include such section or regulation, any valid regulation promulgated thereunder, and any
comparable provision of any future legislation or regulation amending, supplementing or superseding such section or regulation. 
 2.7
“Committee” means the committee appointed by the Board (pursuant to Section 5.1) to administer the Plan. 
  

	 	2.8	“Company” means Marvell Technology Group Ltd. or any successor thereto. 

 2.9
“Determination Date” means a date within ninety (90) days following the commencement of any Performance Period, but in no event after twenty-five percent (25%) of the Performance Period has elapsed (or such other time as
may be required or permitted that will not jeopardize a Target Award or Actual Award’s qualification as performance-based compensation under Section 162(m) of the Code). 

2.10 “Disability” means a permanent disability in accordance with a policy or policies established by the Committee (in its
discretion) from time to time. 

  
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 2.11 “Employee” means any employee of the Company or of an Affiliate, whether
such employee is so employed at the time the Plan is adopted or becomes so employed subsequent to the adoption of the Plan. 
 2.12
“Fiscal Year” means the fiscal year of the Company. 
 2.13 “Maximum Award” means as to any Participant
for any Performance Period, $6,000,000. 
 2.14 “Participant” means as to any Performance Period, an Employee who has been
selected by the Committee for participation in the Plan for that Performance Period. 
 2.15 “Payout Formula” means as to
any Performance Period, the formula or payout matrix established by the Committee pursuant to Section 3.5 in order to determine the Actual Awards (if any) to be paid to Participants. The formula or matrix may differ from Participant to
Participant. 
 2.16 “Performance Goals” shall have the meaning as set forth in Section 3.1 of the Plan. 

2.17 “Performance Period” means a Fiscal Year or such longer or shorter period as determined by the Committee in its sole
discretion. 
 2.18 “Plan” means the Marvell Technology Group Ltd. Executive Performance Incentive Plan, as set forth in
this instrument and as hereafter amended from time to time. 
 2.19 “Target Award” means the target award payable under the
Plan to a Participant for the Performance Period, expressed as a percentage of his or her Base Salary or a specific dollar amount, as determined by the Committee in accordance with Section 3.4. 

  
 3 

 2.20 “Termination of Employment” means a cessation of the employee-employer
relationship between an Employee and the Company or an Affiliate for any reason, including, but not by way of limitation, a termination by resignation, discharge, death, Disability, retirement, or the disaffiliation of an Affiliate, but excluding
any such termination where there is a simultaneous reemployment by the Company or an Affiliate. 
 SECTION 3 

SELECTION OF PARTICIPANTS AND DETERMINATION OF AWARDS 

3.1 Performance Goals. The granting of awards pursuant to the Plan may be made subject to the attainment of goal(s) (or combined
goal(s)) determined by the Committee (in its discretion) relating to one or more business criteria within the meaning of Section 162(m) of the Code to be applicable to a Participant for a Target Award for a Performance Period
(“Performance Goals”). As determined by the Committee, the Performance Goals for any Target Award applicable to a Participant may provide for a targeted level or levels of achievement using one or more of the following measures:
attainment of research and development milestones, business divestitures and acquisitions, cash flow, customer retention or acquisition, business unit performance, earnings (which may include earnings before interest, taxes, depreciation or
amortization (EBITDA)), earnings per share, expense reduction, gross margin, growth with respect to any of the foregoing measures, market share, net income, new product development, operating income, operating margin, pre-tax profit, product release
timelines, productivity, return on capital employed, return on shareholder equity, return on sales, revenue, revenue growth, and total shareholder return. Performance Goals may differ from Participant to Participant, Performance Period to
Performance Period and from award to award. Any criteria used may be measured, as applicable, (i) in absolute terms; (ii) in relative terms over the passage of time and/or any measurement against other companies or financial or business or
stock index metrics particular to the Company); (iii) on a per share and/or share per capita basis; (iv) against the performance of the Company as a whole or against any Affiliate(s), or a particular segment(s), a business unit(s) or a
product(s) of the Company; (v) on a pre-tax or after-tax basis; and/or (vi) using an actual foreign exchange rate or on a foreign exchange neutral basis. Prior to the Determination Date, the Committee shall determine whether any element(s)
(for example, but not by way of limitation, the effect of mergers or acquisitions) shall be included in or excluded from the calculation of any Performance Goal with respect to any Participants (whether or not such determinations result in any
Performance Goal being measured on a basis other than generally accepted accounting principles). In all other respects, Performance Goals will be calculated in accordance with the Company’s financial statements, generally accepted accounting
principles, or under a methodology established by the Committee prior to or at the time of the issuance of an award and which is consistently applied with respect to a Performance Goal in the relevant Performance Period. The Committee will
appropriately adjust any evaluation of performance under a Performance Goal to exclude (i) any extraordinary non-recurring items as described in Accounting Principles Board Opinion No. 30 and/or in management’s discussion and analysis
of financial conditions and results of operations appearing in the Company’s annual report to shareholders for the applicable year; or (ii) the effect of any changes in accounting principles affecting the Company’s or a business
units’ 

  
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reported results. In addition, the Committee will adjust any performance criteria, Performance Goal or other feature of an award that relates to or is wholly or partially based on the number of,
or the value of, any stock of the Company, to reflect any stock dividend or split, repurchase, recapitalization, combination, or exchange of shares or other similar changes in such stock. 

3.2 Selection of Participants. The Committee, in its sole discretion, shall select the Employees who shall be Participants for any
Performance Period. The Committee, in its sole discretion, also may designate as Participants one or more individuals (by name or position) who are expected to become Employees during a Performance Period. Participation in the Plan is in the sole
discretion of the Committee, and shall be determined on a Performance Period by Performance Period basis. Accordingly, an Employee who is a Participant for a given Performance Period in no way is guaranteed or assured of being selected for
participation in any subsequent Performance Period. 
 3.3 Determination of Performance Goals. The Committee, in its sole discretion,
shall establish the Performance Goals for each Participant for the Performance Period. Such Performance Goals shall be set forth in writing. 

3.4 Determination of Target Awards. The Committee, in its sole discretion, shall establish a Target Award for each Participant. Each
Participant’s Target Award shall be determined by the Committee in its sole discretion, and each Target Award shall be set forth in writing. 

3.5 Determination of Payout Formula. On or prior to the Determination Date for a Performance Period, the Committee, in its sole
discretion, shall establish a Payout Formula for purposes of determining the Actual Award (if any) payable to each Participant. Each Payout Formula shall (a) be in writing, (b) be based on a comparison of actual performance to the
Performance Goals, (c) provide for the payment of a Participant’s Target Award if the Performance Goals for the Performance Period are achieved at the predetermined level, and (d) provide for the payment of an Actual Award greater
than or less than the Participant’s Target Award, depending upon the extent to which actual performance exceeds or falls below the Performance Goals. Notwithstanding the preceding, in no event shall a Participant’s Actual Award for any
Performance Period exceed the Maximum Award. 
 3.6 Date for Determinations. The Committee shall make all determinations under
Sections 3.2 through 3.5 on or before the Determination Date. 

  
 5 

 3.7 Determination of Actual Awards. After the end of each Performance Period, the
Committee shall certify in writing (for example, in its meeting minutes) the extent to which the Performance Goals applicable to each Participant for the Performance Period were achieved or exceeded, as determined by the Committee. A Participant
will be eligible to receive an Actual Award intended to qualify as performance-based compensation under Section 162(m) of the Code for a Performance Period only if the Performance Goals for such period are achieved. If the Performance Goals for
a Performance Period are not achieved, a Participant will not receive payment of any Actual Award based on such Performance Goals and will not receive a grant of any make-up Actual Award for such Performance Period or any other newly-granted Actual
Award for such Performance Period. The Actual Award for each Participant shall be determined by applying the Payout Formula to the level of actual performance that has been certified in writing by the Committee. Notwithstanding any contrary
provision of the Plan, in determining the amounts earned by a Participant pursuant to an award intended to qualified as performance-based compensation under Section 162(m) of the Code, the Committee will have the right to (a) reduce or
eliminate (but not to increase) the amount payable at a given level of performance to take into account additional factors that the Committee may deem relevant to the assessment of individual or corporate performance for the Performance Period,
(b) determine what Actual Award, if any, will be paid in the event of a Termination of Employment as the result of a Participant’s death or Disability or upon a Change in Control or in the event of a Termination of Employment following a
Change in Control prior to the end of the Performance Period, and (c) determine what Actual Award, if any, will be paid in the event of a Termination of Employment other than as the result of a Participant’s death or Disability prior to a
Change in Control and prior to the end of the Performance Period to the extent an actual Award would have otherwise been achieved had the Participant remained employed through the end of the Performance Period. 

SECTION 4 
 PAYMENT OF
AWARDS 
 4.1 Right to Receive Payment. Each Actual Award that may become payable under the Plan shall be paid solely from the
general assets of the Company or the Affiliate that employs the Participant (as the case may be), as determined by the Committee. Nothing in this Plan shall be construed to create a trust or to establish or evidence any Participant’s claim of
any right to payment of an Actual Award other than as an unsecured general creditor with respect to any payment to which he or she may be entitled. 

4.2 Timing of Payment. Subject to Section 3.7, payment of each Actual Award shall be made as soon as administratively practicable
following the determination of the Actual Award payment. 
 4.3 Form of Payment. Each Actual Award shall be paid in cash (or its
equivalent) in a single lump-sum and/or in the form of an equity award, as determined in the sole discretion of the Committee. To the extent that the Committee determines that an Actual Award is payable in part or in full as an equity award

  
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instead of cash, the number of shares subject to such equity award will be determined subject to a conversion ratio, as determined in the sole discretion of the Committee. All equity awards will
be issued pursuant to the terms, conditions and procedures of the Marvell Technology Group Ltd. Amended and Restated 1995 Stock Option Plan as may be hereafter amended from time to time or any successor equity incentive plan that the Company may
adopt from time to time (the “Stock Plan”) and an award agreement thereunder; provided that any such equity award may be subject to service-based vesting. 

4.4 Termination of Employment. Except as permitted in Section 3.7, if a Participant incurs a Termination of Employment for any
reason prior to the date of payment of an Actual Award, such Participant shall not be entitled to an Award. 
 SECTION 5 

ADMINISTRATION 
 5.1
Committee is the Administrator. The Plan shall be administered by the Committee. The Committee shall consist of not less than two (2) members of the Board. The members of the Committee shall be appointed from time to time by, and serve
at the pleasure of, the Board. Each member of the Committee shall qualify as an “outside director” under Section 162(m) of the Code. If it is later determined that one or more members of the Committee do not so qualify, actions taken
by the Committee prior to such determination shall be valid despite such failure to qualify. Any member of the Committee may resign at any time by notice in writing mailed or delivered to the Secretary of the Company. As of the Effective Date of the
Plan, the Plan shall be administered by the Executive Compensation Committee of the Board. 
 5.2 Committee Authority. It shall
be the duty of the Committee to administer the Plan in accordance with the Plan’s provisions. The Committee shall have all powers and discretion necessary or appropriate to administer the Plan and to control its operation, including, but not
limited to, the power to (a) determine which Employees shall be granted awards, (b) prescribe the terms and conditions of awards, (c) interpret the Plan and the awards, (d) adopt such procedures and sub-plans as are necessary or
appropriate to permit participation in the Plan by Employees who are foreign nationals or employed outside of the United States, (e) adopt rules for the administration, interpretation and application of the Plan as are consistent therewith, and
(f) interpret, amend or revoke any such rules. 
 5.3 Decisions Binding. All determinations and decisions made by the Committee,
the Board, and any delegate of the Committee pursuant to the provisions of the Plan shall be final, conclusive and binding on all persons, and shall be given the maximum deference permitted by law. 

  
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 5.4 Delegation by the Committee. The Committee, in its sole discretion and on such terms
and conditions as it may provide, may delegate all or part of its authority and powers under the Plan to one or more directors and/or officers of the Company; provided, however, that the Committee may not delegate its authority and/or powers with
respect to awards that are intended to qualify as performance-based compensation under Section 162(m) of the Code. 
 SECTION 6

 GENERAL PROVISIONS 

6.1 Tax Withholding. The Company or an Affiliate, as determined by the Committee, shall withhold all applicable taxes from any Actual
Award, including any federal, state, local and other taxes. Notwithstanding the foregoing, to the extent an Actual Award is settled in whole or in part as an equity award pursuant to Section 4.3, the Committee shall provide for appropriate tax
withholding requirements in the applicable award agreement consistent with the terms of the Stock Plan. Further, the obligation of the Company to deliver shares will be subject to a Participant satisfying the tax withholding obligations described in
the preceding sentence. 
 6.2 No Effect on Employment. Nothing in the Plan shall interfere with or limit in any way the right of the
Company or an Affiliate, as applicable, to terminate any Participant’s employment or service at any time, with or without cause. For purposes of the Plan, transfer of employment of a Participant between the Company and any one of its Affiliates
(or between Affiliates) shall not be deemed a Termination of Employment. Employment with the Company and its Affiliates is on an at-will basis only. The Company expressly reserves the right, which may be exercised at any time and without regard to
when during or after a Performance Period such exercise occurs, to terminate any individual’s employment with or without cause, and to treat him or her without regard to the effect which such treatment might have upon him or her as a
Participant. 
 6.3 Participation. No Employee shall have the right to be selected to receive an award under this Plan, or, having
been so selected, to be selected to receive a future award. 
 6.4 Indemnification. Each person who is or shall have been a member of
the Committee, or of the Board, shall be indemnified and held harmless by the Company against and from (a) any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by him or her in connection with or resulting from
any claim, action, suit, or proceeding to which he or she may be a party or in which he or she may be involved by reason of any action taken or failure to act under the Plan or any 

  
 8 

 
award, and (b) from any and all amounts paid by him or her in settlement thereof, with the Company’s approval, or paid by him or her in satisfaction of any judgment in any such claim,
action, suit, or proceeding against him or her, provided he or she shall give the Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and defend it on his or her own behalf. The foregoing
right of indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled under the Company’s charter and/or organizational documents, by contract, as a matter of law, or otherwise, or under
any power that the Company may have to indemnify them or hold them harmless. 
 6.5 Successors. All obligations of the Company and
any Affiliate under the Plan, with respect to awards granted hereunder, shall be binding on any successor to the Company and/or such Affiliate, whether the existence of such successor is the result of a direct or indirect purchase, merger,
consolidation, or otherwise, of all or substantially all of the business or assets of the Company or such Affiliate. 
 6.6
Nontransferability of Awards. No award granted under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will, by the laws of descent and distribution. All rights with respect to an
award granted to a Participant shall be available during his or her lifetime only to the Participant. 
 SECTION 7 

AMENDMENT, TERMINATION AND DURATION 

7.1 Amendment, Suspension or Termination. The Board or the Committee, each in its sole discretion, may amend or terminate the Plan, or
any part thereof, at any time and for any reason. The amendment, suspension or termination of the Plan shall not, without the consent of the Participant, alter or impair any rights or obligations under any Target Award theretofore granted to such
Participant. No award may be granted during any period of suspension or after termination of the Plan. 
 7.2 Duration of the Plan.
The Plan shall commence on the date specified herein, and subject to Section 7.1 (regarding the Board or the Committee’s right to amend or terminate the Plan), shall remain in effect until the 2020 Annual General Meeting of Shareholders.

  
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 SECTION 8 

LEGAL CONSTRUCTION 
 8.1
Gender and Number. Except where otherwise indicated by the context, any masculine term used herein also shall include the feminine; the plural shall include the singular and the singular shall include the plural. 

8.2 Severability. In the event any provision of the Plan shall be held illegal or invalid for any reason, the illegality or invalidity
shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included. 

8.3 Requirements of Law. The granting of awards under the Plan shall be subject to all applicable laws, rules and regulations, and to
such approvals by any governmental agencies or national securities exchanges as may be required. 
 8.4 Governing Law. The Plan and
all awards shall be construed in accordance with and governed by the laws of the State of California, but without regard to its conflict of law provisions. 

8.5 Captions. Captions are provided herein for convenience only, and shall not serve as a basis for interpretation or construction of
the Plan. 
 8.6 Code Section 409A. It is intended that this Plan comply with, or be exempt from, Section 409A and any
ambiguities herein will be interpreted to so comply and/or be exempt from Section 409A. The Company and each Participant will work together in good faith to consider either (i) amendments to the Plan; or (ii) revisions to the Plan
with respect to the payment of any awards, which are necessary or appropriate to avoid imposition of any additional tax or income recognition prior to the actual payment to the Participant under Section 409A. In no event will the Company
reimburse a Participant for any taxes that may be imposed on the Participant as a result of Section 409A. 

  
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