Document:

VP Worldwide Sales - FY11 Sales Incentive Plan

 Exhibit 10.17 

PLAN DOCUMENT 

VP Worldwide Sales—FY11 Sales Incentive Plan 
  

	1.0	PURPOSE 

  

	 	1.1	Exar Corporation (the “Company”) maintains the VP Worldwide Sales—FY11 Sales Incentive Plan (the “Plan”) to provide a framework by which sales
achievement can be measured and rewarded, and to provide clearly defined rewards for sales achievement against measurable and predefined objectives. 

  

	2.0	REQUIREMENTS 

  

	 	2.1	The Compensation Committee of the Company’s Board of Directors shall administer the Plan, shall select the Participants eligible to participate in the Plan and
shall determine the terms of awards granted under the Plan and any amounts payable with respect to such awards. The Company’s Vice President of Worldwide Sales (the “Participant”) shall be the sole participant in the Plan for the
Company’s 2011 fiscal year. 

 The following restrictions apply: 

 

	 	2.1.1	The Participant is eligible to be paid incentive per the following: 

  

	 	2.1.1.1	If the Participant’s employment with EXAR begins during the last month of a quarter, the Participant will not be paid incentive for the quarter during which their
employment begins. 

  

	 	2.1.1.2	Guaranteed draw payments will begin coincident with the start of the Participant’s incentive pay period eligibility. 

 

	 	2.1.2	If the Participant terminates voluntarily from EXAR the Participant will be paid incentive up to the last day of the last full fiscal quarter of employment. If
the Participant terminates involuntarily, excluding termination for cause, the Participant will be paid incentive on a prorated basis through the last day worked. 

 

	 	2.1.2.1	In the event the calculated quarterly payout is negative at the time of termination, EXAR reserves the right to make a deduction from the final paycheck.

  

	 	2.1.2.2	Incentive payments for attainment in excess of 100% of individual target will not be paid if termination occurs prior to the end of Q4 during the fiscal year.

  

	 	2.1.3	If the Participant is on an approved leave of absence, the Participant will receive incentive pay on a prorated basis for the time worked during the quarter.

  

	 	2.2	 The Participant is not eligible to participate in any other annual incentive compensation program of the company that may be established from time to
time 

	 	 
(other than any Company equity-based awards that may be specifically granted to the Participant by the Compensation Committee), such as the Executive Incentive Compensation Program, Key Employee
Incentive Compensation Program, Cash Profit Sharing Program, or any plan including a sales-based or Design Win metric. 

  

	 	2.3	The effective dates of the plan are March 29, 2010 through March 27, 2011. 

 

	 	2.4	Revenue and Design Win data will be made available within one month of quarter end. 

 

	3.0	OPERATING PROCEDURES AND RESPONSIBILITIES 

  

	 	3.1	The Compensation Committee will establish a target incentive (“Target Incentive”) for the Participant expressed as a percentage of the Participant’s
annual rate of base salary in effect at the end of the applicable fiscal quarter. 

  

	 	3.2	The Target Incentive represents the payout that the Participant would be entitled to receive at 100% target performance for each of the components of the Plan, subject
to the terms and conditions of the Plan. 

  

	 	3.3	The Plan is a cumulative annual Plan; however, quarterly payout cannot exceed 100% of prorated target incentive until the final quarter of the Plan Year. Estimated
commissions above the quarterly Target Incentive may be adjusted to reflect subsequent performance and are not “wages” or “earnings” until the final year end adjustment. 

 

	 	3.4	The quarterly payout is based on individual attainment against target. If attainment exceeds 100%, then the quarterly payout is accelerated at a rate of 120% of the
percent attainment. If attainment is less than 80% of target, then the quarterly payout is decelerated at a rate of 80% of the percent attainment. 

  

	 	3.4.1	No acceleration factor will be applied unless all components of the plan exceed 100%. 

 

	 	3.5	There are three components of the Plan – Revenue, Design Wins, and a third component tied to Corporate Revenue/Operating Income. Each of these components is
described in more detail below. The Revenue component is weighted 30%; the Design Wins component is weighted 60%; and the Corporate Revenue/Operating Income component is weighted 10%. 

 

	 	3.6	Quarterly incentive payouts are calculated per the terms of the Plan and require the approval of the CFO and the VP, Human Resources; payments are made within 60 days
after the end of the fiscal quarter. 

  

	4.0	REVENUE COMPONENT 

  

	 	4.1	The Revenue component shall be calculated based on the Company’s revenue attained for the relevant period against a revenue target established for that period by
the Compensation Committee for purposes of the Plan. For these purposes, “Revenue” will be calculated in accordance with the methodology established for purposes of determining sales revenue under the Company’s incentive program for
its sales personnel generally. 

	5.0	DESIGN WIN COMPONENT 

  

	 	5.1	EXAR’s focus is to increase sales of proprietary products and at strategic accounts. Accordingly, achieving design wins and converting these Design Wins into
revenue is critical to the future success of the company. Design Win Claims establish the backlog for conversion and potential future revenue. 

  

	 	5.2	The Design Wins component shall be calculated based on the Participant’s Design Wins for the relevant period (using a methodology established by the Compensation
Committee for such purpose) against the Participant’s Design Win quota established for that period by the Compensation Committee for purposes of the Plan. Design Win claims are recognized when a Company device is designed into a single platform
having a first year revenue potential greater than $50,000. A Design Win may be claimed by the Participant when the Company or certain of its partners ship a minimum of 1,000 units or $1,000 based upon a standard customer order (not to include
samples). 

  

	6.0	OBJECTIVE COMPONENT 

  

	 	6.1	Participants in the Plan will be compensated on Corporate Revenue and Operating Income Targets as set forth in Exar’s FY11 Executive/Key Incentive Plans. This will
be calculated annually based on corporate performance, and will be paid with the final quarterly incentive payment for the plan year. This component will only be paid if the Participant completes the full fiscal year (FY 2011) as an employee of
Exar. 

  

	7.0	OTHER PLAN PROVISIONS 

  

	 	7.1	The Company’s Compensation Committee, in its sole discretion, may amend or terminate the Plan, or any part thereof, at any time and for any reason without prior
notice. 

  

	 	7.2	The Company has the right to deduct from any bonus amount otherwise payable the amount of any and all required income, employment and other tax withholding required
with respect to such payment. 

  

	 	7.3	The rights, if any, of the Participant or any other person to any payment or other benefits under the Plan may not be assigned, transferred, pledged, or encumbered
except by will or the laws of descent or distribution. 

  

	 	7.4	Participation in the Plan does not constitute a guarantee of employment or interfere in any way with the right of the Company (or any subsidiary) to terminate the
Participant’s employment or to change the Participant’s compensation or other terms of employment at any time. There is no commitment or obligation on the part of the Company (or any subsidiary) to continue any bonus plan (similar to the
Plan or otherwise) in any future fiscal year. 

  

	 	7.5	 The Compensation Committee may, in its sole discretion, adjust performance measures, performance goals, relative weights of the measures, and other

	 	 
provisions of the Plan to the extent (if any) it determines that the adjustment is necessary or advisable to preserve the intended incentives and benefits to reflect (1) any material change
in corporate capitalization, any material corporate transaction (such as a reorganization, combination, separation, merger, acquisition, or any combination of the foregoing), or any complete or partial liquidation of the Company, (2) any change
in accounting policies or practices, or (3) the effects of any special charges to the Company’s earnings, or (4) any other circumstances that the Compensation Committee may take into account.Subscription Agreement

 Exhibit 4.1 

SUBSCRIPTION AGREEMENT 

THIS SUBSCRIPTION AGREEMENT (the “Agreement”) is entered as of April 14, 2010, by and between Comprehensive Care
Corporation, a Delaware Corporation (the “Company”), and the investor whose name appears at the end of the Agreement (“Purchaser”). 

RECITALS 
 The Company
wishes to obtain financing and Purchaser desires to provide such financing to the Company through the purchase of the Company’s Convertible Promissory Note (the “Securities”), being privately offered by the Company. 

NOW, THEREFORE, in consideration of the premises hereof and the agreements set forth herein below, the parties hereto hereby agree as follows:

 1. Sale and Purchase of the Securities. Subject to the terms and conditions herein, on the Closing Date, as defined in
Section 2 hereof, the Company agrees to issue and sell, and Purchaser agrees to purchase, the Securities for the aggregate consideration of two million dollars ($2,000,000.00) (the “Purchase Price”). 

2. Description of Securities. The Securities will be an interest bearing convertible note plus an attached warrant with the
following terms: 
  

	 	i.	Convertible Promissory Note, term will be 1 year from date of issue; 

  

	 	ii.	Coupon rate will be 24% payable quarterly on outstanding balance; 

  

	 	iii.	The outstanding principal of the Securities are convertible at anytime prior to maturity at the holders discretion into the Company’s Common Stock, par value $0.01
per share, at a conversion price equal to $0.25 per share; 

  

	 	iv.	One five year Warrant for every two dollars of face value convertible into the Company’s Common Stock at a price of $0.25 per share. 

3. Closing. The closing of the purchase and sale of the Securities hereunder (the “Closing”) shall be held on
June 4, 2010 (the “Closing Date”) with the signing of this Agreement and payment of the Purchase Price. 
 4.
Delivery by the Company. Within five (5) business days following the Closing, the Company shall deliver to Purchaser the Securities executed by the appropriate officers and registered in Purchaser’s name. 

5. Delivery by Purchaser. Purchaser shall deliver the Purchase Price, as defined in Section 1 herein, by check, wire transfer
or bank check. 
  

 Purchaser’s Initials
                 
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 6. Representation by Purchaser. Purchaser represents and warrants to the Company as
follows: 
 (a) Access to Information. Purchaser has had access to all material and relevant information concerning the
Company necessary to enable Purchaser to make an informed investment decision with respect to his/her investment in the Company. Purchaser acknowledges that he/she or his/her representative has had the opportunity to ask questions of and receive
answers from and to obtain additional information from the Company or its representatives concerning the terms and conditions of the acquisition of the Securities and the present and proposed business and financial condition of the Company and has
had all such questions answered to his/her satisfaction and has been supplied all information requested. The Company acknowledges its understating that Purchaser has relied on the information so provided. 

(b) Financial Matters and Sophistication. Purchaser or his/her representatives has such knowledge and experience in business and
financial matters, such that he/she is capable of evaluating the merits and risks of investing in the Company. Purchaser represents that he/she is (i) an “accredited investor” as defined in Rule 501(a) of Regulation D promulgated
under the Securities and Exchange Act of 1933, as amended (the “1933 Act”); (ii) is capable of assuming the risk of investing in the Company; and (iii) satisfies the suitability standards of the Company as an individual as set
forth in sub-paragraphs “6 (i)” and “6 (ii)” below. 
 (c) Investment Intent. 

(i) Purchaser is acquiring the Securities for his/her own account and not on behalf on any other person. 

(ii) Purchaser is acquiring the Securities for investment and not with a view to distribution or with the intent to divide its
participation with others by reselling or otherwise distributing the Securities. 
 (iii) Neither Purchaser nor the Company nor
anyone acting on their behalf has paid or will pay any commission or other remuneration to any person in connection with the purchase of the Securities; and, 

(iv) Purchaser will not sell the Securities without registration under the 1933 Act and any applicable State securities laws, or unless
the Company receives an opinion of counsel reasonably acceptable to it (as to both counsel and the opinion) to the effect that such registration is not necessary. This subparagraph (c)(iv) is subject to the language in paragraph “7.”

 7. Important Considerations; Suitability Standards-Who Should Invest 

INVESTMENT IN THE SECURITIES INVOLVES A HIGH DEGREE OF RISK AND IS SUITABLE ONLY FOR PERSONS OF SUBSTANTIAL FINANCIAL RESOURCES WHO
HAVE NO NEED FOR LIQUIDITY IN THEIR INVESTMENT 
  

 Purchaser’s Initials
                 
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 A substantial number of State securities commissions have established investor suitability
standards for the marketing within their respective jurisdictions of restricted securities. Some have also established minimum levels for purchases in their states. The reasons for these standards appear to be, among others, the relative lack of
liquidity of securities of such programs as compared with other securities investments. Investment in the Securities involves a high degree of risk and is suitable only for persons of substantial financial means who have no need for liquidity in
their investments. 
 The Company has adopted as a general investor suitability standard the requirement that each subscriber
for the Securities represent in writing that the subscriber: (a) is acquiring the Securities for investment and not with a view to resale or distribution; (b) can bear the economic risk of losing its entire investment; (c) his/her
overall commitment to investments which are not readily marketable is not disproportionate to his/her net worth and an investment in the Securities will not cause such overall commitment to become excessive; (d) has adequate means of providing
for his/her current needs and personal contingencies and has no need for liquidity in this investment in the Securities; (e) has evaluated all the risks of investing in the Company; and, (f) has such knowledge and experience in financial
and business matters as to be capable of evaluating the merits and risks of investing in the Company or is relying on his/her own purchaser representative, in making an investment decision. 

In addition, all subscribers for the Securities must be extremely sophisticated investors with substantial net worth and experience in
making investments of this nature and be “accredited investors,” as defined in Rule 501 of Regulation D under the Act, by meeting any of the following conditions (please check appropriate box): 

 ̈ (i) has an individual income in excess of $200,000 in each of the two most recent years
or joint income with his or her subscriber spouse in excess of $300,000 in each of those years, and he or she reasonably expects an income in excess of the aforesaid levels in the current year; or 

 ̈ (ii) he or she has an individual net worth, or a joint net worth with his or her
spouse, at the time of his or her purchase in excess of $1,000,000 (net worth for these purposes includes homes, home furnishings and automobiles); or 

 ̈ (iii) he or she otherwise satisfies the Company that he or she is an accredited
investor as defined in Rule 501 under the Act. 
 Other categories of investors included within the definition of accredited
investor including the following: certain institutional investors, including certain banks, whether acting in their individual or fiduciary capacities; certain insurance companies; federally registered investment companies; business development
companies (as defined under the Investment Company Act of 1940); tax exempt organizations (as defined in the Investment Advisers Act of 1940); tax exempt organizations (as defined in Section 501(c) (3) of the Internal Revenue Code) with
total assets in excess of $5,000,000; entities in which all the equity owners are accredited investors and certain affiliates of the Company. 
  

 Purchaser’s Initials
                 
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 A partnership subscriber, which satisfies the requirements set forth in clauses
(a) through (f) above, shall satisfy the suitability standards if it is an accredited investor by reason of clause (iii) above, or if all of its partners are accredited investors. A corporate subscriber, which satisfies the
requirements set forth in clauses (a) through (f) above, shall satisfy the investor suitability standards if it is an accredited investor by reason of clause (iii) above, or if all of its shareholders are accredited investors.
Corporate subscribers must have net worth of at least three (3) times the amount of their investment in the Securities. 

The suitability standards referred to above represent minimum suitability requirements for prospective purchasers and the satisfaction of
such standards by a prospective purchaser does not necessarily mean that the Securities is a suitable investment for such purchaser. The Company may, in circumstances it deems appropriate, modify such requirements. The Company may also reject
subscriptions for whatever reason, in its sole discretion, it deems appropriate. 
 8. Understanding of Nature of
Securities. Purchaser understands that: 
 (a) The Securities issuable there under have not been registered under the 1933
Act or any State securities laws and are being issued and sold in reliance upon certain of the exemptions contained in the 1933 Act and under applicable State securities laws; 

(b) The Securities are “restricted securities” as that term is defined in Rule 144 promulgated under the 1933 Act; 

(c) The Securities cannot be sold or transferred without registration under the 1933 Act and applicable state securities laws, or unless
the Company receives an opinion of counsel reasonable acceptable to it (as to both counsel and the opinion) that such registration is not necessary; 

(d) The Securities, and any certificates issued in replacement therefore, shall bear the following legend, in addition to any legend
required by law or otherwise; 
 “The securities represented by this certificate have not been registered under the
Securities Act of 1933, as amended. The securities represented by this certificate have been taken by the registered owner for investment, and without a view to resale or distribution thereof, and may not be transferred or disposed of without an
opinion of counsel satisfactory to the issuer that such transfer or disposition does not violate the Securities Act of 1933, as amended, or the rules and regulations thereunder.” 

 

 Purchaser’s Initials
                 
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 (e) Only the Company can register the Securities under the 1933 Act and applicable State
securities laws; 
 (f) Other than as set forth below, no representations have been made to Purchaser that the Company will
register the Securities under the 1933 Act or any applicable State securities laws, or with respect to compliance with any exemption therefrom; and 

(g) The Company may, from time to time, make stop transfer notations in its transfer records to ensure compliance with the 1933 Act.

 9. Warranties and Representation of the Company. The Company represents and warrants to Purchaser as follows:

 (a) Organization and Standing of the Company. The Company is a duly organized and validly existing corporation in good
standing under the laws of the State of Delaware with adequate power and authority to conduct the business in which it is now engaged and has the corporate power and authority to enter into this Agreement, and is in good standing in such other
states of jurisdictions as is necessary to enable it to carry on its business. 
 (b) Corporate Power and Authority. The
execution and delivery of this Agreement and the transaction contemplated hereby has been duly authorized by the Company’s Board of Directors. No other corporate proceeding on the part of the Company is necessary to authorize this Agreement or
the consummation of the transaction contemplated hereby. When duly executed and delivered by the parties hereto, this Agreement will constitute a valid and legally binding obligation of the Company enforceable against the Company in accordance with
its terms. 
 (c) Securities. All the Securities have been duly authorized and, upon issuance and sale pursuant to the
terms of this Agreement, will have been validly issued fully paid and non-assessable and will be free and clear of all liens, claims and encumbrances. 

10. Notices. All notices, requests, consents or other communications required or permitted hereunder shall be in writing and shall be
hand delivered or mailed first class postage prepaid, registered or certified mail, to the following address: 
 In the case of
the Company: 
 Joe Crisafi 

Chief Financial Officer 

3405 W. Martin Luther King Jr. Blvd, Suite 101 

Tampa, FL 33607 
  

 Purchaser’s Initials
                 
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 In the case of Purchaser, to the address set forth at the end of this Agreement or to such
other addresses as may be specified in accordance herewith from time to time. 
 Such notices and other communications shall,
for all purposes of this Agreement, be treated as being effective upon being delivered personally or, if sent by mail, five days after the same has been deposited in a regularly maintained receptacle for the deposit of United States mail, addressed
as set forth above, and postage prepaid. 
 11. Parties in Interest. All the terms and provisions of this Agreement shall
be binding upon and inure to the benefit of and be enforceable by the respective successor and permitted assigns of the parties hereto, provided that this Agreement and the interests herein may not be assigned by either party without the express
written consent of the other party. 
 12. Governing Law. The laws of the State of Delaware shall govern the construction
of the terms and of this Agreement. 
 13. Sections and Other Headings. The section and other headings contained in this
Agreement are for the convenience of reference only, do not constitute part of this Agreement or otherwise affect any of the provision hereof. 

14. Counterpart Signatures. This Agreement may be signed in counterpart and all counterparts together shall become effective only
when the counterpart(s) have been executed and delivered by and on behalf of the Company and the Purchaser. 
 IN WITNESS
WHEREOF, intending to be legally bound, the parties hereto have caused this Agreement to be signed by their duly authorized offices. 
  

							
		 		 	Comprehensive Care Corporation, Inc.
				
		 		 	By:	 	 /s/ Giuseppe Crisafi

		 		 		 	Giuseppe Crisafi
		 		 		 	Chief Financial Officer
			
		 		 	Purchaser
				
		 		 	By:	 	 /s/ Howard Jenkins

			
		 		 	Print Name:      Howard Jenkins
				
	Address of Purchaser:	 		 		 	
			
	 On file
	 		 	Social Security No. or Tax I.D. No.:
	  
	 		 	 On File

	  
	 		 	

  

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