Document:

2006 Equity Incentive Plan

 Exhibit 10.2 
 VERIGY LTD. 
 2006
EQUITY INCENTIVE PLAN 
 (AS AMENDED
JANUARY 19, 2010) 

 TABLE OF CONTENTS 
  

					
	  	  	 	  	Page
	ARTICLE 1.	  	INTRODUCTION	  	1
			
	 ARTICLE 2.
	  	ADMINISTRATION	  	1
	 2.1
	  	Committee Composition	  	1
	 2.2
	  	Committee Responsibilities	  	1
	 2.3
	  	Administration with Respect to Substitute Awards	  	2
	 2.4
	  	Minimum Vesting Requirement	  	2
	 2.5
	  	Limited Exceptions to Vesting and Acceleration Limitations	  	2
			
	 ARTICLE 3.
	  	SHARES AVAILABLE FOR GRANTS	  	3
	 3.1
	  	Basic Limitation	  	3
	 3.2
	  	Shares Returned to Reserve	  	3
	 3.3
	  	Substitute Awards	  	3
	 3.4
	  	Dividend Equivalents	  	4
			
	 ARTICLE 4.
	  	ELIGIBILITY	  	4
	 4.1
	  	Incentive Stock Options	  	4
	 4.2
	  	Other Grants	  	4
			
	 ARTICLE 5.
	  	OPTIONS	  	4
	 5.1
	  	Option Agreement	  	4
	 5.2
	  	Number of Shares	  	4
	 5.3
	  	Exercise Price	  	4
	 5.4
	  	Exercisability and Term	  	5
	 5.5
	  	Effect of Change in Control	  	6
	 5.6
	  	Buyout Provisions	  	6
	 5.7
	  	Payment for Option Shares	  	6
			
	 ARTICLE 6.
	  	SHARE APPRECIATION RIGHTS	  	6
	 6.1
	  	SAR Agreement	  	6
	 6.2
	  	Number of Shares	  	6
	 6.3
	  	Exercise Price	  	7
	 6.4
	  	Exercisability and Term	  	7
	 6.5
	  	Effect of Change in Control	  	8
	 6.6
	  	Exercise of SARs	  	8
			
	 ARTICLE 7.
	  	RESTRICTED SHARES	  	8
	 7.1
	  	Restricted Share Agreement	  	8
	 7.2
	  	Number of Shares	  	8
	 7.3
	  	Payment for Awards	  	8
	 7.4
	  	Restrictions & Conditions	  	9
	 7.5
	  	Effect of Change in Control	  	9
	 7.6
	  	Voting and Dividend Rights	  	9
			
	 ARTICLE 8.
	  	SHARE UNITS	  	9
	 8.1
	  	Share Unit Agreement	  	9
	 8.2
	  	Number of Shares	  	9

  

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	 8.3
	  	Payment for Awards	  	9
	 8.4
	  	Vesting Conditions	  	9
	 8.5
	  	Effect of Change in Control	  	10
	 8.6
	  	Voting and Dividend Rights	  	10
	 8.7
	  	Form and Time of Settlement of Share Units	  	10
	 8.8
	  	Creditors’ Rights	  	11
			
	 ARTICLE 9.
	  	AUTOMATIC GRANTS TO OUTSIDE DIRECTORS	  	11
	 9.1
	  	Initial Grants	  	11
	 9.2
	  	Annual Grants	  	11
	 9.3
	  	Cessation of Eligibility to Vest	  	12
	 9.4
	  	Accelerated Exercisability	  	12
	 9.5
	  	Exercise Price	  	12
	 9.6
	  	Term	  	12
	 9.7
	  	Affiliates of Outside Directors	  	12
			
	 ARTICLE 10.
	  	PROTECTION AGAINST DILUTION	  	12
	 10.1
	  	Adjustments	  	12
	 10.2
	  	Dissolution or Liquidation	  	13
	 10.3
	  	Reorganizations	  	13
			
	 ARTICLE 11.
	  	PAYMENT OF DIRECTOR’S FEES IN SECURITIES	  	14
	 11.1
	  	Effective Date	  	14
	 11.2
	  	Elections to Receive NSOs, Restricted Shares or Share Units	  	14
	 11.3
	  	Number and Terms of NSOs, Restricted Shares or Share Units	  	14
			
	 ARTICLE 12.
	  	LIMITATION ON RIGHTS	  	14
	 12.1
	  	Retention Rights	  	14
	 12.2
	  	Shareholders’ Rights	  	15
	 12.3
	  	Regulatory Requirements	  	15
			
	 ARTICLE 13.
	  	WITHHOLDING TAXES	  	15
	 13.1
	  	General	  	15
	 13.2
	  	Share Withholding	  	15
			
	 ARTICLE 14.
	  	LIMITATION ON PAYMENTS	  	15
	 14.1
	  	Scope of Limitation	  	15
	 14.2
	  	Basic Rule	  	16
	 14.3
	  	Reduction of Payments	  	16
	 14.4
	  	Overpayments and Underpayments	  	16
	 14.5
	  	Related Corporations	  	17
			
	 ARTICLE 15.
	  	FUTURE OF THE PLAN	  	17
	 15.1
	  	Term of the Plan	  	17
	 15.2
	  	Amendment or Termination	  	17
	 15.3
	  	Shareholder Approval	  	17
			
	 ARTICLE 16.
	  	DEFINITIONS	  	17

  

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 VERIGY LTD. 
 2006 EQUITY INCENTIVE PLAN 
 ARTICLE 1. INTRODUCTION. 
 The purpose of the Plan is to promote the
long-term success of the Company and the creation of shareholder value by (a) encouraging Employees, Outside Directors and Consultants to focus on critical long-range objectives, (b) encouraging the attraction and retention of Employees,
Outside Directors and Consultants with exceptional qualifications and (c) linking Employees, Outside Directors and Consultants directly to shareholder interests through increased share ownership. The Plan seeks to achieve this purpose by
providing for Awards in the form of Options (which may constitute ISOs or NSOs), SARs, Restricted Shares or Share Units. 
 The
Plan shall be governed by, and construed in accordance with, the laws of the Republic of Singapore (except its choice-of-law provisions). 
 ARTICLE 2. ADMINISTRATION. 
 2.1 Committee Composition. The Committee shall administer the Plan. The
Committee shall consist exclusively of two or more directors of the Company, who shall be appointed by the Board. In addition, each member of the Committee shall meet the following requirements: 
 (a) Any listing standards prescribed by the principal securities market on which the Company’s equity securities are traded;

 (b) Such requirements as the Internal Revenue Service may establish for outside directors acting under plans intended to
qualify for exemption under section 162(m)(4)(C) of the Code; 
 (c) Such requirements as the Securities and Exchange
Commission may establish for administrators acting under plans intended to qualify for exemption under Rule 16b-3 (or its successor) under the Exchange Act; and 
 (d) Any other requirements imposed by applicable law, regulations or rules. 
 2.2 Committee Responsibilities. The Committee shall (a) select the Employees, Outside Directors and Consultants who are to receive Awards under the Plan, (b) determine the type, number, vesting requirements and other
features and conditions of such Awards, (c) interpret the Plan, (d) make all other decisions relating to the operation of the Plan and (e) carry out any other duties delegated to it by the Board. The Committee may adopt such rules or
guidelines as it deems appropriate to implement the Plan, including rules and procedures relating to the operation and administration of the Plan in order to accommodate the specific requirements of local laws and procedures. Without limiting the
generality of the foregoing, the 

 
Committee is specifically authorized to adopt (a) rules and procedures regarding the conversion of local currency, withholding procedures and handling of stock certificates that vary with
local requirements and (b) such sub-plans and Plan addenda as the Committee deems desirable to accommodate foreign tax laws, regulations and practice. The Committee’s determinations under the Plan shall be final and binding on all persons.

 2.3 Administration with Respect to Substitute Awards. Notwithstanding any other provision of this Plan, in connection
with issuing Substitute Awards, the Committee may provide that the Substitute Awards shall be subject to the terms and conditions of the plan and/or agreements under which the awards being assumed or substituted were originally issued, even where
such terms are in conflict or inconsistent with the terms of this Plan. 
 2.4 Minimum Vesting Requirement. All Awards
that vest based solely on the continuation of Service shall vest over a period of not less than three years and all Awards that vest on the basis of one or more performance criteria set forth in Appendix A shall vest over a period of not less
than one year. This Section 2.4 shall not apply to the following: 
 (a) An Award granted prior to December 2, 2009;

 (b) An automatic Award to an Outside Director under Article 9; and 
 (c) Awards falling within the limits on exceptions established by Section 2.5. 
 2.5 Limited Exceptions to Vesting and Acceleration Limitations. A reserve (the “Exceptions Share Reserve”) is
hereby established equal to the sum of (i) 10% of the Shares available for issuance under Article 3 as of December 2, 2009, plus (ii) 10% of any Shares added after December 2, 2009. 
 (a) Up to the Exceptions Share Reserve, the Committee may: 
 (b) issue Awards with vesting periods shorter than the minimum vesting requirements of Section 2.4; 
 (c) accelerate the vesting of Awards in connection with a voluntary severance incentive program or workforce management plan approved by the Board or a Committee as provided in Sections 5.4(d), 6.4(d) and
8.4(d); and 
 (d) accelerate the Vesting of Restricted Shares in connection with a voluntary severance incentive program or
workforce management plan approved by the Board or a Committee. 
 (e) The following additional provisions shall apply:

 (f) If Shares subject to an Award that was granted in reliance on Subsection (a)(i) of this Section 2.5 are
returned to the reserve pursuant to Section 3.2, then the number of Shares subject to such Award shall be added back to the Exceptions Share Reserve; 
  

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 (g) Any acceleration of vesting in connection with a voluntary severance incentive program
or workforce management plan approved by the Board or a Committee on or before December 2, 2009 shall not be subject to, and any Awards so accelerated shall not be deducted from, the Exceptions Share Reserve; 
 (h) Any acceleration of vesting in connection with a voluntary severance incentive program or workforce management plan approved by the
Board or a Committee on or after December 2, 2009 where the Awards, at the time of issuance, provided for partial or full acceleration of vesting in such circumstances, shall not be subject to, and any Awards so accelerated shall not be
deducted from, the Exceptions Share Reserve; and 
 (i) Any acceleration of vesting pursuant to any agreement between the
Company and any Participant that was entered into before December 2, 2009 shall not be subject to, and any Awards so accelerated shall not be deducted from, the Exceptions Share Reserve. 
 ARTICLE 3. SHARES AVAILABLE FOR GRANTS. 
 3.1 Basic Limitation. Shares issued pursuant to the Plan may be unissued shares or treasury shares. The aggregate number of Shares issued under the Plan shall not exceed (a) 13,300,000 plus
(b) the additional Shares described in Section 3.3. The number of Shares that are subject to Awards outstanding at any time under the Plan shall not exceed the number of Shares that then remain available for issuance under the Plan.
Notwithstanding any other provision of this Plan, the maximum number of Shares that may be issued upon the exercise of ISOs under this Plan is 13,300,000*. The limitations of this Section 3.1 shall be subject to adjustment pursuant to
Article 10. 
 3.2 Shares Returned to Reserve. If Options, SARs or Share Units (including Replacement Awards) are
forfeited or terminated for any other reason before being exercised or settled, then the Shares subject to such Options, SARs or Share Units shall again become available for issuance under the Plan. If SARs are exercised, then only the number of
Shares (if any) actually issued in settlement of such SARs shall reduce the number available under Section 3.1 and the balance shall again become available for issuance under the Plan. If Share Units are settled, then only the number of Shares
(if any) actually issued in settlement of such Share Units shall reduce the number available under Section 3.1 and the balance shall again become available for issuance under the Plan. 
 3.3 Substitute Awards. Except with respect to Substitute Awards issued with respect to awards previously issued by Agilent
Technologies, Inc., Substitute Awards shall not reduce the Shares authorized for issuance under the Plan or authorized for grant to a Participant in any calendar year. Additionally, in the event that a company acquired by the Company or any
Subsidiary, or with which the Company or any Subsidiary combines, has shares available under a pre-existing plan approved by shareholders and not adopted in contemplation of such acquisition or combination, the shares available for grant pursuant to
the terms of such pre-existing plan (as adjusted, to the extent appropriate, using the exchange ratio or other adjustment or valuation ratio or formula used in such acquisition or combination to determine the consideration payable to the 

 
  

	*	Includes 3,000,000 ordinary shares subject to shareholder approval at the 2010 Annual General Meeting of Shareholders. 

  

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holders of ordinary shares or common shares of the entities party to such acquisition or combination) may be used for Awards under the Plan and shall not reduce the Shares authorized for issuance
under the Plan; provided that Awards using such available Shares shall not be made after the date awards or grants could have been made under the terms of the pre-existing plan, absent the acquisition or combination, and shall only be made to
individuals who were employees, directors or consultants of such acquired or combined company before such acquisition or combination. 
 3.4 Dividend Equivalents. Any dividend equivalents paid or credited under the Plan shall be applied against the number of Shares that may be issued under the Plan if such dividend equivalents are converted into Share Units.

 ARTICLE 4. ELIGIBILITY. 
 4.1 Incentive Stock Options. Only Employees who are common-law employees of the Company, a Parent or a Subsidiary shall be eligible for the grant of ISOs. In addition, an Employee who owns more
than 10% of the total combined voting power of all classes of outstanding shares of the Company or any of its Parents or Subsidiaries shall not be eligible for the grant of an ISO unless the requirements set forth in section 422(c)(5) of
the Code are satisfied. 
 4.2 Other Grants. Only Employees, Outside Directors and Consultants shall be eligible for the
grant of Restricted Shares, Share Units, NSOs or SARs. 
 ARTICLE 5. OPTIONS. 
 5.1 Option Agreement. Each grant of an Option under the Plan shall be evidenced by an Option Agreement between the Optionee and the
Company. Such Option shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan. The Option Agreement shall specify whether the Option is an ISO or an NSO. The provisions of the
various Option Agreements entered into under the Plan need not be identical. 
 5.2 Number of Shares. Each Option
Agreement shall specify the number of Shares subject to the Option and shall provide for the adjustment of such number in accordance with Article 10. Options granted to any Optionee in a single fiscal year of the Company shall not cover more
than 750,000 Shares, except that Options granted to a new Employee in the fiscal year of the Company in which his or her Service as an Employee first commences shall not cover more than 1,500,000 Shares. The limitations set forth in the preceding
sentence shall be subject to adjustment in accordance with Article 10. 
 5.3 Exercise Price. Each Option Agreement
shall specify the Exercise Price; provided that the Exercise Price shall in no event be less than 100% of the Fair Market Value of a Share on the Date of Grant. Other than in connection with an event or transaction described in Article 10,
Options may not be repriced, replaced, regranted through cancellation or modified without shareholder approval if the effect of such repricing, replacement, regrant or modification would be to reduce the exercise price of such Options. 

 

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 5.4 Exercisability and Term. 
 (a) General. Each Option Agreement shall specify the date or event when all or any installment of the Option is to become exercisable,
subject to Section 2.4. The Option Agreement shall also specify the term of the Option; provided that the term of an ISO shall in no event exceed 10 years from the Date of Grant. Options may be awarded in combination with SARs, and such an
Award may provide that the Options will not be exercisable unless the related SARs are forfeited. 
 (b) Cessation of
Eligibility to Vest. Unless otherwise provided by the Option Agreement, if an Optionee ceases to be an Awardee Eligible to Vest, other than as a result of circumstances described in Subsection (c) or (d) below, such Optionee’s
Option shall terminate immediately as to the unvested Shares and such unvested Shares shall revert to the Plan, and such Optionee’s Option shall be exercisable as to the vested Shares for three months after the date such individual ceases to be
an Awardee Eligible to Vest or, if earlier, the expiration of the term of such Option. If, for any reason, the Optionee does not exercise his or her vested Option within the appropriate exercise period set forth above, the Option shall automatically
terminate, and the Shares covered by such Option shall revert to the Plan. 
 (c) Death, Disability or Retirement of
Optionee. Unless otherwise provided by the Option Agreement, if an Optionee ceases to be an Awardee Eligible to Vest as a result of the Optionee’s death, Disability, or Separation from Service after age 55 with at least 15 years of
full-time equivalent service with the Company or an affiliate (including service with the Company’s predecessor companies), then (i) the vested portion of such Optionee’s Option shall be determined by adding 12 months to the length of
his or her actual Service, (ii) such Optionee’s Option shall terminate immediately as to the unvested Shares and such unvested Shares shall revert to the Plan, and (iii) such Optionee’s Option shall be exercisable as to the
vested Shares for one year after the date such individual ceases to be an Awardee Eligible to Vest or, if earlier, the expiration of the term of such Option. Where an individual ceases to be an Awardee Eligible to Vest as a result of death, the
Option may be exercised by the beneficiary designated by the Optionee, the executor or administrator of the Optionee’s estate or, if none, by the person(s) entitled to exercise the Option under the Optionee’s will or the laws of descent or
distribution. If, for any reason, the Option is not so exercised within the time specified herein, the Option shall automatically terminate, and the Shares covered by such Option shall revert to the Plan. 
 (d) Voluntary Severance Incentive Program. If an Optionee ceases to be an Awardee Eligible to Vest as a result of participation in a
voluntary severance incentive program or workforce management plan approved by the Board or a Committee, unvested Options shall vest and Options shall remain exercisable, to the extent permitted under applicable laws and provided by the Board or a
Committee in such voluntary severance incentive program or workforce management plan. The total number of Options that may be accelerated pursuant to this Section 5.4(d) shall be subject to the limitations of Section 2.5. Absent a specific
provision for acceleration or extended exercise period, the provisions of Subsection (b) above shall apply. 
  

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 5.5 Effect of Change in Control. The Committee may determine, at the time of granting
an Option or thereafter, that such Option shall become exercisable as to all or part of the Shares subject to such Option if a Change in Control occurs with respect to the Company or if the Optionee’s Service is terminated without Cause after a
Change in Control. In addition, acceleration of exercisability may be required under Section 10.3. 
 5.6 Buyout
Provisions. The Committee may at any time (a) offer to buy out for a payment in cash or cash equivalents an Option previously granted or (b) authorize an Optionee to elect to cash out an Option previously granted, in either case at
such time and based upon such terms and conditions as the Committee shall establish. Prior to exercising its authority under this Section 5.6, the Company shall first obtain the approval of the shareholders for the intended buy-out of Options
or offer to Optionees of an election to cash out Options; provided, however, that shareholder approval will not be required with respect to offers, buy-outs or cash elections where the amount of purchase price or cash-out to be paid by the Company
does not exceed the intrinsic value of the Option being bought- or cashed-out, measured on or about the date of the buy-out or cash-out. For clarity, the “intrinsic value” means the Fair Market Value of the Shares subject to the Option,
minus the exercise price, multiplied by the number of Shares being bought- or cashed-out. 
 5.7 Payment for Option
Shares. 
 (a) General Rule. The entire Exercise Price of Shares issued upon exercise of Options shall be payable in
cash or cash equivalents at the time when such Shares are purchased, except that the Committee at its sole discretion may accept payment of the Exercise Price in any other form(s) described in this Section 5.7. However, if the Optionee is an
Outside Director or executive officer of the Company, he or she may pay the Exercise Price in a form other than cash or cash equivalents only to the extent permitted by section 13(k) of the Exchange Act. 
 (b) Exercise/Sale. With the Committee’s consent, all or any part of the Exercise Price and any withholding taxes may be paid by
delivering (in a manner prescribed by the Company) an irrevocable direction to a securities broker approved by the Company to sell all or part of the Shares being purchased under the Plan and to deliver all or part of the sales proceeds to the
Company. 
 (c) Other Forms of Payment. With the Committee’s consent, all or any part of the Exercise Price and any
withholding taxes may be paid in any other form that is consistent with applicable laws, regulations and rules. 
 ARTICLE 6. SHARE
APPRECIATION RIGHTS. 
 6.1 SAR Agreement. Each grant of a SAR under the Plan shall be evidenced by a SAR Agreement
between the Optionee and the Company. Such SAR shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan. The provisions of the various SAR Agreements entered into under the
Plan need not be identical. 
 6.2 Number of Shares. Each SAR Agreement shall specify the number of Shares to which the
SAR pertains and shall provide for the adjustment of such number in accordance with Article 10. SARs granted to any Optionee in a single fiscal year shall in no event pertain to more 
  

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than 750,000 Shares, except that SARs granted to a new Employee in the fiscal year of the Company in which his or her Service as an Employee first commences shall not pertain to more than
1,500,000 Shares. The limitations set forth in the preceding sentence shall be subject to adjustment in accordance with Article 10. 
 6.3 Exercise Price. Each SAR Agreement shall specify the Exercise Price; provided that the Exercise Price shall in no event be less than 100% of the Fair Market Value of a Share on the Date of
Grant. Other than in connection with an event or transaction described in Article 10, SARs may not be repriced, replaced, regranted through cancellation or modified without shareholder approval if the effect of such repricing, replacement,
regrant or modification would be to reduce the exercise price of such SARs. 
 6.4 Exercisability and Term. 

(a) General. Each SAR Agreement shall specify the date when all or any installment of the SAR is to become exercisable, subject to
Section 2.4. The SAR Agreement shall also specify the term of the SAR. SARs may be awarded in combination with Options, and such an Award may provide that the SARs will not be exercisable unless the related Options are forfeited. An SAR may be
included in an ISO only at the time of grant but may be included in an NSO at the time of grant or thereafter. An SAR granted under the Plan may provide that it will be exercisable only in the event of a Change in Control. 
 (b) Cessation of Eligibility to Vest. Unless otherwise provided by the SAR Agreement, if an Optionee ceases to be an Awardee Eligible
to Vest, other than as a result of circumstances described in Subsection (c) or (d) below, such Optionee’s SAR shall terminate immediately as to the unvested Shares and such unvested Shares shall revert to the Plan, and the SAR shall
be exercisable as to the vested Shares for three months after the date such individual ceases to be an Awardee Eligible to Vest or, if earlier, the expiration of the term of such SAR. If, for any reason, the Optionee does not exercise his or her
vested SARs within the appropriate exercise period set forth above, the SAR shall automatically terminate, and the Shares covered by such SAR shall revert to the Plan. 
 (c) Death, Disability or Retirement of Optionee. Unless otherwise provided by the SAR Agreement, if an Optionee ceases to be an Awardee Eligible to Vest as a result of the Optionee’s death,
Disability, or Separation from Service after age 55 with at least 15 years of full-time equivalent service with the Company or an affiliate (including service with the Company’s predecessor companies), then (i) the vested portion of such
Optionee’s SAR shall be determined by adding 12 months to the length of his or her actual Service, (ii) such Optionee’s SAR shall terminate immediately as to the unvested Shares and such unvested Shares shall revert to the Plan, and
(iii) such Optionee’s SAR shall be exercisable as to the vested Shares for one year after the date such individual ceases to be an Awardee Eligible to Vest or, if earlier, the expiration of the term of such SAR. Where an individual ceases
to be an Awardee Eligible to Vest as a result of death, the SAR may be exercised by the beneficiary designated by the Optionee, the executor or administrator of the Optionee’s estate or, if none, by the person(s) entitled to exercise the SAR
under the Optionee’s will or the laws of descent or distribution. If, for any reason, the SAR is not so exercised within the time specified herein, the SAR shall automatically terminate, and the Shares covered by such SAR shall revert to the
Plan. 
  

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 (d) Voluntary Severance Incentive Program. If an Optionee ceases to be an Awardee
Eligible to Vest as a result of participation in a voluntary severance incentive program or workforce management plan approved by the Board or a Committee, unvested SARs shall vest and SARs shall remain exercisable, to the extent permitted under
applicable laws and provided by the Board or a Committee in such voluntary severance incentive program or workforce management plan. The total number of SARs that may be accelerated pursuant to this Section 6.4(d) shall be subject to the
limitations of Section 2.5. Absent a specific provision for acceleration or extended exercise period, the provisions of Subsection (b) above shall apply. 
 6.5 Effect of Change in Control. The Committee may determine, at the time of granting a SAR or thereafter, that such SAR shall become exercisable as to all or part of the Shares subject to such SAR
if a Change in Control occurs with respect to the Company or if the Optionee’s Service is terminated without Cause after a Change in Control. In addition, acceleration of exercisability may be required under Section 10.3. 
 6.6 Exercise of SARs. Upon exercise of a SAR, the Optionee (or any person having the right to exercise the SAR after his or her
death) shall receive from the Company consideration in the form of (a) Shares, (b) cash or (c) a combination of Shares and cash, as the Committee shall determine. Each SAR Agreement shall specify the amount and/or Fair Market Value of
the consideration that the Optionee will receive upon exercising the SAR; provided that the aggregate consideration shall not exceed the amount by which the Fair Market Value (on the date of exercise) of the Shares subject to the SAR exceeds the
Exercise Price of the SAR. If, on the date when a SAR expires, the Exercise Price of the SAR is less than the Fair Market Value of the Shares subject to the SAR on such date but any portion of the SAR has not been exercised, then the SAR shall
automatically be deemed to be exercised as of such date with respect to such portion. An SAR Agreement may also provide for an automatic exercise of the SAR on an earlier date. 
 ARTICLE 7. RESTRICTED SHARES. 
 7.1 Restricted Share Agreement. Each
grant of Restricted Shares under the Plan shall be evidenced by a Restricted Share Agreement between the recipient and the Company. Such Restricted Shares shall be subject to all applicable terms of the Plan and may be subject to any other terms
that are not inconsistent with the Plan. The provisions of the various Restricted Share Agreements entered into under the Plan need not be identical. 
 7.2 Number of Shares. Each Restricted Share Agreement shall specify the number of Shares to which the Agreement pertains. 
 7.3 Payment for Awards. Restricted Shares may be sold or awarded under the Plan for such consideration as the Committee may
determine, including (without limitation) cash, cash equivalents, property, past services and future services. Within the limitations of the Plan, the Committee may accept the cancellation of outstanding options in return for the grant of Restricted
Shares. 
  

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 7.4 Restrictions & Conditions. The Committee may, at the time of granting
Restricted Shares, impose such conditions and restrictions on the Restricted Shares as it deems appropriate; provided, however, that: (a) Section 2.4 shall apply; (b) any acceleration of vesting, other than in the case of acceleration
of vesting in connection with death, Disability, retirement or Change in Control shall be subject to the limitations of Section 2.5, and (c) such conditions and restrictions may not result in the Company reacquiring from a Participant
Restricted Shares that have been issued. 
 7.5 Effect of Change in Control. The Committee may determine, at the time of
granting Restricted Shares or thereafter, that all or some of any restrictions imposed on such Restricted Shares shall be removed if a Change in Control occurs with respect to the Company or if the Participant’s Service is terminated without
Cause after a Change in Control. 
 7.6 Voting and Dividend Rights. The holders of Restricted Shares awarded under the
Plan shall have the same voting, dividend and other rights as the Company’s other shareholders. A Restricted Share Agreement, however, may require that the holders of Restricted Shares invest any cash dividends received in additional Restricted
Shares. Such additional Restricted Shares shall be subject to the same conditions and restrictions as the Award with respect to which the dividends were paid. 
 ARTICLE 8. SHARE UNITS. 
 8.1 Share Unit Agreement. Each grant of
Share Units under the Plan shall be evidenced by a Share Unit Agreement between the recipient and the Company. Such Share Units shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with
the Plan. The provisions of the various Share Unit Agreements entered into under the Plan need not be identical. 
 8.2
Number of Shares. Each Share Unit Agreement shall specify the number of Shares to which the Share Unit pertains and shall provide for the adjustment of such number in accordance with Article 10. Such number shall be subject to the
limitation of Section 8.4(a), if applicable. 
 8.3 Payment for Awards. To the extent that an Award is granted in
the form of Share Units, no cash consideration shall be required of the Award recipients. 
 8.4 Vesting Conditions.

 (a) General. Each Award of Share Units may or may not be subject to vesting, subject to Section 2.4. Vesting shall
occur, in full or in installments, upon satisfaction of the conditions specified in the Share Unit Award. The Committee may include among such conditions continued performance of Service and/or the requirement that the performance of the Company (or
a Subsidiary, Affiliate or business unit of the Company) for a specified period of not less than one fiscal year equal or exceed performance targets determined by the Committee. Such targets shall be based on one or more of the criteria set forth in
Appendix A, and shall be determined not later than the 90 days following commencement of the specified performance period. As to Awards with respect to which the Company desires to secure an exemption from section 162(m) of the Code, no
Participant shall receive more than 400,000 Share Units subject to performance-based vesting conditions in a single fiscal year, except that a new Employee may receive up to 800,000 Share Units subject to performance-based vesting conditions in
the fiscal year of the Company in which his or her Service as an Employee first commences. The limitations set forth in the preceding sentence shall be subject to adjustment in accordance with Article 10. 
  

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 (b) Cessation of Eligibility to Vest. Unless otherwise provided by the Share Unit
Award, if a Participant ceases to be an Awardee Eligible to Vest, other than as a result of circumstances described in Subsection (c) or (d) below, then all unvested Share Units subject to a Share Unit Agreement shall immediately be
forfeited and shall revert to the Plan. 
 (c) Death, Disability or Retirement of Participant. Unless otherwise provided
by the Share Unit Award, if a Participant ceases to be an Awardee Eligible to Vest as a result of the Participant’s death, Disability, or Separation from Service after age 55 with at least 15 years of full-time equivalent service with the
Company or an affiliate (including service with the Company’s predecessor companies), the provisions of Subsection (b) above will apply except that the vested portion of such Participant’s Share Unit Award shall be determined by
adding 12 months to the length of his or her actual Service. 
 (d) Voluntary Severance Incentive Program. If a
Participant ceases to be an Awardee Eligible to Vest as a result of participation in a voluntary severance incentive program or workforce management plan approved by the Board or a Committee, unvested Share Units shall vest to the extent permitted
under applicable laws and provided by the Board or a Committee in such voluntary severance incentive program or workforce management plan. The total number of Share Units that may be accelerated pursuant to this Section 8.4(d) shall be subject
to the limitations of Section 2.5. Absent a specific provision for acceleration, the provisions of Subsection (b) above shall apply. 
 8.5 Effect of Change in Control. The Committee may determine, at the time of granting Share Units or thereafter, that all or part of such Share Units shall become vested if a Change in Control
occurs with respect to the Company or if the Participant’s Service is terminated without Cause after a Change in Control. In addition, acceleration of vesting may be required under Section 10.3. 
 8.6 Voting and Dividend Rights. The holders of Share Units shall have no voting rights. Prior to settlement or forfeiture, any Share
Unit awarded under the Plan may, at the Committee’s discretion, carry with it a right to dividend equivalents. Such right entitles the holder to be credited with an amount equal to all cash dividends paid on one Share while the Share Unit is
outstanding. Dividend equivalents may be converted into additional Share Units. Settlement of dividend equivalents may be made in the form of cash, in the form of Shares, or in a combination of both. Prior to distribution, any dividend equivalents
that are not paid shall be subject to the same conditions and restrictions as the Share Units to which they attach. 
 8.7
Form and Time of Settlement of Share Units. Settlement of vested Share Units may be made in the form of (a) cash, (b) Shares or (c) any combination of both, as determined by the Committee. The actual number of Share Units eligible
for settlement may be larger or smaller than the number included in the original Award, based on predetermined performance factors. Methods of converting Share Units into cash may include (without limitation) a method based on the average Fair
Market Value of Shares over a series of trading days. Vested Share 
  

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Units may be settled in a lump sum or in installments. The distribution may occur or commence when all vesting conditions applicable to the Share Units have been satisfied or have lapsed, or it
may be deferred to any later date. The amount of a deferred distribution may be increased by an interest factor or by dividend equivalents. Until an Award of Share Units is settled, the number of such Share Units shall be subject to adjustment
pursuant to Article 10. 
 8.8 Creditors’ Rights. A holder of Share Units shall have no rights other than those
of a general creditor of the Company. Share Units represent an unfunded and unsecured obligation of the Company, subject to the terms and conditions of the applicable Share Unit Agreement. 
 ARTICLE 9. AUTOMATIC GRANTS TO OUTSIDE DIRECTORS. 
 9.1 Initial Grants. In connection with joining the Board, each Outside Director shall receive: 
 (a) A one-time grant of an NSO covering Shares with an Accounting Value of $120,000. Such NSO shall be granted on the date when such Outside Director first joins the Board, and shall vest and become
exercisable on the first anniversary of the Date of Grant; and 
 (b) A one-time grant of Share Units with an Accounting Value
of $120,000. Such Share Units shall be granted on the date when such Outside Director first joins the Board and shall vest on the first anniversary of the Date of Grant. Settlement of vested Share Units shall be made in a lump sum on the third
anniversary of the Date of Grant unless deferred to a later date. Such lump sum shall consist of a number of Shares equal to the number of vested Share Units. 
 An Outside Director who was previously an Employee shall not receive grants under this Section 9.1. 
 9.2 Annual Grants. Upon the conclusion of each regular annual meeting of the Company’s shareholders, each Outside Director who will continue serving as a member of the Board thereafter shall
receive: 
 (a) A grant of an NSO covering Shares with an Accounting Value of $60,000. Such NSO shall vest and become
exercisable quarterly over a period of four quarters from the Date of Grant; and 
 (b) A grant of Share Units with an
Accounting Value of $60,000. Such Share Units shall vest in four equal quarterly installments over a period of four quarters from the Date of Grant. Settlement of vested Share Units shall be made in a lump sum on the third anniversary of the Date of
Grant, unless deferred to a later date. Such lump sum shall consist of a number of Shares equal to the number of vested Share Units. 
 Notwithstanding the foregoing, no grants shall be made pursuant to this Section 9.2 in the calendar year in which the same Outside Director received grants described in Section 9.1. An Outside Director who previously was an
Employee shall be eligible to receive grants under this Section 9.2. 
  

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 9.3 Cessation of Eligibility to Vest. Unless otherwise provided by the Award
Agreement, if an Outside Director’s Service terminates prior to the vesting date specified in such agreement other than as a result of circumstances described in Section 9.4 below, then such Director’s unvested Award shall immediately
be forfeited and such unvested Shares shall revert to the Plan. 
 9.4 Accelerated Exercisability. All Awards granted to
an Outside Director under this Article 9 shall also become exercisable in full, and Restricted Shares and Share Units shall be distributed, in the event that: 
 (a) Such Outside Director’s Service terminates because of death, Disability, or retirement at or after age 65; 
 (b) The Company is subject to a Change in Control before such Outside Director’s Service terminates; or 
 (c) As otherwise required by Section 10.3. 
 9.5 Exercise Price. The
Exercise Price under all NSOs granted to an Outside Director under this Article 9 shall be equal to 100% of the Fair Market Value of a Share on the Date of Grant, payable in one of the forms described in Section 5.7(a), (b) or (c).

 9.6 Term. The Option Agreement shall specify the term of the option, which shall not exceed 5 years from the Date of
Grant. Each NSO granted to an Outside Director under this Article 9 shall terminate on the earlier of (a) the expiration of the term of such option or (b) the date 36 months after the termination of such Outside Director’s
Service for any reason. 
 9.7 Affiliates of Outside Directors. The Committee may provide that the NSOs that otherwise
would be granted to an Outside Director under this Article 9 shall instead be granted to an affiliate of such Outside Director. Such affiliate shall then be deemed to be an Outside Director for purposes of the Plan, provided that the
Service-related vesting and termination provisions pertaining to the NSOs shall be applied with regard to the Service of the Outside Director. 
 ARTICLE 10. PROTECTION AGAINST DILUTION. 
 10.1 Adjustments. In the event of a subdivision of the
outstanding Shares, a declaration of a dividend payable in Shares or a combination or consolidation of the outstanding Shares (by reclassification or otherwise) into a lesser number of Shares, corresponding adjustments shall automatically be made in
each of the following: 
 (a) The number of Options, SARs, Restricted Shares and Share Units available for future Awards under
Article 3; 
 (b) The limitations set forth in Sections 2.5, 5.2, 6.2, 7.2 and 8.4(a); 
 (c) The number of Shares covered by each outstanding Option and SAR; 
  

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 (d) The Exercise Price under each outstanding Option and SAR; or 
 (e) The number of Share Units included in any prior Award that has not yet been settled. 
 In the event of a declaration of a dividend payable in a form other than Shares in an amount that has a material effect on the price of Shares, a
recapitalization, a spin-off or a similar occurrence, the Committee shall make such adjustments as it, in its sole discretion, deems appropriate in one or more of the foregoing. Except as provided in this Article 10, a Participant shall have no
rights by reason of any issuance by the Company of shares of any class or securities convertible into shares of any class, any subdivision or consolidation of shares of any class, the payment of any share dividend or any other increase or decrease
in the number of shares of any class. 
 10.2 Dissolution or Liquidation. To the extent not previously exercised or
settled, Options, SARs and Share Units shall terminate immediately prior to the dissolution or liquidation of the Company. 
 10.3 Reorganizations. In the event that the Company is a party to a merger, consolidation or amalgamation, all outstanding Awards shall be subject to the agreement of merger, consolidation or amalgamation. Such agreement shall
provide for one or more of the following: 
 (a) The continuation of such outstanding Awards by the Company (if the Company is
the surviving corporation). 
 (b) The assumption of such outstanding Awards by the surviving corporation or its parent,
provided that the assumption of Options or SARs shall comply with sections 409A and 424(a) of the Code (whether or not the Options are ISOs). 
 (c) The substitution by the surviving corporation or its parent of new awards for such outstanding Awards, provided that the substitution of Options or SARs shall comply with sections 409A
and 424(a) of the Code (whether or not the Options are ISOs). 
 (d) Full exercisability of outstanding Options and SARs
and full vesting of the Shares subject to such Options and SARs, followed by the cancellation of such Options and SARs. The full exercisability of such Options and SARs and full vesting of such Shares may be contingent on the closing of such merger,
consolidation or amalgamation. The Optionees shall be able to exercise such Options and SARs during a period of not less than five full business days preceding the closing date of such merger, consolidation or amalgamation, unless (i) a shorter
period is required to permit a timely closing of such merger, consolidation or amalgamation and (ii) such shorter period still offers the Optionees a reasonable opportunity to exercise such Options and SARs. Any exercise of such Options and
SARs during such period may be contingent on the closing of such merger, consolidation or amalgamation. 
 (e) The cancellation
of outstanding Options and SARs and a payment to the Optionees equal to the excess of (i) the Fair Market Value of the Shares subject to such Options and SARs (whether or not such Options and SARs are then exercisable or such Shares are then
vested) as of the closing date of such merger, consolidation or amalgamation over (ii) their

  

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Exercise Price. Such payment shall be made in the form of cash, cash equivalents, or securities of the surviving corporation or its parent with a Fair Market Value equal to the required amount.
Such payment may be made in installments and may be deferred until the date or dates when such Options and SARs would have become exercisable or such Shares would have vested. Such payment may be subject to vesting based on the Optionee’s
continuing Service, provided that the vesting schedule shall not be less favorable to the Optionee than the schedule under which such Options and SARs would have become exercisable or such Shares would have vested. If the Exercise Price of the
Shares subject to such Options and SARs exceeds the Fair Market Value of such Shares, then such Options and SARs may be cancelled without making a payment to the Optionees. For purposes of this Subsection (e), the Fair Market Value of any
security shall be determined without regard to any vesting conditions that may apply to such security. 
 (f) The cancellation
of outstanding Share Units and a payment to the Participants equal to the Fair Market Value of the Shares subject to such Share Units (whether or not such Share Units are then vested) as of the closing date of such merger, consolidation or
amalgamation. Such payment shall be made in the form of cash, cash equivalents, or securities of the surviving corporation or its parent with a Fair Market Value equal to the required amount. Such payment may be made in installments and may be
deferred until the date or dates when such Share Units would have vested. Such payment may be subject to vesting based on the Participant’s continuing Service, provided that the vesting schedule shall not be less favorable to the Participant
than the schedule under which such Share Units would have vested. For purposes of this Subsection (f), the Fair Market Value of any security shall be determined without regard to any vesting conditions that may apply to such security.

 ARTICLE 11. PAYMENT OF DIRECTOR’S FEES IN SECURITIES. 
 11.1 Effective Date. No provision of this Article 11 shall be effective unless and until the Board has determined to implement
such provision. 
 11.2 Elections to Receive NSOs, Restricted Shares or Share Units. An Outside Director may elect to
receive his or her annual retainer payments and/or meeting fees from the Company in the form of cash, NSOs, Restricted Shares or Share Units, or a combination thereof, as determined by the Board. Such NSOs, Restricted Shares and Share Units shall be
issued under the Plan. An election under this Article 11 shall be filed with the Company on the prescribed form. 
 11.3
Number and Terms of NSOs, Restricted Shares or Share Units. The number of NSOs, Restricted Shares or Share Units to be granted to Outside Directors in lieu of annual retainers and meeting fees that would otherwise be paid in cash shall be
calculated in a manner determined by the Board. The Board shall also determine the terms of such NSOs, Restricted Shares or Share Units. 
 ARTICLE 12. LIMITATION ON RIGHTS. 
 12.1 Retention Rights. Neither the Plan nor any Award granted under
the Plan shall be deemed to give any individual a right to remain an Employee, Outside Director or Consultant. 
  

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The Company and its Parents, Subsidiaries and Affiliates reserve the right to terminate the Service of any Employee, Outside Director or Consultant at any time, with or without cause, subject to
applicable laws, the Company’s Articles of Association and a written employment agreement (if any). 
 12.2
Shareholders’ Rights. A Participant shall have no dividend rights, voting rights or other rights as a shareholder with respect to any Shares covered by his or her Award prior to the time when such Shares are issued. No adjustment shall be
made for cash dividends or other rights for which the record date is prior to such time, except as expressly provided in the Plan. 
 12.3 Regulatory Requirements. Any other provision of the Plan notwithstanding, the obligation of the Company to issue Shares under the Plan shall be subject to all applicable laws, rules and regulations and such approval by any
regulatory body as may be required. The Company reserves the right to restrict, in whole or in part, the delivery of Shares pursuant to any Award prior to the satisfaction of all legal requirements relating to the issuance of such Shares, to their
registration, qualification or listing or to an exemption from registration, qualification or listing. 
 ARTICLE 13. WITHHOLDING TAXES.

 13.1 General. To the extent required by applicable federal, state, local or foreign law, a Participant or his or her
successor shall make arrangements satisfactory to the Company for the satisfaction of any withholding tax obligations that arise in connection with the Plan. The Company shall not be required to issue any Shares or make any cash payment under the
Plan until such obligations are satisfied. 
 13.2 Share Withholding. To the extent that applicable law subjects a
Participant to tax withholding obligations, the Committee may permit such Participant to satisfy all or part of such obligations by having the Company withhold all or a portion of any Shares that otherwise would be issued to him or her Such Shares
shall be valued at their Fair Market Value on the date when they are withheld. 
 ARTICLE 14. LIMITATION ON PAYMENTS. 
 14.1 Scope of Limitation. This Article 14 shall apply to an Award only if: 
 (a) The independent auditors selected for this purpose by the Committee (the “Auditors”) determine that the after-tax value of
such Award to the Participant, taking into account the effect of all federal, state and local income taxes, employment taxes and excise taxes applicable to the Participant (including the excise tax under section 4999 of the Code), will be
greater after the application of this Article 14 than it was before the application of this Article 14; or 
 (b) The
Committee, at the time of making an Award under the Plan or at any time thereafter, specifies in writing that such Award shall be subject to this Article 14 (regardless of the after-tax value of such Award to the Participant). 
  

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 If this Article 14 applies to an Award, it shall supersede any contrary provision of the Plan or of any
Award granted under the Plan. 
 14.2 Basic Rule. In the event that the Auditors determine that any payment or transfer
by the Company under the Plan to or for the benefit of a Participant (a “Payment”) would be nondeductible by the Company for federal income tax purposes because of the provisions concerning “excess parachute payments” in
section 280G of the Code, then the aggregate present value of all Payments shall be reduced (but not below zero) to the Reduced Amount. For purposes of this Article 14, the “Reduced Amount” shall be the amount, expressed as a
present value, which maximizes the aggregate present value of the Payments without causing any Payment to be nondeductible by the Company because of section 280G of the Code. 
 14.3 Reduction of Payments. If the Auditors determine that any Payment would be nondeductible by the Company because of
section 280G of the Code, then the Company shall promptly give the Participant notice to that effect and a copy of the detailed calculation thereof and of the Reduced Amount, and the Participant may then elect, in his or her sole discretion,
which and how much of the Payments shall be eliminated or reduced (as long as after such election the aggregate present value of the Payments equals the Reduced Amount) and shall advise the Company in writing of his or her election within
10 days of receipt of notice. If no such election is made by the Participant within such 10-day period, then the Company may elect which and how much of the Payments shall be eliminated or reduced (as long as after such election the aggregate
present value of the Payments equals the Reduced Amount) and shall notify the Participant promptly of such election. For purposes of this Article 14, present value shall be determined in accordance with section 280G(d)(4) of the Code. All
determinations made by the Auditors under this Article 14 shall be binding upon the Company and the Participant and shall be made within 60 days of the date when a Payment becomes payable or transferable. As promptly as practicable
following such determination and the elections hereunder, the Company shall pay or transfer to or for the benefit of the Participant such amounts as are then due to him or her under the Plan and shall promptly pay or transfer to or for the benefit
of the Participant in the future such amounts as become due to him or her under the Plan. 
 14.4 Overpayments and
Underpayments. As a result of uncertainty in the application of section 280G of the Code at the time of an initial determination by the Auditors hereunder, it is possible that Payments will have been made by the Company which should not
have been made (an “Overpayment”) or that additional Payments which will not have been made by the Company could have been made (an “Underpayment”), consistent in each case with the calculation of the Reduced Amount hereunder. In
the event that the Auditors, based upon the assertion of a deficiency by the Internal Revenue Service against the Company or the Participant that the Auditors believe has a high probability of success, determine that an Overpayment has been made,
such Overpayment shall be treated for all purposes as a loan to the Participant that he or she shall repay to the Company, together with interest at the applicable federal rate provided in section 7872(f)(2) of the Code; provided, however, that
no amount shall be payable by the Participant to the Company if and to the extent that such payment would not reduce the amount that is subject to taxation under section 4999 of the Code. In the event that the Auditors determine that an
Underpayment has occurred, such Underpayment shall promptly be paid or transferred by the Company to or for the benefit of the Participant, together with interest at the applicable federal rate provided in section 7872(f)(2) of the Code.

  

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 14.5 Related Corporations. For purposes of this Article 14, the term
“Company” shall include affiliated corporations to the extent determined by the Auditors in accordance with section 280G(d)(5) of the Code. 
 ARTICLE 15. FUTURE OF THE PLAN. 
 15.1 Term of the Plan. The Plan
shall remain in effect until the earlier of (a) the date when the Plan is terminated under Section 15.2 or (b) June 6, 2016. 
 15.2 Amendment or Termination. The Board may, at any time and for any reason, amend or terminate the Plan. No Awards shall be granted under the Plan after the termination thereof. The termination
of the Plan, or any amendment thereof, shall not affect any Award previously granted under the Plan. 
 15.3 Shareholder
Approval. An amendment of the Plan shall be subject to the approval of the Company’s shareholders only to the extent required by applicable laws, regulations or rules. The Company may, but is not required to, seek the approval (or
re-approval) of the Company’s shareholders of the performance criteria set forth in Appendix A to the extent, and at such frequencies, as may be necessary to provide the full tax deductibility of performance-based Awards in accordance with
Section 162(m) of the Code. 
 ARTICLE 16. DEFINITIONS. 
 16.1 “Awardee Eligible to Vest” means a Participant who is in active service with the Company or a Subsidiary or Affiliate
(or who is on an approved leave of absence or taking vacation or otherwise approved flexible time off (“FTO”) in accordance with the Company’s FTO policy) on the vesting date fixed in the Award Agreement, subject to the exceptions
provided in Articles 5, 7, 8 and 9. With the exception of an individual who is on an approved leave of absence or taking FTO, in no event shall an individual be considered an Awardee Eligible to Vest if and at the time the individual
ceases or has ceased to perform job duties for which he or she is compensated directly by the Company or a Subsidiary or Affiliate. The foregoing shall be true in the event that the individual, prior to ceasing to perform job duties for which he or
she is compensated directly by the Company or a Subsidiary or Affiliate, received or provided notice of termination (irrespective of any notice period or similar period prescribed under the laws of a jurisdiction outside the United States) whether
such notice of termination or transfer is lawful or unlawful under applicable employment law or is in breach of an employment contract. Continued affiliation or relationship with the Company or a Subsidiary or Affiliate pursuant to a statutory or
contractual notice period shall not constitute continuation of an individual’s status as an Awardee Eligible to Vest. In accordance with the definition above, status as an Awardee Eligible to Vest will always cease upon termination of
employment with the Company or a Subsidiary or Affiliate except as provided in Articles 5, 7, 8 and 9. 
 16.2
“Accounting Value” means, with respect to an Award, a value calculated using the same methodology as was applied by the Company for purposes of determining the accounting charge associated with similar Awards for the fiscal period
immediately preceding the date on which the subject Award is granted. 
  

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 16.3 “Affiliate” means any entity other than a Subsidiary, if the Company
and/or one or more Subsidiaries own not less than 50% of such entity. 
 16.4 “Award” means any award of an
Option, a SAR, a Restricted Share or a Share Unit under the Plan. 
 16.5 “Board” means the Company’s
Board of Directors, as constituted from time to time. 
 16.6 “Cause” means: 
 (a) An unauthorized use or disclosure by the Participant of the Company’s confidential information or trade secrets, which use or
disclosure causes material harm to the Company; 
 (b) A material breach by the Participant of any agreement between the
Participant and the Company; 
 (c) A material failure by the Participant to comply with the Company’s written policies or
rules; 
 (d) The Participant’s conviction of, or plea of “guilty” or “no contest” to, a felony under
the laws of the United States or any State thereof or the equivalent under the applicable laws outside of the United States; 
 (e) The Participant’s gross negligence or willful misconduct; 
 (f) A continuing failure by the Participant to
perform assigned duties after receiving written notification of such failure; or 
 (g) A failure by the Participant to
cooperate in good faith with a governmental or internal investigation of the Company or its directors, officers or employees, if the Company has requested the Participant’s cooperation. 
 16.7 “Change in Control” means: 
 (a) The consummation of a merger, consolidation or amalgamation of the Company with or into another entity or any other corporate reorganization, if persons who were not shareholders of the Company
immediately prior to such merger, consolidation, amalgamation or other reorganization own immediately after such merger, consolidation, amalgamation or other reorganization 50% or more of the voting power of the outstanding securities of each of
(i) the continuing or surviving entity and (ii) any direct or indirect parent corporation of such continuing or surviving entity; 
 (b) The sale, transfer or other disposition of all or substantially all of the Company’s assets; 
  

 - 18 - 

 (c) A change in the composition of the Board, as a result of which fewer than 50% of the
incumbent directors are directors who either: 
 (i) Had been directors of the Company on the date 24 months prior to the date
of such change in the composition of the Board (the “Original Directors”); or 
 (ii) Were appointed to the Board, or
nominated for election to the Board, with the affirmative votes of at least a majority of the aggregate of (A) the Original Directors who were in office at the time of their appointment or nomination and (B) the directors whose appointment
or nomination was previously approved in a manner consistent with this Paragraph (ii); or 
 (d) Any transaction as a
result of which any person is the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing at least 30% of the total voting power represented by the
Company’s then outstanding voting securities. For purposes of this Subsection (d), the term “person” shall have the same meaning as when used in sections 13(d) and 14(d) of the Exchange Act but shall exclude (i) a
trustee or other fiduciary holding securities under an employee benefit plan of the Company or of a Parent or Subsidiary and (ii) a corporation owned directly or indirectly by the shareholders of the Company in substantially the same
proportions as their ownership of Shares. 
 A transaction shall not constitute a Change in Control if its sole purpose is to change the
jurisdiction of the Company’s incorporation or to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction. 
 16.8 “Code” means the U.S. Internal Revenue Code of 1986, as amended. 
 16.9 “Committee” means a committee of the Board, as described in Article 2. 
 16.10 “Company” means Verigy Ltd., a Singapore corporation. 
 16.11 “Consultant” means a consultant or adviser who provides bona fide services to the Company, a Parent, a Subsidiary or
an Affiliate as an independent contractor. 
 16.12 “Date of Grant” means the latest of: (a) the date on
which the Committee determines that the Option or SAR shall be granted; (b) the date on which the Optionee’s Service commences; or (c) the date on which all material terms of the Option or SAR, including (without limitation) the
Exercise Price, are ascertainable; provided, however, that with respect to automatic awards to Outside Directors, “Date of Grant” means the date of such automatic award as provided in the applicable provision of this Plan. 
 16.13 “Disability” means that the Participant is unable to engage in any substantial gainful activity by reason of any
medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months. 
  

 - 19 - 

 16.14 “Employee” means a full time or part time employee of the Company or
any Subsidiary or Affiliate, including officers and Directors, who is treated as an employee in the personnel records of the Company or a Subsidiary or Affiliate for the relevant period, but shall exclude individuals who are classified by the
Company or a Subsidiary or Affiliate as (a) leased from or otherwise employed by a third party, (b) independent contractors or (c) intermittent or temporary, even if any such classification is changed retroactively as a result of an
audit, litigation or otherwise. A Participant shall not cease to be an Employee in the case of (i) any vacation or sick time or otherwise approved FTO in accordance with the Company’s (or a Subsidiary’s or Affiliate’s) FTO policy
or (ii) transfers between locations of the Company or between the Company and/or any Subsidiary or Affiliate. Neither service as a Director nor payment of a director’s fee by the Company shall be sufficient to constitute
“employment” by the Company. 
 16.15 “Exchange Act” means the U.S. Securities Exchange Act of 1934,
as amended. 
 16.16 “Exercise Price,” in the case of an Option, means the amount for which one Share may be
purchased upon exercise of such Option, as specified in the applicable Option Agreement. “Exercise Price,” in the case of a SAR, means an amount, as specified in the applicable SAR Agreement, which is subtracted from the Fair Market
Value of one Share in determining the amount payable upon exercise of such SAR. 
 16.17 “Fair Market Value”
means the market price of Shares, determined by the Committee as follows: 
 (a) If the Shares are traded on Nasdaq or on a
stock exchange, then the Fair Market Value shall be equal to the last sale price of the Shares on such market or exchange as of the date in question or, if the market or exchange was closed on the date in question, then the Fair Market Value will be
equal to the last sale price on the last trading day immediately preceding the day in question. If the Shares are traded on more than one market or exchange, then the Fair Market Value shall be determined by reference to the primary market or
exchange where the Shares trade. 
 (b) If foregoing provisions are not applicable, then the Committee shall determine the Fair
Market Value in good faith on such basis as it deems appropriate. Such determination shall be conclusive and binding on all persons. 
 16.18 “ISO” means an incentive stock option described in section 422(b) of the Code. 
 16.19
“NSO” means a share option not described in sections 422 or 423 of the Code. 
 16.20
“Option” means an ISO or NSO granted under the Plan and entitling the holder to purchase Shares. 
 16.21
“Option Agreement” means the agreement between the Company and an Optionee that contains the terms, conditions and restrictions pertaining to his or her Option. 
  

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 16.22 “Optionee” means an individual or estate that holds an Option or SAR.

 16.23 “Outside Director” means a member of the Board who is not an Employee. 
 16.24 “Parent” means any corporation (other than the Company) in an unbroken chain of corporations ending with the Company,
if each of the corporations other than the Company owns shares possessing 50% or more of the total combined voting power of all classes of shares in one of the other corporations in such chain. A corporation that attains the status of a Parent on a
date after the adoption of the Plan shall be considered a Parent commencing as of such date. 
 16.25
“Participant” means an individual or estate that holds an Award. 
 16.26 “Plan” means this
Verigy Ltd. 2006 Equity Incentive Plan, as amended from time to time. 
 16.27 “Replacement Awards” means
Awards granted or Shares issued by the Company in the conversion, assumption, substitution, or exchange of awards previously granted under the Agilent Technologies, Inc. 1999 Stock Plan or the Agilent Technologies, Inc. 1999 Non-employee Director
Stock Plan. 
 16.28 “Restricted Share” means a Share awarded under the Plan. 
 16.29 “Restricted Share Agreement” means the agreement between the Company and the recipient of a Restricted Share that
contains the terms, conditions and restrictions pertaining to such Restricted Share. 
 16.30 “SAR” means a
share appreciation right granted under the Plan. 
 16.31 “SAR Agreement” means the agreement between the
Company and an Optionee that contains the terms, conditions and restrictions pertaining to his or her SAR. 
 16.32
“Separation from Service” shall have the meaning set forth in the regulations under Section 409A of the Code. 
 16.33 “Service” means service as an Employee, Outside Director or Consultant. 
 16.34
“Shares” means the Ordinary Shares of the Company. 
 16.35 “Share Unit” means a bookkeeping
entry representing the equivalent of one Share, as awarded under the Plan. 
 16.36 “Share Unit Agreement”
means the agreement between the Company and the recipient of a Share Unit that contains the terms, conditions and restrictions pertaining to such Share Unit. 
  

 - 21 - 

 16.37 “Subsidiary” means any corporation (other than the Company) in an
unbroken chain of corporations beginning with the Company, if each of the corporations other than the last corporation in the unbroken chain owns shares possessing more than 50% of the total combined voting power of all classes of shares in one of
the other corporations in such chain. A corporation that attains the status of a Subsidiary on a date after the adoption of the Plan shall be considered a Subsidiary commencing as of such date. 
 16.38 “Substitute Awards” means: 
 (a) Awards granted or Shares issued by the Company in assumption of, or in substitution or exchange for, awards previously granted by: (i) a company acquired by the Company; (ii) a company
acquired by any Subsidiary; or (iii) a company with which the Company or any Subsidiary combines; and 
 (b) Awards granted
or Shares issued by the Company in assumption of, or in substitution or exchange for, awards previously granted by Agilent Technologies, Inc. 
  

 - 22 - 

 Adoption and Amendment History: 
  

			
	 Action
	  	 Date

	Adopted by the Board of Directors:	  	June 7, 2006
		
	Approved by the sole shareholder:	  	June 7, 2006
		
	Amended by the Board of Directors to revise definition of “Fair Market Value” (Section 16.16)	  	August 29, 2006
		
	Amended by the Board of Directors to add definition of Date of Grant (Section 16.12)	  	December 13, 2006
		
	Amended by the Board of Directors to modify Outside Director Awards (Article 9) and miscellaneous technical amendments	  	April 14, 2008
		
	Outside Director Award amendments approved by Shareholders	  	April 15, 2008
		
	Amended by the Board of Directors to increase the number of reserved shares, eliminate the secondary committee and require minimum vesting	  	December 2, 2009
		
	Amended by the Board of Directors to establish the Exceptions Share Reserve (Section 2.5) and related changes and to limit option buy backs (Section 5.6)	  	January 19, 2009
		
	Increase in share reserve approved by the shareholders	  	[            *            
]

  
  

	*	Subject to shareholder approval at the 2010 Annual General Meeting of Shareholders. 

  

 - 23 - 

 APPENDIX A 
 PERFORMANCE CRITERIA FOR AWARDS 
 The Committee may apply any one or more of the following performance criteria, individually, alternatively or in any combination, either to
the Company as a whole or to a business unit, Subsidiary or Affiliate, measured annually, quarterly or cumulatively over a period of years, either on an absolute basis or relative to a pre-established target, with respect to previous years’
results or a designated comparison group, in each case as specified by the Committee: (i) cash flow (before or after dividends), (ii) earnings per share (including earnings before interest, taxes, depreciation and amortization),
(iii) share price, (iv) return on equity, (v) total shareholder return, (vi) return on capital (including return on total capital or return on invested capital), (vii) return on assets or net assets, (viii) market
capitalization, (ix) economic value added, (x) debt leverage (debt to capital), (xi) revenue or net revenue, (xii) income or net income, (xiii) operating income, (xiv) operating profit or net operating profit,
(xv) operating margin or profit margin, (xvi) return on operating revenue, (xvii) cash from operations, (xviii) operating ratio, (xix) operating revenue, (xx) customer satisfaction measures, (xxi) net order
dollars, (xxii) guaranteed efficiency measures; (xxiii) service agreement renewal rates; (xxiv) service revenues as a percentage of product revenues, either with respect to one or more particular transactions or with respect to
revenues as a whole; or (xxv) individual performance. To the extent consistent with section 162(m) of the Code, the Committee may appropriately adjust any evaluation of performance under a performance criterion to exclude any of the
following events that occurs during a performance period: (i) asset write-downs, (ii) litigation, claims, judgments or settlements, (iii) the effect of changes in tax law, accounting principles or other such laws or provisions
affecting reported results, (iv) accruals for reorganization and restructuring programs and (v) any extraordinary, unusual or non-recurring items. 
  

 - 24 -Securities Purchase Agreement

 Exhibit 10.116 
 CORTEX PHARMACEUTICALS, INC. 
 SECURITIES PURCHASE
AGREEMENT 
 This Securities Purchase Agreement (the “Agreement”) is entered into as of January 15,
2010 (the “Effective Date”), between Cortex Pharmaceuticals, Inc., a Delaware corporation (the “Company”), and Samyang Optics Co., Ltd., a South Korean corporation (the “Purchaser”). 
 R E C I T A L S: 
 A. The Company proposes to borrow an aggregate sum of One Million Five Hundred Thousand Dollars (US$1,500,000) from the Purchaser in exchange for the issuance of a convertible promissory note in the form
attached hereto as Exhibit A (the “Note”), in accordance with the terms and conditions of the Agreement. 
 B. The Company also proposes to issue and sell related warrants to purchase shares of common stock of the Company, with a par value of US$0.001 per share (the “Shares”), in the form attached hereto as Exhibit B (the
“Warrants”), and the Purchaser wishes to purchase the Warrants, in accordance with the terms and conditions of the Agreement. 
 A G R E E M E N T: 
 NOW, THEREFORE, for good and valuable
consideration, receipt of which is hereby acknowledged, the parties agree as follows: 
 1. Issuance of
the Note. The Company hereby agrees to issue and deliver to the Purchaser, and the Purchaser agrees to purchase from the Company, the Note on the terms and conditions included herein. The closing of the purchase and sale of the Note contemplated
hereunder (the “Closing”) shall be held as of the same date herewith or at such other time upon which the Company and the Purchaser shall mutually agree (the “Closing Date”); provided, however, that to
the extent that the Company has not received the Purchase Price on or prior to the third (3rd) Business Day (as defined in Section 9(g) below) following the Effective Date, unless the Company otherwise expressly agrees in writing, this Agreement shall automatically terminate without
penalty to the Company. On the Closing Date, the Company shall have received from the Purchaser via wire transfer an amount equal to One Million Five Hundred Thousand Dollars (US$1,500,000) (the “Purchase Price”) and the Company
will issue and deliver to the Purchaser the Note. 
 2. Issuance of Warrants. Upon the date of and subject to the
conversion of the Note in accordance with its terms, the Purchaser shall be issued Warrants to purchase a number of Shares equal to forty percent (40%) of the total number of Shares issued to the Purchaser upon conversion of the outstanding
principal due under the Note (assuming for purposes of such calculation that all outstanding principal due under the Note on the Maturity Date (as defined in the Note) is converted into Shares). The initial exercise price of the Warrants shall be an
amount per Share equal to one hundred forty percent (140%) of the greater of (y) $0.134 (subject to adjustment for stock splits, stock dividends and the like that occur after the Effective Date) or (z) an amount equal to
eighty-five percent (85%) of the Weighted Average Closing Price (as defined in the Note) of the Shares for the five (5) Trading Day (as defined in the Note) period immediately prior to the Maturity Date. Notwithstanding any of the
foregoing, the Company shall have no obligation to, and shall not, issue any Warrants to the Purchaser unless and until the Note is converted in accordance with it terms. 

 3. Purchaser’s Representations. The Purchaser hereby represents and warrants to
the Company as follows: 
 (a) The Purchaser is an entity duly organized, validly existing and in good standing under the laws of
the jurisdiction of its organization with full right, corporate or partnership power and authority to enter into and to consummate the transactions contemplated by hereby and otherwise to carry out its obligations hereunder. 
 (b) The execution and delivery of the Agreement and performance by the Purchaser of the transactions contemplated by the Agreement have been
duly authorized by all necessary corporate, partnership, limited liability company or similar action, as applicable, on the part of the Purchaser. 
 (c) The Agreement has been duly executed by the Purchaser, and when delivered by the Purchaser in accordance with the terms hereof, will constitute the valid and legally binding obligation of the
Purchaser, enforceable against it in accordance with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement
of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be
limited by applicable law. 
 (d) The execution, delivery and performance by the Purchaser of the Agreement and the consummation
by it of the transactions contemplated thereby do not and will not (i) conflict with or violate any provision of the Purchaser’s certificate or articles of incorporation, bylaws or other organizational or charter documents, or
(ii) conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which the Purchaser is subject (including federal and state securities
laws and regulations), or by which any property or asset of the Purchaser is bound or affected, except in the case subparagraph (ii) such as could not have or reasonably be expected to have a material adverse effect on the Purchaser.

 (e) The Purchaser is acquiring the Note and the Warrants, if any, as well as the Shares underlying the Note and the Warrants,
if any (collectively referred to with the Note and Warrants as the “Securities”), for the Purchaser’s own account and not as a nominee or agent for any other person, and not with the view to, or for sale in connection with, any
distribution thereof. 
 (f) The Purchaser is an “accredited investor,” as the Purchaser is a person
or entity described in one of the items in Annex A attached hereto. 
 (g) The Purchaser is not purchasing the Securities
as a result of any advertisement, article, notice or other communication regarding the Securities published in any newspaper, magazine or similar media or broadcast over television or radio or presented at any seminar or any other general
solicitation or general advertisement. 
 (h) The Purchaser understands that the Securities are being offered and sold to it in
reliance upon specific exemptions from the registration requirements of federal and state securities laws and that the Company is relying upon the truth and accuracy of, and the Purchaser’s compliance with, the representations, warranties,
agreements, acknowledgements and understandings of the Purchaser set forth herein in order to determine the availability of such exemptions and the eligibility of the Purchaser to acquire the Securities. 
  

 2 

 (i) The offer and sale of the Securities has not been registered under the Securities Act of
1933, as amended (the “Securities Act”), and that, accordingly, they will not be transferable except as permitted under various exemptions set forth in the Securities Act, or upon satisfaction of the registration and prospectus
delivery requirements of the Securities Act, and that there will be a legend printed upon the Securities so indicating. 
 (j)
The Securities may not be sold, transferred, assigned, pledged, hypothecated or otherwise disposed of unless the Purchaser first provides to the Company and opinion of counsel to the effect that such sale, transfer, assignment, pledge, hypothecation
or other disposition will be exempt from the registration and prospectus delivery requirements of the Securities Act and the registration or qualification requirements of any applicable state securities’ law. 
 4. Company’s Representations. The Company hereby represents and warrants to the Purchaser as follows: 
 (a) The Company is an entity duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization
with full right, corporate or partnership power and authority to enter into and to consummate the transactions contemplated by hereby and otherwise to carry out its obligations hereunder. 
 (b) The execution and delivery of the Agreement and performance by the Company of the transactions contemplated by the Agreement have been
duly authorized by all necessary corporate, partnership, limited liability company or similar action, as applicable, on the part of the Company. 
 (c) The Agreement has been duly executed by the Company, and when delivered by the Company in accordance with the terms hereof, will constitute the valid and legally binding obligation of the Company,
enforceable against it in accordance with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of
creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited
by applicable law. 
 (d) The execution, delivery and performance by the Company of the Agreement and the consummation by it of
the transactions contemplated thereby do not and will not (i) conflict with or violate any provision of the Company’s certificate or articles of incorporation, bylaws or other organizational or charter documents, or (ii) conflict with
or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which the Company is subject (including federal and state securities laws and regulations), or
by which any property or asset of the Company is bound or affected, except in the case subparagraph (ii) such as could not have or reasonably be expected to have a material adverse effect on the Company. 
  

 3 

 (e) The authorized and outstanding capital stock of the Company is set
forth on Schedule A attached hereto. All issued and outstanding shares have been duly authorized and validly issued and are fully paid and nonassessable. Except as set forth on Schedule A, there are no other outstanding rights,
options, warrants, preemptive rights, rights of first refusal, or similar rights for the purchase or acquisition from the Company of any securities of the Company nor are there any commitments to issue or execute any such rights, options, warrants,
preemptive rights or rights of first refusal. Except as otherwise provided in the Company’s certificate of incorporation, there are no outstanding rights or obligations of the Company to repurchase or redeem any of its securities. The
respective rights, preferences, privileges, and restrictions of the Company’s outstanding shares are as stated in the Company’s certificate of incorporation. All outstanding securities have been issued in compliance with all applicable
securities laws. 
 (f) There is no action, suit, proceeding, or investigation (including without limitation any suit,
proceeding, or investigation involving the prior employment of any of the Company’s employees, their use in connection with the Company’s business of any information or techniques allegedly proprietary to any of their former employers, or
their obligations under any agreements with prior employers) against or adverse to the Company pending or, to the best of the Company’s knowledge, currently threatened before any court, administrative agency, or other governmental body. The
Company is not a party or subject to, and none of its assets is bound by, the provisions of any order, writ, injunction, judgment, or decree of any court or government agency or instrumentality. There is no action, suit, or proceeding by the Company
currently pending or that the Company intends to initiate. 
 (g) The Company has fully provided the Purchaser with all the
information that the Purchaser has requested for deciding whether to purchase the Note and the Warrants. Neither this Agreement, nor any other agreements, statements or certificates made or delivered in connection herewith or therewith contains any
untrue statement of a material fact or, when taken together, omits to state a material fact necessary to make the statements herein or therein, in light of the circumstances under which they were made, not misleading. 
 5. Conditions to Closing of the Purchaser. The Purchaser’s obligation to purchase the Note at the Closing and the Warrants in
accordance with the terms set forth herein is subject to the fulfillment on or prior to the Closing Date of each of the following conditions: 
 (a) Representations and Warranties Correct. The representations and warranties made by the Company in Section 4 hereof shall be true and correct when made and shall be true and correct on and
as of the Closing Date with the same force and effect as if they had been made on and as of said date. 
 (b) Covenants.
All covenants, agreements and conditions contained in this Agreement to be performed by the Company on or prior to the Closing Date shall have been performed or complied with in all material respects. 
 (c) No Material Adverse Change. There shall have been no material adverse change in the Company’s business or financial
condition. 
 6. Right of First Refusal. The Shares underlying the Note and Warrants (the “Subject
Shares”) may be sold by the Purchaser only in compliance with the provisions of this Section 6, and subject in all cases to compliance with applicable securities laws. Prior to any intended sale of more than an aggregate of 500,000
Subject Shares in any two (2) Business Day (as defined in Section 9(g) below) period, the Purchaser shall first give written notice (the “Offer Notice”) to the Company

  

 4 

 
specifying (i) its bona fide intention to sell or otherwise transfer such Subject Shares and (ii) the number of Subject Shares the Purchaser proposes to sell (the “Offered
Shares”). Within two (2) Business Days after receipt of the Offer Notice, the Company or its nominee(s) may elect to negotiate in good faith with the Purchaser to purchase all (not some) of such Offered Shares. In the event that the
Company elects to purchase all (not some) of such Offered Shares, the Purchaser and the Company shall negotiate in good faith to consummate a transaction for such Offered Shares within five (5) Business Days following the Company’s
election. If the Company and the Purchaser fail to agree upon a purchase price following good faith negotiation between the Company and the Purchaser, or otherwise any single share of the Offered Shares is not to be purchased by the Company, all the
Offered Shares may be sold by the Purchaser without any of the restrictions set forth in this Section 6. 
 7.
“Market Stand-Off” Agreement. The Purchaser agrees that, if requested by the Company or the managing underwriter of any proposed public offering of the Company’s securities, the Purchaser will not sell or otherwise transfer or
dispose of any shares of common stock held by the Purchaser without the prior written consent of the Company or such underwriter, as the case may be, during such period of time, not to exceed 180 days following the effective date of the registration
statement filed by the Company with respect to such offering, as the Company or the underwriter may specify. In order to enforce the foregoing covenant, the Company may impose stop transfer instructions with respect to any shares of common stock
held by the Purchaser until the end of such period. 
 8. Observer Rights. If, and for such time as, the Purchaser owns
not less than fifteen percent (15%) of the then outstanding Shares, the Purchaser may, at its sole election, appoint a representative reasonably acceptable to the Company to attend all meetings of the Company’s Board of Directors in a
nonvoting observer capacity and, in this respect, the Company shall deliver to such representative of the Purchaser copies of all notices, minutes, consents, and other materials that it provides to its directors generally; provided, however, that
such representative of the Purchaser shall agree to hold in confidence and trust and to act in a fiduciary manner with respect to all information so provided; and provided further, that the Company reserves the right to withhold any information and
to exclude such representative of the Purchaser from any meeting or portion thereof if access to such information or attendance at such meeting could adversely affect the attorney-client privilege between the Company and its counsel or result in
disclosure of trade secrets or a conflict of interest. 
 9. Miscellaneous. 
 (a) Binding on Successors. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns. 
 (b) Entire Agreement. This Agreement and the exhibits hereto, constitute the entire agreement
between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, whether written or oral, and shall not be modified except by a writing signed by the parties hereto. 
 (c) Governing Law. All questions concerning the construction, validity, enforcement and interpretation of the Agreement shall be
governed by and construed and enforced in accordance with the laws of the State of California, without regard to the principles of conflicts of law thereof. Each party agrees that all legal proceedings concerning the interpretations, enforcement and
defense of the transactions contemplated by this Agreement (whether brought against a party

  

 5 

 
hereto or its respective affiliates, directors, officers, shareholders, employees or agents) shall be commenced exclusively in the courts sitting in Hong Kong. Each party hereby irrevocably
submits to the exclusive jurisdiction of the courts sitting in Hong Kong for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the
enforcement of the Agreement), 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 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. If either party shall commence an action or proceeding to enforce any provisions of the Agreement, then the prevailing
party in such action or proceeding shall be reimbursed by the other party for its reasonable attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution of such action or proceeding. 
 (d) Headings; References. All headings used herein are used for convenience only and shall not be used to construe or interpret this
Agreement. Except as otherwise indicated, all references herein to Sections refer to Sections hereof. 
 (e) No Waiver.
No waiver of any of the provisions contained in this Agreement shall be valid unless made in writing and executed by the waiving party. It is expressly understood that in the event any party shall on any occasion fail to perform any term of this
Agreement and the other parties shall not enforce that term, the failure to enforce on that occasion shall not prevent enforcement of that or any other term hereof on any other occasion. 
 (f) Severability. If any section of this Agreement is held invalid by any law, rule, order, regulation, or promulgation of any
jurisdiction, such invalidity shall not affect the enforceability of any other sections not held to be invalid. 
 (g)
Notices. All notices and other communications hereunder shall be in writing and shall be deemed given if properly addressed: (i) if delivered personally, by commercial delivery service or by facsimile (with acknowledgment of a complete
transmission prior to 5:30 p.m. Los Angeles time), on the day of delivery, (ii) if delivered by U.S. nationally recognized overnight courier service, on the next Business Day after mailing, or (iii) upon actual receipt by the party to whom
such notice is required by be given. For purposes of this Agreement, “Business Day” shall mean any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or any day on which banking
institutions in the State of California are authorized or required by law or other governmental action to close. 
  

 6 

 Notices shall be deemed to be deemed properly addressed to any party hereto if addressed to
the following addresses (or at such other address for a party as shall be specified by like notice): 
  

	 	(i)	if to Purchaser, to: 

  

	 	  	Samyang Optics Co., Ltd. 

	 	  	654-4 Bongam-dong 

	 	  	Masan-si, Gyeongsangnam-do 

	 	  	630-803 KOREA 

	 	  	Attention: 

	 	  	Telephone: 

	 	  	Facsimile: 

	 	  	Email:  

  

	 	  	with a copy to (which shall not constitute notice): 

  

	 	  	Kim, Choi & Lim 

	 	  	80-6 Susong-dong, Chongro-ku 

	 	  	Seoul, KOREA 

	 	  	Attention: 

	 	  	Telephone: 

	 	  	Facsimile: 

	 	  	Email: 

  

	 	(ii)	if to the Company: 

  

	 	  	Cortex Pharmaceuticals, Inc. 

	 	  	15231 Barranca Parkway 

	 	  	Irvine, California 92618 

	 	  	Attention: Chief Executive Officer 

	 	  	Telephone: (949) 727-3157 

	 	  	Facsimile: (949) 727-3657 

	 	  	Email: mvarney@cortexpharm.com 

  

	 	  	with a copy to (which shall not constitute notice): 

  

	 	  	Stradling Yocca Carlson & Rauth 

	 	  	660 Newport Center Drive, Suite 1600 

	 	  	Newport Beach, CA 92660 

	 	  	Attention: Lawrence B. Cohn 

	 	  	Telephone: (949) 725-4000 

	 	  	Facsimile: (949) 725-4100 

	 	  	Email: lcohn@sycr.com 

 (h)
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns. 
 (i) Counterparts. This Agreement and any amendment thereof may be executed in two or more counterparts, each of which shall be deemed an original for all purposes. In the event that any signature
is delivered by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same
force and effect as if such facsimile or “.pdf” signature page were an original thereof. 
  

 7 

 (j) Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of
any action or the expiration of any right required or granted herein shall not be a Business Day, then such action may be taken or such right may be exercised on the next succeeding Business Day. 
 ********************* 
 (Signature Page Follows) 
  

 8 

 The Company and the Purchaser have executed this Agreement as of the Effective Date.

  

			
	“Company”
	
	CORTEX PHARMACEUTICALS, INC.
		
	By:	 	  

		 	Mark A. Varney, Ph.D.
		 	President and Chief Executive Officer
	
	“Purchaser”
	
	SAMYANG OPTICS CO., LTD.
		
	By:	 	  

		 	Sang-Yoon Rhee
		 	President and Chief Executive Officer

  

 9 

 ANNEX A 
 Accredited Investor 
 An “accredited
investor” is: 
 1. Any bank as defined in section 3(a)(2) of the Act, or any savings and loan association or other
institution as defined in section 3(a)(5)(A) of the Act whether acting in its individual or fiduciary capacity; any broker or dealer registered pursuant to section 15 of the Securities Exchange Act of 1934; any insurance company as defined in
section 2(13) of the Act; any investment company registered under the Investment Company Act of 1940 or a business development company as defined in section 2(a)(48) of that Act; any Small Business Investment Company licensed by the U.S. Small
Business Administration under section 301(c) or (d) of the Small Business Investment Act of 1958; any plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political
subdivisions for the benefit of its employees, if such plan has total assets in excess of $5,000,000; any employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974 if the investment decision is made by a plan
fiduciary, as defined in section 3(21) of such Act, which is either a bank, savings and loan association, insurance company, or registered investment adviser, or if the employee benefit plan has total assets in excess of $5,000,000 or, if a
self-directed plan, with investment decisions made solely by persons that are accredited investors; 
 2. Any private business
development company as defined in section 202(a)(22) of the Investment Advisers Act of 1940; 
 3. Any organization described in
Section 501(c)(3) of the Internal Revenue Code, corporation, Massachusetts or similar business trust, or partnership, not formed for the specific purpose of acquiring the securities offered, with total assets in excess of $5,000,000;

 4. Any director, executive officer, or general partner of the issuer of the securities being offered or sold, or any
director, executive officer, or general partner of a general partner of that issuer; 
 5. Any natural person whose individual
net worth, or joint net worth with that person’s spouse, at the time of his purchase exceeds $1,000,000; 
 6. Any natural
person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person’s spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income
level in the current year; 
 7. Any trust, with total assets in excess of $5,000,000, not formed for the specific purpose of
acquiring the securities offered, whose purchase is directed by a sophisticated person as described in § 230.506(b)(2)(ii); and 
 8. Any entity in which all of the equity owners are accredited investors. 

 SCHEDULE A 
 Authorized and Outstanding Capital Stock 
 As of the
date of the Agreement, authorized capital of the Company includes 205,000,000 shares of Common Stock and 5,000,000 shares of Preferred Stock, of which 1,250,000 shares have been designated as 9% Cumulative Convertible Preferred Stock; 35,000 shares
has been designated as Series A Junior Participating Preferred Stock; 3,200,000 shares have been designated as Series B Convertible Preferred Stock; 500 shares have been designated as Series D Convertible Preferred Stock; and 514,500 shares remain
undesignated. 
 As of the date of the Agreement, the Company has 68,412,618 shares of Common Stock and 37,500 shares of Series
B Convertible Preferred Stock outstanding. 
 As of the date of the Agreement, the Company’s issued and outstanding options
and other securities convertible into, or exercisable for, shares of the Company’s Common Stock consist of the following: 
 1. 6,901,797 shares of Common Stock authorized for issuance under the Company’s 2006 Stock Incentive Plan; and 
 2. 6,186,701 shares of Common Stock subject to issued and outstanding options under the Company’s 1996 Stock Incentive Plan; and 
 3. 350,000 shares of Common Stock subject to issued and outstanding options outside of the Company’s 2006 Stock Incentive Plan and 1996 Stock Incentive Plan; and 
 4. 20,191,319 shares of Common Stock reserved for issuance upon the exercise of outstanding warrants; and 
 5. 37,500 shares of Series B Convertible Preferred Stock, each share of which is convertible into approximately 0.09812 shares of Common
Stock; and 
 6. 70,091 shares of Common Stock potentially issuable upon repayment of an advance to fund the Company’s
expenses for its clinical study in patients with Mild Cognitive Impairment, such number of shares based upon the balance of the advance and accrued interest as of November 30, 2009. 
 Each of the foregoing securities includes anti-dilution provisions in the event of stock dividends, stock splits or reclassifications of the
Company’s Common Stock. 

 EXHIBIT A 
 Form of Note 
 NEITHER THIS SECURITY NOR THE SECURITIES FOR WHICH THIS
SECURITY IS CONVERTIBLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF
THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. ADDITIONALLY, THE
SECURITIES FOR WHICH THIS SECURITY IS EXERCISABLE ARE SUBJECT TO A RIGHT OF FIRST REFUSAL IN FAVOR OF THE COMPANY AS SET FORTH IN THAT CERTAIN SECURITIES PURCHASE AGREEMENT DATED JANUARY 15, 2010. 
 CONVERTIBLE PROMISSORY NOTE 
 CORTEX PHARMACEUTICALS, INC. 
  

			
	 Principal Amount: $1,500,000
	 	Issue Date: January 15, 2010

 Cortex Pharmaceuticals, Inc., a Delaware corporation (the
“Company”), for value received, hereby promises to pay to the order of Samyang Optics Co., Ltd. (the “Holder”), the sum of One Million Five Hundred Thousand Dollars (US$1,500,000) and any unpaid accrued interest
hereon, as set forth below, on or prior to the one (1) year anniversary of the original Issue Date (the “Maturity Date”), unless converted on or prior to the Maturity Date, all in accordance with the terms of this Note. This
Note has been issued by the Company pursuant to the terms of that certain Securities Purchase Agreement, dated as of January 15, 2010 (the “Purchase Agreement”). 
 1. Interest. The unpaid principal balance of this Note shall bear simple interest at a rate equal to six percent (6%) per annum
from the date hereof until (i) paid in full or the Maturity Date, whichever is earlier, or (ii) converted pursuant to Section 4 hereof. In the event this Note is converted pursuant to Section 4, all accrued interest may be paid
in cash or converted into shares of the Company’s common stock (the “Stock”), at the Company’s sole election. 
 2. Prepayment. The Company may, at its sole election, prepay, in whole or in part, the outstanding principal or accrued interest under this Note at any time on or prior to the Maturity Date;
provided, however, that any outstanding principal prepaid hereunder (the “Prepaid Principal”) shall also include a prepayment penalty in an amount equal to the difference between the interest that would have accrued on
such Prepaid Principal to the Maturity Date and the amount that actually accrued through the payment date. In the event that less than all of the principal and accrued interest is prepaid by the Company, such payment shall be allocated first to
accrued interest and second to principal. 
  

 1 

 3. Payment Upon Maturity. The Holder may, at its sole election, demand that all
outstanding principal and accrued interest due under this Note at the Maturity Date be paid to the Holder in cash by delivering a written notice to the Company at least ninety (90) days prior to the Maturity Date setting forth the Holder’s
demand for such cash payment. If the Company receives such written notice from the Holder within the time period set forth in the preceding sentence, the Company must within ninety (90) days following the Maturity Date make a cash payment to
the Holder in an amount equal to all outstanding principal and accrued interest due under this Note at the Maturity Date. The Holder acknowledges and agrees that if the Holder elects to receive a cash payment upon maturity of this Note in accordance
with this Section 3, then the Company shall be under no obligation to, and shall not, issue any warrants to purchase shares of the Stock to the Holder under Section 2 of the Purchase Agreement. 
 4. Conversion. 
 (a) Discretionary Conversion. At any time following the earlier of (i) the three (3) month anniversary of the original Issue Date, or (ii) the Maturity Date, the Holder may elect, by delivery of a conversion notice to
the Company (the “Early Conversion Notice”), to convert all of the then outstanding principal amount and accrued interest due under this Note into shares of the Stock at a conversion price per share equal to the greater of
(i) $0.134 (subject to adjustment for stock splits, stock dividends and the like that occur after the Issue Date) or (ii) an amount equal to eighty-five percent (85%) of the Weighted Average Closing Price of the Stock for the five
(5) Trading Day period immediately prior to the date of the Early Conversion Notice (which date shall be no earlier than the date of receipt by the Company and which shall be referred to as the “Early Conversion Date”). For
purposes of this Note: 
 (i) “Trading Day” means a day on which the principal Trading Market is open for
trading. 
 (ii) “Trading Market” means a market or exchange on which the Stock is then listed or quoted for
trading, including, without limitation, the NYSE Amex Equities Market, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market or the New York Stock Exchange, the OTC Bulletin Board or a Pink OTC Market (or any
successors to any of the foregoing). 
 (iii) “Weighted Average Closing Price” means the price determined by
the first of the following clauses that applies: (A) if the Stock is then listed or quoted for trading on a Trading Market other than the OTC Bulletin Board or the Pink OTC Market, the volume-weighted average closing prices of the Stock on the
Trading Market on which the Stock is then listed or quoted for trading as reported by Bloomberg L.P., (B) if the Stock is then listed or quoted for trading on the OTC Bulletin Board, the volume-weighted average closing prices of the Stock on
the OTC Bulletin Board, or (C) if the Stock is not then listed or quoted for trading on the OTC Bulletin Board and if prices for the Common Stock are then reported in the “Pink Sheets” published by Pink OTC Markets, Inc. (or a similar
organization or agency succeeding to its functions of reporting prices), the closing bid prices per share of the Stock so reported. 
 (b) Automatic Conversion. In the event that (i) less than all outstanding principal and accrued interest under this Note is prepaid by the Company pursuant to Section 2, (ii) the Holder has not previously elected to
convert this Note into shares of Stock pursuant to Section 4(a), or (iii) the Holder does not elect to receive a cash payment upon maturity of this Note in accordance with Section 3, then effective at 5:00 p.m. Los Angeles Time on the
Maturity Date, the then outstanding principal amount and accrued interest due under this Note shall automatically be converted into

  

 2 

 
shares of the Stock at a conversion price per share equal to the greater of (i) $0.134 (subject to adjustment for stock splits, stock dividends and the like that occur after the Issue Date)
or (ii) an amount equal to eighty-five percent (85%) of the Weighted Average Closing Price of the Stock for the five (5) Trading Day period immediately prior to the Maturity Date. 
 (c) Representation by the Holder; Restrictions. The Holder, by the acceptance hereof, represents and warrants that it is acquiring
this Note and, upon any conversion hereof, will acquire the Stock issuable upon conversion, for its own account and not with a view to or for distributing or reselling such Stock or any part thereof in violation of the Securities Act or any
applicable state securities law. The Holder acknowledges that the Stock acquired upon conversion of this Note, if not registered, will have restrictions upon resale imposed by state and federal securities laws and will contain one or more legends
relating thereto. The Holder further acknowledges that the Stock may not be offered or sold except in compliance with the Company’s right of first refusal contained in the Purchase Agreement and pursuant to an effective registration statement
under the Securities Act or pursuant to an available exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in accordance with applicable state securities laws as evidenced by a legal opinion of
counsel to the transferor to such effect, the substance of which shall be reasonably acceptable to the Company. 
 (d)
Mechanics of Conversion. On the earlier of the Early Conversion Date or the Maturity Date, as applicable, the Holder shall surrender the certificate or certificates for this Note, duly endorsed, at the Company’s principal corporate
office. The Company at its expense shall, as soon as practicable thereafter, issue and deliver at such office to the Holder, a certificate or certificates for the number of shares of Stock to which the Holder shall be entitled as aforesaid. Such
conversion shall be deemed to have been made at 5:00 p.m. Los Angeles Time on the Early Conversion Date or the Maturity Date, as applicable, and the Holder shall be treated for all purposes as the record holder of such shares of Stock as of such
time. 
 (e) No Impairment. The Company will not, by amendment of its Certificate of Incorporation or through any
reorganization, recapitalization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed
hereunder by the Company but will at all times in good faith assist in the carrying out of all the provisions of this Section 4 and in the taking of all such action as may be necessary or appropriate in order to protect the conversion rights of
the Holder against impairment. 
 (f) No Rights as Stockholder. Prior to the conversion of this Note, the Holder of this
Note shall not be entitled to any rights of a stockholder of the Company, including, without limitation, the right to vote, to receive dividends or other distributions or to exercise any pre-emptive rights, and shall not be entitled to receive any
notice of any proceedings of the Company. 
 (g) Taxes on Conversion. The issue of share certificates on conversion of
this Note shall be made without charge to the Holder for any tax in respect of the issue thereof. The Company shall not, however, be required to pay any tax which may be payable in respect of any transfer involved in the issue and delivery of shares
in any name other than that of the Holder, and the Company shall not be required to issue or deliver any certificate in respect of such shares unless and until the person or persons requesting the issuance thereof shall have paid to the Company the
amount of such tax or shall have established to the satisfaction of the Company that such tax has been paid. 
  

 3 

 (h) No Fractional Shares. The Company shall not be required to issue certificates
representing fractional shares of Stock, but will make a payment in cash based on the price per share of Stock for any fractional share. 
 (i) Reservation of Conversion Securities. The Company agrees that it will at all times have authorized and reserved, and will keep available, solely for issuance or delivery upon the conversion of
this Note, the shares of Stock and other securities and properties as from time to time shall be receivable upon the conversion of this Note. 
 5. Transferability. This Note evidenced hereby may not be pledged, sold, assigned or transferred. 
 6. Security; Subordination. 
 (a) Security. The obligations under
this Note shall be unsecured obligations. 
 (b) Subordination. The indebtedness evidenced by this Note is hereby
expressly subordinated in right of payment to the prior payment in full of the Company’s Senior Indebtedness. As used in this Note, the term “Senior Indebtedness” shall mean the principal of and unpaid accrued interest on:
(i) all indebtedness of the Company to banks, commercial finance lenders, insurance companies or other financial institutions regularly engaged in the business of lending money, which is for money borrowed (or the purchase or lease of equipment
in the case of lease financing) by the Company, and whether or not secured, and whether or not previously incurred or incurred in the future, and (ii) any such indebtedness or any debentures, notes or other evidence of indebtedness issued in
exchange for or to refinance such Senior Indebtedness, or any indebtedness arising from the satisfaction of such Senior Indebtedness by a guarantor. Senior Indebtedness shall include all obligations of the Company pursuant to any modifications,
renewals and extensions of such Senior Indebtedness. The Holder acknowledges that the Company may incur Senior Indebtedness in the future and that such Senior Indebtedness shall be senior in repayment preference to this Note. By its acceptance of
this Note, the Holder agrees to execute and deliver such documents as may be reasonably requested from time to time by the Company or the lender of any Senior Indebtedness in order to implement the foregoing provisions of this Section 6(b).

 7. Defaults and Remedies. 
 (a) Events of Default. An “Event of Default” shall occur if: 
 (i) the Company shall default in the payment of the principal of this Note, when and as the same shall become due and payable; 
 (ii) an involuntary proceeding shall be commenced or an involuntary petition shall be filed in a court of competent jurisdiction seeking (a) relief in respect of the Company, or of a substantial part
of its property or assets, under Title 11 of the United States Code, as now constituted or hereafter amended, or any other Federal or state bankruptcy, insolvency, receivership or similar law, (b) the appointment of a receiver, trustee,
custodian, sequestrator, conservator or similar official for the Company, or for a substantial part of its property or assets, or (c) the winding up or liquidation of the Company; and such proceeding or petition shall continue undismissed for
ninety (90) days, or an order or decree approving or ordering any of the foregoing shall be entered; or 
  

 4 

 (iii) the Company shall (a) voluntarily commence any proceeding or file any petition
seeking relief under Title 11 of the United States Code, as now constituted or hereafter amended, or any other Federal or state bankruptcy, insolvency, receivership or similar law, (b) consent to the institution of, or fail to contest in a
timely and appropriate manner, any proceeding or the filing of any petition described in paragraph (ii) of this Section 7(a), (c) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator, conservator or
similar official for the Company or any subsidiary, or for a substantial part of its property or assets, (d) file an answer admitting the material allegations of a petition filed against it in any such proceeding, (e) make a general
assignment for the benefit of creditors, (f) become unable, admit in writing its inability or fail generally to pay its debts as they become due or (g) take any action for the purpose of effecting any of the foregoing. 
 (b) Acceleration. If an Event of Default occurs and is continuing, the Holder, by written notice to the Company, may declare the
principal of and accrued interest on this Note to be immediately due and payable. 
 8. Loss, Etc., of Note. Upon receipt
of evidence satisfactory to the Company of the loss, theft, destruction or mutilation of this Note, and of indemnity reasonably satisfactory to the Company if lost, stolen or destroyed, and upon surrender and cancellation of this Note if mutilated,
and upon reimbursement of the Company’s reasonable incidental expenses, the Company shall execute and deliver to the Holder a new Note of like date, tenor and denomination. 
 9. Waiver. The Company hereby waives presentment, demand, notice of nonpayment, protest and all other demands and notices in
connection with the delivery, acceptance, performance or enforcement of this Note. If an action is brought for collection under this Note, the Holder shall be entitled to receive all costs of collection, including, but not limited to, its reasonable
attorneys’ fees. 
 10. Notices. Any notice, approval, request, authorization, direction or other communication
under this Note shall be given in accordance with the Purchase Agreement. 
 11. Successors and Assigns. Subject to
Section 5, all of the covenants, stipulations, promises, and agreements in this Note shall bind and inure to the benefit of the parties’ respective successors and assigns, whether so expressed or not. 
 12. Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Note shall be
determined in accordance with the provisions of the Purchase Agreement. 
 ************** 
 (Signature Page Follows) 
  

 5 

 IN WITNESS WHEREOF, the Company has caused this Note to be issued as of the Issue Date first
written above 
  

							
		 		 	Cortex Pharmaceuticals, Inc.
	Address:	 		 	
				
	15231 Barranca Parkway	 		 		 	
	Irvine , California 92618	 		 	By:	 	  

		 		 		 	Mark A. Varney, Ph.D.
		 		 		 	President and Chief Executive Officer

  

 6 

 EXHIBIT B 
 Form of Warrant 
 NEITHER THIS SECURITY NOR THE SECURITIES FOR WHICH
THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
COMPANY. ADDITIONALLY, THE SECURITIES FOR WHICH THIS SECURITY IS EXERCISABLE ARE SUBJECT TO A RIGHT OF FIRST REFUSAL IN FAVOR OF THE COMPANY AS SET FORTH IN THAT CERTAIN SECURITIES PURCHASE AGREEMENT DATED JANUARY 15, 2010. 
 COMMON STOCK PURCHASE WARRANT 
 CORTEX PHARMACEUTICALS, INC. 
  

			
	Warrant Shares:     	 	Issue Date:             , 20    

 THIS COMMON STOCK PURCHASE WARRANT (the
“Warrant”) certifies that, for value received, Samyang Optics Co., Ltd. (the “Holder”) is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on
or prior to the close of business on the two year anniversary of the original Issue Date (the “Termination Date”) but not thereafter, to subscribe for and purchase from Cortex Pharmaceuticals, Inc., a Delaware corporation (the
“Company”), up to                             (    )1 shares (the “Warrant Shares”) of Common Stock. The
purchase price of one share of Common Stock under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b). 
 Section 1. Definitions. In addition to the terms defined elsewhere in this Warrant, the following terms shall have the meanings set forth in this Section 1: 
 “Business Day” shall mean any day except any Saturday, any Sunday, any day which is a federal legal holiday
in the United States or any day on which banking institutions in the State of California are authorized or required by law or other governmental action to close. 
 “Common Stock” means the common stock of the Company, par value $0.001 per share, and any other class of
securities into which such securities may hereafter be reclassified or changed. 
  
  

	1	 Amount to be determined upon conversion of the Note in accordance with the terms of the Purchase Agreement. 

 “Trading Day” means a day on which the principal Trading
Market is open for trading. 
 “Trading Market” means a market or exchange on which the Common
Stock is then listed or quoted for trading, including, without limitation, the NYSE Amex Equities Market, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market or the New York Stock Exchange, the OTC Bulletin Board or
a Pink OTC Market (or any successors to any of the foregoing). 
 “Transaction Documents” means
the Securities Purchase Agreement dated January 15, 2010 between the Company and the purchaser signatory thereto (the “Purchase Agreement”), as well as the other agreements and documents contemplated thereby. 
 “Weighted Average Closing Price” means the price determined by the first of the following clauses that
applies: (A) if the Common Stock is then listed or quoted for trading on a Trading Market other than the OTC Bulletin Board or the Pink OTC Market, the volume-weighted average closing prices of the Common Stock on the Trading Market on which
the Common Stock is then listed or quoted for trading as reported by Bloomberg L.P., (B) if the Common Stock is then listed or quoted for trading on the OTC Bulletin Board, the volume-weighted average closing prices of the Common Stock on the
OTC Bulletin Board, or (C) if the Common Stock is not then listed or quoted for trading on the OTC Bulletin Board and if prices for the Common Common Stock are then reported in the “Pink Sheets” published by Pink OTC Markets, Inc. (or
a similar organization or agency succeeding to its functions of reporting prices), the closing bid prices per share of the Common Stock so reported. 
 Section 2. Exercise. 
 a) Exercise of
Warrant. Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times on or before the Termination Date by delivery to the Company (or such other office or agency of the Company as it may
designate by notice in writing to the registered Holder at the address of the Holder appearing on the books of the Company) of a duly executed copy of the Notice of Exercise Form annexed hereto, the original Warrant certificate and payment of the
aggregate Exercise Price of the shares thereby purchased by wire transfer or cashier’s check drawn on a United States bank. 
 b) Exercise Price. The exercise price per share of the Common Stock under this Warrant shall be $        2, subject to adjustment hereunder (the “Exercise
Price”). 
  
  

	2	 Amount to equal to one hundred forty percent (140%) of the greater of (a) the closing sales price of COR’s common stock on the original
Issue Date of the Note (subject to adjustment for stock splits, stock dividends and the like that occur after the original Issue Date of the Note) or (b) eighty-five percent (85%) of the weighted average closing price of COR’s common
stock for the five (5) trading day period immediately prior to the maturity date of the Note as determined for purposes of the Note conversion. 

  

 2 

 c) Mechanics of Exercise. 
 i. Delivery of Certificates Upon Exercise. Certificates for shares purchased hereunder shall be transmitted by the
Company or the Company’s transfer agent to the Holder promptly after the date of exercise. This Warrant shall be deemed to have been exercised on the first date on which all of the items in Section 2(a) above have been delivered to the
Company. The Warrant Shares shall be deemed to have been issued, and Holder shall be deemed to have become a holder of record of such shares for all purposes, as of the date the Warrant has been properly exercised, with payment to the Company of the
Exercise Price prior to the issuance of such shares, having been paid. 
 ii. Delivery of New Warrants Upon
Exercise. If this Warrant shall have been exercised in part, the Company shall, at the request of a Holder and upon surrender of this Warrant certificate, at the time of delivery of the certificate or certificates representing Warrant Shares,
deliver to Holder a new Warrant evidencing the rights of Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which new Warrant shall in all other respects be identical with this Warrant. 
 iii. No Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon
the exercise of this Warrant. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such exercise, the Company shall, at its election, either pay a cash adjustment in respect of such final fraction in an amount
equal to such fraction multiplied by the Exercise Price or round up to the next whole share. 
 iv. Charges,
Taxes and Expenses. Issuance of certificates for Warrant Shares shall be made without charge to the Holder for any issue or transfer tax or other incidental expense in respect of the issuance of such certificate, all of which taxes and expenses
shall be paid by the Company, and such certificates shall be issued in the name of the Holder. 
 v. Closing
of Books. The Company will not close its stockholder books or records in any manner which prevents the timely exercise of this Warrant, pursuant to the terms hereof. 
 d) Representation by the Holder; Restrictions. The Holder, by the acceptance hereof, represents and warrants that it
is acquiring this Warrant and, upon any exercise hereof, will acquire the Warrant Shares issuable upon such exercise, for its own account and not with a view to or for distributing or reselling such Warrant Shares or any part thereof in violation of
the Securities Act or any applicable state securities law. The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered, will have restrictions upon resale imposed by state and federal securities

  

 3 

 
laws and will contain one or more legends relating thereto. The Holder further acknowledges that the Warrant Shares may not be offered or sold except in compliance with the Company’s right
of first refusal contained in the Purchase Agreement and pursuant to an effective registration statement under the Securities Act or pursuant to an available exemption from, or in a transaction not subject to, the registration requirements of the
Securities Act and in accordance with applicable state securities laws as evidenced by a legal opinion of counsel to the transferor to such effect, the substance of which shall be reasonably acceptable to the Company. 
 e) Call Provision. Subject to the provisions of this Section 2(e), if (i) the Weighted Average Closing Price
for each of 10 consecutive Trading Days (the “Measurement Period”) exceeds one and one-half (1.5) times the Exercise Price (subject to adjustment for forward and reverse stock splits, recapitalizations, stock dividends and the
like after the original Issue Date) and (ii) the Holder is not in possession of any information that constitutes, or might constitute, material non-public information which was provided by the Company, then the Company may, within 3 Trading
Days of the end of such Measurement Period, call for cancellation of all or any portion of this Warrant for which a Notice of Exercise has not yet been delivered (such right, a “Call”) for consideration equal to $0.001 per Share. To
exercise this right, the Company must deliver to the Holder an irrevocable written notice (a “Call Notice”); indicating therein the portion of unexercised portion of this Warrant to which such notice applies. If the conditions set
forth below for such Call are satisfied from the period from the date of the Call Notice through and including the Call Date (as defined below), then any portion of this Warrant subject to such Call Notice for which a Notice of Exercise shall not
have been received by the Call Date will be cancelled at 6:30 p.m. (Los Angeles time) on the tenth Trading Day after the date the Call Notice is received by the Holder (such date and time, the “Call Date”). Any unexercised portion
of this Warrant to which the Call Notice does not pertain will be unaffected by such Call Notice. In furtherance thereof, the Company covenants and agrees that it will honor all Notices of Exercise with respect to Warrant Shares subject to a Call
Notice that are tendered through 6:30 p.m. (Los Angeles time) on the Call Date. The parties agree that any Notice of Exercise delivered following a Call Notice which calls less than all the Warrants shall first reduce to zero the number of Warrant
Shares subject to such Call Notice prior to reducing the remaining Warrant Shares available for purchase under this Warrant. For example, if (A) this Warrant then permits the Holder to acquire 100 Warrant Shares, (B) a Call Notice pertains
to 75 Warrant Shares, and (C) prior to 6:30 p.m. (Los Angeles time) on the Call Date the Holder tenders a Notice of Exercise in respect of 50 Warrant Shares, then (x) on the Call Date the right under this Warrant to acquire 25 Warrant
Shares will be automatically cancelled, (y) the Company, in the time and manner required under this Warrant, will have issued and delivered to the Holder 50 Warrant Shares in respect of the exercises following receipt of the Call Notice, and
(z) the Holder may, until the Termination Date, exercise this Warrant for 25 Warrant Shares (subject to adjustment as herein provided and subject to subsequent Call Notices). Subject again to the provisions of this Section 2(d), the
Company may deliver subsequent Call Notices for any portion of this Warrant for which the Holder shall not have delivered a Notice of Exercise. Notwithstanding anything to the contrary set forth in this Warrant, the Company may not deliver a Call
Notice or require the cancellation of this Warrant (and any such Call Notice shall be

  

 4 

 
void), unless, from the beginning of the Measurement Period through the Call Date, (1) the Company shall have honored in accordance with the terms of this Warrant all Notices of Exercise
delivered by 6:30 p.m. (Los Angeles time) on the Call Date, and (2) the Common Stock shall be listed or quoted for trading on the Trading Market, and (3) there is a sufficient number of authorized shares of Common Stock for issuance of all
securities under the Transaction Documents. 
 Section 3. Certain Adjustments. 
 a) Stock Dividends and Splits. If the Company, at any time while this Warrant is outstanding: (i) pays a stock
dividend or otherwise makes a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable in shares of Common Stock (which, for avoidance of doubt, shall not include any shares of Common
Stock issued by the Company upon exercise of this Warrant), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including by way of reverse stock split) outstanding shares of Common Stock into
a smaller number of shares, or (iv) issues by reclassification of shares of the Common Stock any shares of capital stock of the Company, then in each case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the
number of shares of Common Stock (excluding treasury shares, if any) outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event, and the number of
shares issuable upon exercise of this Warrant shall be proportionately adjusted such that the aggregate Exercise Price of this Warrant shall remain unchanged. Any adjustment made pursuant to this Section 3(a) shall become effective immediately
after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification. 

b) Calculations. All calculations under this Section 3 shall be made to the nearest cent or the nearest
1/100th of a share, as the case may be. For purposes of this Section 3, the number of shares of Common Stock deemed to be issued and outstanding as of a given date shall be the sum of the number of shares of Common Stock (excluding treasury
shares, if any) issued and outstanding. 
 c) Notice to Holder. Whenever the Exercise Price is adjusted
pursuant to any provision of this Section 3, the Company shall promptly mail to the Holder a notice setting forth the Exercise Price after such adjustment and setting forth a brief statement of the facts requiring such adjustment. 

Section 4. Transfer of Warrant. 
 a) Transferability. This Warrant evidenced hereby may not be pledged, sold, assigned or transferred. 
  

 5 

 b) Warrant Register. The Company shall register this Warrant, upon
records to be maintained by the Company for that purpose (the “Warrant Register”), in the name of the record Holder hereof from time to time. The Company may deem and treat the registered Holder of this Warrant as the absolute owner
hereof for the purpose of any exercise hereof or any distribution to the Holder, and for all other purposes, absent actual written notice to the contrary. 
 Section 5. Miscellaneous. 
 a) No Rights as
Stockholder Until Exercise. This Warrant does not entitle the Holder to any voting rights, dividends or other rights as a stockholder of the Company prior to the exercise hereof as set forth in Section 2(c)(i). 
 b) Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of
evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory
to it, and upon surrender and cancellation of such Warrant or stock certificate, if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation, in lieu of such Warrant or stock
certificate. 
 c) Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any
action or the expiration of any right required or granted herein shall not be a Business Day, then, such action may be taken or such right may be exercised on the next succeeding Business Day. 
 d) Authorized Shares. 
 The Company covenants that, during the period the Warrant is outstanding, it will reserve from its authorized and unissued Common Stock a sufficient number of shares to provide for the issuance of the
Warrant Shares upon the exercise of any purchase rights under this Warrant. 
 Except and to the extent as waived
or consented to by the Holder, the Company shall not by any action, including, without limitation, amending its certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of
securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such
actions as may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant against impairment. 
 Before taking any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or in the Exercise Price, the Company shall obtain all such
authorizations or exemptions thereof, or consents thereto, as may be necessary from any public regulatory body or bodies having jurisdiction thereof. 
  

 6 

 e) Effect of Consolidation, Merger or Sale. Notwithstanding anything
in this Warrant to the contrary, this Warrant shall expire upon any (i) consolidation or merger of the Company with another entity, or any statutory exchange of securities with another entity, whereby the holders of voting capital stock of the
Company immediately prior to such transaction hold less than 50% of the voting capital stock following such transaction, (ii) sale or all or substantially all of the Company’s assets to another entity or (iii) liquidation of the
Company. The Company shall give the Holder at least fifteen (15) days advance notice of the closing of such transaction at its last address as it shall appear upon the Warrant Register of the Company; provided that the failure to mail such
notice or any defect therein or in the mailing thereof shall not affect the validity of the corporate action required to be specified in such notice. 
 f) Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be determined in accordance with the provisions of the Purchase
Agreement. 
 g) Nonwaiver. No course of dealing or any delay or failure to exercise any right hereunder
on the part of Holder or the Company shall operate as a waiver of such right or otherwise prejudice Holder’s or the Company’s respective rights, powers or remedies. 
 h) Notices. Any notice, request or other document required or permitted to be given or delivered to the Holder by the
Company shall be delivered in accordance with the notice provisions of the Purchase Agreement. 
 i)
Successors and Assigns. Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure to the benefit of and be binding upon the successors and permitted assigns of the Company and the
successors and permitted assigns of Holder. 
 j) Amendment. This Warrant may be modified or amended or
the provisions hereof waived with the written consent of the Company and the Holder. 
 k) Severability.
Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision
shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions of this Warrant. 
 l) Headings. The headings used in this Warrant are for the convenience of reference only and shall not, for any
purpose, be deemed a part of this Warrant. 
 ******************** 
 (Signature Page Follows) 
  

 7 

 IN WITNESS WHEREOF, the Company and the Holder have caused this Warrant to be executed by
their respective officers thereunto duly authorized. 
  

					
		 	CORTEX PHARMACEUTICALS, INC. 
			
	Dated:             , 20    	 		 	
			
		 	By:	 	  

		 	 Name:
	 	Mark A. Varney, Ph.D.
		 	 Title:
	 	Chief Executive Officer

 Accepted and agreed to this      day of
            , 20     
  

			
	SAMYANG OPTICS CO., LTD. 
		
	By:	 	  

	Name:	 	Sang-Yoon Rhee
	Title:	 	President and Chief Executive Officer

  

 8 

 NOTICE OF EXERCISE 
 To: CORTEX PHARMACEUTICALS, INC. 
 (1) The undersigned hereby elects to purchase
             Warrant Shares of the Company pursuant to the terms of the attached Warrant, and tenders herewith payment of the exercise price in full, together with all applicable
transfer taxes, if any. 
 (2) Payment shall take the form of lawful money of the United States. 
 (3) Please issue a certificate or certificates representing said Warrant Shares in the name of the undersigned. 
 The Warrant Shares shall be delivered by physical delivery of a certificate to: 
  

	
	  

	
	  

	
	  

 (4) The undersigned is an “accredited investor” as defined in Rule
501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Securities Act of 1933, as amended. 
 [SIGNATURE OF HOLDER] 
  

	
	 Name of Investing Entity:
                                         
                                         
                                         
                                         
    

	 Signature of Authorized Signatory of Investing Entity:
                                        
                                         
                                         
  

	 Name of Authorized Signatory:
                                         
                                         
                                         
                                    

	 Title of Authorized Signatory:
                                         
                                         
                                         
                                       

	 Date:
                                         
                                         
                                         
                                         
                                      

 ASSIGNMENT FORM 
 (To assign the foregoing warrant, execute 
 this form and
supply required information. 
 Do not use this form to exercise the warrant.) 
 FOR VALUE RECEIVED, [            ] all of or
[    ] shares of the foregoing Warrant and all rights evidenced thereby are hereby assigned to 
                                        
                                         
                                         
                whose address is 
                                        
                                         
                                         
                                         
      . 
  
                                        
                                         
                                         
                                         
       
                                         
                                         
                                         
                  Dated:             ,
         
  

			
	 Holder’s Signature:
	  	  

		
	 Holder’s Address:
	  	  

		
		  	  

 Signature Guaranteed:
                                         
                                         
                                         
      
 NOTE: The signature to this Assignment Form must correspond with the name as it appears on the face of the
Warrant, without alteration or enlargement or any change whatsoever, and must be guaranteed by a bank or trust company. Officers of corporations and those acting in a fiduciary or other representative capacity should file proper evidence of
authority to assign the foregoing Warrant.

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