Document:

2007 Long Term Incentive Plan

 Exhibit 4.02 
 CERTIFIED DIABETIC SERVICES, INC. 
 2007 LONG TERM INCENTIVE PLAN 
 SECTION 1 
 GENERAL 
 1.1 Purpose. The Certified Diabetic Services, Inc. 2007 Long Term Incentive Plan (the “Plan”) has been established by
Certified Diabetic Services, Inc. (the “Company”) to (i) attract and retain key management employees who are expected to make significant contributions to the success of the Company; (ii) motivate such key employees, by
means of appropriate incentives, to achieve the Company’s long-range goals; (iii) provide incentive compensation opportunities that are competitive with those of other similar companies; (iv) provide incentive awards to its directors;
and (v) further align such key employees’ and directors’ interests with those of the Company’s other shareholders, and thereby promote the long-term financial interests of the Company, including the growth in value of the
Company’s equity and enhancement of long-term shareholder return. Unless otherwise defined herein, all capitalized terms are defined in Section 7 herein. 
 1.2 Participation. Subject to the terms and conditions of the Plan, the Committee shall determine and designate, from time to time, from among the Eligible Employees or Eligible Directors, those persons
who will be granted one or more Awards under the Plan, and thereby become “Participants” or a “Participant” in the Plan. In the discretion of the Committee, a Participant may be granted any Award permitted under the
provisions of the Plan and more than one Award may be granted to each Participant. Awards may be granted as alternatives to or replacement of awards outstanding under the Plan, or any other plan or arrangement of the Company or a Related Company
(including a plan or arrangement of a business or entity, all or a portion of which is acquired by the Company or a Related Company). 
 1.3
Name of Plan. The name of this Plan shall be known as the Certified Diabetic Services, Inc. 2007 Long Term Incentive Plan. 
 1.4 Administration. Although the Board has ultimate responsibility for administering the Plan, the Board has delegated the tasks of operating, administering and performing its duties under the Plan to the Committee. Where this
Plan specifies that an action is to be taken by the Board, only the Board may take that action or make that determination. Where the Plan specifies that action is to be taken by the Committee, only the Committee may take that action or make that
determination; provided that, if the Committee cannot act or make a determination, then the Board shall also be entitled to take such action or make such determination. 
 Subject to the express provisions of the Plan, the Committee has the authority to interpret the Plan; determine eligibility for and grant Awards; determine what type or combination of types of Awards may be granted;
determine, modify or waive the terms and conditions of any Award (which need not be identical); prescribe forms, rules and procedures (which it may modify or waive); provide Awards to employees of subsidiary corporations or non-U.S. citizens that
are employed by the Company or a Related Company; determine whether, to what extent and under what circumstances Awards may be settled, paid or exercised in cash, shares, other 

  

 1 

 
securities, or other Awards, or other property, or cancelled, forfeited or suspended; determine whether a transaction or event should be treated as a Change
of Control, as well as the effect of a Change of Control; and otherwise do all things necessary to implement the Plan. Once a written agreement evidencing an Award hereunder has been executed by the Participant and approved by the Committee, the
Committee may not, without the Participant’s consent, alter the terms of the Award so as to affect adversely the Participant’s rights under the Award, unless the Committee expressly reserved the right to do so in writing at the time of
such delivery. Subject to the rights of Participants under any existing Award, the Committee may modify, change, amend or cancel any Award to correct an administrative error. The Board, in the exercise of this power, may correct any defect, omission
or inconsistency in the Plan or in any Stock Award, in a manner and to the extent it shall deem necessary or expedient to make the Plan fully effective. 
 In the case of any Award intended to be eligible for the performance-based compensation exception under Section 162(m), the Board may modify the terms of the Plan or may create one or more subplans, in each case
on such terms as it deems necessary or appropriate; provided, however, that no such action by the Board shall increase the total number of Shares issuable hereunder. Except for the power to amend the Plan and except for determinations regarding
Participants who are subject to Section 16 of the Securities Exchange Act of 1934, and except as may otherwise be required under applicable listing standards for an exchange on which the Company’s common stock may be listed, the Committee
may delegate any or all of its duties, powers and authority under the Plan, pursuant to such conditions or limitations as the Committee may establish to any officer or officers of the Company. 
 1.5 Conditions on Awards. The Committee shall have the discretion with respect to any Award granted under the Plan to establish upon its
grant conditions under which (i) the Award may be later forfeited, canceled, rescinded, suspended, withheld or otherwise limited or restricted; or (ii) gains realized by the grantee in connection with an Award or an Award’s exercise
may be recovered; provided that such conditions and their consequences are: 
 (a) clearly set forth in the grant agreement or other grant
document; and 
 (b) fully comply with applicable laws. 
 The Committee shall also be authorized to impose conditions that include, without limitation, refraining from undertaking actions which constitute a conflict of interest with the Company, or are prejudicial to the Company’s interests,
or are in violation of any non-compete agreement or obligation, any confidentiality agreement or obligation, the Company’s applicable policies, its code of ethics (as in effect from time to time), or the terms and conditions of employment under
an applicable employment or contractor agreement. 
 The Committee shall also be authorized to impose such restrictions, conditions or
limitations as it determines appropriate as to the timing and manner of any resales by a Participant or other subsequent transfers by the Participant of any shares of common stock issued as a result of or under a Stock Award, including, without
limitation, (i) restrictions under an insider trading policy and (ii) restrictions as to the use of a specified brokerage firm for such resales or other transfers. 
  

 2 

 1.6 Effect of Committee’s Decision. All determinations, interpretations and
constructions made by the Committee in good faith shall not be subject to review by any person and shall be final, binding and conclusive on all persons. 
 1.7 Non-exclusivity of this Plan. This Plan shall not limit the power of the Company or any Related Company to adopt other incentive arrangements including, for example, the grant or issuance of stock
options, stock or other equity-based rights under other plans or compensation arrangements approved by the Company. 
 1.8 Unfunded
Plan. This Plan shall be unfunded. Although bookkeeping accounts may be established with respect to Participants, any such accounts will be used merely as a convenience. The Company shall not be required to segregate any assets on account of
this Plan, the grant of Awards, or the issuance of Shares. The Company shall not be deemed to be a trustee of stock or cash to be awarded under this Plan. Any obligations of the Company to any Participant shall be based solely upon contracts entered
into under this Plan, such as Award agreements. No such obligations shall be deemed to be secured by any pledge or other encumbrance on any assets of the Company. Neither the Company nor the Committee shall be required to give any security or bond
for the performance of any such obligations. 
 SECTION 2 
 OPTIONS 
 2.1 Definitions. The grant of an “Option” entitles the
Participant to purchase Shares at an exercise price established by the Committee. Options granted under this Section 2 may be either Incentive Stock Options or Non-Qualified Stock Options, as determined in the discretion of the Committee. An
“Incentive Stock Option” is an Option that is intended to satisfy the requirements applicable to an “incentive stock option” described in Section 422(b) of the Code. A “Non-Qualified Option” is an
Option that is not intended to be an “incentive stock option”, as that term is described in Section 422 (b) of the Code. 
 2.2 Exercise Price. The “Exercise Price” of each Option granted under this Section 2 shall be established by the Committee or shall be determined by a method established by the Committee at the time the
Option is granted; except that the Exercise Price for any incentive stock option shall not be less than ONE HUNDRED PERCENT (100%) of the Fair Market Value of a Share as of the Pricing Date. For purposes of the preceding sentence, the
“Pricing Date” shall be the date on which the Option is granted, except that the Committee may provide that: (i) the Pricing Date is the date on which the recipient is hired or promoted (or similar event) if the grant of the
Option occurs not more than ninety (90) days after the date of such hiring, promotion or other event; and (ii) if an Option is granted in tandem with, or in substitution for, an outstanding Award, the Pricing Date shall be the date of
grant of such outstanding Award. 
 2.3 Expiration Date. The “Expiration Date” with respect to an Option means
the date the Option is deemed to expire, as determined by the Committee at the time of the grant; provided, however, that the Expiration Date with respect to any Option shall not be later than the earliest to occur of: 
 (a) the ten-year anniversary of the date on which the Option is granted; 
  

 3 

 (b) if the Participant’s date of termination occurs by reason of death or disability, the one-year
anniversary of such date of termination; 
 (c) if the Participant’s date of termination occurs by reason of retirement, the one year
anniversary of such date of termination; 
 (d) if the Participant’s date of termination occurs for reasons other than retirement, death
or disability, the 90-day anniversary of such date of termination; subject, however, to the terms of the applicable option agreement approved by the Committee; 
 (e) if the Participant dies while the Option is otherwise exercisable, the Expiration Date may be later than the dates set forth above, provided that it is not later than the first anniversary of the date of death.
Notwithstanding the foregoing provisions of this subsection 2.3, the Committee shall be authorized to extend the Expiration Date for any non-qualified stock options granted under the Plan; subject, however, to the terms of the applicable option
agreement approved by the Committee. 
 2.4 Settlement of Award. The distribution of Company shares following exercise of an
Option shall be subject to such conditions, restrictions and contingencies as the Committee may establish. 
 2.5 Other
Restrictions. Incentive Stock Options and Non-Qualified Stock Options may be granted under the Plan in such numbers, at such prices and on such terms and conditions as the Committee shall determine, including the cancellation of existing
options and issuance of a replacement option, provided that such options shall comply with and be subject to the following terms and conditions: 
 (a) Annual Grant Limitation. No Participant shall be granted an Incentive Stock Option to the extent that the aggregate Fair Market Value of Shares made subject to such option (determined as of the date such option is granted)
which are exercisable for the first time by an option holder during any one calendar year exceeds the sum of ONE HUNDRED THOUSAND DOLLARS ($100,000), or such other limit as may be set by applicable law (the “Limitation Amount”).
Incentive Stock Options granted under the Plan and all other plans of the Company or affiliated entity shall be aggregated for purposes of determining whether the Limitation Amount has been exceeded. The Committee may impose such conditions as it
deems appropriate on an Incentive Stock Option to ensure that the foregoing requirement is met. If any Incentive Stock Options that are granted under the Plan have an aggregate Fair Market Value that exceeds the Limitation Amount, the excess Options
(according to the order in which they were granted) will be treated as Non-Qualified Stock Options to the extent permitted by law. 
 (b)
Option Agreement. All options granted under the Plan shall be evidenced by a written option agreement stating the number of Shares capable of being purchased upon its exercise and otherwise in such form as the Committee may
periodically approve and containing such terms and conditions, including the period of exercise and whether in installments or otherwise, as shall be contained therein, which need not be the same for all options. 
  

 4 

 (c) Date of Grant. The date on which an option grant is approved by the Committee shall be
considered the date on which such option is granted (the “Date of Grant”), and shall be reflected in the option agreement. All options under this Plan shall be granted within 10 years of the date this Plan is adopted. 
 (d) Exercise Price. Each option agreement shall state the purchase price of each Share capable of being acquired upon exercise of the
option, which price shall be determined by the Committee with respect to each option granted. For any Incentive Stock Options granted under the Plan, the exercise price shall not be less than ONE HUNDRED PERCENT (100%) of the fair market value
of each such Share on the Date of Grant (or, in the case of any optionholder owning more than ten percent of the voting power of all classes of stock of the Company, not less than ONE HUNDRED AND TEN PERCENT (110%) of the Fair Market Value of
the Shares on the Date of Grant). In the event that Share prices are not published for the Date of Grant, such value shall be determined in accordance with such rules as may be established by the Committee. 
 (e) Option Exercise. All options granted under the Plan become exercisable at such times and in such installments (which may be cumulative)
as the Committee shall provide in the terms of each individual option. All Options that have become exercisable from time to time may be exercised in whole or in part in accordance with the terms of the applicable option agreement; provided,
however, that the Committee shall be authorized to require that any partial exercise be with respect to a minimum number of Shares. 
 (f)
Forfeiture or Exercise of Option. In the event that a Participant ceases employment with the Company due to retirement, death, disability or other reason, all options shall be forfeited or exercised, as follows: 
 (1) In the event of a Participant’s termination of employment for reasons other than retirement, death or disability, any options that are not
vested shall be forfeited in accordance with the terms of each option agreement and any Vested Option shall be exercised before the 90-day anniversary of the date of termination (or such period of exercise that the terms of the applicable option
agreement may permit). 
 (2) Upon the disability of a Participant, the Participant’s Vested Options shall be exercisable within one
year (or such shorter period as the Code or the period of exercise that the terms of the applicable option agreement may permit) of the Participant’s date of disability. 
 (3) If the Participant dies while in the employment of the Company, the Participant’s estate, personal representative, or designated beneficiary
shall have the right to exercise such Vested Options within one year of the Participant’s death (or such shorter period as the Code or period of exercise that the terms of the applicable option agreement may permit). 
 (4) Upon the retirement of a Participant, the Participant’s Vested Options shall be exercisable within one year (or such shorter period as the Code
or period of exercise that the terms of the applicable option agreement may permit) of the Participant’s date of retirement. 
  

 5 

 (g) Mechanics of Exercise. A person entitled to exercise any portion of an option granted
under the Plan may exercise the same at anytime, either in whole or in part, by delivering written notice of exercise to the office of the Secretary of the Company or to such other location as may be designated by the Committee, specifying therein
the number of Shares with respect to which the option is being exercised, which notice shall be accompanied by payment in full of the purchase price of the Shares being acquired. If any adjustment has been effected so as to establish a right by an
optionholder to acquire a fractional share, such fraction shall be rounded upward to the next whole number. 
 (h) Payment of Exercise
Price. The Committee may determine, in its sole discretion, the required or permitted forms of payment, subject to the following: (i) payment may be made wholly or partly in cash; (ii) through the delivery of Shares which have been
outstanding for at least six months (unless the Committee approves a shorter period) and which have a fair market value equal to the exercise price; (iii) by delivery of an unconditional and irrevocable undertaking by a third party to deliver
promptly to the Company sufficient funds to pay the exercise price and any tax withholding resulting from such exercise through a “cashless exercise” arrangement which permits the Participant to simultaneously exercise an option and sell
the Shares thereby acquired and enable the third party to use the proceeds from such sale as payment for the exercise price of such option to the extent permitted by law; or (iv) by any combination of the foregoing permissible forms of payment.

 In no event shall a promissory note or other form of deferred consideration constitute a permissible form of payment. If the Company
extends or arranges for the extension of credit to a Participant under a cashless exercise procedure, no officer or director may participate in that cashless exercise procedure. 
 (i) Investment Purpose. Unless the Committee chooses to register or qualify the Shares under the Securities Act of 1933, as amended (the
“Act”), each option is granted on the express condition that the purchase of Shares upon an exercise thereof shall be made for investment purposes only and not with a view to their resale or further distribution unless such Shares,
at the time of their issuance and delivery, are registered under the Act, or, alternatively, at some time following such issuance their resale is determined by counsel for the Company to be exempt from the registration requirements of the Act and of
any other applicable law, regulation or ruling. Any Shares so registered shall be promptly listed with each securities exchange through which any class of the Company’s capital stock or other securities are traded. 
 (j) Legal Conditions on Delivery of Shares. The Company will not be obligated to deliver any Shares pursuant to the Plan or to remove any
restrictions from Shares previously delivered under the Plan until the Company’s counsel has approved all legal matters in connection with the issuance and delivery of such Shares; if the Company’s Shares are at the time of delivery listed
on any stock exchange or national market system, the Shares to be delivered have been listed or authorized to be listed on such exchange or system upon official notice of issuance; and all conditions of the Award have been satisfied or waived. If
the sale of Shares has not been registered under the Act, the Company may require, as a condition to exercise of the Award, such representations or agreements as counsel for the Company may consider appropriate to avoid violation of such Act. The
Company may require that any certificates evidencing Shares issued under the Plan bear an appropriate legend reflecting any restriction on transfer applicable to such Shares. 
  

 6 

 (k) Acceleration. The Committee shall be authorized to accelerate the exercise date of all
or any part of the options granted to a Participant under the Plan. 
 SECTION 3 
 OTHER STOCK AWARDS 
 3.1 Definition. A Stock Award is a grant of a
right to receive Shares in the future, subject to the terms and conditions, including a risk of forfeiture, established by the Committee. 
 3.2 Restricted Stock Awards. Each Stock Award shall be subject to such conditions, restrictions and contingencies as the Committee shall determine. These may include minimum vesting or service requirements and/or the
achievement of certain Performance Measures. The Committee may designate a single goal criterion or multiple goal standard for performance measurement purposes, with the measurement based on individual or Company performance as compared with that of
competitive companies, all at the discretion of the Committee. Each such grant or sale may constitute an immediate transfer of the ownership of common shares to the participant in consideration of the performance of services, entitling such
participant to voting, dividend and other ownership rights, but subject to the substantial risk of forfeiture and restrictions on transfer hereinafter referred to. 
 3.3 Other Terms and Conditions for Stock Awards. If determined by the Committee, any Shares granted to a Participant under a Stock Award shall be represented by a stock certificate registered in the name
of the Participant; provided, however, that: 
 (a) the Participant shall not be entitled to delivery of the stock certificate until any
applicable vesting period during which certain restrictions established by the Committee shall have expired; 
 (b) the Company may either
issue Shares subject to such restrictive legends and/or stop-transfer instructions as it deems appropriate or provide for retention of custody of the Shares during the applicable restriction period or vesting period imposed by the Committee under an
Award; 
 (c) the Participant may not sell, transfer, pledge, exchange, hypothecate or otherwise dispose of the Shares during the applicable
restriction period or vesting period, except that it may be transferred by assignment by the Participant to the extent provided in the applicable stock award agreement; 
 (d) a breach of the terms and conditions established by the Committee with respect to the Stock Award shall cause a forfeiture of the Stock Award, and any dividends withheld thereon; 
 (e) notwithstanding the foregoing, the Committee may provide in the applicable Award that no Shares be issued until the vesting or restriction period has
lapsed and further determine whether the Shares will be issued in escrow and/or be legended and subject to restrictions including the forfeiture of all or a part of the Shares; 
  

 7 

 (f) Each such grant will provide that the Stock Award covered by such grant or sale will be subject to a
“substantial risk of forfeiture” within the meaning of Section 83 of the Code for a period of not less than one year to be determined by the Committee at the date of grant and may provide for the earlier lapse of such substantial risk
of forfeiture in the event of a Change in Control; 
 (g) Each such grant will provide that during the period for which such substantial risk
of forfeiture is to continue, the transferability of the Stock Award will be prohibited or restricted in the manner and to the extent prescribed by the Committee at the date of grant (which restrictions may include, without limitation, rights of
repurchase or first refusal in the Company or provisions subjecting the Stock Award to a continuing substantial risk of forfeiture in the hands of any transferee); 
 (h) Any Stock Award may specify management objectives that, if achieved, will result in termination or early termination of the restrictions applicable to such Stock Award. Each grant may specify in respect of such
management objectives a minimum acceptable level of achievement and may set forth a formula for determining the number of shares on which restrictions will terminate if performance is at or above the minimum level, but fails short of full
achievement of the specified management objectives; 
 (i) Any such grant of Shares may require that any or all dividends or other
distributions paid thereon during the period of such restrictions be automatically deferred and reinvested in additional Shares, which may be subject to the same restrictions as the underlying award; and 
 (j) Each grant of restricted stock will be evidenced by an evidence of award and will contain such terms and provisions, consistent with this Plan, as
the Committee may approve. Unless otherwise directed by the Committee, all certificates representing shares of restricted stock will be held in custody by the Company until all restrictions thereon will have lapsed, together with a stock power or
powers executed by the Participant in whose name such certificates are registered, endorsed in blank and covering such Shares. 
 3.4
Payment for Stock Award. A Participant shall not be required to make any payment for a Stock Award unless the Committee so requires. 
 3.5 Forfeiture Provisions. In the event that a Participant terminates employment before the vesting period or restriction period has been met or has lapsed, such Stock Award will be forfeited; provided, however, that the
Committee may provide for the proration or full payout of a Stock Award in the event of: 
 (a) a termination of employment because of normal
retirement; 
 (b) with the consent of the Committee; 
 (c) death; 
  

 8 

 (d) total and permanent disability, as determined by the Committee; or 
 (e) a Change of Control has occurred, all subject to any other conditions as the Committee may determine or provide in an applicable Stock Award
agreement. 
 3.6 Acceleration. The Committee shall have the discretionary power to accelerate the date on which restrictions
lapse with respect to any Stock Award that has been outstanding for at least one year. 
 3.7 Performance Shares. The Committee
may also authorize the granting of Performance Shares that will become payable to a Participant upon achievement of specified management objectives. Each such grant may utilize any or all of the authorizations, and will be subject to all of the
requirements, contained in the following provisions: 
 (a) Number of Shares. Each grant will specify the number of Performance
Shares to which it pertains, which number may be subject to adjustment to reflect changes in compensation or other factors; provided, however, that no such adjustment will be made in the case of a Participant where such action would result in the
loss of the otherwise available exemption of the award under Section 162(m) of the Code. 
 (b) Performance Period. The
performance period with respect to each Performance Share will be such period of time (not less than two years), commencing with the date of grant as will be determined by the Committee at the time of grant which may be subject to earlier lapse or
other modifications in the event of a Change in Control. 
 (c) Performance Measures. Any grant of Performance Shares will
specify management objectives which, if achieved, will result in payment or early payment of the award, and each grant may specify in respect of such specified management objectives a minimum acceptable level of achievement and will set forth a
formula for determining the number of Performance Shares that will be earned if performance is at or above the minimum level, but falls short of full achievement of the specified management objectives. The grant of Performance Shares will specify
that, before the Performance Shares will be earned and paid, the Committee must certify that the management objectives have been satisfied. 
 (d) Payment of Award. Each grant will specify the time and manner of payment of Performance Shares that have been granted. Any grant may specify that the amount payable with respect thereto may be paid by the Company in cash,
in common shares or in any combination thereof and may either grant to the Participant or retain in the Committee the right to elect among those alternatives. 
 (e) Maximum Award. Any grant of Performance Shares may specify that the amount payable with respect thereto may not exceed a maximum specified by the Committee on the date of grant. 
 (f) Dividend Payments. The Committee may, at or after the date of grant of Performance Shares, provide for the payment of dividend
equivalents to the holder thereof on either a current or deferred or contingent basis, either in cash or in additional Shares. 
  

 9 

 (g) Award Agreement. Each grant of Performance Shares will be evidenced by an evidence of
award and will contain such other terms and provisions, consistent with this Plan, as the Committee may approve. 
 3.8 Other
Awards. 
 (a) Discretionary Awards. The Committee may, subject to limitations under applicable law, grant to any
Participant such other awards that may be denominated or payable in, valued in whole or in part by reference to, or otherwise based on, or related to, the Company’s Shares or factors that may influence the value of such Shares, including,
without limitation, convertible or exchangeable debt securities, other rights convertible or exchangeable into Shares, purchase rights for Shares, awards with value and payment contingent upon performance of the Company or specified subsidiaries,
affiliates or other business units thereof or any other factors designated by the Committee, and awards valued by reference to the book value of Shares or the value of securities of, or the performance of specified subsidiaries or affiliates or
other business units of the Company. The Committee shall determine the terms and conditions of such awards. Shares delivered pursuant to an award in the nature of a purchase right granted under this Section 3.8 shall be purchased for such
consideration, paid for at such time, by such methods, and in such forms, including, without limitation, cash, common shares, other awards, notes or other property, as the Committee may determine. 
 (b) Cash Awards. Cash awards, as an element of or supplement to any other award granted under this Plan, may also be granted pursuant to
this Section of this Plan. 
 (c) Bonus or Other Awards. The Committee may grant Shares as a bonus, or may grant other awards
in lieu of obligations of the Company or a subsidiary to pay cash or deliver other property under this Plan or under other plans or compensatory arrangements, subject to such terms as shall be determined by the Committee. 
 3.9 Escrow of Stock Certificates. To enforce any restrictions on Award Shares, the Committee may require their holder to deposit the
certificates representing Award Shares, with stock powers or other transfer instruments approved by the Committee endorsed in blank, with the Company or an agent of the Company to hold in escrow until the restrictions have lapsed or terminated. The
Committee may also cause a legend or legends referencing the restrictions to be placed on the certificates. 
 3.10 Repurchase
Rights. 
 (a) General. If a Stock Award is subject to vesting or other forfeiture conditions, the Company shall have
the right, during such period after the Participant’s separation from service with the Company as is specified by the Committee to repurchase any or all of the Award Shares that were unvested or otherwise subject to forfeiture as of the date of
that separation of service. The repurchase price shall be such price as is determined by the Committee and set forth in the Award Agreement. The repurchase price shall be paid in cash. 
 (b) Procedure. The Company or its assignee may choose to give the Participant a written notice of exercise of its repurchase rights under
this Section 3.10. However, the Company’s failure to give such a notice shall not affect its rights to repurchase any Award Shares. The Company must, however, tender the repurchase price during the period specified in the applicable Award
Agreement in order to exercise such rights. 
  

 10 

 SECTION 4 
 OPERATION AND ADMINISTRATION 
 4.1 Effective Date. This Plan shall be effective as of
January 1, 2007, subject to approval of the Company’s shareholders at its 2007 annual meeting (the “Effective Date”). No awards or grants may be made after the termination date of December 31, 2016, unless terminated
sooner by the Company’s Board of Directors pursuant to Section 6 herein. Any Awards granted prior to the date of the termination of the Plan shall remain in effect as long as any Awards under it are outstanding; provided, however, that, to
the extent required by the Code, no Incentive Stock Options may be granted under the Plan on a date that is more than ten years form the date the Plan is adopted or, if earlier, the date the Plan is approved by shareholders. 
 4.2 Limits on Award Under the Plan. 
 (a) Number of Shares. A maximum of SEVEN MILLION FIVE HUNDRED THOUSAND (7,500,000) Shares may be delivered in satisfaction of Awards under the Plan and, of that amount not more than TWO MILLION (2,000,000) Shares may
be issued as Incentive Stock Options, subject to adjustments provided for in Section 4.2(f) below relating to changes in the capitalization of the Company. For purposes of the preceding sentence, Shares that have been forfeited, expired or
canceled in accordance with the terms of the applicable Award, and any Shares tendered in satisfaction of the exercise price or withheld by the Company to satisfy tax withholding requirements shall not be considered to have been delivered under the
Plan and shall be eligible for issuance under the Plan. The number of Shares delivered under an Award shall be determined net of any previously acquired Shares tendered by the Participant in payment of the exercise price or of withholding taxes.

 Any Shares covered by an Award granted under the Plan shall not be counted as used unless and until they are actually issued and delivered
to a Participant. If any Shares or Awards are repurchased by the Company prior to vesting, the Shares not acquired under such Award shall revert to and again become available for issuance under the Plan. Any Shares that are issued by the Company,
and any awards that are granted by, or become obligations of, the Company, through the assumption by the Company or an affiliate of, or in substitution for, outstanding awards previously granted by an acquired company shall not be counted against
the Shares available for issuance under the Plan. 
 (b) Type of Shares. Shares delivered by the Company under the Plan may be
authorized but unissued Shares or previously issued Shares acquired by the Company and held in treasury. No fractional Shares will be delivered under the Plan. 
 (c) Forfeiture of Options. Any Shares granted under the Plan that are forfeited because of the failure to meet an Award contingency or condition shall again be available for delivery pursuant to new
Awards granted under the Plan. To the extent any Shares covered by an Award are not delivered to a Participant or beneficiary because the Award is forfeited or canceled, such Shares shall not be deemed to have been delivered for purposes of
determining the maximum number of Shares available for delivery under the Plan. 
  

 11 

 (d) Use of Shares as Payment. If the exercise price of any stock option granted under the
Plan is satisfied by tendering Shares to the Company (by either actual delivery or by attestation), only the number of Shares issued net of the Shares tendered shall be deemed delivered for purposes of determining the maximum number of Shares
available for delivery under the Plan. 
 (e) Substitution of Shares. Shares delivered under the Plan in settlement, assumption
or substitution of outstanding awards (or obligations to grant future awards) under the plans or arrangements of another entity shall not reduce the maximum number of Shares available for delivery under the Plan, to the extent that such settlement,
assumption or substitution results from the Company or a Related Company acquiring another entity (or an interest in another entity). 
 (f)
Adjustment of Number of Shares. In the event of a corporate transaction involving the Company (including, without limitation, any stock dividend, forward or reverse stock split, extraordinary cash dividend, recapitalization,
reorganization, merger, consolidation, split-up, spin-off, combination or exchange of Shares), then (A) the number of Shares reserved for issuance under this Plan, (B) the exercise price, base price or redemption price applicable to
outstanding Awards, and (C) the number of Shares subject to outstanding Awards shall be proportionately adjusted, subject to any required action by the Board or the stockholders of the Company and compliance with applicable law. Fractions of a
Share will not be issued but will be paid in cash at the fair market value of such fraction of a share or will be rounded down to the nearest whole share, as determined by the Committee in its sole discretion. Action by the Committee may include
adjustment of: (i) the number and kind of Shares which may be delivered under the Plan; (ii) the number and kind of Shares subject to outstanding Awards; and (iii) the exercise price of outstanding Options; as well as any other
adjustments that the Committee determines to be equitable. 
 In the event of any change in the Shares subject to the Plan, or subject to or
underlying any Award, by reason of any reorganization, recapitalization, merger, consolidation, spin-off, combination, exchange of shares or other corporate exchange, any distribution to stockholders of common stock other than regular cash
dividends, or any transaction similar to the foregoing (but not including either a stock dividend or a stock split, which shall be addressed under Section 4.2(f) above), the Committee in its sole discretion and without liability to any person
may make such substitution or adjustment, if any, as it deems to be equitable to (i) the type, class(es) and maximum number of securities subject to the Plan pursuant to Section 4.2(a), (ii) the exercise price, base price or
redemption price applicable to outstanding Awards, (iii) the type, class(es) and number of securities subject to outstanding Awards, or (iv) any other affected terms of any outstanding Awards. 
 (g) Vesting. Without limiting the generality of Section 1.4, the Committee may determine the time or times at which an Award will vest
(i.e., become free of forfeiture restrictions) or become exercisable and the terms on which an Award requiring exercise will remain exercisable. 
  

 12 

 Unless the Committee expressly provided otherwise, a Participant’s “employment or other service
relationship with the Company and any Related Company” will be deemed to have ceased when the individual is no longer employed by or in a service relationship with the Company or any Related Company. Except as the Committee otherwise
determines, with respect to a Participant who is an employee of the Company or any Related Company, such Participant’s employment or other service relationship with the Company and any Related Company will not be deemed to have ceased during a
military, sick or other bona fide leave of absence if such absence does not exceed 90 days or, if longer, so long as the Participant retains a right by statute or by contract to return to employment or other service relationship with the Company or
any Related Company. Unless the Committee determines otherwise, vesting of any Award under this Plan will be suspended during any unpaid leave of absence. 
 4.3 Limit on Distribution. Distribution of Shares or other amounts under the Plan shall be subject to the following: 
 (a) Compliance with Securities Laws. Notwithstanding any other provision of the Plan, the Company shall have no liability to deliver any Shares under the Plan or make any other distribution of benefits
under the Plan unless such delivery or distribution would comply with all applicable laws (including, without limitation, the requirements of the Act, and the applicable requirements of any securities exchange or similar entity). 
 (b) Issuance Without Certificates. To the extent that the Plan provides for issuance of stock certificates to reflect the issuance of
Shares, the issuance may be effected on a non-certificated basis, to the extent not prohibited by applicable law or the applicable rules of any stock exchange. 
 4.4 Tax Withholding. Whenever the Company proposes or is required to distribute Shares under the Plan, the Company may require the recipient to remit to the Company an amount sufficient to satisfy any
Federal, state and local tax withholding requirements prior to the delivery of any certificate for such Shares or, in the discretion of the Committee, the Company may withhold from the Shares to be delivered Shares sufficient to satisfy all or a
portion of such tax withholding requirements. 
 4.5 Payment Shares. Subject to the overall limitation on the number of Shares
that may be delivered under the Plan, the Committee may use available Shares as the form of payment for compensation, grants or rights earned or due under any other compensation plans or arrangements of the Company or a Related Company, including
the plans and arrangements of the Company or a Related Company acquiring another entity (or an interest in another entity). 
 4.6
Transferability. Except as otherwise provided by the Committee, Awards under the Plan are not transferable except as designated by the Participant by will or by the laws of descent and distribution or pursuant to a domestic relations
order entered by a court of competent jurisdiction. Notwithstanding anything in this Section to the contrary, the Participant may transfer an option granted under this Plan to or for the benefit of his or her family members (including, without
limitation, to a trust for the benefit of the Participant’s family members or to a partnership or limited family partnership or other entity established for the benefit of one or more members of the Participant’s family), subject to such
limits as the Committee may establish. Each transferee shall remain subject to all the terms and conditions applicable to the option prior to such transfer. 
  

 13 

 4.7 Form and Time of Elections. Unless otherwise specified herein, each election required
or permitted to be made by any Participant or other person entitled to exercise an option under the Plan, and any permitted modification, or revocation thereof, shall be in writing filed with the Committee at such times, in such form, and subject to
such restrictions and limitations, not inconsistent with the terms of the Plan, as the Committee shall require. 
 4.8 Agreement With
Company. At the time of an Award to a Participant under the Plan, the Committee may require a Participant to enter into an agreement with the Company (the “Agreement”) in a form specified by the Committee, agreeing to the
terms and conditions of the Plan and to such additional terms and conditions, not inconsistent with the Plan, as the Committee may, in its sole discretion, prescribe. The Committee need not require the execution of any such agreement by a
Participant in which case acceptance of the Award by the Participant will constitute agreement to the terms of the Award. 
 The Committee
may also choose to document the evidence of its approval of an Award in the form of an agreement, certificate, resolution or other type or form of writing or other evidence approved by the Committee that sets forth the terms and conditions of the
Award. Evidence of an Award may also be in an electronic medium and may be limited to a notation on the books and records of the Company. The Company may deliver by email or other electronic means (including posting on a web site maintained by the
Company or by a third party under contract with the Company) all documents relating to the Plan or any Award thereunder (including without limitation, prospectuses required by the SEC) and all other documents that the Company is required to deliver
to its security holders (including without limitation, annual reports and proxy statements). 
 4.9 Limitation of Implied
Rights. 
 (a) No Collateral or Secured Interest. Neither a Participant nor any other person shall, by reason of the
Plan, acquire any right in or title to any assets, funds or property of the Company or any Related Company whatsoever, including, without limitation, any specific funds, assets, or other property which the Company or any Related Company, in their
sole discretion, may set aside in anticipation of a liability under the Plan. Each Participant shall have only a contractual right to the stock payable under the Plan, unsecured by any assets of the Company or any Related Company. Nothing contained
in the Plan shall constitute a guarantee that the assets of such companies shall be sufficient to pay any benefits to any person. 
 (b)
No Guarantee of Employment. The Plan does not constitute a contract of employment, and the receipt of any Award or option grant will not give any employee the right to be retained in the employ of the Company or any Related Company,
nor any right or claim to any benefit under the Plan, unless such right or claim has specifically accrued under the terms of the Plan. Except as otherwise provided in the Plan, no Award under the Plan shall confer upon the holder thereof any right
as a shareholder of the Company prior to the date on which the individual fulfills all conditions for receipt of such rights. 
  

 14 

 4.10 Evidence. Evidence required of Participant under the Plan may be by certificate,
affidavit, document or other information which the person acting on it considers pertinent and reliable, and signed, made or presented by the proper party or parties. 
 4.11 Action by Company or Related Company. Any action required or permitted to be taken by the Company or any Related Company shall be by resolution of its Board, or by action of one or more members of
the Board (including a committee of the Board) who are duly authorized to act for the Board, or (except to the extent prohibited by applicable law or applicable rules of any stock exchange) by a duly authorized officer of the Company. 
 4.12 Change of Control. Unless otherwise set forth in an applicable option agreement or Award agreement, upon a Change in Control the
Committee may, in its discretion, revise, alter, amend or modify any option agreement or Award in any manner it deems appropriate. 
 4.13
Annual Grant to Non-Employee Directors. Consistent with the terms of this Plan and as reflected in individual Award agreements, the Committee and the Board may establish annual grant Awards or other Awards to directors who are not
employees on such terms and conditions as it determines, including providing for director fee or retainer payments through the issuance of Awards and establish the timing of the effectiveness of such Awards. Such Awards may also be made by
establishing annual grants that are made effective as of the election of directors after each annual shareholder meeting, in such amounts as the Board may determine from time to time. To the extent that the Board amends, suspends or terminates such
annual or periodic grants programs for non-employee directors, no approval or consent of such non-employee director shall be necessary to take such action with respect to Awards that have not yet been granted. 
 4.14. Leave of Absence. A Participant will not cease to be an employee in the case of any leave of absence approved by the Company. For an
Incentive Stock Option, no such leave may exceed 90 days unless reemployment upon expiration of such leave is guaranteed by statute or contract. If reemployment upon expiration of a leave of absence approved by the Company is not so guaranteed, then
three (3) months following the 91st day of such leave any Incentive Stock Option held by the Participant will cease to be treated as an Incentive Stock Option and will be treated for tax purposes as a nonqualified stock option. 
 4.15 Compliance with Code Section 409A. Notwithstanding any provision of this Agreement to the contrary, if one or more of the
payments or benefits received or to be received by a Participant pursuant to an Award would constitute deferred compensation subject to Section 409A of the Code and would cause the Participant to incur any penalty tax or interest under
Section 409A of the Code or any regulations or Treasury guidance promulgated thereunder, the Company may reform such provision to maintain to the maximum extent practicable the original intent of the applicable provision without violating the
provisions of Section 409A of the Code; provided, however, that if no reasonably practicable reformation would avoid the imposition of any penalty tax or interest under Section 409A of the Code, no payment or benefit will be provided under
the Award, the Award will be deemed null, void and of no force and effect, and the Company shall have no further obligation with respect to the Award or the failure to issue any Shares or other compensation hereunder. 
  

 15 

 SECTION 5 
 COMMITTEE 
 5.1 Administration. The authority to control and manage the
operation and administration of the Plan shall be vested in a committee of the members of the Board who are “independent directors”, as determined under Rule 16b-3 of the Securities Exchange Act of 1934 or any successor rule,
Section 162(m) of the Code, and any rules and regulations of the stock exchange on which the Company’s Shares are listed in accordance with this Section 5. The Board of Directors of the Company has designated the Compensation
Committee of the Board, comprised of not less than two (2) members, to be responsible for administering the Plan. 
 5.2 Selection
of Committee. The Committee shall be selected by the Board, and shall consist of two (2) or more independent members of the Board. 
 5.3 Powers of Committee. The authority to manage and control the operation and administration of the Plan shall be vested in the Committee, subject to the following: 
 (a) Grant of Awards. Subject to the provisions of the Plan, the Committee will have the authority and discretion to select from among the
Eligible Employees or Eligible Directors those persons who shall receive Awards, to determine the time or times of receipt, to determine the types of Awards and the number of Shares covered by the Awards, to establish the terms, conditions,
performance criteria, restrictions, and other provisions of such Awards, and (subject to the restrictions imposed by Section 6) to cancel or suspend Awards. In making such Award determinations, the Committee may take into account the nature of
services rendered by the individual, the individual’s present and potential contribution to the Company’s success and such other factors as the Committee deems relevant. 
 (b) Section 162(m) Limits. Subject to the provisions of the Plan, the Committee will have the authority and discretion to determine
the extent to which Awards under the Plan will be structured to conform to the requirements applicable to performance-based compensation as described in Section 162(m) of the Code, and to take such action, establish such procedures, and impose
such restrictions at the time such Awards are granted as the Committee determines to be necessary or appropriate to conform to such requirements. 
 (c) Interpretation of Plan. The Committee will have the authority and discretion to interpret the Plan, to establish, amend, and rescind any rules and regulations relating to the Plan, to determine the terms and provisions of
any agreements made pursuant to the Plan, and to make all other determinations that may be necessary or advisable for the administration of the Plan. 
 (d) Final Authority. Any interpretation of the Plan by the Committee and any decision made by it under the Plan is final and binding. 
 (e) Time of Grant. Except as otherwise expressly provided in the Plan, where the Committee is authorized to make a determination with
respect to any Award, such determination shall be made at the time the Award is made, except that the Committee may reserve the authority to have such determination made by the Committee in the future (but only if such reservation is made at the
time the Award is granted and is expressly stated in the Agreement reflecting the Award). 
  

 16 

 (f) Action by Committee. In controlling and managing the operation and administration of
the Plan, the Committee shall act by a majority of its then members, by meeting or by writing filed without a meeting. The Committee shall maintain and keep adequate records concerning the Plan and concerning its proceedings and acts in such form
and detail as the Committee may decide. 
 5.4 Delegation by Committee. Except to the extent prohibited by applicable law or
the applicable rules of a stock exchange, the Committee may allocate all or any portion of its responsibilities and powers to any one or more of its members and may delegate all or any part of its responsibilities and powers to any person or persons
selected by it. Any such allocation or delegation may be revoked by the Committee at any time. 
 5.5 Information to be Furnished to
Committee. The Company and Related Companies shall furnish the Committee with such data and information as may be required for it to discharge its duties. The records of the Company and Related Companies as to an employee’s or
Participant’s employment, termination of employment, leave of absence, reemployment and compensation shall be conclusive on all persons unless determined to be incorrect. Participants and other persons entitled to benefits under the Plan must
furnish the Committee such evidence, data or information as the Committee considers desirable to carry out the terms of the Plan. 
 SECTION 6

 AMENDMENT AND TERMINATION 
 6.1 Amendment and Termination. The Board may at any time amend, suspend, or terminate this Plan. 
 6.2
Stockholder Approval. The Company shall obtain the approval of the Company’s shareholders for any amendment to this Plan if shareholder approval is necessary or desirable to comply with any applicable law or with the requirements
applicable to the grant of Awards intended to be Incentive Stock Options; provided, however, that the Company shall obtain shareholder approval of any of the following: (a) other than an increase under Section 4.2, an increase in the
Shares reserved for issuance hereunder; (b) an expansion of the class of Participants eligible to receive Awards hereunder; or (c) any amendment of outstanding Options that effects a repricing of such Awards. For Stock Awards to continue
to be eligible to qualify as “performance-based compensation” under Code Section 162(m), the Company’s shareholders must re-approve the material terms of the performance goals included in the Plan by the date of the first
stockholder meeting that occurs in the fifth year following the year in which the shareholders first approved the Plan. The Board may also, but need not, require that the Company’s shareholders approve any other amendments to this Plan.

 6.3 Effect. No amendment, suspension, or termination of this Plan, and no modification of any Award even in the absence of
an amendment, suspension, or termination of this Plan, shall impair any existing contractual rights of any Participant unless the affected Participant consents to the amendment, suspension, termination, or modification. 
  

 17 

 Notwithstanding anything herein to the contrary, no such consent shall be required if the Committee determines, in its
sole and absolute discretion, that the amendment, suspension, termination, or modification: (a) is required or advisable in order for the Company, this Plan or the Award to satisfy applicable law, to meet the requirements of any accounting
standard or to avoid any adverse accounting treatment, or (b) in connection with any transaction or event described in Section 4.2, is in the best interests of the Company or its shareholders. 
 The Committee may, but need not, take the tax or accounting consequences to affected Participants into consideration in acting under this
Section 6.3. Those decisions shall be final, binding and conclusive. Termination of this Plan shall not affect the Committee’s ability to exercise the powers granted to it under this Plan with respect to Awards granted before the
termination of Shares issued under such Awards even if those Shares are issued after the termination. 
 SECTION 7 
 DEFINED TERMS 
 For purposes of the
Plan, the terms listed below shall be defined as follows: 
 (a) Award. The term “Award” or “Awards” shall
mean any award or benefit granted to any Participant made by the Committee under the Plan, including, without limitation, the grant of Options or Stock Awards. The Committee shall determine the type or types of Awards to be made to each Participant
under the Plan and shall approve the terms and conditions governing such Awards. Awards may be granted singly, in compensation or in tandem so that the settlement or payment of one automatically reduces or cancels the other. Awards may also be made
in combination or in tandem with, in replacement of, as alternatives to, or as the payment form for, grants or rights under any other employee or compensation plan of the Company, including the Plan of any acquired entity. Nothing in this Plan shall
authorize the Committee to grant an automatic reload option that provides for the automatic award of additional stock options upon the exercise of such Awards. 
 (b) Board. The term “Board” shall mean the Board of Directors of the Company. 
 (c) Change of Control. The term “Change of Control” means in the event that: 
 (1) Any person (as
such term is used in Section 13 of the Securities Exchange Act of 1934 and the rules and regulations thereunder and including any affiliate or associate of such person, as defined in Rule 12b-2 under said Act, and any person acting in concert
with such person) directly or indirectly acquires or otherwise becomes entitled to vote more than thirty-five percent (35%) of the voting power entitled to be cast at elections for directors (“Voting Power”) of the Company; or

 (2) There occurs any merger or consolidation of the Company, or any sale, lease or exchange of all or any substantial part of the
consolidated assets of the Company and its subsidiaries to any other person or, in the case of a merger or consolidation, the holders of outstanding stock of the Company entitled to vote in elections of directors immediately before such merger or
consolidation (excluding any affiliate) hold less than fifty percent (50%) of the 
  

 18 

 Voting Power of the survivor of such merger or consolidation or its parent; or in the case of any such sale, lease or
exchange, the Company does not own at least 50% of the Voting Power of the acquiring entity or person; or 
 (3) The election to the Board,
without the approval or recommendation of the incumbent Board, of the lesser of (i) four directors or (ii) directors constituting a majority of the number of directors of the Company then in office. 
 (d) Code. The term “Code” means the Internal Revenue Code of 1986, as amended. A reference to any provision of the Code
shall include reference to any successor provision of the Code. 
 (e) Committee. The term “Committee” shall
mean the members of the duly constituted Compensation Committee of the Company, consisting of independent members of the Board that satisfy the provisions of Rule 16b-3 of the Exchange Act and, if applicable, Section 162(m) of the Code. In the
event that the Shares are listed with Nasdaq, the Committee shall comply with applicable Nasdaq rules and listing standards. 
 (f)
Disability. The term “Disability” shall mean the inability of a Participant to engage in any substantial, gainful activity by reason of any medically determinable physical or mental impairment which can be expected to
result in death or which has lasted or can be expected to last for a continuous period of not less than twelve months. 
 (g) Eligible
Employee or Eligible Director. The term “Eligible Employee” or “Eligible Director” shall mean any employee or director of the Company or a Related Company that performs key services for such Company or a Related
Company. For any incentive stock options granted under the Plan, Eligible Employee must be deemed to be a key executive or management employee of the Company or a Related Company. 
 (h) Exchange Act. The term “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 (i) Fair Market Value. For purposes of determining the “Fair Market Value” of a share of Stock, the following rules shall
apply: 
 (1) Listed Stock. If the Shares are traded on any established stock exchange or quoted on a national market system,
Fair Market Value shall be the closing sales price for the Shares as quoted on that stock exchange or system for the date the value is to be determined (the “Pricing Date”) as reported in The Wall Street Journal or a similar
publication. If no sales are reported as having occurred on the Pricing Date, Fair Market Value shall be that closing sales price for the last preceding trading day on which sales of Shares are reported as having occurred. If no sales are reported
as having occurred during the five trading days before the Pricing Date, Fair Market Value shall be the closing bid for Shares on the Pricing Date (or on the last preceding date on which a closing bid for the Shares was made). If Shares are listed
on multiple exchanges or systems, Fair Market Value shall be based on sales or bid prices on the primary exchange or system on which Shares are traded or quoted. 
  

 19 

 (2) Stock Quoted by Securities Dealer. If Shares are regularly quoted by a recognized
securities dealer but selling prices are not reported on any established stock exchange or quoted on a national market system, Fair Market Value shall be the mean between the high bid and low asked prices on the Pricing Date. If no prices are quoted
for the Pricing Date, Fair Market Value shall be the mean between the high bid and low asked prices on the last preceding trading day on which any bid and asked prices were quoted. 
 (3) No Established Market. If Shares are not traded on any established stock exchange or quoted on a national market system and are not
quoted by a recognized securities dealer, and unless otherwise required by applicable law, the Committee (following guidelines established by the Board or Committee) will determine Fair market Value in good faith using any reasonable valuation
method. The Committee will consider the following factors, and any others it considers significant, in determining Fair Market Value: (i) the price at which other securities of the Company have been issued to purchasers other than employees,
directors, or consultants; (ii) the Company’s stockholder’s equity, prospective earning power, dividend-paying capacity, present value of future cash flows, and value of tangible and intangible assets, if any; and (iii) any other
relevant factors, including the economic outlook for the Company and the Company’s industry, the Company’s position in that industry, the Company’s goodwill and other intellectual property, and the values of securities of other
businesses in the same industry. 
 (j) Participant. The term “Participant” means those persons that have been
granted an Option or Award by the Committee under the terms of the Plan. 
 (k) Performance Measures. The term
“Performance Measures” means those criteria established by the Committee to measure individual or Company performance, including relevant standards imposed to compare Company performance against the results of comparable companies
and any individually designed and measurement standards selected by the Company. 
 (l) Related Company or Related Companies.
For purposes of this Agreement, the term “Related Company” means (i) any corporation, partnership, joint venture or other entity during any period in which it owns, directly or indirectly, at least fifty percent (50%) of the
voting power of all classes of stock of the Company (or successor to the Company) entitled to vote; and (ii) any corporation, partnership, joint venture or other entity during any period in which at least a fifty percent voting or profits
interest is owned, directly or indirectly, by the Company, by any entity that is a successor to the Company, or by any entity that is a Related Company by reason of clause (i) next above. 
 (m) Retirement. The term “Retirement” means the age or years of service requirements established by the Committee to be
used in determining the exercisability of any Option and vesting of such Option. 
 (n) Stock or Shares. The term
“Stock” or “Shares” shall mean Shares of common stock of the Company. 
 (o) Stock Award. The
term “Stock Award” is an award made in stock or denominated in units of stock. All or part of any Stock Award may be subject to conditions established by the Committee, and set forth in the Award Agreement, which may include, but is
not limited to, continuous service with the Company, achievement of specific business objectives, and other measurement of individual, business unit, or Company performance. 
  

 20 

 (p) Vested Option. The term “Vested Option” means an option that is not
subject to forfeiture and may be exercised by the Participant in accordance with its terms. For purposes of the Plan, a Vested Option may vest over a period of time in incremental amounts as determined on the basis of performance measures or
completion of a period of service. 
  

 21Employment Agreement

 Exhibit 10.01 
 LMF Employ Agree 
 Page 1 of 5 
 EXECUTIVE EMPLOYMENT AGREEMENT 
 Lowell M. Fisher 
 Whereas Certified Diabetic Services, Inc, a State of Delaware Corporation (“the Company”) is in the business as a diabetic supplies mail order business
complemented by other mail order business, products and services for it clients; and 
 Whereas Lowell
M. Fisher, age 72, (“Executive”) located at 7149 Steepleview Road, Woodbury, Minnesota 55125 has been providing services under an existing contract that commenced October 31st
 2004 and expires March 31st, 2005. The Executive has been operating as its Chairman of the Board,
during that time, positioning the company for the raise of capital, negotiating with investors and investment funds, organizing the governance issues, working with lending institutions, developing the business plan, developing and maintaining the
operating systems and accounting systems, working with counsel to defend the Company from past employee legal action, and providing general broad management services to increase shareholder value for the Company and; 
 Whereas, the Company wishes to retain the services of the Executive and the Executive wishes to have his services be retained by the Company. 
 Now, therefore, the parties agree as follows: 
 Term of this Agreement: The terms and conditions of this agreement and the employment of the Executive shall continue for three (3) consecutive one (1) year periods commencing on
April 1st, 2005 and terminating on March 31st, 2008. 
 Services of the Executive: Executive is hereby expected to perform services for the Company for the term of the agreement in such
capacity as by title and duties, Chairman of the Board of Directors whose responsibilities are defined in the Hand Book for Directors, responsible for conducting and organizing the board meetings, is responsible for outside professionals consisting
of legal counsel, monthly accounting review and auditor functions. In addition to the Board responsibilities, the Executive is to perform operational and general management duties including upgrading existing operational control systems, developing
management information systems, negotiate with investors and funding sources, provide strategic direction and over all management direction to the President and CEO reporting to the Chairman of the Board. 
 Change of Control: In the event of a change of control of the Company as defined by either the tax code,
SEC regulations, company Articles of Incorporation, its By-Laws or change of control from the sale, merger or takeover of 15% of the Company by individuals or another entity for whatever reason, this agreement shall remain in full force and effect
until its natural termination on March 31st, 2008. 
 Compensation: The Company agrees to pay the Executive $180,000 per year during the first annual year, 2005,
and continuing through the third consecutive year through March 31st 2008. 

 LMF Employ Agree 
 Page 2 of
5 
 Any increases in compensation during the term of this agreement are to be determined by the Board of Directors. Unpaid compensation of any sort in this
agreement shall be accrued and mutually agreed to be paid as is economically reasonable by the Company, further, upon the natural termination of this agreement, any unpaid compensation shall be paid over a mutually agreed upon period of time. In the
event of retirement or resignation by the Executive or termination by the Company with or without cause, before the natural termination of this agreement, all compensation ceases. 
 Insurance: The company agrees to pay all of the Executive’s family health and hospitalization insurance (“the Plan”) expenses with the exception of those portions of the Plan that are determined
to be paid by the Executive. In the event that certain medical coverage is not within the plan and those items missing are not covered by the Plan including family out of plan coverage for dental, eye, and dermatology expenses are agreed to be paid
by the Company for the term of this agreement. In addition, if and when the Executive reaches retirement as determined by covered by Medicare Part A and B, the company shall provide at its expense a full supplemental policy for the life of the
Executive. The Company, if financially reasonable as determined by the Board of Directors, at its expense shall provide Key man life insurance directing the Company to be its beneficiary and an amount of life insurance of an equal amount to Key Man
insurance for the Executive as an individual shall be paid for by the company for the life of the Executive directing the Spouse or Life Estate to be the beneficiary. 
 Bonus Plan: 
 In addition to the above compensation the Company
agrees to set up an annual performance bonus pool of funds that include the Executive, other key executives and employees in the Company. The bonus pool plan, as yet undetermined for 2005, is to be set during the 4th quarter of the previous year by the board of Directors, the Executive and the President CEO. The Executive has a shared responsibility with the President / CEO for the development
of the overall plan for the company. The Executive, the President / CEO and the Board of Directors must agree that the performance goals are achievable for the Company as set forth in each yearly plan. In addition the Executive and the President /
CEO are to insure that other executives and employees that are to be included in the bonus pool, agree to the goals as set forth in the plan. The amount of the bonus pool to be paid to the Executive is based upon the outcome and performance of the
Company and is part of the overall bonus pool. The bonus pool goals are to include a net profit goal for the company and the bonus pool can be paid only after and when the net income goal is achieved. The amount of the bonus pool to be paid shall
not reduce the amount of net profit earned by the company and must be earned over and above the net profit of the Company. 
 401K Plans: 

The Executive shall be enrolled in the 401K plans provided for by the Company. The Executive shall be deemed 100% vested in 401 K Plans after attaining the age of 60.

 LMF Employ Agree 
 Page 3 of
5 
 Tax and Accounting Service: 
 The Company at its
expense shall provide fully paid annual tax accounting and general accounting advice at no cost to the Executive, however amount of these services shall not exceed $2,000 per year. 
 Moving Expenses: 
 The Company desires that the Executive move and change residence from the Executive’s home
location in the State of Minnesota to becoming a resident of the State of Florida. Therefore the Executive shall be compensated for any such moving expenses consisting of the following and including any of the Executive’s interim rental housing
prior to locating. These expenses include but are not limited to closing costs on the new home at the new location, selling commissions of the existing home in Minnesota, complete packing service and shipping of the contents to Florida home,
replacement insurance of all contents of the Executive’s Minnesota home, shipment and unloading of all of the contents of the Executive’s Minnesota home within the new location, plus any storage and storage insurance before or after
shipment from the former place of residence or to the new place of residence and the expense of one trip to Minnesota to close up the residence and execute the sale. Closing cost reimbursement of the new location shall not exceed $10,000, selling
expenses on the existing Minnesota residence shall not exceed reimbursement in the amount of $25,000. The expense of moving the Executive shall be determined by the Executive obtaining and selecting the lowest of two bids from moving companies which
are to include the expense of shipping all personal and household goods, damage and loss insurance, the packing and cost of any storage for the Executive’s personal and household goods. 
 Communication Expenses: The Company shall pay all expenses for desktop and laptop computers, monitors, cabling, wiring and equipment required to provide wired and
wireless communication of email, web access and any remote connections to and from the office within the Executives residence. In addition the company shall pay the monthly expenses for cellular phones and any high-speed communications service
charges to deliver these services. The company shall not pay for landline or landline long distance calls considered as personal that belong to the Executive. The Executive shall deduct any such land line personal calls for communication expenses.

 Travel Expenses: Reasonable and normal expenses for travel including vehicle, train, air and ground expenses shall be reimbursed by the Company to
the Executive on a prompt basis. The Executive is responsible for providing the proper receipts and documentation as acceptable to the Company accounting and audit rules and regulations for all such travel. Spousal travel is permitted, providing
that the Executive is responsible for those expenses that may be in addition to the Executive’s travel expense. In the event that the Executive is traveling for business 3 consecutive days or over a week-end, all of the expense of Spousal
travel shall be paid for by the Company. Business class shall be used by the Executive when travel exceeds 4 consecutive hours. In addition the company shall pay to the Executive an auto allowance in an amount not to exceed $1,500 per month to be
used for an auto lease, licenses and insurance. State, local and Federal taxes shall be paid for by the Company and grossed up to provide for this allowance to be tax-free to the Executive. 

 LMF Employ Agree 
 Page 4 of
5 
 Vacation: The Executive shall be entitled to a fully paid yearly vacation consisting of thirty (30) days excluding the normal holiday
closing of the Company between Christmas and New Years of each year which are not to be considered as part of the 30 days. Except by written approval of the Board of Directors, no more than fifteen (15) days may be taken by the Executive as
contiguous to each other and must have one month separation between any fifteen (15) days contiguous. Vacation unused by the Executive may be accrued from year to year at the discretion of the Executive. The Executive may be compensated with
fully vested stock options at the end of each fiscal year for any unused vacation during one single year, at the option of the executive.. The stock options shall be equal in value to the compensation and price of the option shall be based upon the
average of the 90 day trailing price of the stock as calculated at the end of each fiscal year. 
 Termination: The Company may terminate the
Executive at any time, for cause, by written notice from the Board of Directors 
 Company Stock and Stock Options: The Executive may from time to
time purchase or may be awarded or presently may hold stock, warrants or stock options of the Company. The Stock, Warrants or Stock Options may be exercisable on a cashless-transaction basis where the Executive receives the difference between the
optimum market price for the option and the exercise price of the options less any applicable taxes, as required, to be deducted by the Company. 
 The Stock options are to have 10-year life and are not redeemable or to be cancelled by the Company upon termination of the Executive by either the Company or the Executive. All of the features including the 10-year life for Executive
options, the non-redeemable features and the cashless transaction features shall supersede any current or future stock, warrants or stock option policies or other agreements of the Company regarding Company stock, warrants, or stock options..

 Limited effect by Waiver of the Company: Should the Company waive or breach of any provision of this agreement by the Executive, that waiver shall
not operate or be construed as a waiver of further breach by the Executive. 
 Severability: If, for any reason, any provision of this agreement is
held invalid, all other provisions of this agreement shall remain in effect. If these agreements held invalid or cannot be enforced, then to the full extent permitted by law any prior agreement between the Company (or any predecessor thereof) and
the Executive shall be deemed reinstated as if this agreement had not been executed. 
 Assumption of Agreement by Company’s Successors and
Assignees. The Company’s rights and obligations under this agreement will become the obligation of and be binding upon the Company’s successors and assignees. 

 LMF Employ Agree 
 Page 5 of
5 
 Oral Modifications Not Binding: This agreement is the entire agreement of the Company and the Executive, Oral modifications have no effect. It
may be altered only by a written agreement approved by the Board of Directors and accepted by the Executive. 
 Indemnification: The Company shall in
all instances and under all circumstances indemnify the Executive from any and all of his actions in performing his duties with the exception of felonious acts as proven guilty by a court of law. 
 Governing Law: This agreement shall be governed by and construed in accordance with the laws of the State of Florida, County of Collier. 
 IN WITNESS WHEROF, the parties hereto have executed this Agreement effective as of April 1, 2005, as of the
20th Day of July, 2005. 
 This Executive Employment
agreement between Certified Diabetic Services and Mr. Lowell Fisher, Chairman of the Board of Directors, has been ratified by a unanimous vote of the Board of Directors, Mr. Fisher removed himself from voting, at a special meeting of the
Board of Directors on July 20, 2005. See attached minutes of the meeting of the Board of Directors of July 20, 2005. 
  

									
	             COMPANY
 Certified Diabetic Services, Inc
 Mr. Brent Peterson, Secretary

 By order of the Board of Directors
	  		  	By:	  	 EXECUTIVE
 Lowell M. Fisher
  
 /s/    Lowell M.
Fisher

		 		  		  		  	
	Its: Secretary	 	 /s/    Brent Peterson
	  		  		  	
		 		  		  		  	Certified Diabetic Services, Inc

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}]]