Document:

EXHIBIT 10.1

 

Exhibit
10.1

 

EXCLUSIVE
LICENSE AGREEMENT

 

License
Agreement (“Agreement”), executed as of the date of last signature below, (“Execution Date”),
and which shall become effective upon the date that Licensee (defined below) meets certain conditions contained herein, (“Effective
Date”), is between THE BOARD OF TRUSTEES OF THE UNIVERSITY OF ILLINOIS, a body corporate and politic of the State of
Illinois, 352 Henry Administration Building, 506 S. Wright St., Urbana, Illinois 61801 (“University”) and Cortex
Pharmaceuticals, Inc., a Delaware Corporation having a principal address at 126 Valley Road, Suite C, Glen Rock, NJ 07452 (“Licensee”).

 

UNIVERSITY
holds certain rights to the patent rights and technical information described below and desires to have the rights perfected and
exploited for commercial purposes. Licensee wishes to obtain the exclusive right to exploit the patent rights and non-exclusive
rights to the technical information for commercial purposes. Therefore, in consideration of the mutual obligations set forth below
and other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, University and Licensee agree as
follows.

 

ARTICLE
1 - DEFINITIONS

 

“Affiliate”
means, as to any person or entity, any other person or entity that directly or indirectly controls, is controlled by, or is
under common control with such person or entity, and is identified in writing to the University. For purposes of the preceding
sentence, “control” means the right to control, or actual control of, the management of such other entity, whether
by ownership of securities, by voting rights, by agreement or otherwise.

 

“Field”
means the field of use described on Schedule 1.

 

“Fair
Market Value” means cash consideration that Licensees or Sublicensees would realize from an unrelated buyer in an arms-length
sale of an identical item in the same quantity at the same time and place of the transaction.

 

“Net
Sales” means all cash amounts and the Fair Market Value of all other consideration received due to or by reason
of the sale, distribution or use of Products, less the following deductions:

 

(i)
unreimbursed customary trade, quantity or cash discounts and rebates taken;

 

(ii)
refunds, replacements or credits given to purchasers for return of Products for which a royalty was paid under this Agreement;
and

 

(iii)
unreimbursed freight and other transportation costs, including insurance charges, and unreimbursed duties, tariffs, sales and
excise taxes actually paid.

 

“Patent
Costs” means out-of-pocket expenses incurred prior to and during the term of this Agreement in connection with the preparation,
filing, prosecution and maintenance of the patent applications and patents under the Patent Rights. Such Patent Costs include
without limitation the fees and expenses of attorneys and patent agents, filing fees and maintenance fees, but exclude costs involved
in any patent infringement claims.

 

“Patent
Rights” means (a) all of the University’s rights in the patents and patent applications listed on Schedule
1, and (b) all of the University’s rights in all divisions, continuations, continuations-in part (including new subject
matter), reissues, renewals, re-examinations, foreign counterparts, substitutions or extensions thereof.

 

“Product”
means any product or process or license therefore that, in whole or in part, absent the license granted hereunder, would infringe
one or more claims of the Patent Rights or is produced utilizing the Technical Information (as defined below), and

 

(i)
any process that uses any such product;

 

(ii)
any product that is manufactured by using any such process, or that, when used, practices any such process; and

 

(iii)
any service that uses any such products or processes or the Technical Information.

 

“Research
and Development Revenues” means amounts received by Licensee or Sublicensee from third parties specifically directed
for future research or development of Products.

 

“Royalty
Period” means, unless otherwise identified on a Schedule, one of two six (6) month periods during a calendar year, the
first beginning on January 1 and ending June 30 and the second beginning on July 1 and ending December 31, except that the initial
Royalty Period shall begin on the Effective Date and end on December 31 of that same calendar year.

 

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“Sublicense”
means a license granted by Licensee to a third party that grants some or all of the rights acquired by Licensee hereunder.

 

“Sublicensee”
means any person or entity to which a Sublicense is granted hereunder.

 

“Technical
Information” means the information set forth on Schedule 1.

 

“Territory”
means the territory set forth on Schedule 1.

 

ARTICLE
2 - GRANT OF LICENSE

 

2.1.
Grant. Conditioned upon Licensee’s continuing compliance with the terms and conditions of this Agreement, and further
conditioned upon Licensee meeting the requirements disclosed in Schedule 2, University hereby grants to Licensee:

 

(a)
subject to Section 2.2 below, the exclusive right to use the Patent Rights and non-exclusive right to use the Technical Information,
to identify, develop, make, have made, use, import, export, lease sell, have sold and offer for sale, Products within the Field
and within the Territory; and

 

(b)
the exclusive right to grant Sublicenses of the rights granted herein, subject to the applicable provisions of this Agreement;

 

(c)
for the avoidance of doubt, the grants of rights described above shall not become effective until Licensee meets the requirements
disclosed in Schedule 2.

 

2.2.
Reservations.

 

(a)
University reserves the right, on behalf of itself and all other non-profit academic research institutions, to practice the Patent
Rights and use the Technical Information for any internally administered, non-commercial purpose of teaching, research
and/or public service. Licensee agrees that, notwithstanding any other provision of this Agreement, it has no right to enforce
the Patent Rights and Technical Information against any such institution in connection with such institution’s use
as permitted above. University and any such other institution have the right to publish any information included in the Patent
Rights and Technical Information. University reserves for itself the irrevocable right to identify, make, have made, use and have
used for internal teaching, research and/or public service purposes the Patent Rights and Technical Information, within the Field
and within the Territory.

 

(b)
The grant of rights under Sections 2.1 (a) and (b) above is subject to the rights of the U.S. Government as set forth in the U.S.
Code and applicable regulations.

 

(c)
All rights to any Patent Rights, Technical Information and Products are licensed under this Agreement only to the extent owned
or licensed by the University, and the rights disclosed, if any, in Schedule 1.

 

(d)
Except as expressly stated in this Agreement or in a separate written agreement between the parties, none of University or any
faculty, staff, employee or student of the University shall have any obligation to provide Licensee or any Sublicensee with any
updates to the Patent Rights or Technical Information, or additional Technical Information, owned, controlled or in the possession
of any of them.

 

2.3.
Sublicenses.

 

(a)
Licensee may grant written Sublicenses, without the right to further sublicense (other than to contract manufacturers, contract
research organizations, distributors and other third parties in connection with a Sublicensee’s development and commercialization
of Products), on terms consistent with and not in conflict with this Agreement, and in no event less protective of University’s
rights than those set forth herein, and further provided that all such contract research organizations, distributors and other
third parties shall be considered Sublicensees for the purposes of Sections 3.2 and 3.3 of this Agreement and Schedule 2 thereto.
All Sublicenses shall be subject to the termination of this Agreement. Licensee will provide a copy of any sublicense agreement,
and any and all amendments thereto, to University within thirty (30) days of execution, and in no event any later than five business
days following University’s request for any sublicense. Licensee shall be fully responsible to University for any breach
of the terms of this Agreement by a Sublicensee. Licensee shall ensure that all Sublicenses expressly state that the University
is a third party beneficiary thereof.

 

(b)
Licensee further agrees to provide University with a copy of each report received by Licensee from a Sublicensee pertinent to
any royalties or other sums owing to Licensee. Licensee shall not receive from Sublicensee anything of value in lieu of cash payments
in consideration for any Sublicense without including the value in accordance with an arms-length sale as Net Sales or as Sublicensee
Revenues, as appropriate. If University is paid based on Sublicensee direct sales, Licensee shall cause Sublicensee to directly
complete and submit all reports to be provided as set forth in 3.7(b) below.

 

(c)
If Licensee is unable or unwilling to serve or develop a potential market or market territory for which there is a company willing
to be a Sublicensee, Licensee shall, at University’s request, negotiate in good faith a Sublicense with any such Sublicensee.

 

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(d)
Upon termination of this Agreement for any reason, all Sublicenses shall terminate. Provided that a Sublicensee is in compliance
in all material respects with the terms of its Sublicense in effect on the date of termination, the University will grant such
Sublicensee that so requests, a license with such use rights and other terms as limited by the Sublicense and that are consistent
with the terms set forth in this Agreement, and that Sublicensee will pay either of the following based on University’s
sole discretion: (1) the royalty terms, milestone payments, and annual minimum royalty payments that the Sublicensee had agreed
to pay the Licensee for the Sublicense (but excluding any amounts already paid by the Sublicensee to the Licensee, or (2) the
royalty terms as defined in this Agreement, and a percentage of the milestone payments and annual minimum royalty payments based
on the territory that is to be licensed, as set forth herein, 50% for a license that includes any part of North America, 30% for
a license that includes any part of Europe, 15% for a license that includes any part of Asia-Pacific, and 5% for a license that
includes any part of South America or Africa, provided that such percentages can be additive if a Sublicense has rights to multiple
such locations. In no event shall University have any obligations of any nature whatsoever with respect to (i) any past, current
or future obligations that Licensee may have had, or may in the future have, for the payment of any obligations owing to Sublicensee
pursuant to such Sublicense, (ii) any past obligations whatsoever, and (iii) any future obligations to Sublicensee beyond those
to Licensee as set forth herein.

 

2.4.
Provision of Technical Information. The University will provide to Licensee the data, in both raw and analyzed form (“Data”)
generated at University during the clinical trial (“Clinical Trial”) supported by NHLBI Grant (award no. 1UM1HL112856-01)
(“NHLBI Grant”), University will provide such Data following the principal investigator’s completion of the
final analysis after the following events have occurred: (a) approval by the UIC IRB (Institutional Review Board), which the University
will request Dr. David Carley to obtain, (b) completion of Clinical Trial, such completion date to be defined by the National
Institutes of Health (“NIH”), AND (c) public dissemination of the clinical trial results; as used herein, “Public
Dissemination” shall refer to publication on NIH’s PubMed Central system or publication in an academic journal or
presentation at symposia or national or regional professional conferences, whichever occurs first. In addition, University shall
de-identify all Data in accordance with its obligations under the Health Insurance Portability and Accountability Act of 1996,
as well as all other applicable laws and regulations.

 

ARTICLE
3 - COMMERCIALIZATION, PAYMENTS AND REPORTS

 

3.1.
License Fees. Licensee shall pay University a nonrefundable licensing fee and annual minimum license fees, if any, in the
amount(s) set forth on Schedule 2 attached to this Agreement (the “Licensing Fees”), on or before the
applicable payment due dates set forth on Schedule 2.

 

3.2.
Payments on Licensee’s and Sublicensees’ Net Sales. Licensee shall pay University a royalty on Licensee’s
Net Sales and on Sublicensees’ Net Sales in the percentage set forth on Schedule 2 (including annual minimums, if
any).

 

3.3.
Payments on Sublicensee Revenues. Licensee shall pay University the percentage set forth on Schedule 2 of all non-royalty
payments or other non-royalty consideration received by Licensee from Sublicensees for the sublicensing of Patent Rights, whether
such payments or other consideration are denominated as fees or otherwise. Notwithstanding the foregoing, Licensee shall not be
required to make any payment under this Section 3.3 with respect to (i) Research and Development revenues, (ii) any payments that
result from a Sublicensee’s Net Sales or (iii) consideration received by Licensee that constitutes Fair Market Value for
(A) Licensee’s equity, (B) Product or Product component supply or (C) any other item, right or service of value provided
by the Licensee (other than sublicensing of the Patent Rights). 

 

3.4.
Annual Minimums. If total amounts actually paid under Sections 3.2 and 3.3 for any annual period are less than the
minimum payment set forth on Schedule 2 for that annual period (the “Annual Minimum”), Licensee
shall pay University an amount for that annual period equal to the shortfall. Such payment shall be made within forty-five (45)
days of the end of each calendar year of this Agreement. If this Agreement terminates for any reason during any year, the Annual
Minimum for such year shall be reduced pro-rata.  

 

3.5.
Patent Costs. Licensee agrees, within thirty (30) days following date of invoices therefor from University, to reimburse
University for all reasonable Patent Costs as set forth on Schedule 2.  

 

3.6.
Milestone Payments and Requirements. Licensee agrees to make the milestone payments and meet the milestone requirements
as set forth on Schedule 2 (the “Milestone Payments and Requirements”) within thirty (30) days after
the occurrence of each event set forth on such Schedule.

 

3.7.
Calculation and Payment of Royalties and Amounts Due.

 

(a)
Royalties and other amounts due shall be calculated for each Royalty Period as of the last day of each such Period. Payment of
royalties and other amounts with respect to each Royalty Period, and the accompanying accounting report set forth in subparagraph
(b) below shall be due within forty-five (45) days after the end of any Royalty Period that ends on June 30 (and within ninety
(90) days after the end of any Royalty Period that ends on December 31), beginning with the earlier of (i) the Royalty Period
in which the first Net Sale accrues, or (ii) the Royalty Period for which the first Annual Minimum is due, as set forth on Schedule
2.

 

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(b)
At the same time that it makes payment of royalties and other amounts due with respect to a Royalty Period, Licensee shall deliver
to University a true and complete accounting of Net Sales and other distributions of any Product and revenues from those sales
by Licensee and its Sublicensees for each country of sales origin during such Royalty Period and deductions taken, with a separate
accounting for each Product of sales and revenues by country, and a detailed calculation of the payment due University for such
Royalty Period, in each case in form and substance as set forth on Exhibit A attached to this Agreement.

 

(c)
Each Annual Minimum payment shall be accompanied by a calculation of the Annual Minimum such that University can verify the amount
of the payment.

 

3.8.
Records. Licensee shall keep, and shall cause Sublicensees to keep, accurate records in sufficient and customary detail
such that the amounts payable may be verified. During the term of this Agreement and for a period of five (5) years following
termination, Licensee shall permit University or its representative to inspect, audit and copy its books and records regarding
the sale of Products, during normal business hours. Such examination shall be made at University’s expense, except that
if such examination discloses a shortage of three percent (3%) or more in the amount of royalties and other payments due University
for any Royalty Period, then Licensee shall reimburse University for the reasonable cost of such examination or audit, including
any professional fees and out of pocket costs incurred by University. No separate confidentiality agreement will be required to
conduct such an examination or audit, and the results of the audit shall be treated as confidential information unless and until
a related legal action is taken. Additionally, it is understood that the University or its representative will be allowed to keep
a copy of all documents provided by the Licensee hereunder and all documents created by the University or its representative in
connection with such examination or audit for archival purposes.

 

3.9.
Payments. All amounts owing to University under this Agreement shall be paid in U.S. dollars, by check or other instrument
representing immediately available funds payable to “The University of Illinois,” or in a wire transfer sent to an
account listed on Schedule 2, if any are listed. If Licensee or any Sublicensee receives payment in a currency other than
U.S. dollars, such currency will be converted directly from the currency in the country of sales origin to U.S. dollars on the
date initial payment was made, without intermediate conversions, and payments will be made based on such conversion. The conversion
rate shall be the applicable rate of exchange as quoted on Bloomberg.com or any other nationally recognized foreign exchange conversion
price information provider, on the last day of each month during which revenues are received by Licensee during the Royalty Period.

 

3.10.
Overdue Payments. Payments due to the University under this Agreement, if not paid when due, shall be subject to interest
of 1.5% per month (or the maximum amount permitted by law if less) of the delinquent amount, and Licensee shall be responsible
for all costs of collection incurred by University including attorney fees and court costs. The accrual or receipt by University
of interest under this Section shall not constitute a waiver by University of any right it may otherwise have to declare a breach
of or default under this Agreement and to terminate this Agreement.

 

3.11.
Termination Report and Payment. Within sixty (60) days after the date of termination of this Agreement, Licensee shall
make a written report to University which report shall state the number, description, and amount of Products sold by Licensee,
or any Sublicensee upon which royalties are payable hereunder but which were not previously reported to University, a calculation
of the Net Sales, and a calculation of the royalty and other payments due University for such Products, all in such form and containing
such substance as is required hereunder. Concurrent with the making of such report, Licensee shall make the payment due University
for such period.

 

3.12.
Diligence. Licensee or its Sublicensees shall achieve the development events by the corresponding dates as set forth in
Schedule 2, and shall promptly notify University upon the achievement of such development event, identify whether Licensee
or which of its Sublicensees are responsible for such achievement, and provide the actual date of such achievement.

 

3.13.
No Refunds or Credits. Other than as set forth herein, all payments made to University hereunder shall be nonrefundable,
and any amount paid hereunder shall not be credited against any other amount due under this Agreement, except to the extent that
credits will be given for prior period corrections or overpayments, such credits to be given only upon Licensee providing University
with reasonable documentation supporting any such corrections or overpayments.

 

3.14.
Product Transfers. If a Product is made in a country in which any of the Patent Rights exist, then Licensee shall be obligated
to pay a royalty on the sale or transfer of such Product even if such sale or transfer occurs in a country in which no patent
protection exists; and if a Product is sold in a country in which any of the Patent Rights exist, then Licensee shall be obligated
to pay a royalty on the sale or transfer of such Product even if such Product was made in a country in which no patent protection
exists.

 

3.15
Reduced Royalty. If all patents within Patent Rights in the Field for each Territory fail to issue, expire or are ruled
invalid, Licensee shall thereafter pay to University such payments as are required hereunder solely for the license of Technical
Information in such Territory in the amount of 50% of the royalty and other payments due for such Territory as set forth herein.
The parties agree that (i) the rights in the Patent Rights granted herein are a portion of the agreed-upon consideration for use
of the Patent Rights and Technical Information; (ii) no royalty or amount owed hereunder shall be reduced unless all of the patents
within Patent Rights in the Territory are abandoned, expire or are ruled invalid; and (iii) the remaining payments due hereunder
are not an unlawful attempt to impermissibly extend the Patent Rights.

 

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3.16
Royalty Stacking. 

 

(a)
In the event that, with respect to Net Sales of Products, Licensee is required to pay royalties to unaffiliated third parties
for the freedom to operate under the claims of the Patent Rights, and the total royalties, including those payable to University
hereunder, exceeds A percent (A%) of Net Sales, the amount due and payable to University
hereunder shall be proportionally reduced, but in no event shall the royalty payable to University be less than Y
percent (Y%). For example, if the original royalty is 4% of Net Sales, and if the maximum royalty burden A is 5%, and if
the royalties owed by Licensee to a third party for freedom to operate is 3%, thereby making the total Royalties owed by Licensee
for freedom to operate to be 7% of Net Sales, the offset is 5/7, and the University shall receive 2.86% of Net Sales. (Calculation:
2.86% = 4% x (5/7)) As another example, if the original royalty is 4% of Net Sales, and if the maximum royalty burden A is 5%,
and if the royalties owed by Licensee to a third party for freedom to operate is 7%, thereby making the total Royalties owed by
Licensee for freedom to operate to be 11% of Net Sales, the offset is 5/11, and the University shall receive 2.00% of Net Sales.
(Calculation: 1.82% = 4% x (5/11), the minimum amount owed University is 2%. The amount owed third parties is still 7%.)

 

(b)
In the event that, with respect to Net Sales of Products, Licensee elects to pay royalties to unaffiliated third parties for additional
technology(ies) to create a product covered by the claims of the Patent Rights, and the total royalties, including those payable
to University hereunder, exceeds B percent (B%) of Net Sales, the amount due
and payable to University hereunder shall be proportionally reduced, but in no event shall the royalty payable to University be
less than less than Y percent (Y%). For example, if the original royalty due
is 4% of Net Sales, and if the maximum royalty burden B is 8%, and if the royalties owed by Licensee to a third party for additional
technology is 6%, thereby making the total royalties owed by Licensee for the enhanced product to be 10% of Net Sales, the offset
is 8/10 and the University shall receive 3.2% of Net Sales. (Calculation: 3.2% = 4% x (8/10))

 

(c)
In the event that, with respect to Net Sales of Products, Licensee is required to pay royalties to unaffiliated third parties
for the freedom to operate under the claims of the Patent Rights, and Licensee elects to pay royalties to unaffiliated third parties
for additional technology(ies) to create a product covered by the claims of the Patent Rights, the amount due and payable to University
hereunder shall be proportionally reduced, with each offset being calculated independently. In no event shall the royalty payable
to University be less than Y percent (Y%) of Net Sales. For example, taking
the number examples in parts (a) and (b) above, the amounts due and payable hereunder shall be reduced by the offset for freedom
to operate (calculated independently as per part (a) above) multiplied by the offset for additional products (calculated independently
as per part (b) above), the combined offset being (5/7)*(8/10), and the University shall receive 2.286% of Net Sales. (Calculation:
2.286% = 4% x (5/7) x (8/10))

 

Percentages
A%, B% and Y% above shall be set forth on Schedule 2.

 

ARTICLE
4 - WARRANTIES; INDEMNIFICATION

 

4.1.
Limited Representation. University represents that it has the right, power and authority to enter into and perform its
obligations under this Agreement.

 

4.2.
Disclaimer of Warranties. The Patent Rights and Technical Information are licensed “AS IS.” EXCEPT AS
SPECIFICALLY SET FORTH IN SECTION 4.1 ABOVE, UNIVERSITY DISCLAIMS ANY AND ALL WARRANTIES OF ANY KIND OR NATURE, WHETHER EXPRESS
OR IMPLIED, RELATING TO PERFORMANCE, MARKETABILITY, TITLE OR OTHERWISE IN ANY RESPECT RELATED TO THE PATENT RIGHTS, TECHNICAL
INFORMATION OR PRODUCTS. UNIVERSITY FURTHER DISCLAIMS ANY EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR
A PARTICULAR PURPOSE, AND DISCLAIMS ANY EXPRESS OR IMPLIED WARRANTY REGARDING THE NON-INFRINGEMENT OF ANY PATENT, COPYRIGHT, TRADEMARK
OR ANY OTHER RIGHTS OF THIRD PARTIES IN CONNECTION WITH THE PRACTICE OF THE PATENT RIGHTS OR TECHNICAL INFORMATION, OR THE MAKING,
USING OR SELLING OR OTHER DISTRIBUTION OF PRODUCTS BY ANY PERSON OR ENTITY. LICENSEE AND ITS SUBLICENSEES ASSUME
THE ENTIRE RISK AND RESPONSIBILITY FOR THE SAFETY, EFFICACY, PERFORMANCE, DESIGN, MARKETABILITY, TITLE AND QUALITY OF ALL PRODUCTS.
Without limiting the generality of the foregoing, University does not warrant (a) the patentability of any of the Patent Rights,
(b) the accuracy of any information provided to Licensee or (c) the accuracy, safety, or usefulness for any purpose of any of
the Patent Rights, Technical information or Products. Nothing contained in this Agreement shall be construed as either a warranty
or representation by University as to the validity or scope of any Patent Rights.

 

4.3.
Limitation of Liability. University assumes no liability in respect of any infringement of any patent or other right of
third parties due to the activities of Licensee or any Sublicensee under this Agreement. In no event shall University or
its affiliates including its trustees, directors, officers, faculty, staff, students, employees, consultants and agents (collectively,
the “Agents”), be responsible or liable for any indirect, special, punitive, incidental or consequential damages
or lost profits to Licensee, Sublicensees or Agents or any other individual or entity regardless of legal theory. The above
limitations on liability apply even though University or its affiliates, or any of their Agents, may have been advised of the
possibility of such damage. Licensee shall not, and shall require that its Sublicensees do not, make any statements, representations
or warranties or accept any liabilities or responsibilities whatsoever with regard to any person or entity that are inconsistent
with any disclaimer or limitation included in this Article 4.

 

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4.4.
Indemnification. 

 

(a)
None of the University or any of their respective Agents (each an “Indemnified Person”) shall have any liability
or responsibility whatsoever to Licensee or any Sublicensee or any other person or entity for or on account of (and Licensee
agrees and covenants, and agrees to cause each of its Sublicensees to agree and covenant not to sue any Indemnified Person
in connection with) any injury, loss, or damage of any kind or nature, sustained by, or any damage assessed or asserted against,
or any other liability incurred by or imposed upon, Licensee, any of its Sublicensees or any other person or entity, whether direct,
indirect, special, punitive, incidental, consequential or otherwise arising under any legal theory (and further excluding without
limitation any existing or anticipated profits or opportunities for profits lost by Licensee, any Sublicensee), arising
out of or in connection with or resulting from (i) the production, use or sale of the Products by Licensee or its Sublicensees,
(ii) the use of any Patent Rights or Technical Information by Licensee or any Sublicensee, (iii) any advertising or other promotional
activities with respect to either of the foregoing, or (iv) the production, use or sale of any product, process or service identified,
characterized or otherwise developed by Licensee or any Sublicensee with the aid of the Patent Rights or Technical Information.
Licensee shall indemnify and hold each Indemnified Person harmless against all claims, demands, losses, damages or penalties (including
but not limited to reasonable attorney’s fees and expenses at the pretrial, trial or appellate level) made against any Indemnified
Person with respect to items (i) through (iv) above, whether or not such claims are groundless or without merit or basis. Notwithstanding
the foregoing, Licensee shall not have an indemnification obligation to University under this Agreement in the event University
participates in any clinical trial of any Product or the Patent Rights, whether or not sponsored by Licensee, and a claim arises
as a result of the University’s gross negligence or willful misconduct in the conduct of such trial, provided that any indemnification
obligations of Licensee related to any clinical trial of any Product or the Patent Rights sponsored by the Licensee and conducted
by University shall be controlled by the terms of a separate clinical trial agreement to be negotiated and executed between University
and Licensee. Similarly, upon and after first commercial sale, Licensee shall not be required to indemnify University if University
purchases such Product and a claim arises as a result of an Indemnified Person’s gross negligence or willful misconduct
in the use of Product under the direction of the University or anybody affiliated with the University. Licensee shall have the
right to settle any action against an Indemnified Person with the consent of the Indemnified Person, which consent shall not be
unreasonably withheld or delayed in light of all factors of importance to such party and Licensee shall not be liable to indemnify
any indemnified or other party for any settlement of any claim effected without Licensee’s consent.

 

(b)
Licensee shall obtain and carry in full force and effect, and shall cause its Sublicensees to obtain and carry in full
force and effect, insurance with the coverages and limits as are reasonably adequate to ensure that Licensee can meet its obligations
to University pursuant to this Article 4, the nature and extent of which insurance shall be commensurate with usual and customary
industry practices for similarly situated companies, but in any event not less than the amounts set forth on Schedule 2
attached to this Agreement. Such insurance will be written by a reputable insurance company reasonably acceptable to the University,
will name the University as an additional insured under all general liability and product liability policies and shall require
thirty (30) days written notice to be given to University prior to any cancellation, endorsement or other change. Licensee will
provide University, for itself and on behalf of any Sublicensee, with appropriate certificates of insurance from time to time
as requested by University reflecting the obligations of Licensee pursuant to this subsection.

 

(c)
Licensee’s obligations under this Article 4 shall survive the expiration or earlier termination of all or any part of this
Agreement.

 

ARTICLE
5 - PROSECUTION AND MAINTENANCE OF PATENT RIGHTS

 

5.1.
Prosecution and Maintenance. During the term of this Agreement, and subject to the provisions of this Article 5 (including,
for the avoidance of doubt, Licensee’s rights under Section 5.1a), University shall be responsible for prosecuting and maintaining
the patent applications and patents under the Patent Rights. Licensee shall pay promptly when due, or at University’s option
promptly reimburse University for, all Patent Costs incurred by University with respect to the Patent Rights in each jurisdiction
in the Territory. At Licensee’s request, University shall use its reasonable efforts to provide Licensee with copies of
all official actions and other communications received by University or its patent counsel, or submitted by University or its
patent counsel, from or to the United States Patent and Trademark Office (and corresponding foreign authorities) with respect
to the Patent Rights.

 

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2.C.7	Pg. 6 of 17	Exclusive License Agreement
Cortex Pharmaceuticals, Inc.

    	 

    

 

(a)
Licensee at its option may control prosecution and maintenance of Patent Rights. Licensee shall advise University of its exercising
of this option to control prosecution and maintenance of Patent Rights in writing to the notice address provided in this Agreement.
Licensee shall choose patent counsel reasonably acceptable to University, and University’s consent to Licensee’s choice
of patent counsel shall not be unreasonably withheld. In the event Licensee exercises such option, Licensee shall timely provide
University with a copy of all official actions and other communications received by Licensee (or its patent counsel) or submitted
or proposed to be submitted by Licensee (or its patent counsel) from or to the United States Patent and Trademark Office (and
corresponding foreign authorities) with respect to Patent Rights no later than fourteen (14) days prior to any filing, and University
shall have the right to review and comment upon such official actions and other communications, and University’s reasonable
recommendations will be implemented to the extent practical. In the event Licensee exercises its option to control prosecution
and maintenance of Patent Rights, Licensee shall be solely responsible for paying all Patent Costs, and in the event this Agreement
terminates, licensee shall be solely responsible for paying all patent expenses accrued from the date it exercises such option
to the date of termination. In the event University pays any patent expenses following Licensee’s exercise of its option
to control prosecution and maintenance of Patent Rights, Licensee shall reimburse University for all such expenses pursuant to
Section 3.5 of this Agreement; provided, however, that following Licensee’s exercise of its option to control
prosecution and maintenance of Patent Rights, University shall not incur any such patent expenses without Licensee’s written
approval. All communications between Licensee and University contemplated in this Section 5.1.a. shall be governed by the confidentiality
provisions in Section 5.5 of this Agreement. Licensee agrees to seek and maintain the strongest and broadest claims practical
and shall not abandon any of University’s rights without giving University at least thirty (30) days written notice in advance
of the date on which action is necessary to avoid such coverage being deemed abandoned. University shall have the option of continuing
to prosecute or maintain such Patent Rights at its own expense, and such Patent Rights shall be removed from the grant of rights
provided herein. Upon termination of this Agreement for any reason, control of prosecution and maintenance of all Patent Rights
shall immediately revert to University. In the event Licensee fails to provide University with copies of all official actions
and other communications received by Licensee (or its patent counsel) or submitted or proposed to be submitted by Licensee (or
its patent counsel) from or to the United States Patent and Trademark Office (and corresponding foreign authorities) with respect
to Patent Rights in a timely manner, or fails to provide University with an opportunity to review and comment upon such official
actions and other communications, University shall have the right to immediately resume control of prosecution and maintenance
of all Patent Rights, and University may exercise such right by providing written notice to Licensee, such control reverting to
University immediately upon written notice to Licensee. In the event Licensee materially breaches any other provision of this
Agreement, in lieu of terminating the Agreement, University shall have the right to immediately resume control of prosecution
and maintenance of all Patent Rights, and University may exercise such right by providing written notice to Licensee, such control
reverting to University immediately upon written notice to Licensee.

 

5.2.
Cooperation. In cases where the University controls prosecution and maintenance of the Patent Rights, Licensee agrees to
cooperate with University, at Licensee’s expense, in the preparation, filing, prosecution and maintenance of patents under
the Patent Rights, by disclosing such information as may be necessary and by promptly executing such documents as University may
request to effect such efforts. All patents under the Patent Rights shall be filed, prosecuted and maintained in University’s
name or as University shall designate. In cases where Licensee controls prosecution and maintenance of the Patent Rights, University
agrees to cooperate with Licensee, at Licensee’s expense, in the preparation, filing, prosecution and maintenance of patents
under the Patent Rights, by disclosing such information as may be necessary and by promptly executing such documents as Licensee
may request to effect such efforts. All patents under the Patent Rights shall be filed, prosecuted and maintained in University’s
name or as University shall designate.

 

5.3.
Abandonment of Applications. In cases where Licensee has not exercised its option under Section 5.1(a) to control prosecution
and maintenance of the applicable Patent Rights, if University determines to abandon a patent application listed in Schedule
1, it will give Licensee at least thirty (30) days advance, written notice of such determination, provided that such
notice will be deemed given by reason of any related correspondence delivered to Licensee pursuant to this Section 5. Licensee
may, by written notice to University, elect to continue the prosecution of the application at Licensee’s sole expense but
in University’s name, and such patent application shall continue to be deemed a “Patent Rights” for all purposes
of this Agreement.

 

5.4.
Interferences. Each party will give the other party written notice promptly upon the declaration of any interference involving
any of the Patent Rights. In cases where the University controls prosecution and maintenance of the Patent Rights, University
will have the sole and exclusive right to determine whether and in what manner to proceed in such interference. In cases where
Licensee controls prosecution and maintenance of the Patent Rights, Licensee will have the sole and exclusive right to determine
whether and in what manner to proceed in such interference. If the party controlling prosecution and maintenance of the Patent
Rights fails to contest the interference, such party will promptly notify the other party. Such other party agrees that it will
not (and in the case where Licensee is such other party, will not permit any Sublicensee to), directly or indirectly initiate,
support, or without the express written consent of the controlling party participate in, any interference involving any of the
Patent Rights.

 

5.5.
Confidentiality. 

 

(a)
Subject to Section 5.5(b) below, Licensee agrees to treat (and agrees to cause its Sublicensees to treat) as confidential
all unpublished information with respect to the Patent Rights and Technical Information. Licensee further agrees to treat (and
agrees to cause its Sublicensees to treat) Schedule 2 to this Agreement as confidential. Licensee shall take, and
shall cause its Sublicensees to take, such actions as the University may reasonably request from time to time to safeguard
the confidentiality of any University information which Licensee has an obligation to keep confidential pursuant to this Section
5.5. University acknowledges that Licensee may find it beneficial to disclose unpublished information provided by University during
the conduct of Licensee’s business. Under such circumstances, Licensee may make such information available to third parties,
provided that Licensee shall first obtain from the recipient(s) a fully-executed confidentiality agreement which is at least as
protective of the University’s proprietary or confidential information as the confidentiality agreement Licensee employs
to protect its own proprietary and confidential information, which shall be no less protective than industry standards for valuable
confidential information.

 

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Cortex Pharmaceuticals, Inc.

    	 

    

 

(b)
Licensee shall not be bound by the provisions of Section 5.5(a) with respect to information which (i) was previously known to
the Licensee at the time of disclosure, as evidenced by the Licensee’s written records, (ii) is in the public domain at
the time of disclosure, (iii) becomes a part of the public domain after the time of disclosure, other than through disclosure
by Licensee or a Sublicensee or a third party who is under an agreement of confidentiality with respect to the subject information,
(iv) is independently developed without utilization of the proprietary information, as evidenced by the Licensee’s written
records, or (v) is required to be disclosed by law, regulatory authority, or court order.

 

(c)
The obligations of Licensee and University under Sections 5.5(a), (b) and (c) shall survive the expiration or earlier termination
of all or any part of this Agreement.

 

(d)
Licensee and University acknowledge that they may have previously entered into one or more confidentiality and non-use agreements
with respect to some or all of the Patent Rights and Technical Information (collectively, the “Confidentiality Agreements”).
The parties agree that, to the extent this Agreement conflicts with the terms of any of the Confidentiality Agreements, this Agreement
shall supersede the Confidentiality Agreements and be binding on University and Licensee with respect to the information covered
under the terms of this Article 5, without otherwise limiting the binding nature and effect of the Confidentiality Agreements.

 

ARTICLE
6 - INFRINGEMENT

 

6.1.
Notification. If either party becomes aware of the infringement of any patent under the Patent Rights within the Field,
it shall immediately notify the other in writing of all details available. University and Licensee shall then use good faith efforts
to determine within sixty (60) days of the notice referred to above, whether and in what manner to proceed against such infringer
in accordance with this Article 6, and a mutually acceptable allocation of any costs and recoveries resulting from such action.
If the parties are unable to so agree, the University shall have the first right to determine how to proceed against such infringer
in accordance with this Article 6 and subject to Section 6.3. Notwithstanding the foregoing, Licensee shall have the limited right,
before proceedings have instituted and until proceedings are instituted against the infringer, to seek equitable relief from a
court of competent jurisdiction, in its name and that of the University, to prevent irreparable harm to Licensee, provided however
that (a) Licensee shall provide prior written notice to University; and (b) Licensee shall allow University a reasonable opportunity
to review and comment on the pleadings related to such equitable relief; and (c) Licensee shall pay all costs of University’s
legal defense, if any, as related to such equitable relief.

 

6.2.
University Right to Prosecute. Subject to Section 6.1 above, if a third party infringes or allegedly infringes any
Patent Rights within the Field which University wishes to prosecute, University may, at University’s discretion, proceed
against the infringer in the name of University or Licensee, and will notify Licensee of its determination in this regard within
forty five (45) days of the end of the negotiation period set forth in Section 6.1 above. Licensee will cooperate in all reasonable
respects with University and execute any documents and instruments necessary or appropriate for University to exercise its rights
under this Section 6.2. Any actions by University pursuant to this clause shall be at University’s own expense. Recoveries
collected by University shall be paid (i) first, to University in the amount of all reasonable out-of-pocket costs and expenses
incurred by University in such action, (ii) then to Licensee to reimburse Licensee for its documented and reasonable out-of-pocket
costs and expenses incurred in cooperating with University in such action as requested by University, (iii) the remainder, if
any, shall be divided 60% to University and 40% to Licensee.

 

6.3.
Licensee Right to Prosecute. Subject to Sections 6.1 and 6.2 above if a third party infringes or allegedly
infringes any patent under the Patent Rights and University either fails to commence a lawsuit with respect to such infringement
by the end of the 45 day period referred to in Section 6.2 above or if University determines prior to such date that it does not
wish to take enforcement action against such infringer, Licensee may (and/or may permit any Sublicensee to) prosecute the infringer
by appropriate legal proceedings, provided that Licensee shall employ counsel reasonably satisfactory to University (University’s
approval of such counsel not to be unreasonably withheld), shall inform University of all material developments in such proceedings,
and shall provide University with all correspondence with the infringer and pleadings related to any such action. Licensee shall
be responsible for all costs and expenses of any enforcement activities, including legal proceedings, against infringers that
Licensee initiates. University agrees to cooperate in all reasonable respects with any enforcement proceedings at the request
of Licensee, and at Licensee’s expense. University may be represented by University’s counsel in any such legal proceedings,
at University’s own expense (subject to reimbursement under this Section 6.3), acting in an advisory but not controlling
capacity. The prosecution, settlement, or abandonment of any proceeding under this Section shall be at Licensee’s reasonable
discretion, provided that Licensee shall not have any right to surrender any of University’s rights to the Patent Rights
or to grant any infringer any rights to the Patent Rights other than a Sublicense subject to the conditions which would apply
to the grant of any other Sublicense. Recoveries collected by Licensee shall be paid (i) first, to Licensee in the amount of all
documented and reasonable out-of-pocket costs and expenses incurred by Licensee in such action, (ii) then to University to reimburse
University for its documented and reasonable out-of-pocket costs and expenses incurred in cooperating with Licensee in such action
as requested by Licensee, and for counsel to University if University elects to be represented by counsel in such action pursuant
to this Section 6.3, iii) the remainder, if any, shall be divided 60% to Licensee and 40% to University.

 

ARTICLE
7 - TERM AND TERMINATION

 

7.1.
Term. Unless terminated earlier under Section 7.2 or 7.3, this Agreement (a) shall terminate with respect to Patent Rights
upon expiration or termination of all Patent Rights; and (b) with respect to Technical Information, twenty-five years from the
Effective Date.

 

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2.C.7	Pg. 8 of 17	Exclusive License Agreement
Cortex Pharmaceuticals, Inc.

    	 

    

 

7.2.
University Right to Terminate. University shall have the right (without prejudice to any of its other rights conferred
on it by this Agreement or otherwise) to terminate this Agreement if Licensee:

 

(a)
is in default in payment of any amount or other consideration or reimbursement required under this Agreement, or is in material
default with respect to the making of any reports required under Section 3.7(b) to be made by Licensee or Sublicensees
pursuant to this Agreement, and Licensee fails to remedy any such default within thirty (30) days after written notice thereof
by University;

 

(b)
is in material breach of or materially defaults with respect to any other provision of this Agreement, including failing to meet
any requirement under Section 3.12, and Licensee fails to remedy any such breach or default within forty-five (45) days after
written notice thereof by University;

 

(c)
is in material breach of or materially defaults with respect to any other obligations that Licensee has to University under any
other agreement between Licensee and University, and Licensee fails to remedy any such breach or default within forty-five (45)
days after written notice thereof by University (the University acknowledges that as of the Effective Date, there is no agreement
between Licensee and University, other than this Agreement);

 

(d)
makes any materially false report and such termination shall be upon University’s thirty (30) days prior written notice
to Licensee of a materially false report unless Licensee submits a corrected report by the end of such thirty (30) day period;

 

(e)
commences a voluntary case as a debtor under the Bankruptcy Code of the United States or any successor statute (the “Bankruptcy
Code”), or if an involuntary case is commenced against Licensee under the Bankruptcy Code, or if an order for relief
shall be entered in such case, or if the same or any similar circumstance shall occur under the laws of any foreign jurisdiction
and Licensee fails to vacate or have such case dismissed within thirty days of filing; or

 

1.
(f) takes any action that purports to cause any Patent Rights or Technical Information to be subject to any liens or encumbrances,
and fails to cause such purported lien or encumbrance to be removed within 30 days after notice from the University (however,
for the avoidance of doubt, Licensee shall be free to cause its rights under this Agreement to become subject to liens or encumbrances,
and the foregoing termination right shall not apply with respect thereto).

 

2.
In lieu of terminating of this Agreement pursuant to this Section 7.2, upon Licensee’s breach and failure to remedy within
the specified time (if applicable), University shall have the right and may, in its sole discretion, declare by written notice
to Licensee that the rights granted exclusively to Licensee pursuant to this Agreement shall be non-exclusive, and University
may freely grant licenses to third parties without preference or right to Licensee.

 

7.3.
Licensee Right to Terminate. Licensee may terminate this Agreement at any time by written notice to University at least
ninety (90) days prior to the termination date specified in the notice.

 

7.4.
Effect of Termination.

 

(a)
If this Agreement terminates for any reason, on the effective date of termination Licensee shall immediately cease and to
the extent required hereunder, cause its Sublicensees to immediately cease using, making, having made, importing, exporting, leasing,
selling, having sold and offering for sale the Patent Rights and Technical Information and Products, and shall return to University,
or deliver or destroy as University directs, the Products and Technical Information then in its possession; provided,
however, that notwithstanding the foregoing, Licensee and any Sublicensees shall have the right, for six (6) months after
the effective date of termination of this Agreement, to continue selling any Products that are in inventory or on order as of
the effective date of termination of this Agreement (and Licensee shall pay University royalties under Section 3.2 with respect
to any such sales).

 

(b)
Notwithstanding the termination of the other provisions of this Agreement pursuant to Section 7.2 or 7.3, the following provisions
of this Agreement shall survive such termination:

 

(i)
Licensee’s obligation to pay any fees accrued or to perform obligations remaining unpaid or unperformed under the terms
of this Agreement prior to such termination;

 

(ii)
Licensee’s obligations under Section 3.11, Article 4, Sections 5.1, 5.2, 5.5 and, to the extent proceedings have been initiated,
Section 6.2, this Section 7.4 and Article 8 below; and

 

(iii)
any cause of action or claim of Licensee or University, accrued or to accrue, because of any breach or default of this Agreement
by the other party.

 

ARTICLE
8 - MISCELLANEOUS

 

8.1.
Assignment or Change of Control. Except in the event of (i) an assignment to an affiliate of Licensee or (ii) a merger
or sale of stock or substantially all of the assets of Licensee or of substantially all of Licensee’s rights with respect
to the Products (in case of either of the preceding clauses (i) or (ii), no consent of the University shall be required), this
Agreement shall not be assigned by Licensee without the prior written consent of University granted or withheld in the discretion
of the University. Prior to any such assignment becoming effective, all amounts due (including outstanding Patent Costs, if any),
must be paid in full and a permitted assignee must agree in writing to become bound by this Agreement.

 

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UIC OTM Technology No. CT38 and DF008
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Cortex Pharmaceuticals, Inc.

    	 

    

 

8.2.
Contest of Validity.

 

(a)
Licensee must provide, and shall require its Sublicensee(s) to agree to provide, University at least three (3) months prior written
notice before filing any action that contests the validity, enforceability or patentability of any patent included in the Patent
Rights during the term of this Agreement. Licensee or its Sublicensee(s) shall include with such written notice an identification
of all prior art Licensee or its Sublicensee(s) believes invalidates any claim of the Licensed Patent, claim charts mapping such
prior art against all claims asserted to be invalid, and an identification of all legal grounds for such assertion of invalidity
(for example, anticipation, obviousness, indefiniteness, lack of written description, lack of enablement).

 

(b)
In the event Licensee or its Sublicensee(s) files any action contesting the validity of any Licensed Patent, the filing party
shall pay to University a royalty rate of two (2) times the royalty rate specified in Section 3.2 of this Agreement and Schedule
2 to this Agreement for all Products sold during the pendency of such action. Moreover, should the outcome of such contest
determine that any claim of a Licensed Patent challenged is valid and would be infringed by a Product sold by Licensee (or its
Sublicensee(s), if such Sublicensee filed the action) if not for the license granted by this Agreement, Licensee (or its Sublicensee(s),
if such Sublicensee filed the action) shall thereafter, and for the remaining term of this Agreement, pay a royalty rate of three
(3) times the royalty rate specified in Section 3.2 of this Agreement and Schedule 2 to this Agreement.

 

(c)
In the event that Licensee or its Sublicensee(s) contests the validity of any Licensed Patent during the term of this Agreement,
Licensee agrees (and shall require its Sublicensee(s) to agree) to pay to University all royalties due under the Agreement during
the period of challenge. For the sake of clarity, such amounts shall not be paid into any escrow or other account, but directly
to University, and shall not be refunded.

 

(d)
Licensee or its Sublicensee(s) will have no right to recoup any royalties paid before contesting the validity of any patent included
in the Patent Rights, or during the period of such contest.

 

8.3.
Entire Agreement, Amendment and Waiver. This Agreement (including any attached schedules) contains the entire understanding
of the parties with respect to the subject matter of this Agreement and supersedes any and all prior written or oral discussions,
arrangements, courses of conduct or agreements. This Agreement may be amended only by an instrument in writing duly executed by
the parties. The waiver of a breach hereunder may be effected only by a writing signed by the waiving party and shall not constitute
a waiver of any other breach.

 

8.4.
Notices. All notices required or desired to be given under this Agreement, and all payments to be made to University under
this Agreement, shall be delivered to the parties at the addresses set forth on Schedule 2. Notices may be given (i) by
hand, or (ii) by a nationally recognized overnight delivery service. The date of personal delivery or the date of deposit with
the overnight delivery service for next business day delivery, as the case may be, shall be the date such notice is deemed delivered
under this Agreement.

 

8.5.
Severability. If any one or more of the provisions of this Agreement should for any reason be held by any court of competent
jurisdiction to be invalid, illegal or unenforceable, such provision or provisions shall be reformed to approximate as nearly
as possible the intent of the parties, and the validity of the remaining provisions shall not be affected.

 

8.6.
Governing Law. This Agreement is governed and interpreted under the laws of Illinois, excluding its choice of law provisions.

 

8.7.
Jurisdiction. In consideration of the performance by University of this Agreement, Licensee agrees that, unless otherwise
agreed by University in writing, all actions or proceedings related to this Agreement must be filed in accordance with the Illinois
Court of Claims Act. Licensee further agrees that it shall require that its Affiliates and Sublicensees agree that any action
or claim related to this Agreement shall be filed in accordance with the Illinois Court of Claims Act.

 

8.8.
Marking. Licensee shall place in a conspicuous location on any Product (or its packaging where appropriate) made or sold
under this Agreement a patent notice in accordance with the laws concerning the marking of patented articles. Licensee further
agrees that it shall cause its Sublicensees to comply with this Section.

 

8.9.
United States Manufacture. Licensee agrees that to the extent required by United States statute, rule or regulation or
by the terms of any grant or other funding agreement applicable to the University with respect to the Patent Rights, (a) Products
for sale in the United States of America will be manufactured or produced substantially in the United States of America, and (b)
it will not grant any exclusive sublicenses under this Agreement unless the Sublicensee agrees to these same terms.

 

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Cortex Pharmaceuticals, Inc.

    	 

    

 

8.10.
Export Controls. Licensee agrees to strictly comply, and shall require its Sublicensees to strictly comply, with any and
all applicable United States export control laws and regulations and foreign export or import laws and regulations.

 

8.11.
Implementation. Each party shall, at the request of the other party, execute any document reasonably necessary to implement
the provisions of this Agreement.

 

8.12.
Counterparts. This contract/agreement may be executed in counterparts, all of which together shall constitute one instrument.
The parties agree that duplicated or facsimile signatures shall be deemed original for all purposes.

 

8.13.
Relationship of Parties. The parties to this Agreement are independent contractors. There is no relationship of principal
to agent, master to servant, employer to employee, or franchiser to franchisee between the parties. Neither party has the authority
to bind the other or incur any obligation on its behalf.

 

8.14.
Headings. The headings of the sections, subsections, and paragraphs of this Agreement have been added for convenience only
and shall not be deemed to be a part of this Agreement, nor shall they affect the interpretation or construction of this Agreement
in any manner.

 

8.15.
Advertising. Licensee shall not use (and shall prohibit its Sublicensees from using) the names or trademarks of University
or its Agents any adaptation thereof, in any commercial activity, marketing, advertising or sales brochures without the prior
written consent of University, which consent may be granted or withheld in University’s sole and complete discretion. Notwithstanding
the foregoing, Licensee may use the name of University in a non-misleading fashion in (i) executive summaries, business plans,
offering memoranda and other similar documents used by Licensee for the purpose of raising financing for the operations of Licensee
or entering into commercial contracts with third parties, but in such case only to the extent necessary to inform a reader that
the Patent Rights and Technical Information have been licensed by Licensee from University, and to inform a reader of the identity
and published credentials of the University faculty members listed as inventors of the Patent Rights and Technical Information,
and (ii) any securities reports required to be filed with the Securities and Exchange Commission.

 

8.16.
Conflicts. Licensee acknowledges and agrees that it will use reasonable efforts to avoid potential conflicts of interest
between the University and University employees who may also be employees, consultants, shareholders or directors of Licensee.
Licensee agrees to cooperate with University with respect to the University of Illinois Policy on Conflicts of Commitment and
Interest, which is available at http://www.research.uiuc.edu/coi/index.asp, and to work constructively with University to manage
and mitigate any conflicts that may arise in the course of this and related agreements between it and University.

 

8.17.
Precedent Among Terms. In the event of a conflict between the terms in these Articles 1 – 8 and the terms of Schedule
2, the terms of Schedule 2 shall control.

 

IN
WITNESS WHEREOF, the parties hereto have caused this Exclusive License Agreement to be executed by their respective duly authorized
officers or representatives on the date indicated below.

 

	UNIVERSITY:	THE BOARD OF TRUSTEES OF THE UNIVERSITY OF ILLINOIS
	 	 
	 	By:	/s/
    Walter K. Knorr 	6/18/14	 
	 	 	Walter K. Knorr, Comptroller	Date	 
	 	 	 	 	 
	 	Attest:	/s/
    Susan M. Kies	6/18/14	 
	 	 	Susan M. Kies, Secretary	Date	 

 

	Licensee:	CORTEX PHARMACEUTICALS, INC. 
	 	 	 	 	 
	 	By:	/s/
    Arnold S. Lippa	6/27/14	 
	 	 	Arnold S. Lippa, PhD, CEO and President	Date	 

 

Approved
as to Legal Form: Michael Harte, Office of University Counsel 3.28.12.

 

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Cortex Pharmaceuticals, Inc.

    	 

    

 

Schedule
1 to Exclusive License Agreement

 

“Technical
Information” means any proprietary technical information and know-how consisting of the data, in both raw and analyzed form
(“Data”) generated at University during the clinical trial (“Clinical Trial”) supported by NHLBI Grant
(award no. 1UM1HL112856-01). The University shall provide such data at the times and under the conditions specified in Section
2.4 of this Agreement.

 

“Field”
means and includes: Cannabinoid treatment of sleep related breathing disorders

 

“Patent
Rights” means and includes:

 

	

    

    Tech & Patent ID#	 	Patent Title	 	Country	 	App #	 	Effective 

Filing Date	 	Status	 	Patent #
	CT38/PCT/US	 	Method for Treating Sleep Apnea	 	US	 	10/472,136	 	4/8/2002	 	Issued	 	7,705,039
	CT38/PCT/US/DIV	 	Functional role for cannabinoids
    in autonomic stability during sleep	 	US	 	13/291,826	 	4/8/2002	 	Issued	 	8,207,230
	CT38/AU	 	Functional Role for Cannabinoids
    in Autonomic Stability During Sleep	 	Australia	 	2002309548	 	4/8/2002	 	Issued	 	2002309548
	CT38/CA	 	Functional Role for Cannabinoids
    in Autonomic Stability During Sleep	 	Canada	 	2,443,105	 	4/8/2002	 	Issued	 	2,443,105
	CT38/JP	 	Functional Role for Cannabinoids
    in Autonomic Stability During Sleep	 	Japan	 	2002578942	 	4/8/2002	 	Issued	 	5093967
	CT38/EP/DE	 	Cannabinoids For The Treatment of
    Breathing Disorders During Sleep	 	Germany	 	02736551.9	 	4/8/2002	 	Issued	 	60234246.5-08
	CT38/EP/GB	 	Cannabinoids For The Treatment of
    Breathing Disorders During Sleep	 	Great Britain	 	02736551.9	 	4/8/2002	 	Issued	 	1372638
	CT38/EP/FR	 	Cannabinoids For The Treatment of
    Breathing Disorders During Sleep	 	France	 	02736551.9	 	4/8/2002	 	Issued	 	1372638
	DF008/PCT	 	Sustained Release Cannabinoid Medicaments	 	World	 	PCT/US2010/057302	 	11/18/2010	 	Pending	 	 
	DF008/PCT/US	 	Sustained Release Cannabinoid Medicaments	 	US	 	13/474,666	 	11/18/2010	 	Abandoned	 	 
	DF008/PCT/US/CON	 	Sustained Release Cannabinoid Medicaments	 	US	 	13/889,252	 	11/18/2010	 	Pending	 	 
	DF008/PCT/US/CON-2	 	Sustained Release Cannabinoid Medicaments	 	US	 	14/154,171	 	11/18/2010	 	Pending	 	 
	DF008/PCT/US/CON-3	 	Sustained Release Cannabinoid Medicaments	 	US	 	14/218,982	 	11/18/2010	 	Pending	 	 
	DF008/PCT-2	 	Low Dose Cannabinoid Medicaments	 	World	 	PCT/US2011/061490	 	11/18/2011	 	Pending	 	 
	DF008/PCT-2/US	 	Low Dose Cannabinoid Medicaments	 	US	 	13/261,662	 	11/18/2011	 	Abandoned	 	 
	DF008/PCT-US/CON	 	Low Dose Cannabinoid Medicaments	 	US	 	14/154,176	 	11/18/2011	 	Pending	 	 
	DF008/PCT-US/CON-2	 	Low Dose Cannabinoid Medicaments	 	US	 	14/219,090	 	11/18/2011	 	Pending	 	 
	DF008/PCT-2/AU	 	Low Dose Cannabinoid Medicaments	 	Australia	 	2011329623	 	11/18/2011	 	Pending	 	 
	DF008/PCT-2/EP	 	Low Dose Cannabinoid Medicaments	 	Europe	 	11840786.5	 	11/18/2011	 	Pending	 	 

  

“Territory”
means:

 

For
Patents: Where patent rights exist

For
Technical Information: Worldwide

 

    	OUC 2.9.12
UIC OTM Technology No. CT38 and DF008
2.C.7	Pg. 12 of 17	Exclusive License Agreement
Cortex Pharmaceuticals, Inc.

    	 

    

 

UNIVERSITY
CONFIDENTIAL AND PROPRIETARY

 

Schedule
2 to Exclusive License Agreement

 

Article
2 Grant

 

2.1 Conditions
to become Effective (collectively, the “Conditions to Effectiveness”)

 

(i)
Licensee shall have paid to University the sum of $25,000.00 as part of the Licensing Fee prior to the Execution Date; and

 

(ii)
License shall have paid to University all incurred, unreimbursed, Patent Costs prior to the Execution Date; provided, however,
that Licensee shall in no event be obligated to pay more than $16,000 for such Patent Costs; and

 

(iii)
Licensee shall have assigned to University all rights that Licensee (whether known as Cortex Pharmaceuticals, Inc., Pier Pharmaceuticals,
Inc., or SteadySleep RX Co.) now have, may have, or have ever had in the PCT Patent Application Serial No. PCT/US2010/057302 (“the
‘302 Application”) and the PCT Patent Application Serial No. PCT/US2011/061490 (“the ‘490 Application”),
and all applications claiming priority to the ‘302 and ‘490 Applications (including all divisions, continuations,
continuations-in part (including new subject matter), reissues, renewals, re-examinations, foreign counterparts, substitutions
or extensions thereof); and

 

(iv)
Licensee shall have executed such documents as are necessary to perfect the assignment to University described above, and shall
have filed such assignments with the relevant patenting authorities.

 

Article
3 Payments/Reports 

 

	3.1	 Licensing     Fee:	$75,000.00 with $25,000.00
    due as one of the Conditions to Effectiveness and $50,000.00 due on the earlier of (i)
    12/31/2014 or (ii) within 10 days after completing Commercialization and Reporting Requirement 3.12 (iv).

 

	3.2	Royalty on Net Sales by
    Licensee:	4.0%
	 	 	 
	 	Royalty on Sublicensee Net Sales:	4.0%

 

	3.3	Payment on Sublicensee Revenues

 

		12.5% of all payments plus the
                                                                                                                                           cash value of all non-cash items received by Licensee from Sublicensee (in each case, solely where such payments and non-cash
                                                                                                                                           items are consideration for the grant a sublicense to the Patent Rights), not including payments that result from
                                                                                                                                           Sublicensee’s Net Sales.

  

	3.4	Annual
    Period		Annual Minimum
	 	 	 	 	 
	 	●	Year
1 (Execution Date through 12/31/2014) 	 	$0
	 	 	 	 	 
	 	●	Year
2 (2015 – Due 12/31/2015) and every year thereafter until the first
    application is submitted for market approval to the U.S. F.D.A. (Food
    and Drug Administration) or a foreign equivalent for a Product	 	$100,000
	 	 	 	 	 
	 	●	The
year after the first application is submitted for market approval to the U.S.
    F.D.A. (Food and Drug Administration) or a foreign equivalent for a Product
    and every year thereafter until the first market approval is obtained from
    the U.S. F.D.A. (Food and Drug Administration) or a foreign equivalent	 	$150,000
	 	 	 	 	 
	 	●	The year after
    the first market approval is obtained from the U.S. F.D.A. (Food
    and Drug Administration) or a foreign equivalent and every year thereafter
    until the first commercial sale of a Product	 	$200,000
	 	 	 	 	 
	 	●	The
year after the first commercial sale of a Product and every year thereafter	 	$250,000

 

    	OUC 2.9.12
UIC OTM Technology No. CT38 and DF008
2.C.7	Pg. 13 of 17	Exclusive License Agreement
Cortex Pharmaceuticals, Inc.

    	 

    

 

UNIVERSITY
CONFIDENTIAL AND PROPRIETARY

 

3.5
Patent Costs

 

	 	(i)	After the Execution Date,
    Patent Costs will be invoiced by University as they are incurred. 
	 	 	 
	 	(ii)	Upon any assignment of Licensee or
    sale of all stock or assets, all outstanding Patent Costs are due and payable in full.

 

3.6
Milestone Payments and Requirements. The following one-time Milestone Payments are due:

 

	 	(i)	$75,000.00 due within 5
    days after any one of the following, (a) dosing of the first patient with a Product in a Phase II human clinical study anywhere
    in the world that is not sponsored by the University of Illinois (for clarity, the Clinical Trial referred to in Section 2.4
    of this Agreement does not satisfy this requirement), (b) dosing of the first patient in a Phase II human clinical study anywhere
    in the world with a low dose of dronabinaol (defined as less than or equal to 1 mg), or (c) dosing of the first patient in
    a Phase I human clinical study anywhere in the world with a proprietary reformulation of dronabinol, and 
	 	 	 
	 	(ii)	$350,000.00 due within 5 days after
    dosing of the first patient with a Product in a Phase III human clinical trial anywhere in the world, and
	 	 	 
	 	(iii)	$500,000.00 due within 5 days after
    the first NDA (New Drug Application) filing with the U.S. F.D.A. (Food and Drug Administration) or a foreign equivalent for
    a Product, and
	 	 	 
	 	(iv)	$1,000,000.00 due within 12 months
    after the first commercial sale of a Product.

 

3.12 Commercialization
and Reporting Requirements

 

	 	(i)	On or before 6/30/2015
    and every year thereafter, Licensee shall provide University with a copy of a recent and relevant report provided to Licensee’s
    investors or to Licensee’s Board of Directors that describes the previous year’s activities and performance, including
    Product development.
	 	 	 
	 	(ii)	By 12/31/2014, Licensee shall raise
    new financing (which financing may be from sources including, but not limited to, debt or equity financings, grants, license
    fees or any combination of sources) of at least $500,000.
	 	 	 
	 	(iii)	Within three months after Public Dissemination,
    Licensee shall schedule a consultation with the U.S. F.D.A. (Food and Drug Administration) about its development plan and
    shall provide a copy to University of the minutes from such consultation within 30 days. 
	 	 	 
	 	(iv)	Within fifteen months after Public
    Dissemination, Licensee shall complete at least one of the following, (a) dosing of the first patient with a Product in a
    Phase II or Phase III human clinical study anywhere in the world that is not sponsored by the University of Illinois (for
    clarity, the Clinical Trial referred to in Section 2.4 of this Agreement does not satisfy this requirement), (b) dosing of
    the first patient in a Phase II human clinical study anywhere in the world with a low dose of dronabinaol (defined as less
    than or equal to 1 mg), or (c) dosing of the first patient in a Phase I human clinical study anywhere in the world with a
    proprietary reformulation of dronabinol.
	 	 	 
	 	(v)	Within three years after Public Dissemination,
    Licensee shall dose the first patient with a Product in a Phase III human clinical study anywhere in the world. In the event
    that any of the clinical studies in 3.12(iv) fail to meet its required endpoints, Licensee shall be granted an additional
    year to meet this requirement.
	 	 	 
	 	(vi)	Within three years after dosing of
    the first patient in a Phase III human clinical study, Licensee shall apply for market approval to the U.S. F.D.A. (Food and
    Drug Administration) or a foreign equivalent for a Product. In the event that any of the Phase III clinical studies fail to
    meet their required endpoints, Licensee shall be granted an additional two years to meet this requirement.
	 	 	 
	 	(vii)	Within seven years after Public Dissemination,
    Licensee shall obtain market approval by the U.S. F.D.A. (Food and Drug Administration) or a foreign equivalent for a Product.
    If this requirement is not met due to delay from the U.S. F.D.A. (Food and Drug Administration) or a foreign equivalent, then
    UIC and Licensee shall renegotiate in good faith a new deadline.
	 	 	 
	 	(viii)	Within one year of obtaining market
    approval by the U.S. F.D.A. (Food and Drug Administration) or a foreign equivalent, Licensee shall have made its first commercial
    sale of a Product.

 

    	OUC 2.9.12
UIC OTM Technology No. CT38 and DF008
2.C.7	Pg. 14 of 17	Exclusive License Agreement
Cortex Pharmaceuticals, Inc.

    	 

    

 

UNIVERSITY
CONFIDENTIAL AND PROPRIETARY

 

For
the avoidance of doubt, Licensee may satisfy any of the requirements described in the preceding clauses (iv) through (viii) through
actions by a Sublicensee.

 

3.17 Royalty
Stacking

 

a) Maximum
royalty burden in 3.17 (a) for freedom to operate: (A%) = 6%

 

b) Maximum
royalty burden in 3.17 (b) for additional technologies: (B%) = 8%

 

c) Minimum
royalty payable under 3.17 (a), (b), and (c): (Y%) = 3%

 

	General and/or Mailed
    Payment Instructions:  	Office of Technology Management
	 	Attention: Director
	 	University of Illinois at Chicago
	 	446 College of Medicine East, MC 682
	 	808 S. Wood
	 	Chicago, IL 60612-7227

 

	 	●	Checks should be
    payable to: Board of Trustees of the University of Illinois

 

	Wire Transfer Instructions:	JPMorgan Chase Bank, NA
	 	New York NY
	 	ABA/Routing No. 021000021 
	 	Account Title: University of Illinois
    Operations
	 	Account Number: 11-12201
	 	Reference: UIC Office of Technology
    Management 

 

	 	●	Please
    email cashmgmt@uillinois.edu with anticipated wire amount, where it is coming from, etc.
	 	 	 
	 	●	Swift code: CHASUS33 (you would
    provide this information if the wire is coming from a foreign country)

 

Article
4 Indemnification

 

4.4(b) Insurance
Requirements:

 

General
Liability: Minimums consistent with industry practice, but in any event not less than (i) $1,000,000 per occurrence, with an aggregate
minimum of $2,000,000 for personal injury or death, and (ii) $1,000,000 per occurrence, with an aggregate minimum of $2,000,000
for property damage.

 

Products
Liability: Prior to the sale or transfer to any third party of any product that requires the use of or is based on the Patent
Rights, products liability insurance in an amount consistent with industry practice, but in any event not less than $1,000,000
per occurrence and $2,000,000 in aggregate.

 

    	OUC 2.9.12
UIC OTM Technology No. CT38 and DF008
2.C.7	Pg. 15 of 17	Exclusive License Agreement
Cortex Pharmaceuticals, Inc.

    	 

    

 

UNIVERSITY
CONFIDENTIAL AND PROPRIETARY

 

Article
8 Miscellaneous

 

8.4 Notices:

 

	(a)	 Address For All Notices
    to University:	Office of Technology Management
	 	 	University of Illinois at Chicago (MC
    682)
	 	 	1853 West Polk Street, Suite 446
	 	 	Chicago, IL 60612-7335
	 	 	Phone: 312-996-7018  Fax: 312-996-1995
	 	 	 
	 	With copy to:	OTM Legal Counsel
	 	 	1737 W. Polk Suite 405 (mc/225)
	 	 	Chicago, IL 60612

 

	(b)	 Address For Notices
    to Licensee:	Cortex Pharmaceuticals,
    Inc.
	 	 	126 Valley Road, Suite C
	 	 	Glen Rock, NJ 07450
	 	 	Fax: 415-887-7814
	 	 	FEIN: 33-0303583

 

    	OUC 2.9.12
UIC OTM Technology No. CT38 and DF008
2.C.7	Pg. 16 of 17	Exclusive License Agreement
Cortex Pharmaceuticals, Inc.

    	 

    

 

Exhibit
A to Exclusive License Agreement

 

Royalty
and Other Payment Report Form _______, ____ to ________, ____

 

Payments
and Related Information from Licensee:

 

Licensee
and Sublicensee if payment is based directly on Sublicensee Net Sales shall report, as detailed by country of sales origin and
for each Sublicensee (if sublicensed):

 

1.
Product Number and description

 

2. Units
of Product sold

 

3. Units
of Product distributed but for which no payment was received

 

4. Unit
gross list sales price for each of (2) above

 

5. Per unit
deductions

 

6. Extended
sales dollars (unit price x quantity)

 

7. Other
cash amounts and Fair Market Value of all other consideration received

 

8. Application
of 3.7 (a), Foreign currency conversion rate, shown for each currency received,

 

9. Calculation
of Net Sales

 

10. Royalty
Rate

 

11. Application
of Section 3.15 Royalty Stacking, if any

 

11. Royalty
Payments due

 

12. Annual
Minimums owed, if any:

 

13. Milestone
Payments owed, if any, with specific reference to Milestones listed on Schedule 2

 

14. Research
and Development Revenue

 

Information
regarding Sublicensees shall include the above plus:

 

1. Name
and address of each Sublicensee:

 

2. Total
Amounts Owed University, with respect to Sublicensees only

 

    	OUC 2.9.12
UIC OTM Technology No. CT38 and DF008
2.C.7	Pg. 17 of 17	Exclusive License Agreement
Cortex Pharmaceuticals, Inc.CalAmp Deferred Compensation Plan

Adopted August 23, 2013

Amended July
1, 2014 

 

 

 

 

 

 

 

 

 

 

ARTICLE 1
PURPOSE 

          In recognition of the services provided by certain key
employees, CalAmp Corp., a Delaware corporation (“CalAmp” or the “Company”), has
adopted the CalAmp Deferred Compensation Plan effective as of August 23, 2013
(as amended to date, the “Plan”), to make additional retirement benefits and the
potential for increased financial security available on a tax-favored basis to
those individuals. The Plan is intended to be a nonqualified deferred
compensation plan that complies with the provisions of all applicable law,
including Code Section 409A, and shall be operated and interpreted in accordance
with this intention. The Plan shall be an unfunded plan and is maintained
primarily for the purpose of providing deferred compensation benefits for a
select group of management, non-employee directors or highly compensated
employees.

ARTICLE 2
DEFINITIONS

     “Affiliate(s)” means: (a) any firm,
partnership, or corporation that directly or indirectly through one or more
intermediaries, controls, is controlled by, or is under common control with, the
Company; (b) any other organization similarly related to the Company that is
designated as such by the Company; and (c) any other entity 50% or more of the
economic interests in which are owned, directly or indirectly, by the Company.

     “Beneficiary” means the person or
persons designated as such in accordance with Section 7.3. 

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

     “Cash Class Year Distribution Account(s)”
means, with respect to a Participant for each Plan Year, the Cash Class Year
Distribution Account established on the books of account of the Company,
pursuant to Section 5.1, for that Participant. 

     “Change of Control” means a change in
the ownership or effective control of the Company, or in the ownership of a
substantial portion of the assets of the Company, within the meaning of Code
Section 409A and the regulations and Internal Revenue Service guidance issued
thereunder. For purposes of this Plan, a change in ownership of the Company
occurs on the date on which any one person or more than one person acting as a
group acquires ownership of stock of the Company that, together with stock held
by such person or group constitutes more than 50% of the total fair market value
or total voting power of the stock of the Company. A change in the effective
control of the Company occurs on the date on which either (i) a person or more
than one person acting as a group acquires (or has acquired during the 12-month
period ending on the date of the most recent acquisition by such person or
persons) ownership of stock of the Company possessing 51% or more of the total
voting power of the stock of the Company or (ii) a majority of members of the
Board is replaced during any 12-month period by directors whose appointment or
election is not endorsed by a majority of the members of the Company’s Board
prior to the date of the appointment or election. A change in the ownership of a
substantial portion of assets of the Company occurs on the date on which any one
person or more than one person acting as a group acquires (or has acquired
during the 12-month period ending on the date of the most recent acquisition
by such person or persons) assets from the Company that have a total gross fair
market value equal to or more than 51% of the total gross fair market value of
all of the assets of the Company immediately prior to such acquisition or
acquisitions. With respect to a Participating Employer other than the Company, a
Change of Control shall occur on the date that the Company or its Affiliates (or
any combination of the foregoing) shall cease to be the beneficial owners of at
least 50% of the total fair market value or total voting power of the
outstanding voting securities of the Participating Employer or a sale of
substantially all of the assets of a Participating Employer to a party other
than the Company or one of its Affiliates, provided that in either case, the
transaction will constitute a change in the ownership or effective control or a
change in the ownership of a substantial portion of the assets of the
Participating Employer, as described in Treasury Regulation Section 1.409A-3(i)(5), or any successor thereto.

1

     “Class Year Distribution
Account(s)” means, with respect to a
Participant for each Plan Year, the Cash Class Year Distribution Account and/or
Equity Class year Distribution Account established on the books of account of
the Company, pursuant to Section
5.1, for that Participant. 

     “Code” means the Internal Revenue Code
of 1986, as amended. 

     “Committee” means the CalAmp
Compensation Committee appointed by the Board.

     “Common Stock” means the common stock
of the Company, par value $.01. 

     “Compensation” means, for any Eligible
Employee, the cash or equity remuneration for services payable by the
Participating Employer with respect to a Plan Year for salary, bonuses, Full
Value Equity Awards and commissions, but excluding (even if includible in gross
income) expense reimbursements or other expense allowances, fringe benefits,
moving expenses or welfare benefits, as determined by the Company from time to
time and communicated to Eligible Employees. “Compensation” means, for any Eligible
Director, the cash or equity remuneration for services payable by the Company
with respect to a Plan Year for director-related fees or retainers or Full Value
Equity Awards, but excluding expense reimbursements or other expense allowances
or fringe benefits, as determined by the Company from time to time and
communicated to Eligible Directors. For avoidance of doubt, with respect to both
Eligible Employees and Eligible Directors, Compensation shall not include
remuneration paid in the form of stock options, stock appreciation rights or
performance-based stock. 

     “Disability” means that a Participant
(a) is unable 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 can be expected to last for a continuous period of not less
than 12 months, or (b) is, by reason of any medically determinable physical or
mental impairment which can be expected to result in death or can be expected to
last for a continuous period of not less than 12 months, receiving income
replacement benefits for a period of not less than 3 months under an accident
and health plan covering employees of the Participant’s employer. The
determination of the existence of a Disability shall be made by the Plan
Administrator in accordance with Section 409A(a)(2)(C) of the Code and the
regulations and guidance promulgated thereunder. 

2

     “Disabled” means having a Disability. The determination of whether a Participant
is Disabled shall be made by the Plan Administrator, whose determination, made
in accordance with Section 409A(a)(2)(C) of the Code and the regulations and
guidance promulgated thereunder, shall be conclusive. 

     “Earnings Crediting Options” means the
deemed investment options selected by the Participant from time to time pursuant
to which deemed earnings or losses are credited or debited, as the case may be,
to the Participant’s Class Year Distribution Account(s). 

     “Effective Date” means August 23, 2013
(as amended to date). 

     “Elective Deferral Limit” means the
limit stated in Code Section 402(g)(1)(B), as adjusted in accordance with Code
Section 402(g)(4). 

     “Eligible Director” means a
Non-Employee Director who has been determined by the Plan Administrator to be
eligible to participate in the Plan. 

     “Eligible Employee” means an Employee
who has been determined by the Plan Administrator to be eligible to participate
in the Plan. 

     “Employee” means any individual
employed by a Participating Employer on a regular, full-time basis (in
accordance with the personnel policies and practices of the Participating
Employer), including citizens of the United States employed outside of their
home country and resident aliens employed in the United States; provided, however, that to
qualify as an “Employee” for purposes of the Plan, the individual must be a
member of a “select group of management or highly compensated employees” within
the meaning of Sections 201, 301 and 401 of ERISA; provided further, that the following
individuals shall not be eligible to participate in the Plan as “Employees”: (a)
individuals who are not classified by a Participating Employer as its employees,
even if they are retroactively recharacterized as employees by a third party or
that Participating Employer, (b) individuals for whom a Participating Employer
does not report wages on IRS Form W-2 or who are not on an employee payroll of
that Participating Employer, and (c) individuals who have entered into an
agreement with a Participating Employer which excludes them from participation
in employee benefit plans of that Participating Employer (whether or not they
are treated or classified as employees for certain specified purposes that do
not include eligibility in the Plan). 

     “Enrollment Agreement” means the
authorization form which an Eligible Employee or Eligible Director files with
the Plan Administrator or its designee to participate in the Plan, including,
without limitation, one that is completed and/or sent electronically in a manner
specified by the Plan Administrator. 

     “Equity Class Year Distribution Account(s)”
means, with respect to a Participant for each Plan Year, the Equity Class Year
Distribution Account established on the books of account of the Company,
pursuant to Section 5.1, for that Participant. 

     “ERISA” means the Employee Retirement
Income Security Act of 1974, as amended. 

     “Full Value Equity Awards” means equity
awards other than stock options and stock appreciation rights. 

3

     “Key Employee” means a “specified employee” within the meaning of Code
Section 409A(a)(2)(B)(i) and the regulations issued thereunder. 

     “Non-Employee Director” means a
non-employee member of the Board. 

     “Participant” means an Eligible
Employee or Eligible Director who has filed a completed and executed Enrollment
Agreement with the Plan Administrator or its designee and is participating in
the Plan in accordance with the provisions of Article 4. In the event of the death
or incompetency of a Participant, the term shall mean his or her personal
representative or guardian. An individual shall remain a Participant until that
individual has received full distribution of any vested amount credited to the
Participant’s Class Year Distribution Account(s). 

     “Participating
Employer” means the Company, as well as each
Affiliate identified in Appendix A as may from time to time participate in the
Plan by or pursuant to authorization of the Plan Administrator.

     “Performance-Based
Compensation” means Compensation based on
services performed over a period of not less than 12 consecutive months and
which meets the following requirements: (a) the payment of the Compensation or
the amount of the Compensation is contingent upon the satisfaction of
pre-established organizational or individual performance criteria and (b) the
performance criteria are not substantially certain to be met at the time an
Enrollment Agreement is submitted to the Plan Administrator. For purposes
hereof, “pre-established organizational or individual performance criteria”
shall mean criteria which are established in writing by not later than ninety
(90) days after the commencement of the period of service to which the criteria
relates, provided that the outcome is substantially uncertain at the time the
criteria are established. Performance criteria may be subjective but must be
bona fide and relate to the performance of the Participant, a group of Employees
that includes the Participant or a business unit (which may include the Company
or a Participating Employer) for which the Participant provides services. The
determination that any subjective performance criteria have been met shall not
be made by the Participant or by a family member of the Participant.
Performance-Based Compensation does not include any amount or portion of any
amount that will be paid regardless of performance or which is based on a level
of performance that is substantially certain to be met at the time the criteria
is established. 

     “Plan” means the CalAmp Deferred
Compensation Plan, as amended from time to time. 

     “Plan Administrator” means the
Committee or any person(s) or entity appointed by the Committee to perform the
duties of Plan Administrator hereunder. 

     “Plan Year” means the 12-month period
beginning on each January 1 and ending on the following December 31. The initial
Plan Year is the period beginning on August 23, 2013 and ending on December 31,
2013. 

     “Retirement” means a Participant’s
Separation from Service with the Participating Employer after (i) attaining at
least five (5) years of Service and (ii) the date upon which the sum of a
Participant’s age and such Participant’s consecutive full years of Service
(since such Participant’s most recent date of hire or election to the Board, as
applicable) with the Company or any Affiliate equals or exceeds 65. 

4

     “Retirement Savings
Plan” means the Company’s Retirement Savings
Plan, or any other defined contribution plan designated by the Company which is
maintained by the Participating Employer and intended to be qualified under Code
Section 401(a). 

     “Separation from Service” means the
termination of a Participant’s employment or Service with a Participating
Employer for any reason which constitutes a “separation from service” within the
meaning of Section 409A of the Code and the regulations promulgated thereunder,
including Treasury Regulation Section 1.409A-1(h). 

     “Service” means, for a Participant who
is an Employee, the period of time during which an employment relationship
exists between an Employee and the Participating Employer or any Affiliate, or
predecessor businesses thereof including Aercept, Dataradio, Skybility,
Technocom and Wireless Matrix and Radio Satellite Integrators, including any
period during which the Employee is on an approved leave of absence, whether
paid or unpaid. “Service” shall not be deemed to have ceased if an Employee
transfers directly between a Participating Employer and the Company or another
Affiliate. “Service” means, for a Participant who is a Non-Employee Director,
the period of time during which the Non-Employee Director serves as a member of
the Board. 

     “Subsequent Election” means an election
made by a Participant in accordance with Section 4.1(d). 

     “Unforeseeable Emergency” means a
severe financial hardship to the Participant resulting from an illness or
accident of the Participant, the Participant’s spouse, the Participant’s
Beneficiary, or a dependent (as defined in Code Section 152, without regard to
Section 152(b)(1), (b)(2), and (d)(1)(B)) of the Participant; loss of the
Participant’s property due to casualty; or other similar extraordinary and
unforeseeable circumstances arising as a result of events beyond the control of
the Participant, in each case as determined in the sole discretion of the Plan
Administrator. 

     “Valuation Date” shall mean each
business day except as specified below.

               (a) The Valuation Date for
benefits upon Retirement and for benefits upon Separation from Service shall be
(i) except as set forth in clause (ii) immediately below, the last business day
of the month in which the Separation from Service occurs or, (ii) with respect
to Key Employees whose benefits are delayed to comply with Treasury Regulation
Section 1.409A-3(i)(2), the last business day of the month following the date
which is six months following such Participant’s Separation from
Service.

               (b) The Valuation Date for an in
Service distribution shall be the last business day of the month in which the in
Service distribution date occurs.

               (c) The Valuation Date for
benefits upon Disability shall be the last business day of the month in which
the Plan Administrator determines that the Participant is Disabled.

               (d) The Valuation Date for
benefits upon death is the last business day of the month in which the
Participant’s death occurs.

     “Vested
Interest” means the portion of a Participant’s Class Year Distribution Account(s)
which, pursuant to the Plan, is nonforfeitable. 

5

ARTICLE 3 
ADMINISTRATION OF THE PLAN AND DISCRETION 

          3.1. The Plan Administrator shall have full power and authority to interpret
the Plan, to prescribe, amend and rescind any rules, forms and procedures as it
deems necessary or appropriate for the proper administration of the Plan and to
make any other determinations and to take any other such actions as it deems
necessary or advisable in carrying out its duties under the Plan; including,
without limitation, the investment direction of Plan assets. All action taken by
the Plan Administrator arising out of, or in connection with, the administration
of the Plan or any rules adopted thereunder, shall, in each case, lie within its
sole discretion, and shall be final, conclusive and binding upon the Company,
the Board, all Participating Employers, all Employees, all Participants, all
Beneficiaries and all persons and entities having an interest in the Plan. The
Plan Administrator, may, however, delegate to any person or entity any of its
powers or duties under the Plan. To the extent of any such delegation, the
delegate shall become the Plan Administrator responsible for administration of
the Plan, and references to the Plan Administrator shall apply instead to the
delegate. Any action by the Plan Administrator assigning any of its
responsibilities to specific persons who are directors, officers or employees of
the Company shall not constitute delegation of the Plan Administrator’s
responsibility but rather shall be treated as the manner in which the Plan
Administrator has determined internally to discharge such responsibility.

          3.2. The Plan Administrator shall
serve without compensation for its services unless otherwise determined by the
Board. Except as set forth in Section
5.2(b), all expenses of administering the
Plan shall be paid by the Company. 

          3.3. The Company and Participating
Employers shall indemnify and hold harmless the Committee and Plan Administrator
and the members thereof from any and all claims, losses, damages, expenses
(including counsel fees) and liability (including any amounts paid in settlement
of any claim or any other matter with the consent of the Board) arising from any
act or omission of such member, except when the same is due to gross negligence
or willful misconduct. 

          3.4. Any decisions, actions or
interpretations to be made under the Plan by the Company, the Board, any
Participating Employer or the Plan Administrator shall be made in its respective
sole discretion, not as a fiduciary, and need not be uniformly applied to
similarly situated individuals and shall be final, binding and conclusive on all
persons interested in the Plan. 

          3.5. Upon a Change of Control, the
Plan Administrator, as constituted immediately prior to such Change of Control,
shall continue to act as the Plan Administrator. However, the individual who was
the Chief Executive Officer of the Company (or if such person is unable or
unwilling to act, the next highest ranking officer) immediately prior to the
Change of Control shall have the authority (but shall not be obligated) to
appoint an independent third party to act as the Plan Administrator.

6

               Upon such Change of Control, the Company may not remove the
Plan Administrator in existence prior to such Change of Control, unless 2/3rds
of the members of the Board and a majority of Participants and Beneficiaries
with account balances consent to such removal and replacement. With respect to
directing the investment of Plan assets, the trustee of any rabbi trust shall
follow the instructions in place prior to such Change of Control, as amended at
any time, from the Plan Administrator that was designated and in existence prior
to such Change of Control or from any duly appointed independent third party
appointed under this Section.

          3.6. The Company and Participating
Employers shall, with respect to the Plan Administrator identified under this
Section: (i) pay all reasonable expenses and fees of the Plan Administrator; and
(ii) supply full and timely information to the Committee on all matters related
to the Plan, any rabbi trust, Participants, Beneficiaries and accounts as the
Plan Administrator may reasonably require. 

ARTICLE 4
PARTICIPATION

          4.1. Election to Participate. 

               (a) Eligibility and Timing of
Election to Participate. Any Eligible
Employee or Eligible Director may enroll in the Plan effective as of the first
day of a Plan Year by filing a completed and fully executed Enrollment Agreement
with the Plan Administrator by a date set by the Plan Administrator. 

                    (i) Filing of Enrollment
Agreement. Subject to Sections 4.1(e), 4.3 and clause
(iii) below, an executed Enrollment Agreement must be filed by December 31 of
the Plan Year preceding the Plan Year in which such Compensation is to be
earned, or such other time as may be established by the Plan Administrator;
provided,
however,
that all deferral elections under the Plan must be made at a time that is
permitted under applicable law, including, without limitation, Code Section
409A. 

                    (ii) Revocation of
Election. Except as otherwise provided in
Section 6.7(a), deferral elections for a Plan Year are irrevocable. 

                    (iii) “Evergreen” Enrollment
Agreement. The Plan Administrator, in its discretion, may provide in the Enrollment Agreement
that such Enrollment Agreement will continue in effect for each subsequent year
or performance period. Such “evergreen” Enrollment Agreements will become
effective with respect to an item of Compensation on the date such election
becomes irrevocable under this Section
4.1. An evergreen Enrollment Agreement may be
terminated or modified prospectively with respect to Compensation for which such
election remains revocable under this Section
4.1. 

7

               (b) Amount of
Deferral. Pursuant to the applicable
Enrollment Agreement, the Eligible Employee or Eligible Director shall
irrevocably elect the percentage or dollar amount by which (as a result of
payroll deduction, in the case of Participants that are Employees) the
Participant’s Compensation will be deferred for the Plan Year. Each Participant’s Enrollment Agreement shall designate separately
the percentage or dollar amount of Compensation to be taken from the
Participant’s base salary, short term incentive compensation, Full Value Equity
Awards, director fees or retainers and any other incentive compensation approved
by the Company for the Plan Year, in each case, as applicable; and whether, if
applicable, to defer in the Plan any refund to the Participant of 401(k)
contributions made to the Company’s Retirement Savings Plan. Notwithstanding the
foregoing, partial deferrals of Full Value Equity Awards shall not be permitted;
if a Participant elects to defer the settlement of Full Value Equity Awards to
be granted during a Plan Year, such election will apply to all Full Value Equity
Awards granted during such year. Subject to the following sentence, the amount
that may be deferred is any whole percentage or dollar amount of the
Participant’s Compensation; provided,
however, that, for Participants that are
Employees, deferrals will be made after required payroll tax deductions and any
deductions elected by the Participant (including, but not limited to, deductions
for payment for medical and other benefit coverages). The Plan Administrator may
establish maximum and/or minimum amounts and/or percentages that may be deferred
under this Section 4.1 and may change such standards from time to time. Any such
maximum or minimum and the type of Compensation to which the maximum or minimum
applies shall be communicated by the Plan Administrator to the Participants
prior to the date by which Participants must submit an Enrollment Agreement with
respect to the Plan Year.

               (c) Timing and Form of Payment of Distribution from Accounts. At the time that a Participant makes a deferral election
with respect to a Plan Year, the Participant shall designate the time and form
in which such deferral and any notional earnings or losses thereon shall be
distributed; provided, however, that all Enrollment Agreements filed by an Eligible Employee
or Eligible Director must provide for distribution to be made at a time and in a
form that is consistent with the distribution options made available under the
Plan and permitted under applicable law, including, without limitation, Code
Section 409A. In accordance with the foregoing, a Participant may only designate
one or more of the following as the time at which a distribution will be made:

                    (i) Pursuant to a specified time
or fixed schedule in accordance with Treasury Regulation Section 1.409A-3(i)(1); 

                    (ii) Upon a Separation from
Service;

                    (iii) Upon a Change of
Control;

                    (iv) Upon a Disability;
or

                    (v) Upon death; 

With respect to the deferral of a Full
Value Equity Award that vests ratably over a period of two or more years, the
initial deferral period for such award must end on the last vesting date of such
award or on an anniversary date of the last vesting date of such award. With
respect to the deferral of a Full Value Equity Award with a cliff vesting
provision, the initial deferral period for such award must end on the first
anniversary of the vesting date or on some later anniversary of the vesting
date. 

8

An election with respect to the time and
form of benefit distributions may not be changed, except as expressly provided
for herein. In the event the Participant fails to make a valid election of the time and form of payment, the distribution
will be made in a lump sum upon the first to occur of (ii) through (v) above. In
the event that such date is determined to be after a Participant’s Separation
from Service and the Participant to whom the payment relates is determined to be
a Key Employee, then to the extent deemed necessary to comply with Treasury
Regulation Section 1.409A-3(i)(2), the payment shall not be made before the end
of the six-month period following such Participant’s Separation from
Service.

               (d) Subsequent Elections. Each Participant
who has made an election to defer Compensation may make a Subsequent Election to
further defer the time of payment and/or change the form of payment for one or
more of such Participant’s Class Year Distribution Accounts. No such Subsequent
Election shall be valid unless it is made 12 months prior to the previously
scheduled payment date applicable to such distribution account, it does not take
effect until at least 12 months after the date on which the Subsequent Election
is made, and the payment commencement date is deferred for not less than five
(5) years from the previously scheduled payment date. For the avoidance of
doubt, in the event of the Participant’s Separation from Service with the
Company prior to the expiration of 12 months from the date the Subsequent
Election is made, the Subsequent Election shall be of no effect. For purposes of
this subsection, a series of installment payments shall be considered a single
payment. 

               (e) Performance Based
Compensation. An Enrollment Agreement with
respect to the deferral of Performance-Based Compensation must be submitted to
the Plan Administrator no later than six (6) months prior to the end of the
period in which the services are performed and in accordance with the Section
409A of the Code and Treasury Regulation Section 1.409A-2(a)(8). An Enrollment
Agreement submitted pursuant to this Section
4.2(e) shall become irrevocable as of the day
immediately following the latest date for filing such election. 

          4.2. Leave of Absence.

               (a) Paid Leave of
Absence. If a Participant is authorized by
his or her Participating Employer for any reason to take a paid leave of absence
from the employment or Service of the Participating Employer, and such leave of
absence does not constitute a Separation from Service, the Participant shall
continue to be considered actively employed by or in the service of the
Participating Employer for purposes hereof and the Participant’s Enrollment
Agreement shall continue to apply to any Compensation paid during such leave of
absence. 

               (b) Unpaid Leave of
Absence. If a Participant is authorized by
his or her Participating Employer for any reason to take an unpaid leave of
absence from the employment of or Service with the Participating Employer, the
Participant shall continue to be considered actively employed by the
Participating Employer for purposes hereof. Upon the earlier of the date the
leave of absence expires or the date the Participant returns to paid employment
or service, deferrals shall resume for the remaining portion of the Plan Year in
which the expiration or return occurs, based on the Enrollment Agreement, if
any, in effect for that Plan Year. If no deferral election was made for that
Plan Year, no Plan deferrals shall be withheld from Compensation for the
remainder of the Plan Year. 

9

          4.3. Filing of Elections by New Eligible Employees or Eligible
Directors. The Plan Administrator may, in its discretion, permit an Employee or
Non-Employee Director who first becomes an Eligible
Employee or Eligible Director after the beginning of a Plan Year to enroll in
the Plan for that Plan Year by filing a completed and fully executed Enrollment
Agreement, in accordance with Section
4.1, as soon as practicable following the
date the Employee or Non-Employee Director becomes an Eligible Employee or
Eligible Director but, in any event, not later than 30 days after such date.
Notwithstanding the foregoing, however, any election by an Eligible Employee or
Eligible Director to defer Compensation pursuant to this Section 4.3 shall apply
only to such amounts as are earned by the Eligible Employee or Eligible Director
after the date on which such Enrollment Agreement is filed. 

ARTICLE 5 
ALLOCATION TO ACCOUNTS 

          5.1. Accounts. For each Participant, the
Plan Administrator shall establish and maintain a Cash Class Year Distribution
Account and an Equity Class Year Distribution Account, as applicable, for each
Plan Year. The amount of Compensation deferred for a Plan Year pursuant to
Article 4
shall be credited by the Participating Employer to the Participant’s Class Year
Distribution Account(s), in accordance with the Participant’s Enrollment
Agreement, as soon as reasonably practicable following the close of the payroll
period, compensation payment date or equity settlement date for which the
Compensation would otherwise be payable or settled, as applicable, as determined
by the Plan Administrator in its sole discretion. Amounts credited to a
Participant’s Equity Class Year Distribution Account in respect of deferrals of
Full Value Equity Awards shall be credited in the form of deferred stock units
with each deferred stock unit the equivalent of one share of Common Stock, that
would have otherwise been issued upon settlement of the Full Value Equity Award
at the time of vesting, subject to any adjustment contemplated in the equity
plan pursuant to which the Full Value Equity Award was granted. Any amount once
taken into account as Compensation for purposes of the Plan shall not be taken
into account thereafter. The Participant’s Class Year Distribution Account(s)
shall be reduced by the amount of payments made by the Company to the
Participant or the Participant’s Beneficiary pursuant to the Plan. 

          5.2. Earnings and Losses on Accounts.

               (a) General. A Participant’s Cash Class Year Distribution Account(s)
shall be deemed credited with earnings (positive or negative) in accordance with
the Earnings Crediting Options elected by the Participant from time to time.
Participants may allocate their Cash Class Year Distribution Accounts among the
Earnings Crediting Options available under the Plan only in whole percentages of
not less than 1%. A Participant’s Equity Class Year Distribution Account shall
be deemed credited with earnings (positive or negative) that mirror the
performance of the number of shares of Common Stock equal to the number of
deferred stock units credited to the Participant’s Equity Class Year
Distribution Account. If dividends on the Common Stock payable in cash are
declared, additional deferred stock units will be credited to such Equity Class
Year Distribution Account in the following manner. First, a notional value equal
to the cash value of dividends that would be paid upon the same number of whole
shares of Common Stock as the Participant has deferred stock units in his or her
Equity Class Year Distribution Account on the record date established for such
dividend will be calculated. Second, such
notional value will be deemed to be allocated to the Participant’s Equity Class
Year Distribution Account and credited to a corresponding number of deferred
stock units to such Equity Class Year Distribution Account (in whole or
fractional units) as of the same date, as soon as administratively
practicable.

10

               (b) Investment Options. The deemed rate of
return, positive or negative, credited or debited, as the case may be, under
each Earnings Crediting Option is based upon the actual investment performance
of the investment fund(s) as the Plan Administrator may designate from time to
time, and shall equal the total return of such investment fund net of asset
based charges, including, without limitation and as the Plan Administrator
determines from time to time, money management fees, and fund expenses. The
amount of such deemed investment rate of return shall be determined by the Plan
Administrator and such determination shall be final and conclusive upon all
concerned. The Plan Administrator reserves the right, on a prospective basis, to
add or delete Earnings Crediting Options. If a Participant does not make an
election of an Earnings Crediting Option, the Participant’s Cash Class Year
Distribution Account will be allocated to such Earnings Crediting Option(s) as
determined by the Plan Administrator in its sole discretion, and the Plan
Administrator shall be absolved of any liability or responsibility for such
action.

          5.3. Earnings Crediting Options.
Notwithstanding that the rates of return credited or debited to Participants’
Cash Class Year Distribution Accounts under the Earnings Crediting Options are
based upon the actual performance of the investment options specified in
Section 5.2, or such other investment funds as the Plan Administrator may designate,
the Company shall not be obligated to invest any Compensation deferred by
Participants under this Plan, or any other amounts, in such portfolios or in any
other investment funds.

          5.4. Changes in Earnings Crediting Options.
A Participant may change the Earnings Crediting Options to which the
Participant’s Cash Class Year Distribution Accounts are deemed to be allocated,
subject to such rules and limitations as may be determined by the Plan
Administrator. Each such change may include (a) reallocation of the
Participant’s existing Cash Class Year Distribution Account(s) in whole
percentages of not less than 1%, and/or (b) change in investment allocation of
amounts to be credited or debited to the Participant’s Cash Class Year
Distribution Account(s) in the future, as the Participant may elect. The effect
of a Participant’s change in Earnings Crediting Options shall be reflected in
the Participant’s Cash Class Year Distribution Account(s) at such time following
the Plan Administrator’s receipt of notice of such change as shall be determined
by the Plan Administrator in its sole discretion. 

          5.5. Valuation of Accounts. The value of a
Participant’s Class Year Distribution Account(s) as of any Valuation Date shall
equal the amounts theretofore credited or debited to such Distribution
Account(s), including any earnings (positive or negative) deemed to be earned on
such Distribution Account(s) in accordance with Section 5.2 through the day preceding
such date (or the last trading date prior to such date, in the case of an Equity
Class year Distribution Account), less the amounts theretofore deducted from
such Distribution Account(s). 

          5.6. Statement of Accounts. The Plan
Administrator shall provide to each Participant, not less frequently than
annually, a statement in such form as the Plan Administrator deems appropriate
setting forth the balance standing to the credit of each Participant in each of
his or her Class Year Distribution Accounts. 

11

          5.7. Distributions from Accounts.

               (a) For purposes of any provision of the Plan relating to distribution of
benefits to Participants or Beneficiaries, the value of a Participant’s Class
Year Distribution Account(s) shall be determined as of any Valuation Date as
soon as reasonably practicable preceding the distribution date, as determined by
the Plan Administrator in its sole discretion. In the case of any benefit
payable in the form of a single lump-sum payment, the value of a Participant’s
Class Year Distribution Account(s), as determined pursuant to this
Article 5,
shall be distributed. In the case of any benefit payable in the form of annual
installments, as of any payment date, the amount of each installment payment
shall be determined as the quotient of (x) the value of the Participant’s Class
Year Distribution Account subject to distribution, as determined pursuant to
this Article 5, divided by (y) the number of remaining annual installments immediately
preceding the payment date.

               (b) In the case of any benefit
payable in the form of annual installments, the initial installment will be paid
within 90 days after the event giving rise to the distribution (Retirement,
Separation from Service, Disability or death, as applicable), and subsequent
installments will be valued each December 31st and paid as soon as
administratively feasible thereafter. 

               (c) Any distribution made to or on
behalf of a Participant from such Participant’s Cash Class Year Distribution
Account in an amount which is less than the entire balance of any such
Distribution Account shall be made pro rata from each of the Earnings Crediting
Options to which such Distribution Account is then allocated. 

               (d) Any and all distributions from
a Participant’s Cash Class Year Distribution Account(s) shall be made in cash.
Any and all distributions from a Participant’s Equity Class Year Distribution
Account(s) shall be distributed in whole shares of Common Stock (one share for
each deferred stock unit) and any remainder shall be distributed in cash. No
fractional shares will be issued under the Plan. 

ARTICLE 6 
BENEFITS TO PARTICIPANTS 

          6.1. Benefits From the Class Year Distribution Account(s). Benefits from a Participant’s Class Year Distribution
Account shall be paid to the Participant as follows: 

               (a) In-Service
Distributions. In the case of a Participant
who continues in Service, the portion of the Participant’s Class Year
Distribution Account consisting solely of the Participant’s deferrals under
Section 4.1
and earnings thereon under Section
5.2 shall be paid or commence to be paid to
the Participant by the payment date elected by the Participant in the Enrollment
Agreement pursuant to which such Class Year Distribution Account was established
(which payment date may be no earlier than the first month of the second Plan
Year after the Plan Year for which such Class Year Distribution Account was
established, e.g., January 2014 for the 2013 Class Year Distribution Account),
in a lump sum or in up to five (5) annual installments, as elected by the
Participant in the Enrollment Agreement or in a Subsequent Election. 

12

               (b) Continuation of Service
Condition. In the case of a Participant whose
Service with a Participating Employer ceases, the Participant’s elections in an
Enrollment Agreement or in a Subsequent Election with
respect to the time and form of distribution of such Participant’s Class Year
Distribution Account(s) applicable when a Participant is in Service shall be
void and of no effect, and distribution of such Distribution Account(s) shall be
governed by the Participant’s elections in an Enrollment Agreement or in a
Subsequent Election applicable to distribution upon Retirement, Separation from
Service, Disability or death, as applicable.

          6.2. Vesting. 

               (a) A Participant shall have a
100% Vested Interest in his or her Cash Class Year Distribution Account(s), and
any deemed earnings thereon, at all times. A Participant will vest in his or her
Equity Class Year Distribution Account(s) at the same rate as the vesting
schedule of the underlying Full Value Equity Award(s). 

          6.3. Benefits Upon
Retirement. As soon as practicable following
Retirement, each Class Year Distribution Account of the Participant shall be
distributed in one of the following methods, as elected by the Participant in
the Enrollment Agreement pursuant to which such Class Year Distribution Account
was established or in a Subsequent Election: (a) in a lump sum or (b) in up to
fifteen (15) annual installments. Such Participant’s Distribution Account(s)
shall continue to be credited with earnings and/or losses in accordance
with Section 5.2 until fully distributed. 

          6.4. Benefits Upon Separation
from Service. As soon as practicable
following a Participant’s Separation from Service prior to Retirement, the
Vested Interest of all of the Participant’s Class Year Distribution Accounts
shall be distributed in a lump sum. Such Participant’s Distribution Account(s) shall continue to be credited with
earnings and/or losses in accordance with Section 5.2 until fully distributed.
In the event that the Participant to whom the payment relates is determined to
be a Key Employee, then to the extent deemed necessary to comply with Treasury
Regulation Section 1.409A-3(i)(2), the payment shall not be made before the end
of the six-month period following such Participant’s Separation from
Service.

          6.5. Benefits Upon
Death. In the event of a Participant’s death
before the complete distribution of his or her Class Year Distribution Accounts,
such Participant’s Beneficiary, named on the most recently filed Designation of
Beneficiary form, shall be paid a lump sum as soon as practicable following the
Participant’s death. Such Participant’s Distribution Account(s) shall continue
to be credited with earnings and/or losses in accordance with Section 5.2 until fully
distributed.

          6.6. Benefits Upon Disability. In the case of a Participant who becomes
Disabled, all of the Participant’s Class Year Distribution Accounts shall be
distributed in a lump sum as soon as practicable following the Participant’s
becoming Disabled. Such Participant’s Distribution Account(s) shall continue to
be credited with earnings and/or losses in accordance with Section 5.2 until fully
distributed. 

          6.7. Acceleration of
Payment. 

               (a) Unforeseeable
Emergency. In the event that the Plan
Administrator, upon written request of a
Participant, determines, in its sole discretion, that the Participant has
suffered an Unforeseeable Emergency, the Company shall pay to the Participant
from his or her Class Year Distribution Account(s), as soon as practicable
following such determination, an amount necessary to meet
such Unforeseeable Emergency, in a manner consistent with Code Section 409A and
the regulations issued thereunder, after deduction of any and all taxes as may
be required pursuant to Section
7.9 (the “Emergency Benefit”). Emergency
Benefits shall be paid to the extent such portion of one or more of such Class
Year Distribution Accounts is sufficient to meet the emergency, in the order in
which such Accounts would otherwise be distributed to the Participant. With
respect to that portion of any Class Year Distribution Account which is
distributed to a Participant as an Emergency Benefit in accordance with this
Section 6.7(a), no further benefit shall be payable to the Participant under this Plan.
To the extent required by the regulations under Code Section 409A, upon receipt
of Emergency Benefits, the Participant’s deferral election under Section 4.1 shall be
cancelled for the rest of the Plan Year in which the Emergency Benefits are
paid. 

13

               (b) Change of
Control. 

                    (i) To the extent permitted by the
regulations under Code Section 409A, within the 30 days preceding or the twelve
(12) months following a Change of Control, the Company may exercise its
discretion to terminate this Plan and, notwithstanding any other provision of
the Plan or the terms of any Enrollment Agreement or Subsequent Election,
distribute to or with respect to each Participant all of his or her Class Year
Distribution Accounts in a single lump sum payment. 

                    (ii) A Participant will receive all
his or her Class Year Distribution Accounts in a single lump sum payment equal
to the unpaid balance of all of his or her Accounts within ninety (90) days from
his or her Separation from Service if such Separation from Service occurs within
eighteen (18) months following a Change of Control.

                    (iii) A Participant who is receiving
Retirement installment payments at the time of a Change of Control will receive
the unpaid balance of his or her Class Year Distribution Accounts in a single
lump sum within ninety (90) days after such Change of Control regardless of any
election otherwise made in his or her Enrollment Agreement or Subsequent
Election.

               (c) Other Acceleration
Event. To the extent permitted by Code
Section 409A and the regulations issued thereunder, notwithstanding the terms of
an Enrollment Agreement or Subsequent Election, distribution of all or part of a
Participant’s Class Year Distribution Account(s) may be made at any time the
Plan fails to meet the requirements of Code Section 409A and the regulations
thereunder, with such payment not to exceed the amount required to be included
in the Participant’s income as a result of the failure. 

          6.8. Small Balance Cash-Out. If a
Participant becomes eligible for a distribution in accordance with the
provisions of this Article 6, the Plan Administrator shall, notwithstanding any election
of the time and form of payment by the Participant, distribute to the
Participant the Participant’s Class Year Distribution Account(s) in a lump sum,
if the total value of the Participant’s Class Year Distribution Account(s) on
the date that payment is to commence does not exceed $50,000 or the maximum
amount permitted to be automatically distributed under the regulations
promulgated under Code Section 409A, with such payment made on or before the
later of (a) December 31 of the calendar year in which the Participant’s
Retirement, Separation from Service, Disability or death occurs, or (b) the
fifteenth day of the third month following the Participant’s Retirement, Separation from
Service, Disability or death. In the event that such date is determined to be
after a Participant’s Separation from Service and the Participant to whom the
payment relates is determined to be a Key Employee, then to the extent deemed
necessary to comply with Treasury Regulation Section 1.409A-3(i)(2), the
payment shall not be made before the end of the six-month period following such
Participant’s Separation from Service.

14

          6.9. Deduction Limitation on Benefit Payments. Notwithstanding the foregoing, if a Participating Employer reasonably
anticipates that the Participating Employer’s deduction with respect to any
distribution from the Plan would be limited or eliminated by application of Code
Section 162(m), then to the extent permitted by Treasury Regulation Section
1.409A-2(b)(7)(i), payment shall be delayed as deemed necessary to ensure that
the entire amount of any distribution from this Plan is deductible. Any amounts
for which distribution is delayed pursuant to this Section shall continue to be
credited with earnings and/or losses in accordance with Section 5.2 until fully
distributed. The delayed amounts (and any amounts credited or debited thereon)
shall be distributed to the Participant (or his or her Beneficiary in the event
of the Participant’s death) at the earliest date the Participating Employer
reasonably anticipates that the deduction of the payment of the amount will not
be limited or eliminated by application of Code Section 162(m). In the event
that such date is determined to be after a Participant’s Separation from Service
and the Participant to whom the payment relates is determined to be a Key
Employee, then to the extent deemed necessary to comply with Treasury Regulation
Section 1.409A-3(i)(2), the delayed payment shall not be made before the end of
the six-month period following such Participant’s Separation from
Service.

ARTICLE 7
MISCELLANEOUS

          7.1. Amendment and Termination. The Plan
may be amended, suspended, discontinued or terminated at any time by the
Company; provided, however, that no such amendment, suspension, discontinuance or
termination shall reduce or in any manner adversely affect the rights of any
Participant with respect to benefits that are payable or may become payable
under the Plan based upon the vested balance of the Participant’s Class Year
Distribution Account(s) as of the effective date of such amendment, suspension,
discontinuance or termination. Notwithstanding the preceding provisions of this
Section 7.1, the Company reserves the right to amend the Plan, either retroactively
or prospectively, in whatever manner is required to achieve compliance with the
requirements of Code Section 409A. 

          7.2. Claims Procedure. It is intended that
the claims procedures of this Plan be administered in accordance with the claims
procedure regulations of the Department of Labor set forth in 29 CFR §2560.503-1. 

               (a) Claim. A person who believes that he or she is being denied a
benefit to which he is entitled under the Plan (hereinafter referred to as a
“Claimant”)
may file a written request for such benefit with the Plan Administrator, setting
forth the claim. 

               (b) Claim
Decision. Upon receipt of a claim, the Plan
Administrator shall advise the Claimant within ninety (90) days of receipt of
the claim whether the claim is denied. If special circumstances require more
than ninety (90) days for processing, the Claimant will be notified in writing
within ninety (90) days of filing the claim that the Plan Administrator requires up to an additional ninety (90)
days to reply. The notice will explain what special circumstances make an
extension necessary and indicate the date a final decision is expected to be
made.

15

               If the claim is denied in whole or in part, the Claimant shall
be provided a written opinion, using language calculated to be understood by the
Claimant, setting forth:

                    (i) The specific reason or reasons
for such denial; 

                    (ii) The specific reference to
pertinent provisions of this Plan on which such denial is based; 

                    (iii) A description of any
additional material or information necessary for the Claimant to perfect his or
her claim and an explanation why such material or such information is necessary;

                    (iv) Appropriate information as to
the steps to be taken if the Claimant wishes to submit the claim for
review;

                    (v) The time limits for requesting
a review under subsection (c) and for review under subsection (d) hereof;
and

                    (vi) The Claimant’s right to bring
a civil action under Section 502(a) of ERISA following an adverse benefit
determination. 

               (c) Request for
Review. Within sixty (60) days after the
receipt by the Claimant of the written opinion described above, the Claimant may
request in writing that the Plan Administrator review its determination. The
Claimant or his or her duly authorized representative may, but need not, review
the pertinent documents and submit issues and comments in writing for
consideration by the Plan Administrator. If the Claimant does not request a
review of the initial determination within such sixty (60) day period, the
Claimant shall be barred and estopped from challenging the determination.

               (d) Review of
Decision. Within sixty (60) days after the
Plan Administrator’s receipt of a request for review, it will review the initial
determination. After considering all materials presented by the Claimant, the
Plan Administrator will render a written opinion, written in a manner calculated
to be understood by the Claimant, setting forth the specific reasons for the
decision and containing specific references to the pertinent provisions of the
Plan on which the decision is based. If special circumstances require that the
sixty (60) day time period be extended, the Plan Administrator will so notify
the Claimant and will render the decision as soon as possible, but no later than
one hundred twenty (120) days after receipt of the request for review.

          7.3. Designation of Beneficiary. Each
Participant may designate a Beneficiary or Beneficiaries (which Beneficiary may
be an entity other than a natural person) to receive any payments which may be
made following the Participant’s death. Such designation may be changed or
canceled at any time without the consent of any such Beneficiary. Any such
designation, change or cancellation must be made in a form approved by the Plan
Administrator and shall not be effective until received by the Plan
Administrator, or its designee. If no Beneficiary
has been named, or the designated Beneficiary or Beneficiaries shall have
predeceased the Participant, the Beneficiary shall be the Participant’s estate.
If a Participant designates more than one Beneficiary, the interests of such
Beneficiaries shall be paid in equal shares, unless the Participant has
specifically designated otherwise.

16

          7.4. Limitation of Participant’s Right.
Nothing in this Plan shall be construed as conferring upon any Participant any
right to continue in Service, nor shall it interfere with the rights of the
Employer to terminate the employment or Service of any Participant and/or to
take any personnel action affecting any Participant without regard to the effect
which such action may have upon such Participant as a recipient or prospective
recipient of benefits under the Plan. Any amounts payable hereunder shall not be
deemed salary or other compensation to a Participant for the purposes of
computing benefits to which the Participant may be entitled under any other
arrangement established by the Company or its Affiliates for the benefit of its
employees. 

          7.5. No Limitation on Company Actions.
Nothing contained in the Plan shall be construed to prevent the Company from
taking any action which is deemed by it to be appropriate or in its best
interest.

          7.6. Obligations to Participating Employer.
If a Participant becomes entitled to a distribution of benefits under the Plan,
and if at such time the Participant has outstanding any debt, obligation, or
other liability representing an amount owing to the Participating Employer, then
the Participating Employer may offset such amount owed to it against the amount
of benefits otherwise distributable. Such determination shall be made by the
Plan Administrator in its sole discretion. 

          7.7. Nonalienation of Benefits. Except as
expressly provided herein, no Participant or Beneficiary shall have the power or
right to transfer (otherwise than by will or the laws of descent and
distribution), alienate, or otherwise encumber the Participant’s or
Beneficiary’s interest under the Plan. The Participating Employer’s obligations
under this Plan are not assignable or transferable, except to (a) any
corporation or other entity which acquires all or substantially all of the
Participating Employer’s assets or (b) any corporation or other entity into
which the Participating Employer may be merged or consolidated. The provisions
of the Plan shall inure to the benefit of each Participant and the Participant’s
Beneficiaries, heirs, executors, administrators or successors in interest.

          7.8. Protective Provisions. Each
Participant shall cooperate with the Company by furnishing any and all
information requested by the Company in order to facilitate the payment of
benefits hereunder, taking such physical examinations as the Company may deem
necessary and taking such other relevant action as may be requested by the
Company. If a Participant refuses to cooperate, the Company shall have no
further obligation to the Participant under the Plan, other than payment to such
Participant of the then current vested balance of the Participant’s Class Year
Distribution Account(s) in accordance with his or her applicable Enrollment
Agreement and/or Subsequent Election. 

          7.9. Taxes. The Participating Employer may
make such provisions and take such action as it may deem appropriate for the
withholding of any taxes which the Participating Employer is required by any law
or regulation of any governmental authority, whether Federal, state or local, to
withhold in connection with any benefits under the Plan, including, but not
limited to, the withholding of appropriate sums from any amount otherwise
payable to the Participant (or his or her Beneficiary). Each Participant,
however, shall be responsible for the payment of all individual tax liabilities
relating to any such benefits.

17

          7.10. Unfunded Status of
Plan. The Plan is an “unfunded” plan for tax
and ERISA purposes. This means that the amount of each Class Year Distribution
Account of a Participant is represented by the amount assigned to a memorandum
bookkeeping account, which is allocated to hypothetical shares or units of
investment funds (or Common Stock) available under the Plan. As the nature of
the investment funds (or Common Stock) that form the “index” or “meter” for the
valuation of the memorandum bookkeeping account changes, the valuation of the
bookkeeping account changes as well. The amount owed to a Participant at any
point in time is represented by the value assigned to the memorandum bookkeeping
account. The Company may decide to use a “rabbi trust” to anticipate its
potential Plan liabilities, and it may attempt to have Plan investments mirror
the hypothetical investments deemed credited to the bookkeeping accounts.
However, the liability to pay the benefits is the Company’s, and the assets of
the rabbi trust are potentially available to satisfy the claims of general
creditors of the Company that are not Plan Participants. Each Class Year
Distribution Account of a Participant shall at all times represent a general
obligation of the Company. The Participant shall be a general creditor of the
Company with respect to this obligation, and shall not have a secured or
preferred position with respect to the Participant’s Class Year Distribution
Account(s). Nothing contained herein shall be deemed to create an escrow, trust,
custodial account or fiduciary relationship of any kind. 

          7.11. Severability. If any provision of this
Plan is held unenforceable, the remainder of the Plan shall continue in full
force and effect without regard to such unenforceable provision and shall be
applied as though the unenforceable provision were not contained in the Plan.

          7.12. Governing
Law. To the extent not preempted by federal
law, the Plan shall be construed in accordance with and governed by the laws of
the State of California, without reference to the principles of conflict of
laws. 

          7.13. Headings. Headings are inserted in this Plan for convenience of
reference only and are to be ignored in the construction of the provisions of
the Plan. 

          7.14. Gender, Singular and
Plural. All pronouns and any variations
thereof shall be deemed to refer to the masculine, feminine, or neuter, as the
identity of the person or persons may require. As the context may require, the
singular may read as the plural and the plural as the singular. 

          7.15. Spouse’s
Interest. The interest in the benefits
hereunder of a spouse of a Participant who has predeceased the Participant shall
automatically pass to the Participant and shall not be transferable by such
spouse in any manner, including but not limited to such spouse’s will, nor shall
such interest pass under the laws of intestate succession. 

          7.16. Notice. Any notice or filing required or permitted to be given to
the Plan Administrator under the Plan shall be sufficient if in writing and hand
delivered, or sent by registered or certified mail, to CalAmp, 1401 N. Rice
Avenue, Oxnard, CA 93030, Attention CFO, or to such other person or entity as
the Plan Administrator may designate from time to time. Such notice shall be deemed given as of the date of delivery, or, if delivery is made by mail, as of the date shown on the postmark on the receipt for registration or certification. Any notice or filing required or permitted to be given to a Participant under this Plan shall be sufficient if in writing and hand-delivered, or sent by mail, to the last known address of the Participant.

18

IN WITNESS WHEREOF, CalAmp has caused this
latest version of the Plan to be executed by its officer thereunto duly
authorized, on this 1st day of July, 2014. 

	CalAmp Corp.
	 
	 
	By:  	/s/ Richard
      Vitelle
		Richard Vitelle
	 	Executive Vice President &
CFO

19

Appendix A 

Affiliates 

 

 

CalAmp Wireless Networks Corporation
(f/k/a Dataradio Corporation)

CalAmp Wireless Data Systems, Inc.
(f/k/a Wireless Matrix USA, Inc.)

CalAmp Radio Satellite Integrators, Inc.
(f/k/a Radio Satellite Integrators, Inc.)

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