Document:

Separation and General Release Agreement

 EXHIBIT 10.35 

 
 

 
 February 28, 2012 
 Frank Marazita 
 Dear Frank, 
 This letter sets forth the substance of your termination from Exar Corporation (the “Company”) as a result of a reduction-in-force with certain compensation and benefits described below

  

	 	1.	General 

 Effective with this
notification (the “Notification Date”) you are hereby informed that your employment as Sr. VP, Operations will be ending and your last day of work will be April 3, 2012, (the “Termination Date”). 

 

	 	2.	Compensation 

 Base Salary.
You will receive a total of 60 days of notice pay, inclusive of time worked after the Notification Date, 4 months of severance pay, and any accrued and unused vacation through your notice period.
All payments are subject to any applicable tax withholding. 
 Benefits. Exar Corporation will cover the cost of your
COBRA payments for your medical, dental, and vision coverage for 4 months following your Termination Date. In addition, we will continue your eligibility in the Employee Assistance Program through April 30,
2012. We invite you to take advantage of CONCERN’S counseling and referral services should the need arise. 

Stock Options. No stock options shall be accelerated, and any stock options or other stock awards that are vested as of your
Termination Date may be exercised in accordance with terms of the specific stock option grant. 
 Other Compensation or
Benefits. You acknowledge that, except as expressly provided in this Agreement, you will not receive from the Company any additional compensation (including, but not limited to salary or bonuses, severance, stock, stock options, or other
benefits) after the Termination Date. 
  

	 	3.	Expense Reimbursements 

 You
agree that, within ten (10) business days of the Termination Date, you will submit your final documented expense reimbursement statement reflecting all business expenses you incurred through the Termination Date, if any, for which you seek
reimbursement. The Company will reimburse you for these expenses pursuant to its regular business practice. Pursuant to its regular business practice, the Company will reimburse you for documented business expenses incurred during the employment
term, provided that these expenses have been pre-approved by your VP. 
  

	 	4.	Return of Company Property 

 On
your last day of work, you agree to return to the Company all Company documents (and all copies thereof) and other Company property that you have had in your possession at any time, including, but not limited to, Company files, notes, drawings,
records, business plans and forecasts, financial information, specifications, training materials, computer-recorded information, tangible property including, but not limited to, computers, credit cards, entry cards, identification badges and keys,
and any materials of any kind that contain or embody any proprietary or confidential information of the Company (and all reproductions thereof). 

	 	5.	Proprietary Information Obligations 

 You acknowledge your continuing obligations under your Proprietary Rights and Non-Disclosure Agreement attached hereto as Exhibit A. You agree not to use or disclose any confidential or proprietary
information of the Company without prior written authorization form a duly authorized representative of the Company. 
  

	 	6.	Non Solicitation 

 You agree that
for one (1) year following the Termination Date you will not, either directly or through others, (i) solicit or attempt to solicit any employee, consultant, or independent contractor of the Company in order to become an employee consultant or
independent contractor to or for any other person or entity, or (ii) use, either directly or indirectly, Company information to solicit business from any of the Company’s or any of its subsidiaries’ customers and users on behalf of any
business that directly competes with the Company or any of its subsidiaries. 
  

	 	7.	Confidentiality 

 The provisions
of this Agreement will be held in strictest confidence by you and the Company and will not be publicized or disclosed in any manner whatsoever; provided, however, that (a) you may disclose this Agreement to your immediate family; (b) the parties may
disclose this Agreement in confidence to their respective attorneys, accountants, auditors, tax preparers, and financial advisors; (c) the Company may disclose this Agreement as necessary to fulfill standard or legally required corporate reporting
or disclosure requirements; and (d) the parties may disclose this Agreement insofar as such disclosure may be necessary to enforce its terms or as otherwise required by law. In particular, and without limitation, you will not disclose the provisions
of this Agreement to any current or former Company employee or any other Company personnel. 
  

	 	8.	Release of Claims 

 In exchange
for the consideration under this Agreement to which you would not otherwise be entitled, you on behalf of yourself and your respective heirs, family members, executors and assigns hereby release, acquit and forever discharge the Company, and its
past, present and future officers, directors, agents, employees, attorneys, shareholder, investors, administrators, divisions, subsidiaries, parents, predecessor and successor corporations, assigns and affiliates, of and from, and agree not to sue
or otherwise institute or cause to be instituted any legal or administrative proceedings concerning any and all claims, liabilities, demands, causes of action, costs, expenses, attorneys’ fees, damages, indemnities and obligations of every kind
and nature, in law, equity or otherwise, known and unknown, suspected and unsuspected, disclosed and undisclosed, arising out of or in any way related to agreements, events, acts or conduct in any time prior to and including the execution date
hereof, including but not limited to: (i) any and all such claims and demands directly or indirectly arising out of or in any way connected with your employment with the Company or your transition to Special Advisor; (ii) claims or demands related
to salary, bonuses, commissions, stock, stock options, or any other ownership interests in the Company, vacation pay, fringe benefits, expense reimbursements, sabbatical benefits, severance benefits, or any other form of compensation; and (iii)
claims pursuant to any federal, state, local law, statute or cause of action including, but not limited to, the federal Civil Rights Act of 1964, as amended; the Civil Rights Act of 1991, as amended; the federal Age Discrimination in Employment Act
of 1967, as amended (“ADEA”); the federal Americans with Disabilities Act of 1990; the Fair Labor Standards Act, as amended; the Employee Retirement Income Security Act of 1974, as amended; the worker Adjustment and Retraining Notification
Act the California Fair Employment and Housing Act, as amended; Labor Code section 201, et seq. and section 970, et seq.; tort law; contract law; wrongful discharge; discrimination; fraud; defamation; harassment; emotional distress;
and breach of the implied covenant of good faith and fair dealing. 
  

	 	9.	Waiver 

 In granting the release
herein, you acknowledge that you understand that you have read and understand Section 1542 of the California Civil Code, which reads as follows: 

 “A general release does not extend to claims which the creditor does not know or
suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor.” 
 You hereby expressly waive and relinquish all rights and benefits under that section and any law of any jurisdiction of similar effect with respect to the release of unknown or unsuspected claims that you
may have against the Company. 
  

	 	10.	ADEA Waiver 

 You acknowledge
that you knowingly and voluntarily waive and release any rights you may have under the federal Age Discrimination in Employment Act of 1967, as amended. You further acknowledge that you have been advised by this writing, as required by the ADEA
that: (a) this waiver and release do not apply to any claims that may arise after the Termination Date of this Agreement; (b) you have the right to consult with an attorney prior to executing this Agreement; (c) you have twenty-one (21) days
within which to consider this Agreement (although you may choose to voluntarily execute this Agreement earlier); (d) you have seven (7) days following the execution to this Agreement to revoke the Agreement; (e) this Agreement shall not
be effective until the date upon which the revocation period has expired, which shall be the eighth day after this Agreement is executed by you, provided that EXAR has also signed the Agreement by that date (“Effective Date”). 

 

	 	11.	Non-Disparagement 

 You agree to
refrain from making any negative comments concerning the Company’s business, products or services, officers, employees and directors and to refrain from any, defamation, libel or slander of the Company and its respective officers, directors,
employees, investors, shareholders, administrators, affiliates, divisions, subsidiaries, predecessor and successor corporations, and assigns or tortuous interference with the contracts and relationships of the Company and its respective officers,
directors, employees, investors, shareholders, administrators, affiliates, divisions, subsidiaries, predecessor and successor corporations and assigns. 
  

	 	12.	No Pending or Future Lawsuits 

You represent that you have no lawsuits, claims or actions pending in your name, or on behalf of any other person or entity against the
Company or any other person or entity referred to herein. You also represent that you do not intend to bring any claims on your behalf or on behalf of any other person or entity against the Company or any other person or entity referred to herein.

  

	 	13.	No Admission of Liability 

 You
understand and acknowledge that this Agreement constitutes a compromise and settlement of disputed claims. No action taken by the Company, either previously or in connection with this Agreement shall be deemed or construed to be (i) an admission of
the truth or falsity of any claims heretofore made or (ii) an acknowledgement or admission by the Company of any fault or liability whatsoever to either you or to any third party. 

 

	 	14.	Arbitration and Equitable Relief 

  

	 	(a)	Except as provided in Section 14(d) below, you and the Company agree that to the extent permitted by law, any dispute or controversy arising out of, relating to, or in
connection with this Agreement, or the interpretations, validity, construction, performance, breach or termination thereof will be settled by arbitration to be held in the County of Santa Clara, California, in accordance with the National Rules for
the Resolution of Employment Disputes then in effect of the American Arbitration Association (the “Rules”). The arbitrator may grant injunctions or other relief in such dispute or controversy. The decision of the arbitrator will be final,
conclusive and binding on the parties to the arbitration. Judgment may be entered on the arbitrator’s decision in any court having jurisdiction. 

  

	 	(b)	The arbitrator will apply California law to the merits of any dispute or claim (with the exception of its conflict of law’s provisions). You hereby expressly
consent to the personal jurisdiction of the state and federal courts located in California for any action or proceeding arising from or relating to this Agreement and/or relating to any arbitration in which the parties are participants.

	 	(c)	The Company will pay the direct costs and expenses of the arbitration. The Company and you each will pay your own counsel fees and expenses. 

 

	 	(d)	The Company or you may apply to any court of competent jurisdiction for a temporary restraining order, preliminary injunction, or other interim or conservatory relief,
as necessary to enforce the provisions of this Agreement, without breach of this arbitration agreement and without abridgement of the powers of the arbitrator. 

 You have read and understand this section 14, which discusses arbitration. You understand that by signing this Agreement, you agree to the extent permitted by law, to submit any further claims arising out
of, relating to, or in connection with this agreement, or the interpretation, validity, construction, performance, breach, or termination thereof to binding arbitration, and that this arbitration to the resolution of all disputes relating to all
aspects of the employer/executive relationship, including but not limited to, the following claims: 
 Any and all claims for
wrongful discharge of employment; breach of contract, both express and implied; breach of the covenant of good faith and fair dealing, both express and implies; negligent or intentional infliction of emotional distress; intentional interference with
contract or prospective economic advantage; and defamation; any and all claims for violation of any federal state or municipal statute, including, but not limited to, the Americans with disabilities act of 1990, the fair labor standards act, and any
law of any state; and any and all claims arising out of any other laws and regulations relating to employment or employment discrimination. 
  

	 	15.	Cooperation with Company 

 After
the employment term, you will cooperate fully with the Company in connection with any and all existing or future litigation, arbitrations, mediations or investigations brought by or against the Company or any of its affiliates in which the Company
reasonably deems your cooperation necessary or desirable. You agree to provide advice, assistance and information, including offering and explaining evidence, providing sworn statements, participating in discovery and trial preparation and testimony
as may reasonably be deemed necessary or desirable by the Company relating to its position in any such legal proceedings. You will act in good faith to furnish the information and cooperation required by this Section 15 and the Company will act in
good faith so that the requirement to furnish such information and cooperation does not create and undue hardship for you. The Company will reimburse for your time based upon your hourly base compensation at your Termination Date and for your
reasonable out-of-pocket expenses incurred by you as a result of your cooperation, within ten (10) days of the presentation of appropriate documentation thereof, in accordance with the Company’s standard reimbursement policies and procedures.

  

	 	16.	Entire Agreement 

 This
Agreement, including Exhibit A, constitutes the complete, final and exclusive embodiment of the entire agreement between you and the Company with regard to the subject matter hereof. It supersedes any and all agreements entered into by and between
you and the Company with respect to your employment relationship with the Company. It is entered into without reliance on any promise or representation, written or oral, other than those expressly contained herein. It may not be modified except in a
writing signed by you and a duly authorized officer of the Company. Each party has carefully read this Agreement, has been afforded the opportunity to be advised of its meaning and consequences by his or its perspective attorneys, and signed the
same of his or its own free will. 
  

	 	17.	No Representations 

 You
represent that you have had the opportunity to consult with an attorney, and have carefully read and understood the scope and effect of the provisions of this Agreement. Neither party has relied upon any representations or statements made by the
other party hereto which are not specifically set forth in this Agreement. 
  

	 	18.	No Oral Modification 

 This
Agreement may only be amended in writing signed by you and the Vice President, Human Resources. 

	 	19.	Successors and Assigns 

 This
Agreement will bind the heirs, personal representatives, successors and assigns of each party, and will inure to the benefit of each party, its heirs, personal representatives, successors and assigns. 

 

	 	20.	Applicable Law 

 This Agreement
will be deemed to have been entered into and will be construed and enforced in accordance with the laws of the State of California as applied to contracts made and to be performed entirely within California. 

If this Agreement is acceptable to you, please sign below and on Exhibit B and return the originals of both to me. 

Sincerely, 
 Exar Corporation 

 

			
	 By:
	 	     /s/ Diane
Hill

			
	 Name:
	 	     Diane
Hill

			
	 Title:
	 	     VP, Human Resources

 UNDERSTOOD AND AGREED: 
  

	
	 /s/ Frank Marazita

	 Frank Marazita

  

			
	 Date:
	 	     March 26, 2012

			
	

	  	Exhibit B

  

			
	 DATE:
	  	April 3, 2012
		
	 TO:
	  	Frank Marazita
		
	 FROM:
	  	Human Resources
		
	 SUBJECT:
	  	TRADE SECRET ACKNOWLEDGMENT

 During the course of your employment with Exar Corporation, you have had access to and/or acquired knowledge of
Exar trade secrets and proprietary information, including, but not limited to, the information specified below: 
  

	 	•	 	 Exar organization charts and contact information (internal/customer). 

 

	 	•	 	 Financial/operational data including forecasts, profit margins and pricing information. 

 

	 	•	 	 Exar business, research and new product plans, objectives and strategies, technology roadmaps. 

 

	 	•	 	 Detail of Exar’s channels including strategies for reps and distributors. 

 

	 	•	 	 Patent applications and patent disclosures. 

  

	 	•	 	 Yield, designs, efficiencies and capabilities of production methods, facilities and systems. 

 

	 	•	 	 Exar customer data worldwide including: revenue levels, forecasts, program and design win information, organization charts.

  

	 	•	 	 Marketing information. 

  

	 	•	 	 Process information. 

  

	 	•	 	 Agreements with customers, vendors or companies. 

  

	 	•	 	 Product designs and specifications. 

  

	 	•	 	 Passwords (user/super user) and any other features necessary to gain access to Exar’s networks and computer systems. 

 

	 	•	 	 Various computer programs (scripts, software) which you have developed, modified or supported while at Exar. 

Please acknowledge that you have been advised and are aware of your obligation concerning Exar trade secrets and proprietary information, particularly
those identified above, to which you have had access during your employment, and your agreement to comply with your Proprietary Information and Inventions Agreement concerning your use and disclosure of Company trade secret information, by signing
your name in the space provided below. Your signature will also certify that you do not have in your possession, and have not failed to return any specifications, drawings, blueprints, reproductions, notes, software, hardware, keys, badges, or any
other materials that may be considered proprietary or confidential, and will not use any such proprietary or confidential information in connection with any activity unrelated to Exar’s business affairs. 

I certify that all Company property in my possession has been returned. 
  

					
	  
	 		 	  

	 Signature
	 		 	DateEX-10.1

 Exhibit 10.1 
 NON-INVASIVE MONITORING SYSTEMS, INC. 
 2011 EQUITY INCENTIVE PLAN

 1. DEFINITIONS 
 The
following terms shall have the following meanings unless the context indicates otherwise: 
 1.1.
“Affiliate” and “Associate” shall have the respective meanings given to such terms under Rule 12b-2 under the Exchange Act. 

1.2. “Award” shall mean either a Stock Option, an SAR, a Stock Award, a Stock Unit, a Performance Share, a
Performance Unit, or a Cash Award. 
 1.3. “Award Agreement” shall mean a written agreement between the
Company and the Participant that establishes the terms, conditions, restrictions and/or limitations applicable to an Award in addition to those established by the Plan and by the Committee’s exercise of its administrative powers. 

1.4. “Beneficial Owner” shall have the meaning given to such term under Rule 13d-3 under the Exchange Act.

 1.5. “Board” shall mean the Board of Directors of the Company. 

1.6. “Cash Award” shall mean the grant by the Committee to a Participant of an award of cash as described in
Section 11 below. 
 1.7. “Cause” shall mean (i) willful malfeasance or willful misconduct by
the Employee in connection with his/her employment, (ii) continuing failure to perform such duties as are requested by the Company and/or its subsidiaries, (iii) failure by the Employee to observe material policies of the Company and/or
its subsidiaries applicable to the Employee, (iv) material breach of any agreement with or duty owed to the Company and/or its subsidiaries applicable to the Employee, or (v) the commission by the Employee of (x) any felony or
(y) any misdemeanor involving moral turpitude. 
 1.8. “Change in Control of the Company” or
“Change in Control” shall mean the occurrence of any of the following events: 
 (a) any Person, as
such term is used for purposes of Section 13(d) or 14(d) of the Exchange Act, or any successor section thereto, other than (i) the Company, (ii) any trustee or other fiduciary holding securities under an employee benefit plan of the
Company, (iii) any Subsidiaries of the Company, (iv) any company owned, directly or indirectly, by the shareholders of the Company in substantially the same proportions as their ownership of stock of the Company, or (v) the Frost
Group, LLC or any of its Affiliates becomes, either alone or together with such Person’s Affiliates and Associates, the Beneficial Owner, directly or indirectly, of securities of the Company representing 50% or more of the combined voting power
of the Company’s then-outstanding securities. 

 (b) during any period of twenty-four months, individuals who at the beginning of such
period constitute the Board, and any new directors whose election by the Board or nomination for election by the Company’s shareholders was approved by a vote of at least two-thirds of the directors then still in office who either were
directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute at least a majority thereof; 

(c) the effective date or date of consummation of any transaction or series of transactions (other than a transaction to which only
the Company and one or more of its subsidiaries are parties) under which the Company is merged or consolidated with any other company, other than a merger or consolidation which would result in the voting securities of the Company outstanding
immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) 50% or more of the combined voting power of the voting securities of the Company or such
surviving entity outstanding immediately after such merger or consolidation; or 
 (d) the shareholders of the Company
approve a plan of complete liquidation of the Company or an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets. 
 1.9. “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time. 
 1.10. “Committee” shall mean the Board’s Compensation Committee or any other committee of the Board appointed to administer this Plan. 

1.11. “Common Stock” shall mean the common stock of the Company. 

1.12. “Company” shall mean Non-Invasive Monitoring Systems, Inc., a Florida Corporation. 

1.13. “Disability” shall mean the inability to engage in any substantial gainful activity by reason of a
medically determinable physical or mental impairment which constitutes a permanent and total disability, as defined in Section 22(e) (3) of the Code (or any successor section thereto) and has applied for and been granted Long Term
Disability under the Company’s Long Term Disability Plan. The determination whether a Participant has suffered a Disability shall be made by the Committee, in its sole discretion, based upon such evidence as it deems necessary and appropriate,
and shall be conclusive and binding on the Participant. A Participant shall not be considered disabled unless he or she furnishes such medical or other evidence of the existence of the Disability as the Committee, in its sole discretion, may
require. 

  
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 1.14. “Dividend Equivalent Right” shall mean the right to receive an
amount equal to the amount of any dividend paid with respect to a share of Common Stock multiplied by the number of shares of Common Stock underlying or with respect to a Stock Option, a SAR, a Stock Unit or a Performance Unit, and which shall be
payable in cash, in Common Stock, in the form of Stock Units or Performance Units, or a combination of any or all of the foregoing. 
 1.15. “Effective Date” shall mean the date on which the Board adopts the Plan. 
 1.16. “Employee” shall mean an employee of the Company or any Subsidiary as described in Treasury Regulation Section 1.421-7(h). 

1.17. “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to time, including
applicable regulations thereunder. 
 1.18. “Fair Market Value” shall, unless otherwise required by any
applicable provision of the Code or any Treasury Regulations, mean: 
 (a) if a security is listed or trading on a national
securities exchange or other market system, the closing price of such security on the date of calculation (or on the last preceding trading date if such security was not traded on such date), or 

(b) if such security is not listed or trading on a national securities exchange or other market system, as determined in good faith
by the Board or the Committee. 
 1.19. “Family Members” shall mean a Participant’s spouse,
parents, children, and siblings, whether by blood, marriage or adoption. 
 1.20. “Independent
Contractor” shall mean a Person (other than a Person who is an Employee or a Nonemployee Director) or an entity that renders services to the Company or any Subsidiary. 

1.21. “ISO” shall mean an “incentive stock option” as such term is used in Code Section 422.

 1.22. “Nonemployee Director” shall mean a member of the Board or the board of directors of a
Subsidiary who is not an Employee. 
 1.23. “Nonqualified Stock Option” shall mean a Stock Option that
is not an ISO. 
 1.24. “Participant” shall mean any Employee, Nonemployee Director or Independent
Contractor to whom an Award has been granted by the Committee under the Plan. 
 1.25. “Performance-Based
Award” shall mean an Award subject to the achievement of certain performance goal or goals as described in Section 12 below. 

  
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 1.26. “Performance Share” shall mean the grant by the Committee to a
Participant of an Award as described in Section 10.1 below. 
 1.27. “Performance Unit” shall mean
the grant by the Committee to a Participant of an Award as described in Section 10.2 below. 
 1.28.
“Person” shall mean any person, entity or “group” (within the meaning of Section 13(d)(3) or Section 14(d)(2) of the Exchange Act). 
 1.29. “Plan” shall mean the Non-Invasive Monitoring Systems, Inc. 2011 Equity Incentive Plan, as it may be amended from time to time. 

1.30. “Retirement” shall mean the termination of the employment, other than for Cause or due to death or
Disability, of a Participant who; (i) has reached the age of 65; (ii) has reached the age of 62 and has completed 5 years of service with the Company; or (iii) has reached the age of 60 and has completed 10 years of service
with the Company. 
 1.31. “SAR” shall mean the grant by the Committee to a Participant of a stock
appreciation right as described in Section 8 below. 
 1.32. “Stock Award” shall mean the grant by
the Committee to a Participant of an Award of Common Stock as described in Section 9.1 below. 
 1.33. “Stock
Option” shall mean the grant by the Committee to a Participant of an option to purchase Common Stock as described in Section 7 below. 
 1.34. “Stock Unit” shall mean the grant by the Committee to a Participant of an Award as described in Section 9.2 below. 

1.35. “Subsidiary” shall mean a corporation of which the Company is the Beneficial Owner, directly or indirectly,
of more than 50% of the Voting Stock or any other business entity in which the Company is the Beneficial Owner, directly or indirectly, of more than 50% or any other business venture designated by the Committee in which the Company has a significant
interest, as determined in the discretion of the Committee. 
 1.36. “Treasury Regulations” shall mean
the regulations promulgated under the Code by the United States Department of the Treasury, as amended from time to time. 

1.37. “Vest” shall mean: 
 (a) with respect to Stock Options and SARs, when the Stock Option or SAR (or a portion of such Stock Option or SAR) first becomes exercisable and remains exercisable subject to the terms and
conditions of such Stock Option or SAR; or 

  
 4 

 (b) with respect to Awards other than Stock Options and SARs, when the Participant has:

 (i) an unrestricted right to receive the compensation (whether payable in Common Stock, cash or a combination of both)
attributable to such Award (or a portion of such Award) or to otherwise enjoy the benefits underlying such Award; and 

(ii) a right to transfer an Award subject to no Company-imposed restrictions or limitations other than restrictions and/or
limitations imposed by Section 14 below 
 1.38. “Vesting Date” shall mean the date or dates on
which an Award Vests. 
 1.39. “Voting Stock” shall mean the capital stock of any class or classes
having general voting power under ordinary circumstances, in the absence of contingencies, to elect the directors of a corporation. 
 2.
PURPOSE AND TERM OF PLAN 
 2.1. Purpose. The purpose of the Plan is to motivate certain Employees, Nonemployee
Directors and Independent Contractors to put forth maximum efforts toward the growth, profitability, and success of the Company and Subsidiaries by providing incentives to such Employees, Nonemployee Directors and Independent Contractors either
through cash payments and/or through the ownership and performance of the Common Stock. In addition, the Plan is intended to provide incentives which will help the Company attract and retain highly qualified individuals as Employees and Nonemployee
Directors and to assist in aligning the interests of such Employees and Nonemployee Directors with those of its shareholders. 

2.2. Term. The Plan shall be effective as of the Effective Date; provided, however, that the Plan shall be approved by the
shareholders of the Company at an annual meeting or any special meeting of shareholders of the Company within 12 months before or after the Effective Date, and such approval by the shareholders of the Company shall be a condition to the right
of each Participant to receive Awards hereunder. Any Award granted under the Plan prior to the approval by the shareholders of the Company shall be effective as of the date of grant (unless the Committee specifies otherwise at the time of grant),
but no such Award may Vest, be paid out, or otherwise be disposed of prior to such shareholder approval. If the shareholders of the Company fail to approve the Plan in accordance with this Section 2.2, any Award granted under the Plan shall be
automatically cancelled without payment of any consideration to the recipient of such Award. The Plan shall remain in effect for ten years or until earlier terminated by the Board and no Award may be granted under the Plan on a date that is more
than ten years from the Effective Date; provided, however, that in the event of Plan termination or expiration, the provisions of the Plan shall remain in effect as to any Awards which remain outstanding until all such Awards have been satisfied or
are terminated under the terms of this Plan or under the applicable Award Agreement. 

  
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 3. ELIGIBILITY AND PARTICIPATION 

3.1. Eligibility. All Employees, all Nonemployee Directors and all Independent Contractors shall be eligible to participate in the
Plan and to receive Awards. An individual’s status as a member of the Committee will not affect his eligibility to participate in the Plan. 
 3.2. Participation. Participants shall consist of such Employees, Nonemployee Directors and Independent Contractors as the Committee in its sole discretion designates to receive Awards under the
Plan. Subject to Section 7.1, an Award may also be granted to an Employee, in connection with hiring, retention or otherwise prior to the date the Employee first performs services for the Company or any Subsidiary, provided that such Awards
shall not become Vested prior to the date the Employee first performs such services. Designation of a Participant in any year shall not require the Committee to designate such Person to receive an Award in any other year or, once designated, to
receive the same type or amount of Award as granted to the Participant in any other year. The Committee shall consider such factors as it deems pertinent in selecting Participants and in determining the type and amount of their respective Awards.

 4. ADMINISTRATION 
 4.1. Responsibility. The Committee shall have the responsibility, in its sole discretion, to control, operate, manage and administer the Plan in accordance with its terms; provided, however, that
the Board may in any instance perform any of the functions of the Committee hereunder. 
 4.2. Award Agreement. Each
Award granted under the Plan shall be evidenced by an Award Agreement which shall be signed by the Company and the Participant; provided, however, that in the event of any conflict between a provision of the Plan and any provision of an Award
Agreement, the provision of the Plan shall prevail. 
 4.3. Authority of the Committee. The Committee shall have all the
discretionary authority that may be necessary or helpful to enable it to discharge its responsibilities with respect to the Plan, including but not limited to the following: 
 (a) to determine eligibility for participation in the Plan and to select Participants; 
 (b) to determine eligibility for and the type and size of an Award granted under the Plan; 
 (c) to make Awards in accordance with the terms of the Plan and to determine the terms and conditions of each Award; 

  
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 (d) to supply any omission, correct any defect, or reconcile any inconsistency in the
Plan in such manner and to such extent as it shall deem appropriate in its sole discretion to carry the same into effect; 

(e) to issue administrative guidelines as an aid to administer the Plan and make changes in such guidelines as it from time to time
deems proper; 
 (f) to make rules for carrying out and administering the Plan and make changes in such rules as it from
time to time deems proper; 
 (g) to the extent permitted under the Plan, grant waivers of Plan terms, conditions,
restrictions, and limitations and to vary the terms of Awards 
 (h) to take account of tax, securities law and other
regulatory requirements of foreign jurisdictions; 
 (i) to accelerate the Vesting of any Award when such action or actions
would be in the best interest of the Company; 
 (j) to grant Awards in replacement of Awards previously granted under this
Plan or any other executive compensation plan of the Company; and 
 (k) to take any and all other actions it deems
necessary or advisable for the proper operation or administration of the Plan. 
 4.4. Action by the Committee. The
Committee may act only by a majority of its members. Any determination of the Committee may be made, without a meeting, by a writing or writings signed by all of the members of the Committee. In addition, the Committee may authorize any one or more
of its members or, subject to Section 4.5 below, one or more agents to execute and deliver documents on behalf of the Committee. 
 4.5. Delegation of Authority. To the extent permitted by applicable law, the Committee may delegate to one or more of its members, or to one or more officers of the Company, such administrative
duties as it may deem advisable; provided, however, that any such delegation shall be in writing and, provided, further, that the Committee may not delegate its authority (a) to make Awards to Participants or (b) under Sections 4.3
(a), (b), (c), (d), (e), (f), (g), (h), (i) or (j) or Section 16 of the Plan. Any action undertaken by any such member or agent in accordance with the Committee’s delegation of authority shall have the same force and effect as if
undertaken directly by the Committee, and any reference in the Plan to the Committee shall, to the extent consistent with the terms and limitations of such delegation, be deemed to include a reference to such members or agents. In addition, the
Committee, or any Person to whom it has delegated duties under this Section 4.5, may employ one or more Persons to render advice with respect to any responsibility the Committee or such Person may have under the Plan. The Committee may employ
such legal or other counsel, consultants and agents as it may deem desirable for the administration of the Plan. Expenses incurred by the Committee in the engagement of such counsel, consultant or agent shall be paid by the Company, or the
Subsidiary whose employees have benefited from the Plan, as determined by the Committee. In the performance of its functions, the Committee shall be entitled to rely upon information, opinions, computations and advice furnished by the Company’s
officers, any counsel, consultant or agent retained by the Committee, and any other party the Committee deems necessary, and no member of the Committee shall be liable for any action taken or not taken in reliance upon any such advice. 

  
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 4.6. Determinations and Interpretations by the Committee. All determinations and
interpretations made by the Committee shall be binding and conclusive on all Participants and their heirs, successors, and legal representatives. 
 4.7. Liability. No member of the Board, no member of the Committee and no Employee shall be liable for any act or failure to act hereunder, except in circumstances involving his or her willful
misconduct, or for any act or failure to act hereunder by any other member or Employee or by any agent to whom duties in connection with the administration of the Plan have been delegated. 

4.8. Indemnification. The Company shall indemnify members of the Board, members of the Committee and any agent of the Committee
who is an Employee, against any and all liabilities or expenses to which they may be subjected (including, without limitation, the reasonable fees and expenses of counsel) by reason of any act or failure to act with respect to their duties on behalf
of the Plan, except in circumstances involving such Person’s willful misconduct. 
 5. SHARES SUBJECT TO PLAN 

5.1. Available Shares. Subject to the provisions of Section 5.2 below, the aggregate number of shares of Common Stock which
shall be available for grants or payments of Awards under the Plan during its term shall be 4,000,000 shares (the “Total Plan Shares”). In the event that (i) an Award (or portion thereof) lapses, expires or is
otherwise terminated without the issuance of the shares subject to such Award or is settled by the delivery of consideration other than shares, (ii) shares are tendered to pay the exercise price of a Stock Option or other Award or
(iii) shares are withheld from any award to satisfy a Participant’s tax withholding obligations or, if applicable, to pay the exercise price of a Stock Option or other Award, such shares shall again become available for grants or Awards
hereunder. Such shares of Common Stock available for issuance under the Plan may be either authorized but unissued shares, shares of issued stock held in the Company’s treasury, or both, at the discretion of the Company. Awards that are payable
only in cash are not subject to this Section 5.1. 

  
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 5.2. Adjustment to Shares. The existence of the Plan, the Award Agreements and the
Awards granted hereunder shall not affect or restrict in any way the right or power of the Company or the shareholders of the Company to make or authorize any adjustment, recapitalization, reorganization or other change in the Company’s capital
structure or its business, any merger or consolidation of the Company, any issue of stock or of options, warrants or rights to purchase stock or of bonds, debentures, preferred or prior preference stocks whose rights are superior to or affect the
Common Stock or the rights thereof or which are convertible into or exchangeable for Common Stock, or the dissolution or liquidation of the Company, or any sale or transfer of all or any part of its assets or business, or any other corporate act or
proceeding, whether of a similar character or otherwise. If there is any change in the Common Stock of the Company, through merger, consolidation, reorganization, recapitalization, stock dividend, stock split, reverse stock split, split-up,
split-off, spin-off, combination of shares, exchange of shares, dividend in kind or other like change in capital structure or distribution to shareholders of the Company in the nature of a liquidating distribution or a distribution pursuant to a
plan of dissolution, the Committee may, in its discretion, make a proportionate adjustment to each outstanding Award that the Committee considers appropriate so that thereafter each such Award shall be with respect to or exercisable for such
securities, cash and/or other property as would have been received in respect of the Common Stock subject to such Award had such Award been paid, distributed or exercised in full immediately prior to such change or distribution. In addition, in the
event of any such change or distribution, in order to prevent dilution or enlargement of Participants’ rights under the Plan, the Committee shall have the authority to adjust, in an equitable manner as it deems appropriate, the number and kind
of shares that may be received in respect of any Award, the number and kind of shares subject to outstanding Awards, the exercise price applicable to outstanding Stock Options, and the Fair Market Value of the Common Stock and other value
determinations applicable to outstanding Awards. Appropriate adjustments may also be made by the Committee in the terms of any Awards granted under the Plan to reflect such changes or distributions and to modify any other terms of outstanding Awards
on an equitable basis, including modifications of performance goals and changes in the length of performance periods; provided, however, that with respect to Performance-Based Awards, such modifications and/or changes do not disqualify compensation
attributable to such Awards as “performance-based compensation” under Code Section 162(m). In addition, the Committee is authorized to make adjustments to the terms and conditions of, and the criteria included in, Awards in
recognition of unusual or nonrecurring events affecting the Company or the financial statements of the Company, or in response to changes in applicable laws, regulations, or accounting principles. The Committee’s determination of what, if any,
adjustments shall be made shall be final and binding on the Company and all Participants. 
 5.3. No Repricing . Absent
shareholder approval, neither the Committee nor the Board shall have the authority, with or without the consent of the affected holders of the Awards, to “reprice” an Award after the date of its initial grant with a lower exercise price in
substitution for the original exercise price. Adjustments in accordance with Section 5.2 above shall not be deemed “repricings” for purposes of this Section 5.3. This Section 5.3 may not be amended, altered or repealed by
the Committee or the Board without the approval of the shareholders of the Company. 

  
 9 

 6. MAXIMUM INDIVIDUAL AWARDS 
 6.1. Maximum Aggregate Number of Shares Underlying Stock-Based Awards Granted Under the Plan to Any Single Participant. The maximum aggregate number of shares of Common Stock underlying all
Awards measured in shares of Common Stock (whether payable in Common Stock, cash or a combination of both) that may be granted to any single Participant in respect of any fiscal year of the Company shall be 1,000,000 shares, subject to
adjustment as provided in Section 5.2 above. 
 6.2. Maximum Dollar Amount Underlying Cash-Based Awards Granted Under
the Plan to Any Single Participant. The maximum dollar amount that may be paid to any single Participant with respect to all Awards measured in cash (whether payable in Common Stock, cash or a combination of both) in respect of any fiscal year
of the Company shall be $1,000,000. 
 7. STOCK OPTIONS 
 7.1. In General. The Committee may, in its sole discretion, grant Stock Options to Employees, Nonemployee Directors and Independent Contractors on or after the Effective Date, subject, in all cases
to Section 2.2 of the Plan. The Committee shall, in its sole discretion, determine the Employees, the Nonemployee Directors and Independent Contractors who will receive Stock Options and the number of shares of Common Stock underlying each
Stock Option. Each Stock Option shall be subject to such terms and conditions consistent with the Plan set forth in the applicable Award Agreement and such other terms and conditions consistent with the Plan and the applicable Award Agreement as the
Committee may impose from time to time. In addition, each Stock Option shall be subject to the following terms and conditions set forth in Sections 7.2 through 7.8 below. 
 7.2. Exercise Price. The Committee shall specify the exercise price of each Stock Option in the Award Agreement; provided, however, that the exercise price of any Nonqualified Stock Option shall
not be less than 100% of the Fair Market Value of the Common Stock on the date of grant. 
 7.3. Term of Stock Option.
The Committee shall specify the term of each Stock Option in the Award Agreement shall terminate as set forth in Section 14 below or at such earlier times and upon such conditions or circumstances as the Committee shall, in its sole discretion,
set forth in the Award Agreement. 
 7.4. Vesting Date. The Committee shall specify the Vesting Date with respect to each
Stock Option in the Award Agreement; provided, that the Committee may provide in the applicable Award Agreement that any Stock Option shall Vest in such portions or installments as the Committee may, in its sole discretion, determine. The Committee
may grant Stock Options that are Vested, either in whole or in part, on the date of grant. If the Committee fails to specify a Vesting Date in the Award Agreement, 25% of such Stock Option shall become exercisable on each of the first four
anniversaries of the date of grant and shall remain exercisable following such anniversary date until the Stock Option expires in accordance with its terms under the Award Agreement or under the terms of the Plan. The Vesting of a Stock Option may
be subject to such other terms and conditions as shall be determined by the Committee, including, without limitation, accelerating the Vesting if certain performance goals are achieved. 

  
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 7.5. Exercise of Stock Options. The Stock Option exercise price may be paid in cash
or, in the sole discretion of the Committee, by the delivery of shares of Common Stock or other securities of the Company then owned by the Participant, by the withholding of shares of Common Stock for which a Stock Option is exercisable, or by a
combination of these methods. In the sole discretion of the Committee, and subject to all applicable laws, rules and regulations, payment may also be made by delivering a properly executed exercise notice to the Company together with a copy of
irrevocable instructions to a broker to deliver promptly to the Company the amount of sale proceeds to pay the exercise price. To facilitate the foregoing, the Company may enter into agreements for coordinated procedures with one or more brokerage
firms. The Committee may prescribe any other method of paying the exercise price that it determines to be consistent with applicable law and the purpose of the Plan, including, without limitation, in lieu of the exercise of a Stock Option by
delivery of shares of Common Stock then owned by a Participant, providing the Company with a notarized statement attesting to the number of shares owned by the Participant, where upon verification by the Company, the Company would issue to the
Participant only the number of incremental shares to which the Participant is entitled upon exercise of the Stock Option. In determining which methods a Participant may utilize to pay the exercise price, the Committee may consider such factors as it
determines are appropriate; provided, however, that any method approved by the Committee shall comply with applicable securities laws. When payment of the exercise price for a Stock Option consists of shares of the Company’s capital stock or
other securities of the Company, such securities will not be accepted as payment unless the Participant has held such shares for the requisite period necessary to avoid a charge to the Company’s earnings for financial reporting purposes.

 7.6. Additional Terms and Conditions. The Committee may, by way of the Award Agreements or otherwise, establish such
other terms, conditions, restrictions and/or limitations, if any, of any Stock Option, as they may determine in their sole discretion; provided, they are not inconsistent with the Plan, including, without limitation, any requirement that the
Participant not engage in competition with the Company or any Subsidiary. 
 7.7. Conversion Stock Options. The Committee
may, in its sole discretion and upon such terms and conditions as it deems appropriate, grant a Stock Option to any holder of an option (hereinafter referred to as an “Original Option”) to purchase shares of the stock of any corporation:

 (a) the stock or all or substantially all of the assets of which were acquired, directly or indirectly, by the Company
or any Subsidiary, or 

  
 11 

 (b) which was merged with and into the Company or a Subsidiary, so that the Original
Option is converted into a Stock Option (hereinafter referred to as a “Conversion Stock Option”); provided, however, that such Conversion Stock Option as of the date of its grant (the “Conversion Stock Option Grant
Date”) shall have substantially the same economic value as the Original Option as of the Conversion Stock Option Grant Date. 

8. STOCK APPRECIATION RIGHTS 
 8.1. In General. The Committee may, in its sole discretion, grant SARs to Employees, Nonemployee Directors, and/or Independent Contractors. An SAR is a right to receive a payment in cash, Common
Stock or a combination of both, in an amount equal to the excess of (x) the Fair Market Value of the Common Stock, or other specified valuation, of a specified number of shares of Common Stock on the date the SAR is exercised over (y) the
Fair Market Value of the Common Stock, or other specified valuation (which shall be no less than the Fair Market Value of the Common Stock), of such shares of Common Stock on the date the SAR is granted, all as determined by the Committee. If a SAR
is granted retroactively in tandem with or in substitution for a Stock Option, the designated Fair Market Value of the Common Stock in the Award Agreement shall be the Fair Market Value of the Common Stock on the date such Stock Option was granted,
the SAR shall cover the same number of shares of Common Stock as covered by the Stock Option (or such lesser number of shares as the Committee may determine) and the SAR shall be exercisable only at such time or times and to the extent the related
Stock Option shall be exercisable, and shall have the same term and exercise price as the related Stock Option. Upon exercise of a Stock Appreciation Right granted in tandem with a Stock Option, the related Stock Option shall be cancelled
automatically to the extent of the number of shares covered by such exercise; conversely, if the related Stock Option is exercised as to some or all of the shares covered by the tandem grant, the tandem Stock Appreciation Right shall be cancelled
automatically to the extent of the number of shares covered by the Stock Option exercised. Each SAR shall be subject to such terms and conditions, including, but not limited to, a provision that automatically converts a SAR into a Stock Option on a
conversion date specified at the time of grant, as the Committee shall impose from time to time in its sole discretion and subject to the terms of the Plan. 
 9. STOCK AWARDS AND STOCK UNITS 
 9.1. Stock Awards. The Committee
may, in its sole discretion, grant Stock Awards to Employees, Nonemployee Directors, and/or Independent Contractors as additional compensation or in lieu of other compensation for services to the Company. A Stock Award shall consist of shares of
Common Stock which shall be subject to such terms and conditions as the Committee in its sole discretion determines appropriate, including, without limitation, restrictions on the sale or other disposition of such shares, the Vesting Date with
respect to such shares, and the right of the Company to reacquire such shares for no consideration upon termination of the Participant’s employment within specified periods. With respect to the shares of Common Stock subject to a Stock Award,
the Participant shall have all of the rights of a holder of shares of Common Stock, including the right to receive dividends and to vote the shares, unless the Committee determines otherwise on the date of grant. The Committee may require the
Participant to deliver a duly signed stock power, endorsed in blank, relating to the Common Stock covered by such Stock Award. As a condition to any Stock Award, the Participant may be required to deliver to the Company a share power, endorsed in
blank, relating to the Shares covered by such Award. Any share certificate issued in connection with a Stock Award may be held in the custody of the Company and will bear the following legend and/or any other legend required by this Plan, the
applicable Award Agreement or applicable law: 

  
 12 

 THE TRANSFERABILITY OF THIS CERTIFICATE AND THE SHARES REPRESENTED HEREBY ARE SUBJECT TO THE TERMS AND
CONDITIONS OF THE NON-INVASIVE MONITORING SYSTEMS, INC. 2011 EQUITY INCENTIVE PLAN AND AN AGREEMENT ENTERED INTO BETWEEN THE PARTICIPANT AND NON-INVASIVE MONITORING SYSTEMS, INC. (WHICH TERMS AND CONDITIONS MAY INCLUDE, WITHOUT LIMITATION, CERTAIN
TRANSFER RESTRICTIONS AND FORFEITURE CONDITIONS). COPIES OF THAT PLAN AND AGREEMENT ARE ON FILE IN THE PRINCIPAL OFFICES OF NON-INVASIVE MONITORING SYSTEMS, INC. AND WILL BE MADE AVAILABLE TO THE HOLDER OF THIS CERTIFICATE WITHOUT CHARGE UPON
REQUEST TO THE SECRETARY OF NON-INVASIVE MONITORING SYSTEMS, INC. 
 9.2. Stock Units. The Committee may, in its sole
discretion, grant Stock Units to Employees, Nonemployee Directors, and/or Independent Contractors as additional compensation or in lieu of other compensation for services to the Company. A Stock Unit is a hypothetical share of Common Stock
represented by a notional account established and maintained (or caused to be established or maintained) by the Company for such Participant who receives a grant of Stock Units. Stock Units shall be subject to such terms and conditions as the
Committee, in its sole discretion, determines appropriate including, without limitation, determinations of the Vesting Date with respect to such Stock Units and the criteria for the Vesting of such Stock Units. A Stock Unit granted by the Committee
shall provide for payment in shares of Common Stock at such time or times as the Award Agreement shall specify. The Committee shall determine whether a Participant who has been granted a Stock Unit shall also be entitled to a Dividend Equivalent
Right. 
 9.3. Payout of Stock Units. Subject to a Participant’s election to defer in accordance with
Section 17.3 below, upon the Vesting of a Stock Unit, the shares of Common Stock representing the Stock Unit shall be distributed to the Participant, unless the Committee, in its sole discretion, provides for the payment of the Stock Unit in
cash (or partly in cash and partly in shares of Common Stock) equal to the value of the shares of Common Stock which would otherwise be distributed to the Participant. 

  
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 10. PERFORMANCE SHARES AND PERFORMANCE UNITS 

10.1. Performance Shares. The Committee may, in its sole discretion, grant Performance Shares to Employees, Nonemployee Directors,
and/or Independent Contractors as additional compensation or in lieu of other compensation for services to the Company. A Performance Share shall consist of a share or shares of Common Stock which shall be subject to such terms and conditions as the
Committee, in its sole discretion, determines appropriate, including, without limitation, determining the performance goal or goals which, depending on the extent to which such goals are met, will determine the number and/or value of the Performance
Shares that will be paid out or distributed to the Participant who has been granted Performance Shares. Performance goals may be based on, without limitation, Company-wide, divisional and/or individual performance, as the Committee, in its sole
discretion, may determine, and may be based on the performance measures listed in Section 12.3 below. With respect to the Performance Shares, the Participant shall have none of the rights of a holder of shares of Common Stock, including the
right to receive dividends and to vote the shares, unless and until such Performance Shares shall have been Vested and distributed to the Participant. 
 10.2. Performance Units. The Committee may, in its sole discretion, grant Performance Units to Employees, Nonemployee Directors, and/or Independent Contractors as additional compensation or in lieu
of other compensation for services to the Company. A Performance Unit is a hypothetical share or shares of Common Stock represented by a notional account which shall be established and maintained (or caused to be established or maintained) by the
Company for such Participant who receives a grant of Performance Units. Performance Units shall be subject to such terms and conditions as the Committee, in its sole discretion, determines appropriate, including, without limitation, determining the
performance goal or goals which, depending on the extent to which such goals are met, will determine the number and/or value of the Performance Units that will be accrued with respect to the Participant who has been granted Performance Units.
Performance goals may be based on, without limitation, Company-wide, divisional and/or individual performance, as the Committee, in its sole discretion, may determine, and may be based on the performance measures listed in Section 12.3 below.

 10.3. Payout of Performance Shares or Performance Units. Subject to a Participant’s election to defer in
accordance with Section 17.3 below, upon the Vesting of a Performance Share or a Performance Unit, the shares of Common Stock representing the Performance Share or the Performance Unit shall be distributed to the Participant, unless the
Committee, in its sole discretion, provides for the payment of the Performance Share or a Performance Unit in cash (or partly in cash and partly in shares of Common Stock) equal to the value of the shares of Common Stock which would otherwise be
distributed to the Participant. 

  
 14 

 11. CASH AWARDS 
 11.1. In General. The Committee may, in its sole discretion, grant Cash Awards to Employees, Nonemployee Directors, and/or Independent Contractors as additional compensation or in lieu of other
compensation for services to the Company. A Cash Award shall be subject to such terms and conditions as the Committee, in its sole discretion, determines appropriate, including, without limitation, determining the Vesting Date with respect to such
Cash Award, the criteria for the Vesting of such Cash Award, and the right of the Company to require the Participant to repay the Cash Award (with or without interest) upon termination of the Participant’s employment within specified periods.

 12. PERFORMANCE-BASED AWARDS 
 12.1. In General. The Committee, in its sole discretion, may designate Awards granted under the Plan as Performance-Based Awards (as defined below) if it determines that such compensation might not
be tax deductible by the Company due to the deduction limitation imposed by Code Section 162(m). Accordingly, an Award granted under the Plan may be granted in such a manner that the compensation attributable to such Award is intended by the
Committee to qualify as “qualified performance-based compensation” (as such term is used in Code Section 162(m) and the Treasury Regulations thereunder) and thus be exempt from the deduction limitation imposed by Code
Section 162(m) (“Performance-Based Awards”). 
 12.2. Qualification of Performance-Based Awards. Awards
shall only qualify as Performance-Based Awards under the Plan if: 
 (a) at the time of grant the Committee is comprised
solely of two or more “outside directors” (as such term is used in Code Section 162(m) and the Treasury Regulations thereunder); 
 (b) with respect to either the granting or Vesting of an Award (other than (i) a Nonqualified Stock Option or (ii) a SAR, which are granted with an exercise price at or above the Fair
Market Value of the Common Stock on the date of grant), such Award is subject to the achievement of a performance goal or goals based on one or more of the performance measures specified in Section 12.3 below; 

(c) the Committee establishes in writing (i) the objective performance-based goals applicable to a given performance period and
(ii) the individual employees or class of employees to which such performance-based goals apply no later than 90 days after the commencement of such performance period (but in no event after 25 percent of such performance period has
elapsed); 
 (d) no compensation attributable to a Performance-Based Award will be paid to or otherwise received by a
Participant until the Committee certifies in writing that the performance goal or goals (and any other material terms) applicable to such performance period have been satisfied; and 

  
 15 

 (e) after the establishment of a performance goal, the Committee shall not revise such
performance goal (unless such revision will not disqualify compensation attributable to the Award as “performance-based compensation” under Code Section 162(m)) or increase the amount of compensation payable with respect to such Award
upon the attainment of such performance goal. 
 12.3. Performance Measures. The Committee shall use the following
performance measures (either individually or in any combination) to set performance goals with respect to Awards intended to qualify as Performance-Based Awards: net sales; pretax income before allocation of corporate overhead and bonus; budget;
cash flow; earnings per share; net income; financial goals; return on shareholders’ equity; return on assets; attainment of strategic and operational initiatives; appreciation in and/or maintenance of the price of the Common Stock or any other
publicly-traded securities of the Company; market share; gross profits; earnings before interest and taxes; earnings before interest, taxes, depreciation and amortization; economic value-added models; comparisons with various stock market indices;
and/or reductions in costs. 
 13. CHANGE IN CONTROL 
 13.1. Accelerated Vesting. Notwithstanding any other provision of this Plan to the contrary, and without limiting the powers of the Committee under Section 4.3 of the Plan, if there is a
Change in Control of the Company, the Vesting Date and/or payout of each outstanding Award shall be accelerated so that each such Award shall, immediately prior to the effective date of the Change in Control, become fully vested with respect to the
total number of shares of Common stock subject to such Award. Upon the consummation of any Change of Control, all outstanding Awards under the Plan shall, to the extent not previously exercised, either be assumed by any successor corporation or
parent thereof or be replaced with a comparable Award with respect to shares of common stock of such successor corporation or parent thereof. 
 13.2. Cashout. The Committee, in its sole discretion, may determine that, upon the occurrence of a Change in Control of the Company, all or a portion of certain outstanding Awards shall terminate
within a specified number of days after notice to the holders, and each such holder shall receive an amount equal to the value of such Award on the date of the Change in Control, and with respect to each share of Common Stock subject to a Stock
Option or SAR, an amount equal to the excess of the Fair Market Value of such shares of Common Stock immediately prior to the occurrence of such Change in Control (or such other greater amount as the Committee may determine in its sole and absolute
discretion to be equitable to prevent dilution or enlargement of Participants’ rights under the Plan) over the exercise price per share of such Stock Option or SAR. Such amount shall be payable in cash, in one or more kinds of property
(including the property, if any, payable in the transaction) or in a combination thereof, as the Committee, in its sole discretion, shall determine. 

  
 16 

 13.3. Assumption or Substitution of Awards. Notwithstanding anything contained in the
Plan to the contrary, the Committee may, in its sole discretion, provide that an Award may be assumed by any entity which acquires control of the Company or may be substituted by a similar award under such entity’s compensation plans.

 14. TERMINATION OF EMPLOYMENT IF PARTICIPANT IS AN EMPLOYEE 
 14.1. Termination of Employment Due to Death. Subject to the terms of the Plan, any written agreement between the Participant and the Company, and the applicable Award Agreement, if a
Participant’s employment is terminated due to death: 
 (a) all non-Vested portions of Awards held by the Participant
on the date of the Participant’s death shall immediately be forfeited by such Participant as of such date; and 

(b) all Vested portions of Stock Options and SARs held by the Participant on the date of the Participant’s death shall remain
exercisable until the earlier of: 
 (i) the end of the 12-month period following the date of the Participant’s death,
or 
 (ii) the date the Stock Option or SAR would otherwise expire. 

14.2. Termination of Employment for Cause. Subject to the terms of the Plan, any written agreement between the Participant and the
Company, and the applicable Award Agreement, if a Participant’s employment is terminated by the Company for Cause, all Awards held by a Participant on the date of the termination of his or her employment for Cause, whether Vested or non-Vested,
shall immediately be forfeited by such Participant as of such date. If a Participant’s employment is terminated for Cause during the six months following any exercise, payment or delivery pursuant to an Award, such exercise, payment or delivery
may be rescinded within two years thereafter. In the event of any such rescission, the Participant shall pay to the Company the amount of any gain realized or payment received as a result of the rescinded exercise, payment or delivery, in such
manner and on such terms and conditions as may be required, and the Company shall be entitled to set-off against the amount of any such gain any amount owed to the Participant by the Company. 

14.3. Termination of Employment Due to Retirement or Disability. Subject to the terms of the Plan, any written agreement between
the Participant and the Company, and the applicable Award Agreement, if a Participant’s employment is terminated due to Retirement or Disability of the Participant: 
 (a) all non-Vested portions of Awards held by the Participant on the date of the Participant’s Retirement or the date of the termination of his or her employment, as the case may be, shall
immediately be forfeited by such Participant as of such date; and 

  
 17 

 (b) all Vested portions of Stock Options and SARs held by the Participant on the date
of the Participant’s Retirement or the date of the termination of his or her employment, as the case may be, shall remain exercisable until the earlier of: 
 (i) the end of the 36-month period following the date of the Participant’s Retirement or the date of the termination of his or her employment, as the case may be, or 

(ii) the date the Stock Option or SAR would otherwise expire. 

14.4. Other Terminations of Employment. Subject to the terms of the Plan, any written agreement between the Participant and the
Company, and the applicable Award Agreement, if a Participant’s employment is terminated for any reason other than for Cause, retirement or due to death or Disability: 
 (a) all non-Vested portions of Awards held by the Participant on the date of the termination of his or her employment shall immediately be forfeited by such Participant as of such date; and all
Vested portions of Stock Options and/or SARs held by the Participant on the date of the termination of his or her employment shall remain exercisable until the earlier of; 
 (i) the end of the 12-month period following the date of the termination of the Participant’s employment, or 
 (ii) the date the Stock Option or SAR would otherwise expire. 
 14.5.
Change in Status. Notwithstanding anything to the contrary set forth in the Plan, if any Employee ceases for any reason to be an Employee but continues to perform services for the Company (whether as a Nonemployee Director, consultant, agent,
Independent Contractor or otherwise), such Participant shall retain his or her Awards upon the original terms and conditions thereof; provided, however, that if such Participant thereafter ceases to perform services for the Company then the
provisions of this Section 14.4 shall no longer apply and such Award shall thereafter be subject to the provisions of Section 14.1, 14.2 or 14.3, as applicable. 
 14.6. Committee Discretion. Notwithstanding anything contained in the Plan to the contrary, and without limiting the powers of the Committee under Section 4.3 of the Plan, the Committee may,
in its sole discretion, provide that: 
 (a) any or all non-Vested portions of Stock Options and/or SARs held by the
Participant on the date of the Participant’s death and/or the date of the termination of his or her employment shall immediately become exercisable as of such date and shall remain exercisable until a date that occurs on or prior to the date
the Stock Option or SAR is scheduled to expire; 
 (b) any or all Vested portions of Nonqualified Stock Options and/or SARs
held by the Participant on the date of the Participant’s death and/or the date of the termination of his or her employment shall remain exercisable until a date that occurs on or prior to the date the Stock Option or SAR is scheduled to expire;
and/or 

  
 18 

 (c) any or all non-Vested portions of Stock Awards, Stock Units, Performance Shares,
Performance Units, and/or Cash Awards held by the Participant on the date of the Participant’s death and/or the date of the termination of his or her employment shall immediately Vest or shall become Vested on a date that occurs on or prior to
the date the Award is scheduled to vest. 
 (d) Cancellation and Rescission of Awards Due to Detrimental Activity. Unless
the Award Agreement specifies otherwise, and regardless of whether the Participant’s employment or engagement with the Company is terminated (whether for Cause or otherwise), the Committee may cancel, rescind, or otherwise withhold any Awards
held by a Participant, whether Vested or non-Vested, and any such Awards shall immediately be forfeited by such Participant at any time that the Participant is not in compliance with all applicable provisions of the Award Agreement and the Plan, or
if the Participant engages in any “Detrimental Activity.” For purposes of this Section 14.6, “Detrimental Activity” shall include: (i) the rendering of services, directly or indirectly, to or for the benefit of any
organization or engaging directly or indirectly in any business which is competitive with the Company, or which organization or business, or the rendering of services to or for the benefit of such organization, is prejudicial to or in conflict with
the interests of the Company; (ii) the disclosure to anyone outside the Company, or the use in other than the Company’s business, without prior written authorization from the Company, of any “confidential information,” as defined
in the Company’s Employee Handbook, acquired by the Participant either during or after employment with the Company; (iii) the failure or refusal to disclose promptly and to assign exclusively to the Company, all right title and interest in
any invention or idea, patentable or not, made or conceived by the Participant during employment with the Company, relating in any manner to the actual or anticipated business, research or development work of the Company or the failure or refusal to
do anything reasonably necessary to enable the Company to secure a patent where appropriate in the United States and in other countries; (iv) a violation of any rule, policy, procedure or guideline of the Company, including but not limited to
the Company’s Code of Conduct; (v) any attempt, directly or indirectly, to induce any employee of the Company to be employed or render services other than for the Company, or any attempt directly or indirectly to solicit the trade or
business of any current or prospective customer, supplier, or partner of the Company, other than in connection with the Company’s business; (vi) the Participant being convicted of, or entering a guilty plea with respect to a crime, whether
or not connected with the Company; (vii) any other conduct or act determined to be injurious, detrimental or prejudicial to any interest of the Company or (viii) any agreement, whether or not in writing, to do any of the foregoing. Upon
exercise, payment or delivery pursuant to an Award, the Participant may be required to certify, in a manner acceptable to the Committee, that he or she is in compliance with all of the terms and conditions of the Plan and is not and has not engaged
in any Detrimental Activity. In the event a Participant fails to comply with the provisions of this Section 14.6 after the grant of the Award and prior to, or during the six months after any exercise, payment or delivery pursuant to an Award,
such exercise, payment or delivery may be rescinded within two years thereafter. In the event of any such rescission, the Participant shall pay to the Company the amount of any gain realized or payment received as a result of the rescinded exercise,
payment or delivery, in such manner and on such terms and conditions as may be required, and the Company shall be entitled to set-off against the amount of any such gain any amount owed to the Participant by the Company. 

  
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 15. TAXES 
 15.1. Withholding Taxes. With respect to Employees, the Company, or the applicable Subsidiary, may require a Participant whose Stock Award, Stock Unit, Performance Share or Performance Unit granted
hereunder has Vested, or who exercises a Stock Option or SAR granted hereunder to reimburse the Company or the Subsidiary which employs such Participant for any taxes required by any governmental regulatory authority to be withheld or otherwise
deducted and paid by such corporation or entity in respect of the issuance or disposition of such shares or the payment of any amounts. In lieu thereof, the Company or the Subsidiary which employs such Participant, shall have the right to withhold
the amount of such taxes from any other sums due or to become due from the Company or the Subsidiary, as applicable, to the Participant upon such terms and conditions as the Committee shall in its sole discretion prescribe. The Company or the
Subsidiary that employs such Participant may, in its discretion, hold the stock certificate to which such Participant is entitled upon the Vesting of a Stock Award, Stock Unit, Performance Share or Performance Unit or the exercise of a Stock Option
or SAR as security for the payment of such withholding tax liability, until cash sufficient to pay that liability has been accumulated by or paid to the Company or such Subsidiary. 

15.2. Use of Common Stock to Satisfy Withholding Obligation. With respect to Employees, at any time that the Company, Subsidiary
or other entity that employs such Participant becomes subject to a withholding obligation under applicable law with respect to the vesting of a Stock Award, Stock Unit, Performance Share or Performance Unit or the exercise of a Nonqualified Stock
Option (the “Tax Date”), except as set forth below, a holder of such Award may, subject to the approval of the Committee, elect to satisfy, in whole or in part, the holder’s related personal tax liabilities (an “Election”)
by (i) directing the Company, Subsidiary or other entity that employs such Participant to withhold from shares issuable in the related vesting or exercise either a specified number of shares or shares of Common Stock having a specified value
(in each case equal to the related minimum statutory personal withholding tax liabilities with respect to the applicable taxing jurisdiction in order to comply with the requirements for a “fixed plan” under Accounting Principals Board
Opinion No. 25), (ii) tendering shares of Common Stock or other securities of the Company previously issued pursuant to the exercise of a Stock Option or other shares of the Common Stock owned by the holder, or (iii) combining any or
all of the foregoing Elections in any fashion. The foregoing notwithstanding, however, when previously issued shares of Common Stock or other securities of the Company are tendered pursuant to an Election, such tender of shares will not be accepted
unless the Participant has held such shares for the requisite period necessary to avoid a charge to the Company’s earnings for financial reporting purposes. An Election shall be irrevocable. The withheld shares and other shares of Common Stock
or other securities tendered in payment shall be valued at their Fair Market Value on the Tax Date. The Committee may in its sole discretion disapprove of any Election, suspend or terminate the right to make Elections or provide that the right to
make Elections shall not apply to particular shares or exercises. The Committee may impose any additional conditions or restrictions on the right to make an Election as it shall deem appropriate, including conditions or restrictions with respect to
Section 16 of the Exchange Act. 

  
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 15.3. No Guarantee of Tax Consequences. No Person connected with the Plan in any
capacity, including, but not limited to, the Company and any Subsidiary and their respective directors, officers, agents and employees makes any representation, commitment, or guarantee that any tax treatment, including, but not limited to, federal,
state and local income, estate and gift tax treatment, will be applicable with respect to amounts deferred under the Plan, or paid to or for the benefit of a Participant under the Plan, or that such tax treatment will apply to or be available to a
Participant on account of participation in the Plan. 
 16. AMENDMENT AND TERMINATION  

16.1. Termination of Plan. The Board or the Committee may suspend or terminate the Plan at any time with or without prior notice;
provided, however, that no action authorized by this Section 16.1 shall reduce the amount of any outstanding Award or adversely change the terms and conditions thereof without the Participant’s consent. 

16.2. Amendment of Plan. Provided that no amendment may adversely affect the rights of any Participant under any outstanding Award
without the Participant’s consent; and, provided further, that no such amendment shall be effective without shareholder approval if such approval is required to comply with any applicable law or the rules of any national securities exchange or
other market system on which the Company’s securities are then listed or traded; and, provided further, that the Board or the Committee may not, without shareholder approval, increase the maximum number of shares issuable under the Plan, the
Board or the Committee may amend the Plan at any time with or without prior notice. Notwithstanding any provision herein to the contrary, the Board or the Committee shall have broad authority to amend the Plan or any Award to take into account
changes in applicable tax laws, securities laws, accounting rules and other applicable state and federal laws. 
 16.3.
Amendment or Cancellation of Award Agreements. Without limitation to the rights of the Committee under Sections 4.3 and 14.6 of the Plan, the Committee may amend or modify any Award Agreement at any time by mutual agreement between the
Committee and the Participant or such other Persons as may then have an interest therein. In addition, by mutual agreement between the Committee and a Participant or such other Persons as may then have an interest therein, Awards may be granted to
an Employee, Nonemployee Director or Independent Contractor in substitution and exchange for, and in cancellation of, any Awards previously granted to such Employee, Nonemployee Director or Independent Contractor under the Plan, or any award
previously granted to such Employee, Nonemployee Director or Independent Contractor under any other present or future plan of the Company or any present or future plan of an entity which (i) is purchased by the Company, (ii) purchases the
Company, or (iii) merges into or with the Company. 

  
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 17. MISCELLANEOUS 
 17.1. Other Provisions. Awards granted under the Plan may also be subject to such other provisions (whether or not applicable to the Award granted to any other Participant) as the Committee
determines in its sole discretion on the date of grant to be appropriate, including, without limitation, for the installment purchase of Common Stock under Stock Options, to assist the Participant in financing the acquisition of Common Stock, for
the forfeiture of, or restrictions on resale or other disposition of, Common Stock acquired under any Stock Option, for the acceleration of Vesting of Awards in the event of a Change in Control of the Company, for the payment of the value of Awards
to Participants in the event of a Change in Control of the Company, or to comply with federal and state securities laws, or understandings or conditions as to the Participant’s employment in addition to those specifically provided for under the
Plan. 
 17.2. Transferability. Each Award granted under the Plan to a Participant shall not be transferable otherwise
than by will or the laws of descent and distribution or pursuant to a “qualified domestic relations order” as defined in the Code or Title I of the Employee Retirement Income Security Act of 1974, as amended, and the rules and
regulations adopted thereunder and Stock Options and SARs shall be exercisable, during the Participant’s lifetime, only by the Participant; provided, however, that the Committee may in its sole discretion permit the transfer of an Award to a
Participant’s Family Members or to one or more trusts established in whole or in part for the benefit of one or more such Family Members In the event of the death of a Participant, each Stock Option or SAR theretofore granted to him or her
shall be exercisable during such period after his or her death as the Committee shall, in its sole discretion, set forth in the Award Agreement on the date of grant and then only by the executor or administrator of the estate of the deceased
Participant or the Person or Persons to whom the deceased Participant’s rights under the Stock Option or SAR shall pass by will or the laws of descent and distribution. 
 17.3. Election to Defer Compensation Attributable to Award. The Committee may, in its sole discretion, allow a Participant to elect to defer the receipt of any compensation attributable to an Award
under guidelines and procedures to be established by the Committee after taking into account the advice of the Company’s tax counsel. 

  
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 17.4. Listing of Shares and Related Matters. If at any time the Committee shall
determine that the listing, registration or qualification of the shares of Common Stock subject to any Award on any securities exchange or under any applicable law, or the consent or approval of any governmental regulatory authority, is necessary or
desirable as a condition of, or in connection with, the granting of an Award or the issuance of shares of Common Stock thereunder, such Award may not be exercised, distributed or paid out, as the case may be, in whole or in part, unless such
listing, registration, qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to the Committee. The Committee may require each Participant purchasing or acquiring shares of Common Stock pursuant
to a Stock Option or other Award under the Plan to represent to and agree with the Company in writing that such Participant is acquiring the shares for investment and not with a view to the distribution thereof. All certificates for shares of Common
Stock delivered under the Plan shall be subject to such stock-transfer orders and other restrictions as the Committee may deem advisable under the rules, regulations, and other requirements of the Securities and Exchange Commission or any national
securities exchange or other market system on which the Company’s securities are listed or traded, and any applicable federal or state securities law, and the Committee may cause a legend or legends to be put on any such certificates to make
appropriate reference to such restrictions. 
 17.5. No Right, Title, or Interest in Company Assets. Participants shall
have no right, title, or interest whatsoever in or to any investments which the Company may make to aid it in meeting its obligations under the Plan. Nothing contained in the Plan, and no action taken pursuant to its provisions, shall create or be
construed to create a trust of any kind, or a fiduciary relationship between the Company and any Participant, beneficiary, legal representative or any other Person. The Plan is intended to constitute an unfunded plan for incentive compensation. To
the extent that any Person acquires a right to receive payments from the Company under the Plan, such right shall be no greater than the right of an unsecured general creditor of the Company. All payments to be made hereunder shall be paid from the
general funds of the Company and no special or separate fund shall be established and no segregation of assets shall be made to assure payment of such amounts except as expressly set forth in the Plan. The Plan is not intended to be subject to the
Employee Retirement Income Security Act of 1974, as amended. 
 17.6. No Right to Continued Employment or Service or to
Grants. The Participant’s rights, if any, to continue to serve the Company as a director, officer, employee, independent contractor or otherwise, shall not be enlarged or otherwise affected by his or her designation as a Participant under
the Plan, and the Company or the applicable Subsidiary reserves the right to terminate the employment of any Employee or the services of any Independent Contractor or director at any time. The adoption of the Plan shall not be deemed to give any
Employee, Nonemployee Director, Independent Contractor or any other individual any right to be selected as a Participant or to be granted an Award. 
 17.7. Awards Subject to Foreign Laws. The Committee may grant Awards to individual Participants who are subject to the tax laws of nations other than the United States, and such Awards may have
terms and conditions as determined by the Committee as necessary to comply with applicable foreign laws. The Committee may take any action, which it deems advisable to obtain approval of such Awards by the appropriate foreign governmental entity;
provided, however, that no such Awards may be granted pursuant to this Section 17.7 and no action may be taken which would result in a violation of the Exchange Act or any other applicable law. 

  
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 17.8. Governing Law. The Plan, all Awards granted hereunder, and all actions taken in
connection herewith shall be governed by and construed in accordance with the laws of the State of Florida without reference to principles of conflict of laws, except as superseded by applicable federal law or as otherwise provided in any Award
Agreement. 
 17.9. Other Benefits. No Award granted under the Plan shall be considered compensation for purposes of
computing benefits under any retirement plan of the Company or any Subsidiary nor affect any benefits or compensation under any other benefit or compensation plan of the Company or any Subsidiary now or subsequently in effect. 

17.10. No Fractional Shares. No fractional shares of Common Stock shall be issued or delivered pursuant to the Plan or any Award.
The Committee shall determine in its sole discretion whether cash, Common Stock, Stock Options, or other property shall be issued or paid in lieu of fractional shares or whether such fractional shares or any rights thereto shall be forfeited or
otherwise eliminated. 
 17.11. Authority of the Company and Shareholders. The existence of the Plan, the Award
Agreements and the Awards granted hereunder shall not affect or restrict in any way the right or power of the Company or the shareholders of the Company to make or authorize any adjustment, recapitalization, reorganization or other change in the
Company’s capital structure or its business, any merger or consolidation of the Company, any issue of stock or of options, warrants or rights to purchase stock or of bonds, debentures, preferred or prior preference stocks whose rights are
superior to or affect the Common Stock or the rights thereof or which are convertible into or exchangeable for Common Stock, or the dissolution or liquidation of the Company, or any sale or transfer of all or any part of its assets or business, or
any other corporate act or proceeding, whether of a similar character or otherwise. 
 17.12. Other Compensation Plans.
The adoption of the Plan shall not affect any other stock option, incentive or other compensation plans in effect for the Company or any Subsidiary, nor shall the plan preclude the Company from establishing any other forms of incentive or other
compensation for Employees and Nonemployee Directors of the Company or any Subsidiary. 

  
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