Document:

EXHIBIT 10.4 

 

Lipocine
Inc.

Restricted
Stock Unit Grant Notice

2011
Equity Incentive Plan

 

Lipocine Inc. (the “Company”) hereby
awards to Participant the number of restricted stock units (“RSUs”) set forth below (the “Award”).
The Award is subject to all of the terms and conditions as set forth in this Notice, the 2011 Equity Incentive Plan (the “Plan”)
and the Restricted Stock Unit Agreement (the “Award Agreement”), both of which are attached hereto and
incorporated herein in their entirety. Capitalized terms not explicitly defined herein but defined in the Plan or the Award Agreement
will have the same definitions as in the Plan or the Award Agreement. In the event of any conflict between the terms of the Award
and the Plan, the terms of the Plan will control.

 

	Participant:	 	 
	Date of Grant:	 	 
	Vesting Commencement Date:	 	 
	Number of RSUs:	 	 

 

	Vesting Schedule:	[The Award vests as to 1/4th of the RSUs (rounded down to the nearest whole RSU) on the twelve-month anniversary of the Vesting Commencement Date, with the balance vesting as to 1/48th of the RSUs (rounded down to the nearest whole RSU, except for the last vesting installment) each month thereafter, subject to Participant’s Continuous Service with the Company through each such vesting date. Each installment of RSUs that vests hereunder is a “separate payment” for purposes of Treasury Regulation Section 1.409A-2(b)(2). 
	 	 
	Issuance Schedule:	Subject to any change on a Capitalization Adjustment, one share of Common Stock will be issued for each RSU which vests at the time set forth in Section 6 of the Award Agreement.  

 

Additional Terms/Acknowledgements: Participant acknowledges
receipt of, and understands and agrees to, this Restricted Stock Unit Grant Notice, the Award Agreement, the Plan and the stock
plan prospectus for this Plan. As of the Date of Grant, this Restricted Stock Unit Grant Notice, the Award Agreement and the Plan
set forth the entire understanding between Participant and the Company regarding the Award and supersede all prior oral and written
agreements on the terms of the Award, with the exception, if applicable, of (i) the written employment agreement or offer letter
agreement entered into between the Company and Participant specifying the terms that should govern this Award, and (ii) any compensation
recovery policy that is adopted by the Company or is otherwise required by applicable law.

 

By accepting this Award, Participant acknowledges having received
and read the Restricted Stock Unit Grant Notice, the Award Agreement and the Plan and agrees to all of the terms and conditions
set forth in these documents. Participant consents to receive Plan documents by electronic delivery and to participate in the Plan
through an on-line or electronic system established and maintained by the Company or another third party designated by the Company.

 

	Lipocine Inc.	 	Participant:
	 	 	 
	By:	 	 	 
	Signature	 	Signature
	 	 	 
	Title:	 	 	Date:	 
	 	 	 
	Date:	 	 	 

 

	Attachments:	Award Agreement, 2011 Equity Incentive PlanSEPARATION AGREEMENT AND GENERAL RELEASE

 

 

 

This Separation Agreement and General Release
("Agreement") is entered into by and between Lee Staab ("Employee") and Versar, Inc. ("Versar"
or the "Company") as of the date on which Employee executes this Agreement (the "Notification Date")
and shall become effective as of the date on which the revocation period set out in Paragraph 4(c)(ii) expires ("Effective
Date").

 

In consideration of the mutual covenants,
agreements and representations contained herein, the adequacy of which is hereby acknowledged, the parties hereto expressly and
intentionally bind themselves as follows:

 

		1.	SEPARATION OF EMPLOYEE

 

(a)The parties agree that Employee's
last day of employment with Versar will be April 12, 2014 ("Separation Date"). The time between the Notification
Date and the Separation Date is referred to herein as the "Retention Period."

 

(b)Except as otherwise provided in this
Agreement, effective as of the Separation Date, Employee shall not be eligible for further pay or benefits, including without limitation
any benefits under any severance plan or practice applicable to him as an employee of Versar

 

(c)During the Retention Period, Employee
shall perform such duties as may be assigned to him from time to time to the best of his ability and with the utmost good faith
and shall take all reasonable steps to provide for a successful transition of his duties as directed by the Company. During the
Retention Period, Employee's duties may be modified at the discretion of the Company and upon written notification to Employee,
provided that the Company fulfills its obligation to pay Employee his salary during the Retention Period.

 

(d)Should Employee resign voluntarily
prior to the Separation Date, this Agreement shall remain in full force and effect except that the date on which the Employee resigns
shall be substituted for the "Separation Date" stated above for all subsequent purposes.

 

(e)Employee hereby resigns from all
of his officer positions with the Company and all of its affiliates and subsidiaries, effective as of the Separation Date.

 

		2.	PAYMENTS BY VERSAR

 

(a)Employee will be paid: (i) all salary
earned through and including the Separation Date; and (ii) consistent with Versar Policy Memo No. 3.2, all accrued but unused personal
leave as of the Separation Date, up to a cap of 300 hours, less any applicable taxes and deductions. Such payments shall be made
in accordance with Versar's regular payroll schedule.

 

(b)Provided that Employee signs and
returns this Agreement and does not revoke the ADEA waiver as set out in Paragraph 4(c)(iii) as set out below (or, if so revoked,
the Company elects not to void the Agreement) no earlier than the Separation Date and no later than the 22nd day following the
Separation Date and does not revoke the ADEA waiver as set out therein (or, if so revoked, the Company elects not to void the Agreement)
and without conceding any obligation to do so, Versar shall pay Employee a lump sum payment in an amount equivalent to Seventy-Seven
Thousand Eight Hundred Eighty Two and 40/100 ($77,882.40), less any withholding and other taxes required by law (“Severance”),on
the next regular Versar pay date. Employee further understands and agrees that this Severance is in excess of any and all claims
for salary, personal leave time or any other form of compensation.

 

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(c)Except as provided in this Agreement
or as otherwise required under the terms of an applicable employee benefit plan, no additional payments shall be made to Employee.
Specifically, the Employee is not entitled to any bonus payments, nor any Restricted Stock Units which have not yet vested.

 

(d)The Company shall withhold such tax,
payroll and other amounts from payments under this Agreement as Employee authorizes or the Company reasonably believes to be required
by law. Employee shall be solely responsible for payment of his own taxes, including any taxes arising under Internal Revenue Code
Section 409A. The Company has not provided and will not provide tax advice to Employee.

 

(e) Employee acknowledges and agrees
that once any payments are made to the Employee according to this Agreement: (i) the Employee has received all compensation, wages,
bonuses, commissions, vacation pay and benefits to which he may be entitled, and no other compensation, wages, bonuses, commissions,
vacation pay and benefits are due to you; (ii) the Employee has not suffered any on-the-job injury for which he have not already
filed a claim; and (iii) nothing contained in this Agreement shall constitute or be treated as an admission of liability or wrongdoing
by the Company or its officers, directors, employees or agents.

 

		3.	EMPLOYMENT BENEFITS

 

(a)Employee agrees and acknowledges
that his participation in any 401(k) Plan, short-term and long-term disability plans, or any other benefit plans made available
to him as a Versar employee, and his participation in and entitlement to any and all other benefits in which he is currently enrolled,
but which are not specifically addressed in this Agreement, will terminate on the Separation Date, except as otherwise provided
in this Agreement.

 

(b)Employee's participation, if any,
in the Versar medical, dental, vision and other insurance plans shall cease as of the Separation Date unless, to the extent that
Employee is eligible, he timely elects to receive medical and/or dental benefits pursuant to the provisions of the Consolidated
Omnibus Budget Reconciliation Act ("COBRA") for himself and/or any qualifying beneficiaries.

 

(c)On or before close of business on
the Separation Date, Employee shall return all Company property, along with all accessories purchased or reimbursed by the Company,
to the Company's Human Resources Department.

 

(d)Except as otherwise provided in this
Agreement, Employee waives any right of participation in, or additional benefits under, the employee benefit, fringe benefit and
compensation plans of Versar with respect to any period after the Separation Date.

 

		4.	GENERAL RELEASE AND FORFEITURE BY EMPLOYEE

 

(a)Employee hereby releases and forever
discharges Versar, its subsidiaries, affiliates, insurers, trustees, fiduciaries, predecessors, successors, and assigns, and the
directors, officers, shareholders, employees, representatives and agents of each of the foregoing (collectively "Releasees")
of and from the following:

 

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(i)Any and all claims, demands,
and liabilities whatsoever of every name and nature (other than those arising directly out of this Agreement), including, without
limitation, those with respect to Employee's employment by Versar, or the terms and conditions of employment, benefits or compensation,
or termination of his employment, which Employee has or ever had against Releasees (the “Claims”);

 

(ii)Without limitation, any
and all Claims known or unknown as of the date of execution of this Agreement for tortious injury, breach of contract, and/or wrongful
discharge (including, without limitation, any claim for violation of public policy or constructive discharge), any personal gain
with respect to any claim arising under the qui tam provisions of the False Claims Act, 31 U.S.C. 3730 or any other whistleblower
claim, all claims for infliction of emotional distress, all claims for slander, libel, or defamation of character, and all claims
for reinstatement, back pay, front pay, compensatory or punitive damages, severance pay, attorneys' fees, or costs, as related
to Employee's employment by Versar, or the terms and conditions or termination of his employment, benefits or compensation, or
termination of such employment;

 

(iii)Without
limitation, any and all Claims known or unknown based upon any allegation of employment discrimination, including, without limitation,
discrimination on the basis of race, color, sex, sexual orientation, age, religion, disability, veteran status, national origin
or any other classification protected under applicable law. Specifically, Employee agrees that such released Claims include, without
limitation, any and all Claims under Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1871, the Civil Rights
Act of 1991, the Equal Pay Act, the Rehabilitation Act of 1973, the Civil Rights Act 1866, the Fair Labor Standards Act, the Family
and Medical Leave Act of 1993, the Age Discrimination in Employment Act of 1967, as amended by the Older Workers’ Benefit
Protection Act of 1990, the Americans With Disabilities Act, the Employee Retirement Income Security Act of 1974 (including, without
limitation, any claim for severance pay), any state Human Rights Law and any and all other federal, state or local laws, statutes,
rules and regulations pertaining to employment or discrimination in employment. Notwithstanding the foregoing, this release does
not interfere with or waive your right to enforce this Agreement in a court of competent jurisdiction;

 

(b)It is agreed and understood that
this release is a GENERAL RELEASE to be construed in the broadest possible manner consistent with applicable law. Employee hereby
acknowledges and agrees that by signing this Agreement, he is signing this General Release.

 

(c)Employee acknowledges and agrees
as follows:

 

(i)Employee has not filed
or pursued, nor will he file or pursue, any Claim released hereby against any Releasee by filing a lawsuit in any local, state
or federal court for or on account of anything which has occurred up to Notification Date as a result of Employee's employment
or termination of employment, and Employee shall not seek reinstatement or future employment with, or damages of any nature, severance
pay, attorneys' fees, or costs from any Releasee;

 

(ii)Nothing contained in this
Agreement shall be deemed to preclude Employee from providing truthful testimony or information pursuant to a valid court order
or similar legal process; provided however, that prior to making any such disclosure, Employee will promptly notify
the Company of such request or requirement so that the Company, if it so chooses, will have sufficient opportunity to seek to avoid
or minimize the required disclosure and/or to obtain an appropriate protective order or other appropriate relief. This Agreement
shall also not be construed to prohibit Employee from participating in any investigation or proceedings conducted by a government
agency; however, the Employee agrees that he is waiving his right to monetary recovery should any federal, state or local administrative
agency pursue any claims on his behalf arising out of or relating to his employment with and/or separation from the Company;

 

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(iii)Employee has been given
the opportunity, if he so desires, to consider this Agreement for twenty-one (21) days before executing it. Any change made to
the Agreement during the 21-day period, whether material or not, will not restart the running of the 21-day period. In the event
that Employee executes this Agreement within twenty-one (21) days of the date of its delivery to him, he acknowledges that such
decision was entirely voluntary and that he had the opportunity to consider this Agreement for the entire twenty-one (21) day period.
For a period of seven (7) days from the date of the execution of this Agreement, Employee shall retain the right to revoke the
waiver of claims arising under the Age Discrimination in Employment Act ("ADEA''), a federal statute that prohibits employers
from discriminating against employees age 40 and over on the basis of age (the "Revocation Period"). In order
to exercise his right to revoke the waiver of his ADEA claims in accordance with 29 U.S.C. § 626, Employee must provide written
notice to Versar, c/o Alessandria Albers, Vice President of Human Resources, 6850 Versar Center, Springfield, VA, 22151, no later
than 5:00 p.m. on the seventh day following his execution of the Agreement. If Employee elects to exercise this revocation right,
the Agreement shall be voidable in its entirety at the discretion of the Company and, if it so chooses to void the Agreement, the
Company shall then be relieved of any and all obligations to make any payments required under this Agreement. If Employee does
not revoke the waiver of claims under the ADEA, or if the Company chooses not to void the Agreement after receipt of a timely revocation
of the ADEA waiver, he understands and agrees that it will become fully enforceable immediately after the expiration of such revocation
period;

 

(iv)Employee has been and
is advised to consult an attorney regarding this Agreement prior to executing it and that he has been given sufficient time to
do so;

 

(v)Employee has received full
and adequate consideration for this General Release; and

 

(vi)Employee fully understands and acknowledges the
significance and consequences of this Agreement and represents by his signature that the terms of this Agreement are fully understood
and voluntarily accepted by him. This Agreement has been individually negotiated by Employee and is not part of a group exit incentive
or other group employment termination program.

 

(d)Excluded from this General Release
are any claims or rights which cannot be waived by law, including the right to challenge the enforceability of this Agreement and
the Employee's right to file a charge with an administrative agency or participate in any agency investigation where that agency
expressly prohibits such a waiver. However, Employee is waiving his right to recover any money or to reinstatement with any Releasee
in connection with such a charge or investigation. Employee is also waiving his right to recover money in connection with a charge
filed by any other individual or by the Equal Employment Opportunity Commission or any other federal, state or local agency.

 

(e)This General Release becoming and
remaining effective shall be a condition precedent to Employee obtaining any payments or benefits under this Agreement.

 

 

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		5.	NONDISCLOSURE OF INFORMATION; RETURN OF PROPERTY

 

(a)Employee shall keep secret and confidential
and shall not disclose to any third party, in any fashion or for any purpose whatsoever, any information regarding Versar which
is considered proprietary to or a trade secret of the Company, to which he has or will have had access at any time during the course
of his employment by the Company, including, without limitation, any information relating to: the Company's business or operations;
its plans, strategies, prospects or objectives; its products, technology, processes or specifications; its research and development
operations or plans; its customers and customer lists; its manufacturing, distribution, sales, service, support and marketing practices
and operations; its financial condition and results of operations; its operational strengths and weaknesses; and, its personnel
and compensation policies and procedures.

 

(b)Employee agrees to return to Versar,
on or before the Separation Date: (i) all documents, data, material, details and copies thereof in any form (electronic or hard
copy) that are the property of Versar or were created using Versar resources or during any hours worked for Versar including, without
limitation, any data referred to in the immediately preceding Paragraph; and (ii) all other Versar property including, without
limitation, all computer equipment, personal digital assistant or similar devices, fax machines and other equipment (except as
otherwise agreed, but including electronic information and/or software on Versar provided computer equipment to be retained by
Employee) and associated passwords, property passes, keys, credit cards, and identification badges.

 

		6.	NON-SOLICITATION

 

(a)               
Employee recognizes that by virtue of his employment with the Company, he has been introduced to and involved in the solicitation
and servicing of potential and existing customers of the Company. Employee understands and agrees that all efforts expended in
soliciting and servicing such customers have been for the permanent benefit of the Company. Employee also recognizes the Company’s
legitimate interest in protecting, for a reasonable period of time after his employment with the Company, the Company’s customers.
Accordingly, Employee agrees that, for a period of one (1) year beginning on the Separation Date, Employee shall not, directly
or indirectly, without the prior written consent of the Chairman of the Company, market, offer, sell or otherwise furnish any products
or services similar to, or otherwise competitive with, those offered by the Company to any customer of the Company.

 

(b)           
Employee recognizes the substantial expenditure of time and effort which the Company devotes to the recruitment, hiring,
orientation, training and retention of its employees. Accordingly, Employee agrees that, for a period of two (2) years beginning
on the Separation Date, Employee shall not, directly or indirectly, for himself or on behalf of any other person or entity, solicit,
offer employment to, hire or otherwise retain the services of any employee of the Company.

 

		7.	NO DETRIMENTAL COMMUNICATIONS

 

Employee agrees that
he will not make, disclose or cause to be disclosed any negative, adverse, false or derogatory comments or statements about Releasees
with regard to any product or service provided by Releasees, about Releasees' prospects for the future, or about Releasees in general.
Versar agrees that no authorized officer of Versar will disclose or cause to be disclosed outside of Releasees any negative, adverse,
false or derogatory comments or statements about Employee. The parties agree that this provision will not be construed so as to
bar any person from providing full and truthful testimony in response to a summons, court or administrative order or subpoena,
or as otherwise provided by law, nor shall it prohibit the Company from discussing matters regarding Employee with the Company's
outside legal and accounting representatives, or with the Company's Board of Directors. For the limited purposes of this Paragraph
only, the term "Releasees" shall mean only the directors, chief executive officer, president and executive and senior
vice presidents of Versar. Employee’s breach shall give rise to an obligation by Employee to repay to the Company the Severance
reflected in Section 2 of this Agreement as liquidated damages.

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		8.	GOVERNING LAW; SEVERABILITY

 

This Agreement is entered into and shall
be construed under the laws of the Commonwealth of Virginia. In the event any provision of this Agreement is determined to any
extent to be illegal or unenforceable by a duly authorized court of competent jurisdiction, then the illegal or unenforceable provision
shall be severed from this Agreement. In the event of such severance, the remainder of this Agreement shall not be affected thereby,
and each remaining provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law; provided,
however, that the parties expressly acknowledge and agree that the full waiver and release of all Claims by Employee is essential
to effectuate the parties' intent in entering into this Agreement and that, in the event the general release of Claims set forth
in Paragraph 5 is severed, the parties' remaining obligations under this Agreement shall be deemed waived (other than obligations
arising under Paragraphs 6), and any consideration or value delivered by one party to the other under this Agreement shall constitute
a binding obligation by the recipient to the other.

 

		9.	WAIVERS

 

The failure of either party to require the
performance of any term or obligation of this Agreement, or the waiver by either party of any breach of this Agreement, shall not
prevent any subsequent enforcement of such term or obligation and shall not be deemed a waiver of any subsequent breach.

 

		10.	AMENDMENTS

 

This Agreement may be modified or amended,
in whole or in part, only by the mutual agreement of the parties in writing.

 

		11.	NO OTHER INDUCEMENTS/ ENTIRE AGREEMENT

 

This Agreement sets forth the entire understanding
of the parties in connection with the subject matter hereof. Any and all prior negotiations or discussion, either oral or written,
are merged into this Agreement.

 

		12.	PERSONS BOUND BY AGREEMENT

 

This Agreement shall be binding upon and
inure to the benefit of Employee and Releasees and their respective successors.

 

		13.	DISPUTE RESOLUTION/ENFORCEMENT

 

In the event that any
action or proceeding is initiated to enforce or interpret the provisions of this Agreement, or to recover for a violation of the
Agreement, the prevailing party in any such action or proceeding shall be entitled to its costs (including reasonable attorneys'
fees). In the event that you breach any obligations under this Agreement, or as otherwise imposed by law, the Company will be entitled
to seek injunctive relief and to obtain all other relief provided by law or equity.

 

		14.	NO ADMISSION AS EVIDENCE

 

This Agreement is nonprecedential and may
not be raised as evidence by any person in connection with any subsequent litigation, except as necessary to enforce this Agreement.
Further, this Agreement shall never at any time for any purpose be considered as an admission of liability or wrongdoing by the
Company or Employee.

 

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		15.	CONFIDENTIALITY

 

Employee agrees to keep confidential the
existence of this Agreement, as well as all of its terms and conditions, and not to disclose to any person or entity the existence,
terms or conditions of this Agreement, except to his attorney and financial advisors, provided they agree to keep confidential
such existence, terms and conditions. In the event that Employee believes he is compelled by law to divulge the existence, terms
or conditions of this Agreement, he will notify Versar's Law Department of the basis for that belief before actually divulging
the information. Employee hereby confirms that, as of the date of his signing of this Agreement, he has not disclosed the existence,
terms or conditions of this Agreement, except as otherwise provided in this Agreement. Versar also agrees to keep confidential
the existence of this Agreement and not to disclose its terms and conditions outside of Releasees, its attorneys and consultants,
unless Versar is otherwise required to disclose such terms and conditions by operation of law or request by a governmental agency,
or as required by any federal or state securities laws or regulations.

 

 

 

IN WITNESS WHEREOF, the parties hereby agree to the terms and
conditions of this Agreement as set forth above.

 

	EMPLOYEE:	 	 	 
	 	 	 	 
	/s/ Lee Staab	 	Date:	March 24, 2014
	Lee Staab	 	 	 
	 	 	 	 
	 	 	 	 
	COMPANY.	 	 	 
	 	 	 	 
	Versar, Inc.	 	 	 
	 	 	 	 	 
	By:  	/s/ Jeffrey A. Wagonhurst	 	Date:    	March 13, 2014
	Jeffrey A. Wagonhurst	 	 	 
	President and Chief Operating Officer	 	 	 

 

 

 

 

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