Document:

EX-10.4

 Exhibit 10.4 

INDUSTRIAL INCOME TRUST INC. 

RESTRICTED STOCK AGREEMENT 

FOR 
 [Insert name of
Recipient] 
 1. Award of Restricted Stock. The Administrator hereby grants, as of
                    , 2015 (the “Date of Grant”), to
                    (the “Participant”),
                restricted Shares of the Common Stock of Industrial Income Trust, Inc. (collectively the “Restricted Stock”). The Restricted Stock shall
be subject to the terms, provisions and restrictions set forth in this Restricted Stock Agreement (the “Agreement”) and the Company’s Private Placement Equity Incentive Plan, as it may be amended from time to time (the
“Plan”), which is incorporated herein for all purposes. As a condition to entering into this Agreement, and as a condition to the issuance of any Shares (or any other securities of the Company), the Participant agrees to be bound by all of
the terms and conditions herein and in the Plan. You must return an executed copy of this Agreement to the Company prior to first vesting date; if you fail to do so, the Restricted Stock award may be rendered null and void in the Company’s
discretion. Unless otherwise provided herein, terms used herein that are defined in the Plan and not defined herein shall have the meanings attributable thereto in the Plan. 

2. Vesting of Restricted Stock. 

(a) General Vesting. The Shares of Restricted Stock shall become vested in the following amounts, at the following times and upon
the following conditions, provided that the Termination of Service of the Participant does not occur before the applicable date on which the Shares of Restricted Stock become vested (the “Vesting Date”): 

 

			
	 Number of Shares of Restricted Stock
	  	 Vesting Date

	[                    ]	  	[                    ]
	[                    ]	  	[                    ]
	[                    ]	  	[                    ]
	[                    ]	  	[                    ]

 Except as otherwise provided in Sections 2(b) and 4 hereof, there shall be no proportionate or partial vesting
of Shares of Restricted Stock in or during the months, days or periods prior to each Vesting Date, and all vesting of Shares of Restricted Stock shall occur only on the applicable Vesting Date. 

(b) Acceleration of Vesting at Company Discretion. Notwithstanding any other term or provision of this Agreement, the Board or
the Administrator shall be authorized, in its sole discretion, based upon its review and evaluation of the performance of the Participant, the Company and the Employer of the Participant, or any corporate transaction relating to the Company, to
accelerate the vesting of any Shares of Restricted Stock under this Agreement, at such times and upon such terms and conditions as the Board or the Administrator shall deem advisable. 

 (c) Definitions. For purposes of this Agreement, the following terms shall have the
meanings indicated: 
 (i) “Non-Vested Shares” means any portion of the Shares of Restricted Stock subject to this
Agreement that has not become vested pursuant to this Section 2. 
 (ii) “Vested Shares” means any portion of
the Shares of Restricted Stock subject to this Agreement that is and has become vested pursuant to this Section 2. 
 3. Delivery of Restricted
Stock. 
 (a) Issuance of Stock Certificates and Legends. One or more stock certificates evidencing the Shares of
Restricted Stock shall be issued in the name of the Participant but shall be held and retained by the records administrator of the Company until the date (the “Applicable Date”) on which the Shares (or a portion thereof) of
Restricted Stock become Vested Shares. All such stock certificates shall bear the following legend, along with such other legends that the Administrator shall deem necessary or appropriate: 

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO SUBSTANTIAL VESTING, TRANSFER AND OTHER RESTRICTIONS AS SET FORTH IN THE RESTRICTED
STOCK AGREEMENT BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THE SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE ISSUER. SUCH RESTRICTIONS ARE BINDING ON TRANSFEREES OF THESE SHARES, AND INCLUDE VESTING CONDITIONS WHICH MAY
RESULT IN THE COMPLETE FORFEITURE OF THE SHARES. 
 (b) Stock Powers. The Participant shall deposit with the Company stock
powers or other instruments of transfer or assignment, duly endorsed in blank with signature(s) guaranteed, corresponding to each certificate representing Shares of Restricted Stock (or if Shares are issued without certificates, corresponding to all
of the Shares of Restricted Stock registered in the name of the Participant) until such Shares become Vested Shares. If the Participant shall fail to provide the Company with any such stock power or other instrument of transfer or assignment, the
Participant hereby irrevocably appoints the Secretary of the Company as his attorney-in-fact, with full power of appointment and substitution, to execute and deliver any such power or other instrument which may be necessary to effectuate the
transfer of the Shares of Restricted Stock (or assignment of distributions thereon) on the books and records of the Company. 
 (c)
Delivery of Stock Certificates. On or after each Applicable Date, upon written request to the Company by the Participant, the Company shall promptly cause a new certificate or certificates to be issued for and with respect to all
Shares that become Vested Shares on that Applicable Date, which certificate(s) shall be delivered to the Participant as soon as administratively practicable after the date of receipt by the Company of the Participant’s written

  
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request. The new certificate or certificates shall continue to bear those legends and endorsements that the Company shall deem necessary or appropriate (including those relating to restrictions
on transferability and/or obligations and restrictions under any applicable securities laws). If the Shares are issued without certificates, then on or after each Applicable Date, upon written request to the Company by the Participant, the Company
shall promptly take such action as shall be necessary or appropriate to reflect on the Company’s books and records (and on the books and records of the transfer agent for the Company’s Shares), that those Shares that vest on that
Applicable Date are Vested Shares. 
 (d) Issuance Without Certificates. If the Company is authorized to issue Shares without
certificates, then the Company may, in the discretion of the Administrator, issue Shares pursuant to this Agreement without certificates. 
 4.
Forfeiture of Shares. Notwithstanding any other provision of this Agreement to the contrary, the Participant’s Vested Shares and Non-Vested Shares will be immediately forfeited under the following circumstances: 

(a) Cause. All of Participant’s Vested Shares and Non-Vested Shares shall be forfeited immediately and without compensation
if the Participant’s Termination of Service is by the Company for Cause. 
 (b) Confidentiality. All of the
Participant’s Vested Shares and Non-Vested Shares shall be forfeited immediately and without compensation if the Participant discloses any Confidential Information (as defined below) in violation of this subsection. Participant acknowledges
that during Participant’s employment by the Company or any Plan Related Party, and as a result of the confidential relationship with the Company or any Plan Related Party, Participant has access to and will receive Confidential Information,
including but not limited to Trade Secrets (as defined below) and that the Confidential Information, including, but not limited to, Trade Secrets is a highly valuable asset of the Company or any Plan Related Party and provides a competitive
advantage. Accordingly, during Participant’s employment with the Company or any Plan Related Party and following the termination of such employment regardless of the reason, Participant shall retain in strict confidence and shall not use or
retain for the benefit of Participant or any third party or for any purpose whatsoever or divulge, disseminate or disclose to any third party (other than in the furtherance of the business purposes of the Company or any Plan Related Party) all
Confidential Information, including Trade Secrets. As used herein, “Confidential Information” means: 
 (i) trade secrets, defined
as including but not limited to information concerning the business and affairs of the Company or any Plan Related Party (“Trade Secrets”), including, without limitation, any of the information described below in subparagraphs (ii),
(iii) and (iv); 
 (ii) confidential data, know-how, current and planned research and development, current and planned methods and
processes, customer and key contact lists, investor lists, marketing strategies or studies, slide presentations, selling group lists, employee information, market studies, business plans, computer software and programs, systems, structures and
architectures, and any other confidential information, however documented, belonging to Company or any Plan Related Party; 

  
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 (iii) information that is not widely and publicly known concerning the business and affairs of
the Company or any Plan Related Party (including, without limitation, historical financial statements, financial projections, budgets and plans, market studies, selling group lists, the names, contact information and backgrounds of personnel, and
personnel training techniques and materials), however documented; and 
 (iv) notes, analyses, compilations, studies, summaries, computer
files and disks, and other material containing or based, in whole or in part, on any information included in the foregoing. 
 Participant
acknowledges that the unauthorized use and disclosure of such Confidential Information could have an adverse effect on the Company and the Plan Related Parties and their respective businesses; and the provisions of this Section 4(b) on
confidentiality are reasonable and necessary to prevent such use or disclosure of Confidential Information. Participant’s obligations of confidentiality hereunder do not apply to any Confidential Information which: (A) Participant can
demonstrate has become widely and publicly known through no fault of Participant or of anyone known by Participant to be in breach of a confidentiality obligation to the Company or a Plan Related Party, or (B) is required to be disclosed by law
(provided that Participant gives Company advance notice of such prospective disclosure and the opportunity to seek a protective order or similar relief). 

Upon the termination of Participant’s employment with Company or any Plan Related Party, or upon Company’s or any Plan Related
Party’s reasonable request, Participant shall immediately deliver to Company or its designee (and shall not keep in Participant’s possession or deliver to any other person or entity) all Confidential Information and all other Company or
Plan Related Party property in Participant’s possession or control. Participant understands and agrees that compliance with this Section 4(b) may require that data be deleted from Participant’s personal computer equipment, and
accordingly, upon Company request, Participant will delete such Confidential Information from Participant’s personal computer following such termination and certify in writing to Company that such Confidential Information has been deleted from
his or her personal computer (and any other electronic location) and cannot be recovered. 
 Nothing in this section shall preclude the
giving of truthful testimony under oath or the making of truthful statements to government agencies. Further, nothing in this section requires the prior authorization of the Company to make any such statements, reports or disclosures or requires any
notification to the Company that any such statements, reports or disclosures have been made. 
 (c) Completion of Annual Certification
and Exit Survey. All of the Participant’s Vested Shares and Non-Vested Shares shall be forfeited immediately and without compensation if the Participant refuses to complete an Annual Certification (as defined below) or
Exit Survey (as defined below). 
 (i) Participant agrees that, as a condition precedent to the grant provided by this Agreement and any
benefits hereunder (and as a material inducement for the Company to provide such grant and each such benefit), to complete promptly an Annual Certification if requested to do so at any time and from time to time. As used herein, “Annual
Certification” 

  
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means, without limitation, any certification, statement or similar document presented by the Company in which the Participant is asked to identify with specificity, among other things, any
violations of laws, ethics or policies of the Company or any Plan Related Party of which Participant is aware, and any grievances, concerns or complaints that the Participant may have or about which the Participant may be aware involving the Company
or any Plan Related Party. Participant shall be required to promptly, timely, truthfully and fully complete such Annual Certification and to certify that such answers are true and correct to Participant’s knowledge; and Company and the
applicable Plan Related Party shall treat information provided by the Participant pursuant to the Company’s whistleblower policies. 

(ii) Participant agrees to complete an Exit Survey if requested to do so at the time Participant’s employment with the Company or any
Plan Related Party is terminated for any reason. As used herein, “Exit Survey” means, without limitation, any survey, questionnaire, or other similar document intended to solicit information from Participant regarding the Company or its
Plan Related Parties and the Participant’s employment therewith, including, among other things any violations of laws, ethics or policies of the Company or any Plan Related Party of which Participant is aware, and any grievances, concerns or
complaints that the Participant may have or about which the Participant may be aware involving the Company or any Plan Related Party. Participant shall be required to promptly, timely, truthfully and fully complete such Exit Survey and to certify
that such answers are true and correct to Participant’s knowledge; and Company and the applicable Plan Related Party shall treat information provided by the Participant pursuant to the Company’s whistleblower policies. 

(d) Forfeiture of Shares That Have Been Sold. If the Participant forfeits any Vested Shares that the Participant has previously
sold, assigned, exchanged, pledged, or otherwise transferred so as to be unable to comply with the Company’s written demand to forfeit such Vested Shares, the Company, in its sole and absolute discretion, may require that Participant pay to the
Company, within 30 days of the Company’s written notice demanding such payment, an amount equal to the aggregate Fair Market Value, determined on the applicable Vesting Date(s), of any Vested Shares that the Participant is unable to deliver to
the Company. 
 (e) Compliance with Law. If necessary to satisfy any law, regulation, rule or
administrative decision with respect to the Company’s or any Plan Related Party’s ongoing operations, including any ongoing offering of Common Stock, the Company shall have authority to cause the forfeiture of any Vested Shares or
Non-Vested Shares and replace any such forfeited Vested Shares or Non-Vested Shares with a form of compensation that is, as close as reasonably practicable as determined in the Administrator’s discretion, economically equivalent as of the date
of such replacement or modification. This subsection 4(e) shall not apply with respect to any Vested Shares that the Participant has previously sold, assigned, exchanged, pledged, or otherwise transferred in compliance with this Agreement, so as to
be unable to comply with the Company’s written demand to forfeit such Vested Shares. 
 5. Enforcement. 

(a) The Participant acknowledges and agrees that his or her obligations of confidentiality set forth in Section 4(b) are independent
covenants and agreements and can be enforced by the Company or any Plan Related Party separate and apart from this Agreement, and 

  
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are a condition precedent to this Agreement. Therefore, in addition to any other provision or remedy set forth in this Agreement, the Company or any Plan Related Party shall be entitled to all
remedies at law and equity resulting from breach of the obligations of confidentiality set forth in Section 4(b) and such remedies shall be cumulative with all provisions of this Agreement. 

(b) The Participant acknowledges and agrees that the injury that would be suffered by the Company or its Affiliates as a result of disclosure
in violation of Section 4(b) would be irreparable and that an award of monetary damages to the Company or its Affiliates for such a breach would be an inadequate remedy. Consequently, the forfeiture of both Vested Shares and Non-Vested Shares
is fair and reasonable under the circumstances. 
 (c) If any provision of Section 4 is held to be unreasonable, arbitrary, or against
public policy, such covenant and corresponding forfeiture will be considered to be divisible, including with respect to scope, time, geographic area and number of Vested Shares and Non-Vested Shares to be forfeited, and such lesser scope, time,
geographic area or number of Vested Shares and Non-Vested Shares, or all of them, as a court of competent jurisdiction may determine to be reasonable, not arbitrary, and not against public policy, will be effective, binding, and enforceable against
the Participant to the maximum extent permitted by applicable law. 
 6. Rights with Respect to Restricted Stock. 

(a) General. Except as otherwise provided in this Agreement, the Participant shall have, with respect to all of the Shares of
Restricted Stock, whether Vested Shares or Non-Vested Shares, all of the rights of a holder of Shares of common stock of the Company, including without limitation (i) the right to vote such Shares of Restricted Stock, (ii) the right to
receive dividends, if any, as may be declared on the Shares of Restricted Stock from time to time, and (iii) the rights available to all holders of Shares upon any merger, consolidation, reorganization, liquidation or dissolution, stock split-up, stock dividend or recapitalization undertaken by the Company; provided, however, that all of such rights shall be subject to the terms, provisions, conditions and restrictions set forth in this Agreement
(including without limitation conditions under which all such rights shall be forfeited). Any cash dividends (or dividends paid in the form of property other than Shares) paid with respect to any Shares of Restricted Stock shall be paid at the same
time as those dividends are paid by the Company to other holders of Shares (reduced by any applicable federal, state, local or foreign withholding taxes thereon). Any Shares issued to the Participant as a dividend with respect to Shares of
Restricted Stock shall have the same status and transfer restrictions and bear the same legend as the Shares of Restricted Stock and shall be held by the Company, if the Shares of Restricted Stock that such dividend is attributed to are being so
held, unless otherwise determined by the Administrator. The Shares awarded pursuant to this Agreement shall not be eligible for redemption under the Company’s Fourth Amended and Restated Share Redemption Program, effective as of
March 1, 2015, and as may be further amended. 
 (b) Adjustments to Shares. If at any time while this Agreement is
in effect (or Shares granted hereunder shall be or remain Non-Vested Shares prior to the Termination of Service of the Participant for any reason), there shall be any increase or decrease in the number of issued and outstanding Shares of the Company
through the declaration of a stock dividend or through 

  
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any recapitalization resulting in a stock split-up, combination or exchange of such Shares, then and in that event, the Board or the Administrator shall make any adjustments it deems fair and
appropriate, in view of such change, in the number of Shares of Restricted Stock then subject to this Agreement. If any such adjustment shall result in a fractional Share, such fraction shall be disregarded. 

(c) No Restrictions on Certain Transactions. Notwithstanding any term or provision of this Agreement to the contrary, the
existence of this Agreement, or of any outstanding Shares of Restricted Stock awarded hereunder, shall not affect in any manner the right, power or authority of the Company to make, authorize or consummate: (i) any or all adjustments,
recapitalizations, reorganizations or other changes in the Company’s capital structure or its business; (ii) any merger, consolidation or similar transaction by or of the Company; (iii) any offer, issue or sale by the Company of any
capital stock of the Company, including any equity or debt securities, or preferred or preference stock that would rank prior to or on parity with the Shares of Restricted Stock and/or that would include, have or possess other rights, benefits
and/or preferences superior to those that the Shares of Restricted Stock includes, has or possesses, or any warrants, options or rights with respect to any of the foregoing; (iv) the dissolution or liquidation of the Company; (v) any sale,
transfer or assignment of all or any part of the stock, assets or business of the Company; (vi) any dividend or other distribution of cash, Shares or other property by the Company; or (vii) any other corporate transaction, act or
proceeding (whether of a similar character or otherwise). 
 7. Transferability. (a) Unless otherwise determined by the Administrator,
the Shares of Restricted Stock are not transferable unless and until they become Vested Shares in accordance with this Agreement, otherwise than by will or under the applicable laws of descent and distribution. The terms of this Agreement shall be
binding upon the executors, administrators, heirs, successors and assigns of the Participant. Except as otherwise permitted pursuant to the first sentence of this Section 7(a), any attempt to effect a Transfer (as defined below) of any Shares
of Restricted Stock prior to the date on which the Shares become Vested Shares shall be void ab initio. For purposes of this Agreement, “Transfer” shall mean any sale, transfer, encumbrance, gift, donation, assignment, pledge,
hypothecation, or other disposition, whether similar or dissimilar to those previously enumerated, whether voluntary or involuntary, and including, but not limited to, any disposition by operation of law, by court order, by judicial process, or by
foreclosure, levy or attachment. 
 (b) Transfers of Vested Shares other than upon the Participant’s death will be permitted on a
case-by-case basis if approved by the Administrator. Such transfers must comply with applicable securities laws; the Restricted Stock has not been registered under the Securities Act, or the securities laws of any other jurisdiction and may not be
offered, sold, transferred or delivered, directly or indirectly, nor will any assignee or endorsee hereof be recognized as an owner hereof by the Company for any purpose, unless (i) such Restricted Stock is registered under the Securities Act
and any other applicable state securities laws, or (ii) an exemption from registration under the Securities Act and any other applicable state securities laws is available and established to the satisfaction of counsel for the Company. Any
attempt to Transfer Vested Shares without compliance with this Section 7(b) shall be voidable at the option of the Company. The Transfer restrictions in this paragraph will be lifted upon termination of the Participant’s

  
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Termination of Service for any reason, except that, other than with respect to Transfers upon a Participant’s death, the Company shall continue to have the right to confirm to its reasonable
satisfaction prior to any Transfer that such Transfer complies with applicable securities laws. 
 8. Tax Matters; Section 83(b)
Election. 
 (a) Section 83(b) Election. If the Participant properly elects, within thirty (30) days of the
Date of Grant, to include in gross income for federal income tax purposes an amount equal to the fair market value (as of the Date of Grant) of the Shares of Restricted Stock pursuant to Section 83(b) of the Internal Revenue Code of 1986, as
amended (the “Code”), the Participant shall make arrangements satisfactory to the Employer of the Participant to pay to the Employer of the Participant any federal, state, local or foreign income taxes required to be withheld with
respect to the Restricted Stock. If the Participant shall fail to make such tax payments as are required, the Employer of the Participant shall, to the extent permitted by law, have the right to deduct from any payment of any kind (including without
limitation, the withholding of any Shares that otherwise would be issued to the Participant under this Agreement) otherwise due to the Participant any federal, state, local or foreign taxes of any kind required by law to be withheld with respect to
the Restricted Stock. 
 (b) No Section 83(b) Election. If the Participant does not properly make the election described
in Section 8(a) above, the Participant shall, no later than the date or dates as of which the restrictions referred to in this Agreement hereof shall lapse, pay to the Employer of the Participant, or make arrangements satisfactory to the
Employer of the Participant for payment of, any federal, state, local or foreign taxes of any kind required by law to be withheld with respect to the Shares of Restricted Stock (including without limitation the vesting thereof), and the Employer of
the Participant shall, to the extent permitted by law, have the right to deduct from any payment of any kind (including without limitation, the withholding of any Shares that otherwise would be distributed to the Participant under this Agreement)
otherwise due to Participant any federal, state, local, or foreign taxes of any kind required by law to be withheld with respect to the Shares of Restricted Stock. 

(c) Satisfaction of Withholding Requirements. The Participant may satisfy the withholding requirements with respect to the
Shares of Restricted Stock pursuant to any one or combination of the following methods: 
 (i) payment in cash; or 

(ii) if and to the extent permitted by the Administrator, payment by surrendering unrestricted previously held Shares or the withholding of
Vested Shares that otherwise would be deliverable to the Participant pursuant to this Award, which have a value equal to the required minimum statutory withholding amount . The Participant may surrender Shares either by attestation or by delivery of
a certificate or certificates for Shares duly endorsed for transfer to the Company, and, if required, with medallion level signature guarantee by a member firm of a national stock exchange, by a national or state bank (or guaranteed or notarized in
such other manner as the Administrator may require). 

  
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 (d) Participant’s Responsibilities for Tax Consequences. The tax consequences
to the Participant (including without limitation federal, state, local and foreign income tax consequences) with respect to the Shares of Restricted Stock (including without limitation the grant, vesting and/or forfeiture thereof) are the sole
responsibility of the Participant. The Participant shall consult with his or her own personal accountant(s) and/or tax advisor(s) regarding these matters, the making of a Section 83(b) election, and the Participant’s filing, withholding
and payment (or tax liability) obligations. 
 9. Amendment, Modification & Assignment; Non-Transferability. 

(a) The Plan may be wholly or partially amended or otherwise modified, suspended, or terminated in accordance with its terms. 

(b) This Agreement may only be modified or amended in a writing signed by the parties hereto. No promises, assurances, commitments,
agreements, undertakings or representations, whether oral, written, electronic or otherwise, and whether express or implied, with respect to the subject matter hereof, have been made by either party which are not set forth expressly in this
Agreement. Unless otherwise consented to in writing by the Company, in its sole discretion, this Agreement (and Participant’s rights hereunder) may not be assigned, and the obligations of Participant hereunder may not be delegated, in whole or
in part. The rights and obligations created hereunder shall be binding on the Participant and his heirs and legal representatives and on the successors and assigns of the Company. 

10. Complete Agreement. This Agreement (together with those agreements and documents expressly referred to herein, for the purposes referred to
herein) embody the complete and entire agreement and understanding between the parties with respect to the subject matter hereof, and supersede any and all prior promises, assurances, commitments, agreements, undertakings or representations, whether
oral, written, electronic or otherwise, and whether express or implied, which may relate to the subject matter hereof in any way. 
 11.
Miscellaneous. 
 (a) No Right to (Continued) Employment or Service. This Agreement and the grant of Shares of
Restricted Stock hereunder shall not shall confer, or be construed to confer, upon the Participant any right to employment or service, or continued employment or service, with any Employer. 

(b) No Limit on Other Compensation Arrangements. Nothing contained in this Agreement shall preclude the Company or any Employer
from adopting or continuing in effect other or additional compensation plans, agreements or arrangements, and any such plans, agreements and arrangements may be either generally applicable or applicable only in specific cases or to specific persons.

 (c) Severability. If any term or provision of this Agreement is or becomes or is deemed to be invalid, illegal or
unenforceable in any jurisdiction or under any applicable law, rule or regulation, then such provision shall be construed or deemed amended to conform to applicable law (or if such provision cannot be so construed or deemed amended without

  
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materially altering the purpose or intent of this Agreement and the grant of Shares of Restricted Stock hereunder, such provision shall be stricken as to such jurisdiction and the remainder of
this Agreement and the award hereunder shall remain in full force and effect). 
 (d) No Trust or Fund Created. Neither this
Agreement nor the grant of Shares of Restricted Stock hereunder shall create or be construed to create a trust or separate fund of any kind or a fiduciary relationship between the Company and the Participant or any other person. To the extent that
the Participant or any other person acquires a right to receive payments from the Company pursuant to this Agreement, such right shall be no greater than the right of any unsecured general creditor of the Company. 

(e) Law Governing. This Agreement shall be governed by and construed and enforced in accordance with the internal laws of the
State of Maryland (without reference to the conflict of laws rules or principles thereof). 
 (f) Interpretation. The
Participant accepts the Shares of Restricted Stock subject to all of the terms, provisions and restrictions of this Agreement and the Plan. The undersigned Participant hereby accepts as binding, conclusive and final all decisions or interpretations
of the Administrator upon any questions arising under this Agreement or the Plan. 
 (g) Headings. Section, paragraph and
other headings and captions are provided solely as a convenience to facilitate reference. Such headings and captions shall not be deemed in any way material or relevant to the construction, meaning or interpretation of this Agreement or any term or
provision hereof. 
 (h) Notices. Any notice under this Agreement shall be in writing and shall be deemed to have been duly
given when delivered personally or when deposited in the United States mail, registered, postage prepaid, and addressed, in the case of the Company, to the Company’s Chief Financial Officer at 518
17th Street, 17th Floor, Denver, CO 80202, or if the Company should move its principal office, to such principal office, and, in the case of
the Participant, to the Participant’s last permanent address as shown on the Company’s records, subject to the right of either party to designate some other address at any time hereafter in a notice satisfying the requirements of this
Section. 
 (i) Section 409A. 

(a) It is intended that the Restricted Stock awarded pursuant to this Agreement be exempt from Section 409A of the Code (“Section
409A”) because it is believed that the Agreement does not provide for a deferral of compensation and accordingly that the Agreement does not constitute a nonqualified deferred compensation plan within the meaning of Section 409A. The
provisions of this Agreement shall be interpreted in a manner consistent with that intention. 
 (b) Notwithstanding the foregoing, the
Company does not make any representation to the Participant or any beneficiary of the Participant that the Shares of Restricted Stock awarded pursuant to this Agreement are exempt from, or satisfy, the requirements of Section 409A, and the
Company shall have no liability or other obligation to indemnify or hold 

  
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harmless the Participant or any beneficiary of the Participant for any tax, additional tax, interest or penalties that the Participant or any beneficiary of the Participant may incur in the event
that any provision of this Agreement, or any amendment or modification thereof or any other action taken with respect thereto is deemed to violate any of the requirements of Section 409A. 

(j) Non-Waiver of Breach. The waiver by any party hereto of the other party’s prompt and complete performance, or breach or
violation, of any term or provision of this Agreement shall be effected solely in a writing signed by such party, and shall not operate nor be construed as a waiver of any subsequent breach or violation, and the waiver by any party hereto to
exercise any right or remedy which he or it may possess shall not operate nor be construed as the waiver of such right or remedy by such party, or as a bar to the exercise of such right or remedy by such party, upon the occurrence of any subsequent
breach or violation. 
 (k) Counterparts. This Agreement may be executed in two or more separate counterparts, each of which
shall be an original, and all of which together shall constitute one and the same agreement. 
 (l) Arbitration. To the extent
that a dispute arises between the parties under this Agreement, the parties agree to attempt to settle such dispute through non-binding mediation to be held for a maximum of one day administered by the Judicial Arbiter Group (“JAG”),
before a mutually-agreed representative of JAG, in accordance with its commercial mediation rules then in effect. If such dispute cannot be resolved through mediation, it shall be resolved by binding arbitration before a panel of three arbitrators
of JAG (selected by the JAG mediator) under the commercial arbitration rules then in effect. Each party shall bear its own legal, accounting and other similar fees incurred in connection with such arbitration; provided that (a) the losing party
shall bear the costs of such arbitration and (b) the arbitrators shall award legal fees to the prevailing party in such dispute. Such arbitration and determination shall be final and binding on the parties and judgment may be entered upon such
determination in any court having jurisdiction thereof (and such judgment enforced, if necessary, through judicial proceedings). It is understood and agreed that the arbitrators shall be specifically empowered to designate and award any remedy
available at law or in equity, including specific performance. The parties agree that any such mediation or arbitration shall be conducted in Denver, Colorado. This arbitration provision is in no way intended to reduce or modify the sole and
absolute discretion afforded to the Administrator under the Plan. 

  
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 IN WITNESS WHEREOF, the parties hereto, intending to be legally bound, have executed this
Agreement as of the date first written above. 
  

			
	INDUSTRIAL INCOME TRUST INC.
		
	By:		  

	Name:		Thomas G. McGonagle
	Title:		Chief Financial Officer

 Agreed and Accepted: 
  

			
	PARTICIPANT:
		
	By:		  

			[Insert name of Participant]

  
 12ex10-1.htm

Exhibit 10.1

 

 

EXECUTION COPY

 

 

EMPLOYMENT AGREEMENT

 

EMPLOYMENT AGREEMENT (the “Agreement”), entered into as of May 7, 2015 by and between National Holdings Corporation, a Delaware corporation (the “Company”), and Glenn C. Worman (the “Executive”).

 

W I T N E S S E T H:

 

WHEREAS, Company desires to employ the Executive as its Executive Vice President – Finance upon the terms and subject to the conditions set forth in this Agreement; and

 

WHEREAS, the Executive is willing to accept such employment upon such terms;

 

NOW, THEREFORE, in consideration of the covenants and agreements hereinafter set forth and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

	 	
1.
	EMPLOYMENT AND DUTIES

 

1.1.     Term of Employment. The Executive’s employment under this Agreement shall commence as of May 7, 2015 (the “Effective Date”) and shall continue until May 5, 2017 unless earlier terminated hereunder (such period being herein referred to as the “Term”). 

 

1.2.     General.

 

1.2.1.     During the Term, the Executive shall have the title of Executive Vice President – Finance of the Company, which shall be deemed to be a senior management position of the Company reporting to the Chief Executive Officer of the Company and the Board of Directors of the Company. The Company’s Chief Financial Officer and finance staff will report directly to the Executive. Executive shall also serve in such other offices and capacities as may be appointed or delegated by the Chief Executive Officer or the Board from time to time which may include the positions of Chief Financial Officer and/or Principal Financial Officer and/or Principal Accounting Officer of the Company.

 

 

 

 

 

1.2.2.     The Executive shall faithfully and diligently discharge his duties hereunder and use his best efforts to implement the policies established by the Chief Executive Officer and the Board of Directors. The Executive's responsibilities shall include, among other things, to render executive, policy, operations and other management services to the Company of the type customarily provided by persons situated in similar executive and management capacities.

 

1.2.3.     The Executive shall serve the Company loyally, faithfully and to the best of the Employee’s abilities and shall devote the Employee’s full working time and efforts to the performance of the Employee’s duties hereunder. The Executive shall not engage in any business or other activity that interferes with the performance of the Executive’s obligations under this Agreement and, specifically, shall not engage in any business similar to the Company’s business as defined in the Company’s then most recently filed Form 10-K apart from the Employee’s employment hereunder during the Term.

 

	 	
2.
	COMPENSATION

 

            2.1.     Base Salary. During the Term, the Executive shall be entitled to receive a base salary at a rate of Two Hundred and Eighty Thousand Dollars ($280,000) per annum during the first twelve months of the Term, and a base salary at the rate of Two Hundred and Ninety Thousand dollars ($290,000) per annum during the second twelve months of the Term (“Base Salary”). The Base Salary shall be payable in arrears in equal installments not less frequently than on a monthly basis in accordance with the payroll practices of the Company. The Base Salary may be increased by the recommendation of the Compensation Committee of the Board of Directors and as approved by the majority vote of the entire Board.

 

2.2.     Signing Bonus. The Company shall pay the Executive a signing bonus equal to $75,000, payable in two installments as follows: the first installment of $40,000 shall be payable on the ninetieth (90th) day after the Effective Date and the second installment of $35,000 shall be payable on July 1, 2016, provided in each case that the Executive is still employed with the Company on the applicable payment date.

 

 

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2.3     Initial Performance Bonus. The Executive shall be entitled to a guaranteed bonus equal to $100,000, which represents a six month performance bonus, to be paid no later than December 31, 2015 provided the Executive remains employed until such payment date. At least $80,000 of such bonus shall be paid in cash and the remainder shall be payable in cash or fully vested shares of common stock in the discretion of the Company.

 

2.4     Annual Performance Bonus. Beginning with the first fiscal year that begins after the Effective Date (i.e. October 1, 2015), the Executive will be paid a bonus with respect to each fiscal year (the “Bonus”) at such time and in such amount as determined by the Compensation Committee of the Board, but not later than the December 15th immediately following the fiscal year end. Executive will be included in the Executive Bonus Pool for senior executive officers. Except as provided herein, the Executive must be employed with the Company on the last day of the fiscal year in order to receive a Bonus for such year. Notwithstanding the foregoing, upon termination of employment due to expiration of the Term on April 30, 2017 (or any extended Term) (and not due to early termination pursuant to Sections 5.1.1 through 5.1.6), the Executive shall be eligible to receive a pro-rata Bonus for the fiscal year in which his employment terminates equal to the Bonus he would have received had he remained employed through the end of the fiscal year multiplied by a fraction, the numerator of which is the number of days he worked during the 2017 fiscal year and the denominator of which is 365. Such pro-rata bonus shall be paid at the same time the Bonus otherwise would have been payable if employment continued.

 

 

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2.5     Initial Option Grant. On the Effective Date, the Company shall grant to the Executive, non-qualified options to purchase up to 180,000 shares of common stock of the Company pursuant to the Company’s 2013 Omnibus Incentive Plan or any other stock option plan of the Company in effect at the time of grant (the “Plan”). Such options shall vest according to the following vesting schedule: (i) 60,000 options shall vest immediately upon grant, one third of such options shall have an exercise price of $4.50 per share, one third of such options shall have an exercise price of $5.50 per share and one third of such options shall have an exercise price of $6.00 per share; (ii) 60,000 options shall vest on the first anniversary of the Effective Date, one third of such options shall have an exercise price of $4.50 per share, one third of such options shall have an exercise price of $5.50 per share and one third of such options shall have an exercise price of $6.00 per share; (iii) and 60,000 options shall vest on the second anniversary of the Effective Date, one third of such options shall have an exercise price of $4.50 per share, one third of such options shall have an exercise price of $5.50 per share and the remainder of such options shall have an exercise price of $6.00 per share. Notwithstanding the foregoing, the options granted pursuant to this paragraph that are unvested as of a Change in Control (as defined in the Plan) shall become immediately vested upon the Change in Control, provided the Executive is still employed with the Company at such time.

 

2.6.     Additional Compensation. In addition to the Base Salary and the bonuses as described above, the Executive shall be entitled to receive such other cash bonuses and such other compensation in the form of stock, stock options or other property or rights as may from time to time be awarded him by the Compensation Committee or the Board during or in respect of his employment hereunder. The Base Salary, the bonuses and such other compensation may be increased by the recommendation of the Compensation Committee of the Board and as approved by the majority vote of the entire Board.

 

2.7.     Reimbursement of Expenses. The Company shall reimburse the Executive for the reasonable expenses incurred by him in the performance of his duties hereunder, in accordance with current practice, including, without limitation, those incurred in connection with business related travel or entertainment, provided that the Executive properly accounts for such expenses in accordance with Company policy.

 

 

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3.
	PLACE OF PERFORMANCE

 

In connection with his employment by the Company, the Executive shall be based in the New York City Metropolitan Area, subject to the mutual agreement of the Executive and Company to relocate him to another office of the Company.

 

	 	
4.
	EMPLOYEE BENEFITS

 

4.1.     Benefit Plans. The Executive shall, during the Term, be included, to the extent eligible thereunder, in all employee benefit plans, programs or arrangements of general application (including, without limitation, any plans, programs or arrangements providing for retirement benefits, options and other equity-based incentive compensation, profit sharing, bonuses, disability benefits, health and life insurance, or vacation and paid holidays) which shall be established by the Company, for, or made available to, its respective senior executives (“Benefits”). During the Term, the Benefits described in this paragraph 4 may only be reduced as a result of a general reduction for all senior executives of the Company.

 

4.2.     Vacation. The Executive shall be entitled to not less than four (4) weeks vacation at full pay for each year during the Term. Such vacation may be taken in the Executive’s discretion, and at such time or times as are not inconsistent with the reasonable business needs of the Company.

 

	 	
5.
	TERMINATION OF EMPLOYMENT

 

5.1.     General. The Executive’s employment may be terminated with or without cause prior to the expiration of the Term only on the following circumstances:

 

 

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5.1.1.     Death. The Executive’s employment shall terminate upon his death.

 

5.1.2.     Disability. If, as a result of the Executive’s Disability (as defined below), the Executive shall have been absent from his duties under this Agreement for ninety (90) consecutive days, or for an aggregate of one hundred twenty (120) days during any 360 consecutive day period, the Company may terminate the Executive’s employment upon fifteen (15) days prior written notice following the last day of such ninety (90) day or one hundred twenty (120) day period as the case may be. For purposes hereof, “Disability” shall mean that the Executive is unable to perform his normal and customary duties hereunder as a result of physical or mental incapacity, illness or disability.

 

5.1.3     Termination by the Company for Cause. The Company may terminate the Executive’s employment for Cause. Termination for “Cause” shall mean termination of the Executive’s employment because of the occurrence of any of the following as determined by the Board. 

 

(i)     the failure or refusal by the Executive to substantially perform his obligations under this Agreement or any directive of the Board which is not inconsistent with the terms of this Agreement, or any material breach of this Agreement by the Executive (other than any such failure resulting from the Executive’s Disability) or of any of the Company’s policies or procedures; provided, however, that the Company shall have provided the Executive with written notice that such actions are occurring and the Executive has been afforded a reasonable opportunity of at least ten (10) days to cure same; or

 

(ii)     the indictment of the Executive for a felony or other crime involving moral turpitude or dishonesty, or the conviction of the Executive or the plea of nolo contendere by the Executive to a misdemeanor (other than traffic infractions); or

 

 

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(iii)      a material breach of Section 7 or Section 8 hereof or a breach of any representation contained in this Agreement by the Executive; or

 

(iv)      a breach of fiduciary duty to the Company involving personal profit; or

 

(v)      an act of dishonesty in connection with his employment with the Company; or

 

(vi)      the Executive’s possession or use of illicit drugs or a prohibited substance, to the extent that in the reasonable determination of the Board it impairs his ability to perform his duties and responsibilities; or

 

(vii)      the Executive having committed acts or omissions constituting gross negligence or willful misconduct (including theft, fraud, embezzlement, and securities law violations) which is injurious to the Company, monetarily; or

 

(viii) the Executive having committed any material violation of, or material noncompliance with, any securities law, rule or regulation or stock exchange or Nasdaq Stock Market regulation rule relating to or affecting the Company; or

 

(ix) the Executive’s material failure or refusal to honestly provide a certificate in support of the chief executive officer’s and/or principal executive officer’s certification required under the Sarbanes-Oxley Act of 2002, or any other filings under the federal securities laws including the rules and regulations promulgated thereunder.

 

 

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5.1.4.     Termination by the Executive for Good Reason. The Executive may terminate his employment for Good Reason (as defined below) by delivering to the Board written Notice of Termination, as defined below. “Good Reason” means that, without the express written consent of the Executive, any of the following events occurs: (i) there is any material reduction or diminution (except temporarily during any period of Disability) in the Executive’s authority, duties or responsibilities with the Company; (ii) the Executive is required to report to someone other than the Company’s Chief Executive Officer or the Board of Directors; or (iii) there is a material breach by the Company of any material provision of this Agreement, including a material reduction in the Base Salary or the relocation of the Executive’s principal place of employment from the New York Metropolitan area and, in any such case, within 90 days following the occurrence of an event described in (i), (ii) or (iii) the Executive notifies the Company that such event has occurred, and the Company fails to cure the event (and the Executive does not waive the Company’s failure to cure the event) within thirty (30) days after its receipt of such notice.

 

5.1.5     Termination by the Company Without Cause. The Company may terminate the Executive’s employment for any reason at any time, other than for Disability or Cause.

 

5.1.6     Termination by the Executive Without Good Reason. The Executive may terminate his employment with the Company without Good Reason upon thirty (30) days prior written notice (which notice period may be waived by the Company).

 

5.2.     Notice of Termination. Any termination of the Executive’s employment by the Company or by the Executive (other than termination by reason of the Executive’s death) shall be communicated by written Notice of Termination to the other party of this Agreement. For purposes of this Agreement, a “Notice of Termination” shall mean a notice which shall indicate the specific termination provision in this Agreement relied upon and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive’s employment, if applicable, under the provision so indicated.

 

 

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5.3.     Date of Termination. The “Date of Termination” shall mean (i) if the Executive’s employment is terminated by his death, the date of his death, (ii) if the Executive’s employment is terminated pursuant to subsection 5.1.2 above, fifteen (15) days after Notice of Termination is given, (iii) if the Executive’s employment is terminated pursuant to subsection 5.1.3 above, the date specified in the Notice of Termination after the expiration of any applicable cure periods, if any, (iv) if the Executive’s employment is terminated pursuant to subsection 5.1.4 above, thirty-one days after the Company receives the Executive’s notice of the event constituting Good Reason (provided the Company did not cure the event (unless the Executive waives the Company’s failure to cure and elects to remain employed)), and (v) if the Executive’s employment is terminated for any other reason, the effective date of termination set forth in the Notice of Termination. Notwithstanding the foregoing, for purposes of determining the right to, or timing of, any payments that are subject to Section 409A or intended to qualify as a separation pay plan under Section 409A, the Date of Termination shall be the date on which the Executive experiences a “separation from service” as defined in Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”).

 

5.4     Compensation Upon Termination. 

 

5.4.1     Termination for Cause, Without Good Reason or Due to Death or Disability. If prior to the expiration of the Term, the Company terminates the Executive’s employment due to Disability or for Cause, the Executive terminates his employment without Good Reason or employment terminates as a result of the Executive’s death, the Company shall (i) pay the Executive his Base Salary through the Date of Termination (at the rate in effect at the time Notice of Termination is given), in accordance with the Company’s regular payroll practice (unless earlier payment is required under applicable law), (ii) reimburse the Executive for all reasonable business expenses incurred prior to the Date of Termination, within sixty (60) days of the Date of Termination provided the Executive provides proper substantiation no later than ten (10) days after the Date of Termination and (iii) pay or provide to the Executive all accrued benefits that are payable to the Executive pursuant to any employee benefit plan of the Company at the time and in the manner provided under the applicable plan and (iv) pay any Bonus earned but not yet paid for a prior fiscal year at the time set forth in Section 2.4 (the amounts described in (i) through (iv) collectively referred to herein as the “Accrued Obligations” and the Company shall have no further obligation with respect to this Agreement). The Executive shall not be entitled to any Bonus for the fiscal year in which his termination occurs or any subsequent fiscal year.

 

 

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5.4.2     Termination Without Cause or for Good Reason 

 

                       (a) If the Company terminates Executive’s employment without Cause (other than due to Disability) or the Executive terminates his employment for Good Reason prior to expiration of the Term, the Company shall pay to the Executive all Accrued Obligations, which for purposes of this subsection shall include any unpaid signing bonus and the prorated Annual Performance Bonus. In addition, provided the Executive signs a general release in favor of the Company and its affiliates (a “Release”) within forty-five (45) days of his Date of Termination, and does not revoke such Release, the Company shall pay the Executive severance (“Severance”) equal to one year of Base Salary (at the rate in effect as of the Date of Termination), payable in equal installments (no less frequently than monthly) in accordance with the Company’s regular payroll practices, beginning on the first regular payroll date after the revocation period for the Release has expired and continuing for twelve months thereafter (the “Severance Period”). Notwithstanding the foregoing, to the extent any portion of the Severance is considered to be deferred compensation subject to Section 409A, if the forty-five day period for signing the Release plus the applicable revocation period begin in one calendar year and end in another calendar year, any installments of Severance that otherwise would have been paid during that period will be accumulated and paid in the second calendar year (on the first payroll date in such year following expiration of the revocation period) and all other installments of Severance will be paid when otherwise due. To the extent any portion of the Severance or other amounts, the timing of which depends on the Executive’s Date of Termination, constitute deferred compensation subject to Section 409A, if the Executive is a “specified employee” within the meaning of Section 409A as of his separation from service (as determined in accordance with the methodology established by the Company), such portion of the Severance or other amounts that otherwise would have been paid during the “Applicable Period” shall be accumulated and paid in a lump sum on the first business day following the end of the Applicable Period. The “Applicable Period” is the period beginning on the Executive’s separation from service and ending on the first date that is six (6) months after the Executive’s separation from service or if sooner, the first business day after the Executive’s death.

 

 

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Additionally, (in the event of a termination by the Company without Cause (other than due to Disability) or by the Executive for Good Reason) any options granted pursuant to Section 2.5 that are outstanding, but not vested, as of the Date of Termination shall become vested and exercisable as set forth in the applicable option agreement.

 

5.4.3. Termination Due to Non-Renewal by Company. If not previously terminated for any reason prior to the expiration of the Term of this Agreement and either party does not wish to continue the employment relationship, this Agreement and the Executive’s employment shall terminate on such expiration date. If the Company gives notice that it does not wish to extend the Term, enter into a new agreement or renew the Agreement (collectively, “Renewal”) at least ninety (90) days prior to the end of the Term, the employment will terminate at the end of the Term and Executive shall only be entitled to the Accrued Obligations. If the Company provides less than ninety (90) days’ notice, then the Company shall pay the Executive an amount equal to Base Salary, at its then current daily rate, for the excess of ninety (90) days over the number of days notice of non-Renewal the Company gave the Executive prior to expiration of the Term. Such amount (if any) shall be payable in equal installments (no less frequently than monthly) at the daily rate of Base Salary payments in effect immediately prior to termination, beginning with the first payroll period following the Executive’s separation from service. In addition, Executive shall be entitled to receive at the end of the Term, in the event this Agreement terminates at the expiration of the Term, a severance payment equal to ninety (90) days of Base Salary, payable in the same manner and same time as set forth in the immediately preceding sentence. To the extent they constitute deferred compensation subject to Section 409A, the payments shall be subject to the delay during the Applicable Period set forth in Section 5.4.2.

 

 

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                         5.4.4. Death During Severance Period. In the event of the Executive’s death during the Severance Period, any severance payments shall continue to be made in accordance with their terms during the remainder of the Severance Period to the beneficiary designated in writing for such purpose by the Executive or, if no such beneficiary is specifically designated, to the Executive’s estate.

 

	 	
6.
	INSURABILITY; RIGHT TO INSURE

 

During the continuance of the Executive’s employment hereunder, the Company shall have the right to maintain key man life insurance in its own name covering the Executive’s life in such amount as shall be determined by the Company, for a term ending on the termination or expiration of this Agreement. The Executive shall use his reasonable best efforts to assist the Company in procuring of such insurance by submitting to the required medical examinations, if any, and by filling out, executing and delivering truthful applications and other instruments in writing as may be reasonably required by an insurance company or companies to which application or applications for insurance may be made by or for the Company.

 

	 	
7.
	
PROPRIETARY INFORMATION; CONFIDENTIALITY; NON-COMPETITION; NONSOLICITATION

 

7.1.     The term “Proprietary Information” means information that was or is developed by, became or becomes known by, or was or is assigned or otherwise conveyed to or required by the Company, and which has any commercial or economic value, actual or potential, in the Company’s business, and includes, without limitation, trade secrets, copyrights, ideas, techniques, know-how, inventions (whether patentable or not), and/or any other information of any type relating to designs, configurations, toolings, documentation, recorded data, schematics, source code, object code, master works, master databases, algorithms, flow charts, formulae, circuits, works of authorship, mechanisms, research, manufacture, improvements, assembly, installation, intellectual property including patents and patent applications, business plans, past or future financing, marketing, forecasts, pricing, customers, vendors, costs, the salaries, duties, qualifications, performance levels, and terms of compensation of other employees, and/or cost, financial statements or other financial data concerning any of the foregoing or the Company and its operations generally. The Executive understands that the provision of his employment creates a relationship of confidence and trust between him and the Company with respect to the Company and the Proprietary Information of the Company and its customers which may be learned by the Executive during the period of the Executive’s employment.

 

 

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7.2      The Executive acknowledges and agrees that all Proprietary Information and all patents, copyrights, trade secret rights, rights with respect to mask works and other rights (including throughout, without limitation, any extensions, renewals, continuations or divisions of any of the foregoing) in connection therewith shall be the sole property of the Company. To the extent that, for any reason, such Proprietary Information or rights may not vest in the Company, the Executive hereby sells, transfers, conveys and assigns to the Company any such rights or rights he may have or acquire in such Proprietary Information. At all times, both during the Term and thereafter, the Executive will keep in strict confidence and trust and will not use or disclose any Proprietary Information or anything relating to it to any other person, whether or not for reasons of gain, without the written consent of the Company, except as may be necessary in the ordinary course of performing his duties to the Company. The Executive will defend the Company against all claims, actions, suits, or other proceedings against the Company arising out of or resulting from breach of this Section 7, and shall indemnify and hold the Company harmless from and against all judgments, losses, liabilities, damages, costs and expenses (including without limitation, reasonable attorneys’ fees and attorneys’ disbursements) arising out of or incurred in connection with all such claims, actions, suits or other proceedings.

 

7.3      In the event of the termination of the Executive’s employment, whether by the Company or the Executive, for any reason, the Executive shall return all documents, records, apparatus, equipment and other physical property, or any reproduction of such property, whether or not pertaining to Proprietary Information, furnished to the Executive by the Company or produced by the Executive or others in connection with the Executive’s employment immediately as and when requested by the Company.

 

 

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7.4      During the Term of this Agreement and for a period of two (2) years thereafter (whether or not this Agreement has been terminated by the Company or the Executive for any reason prior to the expiration of the Term), the Executive will not, either directly or through others: 

 

(a)     solicit, cause to be solicited, or attempt to solicit any employee, independent contractor, consultant or customer or client of the Company to terminate his relationship with the Company in order to become an employee, consultant, independent contractor, customer or client to or for any other person or entity, or otherwise encourage or solicit any employee, consultant, independent contractor, customer or client of the Company to leave the Company for any reason or to devote less than all of any such employee’s efforts to the affairs of the Company; or 

 

(b)     take any action which constitutes an interference with or a disruption of any of the business activities of the Company.

 

7.5      During the Term of this Agreement and for a period of six (6) months thereafter (whether or not this Agreement has been terminated by the Company or the Executive for any reason prior to the expiration of the Term), the Executive will not, either directly or through others: engage, directly or indirectly, or have an interest, directly or indirectly, anywhere in the United States of America or any other geographic area where the Company does business or in which its products or services are marketed, alone or in association with others, as principal, officer, agent, employee, director, partner or stockholder (except with respect to the Executive's employment by the Company), or through the investment of capital, lending of money or property, rendering of services or otherwise, in any business competitive with or substantially similar to the businesses engaged in by the Company during the Term of this Agreement (it being understood hereby, that the ownership by the Employee of five percent (5%) or less of the stock of any company listed on a national securities exchange shall not be deemed a violation of this Section 7.5). Notwithstanding anything in this Section 7.5 to the contrary, Executive shall only be bound by the provisions of this Section during the period he is receiving any monies from the Company.

 

 

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7.6      At no time during the Term, or thereafter shall the Executive directly, or indirectly, disparage the commercial, business or financial reputation of the Company.

 

7.7     The Executive represents that his performance of services hereunder will not breach any agreement or obligation to keep in confidence Proprietary Information acquired by him in confidence or in trust prior to the Executive’s provision of services hereunder. The Executive has not entered into, and the Executive agrees that he will not enter into, any agreement either written or oral in conflict with this Agreement or in conflict with his employment hereunder.

 

7.8     During the Executive’s employment hereunder, the Executive will not improperly use or disclose any confidential information or trade secrets, if any, of any former employer or any other person to whom the Executive has an obligation of confidentiality, and the Executive will not bring onto the premises of the Company any unpublished documents or any property belonging to any former employer or any other person to whom the Executive has an obligation of confidentiality unless expressly authorized in writing by that former employer or person. The Executive will use in the performance of his services only information which is generally known and used by persons with training and experience comparable to his own, which is common knowledge in the industry or otherwise legally in the public domain, or which is otherwise provided or developed by the Company.

 

 

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7.9     In the event that the Executive is no longer employed by the Company, he hereby consents to the notification of any new employer of his rights and obligations under this Agreement.

 

7.10     Without intending to limit the remedies available to the Company, including damages for breach of contract, the Executive acknowledges that a breach of any of the covenants contained in this Section 7 may result in material and irreparable injury to the Company, or its affiliates or subsidiaries, for which there is no adequate remedy at law, that it will not be possible to measure damages for such injuries precisely and that, in the event of such a breach or threat the Company shall be entitled to seek a temporary restraining order and/or a preliminary or permanent injunction restraining the Executive from engaging in activities prohibited by this Section 7 or such other relief as may be required specifically to enforce any of the covenants in this Section 7. The Executive hereby acknowledges and agrees that the type and periods of restrictions imposed in this Section 7 are fair and reasonable and are reasonably required for the protection of the Company’s confidential information and the goodwill associated with the business of the Company. Further, the Executive acknowledges and agrees that the restrictions imposed in this Section 7 will not prevent his from obtaining suitable employment after his employment with the Executive ceases or from earning a livelihood. If for any reason it is held that the restrictions under this Section 7 are not reasonable or that consideration therefor is inadequate, such restrictions shall be interpreted or modified to include as much of the duration and scope identified in this Section as will render such restrictions valid and enforceable.

 

7.11     For the purposes of this Section 7, the Company shall include any and all of its subsidiaries and affiliates.

 

 

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8.
	EXECUTIVE’S COOPERATION

 

During the Term and thereafter, the Executive shall cooperate with the Company in any internal investigation or administrative, regulatory or judicial proceeding as reasonably requested by the Company (including, without limitation, the Executive being available to the Company upon reasonable notice for interviews and factual investigations, appearing at the Company’s request to give testimony without requiring service of a subpoena or other legal process, volunteering to the Company all pertinent information and turning over to the Company all relevant documents which are or may come into the Executive’s possession, all at times and on schedules that are reasonably consistent with the Executive’s other permitted activities and commitments).

 

	 	
9.
	RIGHTS OF INDEMNIFICATION

  

The Company shall indemnify the Executive to the fullest extent permitted by the General Corporation Law of the State of Delaware, as amended from time to time, for all amounts (including without limitation, judgments, fines, settlement payments, expenses and attorney’s fees) incurred or paid by the Executive in connection with any action, suit, investigation or proceeding arising out of or relating to the performance by the Executive of services for, or the acting by the Executive as a director, officer or employee of the Company, or any other person or enterprise at the Company’s request.

 

 

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10.
	MISCELLANEOUS

 

10.1.     Notices. All notices or communications hereunder shall be in writing, addressed as follows:

 

	 	 
	
To the Company:
	
National Holdings Corporation

410 Park Avenue, 14th Floor

New York, New York 100221

Attn: Chief Executive Officer

	 	 
	 	 
	
To Glenn C. Worman:
	
385 Princeton Avenue

Brick, New Jersey  08724

	 	 
	
 
	  

All such notices shall be conclusively deemed to be received and shall be effective (i) if sent by hand delivery, upon receipt, (ii) if sent by telecopy or facsimile transmission, upon confirmation of receipt by the sender of such transmission, (iii) if sent by overnight courier, one business day after being sent by overnight courier, or (iv) if sent by registered or certified mail, postage prepaid, return receipt requested, on the fifth day after the day on which such notice is mailed.

 

10.2.     Severability. Each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement, including the provisions of Section 7, is held to be prohibited by or invalid under applicable law, such provision will be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement.

 

10.3.     Binding Effect; Benefits. Executive may not delegate his duties or assign his rights hereunder. This Agreement shall inure to the benefit of, and be binding upon, the parties hereto and their respective heirs, legal representatives, successors and permitted assigns.

 

 

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10.4.     Entire Agreement. This Agreement represents the entire agreement of the parties and shall supersede any and all previous contracts, arrangements or understandings between the Executive and the Company. This Agreement may be amended at any time by mutual written agreement of the parties hereto. In the case of any conflict between any express term of this Agreement and any statement contained in any employment manual, memo or rule of general applicability of the Company, this Agreement shall control.

 

10.5     Warranty. The Executive hereby represents and warrants as follows: (i) that the execution of this Agreement and the discharge of the Executive’s obligations hereunder will not breach or conflict with any other contract, agreement, or understanding between the Executive and any other party or parties; and (ii) the Executive’s resume which was provided to the Company by the Executive and other statements made about the Executive’s employment history to the Company by the Executive are true, accurate and complete in all material respects.

 

10.6     Withholding. The payment of any amount pursuant to this Agreement shall be subject to applicable withholding and payroll taxes, and such other deductions as may be authorized or required under the Company’s employee benefit plans, if any.

 

10.7     Governing Law; Consent to Personal Jurisdiction. 

 

(a) This Agreement shall be deemed to have been made and delivered in New York, New York and shall be governed as to validity, interpretation, construction, effect and in all other respects by the internal laws of the State of New York. 

 

(b) At the Company’s option, any dispute or controversy under this Agreement shall be determined in an arbitration proceeding before three (3) arbitrators of the AAA; or in a lawsuit in New York, New York. The award in any arbitration hereunder shall be final, and judgment upon the award rendered may be entered in any court, state or Federal, having jurisdiction and the parties hereby submit to the jurisdiction of any such court for the purpose of such arbitration and the entering of such judgment. 

 

 

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(c) The venue of the arbitration or the Supreme Court action shall be New York, New York.

 

(d) The prevailing party in any arbitration or lawsuit shall recover from the other party all costs and disbursements of the arbitration or lawsuit, including reasonable legal fees within sixty (60) days after such arbitration award or judgment is rendered.

 

(e) The parties further agree to accept and acknowledge service of any and all process which may be served in any such suit, action or proceeding, and agree that service of process upon either such party may be made in accordance with Section 10.1 of this Agreement and shall be deemed in every respect effective service of process upon such party, in any such suit, action or proceeding. 

 

10.8     Execution in Counterparts. This Agreement may be executed by the parties in one or more counterparts, each of which shall be deemed to be an original but all of which taken together shall constitute one and the same agreement, and shall become effective when one or more counterparts has been signed by each of the parties hereto and delivered to each of the other parties hereto. A photocopy or electronic facsimile of this Agreement or of any signature hereon shall be deemed an original for all purposes.

 

10.9     Survival. The provisions of Sections 7 and 8 of this Agreement shall survive the termination of this Agreement.

 

10.10     Section 409A Omnibus Provision. Notwithstanding any other provision of this Agreement, it is intended that any payment or benefit that is provided pursuant to this Agreement that may be considered deferred compensation subject to Section 409A shall be provided and paid in a manner, and at such time, as complies with the applicable requirements of Section 409A or that meets an applicable exemption from Section 409A. Notwithstanding any other provision of this Agreement, the Company's Compensation Committee or Board of Directors is authorized to amend this Agreement in such manner as may be determined by it to be necessary or appropriate to comply, or to evidence or further evidence required compliance, with Section 409A of the Code. Notwithstanding the foregoing or any other provision of this Agreement, neither the Company, nor any of its affiliates, nor any of their officers, directors, employees or representatives shall be liable to the Employee for any interest, taxes or penalties resulting from non-compliance with Section 409A. 

 

 

20

 

 

For purposes of this Agreement, all rights to payments and benefits hereunder shall be treated as rights to receive a series of separate payments and benefits to the fullest extent allowed by Section 409A of the Code. 

 

To the extent they constitute deferred compensation under Code Section 409A, the amount of expenses eligible for reimbursement, or in-kind benefits provided, during one calendar year may not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year. Any such reimbursement of an eligible expense shall be made promptly after proper substantiation of such expense, but in no event later than the last day of the calendar year following the calendar year in which the expense was incurred. The right to reimbursement or in-kind benefits is not subject to liquidation or exchange for any other benefit.

 

10.11     Legal Advice. The Executive acknowledges that he has had the opportunity to receive independent tax and legal advice from attorneys of its choice with respect to the advisability of executing this Agreement.

 

 

 

21

 

 

IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed and the Executive has hereunto set his hand, as of the day and year first above written:

 

	
 
	
COMPANY:
	
 

	 	 	 
	 	NATIONAL HOLDINGS CORPORATION	 
	 	 	 
	
 
	
By: 
	
/s/ Robert B. Fagenson
	
 

	
 
	
Name: 
	
Robert B. Fagenson
	
 

	
 
	
Title: 
	
Chairman and Chief Executive Officer
	
 

	 	 	 	 
	 	 	 	 
	 	EXECUTIVE:	 
	 	 	 
	 	/s/ Glenn C. Worman	 
	 	 	 
	 	Glenn C. Worman	 

 

 

 

 

 

 

 

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