Document:

Exhibit 10.4 Form of Restricted Stock Unit Award Agreement

Exhibit 10.4
AWARD AGREEMENT
CST Brands, Inc. Amended and Restated 2013 Omnibus Stock and Incentive Plan
Employee Restricted Stock Unit Award
This Award Agreement (this “Agreement”) is between CST Brands, Inc., a Delaware corporation (“Company”), and [___________], an Employee of the Company or one of its affiliates (“Participant”), who agree as follows:
Introduction.  Pursuant to the CST Brands, Inc. Amended and Restated 2013 Omnibus Stock and Incentive Plan (as amended, effective June 4, 2014, and as may be further amended from time to time, the “Plan”), on [___________] (“Date of Grant”), Participant was awarded [____] Restricted Stock Units (as defined in the Plan) under the Plan.  The parties hereby enter into this Agreement to evidence the terms, conditions and restrictions applicable to the Restricted Stock Units.
The Plan, Restrictions, Vesting.  The Plan is incorporated herein by reference for all purposes, and Participant hereby agrees to the terms and conditions stated therein applicable to the Restricted Stock Units and the rights and powers of Company and the Committee as provided therein.  In addition, Participant agrees as follows:
Non-Transferrable.  Except to the extent otherwise provided in the Plan or this Agreement, the Restricted Stock Units issued to Participant under the Plan may not be sold, exchanged, pledged, hypothecated, transferred, garnished or otherwise disposed of or alienated at any time. 
Vesting.  Except to the extent otherwise provided in Section 2(c), Participant’s rights to and interest in the Restricted Stock Units shall vest and accrue to Participant in the following increments, provided Participant has continually remained an Employee through such dates: «Shares_Period_1» shares vest on «Vest_Date_Period_1»; «Shares_Period_2» shares vest on «Vest_Date_Period_2»; and «Shares_Period_3» shares vest on «Vest_Date_Period_3».
Termination of Service.  Except as otherwise provided below following a Change of Control, if Participant’s employment is voluntarily terminated by the Participant, or is terminated by the Company with or without Cause, then the Restricted Stock Units that remain unvested shall automatically lapse and be forfeited at the close of business on the date of Participant’s termination of employment or service, except for as follows:
(i)Death, Disability or Retirement.  If Participant’s employment is terminated because of Retirement, death or Disability, the Restricted Stock Units that remain unvested shall remain outstanding and vest according to the schedule set forth in Section 2(b) as if Participant continually remained an Employee through such dates; and
(ii)Termination in Connection with a Change of  Control.  If (A) the Award remains outstanding, or is otherwise assumed or replaced by a surviving or successor corporation following a Change of Control with a substantially similar award (a “Replacement Award”) and (B) Participant’s employment is involuntarily terminated by the Company other than for Cause, or Participant terminates such employment for Good Reason upon, or within two years following, the effective date of such Change of Control, the Restricted Stock Units that remain unvested on or prior to such date of termination shall fully vest.
Delivery of Shares Upon Vesting.  Upon the vesting of each Restricted Stock Unit subject to this Agreement, Participant will be entitled to receive a share of Common Stock (as defined in the Plan).  Subject to Section 2(f) herein, the delivery of shares of Common Stock under this Plan upon vesting of Restricted Stock Units shall be made on or as soon as reasonably practical following the applicable date of vesting, but in any event within sixty (60) days of the applicable date of vesting.
Dividend Equivalent.  Notwithstanding Section 4 herein, in addition to the right to receive Common Stock upon vesting as described in Section 2(b) above with respect to each Restricted Stock Unit, Participant will be entitled to receive periodic cash payments in relation to dividends that are paid on Common Stock (the “Dividend Equivalent”).  For purposes of the settlement of a Dividend Equivalent under this Agreement, Participant will be deemed to be a holder of one share of Common Stock for each unvested Restricted Stock Unit held by Participant.  As and when dividends are declared on Common Stock, in settlement of the Dividend Equivalent granted hereunder, Participant will be entitled to receive a cash payment equal to the product of: (i) the declared dividend per share of Common Stock, multiplied by (ii) the number of unvested Restricted Stock Units held by Participant on the dividend record date.  Cash payments in settlement of any Dividend Equivalent shall be subject to applicable withholding and employment taxes and shall be made upon, or as soon as possible following, payment of the declared dividend to holders of Common Stock, but in no event later than the end of the calendar year in which the respective dividend is paid to holders of Common Stock in accordance with Section 6(c) herein.  Dividend Equivalents relating to a Restricted Stock Unit will terminate 

and be forfeited as of the earliest to occur of: (i) the lapsing and forfeiture of the Restricted Stock Unit as provided in the Plan or (ii) the vesting of such Restricted Stock Unit in accordance with Section 2(b) above.
Book Entry Shares.  Participant agrees that in lieu of certificates representing Participant’s shares of Common Stock acquired pursuant to the vesting of Restricted Stock Units, shares may be issued in uncertificated form pursuant to the Direct Registration System (“DRS”) of Company’s stock transfer agent.
Restructuring or Reorganization.  If, as the result of a stock split, stock dividend, combination of shares or any other change, including an exchange of securities for any reason, the Participant shall be entitled to new or additional or different shares of stock or securities, such stock or securities shall be subject to the terms and conditions of the Plan and this Agreement.
Change of Control.  In addition to the rights provided under Section 2(c)(ii), unless otherwise specifically prohibited under applicable law, or by the rules of any governmental agency or authority or national securities exchange on which any shares of Company’s capital stock is then listed or traded, the Committee may, in its sole discretion, at any time prior to, coincident with, or after the time of a Change of Control, take one of the following actions:
		
	(a)
	provide for the acceleration of any time periods, or the waiver of any other conditions, relating to the vesting of the Restricted Stock Units if Participant’s employment has been terminated as a result of a Change of Control so that the Restricted Stock Units may be vested in full on or before a date fixed by the Committee;

		
	(b)
	provide for the purchase of the outstanding Restricted Stock Units from Participant if Participant’s employment has been terminated from and after a Change of Control, upon Participant’s request, for an amount of cash equal to the amount that would have been obtained upon the vesting of all Restricted Stock Units; or

		
	(c)
	cause the Award of the Restricted Stock Units to be assumed or a Replacement Award issued therefor, by the surviving corporation in such Change of Control.

No Stockholder Rights.  Participant shall not have any rights of a stockholder of the Company with respect to any shares of Common Stock issuable upon the vesting of Restricted Stock Units subject to this Agreement (including the right to vote and to receive dividends and other distributions paid with respect to shares of Common Stock), unless and until, and only to the extent, the Restricted Stock Unit Award is settled by the issuance of such shares of Common Stock to Participant.
Miscellaneous.  All capitalized terms contained in this Agreement shall have the definitions set forth in the Plan unless otherwise defined herein.  This Agreement shall be binding upon the parties hereto and their respective beneficiaries, heirs, administrators, executors, legal representatives and successors.
Code Section 409A.  This Agreement and the award evidenced hereby are intended to comply in all respects with Section 409A of the Code and the final regulations promulgated thereunder (the “Treasury Regulations”) and shall be interpreted and administered in such a manner.  If necessary in order to ensure such compliance, this Agreement may be reformed consistent with guidance issued by the Internal Revenue Service.  In no event shall the Company be liable for any additional tax, interest or penalties that may be imposed on Participant under Section 409A of the Code or any damages for failing to comply with Section 409A of the Code.
Six Month Delay upon Termination of Service.  Notwithstanding any provision of this Agreement to the contrary, if all or any portion of the payments under this Agreement are determined to be “nonqualified deferred compensation” subject to Section 409A of the Code, and the Company determines that Participant is a “specified employee” as defined in Section 409A(a)(2)(B)(i) of the Code and the Treasury Regulations and other guidance issued thereunder, then such payments (or portion thereof) made on account of a termination of service shall commence no earlier than the first day of the seventh month following Participant’s termination of service (with the first such payment being a lump sum equal to the aggregate payments and/or benefits Participant would have received during such six-month period if no such payment delay had been imposed.)  For purposes of this Section 6(a), “termination of service” shall mean Participant’s “separation from service”, as defined in Section 1.409A-1(h) of the Treasury Regulations, including the default presumptions thereunder.  
Separate Payments.  Wherever payments under this Agreement are to be made in installments, each such installment shall be deemed to be a separate payment for purposes of Code Section 409A.
Dividend Equivalents.  In accordance with Section 1.409A-3(e) of the Treasury Regulations, the right to payment under Dividend Equivalents with respect to Restricted Stock Units are treated separately from the right to receive Common Stock under a Restricted Stock Unit for purposes of designating the time and form of payment.  Dividend Equivalents shall be treated as credited in the same calendar year in which the dividend on Common Stock is paid to an eligible shareholder, and all Dividend Equivalents will be paid no later than the same calendar year in which such Dividend Equivalents are so credited.

Definitions.  For the purposes of this Agreement, the following terms shall have the meanings as indicated:
“Cause” means (i) the willful and continued failure by Participant substantially to perform Participant’s duties with the Company or any of its Subsidiaries (other than any such failure resulting from Participant’s incapacity due to physical or mental illness), after a written  demand for substantial performance is delivered to Participant by the Company that specifically identifies the manner in which the Company believes that Participant has not substantially performed Participant’s duties, or (ii) the willful engaging by Participant in conduct demonstrably and materially injurious to the Company, or (iii) a conviction of, a plea of nolo contendere, a guilty plea, or confession by Participant to, an act of fraud, misappropriation or embezzlement or any crime punishable as a felony or any other crime that involves moral turpitude.  For purposes of this definition, no act, or failure to act, on the part of Participant shall be considered “willful” unless done, or omitted to be done, by Participant without reasonable belief that Participant’s action or omission was in the best interests of the Company and was lawful.  With respect to the above definition of “cause”, no act or conduct by Participant will constitute “cause” if Participant acted: (i) in accordance with the instructions or advice of counsel representing the Company, or (ii) as required by legal process.
“Change in Control” shall be deemed to occur upon the earliest to occur after the date of this Agreement of any of the following events:
(i)    Acquisition of Stock by Third Party.  Any Person  is or becomes the Beneficial Owner (as  such term is defined in Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and any rules and regulations promulgated thereunder), directly or indirectly, of securities of the Company representing twent percent (20%) or more of the combined voting power of the Company’s then outstanding shares of capital stock; 
(ii)    Change in Board.  During any period of two (2) consecutive years (not including any period prior to the execution of this Agreement), individuals who at the beginning of such period constitute the Board of Directors of Company (the “Board”), and any new director (other than a director designated by a Person who has effected a transaction described in subparagraph (i) of this definition without the consent of the Board) whose election by the Board or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute a least a majority of the members of the Board;
(iii)    Corporate Transactions.  The effective date of a merger or consolidation of the Company with any other entity, other than a merger or consolidation that would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than a majority of the combined voting power of the voting securities of the surviving entity outstanding immediately after such merger or consolidation which such shares give the holder(s) thereof the power to elect at least a majority of the board or other governing body of such surviving entity;
(iv)   Liquidation.  The approval by the stockholders of the Company of a complete liquidation of the Company or an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets; or
(v)    Other Events.  There occurs any other event of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or a response to any similar item on any similar schedule or form) promulgated under the Act (as defined below), whether or not the Company is then subject to such reporting requirement.
“Disability” means that Participant is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months.  
“Good Reason” means: 
		
	(a)
	the assignment to Participant of any duties inconsistent with Participant’s position (including offices, titles, and reporting requirements), authority duties or responsibilities as in effect immediately prior to the Change in Control, or any other action by Company that results in a diminution in such psotion, authority, duties or responsibilities (excluding for this purpose an isolated, insubstantial and inadvertent action not taken in bad faith);or

		
	(b)
	any requirement that Participant be based at any office or location more than fifty (50) miles from his or her office or location prior to the Change in Control; or 

		
	(c)
	a material diminution in Participant’s base salary and/or annual target bonus; or

		
	(d)
	any failure by Company to continue in effect any cash or stock-based incentive or bonus plan, retirement plan, welfare benefit plan or other compensation, retirement or benefit plan and policy, unless the aggregate value (as computed by an independent benefits consultant selected by Company and reasonably acceptable to Participant or Participant’s legal representative) of the diminution of all such compensation, retirement or benefit plans and policies provided Participant is not materially less than their aggregate value as in effect at any time during the one hundred twenty (120) day period immediately preceding a Change in Control or, if more favorable to Participant, those provided generally at any time after the Change in Control to other peer employees of Participant; or

		
	(e)
	in the event of a Prospective Change in Control, Company and Participant have not received written notice at least five (5) business days prior to the anticipated closing date of the transaction giving rise to the Change in Control from the successor to all or a substantial portion of the Company's business and/or assets that such successor is willing as of the closing to assume and agree to perform Company's obligations under this Agreement in the same manner and to the same extent that Company is hereby required to perform. 

Participant must provide written notice to Company of the existence of the condition(s) described in (a) through (e) above within 90 days of the initial existence of the condition(s).  Company shall have 30 days after such notice is given during which to remedy the condition(s), and such occurrence shall not be deemed to constitute Good Reason if such event or circumstance has been fully corrected by Company within the 30-day cure period and Participant has been reasonably compensated for monetary losses or damages resulting therefrom.  
“Person” means a person (as such term is used in Rule 13d-5 of the SEC promulgated under the Exchange Act), or group (as such term is defined in Sections 3(a)(9) and 13(d)(3) of the Exchange Act and the rules and regulations promulgated thereunder)).
“Prospective Change in Control” shall mean (i) any offer presented, directly or indirectly, to the Board which, if consummated, would constitute a Change in Control, or (ii) any negotiation with the Board or any committee or representative thereof to make such an offer (including the unilateral announcement of the terms on which such an offer would be made).
“Retirement” means any termination of Participant’s service with the Company and its Subsidiaries due to retirement following Participant’s attainment of age fifty-five and completion of five (5) years of service with the Company, any Subsidiary, or Valero or its subsidiaries so long as, for purposes of determining the years of service with Valero or its subsidiaries, the Participant meets the definition of a “Transferred Employee” pursuant to Section 1.50 of the CST Brands, Inc. Savings Plan, as it may be amended (the “Savings Plan”), a copy of which is incorporated herein by reference for all such purposes, but without regard to the requirement that a Transferred Employee had to be a participant in a Predecessor Plan (as defined in the Savings Plan), or other age and/or service requirements as determined by the Committee in the event of early retirement.
“Valero” means Valero Energy Corporation. 

[REMAINDER OF PAGE INTENTIONALLY BLANK]

By your signature and the Company’s signature below, you and the Company agree that the Restricted Stock Unit referenced above and accompanying Dividend Equivalent is granted under and governed by the terms and conditions of this Agreement and the Plan (as may be amended) attached hereto, all of which are made a part of this Agreement.
CST BRANDS, INC.
	
		
	By: ____________________________________
	____________________________________

	Kimberly S. Lubel
Chief Executive Officer and President
	Date

	

Accepted:

_______________________________________
	____________________________________

	Participant: [___________________]
	DateExhibit
10.1

SETTLEMENT
AGREEMENT AND STIPULATION

 

THIS SETTLEMENT AGREEMENT and Stipulation,
dated as of August 22, 2014 (the "Agreement"), by and between plaintiff Tarpon Bay Partners LLC ("TARPON"),
and defendant PROGRESSIVE CARE, INC. (the "Company")

 

BACKGROUND:

WHEREAS,
the Company has bona fide outstanding liabilities in a principal amount of not less than $1,826,005.16; and,

WHEREAS,
these outstanding liabilities are past due; and,

WHEREAS,
TARPON acquired these liabilities pursuant to certain Claim Purchase Agreements) entered into between it and the Company's
creditors (as set forth in Schedule A hereto); and

WHEREAS,
TARPON and the Company desire to resolve, settle, and compromise these liabilities (hereinafter collectively referred to as
the 'Claims,.

NOW,
THEREFORE, the parties hereto agree as follows:

1.          Defined
Terms. As used in this Agreement, the following terms shall have the following meanings specified or indicated (such
meanings to be equally applicable to both the singular and plural forms of the terms defined):

 

"AGREEMENT"
shall have the meaning specified in the preamble hereof.

 

"CLAIM AMOUNT" shall mean $1,826,005.16

"COMMON
STOCK" shall mean the Company's common stock, $0.0001 par value per share, and any shares of any other class of common stock
whether now or hereafter authorized, having the right to participate in the distribution of dividends (as and when declared) and
assets (upon liquidation of the Company).

 

"COURT"
shall mean the Circuit Court of the Second Judicial Circuit, Leon County, Florida.

 

"DISCOUNT': shall mean twenty five (25%)
percent.

 

"OTC" shall have the meaning specified in Section 3b.

 

    	

    	 

    

 

"DWAC"
shall have the meaning specified in Section 3b.

 

"FAST" shall have the meaning specified in Section 3b.

"GROSS
PROCEEDS" shall mean proceeds from sales of Settlement Shares (as defined below) by TARPON.

"NET
PROCEEDS" shall mean Gross Proceeds less all brokerage, clearing and delivery related fees and charges associated with the
generation of such Gross Proceeds, including but not limited to, commission and execution fees, ticket and deposit fees, DTC and
Non-DTC, transfer agent and clearing agent fees, as well as proceeds from the sale of Fee Shares, if any, as defined below.

"PRINCIPAL
MARKET' shall mean the NASDAQ National Market, the NASDAQ SmallCap Market, the Over the Counter Bulletin Board, ()TOW, the American
Stock Exchange or the New York Stock Exchange, whichever is at the time the principal trading exchange or market for the Common
Stock.

"REMITTANCE
AMOUNT" shall mean NET PROCEEDS multiplied by one minus the Discount ((1 — 025) or 0.75);

"SELLER"
shall mean any individual or entity listed on Schedule A, who originally owned the Claims.

"SETTLEMENT
SHARES" shall have the meaning specified in Section 3a

"TRADING
DAY" shall mean any day during which the Principal Market shall be open for business.

"TRANSFER
AGENT" shall mean the transfer agent for the Common Stock (and to any substitute or replacement transfer agent for the Common
Stock upon the Company's appointment of any such substitute or replacement transfer agent).

 

2.         
Fairness Hearing. Upon the execution hereof, Company and TARPON agree, pursuant to Section 3(a)(10) of the Securities Act
of 1933, 15 U.S.C. 77a, et seq. (as amended) (the "Securities Act"), and any applicable section of the General Statutes
of Florida, to promptly submit this Agreement to the Court for a hearing on the fairness of such terms and conditions herein set
forth, including, without limitation, the issuance, exempt from registration, of the Settlement Shares. This Agreement shall become
binding upon the parties only upon entry of an order by the Court substantially in the form annexed hereto as Exhibit A (the "Order).

 

    	2

    	 

    

 

3.         Settlement
Shares. a. Following entry of an Order by the Court in accordance with Paragraph 2 hereof and upon the delivery, by
TARPON and the Company, of the Stipulation of Dismissal (as defined below), the Company shall issue and deliver to TARPON
shares of its Common Stock (the "Settlement Shares)
in one or more tranches, as necessary, sufficient to generate proceeds such that the aggregate Remittance Amount equals the
Claim Amount, subject to the adjustment and ownership limitations set forth below. In addition, upon entry of the Order, the
Company shall Issue to TARPON shares of Common Stock with a value equal to One Hundred Thousand Dollars ($100,000.00) (the
"Fee Shares"). The Fee Shares shall be issued pursuant to exemption provided for In Section 3(a)(10) of the
Securities Act, in Increments of $20,000.00 per tranche to be included in the first five (5) tranches of Settlement Shares
issued to TARPON pursuant to this Agreement. The $20,000.00 in proceeds from the sale of the Fee Shares shall be deducted
from Gross Proceeds for each of the first five (5) trenches of Settlement Shares issued to TARPON pursuant to this Agreement.
TARPON shall return to Company for retirement the $25,000.00 promissory note dated January 9, 2014 in connection with this
Agreement.

b.          
No later than the fifth Trading Day following the date that the Court enters the Order, time being of the essence, the Company
shall: (i) cause its legal counsel to issue an opinion to the Company's transfer agent, in form and substance reasonably acceptable
to TARPON and such transfer agent that the shares of Common Stock to be issued as the initial issuance and any additional issuance
are legally issued, fully paid and non-assessable, are exempt from registration under the Securities Act, may be issued without
restrictive legend, and may be resold by TARPON without restriction ; and, (II) issue the Fee Shares and the Settlement Shares,
in tranches as necessary, by physical delivery, or as Direct Registration Systems (DRS) shares to TARPON'S account with The Depository
Trust Company (DTC) or through the Fast Automated Securities Transfer (FAST) Program of DTC's Deposit/Withdrawal Agent Commission
(DWAC) system, without any legends or restriction on transfer . The date upon which the first tranche of the Settlement Shares
are deposited Into TARPON'S account and are available for sale by TARPON shall be referred to as the "Issuance Date".

c.          The Company shall deliver to TARPON, through
the initial tranche and any required additional tranches, that number of Settlement Shares, the proceeds from the sale of which
shall generate an aggregate Remittance Amount equal to the Claim Amount. Following the sale and settlement of each tranche of
Settlement Shares Issued by the Company to TARPON, TARPON shall cause to be disbursed the Remittance Amount associated with such
tranche to Sellers in accordance with the Claim Purchase Agreements. To the extent that the Company issues Settlement Shares In
excess of that necessary to satisfy the Claim Amount, TARPON shall return any excess Settlement Shares to the Company for retirement
to treasury stock. The parties reasonably estimate that the fair market value of the Settlement Shares and the Fee Shares to be
received by TARPON will be in an aggregate approximate amount of $2,434,673.00. The parties acknowledge that the number of Settlement
Shares to be issued pursuant to this Agreement is indeterminable as of the date of its execution, and could well exceed the current
existing number of shares outstanding as of the date of its execution.

d.           Notwithstanding anything to the contrary
contained herein, the Settlement Shares beneficially owned by TARPON at any given time shall not exceed the number of such shares
that, when aggregated with all other shares of the Company's Common Stock then beneficially owned
by TARPON, or deemed beneficially owned by TARPON, would result
in TARPON's owning more than 9.99% of all of such Common Stock as would then be outstanding, as determined In accordance with
Section 16 of the Securities Exchange Act of 1934, 15 U.S.C. § 78a, et seq. (as amended) (the "Securities Exchange Act")
and the regulations promulgated thereunder. In compliance therewith, the Company agrees to deliver the Initial Issuance and any
additional issuances in one or more tranches. 

    	3

    	 

    

 

4.         Necessary Action. At all times after the execution of this Agreement and entry of the Order by the Court, each party hereto
agrees to take or cause to be taken all such necessary action including, without limitation, the execution and delivery of such
further instruments and documents, as may be reasonably requested by any party for such purposes or otherwise necessary to effect
and complete the transactions contemplated hereby.

 

5.         
Releases. Upon receipt of all of
the Settlement Shares required to be delivered by the Company to TARPON in consideration of the terms and conditions of
this Agreement, and excluding the obligations, representations and covenants arising or made hereunder or a breach hereof, the
parties hereby release, acquit and forever discharge the other and each, every and all of their current and past officers, directors,
shareholders, affiliated corporations, subsidiaries, agents, employees, representatives, attorneys, predecessors, successors and
assigns (the "Released Parties"), of and from any and all claims, damages, cause of action, suits and costs, of whatever
nature, character or description, whether known or unknown, anticipated or unanticipated, which the parties may now have or may
hereafter have or claim to have against each other with respect to the Claims. Nothing contained herein shall be_deemed to negate
or affect TARPON's right and title to any securities heretofore or hereafter issued to it by the Company.

 

6.         
Representations. The Company hereby represents, warrants
and covenants to TARPON as follows:

a.           There are One Hundred Million (100,000,000) shares of Common Stock of the Company authorized, of which Forty One Million, Six
hundred and Thirty Two Thousand, Seven Hundred and Seventy Six (41,632,776) shares are issued and outstanding as of July 31, 2014;

b.          The shares of Common Stock to be issued pursuant to the Order are
duty authorized and, when issued, will be duly and validly issued, fully paid and non-assessable, free and clear of all liens,
encumbrances and preemptive and similar rights to subscribe for or purchase securities;

c.          Upon Court approval of this Agreement and
entry of the Order, the shares will be exempt from registration under the Securities Act and issuable without any restrictive
legend;

 

    	4

    	 

    

d.          The
Company has reserved from its duly authorized capital stock a number of shares of Common Stock at least equal in amount to the
number of shares that could be issued pursuant to the terms of the Order;

e.          If, at any time, it appears reasonably likely that there may be insufficient authorized shares to fully comply with the Order,
Company shall promptly increase its authorized shares to ensure Its ability to timely comply with the Order;

f.          The execution of this Agreement and performance,
by the parties, of their respective obligations pursuant to the Order (as memorialized herein), will not (1) conflict with, violate
or cause a breach or default under any agreement(s) between the Company and any creditor (or any affiliate thereof) respecting
or concerning the accounts receivable comprising the Claims, or (2) require any waiver, consent, or other action of the Company
or any creditor, or their respective affiliates, that has not already been obtained;

 

g.          The
Company hereby waives any provision in any agreement(s) respecting or concerning the accounts receivable-s comprising the
Claims which may require or purport to require that payments be applied in a certain order, manner, or fashion, or providing
for exclusive jurisdiction in any court other than this Court;

h.          The Company has all necessary power and authority to execute, deliver and perform all of its obligations under this Agreement;

i.          The execution, delivery and performance of this Agreement by the Company has been duly authorized by all requisite action on the
part of the Company (including a majority of its independent directors), and this Agreement has been duly executed and delivered
by the Company;

j.          The Company did not enter into any transaction(s) giving rise to the Claims in contemplation of any sale or distribution of the
Company's common stock or other securities;

k.          There has been no modification, compromise, forbearance, or waiver entered into or given
by the Company to any Seller with respect to the Claims. There is no action based on the Claims currently pending against
the Company In any court or other legal venue; nor has any Judgment- based upon the Claims been entered against the Company In
the context of any legal proceeding;

There
are no taxes due, payable or withholdable as an incident of Seller's provision of goods and services, and no taxes will be due,
payable or wlthholdable as a result of the settlement of the Claims, as provided for herein;

m.          reserved)

    	5

    	 

    

n.          To
the best of the Company's knowledge, no Seller will utilize, directly or indirectly, any of the proceeds received from TARPON
in respect of the Claims as consideration for any investment to be made in the Company or any affiliate of the Company;

o.          The Company has not received any notice (oral or written) from the SEC or Principal Market regarding a halt, limitation or suspension
of trading in the Common Stock; and

p.          No Seller will receive, directly or indirectly, any consideration from, or be compensated
In any manner by, the Company, or any affiliate of the Company, in exchange for or in consideration of the sale of the Claims.

q.          The
Company acknowledges that TARPON or its affiliates may, from time to time, hold outstanding securities of the Company, including
securities which may be convertible in shares of the Company's Common Stock at a floating conversion rate tied to the current
market price for the stock. The number of shares of Common Stock issuable pursuant to this Agreement may increase substantially
in certain circumstances, including, but not necessarily limited to the circumstance wherein the trading price of the Common Stock
declines. The Company's executive officers and directors have studied and fully understand the nature of the transactions contemplated
by this Agreement and recognize that they may have a potential dilutive effect. The board of directors of the Company has concluded
in its good faith business judgment that such transaction is in the best interests of the Company. The Company specifically acknowledges
that its obligation to issue the Settlement Shares is binding upon the Company and enforceable regardless of the potential dilutive
effect such issuance may have on the ownership interests of other shareholders of the Company.

TARPON
hereby represents warrants and covenants to Company as follows:

a.           It is the owner of the Claims and, subject to the Court's approval of the terms and conditions herein set forth, obligated to
satisfy the Claims in their entirety;

b.          It
is a limited liability company duly filed and in good standing under the laws of Connecticut; and,

c.          The
execution, delivery and performance of this Agreement by TARPON has been duly authorized by all requisite action on the part of
TARPON, and this Agreement has been duly executed and delivered by TARPON.

 

7.         Continuing
Jurisdiction. In order to enable the Court to grant specific enforcement or other equitable relief In connection with
this Agreement, the parties (a) consent to the continuing jurisdiction of the Court for purposes of enforcing this Agreement,
and (b) expressly waive any contention that there is an adequate remedy at law or similar contention that might otherwise
preclude the entry• of injunctive or other equitable relief.

 

    	6

    	 

    

 

8.         
Conditions
Precedent/ Default.

a.          If
Company fails to deliver the Settlement Shares arid the Fee Shares to TARPON in the form and mode required by Section 3 hereof;

b.          If the Order shall not have been entered by the Court on or prior to September 30, 2014;

c.          
If the Company fails to comply with the Covenants set forth In Paragraph 14 hereof;

d.          if Bankruptcy, dissolution, receivership, reorganization, Insolvency or liquidation proceedings
or other proceedings for relief under any bankruptcy law or any law for the relief of debtors shall be instituted by or against
the Company; or, tithe trading of the Common Stock shall have been halted, limited, or suspended by the SEC or on the Principal
Market; or, trading in securities generally on the Principal Market shall have been suspended or limited; or, minimum prices shall
been established for securities traded on the Principal Market; or, there shall have been any material adverse change (0
in the Company's finances or operations, or (ii) in the financial markets such that, in the reasonable judgment of the TARPON,
upon consultation with the Company, It is impracticable or inadvisable to trade the Settlement Shares. In the event such suspension,
limitation or other action is not cured within ten (10) trading days, then TARPON, in its sole discretion, may deem the Company
to be in default, in which event this Agreement shall be null and void.

9.         
Information. Company and TARPON each represent that prior to the execution of this Agreement, they have fully informed
themselves of its terms, contents, conditions and effects, and that no promise or representation of any kind has been made to
them except as expressly stated in this Agreement.

10.         
Ownership and Authority. The Company and
TARPON each represent and warrant that neither of them has sold, assigned, transferred, conveyed or otherwise disposed
of all or any portion of any claim, demand, right, or cause of action, relating to any matter covered by this Agreement. Each
also has the power and authority and has been duly authorized to enter into and perform their respective obligations pursuant
to this Agreement, which is enforceable according to its terms.

 

11.         
No Admission. This Agreement has been
entered into in order to compromise disputed claims and to avoid the uncertainty and expense of the litigation. Neither this Agreement
nor any Order which may issue in respect of same shall be offered or received into evidence in any action or proceeding; nor shall
this Agreement or any Order which may issue in respect of same constitute or be treated as an admission or concession on the part
of either party with respect to all, or any portion, of the subject matter hereof.

 

12.         Binding Nature. This Agreement shall be binding on all parties
executing this Agreement and their respective successors, assigns and heirs. 

    	7

    	 

    

 

13.         Authority
to Bind. Each party to this Agreement represents and warrants that the execution, delivery and performance of this Agreement
and the consummation of the transactions provided in this Agreement have been duly authorized by all necessary action of the respective
parties and that the person executing this Agreement on behalf of each party has the full capacity to bind that party. Each party
further represents and warrants that it has been represented by independent counsel of its choice in connection with the
preparation, negotiation and execution of this Agreement.

14.         
Covenants. 

a.          For
so long as TARPON or any of its affiliates holds any Settlement Shares, neither the Company
nor any of its affiliates shall, without the prior written consent of TARPON (which consent may not unreasonably be withheld),
vote any shares of Common Stock owned or controlled by it (unless voting in favor of a proposal approved by a majority of Company's
Board of Directors), or solicit any proxies or seek to advise or influence any person with respect to any voting securities of
Company, which vote, solicitation or advise may (1) cause a class of the Company's securities to be delisted from a national securities
exchange or to cease to be authorized to be quoted in an inter dealer quotation system of a registered national securities association,
or, (2} cause a class of the Company's equity securities to become eligible for termination of registration pursuant to Section
12(g)(4) of the Securities Exchange Act.. Similarly, the Company covenants and agrees not to take any action which would impede
the purposes and objectives of this Agreement.

b.          Upon
the signing of the Order, the Company shall file with the SEC whatever pertinent filings may
be necessary to give this Agreement full force and effect.

15.          Indemnification. The Company shall indemnify, defend and
hold TARPON and its affiliates harmless with respect to all obligations of the Company arising from or incident or related to
this Agreement, including, without limitation, any claim or action brought derivatively or directly by any shareholder(s) of the
Company.

16.           Legal Effect. The parties to this
Agreement represent that each of them has been advised as to the terms and legal effect of this Agreement and any Order which
may issue in connection herewith. The parties to this Agreement further represent that the settlement and compromise of the Claims
provided for herein is final and conclusive.

 

17.           Waiver of Defense.  Each party
hereto waives a statement of decision, and the right to appeal from the Order after its entry. The Company further waives any
defense based upon any prohibition against splitting causes of action. The prevailing party in any action or proceeding commenced
to enforce the Order shall be entitled to recover from the other the value of any and all reasonable attorney fees and costs incurred
in connection therewith. Except as expressly set forth herein, each party shall bear responsibility for payment of its own attorney
fees, costs and/or expenses. 

    	8

    	 

    

18.         
Signatures.
This Agreement may be signed in counterparts and the Agreement, together with its counterpart signature pages, shall be deemed
valid and binding on each party when duly executed by all parties. This Agreement may be amended only by an instrument in writing
signed by the party to be charged with enforcement thereof. This Agreement supersedes all prior agreements and understandings
among the parties hereto with respect to the subject matter hereof.

19.         
Choice of Law, Etc. Notwithstanding
the place where this Agreement may be executed by either of the parties, or any other factor, all terms and provisions hereof
shall be governed by and construed in accordance with the laws of the State of Florida, applicable to agreements made and to be
fully performed in that State and without regard to the principles of conflicts of laws thereof. Any action brought to enforce,
or otherwise arising out of this Agreement shall be brought only in the Court (as defined in this Agreement).

20.         
Exclusivity. For a period of thirty
(30) days from the date of the execution of this Agreement, (a) the Company and its representatives shall not directly or indirectly
discuss, negotiate or consider any proposal, plan or offer from any other party relating to the acquisition and/or conveyance
of any further liabilities, or any financial transaction having an effect or result similar to the transactions subject of this
Agreement, and, (b) TARPON shall have the exclusive right to negotiate and execute any and all documentation necessary to effectuate
the terms herein set forth and any other mutually acceptable terms.

21.         
Inconsistency. In the event of any inconsistency between
the terms of this Agreement and any other document executed in connection herewith, the terms of this Agreement shall control
to the extent necessary to resolve such inconsistency.

22.         
NOTICES. Any notice required or permitted hereunder shall
be given in writing (unless otherwise specified herein) and shall be deemed effectively given on the earliest of

		a)	the
                                         date delivered, if delivered by personal delivery as against written receipt therefor
                                         or by confirmed facsimile transmission,

		b)	the
                                         seventh business day after deposit, postage prepaid, In the United States Postal Service
                                         by registered or certified mail, or

		c)	the
                                         second business day after mailing by domestic or international express courier, with
                                         delivery costs and fees prepaid,

in
each case, addressed to each of the other parties thereunto entitled at the following addresses (or at such other addresses as
such party may designate by ten (10) days' advance written notice similarly given to each of the other parties hereto):

    	9

    	 

    

Company:

 

Progressive
Care, Inc.

Attn:  ____________________

Chief Executive Officer

Tel No.: ________________________

E-mail: ______________________

 

and the copy should go to:

Tarpon
Bay Partners LLC

17210 Germano Court

Naples, FL 34110

Telephone
No.: 203-431-8300

 

and

Krieger
& Prager UP

39
Broadway

Suite
920

New York, NY 10006

Attn:
Samuel M. Krieger, Esq.

Telephone No.: (212) 363-2900

Telecopier No.: (212) 363-2999

E-mail:
sk@kplawfirm.com

    	10

    	 

    

 

 IN
WITNESS WHEREOF, the parties have duly executed this Settlement Agreement and Stipulation as of the date first indicated above.

 

	 	TARPON BAY PARTNERS LLC
	 	 
	 	By: 	/s/ Stephen Hicks
	 	Name:	Stephen Hicks
	 	Title:  	Mgr

 

	PROGRESSIVE CARE, INC.	 
	 	 
	By:	/s/ ALAN JAY WEISBERG	 
	Name :	ALAN JAY WEISBERG	 
	Title: 	CEO	 

 

11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00235-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00235-of-00352.parquet"}]]