Document:

Exhibit 10.4

 

HEALTHIER CHOICES
MANAGEMENT CORP.

 

RESTRICTED STOCK
AWARD AGREEMENT

 

RESTRICTED
STOCK AWARD AGREEMENT (this “Agreement”), made as of August 13, 2018 (the “Date of Grant”),
between Healthier Choices Management Corp., a Delaware corporation (the “Company”), and __________ (the “Grantee”).

 

WHEREAS,
the Company has adopted the Vapor Corp 2015 Equity Incentive Plan, as amended (the “Plan”), in order to provide
incentive compensation to certain employees and directors of the Company and its Subsidiaries; and

 

WHEREAS,
the Committee has determined to grant to the Grantee an Award of Restricted Stock (as defined in the Plan) as provided under the
Plan and as described herein to encourage the Grantee’s efforts toward the continuing success of the Company.

 

NOW,
THEREFORE, the parties hereto agree as follows:

 

1. Grant
of Restricted Stock.

 

1.1. The
Company hereby grants to the Grantee an award of __________ shares of Restricted Stock (the “Award”).
The shares of Restricted Stock granted pursuant to the Award shall be issued in the form of book entry shares in the name of the
Grantee as soon as reasonably practicable after the Date of Grant and shall be subject to the execution and return of this Agreement
by the Grantee (or the Grantee’s estate, if applicable) to the Company as provided in Section 9 hereof.

 

1.2. Except
as otherwise expressly set forth herein, the capitalized terms used in this Agreement shall have the same definitions as set forth
in the Plan. This grant and the Award are subject to the terms of the Plan, except as expressly provided herein.

 

2. Restrictions
on Transfer. The shares of Restricted Stock issued under this Agreement may not be sold, transferred or otherwise disposed
of and may not be pledged or otherwise hypothecated until all restrictions on such Restricted Stock shall have lapsed in the manner
provided in Section 3, 4 or 5 hereof.

 

3. Lapse
of Restrictions Generally. Except as provided in Sections 4, 5 and 6 hereof, all of the shares of Restricted Stock issued hereunder
(rounded down to the nearest whole share, if necessary) shall vest, and the restrictions with respect to such Restricted Stock
shall lapse, on the first anniversary of the Date of Grant.

 

4. Effect
of Certain Terminations of Employment. If the Grantee’s employment terminates as a result of the Grantee’s death,
retirement or becoming disabled after the Date of Grant, all shares of Restricted Stock which have not become vested in accordance
with Section 3 or 5 hereof shall vest, and the restrictions on such Restricted Stock shall lapse, as of the date of such termination.

 

     

     

    

 

5. Effect
of Change in Control. In the event of a Change in Control at any time on or after the Date of Grant, all shares of Restricted
Stock which have not become vested in accordance with Section 3 or 4 hereof shall vest, and the restrictions on such Restricted
Stock shall lapse, immediately.

 

6. Forfeiture
of Restricted Stock. In addition to the circumstance described in Section 9(a) hereof, any and all shares of Restricted Stock
which have not become vested in accordance with Section 3, 4 or 5 hereof shall be forfeited and shall revert to the Company upon
the termination by the Grantee, the Company or its subsidiaries of the Grantee’s employment for any reason other than those
set forth in Section 4 or other than without “Cause” hereof prior to the date on which such shares of Restricted Stock
would otherwise vest. All or any portion of the Restricted Stock may be forfeited by the Grantee prior to vesting at his or her
sole discretion.

 

7. Delivery
of Restricted Stock. A stock certificate with respect to shares attributable to Restricted Stock for which the restrictions
have lapsed shall be delivered to the Grantee or the Grantee’s estate, if applicable, as soon as practicable following the
date on which the restrictions on such Restricted Stock have lapsed, free of all restrictions hereunder.

 

8. Dividends
and Voting Rights. Subject to the terms of the Plan, upon issuance of the Restricted Stock, the Grantee shall have all of the
rights of a stockholder with respect to such Stock, including the right to vote the Stock; provided, however, that the Grantee
shall have no right to receive all dividends or other distributions paid or made with respect thereto.

 

9. Execution
of Award Agreement. The shares of Restricted Stock granted to the Grantee pursuant to the Award shall be subject to the Grantee’s
execution and return of this Agreement to the Company or its designee (including by electronic means, if so provided) no later
than August 14, 2018 (the “Return Date”). If this Agreement is not so executed and returned on or prior to the Return
Date, the shares of Restricted Stock evidenced by this Agreement shall be forfeited, and neither the Grantee nor the Grantee’s
heirs, executors, administrators and successors shall have any rights with respect thereto.

 

10. No
Right to Continued Employment. Nothing in this Agreement or the Plan shall interfere with or limit in any way the right of
the Company or its Subsidiaries to terminate the Grantee’s employment, nor confer upon the Grantee any right to continuance
of employment by the Company or any of its Subsidiaries or continuance of service as a Board member.

 

11. Withholding
of Taxes. Except as otherwise agreed by the Company and Grantee, prior to the delivery to the Grantee (or the Grantee’s
estate, if applicable) of a stock certificate with respect to shares of Restricted Stock for which all restrictions have lapsed,
the Grantee (or the Grantee’s estate) shall pay to the Company the federal, state and local income taxes and other amounts
as may be required by law to be withheld by the Company (the “Withholding Taxes”) with respect to such Restricted
Stock. By executing and returning this Agreement in the manner provided in Section 9 hereof, the Grantee (or the Grantee’s
estate) shall be deemed to elect to have the Company withhold a portion of such Restricted Stock having an aggregate Fair Market
Value equal to the Withholding Taxes in satisfaction of the Withholding Taxes, such election to continue in effect until the Grantee
(or the Grantee’s estate) notifies the Company before such delivery that the Grantee (or the Grantee’s estate) shall
satisfy such obligation in cash, in which event the Company shall not withhold a portion of such Restricted Stock as otherwise
provided in this Section 11.

 

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12. Grantee
Bound by the Plan. The Grantee hereby acknowledges receipt of a copy of the Plan and this Agreement, and that he or she has
been granted the opportunity to review and consult with advisors on such agreements, and agrees to be bound by all the terms and
provisions thereof.

 

13. Modification
of Agreement. This Agreement may be modified, amended, suspended or terminated, and any terms or conditions may be waived by
the Company prior to the lapse of restriction. Notwithstanding the foregoing, no such modification may negatively impact the rights
of the Grantee without the Grantee’s written consent.

 

14. Severability.
Should any provision of this Agreement be held by a court of competent jurisdiction to be unenforceable or invalid for any reason,
the remaining provisions of this Agreement shall not be affected by such holding and shall continue in full force in accordance
with their terms.

 

15. Governing
Law. The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State
of Delaware without giving effect to the conflicts of laws principles thereof.

 

16. Successors
in Interest. This Agreement shall inure to the benefit of and be binding upon any successor to the Company. This Agreement
shall inure to the benefit of the Grantee’s legal representatives. All obligations imposed upon the Grantee and all rights
granted to the Company under this Agreement shall be binding upon the Grantee’s heirs, executors, administrators and successors.

 

17. Entire
Agreement. This Agreement and the Plan constitute the entire understanding between the Grantee and the Company and its Subsidiaries,
and supersede all other agreements, whether written or oral, with respect to the Award.

 

18. Headings.
The headings of this Agreement are inserted for convenience only and do not constitute a part of this Agreement.

 

19. Counterparts.
This Agreement may be executed simultaneously in two or more counterparts, each of which shall constitute an original, but all
of which taken together shall constitute one and the same agreement.

 

[REMINDER OF PAGE
INTENTIONALLY LEFT BLANK.]

 

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IN
WITNESS WHEREOF, the Company has caused this Restricted Stock Award Agreement to be executed by its duly authorized representative
and Grantee has executed this Agreement, each as of the Date of Grant.

 

	 	HEALTHIER CHOICES MANAGEMENT CORP.
	 	 
	 	By:	              
	 	Name:	 
	 	Title:	 
	 	 	 
	 	By:	 
	 	Name:Exhibit

Exhibit 10.1
Execution Copy

SEVERANCE AGREEMENT AND GENERAL RELEASE
This Severance Agreement and General Release (“Severance Agreement”) is between Southcross Energy Partners GP, LLC, and Bruce A. Williamson and is effective as of August 17, 2018;
WHEREAS, Executive accepted employment with the Company pursuant to an Employment Agreement dated January 6, 2017 (the “Employment Agreement”);
WHEREAS, the Parties incorporate by reference herein the Definitions from Section 1 of the Employment Agreement;
WHEREAS Executive’s employment has been terminated effective August 16, 2018 (“Termination Effective Date”); 
WHEREAS, the Parties mutually desire to enter into this Severance Agreement and settle fully and finally, in the manner set forth herein, all differences between them which have arisen, or which may arise, prior to, or at the time of, the execution of this Severance Agreement, including, but in no way limited to, any and all claims and controversies arising out of the employment relationship between Executive and the Company and the termination thereof;
Now, therefore, in consideration of the promises and mutual agreements, provisions and covenants contained herein and other good and valuable consideration, the adequacy of which is hereby acknowledged, the Parties agree as follows:
1.     General Release; No Additional Benefits.  Executive agrees for Executive, Executive’s spouse, children, if any, heirs, beneficiaries, devisees, executors, administrators, attorneys, personal representatives,  successors and assigns, hereby forever to release, discharge, and covenant not to sue Southcross Energy Partners GP, LLC, a Delaware limited liability company and any of its past, present, or future parent, affiliated, related, and/or subsidiary entities, and all of the past and present directors, managers, members, shareholders, officers, general or limited partners, employees, agents, and attorneys, and agents and representatives of such entities, and employee benefit plans in which Executive is or has been a participant by virtue of his employment with Company (collectively, the “Releasees”), from any and all claims, debts, demands, accounts, judgments, rights, causes of action, equitable relief, damages, costs, charges, complaints, obligations, promises, agreements, controversies, suits, expenses, compensation, responsibility and liability of every kind and character whatsoever (including attorneys’ fees and costs), whether in law or equity, known or unknown, asserted or unasserted, suspected or unsuspected, which Executive has or may have had against such Releasees based on any events or circumstances arising or occurring on or prior to the date this release is executed, arising directly or indirectly out of, relating to, or in any other way involving in any manner whatsoever, Executive’s employment with Company or its subsidiaries or the termination thereof, and any and all claims arising under federal, state, or local laws relating to employment, or securities, including without limitation claims of wrongful discharge, breach of express or implied contract, fraud, misrepresentation, defamation, or liability in tort, claims of any kind that may be brought in any court or administrative agency, any claims arising under Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Americans with Disabilities Act, the Fair Labor Standards Act, the Executive Retirement Income Security Act, the Family and Medical Leave Act, the Securities Act of 1933, the Securities Exchange Act of 1934, the Sarbanes-Oxley Act, and similar state or local statutes, ordinances, and regulations; provided, however, notwithstanding anything to the contrary set forth herein, that this Release shall not extend to (i) benefit claims under employee pension or welfare benefit plans in which Executive is a participant by virtue of his employment with Company or its subsidiaries, (ii) any rights under that certain Employment Agreement, dated as of January 6, 2017, by and between Company and Executive, (iii) any 

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rights of indemnification Executive may have under any written agreement between Executive and Company (or its affiliates), Company’s Certificate of Formation, the Partnership’s Third Amended and Restated Limited Partnership Agreement, any applicable statute or common law, or pursuant to any applicable insurance policy, (iv) unemployment compensation, (v) contractual rights to vested equity awards, (vi) COBRA benefits and (viii) any rights that may not be waived as a matter of law.  Executive agrees that this Agreement, including the payments due under Section 3 below, resolves all outstanding issues arising from Executive’s employment and Executive acknowledges and agrees that Executive has received all other compensation and benefits to which Executive would otherwise be entitled through the Termination Effective Date.  Executive shall receive no compensation or benefits from the Company in addition to those set forth in this Agreement, except for any amounts payable, to the extent not paid, under the Southcross Energy Partners, L.P. Non-Employee Director Deferred Compensation Plan, as amended, in accordance with the provisions of the Plan The Company also acknowledges that Executive will receive any accrued but unused paid time off to which he may be entitled in accordance with the Company policies applicable to Executive. Executive acknowledges and agrees that Executive shall continue to be obligated under the confidentiality provisions and restrictive covenants of any applicable agreements and plans following the Termination Effective Date as outlined in Section 11.
2.     Confidentiality:  The parties agree that they will keep the terms and existence of this Severance Agreement STRICTLY AND COMPLETELY CONFIDENTIAL, and that they will not communicate or otherwise disclose to any employee of the Company (past, present, or future), or to a member of the general public, the terms or existence of this Severance Agreement, except as may be required by law or compulsory process; provided however, that Executive may disclose this Severance Agreement to his attorneys, tax and financial advisors and/or any healthcare providers that he chooses to consult about his physical or mental health and the Company shall be entitled to make any necessary disclosures as required by the Securities and Exchange Commission.  If asked about any of such matters, Executive’s and the Company’s response shall be that they do not care to discuss any of such matters
3.     Terms:  Pursuant to Section 5(b)(i) of the Employment Agreement, provided Executive has executed this Severance Agreement and not revoked the Severance Agreement pursuant to Section 7 below, the Company shall, on the payment date specified in Section 5(b)(ii) of the Employment Agreement, pay Executive  $389, 041.00 which represents for the balance of the then current Term (ie. Through December 31, 2018). 
4.     Rights Upon Breach:  In the event that Executive breaches any provision of this Severance Agreement and/or any surviving section of the Employment Agreement, the Company’s obligations to continue making payments under Section 3 above shall cease.
5.     Cooperation:  Executive will cooperate in all reasonable respects with the Releasees in connection with any business matter and any existing or future litigation, actions or proceedings (whether civil, criminal, administrative, regulatory or otherwise) brought by or against any of the Releasees to the extent the Company reasonably deems necessary.
6.     Return of Company Property:  Executive shall return any and all Company property in his possession, custody or control, including without limitation, company issued cell phones, credit cards, key, key fobs, laptops, tablets, etc.
7.     Revocation: Executive may revoke this Severance Agreement by notice to the other party, in writing, within seven (7) days of the date of its execution by Executive (the “Revocation Period”) by emailing notice to Kelly Jameson at kelly.jameson@southcrossenergy.com.  Executive agrees that he will not receive the consideration provided by this Severance Agreement if he revokes this Severance Agreement.  Executive 

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also acknowledges and agrees that if Employer has not received from him written notice of his revocation of this Severance Agreement prior to the expiration of the Revocation Period, Executive will have forever waived his right to revoke this Severance Agreement, and this Severance Agreement shall thereafter be enforceable and have full force and effect.
8.     Clawback.  Executive agrees that all compensation and benefits provided by the Company under this Agreement will be subject to recoupment or clawback by the Company under any applicable clawback or recoupment policy of the Company that is generally applicable to the Company’s executives, as in effect on the Termination Effective Date, or as required by applicable law.  In addition, if the Board or any committee thereof reasonably determines that Employee has on or prior to the Termination Effective Date committed a material act of embezzlement, fraud, dishonesty, nonpayment of any obligation owed to the Company or any Affiliate of the Company, breach of any fiduciary duty, violation of ethics policy or code of conduct, or deliberate disregard of the Company’s or Affiliate of the Company’s rules resulting in material loss, damage or injury to the Company or any Affiliate of the Company (any of the foregoing acts, an “Act of Misconduct”), then except as otherwise provided by the Board or such committee, the Employee may be required, in the Board or such committee’s reasonable discretion, to return and/or repay to the Company any compensation and benefits previously provided under this Agreement to the extent necessary to reimburse the Company for any actual losses suffered by the Company as a result of any such Act of Misconduct.  Notwithstanding the foregoing, any determination made by the Board or such committee under this paragraph must be made within four years after the Termination Effective Date and in making such determination, the Board or such committee must give Employee and/or his counsel an opportunity to appear and present evidence on his behalf at a hearing before the Board or such committee or its designee and, in connection therewith, shall give Employee and/or his counsel the opportunity to submit written comments, documents, information and arguments to be considered by the Board or such committee at such hearing.
9.     Non-Admissions: Executive acknowledges that by entering into this Severance Agreement, Employer does not admit, and does specifically deny, any violation of any local, state, or federal law.
10.    Severability: If any provision of this Severance Agreement is held to be illegal, invalid, or unenforceable, such provision shall be fully severable and/or construed in remaining part to the full extent allowed by law, with the remaining provisions of this Severance Agreement continuing in full force and effect.
11.    Entire Agreement: This Severance Agreement constitutes the entire agreement between the parties, and supersedes all prior and contemporaneous negotiations and agreements, oral or written except that Executive shall continue to have all obligations under Section 7 of the Employment Agreement and Sections 7, 9 and 19 of the Employment Agreement shall remain in full force and effect and Executive shall continue to have post-employment obligations under the terms of any other agreements or Company policies in force as of the date hereof, including without limitation, the nonsolicitation and confidentiality provisions and restrictive covenants in the Southcross Holdings LP Class B Unit Award Agreement and Joinder Agreement dated as of August 1, 2016 and January 6, 2017, between Southcross Holdings LP and Executive.  This Severance Agreement cannot be changed or terminated except pursuant to a written agreement executed by the parties.
12.    Governing Law: This Severance Agreement shall be governed by and construed in accordance with the laws of the State of Texas, except where preempted by federal law.
13.    Statement of Understanding: By executing this Severance Agreement, Executive acknowledges that (a) he has had at least twenty one (21) days to consider the terms of this Severance Agreement and has considered its terms for that period of time or has knowingly and voluntarily waived his 

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right to do so; (b) he has been advised by Employer to consult with an attorney regarding the terms of this Severance Agreement; (c) he has consulted with, or has had sufficient opportunity to consult with, an attorney of his own choosing regarding the terms of this Severance Agreement; (d) he has read this Severance Agreement and fully understand its terms and their import; (e) except as provided by this Severance Agreement, he has no contractual right or claim to the benefits described herein; (f) the consideration provided for herein is good and valuable; and (g) he is entering into this Severance Agreement voluntarily, of his own free will, and without any coercion, undue influence, threat, or intimidation of any kind or type whatsoever.
[signature page follows]

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In Witness Whereof, Executive and the Company have executed this Severance Agreement as of the Effective Date:

	
					
	SOUTHCROSS ENERGY PARTNERS GP, LLC
	BRUCE A. WILLIAMSON

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	By:
	/s/ David Biegler
	 
	/s/ Bruce A. Williamson

	 
	 
	 
	 
	 

	Printed Name:  David Biegler
	 
	Printed Name:  Bruce A. Williamson

	 
	 
	 
	 
	 

	Title:  President and CEO
	 
	 
	 

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