Document:

Exhibit 4.1

REGISTRATION
RIGHTS AGREEMENT

This Registration Rights Agreement (this “Agreement”) is made
and entered into as of August 29, 2006 by and between First Avenue Networks,
Inc., a Delaware corporation (“First Avenue”), and the individuals and entities listed
on Exhibit A attached hereto who execute one or more counterpart
signature pages to this Agreement (the “Holders”).

RECITALS

A.            This
Agreement is entered into pursuant to that certain Agreement and Plan of
Merger, dated as of May 14, 2006 (the “Merger Agreement”), by and among First
Avenue, Marlin Acquisition Corporation, a Delaware corporation and a direct and
wholly owned subsidiary of First Avenue (“Merger Sub”), and FiberTower Corporation, a
Delaware corporation (“FiberTower”).

B.            The
Merger Agreement provides that, subject to the terms and conditions of the
Merger Agreement, Merger Sub will be merged with and into FiberTower in a
statutory merger, with FiberTower as the surviving corporation in the merger
(the “Merger”)
in which all issued and outstanding shares of capital stock of FiberTower will
be converted into the right to receive, and will be exchangeable for, shares of
Common Stock, par value $0.001 per share, of First Avenue (the “First Avenue Common Shares”).

C.            As
an inducement for the Holders to approve the Merger Agreement, the Merger and
the transactions contemplated by the Merger Agreement and to enter into the
FiberTower Affiliate’s Letter, First Avenue desires to grant registration
rights to the Holders as contained herein.

NOW, THEREFORE, in
consideration of the foregoing recitals and the mutual promises hereinafter set
forth, the parties hereto agree as follows:

AGREEMENT

1.             Definitions
and References.

Unless otherwise defined herein, the capitalized terms
in this Agreement shall have the same meanings given to them in the Merger
Agreement.  For purposes of this
Agreement, in addition to the definitions set forth elsewhere herein, the
following terms shall have the following respective meanings:

“Affiliate”
of a Holder shall mean a person who, directly or indirectly through one or more
intermediaries, controls, is controlled by or is under common control with such
Holder, or the spouse or children (or a trust exclusively for the benefit of a
spouse and/or children) of such Holder.

 1
 

 

“Material
Disclosure Event” means, as of any date of determination, any
pending or imminent event relating to First Avenue, which, in the determination
of the Board of Directors of First Avenue (i) upon the advice of counsel,
requires disclosure of material, non-public information relating to such event
in any registration statement so that such registration statement would not be
materially misleading, (ii) upon the advice of counsel, is otherwise not
required to be publicly disclosed at that time (e.g., on Forms 10-K, 8-K, or
10-Q) under applicable federal or state securities laws, and (iii) if publicly
disclosed at the time of such event, would have a material adverse effect on
the business, financial condition or prospects of First Avenue or would materially
adversely affect a pending or proposed acquisition, merger, recapitalization,
consolidation, reorganization, financing or similar transaction, or
negotiations with respect thereto.

“Register,”
“registered”
and “registration”
shall refer to a registration effected by preparing and filing the registration
statementin compliance with the Securities Act of 1933, as amended (the “1933 Act”), and the
declaration or ordering of effectiveness of the registration statementby the
United States Securities and Exchange Commission (the “SEC”).

“Registrable
Stock” shall mean (a) the First Avenue Common Shares issued to a
Holder pursuant to the Merger Agreement; and (b) any First Avenue Common Shares
issued as (or issuable upon the conversion or exercise of any warrant, right,
option or other convertible security which is issued as) a dividend or other
distribution with respect to, or in exchange for, or in replacement of, such
shares.  For purposes of this Agreement,
any Registrable Stock shall cease to be Registrable Stock when (w) the
registration statement covering such Registrable Stock has been declared
effective and such Registrable Stock has been disposed of pursuant to such
effective registration statement, (x) such Registrable Stock is sold by a
Holder in a transaction that is exempt from registration pursuant to Rule 144
under the 1933 Act or a transaction in which the Holder’s rights under this
Agreement are not assigned, (y) such Registrable Stock may be sold under Rule
144(k) under the 1933 Act, or (z) such Registrable Stock has ceased to be
outstanding.  In addition, the
Registrable Stock held by any Holder shall cease to be Registrable Stock on
such date on which all of the Registrable Stock held by such Holder can be sold
within a period of three months pursuant to Rule 144 promulgated under the 1933
Act (or any similar provision then in force).

2.             Demand
Registration.

                       (a)           Request for Registration.  Subject to the provisions contained in this
Section 2, beginning on the day after the Closing Date, one or more Holders of
more than 5% of the Registrable Stock then outstanding (each, a “Requesting Holder”)
may, from time to time, request in writing (a “Demand Request”) that First Avenue
effect the registration under the 1933 Act of a specified number of Registrable
Stock held by the Requesting Holders, specifying the intended method of
distribution thereof if other than pursuant to an underwritten offering (a “Demand Registration”);
provided, however, that First Avenue will in no event be required
to effect more than three (3) Demand Registrations in total; provided, further,
that First Avenue will in no event be required to effect more than one (1)
Demand Registration in any 12-month period; provided, further,
that First Avenue will not be obligated to take any action to effect any Demand
Registration within 90 days immediately following the effective date of any
registration statement pertaining to an underwritten public offering of equity
securities of First Avenue for its own account (except pursuant to registrations
on Form S-4 or any successor form or on Form S-8 

 2
 

 

or any successor form relating solely to securities
issued pursuant to any benefit plan). Subject to Section 4 below, upon receipt
of a Demand Request, First Avenue will cause to be included in a registration
statement on an appropriate form under the 1933 Act, filed with the SEC as
promptly as reasonably practicable but in any event not later than 90 days
after receiving a Demand Request, such Registrable Stock as may be requested by
such Requesting Holders in their Demand Request together with any other
Registrable Stock of the same class as requested by Joining Holders (as defined
below) joining in such request pursuant to Section 2(b) hereof.  First Avenue shall use its reasonable efforts
to cause any such registration statement to be declared effective by the SEC as
promptly as practicable after such filing but in any event not later than 150
days following the date of the Demand Request.

                       (b)           Joining Holders.  If at any time First Avenue proposes to
register Registrable Stock for the account of the Requesting Holders pursuant
to Section 2(a) hereof, then (i) First Avenue shall give, or cause to be given,
written notice of such proposed filing to all the Holders as soon as
practicable (but in no event less than 30 days before the anticipated filing
date).  Upon the written request of any
Holder, received by First Avenue no later than the 10th Business Day after
receipt by such Holder of the notice sent First Avenue (each such Holder, a “Joining Holder” and,
collectively with the Requesting Holders, the “Participating Holders”), to register, on
the same terms and conditions as the securities otherwise being sold pursuant
to such Demand Registration, any of its Registrable Stock of the same class as
the securities otherwise being sold pursuant to such Demand Registration, First
Avenue will use its reasonable efforts to cause such Registrable Stock to be
included in the registration statement proposed to be filed by First Avenue on
the same terms and conditions as any securities of the same class included
therein.

                       (c)           Effective Registration.  A registration will not count as a Demand
Registration unless the related registration statement has been declared
effective and has remained effective until the earlier of (i) such time as all
of such Registrable Securities covered thereby have been disposed of in
accordance with the intended methods of disposition by the Participating
Holders (but in no event for a period of more than 90 days after such registration
statement becomes effective) or (ii) the expiration of the time when a
prospectus relating to such registration is required to be delivered under the
1933 Act; it being understood that if, after it has become effective, an
offering of Registrable Stock pursuant to a registration statement is
terminated by any stop order, injunction, or other order of the SEC or other
governmental agency or court, such registration pursuant thereto will be deemed
not to have been effected and will not count as a Demand Registration for
purposes of Section 2(a).

                       (e)           Priority on Demand Registrations.  With respect to any offering of Registrable
Stock pursuant to a Demand Registration in the form of an underwritten
offering, no securities to be sold for the account of any person (including
First Avenue) other than the Participating Holders exercising registration
rights shall be included in a Demand Registration unless the managing
underwriter advises the Requesting Holders that the inclusion of such
securities will not adversely affect the price or success of the offering (an “Adverse Effect”).  Furthermore, in the event that the managing
underwriter advises the Requesting Holders in writing that the amount of
Registrable Stock proposed to be included in such Demand Registration by the
Participating Holders is sufficiently large (even after exclusion of all
securities of any other person pursuant to the immediately preceding sentence)
to cause an Adverse Effect, the number of Registrable Stock to be included in
such Demand Registration 

 3
 

 

shall be allocated among all such Participating
Holders exercising registration rights therewith effected pro rata based on the
ratio that the number of Registrable Stock that each such Holder requested to
be included in such registration statement, as the case may be, bears to the
amount represented by the total number of Registrable Stock that all Holders
requested to be included in such registration statement.

3.             Piggyback Registrations.

                       (a)           Holder Piggyback Registration.  If First Avenue proposes to file a
registration statement under the 1933 Act with respect to an offering of any
equity securities for First Avenue’s own account (except pursuant to
registrations on Form S-4 or any successor form or on Form S-8 or any successor
form relating solely to securities issued pursuant to any benefit plan) on a
form that would permit registration of Registrable Stock for sale to the public
under the 1933 Act, then (i) First Avenue shall give written notice of such
proposed filing to the Holders as soon as practicable (but in no event less
than 20 days before the anticipated filing date), describing in reasonable
detail the proposed registration (including the number and class of securities
proposed to be registered, the proposed date of filing of such registration
statement, any proposed means of distribution of such securities, any proposed
managing underwriter of such securities and a good faith estimate by First
Avenue of the proposed maximum offering price of such securities as such price
is proposed to appear on the facing page of such registration statement), and
offering such Holders the opportunity to register such number of Registrable
Stock as each such Holder may request. 
Upon the written request of any Holder, received by First Avenue no
later than 10 Business Days after receipt by such Holder of the notice sent by
First Avenue, to register, on the same terms and conditions as the securities
otherwise being sold pursuant to such registration, any of such Holder’s
Registrable Stock of the same class as those being registered (which request
shall state the intended method of disposition thereof if the securities
otherwise being sold are being sold by more than one method of disposition),
First Avenue will use its reasonableefforts to cause such Registrable Stock as
to which registration shall have been so requested to be included in the
registration statement proposed to be filed by First Avenue on the same terms
and conditions as any similar securities included therein; provided, however, that, notwithstanding the foregoing,
First Avenue may at any time, in its sole discretion, without the consent of
any other Holder, delay or abandon the proposed offering in which any Holder
had requested to participate pursuant to this Section 3(a) or cease the filing
(or obtaining or maintaining the effectiveness) of or withdraw the related
registration statement or other governmental approvals, registrations or
qualifications.  In such event, First
Avenue shall so notify each Holder that had notified First Avenue in accordance
with this Section 3(a) of its intention to participate in such offering and
First Avenue shall incur no liability for its failure to complete any such
offering.

                       (b)           Priority on Piggyback
Registrations.  If the Registrable
Stock requested to be included in a registration statement by any Holder
pursuant to Section 3(a) hereof differ from the type of securities proposed to
be registered by First Avenue and the managing underwriter for the related
underwritten offering advises First Avenue in writing that due to such
differences the inclusion of such Registrable Stock would cause an Adverse
Effect, and First Avenue notifies such Holder in writing of such advice, then
(i) the number of such Holder’s Registrable Stock to be included in the
registration statement shall be reduced to an amount which, in the judgment of
such managing underwriter, would eliminate such Adverse Effect or (ii) if no
such reduction would, in the judgment of such managing underwriter, eliminate
such Adverse Effect, then First 

 4
 

 

Avenue shall have the right to exclude all such Registrable Stock from
such registration statement; provided,
however, that no other securities that are the same as, or similar to,
the Registrable Stock that have been requested to be included in a registration
statement by any Holder pursuant to Section 3(a) hereof are included and
offered for the account of any other person (other than First Avenue) in such
registration statement.  Any partial
reduction in the number of Registrable Stock to be included in the registration
statement pursuant to clause (i) of the immediately preceding sentence shall be
effected pro rata based on the ratio that the number of Registrable Stock that
each such Holder requested to be included in such registration statement, as
the case may be, bears to the amount represented by the total number of
Registrable Stock that all Holders requested to be included in such
registration statement.  If the
Registrable Stock requested to be included in the registration statement
pursuant to Section 3(a) hereof are of the same type as the securities being
registered by First Avenue and the managing underwriter advises First Avenue in
writing that the inclusion of such Registrable Stock would cause an Adverse
Effect, and First Avenue notifies the requesting Holders in writing of such
advice, then First Avenue will be obligated to only include in such
registration statement that number of Registrable Stock, if any, which, in the
judgment of the managing underwriter, would not have an Adverse Effect.  Any partial reduction in the number of
Registrable Stock to be included in a registration statement pursuant to the
immediately preceding sentence shall be affected pro rata based on the ratio
that the number of Registrable Stock that each such Holder requested to be
included in such registration statement, as the case may be, bears to the
amount represented by the total number of Registrable Stock that all Holders
requested to be included in such registration statement.

                                       Notwithstanding
the foregoing in Section 3(b) hereof, if after a Demand Request by the Holders
pursuant to Section 2(a) hereof, First Avenue first initiates a proposal to
register securities for its own account pursuant to this Section 3, then the
Demand Registration requested pursuant to Section 2(a) hereof shall be given
priority.

                       (c)           Withdrawals.  Each Holder shall have the right to withdraw
its request for inclusion of its Registrable Stock in any registration
statement pursuant to this Section 3 by giving written notice to First Avenue
of its request to withdraw; provided, however, that (i) such
request must be made in writing prior to the earlier of the execution of the
underwriting agreement or the execution of the custody agreement with respect
to such registration and (ii) such withdrawal shall be irrevocable.

                       (d)           Underwritten Offerings.  In connection with the exercise of any
registration rights granted to Holders pursuant to this Section 3, if the
registration is to be effected by means of an underwritten offering, First
Avenue may condition participation in such registration by such Holders upon
inclusion of the Registrable Stock being so registered in such
underwriting.  In addition, such Holders
may request that such Registrable Stock be included in any underwritten
offering of Common Stock (whether or not on a firm commitment basis).

                              With respect to
any offering of Registrable Stock pursuant to this Section 3 in the form of an
underwritten offering, First Avenue shall select an investment banking firm of
national standing to be the managing underwriter for the offering.

 5
 

 

 

4.             Suspension
and Standstill Periods.

(a)           Suspension Period.  After receipt of a Demand Request, First
Avenue may, by notice in writing to each Holder, postpone the filing or
effectiveness of any registration requested pursuant to this Agreement, suspend
the Demand Registration rights of the Holders or require the Holders to suspend
the use of any resale prospectus included in the registration statement
covering the Registrable Stock, for any period of time determined by First
Avenue if there shall occur a Material Disclosure Event (such period, a “Suspension Period”).  Notwithstanding the foregoing, no Suspension
Period shall exceed 90 days in any one instance and First Avenue may not
exercise its rights set forth in the immediately preceding sentence more than
twice in any 12-month period.  Each
Holder agrees that, upon receipt of notice from First Avenue of the occurrence
of a Material Disclosure Event (a “Suspension Notice”), such Holder will
forthwith discontinue any disposition of Registrable Stock pursuant to the
registration statement or any public sale or distribution, including pursuant
to Rule 144, until the earlier of (i) the expiration of the Suspension Period
and (ii) such Holder’s receipt of a notice from First Avenue to the effect that
such suspension has terminated.  Any
Suspension Notice shall be accompanied by a certificate of the President or any
Vice President of First Avenue confirming the existence of the Material
Disclosure Event.  If so directed by
First Avenue, such Holder will deliver to First Avenue (at First Avenue’s
expense) all copies, other than permanent file copies, then in such Holder’s
possession, of the most recent prospectus covering such Registrable Stock at the
time of receipt of such Suspension Notice. 
In the event of a Suspension Notice, First Avenue shall, promptly after
such time as the related Material Disclosure Event no longer exists, take any
and all actions necessary or desirable to give effect to any Holders’ rights
under this Agreement that may have been affected by such notice, including the
Holders’ Demand Registration rights.

(b)           Holder Standstill Period.  Each Holder agrees not to, without the prior
written consent of the managing underwriter for any underwritten offering of
(i) securities of First Avenue that are the same as, or similar to, the
Registrable Stock, or (ii) any securities convertible into, or exchangeable or
exercisable for, securities of First Avenue that are the same as, or similar
to, the Registrable Stock, effect any disposition (except for dispositions
included in, or pursuant to, such an underwritten offering) pursuant to any
registration statement or any public sale or distribution, including pursuant
to Rule 144, of any Registrable Stock or any securities convertible into, or
exchangeable or exercisable for, any securities of First Avenue that are the
same as, or similar to, the Registrable Stock, during the period commencing 15
days prior to the effective date of any registration statement relating to such
securities of First Avenue (to the extent timely notified in writing (prior to
such Holder giving any Demand Request) by First Avenue or the managing
underwriter) and ending on the first to occur of (A) the 90th day after such
effective date and (B) the end of the public distribution of such securities of
First Avenue.

5.             Obligations
of First Avenue.  First
Avenue shall:

(a)           prepare
and file with the SEC any required supplements to the prospectus used in
connection with the registration statement as may be necessary to comply with
the provisions of the 1933 Act with respect to the disposition of all
Registrable Stock covered by the registration statement for the period required
to effect the distribution of the Registrable Stock as set forth in Section 2;

 

 6

 

 

(b)           furnish to each Holder such number of
copies of the registration statementand each amendment thereto, the prospectus
included in such registration statement (including each preliminary prospectus
and each prospectus supplement thereto) and the documents incorporated by
reference into such registration statement or prospectus, as applicable in
conformity with the requirements of the 1933 Act, as such Holder may reasonably
request, in order to facilitate the public sale or other disposition of all or
any of the Registrable Stock by such Holder;

(c)           use all reasonable efforts to
register or qualify the Registrable Stock covered by the registration statement
under the securities or Blue Sky laws of such jurisdiction within the United
States as shall be reasonably requested by the Holders for the distribution of
the Registrable Stock covered by the registration statement; provided, however,
that First Avenue shall not be required to qualify to do business in, to file a
general consent to service of process or to subject itself to material taxation
in any jurisdiction wherein it would not but for the requirements of this
paragraph (c) be obligated to do so; and provided, further, that
First Avenue shall not be required to qualify such Registrable Stock in any jurisdiction
in which the securities regulatory authority requires that the Holders submit
any of his or her Registrable Stock to the terms, provisions and restrictions
of any escrow, lockup or similar agreement(s) for consent to sell Registrable
Stock in such jurisdiction unless the Holders agree to do so;

(d)           take all reasonable actions necessary
to ensure that the Registrable Stock continue to be listed and available for
quotation on The Nasdaq National Market or such other market as may be the
principal market on which First Avenue Common Shares are quoted or listed; and

(e)           promptly notify the Holders, at any
time when a prospectus or prospectus supplement relating thereto is required to
be delivered under the 1933 Act, upon discovery that, or upon the happening of
any event as a result of which, the prospectus included in the registration
statement, as then in effect, includes an untrue statement of a material fact
or omits to state any material fact required to be stated therein or necessary
to make the statements therein, in light of the circumstances under which they
were made, not misleading and, at the request of any Holder, promptly prepare
and furnish to such Holder a reasonable number of copies of a supplement to
such prospectus, or a revised prospectus, as may be necessary so that, as
thereafter delivered to the purchasers of such Registrable Stock, such
prospectus shall not include an untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made,
not misleading; provided, that in the event of a Material Disclosure Event,
First Avenue shall be entitled to defer preparing and furnishing such
supplement or amendment until the end of the applicable Suspension Period, at
which time it shall so notify the Holders and shall prepare and furnish to the
Holders any such supplement or amendment as may then be required.  Following receipt of any supplement to any
prospectus, the Holders shall deliver such supplement or revised prospectus in
connection with any offers or sales of Registrable Stock, and shall not deliver
or use any prospectus not so amended, supplemented or revised.  Following delivery of notice that First Avenue
is preparing and filing with the SEC a supplement to the prospectus, the
Holders shall not make any further sales of Registrable Stock pursuant to the
registration statement until the Holders receive such supplement from First
Avenue.

 

 7
 

 

 

6.             Obligations
of Holder.  Each
Holder shall:

(a)           furnish to First Avenue such
information regarding itself, the Registrable Stock held by it and the intended
method of disposition of such securities as First Avenue shall reasonably
request and as shall be required in connection with the actions to be taken by
First Avenue hereunder, which shall be a condition precedent to the obligations
of First Avenue to include Registrable Stock of a Holder in the registration
statement;

(b)           promptly notify First Avenue of any
changes in the information set forth in the registration statement and any
related prospectus, prospectus supplement or document incorporated by reference
therein regarding such Holder or its plan of distribution, and shall not use,
distribute or otherwise disseminate any free writing prospectus, as defined in
Rule 405 under the 1933 Act in connection with the sale of Registrable Stock
under the registration statement, without the prior consent of First Avenue;
and

(c)           not disclose any information obtained
by such Holder in connection with this Agreement, and shall not use any such
information as the basis for any market transactions in the securities of First
Avenue or its Affiliates, unless and until such information is made generally
available to the public.

7.             Expenses.  All expenses incurred in connection with the
registration pursuant to this Agreement, excluding underwriters’ or brokers’
fees, discounts and commissions, but including, without limitation, all
registration, filing and qualification fees, word processing, duplicating,
printers’ and accounting fees, listing fees, messenger and delivery expenses,
all fees and expenses of complying with state securities or Blue Sky laws, the
fees and disbursements of counsel for First Avenue and reasonable fees and
expenses of not more than one counsel for the Participating Holders (as a
group), shall be paid by First Avenue. 
Each Holder shall bear and pay all underwriting fees, discounts and
commissions and brokerage fees, any out-of-pocket expenses of such Holder,
including any fees and expenses of counsel to such Holder (other than as set
forth in the prior sentence), and any applicable transfer taxes applicable to
securities offered for his or her account in connection with any registrations,
filings and qualifications made pursuant to this Agreement.

8.             Transfer of Registration Rights.  Subject to the terms of any Lock-Up Agreement
among the Holder, First Avenue and FiberTower, the registration rights of a
Holder under this Agreement with respect to any Registrable Stock may be
transferred or assigned to (a) any transferee or assignee of such Registrable
Stock who acquires, as a result of such transfer or assignment,at least (i) 20%
(calculated at the time of such transfer or assignment) of such Holder’s
Registrable Stock or (ii) 5,000 shares of the Registrable Stock previously held
by such Holder, whichever is greater, or (b) an Affiliate of such Holder;
provided, however, that (i) such Holder shall give First Avenue written notice
prior to the time of such transfer stating the name and address of the
transferee and identifying the securities with respect to which the rights
under this Agreement are being transferred; (ii) such transferee shall agree in
writing, in form and substance reasonably satisfactory to First Avenue, to be
bound as a Holder by the provisions of this Agreement; and (iii) immediately
following such transfer the further disposition of such securities by such
transferee is restricted under the 1933 Act; and provided, further, that no
Holder shall be entitled to designate any such transferee if the Registrable
Stock would continue

 

 8
 

 

 

to be Registrable
Stock for a period longer than would be the case in the hands of such Holder or
any of its Affiliates.

9.             Indemnification.  In the event any Registrable Stock is
included in a registration statement under this Agreement:

(a)           Indemnification by First Avenue.  First Avenue shall indemnify and hold
harmless each Holder, such Holder’s directors and officers, any selling agent
selected by such Holder with respect to the offering of such Registrable Stock,
including underwriters (as defined in the 1933 Act), and each person, if any,
who controls such Holder or selling agent within the meaning of Section 15 of
the 1933 Act, against any losses, claims, damages or liabilities, joint or
several, to which they may become subject under the 1933 Act or otherwise,
insofar as such losses, claims, damages or liabilities (or proceedings in
respect thereof) arise out of or are based upon any untrue or alleged untrue statement
of any material fact contained in the registration statement or any preliminary
or final prospectus included therein (including any free-writing prospectus
filed under Rule 424 under the 1933 Act or any amendments or supplements
thereto) or arise out of or are based upon the omission or alleged omission to
state therein a material fact required to be stated therein or necessary to
make the statements therein, in the case of any prospectus, in light of the
circumstances under which they were made, not misleading; and First Avenue
shall reimburse each such Holder, such Holder’s directors and officers, and
such selling agent or controlling person for any legal or other expenses
reasonably incurred by them in connection with investigating or defending any such
loss, claim, damage, liability or action; provided, however, that the indemnity
agreement contained in this Section 9(a) shall not apply to amounts paid in
settlement of any such loss, claim, damage, liability or action if such
settlement is effected without the consent of First Avenue; provided, further,
that First Avenue shall have no obligation to provide indemnification hereunder
for any such loss, claim, damage, liability or action to the extent that it
arises out of or is based upon an untrue statement or alleged untrue statement
or omission or alleged omission made in the registration statement, preliminary
or final prospectus, or amendments or supplements thereto, in reliance upon and
in conformity with written information furnished by or on behalf of any such
Holder or such Holder’s directors and officers, participating person or
controlling person, expressly for use in connection with such
registration.  Such indemnity shall
remain in full force and effect regardless of any investigation made by or on
behalf of any such Holder, such Holder’s directors and officers, participating
person or controlling person, and shall survive the transfer of such securities
by such Holder and any termination of this Agreement.

(b)           Indemnification by the Holders.  Each Holder severally and not jointly shall
indemnify and hold harmless First Avenue, each of its directors and officers,
each person, if any, who controls First Avenue within the meaning of Section 15
of the 1933 Act, and each agent and any underwriter (within the meaning of the
1933 Act) for First Avenue against any losses, claims, damages or liabilities,
joint or several, to which First Avenue or any such director, officer,
controlling person, agent or underwriter may become subject under the 1933 Act or
otherwise, insofar as such losses, claims, damages or liabilities (or
proceedings in respect thereof) arise out of or are based upon any untrue or
alleged untrue statement of any material fact contained in the registration
statement or any preliminary or final prospectus included therein (including
any free-writing prospectus filed under Rule 424 under the 1933 Act or any
amendments or supplements thereto) or arise out of or are based upon the
omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the

 

 9
 

 

 

statements
therein, in the case of any prospectus, in light of the circumstances under
which they were made, not misleading, in each case to the extent, but only to
the extent, that such untrue statement or alleged untrue statement or omission
or alleged omission was made in the registration statement, preliminary or
final prospectus, or amendments or supplements thereto, in reliance upon and in
conformity with written information furnished by or on behalf of such Holder
expressly for use in connection with such registration; and each such Holder
shall reimburse any legal or other expenses reasonably incurred by First Avenue
or any such director, officer, controlling person, agent or underwriter in connection
with investigating or defending any such loss, claim, damage, liability or
action; provided, however, that the indemnity agreement contained
in this Section 9(b) shall not apply to amounts paid in settlement of any such
loss, claim, damage, liability or action if such settlement is effected without
the consent of such Holder; provided, further, that the aggregate
liability of each Holder hereunder shall be limited to an amount equal to the
net proceeds (after deducting any underwriting or broker’s discounts or
commissions but before deducting expenses) received by such Holder from the
sale of Registrable Stock covered by such registration statement.

(c)           Notice of Claims, Etc.  Promptly after receipt by any person entitled
to indemnity underSection 9(a) or (b) hereof, of notice of the commencement of
any action or proceeding involving a claim referred to in such sections, such
indemnified party shall, if indemnification is sought against an indemnifying
party under this Section 9, notify the indemnifying party in writing of the
commencement thereof and the indemnifying party shall have the right to
participate in and assume the defense thereof with counsel selected by the
indemnifying party and reasonably satisfactory to the indemnified party; provided,
however, that an indemnified party shall have the right to retain its
own counsel, with all fees and expenses thereof to be paid by such indemnified
party.  The failure to notify an
indemnifying party promptly of the commencement of any such action, if and to
the extent prejudicial to its ability to defend such action, shall relieve such
indemnifying party of any liability to the indemnified party under this Section
9, but the omission so to notify the indemnifying party will not relieve it of
any liability that it may have to any indemnified party otherwise than under
this Section 9.  Anything in this Section
9(c) to the contrary notwithstanding, an indemnifying party shall not be liable
for the settlement of any action effected without its prior written consent
(which consent shall not unreasonably be withheld or delayed), but if settled
with the prior written consent of the indemnifying party, or if there shall be
a final judgment adverse to the indemnified party, the indemnifying party
agrees to indemnify the indemnified party from and against any loss or
liability by reason of such settlement or judgment.  No indemnifying party shall, without the
prior consent of the indemnified party, consent to entry of any judgment or
enter into any settlement or compromise, with respect to any pending or
threatened action or claim in respect of which indemnification or contribution
may be sought hereunder (whether or not the indemnified party is an actual or
potential party to such action or claim), which (i) does not include as a term
thereof the unconditional release of the indemnified party from all liability
in respect of such action or claim or (ii) includes a statement as to, or an
admission of, fault, culpability or a failure to act, by or on behalf of the indemnified
party.

(d)           Contribution.  To the extent any indemnification by an
indemnifying party is prohibited or limited by law, the indemnifying party, in
lieu of indemnifying such indemnified party, shall contribute to the amount
paid or payable by such indemnified party as a result of such losses, claims,
damages or liabilities in such proportion as is appropriate to reflect the
relative fault of the indemnifying party and indemnified party in connection
with the actions

 

 10
 

 

 

which resulted in
such losses, claims, damages or liabilities, as well as any other relevant
equitable considerations.  The relative
fault of such indemnifying party and indemnified party shall be determined by
reference to, among other things, whether any action in question, including any
untrue or alleged untrue statement of material fact or omission or alleged
omission to state a material fact, has been made by, or relates to information
supplied by, such indemnifying party or indemnified party, and the parties’
relative intent, knowledge, access to information and opportunity to correct or
prevent such action.  The amount paid or
payable by a party as a result of the losses, claims, damages or liabilities
referred to above shall be deemed to include any legal or other fees or
expenses reasonably incurred by such party in connection with any investigation
or proceeding.

The parties hereto
agree that it would not be just and equitable if contribution pursuant to this
Section 9(d) were determined by pro rata allocation or by any other method of
allocation which does not take account of the equitable considerations referred
to in the immediately preceding paragraph. 
No person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the 1933 Act) shall be entitled to contribution from any
person who was not guilty of such fraudulent misrepresentation.

10.          General
Provisions.

(a)           Notices.  Any notice, request or other communication
required or permitted hereunder shall be in writing and shall be deemed to have
been duly given if personally delivered, transmitted by facsimile, delivered by
nationally recognized overnight courier or if deposited in the U.S. mail by
registered or certified mail, return receipt requested, postage prepaid.  Notices shall be delivered at the addresses
set forth below such party’s name on the signature pages hereto.  Any party hereto may by notice so given
change its address or facsimile number for future notices hereunder.  Notice shall conclusively be deemed to have
been given when personally delivered or on the third business day after deposit
in the mail in the manner set forth above.

(b)           Deemed Underwriter; Due Diligence.  First Avenue agrees that, if Goldman, Sachs
& Co. (“Goldman
Sachs”), or any affiliate thereof (together with Goldman Sachs,
any “GS Entity”)
could reasonably be deemed to be an “underwriter,” as defined in Section
2(a)(11) of the 1933 Act, in connection with any registration of First Avenue’s
securities held by any GS Entity pursuant to this Agreement, and any amendment
or supplement thereof (any such registration statement or amendment or
supplement a “GS
Underwriter Registration Statement”), then First Avenue will
cooperate with such GS Entity in allowing such GS Entity to conduct customary “underwriter’s
due diligence” with respect to First Avenue and satisfy any obligations in
respect thereof.  In addition, at Goldman
Sachs’ request, First Avenue will furnish to Goldman Sachs, on the date of the
effectiveness of any GS Underwriter Registration Statement and thereafter from time
to time on such dates as Goldman Sachs may reasonably request (i) a letter,
dated such date, from the First Avenue’s independent certified public
accountants in form and substance as is customarily given by independent
certified public accountants to underwriters in an underwritten public
offering, addressed to Goldman Sachs, and (ii) an opinion, dated as of such
date, of counsel representing First Avenue for purposes of such GS Underwriter
Registration Statement, in form, scope and substance as is customarily given in
an underwritten public offering, including, without limitation, a standard “10b-5”
opinion for such offering, addressed to Goldman Sachs.  First Avenue will also permit legal counsel
to

 

 11
 

 

 

Goldman Sachs to review and comment upon any such GS
Underwriter Registration Statement at least five business days prior to its
filing with the SEC and all amendments and supplements to any such GS
Underwriter Registration Statement within a reasonable number of days prior to
their filing with the SEC and not file any GS Underwriter Registration
Statement or amendment or supplement thereto in a form to which Goldman Sachs’
legal counsel reasonably objects.

(c)           Entire Agreement; Independence of
Obligations.  This Agreement
constitutes and contains the entire agreement and understanding of the parties
with respect to the subject matter hereof and supersedes any and all prior
negotiations, correspondence, agreements, understandings, duties or obligations
between the parties respecting the subject matter hereof.

(d)           Governing Law.  This Agreement shall be governed by and
construed in accordance with the internal laws of the State of Delaware without
regard to conflicts of law principles.

(e)           Severability.  If one or more provisions of this Agreement
are held to be unenforceable under applicable law, then such provision(s) shall
be excluded from this Agreement and the balance of this Agreement shall be
interpreted as if such provision(s) were so excluded and shall be enforceable
in accordance with its terms.

(f)            Third Parties.  Nothing in this Agreement, express or
implied, is intended to confer upon any person, other than the parties hereto
and their successors and assigns, any rights or remedies under or by reason of
this Agreement.

(g)           Successors and Assigns.  Subject to the provisions of Section 8, the
provisions of this Agreement shall inure to the benefit of, and shall be
binding upon, the successors and permitted assigns of the parties hereto.

(h)           Captions.  The captions to sections of this Agreement
have been inserted for identification and reference purposes only and shall not
be used to construe or interpret this Agreement.

(i)            Counterparts. This Agreement
may be executed in one or more counterparts, each of which shall be deemed an
original, and all of which together shall constitute one instrument. Delivery
of an executed counterpart of this Agreement by facsimile shall be effective to
the fullest extent permitted by applicable law.

(j)            Costs and Attorneys’ Fees.  In the event that any action, suit or other
proceeding is instituted concerning or arising out of this Agreement or any
transaction contemplated hereunder, the prevailing party shall recover all of
such party’s costs and attorneys’ fees incurred in each such action, suit or
other proceeding, including any and all appeals or petitions therefrom.

(k)           Adjustments for Stock Splits, Etc.  Wherever in this Agreement there is a
reference to a specific number of shares of First Avenue Common Shares, then,
upon the occurrence of any subdivision, combination or share dividend of such
class of shares, the specific number of shares so referenced in this Agreement
shall automatically be proportionally adjusted to reflect the effect on the
outstanding shares of such class or series of shares by such subdivision,
combination or share dividend.

 

 12

 

IN WITNESS WHEREOF, the
parties hereto have executed this Registration Rights Agreement as of the date
first above written.

FIRST AVENUE
NETWORKS, INC.

 

	
  By:

  	
  /s/ Thomas A. Scott

  	
   

  	
   

  
	
   

  	
  Name: Thomas A. Scott

  	
   

  
	
   

  	
  Title: Chief Financial Officer

  	
   

  

 

First Avenue Networks, Inc.

7925 Jones Branch Drive, Suite 3300

McLean, Virginia  22102

Facsimile:  (917) 591-4212

Attn:  Thomas A. Scott

 

 

With a copy to:

Andrews Kurth LLP

600 Travis, Suite 4200

Houston, Texas  77002

Facsimile:  (713) 220-4285

Attn:  W. Mark Young

Fenwick & West LLP

801 California Street

Mountain View, California  94041

Facsimile:  (650) 938-5200

Attn:  William R. Schreiber

 

IN
WITNESS WHEREOF, the parties hereto have executed this Registration
Rights Agreement as of the date first above written.

HOLDERS

	
  THE RAPTOR GLOBAL PORTFOLIO
  LTD. 

  	
   

  	
  THE TUDOR BVI GLOBAL PORTFOLIO LTD. 

  
	
   

  	
   

  	
   

  
	
  By:

  	
  Tudor Investment
  Corporation, 

  	
   

  	
  By: 

  	
  Tudor Investment Corporation, Trading Advisor 

  
	
   

  	
  Investment
  Advisor 

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ W. T.
  Flaherty 

  	
   

  	
  By: 

  	
  /s/ W. T. Flaherty 

  
	
   

  	
  Name: W. T.
  Flaherty 

  	
   

  	
   

  	
  Name: W. T. Flaherty 

  
	
   

  	
  Title: Managing
  Director

  	
   

  	
   

  	
  Title: Managing Director

  
	
   

  	
   

  	
   

  
	
  THE ALTAR ROCK
  FUND L.P. 

  	
   

  	
  TUDOR PROPRIETARY TRADING, L.L.C. 

  
	
   

  	
   

  	
   

  
	
  By:

  	
  Tudor Investment
  Corporation, 

  	
   

  	
   

  
	
   

  	
  General Partner 

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ W. T.
  Flaherty

  	
   

  	
  By: 

  	
  /s/ W. T. Flaherty

  
	
   

  	
  Name: W. T.
  Flaherty 

  	
   

  	
   

  	
  Title: Managing Director

  
	
   

  	
  Title: Managing
  Director

  	
   

  	
   

  	
  Name: W. T. Flaherty 

  

 

Address:

c/o Tudor Investment
Corporation

15303 Ventura Boulevard

Suite 900

Sherman Oaks, CA  91403

Facsimile:

(203) 552 6248

 

IN
WITNESS WHEREOF, the parties hereto have executed this Registration
Rights Agreement as of the date first above written.

HOLDERS

GOLDMAN, SACHS & CO.

 

	
  By:

  	
  /s/ Nick Advani

  	
   

  	
   

  
	
   

  	
  Name: Nick Advani

  	
   

  
	
   

  	
  Title: Managing Director

  	
   

  

 

Address:

One New York Plaza

New York, NY 10004

 

Facsimile: 

(212) 256-4104

 

IN
WITNESS WHEREOF, the parties hereto have executed this Registration
Rights Agreement as of the date first above written.

	
  HOLDERS

  	
   

  
	
   

  	
   

  
	
  MERITECH CAPITAL
  PARTNERS II L.P.

  	
   

  
	
   

  	
   

  
	
  By:

  	
  Meritech Capital Associates II L.L.C.

  	
   

  
	
   

  	
  its General Partner

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  Meritech Management Associates II L.L.C.

  	
   

  
	
   

  	
  a managing member

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Michael B. Gordon

  	
   

  
	
   

  	
  Michael B. Gordon, a managing member

  	
   

  
	
   

  	
   

  	
   

  
	
  MERITECH CAPITAL AFFILIATES II L.P.

  	
   

  
	
   

  	
   

  
	
  By:

  	
  Meritech Capital Associates II L.L.C.

  	
   

  
	
   

  	
  its General Partner

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  Meritech Management Associates II L.L.C.

  	
   

  
	
   

  	
  a managing member

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Michael B. Gordon

  	
   

  
	
   

  	
  Michael B. Gordon, a managing member

  	
   

  
	
   

  	
   

  	
   

  
	
  MCP ENTREPRENEUR
  PARTNERS II L.P.

  	
   

  
	
   

  	
   

  
	
  By:

  	
  Meritech Capital Associates II L.L.C.

  	
   

  
	
   

  	
  its General Partner

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  Meritech Management Associates II L.L.C.

  	
   

  
	
   

  	
  a managing member

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Michael B. Gordon

  	
   

  
	
   

  	
  Michael B. Gordon, a managing member

  	
   

  

 

Address: 

285 Hamilton
Avenue, Suite 200

Palo Alto, CA
94301

 

Facsimile:

(650) 475-2222

 

IN
WITNESS WHEREOF, the parties hereto have executed this Registration
Rights Agreement as of the date first above written.

HOLDERS

CROWN CASTLE INVESTMENT CORP.

	
  By:

  	
  /s/ E. Blake Hawk

  	
   

  	
   

  
	
   

  	
  Name: E.
  Blake Hawk

  	
   

  
	
   

  	
  Title: EVP

  	
   

  

 

Address: 

510 Bering Drive - Suite
600

Houston, TX  77057

Telecopy:  (713) 570-3053

 

Facsimile:

(713) 570-3053

 

IN
WITNESS WHEREOF, the parties hereto have executed this Registration
Rights Agreement as of the date first above written.

	
  HOLDERS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  AMERICAN TOWERS,
  INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ William H.
  Hess

  	
   

  	
   

  	
   

  
	
   

  	
  Name: William H. Hess

  	
   

  	
   

  	
   

  
	
   

  	
  Title: EVP, General Counsel

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  
	
  116 Huntington
  Avenue

  	
   

  	
   

  
	
  Boston, MA 02106

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Facsimile:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (617) 375-7575

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SPECTRASITE
  COMMUNICATIONS, INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ William H.
  Hess

  	
   

  	
   

  	
   

  
	
   

  	
  Name: William H.
  Hess

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Facsimile:

  	
   

  	
   

  	
   

  	
   

  
								

 

 

 

IN
WITNESS WHEREOF, the parties hereto have executed this Registration
Rights Agreement as of the date first above written.

 

	
  HOLDERS

  	
   

  
	
   

  	
   

  
	
  OAK INVESTMENT PARTNERS X, L.P.

  	
   

  
	
   

  	
   

  
	
  By:

  	
   /s/ Bandel L.
  Carano

  	
   

  
	
   

  	
  Bandel L. Carano

  	
   

  
	
   

  	
  Managing Member of Oak Associates

  	
   

  
	
   

  	
  X, LLC,

  	
   

  
	
   

  	
  The General Partner of Oak Investment

  	
   

  
	
   

  	
  Partners X, Limited Partnership

  	
   

  
	
   

  	
   

  	
   

  
	
  OAK INVESTMENT PARTNERS X AFFILIATES FUND, L.P.

  
	
   

  	
   

  	
   

  
	
  By:

  	
   /s/ Bandel L.
  Carano

  	
   

  
	
   

  	
  Bandel L. Carano

  	
   

  
	
   

  	
  Managing Member of Oak X Affiliates, LLC,

  	
   

  
	
   

  	
  The General Partner of Oak X Affiliates Fund,

  	
   

  
	
   

  	
  Limited Partnership

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  
	
   

  	
  525 University
  Avenue

  	
   

  
	
   

  	
  Suite 1300

  	
   

  
	
   

  	
  Palo Alto, CA
  94301

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Facsimile:

  	
   

  
	
   

  	
  (650) 328-6345

  	
   

  

 [SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT]
 

 

 

IN
WITNESS WHEREOF, the parties hereto have executed this Registration
Rights Agreement as of the date first above written.

	
  HOLDERS

  	
   

  
	
   

  	
   

  
	
  By:

  	
   /s/ Eric
  Botto

  	
   

  
	
   

  	
  Name: Eric Botto

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	 

	
   

  	
   

  	 

	
   

  	
   

  	 

	
   

  	
   

  	
   

  
	
  Facsimile:

  	
   

  	
   

  
				

 [SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT]
 

 

 

IN
WITNESS WHEREOF, the parties hereto have executed this Registration
Rights Agreement as of the date first above written.

	
  HOLDERS

  	
   

  
	
   

  	
   

  
	
  By:

  	
   /s/ David
  Leeds

  	
   

  
	
   

  	
  Name: David Leeds

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	 

	
   

  	
   

  	 

	
   

  	
   

  	 

	
   

  	
   

  	
   

  
	
  Facsimile:

  	
   

  	
   

  
				

 [SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT]
 

 

 

IN
WITNESS WHEREOF, the parties hereto have executed this Registration
Rights Agreement as of the date first above written.

	
  HOLDERS

  	
   

  
	
   

  	
   

  
	
  By:

  	
   /s/ Harpinder
  Madan

  	
   

  
	
   

  	
  Name: Harpinder Madan

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	 

	
   

  	
   

  	 

	
   

  	
   

  	 

	
   

  	
   

  	
   

  
	
  Facsimile:

  	
   

  	
   

  
				

 

 [SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT]
 

 

 

IN
WITNESS WHEREOF, the parties hereto have executed this Registration
Rights Agreement as of the date first above written.

	
  HOLDERS

  	
   

  
	
   

  	
   

  
	
  By:

  	
   /s/ Scott
  Brady

  	
   

  
	
   

  	
  Name: Scott Brady

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	 

	
   

  	
   

  	 

	
   

  	
   

  	 

	
   

  	
   

  	
   

  
	
  Facsimile:

  	
   

  	
   

  
				

 

 [SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT]

 

 

EXHIBIT
A

LIST
OF HOLDERS

	
  The Raptor Global Portfolio Ltd.

  	
   

  
	
   

  	
   

  
	
  The Tudor BVI Global Portfolio Ltd.

  	
   

  
	
   

  	
   

  
	
  The Altar Rock Fund L.P.

  	
   

  
	
   

  	
   

  
	
  Tudor Proprietary Trading, L.L.C.

  	
   

  
	
   

  	
   

  
	
  Goldman, Sachs & Co.

  	
   

  
	
   

  	
   

  
	
  Meritech Capital Partners II L.P.

  	
   

  
	
   

  	
   

  
	
  Meritech Capital Affiliates II L.P.

  	
   

  
	
   

  	
   

  
	
  MCP Entrepreneur Partners II L.P.

  	
   

  
	
   

  	
   

  
	
  Crown Castle Investment Corp.

  	
   

  
	
   

  	
   

  
	
  American Towers, Inc.

  	
   

  
	
   

  	
   

  
	
  Spectrasite Communications, Inc.

  	
   

  
	
   

  	
   

  
	
  Oak Investment Partners X, L.P.

  	
   

  
	
   

  	
   

  
	
  Oak Investment Partners X Affiliates Fund, L.P.

  	
   

  
	
   

  	
   

  
	
  Eric Botto

  	
   

  
	
   

  	
   

  
	
  David Leeds

  	
   

  
	
   

  	
   

  
	
  Harpinder Madan

  	
   

  
	
   

  	
   

  
	
  Scott BradyExhibit
10.1

EMPLOYMENT AGREEMENT

THIS AGREEMENT is
made this 31st day of August, 2006 and effective as of March
27, 2006 (the “Effective Date”),
by and between TESSCO TECHNOLOGIES
INCORPORATED, a Delaware corporation (the “Company”), and ROBERT B. BARNHILL, JR. (“Executive”).

BACKGROUND

A.            Pursuant
to an Employment Agreement dated March 31, 1994 (as heretofore amended, the “Existing
Employment Agreement”), Executive currently serves as
President, Chief Executive Officer (“CEO”)
and Chairman of the Board (“Chairman”) of
the Company. The term of the Existing Employment Agreement is not fixed but
rather is terminable by either party upon three years’ notice.

B.            The
Board of Directors of the Company (the “Board”) is
desirous of securing Executive’s continued commitment to serving as President,
Chief Executive Officer, and Chairman of the Company for the five-fiscal-year
period commencing as of the Effective Date and extending through the Company’s
fiscal year ending in 2011 (the “Regular Term”), by which time the Board and Executive intend to have
developed a succession plan and to have engaged a new President and CEO. The
Board further wishes to obtain Executive’s commitment to serve in the role of
Executive Chairman (in addition to his service as a member of the Board) during
the five succeeding fiscal years extending through the end of the Company’s
fiscal year ending in 2016 (the “Transition Period”), during which period he would
initially be responsible for transition and then would serve as a senior
advisor to the new CEO and the Board.

C.            Executive
is desirous of providing the commitment sought by the Board.

D.            The
Board and Executive believe that the Existing Employment Agreement does not
accommodate these shared objectives and is outdated in certain other respects
and, accordingly, that it is necessary and appropriate to replace the Existing
Agreement and to enter into this Agreement.

AGREEMENTS

NOW, THEREFORE, in
consideration of the premises and the mutual promises of the parties herein set
forth, and other good and valuable consideration the receipt and sufficiency of
which are hereby acknowledged, the Company and Executive intending to be
legally bound agree as follows:

1.             DEFINED TERMS. As
used in this Agreement, the following capitalized terms have the meanings
ascribed to them in this section:

 

(a)           “Benefits” means,
for purposes of section 7, those benefits and perquisites actually afforded to
Executive or to which Executive shall be entitled, as contemplated by section 5(c),
immediately before the Termination Date.

 

 

 

(b)           “Benefit Equivalent Payment” means, with respect to any Benefit that, after the
termination of Executive’s employment, cannot continue to be (or is in fact no
longer, without regard to whether it can or cannot continue
to be) provided by the Company, an amount equal to the value of such Benefit,
grossed up to the extent necessary to offset any additional income tax cost
that Executive incurs because such Benefit is no longer provided directly by
the Company (the amount of which gross-up payment shall be determined using the
highest marginal federal and state income tax rates from time to time
applicable to Executive) and the income tax cost of the gross-up payment
itself.

 

(c)           “Cause” means:

 

(1)           Executive’s
willful violation of a Company policy (excluding any act or omission that
Executive reasonably believed in good faith to have been in the best interest
of the Company), willful commission of an act of fraud or dishonesty, or
willful engagement in illegal conduct or gross misconduct, which in each case
is materially and demonstrably injurious to the Company;

 

(2)           Executive’s
continued failure to substantially perform his duties with the Company or to
substantially comply with a specific and lawful directive of the Board (other
than a continued failure caused by or attributable to physical or mental
illness or infirmity), in each case after a written demand for substantial
performance or substantial compliance is delivered to Executive by or on behalf
of the Board, which demand is based on a good-faith determination by the Board,
after reasonable inquiry, specifically identifying the manner in which the
Board believes Executive has not substantially performed his duties or
substantially complied with a lawful directive;

 

(3)           Executive’s
conviction of (including a plea of nolo contendere to) a crime constituting a
felony;

 

(4)           Executive’s
embezzlement or criminal diversion of funds; 

 

(5)           Executive’s
failure (other than by reason of physical or mental illness or infirmity) to
perform or to comply with any material term or condition of this Agreement,
which failure:

 

(i)            is
of such a nature that it is reasonably capable of being cured, but only if
(x) Executive does not cure such failure within thirty (30) days after
written notice of such failure or (y) if such failure cannot be cured in
such period and the continuation of such failure will not be materially and
demonstrably injurious to the Company, Executive does not commence and
diligently seek to cure such failure within such period and thereafter continue
to seek to cure such failure until cured; or

 

(ii)           is
of such a nature that it is not reasonably capable of being cured, in which
case Executive shall be given written notice thereof but shall not be entitled
to any opportunity to cure such failure.

 

 

(d)           “Change in Control” means:

 

(1)           any “person” (as
such term is used in section 13(d) and 14(d) of the Securities Exchange Act of
1934 (the “Exchange Act”))
(other than, until such time as Executive for the first time hereafter no
longer continues to own at least fifteen percent (15%) of the Company’s issued
and outstanding common stock, Executive or any affiliate, affiliated person or
entity (including any group with which Executive acts in concert), trust,
estate, beneficiary, or legatee of Executive) becomes the beneficial owner,
directly or indirectly, of shares of the Company’s common stock or other
interests in the Company representing fifty percent (50%) or more of the
combined voting power of the then-outstanding Company Voting Securities; except
that the following shall not constitute or result in a Change in Control:
(i) any acquisition of then-outstanding or newly issued Company Voting
Securities by the Company or any entity controlled by the Company, (ii) any
acquisition of then-outstanding or newly issued Company Voting Securities by
any employee benefit plan (or related trust) sponsored or maintained by the
Company or any entity controlled by the Company, or (iii) any increase in
the percentage of the then-outstanding Company Voting Securities held by any
person that does not involve any acquisition of Company Voting Securities (whether
then outstanding or newly issued) by such person but results solely from a
reduction in the number of Company Voting Securities outstanding (such as may
result from the Company’s acquisition of outstanding Company Voting
Securities)); provided, however, that if (A) a
person becomes the beneficial owner of 50% or more of the outstanding Company
Voting Securities by reason or as a result of an acquisition of Voting
Securities by the Company or any entity controlled by the Company as described
in clause (i) above or by any employee benefit plan (or related trust)
sponsored or maintained by the Company or any entity controlled by the Company
as described in clause (ii) above, or as the result of a reduction in the
number of Company Voting Securities as described in clause (iii) above, and
(B) such person, after such acquisition or reduction, becomes the
beneficial owner of any additional Company Voting Securities (other than upon
the exercise, conversion, or vesting, as applicable, of any options, warrants,
or other rights in respect thereof then previously issued or delivered to such
person by the Company in the ordinary course and without the intent or purpose
of circumventing the intent of this clause), then such acquisition of
additional Company Voting Securities shall, unless another exception otherwise
applies, constitute a Change in Control; or

 

(2)           the consummation
by the Company of any consolidation or merger or share exchange involving the
Company, or any sale or disposition by the Company of all or substantially all
of its assets (directly or indirectly, in one transaction or a series of
transactions, and including any such sale or disposition implemented through a
sale or disposition (including by merger, consolidation, or share exchange)
involving some or all of the Company’s subsidiaries or the assets thereof, and
where, for purposes of determining “all or substantially all,” those assets
owned by one or more direct or indirect subsidiaries of the Company shall be
deemed owned by the Company) (each such consolidation, merger, share exchange,
or sale or disposition of assets a “Business
Combination”), except for:

 

(i)            a Business
Combination as a result of which the beneficial owners of outstanding Company
Voting Securities immediately before the transaction continue to beneficially
own (whether because such Company Voting Securities remain outstanding or because
such Company Voting Securities are converted into equity securities of 

 

the surviving
entity) immediately after the Business Combination is consummated more than
fifty percent (50%) of the voting securities of the surviving or ongoing entity
(in the case of a consolidation, merger, or share exchange) or the acquiror of
such assets (in the case of a sale or disposition of assets), or (in either
case) in any other entity that directly or indirectly owns or controls such
surviving or ongoing entity or acquiror of assets (including a corporation or
other entity that, as a result of the transaction, owns the Company or all or
substantially all of the Company’s assets, either directly or through one or
more subsidiaries) (any such surviving, ongoing, acquiring, or other entity the
“Successor Entity”)  in substantially the same proportions as their
ownership of Company Voting Securities immediately before such Business
Combination, or

 

(ii)           a
Business Combination (A) that Executive has either (x) approved in writing or
(y) otherwise unequivocally indicated his approval of (whether by voting to
approve the transaction or by directly or indirectly participating in the
transaction (whether or not he votes to approve the transaction)), and (B) as a
result of which the percentage of the voting securities of the Successor Entity
outstanding immediately after the consummation of the transaction beneficially
owned by Executive is at least one hundred ten percent (110%) of his percentage
ownership of Company Voting Securities immediately before the Business Combination;
or

 

(3)           the stockholders
of the Company approve a plan of complete liquidation of the Company.

 

(e)           “Code of Conduct”
means the Company’s Code of Conduct as from time to time in effect for senior
executives of the Company. The current Code of Conduct is attached hereto as Exhibit
A.

 

(f)            “Company  Voting
Securities” means shares of the Company’s common stock or other
securities or interests in the Company entitled to vote generally in the
election of the Company’s directors.

 

(g)           “Disability” means any physical or mental illness or
infirmity (which for the avoidance of doubt shall in any event be deemed for
purposes of this Agreement to exclude habitual use of alcohol or drugs) of
Executive that causes him to be substantially unable to perform his duties
hereunder for any period of one hundred eighty (180) consecutive days or two
hundred seventy (270) days, whether or not consecutive, in any period of three
hundred sixty five (365) days, despite provision by the Company of reasonable
accommodations as required by law. The determination of whether a Disability
exists shall be made by a licensed physician who is board certified in the
applicable specialty selected by Company and Executive. If the parties cannot
agree on such a physician or specialty, each party shall select a physician and
the two physicians so selected shall select a third physician board certified
in the specialty determined appropriate by the two physicians, and such
board-certified physician shall make the determination of whether a Disability
exists. Absent certification by the physician selected by the parties as
aforesaid that the circumstances of Executive’s condition have changed
materially since the time of the then most recent determination, neither party
shall be able to initiate a determination as to Disability for a period of nine
months after the completion of the then most recent determination.

 

 

(h)           “Excusable  Disqualification
Event” means, with respect to Executive’s service as Chairman or
Executive Chairman of the Board (or, insofar as is necessary to such service,
Executive’s membership on the Board):

 

(1)           the
failure or refusal of the Company’s stockholders to reelect Executive to the
Board (unless, in connection therewith, the Company has breached its obligation
to nominate Executive for reelection to the Board as provided in section 4(c),
but subject to the exceptions contained in section 4(d)(1)):

 

(2)           the
failure or refusal of the Board or the nominating committee of the Board to
nominate Executive for reelection to the Board, but only if such failure or
refusal does not constitute a breach of the Company’s obligation to nominate
Executive for reelection as provided in section 4(c), but subject to the
exceptions contained in section 4(d)(1); or 

 

(3)           the
Board’s determination, made by a majority of the directors (other than
Executive) in good faith after receipt of advice of counsel, that the Board’s
appointment of Executive from among its members to the position of Chairman or
Executive Chairman, would result in a violation of its fiduciary duties as
directors under applicable law.

 

(i)            “Good Reason” means the occurrence, without Executive’s
express prior written consent, of any of the following:

 

(1)           The
Company’s assignment to Executive of duties materially inconsistent with
Executive’s position, authority, duties, or responsibilities specified herein
or as modified from time to time by written agreement (other than as a result
of Executive’s inability or ineligibility to serve as Chairman or Executive
Chairman, or his failure to be reelected to the Board, but only if such
inability or ineligibility, or such failure, is caused by an Excusable
Disqualification Event);

 

(2)           Any
material diminution in the scope of Executive’s authority or any change in
Executive’s title (other than (i) as expressly contemplated herein at the
end of the Regular Term or (ii) as a result of Executive’s inability or
ineligibility to serve as Chairman or Executive Chairman, or his failure to be
reelected to the Board, but only if such inability or ineligibility, or such
failure, is caused by an Excusable Disqualification Event);

 

(3)           Any
reduction in Executive’s base salary (other than as expressly contemplated
herein at the end of the Regular Term);

 

(4)           The
Company’s failure to substantially perform or comply with any other material
term or provision of this Agreement; or

 

(5)           the
Company’s requiring Executive to be based at a location outside of a thirty
five (35) mile radius of Executive’s present home address, which is 6316
Mossway, Baltimore, Maryland 21212;

 

and, if the same is
capable of being rectified, the failure of the Company to rectify the same
within thirty (30) days after written demand specifically identifying the
occurrence is delivered 

 

by Executive to the
Company, or, if the same is not capable of being rectified in such period of
time, the failure of the Company to commence diligently to seek to rectify the
same within such period and thereafter to continue to seek to rectify such
failure until rectified. For the avoidance of doubt, any prospective action
that would, if actually taken or implemented, constitute Good Reason through
application of (1) or (2) above (after the expiration without cure of the
applicable notice and cure period provided for above) shall not in any event be
deemed to have occurred unless and until such action is actually taken or
implemented. In particular, and solely by way of illustration, a material
diminution in the scope of Executive’s authority or any change in Executive’s
title that would result from a prospective Change in Control shall not, for
purposes hereof, be deemed to have occurred until the Change in Control has
actually occurred. 

 

(j)            “Incentive Compensation” means, for any
fiscal year of the Company, the cash incentive bonus paid or payable to
Executive pursuant to the Compensation Plan for such fiscal year.

 

(k)           “Termination Date” means
the date as of which Executive’s employment terminates, which means (1) if
Executive’s employment is terminated due to Executive’s death, the date of Executive’s
death and (2) if Executive’s employment is terminated by the Company or by
Executive for any other reason, the date specified in the Termination Notice
given pursuant to the applicable subsection of section 7.

 

(l)            “Termination  Notice” means a written Termination Notice given by the
Company or by Executive as contemplated by section 7.

 

(m)          Additional Terms. The
following terms are defined elsewhere in this Agreement:

 

	
  “Board”

  	
   

  	
  Recital B

  
	
  “Business
  Combination”

  	
   

  	
  Section 1(d)(2)

  
	
  “Code”

  	
   

  	
  Section 8(a)

  
	
  “CEO”

  	
   

  	
  Recital A

  
	
  “Chairman”

  	
   

  	
  Recital A

  
	
  “Compensation
  Plan”

  	
   

  	
  Section 5(b)(1)

  
	
  “Exchange
  Act”

  	
   

  	
  Section 1(d)(1)

  
	
  “Excise
  Tax”

  	
   

  	
  Section 8(a)

  
	
  “Existing Employment Agreement”

  	
   

  	
  Recital A

  
	
  “Life
  Insurance Payments”

  	
   

  	
  Section 5(d)

  
	
  “Outstanding
  Voting Securities”

  	
   

  	
  Section 1(d)(1)

  
	
  “PSUs”

  	
   

  	
  Section 5(f)

  
	
  “Regular
  Term”

  	
   

  	
  Recital B

  

 

 

 

	
  “Restricted Shares”

  	
   

  	
  Section 5(e)

  
	
  “Restriction
  Period”

  	
   

  	
  Section 9(b)(2)

  
	
  “SERP”

  	
   

  	
  Section 5(g)

  
	
  “Successor
  Entity”

  	
   

  	
  Section 1(d)(2)(i)

  
	
  “Target
  Bonus “

  	
   

  	
  Section 5(b)(3)

  
	
  “Term”

  	
   

  	
  Section 3

  
	
  “Transition
  Period”

  	
   

  	
  Recital B

  

 

2.             EMPLOYMENT.
The Company agrees to employ Executive, and Executive agrees to be
employed, on the terms and subject to the conditions herein set forth.

 

3.             TERM. The term of
Executive’s employment with the Company under this Agreement (the “Term”) shall
commence as of the Effective Date and shall continue for a period of ten (10)
fiscal years of the Company, which period shall consist of the Regular Term and
the Transition Period, unless Executive’s employment is sooner terminated as
provided in section 7 of this Agreement, whereupon the Term shall end.

 

4.             DUTIES.

 

(a)           During
the Regular Term, Executive shall serve as, and have responsibilities and
authority consistent with the position of, full-time President, CEO, and
(subject to section 4(c) below) Chairman. Executive’s specific responsibilities
and authority shall be as from time to time provided in the Company’s Bylaws
and established by the Board, to which Executive shall report, but shall not
without Executive’s written consent and subject to section 4(c) be materially diminished
during the Regular Term compared with Executive’s responsibilities and
authority on the Effective Date. Executive shall devote substantially all of
Executive’s business time, energy, and skill to the performance of his duties
under this Agreement and shall devote commercially reasonable efforts and
attention to such duties. Notwithstanding the foregoing, the Company
acknowledges that Executive has investment, charitable, and professional
interests and obligations to which he will attend on a continuing basis, but
Executive represents and covenants that these activities will not materially
interfere with the performance of his duties hereunder.

 

(b)           During the
Transition Period, Executive shall serve in the role of Executive Chairman (in
addition to his service as a member of the Board), subject, however, to section
4(c) below. As Executive Chairman, Executive shall initially be responsible
during the Transition Period for transition of the leadership of the Company to
such person or persons who are selected by the Board (which person or persons
shall, except as may otherwise be determined by the Board, report to the Board
and not to Executive), and thereafter during the Transition Period, Executive shall
serve as a senior advisor to such person or persons, and to the Board, using
his experience and role as founder and as (then) past CEO to help guide the
Company’s growth strategy and development. In addition, Executive shall have
such other specific responsibilities and authority as shall from time to time
be established by the Board, to which 

 

Executive shall
report. During the Transition Period, Executive shall not be required to devote
more than ten days per fiscal quarter to such duties, in addition to routine
duties he may have as a member of the Board.

(c)           The Company and Executive acknowledge
that the ability of Executive to serve on the Board, and hence to serve as and
to hold the titles of “Chairman” and “Executive Chairman,” is dependent and
conditioned upon Executive’s being nominated from time to time by the Board (or
the nominating committee thereof) for election to the Board, Executive’s then
being elected from time to time to serve on the Board by the stockholders of
the Company, and, upon the election of Executive to serve on the Board, the
designation of Executive by the Board to serve as Chairman or Executive
Chairman. Accordingly, the Company agrees that, except to the extent provided
in subsection (d)(1), Executive shall, during the Term, continue to be
nominated to serve on the Board as his term would otherwise from time to time
expire. 

 

(d)           Notwithstanding
subsections (a), (b), and (c):

 

(1)           If
the Board, by a majority vote of its members (excluding Executive), determines
in good faith after receipt of advice of counsel that nominating Executive to
serve on the Board would result in a breach of its fiduciary duties as
directors under applicable law (or, in the case of the nominating committee, a
violation of its charter), neither the Board nor the nominating committee shall
have any obligation to nominate Executive for election to the Board; and

 

(2)           If
(i) the stockholders for any reason do not reelect Executive to the Board
or (ii) even if Executive is reelected, the Board, by a majority vote of
its members (excluding Executive), determines in good faith after receipt of
advice of counsel that its appointment of Executive from among the members of
the Board to the position of Chairman or Executive Chairman would result in a
violation of its fiduciary duties as directors under applicable law, then Executive
shall not, and shall not be entitled to, hold such titles or serve in such
capacity or position beyond his then current term as such. Nevertheless, and in
either such case, insofar as the same is not inconsistent with its fiduciary
duties, the Board shall instead permit Executive during such period to hold a
title and to serve the Company in a capacity as similar as reasonably
practicable to that which he would have held or that in which he would have
served the Company hereunder had he been so elected or such determination not
been made, and within the limits of such duties the Board will take, or direct
the Company to take, commercially reasonably steps (including offering to
Executive observation rights on the Board) to so allow or provide. In no
event, however, shall the fact that, under the specific circumstances described
in this subsection (d), Executive (i) is not nominated for reelection as a
director, (ii) is no longer a director, or (iii) is not appointed to
serve as Chairman or Executive Chairman constitute Good Reason or a breach or
default by either party to this Agreement or effect a termination of Executive’s
employment or this Agreement, or otherwise affect any of Executive’s or the
Company’s rights or obligations hereunder (other than the obligation on the
part of Executive to serve as Chairman or Executive Chairman).

 

5.             COMPENSATION AND BENEFITS.

 

(a)           Base Salary.

 

(1)           During the Regular Term, Executive
shall be paid a base salary at the initial rate of $600,000 per fiscal year,
subject to annual increases (but not decreases) as the Compensation Committee
and the Board from time to time determine are appropriate, consistent with the
standards used to review and adjust the compensation of the Company’s other
senior executives. It is expected that the next review of Executive’s base
salary will be conducted at the end of the Company’s fiscal year ending in 2009
in respect of the Company’s fiscal year ending in 2010.

 

(2)           During the Transition Period,
Executive shall be paid a base salary at the initial rate of $200,000 per
fiscal year, subject to such increases (if any) as the Compensation Committee
and the Board from time to time determine are appropriate. Executive shall not
be entitled to receive during the Transition Period any other fees for
attending meetings of the Board or committees thereof as are otherwise provided
to nonexecutive members of the Board, but Executive shall be entitled to
reimbursement of reasonable expenses on the same terms as apply to other
members of the Board.

 

(b)           Incentive Compensation.

 

(1)           For
each fiscal year during the Term (i.e., both the
Regular Term and the Transition Period), Executive shall participate with the
other senior executives of the Company in, and shall be eligible to receive cash
incentive compensation in accordance with the terms of, the senior executive
compensation plan adopted by the Board for that fiscal year (as applicable to
each fiscal year, the “Compensation Plan”).

 

(2)           The parties acknowledge that the
standards and criteria on which awards under the Compensation Plan have
historically been based include both corporate earnings targets (measured after
all incentive compensation is taken into account) and a somewhat more
subjective individual performance factor and that it is the Board’s current
expectation (but not the Board’s or the Company’s obligation hereunder) to
continue to use similar criteria in determining incentive compensation for all
senior executives, including Executive. 

 

(3)           Executive’s
minimum Incentive Compensation opportunity for each fiscal year during the Term
(Executive’s “Target Bonus”), which is referred to in the current Compensation
Plan as Executive’s “Expected Reward Opportunity,” shall be such amount
(expressed either as a percentage of base salary, as is currently the case, or
as a stated dollar amount) as the Board (or the Compensation Committee of the
Board, as applicable) from time to time determines in it sole discretion is
appropriate, but in no event shall Executive’s Target Bonus for any fiscal year
during the Term be less than 100% of Executive’s base salary for that fiscal
year. Under the current Compensation Plan, the amount of Incentive Compensation
awarded to Executive for a particular fiscal year if the “expected” level of
achievement (both corporate and individual) is attained for that fiscal year is
(by definition) equal to Executive’s Target Bonus. The actual Incentive
Compensation awarded to Executive for any particular fiscal 

 

year may be more or less
than Executive’s Target Bonus, based on the actual level of achievement
relative to the performance metrics established for that year by the Board .

 

(c)           Benefit Plans and Fringe
Benefits. Executive
shall continue, during the Term, to be eligible to participate in all benefit
plans and be granted those benefits (including health, life, long-term care,
and disability coverage) and perquisites that are currently afforded to
Executive (with reference in any event to the limits contemplated by section 10(m))
and such other benefits and perquisites as are from time to time afforded to
other senior executives of the Company generally, along with such additional
benefits and perquisites as the Compensation Committee or the Board from time
to time determine are appropriate. Notwithstanding the foregoing, the grant or
award to Executive of, and the eligibility of Executive to receive,
equity-based compensation shall be governed by subsection (f) of this
section.

 

(d)           Life Insurance Payments. In addition to any other benefits to which Executive
may be entitled, the Company shall continue to pay to Executive, or for
Executive’s benefit, during the Term the following amounts (collectively, the “Life Insurance Payments”): (i)
$12,500 per year, which is the amount of the premium on an existing $2 million
insurance policy on Executive’s life that is owned by Executive (or an
insurance trust created by Executive) and (ii) $65,000 per year, which is
amount paid to Executive in lieu of the second-to-die (with Executive’s spouse)
split-dollar life insurance policy arrangement with the Company that was
cancelled in May 2003. Executive acknowledges that, although the Company also
pays the premiums on certain other key-man life insurance policies, these are
maintained for the benefit of and are payable to the Company, and hence are not
part of Executive’s compensation arrangements. The Company remains free to deal
with such policies as it deems appropriate.

 

(e)           Grant of Restricted Shares. The Company has granted to Executive one hundred
thousand (100,000) shares of the Company’s common stock (the “Restricted Shares”) pursuant
to the Company’s Amended and Restated 1994 Stock and Incentive Plan on the
terms and subject to the conditions set forth in a Restricted Stock Award of
even date herewith, a copy of which is attached hereto as Exhibit B.

 

(f)            Additional Equity-Based
Compensation. In
addition to the grant of the Restricted Shares described in subsection (e),
Executive shall be entitled to participate in all equity-based compensation
programs, including any award of Performance Stock Units (“PSUs”), of the kind
as may from time to time be awarded, extended, or made available, during the
Regular Term, to other senior executives of the Company and, during the
Transition Term, to the nonexecutive directors, in each case as the Board from
time to time implements or determines is appropriate.

 

(g)           SERP. The Company shall continue to provide, and Executive shall continue to participate in, the 1994 Supplemental
Executive Retirement Plan of the Company, as established for Executive, as the
same may heretofore have been or may hereafter be amended with the express
written consent of Executive, including any amendments required or determined
to be necessary or appropriate to comply with any changes or modifications to
any provisions of law or regulations applicable thereto (as so amended, the “SERP”).

 

 

(h)           Expense Reimbursement. The Company shall reimburse Executive for business
travel, lodging, and meals and other reasonable business expenses incurred by
him in his performance of services hereunder, subject to submission of
documentation in accordance with the Company’s business expense reimbursement
policies from time to time applicable to its senior executives.

 

(i)            Payments: Withholding of
Taxes, etc. Payments of base salary shall be made in biweekly or
other installments in accordance with the Company’s general payroll practices
from time to time in effect. Incentive Compensation payments for each fiscal
year shall be made annually in accordance with the Compensation Plan for such
year. All payments to Executive hereunder shall be reduced by taxes and other
amounts that the Company is required by law or authorized by Executive to
withhold.

 

6.             D&O
COVERAGE; INDEMNIFICATION. To the extent available at reasonable rates
(and any rates for comparable coverage not exceeding 200% of the rates
currently paid by the Company shall in any event be deemed reasonable for these
purposes), the Company agrees to maintain at all times during the Term and for
a period of not less than six (6) years following the Termination Date, and to
cause Executive to be covered under, its director/officer and general liability
policies for all acts or omissions of Executive within the scope of his
employment occurring (or alleged to have occurred) during the Term. Whether or
not such coverage exists or is available, the Company further agrees to provide
Executive with any other or additional director and officer liability insurance
coverage, and to enter into agreements with Executive providing for
indemnification, to at least the same extent, and on terms at least as
favorable as those, offered by the Company to its other senior executives or
directors from time to time during the Term.

 

7.             TERMINATION.

 

(a)           In General.

 

(1)           The Company may at any time elect to
terminate Executive’s employment under this Agreement by delivery of a
Termination Notice to Executive for any reason (including on account of Disability)
or no reason, with or without Cause, in which event the termination provisions
of this Agreement shall govern.

 

(2)           Executive may at any time elect to
terminate his employment under this Agreement by delivery of a Termination Notice
to the Company for any reason (including on account of Disability) or no
reason, with or without Good Reason, in which event the termination provisions
of this Agreement shall govern. 

 

(3)           Any termination of Executive’s
employment pursuant to the various subsections of this section 7 shall not be
deemed a breach of this Agreement. Any election to terminate Executive’s
employment pursuant to subsection (b), (c), or (d) shall be communicated by the
terminating party by a Termination Notice given as provided in such subsection.

 

(4)           For the avoidance of doubt, Executive
shall be entitled to payment pursuant to no more than one of subsections (b),
(c), (d), (e), or (f) of this section 7, as applicable, upon and following the
occurrence of the first Termination Date, if any, after the date hereof. 

 

 

(b)           Involuntary or For Good
Reason. The Company
may elect to terminate Executive’s employment at any time other than for
Cause or Disability by giving Executive a Termination Notice to that effect
specifying a Termination Date that is not less than thirty (30) nor more than
ninety (90) days after the date the Termination Notice is given, and Executive
may elect to terminate his employment at any time for Good Reason by giving the
Company a Termination Notice stating the grounds therefor and specifying a
Termination Date that is not less than twenty (20) nor more than ninety (90)
days after the date the Termination Notice is given (or, if earlier, a
Termination Date that is the date immediately preceding an intervening Change
in Control). If such a Termination Notice is delivered in compliance with and
meeting the conditions of the immediately preceding sentence, Executive’s
employment shall be terminated as and when so provided, and, if the Termination
Notice properly establishes as the Termination Date a date during the Term and
before the occurrence of a Change in Control, the Company shall then:

 

(1)           Pay to Executive any unpaid base
salary accrued through the Termination Date and any unpaid Incentive Compensation
to which Executive is entitled for fiscal years ending on or before the
Termination Date, which amounts shall be paid on the dates such amounts would
otherwise have been paid but for the termination;

 

(2)           Pay to Executive an amount equal to
the Target Bonus established for the fiscal year in which the Termination Date
occurs (but in no event less than the greater of the Target Bonus for the
previous fiscal year and the Incentive Compensation actually paid or payable
for the previous fiscal year), prorated for the number of days from the
beginning of the fiscal year to the Termination Date, which shall be paid in a
lump sum within one (1) month after the Termination Date;

 

(3)           Continue paying Executive’s base
salary, at the rate in effect on the Termination Date, for a period of three
(3) years from the Termination Date (even if such period extends beyond the date
the Term would otherwise have ended), which shall be paid in regular
installments on the dates such amounts would otherwise have been paid but for
the termination;

 

(4)           Pay to Executive annual amounts in
lieu of Incentive Compensation, each of which shall be equal to the Target
Bonus established for the fiscal year in which the Termination Date occurs (but
in no event less than the greater of the Target Bonus for the previous fiscal
year and the Incentive Compensation actually paid or payable for the previous
fiscal year), which shall be paid on the first, second, and third anniversaries
of the Termination Date (even if such dates extend beyond the date the Term would
otherwise have ended); 

 

(5)           Continue providing all Benefits for a
period of three (3) years from the Termination Date (even if such period
extends beyond the date the Term would otherwise have ended) or, to the extent
that the Company cannot continue providing any of the Benefits, make Benefit
Equivalent Payments to Executive in regular installments (or at such other
times as the Company demonstrates reasonable business practices would dictate
under the

 

circumstances)
generally consistent with (but in no event more than three (3) months after)
the dates the Benefits would have been provided but for the termination; and

 

(6)           Continue paying the Life Insurance
Payments that would otherwise have been payable under section 5(d) (on the dates
such amounts would have been paid but for the termination) for a period of
three (3) years from the Termination Date (even if such period extends beyond
the date the Term would otherwise have ended).

 

(7)           In addition to the foregoing:
(i) the Restricted Shares shall vest
fully and immediately in their entirety as of the Termination Date and
(ii) all other equity-based compensation (including all other stock grants and PSUs) shall vest as respects any time-based
vesting and shall vest as respects any performance-based vesting applicable to
the then current fiscal year (without regard
to actual performance) fully and immediately (and, in the case of PSUs, the
underlying shares so vesting shall immediately become distributable) as
of the Termination Date. No such vesting will occur to the extent determined on the basis of performance (as opposed to a
lapse of time), during any subsequent fiscal year or years, except as otherwise provided in the corresponding award
instrument or the terms otherwise applicable thereto. 

 

(c)           For Cause or Without Good
Reason. The Company
may elect to terminate Executive’s employment at any time for Cause by
giving Executive a Termination Notice stating the grounds therefor and
specifying a Termination Date, which may be any date that is on or after (but
not more than ninety (90) days after) the date the Termination Notice is given,
and Executive may elect to terminate his employment at any time other than for
Good Reason or on account of Disability by giving the Company a Termination
Notice to that effect specifying a Termination Date that is not less than
thirty (30) nor more than ninety (90) days after the date the Termination
Notice is given. If such a Termination Notice is delivered in compliance with
and meeting the conditions of the immediately preceding sentence, Executive’s
employment will be terminated as and when so provided, and if the Termination
Notice properly establishes a Termination Date during the Term and before the
occurrence of a Change in Control, Executive shall be entitled to any unpaid
base salary accrued through the Termination Date and any Incentive Compensation
accrued but unpaid for fiscal years ending before the Termination Date (which
amounts shall be paid on the dates such amounts would otherwise have been paid
but for the termination), but Executive shall not be entitled to any Incentive Compensation
for the fiscal year in which the Termination Date occurs or any other payments
otherwise due hereunder. In addition, all benefits and Life Insurance Payments
shall cease as of such Termination Date, except for Executive’s COBRA rights or
to the extent that the applicable benefit plan or applicable law requires the
provision of benefits for a longer period.

 

(d)           On Account of Disability. Either the Company or Executive may elect to terminate
Executive’s employment on account of and upon Disability by giving to the other
a Termination Notice to that effect specifying a Termination Date that
is not less than thirty (30) nor more than ninety (90) days after the date the
Termination Notice is given. If such a Termination Notice properly establishes
a Termination Date during the Term and before the occurrence of a Change in
Control, then Executive’s employment will be terminated as and when so provided
and the Company shall then:

 

 

(1)           Pay to Executive any unpaid base
salary accrued through the Termination Date and any unpaid Incentive Compensation
to which Executive is entitled for fiscal years ending on or before the
Termination Date, which amounts shall be paid on the dates such amounts would
otherwise have been paid but for the termination;

 

(2)           Pay to Executive an amount equal to
the Target Bonus established for the fiscal year in which the Termination Date
occurs (but in no event less than the greater of the Target Bonus for the
previous fiscal year and the Incentive Compensation actually paid or payable
for the previous fiscal year), prorated for the number of days from the
beginning of the fiscal year to the Termination Date, which shall be paid in a
lump sum within one (1) month after the Termination Date;

 

(3)           Pay to Executive an amount equal to
the greater of: 

 

(i)            $1,200,000 and

 

(ii)           Three (3) times
the sum of the following amounts: (x) Executive’s annual base salary in
effect on the Termination Date plus (y) the Target Bonus for the fiscal
year in which the Termination Date occurs (but in no event less than the
greater of the Target Bonus for the previous fiscal year and the Incentive
Compensation actually paid or payable for the previous fiscal year);

 

which amount shall be
payable in equal monthly installments over a period of three (3) years
commencing one (1) month after the Termination Date (even if such period
extends beyond the date the Term would otherwise have ended);

(4)           Continue providing all Benefits for a
period of three (3) years from the Termination Date (even if such period
extends beyond the date the Term would otherwise have ended) or, to the extent
that the Company cannot continue providing any of the Benefits, make Benefit
Equivalent Payments to Executive in regular installments (or at such other
times as the Company demonstrates reasonable business practices would dictate
under the circumstances) generally consistent with (but in no event more than
three (3) months after) the dates the Benefits would have been provided but for
the termination; and

 

(5)           Continue paying the Life Insurance
Payments that would otherwise have been payable under section 5(d) (on the
dates such amounts would have been paid but for the termination) for a period of
three (3) years from the Termination Date (even if such period extends beyond
the date the Term would otherwise have ended).

 

(6)           In addition to the foregoing:
(i) the Restricted Shares shall vest
fully and immediately in their entirety as of the Termination Date and
(ii) all other equity-based compensation (including all other stock grants and PSUs) shall vest as respects any time-based
vesting and shall vest as respects any performance-based vesting applicable to
the then current fiscal year (without regard
to actual performance) fully and immediately (and, in the case of PSUs, the
underlying shares so vesting shall immediately become distributable) as
of the Termination Date. No such vesting will occur to the extent determined on the basis of performance (as opposed to a
lapse of time), during any subsequent fiscal year or years, except as otherwise provided in the corresponding award
instrument or the terms otherwise applicable thereto.

 

 

(e)           Upon Death of Executive. If at any time during the Term and before the
occurrence of a Change in Control Executive’s employment is terminated by
reason of his death, then the Company shall pay to Executive’s personal
representative or other successor in interest (i) any unpaid base salary
accrued through the Termination Date and any unpaid Incentive Compensation to
which Executive is entitled for fiscal years ending on or before the
Termination Date, which amounts shall be paid on the dates such amounts would
otherwise have been paid but for the termination (but in no event later than
one (1) month after the Termination Date) and (ii) a cash lump-sum payment,
within one (1) month after the Termination Date, equal to the sum of the
following:

 

(1)           An amount equal to the Target Bonus
established for the fiscal year in which the Termination Date occurs (but in no
event less than the greater of the Target Bonus for the previous fiscal year and
the annual bonus actually paid or payable for the previous fiscal year),
prorated for the number of days from the beginning of the fiscal year to the
Termination Date; plus

 

(2)           An amount equal to the greater of: 

 

(i)            $1,200,000 and

 

(ii)           Three (3) times
the sum of the following amounts: (x) Executive’s annual base salary in
effect on the Termination Date plus (y) the Target Bonus for the fiscal
year in which the Termination Date occurs (but in no event less than the
greater of the Target Bonus for the previous fiscal year and the Incentive
Compensation actually paid or payable for the previous fiscal year); plus

 

(3)           The total amount of Benefit
Equivalent Payments in respect of the Benefits that would have been afforded to
Executive for the period of three (3) years following the Termination Date (as
though Executive had not died and the Term extended at least through the end of
such three-year period and notwithstanding that the Company could have
continued providing such Benefits); plus

 

(4)           The total amount of the Life
Insurance Payments that would have been payable to Executive for the period of
three (3) years following the Termination Date (as though Executive had not
died and the Term extended at least through the end of such three-year period).

 

(f)            On or After Change in
Control. Notwithstanding
the foregoing, if Executive’s employment is terminated for any reason (or no
reason), whether by the Company with or without Cause, or by Executive, with or
without Good Reason, or by the Company or by Executive on account of
Disability, in any such case, pursuant to a Termination Notice properly
establishing a Termination Date during the Term and on or after the occurrence
of a Change in Control and, in the case of a Termination Notice delivered by
Executive, during the Term and not later than thirty (30) days after the first
anniversary of the occurrence of a Change in Control, or if Executive’s
employment is terminated by reason of the death of Executive at any time 

 

during the Term
and on or after the occurrence of a Change in Control, the Company shall pay to
Executive (i) any unpaid base salary accrued through the Termination Date
and any unpaid Incentive Compensation to which Executive is entitled for fiscal
years ending on or before the Termination Date, which amounts shall be paid on
the dates such amounts would otherwise have been paid but for the termination
(but in no event later than one (1) month after the Termination Date) and (ii) a
cash lump-sum payment, within one (1) month after the Termination Date, equal
to the sum of the following:

 

(1)           Executive’s base salary, at the rate
in effect on the Termination Date, for the balance of the fiscal year in which
the Termination Date occurs; plus

 

(2)           An amount equal to the Target Bonus
established for the fiscal year in which the Termination Date occurs (but in no
event less than the greater of the Target Bonus for the previous fiscal year and
the Incentive Compensation actually paid or payable for the previous fiscal
year); plus

 

(3)           An amount equal to the greater of: 

 

(i)            $1,200,000 and

 

(ii)           The sum of the
following amounts: (x) Executive’s annual base salary in effect on the Termination
Date plus (y) the Target Bonus established for the fiscal year in which
the Termination Date occurs (but in no event less than the greater of the
Target Bonus for the previous fiscal year and the Incentive Compensation
actually paid or payable for the previous fiscal year); plus

 

(4)           The total amount of Benefit
Equivalent Payments in respect of the Benefits that would have been afforded to
Executive for the period of one (1) year following the Termination Date (as
though the Term extended at least through the end of such one-year period and
notwithstanding that the Company could have continued providing such Benefits);
plus

 

(5)           The total amount of the Life
Insurance Payments that would have been payable to Executive for the period of
one (1) years following the Termination Date (as though the Term extended at
least through the end of such one-year period).

 

(g)           Change in Control
Following Termination. Notwithstanding the foregoing or any other provision
hereof, if, at any time after the Termination Date in respect of a termination
of Executive’s employment by the Company without Cause or by Executive for Good
Reason, or by the Company or Executive on account of Disability, or by virtue
of Executive’s death, there occurs a Change in Control, all amounts remaining
payable to Executive as set forth above shall be accelerated and paid to
Executive on the date of the Change in Control.

 

(h)           Release. As a condition precedent to receiving payment of the
amounts payable under subsections (b), (d), or (f), Executive shall execute and
deliver to the Company a general release (in form reasonably satisfactory to
the Company and to Executive) of all claims against the Company and its
subsidiaries (and their respective officers, directors, 

 

employees, and
agents) other than: (i) claims for payment of amounts due under this
section 7 or under section 8, (ii) claims for reimbursement under section 5(h)
of expenses incurred on or before the Termination Date; (iii) claims
arising out of or relating to the obligations of the Company to maintain
insurance and to indemnify Executive as set forth in section 6 or in any other
document or instrument; and (iv) claims arising out of or under any other
written agreement to which the Company and Executive are parties or any employee
benefit plan (including the SERP).

 

(i)            Exclusive Remedy. Executive agrees that the payments, benefits, and
entitlements contemplated by this section 7 (and any acceleration of vesting of
an equity-based award in accordance with the terms of such award) shall, if
such payments, benefits, or entitlements are actually made or provided and such
accelerated vesting and any other equity provision is actually effected
(including with respect to delivery of shares) as required by the applicable provisions
of this section 7 (and the terms of any such award), constitute the sole and
exclusive remedy for such termination of his employment and separation from the
Company, and, provided such payments, benefits, or entitlements are actually
made as set forth herein and subject to the terms and conditions hereof
otherwise applicable, Executive covenants not to assert or pursue any other
remedies, at law or in equity, with respect to such termination of employment
or separation. This subsection (i) does not in any way limit any right of
either party to contest the characterization of a termination (for example, and
without limitation, the right of Executive to contest whether the Company had
Cause to terminate Executive’s employment in a purported termination for Cause)
and, if successful, to receive the payments, benefits, or entitlements due for
such a termination in accordance with the terms hereof.

 

(j)            SERP. Any and
all amounts from time to time due to Executive or his spouse (or their
respective successors) under the terms of the SERP shall remain payable in
accordance with the terms of the SERP, notwithstanding any termination of
Executive’s employment hereunder or execution by Executive of the general
release described above.

 

(k)           No Duty to Mitigate. Executive
shall have no duty to mitigate his damages, including any duty to seek other
employment, in the event of any breach by the Company of this Agreement. In no
event shall any amount payable to Executive hereunder be subject to offset for
any compensation or other amount received from any third party, including
proceeds or benefits received from any insurance carrier.

 

8.             EXCISE TAX
REIMBURSEMENT.

 

(a)           Notwithstanding
any other provision of this Agreement, except as provided in subsection (b), if
the receipt by Executive of, or the vesting of Executive’s right to receive,
any amount for compensation or benefits payable under this Agreement (including
compensation in the form of shares of the Company’s capital stock) or any other
plan, program, agreement, or arrangement of the Company relating to Executive
causes the imposition of a tax (an “Excise
Tax”) on Executive under section 4999(a) of the Internal Revenue
Code or any similar or successor provision that may hereafter be enacted (the “Code”), the Company shall pay to Executive in cash
such additional amount as is necessary so that the total amount received by
Executive under this Agreement and any such other plan, program, agreement, or
arrangement and retained by him after payment of any taxes on such total amount
(including any 

 

federal, state, or local
income taxes and any taxes imposed by such section 4999(a) and including any
taxes in respect of any amount paid to Executive under this section 8) shall
not be less than the net after-tax amount he would have received had such
Excise Tax not been imposed.

 

(b)           The
Company shall not be or at any time become in any way obligated under
subsection (a) to pay any additional amounts as described therein or
contemplated thereby as a result or in respect of the imposition for any reason
of an Excise Tax upon the receipt by Executive of, or the vesting of Executive’s
right to receive, any amount for compensation or benefits payable under this
Agreement (including compensation in the form of shares of the Company’s
capital stock), or any other plan, program, agreement, or arrangement of the
Company relating to Executive, that results from the termination of Executive’s
employment on account of the death or Disability of Executive.

 

(c)           The Company shall pay any additional
amount for which it becomes obligated under subsection (a) to Executive within
one (1) month after the day on which Executive notifies the Company that, and
only to the extent that, (i) the Company has withheld from him an amount in
respect of any such Excise Tax, (ii) Executive has made a payment of estimated
tax in respect of any Excise Tax, (iii) Executive has filed an income tax
return for the year for which any Excise Tax is due showing such Excise Tax as
being due, or (iv) an Excise Tax liability has been asserted by the Internal
Revenue Service or other taxing authority; provided, however,
that Executive shall, at the Company’s written request and at its sole cost and
expense, take such steps as may reasonably be required by the Company to
contest any such assertion of liability if the amount of the Excise Tax to be
contested is at least $50,000.

 

9.             CERTAIN
RESTRICTIONS. 

 

(a)           Confidentiality and
Nonsolicitation. Executive agrees that in the performance of
his duties hereunder he shall abide and be bound by the Company’s Code of Conduct. Without limiting the generality of the
foregoing, Executive acknowledges that he is subject to the confidentiality and nonsolicitation restrictions set
forth in the Code of Conduct.

 

(b)                  Competitive Activity.

 

(1)           In addition to and without limitation of the
restrictions in the Company’s Code of Conduct, Executive agrees that Executive
shall not, without the prior written consent of the Company: 

 

(i)            During
the period he is employed by the Company (the “Employment Period”) and (provided the Company is not in
default for more than thirty (30) days after written notice thereof in the
making of any payments required by section 7 as and when the same are due)
after termination of his employment during the Restriction Period provided for
in paragraph (2) below, directly or indirectly engage or participate in
(as an owner, partner, stockholder, employee, director, officer, agent,
consultant or otherwise), with or without compensation, any business that is
competitive with the business of the Company or any of its subsidiaries
(x) during the Employment Period, as it is being conducted while he is
employed by the Company or (y) during the Restriction Period, as it is
being conducted at the time of the termination of Executive’s employment (a “Competitive Business”); 

 

(ii)           After termination of his employment and during the
Restriction Period provided for in paragraph (2) below, directly or
indirectly solicit or attempt to persuade any person or entity who was, at any
time within the two (2) year period before such termination an employee or
independent contractor of the Company, to terminate his, her, or its
relationship with the Company; or

 

(iii)          After termination of his employment and during the
Restriction Period provided for in paragraph (2) below, directly or
indirectly employ, hire, or retain any person or entity who was an employee or
independent contractor of the Company at any time within the one (1) year
period before such termination.

 

(2)           For purposes hereof, “Restriction
Period” means the period
beginning on the first to occur of the Termination Date and termination of
Executive’s employment with the Company upon or following the expiration of the
Term and ending:

 

(i)            In the case of a termination of
Executive’s employment before the occurrence
of a Change in Control (i) by the Company other than on account of
Disability, whether with or without Cause or (ii) by Executive other than on
account of Disability, whether or not for Good Reason: One (1) year after the
Termination Date;

 

 

(ii)           In the case of a
termination of Executive’s employment by the Company or by Executive for
whatever reason on or after the date of a Change in Control as described in
section 7(f) above: One (1) year after the Termination Date;

 

(iii)          In the case of a termination of Executive’s employment
before the occurrence of a Change in Control by the Company or by Executive on
account of Disability: Three (3) years after the Termination Date; and

 

(iv)          In the case of a
termination of Executive’s employment for any reason upon or after the
expiration of the Term (and without regard to whether such termination occurred
pursuant to the provisions hereof regarding termination): One (1) year after
such date of termination. 

 

(3)           Notwithstanding the foregoing, Executive
may own up to a five percent (5%) interest in a publicly traded corporation or
other entity engaged in a Competitive
Business.

 

(c)           Remedies
for Breach. Executive acknowledges that the provisions of subsections (a) and (b) are reasonable and necessary
for the protection of the Company and that the Company may be irrevocably
damaged if these provisions are not specifically enforced. Accordingly,
Executive agrees that, in addition to any other legal or equitable relief or
remedy available to the Company, the Company
shall be entitled to seek and may obtain an appropriate injunction or other
equitable remedy for the purposes of restraining Executive from any actual or
threatened breach of or otherwise enforcing
these provisions and that no bond or security shall be required in connection therewith) together with an
equitable accounting of all earnings, profits and other benefits arising from
such violation, which rights shall be cumulative. In any action or proceeding
brought to enforce the provisions of subsections
(a) or (b) of this Section 9, the prevailing party shall be
entitled to receive from the other party its 

 

reasonable costs and expenses incurred to enforce
such provisions or defend against such enforcement (as the case may be),
including reasonable attorneys’ fees.

 

(d)           Modification. If
any provision of subsections (a) or
(b) is deemed illegal, invalid, or unenforceable to any extent, under any
present or future law, such provision shall, to the extent not otherwise
subject to being reformed as provided in the next sentence, be fully severable
and this Agreement shall be construed as if such illegal, invalid, or
unenforceable provision were never a part hereof and the remaining provisions
shall remain in full force and effect and shall not be affected by the illegal,
invalid, or unenforceable provision or by its severance. If, however, a court
determines that any of the restrictions contained in subsection (b) are
unreasonable in terms of scope, duration, geographic area, or otherwise, or any
of the provisions in subsections (a) or (b) are otherwise illegal, invalid, or
unenforceable, then such restrictions or provision, as applicable, shall be
reformed to the extent necessary so that the same shall be rendered enforceable
to the fullest extent otherwise permissible under applicable law, and the
parties hereto do hereby expressly authorize any such court to so provide.

 

10.          MISCELLANEOUS.

 

(a)           Entire Agreement;
Amendment. This Agreement, together with the agreements and
plans referenced herein and the exhibits hereto, supersedes all prior
agreements between the parties with respect to its subject matter (including
the Existing Employment Agreement, which is hereby terminated as of the
Effective Date of this Agreement), is intended as a complete and exclusive
statement of the terms of the agreement between the parties with respect
thereto, and may be amended only by a writing signed by both parties. 

 

(b)           Change in Fiscal Year.
Notwithstanding any other provision hereof, in the event of a change in the
period of time constituting the fiscal year of the Company, equitable
adjustments shall be made to those terms hereof that are dependent upon a
determination of fiscal year, as may be reasonably determined by the Company
upon approval of the Board in good faith, but no such change in fiscal year
shall materially increase or decrease the benefits and burdens of the parties
hereunder. 

 

(c)           Incorporation of Recitals
and Exhibits. The background recitals to this Agreement and the
Exhibits hereto are an integral part of and by this reference are hereby
incorporated into this Agreement.

 

(d)           Notices. Any
notice required or permitted hereunder (including any Termination Notice) shall
be in writing and shall be delivered in person (including delivery by commercial
courier service) or sent by certified mail, return receipt requested, to the
following address:

 

	
  If to the Company:

  	
   

  	
  Attn: Chief Financial Officer and

  
	
   

  	
   

  	
  Attn: Chairman,
  Compensation Committee

  
	
   

  	
   

  	
  of the Board of
  Directors

  
	
   

  	
   

  	
  in each case at
  the address of the Company’s

  
	
   

  	
   

  	
  principal office
  in the State of Maryland

  

 

 

 

	
  If to Executive:

  	
   

  	
  To the address of Executive’s

  
	
   

  	
   

  	
  principal residence in the State of Maryland

  
	
   

  	
   

  	
   

  

or to such other address of which either party has theretofore given
notice in accordance with this subsection.

 

(e)           Nonwaiver. The
failure of either party to insist upon strict adherence to any term of this
Agreement on any occasion shall not be considered a waiver or deprive that
party of the right thereafter to insist upon strict adherence to that term or
any other term of this Agreement. Any waiver must be in a writing signed by the
party to be charged therewith.

 

(f)            Assignment. This
Agreement shall inure to the benefit of and be binding upon the parties hereto
and their respective heirs, representatives, successors and assigns. This
Agreement shall not be assignable by either party without the consent of the
other. If Executive should die while any amounts are still payable to Executive
hereunder, all such amounts shall be paid in accordance with the terms of this
Agreement to Executive’s personal representative or other successor in interest.

 

(g)           Counterparts. This
Agreement may be executed in two or more counterparts, each of which shall be
considered an original, but all of which together shall constitute the same
instrument.

 

(h)           Certain Rules of
Construction.

 

(1)           Number. The definitions
contained in section 1 and elsewhere in this Agreement shall be equally
applicable to both the singular and plural forms.

 

(2)           “Including”; “Or.” The word “including”
means and shall be read as “including but not limited to” and the word “or”
means “or” in the nonexclusive sense, i.e., either “and”
or “or.”

 

(3)           Section, etc. References.
Except as otherwise specified herein, references herein to sections,
subsections, and paragraphs are references to the sections, subsections, and
paragraphs of this Agreement.

 

(4)           Headings. The headings and
subheadings in this Agreement are for convenience of reference only and shall
not be given any effect in the interpretation of this Agreement.

 

(i)            Governing Law. This
Agreement shall be governed by the laws of the State of Delaware, without
regard to any provision that would result in the application of the laws of any
other state or jurisdiction.

 

(j)            Severability. The
invalidity or unenforceability of any provision of this Agreement shall not
affect the validity or enforceability of any other provision of this Agreement.

 

 

(k)           Legal Expenses. If the
Company fails at any time to pay or provide for payment of any amount required
to be paid or provided for hereunder, Executive shall be entitled to consult
with independent counsel of his choice, and the Company shall pay the
reasonable fees and expense of such counsel in connection therewith and in
otherwise advising him or in bringing any action or proceeding, or in defending
any action or proceeding, involving Executive’s rights under this Agreement;
provided, however, that if Executive commences any such action or proceeding,
Executive shall not be entitled to recover such fees and costs if it is expressly
determined by the court or tribunal before which the action or proceeding is
conducted that Executive brought the claim in bad faith or the claim was
frivolous. Such right to reimbursement shall be immediate upon the presentment
by Executive of written billings for such reasonable fees and expenses, but, if
Executive commences any action or proceeding against the Company, any award or
judgment against Executive in such action or proceeding shall require him to
repay such amounts, net of any income taxes paid or payable by Executive in
respect of such amounts, if such amounts are incurred in connection with an
action or proceeding commenced by Executive and it is ultimately determined by
the court or tribunal before which the action or proceeding is conducted that
Executive brought such action or proceeding in bad faith or the claim was
frivolous. The Company shall have the burden of proving that any claim was
asserted in bad faith or was frivolous for purposes of this subsection. In
addition, the Company agrees to pay the reasonable fees and expenses of
independent counsel for Executive in connection with the negotiation,
preparation, execution, and implementation of this Agreement. 

 

(l)            Interest on Overdue
Payments. Any amount payable to Executive under this Agreement
that is not paid when due shall bear interest at an annual rate equal to the
prime rate of interest from time to time quoted as such in The Wall
Street Journal plus two percent (2%).

 

(m)          Company Policies, Plans
and Programs. Whenever
any rights under this Agreement depend on the terms of a policy, plan, or
program of application to all employees generally or to any specified class of
employees that is established or maintained by the Company, any determination
of such rights will be made on the basis of the policy, plan, or program in
effect at the time as of which such determination is made. No reference in this
Agreement to any policy, plan, or program of application to all employees
generally or to any specified class of employees that is established or
maintained by the Company shall preclude the Company from prospectively or
retroactively changing or amending or terminating that policy, plan, or program
or adopting a new policy, plan, or program in lieu of the then-existing policy,
plan, or program. This Agreement shall be construed in a manner
generally consistent with any such policy, plan, or program, as existing from
time to time, but in the event of a direct conflict between the provisions of
this Agreement and those of any such policy, plan, or program, the provisions
of this Agreement providing economic benefits or payments to Executive shall
prevail.

 

(n)           Board Action. Any
action that may be taken hereunder by the Board of Directors of the Company
with respect to the compensation and benefits of Executive may be taken by an
authorized committee of the Board.

 

 

(o)           Code Section 409A. To the
extent that this Agreement or any plan, program or award of Company in which
Executive participates or which has been or is granted by Company to Executive,
as applicable, is subject to section 409A of the Code, Company and Executive
agree to cooperate and work together in good faith to timely amend each such
plan, program or award to comply with section 409A of the Code. In the event
that Executive and Company do not agree as to the necessity, timing, or nature
of a particular amendment intended to satisfy section 409A of the Code,
reasonable deference will be given to Executive’s reasonable interpretation of
such provisions. Notwithstanding anything herein to the contrary, in the event
that Executive is subject to any payment or benefit at a time when he is a “specified
employee” (within the meaning of section 409A), the Company shall delay the
making of such payment or benefit to the extent reasonably necessary to satisfy
section 409A. In addition, references to payments to be paid “promptly
following the Termination Date” or similar references shall mean no later than
two and one-half months after the Termination Date.

 

IN WITNESS WHEREOF, the
parties have executed this Agreement under seal as of the Effective Date.

 

	
  Witness/Attest:

  	
   

  	
   

  	
   

  	
  TESSCO
  Technologies Incorporated

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/

  	
   

  	
   

  	
   

  	
  By: 

  	
   

  	
  /s/ David Young

  	
   

  	
  (seal)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  David Young

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Senior Vice
  President and

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Chief Financial
  Officer

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  EXECUTIVE

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Robert B. Barnhill, Jr.

  	
   

  	
  (seal)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Robert B. Barnhill, Jr.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}]]