Document:

Exhibit
10.8

 

Warrant

 

THIS
WARRANT AND THE SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR ANY STATE SECURITIES LAWS. THEY MAY NOT BE SOLD, OFFERED FOR SALE, OR TRANSFERRED IN THE ABSENCE OF EITHER AN EFFECTIVE REGISTRATION
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL FOR THE COMPANY THAT
SUCH TRANSACTION IS EXEMPT FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND APPLICABLE STATE SECURITIES LAWS.

 

W-____

EVO
Transportation & Energy Services, Inc.,

a
Delaware corporation

 

COMMON
STOCK PURCHASE WARRANT

 

	Original
    Issue Date:	June
    1, 2018
	Warrant
    Holder:	Billy
    (Trey) Peck Jr.
	No.
    of Shares:	333,333
    shares of Common Stock

 

This
Common Stock Purchase Warrant (this “Warrant”) certifies that, for value received, the Warrant Holder named
above is entitled to purchase from EVO Transportation & Energy Services, Inc., a Delaware corporation (the “Company”),
during the period specified in this Warrant, Three Hundred Thirty-Three Thousand Three Hundred Thirty-Three (333,333) fully paid
and non-assessable shares of Common Stock (“Warrant Stock”), at the purchase price per share provided in Section
1.2 of this Warrant (the “Warrant Exercise Price”), all subject to the terms and conditions set forth in this
Warrant. Capitalized terms not otherwise defined shall have the meanings set forth in Section 5 below. This Warrant is issued
in connection with that certain Equity Purchase Agreement by and between the Company and the Warrant Holder dated June 1, 2018
(the “Purchase Agreement”).

 

Section
1.Vesting; Period for Exercise and Exercise Price.

 

1.1
Vesting; Period for Exercise. If the Warrant Holder has been subject to continuous employment by the Company from the Original
Issue Date listed above through the third anniversary of the Original Issue Date (the “Vesting Date”), then
the right to purchase shares of Warrant Stock represented by this Warrant may be exercised during the period commencing on the
Vesting Date and expiring on the fifth anniversary of such date (the “Expiration Date”). From and after the
Expiration Date this Warrant shall be null and void and of no further force or effect.

 

1.2
Warrant Exercise Price. The Warrant Exercise Price shall be $7.00 per share, subject to adjustment as hereinafter provided.

 

1.3
Forfeiture. If Warrant Holder’s employment with the Company is terminated for any reason whatsoever, whether by the
Company or by Warrant Holder, whether with or without cause, or voluntarily or involuntarily (including as a result of death or
disability) prior to the Vesting Date, then this Warrant will immediately be forfeited by the Warrant Holder upon the occurrence
of such event (subject to Section 1.4 in the case of certain employment terminations).

 

     

     

    

 

1.4
Acceleration of Vesting. If Warrant Holder’s employment with the Company is terminated prior to the Vesting Date
(i) by the Company other than for Cause (as defined in the Employment Agreement) or (ii) by the Warrant Holder for Good Reason
(as defined in the Employment Agreement), and Warrant Holder executes and does not rescind a release in favor of the Company and
its affiliates in the form required by the Company, then this Warrant will be deemed to have not been forfeited and the Vesting
Date will be the day immediately after the expiration of the rescission period provided in the release.

 

Section
2.Exercise of Warrant.

 

2.1
Manner of Exercise. The Warrant Holder may exercise this Warrant on or after the Vesting Date, but not later than the Expiration
Date, during normal business hours on any business day by surrendering this Warrant to the Company at the principal office of
the Company or the principal office of its transfer agent (the “Transfer Agent”), together with an executed
Notice of Exercise attached hereto as Annex A. The Notice of Exercise shall be accompanied by payment of the Warrant Exercise
Price for the number of shares of Warrant Stock for which this Warrant is then exercised, by cash or by certified or official
bank check.

 

2.2
When Exercise Effective. Each exercise of this Warrant shall be deemed to have been effected on the day on which all requirements
of Section 2.1 shall have been met with respect to such exercise. At such time the Person in whose name any certificate for shares
of Warrant Stock shall be issuable upon such exercise shall be deemed for all corporate purposes to have become the holder of
record of such shares, regardless of the actual delivery of certificates evidencing such shares.

 

2.3
Issuance of Stock. As soon as practicable after each exercise of this Warrant, the Company at its expense will cause to
be issued via book-entry in the name of the Warrant Holder or as the Warrant Holder may direct, the number of shares of Warrant
Stock to which the Warrant Holder shall be entitled upon such exercise.

 

2.4
Partial Exercise. This Warrant may be exercised in part, and the Warrant Holder shall be entitled to receive a new warrant,
which shall be dated as of the date of this Warrant, covering the number of shares in respect of which this Warrant shall not
have been exercised.

 

Section
3.Warrant Adjustments. Warrant and the Warrant Exercise Price shall be subject to adjustment from time to time upon the occurrence
of certain events as follows:

 

3.1
Reclassification or Merger. In case of any capital reclassification or reorganization (other than a result of a subdivision,
combination or dividend as described below), or in case of any merger or consolidation of the Company with or into another corporation
(other than a merger with another corporation in which the Company is a continuing corporation and which does not result in any
reclassification or change of outstanding securities issuable upon exercise of this Warrant), or in case of any sale of all or
substantially all of the assets of the Company, the Company, or such successor or purchasing corporation, as the case may be,
shall execute and deliver to the Warrant Holder a new Warrant (in form and substance reasonably satisfactory to the Warrant Holder)
providing that the Warrant Holder shall have the right to exercise such new Warrant and upon such exercise to receive, in lieu
of the shares of the Common Stock theretofore issuable upon exercise of this Warrant, the kind and amount of shares of stock,
other securities, money and property receivable upon such reclassification, change or merger had the Warrant been exercised immediately
prior to such event. Such new Warrant shall provide for adjustments that shall be as nearly equivalent as may be practicable to
the adjustments provided for in this Section 3 to pursue the economic benefit intended to be conferred upon the Warrant Holder
by this Warrant. The provisions of this Section 3.1 shall similarly apply to any successive reclassification, changes, mergers
and transfers.

 

    	 	2	 

     

    

 

3.2
Subdivisions or Combination of Shares. If the Company, at any time while this Warrant remains outstanding and unexpired,
shall subdivide or combine its Common Stock or in the event of any dividend payable on the Common Stock in shares of the Common
Stock, the number of shares of the Warrant Stock issuable upon exercise hereof shall be proportionately adjusted and the Warrant
Exercise Price shall be increased or decreased, as the case may be, so that the aggregate Warrant Exercise Price of this Warrant
shall at all times remain unchanged.

 

3.3
Notice of Adjustment Events. Whenever the Company engages in an event which would give rise to adjustments under this Section
3, the Company shall mail to the Warrant Holder, at least ten (10) days prior to the record date with respect to such event or,
if no record date shall be established, at least ten (10) days prior to such event, a notice specifying (i) the nature of the
contemplated event, and (ii) the date on which any such record is to be taken for the purpose of such event, and (iii) the date
on which such event is expected to become effective, and (iv) the time, if any is to be fixed, when the holders of record of Common
Stock (or other securities) shall be entitled to exchange their shares of Common Stock (or other securities) for securities or
other property deliverable in connection with such event.

 

3.4
Notice of Adjustments. Whenever the Warrant Exercise Price shall be adjusted pursuant to the provisions hereof, the Company
shall within thirty (30) days of such adjustment deliver a certificate signed by its Chief Executive Officer, Chief Financial
Officer, Secretary or Assistant Secretary to the Warrant Holder as the registered holder hereof setting forth, in reasonable detail,
the event requiring the adjustment, the amount of the adjustment, the method by which such adjustment was calculated, and the
Warrant Exercise Price after giving effect to such adjustment.

 

Section
4.Ownership, Transfer and Substitution of Warrants.

 

4.1
Transfer and Exchange of Warrants. The Warrant Holder, by acceptance hereof, agrees to give written notice to the Company
before transferring this Warrant or transferring any Warrant Stock issuable or issued upon the exercise hereof of such Warrant
Holder’s intention to do so, describing briefly the manner of any proposed transfer of this Warrant or such Warrant Holder’s
intention as to the disposition to be made of shares of Warrant Stock issuable or issued upon the exercise hereof. For any proposed
transfer other than a transfer to an affiliate (as defined by Rule 405 of Regulation C under the Securities Act of 1933, as amended)
of the Warrant Holder, such Warrant Holder shall also provide the Company with an opinion of counsel reasonably satisfactory to
the Company to the effect that the proposed transfer of this Warrant or disposition of shares may be effected without registration
or qualification (under any Federal or State law) of this Warrant or the shares of Warrant Stock issuable or issued upon the exercise
hereof. Upon receipt by the Company of such written notice and, for transfers to non-affiliates, opinion of counsel, such Warrant
Holder shall be entitled to transfer this Warrant, or to exercise this Warrant in accordance with its terms and dispose of the
shares received upon such exercise or to dispose of shares of Warrant Stock received upon the previous exercise of this Warrant,
all in accordance with the terms of the notice delivered by the Warrant Holder to the Company, provided that an appropriate legend
respecting the aforesaid restrictions on transfer and disposition may be endorsed on this Warrant or the certificates for such
shares. Notwithstanding the foregoing, upon registration of the Warrant Shares under the Securities Act, no such opinion shall
be required.

 

4.2
Transfers; Registered Holder as Owner. Subject to the provisions of Section 4.1 hereof, this Warrant and all rights hereunder
are transferable, in whole or in part, at the principal office of the Company by the Warrant Holder hereof in person or by duly
authorized attorney, upon surrender of this Warrant properly endorsed. Each taker and holder of this Warrant, by taking or holding
the same, consents and agrees that the bearer of this Warrant, when endorsed, may be treated by the Company and all other persons
dealing with this Warrant as the absolute owner hereof for any purpose and as the person entitled to exercise the rights represented
by this Warrant, or to the transfer hereof on the books of the Company, any notice to the contrary notwithstanding; but until
such transfer on such books, the Company may treat the registered holder hereof as the owner for all purposes.

 

    	 	3	 

     

    

 

Section
5.Definitions.

 

As
used in this Warrant, the following terms have the meanings ascribed to such terms below.

 

5.1
“Board” means the Board of Directors of the Company.

 

5.2
“Common Stock” means the Company’s Common Stock, $0.0001 par value per share.

 

5.3
“Employment Agreement” means the employment agreement between the Warrant Holder and the Company and dated
of even date herewith.

 

5.4
“Fair Market Value” means, as of any particular date: (a) the volume weighted average of the closing sales
prices of the Common Stock for such day on all domestic securities exchanges on which the Common Stock may at the time be listed;
(b) if there have been no sales of the Common Stock on any such exchange on any such day, the average of the highest bid and lowest
asked prices for the Common Stock on all such exchanges at the end of such day; (c) if on any such day the Common Stock is not
listed on a domestic securities exchange, the closing sales price of the Common Stock as quoted on the OTC Bulletin Board, the
Pink OTC Markets or similar quotation system or association for such day; or (d) if there have been no sales of the Common Stock
on the OTC Bulletin Board, the Pink OTC Markets or similar quotation system or association on such day, the average of the highest
bid and lowest asked prices for the Common Stock quoted on the OTC Bulletin Board, the Pink OTC Markets or similar quotation system
or association at the end of such day; in each case, averaged over twenty (20) consecutive business days ending on the business
day immediately prior to the day as of which “Fair Market Value” is being determined; provided, that if the
Common Stock is listed on any domestic securities exchange, the term “business day” as used in this sentence means
business days on which such exchange is open for trading. If at any time the Common Stock is not listed on any domestic securities
exchange or quoted on the OTC Bulletin Board, the Pink OTC Markets or similar quotation system or association, or if the Board
determines in its discretion that the closing prices or bid and asked prices, as applicable, do not accurately reflect the “Fair
Market Value” of the Common Stock due to insufficient trading volume, then the “Fair Market Value” of the Common
Stock shall be the fair market value per share as determined in good faith by the Board.

 

5.5
“OTC Bulletin Board” means the Financial Industry Regulatory Authority OTC Bulletin Board electronic inter-dealer
quotation system.

 

5.6
“Person” means an individual, partnership, corporation, business trust, limited liability company, joint stock
company, trust, unincorporated association, joint venture, or other entity of whatever nature.

 

5.7
“Pink OTC Markets” means the OTC Markets Group Inc. electronic inter-dealer quotation system, including OTCQX,
OTCQB and OTC Pink.

 

5.8
“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

Section
6.No Rights or Liabilities as Shareholder.

 

Nothing
contained in this Warrant shall be construed as conferring upon the Warrant Holder any rights as a Shareholder of the Company
or as imposing any liabilities on the Warrant Holder to purchase any securities or as a Shareholder of the Company, whether such
liabilities are asserted by the Company or by creditors of the Company.

 

    	 	4	 

     

    

 

Section
7.Miscellaneous.

 

7.1
Amendment and Waiver. This Warrant may be amended with, and any term, covenant, agreement or condition contained in this
Warrant may be waived with, the written consent of the Company and the Warrant Holder. Any waiver of any term, covenant, agreement
or condition contained in this Warrant shall not be deemed a waiver of any other term, covenant, agreement or condition, and any
waiver of any default in any such term, covenant, agreement or condition shall not be deemed a waiver of any later default thereof
or of any default of any other term, covenant, agreement or condition.

 

7.2
Representations and Warranties to Survive Closing. All representations, warranties and covenants contained herein shall
survive the execution and delivery of this Warrant and the issuance of any Warrant Stock upon the exercise hereof.

 

7.3
Severability. The invalidity or unenforceability of any provisions hereof in any jurisdiction shall not affect the validity,
legality or enforceability of the remainder hereof in such jurisdiction or the validity, legality or enforceability hereof, including
any such provision, in any other jurisdiction, it being intended that all rights and obligations of the parties hereunder shall
be enforceable to the fullest extent permitted by law.

 

7.4
Successors and Assigns. All representations, warranties, covenants and agreements of the parties contained in this Warrant
or made in writing in connection herewith, shall, except as otherwise provided herein, be binding upon and inure to the benefit
of their respective successors and permitted assigns.

 

7.5
Notices. All communications in connection with this Warrant shall be in writing and shall be deemed properly given if hand
delivered or sent by telecopier (provided that such communication is confirmed by same-day deposit in the United States mail first
class postage prepaid) or overnight courier with adequate evidence of delivery or sent by registered or certified mail return
receipt requested and, if to the Warrant holder, addressed to such Warrant Holder at his or its address as shown on the books
of the Company or its Transfer Agent, and if to the Company, at its offices at:

 

EVO
Transportation & Energy Services, Inc.

8285
West Lake Pleasant Parkway

Peoria,
AZ 85382

Attention:
Chief Executive Officer

 

or
such other addresses or Persons as the recipient shall have designated to the sender by a written notice given in accordance with
this Section 7.5. Any notice called for hereunder shall be deemed delivered when sent in accordance with this Section 7.5.

 

7.6
Fractional Shares. No fractional shares of Warrant Stock will be issued in connection with any exercise hereunder, but
in lieu of such fractional shares the Company shall make a cash payment to the Warrant Holder equal to the fractional share issuable
times the fair market value of one share of Common Stock, as determined by the Company’s Board of Directors.

 

7.7
Governing Law. The validity and construction of this Warrant and all matters pertaining hereto are to be determined in
accordance with the laws of the State of Delaware without reference to the conflict of law principles of that state.

 

    	 	5	 

     

    

 

7.8
Headings. The headings used herein are solely for the convenience of the parties and shall not serve to modify or interpret
the text of the Sections at the beginning of which they appear.

 

7.9
Signatures. This Warrant may be executed by facsimile or electronic signature.

 

IN
WITNESS WHEREOF, the Company has caused this Warrant to be executed as of the day first above written.

 

	 	EVO
    TRANSPORTATION & ENERGY SERVICES, INC.,
	 	a
    Delaware corporation
	 	 	 
	 	By:	/s/
    John P. Yeros
	 	Name:	John
    P. Yeros
	 	Its:	Chief
    Executive Officer

  

    	 	6	 

     

    

 

Annex
A to Common Stock Purchase Warrant

 

NOTICE
OF EXERCISE

(Complete
and sign only upon exercise of the

Common
Stock Purchase Warrant in whole or in part.)

 

	To:	EVO Transportation & Energy Services, Inc.

 

The
undersigned, the holder of the attached Common Stock Purchase Warrant to which this Notice of Exercise applies (the “Warrant”),
hereby irrevocably elects to exercise pursuant to Section 2.1 of the Warrant and to purchase _________ shares of Common Stock,
from EVO Transportation & Energy Services, Inc. and herewith makes payment of $____________________________ therefor in cash
or by certified or official bank check.

 

The
undersigned hereby requests that such securities be issued in the name(s) and delivered to the address(es) as follows:

 

Name:
________________________________________________________________________

Address:
______________________________________________________________________

Social
Security Number: __________________________________________________________

Deliver
to: _____________________________________________________________________

Address:
______________________________________________________________________

 

If
the foregoing evidences an exercise of the Warrant to purchase fewer than all of the shares of Common Stock to which the undersigned
is entitled under such warrant, please issue a new warrant, of like tenor, relating to the remaining portion of the securities
issuable upon exercise of such warrant in the name(s), and deliver the same to the address(es), as follows:

 

Name:
________________________________________________________________________

Address:
______________________________________________________________________

Dated:
________________________________________________________________________

 

	 	 	 
	(Name
    of Warrant Holder)	 	(Social Security or Taxpayer Identification
Number of Warrant Holder, if applicable) 

 

SIGN
HERE:

The
undersigned and any recipient of Common Stock or a new Warrant hereunder are “accredited investors” as defined in
Regulation D promulgated under the Securities Act of 1933, as amended.

 

	 	 	 
	(Signature of Warrant Holder or Authorized Signatory)	 	Date
	 	 	 
	 	 	 
	(Type or Print Name of Warrant Holder or Authorized Signatory)	 	 

 

NOTE:The
above name and signature should correspond exactly with the name on the first page of this Warrant or with the name of the assignee
appearing in the form of assignment attached as Annex B to the Warrant.

 

    	 	7	 

     

    

 

Annex
B to Common Stock Purchase Warrant

 

FORM
OF ASSIGNMENT

 

(To
be executed upon transfer of Common Stock Purchase Warrant)

 

FOR
VALUE RECEIVED, the undersigned hereby sells, assigns and transfers to ____________________ the right represented by the within
Warrant, as such right may apply to _________ shares of Common Stock which are the subject of the within Warrant, together with
all rights, title and interest therein, and does hereby irrevocably constitute and appoint ____________________ attorney to transfer
such Warrant on the warrant register of the within named Company, with full power of substitution.

 

DATED:
_________________.

 

	 	Signature:
	 	 
	 	 

 

(Signature
must conform in all respects to name of Holder as specified on the face of the Warrant)

 

    	 	8Exhibit

AMENDED AND RESTATED
EMPLOYMENT AGREEMENT

THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the “Agreement”) is executed on the 6th day of June, 2018 (the “Effective Date”) by and between Tech Data Corporation, a Florida corporation (the “Employer”), and Richard T. Hume (the “Employee”). 
RECITALS
A.     Employer desires to promote Employee to the position of Chief Executive Officer. 
B.     Employee desires to serve as Chief Executive Officer. 
NOW, THEREFORE, in consideration of the mutual covenants, promises and agreements set forth herein, the receipt and adequacy of which are hereby acknowledged, Employer and Employee agree as follows: 
1.Employment. 
1.1    Position. Subject to the terms and conditions of this Agreement, Employer hereby engages Employee, and Employee hereby accepts employment, in the position of Chief Executive Officer, with all the duties, responsibilities and authority normally associated with such position.  Employer and Employee acknowledge that, as Chief Executive Officer, Employee shall be Employer’s most senior officer and shall report to the Board of Directors (the “Board”), with other reporting as is appropriate under the Board’s normal structure.  Further, so long as Employee serves as Chief Executive Officer, the Board shall annually nominate Employee to serve as a member of the Board, to be voted upon by the shareholders at Employer’s annual meeting.
1.2    Duties/Other Employment. While serving as the Chief Executive Officer, Employee shall devote substantially all of his business time and all reasonable efforts to his employment and perform diligently such duties. Employee shall not, without the prior written consent of the Board, directly or indirectly, other than in the performance of duties naturally inherent in the businesses of Employer and/or in furtherance thereof, render services of a business, professional or commercial nature to any other person or firm, whether for compensation or otherwise; provided, however, that so long as it does not interfere with his full-time employment hereunder, Employee may attend to outside investments, and upon approval of the Board, the Employee may serve as a director of a corporation which does not compete with Employer (within the meaning of Section 5.1), and serve as a director, trustee or officer of or otherwise participate in educational, welfare, social, religious and civic organizations. Employee’s work location shall be at the Employer’s headquarters in Clearwater, Florida. In Employee's position as Employer’s principal executive officer and as a member of the Board he will be subject to Section 16 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and the Employer shall assist Employee in timely making any requisite filings with the Securities and Exchange Commission (“SEC”). 
2.    Employment Term. Subject to the provisions for termination as hereinafter provided, the term of Employee’s employment as Chief Executive Officer with the Employer shall begin on the Effective Date and shall continue until such time as it is terminated as provided in Section 7 (the “Term”).  Employer and Employee acknowledge that the term of Employee’s employment with Employer commenced on March 1, 2016.
3.    Remuneration. During the Term that Employee is employed by Employer pursuant to this Agreement, Employer shall pay, provide or make available to Employee the following compensation, remuneration and other benefits: 
3.1    Salary. Effective as of the Effective Date, Employer shall increase Employee’s annual base salary to the amount of Nine Hundred Thousand dollars ($900,000) (the “Base Salary”) payable in biweekly installments consistent with its practices at its Clearwater, Florida location (subject to all applicable governmental withholdings, and any deductions or withholdings authorized by Employee). The Base Salary shall be reviewed annually by the Board for adjustment consistent with the review by the compensation committee of the Board (the “Compensation Committee”).
3.2    Annual Bonus.  During each fiscal year in the Term, Employee shall be eligible to participate in the Employer’s Executive Incentive Bonus Plan or such other annual bonus plan applicable to the Employer’s senior executive officers.  The increase in Employee’s target bonus opportunity for the 2019 fiscal year (“FY2019”) as of the Effective Date has been separately communicated to Employee.  Employee’s actual bonus earned for FY2019 shall be subject to proration as of the Effective Date.  Proration shall be based on the number of days from the start of the FY2019 until the Effective Date and the Effective Date through the last day of FY2019, each for the bonus opportunity before and after the increase at the Effective Data.  The target bonus opportunity shall be reviewed annually by the Board consistent with the review of the Compensation Committee.
3.3    Equity Incentives.  In each fiscal year during the Term, Employee shall be entitled to participate in long-term equity incentives provided by Employer to its senior executive officers.  The amount of such awards and the terms and conditions thereof shall be determined by the Board consistent with the review by the Compensation Committee.  Employee shall receive an additional award of long-term equity incentives granted during June 2018. The amount of such additional promotion award has been separately communicated to Employee.
3.4    Benefits, Reimbursement of Expenses, Etc. Employee shall be eligible to participate in or receive benefits under the vacation and paid time off, health and welfare, deferred compensation and retirement plans generally provided or made available to other senior executive officers of Employer from time to time, including the Executive Choice Plan, subject to the regular eligibility, operational and other requirements of such plans. 
3.5    Code Section 280G. In the event that it is determined that any payment or distribution of any type to or for Employee's benefit made by the Employer, by any of its affiliates, by any person who acquires ownership or effective control or ownership of a substantial portion of the Employer’s assets (within the meaning of Code Section 280G and the regulations thereunder) or by any affiliate of such person, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise (collectively, the “Total Payments”), would be subject to the excise tax imposed by Code Section 4999 or any interest or penalties with respect to such excise tax (such excise tax, together with any such interest or penalties, are collectively referred to as the “Excise Tax”), then such payments or distributions or benefits shall be payable either: (i) in full or (ii) as to such lesser amount which would result in no portion of such payments or distributions or benefits being subject to the Excise Tax. Employee shall receive the greater, on an after-tax basis, of the amount reflected in (i) or (ii) above. 
If the Total Payments must be reduced as provided in the previous paragraph, the reduction shall occur in the following order: (1) reduction of cash payments for which the full amount is treated as a “parachute payment” (as defined under Code Section 280G and the regulations thereunder); (2) cancellation of accelerated vesting (or, if necessary, payment) of cash awards for which the full amount is not treated as a parachute payment; (3) reduction of any continued employee benefits and (4) cancellation of any accelerated vesting of equity awards.  In selecting the equity awards (if any) for which vesting will be reduced under clause (4) of the preceding sentence, awards shall be selected in a manner that maximizes the after-tax aggregate amount of reduced Total Payments provided to Employee, provided that if (and only if) necessary in order to avoid the imposition of an additional tax under Section 409A of the Code, awards instead shall be selected in the reverse order of the date of grant.  For the avoidance of doubt, for purposes of measuring an equity compensation award’s value to Employee when performing the determinations under the preceding paragraph, such award’s value shall equal the then aggregate fair market value of the vested shares underlying the award less any aggregate exercise price less applicable taxes.  If two or more equity awards are granted on the same date, each award will be reduced on a pro-rata basis.  
Employee and the Employer shall furnish such documentation and documents as may be necessary for the Employer’s independent external accountants to perform the requisite Code Section 280G computations and analysis. The Employer shall bear all costs that may incurred in connection with performing any calculations contemplated by this Section 3.8. 
4.    Confidentiality, Non-Compete, Non-Disparagement, Etc. 
4.1    Confidential Information. 
(a)    Employee acknowledges that Employer’s Confidential Information is the exclusive property of Employer, is material and confidential, and greatly affects the effective and successful conduct of the business of Employer. Employee agrees to use Employer’s Confidential Information only for the benefit of Employer and shall not at any time, directly or indirectly, either during Employee’s employment with Employer or afterward, divulge, reveal or communicate Employer’s Confidential Information to any person, firm, corporation or entity whatsoever, or use Employer’s Confidential Information for Employee’s own benefit or for the benefit of others.
(b)    Definition. As used in this Section 4.1, the term “Confidential Information” means any and all information, including, but not limited to, information or ideas conceived or developed by Employee, applicable to or in any way related to (i) the present or future business of Employer, (ii) research and development related to Employer’s business, (iii) the business of any customer or vendor of Employer, (iv) trade secrets, (v) processes, formulas, data, program documentation, algorithms, source codes, object codes, know-how, improvements, inventions, and techniques, (vi) all plans or strategies for marketing, development and pricing, and (vii) all information concerning existing or potential customers or vendors, and all similar information disclosed to Employer by other persons and any information in documents or computers that Employer designates as confidential by notation therein or thereon.
4.2    Non-Disparagement and Non-Publication. Employee shall not, at any time, denigrate or disparage Employer or any of its Board of Directors or officers, and Employer and its Board of Directors and officers shall not, at any time, denigrate or disparage Employee. 
4.3    Return of Employer’s Property. Employee agrees to make a prompt and complete disclosure to Employer of any Confidential Information in Employee’s possession, upon such a request by Employer. Upon termination of employment and at any other time upon request, Employee further agrees to surrender to Employer all documents, writings and other such materials produced by Employee or coming into Employee’s possession by or through employment with Employer during the term of such employment, and agrees that all such materials are at all times Employer’s property. 
4.4    Cooperation. Employee agrees to fully cooperate, in all reasonable respects, with Employer in regard to any internal or external investigations of Employer, its business, its business practices or the like relating to the period in which Employee is or was employed by Employer. If Employee is requested to provide assistance after termination of his employment, then he will be reimbursed for any reasonable expenses. All payments to Employee under this Section 4.4 shall be made within 30 days of submission of applicable receipts or invoices. 
4.5    Legal Disclosure. Notwithstanding the foregoing, no confidentiality, non-disparagement or other obligation owed by Employee to the Employer or its affiliates shall prohibit Employee from reporting, whether anonymously or on a disclosure basis, possible violations of federal law or regulation to any governmental agency or entity in accordance with the provisions of and rules promulgated under Section 21F of the Securities Exchange Act of 1934 or Section 806 of the Sarbanes-Oxley Act of 2002, or shall require Employee to notify the Employer or its affiliates of any such report, and none of the Employer or any of its affiliates will retaliate against Employee for any such report. In making any such report, however, Employee is not authorized to disclose communications with counsel that were made for the purpose of receiving legal advice, that contain legal advice or that are protected by the attorney work product or similar privilege.
5.    Non-Compete and Non-Solicitation Provisions.
5.1    Non-Compete. As a condition to Employer’s obligations under this Agreement, Employee agrees that for a period of two (2) years following the effective date of separation of employment from Employer, anywhere in the world (and each incorporated and unincorporated area thereof), Employee will not own, manage, operate, control, be employed by, act as an agent for, participate in or be connected in any manner with the ownership, management, operation or control of any business which is engaged in wholesale distribution of computer hardware and/or software products or mobility products or IT services as its primary line of business, including but not limited to Ingram-Micro or its affiliates, ALSO/Actebis, West Coast, Arrow Electronics, Inc., Avnet, Synnex, Brightstar, CDW, Amazon, D&H Distributing Co, Insight, Pivot and Dell. Nothing contained in this Section 5.1 shall be interpreted to prohibit Employee from owning stock in publicly traded corporations that may compete with Employer provided such stock ownership does not represent a majority or controlling interest in such corporations. 
5.2    Non-Solicitation. Employee also agrees that for a period of one (1) year following the effective date of separation of employment from Employer, Employee will not: (i) directly or indirectly, hire or participate in the hiring of any employee of Employer or its subsidiaries, provided, however that this restriction shall not apply either to former employees of Employer or to employees who respond to a general advertisement; (ii) solicit or induce, or attempt to solicit or induce, any employee of Employer or its subsidiaries to leave Employer for any reason; and (iii) solicit or induce, or attempt to solicit or induce any customer of or vendor to Employer or its subsidiaries to stop doing business with or move some or all of such customer or vendor business to a person or entity other than Employer and its subsidiaries. Employee acknowledges that irreparable harm will be suffered by Employer in the event of the breach or potential breach by Employee of any of Employee’s obligations under this Section 5. 
5.3    Invalid Provision. The validity or unenforceability of any provision of this Section 5 shall not affect the validity or enforceability of any other provision of this Agreement. Employee and Employer have specifically agreed and acknowledged that the provisions in Section 5 are fair, reasonable and material. If the scope of any restriction or covenant contained herein should be or become too broad or extensive to permit enforcement to its fullest extent, then such restriction or covenant shall be enforced to the maximum extent permitted by law, and Employee hereby consents and agrees that (a) it is the parties intention and agreement that this Section 5 be enforced as written, and (b) in the event a court of competent jurisdiction should determine that any restriction or covenant is too broad or extensive to permit enforcement to its fullest extent, the scope of any such restriction or covenant may be modified but only as necessary as the court, in its judgment, deems warranted in order to have the fullest enforcement possible consistent with governing law. 
5.4    Interpretation. Should any provision of this Section 5 be declared illegal or unenforceable by any court of competent jurisdiction and cannot be modified to be enforceable, such provision shall immediately become null and void, leaving the remainder of this Section 5 in full force and effect. 
6.    Equitable Relief and Survival. The parties acknowledge that if Employee were to breach the provisions of Sections 4 or 5 hereof, money damages alone would not be a sufficient remedy. Therefore, the parties agree that, in addition to money damages and any other relief available, Employer shall also be entitled to obtain an injunction or other equitable relief to enforce the provisions of Sections 4 and/or 5.  The provisions of Sections 4, 5 and 6 shall survive the termination of this Agreement indefinitely. 
EMPLOYEE HAS CAREFULLY READ AND CONSIDERED SECTIONS 4, 5 AND 6, ABOVE AND AGREES THAT THEY ARE FAIR, REASONABLE AND REASONABLY REQUIRED TO PROTECT EMPLOYER’S LEGITIMATE BUSINESS INTERESTS. EMPLOYEE HAS BEEN ADVISED TO CONSULT WITH AN ATTORNEY PRIOR TO EXECUTION OF THIS AGREEMENT. 
7.    Termination. 
7.1    Employment Termination in General. Anything contained in this Agreement to the contrary notwithstanding, Employee’s employment with Employer under this Agreement is “at will” and may be terminated by either party at any time upon 15 days advance written notice to the other party, but subject to the provisions of this Section 7. 
7.2    Severance Benefits.  The Employee is entitled to participate in the Employer’s Executive Severance Plan as in effect from time to time as a “Tier 0” participant.  Employee shall be entitled to any benefits payable under Employer’s Executive Severance Plan, but only if and as provided for therein, subject to the following modifications (which apply to Employee only, and no other participant thereunder) and provided, further, that no modification, amendment or termination of the Executive Severance Plan shall be applicable to Employee during the term of his employment with Employer (or during the “Benefits Period” as defined in the Executive Severance Plan) without Employee’s prior written consent: 
		
	(a)
	a termination of Employee’s employment for “gross misconduct” shall be limited only to circumstances where the Board makes a good faith determination that one or more of the following acts or omissions by Employee has both occurred and resulted in (or is reasonably likely to result in) material harm or damage to Employer or Employer’s reputation: 

		
	(i)
	a willful and repeated material failure to follow the reasonable and lawful instructions of the Board or a material breach of duties specified in Section 1.2 of this Agreement; 

		
	(ii)
	a misappropriation of Employer’s property or act of fraud or embezzlement which is willful and material; 

		
	(iii)
	a willful and material violation of Employer’s written policies applicable to all executive officers of Employer that are provided to Employee, including, without limitation, its Code of Conduct; 

		
	(iv)
	conviction or a plea of “no contest” (or equivalent) to a crime involving breach of trust, a felony or state or federal securities laws; or 

		
	(v)
	willful action by, or directed by, Employee that results in a material violation by Employer of applicable securities laws and regulations, listing standards or other material compliance requirements imposed upon Employer; 

The foregoing items (i) through (v) are an exclusive list of the acts or omissions that shall be considered “gross misconduct.” For the avoidance of doubt, failure to achieve Employee’s performance objectives will not be considered “gross misconduct.” No act, or failure to act, by Employee shall be considered “willful” unless committed without a reasonable belief that the act or omission was lawful and in the Employer's best interest. The Board shall provide Employee with 15 days advance written notice specifically detailing the basis for a termination of employment for gross misconduct. During the 15 day period after Employee has received such notice, Employee shall have the opportunity to cure any of the above, that are reasonably subject to cure, and also to present his reasons to the Board as to why the circumstances do not or should not give rise to “gross misconduct” hereunder (with the assistance of Employee's legal representative) before any termination for gross misconduct is finalized by the Board. Employee shall continue to receive the compensation and benefits provided by this Agreement during the 15 day period after receiving the written notice of the Employer's intention to terminate Employee's employment for gross misconduct. 
		
	(b)
	a termination by Employee of his employment will be deemed to be effected for "Good Reason" if any of the following occur without Employee's prior express written consent:

		
	(i)
	Employee’s Base Salary or Target Bonus are reduced, or there is no Bonus Plan available to Employee;

		
	(ii)
	Employee’s position, authority, duties or responsibilities as Chief Executive Officer are reduced or diminished (including without limitation if Employee is no longer the sole Chief Executive Officer of the Employer’s ultimate parent entity or if Employee is no longer a voting member of the Board of Directors of the Employer’s ultimate parent entity);

		
	(iii)
	Employee ceases to report directly to the Board; 

		
	(iv)
	Employee's principal place of employment with Employer is relocated to more than fifty (50) miles from the work location specified above in Section 1.2; and

		
	(v)
	Employer breaches any material provision of this Agreement or any of its other agreements with Employee (including without limitation Employer's failure to timely provide Employee the cash compensation, equity compensation and/or employee benefits owed to Employee under this Agreement).

The foregoing items (i) through (v) are an exclusive list of the acts or omissions that shall be considered “Good Reason.”   In order to provide Employer a reasonable opportunity to cure circumstances constituting “Good Reason,” the Employee shall provide Employer with 30 days advance written notice of Employee’s intention to terminate employment for Good Reason, specifically detailing the basis for a termination of employment for Good Reason. During the 30-day period after Employer has received such notice, Employer shall have the opportunity to cure any of the above that are reasonably subject to cure. In the event the Employer fails to cure, Employee shall be entitled to terminate employment for Good Reason. If Employer cures, then Employee shall be deemed to have withdrawn his intention to terminate and Employee’s employment shall continue. 
		
	(c)
	Employee shall be entitled to severance payments and benefits under the Executive Severance Plan if (i) Employee terminates his employment for Good Reason, (ii) the Employer terminates Employee's employment for any reason other than gross misconduct (each of (i) and (ii), a "Qualifying Termination"). In the event of a Qualifying Termination, Employee shall also be entitled to receive payments and benefits payable with respect to such termination of employment under the terms of the plans and the payments and benefits as described in Sections 7.2(d) and (e) of this Agreement.  Section IV.5. of the Executive Severance Plan shall be modified such that severance payments will be made to Employee’s estate or heirs in the event of Employee’s death during the Benefits Period. 

		
	(d)
	For purposes of determining the “Benefits Period” under Section IV.1.(b) of the Executive Severance Plan, such period shall be deemed to be twenty-four (24) months for payments of Base Salary; and a pro rata portion of the Target Bonus for the Fiscal Year of termination shall be paid to Employee in accordance with Article IV.2 of the Executive Severance Plan (but in no event later than 75 days after the end of the Fiscal Year of Employee’s termination).

		
	(e)
	Any unvested buy-out RSUs granted to Employee in connection with the commencement of employment in 2016 shall become fully vested and payable no later than 30 days after a Qualifying Termination.

8.    Arbitration. The parties hereto agree that, except as provided in Section 6 above relating to enforcement of the covenants set forth in Sections 4 and 5 of this Agreement, any controversy or claim arising out of or relating to this Agreement, or the breach thereof, shall be settled by arbitration administered by the American Arbitration Association under its National Rules for the Resolution of Employment Disputes subject to the following: (a) such arbitration shall take place in Clearwater, Florida; and (b) discovery in such arbitration shall be governed by the Federal Rules of Civil Procedure. Arbitration-specific costs and fees (such as the cost of the arbitrator(s)) will be fully paid by the Employer. 
9.    Withholding Of Taxes. Employer shall withhold from any compensation and benefits payable under this Agreement all applicable federal, state, local, or other taxes. 
10.    Clawback.  Notwithstanding anything in this Agreement to the contrary, Employee acknowledges that Employer may be entitled or required by law, Employer’s policy (the “Clawback Policy”) or the requirements of an exchange on which the Employer’s shares are listed for trading, to recoup compensation paid to the Employee pursuant to this Agreement or otherwise, and Employee agrees to comply with any Employer request or demand for recoupment.  Employee acknowledges that the Clawback Policy may be modified from time to time in the sole discretion of Employer and without the consent of the Employee, and that such modification will be deemed to amend this Agreement.  Employee further acknowledges and agrees that the Clawback Policy as in effect from time to time shall apply to any and all payments of compensation and benefits (other than Employee’s base salary and benefits under any tax-qualified retirement plan or health and welfare plan) as specified in the Clawback Policy.
11.    Miscellaneous. 
11.1    Severability. Every provision of this Agreement is intended to be severable. If any term or provision hereof is declared invalid by a court of competent jurisdiction for any reason whatsoever and cannot be modified to be enforceable, its invalidity will not affect the validity of the remainder of the Agreement, which shall remain in full force and effect. 
11.2    Construction. The section headings or subsection headings have been included for convenience only, are not part of this Agreement, and are not to be taken as an interpretation of any provision hereof.  References to gender shall include each other gender, as appropriate. This Agreement may be executed in any number of counterparts, all of which when taken together shall constitute but a single instrument. 
11.3    Entire Agreement; Amendments, Waiver. This Agreement contains the entire agreement between the parties regarding the subject matter hereof and completely and fully supersedes all other prior agreements, both written and oral, between the parties relating to the subject matter hereof.  Except as provided in Section 10, this Agreement may be amended, waived, changed, modified or discharged only by an agreement in writing signed by the parties. No waiver by either party of any breach of, or of compliance with, any condition or provision of this Agreement by the other party shall be considered a waiver of any other condition or provision or of the same condition or provision at another time. 
11.4    Attorneys’ Fees. Each party shall bear the cost of any attorneys’ fees and expenses incurred in connection with enforcement of its respective rights under this Agreement, provided that the arbitrator may award reasonable attorneys’ fees and/or costs to the prevailing party in any arbitration concerning the matters addressed in this Agreement
11.5    Indemnification.   Employee shall be entitled to indemnification and advancement of expenses to the fullest extent provided by Article VI of the Employer's by-laws as in effect on the Effective Date or as may be amended from time to time.  No amendment to Article VI which would reduce Executive’s rights to indemnification and advancement of expenses with respect to actions or omissions which occurred prior to the date of such amendment shall apply to Employee unless he has consented thereto in writing.
11.6    Binding Effect; Assignment. This Agreement shall be binding upon and inure to the benefit of the parties, their successors, heirs and personal representatives and other legal representatives. Except as provided below in this Section 11.6, this Agreement shall not be assignable by either party. Employee acknowledges that the services to be rendered by Employee are unique and personal. Accordingly, Employee may not assign any of Employee’s rights or delegate any of Employee’s duties or obligations under this Agreement. In the event that all or substantially all of the business, assets and/or stock of the Employer is sold or transferred, then this Agreement shall be binding on the transferee of the business, assets and/or stock who Employer shall cause to expressly assume in writing the Employer's obligations hereunder. 
11.7    Mitigation. Employee shall be under no obligation to seek other employment or to otherwise seek mitigation for any payments owed to Employee under this Agreement and there shall be no offset against any amounts due Employee under this Agreement. 
11.8    Code Section 409A Matters. It is the parties intent that any amounts payable under this Agreement and the Employer’s and Employee’s exercise of authority or discretion hereunder shall be exempt from or comply with Section 409A of the Code (including the Treasury regulations and other published guidance relating thereto) so as not to subject Employee to the payment of any interest or additional tax imposed under Section 409A of the Code.  In furtherance of this intent, (a) if the date of payment or the commencement of any installment payments  must be delayed for six months in order to meet the requirements of Section 409A(a)(2)(B) of the Code applicable to “specified employees,” then such payment or payments shall be so delayed and paid upon the expiration of such six month period and (b) each payment which is conditioned upon the Employee’s execution of a release and which is to be paid during a designated period that begins in a first taxable year and ends in a second taxable year shall be paid in the second taxable year.  With regard to any provision herein that provides for reimbursement of expenses, or in-kind benefits, such reimbursements or in-kind benefits shall be paid in a manner consistent with Treas. Reg. Section 1.409A-3(i)(1)(iv).  If any Treasury regulations, guidance or changes to Section 409A would result in the Employee becoming subject to interest and additional tax under Section 409A of the Code, the Employer and Employee agree to amend this Agreement to bring this Agreement into compliance with Code Section 409A.
11.9    Notice. Notices and all other communications contemplated by this Agreement shall be in writing and shall be deemed to have been duly given when personally delivered or when mailed by overnight courier, U.S. registered or certified mail, return receipt requested and postage prepaid. In the case of Employee, mailed notices shall be addressed to Employee at the home address that Employee most recently communicated to the Employer in writing. In the case of the Employer, mailed notices shall be addressed to its corporate headquarters, and all notices shall be directed to the attention of its Secretary.
11.10    Authority. The parties hereto hereby represent that they each have the authority to enter into this Agreement, and the Employee hereby represents to the Employer that the execution of, and performance of duties under, this Agreement shall not constitute a breach of or otherwise violate any other agreement to which the Employee is a party.  The Employee hereby further represents to the Employer that he will not utilize or disclose any confidential information obtained by the Employee in connection with any former employment with respect to his duties and responsibilities hereunder.
11.11    Governing Law. This Agreement shall be subject to, and construed in accordance with, the laws of the State of Florida, without reference to its conflict of laws rules. 
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the date first written above. 
By:     /s/ Richard T. Hume                By:     /s/ Robert M. Dutkowsky        
Richard T. Hume                    Robert M. Dutkowsky
Chairman of the Board
On behalf of Tech Data Corporation 

(Matter # 006706)

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