Document:

Exhibit 4.1

 

 

 

 

 

DANIELS CORPORATE ADVISORY COMPANY, INC.

 

EMPLOYEES, OFFICERS, DIRECTORS, AND CONSULTANTS
STO CK PLAN

 

FOR THE YEAR 2014

 

 

 

1. Introduction. This Plan shall be known
as the “Daniels Corporate Advisory Company, Inc.

 

Employees, Officers, Directors, and Consultants Sto ck Plan
for the Year 2015, No. 3” and is hereinafter referred to

 

as the “Plan.” The purposes of this Plan are to
enable Daniels Corporate Advisory Company, Inc., a Ne vada

 

corporation (the “Company”), to promote the interests
of the Company and its stockholders by attractin g and

 

retaining Employees, Directors, and Consultants cap able of
furthering the future success of the Compan y and by

 

aligning their economic interests more closely with those of
the Company’s stockholders, by paying their retainer or

 

fees in the form of shares of the Company’s common stock,
par value $0.001 per share (the “Common Stoc k”).

 

 

 

2. Definitions. The following terms shall
have the meanings set forth below:

 

 

 

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

 

 

 

“Change of Control” has the
meaning set forth in Paragraph 12(d) hereof.

 

 

 

“Code” means the Internal Revenue
Code of 1986, as amended, and the rules and regulations thereunder.

 

References to any provision of the Code or rule or regulation
thereunder shall be deemed to include an y amended or

 

successor provision, rule or regulation.

 

 

 

“Committee” means the committee
that administers this Plan, as more fully defined in Paragraph 13 hereof.

 

 

 

“Common Stock” has the meaning
set forth in Paragraph 1 hereof.

 

 

 

“Company” has the meaning set
forth in Paragraph 1 hereof.

 

 

 

“Consultants” means the Company’s
consultants and advisors only if: (i) they are natural persons; (ii) they

 

provide bona fide services to the Company; and (iii) the services
are not in connection with the offer or sale of

 

securities in a capital-raising transaction, and do not directly
or indirectly promote or maintain a market for the

 

Company’s securities.

 

 

 

“Deferral Election” has the
meaning set forth in Paragraph 6 hereof.

 

 

 

“Deferred Stock Account” means
a bookkeeping account maintained by the Company for a Participant

 

representing the Participant’s interest in the shares
credited to such Deferred Stock Account pursuant to Paragraph 7

 

hereof.

 

 

 

“Delivery Date” has the meaning
set forth in Paragraph 6 hereof.

 

 

 

“Director” means an individual
who is a member of t he Board of Directors of the Company.

 

 

 

“Dividend Equivalent” for a
given dividend or other distribution means a number of shares of the Commo n

 

Stock having a Fair Market Value, as of the record date for
such dividend or distribution, equal to the amount of

 

cash, plus the Fair Market Value on the date of dis tribution
of any property, that is distributed with respect to one

 

share of the Common Stock pursuant to such dividend or distribution;
such Fair Market Value to be determined by

 

the Committee in good faith.

 

 

 

“Effective Date” has the meaning
set forth in Paragraph 3 hereof.

 

 

 

“Employee” means any officer
or employee of the Company.

 

 

 

 

 

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“Exchange Act” has the meaning
set forth in Paragraph 12(d) hereof.

 

 

 

“Fair Market Value” means the
mean between the highest and lowest reported sales prices of the Common

 

Stock on the New York Stock Exchange Composite Tape or, if not
listed on such exchange, on any other national

 

securities exchange on which the Common Stock is listed or on
The Nasdaq Stock Market, or, if not so listed on any

 

other national securities exchange or The Nasdaq Stock Market,
then the average of the bid price of the Common

 

Stock during the last five trading days on the OTC Bulletin
Board or the OTC Markets Group Inc. immediately

 

preceding the last trading day prior to the date with respect
to which the Fair Market Value is to be determined. If

 

the Common Stock is not then publicly traded, then the Fair
Market Value of the Common Stock shall be the book

 

value of the Company per share as determined on the last day
of March, June, September, or December in any year

 

closest to the date when the determination is to be made. For
the purpose of determining book value hereunder,

 

book value shall be determined by adding as of the applicable
date called for herein the capital, surp lus, and

 

undivided profits of the Company, and after having deducted
any reserves theretofore established; the sum of these

 

items shall be divided by the number of shares of the Common
Stock outstanding as of said date, and the quotient

 

thus obtained shall represent the book value of each share of
the Common Stock of the Company.

 

 

 

“Participant” has the meaning
set forth in Paragrap h 4 hereof.

 

 

 

“Payment Time” means the time
when a Stock Award is payable to a Participant pursuant to Paragraph 5

 

hereof (without regard to the effect of any Deferral Election).

 

 

 

“Stock Award” has the meaning
set forth in Paragrap h 5 hereof.

 

 

 

“Third Anniversary” has the
meaning set forth in Paragraph 6 hereof.

 

 

 

3. Effective Date of the Plan . This Plan
was adopted by the Board effective May 14, 2015 (the

 

“Effective Date”).

 

 

 

4. Eligibility. Each individual who is an
Employee, Director, or Consultant on the Effective Date

 

and each individual who becomes an Employee, Director, or Consultant
thereafter during the term of thi s Plan shall

 

be a participant (the “Participant”) in this Plan,
in each case during such period as such individual remains an

 

Employee, Director, or Consultant of the Company or any of its
subsidiaries. Each credit of shares of the Common

 

Stock pursuant to this Plan shall be evidenced by a written
agreement duly executed and delivered by o r on behalf of

 

the Company and a Participant, if such an agreement is required
by the Company to assure compliance with all

 

applicable laws and regulations.

 

 

 

5. Grants of Shares . Commencing on the
Effective Date, the amount of compensation or bonus for

 

service to the Participants shall be payable in shares of the
Common Stock (the “Stock Award”) pursuant to this

 

Plan. The deemed issuance price of shares of the Common Stock
subject to each Stock Award shall not b e less than

 

85 percent of the Fair Market Value of the Common Stock on the
date of the grant. In the case of any person who

 

owns securities possessing more than ten percent of the combined
voting power of all classes of securities of the

 

issuer or its parent or subsidiaries possessing voting power,
the deemed issuance price of shares of t he Common

 

Stock subject to each Stock Award shall be at least 100 percent
of the Fair Market Value of the Common Stock on

 

the date of the grant.

 

 

 

6. Deferral Option . From and after the
Effective Date, a Participant may make an election (a

 

“Deferral Election”) on an annual basis to defer
delivery of the Stock Award specifying which one of t he following

 

ways the Stock Award is to be delivered (a) on the date which
is three years after the Effective Date for which it was

 

originally payable (the “Third Anniversary”), (b)
o n the date upon which the Participant ceases to be a Participant

 

for any reason (the “Departure Date”) or (c) in
five equal annual installments commencing on the Departure Date

 

(the “Third Anniversary” and “Departure Date”
each being referred to herein as a “Delivery Date”). Such Deferral

 

Election shall remain in effect for each Subsequent Year unless
changed, provided that, any Deferral Election with

 

respect to a particular Year may not be changed les s than six
months prior to the beginning of such Year, and

 

provided, further, that no more than one Deferral Election or
change thereof may be made in any Year.

 

 

 

 

 

 

 

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Any Deferral Election and any change or
revocation thereof shall be made by delivering written notice

 

thereof to the Committee no later than six months p rior to
the beginning of the Year in which it is to be effected;

 

provided that, with respect to the Year beginning o n the Effective
Date, any Deferral Election or revo cation thereof

 

must be delivered no later than the close of busine ss on the
30th day after the Effective Date.

 

 

 

7. Deferred Stock Accounts . The Company
shall maintain a Deferred Stock Acco unt for each

 

Participant who makes a Deferral Election to which shall be
credited, as of the applicable Payment Time, the

 

number of shares of the Common Stock payable pursuant to the
Stock Award to which the Deferral Electio n relates.

 

So long as any amounts in such Deferred Stock Account have not
been delivered to the Participant under Paragraph

 

8 hereof, each Deferred Stock Account shall be cred ited as
of the payment date for any dividend paid o r other

 

distribution made with respect to the Common Stock, with a number
of shares of the Common Stock equal to (a) the

 

number of shares of the Common Stock shown in such Deferred
Stock Account on the record date for such dividend

 

or distribution multiplied by (b) the Dividend Equi valent for
such dividend or distribution.

 

 

 

8. Delivery of Shares .

 

 

 

(a) The shares of the Common Stock in a
Participant’s Deferred Stock Account with respect

 

to any Stock Award for which a Deferral Election ha s been made
(together with dividends attributable to such shares

 

credited to such Deferred Stock Account) shall be d elivered
in accordance with this Paragraph 8 as soo n as

 

practicable after the applicable Delivery Date. Except with
respect to a Deferral Election pursuant to Paragraph 6

 

hereof, or other agreement between the parties, suc h shares
shall be delivered at one time; provided that, if the

 

number of shares so delivered includes a fractional share, such
number shall be rounded to the nearest whole number

 

of shares. If the Participant has in effect a Deferral Election
pursuant to Paragraph 6 hereof, then such shares shall

 

be delivered in five equal annual installments (together with
dividends attributable to such shares cr edited to such

 

Deferred Stock Account), with the first such instal lment being
delivered on the first anniversary of t he Delivery

 

Date; provided that, if in order to equalize such installments,
fractional shares would have to be delivered, such

 

installments shall be adjusted by rounding to the nearest whole
share. If any such shares are to be d elivered after the

 

Participant has died or become legally incompetent, they shall
be delivered to the Participant’s estate or legal

 

guardian, as the case may be, in accordance with the foregoing;
provided that, if the Participant dies with a Deferral

 

Election pursuant to Paragraph 6 hereof in effect, the Committee
shall deliver all remaining undelivered shares to

 

the Participant’s estate immediately. References to a
Participant in this Plan shall be deemed to refer to the

 

Participant’s estate or legal guardian, where appro priate.

 

 

 

(b) The Company may, but shall not be required
to, create a grantor trust or utilize an

 

existing grantor trust (in either case, the “Trust”)
to assist it in accumulating the shares of the Common Stock needed

 

to fulfill its obligations under this Paragraph 8. However,
Participants shall have no beneficial or other interest in

 

the Trust and the assets thereof, and their rights under this
Plan shall be as general creditors of the Company,

 

unaffected by the existence or nonexistence of the Trust, except
that deliveries of Stock Awards to Participants from

 

the Trust shall, to the extent thereof, be treated as satisfying
the Company’s obligations under this Paragraph 8.

 

 

 

9. Share Certificates; Voting and Other
Rights . The certificates for shares delivered to a Participant

 

pursuant to Paragraph 8 above shall be issued in the name of
the Participant, and from and after the d ate of such

 

issuance the Participant shall be entitled to all rights of
a stockholder with respect to the Common Stock for all such

 

shares issued in his name, including the right to vote the shares,
and the Participant shall receive all dividends and

 

other distributions paid or made with respect thereto.

 

 

 

General Restrictions . 10.

 

 

 

(a) Notwithstanding any other provision
of this Plan or agreements made pursuant thereto,

 

the Company shall not be required to issue or deliver any certificate
or certificates for shares of the Common Stock

 

under this Plan prior to fulfillment of all of thefollowing
conditions:

 

 

 

(i) Listing or approval for listing upon
official notice of issuance of such shares on

 

the New York Stock Exchange, Inc., or such other securities
exchange as may at the time be a market fo r the

 

Common Stock;

 

 

 

 

 

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(ii) Any registration or other qualification
of s uch shares under any state or federal

 

law or regulation, or the maintaining in effect of any such
registration or other qualification which the Committee

 

shall, upon the advice of counsel, deem necessary o r advisable;
and

 

 

 

(iii) Obtaining any other consent, approval,
or p ermit from any state or federal

 

governmental agency which the Committee shall, after receiving
the advice of counsel, determine to be necessary or

 

advisable.

 

 

 

(b) Nothing contained in this Plan shall
prevent t he Company from adopting other or

 

additional compensation arrangements for the Participants.

 

 

 

11. Shares Available . Subject to Paragraph
12 below, the maximum number of shares of the Common

 

Stock which may in the aggregate be paid as Stock Awards pursuant
to this Plan is 2,750,000. Shares o f the

 

Common Stock issuable under this Plan may be taken from treasury
shares of the Company or purchased on the

 

open market.

 

 

 

12. Adjustments; Change of Control .

 

 

 

(a) In the event that there is, at any time
after the Board adopts this Plan, any change in

 

corporate capitalization, such as a stock split, combination
of shares, exchange of shares, warrants o r rights offering

 

to purchase the Common Stock at a price below its Fair Market
Value, reclassification, or recapitalization, or a

 

corporate transaction, such as any merger, consolid ation, separation,
including a spin-off, stock dividend, or other

 

extraordinary distribution of stock or property of the Company,
any reorganization (whether or not such

 

reorganization comes within the definition of such term in Section
368 of the Code) or any partial or complete

 

liquidation of the Company (each of the foregoing a “Transaction”),
in each case other than any such T ransaction

 

which constitutes a Change of Control (as defined b elow), (i)
the Deferred Stock Accounts shall be credited with the

 

amount and kind of shares or other property which would have
been received by a holder of the number o f shares of

 

the Common Stock held in such Deferred Stock Account had such
shares of the Common Stock been outstand ing as

 

of the effectiveness of any such Transaction, (ii) the number
and kind of shares or other property sub ject to this Plan

 

shall likewise be appropriately adjusted to reflect the effectiveness
of any such Transaction, and (iii) the Committee

 

shall appropriately adjust any other relevant provi sions of
this Plan and any such modification by the Committee

 

shall be binding and conclusive on all persons.

 

 

 

(b) If the shares of the Common Stock credited
to the Deferred Stock Accounts are converted

 

pursuant to Paragraph 12(a) into another form of property, references
in this Plan to the Common Stock shall be

 

deemed, where appropriate, to refer to such other form of property,
with such other modifications as may be

 

required for this Plan to operate in accordance with its purposes.
Without limiting the generality of the foregoing,

 

references to delivery of certificates for shares of the Common
Stock shall be deemed to refer to delivery of cash

 

and the incidents of ownership of any other property held in
the Deferred Stock Accounts.

 

 

 

(c) In lieu of the adjustment contemplated
by Paragraph 12(a), in the event of a Change of

 

Control, the following shall occur on the date of t he Change
of Control (i) the shares of the Common Stock held in

 

each Participant’s Deferred Stock Account shall be deemed
to be issued and outstanding as of the Change of

 

Control; (ii) the Company shall forthwith deliver to each Participant
who has a Deferred Stock Account all of the

 

shares of the Common Stock or any other property held in such
Participant’s Deferred Stock Account; and (iii) this

 

Plan shall be terminated.

 

 

 

(d) For purposes of this Plan, Change of
Control shall mean any of the following events:

 

 

 

(i) The acquisition by any individual, entity
or group (within the meaning of

 

Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act
of 1934, as amended (the “Exchange Act”)) (a

 

“Person”) of beneficial ownership (within the meaning
of Rule 13d-3 promulgated under the Exchange Act) of 80

 

percent or more of either (1) the then outstanding shares of
the Common Stock of the Company (the “Out standing

 

Company Common Stock”), or (2) the combined voting power
of then outstanding voting securities of the Company

 

entitled to vote generally in the election of directors (the
“Outstanding Company Voting Securities”); provided,

 

 

 

 

 

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however, that the following acquisitions shall not constitute
a Change of Control (A) any acquisition directly from

 

the Company (excluding an acquisition by virtue of the exercise
of a conversion privilege unless the security being

 

so converted was itself acquired directly from the Company),
(B) any acquisition by the Company, (C) any

 

acquisition by any employee benefit plan (or related trust)
sponsored or maintained by the Company or any

 

corporation controlled by the Company or (D) any acquisition
by any corporation pursuant to a reorganization,

 

merger or consolidation, if, following such reorgan ization,
merger or consolidation, the conditions described in

 

clauses (A), (B) and (C) of paragraph (iii) of this Paragraph
12(d) are satisfied; or

 

 

 

(ii) Individuals who, as of the date hereof,
constitute the Board of the Company (as

 

of the date hereof, “Incumbent Board”) cease for
an y reason to constitute at least a majority of the Board; provided,

 

however, that any individual becoming a director subsequent
to the date hereof whose election, or nomination for

 

election by the Company’s stockholders, was approved by
a vote of at least a majority of the directors then

 

comprising the Incumbent Board shall be considered as though
such individual were a member of the Incu mbent

 

Board, but excluding, for this purpose, any such individual
whose initial assumption of office occurs as a result of

 

either an actual or threatened election contest (as such terms
are used in Rule 14a-11 of Regulation 1 4A

 

promulgated under the Exchange Act) or other actual or threatened
solicitation of proxies or consents by or on

 

behalf of a Person other than the Board; or

 

 

 

(iii) Approval by the stockholders of the
Company of a reorganization, merger,

 

binding share exchange or consolidation, unless, fo llowing
such reorganization, merger, binding share exchange or

 

consolidation (A) more than 60 percent of, respectively, then
outstanding shares of common stock of the corporation

 

resulting from such reorganization, merger, binding share exchange
or consolidation and the combined voting power

 

of then outstanding voting securities of such corpo ration entitled
to vote generally in the election of directors is then

 

beneficially owned, directly or indirectly, by all or substantially
all of the individuals and entities who were the

 

beneficial owners, respectively, of the Outstanding Company
Common Stock and Outstanding Company Voting

 

Securities immediately prior to such reorganization, merger,
binding share exchange or consolidation i n

 

substantially the same proportions as their ownership, immediately
prior to such reorganization, merger, binding

 

share exchange or consolidation, of the Outstanding Company
Common Stock and Outstanding Company Votin g

 

Securities, as the case may be, (B) no Person (excluding the
Company, any employee benefit plan (or related trust)

 

of the Company or such corporation resulting from s uch reorganization,
merger, binding share exchange or

 

consolidation and any Person beneficially owning, i mmediately
prior to such reorganization, merger, binding share

 

exchange or consolidation, directly or indirectly, 20 percent
or more of the Outstanding Company Commo n Stock or

 

Outstanding Company Voting Securities, as the case may be) beneficially
owns, directly or indirectly, 20 percent or

 

more of, respectively, then outstanding shares of common stock
of the corporation resulting from such

 

reorganization, merger, binding share exchange or consolidation
or the combined voting power of then o utstanding

 

voting securities of such corporation entitled to vote generally
in the election of directors, and (C) at least a majority

 

of the members of the board of directors of the corporation
resulting from such reorganization, merger, binding

 

share exchange or consolidation were members of the Incumbent
Board at the time of the execution of the initial

 

agreement providing for such reorganization, merger, binding
share exchange or consolidation; or

 

 

 

(iv) Approval by the stockholders of the
Company of (1) a complete liquidation or

 

dissolution of the Company, or (2) the sale or other disposition
of all or substantially all of the assets of the

 

Company, other than to a corporation, with respect to which
following such sale or other disposition, (A) more than

 

60 percent of, respectively, then outstanding share s of common
stock of such corporation and the combi ned voting

 

power of then outstanding voting securities of such corporation
entitled to vote generally in the election of directors

 

is then beneficially owned, directly or indirectly, by all or
substantially all of the individuals and entities who were

 

the beneficial owners, respectively, of the Outstanding Company
Common Stock and Outstanding Company Voting

 

Securities immediately prior to such sale or other disposition
in substantially the same proportion as their ownership,

 

immediately prior to such sale or other disposition, of the
Outstanding Company Common Stock and Outstanding

 

Company Voting Securities, as the case may be, (B) no Person
(excluding the Company and any employee b enefit

 

plan (or related trust) of the Company or such corp oration
and any Person beneficially owning, immediately prior to

 

such sale or other disposition, directly or indirectly, 20 percent
or more of the Outstanding Company Common Stock

 

or Outstanding Company Voting Securities, as the case may be)
beneficially owns, directly or indirectly, 20 percent

 

or more of, respectively, then outstanding shares o f common
stock of such corporation and the combined voting

 

power of then outstanding voting securities of such corporation
entitled to vote generally in the election of directors,

 

and (C) at least a majority of the members of the b oard of
directors of such corporation were members of the

 

 

 

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Incumbent Board at the time of the execution of the initial
agreement or action of the Board providing for such sale

 

or other disposition of assets of the Company.

 

 

 

13. Administration; Amendment and Termination
..

 

 

 

(a) The Plan shall be administered by the
Compensation Committee (the “Committee”) of, or

 

appointed by, the Board of Directors of the Company (the “Board”).
The Committee shall select one of its members

 

as Chairman and shall act by vote of a majority of a quorum,
or by unanimous written consent. A majority of its

 

members shall constitute a quorum. The Committee s hall be governed
by the provisions of the Company’s Byla ws

 

and of Nevada law applicable to the Board, except as otherwise
provided herein or determined by the Bo ard. The

 

Committee shall have full and complete authority, in its discretion,
but subject to the express provisions of this Plan

 

to administer all aspects of the Plan. All interpretations and
constructions of this Plan by the Committee, and all of

 

its actions hereunder, shall be binding and conclusive on all
persons for all purposes.

 

 

 

(b) The Board may from time to time make
such amendments to this Plan, including to

 

preserve or come within any exemption from liabilit y under
Section 16(b) of the Exchange Act, as it ma y deem

 

proper and in the best interest of the Company without further
approval of the Company’s stockholders, provided

 

that, to the extent required under Nevada law or to qualify
transactions under this Plan for exemption under Rule

 

16b-3 promulgated under the Exchange Act, no amendment to this
Plan shall be adopted without further approval of

 

the Company’s stockholders and, provided, further, that
if and to the extent required for this Plan to comply with

 

Rule 16b-3 promulgated under the Exchange Act, no a mendment
to this Plan shall be made more than once in any

 

six month period that would change the amount, price or timing
of the grants of the Common Stock hereu nder other

 

than to comport with changes in the Code, the Emplo yee Retirement
Income Security Act of 1974, as amended, or

 

the regulations thereunder. The Board may terminate this Plan
at any time by a vote of a majority of the members

 

thereof.

 

 

 

14. Term of Plan . No shares of the Common
Stock shall be issued, unless and until the Directors of

 

the Company have approved this Plan and all other legal requirements
have been met. This Plan was ado pted by the

 

Board effective May 14, 2015, and shall expire on May 14, 2025.

 

 

 

15. Governing Law . This Plan and all actions
taken thereunder shall be governed by, and construed in

 

accordance with, the laws of the State of Nevada.

 

 

 

16. Information to Shareholders . The Company
shall furnish to each of its stockho lders financial

 

statements of the Company at least annually.

 

 

 

17. Miscellaneous .

 

 

 

(a) Nothing in this Plan shall be deemed
to create any obligation on the part of the Board to

 

nominate any Director for reelection by the Company’s
stockholders or to limit the rights of the stockholders to

 

remove any Director.

 

 

 

(b) The Company shall have the right to
require, p rior to the issuance or delivery of any

 

shares of the Common Stock pursuant to this Plan, that a Participant
make arrangements satisfactory to the

 

Committee for the withholding of any taxes required by law to
be withheld with respect to the issuance or delivery

 

of such shares, including, without limitation, by the withholding
of shares that would otherwise be so issued or

 

delivered, by withholding from any other payment due to the
Participant, or by a cash payment to the Company by

 

the Participant.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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IN WITNESS WHEREOF, this Plan has been executed
effective as of May 14, 2015.

 

 

 

 

 

DANIELS CORPORATE ADVISORY COMPANY,

 

INC.

 

 

 

 

 

By /s/ Arthur D. Viola

 

Arthur D. Viola, Chief Executive OfficerExhibit 10.1

 

 

[LETTERHEAD OF TESSCO TECHNOLOGIES INCORPORATED]

May 26, 2015

Mr. Said Tofighi

[Address on File]

Dear Said:

Following up on our discussions, this letter sets forth our agreement regarding your departure from TESSCO, including the period of transition and the amendment of the terms of your Severance and Restrictive Covenant Agreement dated February 9, 2009 (the “2009 Severance Agreement”).

1.        Your departure from TESSCO culminates our recent discussions about your current and future interests and activities and balancing these interests with the needs of TESSCO’s business. As such, it represents a mutual decision to separate and, strictly speaking, it is neither a termination of your employment without Cause by TESSCO nor a resignation (either with or without Good Reason) on your part, as those terms are used in the 2009 Severance Agreement. In other words, the 2009 Severance Agreement does not squarely address the situation.

2.        In particular, as we have discussed and you have acknowledged, TESSCO is not obligated to make any severance payments to you under Section 3.3 of the 2009 Severance Agreement as a consequence of your departure. By the same token, however, in order to expedite the implementation of our mutual decision to separate and in consideration of your undertakings as described below, and in view of your more than 20 years of service and enormous contributions to TESSCO from its earliest days as a public company, TESSCO will make the payments and provide the benefits described in paragraph 3 (subject to the conditions stated there).

3.        TESSCO will pay you a severance amount equal to 100% of your annual base salary (which is $345,000), in two installments of $172,500 (less applicable taxes and such other amounts as we are authorized or required by law to deduct). As noted below, your agreed departure date is August 28, 2015. Consequently, these payments will be made to you on August 28, 2015 (your last day as a TESSCO employee) and on April 1, 2016, subject to the following conditions:

		A.	Not later than August 1, 2015, you have executed and delivered (and do not thereafter revoke) the General Release attached as Exhibit 1 to this letter agreement (which, regardless of when it is executed and delivered, will be deemed effective on and as of August 28, 2015);

		B.	Between the date of this letter and August 28, 2015, your employment is not terminated for “Cause” within the meaning of subsection (a), (c), (d), or (e) of Section 2.2 of the 2009 Severance Agreement (but not subsection (b) of that Section, which is hereby deleted);

Mr. Said Tofighi

May 26, 2015

 Page 2

 

		C.	From August 28 through and including February 28 , 2016, you have not accepted a position as, or served as or performed any of the material duties of, an executive or senior management employee of any business enterprise (regardless of whether that business enterprise competes to any extent with TESSCO); and

		D.	From August 28 through and including February 28, 2016, you have continued to abide by all of the restrictions and obligations under 2009 Severance Agreement (as amended by this letter agreement), including those set forth in Section 3.7 and Section 4 of the 2009 Severance Agreement (as well as any other post-employment obligations you may have under the TESSCO Code of Conduct).

Of course, the restriction in paragraph C above is not intended (1) to preclude you in any way from being involved (in a leadership capacity or otherwise) in the activities of any nonprofit charitable, educational, or religious organization, (2) to otherwise limit you in pursuing charitable and philanthropic endeavors, (3) to prohibit you from serving on the board of or as a consultant to a business enterprise that does not in any way compete with TESSCO, provided you are not employed full-time by such enterprise, or (4) to prohibit you from the continued ownership or management of, or employment by, the business of which you currently are (and have since 2011 been) a partial owner in conducting its usual business activities of owning, managing, leasing, and selling real estate.

4.        As noted above, we have agreed that your last day as a TESSCO employee will be August 28, 2015. During the period from the date of this letter through August 28, we will work together to wind down your efforts and transition your duties and responsibilities. You will continue to receive 100% of your current base salary (and your employee benefits) through the end of this period, i.e., through August 28. (You will also be entitled to and will receive in the first payroll after your termination date your accrued but unused paid time off in accordance with TESSCO’s normal policies.) As part of this transition, we have agreed that you will step down as Senior Vice President of Global Manufacturer Supply Chain & Ventev Innovations effective as of the date of your signature on this letter, and during this period we will be realigning your duties and responsibilities as we determine appropriate to achieve an orderly and efficient transition.

5.        The payments described in paragraph 3 above are in lieu of any and all payments or benefits to which you might otherwise be entitled by reason of your separation from TESSCO (whether under the 2009 Severance Agreement or any other plan, agreement, arrangement, or understanding), other than vested benefits to which you are entitled under TESSCO’s qualified retirement plans and your rights to continuation coverage under COBRA. Although you will be entitled to 100% of your current base salary plus your existing benefits through August 28, 2015, i.e., your last day as a TESSCO employee, you will not be eligible for or entitled to participate in or receive any benefit from TESSCO’s Value Share Program for Fiscal Years 2016 or 2017. Should you predecease the date or dates on which the amounts described in paragraph 3 become payable, those amounts will be paid to your estate or other successor in interest (subject, of course, to your prior compliance with the conditions stated in paragraph 3).

Mr. Said Tofighi

May 26, 2015

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6.        This letter is not intended to modify the terms of your Performance Stock Unit Agreements in any way. Because you were still employed by TESSCO on May 1, 2015, you were entitled to receive any previously earned Performance Shares (including any that were earned for the Fiscal Year 2015) that were otherwise distributable on or about that date. However, you will not be eligible to earn any Performance Shares for the Fiscal Year 2016, nor will you be entitled to receive any Performance Shares earned for prior Fiscal Years that might otherwise become distributable (or “vested”) after the May 2015 distribution date, all of which will be forfeited (except and to the extent that any such previously earned Performance Shares may, in accordance with the terms of the applicable Performance Stock Unit Agreements, become distributable to you either because a “Change in Control” occurs, or because there is a termination of your employment on account of “Disablity” or by reason of death, between the date of this letter and August 28, 2015). Because your departure is the result of a mutual decision to separate, you acknowledge that it is not the result of, nor will it be treated as, either a termination of your employment by TESSCO or a termination of your employment by you with Good Reason, as those terms are used in your Performance Stock Unit Agreements.

7.        Finally, although the provisions of this letter supersede in all respects the provisions in Section 3 of the 2009 Severance Agreement regarding any rights you may have to payments or benefits by virtue of the termination of your employment, the 2009 Severance Agreement otherwise remains in effect. In particular, you continue to be bound by your obligations under Section 3.7 (Termination Obligations) and Section 4 (Restrictive Covenants) of the 2009 Severance Agreement, which remain in full force and effect, enforceable by TESSCO in accordance with their terms. For this purpose, your “Date of Termination” will mean August 28, 2015 and “Restriction Period” will mean the one-year period beginning on that date and ending on August 28, 2016.

Said, if the above fully and accurately sets forth our understanding, please so confirm by signing and returning to me a copy of this letter.

	 	 	
Very truly yours,

	 	 	 
	 	 	
/s/Robert B. Barnhill, Jr.

	 	 	 
	 	 	
Robert B. Barnhill, Jr.

	 	 	
Chairman, President, and CEO

CONFIRMED AND AGREED:

/s/ Said Tofighi

SAID TOFIGHI

Date: May 26, 2015

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