# EDGAR Filing Document

**Accession Number:** 0000927355
**File Stem:** 0001104659-23-036596
**Filing Date:** 2023-3
**Character Count:** 17640
**Document Hash:** ba155129533617a84db751083e6c5681
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-23-036596.hdr.sgml**: 20230324

**ACCESSION NUMBER**: 0001104659-23-036596

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 13

**CONFORMED PERIOD OF REPORT**: 20230320

**ITEM INFORMATION**: Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230324

**DATE AS OF CHANGE**: 20230324

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** TESSCO TECHNOLOGIES INC
- **CENTRAL INDEX KEY:** 0000927355
- **STANDARD INDUSTRIAL CLASSIFICATION:** WHOLESALE-ELECTRONIC PARTS & EQUIPMENT, NEC [5065]
- **IRS NUMBER:** 520729657
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 0326

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-33938
- **FILM NUMBER:** 23759823

**BUSINESS ADDRESS:**
- **STREET 1:** 11126 MCCORMICK ROAD
- **CITY:** HUNT VALLEY
- **STATE:** MD
- **ZIP:** 21031
- **BUSINESS PHONE:** 4102291000

**MAIL ADDRESS:**
- **STREET 1:** 11126 MCCORMICK ROAD
- **CITY:** HUNT VALLEY
- **STATE:** MD
- **ZIP:** 2121031

?xml version="1.0" encoding="utf-8"?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, DC 20549**

------

**FORM 8-K**

**CURRENT REPORT**

------

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

Date of Report (Date of earliest event reported): **March 20, 2023**

**TESSCO Technologies Incorporated**

(Exact name of the Company as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Delaware** | **001-33938** | **52-0729657** |
| (State or other jurisdiction of<br> incorporation) | (Commission File Number) | (IRS Employer Identification <br> Number) |

---

**11126 McCormick Road, Hunt Valley, Maryland 21031**

(Address of principal executive offices) (Zip Code)

**(410) 229-1000**

(Registrant's telephone number, including area code)

**Not Applicable**

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Company under any of the following provisions (see General Instruction A.2. below):

◻&nbsp;&nbsp;&nbsp;&nbsp;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

◻&nbsp;&nbsp;&nbsp;&nbsp;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

◻&nbsp;&nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

◻&nbsp;&nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

---

| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol(s) | Name of each exchange on which <br> registered |
| Common Stock, $0.01 par value per share | TESS | Nasdaq Global Market |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ◻

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On March 20, 2023, TESSCO Technologies Incorporated (the "Company") and Sandip Mukerjee, who has served as the Company's President and Chief Executive Officer since August 20, 2019, entered into Amendment No. 1 ("Amendment No. 1") to the Employment Agreement, dated August 20, 2019, by and between the Company and Mr. Mukerjee. Pursuant to Amendment No. 1, the term of Mr. Mukerjee's employment under the Employment Agreement, dated August 20, 2019 (the "Existing Employment Agreement"), which was set to expire at the end of the Company's current fiscal year, March 26, 2023, has been extend through the fiscal year ending March 29, 2026. Mr. Mukerjee's initial base salary, commencing with fiscal year 2024, is now $600,000 per annum and is subject to annual increases as determined by the Compensation Committee of the Board of Directors.

Pursuant to Amendment No. 1, Mr. Mukerjee remains eligible for cash bonuses in accordance with the Company's senior executive compensation plan, although his annual target bonus will not be less than $600,000. Amendment No. 1 further provides for annual Long Term Incentive ("LTI") equity awards to Mr. Mukerjee, which may include stock options, restricted stock units or other awards, as finally determined by the Compensation Committee. The number of shares targeted to be the subject of LTI awards for a given fiscal year is the lesser of: the Stated Value applicable to each fiscal year and 60,000 shares for fiscal 2024, 90,000 shares fiscal 2025, and 120,000 shares for fiscal 2026. The "Stated Value" as applicable to LTI awards for a given fiscal is equal to 50% of Base Salary for fiscal year 2024, 75% for fiscal year 2025, and 100% for fiscal 2026, each divided by the ten day trailing average of the Company's stock price on the grant date. The actual number of shares to be subject to the award for a given fiscal year may differ appreciably from the targeted number, and is subject to final determination by the Board (or the Compensation Committee), provided that Mr. Mukerjee will be entitled to receive LTI awards for at least 25% of the targeted number for each fiscal year having terms providing for time vesting and not Company performance-based vesting.

The remaining terms of the Existing Agreement remain unchanged.

The foregoing discussion does not purport to be complete and is qualified in its entirety by the full text of the Amendment which is attached hereto as Exhibit 10.1 and incorporated herein by reference. The Existing Agreement is attached as <u>Exhibit 10.1</u> to the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on August 20, 2019, and incorporated herein by reference.

Item 9.01. Financial Statements and Exhibit

(d)&nbsp;&nbsp;&nbsp;&nbsp; Exhibits.

The following documents are herewith filed as an exhibit to this report:

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| [10.1](tm2310189d1_ex10-1.htm) | [Amendment No. 1 to the Employment Agreement, dated August 20, 2019, by and between the Company and Sandip Mukerjee](tm2310189d1_ex10-1.htm) |
| 104 | Cover Page Interactive Data File. Formatted in Inline XBRL and contained in exhibit 101. |

---

**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | |
|:---|:---|
| TESSCO Technologies Incorporated | TESSCO Technologies Incorporated |
| By: | /s/ Aric M. Spitulnik |
|  | Aric M. Spitulnik |
|  | Chief Financial Officer and Senior Vice President |
|  | Dated: March 24, 2023 |

---

## Exhibit 10.1

**Exhibit 10.1**

**AMENDMENT NO. 1<br> TO<br> EMPLOYMENT AGREEMENT<br> BY AND BETWEEN<br> TESSCO TECHNOLOGIES INCORPORATED AND SANDIP MUKERJEE**

TESSCO TECHNOLOGIES INCORPORATED (the "Company") and SANDIP MUKERJEE ("Executive") wish to amend the Employment Agreement dated August 19, 2019 (the "Existing Agreement") to extend the Term thereof and to make certain other modifications as hereinafter set forth. Capitalized terms defined in the Existing Agreement and used in this Amendment No. 1 without further definition have the meanings ascribed to them in the Existing Agreement.

Accordingly, the Existing Agreement is this 20<sup>th</sup> day of March 2023 amended as follows, with this Amendment No. 1 to be and become effective as of March 27, 2023 (the "Amendment Effective Date"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Commencing with the Amendment Effective Date, Paragraph 1 "<u>Term</u>" of the Existing Agreement is deleted and replaced in its entirety with the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Term</u>. The Company hereby agrees to employ the Executive, and the Executive hereby agrees to be employed by the Company, subject to and upon the terms and conditions set forth in this Agreement, for a term (the "<u>Term</u>") which shall commence on August 20, 2019 (the "<u>Effective Date</u>") and end at the end of the fiscal year of the Company ending in 2026. Absent any written agreement between the parties to extend the Term for a renewal term or other period ending at an agreed upon date or time subsequent to the end of the fiscal year of the Company ending in 2026, the Term will end at the end of the fiscal year of the Company ending in 2026, currently expected to occur on March 29, 2026. That portion of the Term commencing with the first day of fiscal 2024 of the Company and ending at the end of fiscal year of the Company ending in fiscal 2026 is referred to herein as the "<u>Amendment Term</u>".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Commencing with the Amendment Effective Date, Paragraph 3 "<u>Compensation</u>" of the Existing Agreement is deleted and replaced in its entirety with the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Compensation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Base Salary</u>. The Company shall initially pay Executive during the Term an annual salary (the "Base Salary") of Five Hundred Fifty Thousand Dollars ($550,000), and commencing with the fiscal year of the Company commencing in 2023 (fiscal 2024), Six Hundred Thousand Dollars ($600,000), in each case payable in accordance with the Company's normal business practices for senior executives (including tax withholding), but in no event less frequently than monthly. Executive's Base Salary shall be reviewed at least annually by the Compensation Committee of the Board (the "Compensation Committee") and may be adjusted in its discretion, provided that the Base Salary may not be decreased below Five Hundred Fifty Thousand Dollars ($550,000), or during the Amendment Term, Six Hundred Thousand Dollars ($600,000), without the consent of the Executive. After any such adjustment in Base Salary, the term "Base Salary" shall refer to the adjusted amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Annual Short Term Incentive</u>. For fiscal year 2024 and each subsequent fiscal year of the Company that commences during the Amendment Term, Executive shall be entitled to participate with the other senior executives of the Company and shall be eligible to receive Annual Short Term Incentive compensation ("<u>STI</u>") in accordance with the terms herein, and as applicable to each fiscal year of the Company during the Amendment Term. The parties acknowledge that the standards and criteria on which incentive awards have historically been based include both corporate performance and earnings targets (typically annual targets measured after all incentive compensation is taken into account and satisfaction of which is a condition to any payment) and a somewhat more subjective individual performance factor, and that it is the Board's current expectation (but not the Board's or the Company's obligation hereunder) to continue to use similar criteria and factors in determining STI compensation for all senior executives, including Executive. Executive's STI target amount for each fiscal year beginning during the Amendment Term (Executive's "<u>Target STI</u>") shall be such amount (expressed either as a percentage of Base Salary, or as a stated dollar amount) as the Board (or the Compensation Committee of the Board, as applicable) from time to time determines in its sole discretion is appropriate, but in no event shall Executive's Target STI for any fiscal year of the Company beginning during the Amendment Term be less than Six Hundred Thousand Dollars ($600,000). The actual STI awarded to Executive for any particular fiscal year, if any, may be more or less than Executive's Target STI, based on the actual level of achievement relative to the performance metrics established for that year by the Board. Such payment may be made in cash or otherwise than in cash (or equivalent), as determined by the Compensation Committee and insofar as consistent with the Company's overall incentive compensation philosophy for the corresponding fiscal year, as applicable to the Company's senior executives, generally.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Long Term Incentive</u>. For fiscal year 2024 and each subsequent fiscal year of the Company that commences during the Amendment Term, the Company will make one or more Long Term Incentive awards ("<u>LTI</u>") to the Executive, in the form of Options, Restricted Stock or Restricted Stock Units, or Performance Share Units (or any one or more of them or any other award of the type subject to awards under the Plan or any successor or similar plan or arrangement), as determined by the Board (or the Compensation Committee of the Board, as applicable) from time to time, and which will provide for vesting 25% upon the first anniversary of the award date and 25% on each successive yearly anniversary (or a pro rata portion monthly or as otherwise provided in the applicable award agreement) until fully vested on the four year anniversary of the grant, assuming the otherwise applicable conditions (including performance requirements or conditions) to be set forth in the applicable award agreement are satisfied. The terms and conditions applicable to such LTI awards shall be set forth in a separate award agreement in a form or forms prescribed by the Company consistent with this Agreement, which shall recite the grant of such equity award governed by the Plan or other applicable plan or arrangement then in effect, and shall provide for among other things, as applicable, a so called "double trigger" acceleration following a change in control of the Company (i.e., change in control followed by termination within no less than one year either without cause or for good reason, as such terms are to be defined by the Company therein or provided for under the Plan). The terms of the Plan or successor or similar plan or arrangement where applicable, and applicable award agreement will be controlling. It is anticipated that LTI awards will be granted prospectively for a given fiscal year.

The number of shares targeted to be the subject of LTI awards for a given fiscal year (the "<u>Targeted Number</u>") shall be the *lesser of*: (i) the Stated Value for the applicable fiscal year (as set forth below) *divided* by the average per share closing price of the Common Stock for the ten (10) trading days immediately prior to the grant of the award; and (ii) 60,000 shares for fiscal 2024, 90,000 shares fiscal 2025, and 120,000 shares for fiscal 2026. For purposes hereof, the "<u>Stated Value</u>" as applicable to LTI awards for a given fiscal year shall mean 50% of Base Salary for fiscal year 2024, 75% of Base Salary for fiscal year 2025, and 100% of Base Salary for fiscal 2026. Notwithstanding the foregoing, however, the actual number of shares to be subject to the award for a given year may differ appreciably from the Targeted Number for that fiscal year, and the actual number will be finally determined by the Board (or the Compensation Committee of the Board, as applicable) in its discretion after consideration of factors that it determines to be appropriate from time to time; provided further, however, that the Executive will be entitled to receive, in respect of each such fiscal year, LTI awards for at least 25% of the Targeted Number for that fiscal year having terms providing for time vesting and not Company performance-based vesting.

Except as modified by this Amendment No. 1, the provisions of the Existing Agreement are hereby ratified and affirmed.

[BALANCE OF THIS PAGE INTENTIONALLY BLANK]

IN WITNESS WHEREOF, the parties have executed this Amendment No. 1 under seal to be effective as of the Amendment Effective Date.

---

| | | |
|:---|:---|:---|
| WITNESS/ATTEST: | TESSCO TECHNOLOGIES INCORPORATED | TESSCO TECHNOLOGIES INCORPORATED |
|  | By: | /s/ J. Timothy Bryan (SEAL) |
|  |  | J. Timothy Bryan |
|  |  | Chairman of the Board |
|  | EXECUTIVE: | EXECUTIVE: |
|  | /s/ Sandip Mukerjee | /s/ Sandip Mukerjee (SEAL) |
|  | Sandip Mukerjee | Sandip Mukerjee |

---

[Signature Page to Amendment No. 1]