Document:

Ex_411

		
			Exhibit 4.1.1
		

		
			DESCRIPTION OF CAPITAL STOCK
		

		
			 
		

		
			The following is a description of some of the material terms and provisions of the capital stock of TESSCO Technologies Incorporated.   The following description is a summary only and does not purport to be complete and is subject to, and qualified in its entirety by reference to the provisions of the Company’s Amended and Restated Certificate of Incorporation, as amended (our “Certificate of Incorporation”), and Sixth Amended and Restated By-Laws, as amended (our “By-Laws”), copies of which have been filed as exhibits to the Annual Report on Form 10-K to which this “Description of Capital Stock” is an exhibit, and the applicable provisions of the Delaware General Corporation Law (“DGCL”).   While we believe the following description covers the material terms and provisions of our capital stock, it may not include all of the information that is important to you.  We encourage you to read carefully the applicable provisions of the DGCL and our Certificate of Incorporation and By-Laws for a more complete understanding of our capital stock.    As used in this “Description of Capital Stock,” references to the “Company,” “Tessco”, “we,” “our” or “us” refer solely to TESSCO Technologies Incorporated and not to any of its subsidiaries, unless otherwise expressly stated or the context otherwise requires.
		

		
			General
		

		
			Our authorized capital stock consists of 15,000,000 shares of common stock, par value $0.01 per share, and 500,000 shares of undesignated preferred stock, par value $0.01 per share.  As of May 29, 2020, 8,641,700 shares of our common stock were issued and outstanding and no shares of our preferred stock were issued and outstanding.    The board of directors of the Company (the “Board”) is authorized without stockholder approval, except as required by the listing standards of the Nasdaq Stock Market LLC, to issue additional shares of our capital stock.
		

		
			Common Stock
		

		
			Shares of our common stock:
		

			
	
			
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			do not have any conversion rights;

			
	
			
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			do not have any sinking fund rights;

			
	
			
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			do not have any redemption rights;

			
	
			
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			are entitled to one vote per share on all matters presented to stockholders generally for a vote, including the election of directors, with no right to cumulative voting; and

			
	
			
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			do not have any preemptive rights to subscribe for any of our securities.

		
			Subject to preferences that may be applicable to any outstanding preferred stock, the holders of our common stock are entitled to receive ratably such dividends, if any, as may be authorized and declared from time to time by the Board out of legally available funds therefore.  In the event of our liquidation, dissolution or winding up, holders of our common stock are entitled to share ratably in all assets remaining after payment of liabilities, subject to prior liquidation rights of preferred stock, if any, then outstanding.  The common stock currently outstanding is fully paid and nonassessable.
		

		
			Preferred Stock
		

		
			To the extent permitted by law, the Board has the authority, without further stockholder authorization, to issue from time to time shares of authorized preferred stock in one or more series and to fix the terms, powers (including voting powers), rights and preferences, variations and the restrictions and limitations thereof of each series. Our preferred stock, if issued, may have priority over our common stock with respect to dividends and other distributions, including the distribution of our assets upon our liquidation,  dissolution or winding up.   The rights, 

		 

preferences and privileges of the holders of our common stock, including voting rights, are subject to, and may be adversely affected by, the rights of the holders of shares of any series of our preferred stock that we may designate and issue in the future.  The issuance of shares of preferred stock, or the issuance of rights to purchase such shares, could have the effect of delaying, deterring or preventing a change in control of us or an unsolicited acquisition proposal.
		

		
			Board of Directors
		

		
			Our Board is not classified.  Our By-Laws provide that the Board shall consist of such number of directors as the Board shall designate by resolution from time to time.  The number of directors may be increased or decreased from time to time by resolution of the Board, provided no decrease shall have the effect of shortening the term of any incumbent director.
		

		
			Provided a quorum is present, our directors are elected by a plurality of the votes validly cast.  Our Corporate Governance Guidelines and By-Laws provide, however, that an incumbent director who does not receive an affirmative vote of a majority of the votes cast in his or her re-election in an uncontested election shall offer to tender his or her resignation.  Such offer will then be subject to acceptance or rejection by the Board following the recommendation of our Nominating and Governance Committee.  
		

		
			Any director of the Company or the entire Board may be removed, with or without cause, by the holders of a majority of the shares then entitled to vote at an election of directors.  Except as otherwise provided by contract, any vacancy on our Board caused by any such removal may be filled at a meeting or any adjournment of such meeting by the holders of shares of stock of all classes representing a majority of the aggregate number of votes of the shares of stock of all classes then issued, outstanding and entitled to vote for the election of directors.  If such stockholders do not fill such vacancy at such meeting, such vacancy may be filled in any other manner permitted by law.
		

		
			Any vacancy that shall occur on the Board by reason of death, resignation or otherwise, or if the authorized number of directors shall be increased, the directors then in office shall continue to act, and such vacancies may be filled by a majority of the directors then in office, though less than a quorum, or as otherwise provided by contract.
		

		
			Consent of Stockholders in Lieu of Meeting
		

		
			Our By-Laws provide that our stockholders may take action by written consent without a meeting if the holders of outstanding stock having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares entitled to vote thereon were present and voted shall consent in writing to such corporate action being taken.
		

		
			Amendments to our Certificate of Incorporation and By-Laws
		

		
			Subject to preferences that may be applicable to any outstanding preferred stock,  any amendment of our Certificate of Incorporation must first be approved and declared advisable by the Board, and except in circumstances where not required by law or our Certificate of Incorporation, must thereafter be approved by the affirmative vote of a majority of the outstanding shares entitled to vote on the amendment and a majority of the outstanding shares of each class entitled to vote thereon separately as a class, except as described below in the case of any amendments that are inconsistent with certain By-Law provisions and which require a higher vote.
		

		
			Subject to preferences that may be applicable to any outstanding preferred stock, any provision of our By-Laws may be altered, amended or repealed at any regular or special meeting of the stockholders or of the Board by a  vote of not less than a majority of the aggregate number of the votes entitled to be cast thereon, except as described below in the case of any amendments to adopt provision inconsistent with certain provisions of our By-Laws and which require a higher vote. 
		

		
			Notwithstanding the above, the affirmative vote of not less than seventy-five percent (75%) of the aggregate number of the votes entitled to be cast thereon by the stockholders of the Company (considered for this purpose as a single class) shall be required to amend Sections 2.3 (Number and Term of Office), 2.4 (Election of 

		 

Directors), 2.11 (Removal of Directors) and ARTICLE VIII (Amendments) of our By-Laws, or to adopt any amendment to our Certificate of Incorporation inconsistent with such bylaw provisions.
		

		
			Anti-Takeover Provisions
		

		
			Advance Notice of Director Nominations and New Business Proposals
		

		
			Our By-Laws require advance notice of business to be brought before a stockholders’ meeting, and advance notice of stockholder nominations of persons for election as directors.  Generally, notice to our Corporate Secretary must be given no less than 120 days prior to the anniversary of the date of the mailing of the prior year’s proxy statement (or 90 days in the case of a stockholder notice of business to be brought before the meeting but not to be included in the Company’s proxy statement) unless the date of the meeting is changed by more than thirty (30) days from the date of the prior year’s annual meeting, in which case, to be timely, notice must be delivered no less than ninety (90) days prior to the newly announced date that the Company will mail its proxy statement.  Our By-Laws also specify information regarding the business to be brought before the meeting and the stockholder submitting proposing such business, and information regarding the nominee, that must be provided in or together with the notice in order for it to be considered properly given.
		

		
			Special Meetings
		

		
			Our By-Laws provide that special meetings of stockholders may only be called by the Chairman of our Board, the President (or, in the absence or disability of the President, by any Vice President) or by our Board, and shall be called by the President at the request in writing of the holders of shares of stock of all classes representing twenty-five percent (25%) of the aggregate number of votes possessed by the shares of stock of all classes then issued, outstanding and entitled to vote at such meeting.
		

		
			Blank Check
		

		
			To the extent permitted by law, the Board has the authority, without further stockholder authorization, to issue from time to time shares of authorized preferred stock in one or more series and to fix the terms, powers (including voting powers), rights and preferences, variations and the restrictions and limitations thereof of each series.  Our preferred stock, if issued, may have priority over our common stock with respect to dividends and other distributions, including the distribution of our assets upon liquidation.  The rights, preferences and privileges of the holders of our common stock, including voting rights, are subject to, and may be adversely affected by, the rights of the holders of shares of any series of our preferred stock that we may designate and issue in the future.  The issuance of shares of preferred stock, or the issuance of rights to purchase such shares, could have the effect of delaying, deterring or preventing a change in control of us or an unsolicited acquisition proposal.
		

		
			Delaware Law
		

		
			We are subject to Section 203 of the Delaware General Corporation Law, which prohibits a Delaware corporation from engaging in any business combination with any interested stockholder for a period of three (3) years after the date that such stockholder became an interested stockholder, with the following exceptions:
		

			
	
			
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			before such date, the board of directors of the corporation approved either the business combination or the transaction that resulted in the stockholder becoming an interested stockholder;

			
	
			
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			upon closing of the transaction that resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least eighty-five percent (85%) of the voting stock of the corporation outstanding at the time the transaction began, excluding for purposes of determining the voting stock outstanding (but not the outstanding voting stock owned by the interested stockholder) those shares owned by (i) persons who are directors and also officers and (ii) employee stock plans in which employee participants do not have the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer; or

			
	
			
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			on or after such date, the business combination is approved by the board of directors and authorized at an annual or special meeting of the stockholders, and not by written consent, by the 

		 

	affirmative vote of at least 66 2/3% of the outstanding voting stock that is not owned by the interested stockholder.

		
			In general, Section 203 defines business combination to include the following:
		

			
	
			
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			any merger or consolidation involving the corporation and the interested stockholder;

			
	
			
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			any sale, transfer, pledge or other disposition of ten percent (10%) or more of the assets of the corporation involving the interested stockholder;

			
	
			
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			subject to specified exceptions, any transaction that results in the issuance or transfer by the corporation of any stock of the corporation to the interested stockholder;

			
	
			
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			any transaction involving the corporation that increases the proportionate share of the stock of any class or series of the corporation beneficially owned by the interested stockholder; or

			
	
			
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			the receipt by the interested stockholder of the benefit of any loans, advances, guarantees, pledges or other financial benefits provided by or through the corporation.

		
			In general, Section 203 defines an “interested stockholder” as an entity or person who, together with the person’s affiliates and associates, beneficially owns, or within three years prior to the time of determination of interested stockholder status did own, fifteen percent (15%) or more of the outstanding voting stock of the corporation.
		

		
			Exchange Listing
		

		
			Our common stock is listed on the Nasdaq Global Select Market under the symbol “TESS”.
		

		
			Transfer Agent
		

		
			EQ Shareowner Services is the transfer agent for the shares of the Company’s common stock, and its address is PO Box 64874,  St Paul, MN 55164-0854.Ex_1032

		
			Exhibit 10.3.2
		

		
			 
		

		
			TESSCO TECHNOLOGIES INCORPORATED
		

		
			STOCK OPTION
		

		
			 
		

		
			THIS STOCK OPTION (this “Option”) is granted by TESSCO Technologies Incorporated, a Delaware corporation (the “Company”), to _______________ (the “Optionee”) effective as of___________, 20___ (the “Grant Date”). 
		

		
			RECITALS
		

		
			 
		

			
	
			
				 A.
			The Optionee is a Key Employee of the Company. In order to provide the Optionee additional incentive to further the Company’s growth, development, and financial success, the Compensation Committee of the Board of Directors of the Company (the “Committee”), pursuant to authority delegated by the Board of Directors of the Company (the “Board”), desires to grant to the Optionee, pursuant to the TESSCO Technologies Incorporated 2019 Stock and Incentive Plan (as from time to time hereafter amended, the “Plan”), an option to purchase _____ (__) shares of the Company’s Common Stock, par value $.01 per share (the “Common Stock”), at an exercise price of $_______per share (the “Exercise Price”), which price the Compensation Committee has determined to be the Fair Market Value of the Common Stock as of the Grant Date.

			
	
			
				 B.
			This Option is granted pursuant to the Plan, which is incorporated herein by reference for all purposes.  The Optionee acknowledges receipt of a copy of the Plan and agrees to be bound by all of the terms and conditions hereof and thereof, and all applicable laws and regulations.  Capitalized terms used herein and not otherwise defined shall have the meaning ascribed thereto in the Plan.

			
	
			
				 C.
			This Option is not intended to, and shall not, constitute or be treated as an “incentive stock option” within the meaning of Section 422 of the Internal Revenue Code.

		
			NOW, THEREFORE, to evidence the grant of the option and to set forth the terms and conditions governing the exercise thereof and the parties’ other agreements relative thereto, the parties, intending to be legally bound, agree as follows:
		

		
			 
		

			
	
			
				 SECTION 1.
			GRANT, TERM, AND VESTING OF OPTION

			
	
			
				 1.1.
			In General. The Company hereby grants to the Optionee the right, and the Optionee shall be entitled, to purchase from the Company at any time and from time to time after the date hereof but not later than 5:00 p.m. Baltimore, Maryland time on _______, 20__ (the “Expiration Date”), up to ______ (___) shares of the Company’s Common Stock (the “Option Shares”) at the Exercise Price, all on the terms and subject to the conditions hereinafter set forth.

		
			 
		

			
	
			
				 1.2.
			Vesting. Except as otherwise set forth (and subject to all of the other conditions and limitations contained) in this Section 1, this Option shall become exercisable (i.e., vest) with respect to a stated percentage or number of Option Shares on each of the dates set forth below (each a “Vesting Date”): 

		
			 
		

			
	
			
				 (a)
			On the first yearly anniversary of the Grant Date, twenty-five percent (25%) of the Option Shares,  or _________ Option Shares; and

		
			

		 

		

			DMEAST #39311155 v2

		

		

			
	
			
				 (b)
			On the day of the month corresponding to the Grant Date (i.e., on the 10th day (or if there is no day, the next day)) and for each of the Thirty Six (36) successive calendar months following the first anniversary of the Grant Date, an additional 2.08333% of the number of Option Shares (with the number of Option Shares rounded up or down as the Company shall determine), until the fourth anniversary of the Grant Date, when this Option will be fully vested for all ten thousand (___________) Option Shares;  

		
			provided, however, that any vesting otherwise provided for hereinabove will in any event be further subject to: 
		

			
	
			
				 (c)
			Optionee’s Continuous Service through each such Vesting Date; and

			
	
			
				 (d)
			satisfaction of the two (2) Company-based performance milestones (the “Milestones”) described on Schedule A attached to this Option, except that in the event of the failure to meet only one of the two Milestones in a timely manner, but the other is met in a timely manner, then the condition to vesting under this clause (d) will be deemed satisfied with respect to fifty percent (50%) of the Option Shares (the effect being that instead of this Option terminating, it shall remain in effect, subject however to all other terms and conditions hereof, including time based vesting requirements, in respect of fifty percent (50%) of the Option Shares and will immediately terminate with respect to the remain fifty percent (50%) of the Option Shares.

		
			Except as may otherwise be expressly provided herein, there shall be no proportionate or partial vesting during periods prior to each Vesting Date, and all vesting shall occur only on the appropriate Vesting Date. Without limiting any other terms hereof or of the Plan otherwise providing for termination of this Option in whole or in part, any unvested portion of this Option shall terminate and be null and void upon termination of the Optionee’s Continuous Service, and this Option shall terminate and be null and void upon the failure for any reason to satisfy both Milestones in a timely manner.   
		

			
	
			
				 1.3.
			Termination for Cause. If the Optionee’s Continuous Service is terminated by the Company for Cause, all rights of Optionee under this Option shall terminate immediately, effective as of such termination. 

		
			 
		

			
	
			
				 1.4.
			 Termination Without Cause or for Good Reason; Voluntary Termination.   If the Optionee’s Continuous Service is terminated (x) by the Company other than for Cause and other than on account of Disability or (y) by the Optionee for Good Reason, or (z) on account of the resignation or voluntary termination of employment by the Optionee in the absence of Cause, then, subject to Section 1.8 hereof, the Optionee shall be entitled to exercise this Option to the same extent that it would have been exercisable on the effective date of termination of the Optionee’s Continuous Service (and without regard to any subsequent events) for a period of ninety (90) days thereafter (but in no event later than the Expiration Date), whereupon all rights of Optionee under this Option shall terminate immediately, unless the Board or the Committee in its sole and absolute discretion determines that this Option should be exercisable to some greater extent or remain exercisable for some longer period (ending in no event later than the Expiration Date). 

		
			 
		

			
	
			
				 1.5.
			Disability. If the Optionee’s Continuous Service is terminated as a result of Disability, as determined by a medical doctor satisfactory to the Committee, this Option shall not terminate or be forfeited and the Optionee shall remain entitled to exercise this Option, but only to 

		 

		

			DMEAST #39311155 v22

		

	the same extent that it would have been exercisable on the date of termination of the Optionee’s Continuous Service (and without regard to subsequent events), for a period of twelve (12) months thereafter (but in any event subject to Section 1.8 hereof, and in no event later than the Expiration Date), whereupon all rights of Optionee under this Option shall terminate immediately, unless the Board or the Committee in its sole and absolute discretion determines that this Option should be exercisable to some greater extent or remain exercisable for some longer period (ending in no event later than the Expiration Date).

		
			 
		

			
	
			
				 1.6.
			Death. In the event of the termination of Optionee’s Continuous Service by reason of death of Optionee, the Optionee’s personal representative or other successor in interest shall be entitled to exercise this Option, but only to the same extent that it would have been exercisable on the date of the Optionee’s death (but without regard to subsequent events), for a period of twelve (12) months thereafter (but in any event subject to Section 1.8 hereof, and in no event later than the Expiration Date), whereupon all rights of Optionee under this Option shall terminate immediately, unless the Board or the Committee in its sole and absolute discretion determines that this Option should be exercisable to some greater extent or remain exercisable for some longer period (ending in no event later than the Expiration Date). 

		
			 
		

			
	
			
				 1.7.
			Expiration. This Option, including any then unexercised portion of this Option, and all rights of Optionee hereunder, shall in any event automatically and without notice terminate on the Expiration Date, if not sooner.  

		
			 
		

			
	
			
				 1.8.
			Change in Control.  

		
			 
		

			
	
			
				 (a)
			Accelerated Vesting. Notwithstanding Section 1.2, if there is a Change in Control of the Company and the Optionee’s Continuous Service is terminated during the period beginning ninety (90) days prior to and ending one (1) year after the date of the Change in Control, either (i) by the Company or a successor, in either case other than for Cause and other than on account of death or Disability, or (ii) by the Optionee for Good Reason, then this Option shall (if not already so exercisable, and provided that this Option shall not have previously expired or terminated for any reason, including at the Expiration Date or upon failure to timely satisfy the Milestones) become exercisable with respect to 100% of the total number of Option Shares. 

		
			 
		

			
	
			
				 (b)
			Company Right to Accelerate Vesting and Terminate Option.   If at any time before the Expiration Date, and assuming this Option remains in effect, the Company becomes aware of the impending occurrence of any Change in Control, then the Company shall have the right and option (but not any obligation) to give the Optionee written notice thereof (a “Change in Control Notice”) setting forth (if known) the date on or about which the Change in Control is anticipated to occur.  If a Change in Control Notice is given by the Company to the Optionee pursuant to this subsection (b) no later than twenty (20) days before the occurrence of the Change in Control (or the record date or other date for establishing the holders of Common Stock entitled to the initial liquidating dividend or other distribution in respect of any complete or partial liquidation, dissolution, or divisive reorganization of the Company approved by the stockholders), the Company shall have the right and option (but not any obligation) (i) to the extent not then already vested, to cause the vesting of this Option to be accelerated (whereupon this Option will become exercisable with respect to 100% of the total number of Option Shares), such acceleration to be effective upon, or immediately prior to and conditioned upon, the occurrence of the Change in Control described in the Change in Control Notice, and on any other conditions, qualifications or limitations stated or provided for therein (including the right to withdraw the 

		 

		

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	Change in Control Notice for any or no reason), and (ii) as provided in the Change in Control Notice, and as a condition to any acceleration as contemplated by (i) above (and for the avoidance of doubt, whether or not such acceleration was then required to effect this Option becoming exercisable with respect to 100% of the total number of Option Shares), to terminate this Option, insofar as still remaining unexercised, effective upon, or immediately prior to and conditioned upon, the occurrence of the Change in Control and without any additional notice.  As a condition to any such termination of this Option, however, the Company shall afford the Optionee a reasonable period of time (no less than fifteen (15) days) after the date on which the Change in Control Notice is given to exercise this Option in whole or in part; and in the event that, or insofar as, the Optionee does not exercise this Option prior to the expiration of such period, then, unless the Board or the Committee (or any successor to either) in its sole and absolute discretion determines otherwise, this Option will terminate and expire effective upon, or immediately prior to and conditioned upon, the occurrence of the Change in Control.  Notwithstanding the foregoing, if and in the event that the Continuous Service of the Optionee has for any reason terminated or expired as of the date of the giving of the Change in Control Notice or at any time prior to the Change in Control referred to therein, and this Option (and the right to exercise this Option) has not then otherwise expired by its terms, then the Company shall have the right and option to deliver a Change in Control Notice as provided above without any corresponding acceleration of the vesting of this Option, and this Option shall then be exercisable only to the extent otherwise exercisable as of the date of termination of Continuous Service and without acceleration, until the expiration of the reasonable period otherwise provided for hereunder. Any acceleration of the vesting of this Option (and the right of Optionee to exercise this Option with respect to any Option Shares vested other than on account of the passage of time) as described in or contemplated by a Change in Control Notice shall be, and any exercise by the Optionee may be, in each case whether delivered pursuant to this subsection (b) of subsection (c) below, conditioned upon the actual occurrence or consummation of the Change in Control and satisfaction of any other conditions, qualifications or limitations included or provided for in the Change in Control Notice or notice of exercise.  

			
	
			
				 (c)
			Change in Control Agreement.  In the event of, or if in anticipation of, a Change in Control in which the Company is not or will not be the surviving or acquiring company, or will be liquidated or dissolved, or in which the Company is or becomes, or will become, a wholly-owned subsidiary of another company after the effective date of the Change in Control, in any event occurring prior to the Expiration Date and prior to any other termination of this Option (including upon exercise by the Company of the right and option afforded to it subsection (b) above): (1) if there is no Change in Control Agreement (as defined below) or if the Change in Control Agreement does not specifically provide for the change, conversion or exchange of this Option for similar securities of another company, the Company will deliver to Optionee a Change in Control Notice in the manner described in (but not pursuant to) subsection (b) above, thereby providing the Optionee with a reasonable opportunity to exercise this Option as otherwise provided for in (but not pursuant to) subsection (b) above, and Optionee shall thereupon have the right during the applicable period of not less than fifteen (15) days to exercise this Option as to all or any part of the shares covered hereby, including, if the Continuous Service of Optionee then continues (but not otherwise), shares as to which this Option would not otherwise be exercisable by reason of an insufficient lapse of time, and this Option will thereupon terminate and expire as otherwise provided for in (but not pursuant to) subsection (b) above, effective upon, or immediately prior to and conditioned upon, the occurrence of such Change in Control; and (2) if there is a Change in Control Agreement and if the Change in Control Agreement provides for the change, conversion or exchange of the shares under outstanding and unexercised stock options,  

		 

		

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	generally, or under this Option, for securities or other property of another company, and provides for the change, conversion or exchange of this Option, or the assumption or substitution of this Option, for similar securities or other property of another company, then in connection with the Change in Control, in lieu of this Option terminating (and, where applicable, in lieu of being accelerated) to the extent not exercised as otherwise contemplated by clause (1) of this subsection (c), then, and unless the Company shall have exercised its right under subsection (b) above, this Option shall be so changed, converted or exchanged, or assumed or substituted for, in a manner not inconsistent with the provisions of the Change in Control Agreement for the adjustment, change, conversion or exchange of such stock and such options (and if holders of Common Stock were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding shares).   If such consideration received in the transaction constituting a Change in Control is not solely common stock of the successor company or its parent or subsidiary, the Committee may, with the consent of the successor company, or its parent or subsidiary, provide that the consideration to be received upon the exercise or vesting of the substitute or assumed option will be solely common stock of the successor company or its parent or subsidiary substantially equal in Fair Market Value to the per share consideration received by holders of shares of Common Stock in the transaction constituting a Change in Control. All adjustments and determinations under this subsection (c), including any determination of such substantial equality of value of consideration, shall be made by the Committee in its sole discretion and its determination shall be conclusive and binding.  Notwithstanding the foregoing, on such terms and conditions as may be set forth in an award agreement, in the event of a termination of the Optionee's employment in such successor company (other than for Cause or on account of Disability or the comparable reasons applicable to such award agreement) within one (1) year following such Change in Control (subject, however, to earlier expiration as of the Expiration Date), the option held by the Optionee at the time of the Change in Control shall be accelerated as described in Section 1.8(a) above.

			
	
			
				 1.9.
			Certain Definitions.

		
			 
		

		
			For purposes of this Option:
		

			
	
			
				 (a)
			“Cause” shall have the meaning ascribed thereto in the Plan and shall also include, to the extent not already included, any act or failure to act determined in good faith by the Committee to constitute gross misconduct by the Optionee.

		
			 
		

			
	
			
				 (b)
			“Change in Control Agreement” means a written plan or agreement regarding the terms and implementation of a Change in Control in which the Company is not the surviving or acquiring company, or in which the Company is or becomes a wholly-owned subsidiary of another company after the effective date of the Change in Control (and in any event excluding any liquidation).

		
			 
		

			
	
			
				 (c)
			“Good Reason” means any of the following:

		
			 
		

			
	
			
				 (1)
			Any material adverse change by the Company in the Optionee’s duties or reporting responsibilities or any material reduction by the Company in the Optionee’s authority (other than as a result of Disability of Optionee), provided, however, that a change in authority, duties or responsibilities solely due to the Company becoming a division, subsidiary or otherwise part of a larger organization shall not by itself constitute Good Reason, and provided further that the Optionee specifically objects in writing to the change or reduction 

		 

		

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	within thirty (30) days after the change or reduction first occurs and the Company (or its successor) does not rescind the change or reduction within a further period of thirty (30) days; or

			
	
			
				 (2)
			Any material failure by the Company or its subsidiaries to make a payment due and owing to the Optionee or to provide the Optionee with a benefit due and owing to the Optionee, but only if the failure is not cured in all material respects within fifteen (15) days after the Company receives written notice of such failure; or

			
	
			
				 (3)
			Any reduction of Optionee’s annual base salary,  or any material reduction in the package of benefits provided to Optionee as an employee of the Company (excluding benefits in the nature of cash or equity incentive compensation), except to the extent that the base salary or package of benefits of all other officers of the Company is similarly reduced (except insofar as such reduction would require the Company to violate a binding employment agreement), and provided that the Optionee specifically objects in writing to the reduction within thirty (30) days after the reduction first occurs and the Company (or its successor) does not rescind the reduction within a further period of thirty (30) days.

			
	
			
				 SECTION 2.
			EXERCISE OF OPTION

			
	
			
				 2.1.
			In General. In the event the Optionee desires to exercise this Option with respect to all or any vested portion of the Option Shares, the Optionee shall give notice to the Company in substantially the form of Exhibit A (together with any other representations, warranties, and undertakings that may otherwise be required by the Company of the Optionee pursuant to the terms of this Option or the Plan). Such notice shall state the number of Option Shares with respect to which this Option is being exercised and shall be accompanied by payment of the Exercise Price multiplied by the number of Option Shares with respect to which this Option is being exercised (the “Aggregate Exercise Price”).

		
			 
		

			
	
			
				 2.2.
			Payment Options. Unless otherwise permitted by the Board or the Committee, payment of the Aggregate Exercise Price shall be made in cash or by check payable to the order of the Company. Notwithstanding the foregoing, if hereinafter authorized by the Board or the Committee in its sole discretion, payment of the Aggregate Exercise Price may also be made in whole or in part: (i) through the retention by the Company of Option Shares that would otherwise be issued pursuant to the exercise of this Option, (ii) by the delivery of shares of Common Stock already owned by the Optionee with an aggregate Fair Market Value (as defined below) equal to the Aggregate Exercise Price, or (iii) by any other form of payment that is acceptable to the Board or the Committee, as the case may be. If the Aggregate Exercise Price is paid in the manner described in clause (i) above, the number of shares to be issued to the Optionee shall be reduced by the product of (x) the total number of shares to be acquired (determined without regard to clause (i)) times (y) the quotient of (a) the Exercise Price divided by (b) the Fair Market Value, which reduction shall constitute payment of the Exercise Price for the shares acquired pursuant to clause (i).

		
			 
		

			
	
			
				 2.3.
			Withholding Taxes. The Company shall be entitled to require as a condition of delivery of the shares to be acquired upon exercise of this Option that the Optionee remit to the Company an amount sufficient to satisfy all federal, state, and other taxes or withholding requirements that may be imposed upon the Company (“Tax Obligations”). Notwithstanding the foregoing, the Board or the Committee may in its sole discretion authorize payment or other satisfaction of all or any portion of such Tax Obligations to be made in a manner similar to one or 

		 

		

			DMEAST #39311155 v26

		

	more of the methods referenced in Section ‎2.2 with respect to payment of the Aggregate Exercise Price. Whether or not the Company requires the Optionee to remit any such amounts, the Company shall have the right to withhold such amounts from any compensation or other payments otherwise due to the Optionee.

		
			 
		

			
	
			
				 2.4.
			Fractional Shares. The Company shall not be required to issue fractions of shares upon exercise of this Option. If any fractional interest in a share is otherwise deliverable upon the exercise of this Option, the Company shall purchase the fractional interest for an amount in cash equal to the Fair Market Value of the fractional interest.

		
			 
		

			
	
			
				 2.5.
			Limitation on Exercise. Notwithstanding any other provision of this Option, this Option shall not be exercisable in whole or in part, and no shares of Common Stock shall be issuable by the Company in respect of any attempted exercise, at any time when such exercise or issuance is prohibited by the Company’s policies then in effect concerning transactions by officers, directors, or employees in securities of the Company. 

		
			 
		

			
	
			
				 SECTION 3.
			MISCELLANEOUS

			
	
			
				 3.1.
			Entire Agreement. This Option (together with the Plan, to which it is and shall remain subject) constitutes the entire agreement and understanding between the parties hereto, and supersedes any prior agreement or understanding, relating to the subject matter of this Option. 

		
			 
		

			
	
			
				 3.2.
			Conflicts with Plan; Amendments. This Option has been granted as an “Option” (and, in particular, a “Non-Qualified Option”) under the Plan and shall be construed consistently with the Plan. In the event of any clear conflict between the provisions of the Plan and this Option, the provisions of the Plan (including any such provisions that defer to an applicable award, such as this Option) shall control. The Committee has the right, in its sole discretion, to amend this Option from time to time in any manner for the purpose of promoting the objectives of the Plan but only if the similar terms of all other Non-Qualified Options under the Plan that are then in effect at the time of such amendment and are also similarly amended with substantially the same effect. Any such amendment of this Option will, upon adoption by the Committee, become and be binding and conclusive on all persons affected by it without requirement for consent or other action by any such person. The Company will give the Optionee or other registered holder of this Option written notice of any such amendment of this Option as promptly as practicable after it is adopted. 

		
			 
		

			
	
			
				 3.3.
			No Rights of Stockholder. The Optionee shall not be deemed a stockholder of the Company for any purpose until the shares issuable upon exercise of this Option have been issued to the Optionee upon exercise of this Option. The existence of this Option shall not affect in any way the right or power of the Company or its stockholders to make or authorize any adjustments, recapitalizations, reorganizations, or other changes in the Company’s capital structure or its business, or any merger or consolidation of the Company, or any issue of bonds, debentures, or shares of capital stock with a preference ahead of, or convertible into, or otherwise affecting the Common Stock or rights thereof, or dissolution or liquidation of the Company, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether of a similar character or otherwise.

		
			 
		

		
			

		 

		

			DMEAST #39311155 v27

		

		

			
	
			
				 3.4.
			No Rights of Continued Employment.  This Option shall not confer upon the Optionee any right of continued employment or Continuous Service with the Company or otherwise, nor shall it entitle the Optionee to any continued level of base salary.

		
			 
		

		
			 
		

			
	
			
				 3.5.
			Transfer Restrictions.  Unless otherwise determined by the Committee, this Option is not transferable, and, during the lifetime of the Optionee, the Option shall be exercisable only by the Optionee, or the Optionee's guardian or legal representative. In addition, this Option shall not be assigned, negotiated, pledged or hypothecated in any way (whether by operation of law or otherwise), and this Option shall not be subject to execution, attachment or similar process. Upon any attempt to transfer, assign, negotiate, pledge or hypothecate this Option, or in the event of any levy upon this Option by reason of any execution, attachment or similar process contrary to the provisions hereof, this Option shall immediately become null and void. The terms of this Option shall be binding upon the executors, administrators, heirs, successors and assigns of the Optionee.  

		
			 
		

			
	
			
				 3.6.
			Notices. Any notice or communication required or permitted hereunder shall be sufficiently given if delivered in person or by commercial courier service or sent by first class mail, postage prepaid:

		
			 
		

			
	
			
				 (a)
			If to the Company, addressed to it at 11126 McCormick Road, Hunt Valley, MD 21031, marked for the attention of the Chief Financial Officer, and

			
	
			
				 (b)
			If to the Optionee, to the address set forth below Optionee’s signature (or if not set forth, as appearing in the records of the Company),

		
			or in either case to such other address as any party shall notify the other in accordance with this section.
		

			
	
			
				 3.7.
			Governing Law. This Option shall be governed by and construed in accordance with the federal laws of the United States and the laws of the State of Delaware (without regard to any provision that would result in the application of the laws of any other state or jurisdiction).

		
			 
		

			
	
			
				 3.8.
			Headings. The descriptive headings in this Option are inserted for convenience of reference only and do not constitute a part of this Option.

		
			 
		

			
	
			
				 3.9.
			Incorporation of Recitals and Exhibits. The recitals to this Option and any exhibits and schedules hereto are a material part of and by this reference are hereby incorporated into this Option.

		
			 
		

		
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			DMEAST #39311155 v28

		

		

		
			IN WITNESS WHEREOF, the parties have caused this Stock Option to be signed under seal as of the date first above written.
		

		
			 
		

		
			ATTEST/WITNESS:TESSCO TECHNOLOGIES INCORPORATED
		

		
			 
		

		
			 
		

		
			 
		

		
			______________________________By: ____________________________(SEAL)

President and Chief Executive Officer
		

		
			 
		

		
			
		

		
			OPTIONEE: 
		

		
			 
		

		
			 
		

		
			____________________________________________________________________

		

		
			 
		

		
			Address:
		

		
			_______________________________
		

		
			_______________________________
		

		
			 
		

		
			

		 

		

			DMEAST #39311155 v2

		

		

		
			EXHIBIT A
		

		
			TESSCO TECHNOLOGIES INCORPORATED
		

		
			STOCK OPTION
		

		
			NOTICE OF EXERCISE
		

		
			 
		

		
			______________________________
(Date)
		

		
			TO:

TESSCO Technologies Incorporated
11126 McCormick Road
Hunt Valley, MD 21031
Attn: President
		

		
			 
		

		
			I am the holder of a Stock Option dated as of ___________ to purchase shares of the Common Stock of TESSCO Technologies Incorporated, a Delaware corporation (the “Company”) at a price of $______ per share. I hereby exercise that Stock Option with respect to _________ shares, for an aggregate exercise price of $_______________. Payment of the aggregate exercise price accompanies this Notice of Exercise.
		

		
			I acknowledge that the Company is entitled to require as a condition of delivering the certificate representing these shares that I remit to the Company an amount sufficient to satisfy all federal, state, and other taxes or withholding requirements that may be imposed upon the Company. Whether or not the Company requires me to remit any such amounts, the Company shall have the right to withhold such amounts from any compensation or other payments otherwise due to me.
		

		
			Very truly yours,
		

		
			 
		

		
			________________________________
Optionee
		

		
			 
		

		
			 
		

		
			Address: 
		

		
			________________________________
		

		
			________________________________
		

		
			 
		

		
			 
		

		
			 
		

		 

		

			DMEAST #39311155 v2

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