Document:

tess_Ex_10_1_1

		
			Exhibit 10.1.1
		

		
			THE SECURITIES REPRESENTED BY THIS OPTION HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE; THEREFORE, THE TRANSFER OF THIS OPTION IS SUBJECT TO COMPLIANCE WITH THE CONDITIONS SPECIFIED HEREIN, AND NO SUCH TRANSFER OF THIS OPTION SHALL BE VALID UNTIL SUCH CONDITIONS HAVE BEEN FULFILLED.
		

		
			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 ________ (the “Grant Date”). 
		

		
			RECITALS
		

			
	
			
				 A.
			The Optionee is a key employee of the Company. In order to retain the Optionee and give the Optionee an 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”), has determined to grant to the Optionee, pursuant to the TESSCO Technologies Incorporated Second Amended and Restated Stock and Incentive Plan (as heretofore or from time to time hereafter amended, the “Plan”), an option to purchase _____ shares (the “Option 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 Board has determined to be the fair market value of the Common Stock as of the Grant Date.

			
	
			
				 B.
			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 time on ______ (the “Expiration Date”), up to_____ shares of Common Stock at the Exercise Price on the terms and subject to the conditions hereinafter set forth.

			
	
			
				 1.2.
			Right to Exercise. 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 with respect to the percentage of the total number of Option Shares (the “Vested Percentage”) on each of the dates set forth below (each a “Vesting Date”), provided that the Optionee continues to be employed by the Company on such Vesting Date :

			
	
			
				 (a)
			On the [first] anniversary of the Grant Date: [25%] and

		 

 

			
	
			
				 (b)
			On the corresponding day (i.e., on the __ day) of each calendar month following the [first] anniversary of the Grant Date and continuing for a total of [36] additional months, an additional [2.0833%], until the [fourth] anniversary of the Grant Date, when the total Vested Percentage shall equal 100%.

			
	
			
				 1.3.
			Change in Control.

		
			 
		

			
	
			
				 (a)
			Accelerated Vesting. Notwithstanding Section 1.2, if there is a Change in Control of the Company and either (i) the Optionee continues to be employed by the Company on the date of the Change in Control or (ii) the Optionee’s employment was terminated either(x) by the Company other than for Cause (as defined below) or (y) by the Optionee for Good Reason (as defined below) and the effective date of such termination was not more than three (3) months before the date of the Change in Control, then this Option shall (if not already so exercisable) become exercisable with respect to 100% of the total number of Option Shares.

			
	
			
				 (b)
			Notice of Change in Control. 

			
	
			
				 (i)
			If at any time before the Expiration Date the Company becomes aware of the occurrence (or impending occurrence) of any event described in subsection (d)(i) or subsection (d)(ii) of this Section 1.3 (a “Change in Control Event”), then the Company shall endeavor to give the Optionee written notice thereof as promptly as practicable, setting forth (if known) the date on or about which the Change in Control Event occurred or is anticipated to occur, but neither the giving of such notice nor any failure to give such notice shall extend or shorten the time for exercise of this Option, which shall remain exercisable as otherwise provided herein.

			
	
			
				 (ii)
			Not later than twenty (20) days before (x) the consummation of a transaction described in subsection (d)(iii) or subsection (d)(iv) of this Section 1.3 (a “Change in Control Transaction”) or (y) the record date or other date for establishing the holders of Common Stock entitled to the liquidating dividend or other distribution (or, if more than one distribution is contemplated, the initial distribution) (the “Liquidating Distribution Record Date”) in respect of any complete or partial liquidation, dissolution, or divisive reorganization of the Company approved (or to be approved) by the Company’s stockholders (a “Company Liquidation”), the Company shall give the Optionee written notice thereof, which written notice shall specify a date (the “Accelerated Exercise Deadline”) that is not earlier than the fifteenth (15th) day after the date such notice was given as the date by which notice of exercise of this Option must be received by the Company. If the Optionee thereafter gives timely notice of exercise of this Option, such exercise shall be effective as provided in subsection (c)(i).

			
	
			
				 (c)
			Effectiveness of Exercise; Early Termination of Option.  

			
	
			
				 (i)
			If the Company has given notice of a Change in Control Transaction or a Liquidating Distribution Record Date pursuant to subsection (b)(ii) and has received from the Optionee a notice of exercise not later than the Accelerated Exercise Deadline, then (unless the notice of exercise expressly states that it is not so conditioned and should be deemed an exercise of this Option to whatever extent this Option is then otherwise exercisable or to some lesser extent) the exercise of this Option effected by such notice of exercise (whether or not explicitly so stated therein) shall (x) in the case of a Change in Control Transaction, be conditioned upon, and shall be deemed to occur immediately before, the consummation of the Change in Control Transaction and (y) in the case of a Company Liquidation, be conditioned upon stockholder approval of the plan or proposal for the Company Liquidation (unless such stockholder approval has theretofore been obtained) and shall be conditioned upon (as shall be the accelerated vesting pursuant to Section 1.3(a) above) and be deemed to occur immediately before the Liquidating Distribution Record Date.

		 

 

			
	
			
				 (ii)
			If the Company has given notice of a Change in Control Transaction or a Liquidating Distribution Record Date pursuant to subsection (b)(ii) and has not received from the Optionee a notice of exercise on or before the Accelerated Exercise Deadline, then this Option shall (to the extent not previously exercised) expire as of, and shall no longer be exercisable from and after, the Accelerated Exercise Deadline, unless the Board or the Committee (or any successor to either) in its sole and absolute discretion determines, in connection with or in anticipation of the Change in Control Transaction or Company Liquidation or otherwise, that this Option (or an option issued to replace, or in substitution, for this Option, including as permitted pursuant to Section 4.2 below) should be or remain exercisable for some longer period (ending in no event later than the Expiration Date).

			
	
			
				 (d)
			For purposes of this Option, a “Change in Control” means the occurrence of any of the following:

			
	
			
				 (i)
			any “person” (as that term is used in Section 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (other than Robert B. Barnhill, Jr., his affiliates, and members of his family) becomes the beneficial owner, directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the combined voting power of the then-outstanding securities of the Company; or

			
	
			
				 (ii)
			there is a change in the composition of a majority of the Board within twelve (12) months after any “person” (as defined above) (other than Robert B. Barnhill, Jr., his affiliates, and members of his family) becomes the beneficial owner, directly or indirectly, of securities of the Company representing thirty percent (30%) or more of the combined voting power of the then-outstanding securities of the Company; or

			
	
			
				 (iii)
			there is consummated any consolidation or merger or share exchange involving the Company in which the Company is not the continuing or surviving corporation or pursuant to which shares of the Company’s common stock would be converted into cash, securities, or other property, other than a merger of the Company in which the holders of the Company’s common stock immediately before the merger have substantially the same proportionate ownership of common stock of the surviving entity immediately after the merger; or

			
	
			
				 (iv)
			there is consummated any sale, lease, exchange, or other transfer (in one transaction or a series of related transactions) of all or a substantial portion of the assets of the Company other than to one or more of its wholly-owned subsidiaries; or 

			
	
			
				 (v)
			the stockholders of the Company approve a plan or proposal for a Company Liquidation.

			
	
			
				 (e)
			No Extension of Expiration Date. Notwithstanding any other provision of this Option, in no event may this Option be exercised in whole or in part after the Expiration Date.

			
	
			
				 1.4.
			Termination for Cause; Resignation. If (i) the Optionee’s employment with the Company is terminated by the Company for Cause (as defined below) or (ii) the Optionee resigns or otherwise voluntarily terminates his or her employment with the Company other than for Good Reason (as defined below), then all rights under this Option shall terminate effective as of the date of such termination. For purposes of this Option:

			
	
			
				 (a)
			“Cause” means any of the following, each of which shall also constitute “gross misconduct” as that term is used in the Plan:

		 

 

			
	
			
				 (i)
			The Optionee’s conviction of, or a plea of guilty or nolo contendere to, a felony or a crime involving moral turpitude;

		
			(ii)The Optionee’s embezzlement or criminal diversion of funds or property of the Company or any of the Company’s subsidiaries; or
		

			
	
			
				 (ii)
			Any willful failure by the Optionee to perform the substantial duties of the Optionee’s position or any other act or failure to act that is reasonably determined by the Committee to constitute gross misconduct by the Optionee; and

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

			
	
			
				 (i)
			Any material adverse change in the Optionee’s duties or reporting responsibilities or any material reduction in the Optionee’s authority, provided the Optionee specifically objects in writing to the change or reduction within thirty (30) days after the change or reduction occurs and the Company does not rescind the change or reduction within a further period of thirty (30) days; or

			
	
			
				 (ii)
			Any material failure by the Company or its subsidiaries to make a payment due to the Optionee or to provide the Optionee with a benefit due 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.

			
	
			
				 1.5.
			Termination Without Cause or for Good Reason.

		
			 
		

			
	
			
				 (a)
			If the Optionee’s employment with the Company is terminated (x) by the Company other than for Cause or (y) by the Optionee for Good Reason, then, subject to Section 1.3, 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 employment for a period of three (3) months thereafter (but in no event later than the Expiration Date), 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).

			
	
			
				 (b)
			In the event of any conflict between the provisions of subsection (a) of this Section and Section 1.3, the provisions of Section 1.3 shall prevail over and supersede the provisions of subsection (a) of this Section.

			
	
			
				 1.6.
			Disability. If the Optionee’s employment with the Company is terminated as a result of Disability (as defined in the Plan), this Option shall not terminate or be forfeited and the Optionee shall remain entitled to exercise this Option to the same extent that it would have been exercisable on the date of termination of the Optionee’s employment for a period of twelve (12) months thereafter (but in no event later than the Expiration Date), 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.
			Death. In the event that the Optionee remains employed by the Company at the time of the Optionee’s death, the Optionee’s personal representative or other successor in interest shall be entitled to exercise this Option to the same extent that it would have been exercisable on the date of the Optionee’s death for a period of twelve (12) months thereafter (but in no event later than the Expiration Date), 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).

			
	
			
				 1.8.
			“Employment” As used in this Option, “employment” by or with the Company includes employment by or with any of the Company’s subsidiaries.

			
	
			
				 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 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 authorized by the Board or the Committee in its sole discretion (either generally in respect of all or a particular class or group of option awards under the Plan or specifically in respect of this Option), 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 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.

		 

 

			
	
			
				 2.6.
			“Fair Market Value”.  

			
	
			
				 (a)
			For purposes of this SECTION 2, except as provided in subsection (b), “Fair Market Value” means the last reported sales price of the Common Stock on any national securities exchange or quotation system as of the day before the date of exercise, or the average of the closing bid and asked prices of the Common Stock as reported by the Nasdaq Stock Market as of the day before the date of exercise, or, if not reported by Nasdaq, the fair market value of a share of Common Stock as of the day before the date of exercise as determined in good faith by the Board or the Committee. 

			
	
			
				 (b)
			Notwithstanding subsection (a), in the case of any exercise of this Option in connection with or conditioned upon the consummation of a Change in Control Transaction in which, or in connection with which, the Common Stock of the Company generally is valued for purposes of its acquisition, conversion, or exchange in such Change in Control Transaction, “Fair Market Value” for purposes hereof shall be equal to the value established for the Common Stock in such Change in Control Transaction, but in any event such valuation shall not be effective unless and until the conditions to such Change in Control Transaction and the implementation of such value for the Common Stock are satisfied. 

			
	
			
				 2.7.
			Issuance Taxes. The issuance of any stock certificates upon exercise of this Option shall be made without charge to the exercising holder for any stamp or similar tax imposed with respect thereto. The Company shall not, however, be required to pay any such tax that may be payable on account of the issuance and delivery of stock certificates in any name other than that of the registered holder of this Option, and the Company shall not be required to issue or deliver any such stock certificate unless and until the person or persons requesting the issue thereof have paid to the Company the amount of such tax or have established to the satisfaction of the Company that such tax has been paid.

			
	
			
				 SECTION 3.
			RESTRICTIONS ON TRANSFER; LEGENDS

			
	
			
				 3.1.
			Transfer Restrictions; Opinion of Counsel. Neither this Option nor all or any part of the Optionee's rights hereunder may be pledged, hypothecated, sold, assigned, transferred, or otherwise encumbered or disposed of, either voluntarily or by operation of law (whether by virtue of execution, attachment, or similar process) (each of the foregoing a “Transfer”). No shares issued upon the exercise of this Option may be Transferred, other than by will or by operation of the laws of descent and distribution, unless the transferor first delivers to the Company (if the Company so requests or if a legend appearing on the certificate evidencing, or a similar restriction contained in the books of account reflecting, shares of Common Stock to be so issued requires) an opinion of counsel reasonably satisfactory to counsel for the Company to the effect that such Transfer is permitted under applicable federal and state securities laws. Any purported Transfer in violation of the foregoing restrictions shall be null and void and without effect. 

			
	
			
				 3.2.
			Option Legends. This Option and each option issued in exchange for or upon transfer of this Option shall (unless otherwise permitted by the provisions of this SECTION 3) be stamped or otherwise imprinted with a legend in substantially the following form:

		
			The securities represented by this Option have not been registered under the Securities Act of 1933, as amended, or the securities laws of any state; therefore, the transfer of this Option is subject to compliance with the conditions specified herein, and no transfer of this Option shall be valid or effective until such conditions have been fulfilled.
		

		 

 

			
	
			
				 SECTION 4.
			ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF SHARES ISSUABLE UPON EXERCISE

			
	
			
				 4.1.
			Stock Dividends, Splits, Etc. In the event that (i) the authorized shares of Common Stock are subdivided into a greater, or combined into a lesser, number of shares of Common Stock (whether with or without par value) or (ii) the Company issues additional Common Stock as a dividend:

			
	
			
				 (a)
			The Exercise Price shall be decreased or increased, as the case may be, to an amount which bears the same relation to the Exercise Price in effect immediately before such subdivision, combination, or dividend as the total number of shares of Common Stock outstanding immediately before such subdivision, combination, or dividend bears to the total number of shares of Common Stock outstanding immediately after such subdivision, combination, or dividend; and

			
	
			
				 (b)
			The number of shares issuable upon the exercise of this Option shall be adjusted by multiplying the number of shares so issuable immediately before the adjustment of the Exercise Price described in subsection (a) by the Exercise Price immediately before such adjustment and dividing the product so obtained by the Exercise Price after such adjustment.

			
	
			
				 4.2.
			Reorganization Events. In case of any capital reorganization, reclassification of the Common Stock, consolidation of the Company with, or the merger of the Company into, any other corporation or entity as may be permitted by law, or the sale of all or substantially all of the property and assets of the Company to any other corporation or entity (each a “Reorganization Event”) that affects the Common Stock in such a manner that an adjustment is necessary or appropriate in order to prevent dilution or enlargement of the benefits intended by this Option, the Committee (or any successor thereto) shall, in such manner as it may deem equitable but subject otherwise to the terms of this Option effective upon a Change in Control, adjust any or all of: (A) the number and type of securities or other property that thereafter shall be the subject of this Option and (B) the exercise price with respect to this Option, and after such Reorganization Event this Option (or any replacement or substitution therefor that is issued as a consequence of the Reorganization Event), as so adjusted, shall remain outstanding and continue to vest and be and become exercisable (but in no event beyond the Expiration Date) for shares of stock or other securities or property of the Company, or of the corporation or entity resulting from or surviving, or acquiring the assets of the Company pursuant to, such Reorganization Event .The subdivision or combination of the authorized shares of Common Stock into a greater or lesser number of shares of Common Stock (whether with or without par value) shall not be deemed a reclassification of the Common Stock for the purposes of this Section 4.2.

			
	
			
				 4.3.
			Notice of Certain Actions. In addition to such other notices as may be required of the Company under Section 1.3(b) in respect of a Change in Control, if any date before the Expiration Date is fixed by the Company as the date as of which holders of Common Stock (i) shall be entitled to receive any dividend or any distribution upon the Common Stock of the Company other than a dividend payable in cash or in Common Stock, (ii) shall be offered any subscription or other rights, or (iii) shall be entitled to participate in any Reorganization Event, the Company shall cause notice thereof (specifying such date) to be mailed to the registered holder of this Option at such holder’s address appearing on the books of the Company at least fifteen (15) days before the date as of which such holders of Common Stock are to be determined.

			
	
			
				 4.4.
			Notice of Adjustment. Whenever the Exercise Price or the number or shares issuable upon exercise of this Option is adjusted as required by the provisions of this SECTION 4 and such adjustment is not otherwise publicly announced, the Company shall endeavor to promptly mail a notice setting forth the adjusted Exercise Price and the adjusted number of shares for which this Option is 

		 

 

	exercisable to the registered holder of this Option at such holder’s last address as it appears on the books of the Company, but failure to give or receive such notice, or any defects therein or in the mailing thereof, shall not affect such adjustments. 

			
	
			
				 4.5.
			Reservation of Sufficient Shares. The Company shall at all times reserve and keep available out of its authorized but unissued Common Stock and for the purpose of effecting the issuance of shares upon the exercise of this Option such number of its duly authorized shares of Common Stock as shall from time to time be sufficient for such purpose. If at any time the number of authorized but unissued shares of Common Stock is not sufficient to effect the issuance of shares upon the exercise of this Option at the Exercise Price then in effect, the Company shall take such corporate action as may, in the opinion of its counsel, be reasonably necessary to increase its authorized but unissued shares of Common Stock to such number of shares as shall be sufficient for this purpose.

			
	
			
				 4.6.
			Exercise Price Not Less Than Par Value. As a condition precedent to the taking of any action that would cause an adjustment reducing the then-prevailing Exercise Price below the then-par value, if any, per share of the Common Stock issuable upon exercise of this Option, the Company shall take such corporate action as may, in the opinion of its counsel, be reasonably necessary in order that the Company may validly and legally issue its Common Stock at the adjusted Exercise Price upon any subsequent exercise of this Option.

			
	
			
				 4.7.
			Registration and Approval.

		
			 
		

			
	
			
				 (a)
			If any shares of the Common Stock reserved or to be reserved for the purpose of issuance upon the exercise of this Option require registration with or approval of any governmental authority under any federal or state law before such shares may be validly issued upon exercise of this Option, then the Company covenants that it will in good faith and as expeditiously as reasonably possible endeavor to secure such registration or approval, as the case may be; provided, however, that this provision shall not require the Company (i) to actually secure such registration or approval (but merely to endeavor in good faith and as expeditiously as reasonably possible to do so) or (ii) to endeavor to secure such registration or approval in order (x) to issue shares upon exercise of this Option if such shares can lawfully be issued pursuant to one or more exemptions from registration under applicable federal and state securities laws (whether or not as a consequence thereof such shares constitute “restricted securities” or the holder of such shares is unable to transfer such shares absent registration or the availability of a suitable exemption from registration under such laws) or (y) to enable any person to sell or distribute shares received upon exercise of this Option in a transaction involving a public offering within the meaning of the Securities Act as then in effect.

			
	
			
				 (b)
			In the event that shares of Common Stock issued upon exercise of this Option are not to be issued pursuant to an effective Registration Statement under the Securities Act, or if such shares otherwise are or would be restricted securities in the hands of the Optionee upon issuance, then the Company may require, as a condition to exercise by the Optionee of this Option, such representations and undertakings on the part of the Optionee as may be reasonably required by the Company to allow for such issuance without violation of, and to assure continued compliance by the Optionee following such issuance with, applicable law, and the certificate(s) evidencing such shares, or the books of account reflecting such shares, may bear or be marked with an appropriate legend as to any applicable restrictions on transfer, or similar restrictions, as may be so required.

			
	
			
				 4.8.
			Shares Fully Paid and Nonassessable. The Company covenants that all shares issued upon exercise of this Option will upon issuance be fully paid and nonassessable. 

		 

 

			
	
			
				 SECTION 5.
			MISCELLANEOUS

			
	
			
				 5.1.
			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. 

			
	
			
				 5.2.
			Conflicts with Plan; Amendments. This Agreement 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 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 all other Non-Qualified Options under the Plan that are then in effect at the time of such amendment 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. 

			
	
			
				 5.3.
			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.

			
	
			
				 5.4.
			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 President, and

			
	
			
				 (b)
			If to the Optionee, to the address set forth below Optionee’s signature, or in either case to such other address as any party shall notify the other in accordance with this section.

			
	
			
				 5.5.
			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).

			
	
			
				 5.6.
			Headings. The descriptive headings in this Option are inserted for convenience of reference only and do not constitute a part of this Agreement.

			
	
			
				 5.7.
			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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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)

				
	
					
						 

					
					
						 

					
					
						 

					
					
						Robert B. Barnhill, Jr.

				
	
					
						 

					
					
						 

					
					
						 

					
					
						President and Chief Executive Officer

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						_______________________________

					
					
						 

					
					
						 

					
					
						_____________________________________

				
	
					
						 

					
					
						 

					
					
						 

					
					
						Optionee

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						Address:

				
	
					
						 

					
					
						 

					
					
						 

					
					
						_______________________________

				
	
					
						 

					
					
						 

					
					
						 

					
					
						_______________________________

				

		
			 
		

		
			

		 

 

 
		

		
			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 _______ 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: 
		

		
			________________________________
		

		
			________________________________Exhibit

Exhibit 10.2                                                          
EMPLOYMENT AGREEMENT
This Employment Agreement (this “Agreement”) is made and entered into as of August 7, 2015 (the “Effective Date”), by and between RetailMeNot, Inc., a Delaware corporation (the “Company”), and Jonathan B. Kaplan, an individual (the “Executive”). 
1.        EMPLOYMENT TERMS AND DUTIES
1.1        Employment.  The Company hereby employs Executive, and Executive hereby accepts employment by the Company, upon the terms and conditions set forth in this Agreement.
1.2        Duties.  Executive shall serve as General Counsel and Corporate Secretary and shall report directly to the Company’s Chief Financial Officer (“CFO”) until such time as that role is no longer filled by Louis Agnese, at which point Executive shall report directly to the Company’s Chief Executive Officer (“CEO”). Executive shall have the authority, and perform the duties customarily associated with his title and office together with such additional duties as may from time to time be assigned by the CFO or CEO, as applicable.  During the term of Executive’s employment hereunder, Executive shall devote his full working time and efforts to the performance of his duties and the furtherance of the interests of the Company and shall not be otherwise employed.
1.3        Term.  Subject to the provisions of Section 1.5 below, the term of employment of Executive under this Agreement shall commence on the Effective Date and shall continue until terminated by either party (the “Employment Term”).  Upon termination of this Agreement, this Agreement shall expire and have no further effect, except as otherwise provided in Section 4.4 below.  
1.4        Compensation and Benefits.
1.4.1    Base Salary.  In consideration of the services rendered to the Company hereunder by Executive and Executive’s covenants hereunder and in the Company’s Proprietary Information and Inventions Agreement, during the Employment Term, the Company shall pay Executive a gross salary of $280,000.00 per year (the “Base Salary”), less statutory and other authorized deductions and withholdings, payable in accordance with the Company’s regular payroll practices.  This salary will be eligible for increase from time to time in accordance with the employee compensation policies then in effect. 
1.4.2    Bonus Plan.  Executive may be entitled to participate in the Company’s employee bonus plans as may be authorized by the Company’s Board of Directors (“Board”) from time to time (any bonus paid pursuant to such plans, the “Bonus”).  Executive’s annual aggregate target bonus base (the “Bonus Base”) will be equal to 50% of Executive’s then current Base Salary.  The Bonus objectives will be created by the CFO or CEO, as applicable, after consultation with Executive.  The Bonus shall be less statutory and other authorized deductions and withholdings and payable at the times when other management bonuses are paid.  Executive must be an employee at the time that Bonuses are paid to be eligible to receive a Bonus. 
1.4.3    Benefits Package; Business Expenses.  As an employee of the Company, Executive will be eligible to enroll in the Company’s benefit programs as they are established from time to time.  Upon receipt from Executive of supporting receipts to the extent required by applicable income tax 

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regulations and the Company’s reimbursement policies, the Company shall reimburse Executive for out-of-pocket business expenses reasonably incurred by Executive in connection with his employment hereunder.
1.4.4    Equity Compensation.  
(a)    Subject to the approval of the Compensation Committee of the Board of Directors (the “Compensation Committee”), the Company will grant to Executive non-qualified options to purchase 32,550 shares of the Company’s Series 1 common stock (the “Employment Option”) with an exercise price per share equal to the fair market value on the date of grant of the Employment Option.  The Employment Option will vest with respect to 1/48th of the shares on the first monthly anniversary of the date of grant, with the remaining shares vesting in equal annual installments thereafter, subject to Executive’s continued employment with the Company on any such vesting date.  
(b)    Subject to the approval of the Compensation Committee, the Company will also grant to Executive restricted stock units entitling Executive to receive 7,000 shares of the Company’s Series 1 common stock (the “Employment RSUs” and together with the Employment Options, the “Employment Equity Compensation”). The Employment RSUs will vest with respect to 25% of the shares on the one year anniversary of the date of grant, with the remaining shares vesting in equal annual installments thereafter, subject to Executive’s continued employment with the Company on each vesting date.
(c)    The Employment Equity Compensation will be governed by the RetailMeNot, Inc. 2013 Equity Incentive Plan, as amended (the “Plan”), and related award documents.  
1.5        Termination.  Executive’s employment and this Agreement (except as otherwise provided hereunder) shall terminate upon the occurrence of any of the following, at the time set forth therefor (the time of any such termination being the “Termination Date”):
1.5.1    Death or Disability.  Immediately upon the death of Executive or a determination by the Company that Executive has ceased to be able to perform the essential functions of his duties, with or without reasonable accommodation, for a period of not less than 180 days, due to a mental or physical illness or incapacity, unless otherwise required by law (“Disability”) (termination pursuant to this Section 1.5.1 being referred to herein as termination for “Death or Disability”).
1.5.2    Voluntary Termination.  Thirty days following Executive’s written notice to the Company of termination of employment without Good Reason (as defined in Section 1.5.5); provided, however, that the Company may waive all or a portion of the 30 days’ notice and accelerate the effective date of such termination (and the Termination Date) (termination pursuant to this Section 1.5.2 being referred to herein as “Voluntary” termination).
1.5.3    Termination For Cause.  Immediately following notice of termination for Cause (as defined in the Plan) given by the Company.
1.5.4    Termination Without Cause.  Notwithstanding any other provisions contained herein, including, but not limited to Section 1.3 above, the Company may terminate Executive’s employment immediately following notice of termination without Cause given by the Company (termination pursuant to this Section 1.5.4 being referred to herein as termination “Without Cause”). 
1.5.5    Resignation for Good Reason.  Thirty days following Executive’s written notice to the Company of Executive’s intent to resign for Good Reason (as defined herein), provided that 

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Company has not remedied the breach identified by Executive within this 30-day notice period, and provided further that Executive has provided Company written notice of Executive’s intent to resign for Good Reason within 60 days of the occurrence of the event providing “Good Reason” to resign.  For purposes of this Agreement, “Good Reason” shall mean Executive’s resignation in connection with a Change in Control following (i) a significant reduction of Executive’s duties, position or responsibilities relative to Executive’s duties, position or responsibilities in effect immediately prior to such reduction, other than where Executive is asked to assume substantially similar duties and responsibilities in a larger entity after such Change in Control; (ii) a reduction in the Executive’s level of compensation (including base salary, fringe benefits and target bonus under any corporate-performance based bonus or incentive programs as established from time to time) by more than 10%; (iii) a relocation of the Executive’s place of employment by more than 20 miles from the Company’s current offices; or (iv) the liquidation or complete dissolution of the Company; provided, however, that upon the occurrence of any event described in (i), (ii) or (iii) hereof shall constitute a Resignation for Good Reason, if and only if such change, reduction or relocation is effected without Executive’s consent.
1.5.6    Other Remedies.  Termination pursuant to Section 1.5.3 above shall be in addition to and without prejudice to any other right or remedy to which the Company may be entitled at law, in equity, or under this Agreement.
1.6        Severance and Termination.
1.6.1    Voluntary Termination, Termination for Cause, Termination for Death or Disability.  In the case of a termination of Executive’s employment hereunder for Death or Disability in accordance with Section 1.5.1 above, or Executive’s Voluntary termination of employment hereunder in accordance with Section 1.5.2 above, or a termination of Executive’s employment hereunder for Cause in accordance with Section 1.5.3 above, (i) Executive shall not be entitled to receive payment of, and the Company shall have no obligation to pay, any severance or similar compensation attributable to such termination, other than Base Salary earned but unpaid, vested benefits under any employee benefit plan, and any unreimbursed expenses pursuant to Section 1.4.3 hereof incurred by Executive as of the Termination Date, and (ii) the Company’s other obligations under this Agreement shall immediately cease.
1.6.2    Termination Without Cause – Not In Connection with A Change in Control.  Subject to the provisions set forth in this Agreement, in the case of a termination of Executive’s employment hereunder Without Cause in accordance with Section 1.5.4 above, the Company shall pay Executive the following severance package (“Severance Package”):  (i) an amount equivalent to six months’ of Executive’s then Base Salary, subject to the tax withholding specified in Section 1.4.1 above, payable as set forth herein (“Severance Payment”), and (ii) to the extent Executive participates in any medical, prescription drug, dental, vision and any other “group health plan” of the Company immediately prior to Executive’s Termination Date, the Company shall pay to Executive in a lump sum a fully taxable cash payment in an amount equal to six times the monthly premium cost to Executive of continued coverage for Executive (and for Executive’s spouse and dependents to the extent participating in such plans immediately prior to the Termination Date) that would be incurred for continuation coverage under such plans in accordance with Section 4980B of the Internal Revenue Code of 1986, as amended, and Part 6 of Title 1 of the Employee Retirement Income Security Act of 1986, as amended, less applicable tax withholding, payable on the first payday following the 30th day after Executive’s termination date.  Executive may, but is not obligated to, use such payment toward the cost of continuation coverage premiums.   The Company’s obligation to provide Executive with the Severance Package is contingent upon Executive’s execution of a general release of claims satisfactory to the Company, with such release becoming effective on or before 30 days following Executive’s termination date (“Severance Condition”).  Payment of the Severance Payment will commence on the first payday following the 30th day after Executive’s termination date and continue 

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over a 6 month period in equal installments, with payments made on Company’s regular paydays.  Such release will not affect Executive’s continuing obligations to the Company under the Proprietary Information and Inventions Agreement.  The Company’s obligation to pay and Executive’s right to receive the Severance Package set forth herein shall cease in the event of Executive’s breach of any of his obligations under this Agreement or the Proprietary Information and Inventions Agreement.
1.6.3    Termination Without Cause or Resignation for Good Reason – In Connection with a Change in Control.  Subject to the provisions set forth in this Agreement, in the case of a termination of Executive’s employment hereunder Without Cause in accordance with Section 1.5.4 above or the resignation of Executive’s employment hereunder for Good Reason in accordance with Section 1.5.5 above, in each case, 60 days prior to or within 12 months after a Change in Control, the Company shall provide the following severance package (“CIC Severance Package”):  (i) Company shall pay Executive an amount equivalent to six months of Executive’s then Base Salary plus 50% percent of Executive’s Bonus Base, subject to the tax withholding specified in Sections 1.4.1 and 1.4.2 above, payable as set forth herein (“CIC Severance Payment”); (ii) to the extent Executive participates in any medical, prescription drug, dental, vision and any other “group health plan” of the Company immediately prior to the Termination Date, the Company shall pay to Executive in a lump sum a fully taxable cash payment in an amount equal to 6 times the monthly premium cost to Executive of continued coverage for Executive (and for Executive’s spouse and dependents to the extent participating in such plans immediately prior to the Termination Date) that would be incurred for continuation coverage under such plans in accordance with Section 4980B of the Internal Revenue Code of 1986, as amended, and Part 6 of Title 1 of the Employee Retirement Income Security Act of 1986, as amended, less applicable tax withholding payable on the first payday following the 30th day after Executive’s termination date (Executive may, but is not obligated to, use such payment toward the cost of continuation coverage premiums); and (iii) one-hundred percent of any unvested shares subject to any equity grants issued to Executive by Company shall accelerate and vest and become exercisable in full.  Company’s obligation to provide Executive with the CIC Severance Package is contingent upon Executive’s execution of a general release of claims satisfactory to the Company, with such release becoming effective on or before 30 days following Executive’s termination date.  Payment of the CIC Severance Payment will commence on the first payday following the 30th day after Executive’s termination date and continue over a 6 month period in equal installments, with payments made on Company’s regular paydays.  Such release will not affect Executive’s continuing obligations to the Company under the Proprietary Information and Inventions Agreement.  The Company’s obligation to pay and Executive’s right to receive the CIC Severance Package set forth herein shall cease in the event of Executive’s breach of any of his obligations under this Agreement or the Proprietary Information and Inventions Agreement.  
1.7        Application of Section 409A.  
1.7.1    All references in this Agreement, however phrased, to the termination of Executive shall mean, and be deemed to occur where there has been, a “separation from service” within the meaning of the Section 409A Regulations under the Internal Revenue Code with respect to payment of amounts that are deemed deferred compensation subject to the Section 409A Regulations.  Furthermore, to the extent that Executive is a “specified employee” within the meaning of the Section 409A Regulations as of the date of Executive’s separation from service, no amount that constitutes a deferral of compensation which is payable on account of Executive’s separation from service shall be paid to Executive before the date (the “Delayed Payment Date”) which is first day of the seventh month after the date of Executive’s separation from service or, if earlier, the date of Executive’s death following such separation from service, and all such amounts that would, but for this sentence, become payable prior to the Delayed Payment Date will be accumulated and paid on the Delayed Payment Date.

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1.7.2    Company intends that income provided to Executive pursuant to this Agreement will not be subject to taxation under Section 409A of the Internal Revenue Code.  The provisions of this Agreement shall be interpreted and construed in favor of satisfying any applicable requirements of Section 409A of the Code.  However, Company does not guarantee any particular tax effect for income provided to Executive pursuant to this Agreement.  In any event, except for Company’s responsibility to withhold applicable income and employment taxes from compensation paid or provided to Executive, Company shall not be responsible for the payment of any applicable taxes on compensation paid or provided to Executive pursuant to this Agreement.  
1.7.3    Notwithstanding anything herein to the contrary, the reimbursement of expenses or in-kind benefits provided pursuant to this Agreement shall be subject to the following conditions: (1) the expenses eligible for reimbursement or in-kind benefits in one taxable year shall not affect the expenses eligible for reimbursement or in-kind benefits in any other taxable year; (2) the reimbursement of eligible expenses or in-kind benefits shall be made the earliest of (i) the date called for under Company’s applicable policies, (ii) the time provided by this Agreement, and (iii) the end of the year after the year in which such expense was incurred; and (3) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit.
1.7.4    For purposes of Section 409A of the Code, the right to a series of installment payments under this Agreement shall be treated as a right to a series of separate payments..
		
	2.    
	PROTECTION OF COMPANY’S PROPRIETARY INFORMATION AND INVENTIONS.  

Executive is currently a party to, or will enter into concurrent with the execution of this Agreement, the Proprietary Information and Inventions Agreement, a copy of which is attached hereto as Exhibit A and incorporated herein by this reference.  The Proprietary Information and Inventions Agreement survives the execution and termination of this Agreement and/or the termination of Executive’s employment with the Company.

3.        REPRESENTATIONS AND WARRANTIES BY EXECUTIVE
Executive represents and warrants to the Company that (i) this Agreement is valid and binding upon and enforceable against him in accordance with its terms, (ii) Executive is not bound by or subject to any contractual or other obligation that would be violated by his execution or performance of this Agreement, including, but not limited to, any non-competition agreement presently in effect, and (iii) Executive is not subject to any pending or, to Executive’s knowledge, threatened claim, action, judgment, order, or investigation that could adversely affect his ability to perform his obligations under this Agreement or the business reputation of the Company.  Executive has not entered into, and agrees that he will not enter into, any agreement either written or oral in conflict herewith.
4.        MISCELLANEOUS
4.1        Notices. All notices, requests, and other communications hereunder must be in writing and will be deemed to have been duly given only if delivered personally against written receipt or mailed (postage prepaid by certified or registered mail, return receipt requested) or by overnight courier to the parties at the following addresses:

5

If to the Executive, to:
Jonathan Kaplan
301 Congress Avenue, Suite 700
Austin, Texas 78701
If to the Company, to:
RetailMeNot, Inc.
301 Congress Avenue, Suite 700
Austin, Texas 78701
Attn: Chief Executive Officer

All such notices, requests and other communications will (i) if delivered personally to the address as provided in this Section 4.1, be deemed given upon delivery, and (ii) if delivered by mail or overnight courier in the manner described above to the address as provided in this Section 4.1, be deemed given upon receipt.  Any party from time to time may change its address or other information for the purpose of notices to that party by giving written notice specifying such change to the other parties hereto.
4.2        Authorization to be Employed. This Agreement, and Executive’s employment hereunder, is subject to Executive providing the Company with legally required proof of Executive’s authorization to be employed in the United States of America within three days of Executive’s first day of employment.
4.3        Entire Agreement.  This Agreement, and the attached exhibits, supersede all prior discussions and agreements among the parties with respect to the subject matter hereof, and contain the sole and entire agreement between the parties hereto with respect thereto.  
4.4        Survival.   The respective rights and obligations of the parties that require performance following expiration or termination of this Agreement, including but not limited to Sections 1.6.2, 1.6.3, 2, and 4, shall survive the expiration or termination of this Agreement, the Employment Term and/or the Executive’s employment with the Company.
4.5        Waiver.  Any term or condition of this Agreement may be waived at any time by the party that is entitled to the benefit thereof, but no such waiver shall be effective unless set forth in a written instrument duly executed by or on behalf of the party waiving such term or condition.  No waiver by any party hereto of any term or condition of this Agreement, in any one or more instances, shall be deemed to be or construed as a waiver of the same or any other term or condition of this Agreement on any future occasion.  All remedies, either under this Agreement or by law or otherwise afforded, will be cumulative and not alternative.
4.6        Amendment.  This Agreement may be amended, supplemented, or modified only by a written instrument duly executed by or on behalf of each party hereto.
4.7        Recovery of Attorney’s Fees.  In the event of any litigation arising from or relating to this Agreement, the prevailing party in such litigation proceedings shall be entitled to recover, from the non-prevailing party, the prevailing party’s reasonable costs and attorney’s fees, in addition to all other legal or equitable remedies to which it may otherwise be entitled.

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4.8        No Third Party Beneficiary.  The terms and provisions of this Agreement are intended solely for the benefit of each party hereto and the Company’s successors and assigns, and it is not the intention of the parties to confer third-party beneficiary rights upon any other person.
4.9        No Assignment; Binding Effect.  This Agreement shall inure to the benefit of any successors or assigns of the Company.  Executive shall not be entitled to assign or delegate his rights or obligations under this Agreement.
4.10        Headings.  The headings used in this Agreement have been inserted for convenience of reference only and do not define or limit the provisions hereof.
4.11        Severability.  The Company and Executive intend all provisions of this Agreement to be enforced to the fullest extent permitted by law. Accordingly, if a court of competent jurisdiction determines that the scope and/or operation of any provision of this Agreement is too broad to be enforced as written, the Company and Executive intend that the court should reform such provision to such narrower scope and/or operation as it determines to be enforceable.  If, however, any provision of this Agreement is held to be illegal, invalid, or unenforceable under present or future law, and not subject to reformation, then (i) such provision shall be fully severable, (ii) this Agreement shall be construed and enforced as if such provision was never a part of this Agreement, and (iii) the remaining provisions of this Agreement shall remain in full force and effect and shall not be affected by illegal, invalid, or unenforceable provisions or by their severance.
4.12        Governing Law.  THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS APPLICABLE TO CONTRACTS EXECUTED AND PERFORMED IN SUCH STATE WITHOUT GIVING EFFECT TO CONFLICTS OF LAWS PRINCIPLES.
4.13        Arbitration.  In the event of any dispute or claim relating to or arising out of Executive’s employment relationship with Company, this Agreement, or the termination of Executive’s employment with Company for any reason, Executive and Company agree that all disputes shall be fully resolved by confidential, binding arbitration conducted by a single neutral arbitrator in Austin, Texas through the American Arbitration Association (“AAA”) pursuant to the AAA’s Employment Arbitration Rules then in effect, which are available online at the AAA’s website at www.adr.org or by requesting a copy from the Human Resources Department.  The arbitrator shall permit adequate discovery and is empowered to award all remedies otherwise available in a court of competent jurisdiction and any judgment rendered by the arbitrator may be entered by any court of competent jurisdiction.  The arbitrator shall issue an award in writing and state the essential findings and conclusions on which the award is based.  To the fullest extent permitted by applicable law, by signing this Agreement, Executive and Company both waive the right to have any disputes or claims tried before a judge or jury.  Executive and Company further agree that Company shall have the right to forgo arbitration and seek injunctive relief from the courts if Executive breaches the Proprietary Information and Inventions Agreement.  The mutual promise by Company and Executive to arbitrate any and all disputes between them, rather than litigate them before the courts or other bodies, provides the consideration for this agreement to arbitrate.
4.14    Indemnification.  Executive will be covered under Company’s insurance policies and, subject to applicable law, will be provided indemnification to the maximum extent permitted by Company’s bylaws, certificate of incorporation and standard form of indemnification agreement, with such insurance coverage and indemnification to be in accordance with Company’s standard practices for senior 

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executive officers but on terms no less favorable than provided to any other Company senior executive officer. 
4.15    Counterparts.  This Agreement may be executed in any number of counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument.
[SIGNATURE PAGE TO EMPLOYMENT AGREEMENT FOLLOWS]

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IN WITNESS WHEREOF, the parties hereto have caused this Employment Agreement to be executed as of the date first written above.

“COMPANY”
RETAILMENOT, INC.

	
					
	 
	 
	 
	 

	 
	 
	By:
	/s/    G. Cotter Cunningham        

	 
	 
	Name:
	G. Cotter Cunningham

	 
	 
	Title:
	President and Chief Executive Officer

“EXECUTIVE”

	
				
	 
	 
	By:
	/s/    Jonathan B. Kaplan      

	 
	 
	Name:
	Jonathan B. Kaplan

	 
	 
	Title:
	General Counsel and Corporate Secretary

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EXHIBIT A

PROPRIETARY INFORMATION AND INVENTIONS AGREEMENT

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