Document:

Exhibit

AMENDMENT NO. 4 TO LEASE
This Amendment No. 4 to Lease (this “Amendment Four”) is made as of the date last signed below by and among SLC Lake Pointe SPE LLC, a Delaware limited liability company (“Landlord”), and eHealthInsurance Services, Inc., a Delaware corporation (“Tenant”) (each, a “Party;” collectively, the “Parties”).

RECITALS
A.    Landlord’s predecessor in interest and Tenant executed that certain Office Lease dated May 7, 2012 (the “Original Lease”), as amended by that certain Amendment No. 1 to Lease dated August 17, 2017 (“Amendment One”), that certain Amendment No. 2 to Lease dated December 12, 2017 (“Amendment Two”), and that certain Amendment No. 3 to Lease dated March 20, 2019 (“Amendment Three”).  The Original Lease, Amendment One, Amendment Two, Amendment Three and this Amendment Four are collectively referred to herein as the “Lease.”  Pursuant to the Lease, Landlord leases to Tenant that certain space (the “Existing Space”) containing approximately 41,813 rentable square feet located on the first, fourth and fifth floors of the building with address of 2875 South Decker Lake Drive, West Valley City, Utah 84119 (the “Building”), as more particularly described in the Lease.  A portion of the Existing Space on the first floor of the Building containing approximately 1,085 rentable square feet is referred to herein as the “2017 Expansion Space”, a portion of the Existing Space on the fifth floor of the Building containing approximately 12,898 rentable square feet as shown on Exhibit 1 to Amendment Three is referred to herein as the “2019 Expansion Space” and the remaining approximately 27,830 rentable square feet is referred to herein as the “Original Space.”  Capitalized terms used in this Amendment Four shall have the meanings given to them in the Lease, except as provided in this Amendment Four.
B.    Landlord and Tenant desire to, among other things, expand the Premises to include that certain space on the south side of the first floor of the Building containing approximately 12,194 rentable square feet as shown on Exhibit 1 attached hereto (the “First Floor South Expansion Space”), such that upon the inclusion of the First Floor South Expansion Space within the Premises, the Premises shall consist of 54,007 rentable square feet, all in accordance with the terms and conditions set forth in this Amendment Four.

AGREEMENT
In consideration of the mutual covenants and conditions contained herein and for other good and valuable consideration, Landlord and Tenant agree as follows:
1.Amendment of Lease.
A.First Floor South Expansion Space.  The First Floor South Expansion Space shall be delivered by Landlord to Tenant broom clean with existing FF&E removed and with the Landlord’s Work (as defined below) Substantially Completed, but otherwise in the same condition as exists on the date this Amendment Four is signed by Landlord and Tenant.  “Substantially Completed” means the Work has been completed, subject only to the completion by Landlord of any “punch list” items that do not materially interfere with Tenant’s use and enjoyment of the Premises.  On the date the First Floor South Expansion Space has been delivered to and accepted by Tenant as having the Landlord’s Work Substantially Completed and being in the condition required under this Amendment Four (the “First Floor South Expansion Space Commencement Date”): (i) the Premises (and definition of “Premises”) shall be expanded to include the First Floor South Expansion Space, and (ii) Tenant shall lease the First Floor South Expansion Space from Landlord on the same terms and conditions set forth in the Lease, except as modified by this Amendment Four.  Failure of Tenant to identify any Landlord’s Work that has not been Substantially Completed or failure of the First Floor South Expansion Space to meet such required condition and notify the Landlord of same within two (2) business days of delivery shall be deemed acceptance of same regardless of whether Tenant has occupied the Expansion Space.  Provided the First Floor South Landlord Work Completion Date has occurred no later than January 15, 2020, the “First Floor South Expansion Space Rent Commencement Date” shall be February 1, 2020. The Free Rent Period (as defined below) shall commences on the First Floor South Expansion Space Rent Commencement Date.  “First Floor South Landlord Work Completion Date” means the date upon which the Landlord’s Work has been Substantially Completed and the First Floor South Expansion Premises delivered to Tenant  “Landlord’s Work” means demolishing existing server room and interior walls 

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of the First Floor South Expansion Space except for the three offices in the back of the First Floor South Expansion Space.  .  For avoidance of doubt, painting and carpeting the First Floor South Expansion Space and installing ceiling tile and lighting in the First Floor South Expansion Space is NOT included as part of Landlord’s Work.  If the First Floor South Landlord Work Completion Date has not occurred on or before January 15, 2020, Landlord shall have no liability to Tenant for delay in delivering possession of the First Floor South Expansion Space with Landlord’s Work Substantially Complete, but the First Floor South Expansion Space Rent Commencement Date shall be delayed one day for each day that Landlord is delayed past January 15, 2020 until the First Floor South Landlord Work Completion Date; provided, further, Tenant shall receive one (1) day of abated rent for the First Floor South Expansion Space for each day after March 15, 2020 (which date shall be delayed one day for each day that Landlord is delayed in Substantially Completing Landlord’s Work due to a force majeure event or due to a delay caused by Tenant) until the date that is the First Floor South Landlord Work Completion Date.  Upon and subject to the First Floor South Expansion Space being delivered to Tenant with Landlord’s Work  Substantially  Complete, the First Floor South Expansion Space shall be deemed delivered to Tenant in “as is” condition and without any representation or warranty.  Tenant’s occupancy of the First Floor South Expansion Space shall constitute conclusive acceptance of the amount of square footage stated herein, and of the condition of the First Floor South Expansion Space.  If requested by Landlord, Tenant shall confirm in writing the date of the First Floor South Expansion Space Rent Commencement Date.
B.Tenant Early Access Rights.  Tenant shall have early access to the First Floor South Expansion Space no later than November 15, 2019 for the purpose of the construction of tenant improvements (the approval and construction of such tenant improvements shall be in accordance with Section 9.2 (Alterations) of the Lease) and installation of Tenant’s furniture, fixtures and equipment. 
C.Improvement Allowance for First Floor South Expansion Space.  As an inducement to enter into this Amendment Four, Landlord shall provide Tenant with an “Improvement Allowance” in amount of $308,880 ($20.00 per rentable square foot of the First Floor South Expansion Space plus $65,000 in lieu of Landlord installing ceiling tiles and lighting).  The Improvement Allowance shall be used to pay for the cost of improvements to the First Floor South Expansion Space (the “First Floor South Expansion Space Tenant Improvements”).  The scope and plans of the First Floor South Expansion Space Tenant Improvements shall be subject to review and approval by Landlord prior to commencement of any work in accordance with the alterations provisions of the Lease (such approval not to be unreasonably delayed or withheld unless otherwise expressly provided in Section 9.2 (Alterations) of the Lease).  The First Floor South Expansion Space Improvement Allowance shall be paid to Tenant within thirty (30) days after all of the following requirements have been satisfied (as determined by Landlord in its reasonable business judgment):  (a) Landlord has received a detailed breakdown of the cost of the First Floor South Expansion Space Tenant Improvements, (b) if required, a certificate of occupancy has been issued by the appropriate governmental authority indicating that Tenant’s construction work was performed in accordance with local and state codes and that the Premises are acceptable for occupancy, which work must be completed in accordance with the plans approved by Landlord, (c) Landlord has received an affidavit from Tenant’s general contractor stating that all contractors, subcontractors, materialmen, suppliers, architects, engineers, and all other persons performing work or supplying materials and/or services on or about the Premises in connection with the First Floor South Expansion Space Tenant Improvements have been paid in full and have waived all liens and claims arising as a result of such work, (d) Landlord has received approved notarized original lien waivers for all contractors, subcontractors, materialmen, suppliers and all other persons performing work or supplying materials on or about the Premises in connection with the First Floor South Expansion Space Tenant Improvements, and (e) Tenant is not in arrears with regard to any Rent or other charges which may be due or owing or otherwise in default of the Lease.  If Tenant has not requested disbursement of the entire First Floor South Expansion Space Improvement Allowance on or before the date that is twelve (12) months after the 2019 Expansion Space Commencement Date (the “First Floor South Expansion Space Improvement Allowance Expiration Date”), Tenant shall be entitled to use the unused portion of the Improvement Allowance to pay (or be reimbursed) for the cost of Tenant’s furniture, fixtures, and equipment for the First Floor South Expansion Space Expansion Space or as an offset against Rent owing under the Lease.  Tenant’s shall notify Landlord of the manner in which Tenant elects to use the unapplied portion of the Improvement Allowance, and, if Tenant elects to use it to pay or the cost of furniture, fixtures, and equipment, Landlord shall reimburse Tenant for such costs, not to exceed the unused portion of the First Floor South Expansion Space Improvement Allowance, within thirty (30) days following Tenant’s presentation to Landlord of invoices for such furniture, fixtures, and equipment.  

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D.Basic Monthly Rent.  Until the First Floor South Expansion Space Rent Commencement Date, Tenant shall continue to pay all rent with respect to the Existing Space as set forth in Amendment Three.  As of the First Floor South Expansion Space Rent Commencement Date, Tenant shall pay to Landlord Basic Monthly Rent with respect to the Premises (prorated on a per diem basis for any partial calendar month) in accordance with the figure corresponding to the relevant time period set forth in the following table (which table hereby replaces the table in Section 1.2 of the Lease):
	
							
	Period 
	2017 Expansion Space Annual Basic Monthly Rent per RSF
	2017 Expansion Space Monthly Installment of Basic Monthly Rent
	Original Space, 2019 Expansion Space and First Floor South Expansion Space Annual Basic Monthly Rent per RSF
	Original Space Monthly Installment of Basic Monthly Rent
	2019
Expansion Space Monthly Installment of Basic Monthly Rent
	First Floor South Expansion Space Monthly Installment of Basic Monthly Rent

	1/1/20 - 1/31/20
	$21.22
	$1,918.46
	$23.34
	$54,128.89
	$25,086.40
	NA

	2/1/20 - 5/15/20
	$21.22
	$1,918.46
	$23.34
	$54,128.89
	$25,086.40
	Abated*

	5/16/20 - 12/31/20
	$21.22
	$1,918.46
	$23.34
	$54,128.89
	$25,086.40
	$23,717.33

	1/1/21 - 12/31/21
	$21.85
	$1,976.01
	$24.04
	$55,752.75
	$25,838.99
	$24,428.65

	1/1/22 - 12/31/22
	$22.51
	$2,035.30
	$24.76
	$57,425.34
	$26,614.16
	$25,160.29

	1/1/23 - 12/31/23 
	$23.19
	$2,096.35
	$25.50
	$59,148.10
	$27,412.58
	$25,912.25

	1/1/24 - 12/31/24 
	$23.88
	$2,159.24
	$26.27
	$60,922.54
	$28,234.96
	$26,694.70

	1/1/25 - 12/31/25
	$24.60
	$2,224.02
	$27.06
	$62,750.22
	$29,082.01
	$27,497.47

	1/1/26 - 10/31/26 
	$25.34
	$2,290.74
	$27.87
	$64,632.73
	$29,954.47
	$28,320.57

*The table above assumes a First Floor South Expansion Space Rent Commencement Date of February 1, 2020.  If the First Floor South Expansion Space Rent Commencement Date is after February 1, 2020, the table set forth above shall be revised to reflect the actual First Floor South Expansion Space Rent Commencement Date and confirmed by the Parties in a confirmation of lease terms.  Regardless of the First Floor South Expansion Space Rent Commencement Date, Basic Monthly Rent with respect to the First Floor South Expansion Space only shall be abated for the first three and one half (3.5) months following the First Floor South Expansion Space Rent Commencement Date (the “Free Rent Period”). If the Lease is terminated during such Free Rent Period, Tenant shall not be entitled to any such rent abatement after the date of termination nor shall Tenant be entitled to assert any right to rent abatement after such termination against any sums due Landlord.  The rent abatement granted under this Section is solely for the benefit of the entity executing this Lease as tenant and is not transferable to any assignee or subtenant.  In the event of a default by Tenant under the terms of the Lease which results in early termination pursuant to the provisions hereof, then as a part of the recovery to which Landlord shall be entitled shall be included a portion of such rent which was abated under the provisions of this Section, which portion shall be determined by multiplying the total amount of rent which was abated under this Section by a fraction, the numerator of which is the number of months remaining in the term of the Lease at the time of such default and the denominator of which is the number of months during the term of the Lease after the First Floor South Expansion Space Rent Commencement Date that Tenant is obligated to pay Basic Monthly Rent.

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E.Tenant’s Share.  As of the First Floor South Expansion Space Commencement Date, Tenant’s Percentage of Operating Expenses with respect to the entire Premises shall be 45.12%.  
F.Base Year.  Tenant’s Base Year for purposes of calculating Tenant’s Share of Operating Expenses with respect to the First Floor South Expansion Space shall be calendar year 2020.  Tenant’s Base Year with respect to the 2019 Expansion Space shall remain calendar year 2019.  Tenant’s Base Year with respect to the Original Space shall remain calendar year 2018. 
G.Early Termination Right.   Section 1C of Amendment Three is deleted in its entirety and is of no further force and effect.
H.Parking.  As of the First Floor South Expansion Space Commencement Date, Tenant shall have the right to use an additional 73 parking spaces (based on a ratio of 6.0 per 1,000 rentable square feet leased), unreserved and unassigned, pursuant to the applicable provisions of the Lease.
2.Tenant Representations.  Tenant represents and warrants that:
A.Due Authorization.  Tenant has full power and authority to enter into this Amendment Four without the consent of any other person or entity;
B.No Assignment.  Tenant has not assigned the Lease, or sublet the Premises;
C.No Default.  Tenant is not in default of the Lease and Tenant acknowledges that Landlord is not in default of the Lease; 
D.Binding Effect.  The Lease is binding on Tenant and is in full force and effect, and Tenant has no defenses to the enforcement of the Lease; and
E.Real Estate Brokers.  Except for Newmark Grubb ACRES/Newmark Cornish & Carey (“Tenant’s Broker”), there is no real estate broker or agent who is or may be entitled to any commission or finder’s fee in connection with the representation of Tenant in this Amendment Four and Tenant shall defend, indemnify and hold Landlord harmless from and against any and all third-party claims, demands, losses, liabilities, lawsuits, judgments, costs and expenses (“Claims”) (including without limitation, attorneys’ fees and costs incurred by Tenant defending or settling such Claims) with respect to any leasing commission or equivalent compensation alleged to be owing on account of such Tenant’s discussions, negotiations and/or dealings with any real estate broker or agent other than Tenant’s Broker. 
3.Landlord Representations.  Landlord represents and warrants that:
A.Due Authorization.  Landlord has full power and authority to enter into this Amendment Four without the consent of any other person or entity;
B.No Default.  Landlord is not in default of the Lease and Landlord acknowledges that Tenant is not in default of the Lease; and

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C.Binding Effect.  The Lease is binding on Landlord and is in full force and effect, and Landlord has no defenses to the enforcement of the Lease.
4.General Provisions
A.Attorneys' Fees.  If a suit or an action is instituted in connection with any dispute arising out of this Amendment Four or the Lease or to enforce any rights hereunder or thereunder, the prevailing party shall be entitled to recover such amount as the court may adjudge reasonable as attorneys' and paralegals' fees incurred in connection with the preparation for and the participation in any legal proceedings (including, without limitation, any arbitration proceedings or court proceedings, whether at trial or on any appeal or review), in addition to all other costs or damages allowed.
B.Counterparts; Facsimile and Scanned Email Signatures.  This Amendment Four may be executed in counterparts and when each party has signed and delivered at least one such executed counterpart to the other party, then each such counterpart shall be deemed an original, and, when taken together with the other signed counterpart, shall constitute one agreement which shall be binding upon and effective as to all signatory parties.  Facsimile and scanned e‐mail signatures shall operate as originals for all purposes under this Amendment Four.
C.Effect of Amendment.  The Lease is unmodified except as expressly set forth in this Amendment Four.  Except for the modifications to the Lease set forth in this Amendment Four, the Lease remains in full force and effect.  To the extent any provision of the Lease conflicts with or is in any way inconsistent with this Amendment Four, the Lease is deemed to conform to the terms and provisions of this Amendment Four.
D.Binding Effect.  The provisions of this Amendment Four shall be binding upon and inure to the benefit of the parties and their respective successors and assigns. No amendment, modification or supplement to this Amendment Four shall be binding upon the parties unless in writing and executed by Landlord and Tenant.
E.Integration.  This Amendment Four contains the entire agreement and understanding of the parties with respect to the matters described herein, and supersedes all prior and contemporaneous agreements between them with respect to such matters.
F.Submission of Amendment Four.  The submission of this Amendment Four for examination and negotiation does not constitute an offer to execute this Amendment Four by Landlord.  This Amendment Four shall become effective and binding only upon execution and delivery hereof by Landlord and Tenant.  No act or omission of any officer, employee or agent of Landlord or Tenant shall alter, change or modify any of the provisions hereof.
[Signatures on following page.]

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IN WITNESS WHEREOF, Landlord and Tenant have executed this Amendment Four as of the date last signed below.
TENANT:

EHEALTHINSURANCE SERVICES, INC.,
a Delaware corporation

		
	By:
	 /s/ David K. Francis                    

		
	Name:
	  David K. Francis                        

		
	Title:
	    COO                                        

		
	Date Signed:
	  _11/14/2019_______________

LANDLORD:

SLC LAKE POINTE EQUITIES LLC, 
a Delaware limited liability company

By:       SLC Lake Pointe SPE LLC,  
a Delaware limited liability company, its Sole Member

By:       SLC Lake Pointe Holdings LLC, 
a Delaware limited liability company, its Managing Member 

		
	By:      
	/s/ Matthew J. Felton________________

Matthew J. Felton, Managing Member

                    Date Signed:  ___11/14/2019_____         ______

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EXHIBIT 1
First Floor South Expansion Space

7Exhibit 10.1

 

TESSCO TECHNOLOGIES INCORPORATED

STOCK OPTION

 

THIS STOCK OPTION (this “Option”) is granted by TESSCO Technologies Incorporated, a Delaware corporation (the “Company”), to Sandip Mukerjee (the “Optionee”) effective as of November 15, 2019 (the “Grant Date”).

 

RECITALS

 

A.                                    The Optionee commenced his service as a Key Employee of the Company on August 20, 2019 (the “Start Date”), pursuant to the terms of an Employment Agreement dated August 19, 2019, by and between the Optionee and the Company (as amended from time to time, the “Employment Agreement”). In order to provide the Optionee additional incentive to further the Company’s growth, development, and financial success, and as provided for under the terms of the Employment Agreement, 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 Two Hundred Fifty Thousand (250,000) shares of the Company’s Common Stock, par value $.01 per share (the “Common Stock”), at an exercise price of $11.52 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 November 15, 2025 (the “Expiration Date”), up to Two Hundred Fifty Thousand (250,000) 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 with respect to a stated number of Option Shares on each of the dates set forth below (each a “Vesting Date”), subject further to  Optionee’s Continuous Service through each such Vesting Date:

 

 

(a)                                 On November 30, 2020, for Eighty Thousand Three Hundred Eight (80,308) Option Shares; and

 

(b)                                 On the last day of December 2020 and continuing on the last day of each of the following Thirty Two (32) successive calendar months thereafter, a pro rata portion of the remaining One Hundred Sixty Nine Thousand Six Hundred Ninety Two (169,692) Option Shares (i.e., or approximately Five Thousand One Hundred Forty Two (5,142) Option Shares per month), such that this Option will be fully vested for all Two Hundred Fifty Thousand (250,000) Option Shares on the last day of August 2024.

 

Except as may otherwise be expressly provided herein, there shall be no proportionate or partial vesting in 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.

 

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

 

1.4.                            Termination Without Cause or for Good Reason.  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, then 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 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 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 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

 

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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.

 

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 in connection therewith or within a period of 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 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 expired or terminated for any reason, including at the Expiration Date) 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 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 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 Change in Control Notice for any or no reason), and (ii) as provided in the Change in Control Notice, and as a condition to acceleration as contemplated by (i) above, 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 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

 

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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, 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

 

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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) 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.  “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).

 

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 (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

 

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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 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 (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.

 

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.

 

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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 Agreement.

 

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.

 

[Balance of this page intentionally left blank]

 

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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)
    
	
 
    	
 
    	
 
    	
Aric   Spitulnik
    
	
 
    	
 
    	
 
    	
Senior   Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
OPTIONEE:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Sandip   Mukerjee
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
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 as of November 15, 2019 to purchase shares of the Common Stock of TESSCO Technologies Incorporated, a Delaware corporation (the “Company”) at a price of $11.52 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:

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