On December 8, 2022, Tessco Technologies Incorporated and its operating subsidiaries and Wells Fargo Bank, National Association entered into Amendment No. 4 to Credit Agreement (“Amendment No. 4”).

Pursuant to, and subject to the terms and conditions of Amendment No. 4, including the Amended and Restated Credit Agreement included as a part thereof (the “Amended and Restated Credit Agreement”), the Commitment under the pre-existing Revolving Credit Facility was increased from $80 million to $105 million, among other things. Availability is determined in accordance with a Borrowing Base formula and is subject to an Availability Block of $10 million.

As a result, the outstanding balance cannot exceed $95 million at any time. The Maturity Date has been extended to April 29, 2025. Other than as described here, the material terms of the Credit Agreement as previously amended, remain largely unchanged.

Capitalized terms used in this and the following paragraphs and not defined have the meanings ascribed in the Amended and Restated Credit Agreement. In addition to the increased Commitment, the Amended and Restated Credit Agreement provides for a change from a LIBOR-based primary rate to one based on SOFR, as well as change to the methodology for determining the Applicable Margin and the imposition of a $42 million Inventory Cap as a Borrowing Base component. Amendment No.

4 also changes the financial predicates for applicability of the Minimum Fixed Charge Coverage Ratio and Cash Dominion Period, taking into consideration the increase in Commitment. In addition, the Company agreed that in no event will the mortgage on its Hunt Valley, Maryland property be released prior to December 31, 2023, and only if the Fixed Charge Coverage Ratio thereafter is at least 1.10 to 1.00 for six consecutive months and Excess Availability is at least $22.5 million for thirty consecutive days. Going forward, Borrowings accrue interest from the applicable borrowing date: (A) if a SOFR Rate Loan, (i) at a per annum rate equal to the SOFR Rate plus a SOFR Adjustment of 10 basis points (to remain pricing neutral for transition from LIBOR to SOFR) plus the SOFR Rate Margin of 2.25% until the later of December 31, 2023 and meeting a Fixed Charge Coverage Ratio for the trailing twelve months of not less than 1.0 to 1.0, and (ii) thereafter, at a per annum rate equal to the SOFR Rate plus a SOFR Adjustment of 10 basis points (to remain pricing neutral for transition from LIBOR to SOFR) plus the SOFR Rate Margin of 1.75% if Excess Availability is greater than 30%, 2.00% if Excess Availability is at least 20% but less than or equal to 30%, and 2.25% if Excess Availability is less than 20% or (B) if a Base Rate Loan, at a per annum rate equal to the Base Rate plus the Base Rate Margin of 1.25% until the later of December 31, 2023 and meeting a Fixed Charge Coverage Ratio for the trailing twelve months of not less than 1.0 to 1.0, and (ii) thereafter, at a per annum rate equal to the Base Rate plus the Base Rate Margin of 0.75% if Excess Availability is greater than 30%, of 1.00% if Excess Availability is at least 20% but less than or equal to 30%, and of 1.25% if Excess Availability is less than 20%.

Excess Availability for these purposes is determined without giving effect to the $10 million Availability Block.