Document:

Exhibit 10.1

Exhibit 10.1
CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN 
THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN 
OMITTED AND FILED SEPARATELY WITH THE 
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO 
RULE 24B-2 OF THE SECURITIES EXCHANGE 
ACT OF 1934, AS AMENDED
	
												
	 	AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT
	1. Contract ID Code
Cost Plus Fixed Fee
	Page  1  Of  18

	 	2. Amendment/Modification No.
	3. Effective Date
	4. Requisition/Purchase Req No.
	5. Project No. (If applicable)

	 	PZ0003
	03 Apr 2013
	SEE SCHEDULE
	 

	 	6. Issued By
	Code
	W15P7T
	7. Administered By (If other than Item 6)
	Code
	S2101A

	 	ARMY CONTRACTING CMD-APG
JEFFREY SCOTT
6001 COMBAT DR, APG, MD 21005-1846

EMAIL: JEFF.SCOTT2@US.ARMY.MIL

	DCMA BALTIMORE
217 EAST REDWOOD STREET
SUITE 1800
BALTIMORE MD 21202-3375

	 
	 
	 	8. Name And Address Of Contractor (No., Street, City, County, State and Zip Code)
	
	9A. Amendment Of Solicitation No.

	 	COMTECH MOBILE DATACOM CORPORATION
20430 CENTURY BLVD
GERMANTOWN, MD 20874-1202

	 

	 	9B. Dated (See Item 11)

	 	
	10A. Modification Of Contract/Order No.

	 	 
	W15P7T-12-D-0015

	 	10B. Dated (See Item 13)

	 	Code  04NA3
	Facility Code
	2012MAR29

	 	11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS

 The above numbered solicitation is amended as set forth in item 14. The hour and date specified for receipt of Offers
 is extended,    is not extended.
Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended by one of the following methods:
(a) By completing items 8 and 15, and returning ____________ copies of the amendments: (b) By acknowledging receipt of this amendment on each copy of the offer submitted; or (c) By separate letter or telegram which includes a reference to the solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment you desire to change an offer already submitted, such change may be made by telegram or letter, provided each telegram or letter makes reference to the solicitation and this amendment, and is received prior to the opening hour and date specified.
	
							
	 	12. Accounting And Appropriation Data (If required)

	 	NO CHANGE TO OBLIGATION DATA

	 	13. THIS ITEM ONLY APPLIES TO MODIFICATIONS OF CONTRACTS/ORDERS
It Modifies The Contract/Order No. As Described In Item 14.

	 	
	A. This Change Order is Issued Pursuant To: 
The Contract/Order No. In Item 10A.
	The Changes Set Forth In Item 14 Are Made In

	 	
	B. The Above Numbered Contract/Order Is Modified To Reflect The Administrative Changes (such as changes in paying office, appropriation data, etc.) Set Forth In Item 14, Pursuant To The Authority of FAR 43.103(b).

	 	
	C. This Supplemental Agreement Is Entered Into Pursuant To Authority Of:

	 	                                                                                                                                      DFARS 252.217-7027

	 	
	D. Other (Specify type of modification and authority)

	 	E. IMPORTANT: Contractor     is not,    is required to sign this document and return _______________ copies to the Issuing Office.

	 	14. Description Of Amendment/Modification (Organized by UCF section headings, including solicitation/contract subject matter where feasible.)

	 	SEE SECOND PAGE FOR DESCRIPTION

	 
	 
	 	Except as provided herein, all terms and conditions of the document referenced in item 9A or 10A, as heretofore changed, remains unchanged and in full force and effect.

	 	15A. Name And Title Of Signer (Type or print)
	16A. Name And Title Of Contracting Officer (Type or print)

	 	BEN K. CLARK, CONTRACTS MANAGER
	TIFFANY BROWN
TIFFANY.BROWN14@US.ARMY.MIL (443)861-4935

	 	15B. Contractor/Offeror
	15C. Date Signed

3 APRIL 2013
	16B. United States Of America
	16C. Date Signed

03 APR 2013

	 	/s/ Ben K. Clark                                          
	By
	/s/ Tiffany Brown                             

	 	(Signature of person authorized to sign)
	 
	(Signature of Contracting Officer)

	
			
	NSN 7540-01-152-8070
	30-105-02
	STANDARD FORM 30 (REV. 10-83)

	PREVIOUS EDITIONS UNUSABLE
	 
	Prescribed by GSA FAR (48 CFR) 53.243

	
						
	CONTINUATION SHEET
	Reference No. of Document Being Continued
	 Page 2 of 18

	PIIN/SIIN
	W15P7T-12-D-0015
	MOD/AMD
	PZ0003

	Name of Offeror or Contractor:
	COMTECH MOBILE DATACOM CORPORATION

SECTION A - SUPPLEMENTAL INFORMATION

Buyer Name: JEFFREY SCOTT
Buyer Office Symbol/Telephone Number: CCAP-CCB/(443)861-4943
Type of Contract: Cost Plus Fixed Fee
Kind of Contract: Other
Type of Business: Large Business Performing in U.S.
Surveillance Criticality Designator: C
Contract Expiration Date: 2014MAR31

*** End of Narrative A0000 ***

The purpose of this modification PZ0003 is to definitize contract W15P7T-12-D-0015, in accordance with DFARS 252.217-7027, and to exercise the option on contract W15P7T-12-D-0015:

1. The total negotiated ceiling price for the contract is $43,628,797, which is separately identified by the base year and the option year:
	
				
	Base Year
	 

	 
	 

	NOC Services (CPFF):
	[*]
	

	Fixed Fee for NOC Services (4%):
	[*]
	

	Telehousing (FFP):
	[*]
	

	Profit for Telehousing (4%):
	[*]
	

	Intellectual Property License Fee :
	$
	10,000,000
	

	Total Base Year:
	$
	22,773,342
	

	 
	 

	Option Year 1
	 

	 
	 

	NOC Services (CPFF):
	[*]
	

	Fixed Fee for NOC Services (5.5%):
	[*]
	

	Telehousing (FFP):
	[*]
	

	Profit for Telehousing (5.5%):
	[*]
	

	Intellectual Property License Fee :
	$
	10,000,000
	

	Total Option Year:
	$
	20,855,455
	

2. The contract is a hybrid cost-plus-fixed-fee (CPFF)/firm-fixed-price (FFP) effort. NOC Services are performed on a CPFF basis. Telehousing and the Intellectual Property License Fee are FFP.

3. The ordering period for the base year is 01 April 2012 through 31 March 2013. The ordering period for the option year is 01 April 2013 through 31 March 2014.

4. The Contractor shall perform NOC Services, Engineering/Repair, and Telehousing Services in accordance with the Statement of Work (SOW). The SOW will be sent under separate cover. This three (3) month term shall be ordered through a delivery order against this contract. The funding details for the negotiated ceiling are as follows:
	
				
	Three (3) Month Term
	 

	 
	 

	NOC Services (CPFF):
	[*]
	

	Fixed Fee for NOC Services (5.5%):
	[*]
	

	Telehousing (FFP):
	[*]
	

	Profit for Telehousing (5.5%):
	[*]
	

	Intellectual Property License Fee :
	$
	2,500,000.00
	

	Total Option Year:
	$
	5,008,358.00
	

5. The Contractor shall perform NOC Services, Engineering/Repair, and Telehousing Services in accordance with the SOW. The SOW will be sent under separate cover. The nine (9) month term shall only be executed through delivery order when the provisions of FAR 17.207 are met. Funding is subject to availability during the nine (9) month term. The funding details for the negotiated ceiling are as follows:
	
		
	Nine (9) Month Term
	 

	 
	 

	NOC Services (CPFF):
	[*]

______________________________________________________
Note: Redacted portions have been marked with [*]. The redacted portions are subject to a request for confidential treatment that has been submitted to the Securities and Exchange Commission.

	
						
	CONTINUATION SHEET
	Reference No. of Document Being Continued
	 Page 3 of 18

	PIIN/SIIN
	W15P7T-12-D-0015
	MOD/AMD
	PZ0003

	Name of Offeror or Contractor:
	COMTECH MOBILE DATACOM CORPORATION

	
				
	Fixed Fee for NOC Services (5.5%):
	[*]
	

	Telehousing (FFP):
	[*]
	

	Profit for Telehousing (5.5%):
	[*]
	

	Intellectual Property License Fee :
	$
	7,500,000.00
	

	Total Option Year:
	$
	15,847,097.45
	

6. The Contractor shall not exceed the total amount obligated on each order without prior written authorization from the Procuring Contracting Officer.

7. EXCEPT AS STATED HEREIN, ALL OTHER TERMS AND CONDITIONS REMAIN IN FULL FORCE AND EFFECT.

*** END OF NARRATIVE A0003 ***

______________________________________________________
Note: Redacted portions have been marked with [*]. The redacted portions are subject to a request for confidential treatment that has been submitted to the Securities and Exchange Commission.

	
						
	CONTINUATION SHEET
	Reference No. of Document Being Continued
	 Page 4 of 18

	PIIN/SIIN
	W15P7T-12-D-0015
	MOD/AMD
	PZ0003

	Name of Offeror or Contractor:
	COMTECH MOBILE DATACOM CORPORATION

	
								
	ITEM NO
	SUPPLIES/SERVICES
	QUANTITY
	UNIT
	UNIT PRICE
	AMOUNT

	 
	SECTION B - SUPPLIES OR SERVICES AND PRICES/COSTS
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	0001
	INTELLECTUAL PROPERTY LICENSE FEE
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	0001AA
	INTELLECTUAL PROPERTY LICENSE FEE
	 
	 
	 
	$
	10,000,000.00
	

	 
	 
	 
	 
	 
	 

	 
	CLIN CONTRACT TYPE:
	 
	 
	 
	 

	 
	Firm Fixed Price
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	Inspection and Acceptance
	 
	 
	 
	 

	 
	INSPECTION: Origin          ACCEPTANCE: Origin
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	0002
	NOC SUPPORT, ENGINEERING & REPAIR SERVICES
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	0002AA
	NOC SUPPORT, ENGINEERING & REPAIR SERVICES
	 
	 
	 
	[*]
	

	 
	 
	 
	 
	 
	 

	 
	CLIN CONTRACT TYPE:
	 
	 
	 
	 

	 
	Cost Plus Fixed Fee
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	Inspection and Acceptance
	 
	 
	 
	 

	 
	INSPECTION: Destination          ACCEPTANCE: Destination
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	(Deleted narrative B001)
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	0003AA
	DELETED
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	0003AB
	DELETED
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	0003AC
	DELETED
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	0003AD
	DELETED
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	0004
	TELEHOUSING
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	0004AA
	TELEHOUSING
	 
	 
	 
	[*]
	

	 
	 
	 
	 
	 
	 

______________________________________________________
Note: Redacted portions have been marked with [*]. The redacted portions are subject to a request for confidential treatment that has been submitted to the Securities and Exchange Commission.

	
						
	CONTINUATION SHEET
	Reference No. of Document Being Continued
	 Page 5 of 18

	PIIN/SIIN
	W15P7T-12-D-0015
	MOD/AMD
	PZ0003

	Name of Offeror or Contractor:
	COMTECH MOBILE DATACOM CORPORATION

	
								
	ITEM NO
	SUPPLIES/SERVICES
	QUANTITY
	UNIT
	UNIT PRICE
	AMOUNT

	 
	CLIN CONTRACT TYPE:
	 
	 
	 
	 

	 
	Firm Fixed Price
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	Inspection and Acceptance
	 
	 
	 
	 

	 
	INSPECTION: Origin          ACCEPTANCE: Origin
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	1001
	IP FEE - OPT YR 1
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	The maximum orderable value for the Intellectual Property License Fee during the option year shall not exceed $10,000,000.
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	(End of narrative B003)
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	1001AA
	INTELLECTUAL PROPERTY LICENSE FEE- OPT YR 1
	 
	 
	 
	$
	2,500,000.00
	

	 
	 
	 
	 
	 
	 

	 
	CLIN CONTRACT TYPE:
	 
	 
	 
	 

	 
	Firm Fixed Price
	 
	 
	 
	 

	 
	GENERIC NAME DESCRIPTION: IP FEE - OPT YR 1
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	SLIN 1001AA provides funding in the amount of $2,500,000 for the Intellectual Property License Fee for a period of three months.
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	(End of narrative B002)
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	Inspection and Acceptance
	 
	 
	 
	 

	 
	INSPECTION: Origin          ACCEPTANCE: Origin
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	1001AB
	INTELLECTUAL PROPERTY LICENSE FEE- OPT YR 1
	 
	 
	 
	$
	7,500,000.00
	

	 
	 
	 
	 
	 
	 

	 
	CLIN CONTRACT TYPE:
	 
	 
	 
	 

	 
	Firm Fixed Price
	 
	 
	 
	 

	 
	GENERIC NAME DESCRIPTION: IP FEE - OPT YR 1
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	SLIN 1001AB provides funding in the amount of $7,500,000 for the Intellectual Property License Fee for a period of nine months.
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	Funding for the nine month period is subject to availability.
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	(End of narrative B001)
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	Inspection and Acceptance
	 
	 
	 
	 

	 
	INSPECTION: Origin          ACCEPTANCE: Origin
	 
	 
	 
	 

	
						
	CONTINUATION SHEET
	Reference No. of Document Being Continued
	 Page 6 of 18

	PIIN/SIIN
	W15P7T-12-D-0015
	MOD/AMD
	PZ0003

	Name of Offeror or Contractor:
	COMTECH MOBILE DATACOM CORPORATION

	
						
	ITEM NO
	SUPPLIES/SERVICES
	QUANTITY
	UNIT
	UNIT PRICE
	AMOUNT

	 
	 
	 
	 
	 
	 

	1002
	NOC SERVICES - OPT YEAR 1
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	The maximum orderable value for NOC Services during the option year shall not exceed [*].
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	SLIN 1002AA has been administratively canceled.
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	(End of narrative B002)
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	1002AB
	NOC SUPPT, ENGNRG & REPAIR SVCS - OPT YEAR 1
	 
	 
	 
	[*]

	 
	 
	 
	 
	 
	 

	 
	CLIN CONTRACT TYPE:
	 
	 
	 
	 

	 
	Cost Plus Fixed Fee
	 
	 
	 
	 

	 
	GENERIC NAME DESCRIPTION: NOC SERVICES - OPT YEAR 1
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	SLIN 1002AB provides funding in the amount of [*] for NOC Services for a period of three months.
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	(End of narrative B001)
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	Inspection and Acceptance
	 
	 
	 
	 

	 
	INSPECTION: Destination          ACCEPTANCE: Destination
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	1002AC
	NOC SUPPT, ENGRNG & REPAIR SVCS - OPT YEAR 1
	 
	 
	 
	[*]

	 
	 
	 
	 
	 
	 

	 
	CLIN CONTRACT TYPE:
	 
	 
	 
	 

	 
	Cost Plus Fixed Fee
	 
	 
	 
	 

	 
	GENERIC NAME DESCRIPTION: NOC SERVICES - OPT YEAR 1
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	SLIN 1002AC provides funding in the amount of [*] for NOC Services for a period of nine months.
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	Funding for the nine month period is subject to availability.
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	(End of narrative B001)
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	Inspection and Acceptance
	 
	 
	 
	 

	 
	INSPECTION: Origin          ACCEPTANCE: Origin
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	(Deleted narrative B001)
	 
	 
	 
	 

______________________________________________________
Note: Redacted portions have been marked with [*]. The redacted portions are subject to a request for confidential treatment that has been submitted to the Securities and Exchange Commission.

	
						
	CONTINUATION SHEET
	Reference No. of Document Being Continued
	 Page 7 of 18

	PIIN/SIIN
	W15P7T-12-D-0015
	MOD/AMD
	PZ0003

	Name of Offeror or Contractor:
	COMTECH MOBILE DATACOM CORPORATION

	
						
	ITEM NO
	SUPPLIES/SERVICES
	QUANTITY
	UNIT
	UNIT PRICE
	AMOUNT

	1003AA
	DELETED
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	1003AB
	DELETED
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	1003AC
	DELETED
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	1003AD
	DELETED
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	1004
	TELEHOUSING - OPTION YEAR 1
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	The maximum orderable value for Telehousing during the option year shall not exceed [*].
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	(End of narrative B003)
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	1004AA
	TELEHOUSING - OPTION YEAR 1
	 
	 
	 
	[*]

	 
	 
	 
	 
	 
	 

	 
	CLIN CONTRACT TYPE:
	 
	 
	 
	 

	 
	Firm Fixed Price
	 
	 
	 
	 

	 
	GENERIC NAME DESCRIPTION: TELEHOUSING - OPTION YEAR 1
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	SLIN 1004AA provides funding in the amount of [*] for Telehousing for a period of three months.
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	(End of narrative B002)
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	Inspection and Acceptance
	 
	 
	 
	 

	 
	INSPECTION: Origin          ACCEPTANCE: Origin
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	1004AB
	TELEHOUSING - OPTION YEAR 1
	 
	 
	 
	[*]

	 
	 
	 
	 
	 
	 

	 
	CLIN CONTRACT TYPE:
	 
	 
	 
	 

	 
	Firm Fixed Price
	 
	 
	 
	 

	 
	GENERIC NAME DESCRIPTION: TELEHOUSING - OPTION YEAR 1
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	SLIN 1004AB provides funding in the amount of [*] for Telehousing for a period of nine months.
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	Funding for the nine month period is subject to 
	 
	 
	 
	 

______________________________________________________
Note: Redacted portions have been marked with [*]. The redacted portions are subject to a request for confidential treatment that has been submitted to the Securities and Exchange Commission.

	
						
	CONTINUATION SHEET
	Reference No. of Document Being Continued
	 Page 8 of 18

	PIIN/SIIN
	W15P7T-12-D-0015
	MOD/AMD
	PZ0003

	Name of Offeror or Contractor:
	COMTECH MOBILE DATACOM CORPORATION

	
						
	ITEM NO
	SUPPLIES/SERVICES
	QUANTITY
	UNIT
	UNIT PRICE
	AMOUNT

	 
	availability.

	 
	 
	 
	 

	 
	(End of narrative B001)
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	Inspection and Acceptance
	 
	 
	 
	 

	 
	INSPECTION: Origin          ACCEPTANCE: Origin
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	2001AA
	DELETED
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	2001AA
	DELETED
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	(Deleted narrative B001)
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	2003AA
	DELETED
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	2003AB
	DELETED
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	2003AC
	DELETED
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	2003AD
	DELETED
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	2004AA
	DELETED
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	
						
	CONTINUATION SHEET
	Reference No. of Document Being Continued
	 Page 9 of 18

	PIIN/SIIN
	W15P7T-12-D-0015
	MOD/AMD
	PZ0003

	Name of Offeror or Contractor:
	COMTECH MOBILE DATACOM CORPORATION

SECTION G - CONTRACT ADMINISTRATION DATA

	
										
	 
	 
	 
	Status
	 
	Regulatory Cite
	 
	Title
	 
	Date

	 
	G-1
	 
	DELETED
	 
	52.7027
	 
	PLACE OF PERFORMANCE AND SHIPPING POINT
	 
	DEC/1987

	
						
	CONTINUATION SHEET
	Reference No. of Document Being Continued
	 Page 10 of 18

	PIIN/SIIN
	W15P7T-12-D-0015
	MOD/AMD
	PZ0003

	Name of Offeror or Contractor:
	COMTECH MOBILE DATACOM CORPORATION

SECTION H - SPECIAL CONTRACT REQUIREMENTS

COMTECH SOFTWARE LICENSE AGREEMENT AMENDMENT

The Government's use of Comtech commercial software deliverables is governed by the terms and conditions of the attached Comtech commercial Software License Agreement (and License Amendment), appended hereto as Attachments 0003 and 0007, respectively.

***  END OF NARRATIVE H0002  ***
	
										
	 
	 
	 
	Status
	 
	Regulatory Cite
	 
	Title
	 
	Date

	 
	H-1
	 
	CHANGED
	 
	5152.216-4902
	 
	ESTIMATED COST, FIXED FEE, SUM ALLOTTED
	 
	OCT/2012

	 
	 
	 
	 
	 
	ACC-APG
	 
	 
	 
	 

ESTIMATED COST, FIXED FEE, SUM ALLOTTED (Oct 2012)
5152.216-4902 ACC-APG

(a) Estimated Cost: The estimated cost of the contractor's performance hereunder, exclusive of the fixed fee, is [*] which amount is based upon data on file in the office of the Contracting Officer.  This sum may be increased from time to time by the Government solely at its discretion.  Upon the making of any such increase, the Contracting Officer shall notify the contractor in writing thereof.

(b) Fixed Fee: In addition to the estimated cost, the Government shall pay the contractor a fixed fee of [*] for the performance of this contract. Subject to the withholding provided for in the clause of this contract entitled 'Fixed Fee', and unless the Contracting Officer determines that the contractor's performance is unsatisfactory, this fixed fee may be paid, as it accrues in monthly installments, in amounts which, when added to all previous payments on account of the fixed fee, bear the same proportion to the total fixed fee as the sum of the payments made and due on account of all allowable cost bear to the total estimated cost, or where appropriate, such payments of fixed fee will be based upon the percentage of completion of the work as determined from estimate made or approved by the Contracting Officer.

(c) Sum Allotted: There has been allotted for this contract, inclusive of the fixed fee, the total sum of [*].  Being [*] on account of allowable cost and [*] on account of fixed fee.

______________________________________________________
Note: Redacted portions have been marked with [*]. The redacted portions are subject to a request for confidential treatment that has been submitted to the Securities and Exchange Commission.

	
						
	CONTINUATION SHEET
	Reference No. of Document Being Continued
	 Page 11 of 18

	PIIN/SIIN
	W15P7T-12-D-0015
	MOD/AMD
	PZ0003

	Name of Offeror or Contractor:
	COMTECH MOBILE DATACOM CORPORATION

SECTION I - CONTRACT CLAUSES
	
								
	 
	Status
	 
	Regulatory Cite
	 
	Title
	 
	Date

	I-1
	ADDED
	 
	52.203-13
	 
	CONTRACTOR CODE OF BUSINESS ETHICS AND CONDUCT
	 
	APR/2010

	I-2
	ADDED
	 
	52.204-9
	 
	PERSONAL IDENTITY VERIFICATION OF CONTRACTOR PERSONNEL
	 
	JAN/2011

	I-3
	ADDED
	 
	52.204-13
	 
	CENTRAL CONTRACTOR REGISTRATION MAINTENANCE
	 
	DEC/2012

	I-4
	ADDED
	 
	52.215-15
	 
	PENSION ADJUSTMENTS AND ASSET REVERSIONS
	 
	OCT/2010

	I-5
	ADDED
	 
	52.215-17
	 
	WAIVER OF FACILITIES CAPITAL COST OF MONEY
	 
	OCT/1997

	I-6
	ADDED
	 
	52.215-18
	 
	REVERSION OR ADJUSTMENT OF PLANS FOR POSTRETIREMENT BENEFITS (PRB) OTHER THAN PENSIONS
	 
	JUL/2005

	I-7
	ADDED
	 
	52.222-3
	 
	CONVICT LABOR
	 
	JUN/2003

	I-8
	ADDED
	 
	52.222-37
	 
	EMPLOYMENT REPORTS ON VETERANS
	 
	SEP/2010

	I-9
	ADDED
	 
	52.222-40
	 
	NOTIFICATION OF EMPLOYEE RIGHTS UNDER THE NATIONAL LABOR RELATIONS ACT
	 
	DEC/2010

	I-10
	ADDED
	 
	52.222-51
	 
	EXEMPTION FROM APPLICATION OF THE SERVICE CONTRACT ACT TO CONTRACTS FOR MAINTENANCE, CALIBRATION, OR REPAIR OF CERTAIN EQUIPMENT--REQUIREMENTS
	 
	NOV/2007

	I-11
	ADDED
	 
	52.222-54
	 
	EMPLOYMENT ELIGIBILITY VERIFICATION
	 
	JUL/2012

	I-12
	ADDED
	 
	52.223-5
	 
	POLLUTION PREVENTION AND RIGHT-TO-KNOW INFORMATION
	 
	MAY/2011

	I-13
	ADDED
	 
	52.228-7
	 
	INSURANCE--LIABILITY TO THIRD PERSONS
	 
	MAR/1996

	I-14
	ADDED
	 
	52.229-6
	 
	TAXES--FOREIGN FIXED-PRICE CONTRACTS
	 
	FEB/2013

	I-15
	ADDED
	 
	52.232-18
	 
	AVAILABILITY OF FUNDS
	 
	APR/1984

	I-16
	ADDED
	 
	52.237-2
	 
	PROTECTION OF GOVERNMENT BUILDINGS, EQUIPMENT, AND VEGETATION
	 
	APR/1984

	I-17
	ADDED
	 
	52.242-1
	 
	NOTICE OF INTENT OF DISALLOW COSTS
	 
	APR/1984

	I-18
	ADDED
	 
	52.242-3
	 
	PENALTIES FOR UNALLOWABLE COSTS
	 
	MAY/2001

	I-19
	ADDED
	 
	52.247-63
	 
	PREFERENCE FOR U.S.-FLAG AIR CARRIERS
	 
	JUN/2003

	I-20
	ADDED
	 
	52.253-1
	 
	COMPUTER GENERATED FORMS
	 
	JAN/1991

	I-21
	ADDED
	 
	252.201-7000
	 
	CONTRACTING OFFICER'S REPRESENTATIVE
	 
	DEC/1991

	I-22
	ADDED
	 
	252.203-7000
	 
	REQUIREMENTS RELATING TO COMPENSATION OF FORMER DOD OFFICIALS
	 
	SEP/2011

	I-23
	ADDED
	 
	252.204-7004
	 
	ALTERNATE A, CENTRAL CONTRACTOR REGISTRATION
	 
	FEB/2013

	I-24
	ADDED
	 
	252.204-7008
	 
	EXPORT-CONTROLLED ITEMS
	 
	APR/2010

	I-25
	ADDED
	 
	252.209-7004
	 
	SUBCONTRACTING WITH FIRMS THAT ARE OWNED OR CONTROLLED BY THE GOVERNMENT OF A TERRORIST COUNTRY
	 
	DEC/2006

	I-26
	ADDED
	 
	252.223-7006
	 
	PROHIBITION ON STORAGE AND DISPOSAL OF TOXIC AND HAZARDOUS MATERIALS
	 
	APR/2012

	I-27
	ADDED
	 
	252.225-7012
	 
	PREFERENCE FOR CERTAIN DOMESTIC COMMODITIES
	 
	FEB/2013

	I-28
	ADDED
	 
	252.226-7001
	 
	UTILIZATION OF INDIAN ORGANIZATIONS, INDIAN-OWNED ECONOMIC ENTERPRISES, AND NATIVE HAWAIIAN SMALL BUSINESS CONCERNS
	 
	SEP/2004

	I-29
	ADDED
	 
	252.231-7000
	 
	SUPPLEMENTAL COST PRINCIPLES
	 
	DEC/1991

	I-30
	CHANGED
	 
	252.232-7003
	 
	ELECTRONIC SUBMISSION OF PAYMENT REQUESTS AND RECEIVING REPORTS
	 
	JUN/2012

	I-31
	ADDED
	 
	252.232-7010
	 
	LEVIES ON CONTRACT PAYMENTS
	 
	DEC/2006

	I-32
	ADDED
	 
	252.237-7010
	 
	PROHIBITION ON INTERROGATION OF DETAINEES BY CONTRACTOR PERSONNEL
	 
	NOV/2010

	I-33
	ADDED
	 
	252.242-7006
	 
	ACCOUNTING SYSTEM ADMINISTRATION
	 
	FEB/2012

	I-34
	ADDED
	 
	252.243-7002
	 
	REQUESTS FOR EQUITABLE ADJUSTMENT
	 
	DEC/2012

	I-35
	ADDED
	 
	252.244-7001
	 
	CONTRACTOR PURCHASING SYSTEM ADMINISTRATION
	 
	JUN/2012

	I-36
	ADDED
	 
	252.247-7023
	 
	TRANSPORTATION OF SUPPLIES BY SEA
	 
	MAY/2002

	 
	 
	 
	 
	 
	 
	 
	 

	I-37
	CHANGED
	 
	252.216-7006
	 
	ORDERING
	 
	MAY/2011

(a) Any supplies and services to be furnished under this contract shall be ordered by issuance of delivery orders or task orders by the individuals or activities designated in the contract schedule. Such orders may be issued from 01 April 2012 through 31 March 2014.

(b) All delivery orders or task orders are subject to the terms and conditions of this contract. In the event of conflict between a delivery order or task order and this contract, the contract shall control.

(c) (1) If issued electronically, the order is considered "issued" when a copy has been posted to the Electronic Document Access system,
and notice has been sent to the Contractor. 

(2) If mailed or transmitted by facsimile, a delivery order or task order is considered "issued" when the Government deposits the
order in the mail or transmits by facsimile. Mailing includes transmittal by U.S. mail or private delivery services.

(3) Orders may be issued orally only if authorized in the schedule.	
								
	I-38
	CHANGED
	 
	52.244-2
	 
	SUBCONTRACTS
	 
	OCT/2010

	
						
	CONTINUATION SHEET
	Reference No. of Document Being Continued
	 Page 12 of 18

	PIIN/SIIN
	W15P7T-12-D-0015
	MOD/AMD
	PZ0003

	Name of Offeror or Contractor:
	COMTECH MOBILE DATACOM CORPORATION

(a) Definitions. As used in this clause

Approved purchasing system means a Contractors purchasing system that has been reviewed and approved in accordance with Part 44 of the Federal Acquisition Regulation (FAR)

Consent to subcontract means the Contracting Officers written consent for the Contractor to enter into a particular subcontract.

Subcontract means any contract, as defined in FAR Subpart 2.1, entered into by a subcontractor to furnish supplies or services for performance of the prime contract or a subcontract. It includes, but is not limited to, purchase orders, and changes and modifications to purchase orders.

(b) When this clause is included in a fixed-price type contract, consent to subcontract is required only on unpriced contract actions (including unpriced modifications or unpriced delivery orders), and only if required in accordance with paragraph (c) or (d) or this clause.

(c) If the contractor does not have an approved purchasing system, consent to subcontract is required for any subcontract that--

(1) Is of the cost-reimbursement, time-and-materials, or labor-hour type; or

(2) Is fixed-price and exceeds

(i) For a contract awarded by the Department of Defense, the Coast Guard, or the national Aeronautics and Space Administration, the greater of the simplified acquisition threshold or 5 percent of the total estimated cost of the contract; or

(ii) For contracts awarded by a civilian agency other that the Coast Guard and the National Aeronautics and Space Administration, either the simplified acquisition threshold or 5 percent of the total estimated cost of the contract.

(d) If the Contractor has an approved purchasing system, the Contractor nevertheless shall obtain the Contracting Officers written consent before placing the following subcontracts: NA.

(e) (1) The Contractor shall notify the Contracting Officer reasonably in advance of placing any subcontract or modification thereof for which consent is required under paragraph (b), (c), or (d) of this clause, including the following information:

(i) A description of the supplies or services to be subcontracted.

(ii) Identification of the type of subcontract to be used.

(iii) Identification of the proposed subcontractor.

(iv) The proposed subcontract price.

(v) The subcontractors current, complete, and accurate certified cost or pricing data and Certificate of Current Cost or Pricing Data, if required by other contract provisions.

(vi) The subcontractors Disclosure Statement or Certificate relating to Cost Accounting Standards when such data are required by other provisions of this contract.

(vii) A negotiation memorandum reflecting --

(A) The principal elements of the subcontract price negotiations;

(B) The most significant considerations controlling establishment of initial or revised prices;

(C) The reason certified cost or pricing data were or were not required;

(D) The extent, if any, to which the Contractor did not rely on the subcontractors certified cost or pricing data in determining the price objective and in negotiating the final price;

(E) The extent to which it was recognized in the negotiation that the subcontractors certified cost or pricing data were not accurate, complete, or current; the action taken by the Contractor and the subcontractor; and the effect of any such defective data on the total price negotiated;

(F) The reasons for any significant difference between the Contractors price objective and the price negotiated; and

	
						
	CONTINUATION SHEET
	Reference No. of Document Being Continued
	 Page 13 of 18

	PIIN/SIIN
	W15P7T-12-D-0015
	MOD/AMD
	PZ0003

	Name of Offeror or Contractor:
	COMTECH MOBILE DATACOM CORPORATION

(G) A complete explanation of the incentive fee or profit plan when incentives are used. The explanation shall identify each critical performance element, management decisions used to quantify each incentive element, reasons for the incentives, and a summary of all trade-off possibilities considered.

(2) The Contractor is not required to notify the Contracting Officer in advance of entering into any subcontract for which consent is not required under paragraph (c), (d), or (e) or this clause.

(f) Unless the consent or approval specifically provides otherwise, neither consent by the Contracting Officer to any subcontract nor approval of the Contractors purchasing system shall constitute a determination --

(1) Of the acceptability of any subcontract terms or conditions;

(2) Of the allowability of any cost under this contract; or

(3) To relieve the Contractor of any responsibility for performing this contract.

(g) No subcontract or modification thereof placed under this contract shall provide for payment on a cost-plus-a-percentage-of-cost
basis, and any fee payable under cost-reimbursement type subcontracts shall not exceed the fee limitations in FAR 15.404-4(c)(4)(i).

(h) The Contractor shall give the Contracting Officer immediate written notice of any action or suit filed and prompt notice of any claim made against the Contractor by any subcontractor or vendor that, in the opinion of the Contractor, may result in litigation related in any way to this contract, with respect to which the Contractor may be entitled to reimbursement from the Government.

(i) The Government reserves the right to review the Contractors purchasing system as set forth in FAR Subpart 44.3.i

(j) Paragraphs (c) and (e) of this clause do not apply to the following subcontracts, which were evaluated during negotiations: Subcontracts performed during the base year period of performance of W15P7T-12-D-0015. All subcontracts performed during the option year period of performance of W15P7T-12-D-0015 must be of the fixed-price or cost-reimbursement type.

	
								
	I-39
	CHANGED
	 
	252.232-7006
	 
	WIDE AREA WORKFLOW PAYMENT INSTRUCTIONS
	 
	JUN/2012

(a) Definitions. As used in this clause--

"Department of Defense Activity Address Code (DoDAAC)" is a six position code that uniquely identifies a unit, activity, or organization.

"Document type" means the type of payment request or receiving report available for creation in Wide Area WorkFlow (WAWF).

"Local processing office (LPO)" is the office responsible for payment certification when payment certification is done external to the entitlement system.

(b) Electronic invoicing. The WAWF system is the method to electronically process vendor payment requests and receiving reports, as authorized by DFARS 252.232-7003, Electronic Submission of Payment Requests and Receiving Reports.

(c) WAWF access. To access WAWF, the Contractor shall--

(1) Have a designated electronic business point of contact in the Central Contractor Registration at https://www.acquisition.gov; and

(2) Be registered to use WAWF at https://wawf.eb.mil/ following the step-by-step procedures for self-registration available at this Web site.

(d) WAWF training. The Contractor should follow the training instructions of the WAWF Web-Based Training Course and use the Practice Training Site before submitting payment requests through WAWF. Both can be accessed by selecting the "Web Based Training" link on the WAWF home page at https://wawf.eb.mil/.

(e) WAWF methods of document submission. Document submissions may be via Web entry, Electronic Data Interchange, or File Transfer Protocol.

(f) WAWF payment instructions. The Contractor must use the following information when submitting payment requests and receiving reports in WAWF for this contract/order:

(1) Document type. The Contractor shall use the following document type(s).

	
						
	CONTINUATION SHEET
	Reference No. of Document Being Continued
	 Page 14 of 18

	PIIN/SIIN
	W15P7T-12-D-0015
	MOD/AMD
	PZ0003

	Name of Offeror or Contractor:
	COMTECH MOBILE DATACOM CORPORATION

Cost voucher

(2) Inspection/acceptance location. The Contractor shall select the following inspection/acceptance location(s) in WAWF, as specified by the contracting officer.

S2101A

(3) Document routing. The Contractor shall use the information in the Routing Data Table below only to fill in applicable fields in WAWF when creating payment requests and receiving reports in the system.

	
			
	 
	Routing Data Table*

	 
	Field Name in WAWF
	Data to be entered in WAWF

	 
	Pay Official DoDAAC
	HQ0338

	 
	Issue By DoDAAC
	W15P7T

	 
	Admin DoDAAC
	S2101A

	 
	Inspect By DoDAAC
	S2101A

	 
	Ship To Code
	W15GK8

	 
	Ship From Code
	Not applicable

	 
	Mark For Code
	W15GK8

	 
	Service Approver (DoDAAC)
	W15GK8

	 
	Service Acceptor (DoDAAC)
	S2101A

	 
	Accept at Other DoDAAC
	Not applicable

	 
	LPO DoDAAC
	Not applicable

	 
	DCAA Auditor DoDAAC
	HAA211

	 
	Payment Office Fiscal Station Code
	W15GK8

(4) Payment request and supporting documentation. The Contractor shall ensure a payment request includes appropriate contract line item and subline item descriptions of the work performed or supplies delivered, unit price/cost per unit, fee (if applicable), and all relevant back-up documentation, as defined in DFARS Appendix F, (e.g. timesheets) in support of each payment request.

(5) WAWF email notifications. The Contractor shall enter the email address identified below in the "Send Additional Email Notifications" field of WAWF once a document is submitted in the system.

John.J.Balabanick.mil@mail.mil (COR)
Linda.Hirsch@dcma.mil (ACO)
Tiffany.L.Brown2.civ@mail.mil (PCO)
Jeffrey.D.Scott52.civ@mail.mil (Contract Specialist)

(g) WAWF point of contact. (1) The Contractor may obtain clarification regarding invoicing in WAWF from the following contracting activity's WAWF point of contact:

DFAS - Columbus at CCO.VPIS-MOCAS@DFAS.MIL or 1-800-756-4571. Please have your contract number/purchase order ready when calling about payments.

(2) For technical WAWF help, contact the WAWF helpdesk at 866-618-5988.

(End of clause)
	
								
	I-40
	ADDED
	 
	52.215-19
	 
	NOTIFICATION OF OWNERSHIP CHANGES
	 
	OCT/1997

(a) The Contractor shall make the following notifications in writing:

(1) When the Contractor becomes aware that a change in its ownership has occurred, or is certain to occur, that could result in changes in the valuation of its capitalized assets in the accounting records, the Contractor shall notify the Administrative Contracting Officer (ACO) within 30 days.

(2) The Contractor shall also notify the ACO within 30 days whenever changes to asset valuations or any other cost changes have occurred or are certain to occur as a result of a change in ownership.

	
						
	CONTINUATION SHEET
	Reference No. of Document Being Continued
	 Page 15 of 18

	PIIN/SIIN
	W15P7T-12-D-0015
	MOD/AMD
	PZ0003

	Name of Offeror or Contractor:
	COMTECH MOBILE DATACOM CORPORATION

(b) The Contractor shall --

(1) Maintain current, accurate, and complete inventory records of assets and their costs;

(2) Provide the ACO or designated representative ready access to the records upon request;

(3) Ensure that all individual and grouped assets, their capitalized values, accumulated depreciation or amortization, and remaining useful lives are identified accurately before and after each of the Contractors ownership changes; and

(4) Retain and continue to maintain depreciation and amortization schedules based on the asset records maintained before each Contractor ownership change.

(c) The Contractor shall include the substance of this clause in all subcontracts under this contract that meet the applicability requirement of FAR 15.408(k).

(End of Clause)

	
								
	I-41
	ADDED
	 
	52.219-28
	 
	POST-AWARD SMALL BUSINESS PROGRAM REREPRESENTATION
	 
	APR/2012

(a) Definitions. As used in this clause--

"Long-term contract" means a contract of more than five years in duration, including options. However, the term does not include contracts that exceed five years in duration because the period of performance has been extended for a cumulative period not to exceed six months under the clause at 52.217-8, Option to Extend Services, or other appropriate authority.

"Small business concern" means a concern, including its affiliates, that is independently owned and operated, not dominant in the field of operation in which it is bidding on Government contracts, and qualified as a small business under the criteria in 13 CFR part 121 and the size standard in paragraph (c) of this clause. Such a concern is "not dominant in its field of operation" when it does not exercise a controlling or major influence on a national basis in a kind of business activity in which a number of business concerns are primarily engaged. In determining whether dominance exists, consideration shall be given to all appropriate factors, including volume of business, number of employees, financial resources, competitive status or position, ownership or control of materials, processes, patents, license agreements, facilities, sales territory, and nature of business activity.

(b) If the Contractor represented that it was a small business concern prior to award of this contract, the Contractor shall rerepresent its size status according to paragraph (e) of this clause or, if applicable, paragraph (g) of this clause, upon the occurrence of any of the following:

(1) Within 30 days after execution of a novation agreement or within 30 days after modification of the contract to include this clause, if the novation agreement was executed prior to inclusion of this clause in the contract.

(2) Within 30 days after a merger or acquisition that does not require a novation or within 30 days after modification of the contract to include this clause, if the merger or acquisition occurred prior to inclusion of this clause in the contract.

(3) For long-term contracts

(i) Within 60 to 120 days prior to the end of the fifth year of the contract; and

(ii) Within 60 to 120 days prior to the date specified in the contract for exercising any option thereafter.

(c) The Contractor shall rerepresent its size status in accordance with the size standard in effect at the time of this rerepresentation that corresponds to the North American Industry Classification System (NAICS) code assigned to this contract. The small business size standard corresponding to this NAICS code can be found at
\*HYPERLINK "http://www.sba.gov/content/table-small-business-size-standards"http://www.sba.gov/content/table-small-business-size-standards

(d) The small business size standard for a Contractor providing a product which it does not manufacture itself, for a contract other than a construction or service contract, is 500 employees.

(e) Except as provided in paragraph (g) of this clause, the Contractor shall make the rerepresentation required by paragraph (b) of this clause by validating or updating all its representations in the Online Representations and Certifications Application and its data in the Central Contractor Registration, as necessary, to ensure that they reflect the Contractor's current status. The Contractor shall

	
						
	CONTINUATION SHEET
	Reference No. of Document Being Continued
	 Page 16 of 18

	PIIN/SIIN
	W15P7T-12-D-0015
	MOD/AMD
	PZ0003

	Name of Offeror or Contractor:
	COMTECH MOBILE DATACOM CORPORATION

notify the contracting office in writing within the timeframes specified in paragraph (b) of this clause that the data have been validated or updated, and provide the date of the validation or update.

(f) If the Contractor represented that it was other than a small business concern prior to award of this contract, the Contractor may, but is not required to, take the actions required by paragraphs (e)or (g) of this clause.

(g) If the Contractor does not have representations and certifications in ORCA, or does not have a representation in ORCA for the NAICS code applicable to this contract, the Contractor is required to complete the following rerepresentation and submit it to the contracting office, along with the contract number and the date on which the rerepresentation was completed:

The Contractor represents that it [ ] is, [ ] is not a small business concern under NAICS Code ______________ assigned to contract number ________________________. [Contractor to sign and date and insert authorized signer's name and title].

(End of clause)

	
								
	I-42
	CHANGED
	 
	52.230-3
	 
	DISCLOSURE AND CONSISTENCY OF COST ACCOUNTING PRACTICES
	 
	MAY/2012

(a) The Contractor, in connection with this contract, shall--

(1) Comply with the requirements of 48 CFR 9904.401, Consistency in Estimating, Accumulating, and Reporting Costs; 48 CFR 9904.402, Consistency in Allocating Costs Incurred for the Same Purpose; 48 CFR 9904.405, Accounting for Unallowable Costs; and 48 CFR 9904.406, Cost Accounting StandardCost Accounting Period, in effect on the date of award of this contract as indicated in 48 CFR Part 9904.

(2) (CAS-covered Contracts Only) If it is a business unit of a company required to submit a Disclosure Statement, disclose in writing its cost accounting practices as required by 48 CFR 9903.202-1 through 9903.202-5. If the Contractor has notified the Contracting Officer that the Disclosure Statement contains trade secrets and commercial or financial information which is privileged and confidential, the Disclosure Statement shall be protected and shall not be released outside of the Government.

(3) (i) Follow consistently the Contractors cost accounting practices. A change to such practices may be proposed, however, by either the Government or the Contractor, and the Contractor agrees to negotiate with the Contracting Officer the terms and conditions under which a change may be made. After the terms and conditions under which the change is to be made have been agreed to, the change must be applied prospectively to this contract, and the Disclosure Statement, if affected, must be amended accordingly.

(ii) The Contractor shall, when the parties agree to a change to a cost accounting practice and the Contracting Officer has made the finding required in 48 CFR 9903.201-6(c), that the change is desirable and not detrimental to the interests of the Government, negotiate an equitable adjustment as provided in the Changes clause of this contract. In the absence of the required finding, no agreement may be made under this contract clause that will increase costs paid by the United States.

(4) Agree to an adjustment of the contract price or cost allowance, as appropriate, if the Contractor or a subcontractor fails to comply with the applicable CAS or to follow any cost accounting practice, and such failure results in any increased costs paid by the United States. Such adjustment shall provide for recovery of the increased costs to the United States together with interest thereon computed at the annual rate established under section 6621(a)(2) of the Internal Revenue Code of 1986 (26 U.S.C. 6621(a)(2)), from the time the payment by the United States was made to the time the adjustment is effected.

(b) If the parties fail to agree whether the Contractor has complied with an applicable CAS, rule, or regulation as specified in 48 CFR 9903 and 9904 and as to any cost adjustment demanded by the United States, such failure to agree will constitute a dispute under the Contract Disputes Act (41 U.S.C. 601).

(c) The Contractor shall permit any authorized representatives of the Government to examine and make copies of any documents, papers, and records relating to compliance with the requirements of this clause.

(d) The Contractor shall include in all negotiated subcontracts, which the Contractor enters into, the substance of this clause, except paragraph (b), and shall require such inclusion in all other subcontracts of any tier, except that--

(1) If the subcontract is awarded to a business unit which pursuant to 48 CFR 9903.201-2 is subject to other types of CAS coverage, the substance of the applicable clause set forth in subsection 30.201-4 of the Federal Acquisition Regulation shall be inserted.

(2) This requirement shall apply only to negotiated subcontracts in excess of $700,000.

(3) The requirement shall not apply to negotiated subcontracts otherwise exempt from the requirement to include a CAS clause as specified in 48 CFR 9903.201-1.

	
						
	CONTINUATION SHEET
	Reference No. of Document Being Continued
	 Page 17 of 18

	PIIN/SIIN
	W15P7T-12-D-0015
	MOD/AMD
	PZ0003

	Name of Offeror or Contractor:
	COMTECH MOBILE DATACOM CORPORATION

(End of clause)

	
								
	I-43
	ADDED
	 
	52.252-6
	 
	AUTHORIZED DEVIATIONS IN CLAUSES
	 
	APR/1984

(a) The use in this solicitation or contract of any Federal Acquisition Regulation (48 CFR Chapter 1) clause with an authorized deviation is indicated by the addition of (DEVIATION) after the date of the clause.

(b) The use in this solicitation or contract of any DoD FAR SUPPLEMENT (48 CFR 2) clause with an authorized deviation is indicated by the addition of (DEVIATION) after the name of the regulation.

(End of Clause)

	
						
	CONTINUATION SHEET
	Reference No. of Document Being Continued
	 Page 18 of 18

	PIIN/SIIN
	W15P7T-12-D-0015
	MOD/AMD
	PZ0003

	Name of Offeror or Contractor:
	COMTECH MOBILE DATACOM CORPORATION

SECTION J - LIST OF ATTACHMENTS

	
									
	List of
Addenda

	 
	Title
	 
	Date
	 
	Number
 of Pages
	 
	Transmitted By

	Attachment 0003
	 
	COMMERCIAL INTELLECTUAL PROPERTY LICENSE AGREEMENT
	 
	 
	 
	 
	 
	EMAIL

	Attachment 0006
	 
	SUBCONTRACTING PLAN
	 
	 
	 
	 
	 
	EMAIL

	Attachment 0007
	 
	COMMERCIAL INTELLECTUAL PROPERTY LICENSE AGREEMENT AMENDMENT
	 
	 
	 
	 
	 
	EMAILEX-10.1_Employment_Agreement

EXECUTIVE EMPLOYMENT AGREEMENT
THIS EXECUTIVE EMPLOYMENT AGREEMENT (the “Agreement”), is made and entered into as of June 6, 2013 by and between Diebold, Incorporated, an Ohio corporation (together with its successors and assigns permitted under this Agreement, the “Company”), and Andreas W. Mattes (the “Executive”).
W I T N E S S E T H
WHEREAS, the Company and the Executive enter into this Agreement to set forth the terms and conditions upon which the Executive agrees to serve as an officer of the Company;
NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein and for other good and valuable consideration, the receipt of which is mutually acknowledged, the Company and the Executive (individually a “Party” and together the “Parties”) agree as follows:
1.Definitions.  
(a)    “Base Salary” shall mean the salary provided for in Section 4 below.
(b)    “Board” shall mean the Board of Directors of the Company.
(c)    “Cause” shall mean the Executive’s:
(i)    Willful failure to substantially perform his duties with the Company (other than any such failure resulting from the Executive’s Disability), after a written demand for substantial performance is delivered to the Executive that specifically identifies the manner in which the Company believes that the Executive has not substantially performed his duties, and the Executive has failed to remedy the situation within fifteen (15) business days of such written notice from the Company;
(ii)    Willful gross negligence in the performance of the Executive’s duties;
(iii)    Conviction of, or plea of guilty or nolo contendere to, any felony or a lesser crime or offense which, in the reasonable opinion of the Company, could adversely affect the business or reputation of the Company;
(iv)    Willful engagement in conduct that is demonstrably and materially injurious to the Company, monetarily or otherwise;
(v)    Willful violation of any provision of the Company’s Code of Business Ethics, as amended from time to time;
(vi)    Willful violation of any of the covenants contained in Sections 11 through 13 of this Agreement, as applicable;

- 1 -    

(vii)    Engaging in any act of dishonesty resulting in, or intended to result in, personal gain at the expense of the Company; or
(viii)    Engaging in any act that is intended to harm, or may be reasonably expected to harm, the reputation, business prospects, or operations of the Company.
For purposes of this Section 1(c), no act or omission by the Executive shall be considered “willful” unless it is done or omitted in bad faith or without reasonable belief that the Executive’s action or omission was in the best interests of the Company.  Any act or failure to act based upon:  (i) authority given pursuant to a resolution duly adopted by the Board; or (ii) advice of counsel for the Company, shall be conclusively presumed to be done or omitted to be done by the Executive in good faith and in the best interests of the Company.

For purposes of this Agreement, there shall be no termination for Cause pursuant to subsections 1(c)(ii) through (viii) above, unless a written notice, containing a detailed description of the grounds constituting Cause hereunder, is delivered to the Executive stating the basis for the termination.  Upon receipt of such notice, the Executive shall be given 30 days to fully cure (if such violation, neglect, or conduct is capable of cure) the violation, neglect, or conduct that is the basis of such claim.  If, in the Board’s opinion, cure has not been accomplished by the Executive at the conclusion of such 30-day period, the Executive will be given a reasonable opportunity to be heard before termination.

(d)    “Change in Control” means the occurrence of any of the following during the CIC Term (as defined below):
(i)    The Company is merged or consolidated or reorganized into or with another corporation or other legal person, and as a result of such merger, consolidation or reorganization less than a majority of the combined voting power of the then-outstanding securities of such corporation or person immediately after such transaction is held in the aggregate by the holders of Voting Stock (as that term is hereafter defined) of the Company immediately prior to such transaction;
(ii)    The Company sells or otherwise transfers all or substantially all of its assets to any other corporation or other legal person, and as a result of such sale or transfer less than a majority of the combined voting power of the then-outstanding securities of such corporation or person immediately after such sale or transfer is held in the aggregate by the holders of Voting Stock of the Company immediately prior to such sale or transfer; or
(iii)    There is a report filed on Schedule 13D or Schedule 14D-1 (or any successor schedule, form or report), each as promulgated pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange Act”), disclosing that any person (as the term “person” is used in Section 13(d)(3) or Section 14(d)(2) of the Exchange Act) has become the beneficial owner (as the term “beneficial owner” is defined under Rule 13(d)(3) or any successor rule or regulation promulgated under the Exchange Act) of securities representing 20% or more of the combined voting power of the then-outstanding securities entitled to vote generally in the election of directors of the Company (“Voting Stock”);

- 2 -    

(iv)    If during any period of two consecutive years, individuals who at the beginning of any such period constitute the Directors of the Company cease for any reason to constitute at least a majority thereof, unless the election, or the nomination for election by the Company’s stockholders, of each Director of the Company first elected during such period was approved by a vote of at least two-thirds of the Directors of the Company then still in office who were Directors of the Company at the beginning of any such period.

- 3 -    

Notwithstanding the foregoing provisions of Section 1(d)(iii) hereof, a “Change in Control” shall not be deemed to have occurred for purposes of this Agreement either (i) solely because (A) the Company, (B) a Subsidiary of the Company, or (C) any Company-sponsored employee stock ownership plan or any other employee benefit plan of the Company, either files or becomes obligated to file a report or a proxy statement under or in response to Schedule 13D, Schedule 14D-1, Form 8-K or Schedule 14A (or any successor schedule, form or report or item therein) under the Exchange Act, disclosing beneficial ownership by it of shares of Voting Stock, whether in excess of 20% or otherwise, or because the Company reports that a change in control of the Company has or may have occurred or will or may occur in the future by reason of such beneficial ownership or (ii) solely because of a change in control of any Subsidiary by which the Executive may be employed.  Notwithstanding the foregoing provisions of Sections 1(d)(i-iii) hereof, if, prior to any event described in Sections 1(d)(i-iii) hereof instituted by any person not an officer or director of the Company, or prior to any disclosed proposal instituted by any person not an officer or director of the Company which could lead to any such event, management proposes any restructuring of the Company which ultimately leads to an event described in Sections 1(d)(i-iii) hereof pursuant to such management proposal, then a “Change in Control” shall not be deemed to have occurred for purposes of this Agreement.
Further, in the event that any agreement to merge, consolidate, reorganize or sell or otherwise transfer assets referred to in Section 1(d)(i) or 1(d)(ii) is terminated without such merger, consolidation, reorganization or sale or transfer having been consummated, or the person filing such Schedule 13D or Schedule 14D-1 referred to in Section 1(d)(iii) files an amendment to such Schedules disclosing that it no longer is the beneficial owner of securities representing 20% or more of the Voting Stock of the Company, or the Company reports that the change in control which it reported in the filing referred to in Section 1(d)(iii) will not in fact occur, the Board shall by notice to the Executive nullify the occurrence of such Change in Control.
“CIC Term” means the period commencing as of the Effective Date and expiring as of the close of business on the second anniversary of the Effective Date, provided, however, that (i) commencing on January 1, 2014 and each January 1 thereafter, the CIC Term shall automatically be extended for an additional year unless, not later than September 30 of the immediately preceding year, the Company or the Executive shall have given notice that it or he, as the case may be, does not wish to have the CIC Term extended and (ii) upon a Change in Control, the CIC Term shall be extended to the second anniversary of such Change in Control.  Notwithstanding the foregoing, if, at any time prior to a Change in Control, the Executive for any reason is no longer an employee of the Company or a Subsidiary, thereupon the CIC Term shall be deemed to have expired.
(e)     “Code” means the Internal Revenue Code of 1986, as amended.
(f)    “Compensation Committee” shall mean the Compensation Committee of the Board or any other committee appointed by the Board to perform the functions of the Compensation Committee.
(g)     “Date of Termination” shall mean the date on which the Executive incurs a “separation from service” within the meaning of Section 409A of the Code.

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(h)    “Disability” shall mean the Executive’s permanent and total disability as defined by the long-term disability plan in effect for senior executives of the Company.
(i)    “Effective Date” shall be June 6, 2013.
(j)    “Equity Incentive Plan” shall mean the Amended and Restated 1991 Equity Performance and Incentive Plan, as it may be amended from time to time, and/or any successor plan(s) providing for the issuance of time-based or performance-based equity to executives.
(k)    “Good Reason” shall mean the occurrence of any one or more of the following without the Executive’s express written consent:
(i)    The Company changes the Executive’s title or material job duties such that it results in material diminution in Executive’s authority, duties, or responsibilities; or 
(ii)    The Company materially reduces the amount of the Executive’s then current Base Salary or the target opportunity for his annual incentive award; or
(iii)    The Company requires the Executive to be based at a location in excess of fifty (50) miles from the location of the Executive’s principal job location or office as of the Effective Date, which the Parties acknowledge to be the Company’s North Canton, Ohio corporate headquarters; or
(iv)    Executive is removed by the Board of its own volition from his position on the Board; or
(v)    The failure of the Company to obtain in writing the obligation to perform or be bound by the terms of this Agreement by any successor to the Company or a purchaser of all or substantially all of the assets of the Company; or
(vi)    Any other action or inaction by the Company that constitutes a material breach by the Company of the terms and conditions of this Agreement.
The Executive is not entitled to assert that his termination is for Good Reason, unless the Executive gives the Company written notice of the event or events that are the basis for such claim within 30 days after the event or events occur, describing such claim in reasonably sufficient detail to allow the Company to address the event or events and a period of not less than 30 days after to cure the alleged condition.

(l)     “Pro Rata” shall mean a fraction, the numerator of which is the number of days that the Executive was employed in the applicable performance period (the performance period in the case of an annual incentive award and a performance cycle in the case of an award under the Equity Incentive Plan) and the denominator of which shall be the number of days in the applicable performance period or cycle.

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(m)    “Protected Information” shall mean trade secrets, confidential and proprietary business information of the Company, and any other information of the Company, including, but not limited to, customer lists (including potential customers), sources of supply, processes, plans, materials, pricing information, internal memoranda, marketing plans, internal policies, and products and services that may be developed from time to time by the Company and its agents or employees, including the Executive; provided, however, that information that is in the public domain (other than as a result of a breach of this Agreement), approved for release by the Company or lawfully obtained from third parties who are not bound by a confidentiality agreement with the Company, is not Protected Information.
(n)    “Shares” shall mean the Common Shares of the Company.
(o)    “Subsidiary” means a corporation, company or other entity (i) more than 50 percent of whose outstanding shares or securities (representing the right to vote for the election of directors or other managing authority) are, or (ii) which does not have outstanding shares or securities (as may be the case in a partnership, joint venture or unincorporated association), but more than 50 percent of whose ownership interest representing the right generally to make decisions for such other entity is, now or hereafter owned or controlled, directly or indirectly, by the Company, but such corporation, company or other entity shall be deemed to be a Subsidiary only so long as such ownership or control exists.
(p)    “Term of Employment” shall mean the period specified in Section 2 below (including any extension as provided therein).
2.    Term of Employment.  
The Term of Employment shall begin on the Effective Date, and shall extend until the second anniversary of the Effective Date, with automatic one-year renewals thereafter unless either Party notifies the other at least 6 months before the scheduled expiration date that the Agreement is not to renew.  Notwithstanding the foregoing, the Term of Employment may be earlier terminated by either Party in accordance with the provisions of Section 10.
3.    Position, Duties and Responsibilities.  
(a)    Commencing on the Effective Date and continuing for the remainder of the Term of Employment, the Executive shall be employed as the Chief Executive Officer and President of the Company and be responsible for the general management of the affairs of the Company.  The Executive also shall be nominated to become a member of the Board, effective as of the Effective Date.  The Executive, in carrying out his duties under this Agreement, shall report to the Board.  During the term of this Agreement, the Executive shall devote substantially all of his business time and attention to the business and affairs of the Company and shall use his best efforts, skills and abilities to promote its interests.
(b)    Nothing herein shall preclude the Executive from (i) serving on the boards of directors of a reasonable number of other corporations with the concurrence of the Board, (ii) serving on the boards of a reasonable number of trade associations and/or charitable 

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organizations, (iii) engaging in charitable activities and community affairs, and (iv) managing his personal investments and affairs, provided that such activities set forth in this Section 3(b) do not conflict or interfere with the effective discharge of his duties and responsibilities under Section 3(a).
4.    Base Salary.  
The Executive shall be paid an annualized Base Salary, payable in accordance with the regular payroll practices of the Company, of not less than $775,000.  The Base Salary shall be reviewed annually for increase in the discretion of the Board.
5.    Annual Incentive Award.  
During the Term of Employment, the Executive shall be eligible for an annual incentive award with payout opportunities that are commensurate with his position and duties, as determined by the Company in its sole discretion.  The Executive’s annual incentive award opportunities shall be based on Company and individual performance goals determined, and subject to change, by the Company in the Company’s sole discretion.  For 2013, any annual incentive award will be paid on a Pro Rata basis, based upon a guaranteed minimum payout of at least 100% of the target opportunity.   The Executive shall be paid his annual incentive award no later than other senior executives of the Company are paid their annual incentive award.     
6.    Sign-On Arrangement and Long-Term Incentive Awards.  
(a)    As soon as practicable following the Effective Date, the Company shall grant the Executive $500,000 worth of Common Shares (or a substantially equivalent equity award) specifically subject to repayment, as further governed by the terms and conditions for such grant as set forth in an agreement between the Company and the Executive evidencing such grant, including terms that generally provide that the Company's right to repayment shall expire with respect to (i) 50% of the total number of Common Shares subject to the grant on the first anniversary of the Effective Date if the Executive remains continuously employed by the Company until such date and  (ii) the remaining 50% of the total number of Common Shares subject to the grant on the second anniversary of the Effective Date if the Executive remains continuously employed by the Company until such date.
(b)    The Executive shall be eligible to participate in the Company’s Long-Term Incentive Plan (LTIP) on terms commensurate with his position and duties, as determined by the Company in its sole discretion. Program design including performance measures and weighting is at the sole discretion of the Board.  
7.    Employee Benefit Programs.  
During the Term of Employment, the Executive shall be entitled to participate in any employee benefit plans and programs made available to the Company’s senior level executives (other than the Diebold, Incorporated Senior Leadership Severance Plan (For Tier I, Tier II, and Tier III Executives), subject to Section 10(f) below, or any defined benefit plan, under any 

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circumstances), as such plans or programs may be in effect from time to time, including, without limitation, 401(k) savings and other plans or programs, medical, dental, hospitalization, short-term and long-term disability and life insurance plans, accidental death and dismemberment protection, travel accident insurance, and any retirement plans or programs and any other employee welfare benefit plans or programs that may be sponsored by the Company in the future from time to time, including any plans that supplement the above-listed types of plans or programs, whether funded or unfunded.  The Executive’s participation shall be based on, and the calculation of all benefits shall be based on, the assumptions that the Executive has met all service-period or other requirements for such participation.  The Executive shall be entitled to four weeks of paid vacation during each year of employment, which shall be subject to the Company’s vacation policy for senior executives.
8.    Reimbursement of Business and Other Expenses.  
The Executive is authorized to incur reasonable expenses in carrying out his duties and responsibilities under this Agreement and the Company shall promptly reimburse him for all reasonable business expenses incurred in connection with carrying out the business of the Company, subject to documentation in accordance with the Company’s policy.
9.    Perquisites.  
The Executive shall receive the following Company executive perquisites:
(a)    The Company shall reimburse the Executive for reasonable financial planning and tax preparation fees up to an annual maximum of $12,000.
(b)    The Executive shall be entitled to the annual Executive Physical Program at the Company’s expense at the Cleveland Clinic. 
(c)    The Company shall reimburse the cost of reasonable travel and housing expenses incurred by the Executive in connection with any temporary remote work arrangement occasioned by the Executive’s work for Company, such temporary remote work arrangement not to last longer than one year from the Effective Date.  Determinations as to the reasonableness of such travel and housing expenses shall be at the discretion of the Board.
(d)    The Executive shall be entitled to benefits provided under the Company’s applicable relocation policy, and the Company shall reimburse certain additional expenses as may be approved by the Chairman of the Board. 
All reimbursements under Section 8 or Section 9, or otherwise under the Agreement, shall be for expenses incurred by the Executive during the Term of Employment.  In all events such reimbursement will be made no later than the end of the year following the year in which the expense was incurred.  Each provision of reimbursements shall be considered a separate payment and not one of a series of payments for purposes of Section 409A of the Code.  In addition, no reimbursement or in-kind benefit shall be subject to liquidation or exchange for another benefit and the amount available for reimbursement, or in-kind benefits provided, during 

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one calendar year in no event will affect the amount of expenses required to be reimbursed or in-kind benefits required to be provided by the Company in any other calendar year.
10.    Termination of Employment.  
(a)    Termination Due to Death.  In the event that the Executive’s employment is terminated due to his death, his estate or his beneficiaries, as the case may be, shall be entitled to the following benefits:
(i)    a lump sum amount, paid within 60 days following the Date of Termination, equal to the Executive’s unpaid Base Salary through and including the Date of Termination, as well as accrued, unused vacation and unreimbursed business expenses as of the Date of Termination, consistent with the regular payroll practices of the Company;
(ii)    a lump sum amount, paid within 60 days following the Date of Termination, of the annual incentive at target for the calendar year that includes the Date of Termination; provided however, that such amount shall be adjusted on a Pro Rata basis.
(iii)    all outstanding options and stock appreciation rights (“SARs”), whether or not then vested, shall vest and shall remain exercisable for a period of one year or until their stated expiration date, if earlier; and
(iv)    Pro Rata long-term incentives shall be payable when scheduled to be paid (if, and to the extent, such awards are payable).
(b)    Termination Due to Disability.  In the event that the Executive’s employment is terminated due to his Disability, and conditioned upon, no later than 60 days after the Date of Termination, the Executive’s effective execution of a general release of claims against the Company (without revocation), the terms of such release to be agreed upon by the Company and the Executive, as well as the Executive’s acknowledgement of, and the Executive’s compliance with, the Executive’s obligations under the restrictive covenants set forth in Sections 11 through 13, he shall be entitled to the following benefits:
(i)    a lump sum amount, paid within 60 days following the Date of Termination, equal to the Executive’s unpaid Base Salary through and including the Date of Termination, as well as for any accrued, unused vacation and unreimbursed business expenses as of the Date of Termination, consistent with the regular payroll practices of the Company;
(ii)    a lump sum amount, paid within 60 days following the Date of Termination, of the annual incentive at target for the calendar year that includes the Date of Termination; provided however, that such amount shall be adjusted on a Pro Rata basis;
(iii)    all outstanding options and SARs, whether or not then vested, shall vest and shall remain exercisable for a period of one year or until their stated expiration date, if earlier;

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(iv)    Pro Rata long-term incentives shall be payable, when scheduled to be paid (if, and to the extent, such awards are payable); and
(v)    continuation of the Executive’s medical, dental, vision, and Company-paid basic life insurance coverage for 24 months.  These benefits shall be provided by the Company to the Executive beginning immediately upon the Date of Termination.  Such benefits shall be provided to the Executive at the same coverage level and cost to the Executive as in effect immediately prior to the Executive’s Date of Termination.  Notwithstanding the above, these medical, dental, vision and Company-paid basic life insurance benefits shall be discontinued prior to the end of the stated continuation period in the event the Executive receives substantially similar benefits from a subsequent employer, as determined solely by the Company in good faith.  For purposes of enforcing this offset provision, the Executive shall be deemed to have a duty to keep the Company informed as to the terms and conditions of any subsequent employment and the corresponding benefits earned from such employment, and shall provide, or cause to provide, to the Company in writing correct, complete, and timely information concerning the same.
In no event shall a termination of the Executive’s employment due to Disability occur until the Party terminating Executive’s employment gives written notice to the other Party in accordance with Section 24 below.  
(c)    Termination by the Company for Cause. In the event the Company terminates the Executive’s employment for Cause, he shall be entitled to the following benefits:
(i)    a lump sum amount, paid within 60 days following the Date of Termination, equal to the Executive’s unpaid Base Salary through and including the Date of Termination, as well as accrued, unused vacation and unreimbursed business expenses as of the Date of Termination, consistent with the regular payroll practices of the Company; and
(ii)    all outstanding options and SARs which are not then vested shall be forfeited; vested options and SARs shall remain exercisable until the earlier of the thirtieth day after the Date of Termination or the originally scheduled expiration date of the options and SARs, unless the Compensation Committee determines otherwise.
(d)    Termination by Company without Cause or Termination by the Executive for Good Reason.  In the event the Executive’s employment is terminated by the Company without Cause (i.e., on a basis other than specified in Subsections 10(a), 10(b), 10(c), 10(e), or 10(f)), or in the event Executive’s employment is terminated by Executive for Good Reason, in either case, at any time other than during the two-year period following a Change in Control, and conditioned upon, no later than 60 days after the Date of Termination, the Executive’s effective execution of a general release of claims against the Company (without revocation), the terms of such release to be agreed upon by the Company and Executive, as well as Executive’s acknowledgement of, and Executive’s compliance with, Executive’s obligations under the restrictive covenants set forth in Sections 11 through 13, the Executive shall be entitled to the following benefits:

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(i)    a lump sum amount, paid within 60 days following the Date of Termination, equal to the Executive’s unpaid Base Salary through and including the Date of Termination, as well as accrued vacation pay and unreimbursed business expenses; 
(ii)    a lump sum amount, paid within 60 days following the Date of Termination, equal to two (2) times (A) the Executive’s Base Salary, and (B) the Executive’s annual incentive award at target for the calendar year that includes the Date of Termination;
(iii)    a lump sum amount, if any, paid within two and one-half (2 1⁄2) months after the end of the calendar year that includes the Date of Termination, equal to the actual annual incentive that would have been payable to the Executive for the calendar year that includes the Date of Termination based on the Company’s actual performance against applicable goals and for Executive’s personal goals/ key initiatives, based on Executive’s assumed target level performance, if the Executive had remained employed through the end of such calendar year; provided however, that such amount shall be adjusted on a Pro Rata basis.
(iv)    Continuation of the Executive’s medical, dental, vision, and Company-paid basic life insurance coverage for 24 months.  These benefits shall be provided by the Company to the Executive beginning immediately upon the Date of Termination.  Such benefits shall be provided to the Executive at the same coverage level and cost to the Executive as in effect immediately prior to the Executive’s Date of Termination.  Notwithstanding the above, these medical, dental, vision and Company-paid basic life insurance benefits shall be discontinued prior to the end of the stated continuation period in the event the Executive receives substantially similar benefits from a subsequent employer, as determined solely by the Company in good faith.  For purposes of enforcing this offset provision, the Executive shall be deemed to have a duty to keep the Company informed as to the terms and conditions of any subsequent employment and the corresponding benefits earned from such employment, and shall provide, or cause to provide, to the Company in writing correct, complete, and timely information concerning the same;
(v)    All outstanding and unvested stock options and SARs shall immediately vest and shall remain exercisable for a period of three (3) months from the Date of Termination or the last day of the option term, whichever occurs first.  Additionally, from time to time, the Company may declare “blackout” periods with respect to designated employees of the Company during which such employees are prohibited from engaging in certain transactions in Company securities.  In the event that the scheduled expiration date of this option and SAR shall fall within a blackout period that has been declared by the Company and that applies to an option/SAR holder, then the expiration date shall automatically, and without further notice to the option/SAR holder, be extended until such time as fifteen (15) consecutive business days have elapsed after the scheduled expiration date without interruption by any blackout period that applied to the option/SAR holder;
(vi)    All restrictions on unvested shares of restricted stock and unvested restricted stock units shall immediately lapse, with such shares and units becoming non-forfeitable on a pro rata basis, as determined under this subparagraph (vi).  The pro rata award shall equal the product of (A) and (B) where (A) is the number of restricted stock shares or units 

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subject to the award, and (B) is a fraction, the numerator of which is the number of calendar months that the Executive was employed by the Company during the restriction period (with any partial months counting as a full month for this purpose) and the denominator of which is the number of months in the restriction period.  The timing of the delivery of any shares on account of the vesting of any restricted share units will be determined under the terms of the Equity Incentive Plan (as most recently amended and/or restated) and the award agreements (or comparable documentation) thereunder;
(vii)    Unearned performance shares and performance units shall be paid out on a pro rata basis, as determined under this subparagraph (vii).  The pro rata award shall equal the product of (A) and (B) where (A) is the award the Executive would have earned based on actual performance measured as of the end of the respective performance period and (B) is a fraction, the numerator of which is the number of calendar months that the Executive was employed by the Company during the performance period (with any partial month counting as a full month for this purpose) and the denominator of which is the number of months in the performance period.  Any such awards will be paid to Executive at the same time eligible participants are paid; and
(viii)    The Company will assist the Executive in finding other employment opportunities by providing to him, at the Company’s limited expense, reasonable professional outplacement services through the provider of the Company’s choice.  Such outplacement services shall terminate when the Executive finds other employment.  However, in no event shall such outplacement services continue for more than 24 months following the Date of Termination.
(e)    Voluntary Termination.  A termination of employment by the Executive on his own initiative, other than a termination due to Disability or a termination for Good Reason, shall have the same consequences as provided in Section 10(c) for a termination for Cause.  A voluntary termination under this Section 10(e) shall be effective on the date specified in the Executive’s written notice, unless such voluntary termination is earlier accepted by the Company, such early acceptance still to be treated as a voluntary termination by the Executive.   
(f)    Non-Renewal by the Company.  During the Term of Employment, the Executive shall not be entitled to participate in the Diebold, Incorporated Senior Leadership Severance Plan (For Tier I, Tier II, and Tier III Executives), or any similar or successor plans or arrangements (the “Severance Plan”), but shall instead (except as may be otherwise determined by the Board), be entitled to receive payments and benefits in connection with the termination of the Executive’s employment pursuant to this Agreement.  Notwithstanding the prior sentence, in the event that the Company notifies the Executive pursuant to Section 2 of this Agreement that the Term of Employment shall not renew, the Company shall take prompt action to provide that, immediately upon termination of the Term of Employment, the Executive shall participate in the Severance Plan with severance and benefit opportunities under the Severance Plan that are commensurate with his position and duties immediately prior to the termination of the Term of Employment.  In the event that there is no Severance Plan in place at the time of a non-renewal or the benefits are reduced from the Severance Plan in place on the Effective Date and assuming 

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the Executive separates from the Company, he will be entitled to rights no less favorable than the rights set forth in the Severance Plan in place on the Effective Date.  The rights and obligations under this Section 10(f) shall survive any termination of this Agreement or termination of the Executive’s employment with the Company.
(g)    No Mitigation; No Offset.  In the event of any termination of employment under this Section 10, the Executive shall be under no obligation to seek other employment and there shall be no offset against amounts due the Executive under this Agreement on account of any remuneration attributable to any subsequent employment that he may obtain.
(h)    Nature of Payments.  Any amounts due under this Section 10 are in the nature of severance payments considered to be reasonable by the Company and are not in the nature of a penalty.
(i)    Timing of Payments.  Notwithstanding any provision in this Agreement to the contrary, if the Executive is a “specified employee” (within the meaning of Treasury Regulation Section 1.409A-1(i) and using the identification methodology selected by the Company from time to time) on the Date of Termination, to the extent payments or benefits made hereunder (as well as any other payment or benefit that the Executive is entitled to receive upon his separation from service) constitute deferred compensation (after taking account any applicable exceptions under Section 409A of the Code), and to the extent required by Section 409A of the Code, payments or benefits payable upon separation from service which otherwise would be payable during the six-month period immediately following the Date of Termination will instead be paid or made available on the earlier of (i) the first day following the six month anniversary of the Executive’s Date of Termination and (ii) the Executive’s death.
11.    Non-Competition. 
(a)     The Executive agrees that during the Executive’s employment with the Company and for a period of two (2) years following the termination of such employment, whether termination is by the Executive or the Company, and regardless of the reasons therefore, the Executive shall not:  (A) directly, or indirectly act in concert or conspire with any person employed by the Company in order to, engage in or prepare to engage in or to have a financial or other interest in any business or any activity that he knows (or reasonably should have known) to be directly competitive with the business of the Company as then being carried on (or with any product, service, or business activity which was under active development while the Executive was employed by Company if such development is being actively pursued by the Company during such two-year period); or (B) serve as an employee, agent, partner, shareholder, director, or consultant for, or in any other capacity participate, engage, or have a financial or other interest in any business or any activity that he knows (or reasonably should have known) to be directly competitive with the business of the Company as then being carried on (or with any product, service, or business activity which was under active development while the Executive was employed by Company if such development is being actively pursued by the Company during such two-year period), provided, however, that notwithstanding anything to the contrary contained in this Agreement, the Executive may own up to two percent (2%) of the outstanding shares of the capital stock of a company whose securities are registered under Section 12 of the 

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Exchange Act.   Further, notwithstanding anything to the contrary in this Section 11(a), provided that the Company is given reasonable opportunity to consult with the Executive and the Executive consults with the Company in good faith, the Company may opt, in its sole discretion, to consent to the Executive’s accepting employment with a competitive business on the condition that Executive will not be involved, directly or indirectly, in any manner, with any competitive product or service. 
(b)    The Executive further acknowledges and agrees that, in the event of the termination of his employment with the Company, the Executive’s experience and capabilities are such that the Executive can obtain employment in business activities which do not compete with the Company, and that the enforcement of this Agreement by way of injunction shall not prevent the Executive from earning a reasonable livelihood.  The Executive further acknowledges and agrees that the covenants contained herein are necessary for the protection of the Company’s legitimate business interests and are reasonable in scope and duration.
12.    No Solicitation of Employees.  
The Executive agrees that during his employment with the Company and for a period of three (3) years following the termination of such employment, whether termination is by the Executive or by the Company, regardless of the reasons therefore, the Executive will not directly or indirectly, (a) employ or retain or solicit for employment or arrange to have any other person, firm, or other entity employ or retain or solicit for employment or otherwise participate in the employment or retention of any person who is an employee or consultant of the Company; or (b) solicit suppliers or customers of the Company or induce any such person to terminate his, her, or its relationship with the Company.  In the event that the scope of the restrictions in Section 11 or 12 are found overly broad, Executive agrees that a court should reform the restrictions by limiting them to the maximum reasonable scope.
13.    Confidentiality.  
The Company has advised the Executive and the Executive acknowledges that it is the policy of the Company to maintain as secret and confidential all Protected Information, and that Protected Information has been and will be developed at substantial cost and effort to the Company.  The Executive shall not at any time, directly or indirectly, divulge, furnish, or make accessible to any person, firm, corporation, association, or other entity (otherwise than as may be required in the regular course of the Executive’s employment), nor use in any manner, either during the Executive’s employment or after termination for any reason, any Protected Information, or cause any such Protected Information of the Company to enter the public domain.
14.    Effect of a Change in Control.  The Executive’s entitlements relating to a Change in Control of the Company shall be determined in accordance with this Section 14 and there shall be no duplication of the benefits provided in this Section 14.
(a)    Extension of Agreement.   Subject to Section 16 below, upon a Change in Control, the Term of Employment shall be extended to the second anniversary of such Change in 

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Control, with automatic one-year renewals thereafter unless either party notifies the other at least 6 months before the scheduled expiration date that the Agreement is not to renew.  Notwithstanding the foregoing, the Term of Employment may be earlier terminated by either party in accordance with the provisions of Section 10, except as modified by this Section 14.
(b)    Obligations of the Company upon Certain Terminations Following a Change in Control.
(i)    Good Reason; Other Than for Cause.  If, during the two-year period following a Change in Control, the Executive’s employment is terminated by the Company without Cause (i.e., on a basis other than specified in Subsections 10(a), 10(b), 10(c), 10(e), or 10(f)), or the Executive’s employment is terminated by Executive for Good Reason, and conditioned upon Executive’s compliance with Executive’s obligations under the restrictive covenants set forth in Sections 11 through 13, the Executive shall be entitled to the following benefits:
(A)    a lump sum amount, paid within 60 days following the Date of Termination, equal to the Executive’s unpaid Base Salary through and including the Date of Termination, as well as accrued vacation pay and unreimbursed business expenses;
(B)    a lump sum amount, paid within 60 days following the Date of Termination, equal to two times (A) the Executive’s Base Salary, and (B) the Executive’s annual incentive award at target for the calendar year that includes the Date of Termination;
(C)    a lump sum amount, if any, paid within two and one-half (2 1⁄2) months after the end of the calendar year that includes the Date of Termination, equal to the actual annual incentive that would have been payable to the Executive for the calendar year that includes the Date of Termination based on the Company’s actual performance against applicable goals and for Executive’s personal goals/ key initiatives, based on Executive’s assumed target level performance, if the Executive had remained employed through the end of such calendar year; provided however, that such amount shall be adjusted on a Pro Rata basis;
(D)    continuation of the Executive’s medical, dental, vision, and Company-paid basic life insurance coverage for 24 months.  These benefits shall be provided by the Company to the Executive beginning immediately upon the Date of Termination.  Such benefits shall be provided to the Executive at the same coverage level and cost to the Executive as in effect immediately prior to the Executive’s Date of Termination.  Notwithstanding the above, these medical, dental, vision and Company-paid basic life insurance benefits shall be discontinued prior to the end of the stated continuation period in the event the Executive receives substantially similar benefits from a subsequent employer, as determined solely by the Company in good faith.  For purposes of enforcing this offset provision, the Executive shall be deemed to have a duty to keep the Company informed as to the terms and conditions of any subsequent employment and the corresponding benefits earned from such employment, and shall provide, or cause to provide, to the Company in writing correct, complete, and timely information concerning the same;

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(E)    all outstanding and unvested stock options and SARs shall immediately vest and shall remain exercisable for a period of 3 months from the Date of Termination or the last day of the option term, whichever occurs first.  Additionally, from time to time, the Company may declare “blackout” periods with respect to designated employees of the Company during which such employees are prohibited from engaging in certain transactions in Company securities.  In the event that the scheduled expiration date of this option and SAR shall fall within a blackout period that has been declared by the Company and that applies to an option/SAR holder, then the expiration date shall automatically, and without further notice to the option/SAR holder, be extended until such time as fifteen (15) consecutive business days have elapsed after the scheduled expiration date without interruption by any blackout period that applied to the option/SAR holder;
(F)    all restrictions on unvested shares of restricted stock and unvested restricted stock units or deferred shares shall immediately lapse, with such shares and units becoming non-forfeitable.  The timing of the delivery of any shares on account of the vesting of any restricted share units will be determined under the terms of the Equity Incentive Plan (as most recently amended and/or restated) and the award agreements thereunder;
(G)    unearned performance shares and performance units shall become non-forfeitable at one hundred percent of target; The timing of the delivery of any shares or cash on account of the vesting of performance shares or performance units will be determined under the terms of the Equity Incentive Plan (as most recently amended and/or restated) and the award agreements thereunder; and
(H)    the Company will assist the Executive in finding other employment opportunities by providing to him, at the Company’s limited expense, reasonable professional outplacement services through the provider of the Company’s choice.  Such outplacement services shall terminate when the Executive finds other employment.  However, in no event shall such outplacement services continue for more than 24 months following the Date of Termination.
(c)    Security for Payment
(i)    Trust Agreements.  To ensure that the provisions of Sections 14(a) and 14(c) of this Agreement can be enforced by the Executive, two agreements (“Trust Agreement” and “Trust Agreement No. 2”) dated as of February 10, 1989, have been established between National City Bank, a national banking association (“Trustee”) and the Company.  The Trust Agreement sets forth the terms and conditions relating to payment from the Trust Agreement of the payments and benefits pursuant to Sections 14(a)(i)(A-D) hereof owed by the Company, and Trust Agreement No. 2 sets forth the terms and conditions relating to payment from Trust Agreement No. 2 of attorneys’ and related fees and expenses pursuant to Section 14(c) hereof owed by the Company.  Executive shall make demand on the Company for any payments due Executive pursuant to Section 14(c) hereof prior to making demand therefor on the Trustee under the Trust Agreement No. 2.  Payments by such Trustee shall discharge the Company’s liability under Section 14(c) hereof only to the extent that trust assets are used to satisfy such liability.

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(ii)    Obligation of the Company to Fund Trusts.  Upon the earlier to occur of (X) a Change in Control that involves a transaction that was not approved by the Board, and was not recommended to the Company’s shareholders by the Board, (Y) a declaration by the Board that the Trusts should be funded in connection with a Change in Control that involves a transaction that was approved by the Board, or was recommended to shareholders by the Board, or (Z) a declaration by the Board that a Change in Control is imminent, the Company shall promptly to the extent it has not previously done so and to the extent the amount contributed would not be treated as property transferred in connection with the performances of services for purposes of Section 83 of the Code, as provided in Section 409A(b)(3) of the Code, and in any event within five (5) business days:
(A)    transfer to the Trustee to be added to the principal of the trust under the Trust Agreement a sum equal to the aggregate value on the date of the Change in Control of the payments and benefits which could become payable to Executive under the provisions of Sections 14(a)(i)(A-D) hereof, provided, however, that the Company shall not be required to transfer, in the aggregate, to the trust under the Trust Agreement a sum in excess of the maximum amount authorized by its Board by resolutions on February 10, 1989, which resolutions contemplate the funding of the trust under the Trust Agreement.  Any payments or benefits provided by the Trustee pursuant to the Trust Agreement shall, to the extent thereof, discharge the Company’s obligation to provide the payments and benefits under Sections 14(a)(i)(A-D) hereunder, it being the intent of the Company that assets in such Trust be held as security for the Company’s obligation to pay the payments and benefits under this Sections 14(a)(i)(A-D) of this Agreement, and
(B)    transfer to the Trustee to be added to the principal of the trust under Trust Agreement No. 2 the sum of two million dollars.  Any payments of attorneys’ and related fees and expenses, which are the obligation of the Company under Section 14(c) hereof, by the Trustee pursuant to Trust Agreement No. 2 shall, to the extent thereof, discharge the Company’s obligation hereunder, it being the intent of the Company that such assets in such Trust be held as security for the Company’s obligation under Section 14(c) hereof.
(d)    Indemnification of Legal Fees.  Effective only upon a Change in Control, it is the intent of the Company that the Executive not be required to incur the expenses associated with the enforcement of his rights following such a Change in Control under this Agreement by litigation or other legal action because the cost and expense thereof would substantially detract from the benefits intended to be extended to the Executive hereunder following a Change in Control.  Accordingly, following a Change in Control if it should appear to the Executive that the Company has failed to comply with any of its obligations under this Agreement which arose following a Change in Control or in the event that the Company or any other person takes any action to declare this Agreement void or unenforceable, or institutes any litigation designed to deny, or to recover from, the Executive the benefits intended to be provided to the Executive hereunder, the Company irrevocably authorizes the Executive from time to time to retain counsel of his choice, at the expense of the Company as hereafter provided, to represent the Executive in connection with the initiation or defense of any litigation or other legal action, whether by or against the Company, or any Subsidiary, Director, officer, stockholder or other person affiliated 

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with the Company, in any jurisdiction.  Notwithstanding any existing or prior attorney-client relationship between the Company and such counsel, the Company irrevocably consents to the Executive’s entering into an attorney-client relationship with such counsel, and in that connection the Company and the Executive agree that a confidential relationship shall exist between the Executive and such counsel.  Following a Change in Control, the Company shall pay or cause to be paid and shall be solely responsible for any and all attorneys’ and related fees and expenses incurred by the Executive as a result of the Company’s failure to perform this Agreement or any provision hereof or as a result of the Company or any person contesting the validity or enforceability of this Agreement or any provision hereof as aforesaid, provided any such reimbursement of attorneys’ and related fees and expenses shall be made not later than December 31 of the year following the year in which the Executive incurred the expense.
15.    Resolution of Disputes.  
Any disputes arising under or in connection with this Agreement shall be resolved by third party mediation of the dispute and, failing that, by binding arbitration, to be held in Cleveland, Ohio, in accordance with the rules and procedures of the American Arbitration Association.  Judgment upon the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof.  The Company will pay the direct costs and expenses of such arbitration.  The Company will also reimburse the Executive for reasonable fees and expenses, including reasonable attorney’s fees, incurred by the Executive in connection with such arbitration, such reimbursement to be made monthly as such fees and expenses are incurred.  In the event Executive does not prevail at arbitration, however, Executive will re-pay to the Company any and all expenses and fees previously reimbursed by the Company.
Notwithstanding the provisions of this Section 15, the Parties agree that in the event of any dispute between the Executive and the Company as to any of the Executive’s obligations under Sections 11, 12, or 13, then the arbitration requirements of this Section 15 shall not apply, and that instead, the Parties must seek relief as to that dispute in a court of general jurisdiction in the State of Ohio to be docketed, if available, on the commercial docket of that court. The Parties hereby consent to the exclusive specific and general jurisdiction of such court.  The Executive hereby agrees that, by virtue of his work for the Company, he has purposely availed himself of the benefits and protections of the laws of the State of Ohio.   In addition, in connection with any such court action, the Executive acknowledges and agrees that the remedy at law available to the Company for breach by Executive of any of his obligations under Sections 11, 12, or 13 of this Agreement would be inadequate and that damages flowing from such a breach would not readily be susceptible to being measured in monetary terms.  Accordingly, the Executive acknowledges, consents and agrees that, in addition to any other rights or remedies which the Company may have at law, in equity or under this Agreement, upon adequate proof of the Executive’s violation of any provision of Sections 11, 12, or 13 of this Agreement, the Company shall be entitled to immediate injunctive relief and may obtain a temporary order restraining any threatened or further breach, without the necessity of proof of actual damage. For purposes of clarity, each Party shall bear his or its own costs and expenses in connection with any such litigation, unless such costs and expenses are awarded to a Party by the court in such litigation. 

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16.    Assignability; Binding Nature.  
This Agreement shall be binding upon and inure to the benefit of the Company and any successor to the Company, including without limitation any persons acquiring directly or indirectly all or substantially all of the business and/or assets of the Company whether by purchase, merger, consolidation, reorganization or otherwise (and such successor shall thereafter be deemed the “Company” for the purposes of this Agreement), but shall not otherwise be assignable, transferable or delegable by the Company.  
The Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation, reorganization or otherwise) to all or substantially all of the business and/or assets of the Company, by agreement in form and substance satisfactory to the Executive, expressly to assume and agree to perform this Agreement in the same manner and to the same extent the Company would be required to perform if no such succession had taken place.  No rights or obligations of the Executive under this Agreement may be assigned or transferred by the Executive other than his rights to compensation and benefits, which may be transferred only by will or operation of law.  This Agreement shall inure to the benefit of and be enforceable by the Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees and/or legatees. This Agreement is personal in nature and neither of the parties hereto shall, without the consent of the other, assign, transfer or delegate this Agreement or any rights or obligations hereunder except as expressly provided in Section 16 hereof.  Without limiting the generality of the foregoing, the Executive’s right to receive payments hereunder shall not be assignable, transferable or delegable, whether by pledge, creation of a security interest or otherwise, other than by a transfer by his will or by the laws of descent and distribution and, in the event of any attempted assignment or transfer contrary to this Section 16, the Company shall have no liability to pay any amount so attempted to be assigned, transferred or delegated.
17.    Entire Agreement.  
This Agreement contains the entire understanding and agreement between the Parties concerning the subject matter hereof and supersedes all prior agreements, understandings, discussions, negotiations and undertakings, whether written or oral, between the Parties with respect thereto.
18.    Amendment or Waiver.  
No provision in this Agreement may be amended unless such amendment is agreed to in writing and signed by the Executive and an authorized officer of the Company.  No waiver by either Party of any breach by the other Party of any condition or provision contained in this Agreement to be performed by such other Party shall be deemed a waiver of a similar or dissimilar condition or provision at the same or any prior or subsequent time.  Any waiver must be in writing and signed by the Executive or an authorized officer of the Company, as the case may be.
19.    Withholding.  

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The Company may withhold from any amounts payable under this Agreement all federal, state, city or other taxes as shall be required pursuant to any law or government regulation or ruling.
20.    Severability.  
In the event that any provision or portion of this Agreement shall be determined to be invalid or unenforceable for any reason, in whole or in part, the remaining provisions of this Agreement shall be unaffected thereby and shall remain in full force and effect to the fullest extent permitted by law so as to achieve the purposes of this Agreement.
21.    Survivorship.  
Except as otherwise expressly set forth in this Agreement, the respective rights and obligations of the Parties hereunder shall survive any termination of the Executive’s employment.  Except as otherwise expressly provided by this Agreement, this Agreement itself (as distinguished from the Executive’s employment) may not be terminated by either Party without the written consent of the other Party.  Upon the expiration of the term of the Agreement, the respective rights and obligations of the Parties shall survive such expiration to the extent necessary to carry out the intentions of the Parties an embodied in the rights (such as vested rights) and obligations of the Parties under this Agreement.
22.    References.
In the event of the Executive’s death or a judicial determination of his incompetence, reference in this Agreement to the Executive shall be deemed, where appropriate, to refer to his beneficiary, estate or other legal representative.
23.    Governing Law.  
This Agreement shall be governed in accordance with the laws of Ohio without reference to principles of conflict of laws. 
24.    Notices.  
All notices and other communications required or permitted hereunder shall be in writing and shall be deemed given when (a) delivered personally, (b) delivered by certified or registered mail, postage prepaid, return receipt requested or (c) delivered by overnight courier (provided that a written acknowledgment of receipt is obtained by the overnight courier) to the Party concerned at the address indicated below or to such changed address as such Party may subsequently give such notice of:
If to the Company:
Diebold, Incorporated
5995 Mayfair Road
North Canton, Ohio 44720

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Attention:  Vice President and Chief Human Resources Officer

If to the Executive:

At the last residential address known by the Company

With a Copy to:

Jonathan Cohen, Esq.
Joseph & Cohen, P.C.
1855 Market Street
San Francisco, CA  94103

25.    Heading.  
The headings of the sections contained in this Agreement are for convenience only and shall not be deemed to control or affect the meaning or construction of any provision of this Agreement.
26.    Counterparts.  
This Agreement may be executed in two or more counterparts.
27.    Code Section 409A Compliance.  
To the extent applicable, it is intended that this Agreement comply with the provisions of Section 409A of the Code.  This Agreement will be administered in a manner consistent with this intent.  References to Section 409A of the Code will include any proposed, temporary or final regulation, or any other formal guidance, promulgated with respect to such section by the U.S. Department of Treasury or the Internal Revenue Service.  Each payment or benefit to be made or provided to the Executive under the provisions of this Agreement will be considered to be a separate payment and not one of a series of payments for purposes of Section 409A of the Code.
IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first written above.
	
		
	

The Company

By:  /s/ Sheila Rutt                      
Sheila Rutt
Vice President, 
Chief Human Resources Officer
	

By: /s/ Andreas W. Mattes
Andreas W. Mattes

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