Document:

Exhibit 10.2

 

Date: June 3, 2010

 

(1)           Beta Systems Software Aktiengesellschaft

 

(2)           Beta Systems ECM Solutions GmbH

 

(3)           BancTec, Inc.

 

 

TRANSITIONAL SERVICES AGREEMENT

 

 

 

CONTENTS

 

	
Section
    	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    	
 
    
	
1.
    	
 
    	
SERVICES
    	
4
    
	
 
    	
 
    	
 
    	
 
    
	
2.
    	
 
    	
CHARGES
    	
4
    
	
 
    	
 
    	
 
    	
 
    
	
3.
    	
 
    	
KEY SALES CONTRACTS
    	
5
    
	
 
    	
 
    	
 
    	
 
    
	
4.
    	
 
    	
GENERAL OBLIGATIONS
    	
7
    
	
 
    	
 
    	
 
    	
 
    
	
5.
    	
 
    	
THE SUPPLIER’S OBLIGATIONS
    	
8
    
	
 
    	
 
    	
 
    	
 
    
	
6.
    	
 
    	
NEWCO’S OBLIGATIONS
    	
8
    
	
 
    	
 
    	
 
    	
 
    
	
7.
    	
 
    	
LIMITATION OF LIABILITY
    	
9
    
	
 
    	
 
    	
 
    	
 
    
	
8.
    	
 
    	
CONFIDENTIALITY
    	
9
    
	
 
    	
 
    	
 
    	
 
    
	
9.
    	
 
    	
DATA PROTECTION
    	
10
    
	
 
    	
 
    	
 
    	
 
    
	
10.
    	
 
    	
INTELLECTUAL PROPERTY RIGHTS
    	
11
    
	
 
    	
 
    	
 
    	
 
    
	
11.
    	
 
    	
TERM AND TERMINATION
    	
11
    
	
 
    	
 
    	
 
    	
 
    
	
12.
    	
 
    	
NOTICE
    	
13
    
	
 
    	
 
    	
 
    	
 
    
	
13.
    	
 
    	
ASSIGNMENT
    	
14
    
	
 
    	
 
    	
 
    	
 
    
	
14.
    	
 
    	
DISPUTE RESOLUTION / APPLICABLE LAWS
    	
15
    
	
 
    	
 
    	
 
    	
 
    
	
15.
    	
 
    	
GENERAL
    	
15
    

 

 

TRANSITIONAL SERVICES AGREEMENT

 

(1)            Beta Systems Software Aktiengesellschaft, with business at Alt-Moabit 90 d, 10559 Berlin, Germany, registered in the commercial register of the local court of Charlottenburg under HRB 388 74 (the Supplier);

 

(2)            Beta Systems ECM Solutions GmbH, with business address at Alt-Mohabit 90d, 10559 Berlin, Germany, registered in the commercial register of the local court of Charlottenburg under HRB 122 853 (NewCo);

 

(3)            BancTec, Inc., with its business address at 2701 E. Grauwyler Rd., Irving, TX 75061, USA, registered with the Secretary of State, Division of Corporations, Dover, Delaware under the file number 333-145255 (the Guarantor);

 

- Supplier and NewCo herein also referred to individually as Party and collectively as Parties -

 

BACKGROUND

 

(A)          Supplier, among other activities, is engaged itself and through its subsidiaries in Germany, Nigeria, Austria, the United States and elsewhere in the Enterprise Content Management business, comprising the development and sale of software products and software solutions in the area of Enterprise Content Management (ECM), especially document processing in the settlement and processing of payment transactions and other business processes, as well as the sale of scanners and sorters (the Business).

 

(B)           Supplier, after a strategic review of its business portfolio, has concluded that it desires to divest itself of the Business in the framework of a Sale and Purchase Agreement of Beta System’s ECM Business (SPA).

 

(C)           To this end, Supplier has transferred the Business to NewCo as a separate legal entity by way of a drop down (Ausgliederung zur Aufnahme) pursuant to section 123 para. 3 item 1 of the German Transformation Act (Umwandlungsgesetz) on the basis of the drop down and acquisition agreement (Ausgliederungs- und Übernahmevertrag) between Supplier and NewCo dated December 22, 2009 (roll of deeds no. 721/2009 of the notary Alexander Kollmorgen, Berlin) (the Drop Down and the Drop Down Agreement, respectively). The Drop Down became legally effective upon registration in the relevant commercial register on March 1, 2010.

 

(D)           NewCo requires and the Supplier has agreed to provide certain services to NewCo on a transitional basis subject to the terms and conditions of this agreement including all exhibits and any amendments thereto (the Agreement).

 

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(E)           Capitalized terms shall have the same meaning as defined in the SPA, unless and to the extent defined otherwise in this Agreement and/or as summarized in Exhibit (E).

 

IT IS AGREED as follows:

 

1.             SERVICES

 

1.1           The Supplier shall provide the Services as specified in Exhibit 1.1 (the Services) to NewCo or NewCo’s Group, as specified by NewCo, from the Closing Date until December 31, 2010 (the Service Term). The Services are performed as services (Dienstleistungen) within the meaning of Sections 611 et seqq. of the German Civil Code (BGB).

 

1.2           The Supplier warrants that the Services will be in all material respects provided or procured with the same standards - in particular with respect to type, scope and quality - as they were provided immediately prior to the Closing Date unless and to the extent stated otherwise in this Agreement.

 

1.3           Supplier  shall use reasonable endeavors to procure that KPMG completes and provides to NewCo by June 25, 2010 at the latest (i) its review of NewCo’s Business quarterly financial statements for the first quarter of 2010 according to IFRS and (ii) its audit of NewCo’s Business pro forma financial statements for 2009 according to IFRS. KPMG’s costs associated with the review and audit shall be borne 50 % by Supplier and 50 % by NewCo. Until June 2, 2010, NewCo shall supply to Supplier contact details of KPMG’s audit team and a scope of the requested review (reasonable in view of the proposed transaction).

 

1.4           The Supplier may perform the Services itself or through companies of the Supplier’s Group, and in the latter case the Supplier shall procure that the relevant companies in the Supplier’s Group shall perform those obligations.

 

1.5           NewCo can request from Supplier and Supplier will provide additional services not covered by this Agreement. The Parties will in any case agree in writing on the scope and, if necessary, on further details of such additional services before Supplier starts performing such services. NewCo will pay such services on a time and material basis after receiving a proper invoice from Supplier detailing the work carried out by Supplier. For the avoidance of doubt, such payments are not subject to the maximum aggregate amount of Service Charges as detailed in Section 2.1.

 

2.             CHARGES

 

2.1           NewCo shall pay the Service Charges to the Supplier in the amount of [*.*] (in words: [*.*]) per month and in accordance with this Section 2. The maximum aggregate amount of Service Charges to be paid by NewCo under this Agreement shall amount to a total of [*.*] (in words: [*.*]).

 

[*.*]  Confidential treatment requested:  Information for which confidential treatment has been requested is omitted and is noted with “[*.*].” An unredacted version of this document has been filed separately with the Securities and Exchange Commission.

 

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2.2           To the extent NewCo requests from Supplier additional services not covered by this Agreement, NewCo will pay such services on a time and material basis after receiving a proper invoice from Supplier detailing the work carried out by Supplier.

 

2.3           Payment of the Service Charges shall be made in Euro and to the Seller’s Account (as defined in the SPA).

 

2.4           NewCo shall pay the Service Charges due under this Agreement monthly in arrears. All fees payable under this Agreement are exclusive of VAT, which shall be borne by NewCo.

 

2.5           The Supplier shall invoice NewCo at the beginning of each month for the Services provided to NewCo during the previous month. NewCo shall make payment in full of all invoices within 30 (thirty) calendar days of receipt of each invoice.

 

3.             KEY SALES CONTRACTS

 

3.1           The Parties have identified certain project contracts as key sales contracts for the Business. A list of these project contracts is attached as Exhibit 3.1 (each a Key Sales Contract and together the Key Sales Contracts).

 

3.2           Until December 31, 2010, the Parties will cooperate with one another and use all reasonable endeavors to secure the Key Sales Contracts by executing sales orders (each individually a Sales Order and together the Sales Orders) as set out in Exhibit 3.1 for each Key Sales Contract.

 

3.3           If, based on a Key Sales Contract, one or more Sales Orders are signed until December 31, 2010, the Supplier is entitled to receive a commission (the Commission) of [*.*] of the incremental revenue (total contract value minus existing annual maintenance for period of contract as prior to Closing Accounts Date, with examples detailed for the Closing Accounts Date in Exhibit 3.1) as calculated for that contract at the time of the signing of the Sales Order (the Calculated Gross Margin).

 

3.4           The Supplier shall invoice NewCo at the beginning of each quarter for the Commissions accrued in the previous quarter. The payment of each Commission shall become due and payable as provided for in the payment schedule as agreed with the respective customer according to the respective Sales Order.

 

3.5           Should the Calculated Gross Margin for the respective Key Sales Contract be below the minimum gross margin indicated in Exhibit 3.1 for the specific Key Sales Contract (the Minimum Gross Margin), then the Seller Commission Percentage

 

[*.*]  Confidential treatment requested:  Information for which confidential treatment has been requested is omitted and is noted with “[*.*].” An unredacted version of this document has been filed separately with the Securities and Exchange Commission.

 

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shall be reduced on a pro rata basis to the extent the Calculated Gross Margin falls short of the Minimum Gross Margin. The Calculated Gross Margin shall be calculated by NewCo applying the same standards as used by the Business prior to the Closing Date when calculating gross margins. NewCo shall provide Supplier with all information and documents necessary for an assessment of the calculation of the Calculated Gross Margin within ten (10) working days after the signing of each Sales Order. Supplier may raise objections against NewCo’s calculation within 10 (ten) working days after receipt of the complete information and documents from NewCo. If the Parties cannot agree on the Calculated Gross Margin in dispute within further 10 (ten) working days, each of the Parties shall have the right to request the Neutral Accounting Firm to determine the correct Calculated Gross Margin. The rules set out under Section 7.4 of the SPA shall apply mutatis mutandis.

 

3.6           For the avoidance of doubt, no commission shall be payable to the Supplier for Sales Orders executed after December 31, 2010. Should a Sales Order be signed prior to the Closing Date, the relevant project contract shall not be deemed to be a Key Sales Contract.

 

3.7           If until December 31, 2010 any personnel of the relevant sales team responsible for the relevant Key Sales Contract becomes entitled to any sales commission in relation to that Key Sales Contract (may it be based on the terms of the Key Sales Contract itself, the individual (employment) contract of that sales team member, a group agreement or for any other reason whatsoever), the Supplier shall be obliged to settle the commission payment vis-à-vis the relevant member of the sales team and shall hold free and indemnify NewCo for any cost in relation thereto.

 

3.8           In the event that

 

(a)           the Guarantor has completed its initial public offering of shares substan-tially as contemplated by the draft registration statement S1 as filed with the Securities and Exchange Commission of the United States of America on 19 April 2010 as amended from time to time,

 

or

 

(b)           NewCo has received a payment (net of tax) of at least [*.*] or payments (net of tax) totaling to at least [*.*] as consideration or prepayment in connection with the proposed contract with the [*.*] relating to the consolidation of the [*.*] document management infrastructure,

 

all outstanding amounts under this Section 3 shall become due and payable within thirty (30) Banking Days.

 

[*.*]  Confidential treatment requested:  Information for which confidential treatment has been requested is omitted and is noted with “[*.*].” An unredacted version of this document has been filed separately with the Securities and Exchange Commission.

 

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3.9           Guarantor hereby guarantees within the meaning of Sections 765 et seq. German Civil Code waiving any rights which it may have to require Seller to proceed first against or claim payment from Purchaser (verbürgt sich selbstschuldnerisch) the proper fulfillment of all of the obligations of NewCo under this Key Sales Contract provision.

 

4.             GENERAL OBLIGATIONS

 

4.1           Each Party shall provide the other Party with all reasonable assistance, access and information reasonably necessary for the performance of its obligations under this Agreement.

 

4.2           To prevent unauthorized access to or use of any Systems, each Party shall:

 

(a)           continually assess and, where relevant, report to the other any prevalent threats to the Systems arising as a result of any access granted under this Agreement; and

 

(b)           ensure that all users of the other’s Systems undertake a controlled authorization process before System access is granted, and remove access privileges in a timely manner once they are redundant.

 

4.3           If a Party detects a breach of protective measures that will (or is likely to) have a material impact on the Services or the integrity of any data or other Confidential Information on any Systems, it shall:

 

(a)           immediately act to prevent or mitigate the effects of the breach;

 

(b)           report the breach to the other Party as soon as reasonably practicable after detection; and

 

(c)           identify steps to ensure that the breach does not re-occur and report them to the other Party with undue delay.

 

4.4           The Supplier uses the same standards as immediately prior to the Closing Date in not introducing into NewCo’s System any software virus or other malicious code that might affect the Services or corrupt any data or applications on those Systems.

 

4.5           Both Parties shall at all times during the Term comply with all applicable laws, orders and regulations applicable to the respective Party. Supplier has implemented state-of-the-art proceedings and processes to prevent any violation of applicable laws, orders and regulations.

 

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5.             THE SUPPLIER’S OBLIGATIONS

 

5.1           The Supplier will at all times during the Term:

 

(a)           fully cooperate with NewCo in the provision of the Services and provide NewCo with such information and assistance as it shall require in connection with this Agreement;

 

(b)           ensure that those of its personnel whose decisions are necessary for the performance of the Services are available within reasonable time for consultation on any matter relating to the Services;

 

(c)           take all necessary steps to ensure the safety of any of the employees or contractors of NewCo who visit the premises of the Supplier, the employees and subcontractors being bound by the Suppliers’ respective rules and regulations regarding safety and security applying on the facilities or premises;

 

(d)           not use, or attempt to access or interfere with, any communications systems, information technology systems or data used by NewCo, unless authorized to do so under this Agreement. The Supplier shall indemnify NewCo against each loss, liability and cost (including reasonable legal expenses) which result from a breach of this subsection;

 

(e)           cooperate with NewCo in any reasonable security arrangements which NewCo consider necessary to prevent the Supplier, or any unauthorized third party, accessing a System or data in a manner prohibited under this Agreement; and

 

(f)            obtain and/or renew all licenses, permissions, authorizations, consents and permits necessary for the performance of its obligations under this Agreement.

 

5.2           The Supplier shall supply its own Systems as necessary to perform the Services provided, however, that NewCo supplies from its side all its own Systems necessary that the Services can be performed by Supplier.

 

6.             NEWCO’S OBLIGATIONS

 

NewCo shall at all times during the Service Term:

 

6.1           give or procure access to the facilities or premises of NewCo’s Group to the extent reasonably required by Supplier’s employees in connection with the provision of the Services and take all necessary steps to ensure the safety of any of the employees or contractors of Supplier who visit the premises of NewCo’s Group, the employees being bound by NewCo’s respective rules and regulations regarding safety and security applying on the facilities or premises;

 

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6.2           cooperate with and provide to the Supplier information (including copies of documents and data) and other assistance to the extent necessary for the Supplier to provide the Services but will in no case provide more cooperation than in all material respects with substantially the same standards - in particular with respect to type, scope and quality - as such cooperation was provided immediately prior to the Closing Date unless and to the extent stated otherwise in this Agreement.

 

7.             LIMITATION OF LIABILITY

 

7.1           The Parties are only liable for any damage, regardless of the legal grounds, if (i) in cases of slight negligence they breach a material contractual obligation (Kardinalpflicht), or (ii) the damage has been caused by gross negligence or willful intent, or (iii) a Party has assumed a guarantee, or (iv) the claim is based on damages to life, body or health, or (v) the claim is based on mandatory statutory provisions.

 

7.2           In cases of negligence, the liability shall be limited to the contractually typical foreseeable damage except such damages have been caused by the negligent Party’s managing employees or legal representatives. In case of negligence either Party’s liability under this Agreement for damages shall further be limited in total to an amount of [*.*] (in words: [*.*]). Sentence 1 and 2 of this Section 7.2 shall not apply to damages occurring in connection with Key Sales Contracts under Section 3 of this Agreement.

 

7.3           All claims for damages shall fall under the statute of limitations at the latest one year from the point of time the Party that has incurred the damage obtains knowledge of the damage or, irrespective of this knowledge, at the latest two years after the damaging event.

 

7.4           Sections 7.1 to 7.3 shall also apply in the case of any claims for damages of and against employees or agents of the Parties.

 

7.5           Neither Party shall be liable for any delay in performing or failure to perform any of its obligations under this Agreement caused by a Force Majeure Event provided such Party promptly notifies the other Party in writing of the reason for the delay or stoppage (and the likely duration). The Party prevented from performing it obligations due to a Force Majeure Event shall take reasonable steps to overcome the delay or stoppage, if this is economically reasonable.

 

[*.*]  Confidential treatment requested:  Information for which confidential treatment has been requested is omitted and is noted with “[*.*].” An unredacted version of this document has been filed separately with the Securities and Exchange Commission.

 

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8.             CONFIDENTIALITY

 

8.1           By virtue of this Agreement, each Party may have access to the other Party’s Confidential Information. Each Party agrees, both during the Term and for an unlimited period after the Term, to hold the other Party’s Confidential Information in confidence and not, without the prior written consent of the other Party, to use, disclose, copy or modify the other Party’s Confidential Information (or permit others to do so) other than as necessary for the performance of its rights and obligations under this Agreement.

 

8.2           Each Party agrees not to make the other Party’s Confidential Information available in any form to any third party, except that the Supplier may make such Confidential Information available to members of the Supplier’s Group or their legal or financial advisors and NewCo may make such Confidential Information available to members of NewCo’s Group or their legal or financial advisors on a need-to-know basis, and to use the other Party’s Confidential Information for any purpose other than the performance of its rights and obligations under this Agreement or to obtain legal or financial advise. Each Party agrees to take all reasonable steps to ensure that the other Party’s Confidential Information is not disclosed or distributed by its employees, consultants or agents in violation of the provisions of this Agreement.

 

8.3           Each Party shall give notice to the other of any unauthorized misuse, disclosure, theft or other loss of the other Party’s Confidential Information as soon as reasonably practicable after becoming aware of the same.

 

8.4           The restrictions in this Section 8 shall not apply to information which would otherwise constitute the disclosing Party’s Confidential Information but which:

 

(a)                                  is or becomes a part of the public domain through no act or omission of the other Party;

 

(b)                                 was in the other Party’s lawful possession prior to its disclosure by the disclosing Party and had not been obtained by the other Party either directly or indirectly from the disclosing Party;

 

(c)                                  is lawfully disclosed to the other Party by a third party without restriction or disclosure;

 

(d)                                 is independently developed by the other Party; or

 

(e)                                  is required by law or any regulatory body or any stock exchange or for the purposes of litigation, by or against either Party, to be disclosed.

 

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9.             DATA PROTECTION

 

9.1           Each Party shall comply with all applicable data protection laws with respect to the Services.

 

9.2           The Supplier will not undertake anything to process or transfer any Personal Data relating to NewCo from inside the EU/EEA to outside the EU/EEA without the prior consent of NewCo.

 

9.3           The Supplier will collect, process and use the personal data of NewCo as a commissioned agent in accordance with the instructions of NewCo (weisungsgebundene Auftragsdatenverarbeitung). For the fulfilment of the commissioned data processing the Parties will enter into a separate data processing agreement. NewCo will retain the full control over such Personal Data.

 

9.4           The Supplier will only act on instructions from NewCo with respect to collection, processing and use of the Personal Data. The Supplier will implement appropriate technical and organisational measures in line with the applicable data protection laws to protect the Personal Data against unauthorised or unlawful use or access as well as against accidental loss or destruction of or damage to the Personal Data. NewCo will verify that the regulations of data protection are complied with and the technical and organisational measures are observed. To the extent Personal Data is collected, processed or used, the Supplier will not use any external third party service providers for the provision of the Services.

 

10.           INTELLECTUAL PROPERTY RIGHTS

 

10.1         Nothing in this Agreement nor any use of any Intellectual Property Rights shall affect the ownership by NewCo, members of NewCo’s Group or its third party licensors of its Intellectual Property Rights. Nothing in this Agreement nor any use of any Intellectual Property Rights shall affect the ownership by the Supplier, members of the Supplier’s Group or its third party licensors of its Intellectual Property Rights.

 

10.2         Neither Party transfers, assigns, sublicenses or otherwise grants the other Party any right, title or ownership interest in any Intellectual Property Rights belonging to members of its Group or a third party under this Agreement unless expressly stated otherwise in Exhibit 1.1.

 

10.3         It is the sole responsibility of the Supplier to ensure that it holds all Intellectual Property Rights necessary to provide the Services as of Closing Date. NewCo will on the other hand hold all Intellectual Property Rights necessary that the Services can be performed by Supplier.

 

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11.           TERM AND TERMINATION

 

11.1         This Agreement commences upon the Parties signing this Agreement and shall - subject to earlier termination - terminate automatically when the final Service Term has ended.

 

11.2         If the SPA is terminated on its terms and Closing does not occur, then (i) this Agreement shall also terminate automatically, and (ii) neither Party shall have any claim under this Agreement of any nature against the other Party or members of the other Party’s group, except in relation to any rights or liabilities that have accrued before the date of termination.

 

11.3         Each Service shall be provided from the Closing Date and subject to earlier termination of this Agreement terminates automatically on the last day of the Service Term. Termination of a Service shall not relieve the Supplier from its obligations to provide the remaining Services.

 

11.4         This Agreement may be terminated immediately at the option of NewCo by written Notice if there is a change of control of the Supplier without prior written consent of the Supplier, which shall not be unreasonably withheld.

 

11.5         A Party shall be entitled to terminate this Agreement with immediate effect by written Notice to the other Party if:

 

(a)           the other Party commits any material breach of any provision of this Agreement and (in the case of a breach capable of being remedied) does not remedy such breach within 30 (thirty) days of a written request to do so;

 

(b)           the other Party is subject to circumstances which require or would require its management to file a petition for insolvency or bankruptcy or is subject to any winding-up, insolvency or bankruptcy proceedings or ceases or threatens to cease to carry on the whole or any material part of its business; or

 

(c)           any Force Majeure Event prevents the other Party from performing its obligations under this Agreement for a continuous period of one month.

 

11.6         Any termination of this Agreement pursuant to this Section 11 shall be without prejudice to any other rights or remedies to which the Parties may be entitled under this Agreement or at law.

 

11.7         If this Agreement or parts thereof are terminated for any reason:

 

(a)           each Party shall promptly return to the other Party all equipment, materials and property belonging to the other Party supplied by it in connection with the provision of the respective Services under this Agreement;

 

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(b)           each Party shall promptly return to the other Party all related documents and materials (and any copies) containing the other Party’s Confidential Information and erase all copies of the other Party’s Confidential Information from its computer systems;

 

(c)           each Party shall promptly on request certify in writing to the other that it has complied with the requirements of Sections 11.7(a)  and 11.7(b);

 

(d)           all rights, licenses and authorizations granted under this Agreement, if any, shall terminate.

 

11.8         On termination of this Agreement (howsoever arising) the following Sections shall survive and continue in full force and effect: 3; 7; 8; 11, and 14.

 

12.           NOTICE

 

12.1         Any notice or other communication to be given under or in relation to this Agreement (the Notice) shall be in writing and may be given by leaving it at or sending it by registered mail or facsimile transmission to the address or facsimile number and marked for the attention of the person (if any), in each case, set out in Section 12.2 (or as otherwise notified from time to time by Notice given in accordance with this Section). Any Notice so given shall be deemed to have been received:

 

(a)           in the case of delivery by hand, at the time of delivery;

 

(b)           in the case of post, on the third Business Day from the time of posting; and

 

(c)           in the case of facsimile transmission, at the time of dispatch,

 

provided that a Notice is, or would (but for this provision) be deemed to be, received on a day that is not a Business Day or after 4.30 p.m. on a Business Day, it shall instead be deemed to be received at 10.00 a.m. on the next Business Day following that day.

 

12.2         The addresses and facsimile numbers of the parties for the purposes of Section 12.1 are as follows:

 

If to Supplier:

 

Beta Systems Software AG
 Gernot Sagl
  Chief Executive Officer
 Alt-Moabit 90d
 10559 Berlin

 

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Germany
 Fax: +49 (0)30 726118 800

 

with a copy (for information only) to:

 

Dr Karsten Müller-Eising
 Lovells LLP
 Untermainanlage 1
 60329 Frankfurt am Main
 Germany
 Fax: +49 (0)69 96236 100

 

If to NewCo:

 

Stephen Link
  Monzastr. 4c
  63225 Langen
  Germany
  Fax: +49 (0) 6103 5071-35

 

With a copy (for information only) to:

 

Michael D. Peplow
  Jarman House
  Mathisen Way
  Poyle Road
  Colnbrook SL3  0HF
  United Kingdom
  Fax: +44 (1753) 775903

 

12.3         In providing service it shall be sufficient to prove that (as the case may be):

 

(a)           the envelope containing the Notice was properly addressed and delivered to the appropriate address; or

 

(b)           the envelope containing the Notice was posted by recorded post; or

 

(c)           the facsimile transmission was made and a facsimile transmission confirmation report was received by the sender.

 

12.4         Any Party may change its address for notices under this Section to another address by giving Notice to the other Party.

 

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13.           ASSIGNMENT

 

13.1         Neither Party shall, nor shall it purport to, assign, transfer or charge any of its rights and/or obligations under this Agreement nor grant, declare, create or dispose of any right or interest in it, or sub-contract the performance of any of its obligations under this Agreement to a third party without the prior written consent of the other Party. The approval shall not be unreasonably withheld or delayed. This restriction shall not apply to any Services the performance of which was sub-contracted to a third party before the Closing Date.

 

13.2         Each Party has the right to assign, transfer the Agreement or charge any of its rights and/or obligations under this Agreement or grant, declare, create or dispose of any right or interest in it, or sub-contract the performance of any of its obligations under this Agreement to (i) the banks financing the transactions contemplated in the SPA or (ii) any of its affiliated companies within the meaning of Sections 15 et seqq. of the German Stock Corporation Act.

 

14.           DISPUTE RESOLUTION / APPLICABLE LAWS

 

14.1         The Parties agree to attempt in good faith to settle any dispute, controversy or claim, arising out of or related to this Agreement (the Claim) by way of consultations among the Parties, which consultations shall be initiated upon written Notice by either Party to the other.

 

14.2         If the Parties cannot come to a mutually agreeable resolution of the Claim within ten (10) Business Days, either Party is entitled to start proceedings in accordance with Section 14.3.

 

14.3         This Agreement and the relationship between the Parties shall be governed by, and interpreted in accordance with German law. The UN Convention on the International Sale of Goods (CSIG) shall not apply. All disputes arising in connection with this Agreement or its validity shall be finally settled in accordance with the Arbitration Rules of the German Institution of Arbitration e.V. (DIS) in its current form as amended (in der jeweils gültigen Fassung) without recourse to the ordinary courts of law. The place of the arbitration shall be Berlin, Germany. The arbitral tribunal shall consist of three arbitrators. The language of the arbitration proceedings shall be English.  The costs of the arbitral proceedings, including those external costs incurred by the Parties and which were necessary for the proper pursuit of their claim or defence, shall be allocated to the Parties in proportion to the percentage each Party is determined by the arbitrator to have prevailed/lost in the arbitral proceedings.

 

15.           GENERAL

 

15.1         Waivers of any rights or remedies under this Agreement may only be given in writing. Failure or neglect by either Party to enforce at any time any of the provisions hereof shall not be construed nor shall be deemed to be a waiver of that Party’s rights hereunder nor in any way affect the validity of the whole or any part of this Agreement nor prejudice that Party’s rights to take subsequent action.

 

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15.2         If and to the extent that any provision of this Agreement is held to be illegal, void or unenforceable, such provision shall be given no effect and shall be deemed not to be included in this Agreement but without invalidating any of the remaining provisions of this Agreement. In this event the Parties will agree upon a valid, binding and enforceable substitute provision or provisions which shall be as close as possible to the original provision and shall re-establish an appropriate balance of the commercial interests of both Parties.

 

15.3         The Parties are independent contractors; nothing in this Agreement shall be construed to create a partnership or joint venture relationship between the Parties nor constitutes that any Party is the agent of the other Party for any purpose.

 

15.4         This Agreement supersedes all prior agreements, arrangements and undertakings between the parties and constitutes the entire agreement between the Parties relating to the subject matter hereof.  The Supplier shall not, in the absence of fraud or intent, be liable to NewCo for loss arising from or in connection with any representations, agreements, statements or undertakings made prior to the date of this Agreement other than those representations, agreements, statements or undertakings set out in this Agreement.

 

15.5         If there is any conflict between the terms in the body of this Agreement and either of the Exhibits, then the terms in the body of this Agreement shall prevail.

 

15.6         No addition or modification of any provision of this Agreement shall be binding upon the Parties unless made in writing and signed by a duly authorized representative of each of the Parties.

 

 

IN WITNESS WHEREOF the undersigned, intending to be legally bound, have duly executed this Agreement to become effective as of the date stated above.

 

Signed for and on behalf of:

 

	
Beta Systems Software   Aktiengesellschaft
    	
 
    	
Beta Systems ECM Solutions GmbH
    
	
/s/ Gernot Sagl
    	
 
    	
/s/ Bernd Johnen
    
	
 
    	
 
    	
 
    
	
Print Name
    	
Gernot Sagl
    	
 
    	
Print Name
    	
Bernd Johnen
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Position
    	
Vorstand
    	
 
    	
Position
    	
 
    

 

14

 

	
BancTec, Inc.
    	
 
    	
 
    	
 
    
	
/s/ Michael D. Peplow
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Print Name
    	
Michael   D. Peplow
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Position
    	
Vice   President BancTec
    	
 
    	
 
    	
 
    

 

15

 

Exhibit E

 

	
Agreement
    	
 
    	
shall   have the meaning as set out in the preamble
    
	
 
    	
 
    	
 
    
	
Business
    	
 
    	
shall   have the meaning as set out in the Preamble
    
	
 
    	
 
    	
 
    
	
Business   Day
    	
 
    	
means   a day which is not a Saturday or Sunday or a bank or public holiday in   Germany
    
	
 
    	
 
    	
 
    
	
Claim
    	
 
    	
shall have the meaning as set out in 16.1
    
	
 
    	
 
    	
 
    
	
Closing
    	
 
    	
shall have the meaning as set out in the SPA
    
	
 
    	
 
    	
 
    
	
Closing Date
    	
 
    	
shall have the meaning as set out in the SPA
    
	
 
    	
 
    	
 
    
	
Commission
    	
 
    	
shall have the meaning as set out in   Section 3.3
    
	
 
    	
 
    	
 
    
	
Confidential Information
    	
 
    	
means,   in relation to either Party, information (whether in oral, written or   electronic form) belonging or relating to that Party, its business affairs or   activities and/or those of any supplier to it which is not in the public   domain and which: (i) either Party has marked as confidential or   proprietary, (ii) either Party, orally or in writing, has advised the   other Party is of a confidential nature, or (iii) due to its character   or nature, a reasonable person in a like position and under like   circumstances would treat as confidential and which the other Party becomes   aware of or takes possession of as a result of this Agreement
    
	
 
    	
 
    	
 
    
	
Drop Down
    	
 
    	
shall   have the meaning as set out in the Preamble
    
	
 
    	
 
    	
 
    
	
Drop Down Agreement
    	
 
    	
shall   have the meaning as set out in the Preamble
    
	
 
    	
 
    	
 
    
	
Force Majeure Event
    	
 
    	
means   any event or circumstance beyond a Party’s reasonable control including,   without limitation, acts of God, fire, flood, extreme weather conditions,   war, terrorist attack, compliance with any law, regulation or governmental   order, strikes or lock out, internet outages, telecoms outages or power   outages which prevent, delay or hinder a Party from, or in performing its obligations   under this Agreement
    

 

16

 

	
Intellectual Property Rights
    	
 
    	
shall   have the meaning as set out in the SPA
    
	
 
    	
 
    	
 
    
	
Key   Sales Contract/s
    	
 
    	
shall   have the meaning as set out in Section 3.1
    
	
 
    	
 
    	
 
    
	
Locations
    	
 
    	
means   the locations where/for which the respective Services are provided and as   further detailed in Exhibit 1.1
    
	
 
    	
 
    	
 
    
	
Minimum   Gross Margin
    	
 
    	
shall have the meaning as set out in   Section 3.5
    
	
 
    	
 
    	
 
    
	
Notice
    	
 
    	
shall   have the meaning as set out in Section 12.1
    
	
 
    	
 
    	
 
    
	
Personal   Data
    	
 
    	
shall   have the meaning as set out in Section 3 (1) German Data Protection   Act (Bundesdatenschutzgesetz)
    
	
 
    	
 
    	
 
    
	
NewCo’s   Group
    	
 
    	
shall   mean NewCo and all affiliates of NewCo within the meaning of Sections 15 et   seqq. Of the German Stock Corporation Act (Aktiengesetz)
    
	
 
    	
 
    	
 
    
	
Sales   Order/s
    	
 
    	
shall   have the meaning as set out in Section 3.2
    
	
 
    	
 
    	
 
    
	
Seller   Commission Percentage
    	
 
    	
shall have the meaning as set out in   Section 3.3
    
	
 
    	
 
    	
 
    
	
Services
    	
 
    	
shall have the meaning as set out in   Section 1.1
    
	
 
    	
 
    	
 
    
	
Service Charges
    	
 
    	
means   the charges to be paid by NewCo to the Supplier for the Services as set out   in Exhibit 1.1 and in accordance with Section 2
    
	
 
    	
 
    	
 
    
	
Service   Term
    	
 
    	
shall have the meaning as set out in   Section 1.1
    
	
 
    	
 
    	
 
    
	
SPA
    	
 
    	
shall   have the meaning as set out in the Preamble
    
	
 
    	
 
    	
 
    
	
Supplier’s Group
    	
 
    	
shall have the same meaning as Seller’s Group as   defined in the SPA
    
	
 
    	
 
    	
 
    
	
Systems
    	
 
    	
means   any information technology and telecommunications systems, including i.a.   networks and interfaces
    
	
 
    	
 
    	
 
    
	
Term
    	
 
    	
means   the period during which this Agreement subsists and is valid and binding   between the parties as more particularly described in Section 11
    
	
 
    	
 
    	
 
    
	
VAT
    	
 
    	
means the value added tax as applicable from time   to time
    

 

17

 

EXHIBIT 1.1

 

Services Overview

 

	
 
    	
 
    	
SERVICE
    	
 
    
	
PART A
    	
 
    	
Financial   Accounting
    	
 
    
	
PART B
    	
 
    	
Human   Resources
    	
 
    
	
PART C
    	
 
    	
Technology   Infrastructure
    	
 
    

 

 

PART A                                                  FINANCIAL ACCOUNTING

 

	
Service
    	
 
    	
Accounts payables
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
· Accounting
    
	
 
    	
 
    	
· Payment procedures once a   week
    
	
 
    	
 
    	
· Travel accounting
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Accounts receivables
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
· Invoicing
    
	
 
    	
 
    	
· Deferred revenues
    
	
 
    	
 
    	
· Dunning procedures
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Bank-entries:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
· daily booking of bank   statements
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Fixed Assets   Accounting
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
· Accounting of investments   and Disposals
    
	
 
    	
 
    	
· Depreciation runs once a   month
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Taxes
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
·VAT-Run and preparation VAT   declarations once a month
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Project-Accounting   and Inventory
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
· PoC-runs once a month
    
	
 
    	
 
    	
· Calculation average prices   inventory once a month
    
	
 
    	
 
    	
· Preparation for   organisation of inventory counting
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
General ledger
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
·HR related general ledger   entries (sales commissions, overtime and vacations accruals)
    
	
 
    	
 
    	
·specific valuations   allowances
    
	
 
    	
 
    	
·Prepaid expenses
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Supplier provides   these services in respect to the design and the intension of the SPA:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
· support of the transition and the   installation of the branch office of ECM Vienna
    
	
 
    	
 
    	
· support for the ECM GmbH including the branch   offices in Vienna and Budapest
    
	
 
    	
 
    	
· The service includes a documentation of the   accounting entries as basis of monthly reporting. The services are not   including any sup- port for year end audits or quarterly reviews except such   one from the SPA.
    
	
 
    	
 
    	
· The services will be made under the Beta   common procedures, accounting rules, times frames and SAP-customising. Any   changes which leads to higher manpower-efforts are not included in this TSA.
    
	
 
    	
 
    	
· Year end tax declaration and declaration of   customs are not part of this TSA
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Until new procedures   and policies will be settled the old procedures of the Supplier are valid.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The Supplier has the   right to use room/space in Augsburg to finalise the tax audit 2003 -2006.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Supplier provides the   SAP-System for NewCo in form of a client (SAP-Mandant) within the SAP-System   of the Supplier. The Supplier
    

 

 

	
 
    	
 
    	
removes all data not   related to NewCo out of this client until the end of the Service Term.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
At the end of the   Service Term, the Supplier provides a copy of the client-data to NewCo. This   copy will contain all NewCo-data (SAP-R3) entered into the client from   January 1, 2010 untill handover of the copy, but latest until   December 31, 2010. NewCo can use this copy for archiving purpose or for   production purpose.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The Supplier   implements NewCo’s reasonable requests for identity changes to customer   communications. NewCo shall supply necessary logos and artwork.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The financial   accounting services will be provided according to the timetable attached to   this Exhibit 1.1 as and additional annex.
    
	
 
    	
 
    	
 
    
	
Excluded   Services (non-exhaustive)
    	
 
    	
Beside this Agreement   Supplier provides services under support of the external tax lawyers Austria   and Hungary, the administrative person of Budapest, the Sales staff of ECM   (collection procedure) and the project department of ECM. The costs related   to this support are not included in this TSA.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The accounting and   reporting of Beta Nigeria is not part of the TSA.
    
	
 
    	
 
    	
 
    
	
Locations
    	
 
    	
Berlin,   Augsburg
    

 

 

PART B                                                  HUMAN RESOURCES

 

	
Services
    	
 
    	
Support   and consultation activities in the following areas:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
· Managing the whole process of salary statement   (payments)
    
	
 
    	
 
    	
· Managing of working time
    
	
 
    	
 
    	
· Controlling SAP System
    
	
 
    	
 
    	
· Personnel Planning and Recuritment
    
	
 
    	
 
    	
· Personnel looking after employees
    
	
 
    	
 
    	
· Adminsitration Freelancer
    
	
 
    	
 
    	
· Personnel Measures, Employment Incentives
    
	
 
    	
 
    	
· Development of concepts
    
	
 
    	
 
    	
· Consultation of employees and managers
    
	
 
    	
 
    	
· Cooperation with Worker Council
    
	
 
    	
 
    	
· Organisation of Trainings
    
	
 
    	
 
    	
· Management of Company employee pension scheme
    
	
 
    	
 
    	
· Management of Insurance
    
	
 
    	
 
    	
· Organisation Sheet
    
	
 
    	
 
    	
· Special Projects like: Management of   short-time work and coordi antion with the job center
    
	
 
    	
 
    	
 
    
	
Locations
    	
 
    	
Berlin,   Augsburg
    

 

 

PART C                                                  TECHNOLOGY INFRASTRUCTURE

 

	
Services
    	
 
    	
· IT-Infrastruktur (Backbone, VPN, Internet,   Backup, local Servers in Augsburg, SAP-Access, Office-Hard- and Software,   E-Mail, Notes- Workflows, user helpdesk)
    
	
 
    	
 
    	
· IT-Applications   (maintenance of SAP and Notes-Workflows)
    
	
 
    	
 
    	
· Travel-Booking
    
	
 
    	
 
    	
· Purchase-Management
    
	
 
    	
 
    	
· Duty-Leasing-Cars
    
	
 
    	
 
    	
· Mobile Phones
    
	
 
    	
 
    	
· fixed phones access
    
	
 
    	
 
    	
 
    
	
Locations
    	
 
    	
Augsburg   and all further offices of system technicians in Germany
    

 

 

 

Exhibit 3.1 to the TSA

 

Key Sales Contracts Commission Scheme

 

	
Contract parameters (in EURO)
   Duration of sales contract
    	
 
    	
[*.*]
   5 Years
    	
 
    	
[*.*]
   6 years
    	
 
    	
[*.*]
   1 year
    	
 
    	
[*.*]
   5 years
    	
 
    	
Total
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Software Licenses
    	
 
    	
[*.*]
    	
 
    	
[*.*]
    	
 
    	
[*.*]
    	
 
    	
[*.*]
    	
 
    	
[*.*]
    	
 
    
	
Hardware
    	
 
    	
[*.*]
    	
 
    	
[*.*]
    	
 
    	
[*.*]
    	
 
    	
[*.*]
    	
 
    	
[*.*]
    	
 
    
	
Incremental Maintenance on Hardware + Software
    	
 
    	
[*.*]
    	
 
    	
[*.*]
    	
 
    	
[*.*]
    	
 
    	
[*.*]
    	
 
    	
[*.*]
    	
 
    
	
Professional Services
    	
 
    	
[*.*]
    	
 
    	
[*.*]
    	
 
    	
[*.*]
    	
 
    	
[*.*]
    	
 
    	
[*.*]
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total Incremental Contract Value (TiCV)
    	
 
    	
[*.*]
    	
 
    	
[*.*]
    	
 
    	
[*.*]
    	
 
    	
[*.*]
    	
 
    	
[*.*]
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Seller Commission Percentage
    	
 
    	
[*.*]
    	
 
    	
[*.*]
    	
 
    	
[*.*]
    	
 
    	
[*.*]
    	
 
    	
[*.*]
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Minimum Gross Margin excluding Seller Commission   Payment
    	
 
    	
[*.*]
    	
 
    	
[*.*]
    	
 
    	
[*.*]
    	
 
    	
[*.*]
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Compensation
    	
 
    	
[*.*]
    	
 
    	
[*.*]
    	
 
    	
[*.*]
    	
 
    	
[*.*]
    	
 
    	
[*.*]
    	
 
    

 

Values are based on outstanding offers out before Closing Date and might vary in signed contract after negotiation Scheme only applicable until December 31, 2010

 

[*.*]  Confidential treatment requested:  Information for which confidential treatment has been requested is omitted and is noted with “[*.*].” An unredacted version of this document has been filed separately with the Securities and Exchange Commission.

 

	
 
    	
Transitional Service Agreement
    	
Overperformance Scheme
    

 

 

 

BETA SYSTEMS SOFTWARE AG - 2010 TIMETABLE FOR MONTHLY AND QUARTERLY REPORTING

 

	
For month ending:
    	
 
    	
WD
    	
 
    	
May 31
    	
 
    	
Jun 30
    	
 
    	
Jul 31
    	
 
    	
Aug 31
    	
 
    	
Sep 30
    	
 
    	
Oct 31
    	
 
    	
Nov 30
    	
 
    	
Dec 31
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Invoicing &   Revenue Recognition
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Send all contract /   orders / acceptance certificates to Beta HQ
    	
 
    	
3
    	
 
    	
03. Jun
    	
 
    	
05. Jul
    	
 
    	
04. Aug
    	
 
    	
03. Sep
    	
 
    	
06. Okt
    	
 
    	
03. Nov
    	
 
    	
03. Dez
    	
 
    	
 
    	
 
    
	
Closing books for   invoicing
    	
 
    	
3
    	
 
    	
03. Jun
    	
 
    	
05. Jul
    	
 
    	
04. Aug
    	
 
    	
03. Sep
    	
 
    	
06. Okt
    	
 
    	
03. Nov
    	
 
    	
03. Dez
    	
 
    	
 
    	
 
    
	
Proceeding of defered   revenues SD-Module
    	
 
    	
4
    	
 
    	
04. Jun
    	
 
    	
07. Jul
    	
 
    	
05. Aug
    	
 
    	
06. Sep
    	
 
    	
07. Okt
    	
 
    	
04. Nov
    	
 
    	
06. Dez
    	
 
    	
 
    	
 
    
	
Closing books for FI   revenues and doubtful accounts
    	
 
    	
4
    	
 
    	
04. Jun
    	
 
    	
07. Jul
    	
 
    	
05. Aug
    	
 
    	
06. Sep
    	
 
    	
07. Okt
    	
 
    	
04. Nov
    	
 
    	
06. Dez
    	
 
    	
 
    	
 
    
	
Closing books for   POC-revenues
    	
 
    	
6
    	
 
    	
08. Jun
    	
 
    	
09. Jul
    	
 
    	
09. Aug
    	
 
    	
08. Sep
    	
 
    	
11. Okt
    	
 
    	
08. Nov
    	
 
    	
08. Dez
    	
 
    	
 
    	
 
    
	
Revenue Reporting
    	
 
    	
7
    	
 
    	
09. Jun
    	
 
    	
12. Jul
    	
 
    	
10. Aug
    	
 
    	
09. Sep
    	
 
    	
12. Okt
    	
 
    	
09. Nov
    	
 
    	
09. Dez
    	
 
    	
 
    	
 
    
	
Closing &   Reporting of Beta’s LCs
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Separat Timetable for Year End Reporting
    	
 
    
	
Send all T&E   reimbursements to Beta HQ
    	
 
    	
2
    	
 
    	
02. Jun
    	
 
    	
05. Jul
    	
 
    	
03. Aug
    	
 
    	
02. Sep
    	
 
    	
05. Okt
    	
 
    	
02. Nov
    	
 
    	
02. Dez
    	
 
    	
 
    	
 
    
	
Send all invoices to   Beta HQ
    	
 
    	
3
    	
 
    	
03. Jun
    	
 
    	
06. Jul
    	
 
    	
04. Aug
    	
 
    	
03. Sep
    	
 
    	
06. Okt
    	
 
    	
03. Nov
    	
 
    	
03. Dez
    	
 
    	
 
    	
 
    
	
LC’s Closing for Asset   Accounting
    	
 
    	
6
    	
 
    	
08. Jun
    	
 
    	
09. Jul
    	
 
    	
09. Aug
    	
 
    	
08. Sep
    	
 
    	
11. Okt
    	
 
    	
08. Nov
    	
 
    	
08. Dez
    	
 
    	
 
    	
 
    
	
LC’s Closing of the   books for expense entries & provisions
    	
 
    	
6
    	
 
    	
08. Jun
    	
 
    	
09. Jul
    	
 
    	
09. Aug
    	
 
    	
08. Sep
    	
 
    	
11. Okt
    	
 
    	
08. Nov
    	
 
    	
08. Dez
    	
 
    	
 
    	
 
    
	
Beta Africa send   Financial Statements
    	
 
    	
6
    	
 
    	
08. Jun
    	
 
    	
09. Jul
    	
 
    	
09. Aug
    	
 
    	
08. Sep
    	
 
    	
11. Okt
    	
 
    	
08. Nov
    	
 
    	
08. Dez
    	
 
    	
 
    	
 
    
	
Procceding of CO-closing   foreign LCs
    	
 
    	
7
    	
 
    	
09. Jun
    	
 
    	
12. Jul
    	
 
    	
10. Aug
    	
 
    	
09. Sep
    	
 
    	
12. Okt
    	
 
    	
09. Nov
    	
 
    	
09. Dez
    	
 
    	
 
    	
 
    
	
Procceding of CO-closing   Beta AG and LCs Germany
    	
 
    	
8
    	
 
    	
10. Jun
    	
 
    	
13. Jul
    	
 
    	
11. Aug
    	
 
    	
10. Sep
    	
 
    	
13. Okt
    	
 
    	
10. Nov
    	
 
    	
10. Dez
    	
 
    	
 
    	
 
    
	
Final Closing of   Financial Accounting
    	
 
    	
8
    	
 
    	
10. Jun
    	
 
    	
13. Jul
    	
 
    	
11. Aug
    	
 
    	
10. Sep
    	
 
    	
13. Okt
    	
 
    	
10. Nov
    	
 
    	
10. Dez
    	
 
    	
 
    	
 
    

 

	
Beta Systems Software AG
    	
 
    	
 
    	
28.05.2010
    
	
Corporate Accounting
    	
 
    	
 
    	
15:38Exhibit 10.3

 

EMPLOYMENT AGREEMENT

 

THIS AGREEMENT (“Agreement”), dated as of the Effective Date, between BancTec, Inc., a Delaware corporation (the “Company”), and J. Coley Clark (the “Executive” or “you”).

 

W I T N E S S E T H:

 

WHEREAS, the Company desires to continue to retain the services of the Executive as Chief Executive Officer and the Executive desires to provide services in such capacity to the Company, upon the terms and subject to the conditions hereinafter set forth; and

 

WHEREAS, the Compensation Committee of the Board of Directors of the Company (the “Compensation Committee”) has approved the terms of this Agreement; and

 

NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and obligations hereinafter set forth, the parties hereto, intending to be legally bound, hereby agree as follows:

 

I.                                         Employment Term. Subject to the provisions of Section IV of this Agreement, the Company hereby agrees to employ the Executive, and the Executive hereby agrees to be employed by the Company, as Chief Executive Officer of the Company for a period commencing on the Effective Date (as hereinafter defined) through the second anniversary date of the Effective Date (the “Initial Term”); provided that the term will be renewed for successive one-year periods (each, a “Renewal Term” and together with the Initial Term, the “Employment Term”) unless either party gives written notice to the other of its intent not to renew at least sixty (60) days prior to the expiration of the Initial Term or Renewal Term then in effect, as applicable, on the terms and subject to the conditions set forth in this Agreement. As used herein, the term “Effective Date” shall mean the date upon which the consummation of, and receipt of proceeds from, the Company’s offering of Common Stock shall have occurred pursuant to that certain Preliminary Offering Memorandum of the Company, dated on or about May 30, 2007 and the Final Offering Memorandum to be dated in June 2007, pursuant to which Friedman, Billings, Ramsey & Co., Inc. is acting as placement agent (the “Offering”).

 

II.                                     Duties and Extent of Services.

 

A.                                   During the Employment Term, the Executive shall serve as Chief Executive Officer of the Company, reporting to the Board of Directors of the Company (the “Board”), and, in such capacity, shall render such executive, managerial, administrative or other services as customarily are associated with and incident to such position, and as the Company may, from time to time, reasonably require consistent with such position.

 

B.                                     The Executive shall also hold such other positions and executive offices of the Company and/or of any of the Company’s subsidiaries or affiliates as may from time to time be agreed by the Executive and the Board, provided that each such position shall be commensurate with the Executive’s position as Chief Executive Officer. The Executive shall not be entitled to any compensation other than the compensation provided for herein for serving during the Employment Term in any other office or position of the Company or any of its subsidiaries or affiliates, unless the Board or the appropriate committee thereof shall specifically approve such additional compensation.

 

 

C.                                     The Executive shall be a full-time employee of the Company and shall exclusively devote all business time and efforts faithfully and competently to the Company and shall diligently perform to the best of his or her ability all of the required duties as Chief Executive Officer, and in the other positions or offices of the Company or its subsidiaries or affiliates assigned hereunder. Notwithstanding the foregoing provisions of this Section, the Executive may serve as a non-management director of such business corporations (or in a like capacity in other for-profit organizations) as the Board may approve, such approval not to be unreasonably withheld, as well as any not-for-profit organizations as the Executive may deem appropriate.

 

III.                                 Compensation.

 

A.                                   Base Salary. During the Employment Term, the Company shall pay the Executive a base salary at the annual rate of $475,000 (“Base Salary”), payable in regular installments in accordance with the Company’s customary payment practices. The Base Salary shall be subject to annual review by the Board or the Compensation Committee (or similar committee) of the Company whereupon the Base Salary may be increased (but not decreased) at their sole discretion.

 

B.                                     Annual Incentive Bonus Compensation. The Executive shall be entitled to participate in the annual Profit Share Plan (the “Bonus Plan”) at a target level that shall not be less than 100% of Base Salary. All such opportunities shall be subject to the terms and conditions of the Bonus Plan, which are incorporated herein by reference.

 

C.                                     Benefits. During the Employment Term, the Executive shall be entitled to participate in the Company’s employee benefit plans, including life insurance, medical, health and accident, disability, and vacation plans (but no less than five (5) weeks vacation per year) as in effect from time to time (collectively “Employee Benefits”), on the same basis as those benefits are generally made available to other senior executives of the Company. The Executive acknowledges that participation in such plans may result in the receipt of additional taxable income.

 

D.                                    Expenses. The Company agrees to reimburse the Executive for all reasonable and necessary travel, business entertainment and other business out-of-pocket expenses incurred or expended in connection with the performance of duties hereunder in accordance with Company policies.

 

E.                                      Equity Offering. Concurrently with the consummation of the Offering, all of the unvested stock options currently held by the Executive under the Company’s 2000 Stock Plan will be cashed out pursuant to the terms of such plan and the Executive’s stock option agreement thereunder and will be payable thirty (30) days following the closing of the Offering and the receipt by the Company of the proceeds therefrom. In the event that the Offering is successfully completed at no less than $9.50 per share for 100% of the 40,500,000 shares being offered, the Executive will also be entitled to the Sale Bonus (as set forth in that certain letter agreement, dated as of April 18, 2007, by and between the Company and the Executive), which shall be payable thirty (30) days following the closing of the Offering and the receipt by the Company of the proceeds therefrom. The Executive shall further be entitled to receive a discretionary bonus in connection with the closing of the offering; provided, however, such discretionary bonus shall be payable at the sole and absolute discretion of the Company’s Chairman and Chief Executive Officer.

 

F.                                      2007 Equity Incentive Plan. Within thirty (30) days of the consummation of the Offering, the Executive will be eligible to participate in the 2007 Equity Incentive Plan. The Executive will receive an initial grant of 750,000 options under the 2007 Equity Incentive Plan.

 

2

 

IV.                                 Termination.

 

A.                                   Termination for Cause/Resignation without Good Reason. In the event the Company terminates the Executive’s employment for Cause (as defined below), or the Executive resigns from the Company without Good Reason (as defined below), the Executive shall only be entitled to receive (i) any accrued but unpaid salary and other amounts to which the Executive otherwise is entitled hereunder prior to the date of the Executive’s termination of employment; (ii) bonus compensation earned but not paid under Section III.B. hereof that relates to any calendar year ended prior to the date of termination of employment, in accordance with the terms of the Bonus Plan; (iii) any accrued and unused vacation pay; (iv) reimbursement for any unreimbursed business expenses properly incurred by the Executive in accordance with Company policy prior to the date of the Executive’s termination; and (v) such Employee Benefits, if any, as to which the Executive (or his dependents or beneficiaries, as applicable) may be entitled under the employee benefit plans of the Company or its affiliates pursuant to the terms of such plans (the amounts described in clauses (i) through (v) hereof being referred to as the “Accrued Rights”).

 

1.                                       For purposes of this Agreement, “Cause” means:

 

a.                                       a material breach of, or the willful failure or refusal by the Executive to perform and discharge duties or obligations the Executive has agreed to perform or assume under this Agreement (other than by reason of permanent disability or death);

 

b.                                      the Executive’s failure to follow a lawful directive of the Board that is within the scope of the Executive’s duties for a period of ten (10) business days after notice from the Board specifying the performance required;

 

c.                                       any material violation by the Executive of a policy contained in the Code of Conduct of the Company or similar publication;

 

d.                                      drug or alcohol abuse by the Executive that materially affects the Executive’s performance of the Executive’s duties under this Agreement; or

 

e.                                       conviction of, or the entry of a plea of guilty or nolo contendere by the Executive for, any felony or other crime involving moral turpitude.

 

2.                                       For purposes of this Agreement, “Good Reason” means, without the Executive’s express written consent:

 

a.                                       a reduction in the Executive’s Base Salary or target bonus percentage under the Bonus Plan to less than 100% of Base Salary;

 

b.                                      any change in the position, duties, responsibilities (including reporting responsibilities) or status of the Executive that is adverse to Executive in any material respect with the Executive’s position, duties, responsibilities or status as of the Effective Date;

 

c.                                       a requirement by the Company that the Executive be based in an office that is located more than fifty (50) miles from the Executive’s principal place of employment as of the Effective Date; or

 

d.                                      any material failure on the part of the Company to comply with and satisfy the terms of this Agreement;

 

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provided, that a termination by the Executive with Good Reason shall be effective only if the Executive delivers to the Company a notice of termination for Good Reason within ninety (90) days after the Executive first learns of the existence of the circumstances giving rise to Good Reason setting forth the basis of such Good Reason termination and within thirty (30) days following delivery of such notice of termination for Good Reason, the Company has failed to cure the circumstances giving rise to Good Reason to the reasonable satisfaction of the Executive.

 

B.                                     Termination without Cause/Resignation for Good Reason. If the Executive’s employment is terminated by the Company without Cause (including, without limitation, as a result of death or permanent disability) or if the Executive resigns from the Company for Good Reason, the Executive (or his dependents or beneficiaries, as applicable) shall be entitled to receive:

 

1.                                       the Accrued Rights;

 

2.                                       a pro rata portion (based on the number of days in the period beginning on the first day of the calendar year and ending on the date of termination) of the bonus under the Bonus Plan the Executive would have received if he remained an employee of the Company through the end of the applicable calendar year, in a lump sum payment to be paid no later than two and one half (2.5) months following the end of the calendar year to which such bonuses relate (the “Pro Rata Bonus”);

 

3.                                       Two (2) years’ base salary and two times (2x) target bonus under the Bonus Plan on the termination date, to be paid in accordance with the Company’s customary payroll practice; and

 

4.                                       the right to participate at the Company’s expense, for a period of eighteen (18) months from the date of termination, in the Company’s Employee Benefits (other than vacation rights); provided, however, that this right shall terminate upon the Executive’s employment by a company offering welfare benefits, whether or not the Executive elects to receive such benefits.

 

For purposes of this Section IV.B., the Company’s failure to renew the term of Executive’s employment by providing notice prior to the end of the Initial Term or any Renewal Term (as set forth in Section I hereof) shall constitute a termination by the Company without Cause.

 

For purposes of this Section IV.B., “permanent disability” means any disability as defined under the Company’s applicable disability insurance policy or, if no such policy is available, any physical or mental disability or incapacity that renders the Executive incapable of performing the services required of Executive in accordance with the obligations under Section II hereof for a period of six (6) consecutive months or for shorter periods aggregating six (6) months during any twelve-month period, such disability to be determined by two (2) physicians appointed by the Company and reasonably acceptable to the Executive or the Executive’s legal representative.

 

C.                                     Change of Control Severance. Notwithstanding the foregoing, if the Executive’s employment is terminated by the Company without Cause (other than by reason of death or permanent disability) or if the Executive resigns from the Company for Good Reason, the Executive (or his dependents or beneficiaries, as applicable) (i) at the request of any third party participating in or causing a Change of Control (as defined below) or (ii) within one (1) year following a Change of Control, the Executive shall be entitled to receive:

 

1.                                       the Accrued Rights;

 

2.                                       the Pro Rata Bonus;

 

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3.                                       Two (2) years’ base salary and two times (2x) target bonus under the Bonus Plan at the rate in effect on the termination date, to be paid in accordance with the Company’s customary payroll practice; and

 

4.                                       at the Company’s expense, the Employee Benefits for a period of eighteen (18) months from the date of termination (other than vacation rights); provided, however, that this right shall terminate upon the Executive’s employment by a company offering welfare benefits, whether or not the Executive elects to receive such benefits.

 

For purposes of this Agreement, “Change of Control” shall have the same meaning as set forth in the BancTec, Inc. 2007 Equity Incentive Plan (the “Equity Plan”). For the avoidance of doubt, the benefits set forth in this Section IV.C. shall be in lieu of any benefits set forth in Section IV.B. herein.

 

D.                                    Immediate Vesting of Equity Incentive Awards. Notwithstanding anything to the contrary contained in the Equity Plan or other similar equity plan, if the Executive’s employment is terminated by the Company without Cause (other than by reason of death or permanent disability) or if the Executive resigns from the Company for Good Reason, all equity awards granted to the Executive during the Employment Term shall immediately vest and become immediately exercisable and shall be exercisable until the earlier to occur of (i) the end of the award term as set forth in the applicable award agreement(s) or (ii) ninety (90) days after the termination date of the Executive’s employment, after which all such awards shall expire and be of no further force or effect. The vesting and exercisability provided for in the previous sentence shall be subject to all provisions relating to post-employment exercises set forth in the applicable Equity Plan and award agreement(s).

 

V.                                     Certain Payments by the Company.

 

A.                                   In the event that any amount or benefit paid or distributed to the Executive pursuant to this Agreement, taken together with any amounts or benefits otherwise paid or distributed to the Executive by the Company or any affiliated company (collectively, the “Covered Payments”), are or become subject to the tax (the “Excise Tax”) imposed under Section 4999 of the Code, or any similar tax that may hereafter be imposed, the Company shall pay to the Executive at the time specified in Section V.B. below an additional amount (the “Tax Reimbursement Payment”) such that the net amount retained by the Executive with respect to such Covered Payments, after deduction of any Excise Tax on the Covered Payments and any Federal, state and local income or employment tax and Excise Tax on the Tax Reimbursement Payment provided for by this Section V, but before deduction for any Federal, state or local income or employment tax withholding on such Covered Payments, shall be equal to the amount of the Covered Payments.

 

B.                                     For purposes of determining whether any of the Covered Payments will be subject to the Excise Tax and the amount of such Excise Tax, such Covered Payments will be treated as “parachute payments” to the extent they exceed the “2.99 base amount threshold” within the meaning of Section 280G of the Code, and all “parachute payments” in excess of the “base amount” (as defined under Section 280G(b)(3) of the Code) shall be treated as subject to the Excise Tax, unless, and except to the extent that, in the good faith judgment of the Company’s independent certified public accountants appointed prior to the date of the change in ownership or control or tax counsel selected by such accountants (the “Accountants”), the Company has a reasonable basis to conclude that such Covered Payments (in whole or in part) either do not constitute “parachute payments” or are otherwise not subject to such Excise Tax, and the value of any non-cash benefits or any deferred payment or benefit shall be determined by the Accountants in accordance with the principles of Section 280G of the Code.

 

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C.                                     For purposes of determining the amount of the Tax Reimbursement Payment, the Executive shall be deemed to pay:

 

1.                                       Federal income taxes at the highest applicable marginal rate of Federal income taxation applicable to individuals for the calendar year in which the Tax Reimbursement Payment is to be made, and

 

2.                                       any applicable state and local income or other employment taxes at the highest applicable marginal rate of taxation applicable to individuals for the calendar year in which the Tax Reimbursement Payment is to be made, net of the maximum reduction in Federal income taxes which could be obtained by the Executive from the deduction of such state or local taxes if paid in such year.

 

D.                                    In the event that the Excise Tax is subsequently determined by the Accountants or pursuant to any proceeding or negotiations with the Internal Revenue Service to be less than the amount taken into account hereunder in calculating the Tax Reimbursement Payment made, the Executive shall repay to the Company, at the time of such determination, the portion of such prior Tax Reimbursement Payment that would not have been paid if such reduced Excise Tax had been taken into account in initially calculating such Tax Reimbursement Payment, plus interest on the amount of such repayment at the rate provided in Section 1274(b)(2)(b) of the Code. Notwithstanding the foregoing, in the event any portion of the Tax Reimbursement Payment to be refunded to the Company has been paid to any Federal, state or local tax authority, repayment thereof shall not be required until actual refund or credit of such portion has been made to the Executive, and interest payable to the Company shall not exceed interest received or credited to the Executive by such tax authority for the period it held such portion. The Executive and the Company shall mutually agree upon the course of action to be pursued (and the method of allocating the expenses thereof) if the Executive’s good faith claim for refund or credit is denied.

 

E.                                      In the event that the Excise Tax is later determined by the Accountants or pursuant to any proceeding or negotiations with the Internal Revenue Service to exceed the amount taken into account hereunder at the time the Tax Reimbursement Payment is made (including, but not limited to, by reason of any payment the existence or amount of which cannot be determined at the time of the Tax Reimbursement Payment), the Company shall make an additional Tax Reimbursement Payment in respect of such excess (plus any interest or penalty payable with respect to such excess) at the time that the amount of such excess is finally determined.

 

F.                                      The Tax Reimbursement Payment (or portion thereof) provided for in Section V.B. above shall be paid to the Executive not later than ten (10) business days following the payment of the Covered Payments; provided, however, that if the amount of such Tax Reimbursement Payment (or portion thereof) cannot be finally determined on or before the date on which payment is due, the Company shall pay to the Executive by such date an amount estimated in good faith by the Accountants to be the minimum amount of such Tax Reimbursement Payment and shall pay the remainder of such Tax Reimbursement Payment (together with interest at the rate provided in Section 1274(b)(2)(B) of the Code) as soon as the amount thereof can be determined, but in no event later than forty-five (45) calendar days after payment of the related Covered Payment. In the event that the amount of the estimated Tax Reimbursement Payment exceeds the amount subsequently determined to have been due, such excess shall constitute a loan by the Company to the Executive, payable on the fifth business day after written demand by the Company for payment (together with interest at the rate provided in Section 1274(b)(2)(B) of the Code).

 

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VI.                                 Section 409A of the Code. It is the intention of the parties to this Agreement that no payment or entitlement pursuant to this Agreement will give rise to any adverse tax consequences to the Executive under Section 409A of the Code and Department of Treasury regulations and other interpretive guidance issued thereunder, including that issued after the date hereof (collectively, “Section 409A”). The Agreement shall be interpreted to that end and, consistent with that objective and notwithstanding any provision herein to the contrary, the Company may unilaterally take any action it deems necessary or desirable to amend any provision herein to avoid the application of or excise tax under Section 409A. Further, no effect shall be given to any provision herein in a manner that reasonably could be expected to give rise to adverse tax consequences under that provision. The Company shall from time to time compile a list of “specified employees” as defined in, and pursuant to the Final Regulations under Section 409A or any successor regulation. Notwithstanding any other provision herein, if the Executive is a specified employee on the date of termination, no payment of compensation under this Agreement shall be made to the Executive during the period lasting six months from the date of termination unless the Company determines that there is no reasonable basis for believing that making such payment would cause the Executive to suffer any adverse tax consequences pursuant to Section 409A of the Code. If any payment to the Executive is delayed pursuant to the foregoing sentence, such payment instead shall be made on the first business day following the expiration of the six-month period referred to in the prior sentence. The Company shall consult with the Executive in good faith regarding implementation of this Section VI; provided that neither the Company nor its employees or representatives shall have liability to the Executive with respect thereto.

 

VII.                             Release of Claims. As a condition precedent to the receipt of any severance, change of control, death or permanent disability payments and benefits pursuant to this Agreement, the Executive, or, in the case of the Executive’s death or permanent disability that prevents the Executive from performing the Executive’s obligation under this Section VII, the Executive’s personal representative, and the Executive’s beneficiary, if applicable, will execute an effective general release of claims against the Company and its subsidiaries and affiliates and their respective directors, officers, employees, attorneys and agents; provided, however, that such effective release will not affect any right that the Executive, or in the event of the Executive’s death, the Executive’s personal representative or beneficiary, otherwise has to any payment or benefit provided for in this Agreement or to any vested benefits the Executive may have in any employee benefit plan of Company or any of its subsidiaries or affiliates, or any right the Executive has under any other agreement between the Executive and the Company or any of its subsidiaries or affiliates that expressly states that the right survives the termination of the Executive’s employment.

 

VIII.                         Confidentiality; Ownership.

 

A.                                   During the term of this Agreement, the Company may disclose to the Executive certain trade secrets, confidential or proprietary information and other knowledge, know-how, information, documents or materials owned, developed or possessed by the Company (the “Protected Information”) and the Executive agrees that the Executive shall forever keep secret and retain in strictest confidence and not divulge, disclose, discuss, copy or otherwise use or suffer to be used in any manner, except in connection with the business of the Company, its subsidiaries or affiliates and any other business or proposed business of the Company or any of its subsidiaries or affiliates, any of the Protected Information in contravention of any of the policies or procedures of the Company or any of its subsidiaries or affiliates or otherwise inconsistent with the measures taken by the Company or any of its subsidiaries or affiliates to protect their interests in any Protected Information.

 

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B.                                     The Executive agrees and acknowledges that the covenant against the unauthorized use of the Company’s Protected Information, as set forth in this Section VIII, is essential to the continued growth and stability of the Company’s business and to the continuing viability of its endeavors.

 

C.                                     The Executive acknowledges that all developments, including, without limitation, inventions (patentable or otherwise), discoveries, formulas, improvements, patents, trade secrets, designs, reports, computer software, flow charts and diagrams, procedures, data, documentation, ideas and writings and applications thereof relating to any business or planned business of the Company or any of its subsidiaries or affiliates that, alone or jointly with others, the Executive may conceive, create, make, develop, reduce to practice or acquire during the Executive’s employment with the Company or any of its subsidiaries or affiliates (collectively, the “Developments”) are works made for hire and shall remain the sole and exclusive property of the Company. The Executive hereby assigns to the Company, in consideration of the payments and benefits set forth herein hereof, all of the Executive’s right, title and interest in and to all such Developments. The Executive shall promptly and fully disclose all future material Developments to the Board of Directors of the Company and, at any time upon request and at the expense of the Company, shall execute, acknowledge and deliver to the Company all instruments that the Company shall prepare, give evidence and take all other actions that are necessary or desirable in the reasonable opinion of the Company to enable the Company to file and prosecute applications for and to acquire, maintain and enforce all letters patent and trademark registrations or copyrights covering the Developments in all countries in which the same are deemed necessary by the Company. All memoranda, notes, lists, drawings, records, files, computer tapes, programs, software, source and programming narratives and other documentation (and all copies thereof) made or compiled by the Executive or made available to the Executive concerning the Developments or otherwise concerning the business or planned business of the Company or any of its subsidiaries or affiliates shall be the property of the Company or such subsidiaries or affiliates and shall be delivered to the Company or such subsidiaries or affiliates promptly upon the expiration or termination of the Employment Term.

 

D.                                    During the Employment Term, the Company, its subsidiaries and affiliates shall have the exclusive right to use the Executive’s name and image throughout the world in its advertising and promotional materials in connection with the advertising and promotion of the Company, its subsidiaries and affiliates, and their products. Notwithstanding the foregoing, the Executive shall have the right to allow use of the Executive’s name in connection with the promotion of any charitable organization or other interest of the Executive that does not conflict with any of such Executive’s duties hereunder. After the expiration of the Employment Term, the Company, it subsidiaries and affiliates shall have the non-exclusive right in perpetuity to use the Executive’s name and image throughout the world solely in connection with promotional materials related to the history of the Company, its subsidiaries and affiliates, and their products. The consideration for such rights is the payments and benefits set forth herein. The rights conveyed hereby may be assigned by the Company, its subsidiaries or affiliates to a successor in the interest of the Company or the relevant subsidiary or affiliate or their businesses or product lines.

 

E.                                      The provisions of this Section VIII shall, without any limitation as to time, survive the expiration or termination of the Executive’s employment hereunder, irrespective of the reason for any termination.

 

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IX.                                Restrictive Covenants.

 

A.                                   During the term of the Executive’s employment with the Company and for a period of one (1) year commencing as of the effective date of termination of the Executive’s employment with the Company, the Executive shall not, directly or indirectly, without the prior written consent of the Company:

 

1.                                       directly or indirectly hire, contact, offer to hire, solicit, divert, recruit, entice away, or in any other manner persuade, or attempt to do any of the foregoing (each, a “Solicitation”), any person who is an officer or employee of the Company or any of its subsidiaries or affiliates to accept employment with a third party;

 

2.                                       engage in a Solicitation with respect to any person who was, at any time within six (6) months prior to the Solicitation, an officer or employee of the Company to work for a third party engaged, directly or indirectly, any business of the Company or any of its subsidiaries or affiliates (a “Restricted Business”), or

 

3.                                       directly or indirectly solicit, divert, entice away or in any other manner persuade, or attempt to do any of the foregoing, with (A) any actual or known prospective customer of the Company to become a customer of any third party engaged in a Restricted Business or (B) any customer, vendor or supplier to cease doing business with the Company.

 

B.                                     The Executive agrees and acknowledges that the non-solicitation covenant, as set forth in this Section IX, is essential to the continued growth and stability of the Company’s business and to the continuing viability of its endeavors and acknowledges that the Company would not retain the Executive’s services or provide him with access to its Protected Information without the covenants and promises contained herein. It is expressly understood and agreed that the Company and the Executive consider the restrictions contained in this Section IX to be reasonable and necessary for the purposes of preserving and protecting the Protected Information and other legitimate business interests of the Company; nevertheless, if any of the aforesaid restrictions is found to be unreasonable or otherwise unenforceable, the Company and the Executive intend for the restrictions therein set forth to be modified so as to be reasonable and enforceable and, as so modified, to be fully enforced.

 

X.                                    Equitable Relief. It is specifically understood and agreed that any breach by the Executive of the provisions of Sections VIII or IX hereof and the obligations referred to therein is likely to result in irreparable injury to the Company, that the remedy at law alone will be an inadequate remedy for such breach and that, in addition to any other remedy it may have, the Company shall be entitled to enforce such obligations by the Executive through both temporary and permanent injunctive relief without the requirement of posting bond, and through any other appropriate equitable relief, without the necessity of showing or proving actual damages.

 

XI.                                Deductions and Withholding. The Executive agrees that the Company or its subsidiaries or affiliates, as applicable, shall withhold from any and all compensation paid to and required to be paid to the Executive pursuant to this Agreement, all Federal, state, local and/or other taxes which the Company determines are required to be withheld in accordance with applicable statutes or regulations from time to time in effect and all amounts required to be deducted in respect of the Executive’s coverage under applicable employee benefit plans.

 

XII.                            Entire Agreement. This Agreement embodies the entire agreement of the parties with respect to the Executive’s employment, compensation, perquisites and related items and supersedes any other prior oral or written agreements, arrangements or understandings, between the Executive and the Company or any of its subsidiaries or affiliates, and any such prior agreements, arrangements or understandings are hereby terminated and of no further effect. This Agreement may not be changed or terminated orally but only by an agreement in writing signed by the parties hereto.

 

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XIII.                        Waiver. The waiver by the Company of a breach of any provision of this Agreement by the Executive shall not operate or be construed as a waiver of any subsequent breach by the Executive. The waiver by the Executive of a breach of any provision of this Agreement by the Company shall not operate or be construed as a waiver of any subsequent breach by the Company.

 

XIV.                        Governing Law; Confidential Arbitration.

 

A.                                   This Agreement shall be subject to, and governed by, the laws of the State of Texas applicable to contracts made and to be performed therein, without regard to conflict of laws principles.

 

B.                                     Except for injunctive or other equitable relief under Section X, the Executive and the Company hereby agree that any controversy or claim arising out of or relating to this Agreement, the employment relationship between the Executive and the Company, or the termination thereof, including the arbitrability of any controversy or claim, which cannot be settled by mutual agreement will be finally settled by binding arbitration in accordance with the Federal Arbitration Act (or if not applicable, the applicable state arbitration law) as follows: Any party who is aggrieved will deliver a notice to the other party setting forth the specific points in dispute. Any points remaining in dispute twenty (20) days after the giving of such notice may, upon ten (10) days’ notice to the other party, be submitted to arbitration in Dallas, Texas, pursuant to the rules then in effect of the American Arbitration Association, before a panel of three (3) neutral arbitrators licensed to practice law in Texas for at least ten (10) years. The parties agree that they shall be entitled to file dispositive motions. Any award rendered pursuant to such arbitration shall be final and conclusive on the parties thereto. The administration fees and expenses of the arbitration shall be borne equally by the parties to the arbitration, provided that each party shall pay for and bear the cost of its/his/her own experts, evidence and attorney’s fees. The arbitrators shall never have the authority to award exemplary, punitive, consequential, special or incidental damages or loss of profits to any injured party. Such arbitration and all related documents will be confidential, unless disclosure is required by law.

 

C.                                     The parties agree that any action to seek injunctive or other equitable relief under this Agreement, and any action to enforce any arbitration award hereunder, shall be exclusively filed and conducted in Dallas County, Texas.

 

XV.                            Assignability. The obligations of the Executive may not be delegated and, except with respect to the designation of beneficiaries in connection with any of the benefits payable to the Executive hereunder, the Executive may not, without the Company’s written consent thereto, assign, transfer, convey, pledge, encumber, hypothecate or otherwise dispose of this Agreement or any interest herein. Any such attempted delegation or disposition shall be null and void and without effect. The Company and the Executive agree that this Agreement and all of the Company’s rights and obligations hereunder may be assigned or transferred by the Company to and shall be assumed by and be binding upon any successor to the Company.

 

XVI.                        Severability. If any provision of this Agreement or any part thereof, including, without limitation, Sections VIII or IX hereof, as applied to either party or to any circumstances shall be adjudged by a court of competent jurisdiction to be void or unenforceable, the same shall in no way affect any other provision of this Agreement or remaining part thereof, or the validity or enforceability of this Agreement, which shall be given full effect without regard to the invalid or unenforceable part thereof. If any court construes any of the provisions of Sections VIII or IX hereof, or any part thereof, to be unreasonable because of the duration of such provision or the geographic scope thereof, such court may reduce the duration or restrict or redefine the geographic scope of such provision and enforce such provision as so reduced, restricted or redefined.

 

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XVII.                    Notices. All notices to the Company or the Executive permitted or required hereunder shall be in writing and shall be delivered personally, by telecopier, by electronic mail or by courier service providing for next-day or two-day delivery or sent by registered or certified mail, return receipt requested, to the following addresses:

 

The Company:

 

BancTec, Inc.
 2701 E. Grauwyler Rd.
 Irving, Texas 75061
 Attention: Legal Dept.
 Facsimile: (972) 821-4831

 

The Executive:

 

J. Coley Clark
 3500 Drexel
 Dallas, Texas 75205

 

Either party may change the address to which notices shall be sent by sending written notice of such change of address to the other party. Any such notice shall be deemed given, if delivered personally, upon receipt; if telecopied, when telecopied; if sent via electronic mail, when sent; if sent by courier service providing for next-day or two-day delivery, the next business day or two (2) business days, as applicable, following deposit with such courier service; and if sent by certified or registered mail, three (3) days after deposit (postage prepaid) with the U.S. mail service.

 

XVIII.                Paragraph Headings. The paragraph headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

 

XIX.                       Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which taken together shall constitute one and the same instrument.

 

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IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of May 27, 2007, to be effective and binding on the Effective Date.

 

	
 
    	
BANCTEC,   INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   JEFFREY D. CUSHMAN
    
	
 
    	
Name:
    	
Jeffrey   D. Cushman
    
	
 
    	
Title:
    	
Senior   Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
/s/   J. COLEY CLARK 
    
	
 
    	
J.   Coley Clark
    

 

 

 

FIRST AMENDMENT TO EMPLOYMENT AGREEMENT

 

This First Amendment to Employment Agreement (this “Amendment”) is made and entered into as of October 16, 2007, by and between BancTec, Inc., a Delaware corporation (the “Company”) and the undersigned executive officer of the Company (the “Executive” or “you”).

 

RECITALS:

 

WHEREAS, the parties hereto desire to amend that certain Employment Agreement between them, dated May 27, 2007 (the “Employment Agreement”), in accordance with Section 12 thereof, as provided in this Amendment.

 

NOW, THEREFORE, in exchange for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.                                       Amendment of Employment Agreement.  The parties acknowledge and agree that Section V, Subsection E and Section V, Subsection F of the Employment Agreement are hereby deleted and replaced in their entirety by the following:

 

V.                                     Certain Payments by the Company.

 

E.                                      In the event that the Excise Tax is later determined by the Accountants or pursuant to any proceeding or negotiations with the Internal Revenue Service to exceed the amount taken into account hereunder at the time the Tax Reimbursement Payment is made (including, but not limited to, by reason of any payment the existence or amount of which cannot be determined at the time of the Tax Reimbursement Payment), the Company shall make an additional Tax Reimbursement Payment in respect of such excess (plus any interest or penalty payable with respect to such excess) not later than the end of Executive’s taxable year following Executive’s taxable year in which the taxes that are subject to the audit or litigation are remitted to any Federal, state or local tax authority, or where as a result of such audit or litigation there are taxes remitted, the end of the Executive’s taxable year following the Executive’s taxable year in which the audit is completed or there is a final and nonappealable settlement or other resolution of the litigation, in accordance Treasury Regulation Section 1.409A-3(i)(1)(v).

 

F.                                      The Tax Reimbursement Payment (or portion thereof) provided for in Section V.B. above shall be paid to the Executive not later than ten (10) business days following the payment of the Covered Payments; provided, however, that if the amount of such Tax Reimbursement Payment (or portion thereof) cannot be finally determined 

 

 

on or before the date on which payment is due, the Company shall pay to the Executive by such date an amount estimated in good faith by the Accountants to be the minimum amount of such Tax Reimbursement Payment and shall pay the remainder of such Tax Reimbursement Payment (together with interest at the rate provided in Section 1274(b)(2)(B) of the Code) as soon as the amount thereof can be determined, but not later than forty-five (45) calendar days after payment of the related Covered Payment. In the event that the amount of the estimated Tax Reimbursement Payment exceeds the amount subsequently determined to have been due, such excess shall constitute a loan by the Company to the Executive, payable on the fifth business day after written demand by the Company for payment (together with interest at the rate provided in Section 1274(b)(2)(B) of the Code).  Notwithstanding the foregoing, in no event may the Tax Reimbursement Payment be paid later than the end of Executive’s taxable year next following Executive’s taxable year in which Executive remits the related taxes in accordance with Treasury Regulation Section 1.409A-3(i)(1)(v).

 

2.                                       Remainder of Employment Agreement Unchanged.  The parties hereby acknowledge and agree that except as expressly provided in Section 1 of this Amendment, the balance of the Employment Agreement remains unchanged and is hereby ratified and confirmed in all respects.

 

3.                                       Definitions.  All capitalized terms used herein which are not otherwise herein defined shall have the meanings ascribed to them in the Employment Agreement.

 

4.                                       Governing Law.  This Amendment shall be governed by and construed in accordance with the laws of the State of Texas, as applied to contracts made and performed within the State of Texas.

 

5.                                       Counterparts.  The parties hereto may sign any number of copies or counterparts of this Amendment.  Each signed copy or counterpart shall be an original, but each of them together shall represent the same agreement.

 

[The remainder of this page is intentionally left blank.]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the date first above written, to be effective and binding as of such date.

 

 

	
EXECUTIVE
    	
 
    	
BANCTEC, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
/s/   J. Coley Clark
    	
 
    	
By:
    	
/s/   Jeffrey D. Cushman
    
	
J.   Coley Clark
    	
 
    	
Jeffrey   D. Cushman
    
	
 
    	
 
    	
Senior   Vice-President and
    
	
 
    	
 
    	
Chief   Financial Officer
    

 

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SECOND AMENDMENT TO EMPLOYMENT AGREEMENT

 

This Second Amendment to Employment Agreement (this “Amendment”) is made and entered into as of June 1, 2009, by and between BancTec, Inc., a Delaware corporation (the “Company”) and the undersigned executive officer of the Company (the “Executive” or “you”).

 

RECITALS:

 

WHEREAS, the parties hereto entered into that certain (i) Employment Agreement, dated May 27, 2007 (the “Original Employment Agreement”), and (ii) First Amendment to Employment Agreement, dated October 16, 2007 (together with the Original Employment Agreement, the “Employment Agreement”); and

 

WHEREAS, the parties hereto desire to amend the Employment Agreement in accordance with Section XII thereof, as provided in this Amendment.

 

NOW, THEREFORE, in exchange for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.                                       The parties acknowledge and agree that the following is added as new Section III, Subsection G of the Employment Agreement:

 

G.                                     Immediate Vesting of Equity Incentive Awards Prior to Change of Control.  Notwithstanding anything to the contrary contained in the Equity Plan (as defined below) or other similar equity plan, if a Change of Control (as defined below) occurs, all equity awards granted to the Executive during the Employment Term shall vest and (for option grants) become immediately exercisable immediately prior to the occurrence of the Change of Control, and (for option grants) shall be exercisable until the earlier to occur of (i) the end of the award term as set forth in the applicable award agreement(s) or (ii) ninety (90) days after the termination date of the Executive’s employment, after which all such awards shall expire and be of no further force or effect.  The vesting and exercisability provided for in the previous sentence shall be subject to all provisions relating to post-employment exercises set forth in the applicable equity plan and award agreement(s).

 

2.                                       The parties acknowledge and agree that Section IV, Subsection B.2. of the Employment Agreement is hereby deleted and replaced in its entirety by the following:

 

2.                                       a pro rata portion (based on the number of days in the period beginning on the first day of the calendar year and ending on the date of termination) of the bonus under the Bonus Plan the Executive would have received if he remained an employee of the Company through the end of the applicable calendar year, in a lump sum payment to be paid as soon as practicable following

 

 

review and acceptance of the prior years’ audit by the Audit Committee of the Board or by June 30 of the year following the end of the calendar year to which such bonuses relate, whichever occurs first (the “Pro Rata Bonus”);

 

3.                                       The parties acknowledge and agree that the last paragraph of Section IV, Subsection C of the Employment Agreement is hereby deleted and replaced in its entirety by the following:

 

For purposes of this Agreement, “Change of Control” shall have the same meaning as set forth in the BancTec, Inc. 2007 Equity Incentive Plan (the “Equity Plan”).  For the avoidance of doubt, if the Executive receives severance benefits as set forth in this Section IV.C., such benefits shall be in lieu of any severance benefits set forth in Section IV.B. herein.

 

4.                                       The parties hereby acknowledge and agree that except as expressly provided above, the balance of the Employment Agreement remains unchanged and is hereby ratified and confirmed in all respects.

 

5.                                       All capitalized terms used herein which are not otherwise herein defined shall have the meanings ascribed to them in the Employment Agreement.

 

6.                                       This Amendment shall be governed by and construed in accordance with the laws of the State of Texas, as applied to contracts made and performed within the State of Texas.

 

7.                                       The parties hereto may sign any number of copies or counterparts of this Amendment.  Each signed copy or counterpart shall be an original, but each of them together shall represent the same agreement.

 

[The remainder of this page is intentionally left blank.]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the date first above written, to be effective and binding as of such date.

 

 

	
EXECUTIVE
    	
 
    	
BANCTEC, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
/s/   J. Coley Clark
    	
 
    	
By:
    	
/s/   Jeffrey D. Cushman
    
	
J.   Coley Clark
    	
 
    	
Jeffrey   D. Cushman
    
	
 
    	
 
    	
Senior   Vice President and
    
	
 
    	
 
    	
Chief   Financial Officer
    

 

[SIGNATURE PAGE TO SECOND AMENDMENT TO EMPLOYMENT AGREEMENT]

 

 

 

THIRD AMENDMENT TO EMPLOYMENT AGREEMENT

 

THIS THIRD AMENDMENT TO EMPLOYMENT AGREEMENT (this “Amendment”) is made and entered into as of January 11, 2010 (the “Effective Date”), between BancTec, Inc., a Delaware corporation (the “Company”), and J. Coley Clark (the “Executive” or “you”).

 

W I T N E S S E T H:

 

WHEREAS, the Company and the Executive are parties to that certain Employment Agreement dated May 27, 2007, as was subsequently amended by that certain First Amendment to Employment Agreement, dated October 16, 2007 and that certain Second Amendment to Employment Agreement, dated June 1, 2009 (as amended, the “Employment Agreement”);

 

WHEREAS, the Compensation Committee of the Board of Directors of the Company (the “Board”) has recommended to the Board that the Employment Agreement be further amended as stated herein; and

 

WHEREAS, the Board has approved the terms of this Amendment.

 

NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and obligations hereinafter set forth, the parties hereto, intending to be legally bound, hereby agree as follows:

 

1.             The parties acknowledge and agree that Section IV, Subsection D of the Employment Agreement is hereby deleted and replaced in its entirety with the following:

 

D.            Immediate Vesting of Equity Incentive Awards.  Notwithstanding anything to the contrary contained in the Equity Plan or other similar equity plan, if (i) the Executive’s employment is terminated by the Company without Cause (other than by reason of death or permanent disability), (ii) the Executive resigns from the Company for Good Reason, or (iii) the Executive terminates his employment with the Company and its subsidiaries on or after his 66th birthday (July 10, 2011) upon giving at least three months prior written notice of such termination, for any reason, all equity awards granted to the Executive during the Employment Term shall immediately vest and, for awards of options only, become immediately exercisable and shall be exercisable until the earlier to occur of (i) the end of the award term as set forth in the applicable award agreement(s) or (ii) ninety (90) days after the termination date of the Executive’s employment, after which all such option awards shall expire and be of no further force or effect.  The vesting and exercisability provided for in the previous sentence shall be subject to all provisions relating to post-employment exercises set forth in the applicable Equity Plan and award agreement(s).

 

 

2.             The parties hereby acknowledge and agree that except as expressly provided above, the balance of the Employment Agreement remains unchanged and is hereby ratified and confirmed in all respects.

 

3.             All capitalized terms used herein which are not otherwise herein defined shall have the meanings ascribed to them in the Employment Agreement.

 

4.             This Amendment shall be governed by and construed in accordance with the laws of the State of Texas, as applied to contracts made and performed within the State of Texas.

 

5.             The parties hereto may sign any number of copies or counterparts of this Amendment.  Each signed copy or counterpart shall be an original, but each of them together shall represent the same agreement.

 

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

 

 

	
 
    	
BANCTEC, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jeffrey D. Cushman
    
	
 
    	
Name: 
    	
Jeffrey D. Cushman
    
	
 
    	
Title:
    	
Senior Vice President and Chief 
    
	
 
    	
 
    	
Financial Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ J. Coley Clark
    
	
 
    	
J. Coley Clark
    

 

SIGNATURE PAGE TO THIRD AMENDMENT

TO EMPLOYMENT AGREEMENT

 

 

FOURTH AMENDMENT TO EMPLOYMENT AGREEMENT

 

This Fourth Amendment to Employment Agreement (this “Amendment”) is made and entered into as of March 9, 2011, by and between BancTec, Inc., a Delaware corporation (the “Company”) and the undersigned executive officer of the Company (the “Executive” or “you”).

 

RECITALS:

 

WHEREAS, the parties hereto entered into that certain (i) Employment Agreement, dated May 27, 2007 (the “Original Employment Agreement”), as previously amended (all amendments together with the Original Employment Agreement, the “Employment Agreement”); and

 

WHEREAS, the parties hereto desire to amend the Employment Agreement in accordance with Section XII thereof, as provided in this Amendment;

 

NOW, THEREFORE, in exchange for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.             The parties acknowledge and agree that subsection IV.B.2. is hereby deleted and replaced in its entirety by the following:

 

“2.           a pro rata portion (based on the number of days in the period beginning on the first day of the calendar year and ending on the date of termination) of the Executive’s annual target bonus under the Bonus Plan in effect as of the termination date, in a lump sum payment (the “Pro Rata Bonus”) in accordance with the Company’s customary severance and payroll processes,(1) to be paid upon the earlier to occur of (i) the date other executive bonuses are generally paid under such Bonus Plan for the relevant bonus measurement period or (ii) April 1 of the calendar year following the year of the termination date; and”

 

(1)  Unless such base salary or target bonus has been unilaterally reduced giving rise to a right of the Executive to resign for Good Reason, in which case the severance amount for salary and bonus calculations shall be based on the highest salary and the highest target bonus the Executive earned or was eligible to attain at any time pursuant to this Agreement.

 

 

2.             The parties acknowledge and agree that subsection IV.B.3. is hereby deleted and replaced in its entirety by the following:

 

2.             Two (2) years’ base salary as of the termination date,(2) to be paid regularly over the course of such year in accordance with the Company’s customary severance and payroll processes, and two times (2x) the annual target bonus under the Bonus Plan in effect on the termination date,(2) to be paid upon the earlier to occur of (i) the date other executive bonuses are generally paid under such Bonus Plan for the relevant bonus measurement period or (ii) April 1 of the calendar year following the year of the termination date; and

 

3.             The parties acknowledge and agree that Section IV, Subsection C.2. of the Employment Agreement is hereby deleted and replaced in its entirety by the following:

 

2.             The Pro Rata Bonus (as defined above) to be paid in a lump sum payment to be paid within fourteen (14) calendar days after the termination date in accordance with the Company’s customary payroll processes;

 

4.             The parties acknowledge and agree that subsection IV.C.3. is hereby deleted and replaced in its entirety by the following:

 

3.             Two (2) years’ base salary as of the termination date,(2) to be paid regularly over the course of such year in accordance with the Company’s customary severance and payroll processes, and two times (2x) the annual target bonus under the Bonus Plan in effect on the termination date,(2) to be paid upon the earlier to occur of (i) the date other executive bonuses are generally paid under such Bonus Plan for the relevant bonus measurement period or (ii) April 1 of the calendar year following the year of the termination date; and

 

4.             The parties hereby acknowledge and agree that except as expressly provided above, the balance of the Employment Agreement remains unchanged and is hereby ratified and confirmed in all respects.

 

(2) Unless such base salary or target bonus has been unilaterally reduced giving rise to a right of the Executive to resign for Good Reason, in which case the severance amount for salary and bonus calculations shall be based on the highest salary and the highest target bonus the Executive earned or was eligible to attain at any time pursuant to this Agreement.

 

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5.             All capitalized terms used herein which are not otherwise herein defined shall have the meanings ascribed to them in the Employment Agreement.

 

6.             This Amendment shall be governed by and construed in accordance with the laws of the State of Texas, as applied to contracts made and performed within the State of Texas.

 

7.             The parties hereto may sign any number of copies or counterparts of this Amendment.  Each signed copy or counterpart shall be an original, but each of them together shall represent the same agreement.

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the date first above written, to be effective and binding as of such date.

 

 

	
EXECUTIVE
    	
 
    	
BANCTEC,   INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
/s/   J. Coley Clark
    	
 
    	
By:
    	
/s/   Jeffrey D. Cushman
    
	
J.   Coley Clark
    	
 
    	
Jeffrey   D. Cushman
    
	
 
    	
 
    	
SVP   and Chief Financial Officer
    

 

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FIFTH AMENDMENT TO EMPLOYMENT AGREEMENT

 

This Fifth Amendment to Employment Agreement (this “Amendment”) is made and entered into as of June 22, 2011, by and between BancTec, Inc., a Delaware corporation (the “Company”) and the undersigned executive officer of the Company (the “Executive” or “you”).

 

RECITALS:

 

WHEREAS, the parties hereto entered into that certain (i) Employment Agreement, dated May 27, 2007 (the “Original Employment Agreement”), as previously amended (all amendments together with the Original Employment Agreement, the “Employment Agreement”); and

 

WHEREAS, the parties hereto desire to amend the Employment Agreement in accordance with Section XII thereof, as provided in this Amendment.

 

NOW, THEREFORE, in exchange for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.             The parties acknowledge and agree that the existing Section III., Subsection B is replaced by the following:

 

B.                                     Annual Incentive Bonus Compensation.  The Executive shall be entitled to participate in the annual Executive Incentive Plan (the “Bonus Plan”) at a target level that shall not be less than 125% of Base Salary.  All such opportunities shall be subject to the terms and conditions of the Bonus Plan, which are incorporated herein by reference.

 

2.             The parties hereby acknowledge and agree that except as expressly provided above, the balance of the Employment Agreement remains unchanged and is hereby ratified and confirmed in all respects.

 

3.             The parties hereby acknowledge and agree that except as expressly provided above, the balance of the Employment Agreement remains unchanged and is hereby ratified and confirmed in all respects.

 

4.             All capitalized terms used herein which are not otherwise herein defined shall have the meanings ascribed to them in the Employment Agreement.

 

5.             This Amendment shall be governed by and construed in accordance with the laws of the State of Texas, as applied to contracts made and performed within the State of Texas.

 

 

6.             The parties hereto may sign any number of copies or counterparts of this Amendment.  Each signed copy or counterpart shall be an original, but each of them together shall represent the same agreement.

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the date first above written, to be effective and binding as of such date.

 

	
EXECUTIVE
    	
 
    	
BANCTEC, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/   J. Coley Clark
    	
 
    	
By:
    	
/s/   Jeffrey D. Cushman
    
	
J.   Coley Clark
    	
 
    	
Jeffrey   D. Cushman
    
	
 
    	
 
    	
SVP   and Chief Financial Officer
    

 

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