Document:

Second Amendment to the Second Amended and Restated Credit Agreement

 Exhibit 10.1 
 Execution copy 
 SECOND AMENDMENT TO 
 SECOND AMENDED AND RESTATED CREDIT AGREEMENT 
 This SECOND AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”), dated as of October 11, 2006, is made by and between PINNACLE ENTERTAINMENT, INC., a Delaware corporation (the
“Borrower”), and LEHMAN COMMERCIAL PAPER INC., as administrative agent (the “Administrative Agent”) and consented to by the Lenders (as defined in the Credit Agreement referred to below) which execute a
Lender Consent (as defined below). 
 Recitals 
 Whereas, the Borrower, the Lenders, and the Administrative Agent have entered into that certain Second Amended and Restated Credit Agreement dated as of December 14, 2005 (as amended by that
First Amendment to the Second Amended and Restated Credit Agreement, dated December 22, 2005, the “Credit Agreement”). Any terms defined in the Credit Agreement and not defined in this Amendment are used herein as defined in
the Credit Agreement; 
 Whereas, the Borrower has informed the Administrative Agent that it has entered into that certain
Sands Purchase Agreement (as defined below) to purchase the membership interests in certain entities as more particularly described in the Sands Purchase Agreement; 
 Whereas, the Borrower is requesting that certain covenants be modified as specified herein if (and effective concurrently with) the acquisition of the Sands Interests (as defined below) is consummated by
the Borrower; 
 Whereas, the Required Lenders and the Administrative Agent are willing to agree to the amendments requested by
the Borrower, on the terms and conditions set forth in this Amendment; and 
 Now Therefore, in consideration of the premises
and the mutual agreements set forth herein, the Borrower, the Required Lenders, and the Administrative Agent agree as follows: 
 1.
AMENDMENTS TO CREDIT AGREEMENT. Subject to the conditions and upon the terms set forth in this Amendment and in reliance on the representations and warranties of the Borrower set forth in this Amendment, the Credit Agreement is hereby amended
as follows: 
 1.1 Amendment to Section 1. 
 (a) Section 1.1 of the Credit Agreement shall be amended by adding the following definitions in the appropriate alphabetical order:

 ““Belterra Property”: the Belterra Hotel and Casino, located in Belterra, Indiana.” 
 ““Boomtown Property”: the Boomtown Hotel and Casino, located in New Orleans, Louisiana.” 
 ““President Claims”: collectively, claims acquired in bankruptcy of President Casinos, Inc. pending in the United States Bankruptcy
Court, Eastern District of Missouri, Eastern Division.” 
  

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 ““Sands Acquisition”: the acquisition of the Sands Interests pursuant to the Sands
Purchase Agreement.” 
 ““Sands Interests”: collectively, the membership interests to be acquired pursuant to the
Sands Purchase Agreement.” 
 ““Sands Purchase Agreement”: that certain Acquisition Agreement, dated as of
September 3, 2006, by and among the Borrower, Atlantic Coast Entertainment Holdings, Inc., Ace Gaming, LLC, American Real Estate Holdings Limited Partnership, AREP Boardwalk Properties LLC, PSW properties LLC, AREH MLK LLC and Mitre Associates
LLC, as may be amended from time to time.” 
 (c) Section 1.1 of the Credit Agreement shall be amended by deleting
the period at the end of the definitions of “Pledge Agreement (General)” and “Pledge Agreement (Gaming Regulated)”, and adding the following: 
 “as may be supplemented, modified, amended, extended or supplanted from time to time.” 
 1.2 Amendment to Section 6. 
 (a) Section 6.10(d) shall be amended by adding the following before the word “promptly” therein: 
 “and subject to compliance with applicable Gaming Laws (which the Borrower agrees and agrees to cause the applicable Unrestricted
Subsidiary to pursue approvals to permit any such pledges),” 
 1.3 Amendment to Section 7.

 (a) Section 7.1(a) shall be deleted in its entirety and replaced with the following: 
  

			
	 Fiscal Quarter Ending
	  	 Consolidated
Leverage Ratio

	 After the Effective Date and on or prior to June 30, 2007
	  	7.00
	 After June 30, 2007 and on or prior December 31, 2007
	  	7.50
	 After December 31, 2007 and on or prior to March 31, 2008
	  	7.25
	 After March 31, 2008 and on or prior to December 31, 2008
	  	7.00
	 After December 31, 2008 and on or prior to March 31, 2009
	  	6.50
	 After March 31, 2009 and on or prior to June 30, 2009
	  	6.00
	 After June 30, 2009 and on or prior to December 31, 2009
	  	5.50
	 Thereafter
	  	5.00

  

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 (b) Section 7.1(c) shall be deleted in its entirety and replaced with the following:

  

			
	 Fiscal Quarter Ending
	  	 Consolidated Senior Debt Ratio

	 After the Effective Date and on or prior to December 31, 2006
	  	3.50
	 After December 31, 2006 and on or prior to March 31, 2007
	  	4.00
	 After March 31, 2007 and on or prior to June 30, 2007
	  	4.50
	 After June 30, 2007 and on or prior to September 30, 2007
	  	5.00
	 After September 30, 2007 and on or prior to June 30, 2008
	  	5.25
	 After June 30, 2008 and on or prior to December 31, 2008
	  	5.00
	 After December 31, 2008 and on or prior to March 31, 2009
	  	4.50
	 After March 31, 2009 and on or prior to June 30, 2009
	  	4.25
	 After June 30, 2009 and on or prior to September 30, 2009
	  	4.00
	 Thereafter
	  	3.50

 (c) Section 7.2(e) shall be deleted in its entirety and replaced with the
following: 
 “Guarantee Obligations made by Borrower or any of its Restricted Subsidiaries of obligations incurred in
connection with activities not inconsistent with Section 7.14 of the Borrower or any Restricted Subsidiary;” 
 (d) Section 7.4(b) shall be amended by adding the word “Restricted” before the words “Subsidiary of Borrower” at the beginning thereof. 
 (e) Section 7.7(k) shall be amended by adding the word “Restricted” before the word “Subsidiaries” therein.

 (f) The following clause (t) shall be added at the end of Section 7.7: 
 “Investments in any Unrestricted Subsidiary made in connection with or otherwise pertaining to the Sands Interests including, without limitation,
the acquisition of same and the maintenance, development and other activities relating to the property owned by the entities acquired pursuant to the Sands Purchase Agreement in an amount not to exceed $350,000,000 at any one time outstanding.”

 (g) The word “and” shall be deleted at the end of clause (r) and added at the end of clause (t) of
Section 7.7 and the following clause (u) shall be added at the end of Section 7.7: 
 “Investments made by the Borrower
in the President Claims, not to exceed $65,000,000 at any one time outstanding; it being acknowledged and agreed that Investments heretofore made for this purpose by reference to Section 7.7(k) shall be deemed to have been made pursuant to this
clause (u).” 
 (h) Section 7.9 shall be amended by deleting reference to “7.7(l)” and inserting in its
place a reference to “7.7(l), (t)”. 
  

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 (i) Section 7.16(a) shall be deleted in its entirety and replaced with the
following: 
 “(a) Capital Expenditures associated with the St. Louis City Project and/or the St. Louis County Project
which do not result in the aggregate Cash Capital Expenditures (including capitalized pre-opening expenses, and excluding capitalized interest and original land costs) associated with those projects being in excess of $850,000,000;” 

(j) Section 7.16(g) shall be deleted in its entirety and replaced with the following: 
 “(g) Capital Expenditures associated with the expansion of the Lake Charles Property which do not result in the aggregate Cash
Capital Expenditures associated with that project being in excess of $60,000,000;” 
 (k) The word “and” shall
be deleted at the end of clause (h) in Section 7.16 and the following clauses (j) and (k) shall be added at the end of Section 7.16: 
 “(j) Capital Expenditures associated with the expansion of the Belterra Property which do not result in the aggregate Cash Capital
Expenditures associated with that project being in excess of $50,000,000; and” 
 “(k) Capital Expenditures
associated with the expansion of the Boomtown Property which do not result in the aggregate Cash Capital Expenditures associated with that project being in excess of $40,000,000.” 
 2. REPRESENTATIONS AND WARRANTIES OF THE BORROWER. In order to induce the Administrative Agent to enter into this Amendment and the Required
Lenders to execute the Lender Consents, the Borrower represents and warrants to each Lender and the Administrative Agent that: 
 2.1 Organizational Power; Authorization; Enforceable Obligations. The Borrower has the organizational power and authority, and the legal right, to make, deliver and perform this Amendment and each Subsidiary Guarantor has the
organizational power and authority, and the legal right, to make, deliver and perform the Consent of Guarantors in the form of Exhibit A attached hereto (the “Consent”). Each Loan Party has taken all necessary corporate or
other action to authorize the execution, delivery, and performance of this Amendment and the Consent, as applicable, and the performance of the Loan Documents to which it is a party as modified by this Amendment. Subject to any notifications
required under Gaming Laws or securities laws, no consent or authorization of, filing with, notice to, or other act by or in respect of, any Governmental Authority or any other Person, is required in connection with the execution, delivery,
performance, validity, or enforceability of this Amendment, the Consent, and the Loan Documents as modified by this Amendment. This Amendment and the Consent have each been duly executed and delivered on behalf of each Loan Party that is a party
thereto. This Amendment, the Consent, and the Loan Documents, as amended by this Amendment, constitute a legal, valid and binding obligation of each Loan Party that is a party thereto, enforceable against each such Loan Party in accordance with its
terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general equitable principles (whether enforcement is
sought by proceedings in equity or at law). 
 2.2 No Legal Bar. The execution, delivery and performance of this
Amendment, the Consent and the Loan Documents, as modified by this Amendment, will not violate in any 

  

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material respect any Requirement of Law or any Contractual Obligation of the Borrower or any of its Subsidiaries and will not result in, or require, the
creation or imposition of any Lien on any of their respective properties or revenues pursuant to any Requirement of Law or any such Contractual Obligation (other than the Liens created by the Security Documents or permitted thereunder). No
Requirement of Law or Contractual Obligation applicable to the Borrower or any of its Subsidiaries could reasonably be expected to have a Material Adverse Effect. 
 2.3 No Default. After giving effect to this Amendment, no event has occurred, is continuing, or will result from, the
execution and delivery of this Amendment or the Consent that would constitute a Default or an Event of Default. 
 2.4
Representations and Warranties. After giving effect to this Amendment, each of the representations and warranties made by any Loan Party in or pursuant to the Loan Documents shall be true and correct in all material respects as if made
on and as of the Amendment Effective Date (as defined below). 
 2.5 Acquisition Documents. The Sands Purchase
Agreement provided to the Administrative Agent is a true and correct copy thereof, it being acknowledged and agreed that Section 4.18 shall not be applicable to the statements, information, documents or certificates contained therein.

 3. CONDITIONS TO EFFECTIVENESS OF THIS AMENDMENT. This Amendment, and the consents and approvals contained herein, shall be
effective on the date (the “Amendment Effective Date”) when each of the following conditions has been satisfied: 
 3.1 Execution of Amendment. The Borrower and the Administrative Agent shall have executed this Amendment and the Borrower shall have delivered this Amendment to the Administrative Agent. 
 3.2 Execution of Lender Consents. The Lender Consents shall have been executed and delivered to the Administrative Agent by
Lenders constituting Required Lenders. 
 3.3 Execution of Consent. Each of the Guarantors shall have executed
and delivered to the Administrative Agent the Consent of Guarantors in the form of Exhibit A attached hereto. 
 3.4
Representations and Warranties. Each of the representations and warranties made by any Loan Party in or pursuant to the Loan Documents shall be true and correct in all material respects on and as of the Amendment Effective Date as if
made on and as of such date after giving effect to this Amendment. 
 3.5 No Default. After giving effect to
this Amendment, no Default or Event of Default shall have occurred and be continuing on the Amendment Effective Date. 
 3.6
Delivery of Documents. The Administrative Agent shall have received such other documents as the Administrative Agent may reasonably request in connection with this Amendment. 
 3.7 Amendment Fee. The Administrative Agent shall have received payment in immediately available funds of the agreed upon
fee between the Administrative Agent and the Borrower in connection with this Amendment. 
  

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 3.8 Approvals. All governmental and third party approvals necessary or, in
the discretion of the Administrative Agent, advisable in connection with the transactions contemplated by this Amendment and the amendments to the other Loan Documents, if any, shall have been obtained and be in full force and effect or otherwise
applied for or requested (and the Borrower has no reason to believe that they will not be obtained in due course), and all applicable waiting periods shall have expired without any action being taken or threatened by any competent authority which
would restrain, prevent or otherwise impose adverse conditions on the amendments contemplated hereby. 
 3.9
Consummation of Sands Acquisition. The Sands Acquisition shall have been consummated pursuant to the Sands Purchase Agreement or Borrower has irrevocably committed to the consummation of the same. 
 4. EFFECT OF AMENDMENT; RATIFICATION. This Amendment is a Loan Document. From and after the date on which this Amendment becomes effective, all
references in the Loan Documents to the “Credit Agreement” shall mean the Credit Agreement as amended hereby. Except as expressly amended hereby or waived herein, the Credit Agreement and the other Loan Documents, including the Liens
granted thereunder, shall remain in full force and effect, and all terms and provisions thereof are hereby ratified and confirmed. 
 5.
BORROWER CONFIRMATION. The Borrower confirms that as amended hereby, each of the Loan Documents is in full force and effect, and that none of the Loan Parties has any defenses, setoffs or counterclaims to its Obligations. 
 6. GOVERNING LAW. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK. 
 7. NO WAIVER. Except as expressly set forth herein, the
execution, delivery and effectiveness of this Amendment does not constitute a waiver of any Default or Event of Default, amend or modify any provision of any Loan Document or constitute a course of dealing or any other basis for altering the
Obligations of any Loan Party. 
 8. INTEGRATION. The Credit Agreement (as amended by this Amendment) represents the entire agreement
of the parties with respect to the subject matter hereof, and there are no promises, undertakings, representations or warranties by the Administrative Agent or any Lender relative to the subject matter hereof not expressly set forth or referred to
herein. 
 9. CAPTIONS. The catchlines and captions herein are intended solely for convenience of reference and shall not be used to
interpret or construe the provisions hereof. 
 10. COUNTERPARTS. This Amendment may be executed by one or more of the parties to this
Amendment on any number of separate counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument. Delivery of an executed signature page of this Amendment shall be effective as delivery of a
manually executed counterpart hereof. A set of the copies of this Amendment signed by all the parties shall be lodged with the Administrative Agent. 
 [Remainder of page intentionally left blank] 
  

 6 

 IN WITNESS WHEREOF, each of the undersigned has duly executed this Amendment as of the date set
forth above. 
 BORROWER: 
  

					
	PINNACLE ENTERTAINMENT, INC., a
Delaware corporation,
		
	 By:
	 	 /s/ Stephen H. Capp

		 	 Name:
	 	 Stephen H. Capp

		 	 Title:
	 	Chief Financial Officer

  

 S-1 

 ADMINISTRATIVE AGENT: 
  

					
	LEHMAN COMMERCIAL PAPER INC.
		
	 By:
	 	 /s/ Ritam Bhalla

		 	 Name:
	 	Ritam Bhalla
		 	 Title:
	 	Authorized Signatory

  

 S-2 

 Exhibit A 
 CONSENT OF GUARANTORS 
 Each of the undersigned is a Guarantor of the Obligations of the Borrower
under the Credit Agreement and hereby (a) consents to the foregoing Amendment, (b) acknowledges that notwithstanding the execution and delivery of the foregoing Amendment, the obligations of each of the undersigned Guarantors are not
impaired or affected and the Guaranties continue in full force and effect, and (c) ratifies its Guaranty and each of the Loan Documents to which it is a party. 
 [Signature page to follow] 
  

 S-1 

 IN WITNESS WHEREOF, each of the undersigned has executed and delivered this CONSENT OF GUARANTORS as of
the 11 day of October, 2006. 
  

					
	 BILOXI CASINO CORP., a Mississippi corporation

	 CASINO MAGIC CORP., a Minnesota corporation

	 CASINO ONE CORPORATION, a Mississippi corporation

	 PNK (BOSSIER CITY), INC., a Louisiana corporation

	 ST. LOUIS CASINO CORP., a Missouri corporation

		
	 By:
	 	/s/ Stephen H. Capp
		 	Name:	 	Stephen H. Capp
		 	Title:	 	Chief Financial Officer or Treasurer

  

							
	 BELTERRA RESORT INDIANA, LLC,
 a Nevada
limited liability company

		
	By:	 	Pinnacle Entertainment, Inc., its sole member
			
		 	By:	 	/s/ Stephen H. Capp
		 		 	Name:	 	Stephen H. Capp
		 		 	Title:	 	Chief Financial Officer

  

							
	 BOOMTOWN, LLC,
 a Delaware limited liability
company

		
	 By:
	 	Pinnacle Entertainment, Inc., its sole member
			
		 	By:	 	/s/ Stephen H. Capp
		 		 	Name:	 	Stephen H. Capp
		 		 	Title:	 	Chief Financial Officer

  

									
	 OGLE HAUS, LLC,
 an Indiana limited liability
company

		
	 By:
	 	Belterra Resort Indiana, LLC, its sole member
			
		 	 By:
	 	Pinnacle Entertainment, Inc., its sole member
				
		 		 	By:	 	/s/ Stephen H. Capp
		 		 		 	Name:	 	Stephen H. Capp
		 		 		 	Title:	 	Chief Financial Officer

  

 S-2 

							
	 PNK (LAKE CHARLES), L.L.C.,
 a Louisiana
limited liability company

		
	 By:
	 	 Pinnacle Entertainment, Inc.,
 its sole
member and manager

			
		 	By:	 	/s/ Stephen H. Capp
		 		 	Name:	 	Stephen H. Capp
		 		 	Title:	 	Chief Financial Officer

  

							
	 PNK (RENO), LLC,
 a Nevada limited liability company

		
	 By:
	 	 Pinnacle Entertainment, Inc.,
 its sole
member

			
		 	By:	 	/s/ Stephen H. Capp
		 		 	Name:	 	Stephen H. Capp
		 		 	Title:	 	Chief Financial Officer

  

									
	 LOUISIANA-I GAMING,
 a Louisiana partnership in Commendam

		
	 By:
	 	 Boomtown, LLC,
 its general
partner

			
		 	 By:
	 	 Pinnacle Entertainment, Inc.,
 its sole
member

				
		 		 	By:	 	/s/ Stephen H. Capp
		 		 		 	Name:	 	Stephen H. Capp
		 		 		 	Title:	 	Chief Financial Officer

  

							
	 PNK (ES), LLC,
 a Delaware limited liability company

		
	 By:
	 	 Pinnacle Entertainment, Inc.,
 its sole
member

			
		 	By:	 	/s/ Stephen H. Capp
		 		 	Name:	 	Stephen H. Capp
		 		 	Title:	 	Chief Financial Officer

  

 S-3 

							
	
	PNK (ST. LOUIS RE), LLC,
a Delaware limited liability company
		
	 By:
	 	Pinnacle Entertainment, Inc.,
it sole member
			
		 	 By:
	 	 /s/ Stephen H. Capp

		 		 	 Name:
	 	Stephen H. Capp
		 		 	 Title:
	 	Chief Financial Officer
	
	PNK (ST. LOUIS 4S), LLC,
a Delaware limited liability company
		
	 By:
	 	Pinnacle Entertainment, Inc.,
its sole member
			
		 	 By:
	 	 /s/ Stephen H. Capp

		 		 	 Name:
	 	Stephen H. Capp
		 		 	 Title:
	 	Chief Financial Officer
	
	PNK (CHILE 1), LLC,
a Delaware limited liability company
		
	 By:
	 	 Pinnacle Entertainment, Inc,
 its sole
member

			
		 	 By:
	 	 /s/ Stephen H. Capp

		 		 	 Name:
	 	Stephen H. Capp
		 		 	 Title:
	 	Chief Financial Officer
	
	PNK (CHILE 2), LLC,
a Delaware limited liability company
		
	 By:
	 	 Pinnacle Entertainment, Inc,
 its sole
member

			
		 	 By:
	 	 /s/ Stephen H. Capp

		 		 	 Name:
	 	Stephen H. Capp
		 		 	 Title:
	 	Chief Financial Officer

  

 S-4 

			
	 YANKTON INVESTMENTS, LLC,
 a Nevada limited
liability company

		
	 By:
	 	/s/ Lynn Marie Handler
	 Name:
	 	 Lynn Marie Handler

	 Title:
	 	its sole Manager

  

 S-5 

 Exhibit B 
 LENDER CONSENT 
 Reference is made to the Second Amendment to the Second Amended and Restated Credit
Agreement, dated as of October 11, 2006 (the “Second Amendment”), between PINNACLE ENTERTAINMENT, INC., a Delaware corporation (the “Borrower”) and LEHMAN COMMERCIAL PAPER INC., as administrative agent and
consented to by the Lenders which execute a Lender Consent. Unless otherwise defined herein, terms defined in the Second Amendment and used herein shall have the meanings given to them in the Second Amendment. 
 Upon execution and delivery of this Lender Consent by the Lender signatory hereto, the undersigned hereby consents to and agrees to be bound by the
provisions of the Second Amendment. 
 THIS LENDER CONSENT SHALL BE GOVERNED BY, CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF
THE STATE OF NEW YORK. 
 Delivery of an executed signature page hereof by facsimile transmission to the Administrative Agent shall be effective as delivery
of a manually executed counterpart hereof. 
 [Signature page to follow] 
  

 S-1 

 IN WITNESS WHEREOF, the Lender has caused this Lender Consent to be duly executed and delivered by their
proper and duly authorized officers as of this ____ day of _____________, 2006. 
  

			
	[NAME OF LENDER]
		
	By:	 	  
	 Name:
	 	  
	 Title:
	 	  

  

 S-2Employment Agreement between ScanSource, Inc. and Jeffrey A. Bryson

 EXHIBIT 10.1 
 EMPLOYMENT AGREEMENT 
 THIS EMPLOYMENT AGREEMENT (hereinafter the “Agreement”) between
ScanSource, Inc., a South Carolina corporation (hereinafter, the “Company”), and Jeffery A. Bryson (hereinafter, “executive”) is effective as of October 12, 2006 (hereinafter the “Effective Date”). 
 BACKGROUND 
 The Company desires to
employ Executive in the position stated on Exhibit A and Executive is willing to serve in such capacity, in accordance with the terms and conditions of this Agreement. 
 NOW THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements set forth herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows: 
 1. Employment. On the Effective Date, Executive shall hereby be employed in the capacity
indicated above and shall have the responsibilities commensurate with such position as shall be assigned to him by the Board of Directors, CEO of the Company, or President of the Business Unit in which the Executive is assigned. 
 2. Employment Period. Unless earlier terminated herein in accordance with Section 5 hereof, Executive’s employment shall be for a term
(the “Employment Period”), beginning on the Effective Date and ending on June 30, 2008, the Employment Period End Date. 
 3.
Extent of Service. During the Employment Period, and excluding any periods of vacation and sick leave to which Executive is entitled, Executive agrees to devote his business time, attention, skill and efforts exclusively to the faithful
performance of his duties hereunder; provided, however, that it shall not be a violation of this Agreement for Executive to (i) devote reasonable periods of time to charitable and community activities and, with the approval of the
Company, industry or professional activities, and/or (ii) manage personal business interests and investments, so long as such activities do not interfere with the performance of Executive’s responsibilities under this Agreement.

 4. Compensation and Benefits. 
 (a) Base Salary. During the Employment Period, the Company will pay to Executive a base salary at the rate specified on Exhibit A to this Agreement (“Base Salary”), less normal withholdings, payable
in equal monthly or more frequent installments as are customary under the Company’s payroll practices from time to time. The Compensation Committee of the Board of Directors of the Company shall review Executive’s Base Salary
annually and in its sole discretion, subject to approval of the Board of Directors of the Company, may increase or 

 
decrease Executive’s Base Salary from year to year. The annual review of Executive’s Base Salary by the Board of Directors of the Company will
consider, among other things, Executive’s own performance and the Company’s performance. 
 (b) Incentive
Compensation, Savings and Retirement Plans. During the Employment Period, Executive shall be entitled to participate in all deferred compensation, savings and retirement plans, practices, policies and programs applicable to staff officers of the
Company (“Peer Executives”). Without limiting the foregoing, during the Employment Period, Executive will be eligible to receive certain incentive compensation (“Incentive Compensation”) based on financial and/or performance
criteria established from year to year by the Compensation Committee of the Board of Directors of the Company, as specified on Exhibit A to this Agreement. 
 (c) Welfare Benefit Plans. During the Employment Period, Executive and Executive’s eligible dependents shall be eligible for
participation in the welfare benefit plans, practices, policies and programs provided by the Company which may include, medical, prescription, dental, disability, employee life, group life, accidental death and travel accident insurance plans and
programs) (“Welfare Plans”) to the extent applicable generally to Peer Executives. Bi-weekly payroll contributions will be required by Executive. The Company reserves the right, in its sole discretion to modify, change, or eliminate its
Welfare Plans. 
 (d) Expenses. During the Employment Period, Executive shall be entitled to receive reimbursement for
all reasonable expenses incurred by Executive in accordance with the policies, practices and procedures of the Company to the extent applicable generally to Peer Executives. 
 (e) Fringe Benefits. During the Employment Period, Executive shall be entitled to fringe benefits in accordance with the plans,
practices, programs and policies of the Company in effect for Peer Executives. 
 (f) Vacation. During each fiscal
year during the Employment Period, Executive will be entitled to the number of days of paid vacation specified on Exhibit A to this Agreement. Executive may take such vacation days at the time or times Executive reasonably requests, subject to the
prior approval of the person specified on Exhibit A to this Agreement. Unused vacation time does not carry over to the next fiscal year and is not paid upon termination of employment. 
 5. Termination of Employment. 
 (a) Death, Retirement or Disability. Executive’s employment shall terminate automatically upon Executive’s death or Retirement during the Employment Period. For purposes of this Agreement,
“Retirement” shall mean normal retirement as defined in the Company’s then-current retirement plan, or if there is no such retirement plan, “Retirement” shall mean voluntary termination after age 65 with ten years of
service. If the Company determines that the Disability of Executive has occurred during the Employment Period (pursuant to the 

  

 -2- 

 
definition of Disability set forth below), it may give to Executive written notice of its intention to terminate Executive’s employment. In such event,
Executive’s employment with the Company shall terminate effective on the 30th day after receipt of such written notice by Executive (the “Disability Effective Date”), provided that, within the 30 days after such receipt, Executive
shall not have returned to full-time performance of Executive’s duties. For purposes of this Agreement, “Disability” shall mean a mental or physical disability as determined by the Board of Directors of the Company in accordance with
standards and procedures similar to those under the Company’s employee long-term disability plan, if any. At any time that the Company does not maintain such a long-term disability plan, “Disability” shall mean the inability of
Executive, as determined by the Board, to perform the essential functions of his regular duties and responsibilities, with or without reasonable accommodation, due to a medically determinable physical or mental condition which has lasted (or can
reasonably be expected to last) for twelve workweeks in any twelve-month period. At the request of Executive or his personal representative, the Board’s determination that the Disability of Executive has occurred shall be certified by two
physicians mutually agreed upon by Executive, or his personal representative, and the Company. Failing such independent certification (if so requested by Executive), Executive’s termination shall be deemed a termination by the Company without
Cause and not a termination by reason of his Disability. 
 (b) Termination by the Company. The Company may terminate
Executive’s employment during the Employment Period with or without Cause. For purposes of this Agreement, “Cause” shall mean: 
 The failure of Executive to satisfactorily perform Executive’s duties with the Company as identified in any Company policy applicable to Executive, Executive’s job description, the formal written goals and
objectives of Executive determined annually with his or her immediate supervisor, or other objective performance criteria as developed by the Company and communicated in writing to Executive (other than any such failure resulting from incapacity due
to physical or mental illness), within 30 days after a written demand for satisfactory performance is delivered to Executive by the Board of Directors, CEO of the Company or President of the Business Unit to which the Executive is assigned, which
specifically identifies the manner in which the Board, the CEO or the President believes that Executive has not satisfactorily performed Executive’s duties. The decision of whether Executive has satisfactorily performed his duties with the
Company is in the discretion of the Company; or 
 Engaging in unethical or illegal conduct or gross misconduct which is
materially injurious to the Company, whether financially or otherwise. 
 (c) Termination by Executive.
Executive’s employment may be terminated by Executive for Good Reason or no reason. For purposes of this Agreement, “Good Reason” shall mean: 
 (i) without the consent of Executive, the assignment to Executive of any duties materially inconsistent for a member of the management
team, excluding for this purpose an isolated, insubstantial, and inadvertent action not taken in bad faith and which is remedied by the Company promptly after receipt of notice thereof given by Executive; 
  

 -3- 

 (ii) a reduction by the Company in Executive’s Base Salary as in effect on the
Effective Date or as the same may be increased from time to time; 
 (iii) the failure by the Company (a) to continue in
effect any compensation plan in which Executive participates as of the Effective Date that is material to Executive’s total compensation, unless an equitable arrangement (embodied in an ongoing substitute or alternative plan) has been made with
respect to such plan, or (b) to continue Executive’s participation therein (or in such substitute or alternative plan) on a basis not materially less favorable in terms of the amount of benefits provided; 
 (iv) the Company’s requiring Executive, without his consent, to be based at any office or location other than in Greenville County,
South Carolina; 
 (v) any failure by the Company to comply with and satisfy Section 12(c) of this Agreement; or

 (vi) the material breach of this Agreement by the Company. 
 Good Reason shall not include Executive’s death or Disability. The Company shall have an opportunity to cure any claimed event of Good Reason (other than under clauses (v) above) within 30 days of notice
from Executive and the Board’s good faith determination of cure shall be binding. The Company shall notify Executive of the timely cure of any claimed event of Good Reason and the manner in which such cure was effected, and any Notice of
Termination delivered by Executive based on such claimed Good Reason shall be deemed withdrawn and shall not be effective to terminate the Agreement. 
 (d) Notice of Termination. Any termination of Executive’s employment by the Company or by Executive shall be communicated by Notice of Termination to the other party hereto given in accordance with
Section 13(f) of this Agreement. For purposes of this Agreement, a “Notice of Termination” means a written notice which (i) indicates the specific termination provision in this Agreement relied upon, including whether such
termination is for Cause or Good Reason, (ii) specifies the termination date. The failure by Executive or the Company to set forth in the Notice of Termination any fact or circumstance which contributes to a showing of Good Reason or
Cause shall not waive any right of Executive or the Company, respectively, hereunder or preclude Executive or the Company, respectively, from asserting such fact or circumstance in enforcing Executive’s or the Company’s rights hereunder.

 (e) Date of Termination. “Date of Termination” means the date specified in the Notice of Termination or,
if Executive’s employment is terminated by reason of death, Retirement or Disability, the date of death or Retirement or the Disability Effective Date, as the case may be. 
  

 -4- 

 6. Obligations of the Company upon Termination. 
 (a) Termination by Executive for Good Reason; Termination by Company Other Than for Cause, Disability or In Connection with Change of
Control. If, during the Employment Period, the Company shall terminate Executive’s employment, for other than for Cause or Disability, or Executive shall terminate employment for Good Reason within a period of 30 days after the occurrence
of the event giving rise to Good Reason, or if within 60 days after the Employment Period End Date, the Company (for reasons other than Cause or Disability) terminates the employment of Executive, and, with respect to the payments and benefits
described in clauses (i)(B) and (ii) below, only if Executive executes a Release in substantially the form of Exhibit B hereto (the “Release”): 
 Termination In Connection with Change in Control. If Executive’s employment is terminated within 12 months after, or
otherwise in contemplation of, a Change in Control, as defined in Exhibit C, and Executive’s employment is so terminated other than for Cause or Disability, then and, with respect to the payments and benefits described in clauses (i)(B)
and (ii) below, only if Executive executes a Release in substantially the form of Exhibit B hereto (the “Release”): 
 (i) within 30 days after the later of (a) Date of Termination or (b) the date Executive executes the Release (or such longer period as may be required for the Company to determine the amount of earned unpaid Incentive Compensation
under any program which is dependent on quantifying quarterly financial results), the Company shall pay to Executive in a lump sum in cash the aggregate of the following amounts: 
 (A) the sum of (1) Executive’s Base Salary earned through the Date of Termination to the extent not theretofore paid,
(2) unpaid Incentive Compensation earned to the Date of Termination; (the sum of the amounts described in clauses (1) and (2) shall be hereinafter referred to as the “Accrued Obligations”). For purposes of determining the
amount of unpaid Incentive Compensation earned in the event the Date of Termination is in the middle of a calendar quarter, the Company shall pro-rate and reduce the amount it determines would have been earned for the complete quarter, based on the
ratio of the number of days the Executive was employed in the quarter over the number of actual days in the quarter; and 
 (B) an amount equal to a multiple (the “Severance Multiple”), times the highest combined annual Base Salary and Incentive Compensation earned by Executive from the Company, including any such amounts earned but deferred, in the
last three calendar years prior to the Date of Termination (the “Severance Benefits”). The Severance Multiple shall be one (1). 
 (ii) for up to 12 months after Date of Termination, the Company will reimburse Executive for COBRA payments made by Executive which are in excess of the monthly rates paid by active employees, with respect to medical
and dental insurance benefits, but only until such time Executive is eligible to receive similar benefits under another employer- 
  

 -5- 

 
provided or group plan (which plan may be the plan of the Executive’s new employer or his spouse’s employer.) 
 (iii) to the extent not theretofore paid or provided, the Company shall timely pay or provide to Executive any other amounts or benefits
required to be paid or provided or which Executive is eligible to receive under any plan, program, policy or practice or contract or agreement of the Company (such other amounts and benefits shall be hereinafter referred to as the “Other
Benefits”) only if such Other Benefits were earned as of the Date of Termination. 
 (b) Death. If
Executive’s employment is terminated by reason of Executive’s death during the Employment Period, this Agreement shall terminate without further obligations to Executive’s legal representatives under this Agreement, other than for
payment of Accrued Obligations and the timely payment or provision of Other Benefits. Accrued Obligations shall be paid to Executive’s estate or beneficiary, as applicable, in a lump sum in cash within 30 days of the Date of Termination. With
respect to the provision of Other Benefits, the term Other Benefits as used in this Section 6(b) shall include, without limitation, and Executive’s estate and/or beneficiaries shall be entitled to receive, benefits under such plans,
programs, practices and policies relating to death benefits, if any, as are applicable to Executive on the date of his death. 
 (c) Disability. If Executive’s employment is terminated by reason of Executive’s Disability during the Employment Period, this Agreement shall terminate without further obligations to Executive, other than for payment of
Accrued Obligations and the timely payment or provision of Other Benefits. Accrued Obligations shall be paid to Executive in a lump sum in cash within 30 days of the Date of Termination. With respect to the provision of Other Benefits, the term
Other Benefits as used in this Section 6(c) shall include, without limitation disability benefits, and Executive shall be entitled after the Disability Effective Date to receive, disability and other benefits under such plans, programs,
practices and policies relating to disability, if any, as are applicable to Executive and his family on the Date of Termination. 
 (d) Retirement. If Executive’s employment is terminated by reason of Executive’s Retirement during the Employment Period, this Agreement shall terminate without further obligations to Executive, other than for payment of
Accrued Obligations and the timely payment or provision of Other Benefits. Accrued Obligations shall be paid to Executive in a lump sum in cash within 30 days of the Date of Termination. With respect to the provision of Other Benefits, the term
Other Benefits as used in this Section 6(d) shall include, without limitation retirement benefits, and Executive shall be entitled after the Date of Termination to receive, retirement and other benefits under such plans, programs,
practices and policies relating to retirement, if any, as applicable to Executive on the Date of Termination. 
 (e) Cause
or Voluntary Termination without Good Reason. If Executive’s employment is terminated for Cause during the Employment Period, or if Executive voluntarily terminates employment during the Employment Period without Good Reason, this Agreement
shall terminate without further obligations to Executive, other than for payment of Accrued Obligations. 
  

 -6- 

 (f) Normal Expiration of Employment Period. If Executive’s employment is
terminated due to the normal expiration of the Employment Period or is terminated within 60 days after the Employment Period End Date (for reasons other than Cause or Disability), this Agreement shall terminate without further obligations to
Executive, other than for payment of Accrued Obligations, Severance Benefits and the timely payment or provision of Other Benefits. Notwithstanding anything to the contrary herein, the Company is not required to provide notice if the Agreement will
not be renewed or if a new employment agreement will not be offered in a situation where the Executive will remain an employee of the Company in the same position or in a management capacity without an employment agreement but as an at-will
employee. 
 7. Non-exclusivity of Rights. Nothing in this Agreement shall prevent or limit Executive’s continuing or future
participation in any plan, program, policy or practice provided by the Company and for which Executive may qualify, nor, subject to Section 13(d), shall anything herein limit or otherwise affect such rights as Executive may have under any
contract or agreement with the Company. Amounts which are vested benefits or which Executive is otherwise entitled to receive under any plan, policy, practice or program or any contract or agreement with the Company at or subsequent to the Date of
Termination shall be payable in accordance with such plan, policy, practice or program or contract or agreement except as explicitly modified by this Agreement. 
 8 Mandatory Reduction of Payments in Certain Events. 
 (a) Anything in this Agreement
to the contrary notwithstanding, in the event it shall be determined that any benefit, payment or distribution by the Company to or for the benefit of Executive (whether paid or payable or distributed or distributable pursuant to the terms of this
Agreement or otherwise) (a “Payment”) would be subject to the excise tax (the “Excise Tax”) imposed by Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”), then, prior to the making of any
Payment to Executive, a calculation shall be made comparing (i) the net benefit to Executive of all Payments after payment of the Excise Tax, to (ii) the net benefit to Executive if the Payment had been limited to the extent necessary to
avoid being subject to the Excise Tax. If the amount calculated under (i) above is less than the amount calculated under (ii) above, then the Payments shall be limited to the extent necessary to avoid being subject to the Excise Tax (the
“Reduced Amount”). In that event, Executive shall direct which Payments are to be modified or reduced. 
 (b) The
determination of whether an Excise Tax would be imposed, the amount of such Excise Tax, and the calculation of the amounts referred to in Section 8(a)(i) and (ii) above shall be made by the Company’s regular independent
accounting firm at the expense of the Company or, at the election and expense of Executive, another nationally recognized independent accounting firm (the “Accounting Firm”) which shall provide detailed supporting calculations. Any
determination by the Accounting Firm shall be binding upon the Company and Executive. As a result of the uncertainty in the application of Section 4999 of the Code at the time of the initial determination by the Accounting Firm hereunder, it is
possible that Payments which Executive was entitled to, but did not receive pursuant to Section 8(a), could have been made without the imposition of the Excise Tax (“Underpayment”). In such event, the Accounting Firm 

  

 -7- 

 
shall determine the amount of the Underpayment that has occurred and any such Underpayment shall be promptly paid by the Company to or for the benefit of
Executive. 
 (c) In the event that the provisions of Code Section 280G and 4999 or any successor provisions are
repealed without succession, this Section 8 shall be of no further force or effect. 
 9. Costs of Enforcement. Subject to
Section 8(b), each party hereto shall pay its own costs and expenses incurred in enforcing or establishing its rights hereunder, including, without limitation, attorneys’ fees, whether the suit be brought or not, and whether or not
incurred in trial, bankruptcy, or appellate proceedings. 
 10. Representations and Warranties. Executive hereby represents and
warrants to the Company that Executive is not a party to, or otherwise subject to, any covenant not to compete with any person or entity, and Executive’s execution of this Agreement and performance of his obligations hereunder will not violate
the terms or conditions of any contract or obligation, written or oral, between Executive and any other person or entity. 
 11.
Restrictions on Conduct of Executive. 
 (a) General. Executive and the Company understand and agree that the
purpose of the provisions of this Section 11 is to protect legitimate business interests of the Company, as more fully described below, and is not intended to eliminate Executive’s post-employment competition with the Company per
se, nor is it intended to impair or infringe upon Executive’s right to work, earn a living, or acquire and possess property from the fruits of his labor. Executive hereby acknowledges that Executive has received good and valuable
consideration for the post-employment restrictions set forth in this Section 11 in the form of compensation and benefits provided herein and the grant of stock options from time to time by the Company. Executive hereby further acknowledges that
the post-employment restrictions set forth in this Section 11 are reasonable and that they do not, and will not, unduly impair his ability to earn a living after the termination of this Agreement. 
 In addition, the parties acknowledge: (A) that Executive’s services under this Agreement require special expertise and talent
in the provision of Competitive Services and that Executive will have substantial contacts with customers, suppliers, advertisers and vendors of the Company; (B) that pursuant to this Agreement, Executive will be placed in a position of trust
and responsibility and he will have access to a substantial amount of Confidential Information and Trade Secrets and that the Company is placing him in such position and giving him access to such information in reliance upon his agreement not to
compete with the Company during the Restricted Period; (C) that due to his management duties, Executive will be the repository of a substantial portion of the goodwill of the Company and would have an unfair advantage in competing with the
Company; (D) that due to Executive’s special experience and talent, the loss of Executive’s services to the Company under this Agreement cannot reasonably or adequately be compensated solely by damages in an action at law;
(E) that Executive is capable of competing with the Company; and (F) that Executive is capable of obtaining gainful, lucrative and desirable employment that does not violate the restrictions contained in this Agreement. 
  

 -8- 

 Therefore, subject to the limitations of reasonableness imposed by law, Executive shall
be subject to the restrictions set forth in this Section 11. 
 (b) Definitions. The following capitalized terms
used in this Section 11 shall have the meanings assigned to them below, which definitions shall apply to both the singular and the plural forms of such terms: 
 “Competitive Position” means any employment with a Competitor in which Executive will use or is likely to use any
Confidential Information or Trade Secrets, or in which Executive has duties for such Competitor that involve Competitive Services and that are the same or similar to those services actually performed by Executive for the Company. 
 “Competitive Services” means the distribution of automatic identification, bar-code, point of sale, or telephony
products and other products the Company begins to distribute during the Employment Period, to resellers of such products, except such term shall not include distribution conducted by a Person whose principal business is the manufacture and sale of
such products to resellers and/or end users and which Person does not normally act as a distributor of such products manufactured by others. 
 “Competitor(s)” means any Person engaged, wholly or in material part, in Competitive Services. Competitors include but are not limited to: Agilysis, Alliance Systems, Arrow, Avnet, Blue Star,
Comstor, Cygcom, Ingram, Jenne Distributors, Metropolitan Sales, Nimax, Tech Data, Telpar, Voda One, Westcon, as well as any of their business units or affiliated companies. 
 “Confidential Information” means all information regarding the Company, its activities, business or clients that is the
subject of reasonable efforts by the Company to maintain its confidentiality and that is not generally disclosed by practice or authority to persons not employed by the Company, but that does not rise to the level of a Trade Secret.
“Confidential Information” shall include, but is not limited to, financial plans and data concerning the Company; management planning information; business plans; operational methods; market studies; marketing plans or strategies; product
development techniques or plans; customer lists; details of customer contracts; current and anticipated customer requirements; past, current and planned research and development; business acquisition plans; and new personnel acquisition plans.
“Confidential Information” shall not include information that has become generally available to the public by the act of one who has the right to disclose such information without violating any right or privilege of the Company. This
definition shall not limit any definition of “confidential information” or any equivalent term under state or federal law. 
 “Determination Date” means the date of termination of Executive’s employment with the Company for any reason whatsoever or any earlier date (during the Employment Period) of an alleged breach of
the Restrictive Covenants by Executive. 
 “Person” means any individual or any corporation, partnership,
joint venture, limited liability company, association or other entity or enterprise. 
  

 -9- 

 “Principal or Representative” means a principal, owner, partner,
shareholder, joint venturer, investor, member, trustee, director, officer, manager, employee, agent, representative or consultant. 
 “Protected Customers” means any Person to whom the Company has sold its products or services or solicited to sell its products or services during the twelve (12) months prior to the Determination Date. 
 “Protected Employees” means employees of the Company who were employed by the Company at any time within six
(6) months prior to the Determination Date. 
 “Restricted Period” means the Employment Period, and a
period of two-years following the Date of Termination of employment with the Company if such termination occurs during the Employment Period or within 60 days of the Employment Period End Date. 
 “Restricted Territory” means North America. 
 “Restrictive Covenants” means the restrictive covenants contained in Section 11(c) hereof. 
 “Trade Secret” means all information, without regard to form, including, but not limited to, technical or nontechnical
data, a formula, a pattern, a compilation, a program, a device, a method, a technique, a drawing, a process, financial data, financial plans, product plans, distribution lists or a list of actual or potential customers, advertisers or suppliers
which is not commonly known by or available to the public and which information: (A) derives economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can
obtain economic value from its disclosure or use; and (B) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy. Without limiting the foregoing, Trade Secret means any item of confidential information
that constitutes a “trade secret(s)” under the common law or statutory law of the State of South Carolina. 
 (c)
Restrictive Covenants. 
 (i) Restriction on Disclosure and Use of Confidential Information and Trade Secrets.
Executive understands and agrees that the Confidential Information and Trade Secrets constitute valuable assets of the Company and its affiliated entities, and may not be converted to Executive’s own use. Accordingly, Executive hereby agrees
that Executive shall not, directly or indirectly, at any time during the Restricted Period reveal, divulge, or disclose to any Person not expressly authorized by the Company any Confidential Information, and Executive shall not, directly or
indirectly, at any time during the Restricted Period use or make use of any Confidential Information in connection with any business activity other than that of the Company. Throughout the term of this Agreement and at all times after the date that
this Agreement terminates for any reason, Executive shall not directly or indirectly transmit or 

  

 -10- 

 
disclose any Trade Secret of the Company to any Person, and shall not make use of any such Trade Secret, directly or indirectly, for himself or for others,
without the prior written consent of the Company. The parties acknowledge and agree that this Agreement is not intended to, and does not, alter either the Company’s rights or Executive’s obligations under any state or federal statutory or
common law regarding trade secrets and unfair trade practices. 
 Anything herein to the contrary notwithstanding, Executive
shall not be restricted from disclosing or using Confidential Information that is required to be disclosed by law, court order or other legal process; provided, however, that in the event disclosure is required by law, Executive shall provide
the Company with prompt notice of such requirement so that the Company may seek an appropriate protective order prior to any such required disclosure by Executive. 
 (ii) Nonsolicitation of Protected Employees. Executive understands and agrees that the relationship between the Company and each
of its Protected Employees constitutes a valuable asset of the Company and may not be converted to Executive’s own use. Accordingly, Executive hereby agrees that during the Restricted Period Executive shall not directly or indirectly on
Executive’s own behalf or as a Principal or Representative of any Person or otherwise solicit or induce any Protected Employee to terminate his or her employment relationship with the Company or to enter into employment with any other Person.

 (iii) Restriction on Relationships with Protected Customers. Executive understands and agrees that the relationship
between the Company and each of its Protected Customers constitutes a valuable asset of the Company and may not be converted to Executive’s own use. Accordingly, Executive hereby agrees that, during the Restricted Period, Executive shall not,
without the prior written consent of the Company, directly or indirectly, on Executive’s own behalf or as a Principal or Representative of any Person, solicit, divert, take away or attempt to solicit, divert or take away a Protected Customer
for the purpose of providing or selling Competitive Services; provided, however, that the prohibition of this covenant shall apply only to Protected Customers with whom Executive had material “Contact” on the Company’s
behalf during the twelve (12) months immediately preceding the termination of his or her employment at the Company. For purposes of this Agreement, Executive had material “Contact” with a Protected Customer if (a) he had business
dealings with the Protected Customer on the Company’s behalf; (b) he was responsible for supervising or coordinating the dealings between the Company and the Protected Customer; or (c) he obtained Trade Secrets or Confidential
Information about the customer as a result of his association with the Company. 
 (iv) Noncompetition with the Company.
Executive hereby understands and agrees that, during the Restricted Period, Executive will not, without prior written consent of the Company, directly or indirectly seek or obtain a Competitive Position in the Restricted Territory with a
Competitor; provided, however, that the provisions of this Agreement shall not be deemed to prohibit the ownership by Executive of any securities of the Company or its affiliated entities of not more than five percent (5%) of any
class of securities of any corporation having a class of securities registered pursuant to the Securities Exchange Act of 1934, as amended. Executive acknowledges that in the performance of his duties for the Company he is charged with operating

  

 -11- 

 
on the Company’s behalf throughout the Restricted Territory and he hereby acknowledges, therefore, that the Restricted Territory is reasonable.

 (d) Enforcement of Restrictive Covenants. 
 (i) Rights and Remedies Upon Breach. In the event Executive breaches, or threatens to commit a breach of, any of the provisions of
the Restrictive Covenants, the Company shall have the following rights and remedies, which shall be independent of any others and severally enforceable, and shall be in addition to, and not in lieu of, any other rights and remedies available to the
Company at law or in equity: 
 (A) the right and remedy to enjoin, preliminarily and permanently, Executive from violating
or threatening to violate the Restrictive Covenants and to have the Restrictive Covenants specifically enforced by any court of competent jurisdiction, it being agreed that any breach or threatened breach of the Restrictive Covenants would cause
irreparable injury to the Company and that money damages would not provide an adequate remedy to the Company; and 
 (B) the
right and remedy to require Executive to account for and pay over to the Company all compensation, profits, monies, accruals, increments or other benefits derived or received by Executive as the result of any transactions constituting a breach of
the Restrictive Covenants. 
 (ii) Severability of Covenants. Executive acknowledges and agrees that the Restrictive
Covenants are reasonable and valid in time and scope and in all other respects. The covenants set forth in this Agreement shall be considered and construed as separate and independent covenants. Should any part or provision of any covenant be held
invalid, void or unenforceable in any court of competent jurisdiction, such invalidity, voidness or unenforceability shall not render invalid, void or unenforceable any other part or provision of this Agreement. If any portion of the foregoing
provisions is found to be invalid or unenforceable by a court of competent jurisdiction because its duration, the territory, the definition of activities or the definition of information covered is considered to be invalid or unreasonable in scope,
the invalid or unreasonable term shall be redefined, or a new enforceable term provided, such that the intent of the Company and Executive in agreeing to the provisions of this Agreement will not be impaired and the provision in question shall be
enforceable to the fullest extent of the applicable laws. 
 (iii) Reformation. The parties hereunder agree that it is
their intention that the Restrictive Covenants be enforced in accordance with their terms to the maximum extent possible under applicable law. The parties further agree that, in the event any court of competent jurisdiction shall find that any
provision hereof is not enforceable in accordance with its terms, the court shall reform the Restrictive Covenants such that they shall be enforceable to the maximum extent permissible at law. 
  

 -12- 

 (iv) Elective Right of the Company. In the event that Executive challenges the
enforceability of the Restrictive Covenants (or asserts an affirmative defense to an action seeking to enforce the Restrictive Covenants) based on an argument that the Restrictive Covenants are (x) not enforceable as a matter of law,
(y) unreasonable in geographical scope or duration or (z) void as against public policy, the Company shall have the right (1) to cease making the payments required under Section 6 above and, upon demand, to have Executive repay,
within 10 business days of any such demand, any such payments already made. Any right afforded to, or exercised by, the Company hereunder shall in no way affect the enforceability of the Restrictive Covenants or any other right of the Company
hereunder. 
 12. Assignment and Successors. 
 (a) This Agreement is personal to Executive and without the prior written consent of the Company shall not be assignable by Executive
otherwise than by will or the laws of descent and distribution. This Agreement shall inure to the benefit of and be enforceable by Executive’s legal representatives. 
 (b) This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns. 
 (c) The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Company to assume expressly and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place.
As used in this Agreement, “Company” shall mean the Company as herein before defined and any successor to its business and/or assets as aforesaid which assumes and agrees to perform this Agreement by operation of law, or otherwise.

 13. Miscellaneous. 
 (a) Waiver. Failure of either party to insist, in one or more instances, on performance by the other in strict accordance with the terms and conditions of this Agreement shall not be deemed a waiver or
relinquishment of any right granted in this Agreement or of the future performance of any such term or condition or of any other term or condition of this Agreement, unless such waiver is contained in a writing signed by the party making the waiver.

 (b) Severability. If any provision or covenant, or any part thereof, of this Agreement should be held by any court
to be invalid, illegal or unenforceable, either in whole or in part, such invalidity, illegality or unenforceability shall not affect the validity, legality or enforceability of the remaining provisions or covenants, or any part thereof, of this
Agreement, all of which shall remain in full force and effect. 
  

 -13- 

 (c) Other Agents. Nothing in this Agreement is to be interpreted as
limiting the Company from employing other personnel on such terms and conditions as may be satisfactory to it. 
 (d)
Entire Agreement. Except as provided herein, this Agreement contains the entire agreement between the Company and Executive with respect to the subject matter hereof and, from and after the Effective Date, this Agreement shall supersede any
other agreement between the parties with respect to the subject matter hereof, including without limitation, the Prior Agreement. 
 (e) Governing Law and Jurisdiction. Except to the extent preempted by federal law, and without regard to conflict of laws principles, the laws of the State of South Carolina shall govern this Agreement in all respects, whether as to
its validity, construction, capacity, performance or otherwise. This Agreement may only be enforced in a court of competent jurisdiction in Greenville County, South Carolina and Executive agrees to submit to the exclusive jurisdiction of a court of
competent jurisdiction in Greenville, South Carolina. 
 (f) Notices. All notices, requests, demands and other
communications required or permitted hereunder shall be in writing and shall be deemed to have been duly given if delivered or three days after mailing if mailed, first class, certified mail, postage prepaid: 

			
	To Company:	  	 ScanSource, Inc.
 6 Logue Court
 Greenville, SC 29615
 Attn: General Counsel

		
	To Executive:	  	To the address specified on Exhibit A to this Agreement

 Any party may change the address to which notices, requests, demands and other communications
shall be delivered or mailed by giving notice thereof to the other party in the same manner provided herein. 
 (g)
Amendments and Modifications. This Agreement may be amended or modified only by a writing signed by both parties hereto, which makes specific reference to this Agreement. 
  

 -14- 

 (h) Construction. Each party and his or its counsel have reviewed this Agreement
and have been provided the opportunity to revise this Agreement and accordingly, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this
Agreement. Instead, the language of all parts of this Agreement shall be construed as a whole, and according to its fair meaning, and not strictly for or against either party. 
 IN WITNESS WHEREOF, the parties hereto have duly executed and delivered this Employment Agreement as of the dates indicated below. 
 EXECUTIVE: 
 Name (print): Jeffery A. Bryson 
 Signature: /s/ Jeffery A. Bryson  
 Date: October 12, 2006 
 SCANSOURCE, INC.: 
 By: /s/ Michael L. Baur  
 Name: Michael L. Baur 
 Title: Chief Executive Officer 
 Date: October 12, 2006 
  

 -15- 

 EXHIBIT A to EMPLOYMENT AGREEMENT 
 Executive: Jeffery A. Bryson 
 Title: Executive Vice
President, Administration & Investor Relations 
 Employment period date: to June 30, 2008 
 Base Salary: $200,000 annually 
 Variable Compensation earned
in 2006 shall be based on the following: 
 The amount of variable pay is determined based on ScanSource, Inc. consolidated operating
income and return on invested capital (ROIC). The 2006 “target” amount under this program is $50,000. The actual amount may be more or less depending on actual operating income and ROIC achieved. Amounts earned will be paid quarterly after
the Company’s earnings release. 
  

			
	Days of Paid Vacation per Fiscal Year:	 	Approving Person:
		
	 20
	 	 Chief Executive Officer

 Executive Notice Address: 
 102 Robin Road 

	Greenville,	SC 29609 

 EXHIBIT B to EMPLOYMENT AGREEMENT 
 Form of Release 
 THIS RELEASE
(“Release”) is granted effective as of the              day of             ,
            , by              (“Executive”) in favor of ScanSource, inc. (the “Company”). this
is the release referred to that certain Employment Agreement dated as of October 12, 2006 by and between the Company and Executive (the “Employment Agreement”). Executive gives this Release in consideration of the Company’s
promises and covenants as recited in the Employment Agreement, with respect to which this Release is an integral part. 
 1. Release of
the Company. Executive, for himself, his successors, assigns, attorneys, and all those entitled to assert his rights, now and forever hereby releases and discharges the Company and its respective officers, directors, stockholders, trustees,
employees, agents, parent corporations, subsidiaries, affiliates, estates, successors, assigns and attorneys (the “Released Parties”), from any and all claims, actions, causes of action, sums of money due, suits, debts, liens, covenants,
contracts, obligations, costs, expenses, damages, judgments, agreements, promises, demands, claims for attorney’s fees and costs, or liabilities whatsoever, in law or in equity, which Executive ever had or now has against the Released Parties,
including any claims arising by reason of or in any way connected with any employment relationship which existed between the Company or any of its parents, subsidiaries, affiliates, or predecessors, and Executive. It is understood and agreed that
this Release is intended to cover all actions, causes of action, claims or demands for any damage, loss or injury, which may be traced either directly or indirectly to the aforesaid employment relationship, or the termination of that relationship,
that Executive has, had or purports to have, from the beginning of time to the date of this Release, whether known or unknown, that now exists, no matter how remotely they may be related to the aforesaid employment relationship including but not
limited to claims for employment discrimination under federal or state law, except as provided in Paragraph 2; claims arising under Title VII of the Civil Rights Act, 42 U.S.C. § 2000(e), et seq. or the Americans With Disabilities
Act, 42 U.S.C. § 12101 et seq.; claims for statutory or common law wrongful discharge, including any claims arising under the Fair Labor Standards Act, 29 U.S.C. § 201 et seq.; claims for attorney’s fees,
expenses and costs; claims for defamation; claims for wages or vacation pay; claims for benefits, including any claims arising under the Employee Retirement Income Security Act, 29 U.S.C. § 1001, et seq.; and provided,
however, that nothing herein shall release the Company of its obligations to Executive under the Employment Agreement or any other contractual obligations between the Company or its affiliates and Executive, or any indemnification obligations to
Executive under the Company’s bylaws, certificate of incorporation, South Carolina law, or otherwise. 
 2. Release of Claims Under
Age Discrimination in Employment Act. Without limiting the generality of the foregoing, Executive agrees that by executing this Release, he has released and waived any and all claims he has or may have as of the date of this Release for age
discrimination under the Age Discrimination in Employment Act, 

 
29 U.S.C. § 621, et seq. It is understood that Executive is advised to consult with an attorney prior to executing this Release; that
he in fact has consulted a knowledgeable, competent attorney regarding this Release; that he may, before executing this Release, consider this Release for a period of twenty-one (21) calendar days; and that the consideration he receives for
this Release is in addition to amounts to which he was already entitled. It is further understood that this Release is not effective until seven (7) calendar days after the execution of this Release and that Executive may revoke this Release
within seven (7) calendar days from the date of execution hereof. 
 Executive agrees that he has carefully read this Release and is
signing it voluntarily. Executive acknowledges that he has had twenty one (21) days from receipt of this Release to review it prior to signing or that, if Executive is signing this Release prior to the expiration of such 21-day period,
Executive is waiving his right to review the Release for such full 21-day period prior to signing it. Executive has the right to revoke this release within seven (7) days following the date of its execution by him. However, if Executive revokes
this Release within such seven (7) day period, no severance benefit will be payable to him under the Employment Agreement and he shall return to the Company any such payment received prior to that date. 
 EXECUTIVE HAS CAREFULLY READ THIS RELEASE AND ACKNOWLEDGES THAT IT CONSTITUTES A GENERAL RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS AGAINST THE COMPANY
UNDER THE AGE DISCRIMINATION IN EMPLOYMENT ACT, AND ANY AND ALL OTHER STATE AND FEDERAL LAWS, WHETHER STATUTORY OR COMMON LAW. EXECUTIVE ACKNOWLEDGES THAT HE HAS HAD A FULL OPPORTUNITY TO CONSULT WITH AN ATTORNEY OR OTHER ADVISOR OF HIS CHOOSING
CONCERNING HIS EXECUTION OF THIS RELEASE AND THAT HE IS SIGNING THIS RELEASE VOLUNTARILY AND WITH THE FULL INTENT OF RELEASING THE COMPANY FROM ALL SUCH CLAIMS. 
  
  

					
	 Executive
	 	 
			
		 	Date:	 	  

  

	 	

 EXHIBIT C to EMPLOYMENT AGREEMENT 
 Definition of Change in Control: 
 For the purposes of this Agreement, a “Change in Control” shall mean the occurrence of any of the following events: 
 (i) individuals who, on the Effective Date, constitute the Board of Directors of the Company (the “Incumbent Directors”) cease
for any reason to constitute at least a majority of such Board, provided that any person becoming a director after the Effective Date and whose election or nomination for election was approved by a vote of at least a majority of the Incumbent
Directors then on the Board shall be an Incumbent Director; provided, however, that no individual initially elected or nominated as a director of the Company as a result of an actual or threatened election contest with respect to the
election or removal of directors (“Election Contest”) or other actual or threatened solicitation of proxies or consents by or on behalf of any “person” (such term for purposes of this definition being as defined in
Section 3(a)(9) of the Exchange Act and as used in Section 13(d)(3) and 14(d)(2) of the Exchange Act) other than the Board (“Proxy Contest”), including by reason of any agreement intended to avoid or settle any Election Contest
or Proxy Contest, shall be deemed an Incumbent Director; or 
 (ii) any person is or becomes a “beneficial owner”
(as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of either (A) 35% or more of the then-outstanding shares of common stock of the Company (“Company Common Stock”) or (B) securities of the Company
representing 35% or more of the combined voting power of the Company’s then outstanding securities eligible to vote for the election of directors (the “Company Voting Securities”); provided, however, that for purposes of
this subsection (ii), the following acquisitions shall not constitute a Change in Control: (w) an acquisition directly from the Company, (x) an acquisition by the Company or a Subsidiary of the Company, (y) an acquisition by any
employee benefit plan (or related trust) sponsored or maintained by the Company or any Subsidiary of the Company, or (z) an acquisition pursuant to a Non-Qualifying Transaction (as defined in subsection (iii) below); or 
 (iii) the consummation of a reorganization, merger, consolidation, statutory share exchange or similar form of corporate transaction
involving the Company or a Subsidiary (a “Reorganization”), or the sale or other disposition of all or substantially all of the Company’s assets (a “Sale”) or the acquisition of assets or stock of another corporation (an
“Acquisition”), unless immediately following such Reorganization, Sale or Acquisition: (A) all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the outstanding Company Common Stock
and outstanding Company Voting Securities immediately prior to such Reorganization, Sale or Acquisition 

 
beneficially own, directly or indirectly, more than 55% of, respectively, the then outstanding shares of common stock and the combined voting power of the
then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Reorganization, Sale or Acquisition (including, without limitation, a corporation which as a
result of such transaction owns the Company or all or substantially all of the Company’s assets or stock either directly or through one or more subsidiaries, the “Surviving Corporation”) in substantially the same proportions as their
ownership, immediately prior to such Reorganization, Sale or Acquisition, of the outstanding Company Common Stock and the outstanding Company Voting Securities, as the case may be, and (B) no person (other than (x) the Company or any
Subsidiary of the Company, (y) the Surviving Corporation or its ultimate parent corporation, or (z) any employee benefit plan (or related trust) sponsored or maintained by any of the foregoing is the beneficial owner, directly or
indirectly, of 35% or more of the total common stock or 35% or more of the total voting power of the outstanding voting securities eligible to elect directors of the Surviving Corporation, and (C) at least a majority of the members of the board
of directors of the Surviving Corporation were Incumbent Directors at the time of the Board’s approval of the execution of the initial agreement providing for such Reorganization, Sale or Acquisition (any Reorganization, Sale or Acquisition
which satisfies all of the criteria specified in (A), (B) and (C) above shall be deemed to be a “Non-Qualifying Transaction”); or 
 (iv) approval by the stockholders of the Company of a complete liquidation or dissolution of the Company.

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