Document:

Letter agreement

 Exhibit 10.3 
 January 8, 2009 
 Mr. Clifford K. Bown 
 Executive Vice President, Chief Financial Officer 
 VASCO Data Security International, Inc. 
 1901 South Myers Road, Suite 210 
 Oakbrook Terrace, IL 60181 
 Dear Mr. Bown: 
 This letter is a supplement to your employment
agreement with VASCO Data Security International, Inc. (VASCO) dated January 1, 2003 and amended effective December 31, 2008 (“Employment Agreement”) and amends the letter agreement dated February 26, 2007 (“First
Letter Agreement”), and confirms our mutual understanding of the terms and conditions applicable to your assignment to work in Switzerland. It is understood that your Employment Agreement and the terms of the First Letter Agreement not modified
in this letter agreement will continue in full force and effect. 
 It is agreed that your term of the assignment outlined in the First Letter Agreement will
be extended for one year (a total of three years), notwithstanding termination of the Employment Agreement in accordance with its terms and conditions. Should the assignment continue beyond three years, then new terms will be agreed upon with you.

 Base Salary and Bonus Scheme 
 As stated in the First
Letter Agreement, your base salary will continue to be determined by the Compensation Committee of the Board of Directors of VASCO in accordance with your Employment Agreement and paid by bi-monthly installments directly into your nominated bank
account. Such base salary shall in no event be less than your current annual base salary of $315,000. 
 As stated in the First Letter Agreement, your annual
performance bonus amounts and related performance targets will also be determined annually by the Compensation Committee of the Board of Directors of VASCO in accordance with your Employment Agreement. The annual targeted bonus amount shall in no
event be less than your current annual target bonus of $189,000. 
 Goods and Services Allowance 
 The amount of your goods and services allowance, as stated in the First Letter Agreement, will be increased to CHF 7,307 per month. 
 Housing and Utility Allowance 
 The amount of your housing and utility
allowance, as stated in the First Letter Agreement, will remain at USD 4,500 per month, but will be paid in Swiss Francs. You agree that the Swiss Franc equivalent of USD 4,500 is CHF 4,802. 
 Transportation 
 You will receive a car allowance of CHF
1,333 per month. 

 This agreement is made in Illinois in the U.S. and shall be subject to the state and federal laws thereof. In the event
any provision of this letter shall be held invalid or unenforceable by reason of law, such invalidity shall not affect or render invalid or unenforceable any other provision of the letter. 
  

	
	Sincerely,
	VASCO Data Security International, Inc.
	
	 /s/ T. Kendall Hunt

	T. Kendall Hunt
	Chairman and CEO

 VASCO Data Security International, Inc. I hereby agree and accept this assignment as outlined above. I understand
all policies which apply to U.S. domestic employees, including employment at will policy, will also apply to me. I also understand that this is not a Contract of Employment, but an agreement which supplements any existing arrangements.

  

							
	Signature:	 	 /s/ Clifford K. Bown
	  		 	Date: 01/12/09
		 	(Clifford K. Bown)Employment Agreement Amendment - T. Kendall Hunt

 Exhibit 10.4 
 VASCO DATA SECURITY INTERNATIONAL, INC. 
 EMPLOYMENT AGREEMENT AMENDMENT 
 WHEREAS, VASCO Data Security International, Inc. a Delaware corporation (the “Company”) entered into an Employment Agreement (the
“Original Agreement”), dated November 20, 2002, with T. KENDALL HUNT (“Executive”); and 
 WHEREAS, the Company
and Executive would like to amend the Original Agreement to comply with applicable provisions of Section 409A of the Internal Revenue Code of 1986, as amended; 
 NOW, THEREFORE, Executive and the Company hereby agree to amend the Original Agreement, effective December 31, 2008 (the “Effective Date”), as follows: 
 1. Section 4(b) of the Original Agreement is revised by adding the following sentence at the end thereof: 
 Any such incentive compensation shall be paid to Executive in accordance with the terms of the governing incentive plan document. 
 2. Section 6(d) of the Original Agreement is revised by adding the following new paragraph at the end thereof: 
 For purposes of payments to Executive under this Agreement after an involuntary termination of employment or termination for Good Reason, Executive must
have incurred a separation from service, as such term is defined under Section 409A of the Code (as defined in Section 8). 
 3.
Section 6 of the Original Agreement is revised by adding the following new subsection (e) at the end thereof: 
 (e) Payments to
Executive as a Specified Employee. In the event of any payments to Executive after a termination of employment, as described in sections (a)(iii) and (b)(ii) above and in Section 7 while Executive is a “specified employee” (as defined
in Code Section 409A), no payments will be made to Executive during the first six months following his separation from service date. 
 4.
Section 7(a) of the Original Agreement is revised by substituting the following therefor: 
 (a) For purposes hereof, a “Section
7 Termination” will have occurred if Executive’s employment is terminated by the Company other than for Cause or by Executive for Good Reason (as defined in Section 6(b)(ii)) within two years following the occurrence of a Change in
Control of VASCO Data Security International, Inc. (the “Parent Company”) or the Company. Any payments made due to a Section 7 Termination must be on account of Executive’s separation from service and shall be subject to
Section 6(e). 

 5. Section 7(b) of the Original Agreement is revised by substituting the following therefor: 
 (b) “Change in Control” has the meaning set forth in the VASCO Data Security International, Inc. 2008 Equity Incentive Plan, which is intended
to meet the definition of a change in control under Code Section 409A. 
 6. Section 7(c) of the Original Agreement is revised by
substituting the following therefor: 
 (c) If a Section 7 Termination occurs, the Company shall pay Executive, as severance
compensation, his Base Salary and Incentive Compensation at the rate then in effect for the period set forth in Exhibit A, from the date of Executive’s separation from service. Subject to Section 6(e), such payment will be made within 90
days following Executive’s separation from service date and will be made in a lump sum payment equal to the present value of the stream of monthly payments due. For purposes of this computation, present value will be calculated on the basis of
the prime rate of interest announced by the Company’s principal bank, or if it has no principal bank, as published in The Wall Street Journal on the business day immediately preceding the payment. 
 7. Section 7(d) of the Original Agreement is deleted in its entirety. 
 8. Section 8 of the Original Agreement is revised by adding the following sentence at the end thereof: 
 For purposes of
complying with Code Section 409A, in no event will any Gross-Up Payment be made to Executive later than the end of the calendar year following the calendar year in which Executive remits the tax payments to the appropriate taxing authorities.

 All other terms, conditions and provisions of the Original Agreement not herein modified shall remain unchanged and in full force and
effect. 
 This Employment Agreement Amendment may be executed in one or more counterparts, and each such counterpart shall be deemed an
original, but all such counterparts together shall constitute but one Employment Agreement Amendment. In the event that any signature to this Employment Agreement Amendment is delivered by facsimile transmission or by e-mail delivery of a
“.pdf” format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature
page were an original thereof. 

 SIGNATURE PAGE TO EMPLOYMENT AGREEMENT AMENDMENT 
 IN WITNESS WHEREOF, the Company and Executive have caused this Employment Agreement Amendment to be executed effective as of the Effective Date.

  

							
	VASCO DATA SECURITY INTERNATIONAL, INC.	 		 	EXECUTIVE
				
	By:	 	 /s/ Clifford K. Bown
	 		 	 /s/ T. Kendall Hunt

	Its:	 	Executive Vice President, CFO & Secretary	 		 	T. KENDALL HUNTEmployment Agreement Amendment - Clifford K. Bown

 Exhibit 10.5 
 VASCO DATA SECURITY INTERNATIONAL, INC. 
 EMPLOYMENT AGREEMENT AMENDMENT 
 WHEREAS, VASCO Data Security International, Inc. a Delaware corporation (the “Company”) entered into an Employment Agreement (the
“Original Agreement”), dated January 1, 2003, with CLIFFORD K. BOWN (“Executive”); 
 WHEREAS, the Company and
Executive entered into a letter agreement (the “Letter”), dated February 26, 2007, to supplement the Original Agreement; and 
 WHEREAS, the Company and Executive would like to amend the Original Agreement and the Letter to comply with applicable provisions of Section 409A of the Internal Revenue Code of 1986, as amended; 
 NOW, THEREFORE, Executive and the Company hereby agree to amend the Original Agreement and Letter, effective December 31, 2008 (the “Effective
Date”), as follows: 
 1. Section 4(b) of the Original Agreement is revised by adding the following sentence at the end thereof:

 Any such incentive compensation shall be paid to Executive in accordance with the terms of the governing incentive plan document.

 2. Section 6(d) of the Original Agreement is revised by adding the following new paragraph at the end thereof: 
 For purposes of payments to Executive under this Agreement after an involuntary termination of employment or termination for Good Reason, Executive must
have incurred a separation from service, as such term is defined under Section 409A of the Code (as defined in Section 8). 
 3.
Section 6 of the Original Agreement is revised by adding the following new subsection (e) at the end thereof: 
 (e) Payments to
Executive as a Specified Employee. In the event of any payments to Executive after a termination of employment, as described in sections (a)(iii) and (b)(ii) above and in Section 7 while Executive is a “specified employee” (as defined
in Code Section 409A), no payments will be made to Executive during the first six months following his separation from service date. 
 4.
Section 7(a) of the Original Agreement is revised by substituting the following therefor: 
 (a) For purposes hereof, a “Section
7 Termination” will have occurred if Executive’s employment is terminated by the Company other than for Cause or by Executive for Good Reason (as defined in Section 6(b)(ii)) within two years following the occurrence of a Change in
Control of VASCO Data Security International, Inc. (the “Parent Company”) or the Company. Any payments made due to a Section 7 Termination must be on account of Executive’s separation from service and shall be subject to
Section 6(e). 

 5. Section 7(b) of the Original Agreement is revised by substituting the following therefor: 
 (b) “Change in Control” has the meaning set forth in the VASCO Data Security International, Inc. 2008 Equity Incentive Plan, which is intended
to meet the definition of a change in control under Code Section 409A. 
 6. Section 7(c) of the Original Agreement is revised by
substituting the following therefor: 
 (c) If a Section 7 Termination occurs, the Company shall pay Executive, as severance
compensation, his Base Salary and Incentive Compensation at the rate then in effect for the period set forth in Exhibit A, from the date of Executive’s separation from service. Subject to Section 6(e), such payment will be made within 90
days following Executive’s separation from service date and will be made in a lump sum payment equal to the present value of the stream of monthly payments due. For purposes of this computation, present value will be calculated on the basis of
the prime rate of interest announced by the Company’s principal bank, or if it has no principal bank, as published in The Wall Street Journal on the business day immediately preceding the payment. 
 7. Section 7(d) of the Original Agreement is deleted in its entirety. 
 8. Section 8 of the Original Agreement is revised by adding the following sentence at the end thereof: 
 For purposes of
complying with Code Section 409A, in no event will any Gross-Up Payment be made to Executive later than the end of the calendar year following the calendar year in which Executive remits the tax payments to the appropriate taxing authorities.

 9. The Letter is amended by adding the following new Section as the last paragraph thereof: 
 Compliance with Code Section 409A 
 For purposes of complying with Section 409A of the Internal Revenue Code of 1986, as amended, all reimbursements and in-kind benefits provided pursuant to this Letter or the Employment Agreement are subject to this Section. Any taxable
reimbursements or in-kind benefits provided by the Company to Executive will be made no later than the end of the calendar year following the calendar year the expense was incurred or right to the in-kind benefit accrued. Further, (a) payment
of such reimbursements or in-kind benefits during one calendar year will not affect the amount of such reimbursement or in-kind benefits provided during a subsequent calendar year; and (b) such reimbursement benefit or rights or in-kind
benefits may not be exchanged or substituted for another form of compensation to Executive. 
 All other terms, conditions and provisions of the Original
Agreement and Letter not herein modified shall remain unchanged and in full force and effect. 

 This Employment Agreement Amendment may be executed in one or more counterparts, and each such counterpart shall be
deemed an original, but all such counterparts together shall constitute but one Employment Agreement Amendment. In the event that any signature to this Employment Agreement Amendment is delivered by facsimile transmission or by e-mail delivery of a
“.pdf” format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature
page were an original thereof. 
 [Remainder of page intentionally blank] 

 SIGNATURE PAGE TO EMPLOYMENT AGREEMENT AMENDMENT 
 IN WITNESS WHEREOF, the Company and Executive have caused this Employment Agreement Amendment to be executed effective as of the Effective Date. 
  

									
	 VASCO DATA SECURITY INTERNATIONAL, INC.
	 		 		 	EXECUTIVE
					
	By:	 	 /s/ T. Kendall Hunt
	 		 		 	 /s/ Clifford K. Bown

	 Its:
	 	Chief Executive Officer	 		 		 	CLIFFORD K. BOWN

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