<SEC-DOCUMENT>0001193125-11-097949.txt : 20110802
<SEC-HEADER>0001193125-11-097949.hdr.sgml : 20110802
<ACCEPTANCE-DATETIME>20110414161704
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001193125-11-097949
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20110414

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SCANSOURCE INC
		CENTRAL INDEX KEY:			0000918965
		STANDARD INDUSTRIAL CLASSIFICATION:	WHOLESALE-COMPUTER & PERIPHERAL EQUIPMENT & SOFTWARE [5045]
		IRS NUMBER:				570965380
		STATE OF INCORPORATION:			SC
		FISCAL YEAR END:			0630

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		6 LOGUE COURT STE G
		CITY:			GREENVILLE
		STATE:			SC
		ZIP:			29615
		BUSINESS PHONE:		8032882432

	MAIL ADDRESS:	
		STREET 1:		6 LOGUE COURT STE G
		CITY:			GREENVILLE
		STATE:			SC
		ZIP:			29615
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>
<HTML><HEAD>
<TITLE>Correspondence</TITLE>
</HEAD>
 <BODY BGCOLOR="WHITE">

 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">[ScanSource, Inc. Letterhead] </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">April&nbsp;14, 2011 </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Via EDGAR Submission </U></B></FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">United States Securities and Exchange Commission </FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Division of Corporate Finance </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">100 F Street,
N.E. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Mail Stop 4561 </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Washington, DC
20549 </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Attention: Craig Wilson </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Re:</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>ScanSource, Inc. </B></FONT></TD></TR></TABLE> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Form
10-K for the Fiscal Year Ended June&nbsp;30, 2010 </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Filed August&nbsp;26, 2010 </B></FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Form 10-Q for the Fiscal Quarter Ended September&nbsp;30, 2010 Filed November&nbsp;3, 2010 </B></FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>File No. 000-26926 </B></FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Ladies and Gentlemen: </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">This
letter is submitted in response to comments contained in the letter dated March&nbsp;18, 2011 (the &#147;Staff&#146;s Letter&#148;) from Craig Wilson of the staff of the United States Securities and Exchange Commission (the &#147;Staff&#148;) to
Michael L. Baur, the Chief Executive Officer of ScanSource, Inc. (the &#147;Company&#148;), relating to the above-referenced Form 10-K filed on August&nbsp;26, 2010 (the &#147;2010 Annual Report&#148;) and the above-referenced 10-Q filed on
November&nbsp;3, 2010 (the &#147;Quarterly Report&#148;). </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">The comments and responses set forth below are keyed to the
numbering of the comments and the headings used in the Staff&#146;s Letter. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Form 10-K for the Fiscal Year Ended June&nbsp;30, 2010
</U></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Item&nbsp;1. Business </U></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B><U>Vendors, page 3 </U></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><I></I></B>1. <B><I>We refer to prior staff
comment letters relating to the review of your Form 10-K for the fiscal year ended June&nbsp;30, 2008 and note that Motorola and Avaya each continue to constitute more than 10% of your net sales. While you have provided some disclosure in your Form
10-K for the fiscal year ended June&nbsp;30, 2010 of some of the provisions of your agreements with Motorola and Avaya, we would expect to see a more robust description, perhaps focusing on the scope, term and termination provisions. Please advise.
</I></B></FONT></P>

<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">


 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">April 14, 2011 </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT
STYLE="font-family:Times New Roman" SIZE="2"> Page
 2
 of 10 </FONT></P> <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Response</U></B>: In response to the Staff&#146;s comment letter in connection
with its review of the Company&#146;s Form 10-K for the fiscal year ended June&nbsp;30, 2008 (&#147;2008 Annual Report&#148;), the Company provided in its last two Form 10-K&#146;s detailed disclosure of the terms of its vendor agreements and filed
both the Motorola and Avaya agreements covering the United States. In addition, in response to the Staff&#146;s comment letter with respect to the 2008 Annual Report, the Company included in its last two Form 10-K&#146;s a risk factor that contains
significant disclosure with respect to its vendor agreements. The description of the vendor agreements in the 2010 Annual Report would generally apply to the Company&#146;s Avaya and Motorola agreements. It is important to note that certain
provisions of the Motorola and Avaya agreements are subject to an Order Granting the Company Confidential Treatment. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Notwithstanding the foregoing, the Company proposes to provide the following additional disclosure with respect to the scope, term and
termination of the Avaya and Motorola agreements in its Form 10-K for the year ending June&nbsp;30, 2011: </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>&#147;The
Company has three non-exclusive distribution agreements with Motorola. One agreement covers sales of Motorola hardware and software products in North and South America, another agreement covers sales of Motorola hardware and software products in
Europe, the Middle East and Africa, and another agreement covers sales of wireless products in Europe. The Motorola agreements each have a one year term that automatically renews for additional one year terms, and either party may terminate the
agreement upon 30 days and 90 days notice, respectively, to the other party. </I></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>The Company also has two non-exclusive
distribution agreements with Avaya. One agreement covers the distribution of Avaya products in the United States and the other agreement covers distribution of Avaya products in the United Kingdom and certain portions of continental Europe. In
addition, the Avaya agreements provide separate authorizations for the Avaya Enterprise Communications Group (&#147;ECG&#148;) and Avaya Small to Medium Business (&#147;SMB&#148;) product lines. The Avaya agreements have a one year term that
automatically renews for additional one year terms if not terminated by either party upon 180 days or 90 days notice, respectively, to the other party.&#148; </I></FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B><U>Item&nbsp;7. Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations </U></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B><U>Overview, page 19 </U></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><I></I></B>2. <B><I>In future filings, please
consider enhancing your overview to provide insight into material opportunities, challenges and risks that your executives are most focused. For example, in your fourth quarter earnings call, you discussed the challenges presented by continuing
product shortages and longer lead times. We also note that in your attempt to grow your markets you have invested in new initiatives including investments in new geographic markets of Europe and Latin America, increased marketing efforts to recruit
resellers, enhancements of employee benefit plans to retain employees, and strategic acquisitions in both the North American and International distribution segments. For guidance, see Section III.A of SEC Release No.&nbsp;33-8350.
</I></B></FONT></P> <P STYLE="font-size:18px;margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>

<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">


 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">April 14, 2011 </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT
STYLE="font-family:Times New Roman" SIZE="2"> Page
 3
 of 10 </FONT></P> <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Response</U></B>: We acknowledge the Staff&#146;s comment and we will consider in
future filings enhancing our overview of Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations to provide insight into the material opportunities, challenges, and risks that our executives are most focused on.
</FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Results of Operations </U></B></FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Comparison of Fiscal Years Ended June&nbsp;30, 2010 and 2009 </U></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B><U>Net Sales </U></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Internal Distribution, page 22 </U></B></FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><I></I></B>3. <B><I>We note your disclosure here and on page 26 of changes on a constant exchange rate basis. Please tell us how you
considered presenting the amounts in constant currency, describing the process for calculating the constant currency amounts and the basis of presentation. See Question 104.06 of the Compliance&nbsp;&amp; Disclosure Interpretations for Non-GAAP
Financial Measures. </I></B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Response</U></B>: As the Company has operations in countries in which functional currencies
differ from the U.S. dollar denominated reporting currency, the Company has traditionally disclosed the constant currency percentage change in sales against prior reporting periods to augment the required percentage change in sales disclosure, as
the Company has determined that this information gives the reader better insight as to the effect of changes in underlying foreign currencies as they relate to the reported net sales. Whenever we disclose the impact of constant currency explanations
for income statement items, we calculate the change driven by foreign currency translation as the difference from translating the current reporting period at the previous reporting period&#146;s average exchange rate and the current reporting period
at the current reporting period&#146;s average exchange rate. We disclose constant currency fluctuations as a percentage change in the net sales of our International Distribution segment to give better insight into changes in our volume on a more
comparable basis to the users of our financial statements. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">In future filings, we will enhance our disclosures to include the
dollar impact of changes in foreign currency translation in the sales of our International Distribution segment. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Liquidity and Capital
Resources, page 31 </U></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><I></I></B>4. <B><I>We note that your cash and cash equivalents balance has materially decreased
at June&nbsp;30, 2010 compared with the prior year. While we note that accounts receivable and inventories have both significantly increased, it is not readily apparent what other significant factors contributed to the decrease. Please tell us the
reasons and factors causing the increases in accounts receivable and inventory. Explain how the increase in inventory is attributable, in part, &#147;to managing product constraints with certain vendors throughout the year.&#148; Further, please
tell us the reasons for the significant decline in cash. Where there are any material trends, events or uncertainties related to these changes, tell us how you considered both disclosure of the causes for the changes and disclosure of the reasonably
likely impact on future financial results and financial position. See Item&nbsp;303(a)(1) of </I></B></FONT></P>

<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">


 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">April 14, 2011 </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT
STYLE="font-family:Times New Roman" SIZE="2"> Page
 4
 of 10 </FONT></P> <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><I>Regulation S-K and Commission Release No. 33-8350, Section IV. &#147;Liquidity and Capital
Resources.&#148; </I></B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Response</U></B>: The large fluctuation in cash is primarily driven by the pervasive impact
that the global recession had on the Company, our customers, our vendors and their suppliers as well as strategic decisions made by the Company in response to the recession. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">When the recession began in late calendar 2008, end user demand for many of our products decreased, as evidenced by decreased sales in fiscal year 2009. Accordingly, our receivables decreased, and we
began purchasing at lower levels. These factors, along with a strategic decision to draw $75 million on the Company&#146;s line of credit to have cash readily available due to the general concerns with the credit markets and related financial
systems late in calendar 2008, contributed to a significantly higher cash balance for us at June&nbsp;30, 2009. Additionally, in fiscal year 2009, some of our vendors experienced issues in their supply chains from reduced capacity in some of their
vendors, which led to increased lead times on our purchase orders. These product constraints further contributed to decreased inventory levels and increased cash on hand at the end of fiscal year 2009. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">As the global economic environment improved in fiscal year 2010, the Company no longer needed to strategically have a minimum amount of
cash on hand, and end user demand for our products had a favorable impact on our sales. Thus, our accounts receivable balance and inventory purchasing activity increased significantly from June&nbsp;30, 2009. Furthermore, the Company made a
strategic decision to increase purchasing activity beyond our immediate needs in light of known product constraints in our vendors&#146; supply chains and to strategically position our inventory levels to accommodate anticipated customer orders. As
a result, the Company shifted its working capital position from largely invested in cash in fiscal 2009 to inventory, accounts receivable and trade payables in fiscal 2010. Outside of the impact of the global recession in fiscal 2009, there were no
other material trends, events or uncertainties driving the decrease in our cash position. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">5. <B><I>Tell us the amount of
investments held by foreign subsidiaries that are considered to be retained indefinitely for reinvestment as of June&nbsp;30, 2010, subject to potential U.S. income tax on repatriation. Tell us how you considered disclosure of the amount and impact
of foreign investment on future liquidity noting that these investments are not presently available to fund domestic operations or acquisitions without paying a significant amount of taxes upon their repatriation.</I></B> </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Response</U></B>: As of June&nbsp;30, 2010, the Company had approximately $33.4 million of undistributed earnings of foreign
subsidiaries, of which $7.2 million of those undistributed earnings was invested in cash in our foreign operations. The Company has no plans to repatriate these funds due to the fact that the cash is required for working capital needs in our foreign
subsidiaries and the U.S. parent company&#146;s cash needs can be met with its own cash on hand or by local borrowing. As of our prior year end, we held $27.2 million in cash in the United States, along with $355 million in working capital. Due to
the cash and working capital levels maintained in the United States along with access to the Company&#146;s $250 million revolving credit facility as of June&nbsp;30, 2010, the Company determined our domestic liquidity needs were </FONT></P>

<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">


 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">April 14, 2011 </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT
STYLE="font-family:Times New Roman" SIZE="2"> Page
 5
 of 10 </FONT></P> <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">
fully met. The Company did not consider this to be material for disclosure in the 2010 Annual Report. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B><U>Item&nbsp;8. Financial Statements and Supplementary Data </U></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Consolidated Income
Statements, page 39 </U></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><I></I></B>6. <B><I>In view of your service offerings, please tell us why your statement of
operations does not separately disclose service revenues and cost of service revenues pursuant to Rules 5- 03.1 and 2 of Regulation S-X, respectively. Support their inapplicability to us in quantified detail for the fiscal year ended June&nbsp;30,
2010 and quarterly periods ended September&nbsp;30, 2010 and December&nbsp;31, 2010. </I></B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Response</U></B>:
Historically, we have not separately disclosed service revenues and cost of services, as we do not consider them to be material to our financial statements. We do review the materiality of service revenues and related costs on a quarterly basis and
consider the need for separate disclosure in our financial statements. For the three periods referenced in the Staff&#146;s letter, services revenues did not exceed 1.5% of consolidated net sales, and corresponding cost of services did not exceed
0.5% of consolidated net sales. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Note (2)&nbsp;Summary of Significant Accounting Policies and Accounting Standards Recently Issued
</U></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Use of Estimates </U></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B><U>(b) Inventory Reserves, page 43 </U></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">7. <B><I>We note your disclosure
regarding management&#146;s determination of an inventory reserve to reduce inventories to the lower of cost or market. Please clarify how your accounting method establishes a new cost basis for your inventory and how it complies with ASC
330-10-35-1 and 3 5-2. Additionally, please describe, in further detail, your accounting for sales of specifically reserved inventory, including your accounting for the inventory reserve as these sales occur and whether any changes in facts and
circumstances previously resulted in the restoration of inventory value. See ASC 330-10-S99-2.</I></B> </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Response</U></B>: As indicated in our footnote disclosures, the Company determines the appropriate level of inventory reserves
required to reduce inventories to the lower of cost or market based principally on the effects of technological changes, quantities of goods on hand, and other factors.&nbsp;These reserves are based upon the Company&#146;s best estimates of the
market value, less cost to dispose, of products whose value is determined to be impaired.&nbsp;The estimates used to calculate these reserves are applied consistently.&nbsp;The adjustments are recorded in the period in which the loss of utility of
the inventory occurs, which establishes a new cost basis for the inventory. This new cost basis is maintained until such time that the reserved inventory is disposed of, returned to the vendor or sold. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">To the extent that specifically reserved inventory is sold, cost of goods sold is expensed for the new cost basis of the inventory sold.
Therefore, the established inventory reserve for the product is relieved. Hence, the inventory reserve balance is maintained only for impaired </FONT></P>

<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">


 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">April 14, 2011 </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT
STYLE="font-family:Times New Roman" SIZE="2"> Page
 6
 of 10 </FONT></P> <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">products still on-hand at the end of the period. The Company believes that these policies comply with
the guidance outlined in&nbsp;ASC&nbsp;330-10-35-1 and 35-2, as well as ASC 330-10-S99-2. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Cash and cash equivalents, page 43
</U></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">8. <B><I>Explain the accounting, financial statement presentation and the authoritative support for checks released
but not yet cleared included in accounts payable in the amounts of $62.7 million and $45.6 million as of June&nbsp;30, 2010 and 2009.</I></B> </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B><U>Response</U></B>: The checks that are released but not yet cleared that we reclassify into accounts payable are written primarily from two zero-balance &#147;overdraft&#148; accounts at two of our
banks in which we do not maintain depository balances. On a daily basis, we fund the cleared checks from this zero-balance account from a depository account maintained at a different bank. We considered ASC 210-20-45-1 for the &#147;right of
setoff&#148; criteria in determining the appropriate classification as cash or accounts payable. As we do not maintain depository relationships with the financial institutions where the zero-balance accounts are held, we do not meet the right of
setoff condition (ASC 210-20-45-1a) that requires &#147;each of the two parties owes the other determinable amounts.&#148; Because our relationships with the financial institutions on which these checks are written do not give us the right to set
off, we classify these outstanding checks as accounts payable. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Revenue Recognition, page 47 </U></B></FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">9. <B><I>We note that in connection with your self branded warranty program, you purchase fulfillment contracts from a third party for
most of your obligations. Based on your disclosures, it appears you report the revenue and related costs on a gross basis. Please confirm whether our understanding is correct. Additionally, please clarify which party is the primary obligor in such
arrangements and provide us with an analysis pursuant to ASC 605-45-45 in support of your conclusion.</I></B> </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U><B>Response</B></U>: We report revenue on a net fee basis for all warranty programs except for one warranty program in which we have
identified ourselves to be the primary obligor as prescribed by ASC 605-45-45. We have noted the following characteristics of this one warranty program in identifying ourselves as the primary obligor: (1)&nbsp;we carry general inventory risk before
the customer order is placed, as we purchase the warranties from the vendor and resell, (2)&nbsp;the end user enters into an agreement with the Company and not our vendor, (3)&nbsp;we have latitude in setting the price point to the customer for the
warranty, (4)&nbsp;we are responsible for fulfilling any technical support calls, and (5)&nbsp;we enter directly into the fulfillment contracts with the third parties that cover the cost of repairing or replacing defective product. As such, we have
determined that we are the primary obligor for this single program, and we report sales and cost of goods sold on a gross basis and amortize over the contract period. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B><U>Note (12)&nbsp;Income Taxes, page 62 </U></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">10. <B><I>We note your
disclosure on page 64 regarding undistributed earnings of foreign subsidiaries. Please tell us the amount of undistributed earnings of foreign subsidiaries that are considered to be retained indefinitely for reinvestment as of June&nbsp;30, 2010 and
how you considered providing this quantitative disclosure in your filing. Refer to ASC 740-30-50-2b.</I></B> </FONT></P>

<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">


 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">April 14, 2011 </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT
STYLE="font-family:Times New Roman" SIZE="2"> Page
 7
 of 10 </FONT></P> <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U><B>Response</B></U>: Undistributed earnings of foreign subsidiaries as of
June&nbsp;30, 2010 were $33.4 million and have been indefinitely retained for reinvestment. The Company considered disclosing its unrecognized deferred tax liability related to these earnings, but did not think it was practical at the time. After
further review, we will include an estimate of the deferred tax liability in future filings. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Part III </U></B></FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Item&nbsp;11. Executive Compensation (Incorporated by Reference from Definitive Proxy Statement filed October&nbsp;19, 2010) </U></B></FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Compensation Discussion and Analysis </U></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B><U>Elements of Compensation </U></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Base Salary, page 14 </U></B></FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><I></I></B>11. <B><I>Please tell us the factors your compensation committee considered in deciding to increase Mr. Baur&#146;s salary
by $50,000 beginning July&nbsp;1, 2010. See Item&nbsp;402(b)(2)(ix) of Regulation S-K. In this regard, we note your statement that the increase was due to Mr. Baur&#146;s job performance during the prior year. Where an executive officer&#146;s
individual performance is taken into account in determining an element of executive compensation, you should describe how that element of compensation is structured and implemented to reflect the named executive officer&#146;s individual performance
and/or individual contribution to your company&#146;s performance. You should also describe the elements of individual performance and/or contribution that are taken into account. See Item&nbsp;402(b)(2)(vii) of Regulation S-K. </I></B></FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Response</U></B>: As CEO of the Company, Mr.&nbsp;Baur is responsible in large part for the performance of the Company (financial
and otherwise). Mr.&nbsp;Baur&#146;s employment agreement provides that &#147;The Compensation Committee of the Board will review the Executive&#146;s Base Salary annually and in their sole discretion may increase (but not decrease) Executive&#146;s
Base Salary from year to year. The target amounts of such increase, if any, will be between 5% and 10% of Executive&#146;s then-current Base Salary. This annual review of Executive&#146;s Base Salary will consider, among other things,
Executive&#146;s performance and the Company&#146;s performance.&#148; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">The Compensation Committee subjectively determined
that Mr.&nbsp;Baur&#146;s job performance as CEO during the fiscal year ending June&nbsp;30, 2010, warranted an increase in his base salary by approximately 6.7%, or $50,000. Over 70% of Mr.&nbsp;Baur&#146;s total cash compensation for the fiscal
year ending June&nbsp;30, 2010, was determined based on objective criteria such as the Company&#146;s ROIC and operating income. </FONT></P>

<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">


 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">April 14, 2011 </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT
STYLE="font-family:Times New Roman" SIZE="2"> Page
 8
 of 10 </FONT></P> <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Cash Incentives, page 15 </U></B></FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">12. <B><I>You report that the 2010 target annual cash incentive award for Mr. Cley was based on Mr. Cley&#146; s attainment of certain
individual performance and management goals in addition to one or more company financial performance goals. Please describe how Mr. Cley&#146;s cash incentive award was structured and implemented to reflect his individual performance and/or
individual contribution to the company performance goals. See Item&nbsp;402(b)(2)(vii) of Regulation S-K. You should also specifically identify which of the company performance goals that were considered in determining Mr. Cley&#146;s cash incentive
award. See Item&nbsp;402(b)(2)(v) of Regulation S-K. To the extent a formula was used to determine the award, you should describe such formula. See Item&nbsp;402(b)(1)(v) of Regulation S-K</I></B>. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Response</U></B>: Additional detail regarding the cash incentive award for Mr.&nbsp;Cleys is contained on page 17 of the Proxy
Statement filed on October&nbsp;19, 2010. This disclosure provides &#147;such goals were determined quarterly by the Chief Executive Officer and consisted of one or more of the following with respect to each quarter: (i)&nbsp;achieving a specific
ROIC target, and (ii)&nbsp;successfully completing or implementing specific management projects, such as implementation of income tax strategy, account receivable programs and personal development programs.&#148; </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">As indicated above, Mr.&nbsp;Cleys&#146; cash incentive opportunity was contingent on the completion of specific management projects
evaluated quarterly by the CEO. For two quarters, Mr.&nbsp;Cleys was entitled to a cash incentive award of approximately $12,500 based on actual ROIC results compared to forecasted ROIC targets for the applicable quarters, which equated to
approximately one third of Mr.&nbsp;Cleys&#146; cash incentive opportunity in each of those quarters. The Company did not use any other allocation method or formula to determine Mr.&nbsp;Cleys&#146; cash incentive award. In future filings the
Company will provide additional specific information regarding the structure, implementation and particular goals with respect to Mr.&nbsp;Cleys&#146; cash incentive opportunity. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B><U>Long-term Equity Incentives, page 17 </U></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">13. <B><I>You state that the
number of shares subject to stock-based awards granted by the Compensation Committee on December&nbsp;4, 2009 was based primarily on the market value of the annual stock option grant in fiscal 2008 and the related analysis of peer company equity
grant practices provided to the Compensation Committee by Watson Wyatt, one of the compensation consultants you retained in fiscal 2010. Please describe for us more specifically how your analysis of the peer company equity grant practices determined
the number of shares awarded to your executive officers. See Item&nbsp;402(b)(1)(v) of Regulation S-K. In addition, please explain to us why you have not identified the peer companies that were analyzed by your compensation consultants.</I></B>
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Response</U></B>: While the Compensation Committee determined the number of shares subject to stock-based awards based
on the relative dollar value of the annual stock-based awards to the named executive officers for the prior year and the analysis of peer company equity grant practices provided by a compensation consultant, the Compensation Committee used the peer
company analysis only for the general purpose of understanding the current compensation </FONT></P>

<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">


 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">April 14, 2011 </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT
STYLE="font-family:Times New Roman" SIZE="2"> Page
 9
 of 10 </FONT></P> <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">practices of comparable companies in its markets. The relative dollar value of the award as compared to
the dollar value of the award for the prior year was the determinative factor in the Compensation Committee&#146;s decision. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Form 10-Q
for the Fiscal Quarter Ended September&nbsp;30, 2010 </U></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Item&nbsp;1. Financial Statements </U></B></FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Note (2)&nbsp;Summary of Significant Accounting Policies </U></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B><U>Recent Accounting Pronouncements </U></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Multiple-element Revenue Arrangements, page
8 </U></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">14. <B><I>We note you adopted the amendments within ASC 605-25 regarding the accounting for multiple-deliverable
arrangements beginning on July&nbsp;1, 2010 which you disclose did not have an impact on your consolidated financial statements. We also note the wide array of services you provide as a value-added distributor such as such as custom configuration,
professional services, technical support, partner marketing, web storefronts, custom packaging, and other specialized services. Your revenue recognition policy disclosures do not appear to address required disclosures related both to those services,
and when they are included in multiple-element arrangements. Please tell us how you believe you have addressed the disclosures required by FASB ASC 605-25-50-2 for your multiple- element arrangements and SAB Topic 13.B. &#147;Disclosures, Question
1.&#148; To the extent you have not complied with those disclosure requirements, provide us your proposed disclosures.</I></B> </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Response</U></B>: In preparation of previous filings, we have considered the disclosure requirements of ASC 605 regarding multiple
element arrangements. For the year ended June&nbsp;30, 2010, and subsequent quarters ended September&nbsp;30, 2010, and December&nbsp;30, 2010, respectively, revenues generated from these services have not exceeded more than 1.5% of consolidated net
sales. After consideration, we felt the additional disclosures were not required due to the immaterial nature of these services. </FONT></P>

<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">


 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">April 14, 2011 </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT
STYLE="font-family:Times New Roman" SIZE="2"> Page
 10
 of 10 </FONT></P> <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Closing </U></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">The Company acknowledges that: </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">It is responsible for the adequacy and accuracy of the disclosure in the filing; </FONT></P></TD></TR></TABLE>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">Staff comments or changes to disclosure in response to Staff comments do not foreclose the Commission from taking any action with respect to the
filing; and </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">The Company may not assert Staff comments as a defense in any proceeding initiated by the Commission or any person under the federal securities laws of
the United States. </FONT></P></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">We hope that the above responses will be acceptable to the Staff. If you have any
questions regarding the foregoing, kindly contact the undersigned at (864)&nbsp;286-4682. Thank you for your time and attention. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Sincerely, </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">/s/ John J. Ellsworth </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">John J. Ellsworth </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:8%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Vice President, General Counsel &amp; Corporate Secretary </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">ScanSource, Inc.
</FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">cc:</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Jennifer Fugario </FONT></TD></TR></TABLE> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Ryan Houseal
</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Barbara C. Jacobs </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Michael L. Baur </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Richard P. Cleys </FONT></P>
</BODY></HTML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
