<SEC-DOCUMENT>0001193125-15-337564.txt : 20151005
<SEC-HEADER>0001193125-15-337564.hdr.sgml : 20151005
<ACCEPTANCE-DATETIME>20151005165435
ACCESSION NUMBER:		0001193125-15-337564
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20151005
ITEM INFORMATION:		Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20151005
DATE AS OF CHANGE:		20151005

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			VASCO DATA SECURITY INTERNATIONAL INC
		CENTRAL INDEX KEY:			0001044777
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-COMPUTER INTEGRATED SYSTEMS DESIGN [7373]
		IRS NUMBER:				364169320
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-24389
		FILM NUMBER:		151143910

	BUSINESS ADDRESS:	
		STREET 1:		1901 SOUTH MYERS ROAD
		STREET 2:		SUITE 210
		CITY:			OAKBROOK TERRACE
		STATE:			IL
		ZIP:			60181
		BUSINESS PHONE:		6309328844

	MAIL ADDRESS:	
		STREET 1:		1919 S HIGHLAND AVE
		STREET 2:		STE 118 C
		CITY:			LOMBARD
		STATE:			IL
		ZIP:			60148
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>d80393d8k.htm
<DESCRIPTION>FORM 8-K
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<HTML><HEAD>
<TITLE>Form 8-K</TITLE>
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 <P STYLE="line-height:1.0pt;margin-top:0pt;margin-bottom:0pt;border-bottom:1px solid #000000">&nbsp;</P>
<P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="margin-top:4pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>SECURITIES AND EXCHANGE COMMISSION
</B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>WASHINGTON, D.C. 20549 </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center>
<P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>FORM 8-K
</B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center> <P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>CURRENT REPORT </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>PURSUANT
TO SECTION 13 OR 15(d) </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>OF THE SECURITIES EXCHANGE ACT OF 1934 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>Date of Report (Date of earliest event reported): October&nbsp;5, 2015 </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center> <P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:24pt; font-family:Times New Roman" ALIGN="center"><B>VASCO Data Security International, Inc. </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(Exact name of registrant as specified in charter) </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center>
<P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="top" ALIGN="center"><B>Delaware</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"><B>000-24389</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"><B>36-4169320</B></TD></TR>
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<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(State or other jurisdiction</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>of incorporation)</B></P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(Commission</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>File Number)</B></P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(IRS Employer</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Identification No.)</B></P></TD></TR>
</TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="top" ALIGN="center"><B>1901 South Meyers Road, Suite 210</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top"></TD></TR>
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<TD VALIGN="top" ALIGN="center"><B>Oakbrook Terrace, Illinois</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"><B>60181</B></TD></TR>
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<TD VALIGN="top" ALIGN="center"><B>(Address of principal executive offices)</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"><B>(Zip Code)</B></TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Registrant&#146;s telephone number, including area code: (630)&nbsp;932-8844 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>N/A </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(Former name or
former address, if changed since last report) </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center>
<P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Check the appropriate box below
if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): </P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="FONT-FAMILY:WINGDINGS">&#168;</FONT></TD>
<TD ALIGN="left" VALIGN="top">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="FONT-FAMILY:WINGDINGS">&#168;</FONT></TD>
<TD ALIGN="left" VALIGN="top">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="FONT-FAMILY:WINGDINGS">&#168;</FONT></TD>
<TD ALIGN="left" VALIGN="top">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="FONT-FAMILY:WINGDINGS">&#168;</FONT></TD>
<TD ALIGN="left" VALIGN="top">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) </TD></TR></TABLE> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<P STYLE="line-height:1.0pt;margin-top:0pt;margin-bottom:0pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P>

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<TD WIDTH="10%" VALIGN="top" ALIGN="left"><B>Item&nbsp;502.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensation Arrangements of Certain Officers. </B></TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">On September&nbsp;28, 2015 VASCO Data Security International, Inc. (the &#147;Company&#148;) entered into an Employment Agreement (the &#147;Employment
Agreement&#148;) with Mark Stephen Hoyt (the &#147;Executive&#148;) effective as of the October&nbsp;5, 2015 (the &#147;Effective Date&#148;). Executive&#146;s employment commenced on the Effective Date and he will serve as the Company&#146;s Chief
Financial Officer, Secretary and Treasurer commencing on the first day immediately following the filing of the Company&#146;s Form 10-Q for the quarter ending September&nbsp;30, 2015. The term of the Executive&#146;s employment continues until the
third anniversary of the Effective Date, with automatic renewals on the third and each following anniversary of such date for successive one-year terms, unless terminated by the other party at least six months prior to termination of the then term.
</P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The Employment Agreement provides for an initial base salary of $330,000 per year, subject to adjustment in accordance with the Company&#146;s normal
practice for executive salary review from time to time. During the term of employment, the Executive will also participate in the Company&#146;s Executive Incentive Plan. During 2016 the Executive will be provided a target bonus equal to 65% of his
base salary, and during 2015 the Executive will be entitled to a guaranteed <I>pro rata</I> bonus equal to $53,000. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">During the term of employment, the
Executive will also participate in the Company&#146;s 2009 Equity Incentive Plan (the &#147;Plan&#148;). On the Effective Date, the Executive is being awarded $600,000 of the Company&#146;s common stock under the Plan, valued as of market closing on
the date of the grant, and vesting in equal semi-annual installments over 4 years from the Effective Date. Vesting accelerates 100% upon (i)&nbsp;Executive&#146;s death or Disability (as defined in the Plan) subject to certain exceptions, or
(ii)&nbsp;if contemporaneous with or within 18 months after a Change in Control (as defined in the Plan) during his employment period, (a)&nbsp;the Company terminates the Executive&#146;s employment without Cause (as defined in the Plan), or
(b)&nbsp;Executive terminates his employment for Good Reason (as defined in the Employment Agreement). </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The Executive will also be eligible to participate
on substantially the same basis as the Company&#146;s other senior executive officers in any other employee benefit plan offered by the Company. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The
Executive&#146;s employment may be terminated by the Company with or without Cause (as defined in the Employment Agreement) by giving written notice to the Executive designating an immediate or future termination date. If the Company terminates the
Executive&#146;s employment without Cause (as defined in the Employment Agreement), or the Executive terminates his employment for Good Reason (as defined in the Employment Agreement), the Company shall pay the Executive his base salary and benefits
through the termination date and executive shall be eligible to receive (i)&nbsp;severance pay equal to 12 months of the Executive&#146;s then current base salary and (ii)&nbsp;awards payable , if any, under the Company&#146;s 2009 Equity Incentive
Plan. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">If contemporaneous with or within 18 months after a Change in Control (as defined in the Plan) (a)&nbsp;the Company terminates the Executive&#146;s
employment without Cause or (b)&nbsp;the Executive terminates his employment for Good Reason, then, the Executive will be eligible to receive (i)&nbsp;12 months of Executive&#146;s then current Base Salary and (ii)&nbsp;100% of his target bonus
under the Company&#146;s Executive Incentive Plan for the current year in which the Executive&#146;s employment terminates, or if such target has not been established for such current year, the most recently established target bonus under such plan.
</P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The Employment Agreement provides that, during the term of employment and for the 12-month period following termination for any reason (the
&#147;Restricted Period&#148;), the Executive will not have an ownership interest in or become employed or engaged by, or otherwise participate in or render services to, any business or enterprise within North America, Central America, South
America, the Caribbean, Europe, the Middle East, Africa, India, the Australian continent and Asia (the &#147;Geographical Area&#148;) that engages in any data security business or any other business </P>


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engaged in by the Company. The Employment Agreement also provides that, during the Restricted Period, the Executive shall not (i)&nbsp;solicit for employment, hire or engage, or attempt to
solicit for employment, hire or engage, any person who is or was employed by the Company within the six month period prior to the date of solicitation, hire or engagement, or (ii)&nbsp;otherwise interfere with the relationship between any such
person and the Company. Further, the Employment Agreement prohibits the Executive from inducing or attempting to induce any customer, distributor, agent, licensor, licensee, contractor, vendor or other business relation that was doing business with
the Company or any of its subsidiaries to reduce or cease doing business with the Company or any of its subsidiaries or otherwise interfere with the relationship between the Company or any of its subsidiaries and such entity. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Mr.&nbsp;Hoyt is 47 years old. Prior to joining the Company, he was the Chief Financial Officer of Groupon, Inc. (GRPN:NASDAQ) operations in Europe, Middle
East and Africa, based in Switzerland from 2012 to 2015, and from 2010 to 2012, he was the Vice President of International Financial Operations of Groupon, Inc. based in Chicago. Mr.&nbsp;Hoyt is a CPA and began his career at PricewaterhouseCoopers,
followed by international positions at Motorola, Inc. and CareerBuilder, and holds an M.B.A. from the University of Chicago Booth School of Business and a B.S. in Accountancy from Miami University. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The Executive will be succeeding Clifford K. Bown, who intends to retire from the Company and is being retained by the Company up to May&nbsp;31, 2016 to
provide for an orderly transition period with the Executive. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The foregoing description of the Employment Agreement is qualified in its entirety by
reference to the Employment Agreement. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="10%" VALIGN="top" ALIGN="left"><B>Item&nbsp;9.01</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Financial Statements and Exhibits </B></TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(d) Exhibits. The following Exhibits are furnished
herewith: </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="bottom" NOWRAP ALIGN="center"> <P STYLE="border-bottom:1.00pt solid #000000; width:23.50pt; font-size:8pt; font-family:Times New Roman" ALIGN="center">Exhibit<BR>No.</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <P STYLE="border-bottom:1.00pt solid #000000; width:37.25pt; font-size:8pt; font-family:Times New Roman" ALIGN="center">Description</P></TD></TR>


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<TD VALIGN="top" NOWRAP>10.1</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Employment Agreement, effective as of October 5, 2015, by and between VASCO Data Security International, Inc. and Mark Stephen Hoyt.</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
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<TD VALIGN="top" NOWRAP>10.2</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Award Agreement for Restricted Shares, dated as of October 5, 2015, by and between VASCO Data Security International, Inc. and Mark Stephen Hoyt.</TD></TR>
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<TD VALIGN="top" NOWRAP>99.1</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Press Release dated October&nbsp;5, 2015.</TD></TR>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>SIGNATURE </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="top">Date: October&nbsp;5, 2015</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">VASCO Data Security International, Inc.</TD></TR>
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<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
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<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
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<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ Clifford K. Bown</P></TD></TR>
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<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
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<TD VALIGN="top">Clifford K. Bown</TD></TR>
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<TD VALIGN="top">Chief Financial Officer</TD></TR>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Exhibit 10.1 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B><U>EMPLOYMENT AGREEMENT </U></B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B></B>This <B>EMPLOYMENT AGREEMENT</B> (this &#147;<B>Agreement</B>&#148;) is made effective as of the 5th day of October, 2015 (the
&#147;<B>Effective Date</B>&#148;), by and between VASCO Data Security International, Inc. (the &#147;<B>Company</B>&#148;), and Mark Stephen Hoyt (&#147;<B>Executive</B>&#148;).<B> </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">WHEREAS, the Company desires to employ Executive, and Executive desires to be employed by the Company, as the Company&#146;s Chief Financial
Officer, on the terms set forth in this Agreement. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">NOW, THEREFORE, in consideration of the mutual undertakings of the parties hereto, the
Company and Executive agree as follows: </P> <P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>ARTICLE I </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>EMPLOYMENT SERVICES </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>1.1 <U>Term of Employment</U></B>. The term of Executive&#146;s employment under this Agreement shall commence on the Effective Date and
continue until the third anniversary of such date (the &#147;<B>Initial Term</B>&#148;), which shall automatically renew on the third and each following anniversary of the Effective Date for successive one (1)&nbsp;year terms (each, a
&#147;<B>Successive Term</B>&#148;) (the Initial Term, together with all Successive Terms, if any, are collectively referred to herein as the &#147;<B>Employment Period</B>&#148;), unless either party provides the other party with written notice at
least six (6)&nbsp;months prior to the expiration of the Initial Term, or any Successive Term, of its or his intent not to renew the Initial Term, or any Successive Term, respectively. The Employment Period may be terminated earlier pursuant to the
terms of <U>Article III</U> below.<B> </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>1.2 <U>Position and Duties</U></B>. On the terms and subject to the conditions set forth in
this Agreement, commencing on the first day immediately after filing of the Company&#146;s Form 10-Q for the quarter ending September&nbsp;30, 2015 and thereafter during the Employment Period, Executive shall hold the position of Chief Financial
Officer, Secretary and Treasurer and shall report to the Chief Executive Officer. Prior to such filing date Executive shall become acquainted with the Company&#146;s personnel, processes, practices and procedures for financial reporting. Executive
shall perform such duties and responsibilities as are consistent with Executive&#146;s position and as may be reasonably assigned to Executive by the Chief Executive Officer from time to time. Executive shall devote Executive&#146;s full business
time, attention, skill and energy to the business and affairs of the Company, and shall use Executive&#146;s reasonable best efforts to perform such responsibilities in a diligent, loyal, and businesslike manner so as to advance the best interests
of the Company. Executive shall act in conformity with the Company&#146;s Code of Conduct and Ethics (or similar successor document) as in effect from time to time (the &#147;<B>Code of Conduct</B>&#148;) and the Company&#146;s policies, and within
the limits, budgets and business plans set by the Company, and shall adhere to all rules and regulations in effect from time to time relating to the conduct of executives of the Company.<B> </B></P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">1 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>1.3 <U>Other Activities</U></B>. Notwithstanding <U>Section&nbsp;1.2</U><B>,</B> Executive
shall be permitted to devote a reasonable amount of time and effort to professional, industry, civic and charitable organizations and managing personal investments; but only to the extent that such activities, individually or as a whole, do not
materially interfere with the execution of Executive&#146;s duties hereunder, or otherwise violate any provision of this Agreement. Executive shall not become involved in the management of any for profit corporation, partnership or other for profit
entity, including serving on the board of directors (or similar governing body) of any such entity, without the prior consent of the Company&#146;s Board of Directors (&#147;<B>Board</B>&#148;) and the Chief Executive Officer; provided, however,
that this restriction shall not apply to any subsidiary of the Company. Executive will serve without additional compensation as an officer and director of any of the Company&#146;s subsidiaries. Any compensation or other remuneration received from
such service may be offset against the amounts due hereunder.<B> </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>1.4 <U>Location</U></B>. Executive&#146;s place of business shall
be at the Company&#146;s headquarters in Oakbrook Terrace, Illinois. Executive&#146;s principal place of business shall not be relocated outside a 40 mile radius of the Company&#146;s current headquarters in Oakbrook Terrace, Illinois without the
written consent of Executive. Executive will travel as reasonably necessary to perform his duties under this Agreement, which may include significant travel, including internationally.<B> </B></P>
<P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>ARTICLE II </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>COMPENSATION
</B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>2.1 <U>Base Salary</U></B>. The Company shall pay Executive an annual base salary (&#147;<B>Base Salary</B>&#148;) of $330,000,
payable in accordance with payroll practices in effect for senior executive officers of the Company generally. Base Salary shall be subject to review in accordance with the Company&#146;s normal practice for executive salary review from time to time
in effect, and may be increased, but will not be reduced without the prior written consent of Executive except for a reduction that is commensurate with and part of a general salary reduction program applicable to all senior executives of the
Company.<B> </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>2.2 <U>Annual Incentive Compensation</U></B>. During the Employment Period, Executive shall participate in the
Company&#146;s Executive Incentive Plan and any successor thereto (the &#147;<B>Annual Bonus Plan</B>&#148;) in accordance with the terms and conditions thereof and on the same basis as other senior executives of the Company. For the portion of the
Employment Period occurring in 2016, subject to and in accordance with the terms of the Annual Bonus Plan, Executive shall be provided a target bonus equal to 65% of his Base Salary (the &#147;<B>2016 Bonus</B>&#148;). For the portion of the
Employment Period occurring in 2015 Executive shall be entitled to a guaranteed <U>pro</U> <U>rata</U> bonus under the Annual Bonus Plan which is equal to fifty three thousand dollars ($53,000) (the &#147;<B>2015 Bonus</B>&#148;).<B> </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>2.3 <U>Long-Term Incentive Compensation</U></B>. During the Employment Period, Executive shall participate in the Company&#146;s 2009
Equity Incentive Plan and any successor thereto (the &#147;<B>Long-Term Incentive Plan</B>&#148;) in accordance with the terms and conditions thereof and on the same basis as other senior executives of the Company. In connection with his commencing
employment with the Company, on the Effective Date Executive is being awarded under the Long Term Incentive Plan a time vesting restricted stock grant (the &#147;<B>Initial Grant</B>&#148;)<B> </B></P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">2 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>
</B>for six hundred thousand dollars ($600,000) of the Company common stock, valued as of market closing on the date of grant, and vesting in equal semi-annual installments over 4 years from the
Effective Date. The terms and conditions of the Initial Grant shall be governed by the Long Term Incentive Plan and an award agreement determined by the Compensation Committee of the Board (&#147;<B>Committee</B>&#148;).<B> </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>2.4 <U>Employee Benefit Plans</U></B>. Executive will be eligible to participate on substantially the same basis as the Company&#146;s
other senior executive officers in any other employee benefit plans offered by the Company including, without limitation, medical, dental, short-term and long-term disability, life insurance, pension and profit sharing (in each case, subject to the
eligibility requirements of such plans). The Company reserves the right to modify, suspend or discontinue any and all of its employee benefit plans, practices, policies and programs at any time without recourse by Executive, so long as the Company
takes such action generally with respect to other similarly situated senior executive officers.<B> </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>2.5 <U>Vacation</U></B>.
Executive will be entitled to vacation in accordance with the Company&#146;s vacation policy for senior executive officers, but in no event less than four weeks per calendar year of paid vacation.<B> </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>2.6 <U>Business Expenses</U></B>. The Company will reimburse Executive for all reasonable and necessary business expenses incurred in the
performance of services with the Company, according to Company&#146;s policies and upon Executive&#146;s presentation of an itemized written statement and such verification as the Company may require.<B> </B></P>
<P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>ARTICLE III </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>TERMINATION
OF EMPLOYMENT </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>3.1 <U>Voluntary Resignation</U></B>. Executive may terminate his employment for any reason by giving the Company 90
days prior written notice of a voluntary resignation date (&#147;<B>Resignation Date</B>&#148;). Upon receiving Executive&#146;s notice of intent to resign, the Company may require that Executive cease performing services for the Company at any time
before the Resignation Date, so long as the Company continues Executive&#146;s Base Salary, service for purposes of the Annual Bonus Plan and Long-Term Incentive Plan, and employee benefits under <U>Section&nbsp;2.4</U> through the Resignation Date.
Except as otherwise provided under law or the terms of the Annual Bonus Plan, the Long-Term Incentive Plan, or any other employee benefit plan in which Executive participates, Executive shall not be entitled to receive any compensation or benefits
from the Company after the Resignation Date. For the avoidance of doubt, any annual incentive bonus that has not been paid as of the Resignation Date will not be payable and is forfeited. <B> </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>3.2 <U>Termination By Company for Cause</U></B>. The Company may terminate Executive&#146;s employment for Cause (as defined below) by
giving written notice to Executive designating an immediate or future termination date. Such notice shall indicate the specific provisions of this Agreement relied upon as the basis of such termination. In the event of a termination for Cause, the
Company shall pay Executive his Base Salary and provide employee benefits under <U>Section&nbsp;2.4</U> through the termination date. Except as otherwise provided under law or the terms of the Annual Bonus Plan, the Long-Term Incentive Plan, or any
other employee benefit plan in which Executive participates, Executive shall not be entitled to receive any compensation or benefits from the Company after the termination date.<B> </B></P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">3 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">For purposes of this Agreement, &#147;<B>Cause</B>&#148; means: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(i) Executive materially breaches Executive&#146;s obligations under this Agreement, the Company&#146;s Code of Conduct and
Ethics (or any successor thereto) or an established policy of the Company; </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(ii) Executive engages in conduct prohibited by
law (other than minor violations), commits an act of dishonesty, fraud, or serious or willful misconduct in connection with his job duties, or engages in unethical or immoral conduct that, in the reasonable judgment of the Committee, could injure
the integrity, character or reputation of Company; </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(iii) Executive fails or refuses to perform, or habitually neglects,
Executive&#146;s duties and responsibilities hereunder (other than on account of Disability (as defined below), and continues such failure, refusal or neglect after having been given written notice by the Company that specifies what duties Executive
failed to perform and an opportunity to cure of 30 days; </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(iv) Use or disclosure by Executive of confidential information
or trade secrets other than in the furtherance of the Company&#146;s (or its subsidiaries&#146;) business interests, or other violation of a fiduciary duty to the Company (including, without limitation, entering into any transaction or contractual
relationship causing diversion of business opportunity from the Company (other than with the prior written consent of the Board)); or </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(v) Executive fails to reasonably cooperate with any audit or investigation involving the Company or its business practices
after having been given written notice by the Company that specifies Executive&#146;s failure to cooperate and an opportunity to cure of 10 days. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>3.3 <U>Termination By Company Without Cause or Termination by Executive for Good Reason</U></B>. The Company may terminate Executive&#146;s
employment without Cause at any time during the Employment Period by giving written notice to Executive designating an immediate or future termination date.<B> </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Executive may resign from employment during the Employment Period due to: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(i) a failure to provide the compensation and benefits required by this Agreement, including the 2015 Bonus or the 2016 Bonus;
</P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(ii) a reduction in Executive&#146;s Base Salary below the Base Salary in effect during the immediately preceding year,
unless such reduction is commensurate with and part of a general salary reduction program applicable to all senior executives of the Company or agreed to in writing by Executive; </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">4 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(iii) a failure to appoint or elect Executive as Chief Financial Officer of the
Company, in accordance with <U>Section&nbsp;1.2</U> hereof; </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(iv) any material diminution of Executive&#146;s authority,
duties or responsibilities; or </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(v) the Company requiring Executive to be based at any office or location other than the
office occupied by Executive in Oakbrook Terrace, Illinois as of the Effective Date or a reasonably comparable office located within a 40-mile radius of such current office; </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">(each of which shall constitute a &#147;<B>Company Breach</B>&#148; or &#147;<B>Good Reason</B>&#148;) and such resignation shall be treated as a termination
by Executive for Good Reason; <I>provided</I> that, (a)&nbsp;Executive&#146;s voluntary resignation occurs within 90 days following the initial occurrence of a Company Breach, (b)&nbsp;Executive provided written notice describing such Company Breach
in reasonable detail to the Committee within 30 days of the initial occurrence of such Company Breach, and (c)&nbsp;the Company failed to cure such Company Breach within 30 days of receipt of such written notice from Executive; <I>and
provided</I>,<I> further</I>, that in the case of <U>subsections (ii)</U>&nbsp;and <U>(iii)</U>, an act or omission shall not constitute a Company Breach if Executive has incurred a Disability (as defined below). </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">For the avoidance of doubt, the election by either party to not renew the Initial Term or any Successive Terms pursuant to
<U>Section&nbsp;1.1</U> shall not be a termination without Cause or a termination for Good Reason and shall not entitle Executive to Severance Pay. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B></B>In the event of a termination by the Company without Cause or a termination by Executive for Good Reason, the Company shall pay
Executive his Base Salary and provide employee benefits under <U>Section&nbsp;2.4</U> through the termination date. In addition, subject to the requirements set forth in <U>Section&nbsp;3.7</U>, <U>Section&nbsp;3.8</U>, and <U>Section&nbsp;3.9</U>,
the Company will provide the following compensation and benefits to Executive (collectively, the &#147;<B>Severance Pay</B>&#148;):<B> </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(A) Severance pay equal to twelve (12)&nbsp;months of Executive&#146;s then current Base Salary, less applicable withholdings,
payable in equal installments on each regularly scheduled payroll pay date during the twelve (12)&nbsp;month period that begins on the first day immediately after the Release Effective Date (as defined in <U>Section&nbsp;3.7</U>); and </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(B) Awards, if any, under the Long Term Incentive Plan shall be paid in accordance with the terms and conditions of the
Long-Term Incentive Plan and the applicable awards. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Except as otherwise provided under law, or the terms of the Annual Bonus Plan, the
Long-Term Incentive Plan, or any other employee benefit plan in which Executive participates, Executive shall not be entitled to receive any additional compensation or benefits from the Company after the termination date. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>3.4 <U>Death</U></B>. The Employment Period shall terminate automatically upon Executive&#146;s death. In the event of Executive&#146;s
death during the Employment Period, the Company shall pay </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">5 </P>


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Executive&#146;s Base Salary and provide employee benefits under <U>Section&nbsp;2.4</U> through the termination date. Except as otherwise provided under law or the terms of the Annual Bonus
Plan, the Long-Term Incentive Plan, or any other employee benefit plan in which Executive participates, no other compensation or benefits from the Company shall be payable after the termination date. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>3.5 <U>Disability</U></B>. &#147;<B>Disability</B>&#148; means Executive being unable to perform his duties to the Company as Chief
Financial Officer as provided in this Agreement for a period of at least 180 continuous days as a result of a mental or physical condition. The Company may terminate Executive&#146;s employment for Disability during the Employment Period by giving
written notice to Executive designating a termination date that is at least 30 days after the date of the notice of termination, <I>provided</I> that Executive does not return to work on a substantially full-time basis within 30 days after notice of
termination on account of Disability is provided to Executive. A return to work of less than 30 continuous days on a substantially <FONT STYLE="white-space:nowrap">full-time</FONT> basis shall not interrupt a continuous period of Disability. In the
event of termination of the Employment Period on account of Executive&#146;s Disability, the Company shall pay Executive&#146;s Base Salary and provide employee benefits under <U>Section&nbsp;2.4</U> through the termination date. Except as otherwise
provided under law or the terms of the Annual Bonus Plan, the Long-Term Incentive Plan, or any other employee benefit plan in which Executive participates, no other compensation or benefits from the Company shall be payable after the termination
date. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>3.6 <U>Change in Control</U></B>. &#147;<B>Change in Control</B>&#148; has the meaning assigned to such term in the Long Term
Incentive Plan as in effect from time to time. Notwithstanding anything in this Agreement to contrary, a Change in Control will have occurred only if such change in ownership constitutes a change in control under Section&nbsp;409A of the Internal
Revenue Code of 1986, as amended (the &#147;<B>Code</B>&#148;), and the regulations and other guidance in effect thereunder (&#147;<B>Section 409A</B>&#148;).<B> </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">If contemporaneous with or within eighteen (18)&nbsp;months after a Change in Control that occurred during the Employment Period (a)&nbsp;the
Company terminates Executive&#146;s employment without Cause or (b)&nbsp;Executive terminates his employment for Good Reason, then, provided Executive complies with the requirements set forth in <U>Section&nbsp;3.7</U>, <U>Section&nbsp;3.8</U>, and
<U>Section&nbsp;3.9</U>, Executive will be eligible to receive the following payments (collectively, the &#147;<B>Change in Control Payments</B>&#148;): (i)&nbsp;twelve (12)&nbsp;months of Executive&#146;s then current Base Salary and (ii)&nbsp;100%
of his target bonus under the Annual Bonus Plan for the current year in which Executive&#146;s employment terminates, or if such target has not been established for such current year, then the most recently established target bonus under the Annual
Bonus Plan, each less applicable withholdings. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The Change in Control Payment will be made in a lump sum cash payment as soon as
practicable, but in no event more than ten (10)&nbsp;days after Release Effective Date. Except as otherwise provided under law or the terms of any other employee benefit plan in which Executive participates, Executive shall not be entitled to
receive any additional compensation or benefits from the Company after the termination date. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>3.7 <U>Execution of Separation
Agreement</U></B>. As a condition to receiving Severance Pay or Change in Control Payments, Executive must execute and return to the Company, and not<B> </B></P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">6 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>
</B>revoke any part of, a general release and waiver of claims against the Company and its officers, directors, stockholders, employees and affiliates with respect to Executive&#146;s employment
(including, without limitation, a release of claims under the Age Discrimination in Employment Act (the &#147;<B>ADEA Release</B>&#148;)), and other customary terms, in a form and substance reasonably acceptable to the Company (the
&#147;<B>Release</B>&#148;). Executive must deliver the executed Release within the minimum time period required by law or, if none, within twenty-one (21)&nbsp;days after Executive receives the Release from the Company, which shall not be more than
fifteen (15)&nbsp;days after Executive&#146;s termination of Employment. The Release will become effective on the date the revocation period of the ADEA Release expires without Executive revoking the ADEA Release (the &#147;<B>Release Effective
Date</B>&#148;). Any obligation of the Company to provide the Severance Pay shall cease: (i)&nbsp;if Executive materially breached or breaches his contractual obligations to the Company, including those set forth in <U>Article IV</U> or <U>Article
V</U> herein, or in the Release or (ii)&nbsp;if, after Executive&#146;s termination, the Company discovers facts and circumstances that would have justified a termination for Cause during the Employment Period.<B> </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>3.8 <U>Timing of Payments; Section 409A</U></B>. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(a) Notwithstanding any other provision of this Agreement, in the event of a payment to be made, or a benefit to be provided,
pursuant to this Agreement based upon Executive&#146;s &#147;separation from service&#148; (as defined below) for a reason other than death at a time when Executive is a Specified Employee (as defined below) and such payment or provision of such
benefit is not exempt or otherwise permitted under Section&nbsp;409A without the imposition of any Section&nbsp;409A Penalty (as defined below), such payment shall not be made, and such benefit shall not be provided, before the earlier of the date
which is the first day of the seventh month after Executive&#146;s separation from service or 30 days after Executive&#146;s death. All payments or benefits delayed pursuant to this <U>Section&nbsp;3.8</U> shall be aggregated into one lump sum
payment to be made as of the Company&#146;s first business day following the first day of the seventh month after Executive&#146;s separation from service (or if earlier, as of 30 days after Executive&#146;s death). </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(b) For purposes of this Agreement: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(i) &#147;<B>Separation from service</B>&#148; has the meaning provided under Code&nbsp;Section 409A and Treas. Reg.
1.409A-1(h); </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(ii) &#147;<B>Specified Employee</B>&#148; has the meaning given that term in Code&nbsp;Section 409A and
Treas. Reg. 1.409A-1(c)(i) as determined in accordance with the Company&#146;s policy for determining Specified Employees; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(iii) &#147;<B>Section 409A Penalty</B>&#148; means any increase in tax or any other penalty pursuant to Section&nbsp;409A; and
</P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(iv) All payments of &#147;deferred compensation,&#148; as defined in Code&nbsp;Section 409A, due to Executive&#146;s
&#147;termination of employment&#148; shall be payable upon Executive&#146;s separation from service. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">7 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(c) This Agreement is intended not to result in the imposition of any
Section&nbsp;409A Penalty and shall be administered, interpreted and construed in a manner consistent with such intent. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(d) Executive and the Company agree to cooperate to amend this Agreement from time to time as appropriate to avoid the
imposition of any Section&nbsp;409A Penalty. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(e) In no event shall the Company be required to provide a tax gross-up
payment to Executive with respect to any Section&nbsp;409A Penalty. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(f) Notwithstanding any provision of this Agreement to
the contrary, this Agreement is intended to be exempt from or, in the alternative, comply with Section&nbsp;409A and the interpretive guidance in effect thereunder, including the exceptions for short-term deferrals, separation pay arrangements,
reimbursements, and in-kind distributions. The Agreement shall be construed and interpreted in accordance with such intent. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>3.9
<U>Excess Parachute Payments; No Excise Tax Gross-Up</U></B>. Notwithstanding any provision of this Agreement to the contrary, if it is determined by the Company&#146;s independent auditors that any amount or benefit to be paid or provided under
this Agreement or otherwise, whether or not in connection with a Change in Control, would be an &#147;<B>Excess Parachute Payment</B>&#148; within the meaning of Code Section&nbsp;280G but for the application of this sentence, then the payments and
benefits to be paid or provided under this Agreement will be reduced to the minimum extent necessary (but in no event to less than zero) so that no portion of any such payment or benefit, as so reduced, constitutes an Excess Parachute Payment;
<B></B><I>provided</I><B></B>, <B></B><I>however</I><B></B>, that the foregoing reduction will be made only if and to the extent that such reduction would result in an increase in the aggregate payment and benefits to be provided, determined on an
after-tax basis (taking into account the excise tax imposed pursuant to Code Section&nbsp;4999, any tax imposed by any comparable provision of state law, and any applicable federal, state and local income and employment taxes).<B> </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The fact that Executive&#146;s right to payments or benefits may be reduced by reason of the limitations contained in this
<U>Section&nbsp;3.9</U> will not of itself limit or otherwise affect any other rights of Executive other than pursuant to this Agreement. In the event that any payment or benefit intended to be provided under this Agreement or otherwise is required
to be reduced pursuant to this <U>Section&nbsp;3.9</U>, the Company will effect such reduction by reducing the lump sum cash payment related to Base Salary (a &#147;<B>Reduction</B>&#148;). In the event that, after such Reduction any payment or
benefit intended to be provided under this Agreement or otherwise is still required to be reduced pursuant to this <U>Section&nbsp;3.9</U>, the Company will effect such reduction by reducing other consideration due to Executive. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>3.10 <U>Removal from any Boards and Positions</U></B>. If Executive&#146;s employment is terminated for any reason under this Agreement,
this Agreement will constitute his automatic resignation from (i)&nbsp;if a member, the board of directors of any subsidiary of the Company or any other board to which he has been appointed or nominated by or on behalf of the Company, (ii)&nbsp;any
position with the Company or any subsidiary of the Company, including, but not limited to, as an officer of the Company or any of its subsidiaries, and (iii)&nbsp;any fiduciary positions with respect to the Company&#146;s benefit plans.<B> </B></P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">8 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>ARTICLE IV </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>EXCLUSIVITY OF SERVICES AND RESTRICTIVE COVENANTS </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>4.1 <U>Confidential Information</U></B>. Executive acknowledges and agrees that the Confidential Information (as defined below) of the
Company and its subsidiaries and any other entity related to the Company (each, a &#147;<B>VASCO Entity</B>&#148;) that he obtained during the course of his employment by the Company is the property of the Company or such other VASCO Entity.
Executive will never, directly or indirectly, disclose, publish or use any Confidential Information of which Executive has become aware, whether or not such information was developed by him. All duties and obligations set forth in this Agreement
regarding Confidential Information shall be in addition to those which exist under the Illinois Trade Secrets Act and at common law.<B> </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B></B>As used in this Agreement, &#147;<B>Confidential Information</B>&#148; means information that is not generally known to the public and
that was or is used, developed or obtained by the Company or any other VASCO Entity, in connection with its businesses, including but not limited to:<B> </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(i) products or services, unannounced products or services, product or service development information (or other proprietary
product or service information); </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(ii) fees, costs, bids and pricing structures and quotations or proposals given to
agents, distributors, vendors, contractors, licensors, licensees, customers, or prospective agents, distributors, vendors, contractors, licensors, licensees or customers, or received from any such person or entity; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(iii) accounting or financial records; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(iv) strategic business plans; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(v) information system applications or strategies; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(vi) customer and vendor lists and employee lists and directories; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(vii) marketing plans, bidding strategies and processes, and negotiation strategies, whether past, current, or future; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(viii) accounting and business methods; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(ix) legal advice and/or attorney work product; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(x) trade secrets and other proprietary information; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(xi) information, analysis or strategies regarding acquisitions, mergers, other business combinations, divestitures,
recapitalizations, or new ventures; and </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(xii) nonpublic information that was acquired by Executive concerning the
requirements and specifications of the Company&#146;s or any other VASCO Entity&#146;s agents, distributors, vendors, contractors, licensors, licensees, customers, or potential customers. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">9 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Notwithstanding anything to the contrary, Confidential Information does not include any
information that: (a)&nbsp;is publicly disclosed by law or pursuant to, and to the extent required by, an order of a court of competent jurisdiction or governmental agency; (b)&nbsp;becomes publicly available through no fault of Executive; or
(c)&nbsp;has been published in a form generally available to the public before Executive proposes to disclose, publish, or use such information. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>4.2 <U>Noncompetition</U></B>. During the Employment Period and for the 12-month period following the termination of the Employment Period
for any reason (the &#147;<B>Restricted Period</B>&#148;), Executive will not, on behalf of himself or any other entity, have an ownership interest in or become employed or engaged by, or otherwise participate in or render services to, any business
or enterprise (including, without limitation, any division, group or franchise of a larger organization) within the Geographical Area (as defined below) that engages in any data security business or any other business engaged in by the Company;
<I>provided</I>, <I>however</I>, that the this restriction shall not prohibit Executive from passive beneficial ownership of less than two&nbsp;percent of any class of securities of a publicly-held corporation whose stock is traded on a U.S.
national securities exchange or traded in the over-the-counter market. For the purpose of this provision, &#147;<B>Geographical Area</B>&#148; means North America, Central America, South America, the Caribbean, Europe, the Middle East, Africa,
India, the Australian continent and Asia. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>4.3 <U>Non-Solicitation</U></B>. During the Restricted Period, Executive shall not (other
than in furtherance of Executive&#146;s legitimate job duties on behalf of Company), directly or indirectly, on Executive&#146;s own behalf or for any other person or entity: (i)&nbsp;solicit for employment, hire or engage, or attempt to solicit for
employment, hire or engage, any person who is or was employed by the Company within the six month period prior to the date of solicitation, hire or engagement, or (ii)&nbsp;otherwise interfere with the relationship between any such person and the
Company. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>4.4 <U>Non-Interference with Business Relationships</U></B>. During the Restricted Period, Executive shall not (other than in
furtherance of Executive&#146;s legitimate job duties on behalf of the Company), directly or indirectly, on Executive&#146;s own behalf or for any other person or entity: (i)&nbsp;induce or attempt to induce any customer, distributor, agent,
licensor, licensee, contractor, vendor or other business relation that was doing business with any VASCO Entity during the one-year period prior to the inducement or attempted inducement to reduce or cease doing business with the Company or any
VASCO Entity, or otherwise interfere with the relationship between such person (or entity) and any VASCO Entity; (ii)&nbsp;induce or attempt to induce any prospective customer, distributor, agent, licensor, licensee, contractor, vendor or other
prospective business relation located in the Geographical Area with which any VASCO Entity has had communications during the six-month period prior to the inducement or attempted inducement regarding doing business with the Company or any other
VASCO Entity to not do business or to do reduced business with the Company or any other VASCO Entity, or otherwise interfere with the relationship between such person (or entity) and any VASCO Entity. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">10 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>4.5 <U>Equitable Modification</U></B>. If any court of competent jurisdiction shall deem any
provision in this <U>Article IV</U> too restrictive, the other provisions shall stand, and the court shall modify the unduly restrictive provision to the point of greatest restriction permissible by law. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>4.6 <U>Remedies</U></B>. Executive acknowledges that the agreements and covenants contained in this <U>Article IV</U> are essential to
protect the Company and its business and are a condition precedent to entering into this Agreement. Should Executive breach any covenants in this <U>Article IV</U>, then among other remedies, the duration of the covenant shall be extended by the
period of any such breach. Executive agrees that irreparable harm would result from Executive&#146;s breach or threat to breach any provision of this <U>Article IV</U>, and that monetary damages alone would not provide adequate relief to the Company
for the harm incurred. Executive agrees that in addition to money damages, the Company shall be entitled to seek and obtain temporary, preliminary and permanent injunctive relief restraining Executive from committing or continuing any breach without
being required to post a bond. Without limiting the foregoing, upon a breach by Executive of any provision of this <U>Article IV</U>, any outstanding Severance Pay shall cease and be forfeited, and Executive shall immediately reimburse the Company
for any Severance Pay previously paid. </P> <P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>ARTICLE V </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>POST-TERMINATION OBLIGATIONS </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>5.1 <U>Return of Company Materials</U></B>. No later than three business days following the termination of Executive&#146;s employment for
any reason, Executive shall return to the Company all company property that is then in Executive&#146;s possession, custody or control, including, without limitation, all keys, access cards, credit cards, computer hardware and software, documents,
records, policies, marketing information, design information, specifications and plans, data base information and lists, and any other property or information that Executive has or had relating to the Company (whether those materials are in paper or
computer-stored form), and including but not limited to any documents containing, summarizing, or describing any Confidential Information. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>5.2 <U>Executive Assistance</U></B>. During Executive&#146;s employment with the Company and for a period of 3 years after the termination
of such employment, Executive shall, upon reasonable notice, furnish the Company with such information as may be in Executive&#146;s possession or control, and cooperate with the Company in any reasonable manner that the Company may request,
including without limitation conferring with the Company with regard to any litigation, claim, or other dispute in which the Company is or may become a party. The Company shall reimburse Executive for all reasonable out-of-pocket expenses incurred
by Executive in fulfilling Executive&#146;s obligations under this <U>Section&nbsp;5.2</U>. The Company will make any such reimbursement within 30 days of the date Executive provides the Company with documentary evidence of such expense consistent
with the policies of the Company. The Company will also pay Executive a reasonable fee per hour for his assistance during the two years commencing on the first anniversary of termination of his employment with the Company. Notwithstanding anything
to the contrary, any such reimbursement shall be administered so as to comply with Treasury Regulation Section&nbsp;1.409A-3(i)(1)(iv). </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">11 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>ARTICLE VI </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>MISCELLANEOUS </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>6.1
<U>Notices</U></B>. Any notices, consents or other communications required or permitted to be sent or given hereunder shall be in writing and shall be deemed properly served if (a)&nbsp;delivered personally, in which case the date of such notice
shall be the date of delivery; (b)&nbsp;delivered prepaid to a nationally recognized overnight courier service, in which case the date of delivery shall be the next business day; or (c)&nbsp;sent by facsimile transmission (with a copy sent by
first-class mail), in which case the date of delivery shall be the date of transmission, or if after 5:00 P.M., the next business day. If not personally delivered, notice shall be sent using the addresses set forth below: </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">If to Executive, to the address listed on the signature page or the last address on file in the records of the Company. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">If to the Company: </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="100%"></TD></TR>


<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">VASCO Data Security International, Inc.</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">1901 South Meyers Road</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Suite 210</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Oakbrook Terrace, IL 60181-5206</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Attention: Chief Executive Officer</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Telecopy: (630) 932-8852</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">with a copy to:</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Katten Muchin Rosenman LLP</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">525 West Monroe St.</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Chicago, IL 60661</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Attention Matthew Brown</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Telecopy: (312) 902-1061</TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">or such other address as may hereafter be specified by notice given by either party to the other party. Executive shall
promptly notify the Company of any change in his address set forth on the signature page. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>6.2 <U>Withholding</U></B>. The Company may
withhold from any payment that it is required to make under this Agreement amounts sufficient to satisfy applicable withholding requirements under any federal, state or local law, as well as any other amounts due and owing to the Company from
Executive. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>6.3 <U>Successors and Assigns</U></B>. This Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective heirs, personal representatives, successors and assigns; <I>provided</I> that Executive may not assign any of his rights or obligations under this Agreement without the Company&#146;s prior written consent. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>6.4 <U>Nonalienation of Benefits</U></B>. Benefits payable under this Agreement shall not be subject in any manner to anticipation,
alienation, sale, transfer, assignment, pledge, </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">12 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">
encumbrance, charge, garnishment, execution or levy of any kind, either voluntary or involuntary, prior to actually being received by Executive, and any such attempt to dispose of any right to
benefits payable hereunder shall be void. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>6.5 <U>Amendment; Waiver</U></B>. No failure or delay by the Company or Executive in
enforcing or exercising any right or remedy hereunder will operate as a waiver thereof. No modification, amendment or waiver of this Agreement or consent to any departure by Executive from any of the terms or conditions thereof, will be effective
unless in writing and signed by the Chairman of the Committee. Any such waiver or consent will be effective only in the specific instance and for the purpose for which given. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>6.6 <U>Severability; Survivability</U></B>. If any term or provision of this Agreement shall be held to be invalid or unenforceable, the
remaining terms and provisions hereof shall not be affected thereby and shall be enforced to the fullest extent permitted under law. Executive&#146;s obligations in <U>Articles IV</U> and <U>V</U> shall survive and continue in full force
notwithstanding the termination of this Agreement or Executive&#146;s employment for any reason. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>6.7 <U>Execution in
Counterparts</U></B>. This Agreement may be executed in one or more counterparts, each of which shall be considered an original instrument, but all of which shall be considered one and the same agreement. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>6.8 <U>Governing Law; Consent to Jurisdiction; Waiver of Jury</U></B>. This Agreement shall be governed by and construed in accordance with
the internal laws of the State of Illinois, without regard to its conflict of law principles. For the purposes of any suit, action, or other proceeding arising out of this Agreement or with respect to Executive&#146;s employment hereunder, the
parties: (i)&nbsp;agree to submit to the exclusive jurisdiction of the federal courts located in the Northern District of Illinois or state courts located in DuPage County, Illinois; (ii)&nbsp;waive any objection to personal jurisdiction or venue in
such jurisdiction, and agree not to plead or claim forum non conveniens; and (iii)&nbsp;waive their respective rights to a jury trial of any claims and causes of action, and agree to have any matter heard and decided solely by the court. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>6.9 <U>Construction</U></B>. The language used in this Agreement will be deemed to be the language chosen by Executive and the Company to
express their mutual intent, and no rule of strict construction will be applied against Executive or the Company. The heading in this Agreement are for convenience of reference only and will not limit or otherwise affect the meaning of the
provision. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>6.10 <U>Entire Agreement; Amendments</U></B>. This Agreement contains the entire understanding of the parties hereto with
regard to the subject matter contained herein, and supersedes all prior agreements, understandings or letters of intent with regard to the subject matter contained herein between the parties hereto. This Agreement shall not be amended, modified or
supplemented except by a written instrument signed by each of the parties hereto. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">13 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>IN WITNESS WHEREOF</B>, each of the parties hereto has duly executed this Employment
Agreement. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" COLSPAN="3"><B>VASCO DATA SECURITY INTERNATIONAL, INC.</B></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
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<TD VALIGN="top">Date: September&nbsp;28, 2015</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">By:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ John N. Fox, Jr.</P></TD></TR>
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<TD HEIGHT="8" COLSPAN="2"></TD>
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<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">Name:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">John N. Fox, Jr.</TD></TR>
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<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">Title:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Director and Chair of the Compensation</P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">Committee of the Board of Directors</P></TD></TR>
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<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" COLSPAN="3"><B>MARK STEPHEN HOYT</B></TD></TR>
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<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="4"></TD></TR>
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<TD VALIGN="top">Date: September&nbsp;28, 2015</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" COLSPAN="3"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ Mark Stephen Hoyt</P></TD></TR>
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<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">Address:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">c/o VASCO Data Security International, Inc.</TD></TR>
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<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">1901 South Meyers Road</TD></TR>
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<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
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<TD VALIGN="top">Oakbrook Terrace, Illinois 60181</TD></TR>
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<TD VALIGN="top">Phone:</TD>
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<TD VALIGN="top">(630) 932-8844</TD></TR>
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<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">Fax:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">(630) 932-8852</TD></TR>
</TABLE>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Exhibit 10.2 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>AWARD AGREEMENT FOR RESTRICTED SHARES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>UNDER THE </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>VASCO DATA
SECURITY INTERNATIONAL, INC. </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>2009 EQUITY INCENTIVE PLAN </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>THIS AWARD AGREEMENT FOR RESTRICTED SHARES</B> (this &#147;<B>Agreement</B>&#148;) is made as of October&nbsp;5, 2015 (the
&#147;<B>Effective Date</B>&#148;), between VASCO DATA SECURITY INTERNATIONAL, INC. (the &#147;<B>Company</B>&#148;) and Mark Stephen Hoyt (the &#147;<B>Grantee</B>&#148;). </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>WHEREAS</B>, the Company maintains the VASCO Data Security International, Inc. 2009 Equity Incentive Plan (as amended, the
&#147;<B>Plan</B>&#148;) for the benefit of its employees, directors, consultants, and other individuals who provide services to the Company; and </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>WHEREAS</B>, to induce Grantee to become an employee of the Company, compensate the Grantee for his service to the Company and to further
align the Grantee&#146;s personal financial interests with those of the Company&#146;s shareholders, the Company wishes to award the Grantee a number of shares of Common Stock (as defined below), subject to the restrictions and on the terms and
conditions contained in the Plan and this Agreement. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>NOW, THEREFORE</B>, in consideration of these premises and the agreements set
forth herein, the parties, intending to be legally bound hereby, agree as follows: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>1. <U>Grant of Restricted Shares</U></B>. The Company hereby grants
to the Grantee an award of 34,490 shares (the &#147;<B>Awarded Shares</B>&#148;) of the Company&#146;s common stock, par value of $0.001 per share (the &#147;<B>Common Stock</B>&#148;), subject to the terms and conditions set forth in this Agreement
and in the Plan. The terms of the Plan are hereby incorporated into this Agreement by this reference, as though fully set forth herein. Capitalized terms used but not defined in this Agreement have the meanings set forth in the Plan. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>2. <U>Vesting of Awarded Shares</U></B>. Subject to <U>Section&nbsp;11</U>, the Awarded Shares are subject to forfeiture to the Company until they become
vested in accordance with this <U>Section&nbsp;2</U>. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">(a) Subject to <U>Section&nbsp;11</U>, Awarded Shares will become vested in
accordance with the following schedule, provided that on each vesting date, the Grantee has, from the date hereof, continuously provided services to the Company or a subsidiary: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">(i) 12.5% of the Awarded Shares will vest on the six month anniversary date of the Effective Date; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">(ii) An additional 12.5% of the Awarded Shares will vest on the first annual anniversary date of the Effective Date; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">(iii) An additional 12.5% of the Awarded Shares will vest on the eighteen month anniversary date of the Effective Date; </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">(iv) An additional 12.5% of the Awarded Shares will vest on the second annual anniversary date of
the Effective Date; </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">(v) An additional 12.5% of the Awarded Shares will vest on the thirty month anniversary date of the Effective Date;
</P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">(vi) An additional 12.5% of the Awarded Shares will vest on the third annual anniversary date of the Effective Date; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">(vii) An additional 12.5% of the Awarded Shares will vest on the forty-second month anniversary date of the Effective Date; and </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">(viii) The final 12.5% of the Awarded Shares will vest on the fourth annual anniversary date of the Effective Date. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">(b) If contemporaneous with or within 18 months after a Change in Control that occurred during the Employment Period, (a)&nbsp;the Company
terminates the Executive&#146;s employment without Cause, or (b)&nbsp;Executive terminates his employment for Good Reason, 100% of the Awarded Shares will become vested upon such termination of employment. &#147;<B>Good Reason</B>&#148; shall be
defined for this purpose as defined in the Employment Agreement, dated as of the Effective Date, between Grantee and the Company. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">(c) If
the Grantee&#146;s service with the Company ceases by reason of the Grantee&#146;s death or Disability, 100% of the Awarded Shares will become vested immediately prior to (and contingent on) the occurrence of such death or Disability.
Notwithstanding the foregoing, a Disability will not qualify if it is the result of (A)&nbsp;a willfully self-inflicted injury or willfully self-induced sickness; or (B)&nbsp;an injury or disease contracted, suffered, or incurred while participating
in a criminal offense. The determination of Disability will be made by the Committee. The determination of Disability for purposes of this Agreement shall not be construed to be an admission of disability for any other purpose. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">(d) Except as provided in <U>Sections 2(b)</U> and <U>2(c)</U>, upon cessation of the Grantee&#146;s service with the Company for any reason or
for no reason (and whether such cessation is initiated by the Company, the Grantee or otherwise): (i)&nbsp;any Awarded Shares that have not, prior to such cessation, become vested will immediately and automatically, without any action on the part of
the Company, be forfeited, and (ii)&nbsp;the Grantee shall have no further rights with respect to those Awarded Shares. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">(e) Solely for
purposes of this Agreement, service with the Company shall be deemed to include service with any subsidiary of the Company (for only so long as such entity remains a subsidiary). </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">2 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">(f) For purposes of this Agreement, &#147;<B>Cause</B>&#148; and &#147;<B>Wrongful Act</B>&#148;
mean: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">(i) Grantee materially breaches Grantee&#146;s obligations under any employment, consulting, or other agreement between the Grantee
(or any entity of which Grantee is an affiliate) and the Company (each, a &#147;<B>Company Agreement</B>&#148;); </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">(ii) Grantee materially
breaches Grantee&#146;s obligations under the Company&#146;s Code of Ethics and Conduct (or any successor thereto) or an established policy of the Company; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">(iii) Grantee engages in conduct prohibited by law (other than minor violations), commits an act of dishonesty, fraud, or serious or willful
misconduct in connection with Grantee&#146;s job duties, or engages in unethical or immoral conduct that, in the reasonable judgment of the Committee, could injure the integrity, character or reputation of Company; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">(iv) Grantee fails or refuses to perform, or habitually neglects, Grantee&#146;s duties and responsibilities under any Company Agreement (other
than on account of Disability), and continues such failure, refusal or neglect after having been given written notice by the Company that specifies what duties Grantee failed to perform and an opportunity to cure of 30 days; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">(v) Use or disclosure by Grantee of confidential information or trade secrets other than in the furtherance of the Company&#146;s (or its
subsidiaries&#146;) business interests, or other violation of a fiduciary duty to the Company (including, without limitation, entering into any transaction or contractual relationship causing diversion of business opportunity from the Company (other
than with the prior written consent of the Board)); or </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">(vi) Grantee fails to reasonably cooperate with any audit or investigation
involving the Company or its business practices after having been given written notice by the Company that specifies Grantee&#146;s failure to cooperate and an opportunity to cure of 10 days. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>3. <U>Escrow of Shares</U></B>. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">(a)
Certificates evidencing the Awarded Shares issued under this Agreement shall be held in escrow by the Secretary of the Company or his or her designee (the &#147;<B>Escrow Holder</B>&#148;) (or, if the Awarded Shares are not certificated, shall be
entered in the stock record books of the Company as held in escrow by the Escrow Holder) until such Awarded Shares are vested in accordance with <U>Section&nbsp;2</U>, at which time, the Escrow Holder shall deliver such certificates representing the
Awarded Shares to the Grantee (or, if the Awarded Shares are not certificated, the Awarded Shares shall be entered in the stock record books of the Company as held and owned by the Grantee); <U>provided</U>, <U>however</U>, that no certificates for
Awarded Shares will be delivered to the Grantee (or, if the Awarded Shares are not certificated, no transfer of the Awarded Shares will be entered in the stock record books of the Company) until appropriate arrangements have been made with the
Company for the withholding or payment of any taxes that may be due with respect to such Awarded Shares. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">3 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">(b) If any of the Awarded Shares are forfeited by the Grantee under <U>Section&nbsp;2</U>, upon
request by the Company, the Escrow Holder will deliver any stock certificate(s) evidencing those Awarded Shares to the Company (or, if the Awarded Shares are not certificated, such forfeiture will be entered in the stock record books of the
Company), and the Company will then have the right to retain and transfer those Awarded Shares to its own name free and clear of any rights of the Grantee under this Agreement or otherwise. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">(c) The Escrow Holder is hereby directed to permit transfer of the Awarded Shares only in accordance with this Agreement or in accordance with
instructions signed by both parties hereto. In the event further instructions are reasonably desired by the Escrow Holder, he or she will be entitled to conclusively rely upon directions executed by a majority of the members of the Board. The Escrow
Holder will have no liability for any act or omissions hereunder while acting in good faith in the exercise of his or her own judgment. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>4. <U>Stock
Splits, etc</U></B>. If, while any of the Awarded Shares remain subject to vesting under <U>Section&nbsp;2</U>, there occurs any merger, consolidation, reorganization, reclassification, recapitalization, stock split, stock dividend, or other similar
change in the Common Stock, then any and all new, substituted or additional securities or other consideration to which the Grantee is entitled by reason of the Grantee&#146;s ownership of the Awarded Shares will be immediately subject to the escrow
contemplated by <U>Section&nbsp;3</U>, deposited with the Escrow Holder and will thereafter be included in the term &#147;Awarded Shares&#148; for all purposes of the Plan and this Agreement. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>5. <U>Dividends and Distributions During Restricted Period</U></B>. The Grantee will have the right to receive dividends and distributions with respect to
the Awarded Shares; <U>provided</U>, <U>however</U>, that any cash dividends or distributions paid in respect of the Awarded Shares while those Shares remain subject to forfeiture will become vested and delivered to the Grantee only if and when the
Awarded Shares giving rise to such dividends or distributions become vested under <U>Section&nbsp;2</U>. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>6. <U>Tax Consequences</U></B>. The Grantee
acknowledges that the Company has not advised the Grantee regarding the Grantee&#146;s income tax liability in connection with the grant, receipt or vesting of the Awarded Shares. The Grantee has reviewed with the Grantee&#146;s own tax advisors the
federal, state, local and foreign tax consequences of this investment and the transactions contemplated by this Agreement. The Grantee is relying solely on such advisors and not on any statements or representations of the Company or any of its
agents. The Grantee understands that the Grantee (and not the Company) will be responsible for the Grantee&#146;s own tax liability that may arise as a result of the transactions contemplated by this Agreement. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>7. <U>Restrictions on Unvested Awarded Shares</U></B>. Except for the escrow described in <U>Section&nbsp;3</U> or the forfeiture of Awarded Shares to the
Company described in <U>Section&nbsp;2</U>, the Grantee may not sell, pledge, assign, encumber, hypothecate, gift, transfer, bequeath, devise, </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">4 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">
donate or otherwise dispose of, in any way or manner whatsoever, whether voluntary or involuntary, any legal or beneficial interest in any of the Awarded Shares until the Awarded Shares become
vested in accordance with <U>Section&nbsp;2</U>; <U>provided</U>, <U>however</U>, that the restrictions of this <U>Section&nbsp;7</U> shall not apply to any transfer i) pursuant to applicable laws of descent and distribution or (ii)&nbsp;among
Grantee&#146;s family group; provided that such restrictions will continue to be applicable to the Awarded Shares after any such transfer and the transferees of such Awarded Shares have agreed in writing to be bound by the provisions of this
Agreement. Grantee&#146;s &#147;family group&#148; means Grantee&#146;s spouse and descendants (whether natural or adopted) and any trust solely for the benefit of Grantee and/or Grantee&#146;s spouse and/or descendants during Grantee&#146;s
lifetime. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>8. <U>Legend</U></B>. Share certificates evidencing Awarded Shares will bear the following legend to be placed on all certificates
evidencing any Awarded Shares (in addition to any other legends that may be required to be placed on such certificates pursuant to the Plan, applicable law or otherwise): </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B>THE TRANSFERABILITY OF THIS CERTIFICATE AND THE SHARES REPRESENTED HEREBY ARE SUBJECT TO THE TERMS AND CONDITIONS (INCLUDING FORFEITURE) OF
THE VASCO DATA SECURITY INTERNATIONAL, INC. 2009 EQUITY INCENTIVE PLAN AND AN AGREEMENT ENTERED INTO BETWEEN THE REGISTERED OWNER AND VASCO DATA SECURITY INTERNATIONAL, INC. COPIES OF SUCH PLAN AND AGREEMENT ARE ON FILE IN THE PRINCIPAL OFFICES OF
VASCO DATA SECURITY INTERNATIONAL, INC. AND WILL BE MADE AVAILABLE TO ANY SHAREHOLDER WITHOUT CHARGE UPON REQUEST TO THE SECRETARY OF THE COMPANY.</B> </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Upon request by the Grantee, following vesting of the Awarded Shares pursuant to <U>Section&nbsp;2</U>, the Company will remove the legend from the
certificates evidencing such vested Awarded Shares. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>9. <U>Rights of Grantee</U></B>. Prior to the Awarded Shares becoming vested in accordance with
<U>Section&nbsp;2</U>, with respect to the Awarded Shares, Grantee will have all of the rights of a shareholder of the Company, including the right to vote the Awarded Shares and the right to receive any distributions or dividends payable on Shares,
subject to the reinvestment and forfeiture provisions of the Plan and to <U>Sections 4</U> and <U>5</U>. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>10. <U>Securities Laws</U></B>. The Company
may from time to time impose any conditions on the Awarded Shares as it deems necessary or advisable to ensure that the Plan satisfies the conditions of Rule 16b-3 adopted under the Securities and Exchange Act of 1934 and otherwise complies with
applicable rules and laws. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>11. <U>Recoupment of Awarded Shares</U></B>. Notwithstanding anything in this Agreement to the contrary, if the Company
determines that the Grantee&#146;s Wrongful Act was a significant contributing factor to the Company or a subsidiary having to restate all or a portion of its financial statements, all outstanding Awarded Shares will immediately and automatically be
forfeited and the Grantee shall promptly repay to the Company any Common Stock, cash or other property paid in respect of any Awarded Share during the Recoupment Period. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">5 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>12. <U>General Provisions</U> </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">(a) This Agreement, together with the Plan, represent the entire agreement between the parties with respect to the purchase of the Awarded
Shares and may only be modified or amended in a writing signed by both parties. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">(b) Any notice, demand or request required or permitted to
be given by either the Company or the Grantee pursuant to the terms of this Agreement must be in writing and will be deemed given (i)&nbsp;on the date and at the time delivered via personal, courier or recognized overnight delivery service,
(ii)&nbsp;if sent via telecopier on the date and at the time telecopied with confirmation of delivery, (iii)&nbsp;if sent via email or other electronic delivery and receipt is confirmed, on the date and at the time received, or (iv)&nbsp;if mailed,
on the date five days after the date of the mailing (which must be by registered or certified mail). Delivery of a notice by telecopy (with confirmation) or by email or other electronic delivery (with confirmation or receipt) will be permitted and
will be considered delivery of a notice notwithstanding that it is not an original that is received. Any notice to Grantee under this Agreement will be made to Grantee at the address (or telecopy number, email or other electronic address, as the
case may be) listed in the Company&#146;s personnel files. If directed to the Company, any such notice, demand or request will be sent to the Chairman of the Committee at the Company&#146;s principal executive office, or to such other address or
person as the Company may hereafter specify in writing. Any notice to the Escrow Holder will be sent to the Company&#146;s address, with a copy to the other party not sending the notice. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">(c) The Company may condition delivery of certificates for Awarded Shares (or, if the Awarded Shares are not certificated, the entry in the
stock record books of the Company of the transfer to the Grantee of the Awarded Shares) upon the prior receipt from Grantee of any undertakings which it may determine are required to assure that the certificates are being issued in compliance with
federal and state securities laws. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">(d) The Grantee has received a copy of the Plan, has read the Plan and is familiar with its terms, and
hereby accepts the Awarded Shares subject to all of the terms and provisions of the Plan, as amended from time to time. Pursuant to the Plan, the Board and the Committee are authorized to interpret the Plan and to adopt rules and regulations not
inconsistent with the Plan as they deem appropriate. The Grantee hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Board or the Committee upon any questions arising under the Plan. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">(e) Neither this Agreement nor any rights or interest hereunder will be assignable by the Grantee, the Grantee&#146;s beneficiaries or legal
representatives, and any purported assignment in violation hereof will be null and void. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">(f) Either party&#146;s failure to enforce any
provision or provisions of this Agreement will not in any way be construed as a waiver of any such provision or provisions, nor </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">6 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">
prevent that party thereafter from enforcing each and every other provision of this Agreement. The rights granted both parties herein are cumulative and will not constitute a waiver of either
party&#146;s right to assert all other legal remedies available to it under the circumstances. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">(g) The grant of Awarded Shares hereunder
does not confer upon the Grantee any right to continue in service with the Company or any of its subsidiaries. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">(h) The Awarded Shares and
any related dividends or distributions are intended to be exempt from the requirements of Internal Revenue Code Section&nbsp;409A. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">(i)
This Agreement shall be governed by, and enforced in accordance with, the laws of the State of Delaware, without regard to the application of the principles of conflicts or choice of laws. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">(j) This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, and all of which together shall be deemed to be one
and the same instrument. In the event that any signature to this Agreement is delivered by facsimile transmission or by e-mail delivery of a &#147;.pdf&#148; 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 &#147;.pdf&#148; signature page were an original thereof. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><I>[Signature Page Follows] </I></P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">7 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><I>[SIGNATURE PAGE TO AWARD AGREEMENT FOR RESTRICTED SHARES] </I></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>IN WITNESS WHEREOF</B>, the parties have duly executed this Award Agreement intending it to be effective as of the first date written
above. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><DIV ALIGN="right">
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<TD VALIGN="top" COLSPAN="3"><B>VASCO DATA SECURITY INTERNATIONAL, INC.</B></TD></TR>
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<TD HEIGHT="16"></TD>
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<TD VALIGN="top">By:</TD>
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<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ John N. Fox, Jr.</P></TD></TR>
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<TD VALIGN="top">Its:</TD>
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<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">Director and Chair of the Compensation Committee of the Board of Directors</P></TD></TR>
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<TD VALIGN="top" COLSPAN="3"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ Mark Stephen Hoyt</P></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" COLSPAN="3">Mark Stephen Hoyt</TD></TR>
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 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">8 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Exhibit 99.1 </B></P>
<P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman"><B>VASCO Names Former Groupon EMEA CFO Mark Hoyt as Chief Financial Officer </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">OAKBROOK TERRACE, IL and ZURICH, October&nbsp;5, 2015 /PRNewswire/ &#151; VASCO Data Security International, Inc. (NASDAQ:&nbsp;VDSI), a global leader in
authentication, electronic signatures, and identity management, announced today that Mark&nbsp;Hoyt has joined the company. He will serve as Chief Financial Officer, Secretary and Treasurer commencing on the first day immediately following the
filing of the Company&#146;s Form 10-Q for the quarter ending September&nbsp;30, 2015. Cliff Bown, VASCO Executive Vice President and Chief Financial Officer will remain with VASCO in a consulting capacity through his planned retirement in May,
2016. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Hoyt has held a number of senior finance positions in the technology field, most recently serving as the Chief Financial Officer of Groupon, Inc.
operations in Europe, Middle East and Africa based in Switzerland. Hoyt was promoted by Groupon in 2012 from the position of Vice President of International Financial Operations based in Chicago.&nbsp;He helped lead Groupon through a period of rapid
growth and international expansion. Hoyt is a CPA and began his career at PricewaterhouseCoopers, followed by international positions at Motorola, Inc. and CareerBuilder. He holds an M.B.A. from the University of Chicago Booth School of Business and
a B.S. in Accountancy from Miami University. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">&#147;Mark is a seasoned finance executive with extensive international experience and will be an
outstanding addition to the VASCO team as we work to accelerate our growth in new markets including protecting mobile applications,&#148; stated&nbsp;T. Kendall Hunt, Chairman&nbsp;&amp; CEO of VASCO. &#147;His experience in high-growth environments
with technology products used by large numbers of customers is a perfect fit for VASCO and our many millions of end users in banking and other consumer-focused segments.&#148; </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">&#147;VASCO has an incredible record of growth and leadership in providing security solutions to the financial community,&#148; stated Hoyt. &#147;I am
excited to join a company with remarkably innovative solutions such as Cronto technology and DIGIPASS for Apps which position VASCO to transform the way that banks and other large organizations protect their customers by delivering higher levels of
security while making the process nearly transparent to the user.&#148; </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>About VASCO </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">VASCO is a world leader in providing two-factor authentication and digital signature solutions to financial institutions. Many of the top 100 global banks rely
on VASCO solutions to enhance security, protect mobile applications and meet regulatory requirements. VASCO also secures access to data and applications in enterprise environments, and provides tools for application developers to easily integrate
security functions into their web-based and mobile applications. VASCO enables more than 10,000 customers in 100&nbsp;countries to secure access, manage identities, verify transactions, and protect assets across financial, enterprise, E-commerce,
government and healthcare markets. Learn more about VASCO at vasco.com and on&nbsp;<U>Twitter</U>,&nbsp;<U>LinkedIn</U>&nbsp;and <U>Facebook</U>. </P>
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