Common use of Approval of Deliverables Clause in Contracts

Approval of Deliverables. 7.1 If Digimarc fails to produce a Deliverable acceptable to BIS by the date set out in the applicable Statement of Work, or in the case where the Statement of Work requires the parties to agree on whether a Deliverable is acceptable, if the parties fail to agree for any reason by the date specified in the Statement of Work or, if no date is specified, within ten (10) Business Days after a party’s Contract Authority asks the other party’s Contract Authority for agreement, then the DLA Contract Authority may, in its sole discretion, by written notice to Digimarc, either: (a) allow additional time for Digimarc to produce a Deliverable acceptable to BIS or for the parties to come to agreement, whereupon the time for completion of all other Deliverables which depend on the acceptance or agreement will be automatically extended by one day for each additional day or such other period as may be agreed in writing between the parties’ respective Contract Authorities; or (b) cancel any further Work on the Deliverable and all Deliverables which depend on the acceptance or agreement, whereupon the Statement or Statements of Work which provide for the cancelled Work or Deliverables will be deemed to be amended to exclude them. 7.2 Neither party shall refer for arbitration any failure to agree referred to in clause 7.1.

Approval of Deliverables. 7.1 If Digimarc fails to produce a Deliverable acceptable to BIS [**] by the date set out in the applicable Statement of Work, or in the case where the Statement of Work requires the parties to agree on whether a Deliverable is acceptable, if the parties fail to agree for any reason by the date specified in the Statement of Work or, if no date is specified, within ten (10) Business Days after a party’s Contract Authority asks the other party’s Contract Authority for agreement, then the DLA Contract Authority may, in its sole discretion, by written notice to Digimarc, either: (a) allow additional time for Digimarc to produce a Deliverable acceptable to BIS [**] or for the parties to come to agreement, whereupon the time for completion of all other Deliverables which depend on the acceptance or agreement will be automatically extended by one day for each additional day or such other period as may be agreed in writing between the parties’ respective Contract Authorities; or (b) cancel any further Work on the Deliverable and all Deliverables which depend on the acceptance or agreement, whereupon the Statement or Statements of Work which provide for the cancelled Work or Deliverables will be deemed to be amended to exclude them. 7.2 Neither party shall refer for arbitration any failure to agree referred to in clause 7.1.

Approval of Deliverables. 7.1 If Digimarc fails to produce a Deliverable acceptable to BIS [*] by the date set out in the applicable Statement of Work, or in the case where the Statement of Work requires the parties to agree on whether a Deliverable is acceptable, if the parties fail to agree for any reason by the date specified in the Statement of Work or, if no date is specified, within ten (10) Business Days after a party’s 's Contract Authority asks the other party’s 's Contract Authority for agreement, then the DLA Contract Authority may, in its sole discretion, by written notice to Digimarc, either: (a) allow additional time for Digimarc to produce a Deliverable acceptable to BIS [*] or for the parties to come to agreement, whereupon the time for completion of all other Deliverables which depend on the acceptance or agreement will be automatically extended by one day for each additional day or such other period as may be agreed in writing between the parties’ ' respective Contract Authorities; or (b) cancel any further Work on the Deliverable and all Deliverables which depend on the acceptance or agreement, whereupon the Statement or Statements of Work which provide for the cancelled Work or Deliverables will be deemed to be amended to exclude them. 7.2 Neither party shall refer for arbitration any failure to agree referred to in clause 7.1. [*] Omitted pursuant to a confidential treatment request. The material has been filed separately with the Securities and Exchange Commission.