Document:

EXHIBIT 10.2

 

EMPLOYMENT
AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (the “Agreement”) is made and entered into as
of this 14th day of September, 2005, by and between CERTEGY, INC., a Georgia corporation (the “Company”), and LEE A. KENNEDY (the “Employee”).

 

RECITALS:

 

WHEREAS, the Company and Employee have previously entered into a letter
agreement dated May 2002 (“Prior Agreement”) specifying the payments and
benefits payable to the Employee in the event the Employee’s employment is
terminated in connection with a “Change in Control” of the Company (as defined
in the Prior Agreement); and

 

WHEREAS, the Company entered into an Agreement and Plan of Merger (the “Merger
Agreement”) dated the date hereof with C Co Merger Sub, LLC and Fidelity
National Information Services, Inc.; and

 

WHEREAS, the Merger constitutes a Change in Control as defined in the
Prior Agreement; and

 

WHEREAS, the Company desires to terminate the Prior Agreement and enter
into this Agreement to recognize Employee’s superior performance and continuing
value to the Company and its shareholders; and

 

WHEREAS, Employee desires to continue his employment with the Company
on the terms and conditions provided herein

 

NOW, THEREFORE, in consideration of the mutual covenants and agreements
set forth herein, the parties agree as follows:

 

1.                                       Purpose
and Effectiveness.

 

(a)                                  The purpose of this Agreement is
to terminate the Prior Agreement, to recognize Employee’s significant
contributions to the overall financial performance and success of the Company,
to protect the Company’s business interests through the addition of restrictive
covenants, and to provide a single, integrated document which shall provide the
basis for Employee’s continued employment by the Company;

 

(b)                                 In consideration of and
immediately upon the termination of the Prior Agreement, the Company shall pay
to Employee $6,250,000 and Employee shall release all rights and claims that
Employee has, had or may have against the Company pursuant to or arising under
such Prior Agreement or with respect to any other benefits to which Employee
may be entitled as a result of the Merger; and

 

 

(c)                                  This Agreement shall not be
effective until the Effective Time (as defined in the Merger Agreement) (the “Effective
Date”), and this Agreement shall terminate immediately if the Merger Agreement
is terminated in accordance with its terms prior to the Effective Time.

 

2.                                       Employment and Duties.  Subject to the terms and conditions of this
Agreement, the Company employs the Employee to serve in an executive capacity
as Chief Executive Officer.  Employee
accepts such employment and agrees to undertake and discharge the duties,
functions and responsibilities commensurate with said position and as they are
from time to time assigned to the Employee by the Board of Directors of the
Company (the “Board”) consistent with the terms and provisions of this
Agreement.

 

3.                                       Term and Place of Employment.  The term of this Agreement shall commence on
the Effective Date and shall continue for a period of four years ending on the
fourth anniversary of the Effective Date, subject to prior termination as set
forth in Section 9 (the “Employment Term”).  Notwithstanding any termination of the
Employment Term or the Employee’s employment, the Employee and the Company
agree that Section 9 through 11 shall remain in effect until all parties’
obligations and benefits are satisfied thereunder.

 

4.                                       Salary.  During the Employment Term, the Company shall
pay the Employee an annual base salary, before deducting all applicable
withholdings, of $750,000 per year, payable at the time and in the manner
dictated by the Company’s standard payroll policies.  Such minimum annual base salary may be
periodically reviewed and increased at the Company’s discretion to reflect,
among other matters, cost of living increases and performance results (such
annual base salary, including any increases pursuant to this Section 4,
the “Annual Base Salary”).

 

5.                                       Other Compensation and Fringe
Benefits.  In addition to any executive bonus, pension,
deferred compensation and long-term incentive plans which the Company may from
time to time make available to the Employee, the Employee shall be entitled to
the following during the Employment Term:

 

(a)                                  the standard Company benefits
enjoyed by the Company’s other top executives as a group;

 

(b)                                 payment by the Company of the
Employee’s initiation and membership dues in all social and/or recreational
clubs as deemed necessary and appropriate by the Company to maintain various
business relationships on behalf of the Company; provided, however, that the
Company shall not be obligated to pay for any of the Employee’s personal
purchases and expenses at such clubs;

 

(c)                                  medical and other insurance
coverage (for the Employee and any covered dependents) provided by the Company
to its other top executives as a group;

 

(d)                                 supplemental disability
insurance sufficient to provide two-thirds of the Employee’s pre-disability
Annual Base Salary;

 

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(e)                                  an annual incentive bonus
opportunity (“Annual Bonus”) for each calendar year included in the Employment
Term, with such opportunity to be earned based upon attainment of performance
objectives established by the Compensation Committee (the “Committee”) of the
Board.  The Employee’s target Annual Bonus
opportunity shall be not less than 200% of the Employee’s Annual Base
Salary.  The Employee’s target Annual
Bonus opportunity may be periodically reviewed and increased (but not decreased
without the Employee’s express written consent) at the discretion of the
Company.  Subject to Section 9, the
Annual Bonus shall become fully vested at the end of each calendar year within
the Employment Term and shall be paid no later than March 15th of the
following year.

 

6.                                       Options.  In recognition of the value of the services
that Employee will provide to the Company under this Agreement, on the
Effective Date, the Company shall grant to the Employee a non-qualified option
to acquire 750,000 shares of the Company’s common stock (the “Options”).  The Options shall be granted pursuant to the
Company’s Stock Incentive Plan (the “Plan”) and shall be subject to the terms
and conditions of a stock option agreement and notice of stock option to be
issued pursuant to the Plan.  The Options
will have an eight-year term, will vest in three equal annual installments
beginning on the first anniversary of the Effective Date and ending on the
third anniversary of the Effective Date, and will be granted at an exercise
price equal to the closing price per share of the Company’s common stock as
quoted on the New York Stock Exchange on the Effective Date.

 

7.                                       Vacation.  For and during each calendar year within the
Employment Term, the Employee shall be entitled to reasonable paid vacation
periods consistent with his positions with the Company and in accordance with
the Company’s standard policies, or as the Board may approve. In addition, the
Employee shall be entitled to such holidays consistent with the Company’s
standard policies or as the Board or the Committee may approve.

 

8.                                       Expense Reimbursement.  In addition to the compensation and benefits
provided herein, the Company shall, upon receipt of appropriate documentation,
reimburse the Employee each month for his reasonable travel, lodging,
entertainment, promotion and other ordinary and necessary business expenses to
the extent such reimbursement is permitted under the Company’s expense
reimbursement policy.

 

9.                                       Termination of Employment.  The Company or the Employee may terminate the
Employee’s employment at any time and for any reason in accordance with subsection 9(a) below.  The Employment Term shall be deemed to have
ended on the last day of the Employee’s employment.  The Employment Term shall terminate
automatically upon the Employee’s death.

 

(a)                                  Notice of Termination.  Any purported termination of the Employee’s
employment (other than by reason of death) shall be communicated by written
Notice of Termination from one party hereto to the other party hereto in
accordance with the notice provisions contained in Section 27.  For purposes of this Agreement, a “Notice of
Termination” shall mean a notice that indicates the Date of Termination (as
that term is defined in Section 9(b)) and, with respect to a termination
due to Disability, Cause or Good Reason, sets forth in reasonable

 

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detail the facts and circumstances that are alleged to provide a basis
for such termination.  A Notice of
Termination from the Company shall specify whether the termination is with or
without Cause or due to the Employee’s Disability.  A Notice of Termination from the Employee
shall specify whether the termination is with or without Good Reason or due to
Disability.

 

(b)                                 Date of Termination.  For purposes of this Agreement, “Date of
Termination” shall mean the date specified in the Notice of Termination (but in
no event shall such date be earlier than the 30th day following the date the
Notice of Termination is given, unless expressly agreed to by the parties
hereto) or the date of the Employee’s death.

 

(c)                                  No Waiver.  The failure to set forth any fact or
circumstance in a Notice of Termination, which fact or circumstance was not
known to the party giving the Notice of Termination when the notice was given,
shall not constitute a waiver of the right to assert such fact or circumstance
in an attempt to enforce any right under or provision of this Agreement.

 

(d)                                 Cause.  For purposes of this Agreement, “Cause” means
the Employee’s (i) persistent failure to perform duties consistent with a
commercially reasonable standard of care (other than due to a physical or
mental impairment); (ii) willful neglect of duties (other than due to a
physical or mental impairment); (iii) conviction of, or pleading nolo
contendere to, criminal or other illegal activities involving dishonesty; or (iv) material
breach of this Agreement.  No act or
failure to act directly related to Company action or inaction that constitutes
Good Reason shall constitute Cause under this Agreement if the Employee has
provided a Notice of Termination based on such Good Reason event prior to the
Company’s giving of the Notice of Termination for Cause.  The Employee’s termination for Cause shall be
effective when and if a resolution is duly adopted by an affirmative vote of at
least three fourths (3⁄4) of the Board (less the Employee if the Employee is a
Director), stating that, in the good faith opinion of the Board, the Employee
is guilty of the conduct described in the Notice of Termination and such
conduct constitutes Cause under this Agreement; provided, however, that the
Employee shall have been given reasonable opportunity (i) to cure any act
or omission that constitutes Cause if capable of cure and (ii), together with
counsel, during the thirty (30) day period following the receipt by the
Employee of the Notice of Termination and prior to the adoption of the Board’s
resolution, to be heard by the Board.

 

(e)                                  Disability.  For purposes of this Agreement, the Employee
shall be deemed to have a Disability if the Employee is entitled to long-term
disability benefits under the Company’s long-term disability plan or policy, as
the case may be, as in effect on the Date of Termination.

 

(f)                                    Good Reason.  For purposes of this Agreement, the term “Good
Reason” means the occurrence (without the Employee’s express written consent)
during the Employment Term of any of the following acts or failures to act by
the Company:

 

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(i)                                     an adverse change in the
Employee’s title, the assignment to the Employee of duties materially
inconsistent with the Employee’s position of Chief Executive Officer, or a
substantial diminution in the Employee’s authority;

 

(ii)                                  the material breach by the
Company of any of its other obligations under this Agreement;

 

(iii)                               following a Change in Control,
the relocation of the Employee’s primary place of employment to a location more
than 50 miles from the Employee’s primary place of employment immediately prior
to the Change in Control; or

 

(iv)                              the
failure of the Company to obtain the assumption of this Agreement as contemplated in Section 23.

 

The Employee’s continued employment shall not constitute consent to, or
a waiver of rights with respect to, any act or failure to act constituting Good
Reason hereunder; provided, however, that no such event described above shall
constitute Good Reason unless the Employee has given a Notice of Termination to
the Company specifying the condition or event relied upon for such termination
within ninety (90) days from the Employee’s actual knowledge of the occurrence
of such event and, if capable of cure, the Company has failed to cure the
condition or event constituting Good Reason within the thirty (30) day period
following receipt of the Employee’s Notice of Termination.

 

10.                                 Obligations of the Company upon
Termination.

 

(a)                                  Termination by the Company for
other than Cause or Disability or Termination by the Employee for Good Reason.  If the Employee’s employment is terminated by
the Company for any reason other than Cause or Disability or by the Employee
(x) for Good Reason or (y) for any reason during the one (1) year period
that begins on the first anniversary of a Change in Control:

 

(i)                                     the Company shall pay to the
Employee, (A) within five (5) business days after the Date of
Termination, any earned but unpaid Annual Base Salary and any expense
reimbursement payments owed to the Employee, and (B) within five (5) business
days after the Date of Termination or, if later, by March 15 of the year
in which the Date of Termination occurs, any earned but unpaid Annual Bonus
payments relating to the prior calendar year (the “Accrued Obligations”);

 

(ii)                                  the Company shall pay to the
Employee, within thirty (30) business days after the Date of Termination, a
prorated Annual Bonus based on (A) the target Annual Bonus opportunity in
the year in which the Date of Termination occurs or the prior year if no target
Annual Bonus opportunity has yet been determined and (B) the fraction of
the year the Employee was employed;

 

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(iii)                               the Company shall pay to the
Employee, within thirty (30) business days after the Date of Termination, a
lump-sum payment equal to 300% of the sum of (x) the Employee’s Annual Base
Salary in effect immediately prior to the Date of Termination (disregarding any
reduction in Annual Base Salary to which the Employee did not expressly consent
in writing) and (y) the highest Annual Bonus paid to the Employee by the
Company within the three years preceding his termination of employment or, if
higher, the highest target Annual Bonus opportunity in the year in which the
Date of Termination occurs;

 

(iv)                              all stock option, restricted
stock and other equity-based incentive awards granted by the Company that were
outstanding but not vested as of the Date of Termination shall become
immediately vested and/or payable, as the case may be; and

 

(v)                                 for a three (3) year period
after the Date of Termination, the Company will provide or cause to be provided
to the Employee (and any covered dependents), with life and health insurance
benefits (but not disability insurance benefits) substantially similar to those
the Employee and any covered dependents were receiving immediately prior to the
Notice of Termination at the same level of benefits and at the same dollar cost
to the Employee as is available to the Company’s executive officers generally,
provided that the Employee’s continued receipt of such benefits is possible
under the general terms and provisions of the applicable plans and programs,
and provided further, that such benefits would not be taxable to the Employee
or subject to Section 409A of the Internal Revenue Code of 1986, as
amended (the “Code”).  In the event that
the Employee’s participation in any such plan or program is prohibited, the
Company shall, at its expense, arrange to provide the Employee with benefits
substantially similar to those which the Employee would otherwise have been
entitled to receive under such plans and programs from which his continued
participation is prohibited.  If the
Company arranges to provide the Employee and covered dependents with life and
health insurance benefits, those benefits will be reduced to the extent
comparable benefits are received by, or made available to, the Employee (at no
greater cost to the Employee) by another employer during the three (3) year
period following the Employee’s Date of Termination.  The Employee must report to the Company any
such benefits that he receives or that are made available.  In lieu of the benefits described in this Section 10(a)(v),
the Company, in its sole discretion, may elect to pay to the Employee a lump
sum cash payment equal to the monthly premiums that would have been paid by the
Company to provide such benefits to the Employee for each month such coverage
is not provided under this Section 10(a)(v).  Nothing in this Section 10(a)(v) will
extend the COBRA continuation coverage period.

 

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The Company shall provide the Employee with
advance written notice of the date of the first anniversary of any Change in
Control.

 

(b)                                 Termination by the Company for
Cause or by the Employee without Good Reason.  If the Employee’s
employment is terminated by the Company for Cause or by the Employee without
Good Reason, the Company’s only obligation under this Agreement shall be
payment of any Accrued Obligations.

 

(c)                                  Termination due to death or
Disability.  If the Employee’s employment is terminated
due to death or Disability, the Company shall pay to the Employee (or to the
Employee’s estate or personal representative in the case of the Employee’s
death), within thirty (30) business days after the Date of Termination, (i) any
Accrued Obligations and (ii) a prorated Annual Bonus based on (A) the
target Annual Bonus opportunity in the year in which the Date of Termination
occurs or the prior year if no target Annual Bonus opportunity has yet been
determined and (B) the
fraction of the year the Employee was employed.

 

(d)                                 Definition of Change in Control.  For purposes of this Agreement, the term “Change
in Control” shall mean that the conditions set forth in any one of the
following subsections shall have been satisfied:

 

(i)                                     the acquisition, directly or
indirectly, by any “person” (within the meaning of Section 3(a)(9) of
the Securities and Exchange Act of 1934, as amended (the “Exchange Act”) and
used in Sections 13(d) and 14(d) thereof) of “beneficial ownership”
(within the meaning of Rule 13d-3 of the Exchange Act) of securities of
the Company possessing more than fifty percent (50%) of the total combined voting
power of all outstanding securities of the Company;

 

(ii)                                  a merger or consolidation in
which the Company is not the surviving entity, except for a transaction in
which the holders of the outstanding voting securities of the Company
immediately prior to such merger or consolidation hold, in the aggregate,
securities possessing more than fifty percent (50%) of the total combined
voting power of all outstanding voting securities of the surviving entity
immediately after such merger or consolidation;

 

(iii)                               a reverse merger in which the
Company is the surviving entity but in which securities possessing more than
fifty percent (50%) of the total combined voting power of all outstanding
voting securities of the Company are transferred to or acquired by a person or
persons different from the persons holding those securities immediately prior
to such merger;

 

(iv)                              during any period of two (2) consecutive
years during the Employment Term or any extensions thereof, individuals, who,
at the beginning of such period, constitute the Board, cease for any reason to
constitute at least a majority thereof, unless the election of each director
who was not a

 

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director at the beginning of such period has been approved in advance
by directors representing at least two-thirds of the directors then in office
who were directors at the beginning of the period.

 

(v)                                 the sale, transfer or other
disposition (in one transaction or a series of related transactions) of all or
substantially all of the assets of the Company; or

 

(vi)                              the approval by the stockholders
of a plan or proposal for the liquidation or dissolution of the Company.

 

11.                                 Excise Tax Gross-up Payments.

 

(a)                                  If any payments or benefits paid
or provided or to be paid or provided to the Employee or for his benefit
pursuant to the terms of this Agreement or otherwise in connection with, or
arising out of, his employment with the Company or its subsidiaries or the
termination thereof (a “Payment” and, collectively, the “Payments”) would be
subject to the excise tax (the “Excise Tax”) imposed by Section 4999 of
the Code, then, except as otherwise provided in this Section 11(a), the
Employee will be entitled to receive an additional payment (a “Gross-Up Payment”)
in an amount such that, after payment by the Employee of all income taxes, all
employment taxes and any Excise Tax imposed upon the Gross-Up Payment
(including any related interest and penalties), the Employee retains an amount
of the Gross-Up Payment equal to the Excise Tax (including any related interest
and penalties) imposed upon the Payments. 
Notwithstanding the foregoing, if the amount of the Payments does not
exceed by more than 3% the amount that would be payable to the Employee if the
Payments were reduced to one dollar less than what would constitute a “parachute
payment” under Section 280G of the Code (the “Scaled Back Amount”), then
the Payments shall be reduced, in a manner determined by the Employee, to the
Scaled Back Amount, and the Employee shall not be entitled to any Gross-Up
Payment.

 

(b)                                 An initial determination of (i) whether
a Gross-Up Payment is required pursuant to this Agreement, and, if applicable,
the amount of such Gross-Up Payment or (ii) whether the Payments must be
reduced to the Scaled Back Amount and, if so, the amount of such reduction,
will be made at the Company’s expense by an accounting firm selected by the
Company.  The accounting firm will
provide its determination, together with detailed supporting calculations and
documentation, to the Company and the Employee within ten (10) business
days after the date of termination of Employee’s employment, or such other time
as may be reasonably requested by the Company or the Employee.  If the accounting firm determines that no
Excise Tax is payable by the Employee with respect to a Payment or Payments, it
will furnish the Employee with an opinion to that effect.  If a Gross-Up Payment becomes payable, such
Gross-Up Payment will be paid by the Company to the Employee within thirty (30)
business days of the receipt of the

 

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accounting firm’s determination. 
If a reduction in Payments is required, such reduction shall be
effectuated within thirty (30) business days of the receipt of the accounting firm’s
determination.  Within ten (10) business
days after the accounting firm delivers its determination to the Employee, the
Employee will have the right to dispute the determination.  The existence of a dispute will not in any
way affect the Employee’s right to receive a Gross-Up Payment in accordance
with the determination.  If there is no
dispute, the determination will be binding, final, and conclusive upon the
Company and the Employee.  If there is a
dispute, the Company and the Employee will together select a second accounting
firm, which will review the determination and the Employee’s basis for the
dispute and then will render its own determination, which will be binding,
final, and conclusive on the Company and on the Employee for purposes of determining
whether a Gross-Up Payment is required pursuant to this Section 11(b) or
whether a reduction to the Scaled Back Amount is required, as the case may
be.  If as a result of any dispute
pursuant to this Section 11(b) a Gross-Up Payment is made or additional
Gross-Up Payments are made, such Gross-Up Payment(s) will be paid by the
Company to the Employee within thirty (30) business days of the receipt of the
second accounting firm’s determination. 
The Company will bear all costs associated with the second accounting
firm’s determination, unless such determination does not result in additional
Gross-Up Payments to the Employee or unless such determination does not
mitigate the reduction in Payments required to arrive at the Scaled Back
Amount, in which case all such costs will be borne by the Employee.

 

(c)                                  For purposes of determining the
amount of the Gross-Up Payment and, if applicable, the Scaled Back Amount, the
Employee will be deemed to pay federal income taxes at the highest marginal
rate of federal income taxation in the calendar year in which the Gross-Up
Payment is to be made or the Scaled Back Amount is determined, as the case may
be, and applicable state and local income taxes at the highest marginal rate of
taxation in the state and locality of the Employee’s residence on the date of
termination of Employee’s employment, net of the maximum reduction in federal
income taxes that would be obtained from deduction of those state and local
taxes.

 

(d)                                 As a result of the uncertainty
in the application of Section 4999 of the Code, it is possible that
Gross-Up Payments which will not have been made by the Company should have been
made, the Employee’s Payments will be reduced to the Scaled Back Amount when
they should not have been or the Employee’s Payments are reduced to a greater
extent than they should have been (an “Underpayment”) or Gross-Up Payments are
made by the Company which should not have been made, the Employee’s Payments
are not reduced to the Scaled Back Amount when they should have been or they
are not reduced to the extent they should have been (an “Overpayment”).  If it is determined that an Underpayment has
occurred, the accounting firm shall determine the amount of the Underpayment
that has occurred and any such Underpayment (together with interest at the rate
provided in Section 1274(b)(2)(B) of the Code) shall be promptly paid
by the Company to or for the benefit of Employee.  If it is determined that an Overpayment has
occurred, the accounting firm shall determine the amount of the Overpayment
that has occurred and any such Overpayment (together with interest at the rate

 

9

 

provided in Section 1274(b)(2) of the Code) shall be promptly
paid by the Employee (to the extent he has received a refund if the applicable
Excise Tax has been paid to the Internal Revenue Service) to or for the benefit
of the Company; provided, however, that if the Company determines that such
repayment obligation would be or result in an unlawful extension of credit
under Section 13(k) of the Exchange Act, repayment shall not be
required.  The Employee shall cooperate,
to the extent his expenses are reimbursed by the Company, with any reasonable
requests by the Company in connection with any contest or disputes with the
Internal Revenue Service in connection with the Excise Tax.

 

(e)                                  The Employee shall notify the
Company in writing of any claim by the Internal Revenue Service that, if
successful, would require a payment resulting in an Underpayment.  Such notification shall be given as soon as
practicable but no later than ten (10) business days after the Employee is
informed in writing of such claim and shall apprise the Company of the nature
of such claim and the date on which such claim is requested to be paid.  The Employee shall not pay such claim prior
to the expiration of the thirty (30) day period following the date on which he
gives such notice to the Company (or such shorter period ending on the date
that any payment of taxes with respect to such claim is due).  If the Company notifies the Employee in
writing prior to the expiration of such period that it desires to contest such
claim, the Employee shall:

 

(i)                                     give the Company any information
reasonably requested by the Company relating to such claim,

 

(ii)                                  take such action in connection
with contesting such claim as the Company shall reasonably request in writing
from time to time, including, without limitation, accepting legal
representation with respect to such claim by an attorney reasonably selected by
the Company,

 

(iii)                               cooperate with the Company in
good faith in order effectively to contest such claim, and

 

(iv)                              permit the Company to
participate in any proceeding relating to such claim;

 

provided, however, that the Company shall
bear and pay directly all costs and expenses (including additional interest and
penalties) incurred in connection with such contest and shall indemnify and
hold the Employee harmless, on an after-tax basis, for any Excise Tax or income
tax (including related interest and penalties) imposed as a result of such
representation and payment of costs and expenses.  Without limitation on the foregoing
provisions of this Section 11(e), the Company shall control all
proceedings taken in connection with such contest and, at its sole option, may
pursue or forgo any and all administrative appeals, proceedings, hearings and
conferences with the taxing authority in respect of such claim and may, at its
sole option, either direct the Employee to pay the tax claimed and sue for a
refund or contest the claim in any permissible manner, and the Employee agrees
to prosecute such contest to a determination before any administrative

 

10

 

tribunal, in a court of initial jurisdiction
and in one or more appellate courts, as the Company shall determine; provided,
however, that if the Company directs the Employee to pay such claim and sue for
a refund, the Company shall advance the amount of such payment to the Employee,
on an interest-free basis and shall indemnify and hold the Employee harmless,
on an after-tax basis, from any Excise Tax or income tax (including related
interest or penalties) imposed with respect to such advance or with respect to
any imputed income with respect to such advance.  The Company’s control of the contest shall be
limited to issues that may impact Gross-Up Payments or reduction in Payments
under this Section 11, and the Employee shall be entitled to settle or
contest, as the case may be, any other issue raised by the Internal Revenue Service
or any other taxing authority.

 

(f)                                    If, after the receipt by the
Employee of an amount advanced by the Company pursuant to Section 11(e),
the Employee becomes entitled to receive any refund with respect to such claim,
the Employee shall (subject to the Company’s complying with the requirements of
Section 11(e)) promptly pay to the Company the amount of such refund
(together with any interest paid or credited thereon after taxes applicable
thereto).  If, after the receipt by the
Employee of an amount advanced by the Company pursuant to Section 11(e), a
determination is made that the Employee shall not be entitled to any refund
with respect to such claim and the Company does not notify the Employee in
writing of its intent to contest such denial of refund prior to the expiration
of thirty (30) days after such determination, then such advance shall be
forgiven and shall not be required to be repaid.

 

12.                                 Non-Delegation of Employee’s
Rights.  The obligations, rights and benefits of the
Employee hereunder are personal and may not be delegated, assigned or
transferred in any manner whatsoever, nor are such obligations, rights or
benefits subject to involuntary alienation, assignment or transfer.

 

13.                                 Confidential Information.  The Employee acknowledges that in his
capacity as an employee of the Company he will occupy a position of trust and
confidence and he further acknowledges that he will have access to and learn
substantial information about the Company and its affiliates and their
operations that is confidential or not generally known in the industry
including, without limitation, information that relates to purchasing, sales,
customers, marketing, and the Company’s and its affiliates’ financial positions
and financing arrangements.  The Employee
agrees that all such information is proprietary or confidential, or constitutes
trade secrets and is the sole property of the Company and/or its affiliates, as
the case may be.  The Employee will keep
confidential, and will not reproduce, copy or disclose to any other person or
firm, any such information or any documents or information relating to the
Company’s or its affiliates’ methods, processes, customers, accounts, analyses,
systems, charts, programs, procedures, correspondence or records, or any other
documents used or owned by the Company or any of its affiliates, nor will the
Employee advise, discuss with or in any way assist any other person, firm or
entity in obtaining or learning about any of the items described in this Section 13.  Accordingly, the Employee agrees that during
the Employment Term and at all times thereafter he will not disclose, or permit
or encourage anyone else to disclose, any such information, nor

 

11

 

will he utilize any such information, either
along or with others, outside the scope of his duties and responsibilities with
the Company and its affiliates.

 

14.                                 Non-Competition During
Employment Term.  The Employee agrees that, during the
Employment Term, he will devote substantially all his business time and effort,
and give undivided loyalty, to the Company and its affiliates, and he will not
engage in any way whatsoever, directly or indirectly, in any business that is
competitive with the Company or its affiliates, nor solicit customers, suppliers
or employees of the Company or affiliates on behalf of, or in any other manner
work for or assist any business which is competitive with the Company or its
affiliates.  In addition, during the
Employment Term, the Employee will undertake no planning for or organization of
any business activity competitive with the work he performs as an employee of
the Company, and the Employee will not combine or conspire with any other
employee of the Company or any other person for the purpose of organizing any such
competitive business activity.

 

15.                                 Non-Competition After Employment
Term.  The parties acknowledge that as an executive
officer of the Company the Employee will acquire substantial knowledge and
information concerning the business of the Company and its affiliates as a
result of his employment.  The parties
further acknowledge that the scope of business in which the Company and its
affiliates are engaged as of the Effective Date is national and very
competitive and one in which few companies can successfully compete.  Competition by an executive officer such as
the Employee in that business after the Employment Term is terminated would
severely injure the Company and its affiliates. 
Accordingly, for a period of one year after the Employee’s employment terminates
for any reason whatsoever, except as otherwise stated herein below, the
Employee agrees (a) not to become an employee, consultant, advisor,
principal, partner or substantial shareholder of any firm or business that in
any way competes with the Company or its affiliates in any of their
presently-existing or then-existing products and markets; and (b), on behalf of
any such competitive firm or business, not to solicit any person or business
that was at the time of such termination and remains a customer or prospective
customer, a supplier or prospective supplier, or an employee of the Company or
an affiliate.  Notwithstanding any of the
foregoing provisions to the contrary, the Employee shall not be subject to the
restrictions set forth in this Section 15 under the following
circumstances:

 

(a)                                  if the Employee’s employment is
terminated by the Company without Cause;

 

(b)                                 if the Employee’s employment is
terminated as a result of the Company’s unwillingness to extend the Employment
Term; or

 

(c)                                  if the Employee terminates
employment for Good Reason.

 

16.                                 Return of Company Documents.  Upon termination of the Employment Term,
Employee shall return immediately to the Company all records and documents of
or pertaining to the Company or its affiliates and shall not make or retain any
copy or extract of any such record or document, and other property of the
Company or its affiliates.

 

17.                                 Improvements and Inventions.  Any and all improvements or inventions, which
the Employee may make or participate in during the Employment Term, unless
wholly unrelated to the business of the Company and its affiliates and produced
not in the scope of Employee’s

 

12

 

employment hereunder, shall be the sole and
exclusive property of the Company.  The
Employee will, whenever requested by the Company, execute and deliver any and
all documents which the Company shall deem appropriate in order to apply for
and obtain patents for improvements or inventions or in order to assign and
convey to the Company the sole and exclusive right, title and interest in and
to such improvements, inventions, patents or applications.

 

18.                                 Actions.  The parties agree and acknowledge that the
rights conveyed by this Agreement are of a unique and special nature and that
the Company will not have an adequate remedy at law in the event of a failure
by the Employee to abide by its terms and conditions nor will money damages
adequately compensate for such injury. 
It is, therefore, agreed between and hereby acknowledged by the parties
that, in the event of a breach by the Employee of any of his obligations
contained in this Agreement, the Company shall have the right, among other
rights, to damages sustained thereby and to obtain an injunction or decree of
specific performance from any court of competent jurisdiction to restrain or
compel the Employee to perform as agreed herein.  The Employee hereby acknowledges that
obligations under Sections 13, 15, 16, 17, 18, 19 and 20 shall survive the
termination of his employment and he shall be bound by their terms at all times
subsequent to the termination of his employment for the periods specified
therein.  Nothing herein contained shall
in any way limit or exclude any other right granted by law or equity to the
Company.

 

19.                                 Release.  Notwithstanding any provision herein to the
contrary, the Company will require that, prior to payment of any amount or
provision of any benefit under Section 10 or payment of any Gross-Up
Payment pursuant to Section 11 of this Agreement (other than due to the
Employee’s death), the Employee shall have executed a complete release of the
Company and its affiliates and related parties in such form as is reasonably
required by the Company, and any waiting periods contained in such release
shall have expired.

 

20.                                 No Mitigation.  The Company agrees that, if the Employee’s
employment hereunder is terminated during the Employment Term, the Employee is
not required to seek other employment or to attempt in any way to reduce any
amounts payable to the Employee by the Company hereunder.  Further, the amount of any payment or benefit
provided for hereunder (other than pursuant to Section 10(a)(v) hereof)
shall not be reduced by any compensation earned by the Employee as the result
of employment by another employer, by retirement benefits or otherwise.

 

21.                                 Entire Agreement and Amendment.  This Agreement embodies the entire agreement
and understanding of the parties hereto in respect of the subject matter of
this Agreement, and supersedes and replaces all prior agreements,
understandings and commitments with respect to such subject matter, including,
without limitation, the Prior Agreement. 
This Agreement may be amended only by a written document signed by both
parties to this Agreement.

 

22.                                 Governing Law.  This Agreement shall be governed by, and
construed in accordance with, the laws of the State of Florida, excluding any
conflicts or choice of law rule or principle that might otherwise refer
construction or interpretation of this Plan to the substantive law of another
jurisdiction.  Any litigation pertaining
to this Agreement shall be adjudicated in courts located in Duval County,
Florida.

 

13

 

23.                                 Successors.  In addition to any obligations imposed by law
upon any successor to the Company, the Company will require any successor
(whether direct or indirect, by purchase, merger, consolidation or otherwise)
to all or substantially all of the business and/or assets of the Company, to
expressly assume and agree to perform this Agreement in the same manner and to
the same extent that the Company would be required to perform it if no such
succession had taken place.  As used in
this Agreement, “Company” shall mean the Company as herein before defined and
any such successor that expressly assumes this Agreement or otherwise becomes
bound by all the terms and provisions of this Agreement by operation of law.

 

24.                                 Counterparts.  This Agreement may be executed in
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

 

25.                                 Attorneys’ Fees.  If any party finds it necessary to employ
legal counsel or to bring an action at law or other proceedings against the
other party to interpret or enforce any of the terms hereof, the party
prevailing in any such action or other proceeding shall be paid by the other
party its reasonable legal fees, court costs, litigation expenses, all as
determined by the court and not a jury; provided, however, that on or after a Change
in Control, if any party finds it necessary to employ legal counsel or to bring
an action at law or other proceedings against the other party to interpret or
enforce any of the terms hereof, the Company shall pay (on an ongoing basis) to
the Employee to the fullest extent permitted by law, all legal fees, court
costs and litigation expenses reasonably incurred by the Employee or others on
his behalf (such amounts collectively referred to as the “Reimbursed Amounts”);
provided, further, that the Employee shall reimburse the Company for the
Reimbursed Amounts if it is determined that a majority of the Employee’s claims
or defenses were frivolous or without merit.

 

26.                                 Severability.  If any section, subsection or provision
hereof is found for any reason whatsoever to be invalid or inoperative, that
section, subsection or provision shall be deemed severable and shall not
affect the force and validity of any other provision of this Agreement.  If any covenant herein is determined by a
court to be overly broad thereby making the covenant unenforceable, the parties
agree and it is their desire that such court shall substitute a reasonable
judicially enforceable limitation in place of the offensive part of the
covenant and that as so modified the covenant shall be as fully enforceable as
if set forth herein by the parties themselves in the modified form.  The covenants of the Employee in this
Agreement shall each be construed as an agreement independent of any other
provision in this Agreement, and the existence of any claim or cause of action
of the Employee against the Company, whether predicated on this Agreement or
otherwise, shall not constitute a defense to the enforcement by the Company of
the covenants in this Agreement.

 

27.                                 Notices.  Any notice, request, or instruction to be
given hereunder shall be in writing and shall be deemed given when personally
delivered or three (3) days after being sent by United States Certified
Mail, postage prepaid, with Return Receipt Requested, to the parties at their
respective addresses set forth below:

 

14

 

To the Company:

 

Certegy, Inc.

601 Riverside Avenue

Jacksonville, FL 32204

Attention: Peter T. Sadowski

 

To the Employee:

 

Lee A. Kennedy

 

 

 

28.                                 Waiver of Breach.  The waiver by any party of any provisions of
this Agreement shall not operate or be construed as a waiver of any prior or
subsequent breach by the other party.

 

29.                                 Tax Withholding.  The Company or an affiliate may deduct from
all compensation and benefits payable under this Agreement any taxes or
withholdings the Company is required to deduct pursuant to state, federal or
local laws.

 

IN WITNESS WHEREOF the parties have executed
this Agreement to be effective as of the date first set forth above.

 

 

	
   

  	
  CERTEGY, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Phillip
  B. Lassiter

  	
   

  
	
   

  	
   

  	
  Its: 

  	
  Director and Member of the

  Compensation Committee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  LEE A. KENNEDY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/Lee A. Kenneddy

  	
   

  
							

 

15EXHIBIT 10.3

EMPLOYMENT AGREEMENT

This Employment Agreement
(the “Agreement”) is made and entered into as of this 14th day of
September, 2005 by and between CERTEGY, INC. (the “Company”), and JEFFREY S. CARBIENER (the “Employee”).

RECITALS:

WHEREAS, the Company and Employee have previously
entered into a letter agreement dated May 2002 (“Prior Agreement”)
specifying the payments and benefits payable to the Employee in the event the
Employee’s employment is terminated in connection with a “Change in Control” of
the Company (as defined in the Prior Agreement); and

WHEREAS, the Company entered into an Agreement and
Plan of Merger (the “Merger Agreement”) dated the date hereof with C Co Merger
Sub, LLC and Fidelity National Information Services, Inc.; and

WHEREAS, the Merger constitutes a Change in Control as
defined in the Prior Agreement; and

WHEREAS, the Company desires to terminate the Prior
Agreement and enter into this Agreement to recognize Employee’s superior
performance and continuing value to the Company and its shareholders; and

WHEREAS, Employee desires to continue his employment
with the Company on the terms and conditions provided herein;

NOW, THEREFORE, in
consideration of the mutual covenants and agreements set forth herein, the
parties agree as follows:

1.            Purpose and Effectiveness.

(a)                              The
purpose of this Agreement is to terminate the Prior Agreement, to recognize
Employee’s significant contributions to the overall financial performance and
success of the Company, to protect the Company’s business interests through the
addition of restrictive covenants, and to provide a single, integrated document
which shall provide the basis for Employee’s continued employment by the
Company;

(b)                             In
consideration of and immediately upon the termination of the Prior Agreement,
the Company shall pay to Employee $500,000 and Employee shall release all
rights and claims that Employee has, had or may have against the Company
pursuant to or arising under such Prior Agreement; and

(c)                              This
Agreement shall not be effective until the Effective Time (as defined in the
Merger Agreement) (the “Effective Date”), and this Agreement shall terminate
immediately if the Merger Agreement is terminated in accordance with its terms
prior to the Effective Time.

2.            Employment and Duties.   Subject to the terms and
conditions of this Agreement, the Company employs the Employee to serve in an
executive and managerial capacity, and Employee accepts such employment and
agrees to perform such reasonable responsibilities and duties commensurate with
the aforesaid position as set forth in the Articles of Incorporation and Bylaws
of the Company and as directed by the Company’s President.

3.            Term.   The term of this Agreement shall commence on the
Effective Date and shall continue for a period of three (3) years ending
on the third (3rd) anniversary of the Effective Date, subject 

 1
 

to prior termination as
set forth in Section 8, below (the “Term”). The Term may be extended at
any time upon mutual agreement of the parties.

4.            Salary.   During the Term, the Company shall pay the
Employee a minimum base annual salary, before deducting all applicable
withholdings, of $400,000 per year, payable at the times and in the manner
dictated by the Company’s standard payroll policies. Such minimum base annual
salary may be periodically reviewed and increased (but not decreased) at the
discretion of the Company to reflect, among other matters, cost of living
increases and performance results.

5.            Other Compensation and Fringe Benefits.   In addition to
any bonus, pension, deferred compensation and other plans that the Company may
from time to time make available to the Employee upon mutual agreement,
including the ability to qualify for the Chairman’s Roundtable, the Employee
shall be entitled to the following:

(a)                              The
standard Company benefits available to other executives of the Company;

(b)                             an
annual incentive bonus opportunity (“Annual Bonus”) for each calendar year
included in the Term, with such opportunity to be earned based upon attainment
of performance objectives established by the Compensation Committee (the “Committee”)
of the Board. For the year 2006, the bonus formula is set forth on Exhibit A
attached hereto. The Employee’s target Annual Bonus opportunity shall be not
less than 150% of the Employee’s Annual Base Salary. The Employee’s target
Annual Bonus opportunity may be periodically reviewed and increased (but not
decreased without the Employee’s express written consent) at the discretion of
the Company. Subject to Section 8, the Annual Bonus shall become fully
vested at the end of each calendar year within the Term and shall be paid no
later than March 15th of the following year.; and

(c)                              A
grant of a non-qualified option to purchase 350,000 shares of the Company’s
Common Stock (the “Options”). The Options shall be granted pursuant to the
Company’s Stock Incentive Plan (the “Plan”) and shall be subject to the terms
and conditions of a stock option agreement and notice of stock option to be
issued pursuant to the Plan. The Options will have an eight-year term and will
be granted at an exercise price equal to the closing price per share of the
Company’s common stock as quoted on the New York Stock Exchange on the
Effective Date. The Options will vest in four equal annual installments
beginning on the first anniversary of the Effective Date and ending on the
fourth anniversary of the Effective Date; provided, however, that all unvested
Options will vest immediately if this Agreement expires because the Company
elects not to extend the Term.

The Company shall
deduct from all compensation payable to the Employee under this Agreement any
taxes or withholdings the Company is required to deduct pursuant to state and
federal laws or by mutual agreement between the parties.

6.            Vacation.   For and during each year of the Term and any
extensions thereof, the Employee shall be entitled to reasonable paid vacation
periods consistent with his position with the Company. In addition, the
Employee shall be entitled to such holidays consistent with the Company’s
standard policies or as the Company’s President may approve.

7.            Expense Reimbursement.   In
addition to the compensation and benefits provided herein, the Company shall,
upon receipt of appropriate documentation, reimburse the Employee each month
for his reasonable travel, lodging, entertainment, promotion and other ordinary
and necessary business expenses.

 2
 

8.            Termination.

(a)                              For Cause.   The Company may terminate this Agreement
immediately for cause upon written notice to the Employee, in which event the
Company shall be obligated to pay the Employee that portion of the minimum base
annual salary and any vested Annual bonus payment due him through the date of
termination. Cause shall be limited to the Employee’s (i)  failure to
perform duties consistent with a commercially reasonable standard of care; (ii) willful
neglect of duties; (iii) conviction of or pleading nolo contondre to
charges of criminal or other illegal activities involving dishonesty; or (iv) material
breach of the Agreement.

(b)                             Without Cause.   Either party may terminate this
Agreement immediately without cause by giving written notice to the other. If
the Company terminates under this Section 8(b), then it shall pay to the
Employee an amount equal to the Employee’s minimum annual base salary in effect
as of the date of termination for the remainder of the Term and, to the extent
permitted by the terms of the option grant set forth in Section 5(c), the
options granted to the Employee which had not vested as of the date of
termination hereunder shall vest immediately. If the Employee terminates under
this Section 8(b), the Company shall be obligated to pay the Employee the
minimum annual base salary due him through the date of termination.

(c)                              Disability.   If the Employee fails to perform his
duties hereunder on account of illness or other incapacity for a period of
ninety consecutive days, then the Company shall have the right upon written
notice to the Employee to terminate this Agreement without further obligation
by paying the Employee the minimum base annual salary, without offset, for the
remainder of the Term in a lump sum or as otherwise directed by the Employee.

(d)                             Death.   If the Employee dies during the Term, then this
Agreement shall terminate immediately and the Employee’s legal representatives
shall be entitled to receive the minimum annual base salary for the remainder
of the Term in a lump sum or as otherwise directed by the Employee’s legal
representative.

(e)                              Effect of Termination.   Termination for Cause or
Without Cause shall not constitute a waiver of the Company’s right under this
Agreement nor a release of the Employee from any obligation hereunder except
his obligation to perform his day-to-day duties as an employee.

9.            Severance Payment.

(a)                              The
Employee may terminate his employment hereunder for “Good Reason,” which for
purposes of this Agreement shall mean a “change in control of the Company.”  A “change in control of the Company,” for
purposes of this Agreement, shall be deemed to have occurred if (i) there
shall be consummated (x) any consolidation or merger of the Company other
than a consolidation or merger of the Company in which the holders of the
Company’s Common Stock immediately prior to the merger own more than 50% of the
voting securities of the surviving corporation immediately after the merger, or
(y) any sale, lease, exchange or other transfer (in one transaction or a
series of related transactions) of all, or substantially all, of the assets of
the Company, or (ii) the shareholders of the Company approve any plan or
proposal for the liquidation or dissolution of the Company, or (iii) any “person”
(such as that term is used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934 (the “Exchange Act”)), other than the Company
or any “person” who, on the date hereof, is a director or officer of the
Company, is or becomes the “beneficial owner” (as defined in Rule 13d-3
under the 

 3
 

Exchange Act), of
securities of the Company representing 30% or more of the combined voting power
of the Company’s then outstanding securities. Notwithstanding anything herein
to the contrary, an offering and sale to the public of any shares or equity
securities of the Company or any of its subsidiaries pursuant to a registration
statement in the United States shall not constitute a change of control for
purposes of this Agreement. The Employee may only terminate this Agreement due
to change in control of the Company during the period commencing 60 days and
expiring 365 days after such change in control.

(b)                             If
the Employee terminates his employment for Good Reason, then:

(i)                                 The
Company shall pay the Employee his minimum base annual salary due him through
the end of the Term; and

(ii)                             To
the extent permitted by the terms of the option grant set forth in Section 5(c),
the options granted to the Employee which had not vested as of the date of
termination hereunder shall vest immediately.

10.          Non-Delegation of Employee’s Rights.   The obligations,
rights and benefits of the Employee hereunder are personal and may not be
delegated, assigned or transferred in any manner whatsoever, nor are such
obligations, rights or benefits subject to involuntary alienation, assignment
or transfer.

11.          Confidential Information.   The Employee acknowledges
that in his capacity as an executive officer and employee of the Company he
will occupy a position of trust and confidence and he further acknowledges that
he will have access to and learn substantial information about the Company, its
affiliates and their operations that is confidential or not generally known in
the industry including, without limitation, information that relates to
purchasing, sales, customers, marketing, the Company’s and its affiliates’
financial positions and financing arrangements, trade secrets, valuable
confidential business or professional information, substantial knowledge and
information of the Company’s and its affiliates’ business, substantial
relationships with specific prospective or existing customers or clients,
customer or client goodwill, and other valuable information. The Employee
agrees that all such information is proprietary or confidential, or constitutes
trade secrets and is the sole property of the Company and/or its affiliates, as
the case may be. The Employee will keep confidential, and will not reproduce,
copy or disclose to any other person or firm, any such information or any
documents or information relating to the Company’s or its affiliates’ methods,
processes, customers, accounts, analyses, systems, charts, programs,
procedures, correspondence or records, or any other documents used or owned by
the Company or any of its affiliates, nor will the Employee advise, discuss
with or in any way assist any other person, firm or entity in obtaining or
learning about any of the items described in this Section 11. Accordingly,
the Employee agrees that during the Term and at all times thereafter he will
not disclose, or permit or encourage anyone else to disclose, any such
information, nor will he utilize any such information, either along or with
others, outside the scope of his duties and responsibilities with the Company
and its affiliates.

12.          Non-Competition During Employment Term.   The Employee
agrees that, during the term and any extensions thereof, he will devote
substantially all his business time and effort, and give undivided loyalty, to
the Company and its affiliates. He will not engage in any way whatsoever,
directly or indirectly, in any business that is competitive with the Company or
its affiliates, nor solicit, or in any manner work for or assist any business
which is competitive with the Company or its affiliates. In addition, during
the Term and any extensions thereof, the Employee will undertake no planning
for or organization of any business activity competitive with the work he
performs as an employee of the Company, and the Employee will not combine or
conspire with any other employee of the Company or any other person for the
purpose of organizing any such competitive business activity.

 4
 

13.          Non-Competition After Employment Term.   The parties
acknowledge that as an executive officer and employee of the Company the
Employee will acquire trade secrets, valuable confidential business or
professional information, substantial knowledge and information concerning the
Company’s and its affiliates’ business, substantial relationships with specific
prospective or existing customers or clients, customer or client goodwill, and
other valuable information. The Employee acknowledges that these items, as well
as others gained by him through his employment, constitute a legitimate
business interest for the Company to protect through this restrictive covenant.
The parties further acknowledge that the scope of business in which the Company
and its affiliates are engaged as of the Effective Date is national and very
competitive and one in which few companies can successfully compete. Competition
by an executive officer such as the Employee in that business after this
Agreement is terminated would severely injure the Company and its affiliates. Accordingly,
for a period of one year after this Agreement is terminated or the Employee
leaves the employment of the Company for any reason whatsoever, except as
stated herein below, the Employee agrees (i) not to become an employee,
consultant, advisor, principal, partner or substantial shareholder of any firm
or business that in any way competes with the Company or its affiliates in any
of its presently-existing or then-existing products or markets; and (ii) not
to solicit any person or business that was at the time of such termination and
remains a customer or prospective customer, or an employee of the Company or an
affiliate. Notwithstanding any of the foregoing provisions to the contrary, the
Employee shall not be subject to the restrictions set forth in this Section 13
under the following circumstances:

(a)                              If
the Employee’s employment with the Company is terminated by the Company without
cause;

(b)                             If
the Employee’s employment with the Company is terminated as a result of the
Company’s unwillingness to extend the Term of this Agreement; or

(c)                              If
the Employee leaves the employment of the Company for Good Reason pursuant to Section 9,
above.

14.          Return of Company Documents.   Upon termination of this
Agreement, Employee shall return immediately to the Company all records and
documents of or pertaining to the Company or its affiliates and shall not make
or retain any copy or extract of any such record or document.

15.          Improvements and Inventions.   Any and all improvements
or inventions, which the Employee may make or participate in during the period
of his employment, shall be the sole and exclusive property of the Company. The
Employee will, whenever requested by the Company, execute and deliver any and
all documents which the Company shall deem appropriate in order to apply for
and obtain patents for improvements or inventions or in order to assign and
convey to the Company the sole and exclusive right, title and interest in and
to such improvements, inventions, patents or applications.

16.          Actions.   The parties agree and acknowledge that the
rights conveyed by this Agreement are of a unique and special nature and that
the Company will not have an adequate remedy at law in the event of a failure
by the Employee to abide by its terms and conditions nor will money damages
adequately compensate for such injury. It is, therefore, agreed between the
parties that, in the event of a breach by the Employee of any of his
obligations contained in this Agreement, the Company shall have the right,
among other rights, to damages sustained thereby and to obtain an injunction or
decree of specific performance from any court of competent jurisdiction to
restrain or compel the Employee to perform as agreed herein. The Employee
agrees that this Section 16 shall survive the termination of his
employment and he shall be bound by its terms at all times subsequent to the
termination of his employment for so long a period as Company continues to
conduct the same business or businesses as conducted during the Term or any
extensions thereof. Nothing contained herein shall in any way limit or exclude
any other right granted by law or equity to the Company.

 5
 

17.          Excise Tax Gross-up Payments.

(a)                              If
any payments or benefits paid or provided or to be paid or provided to the
Employee or for his benefit pursuant to the terms of this Agreement or
otherwise in connection with, or arising out of, his employment with the
Company or its subsidiaries or the termination thereof (a “Payment” and,
collectively, the “Payments”) would be subject to the excise tax (the “Excise
Tax”) imposed by Section 4999 of the Code, then, except as otherwise
provided in this Section 17(a), the Employee will be entitled to receive
an additional payment (a “Gross-Up Payment”) in an amount such that, after
payment by the Employee of all income taxes, all employment taxes and any
Excise Tax imposed upon the Gross-Up Payment (including any related interest
and penalties), the Employee retains an amount of the Gross-Up Payment equal to
the Excise Tax (including any related interest and penalties) imposed upon the
Payments. Notwithstanding the foregoing, if the amount of the Payments does not
exceed by more than 3% the amount that would be payable to the Employee if the
Payments were reduced to one dollar less than what would constitute a “parachute
payment” under Section 280G of the Code (the “Scaled Back Amount”), then
the Payments shall be reduced, in a manner determined by the Employee, to the
Scaled Back Amount, and the Employee shall not be entitled to any Gross-Up Payment.

(b)                             An
initial determination of (i) whether a Gross-Up Payment is required
pursuant to this Agreement, and, if applicable, the amount of such Gross-Up
Payment or (ii) whether the Payments must be reduced to the Scaled Back
Amount and, if so, the amount of such reduction, will be made at the Company’s
expense by an accounting firm selected by the Company. The accounting firm will
provide its determination, together with detailed supporting calculations and
documentation, to the Company and the Employee within ten (10) business
days after the date of termination of Employee’s employment, or such other time
as may be reasonably requested by the Company or the Employee. If the
accounting firm determines that no Excise Tax is payable by the Employee with respect
to a Payment or Payments, it will furnish the Employee with an opinion to that
effect. If a Gross-Up Payment becomes payable, such Gross-Up Payment will be
paid by the Company to the Employee within thirty (30) business days of the
receipt of the accounting firm’s determination. If a reduction in Payments is
required, such reduction shall be effectuated within thirty (30) business days
of the receipt of the accounting firm’s determination. Within ten (10) business
days after the accounting firm delivers its determination to the Employee, the
Employee will have the right to dispute the determination. The existence of a
dispute will not in any way affect the Employee’s right to receive a Gross-Up
Payment in accordance with the determination. If there is no dispute, the
determination will be binding, final, and conclusive upon the Company and the
Employee. If there is a dispute, the Company and the Employee will together
select a second accounting firm, which will review the determination and the
Employee’s basis for the dispute and then will render its own determination,
which will be binding, final, and conclusive on the Company and on the Employee
for purposes of determining whether a Gross-Up Payment is required pursuant to
this Section 17(b) or whether a reduction to the Scaled Back Amount
is required, as the case may be. If as a result of any dispute pursuant to this
Section 17(b) a Gross-Up Payment is made or additional Gross-Up
Payments are made, such Gross-Up Payment(s) will be paid by the Company to
the Employee within thirty (30) business days of the receipt of the second
accounting firm’s determination. The Company will bear all costs associated
with the second accounting firm’s determination, unless such determination does
not result in additional Gross-Up Payments to the Employee or unless such
determination does not mitigate the reduction in Payments required to arrive at
the Scaled Back Amount, in which case all such costs will be borne by the
Employee.

 6
 

(c)                              For
purposes of determining the amount of the Gross-Up Payment and, if applicable,
the Scaled Back Amount, the Employee will be deemed to pay federal income taxes
at the highest marginal rate of federal income taxation in the calendar year in
which the Gross-Up Payment is to be made or the Scaled Back Amount is
determined, as the case may be, and applicable state and local income taxes at
the highest marginal rate of taxation in the state and locality of the Employee’s
residence on the date of termination of Employee’s employment, net of the maximum
reduction in federal income taxes that would be obtained from deduction of
those state and local taxes.

(d)                             As a
result of the uncertainty in the application of Section 4999 of the Code,
it is possible that Gross-Up Payments which will not have been made by the
Company should have been made, the Employee’s Payments will be reduced to the
Scaled Back Amount when they should not have been or the Employee’s Payments
are reduced to a greater extent than they should have been (an “Underpayment”)
or Gross-Up Payments are made by the Company which should not have been made,
the Employee’s Payments are not reduced to the Scaled Back Amount when they
should have been or they are not reduced to the extent they should have been
(an “Overpayment”). If it is determined that an Underpayment has occurred, the
accounting firm shall determine the amount of the Underpayment that has
occurred and any such Underpayment (together with interest at the rate provided
in Section 1274(b)(2)(B) of the Code) shall be promptly paid by the
Company to or for the benefit of Employee. If it is determined that an
Overpayment has occurred, the accounting firm shall determine the amount of the
Overpayment that has occurred and any such Overpayment (together with interest
at the rate provided in Section 1274(b)(2) of the Code) shall be
promptly paid by the Employee (to the extent he has received a refund if the
applicable Excise Tax has been paid to the Internal Revenue Service) to or for
the benefit of the Company; provided, however, that if the Company determines
that such repayment obligation would be or result in an unlawful extension of
credit under Section 13(k) of the Exchange Act, repayment shall not
be required. The Employee shall cooperate, to the extent his expenses are
reimbursed by the Company, with any reasonable requests by the Company in
connection with any contest or disputes with the Internal Revenue Service in
connection with the Excise Tax.

(e)                              The
Employee shall notify the Company in writing of any claim by the Internal Revenue
Service that, if successful, would require a payment resulting in an
Underpayment. Such notification shall be given as soon as practicable but no
later than ten (10) business days after the Employee is informed in
writing of such claim and shall apprise the Company of the nature of such claim
and the date on which such claim is requested to be paid. The Employee shall
not pay such claim prior to the expiration of the thirty (30) day period
following the date on which he gives such notice to the Company (or such
shorter period ending on the date that any payment of taxes with respect to
such claim is due). If the Company notifies the Employee in writing prior to
the expiration of such period that it desires to contest such claim, the
Employee shall:

(i)                                 give
the Company any information reasonably requested by the Company relating to
such claim,

(ii)                             take
such action in connection with contesting such claim as the Company shall
reasonably request in writing from time to time, including, without limitation,
accepting legal representation with respect to such claim by an attorney
reasonably selected by the Company,

 7
 

(iii)                         cooperate
with the Company in good faith in order effectively to contest such claim, and

(iv)                           permit
the Company to participate in any proceeding relating to such claim;

provided, however,
that the Company shall bear and pay directly all costs and expenses (including
additional interest and penalties) incurred in connection with such contest and
shall indemnify and hold the Employee harmless, on an after-tax basis, for any
Excise Tax or income tax (including related interest and penalties) imposed as
a result of such representation and payment of costs and expenses. Without
limitation on the foregoing provisions of this Section 17(e), the Company
shall control all proceedings taken in connection with such contest and, at its
sole option, may pursue or forgo any and all administrative appeals,
proceedings, hearings and conferences with the taxing authority in respect of
such claim and may, at its sole option, either direct the Employee to pay the
tax claimed and sue for a refund or contest the claim in any permissible
manner, and the Employee agrees to prosecute such contest to a determination
before any administrative tribunal, in a court of initial jurisdiction and in
one or more appellate courts, as the Company shall determine; provided,
however, that if the Company directs the Employee to pay such claim and sue for
a refund, the Company shall advance the amount of such payment to the Employee,
on an interest-free basis and shall indemnify and hold the Employee harmless,
on an after-tax basis, from any Excise Tax or income tax (including related
interest or penalties) imposed with respect to such advance or with respect to
any imputed income with respect to such advance. The Company’s control of the
contest shall be limited to issues that may impact Gross-Up Payments or
reduction in Payments under this Section 17, and the Employee shall be
entitled to settle or contest, as the case may be, any other issue raised by
the Internal Revenue Service or any other taxing authority.

(f)                                If,
after the receipt by the Employee of an amount advanced by the Company pursuant
to Section 17(e), the Employee becomes entitled to receive any refund with
respect to such claim, the Employee shall (subject to the Company’s complying
with the requirements of Section 17(e)) promptly pay to the Company the
amount of such refund (together with any interest paid or credited thereon
after taxes applicable thereto). If, after the receipt by the Employee of an
amount advanced by the Company pursuant to Section 17(e), a determination
is made that the Employee shall not be entitled to any refund with respect to
such claim and the Company does not notify the Employee in writing of its intent
to contest such denial of refund prior to the expiration of thirty (30) days
after such determination, then such advance shall be forgiven and shall not be
required to be repaid.

18.          Entire Agreement and Amendment.   This Agreement
embodies the entire agreement and understanding of the parties hereto in
respect of the subject matter of this Agreement, and supersedes and replaces
all prior agreements, understandings and commitments with respect to such
subject matter, including, without limitation, the Prior Agreement. This
Agreement may be amended only by a written document signed by both parties to
this Agreement.

19.          Governing Law.   Florida law shall govern the
construction and enforcement of this Agreement and the parties agree that any
litigation pertaining to this Agreement shall be adjudicated in courts located
in Florida.

20.          Attorneys’ Fees.   If any party finds it necessary to employ
legal counsel or to bring an action at law or other proceedings against the
other party to enforce any of the terms hereof, the party prevailing in any
such action or other proceeding shall be paid by the other party its reasonable
attorneys’ fees as well as court costs, all as determined by the court and not
a jury.

 8
 

21.          Severability.   If
any section, subsection or provision hereof is found for any reason
whatsoever, to be invalid or inoperative, that section, subsection or
provision shall be deemed severable and shall not affect the force and validity
of any other provision of this Agreement. If any covenant herein is determined
by a court to be overly broad thereby making the covenant unenforceable, the
parties agree and it is their desire that such court shall substitute a
reasonable judicially enforceable limitation in place of the offensive part of
the covenant and that as so modified the covenant shall be as fully enforceable
as if set forth herein by the parties themselves in the modified form. The
covenants of the Employee in this Agreement shall each be construed as an
agreement independent of any other provision in this Agreement, and the
existence of any claim or cause of action of the Employee against the Company,
whether predicated on this Agreement or otherwise, shall not constitute a
defense to the enforcement by the Company of the covenants in this Agreement.

22.          Notices.   Any
notice, request or instruction to be given hereunder shall be in writing and
shall be deemed given when personally delivered or three (3) days after
being sent by the United States Certified Mail, postage prepaid, with Return
Receipt Requested, to the parties at their respective addresses set forth
below:

	
  

  	
  To the Company:

  	
   

  	
  Certegy, Inc.

  
	
   

  	
   

  	
   

  	
  601 Riverside
  Avenue

  
	
   

  	
   

  	
   

  	
  Jacksonville,
  Florida 32204

  
	
   

  	
   

  	
   

  	
  Attention:  Peter T. Sadowski

  
	
   

  	
  To the Employee:

  	
   

  	
  Jeffrey S. Carbiener

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

23.          Waiver of Breach.   The
Waiver by any party of any provisions of this Agreement shall not operate or be
construed as a waiver of any prior or subsequent breach by the other party.

24.          Successors.   In
addition to any obligations imposed by law upon any successor to the Company,
the Company will require any successor (whether direct or indirect, by
purchase, merger, consolidation or otherwise) to all or substantially all of
the business and/or assets of the Company, to expressly assume and agree to
perform this Agreement in the same manner and to the same extent that the
Company would be required to perform it if no such succession had taken place. As
used in this Agreement, “Company” shall mean the Company as herein before
defined and any such successor that expressly assumes this Agreement or
otherwise becomes bound by all the terms and provisions of this Agreement by
operation of law.

IN
WITNESS WHEREOF the parties have executed this Agreement to be effective as of
the date first set forth above.

	
  

  	
  CERTEGY, INC.

  
	
   

  	
  By:

  	
  /s/ WALTER M. KORCHUN

  
	
   

  	
  Its:

  	
   Executive Vice President, General Counsel

  and Secretary

  
	
   

  	
  JEFFREY
  S. CARBIENER

  
	
   

  	
  /s/ JEFFREY S. CARBIENER

  

 

 9

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