Document:

EX-10.2 COMMON STOCK DELIVERY AGREEMENT

 

Exhibit 10.2

COMMON STOCK DELIVERY AGREEMENT

     This agreement (“Agreement”) is being made this 6th day of November, 2006 by and between MPT
Operating Partnership, L.P., a Delaware limited partnership (the “Issuer”), and Medical Properties
Trust, Inc., a Maryland corporation (the “Guarantor”).

Recitals

     WHEREAS, the Guarantor is the sole member of the general partner of the Issuer; and

     WHEREAS, the Issuer and the Guarantor have entered into a purchase agreement dated November 1,
2006 with UBS Securities LLC and J.P. Morgan Securities Inc. as representatives of the initial
purchasers (the “Initial Purchasers”), providing for the issuance and sale by the Issuer in an
offering under Rule 144A promulgated under the Securities Act of 1933, as amended (the “Act”), of
$125,000,000 principal amount of its 6.125% Senior Exchangeable Senior Notes due 2011 (the
“Securities”), which Securities may be exchangeable into cash and, if applicable, shares of common
stock, par value $0.001 per share, of the Guarantor (the “Common Stock”) under certain
circumstances.

     NOW, THEREFORE, in consideration of the foregoing and in consideration of the mutual covenants
contained herein, the parties agree as follows:

Agreement

     1. If the Issuer is required to deliver Common Stock to the holders of the Securities upon
exchange, redemption or maturity in accordance with the terms of the Securities and the Indenture,
dated as of November 6, 2006, by and among the Issuer, the Guarantor and Wilmington Trust Company,
as trustee (the “Indenture”), related to the Securities, the Guarantor agrees to issue the number
of Common Stock which the Issuer is required to deliver, and the Issuer hereby directs the
Guarantor to deliver such Common Stock to the holders of the Securities on behalf of the Issuer in
accordance with the Indenture.

     2. Upon any such issuance of Common Stock, the Issuer shall, in accordance with its First
Amended and Restated Agreement of Limited Partnership (the “Partnership Agreement”) issue to the
Guarantor on a concurrent basis a certain number of “Partnership Units” (as defined in the
Partnership Agreement) equal to the number of Partnership Units the Issuer would issue to the
Guarantor if the Guarantor instead issued the Common Stock to the Issuer.

     3. The Issuer hereby agrees to indemnify the Guarantor and each of its directors and officers
(each, an “Indemnified Party”) against, and agrees to hold, save and defend each Indemnified Party,
harmless from, any loss, expense or damage (including without limitation,
reasonable attorneys’ fees and expenses and court costs actually incurred) suffered or
incurred by an Indemnified Party by reason of anything such Indemnified Party may in good faith do
or refrain from doing for or on behalf of the Issuer pursuant to this Agreement; provided, however,
that the Issuer shall not be required to indemnify an Indemnified Party for any loss, expense or

 

 

damage that such Indemnified Party may suffer or incur as a result of its willful misconduct or
gross negligence.

     4. Miscellaneous.

     (a) THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO CONFLICT LAWS, RULES OR PRINCIPLES.

     (b) No provision of this agreement may be amended, modified, or waived, except in
writing signed by both parties and with the consent of a majority in principal amount of
Securities then outstanding; provided, however, that the unanimous consent of the holders of
all outstanding Securities will be required in order to amend, modify, or waive the
provisions of paragraph 2 hereof or to otherwise adversely affect the right of holders of
Securities to exchange the Securities for Common Stock as provided in the Indenture. Any
consent of the holders of the Securities shall be obtained in accordance with the applicable
provisions of the Indenture.

     (c) In the event that any claim of inconsistency between this Agreement and the terms
of the Indenture arise, as they may from time to time be amended, the terms of the Indenture
shall control.

     (d) If any provision of this Agreement shall be held illegal, invalid, or unenforceable
by any court, this Agreement shall be construed and enforced as if such provision had not
been contained herein and shall be deemed an Agreement among us to the full extent permitted
by applicable law.

     (e) The terms and provisions of this Agreement are intended solely for the benefit of
each party hereto and their respective successors or permitted assigns, and it is not the
intention of the parties to confer third-party beneficiary rights to any other person,
except that the holders of the Securities shall be deemed third-party beneficiaries of this
Agreement and shall be entitled to enforce the provisions of this Agreement as if they were
parties hereto.

     (f) This Agreement may not be assigned by either party without prior written consent of
both parties.

[The remainder of the page has been left blank intentionally.]

 -2-

 

 

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement by their duly authorized
officers as of the day and year above written.

	 	 	 	 	 
	 	 	MPT OPERATING PARTNERSHIP, L.P.
	 
	 	 	 	 
	 

	 	By:
	 	Medical Properties Trust, LLC

as General Partner
	 
	 

	 	By:
	 	Medical Properties Trust, Inc.,
as Sole Member

	 	 	 	 	 
	 	By:  	                  /s/ Edward K. Aldag, Jr.
 	 
	 	 	Name:  	Edward K. Aldag, Jr. 	 
	 	 	Title:  	President and Chief Executive
Officer 	 
	 

	 	 	 	 	 
	 	MEDICAL PROPERTIES TRUST, INC.

 	 
	 	By:  	               /s/ Edward K. Aldag, Jr.
 	 
	 	 	Name:  	Edward K. Aldag, Jr. 	 
	 	 	Title:  	President and Chief Executive
Officer 	 
	 

 -3-EX-10.1 SEPERATION AGREEMENT DATED NOVEMBER 9 2006

 

Exhibit 10.1

November 9, 2006

James S. Mahan, III

At the address on file with the Company

Re:   Your separation from S1 Corporation

Dear Chip:

This letter agreement (the “Agreement”) sets forth the terms under which your employment with S1
Corporation (“S1” or the “Company”) effective October 20, 2006 (the “Separation Date”) has ended.
We desire to resolve any and all issues relating to your employment and the conclusion of your
employment with the Company amicably and on mutually satisfactory terms. Specifically, you (“You”
or “Your”) and the Company (collectively, the “Parties”) agree:

A. Separation Terms

1. Separation Benefits. Provided that You satisfy the conditions of this Agreement and do
not revoke this Agreement, the Company will:

	 	(a)	 	Separation Payment. Make payments to You totaling $800,000 (the
“Separation Payments”). The Separation payments will be paid in accordance with the
following: On the first regular Company payroll following the later of (i) six months
after the Separation Date, or (ii) the expiration of the Revocation Period set forth in
Section A.3 (vi) hereof, the Company will make a lump sum payment in the amount of
$200,000, less lawful withholdings. Thereafter, the Company will make twice monthly
payments in the amount of $16,666.66 each, less lawful withholdings over a period of
eighteen months in accordance with the Company’s standard payroll schedule.
	 
	 	(b)	 	Reimbursement of COBRA Premiums, Life Insurance Cost and Long Term
Disability Cost. Reimburse Your COBRA premium under the Company’s major medical
group health and dental and vision plans and the cost of long term disability coverage
comparable to that which You had under the Company’s long term disability benefit on a
monthly basis, for a period of twenty-four (24) months after the Separation Date (the
“Severance Period”). Reimburse You for the cost of conversion of the S1 group term
Life Insurance policy to an individual policy during the Severance Period.
Reimbursement of amounts under this paragraph will be made within 30 days of receipt of
your proof of payment by You of the premiums for such coverage; and
	 
	 	(c)	 	References. Provide a reference letter in the form attached as Exhibit
A in response to a written reference request authorized by You. You must direct all
reference requests to VP, Human Resources, S1 Corporation, 3500 Lenox Road, Suite 200,
Atlanta, Georgia 30326, or his successor. In response to inquiries concerning Your
employment, the Company will disclose Your dates of employment and job titles.

All payments will be subject to applicable withholdings, including taxes and Social Security. The
Company’s obligation to pay the amounts set forth in sub-paragraph (a) and (b) above shall
terminate immediately upon any material breach by You of this Agreement.

 

 

2. Release. In consideration for the separation benefits set forth in Section A(1) above,
You hereby fully and forever release and discharge the Company from any and all liability for any
claim, duty, obligation, debt, covenant, cause of action or damages (collectively “Claims”),
whether presently known or unknown, suspected or unsuspected, that You ever had, may have had or
now have arising from any omission, act or fact that has occurred up to and including the date You
sign this Agreement. Such released Claims include, but are not limited to: (i) any Claims arising
out of or attributable to Your employment or the termination of Your employment with the Company;
(ii) any Claims for wages, severance pay, bonuses, accrued vacation, personal days, holidays, sick
days, stock, stock options, attorneys fees, costs or expenses; (iii) all Claims arising under any
agreement, understanding, promise or contract (express or implied, oral or written) between You and
the Company; (iv) all Claims of wrongful termination, unjust dismissal, defamation, libel or
slander; (v) all Claims arising under tort law; (vi) any Claims arising under any federal, state or
local law dealing with discrimination based on age, race, sex, national origin, handicap, religion,
disability or sexual preference; (vii) any Claims arising under any federal, state or local
constitution, statute, regulation or ordinance to the extent such claims may be validly waived
including, without limitation, the Age Discrimination in Employment Act (the “ADEA”), Title VII of
the Civil Rights Act of 1964, the Americans with Disabilities Act, the Civil Rights Act of 1991,
the Family and Medical Leave Act, the Equal Pay Act, the Employee Retirement Income Security Act,
the North Carolina Equal Employment Practices Act, the North Carolina Persons with Disabilities
Protection Act, the North Carolina Wage and Hour Act, and (viii) any Claims for any other loss or
damage. Excluded from this release are any rights or claims that cannot be waived by law,
including Your right to file a charge with an administrative agency or to participate in any agency
investigation, and any rights or claims against the Company the arise under this Agreement. You
are, however, waiving Your right to recover money in connection with any charge filed with or by
the Equal Employment Opportunity Commission or any other federal or state agency.

3. OWBPA/ADEA Waiver. By agreeing to this provision, You release and waive any right or
claim against the Company arising out of Your employment or the termination of Your employment with
the Company under the Age Discrimination in Employment Act, as amended, 29 U.S.C. § 621 et
seq. (“ADEA”), or the Older Workers Benefit Protection Act, 29 U.S.C. § 621 et
seq. (“OWBPA”) (such release and waiver to be referred to as the “Waiver”). You understand
and agree that:

	 	(i)	 	this Agreement is written in a manner that You understand;
	 
	 	(ii)	 	You do not release or waive rights or claims that may arise
after You sign this Agreement;
	 
	 	(iii)	 	You waive rights and claims You may have had under the OWBPA
and the ADEA, but only in exchange for payments and/or benefits in addition to
anything of value to which You are already entitled;
	 
	 	(iv)	 	You have been advised to consult with an attorney before
signing this Agreement;
	 
	 	(v)	 	You have 21 days (the “Offer Period”) from receipt of this
Agreement to consider whether to sign it. If You sign before the end of the
Offer Period, You acknowledge that Your decision to do so was knowing,
voluntary, and not induced by fraud, misrepresentation, or a threat to
withdraw, alter, or provide different terms prior to the expiration of the
Offer Period;
	 
	 	(vi)	 	You have 7 days after signing this Agreement to revoke this
Agreement (the “Revocation Period”). If You revoke, the Agreement shall not be
effective or enforceable and You shall not be entitled to the separation
benefits stated above. To be effective, the revocation must be in writing and
received by Sandy Fountain, VP Human Resources at S1 Corporation, 3500 Lenox
Road, Suite 200, Atlanta, Georgia 30326, or her successor, within the
Revocation Period; and

 

 

	 	(vii)	 	this Waiver will not become effective or enforceable until the
Revocation Period has expired; and

B. Your Ongoing Obligations

1. Return of Company Property. You will, on the Separation Date, return to the Company all
of the Company’s property, including, but not limited to, computers, computer equipment, office
equipment, cell phone, keys, passcards, calling cards, credit cards, customer lists, rolodexes,
tapes, software, computer files, marketing and sales materials, and any other record, document or
piece of equipment belonging to the Company, except for Your laptop computer furnished to You by
the Company, with respect to which You have agreed that the Company may remove all confidential and
Company proprietary information stored therein. You will not retain any copies of the Company’s
property, including any copies existing in electronic form, which are in Your possession or
control. You acknowledge that You have not and will not destroy, delete, or alter any Company
property without the Company’s consent.

2. Non-Disparagement. You will not make any false, disparaging, defamatory or derogatory
statements, whether written or verbal, regarding the Company, including without limitation
statements about the Company’s business affairs, financial condition and/or employees.

3. Future Employment. You agree that the Company has no obligation to consider You for
employment should You apply in the future.

4. Effect on Stock Options. Set forth on Exhibit C is a true, correct and complete
list of all options held by You to purchase common stock of S1 Corporation (the “Stock Options”).
The Stock Options, to the extent not currently vested and exercisable, shall become vested and
exercisable in accordance with Section 9(d)(v)(B) of that certain Employment Agreement, dated April
30, 2001, by and between You and the Company (the “Employment Agreement”), and shall otherwise
remain subject to the terms and conditions of the applicable option agreements. By way of
clarification, in accordance with such Section 9(d)(v)(B) of the Employment Agreement, all Stock
Options that would otherwise vest if You continued to be employed by the Company during the
twenty-four months following the Separation Date shall become vested and exercisable as of the
Separation Date.

C. General Provisions

1. No Admission of Liability. This Agreement is not an admission of liability by the
Company or You. The Company denies any liability whatsoever. The Company enters into this
Agreement to reach a mutual agreement concerning Your separation from the Company.

2. Waiver. The Company’s failure to enforce any provision of this Agreement shall not act
as a waiver of that or any other provision. The Company’s waiver of any breach of this Agreement
shall not act as a waiver of any other breach.

3. Severability. The provisions of this Agreement are severable. If any provision of this
Agreement is determined to be unenforceable, in whole or in part, then such provision shall be
modified so as to be enforceable to the maximum extent permitted by law. If such provision cannot
be modified to be enforceable, the provision shall be severed from this Agreement to the extent
unenforceable. The remaining provisions and any partially enforceable provisions shall remain in
full force and effect.

4. Governing Law. The laws of the State of North Carolina shall govern this Agreement. If
North Carolina’s conflict of law rules would apply another state’s laws, the Parties agree that
North Carolina law shall still govern.

5. Entire Agreement. This Agreement, your option agreements, and the Covenants Agreement
executed by You contemporaneously with this Agreement (collectively, the “Agreements”) constitute
the entire agreement between the Parties. The Covenants Agreement is incorporated by reference,
and any post-termination obligations

 

 

contained in the Covenants Agreement shall remain in full force and effect, and shall survive
cessation of Your employment. You acknowledge that the post-termination obligations contained in
the Covenants Agreement are valid, enforceable and reasonably necessary to protect the interests of
the Company, and You agree to abide by such obligations. These Agreements supersede any prior
communications, agreements or understandings, whether oral or written, between the Parties arising
out of or relating to Your employment and the termination of that employment. Other than this
Agreement, no other representation, promise or agreement has been made with You to cause You to
sign this Agreement. The Employment Agreement is hereby terminated and canceled and shall be of no
further force or effect as of the Separation Date, except for the provisions of Section 9(d)(v)(B)
thereof, which shall remain in full force and effect in accordance with its terms. Likewise, that
certain Confidentiality, Non-Disclosure and Non-Competition Agreement dated April 30, 2001 between
You and the Company is hereby terminated and canceled and shall be of no further force or effect as
of the Separation Date.

6. Amendments. This Agreement may not be amended or modified except in writing signed by
both Parties.

7. Successors and Assigns. This Agreement shall be assignable to, and shall inure to the
benefit of, and shall be binding upon the Company’s successors and assigns, including, without
limitation, successors through merger, name change, consolidation, or sale of a majority of the
Company’s stock or assets, and shall be binding upon You and Your heirs and assigns.

8. Share Repurchase. Excluding shares held in Your 401(k) account, as of November 8, 2006,
You and Your spouse currently own 612 shares of common stock of the Company (together with any
shares of common stock of the Company You receive upon the exercise of the Stock Options prior to
the earlier of (x) the “Put Expiration Date” and (y) the “Put Exercise Date” (each as defined
below), the “Shares”). From the date which is 11 business days following the date of termination of
the modified “Dutch Auction” tender offer as currently contemplated by the Company (the “Issuer
Tender Offer”) until sixty (60) days following the date of termination of the Issuer Tender Offer
(the “Put Expiration Date”), You shall have a one-time option (the “Put”), exercisable on not less
than ten business days written notice to the Company’s chief legal officer (the date of such notice
being the “Put Exercise Date”), to require the Company to, subject to applicable law, repurchase
any or all of the Shares at a price per share equal to the greater of (i) $4.75 and (ii) the price
paid by the Company in the Issuer Tender Offer, less any applicable withholding taxes and without
interest, and the Company hereby agrees to make such purchase if You exercise the Put, subject to
applicable law; provided however, that if the Company elects not to conduct the Issuer Tender
Offer, the Put may be exercised at $4.75 as aforesaid from ten business days following the
Company’s announcement of its decision not to conduct the Issuer Tender Offer until thirty calendar
days after the date of such announcement. You acknowledge and agree that the Shares are, and will
be at the time of repurchase, free and clear of any liens, pledges, security interests, claims,
options, rights of first refusal, co-sale rights, charges or other encumbrances of any kind or
nature (“Encumbrances”). You shall deliver, or cause to be delivered, to the Company, against
payment therefore, stock certificates representing the Shares, free and clear of all Encumbrances.
Nothing contained herein shall require You to exercise the Put, it being Your option.

9. Certain Acknowledgments. The Company acknowledges and agrees that (i) as part of the
Company’s agreement to pay You a commuter allowance during the time You served as CEO of the
Company, the Company will reimburse You for the actual and reasonable moving expenses with respect
to moving Your personal property out of the apartment in Atlanta, Georgia You leased in connection
with Your employment with the Company to your home in Wilmington, N.C.; and (ii) that the Company
presently maintains directors and officers liability insurance coverage that would cover You,
subject to the limitations and exclusions contained therein, for claims that arise based on acts or
omissions that occurred while You were an officer and director of the Company, and which were
committed by You in Your capacities as such.

If the terms set forth in this Agreement are acceptable, please sign below before a notary and
return the signed original to me on or before December 4, 2006.

	 	 	 
	 

	 	Sincerely,
	 
	 	 
	 

	 	/s/ Richard P. Dobb
	 

	 	Richard P. Dobb
	 

	 	Corporate Secretary

 

 

I acknowledge the validity of this 6 page Agreement, including the attached Exhibits, and represent
that I have the legal capacity to enter into this Agreement. I acknowledge that I have had the
opportunity to consult with an attorney before signing this Agreement. I have carefully read the
Agreement, know and understand the terms and conditions, including its final and binding effect,
and sign it voluntarily.

	 	 	 	 	 
	/s/ James S. Mahan, III

	 	November 10, 2006
	 	 
	 
	 	 	 	 
	James S. Mahan, III

	 	Date	 	 
	 
	 	 	 	 
	Sworn to and subscribed before me
this 10th day of November, 2006.
	 	 	 	 
	 
	 	 	 	 
	/s/ Deborah M. Childers
	 	 	 	 
	 
	 	 	 	 
	Notary Public
	 	 	 	 
	 
	 	 	 	 
	My
commission expires: June 17, 2011
	 	 	 	 
	 
	 	 	 	 
	               (NOTARIAL SEAL)
	 	 	 	 

 

 

EXHIBIT A

                                                            

                                                            

                                                            

Re:   [Employee Name]

Dear                                        :

     This letter is written in response to your request for references.

     Date of Employment:                [Hire Date] through [Separation Date]

     Position:                                     [Employee Position]

    It is the Company’s policy not to disclose any additional information.

	 	 	 	 	 
	 	Sincerely yours,

VP Human Resources

 	 
	 	 	 
	 	 	 
	 	 	 
	 

 

 

EXHIBIT B

COVENANTS AGREEMENT

     This COVENANTS AGREEMENT (the “Agreement”) is made this 9th day of November, 2006, between S1
Corporation (the “Company”) and James S. Mahan, III (“You” or “Your”) (collectively, the
“Parties”).1

For and in consideration of the premises, as well as the obligations herein made and undertaken,
the sufficiency of which is acknowledged, You agree to the following terms:

1.
Acknowledgments. You acknowledge that:

     (a) While an employee of the Company, Your were in a position of trust and responsibility with
access to Confidential Information,
Trade
        Secrets, and information concerning employees and
customers of the Company;

     (b) the Trade Secrets and Confidential Information, and the relationship between the Company
and each of its Employees and Customers,
        are valuable assets of the Company and may not be used for
any purpose other than the Company’s Business; and

     (c) the restrictions contained in this Agreement are reasonable and necessary to protect the
legitimate business interests of the Company, and
        will not impair or infringe upon Your right to
work or earn a living in the event Your employment with
the
     Company ends.

2.
Trade Secrets and Confidential Information.

     (a) You represent and warrant that:

          (i) You are not subject to any legal or contractual duty or agreement that would prevent or
prohibit You from performing Your duties
for
           the Company or complying with this Agreement, and

          (ii) You are not in breach of any legal or contractual duty or agreement, including any
agreement concerning trade secrets or
confidential
            information owned by any other party.

      (b)
You will not:

          (i) use, disclose, or reverse engineer the Trade Secrets or the Confidential Information for any
purpose other than the Company’s
           Business, except as authorized in writing by the Company;

          (ii) use, disclose, or reverse engineer (a) any confidential information or trade secrets of
any former employer or third party, or (b) any
           works of authorship developed in whole or in part by
You during any former employment or for any other
party,
 unless authorized in writing by the former employer or third party; or

          (iii) (a) retain Trade Secrets or Confidential Information, including any copies existing in
any form (including electronic form) which are
          in Your possession or control, or (b) destroy,
delete, or alter the Trade Secrets or Confidential
Information
          without
the Company’s written consent.

    (c) The obligations under this Agreement shall:
                    

          (i) with regard to the Trade Secrets, remain in effect as long as the information constitutes
a trade secret under applicable law; and

          (ii) with regard to the Confidential Information, remain in effect during the Restricted
Period.

    (d) The confidentiality, property, and proprietary rights protections available in this Agreement
are in addition to, and not exclusive of, any and all other rights to
which the Company is entitled under federal and state law, including, but not limited to, rights
          provided
under copyright laws, trade secret and confidential information laws,
and laws concerning fiduciary duties.

3.
Non-Solicitation of Customers. During the Restricted Period, You will not directly or
indirectly solicit any Customer of the Company for the purpose of providing any goods or services
competitive with the Business. The restrictions set forth in this Section apply only to Customers
with whom You had Contact.

4.
Non-Recruit of Employees. During the Restricted Period, You will not, directly or indirectly,
solicit, recruit or induce any Employee to (i) terminate his or her employment relationship with
the Company, or (ii) work for any other person or entity engaged in the Business.

5.
Post-Employment Disclosure. During the Restricted Period, You shall provide a copy of this
Agreement to persons and/or entities for whom You work or consult as an owner, partner, joint
venturer, employee or independent contractor.

6.
Injunctive Relief. If You breach this Agreement, You agree that:

     (a) the Company would suffer irreparable harm;

     (b) it would be difficult to determine damages, and money damages alone would be an inadequate
remedy for the injuries suffered by the
         Company; and

     (c) if the Company seeks injunctive relief to enforce this Agreement, You will waive and will
not (i) assert any defense that the Company
        has an adequate remedy at law with respect to the
breach, (ii) require that the Company submit proof of the
economic value of any
Trade       Secret or
Confidential Information, or (iii) require the Company to post a
bond or any other security.

Nothing contained in this Agreement shall limit the Company’s right to any other remedies at law or
in equity.

7.
Attorneys’ Fees. In the event of litigation relating to this Agreement, the Company shall, if
it is the prevailing party, be entitled to recover attorneys’ fees and costs of litigation in
addition to all other remedies available at law or in equity.

8.
Waiver. The Company’s failure to enforce any provision of this Agreement shall not act as a
waiver of that or any other provision. The Company’s waiver of any breach of this Agreement shall
not act as a waiver of any other breach.

9.
Severability. The provisions of this Agreement are severable. If any provision is determined to
be invalid, illegal, or unenforceable, in whole or in part, the remaining provisions and any
partially enforceable provisions shall remain in full force and effect.

10.
Governing Law. The laws of the State of North Carolina shall govern this Agreement. If North
Carolina’s conflict of law rules would apply another state’s laws, the Parties agree that North
Carolina law shall still govern.

11. No
Strict Construction. If there is a dispute about the language of this Agreement, the fact
that one Party drafted the Agreement shall not be used in its interpretation.

12.
Entire Agreement. This Agreement, including Attachment A which is incorporated by reference,
constitutes the entire agreement between the Parties concerning the subject matter of this
Agreement. This Agreement supersedes any prior communications, agreements or understandings,
whether oral or written, between the Parties relating to the subject matter of this Agreement,
including without limitation, that certain Confidentiality, Non-Disclosure and Non-Competition
Agreement dated April 30, 2001 between You and the Company.

13.
Amendments. This Agreement may not be amended or modified except in writing signed by both
Parties.

14.
Successors and Assigns. This Agreement shall be assignable to, and shall inure to the benefit
of, the Company’s successors and assigns, including, without limitation, successors through merger,
name change, consolidation, or sale of a majority of the Company’s stock or assets, and shall be
binding upon You. You shall not have the right to assign Your rights or obligations under this
Agreement. The covenants contained in this Agreement shall survive cessation of Your employment
with the Company, regardless of who causes the cessation or the reason for cessation.

15.
Consent to Jurisdiction and Venue. You agree that any claim arising out of or relating to this
Agreement shall be brought in a state or federal court of competent jurisdiction in North Carolina.
You consent to the personal jurisdiction of the state and/or federal courts located in North
Carolina. You waive (a) any objection to jurisdiction or venue, or (b) any defense claiming lack
of jurisdiction or improper venue, in any action brought in such courts.

16.
Affirmation. You acknowledge that You have carefully read this Agreement, You know and
understand its terms and conditions, and You have had the opportunity to ask the Company any
questions You may have had prior to signing this Agreement.

IN WITNESS WHEREOF, the Parties have signed this Agreement as of the date set forth above.

	 	 	 	 	 	 	 	 	 
	S1 Corporation	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Richard Dobb
 

	 	 
	 	/s/ James S. Mahan
 

	 	 
	Name: Richard Dobb	 	 	 	James S. Mahan, III	 	 
	Title: Secretary	 	 	 	At the address on file with the
Company	 	 
	Address: 3500 Lenox Road	 	 	 	 	 	 
	 

	 	      Suite 200	 	 	 	 	 	 
	 

	 	      Atlanta, GA 30326	 	 	 	 	 	 

 

			
	1	 	Unless otherwise indicated, all capitalized terms used in
this Agreement are defined in the “Definitions” section of Attachment A.
Attachment A is incorporated by reference and is included in the definition of
“Agreement.”

 
-11-

 

ATTACHMENT A

DEFINITIONS

	A.	 	“Business” shall mean the business of developing, designing, and implementing computer
applications that allow banks, brokerage firms, and insurance companies to enable their
customers to access financial information and conduct transactions over multiple delivery
channels.
	 
	B.	 	“Confidential Information” means (a) information of the Company, to the extent not considered
a Trade Secret under applicable law, that (i) relates to the business of the Company, (ii)
possesses an element of value to the Company, (iii) is not generally known to the Company’s
competitors, and (iv) would damage the Company if disclosed, and (b) information of any third
party provided to the Company which the Company is obligated to treat as confidential.
Confidential Information includes, but is not limited to, (i) future business plans, (ii) the
composition, description, schematic or design of products, future products or equipment of the
Company, (iii) communication systems, audio systems, system designs and related documentation,
(iv) advertising or marketing plans, (v) information regarding independent contractors,
employees, clients and customers of the Company, and (vii) information concerning the
Company’s financial structure and methods and procedures of operation. Confidential
Information shall not include any information that (i) is or becomes generally available to
the public other than as a result of an unauthorized disclosure, (ii) has been independently
developed and disclosed by others without violating this Agreement or the legal rights of any
party, or (iii) otherwise enters the public domain through lawful means.
	 
	C.	 	“Contact” means any interaction between You and a Customer which (i) takes place in an effort
to establish, maintain, and/or further a business relationship on behalf of the Company and
(ii) occurs during the last year of Your employment with the Company (or during Your
employment if employed less than a year).
	 
	D.	 	“Customer” means any person or entity to whom the Company has sold its products or services,
or solicited to sell its products or services.
	 
	E.	 	“Employee” means any person who (i) is employed by the Company at the time Your employment
with the Company ends, (ii) was employed by the Company during the last year of Your
employment with the Company (or during Your employment if employed less than a year), or (iii)
is employed by the Company during the Restricted Period.
	 
	F.	 	“Licensed Materials” means any materials that You utilized for the benefit of the Company, or
delivered to the Company or the Company’s customers, which were created by You or of which You
are otherwise in lawful possession, and (iii) You lawfully utilized for the benefit
of, or distribute to, the Company or the Company’s customers.
	 
	G.	 	“Restricted Period” means the time period during Your employment with the Company, and for
two (2) years after Your employment with the Company ends.
	 
	H.	 	“Trade Secrets” means information of the Company, and its licensors, suppliers, clients and
customers, without regard to form, including, but not limited to, technical or non-technical
data, a formula, a pattern, a compilation, a program, a device, a method, a technique, a
drawing, a process, financial data, financial plans, product plans, or a list of actual or
potential customers or suppliers which is not commonly known by or available to the public and
which information (i) derives economic value, actual or potential, from not being generally
known to, and not being readily ascertainable by proper means by, other persons who can obtain
economic value from its disclosure or use, and (ii) is the subject of efforts that are
reasonable under the circumstances to maintain its secrecy.

 

 

	I.	 	“Work Product” means (a) any data, databases, materials, documentation, computer programs,
inventions (whether or not patentable), designs, and/or works of authorship, including but not
limited to, discoveries, ideas, concepts, properties, formulas, compositions, methods,
programs, procedures, systems, techniques, products, improvements, innovations, writings,
pictures, audio, video, images of You, and artistic works, and (b) any subject matter
protected under patent, copyright, proprietary database, trademark, trade secret, rights of
publicity, confidential information, or other property rights, including all worldwide rights
therein, that is or was conceived, created or developed in whole or in part by You while
employed by the Company and that either (i) is created within the scope of Your employment,
(ii) is based on, results from, or is suggested by any work performed within the scope of Your
employment and is directly or indirectly related to the business of the Company or a line of
business that the Company may reasonably be interested in pursuing, (iii) has been or will be
paid for by the Company, or (iv) was created or improved in whole or in part by using the
Company’s time, resources, data, facilities, or equipment.

 

 

EXHIBIT C

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Option	 	 	 	Shares	 	Grant	 	Options
	Name	 	Plan Name	 	type	 	Grant Date	 	Granted	 	Price	 	Outstanding
	MAHAN, JAMES S.

	 	2003 NQ STOCK

OPTIONS
	 	NQ
	 	11/8/2005
	 	 	200,000.	 	 	 	4.15	 	 	
* 200,000.	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	MAHAN, JAMES S.

	 	2003 NQ STOCK

OPTIONS
	 	NQ
	 	11/8/2005
	 	 	100,000.	 	 	 	4.15	 	 	
** 100,000.	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	MAHAN, JAMES S.

	 	2003 NQ STOCK

OPTIONS
	 	NQ
	 	11/8/2005
	 	 	100,000.	 	 	 	4.15	 	 	***
100,000.	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	MAHAN, JAMES S.

	 	2003 NQ STOCK

OPTIONS
	 	NQ
	 	4/19/2004
	 	 	100,000.	 	 	 	8.07	 	 	 	100,000.	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	MAHAN, JAMES S.

	 	2003 NQ STOCK

OPTIONS
	 	NQ
	 	8/11/2003
	 	 	30,000.	 	 	 	3.57	 	 	 	30,000.	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	MAHAN, JAMES S.

	 	1997 STOCK OPTIONS
	 	NQ
	 	1/30/2002
	 	 	300,000.	 	 	 	14.35	 	 	 	300,000.	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	MAHAN, JAMES S.

	 	1997 STOCK OPTIONS
	 	NQ
	 	1/8/2002
	 	 	750,000.	 	 	 	18.16	 	 	 	750,000.	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	MAHAN, JAMES S.

	 	1997 STOCK OPTIONS
	 	NQ
	 	10/11/2000
	 	 	500,000.	 	 	 	8.06	 	 	 	500,000.	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	MAHAN, JAMES S.

	 	1997 STOCK OPTIONS
	 	NQ
	 	1/21/1999
	 	 	400,000.	 	 	 	15.25	 	 	 	400,000.	 

 

			
	*	 	Of the 200,000 options represented by this grant, 100,000 are vested and exercisable as of the
Separation Date pursuant to the Employment Agreement. The remaining 100,000 will lapse and not be
exercisable.
	 
	**	 	The options represented by this grant will only vest and be exercisable if the Company stock
price achieves a value of $8.00 per share within one year of the Separation Date.
	 
	***	 	The options represented by this grant will only vest and be exercisable if the Company stock
price achieves a value of $10.00 per share within one year of the Separation Date.

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