Document:

Exhibit 10.1

 

 

FINANCIAL
SECURITY ASSURANCE HOLDINGS LTD.

 

 

2004
Equity Participation Plan

 

As amended and restated on
September 15, 2005

 

 

FINANCIAL
SECURITY ASSURANCE HOLDINGS LTD.

 

2004 Equity Participation Plan

 

	
  SECTION

  	
   

  	
  CONTENTS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 1.

  	
   

  	
  General Purpose of Plan;
  Definitions

  	
   

  
	
  Section 2.

  	
   

  	
  Administration

  	
   

  
	
  Section 3.

  	
   

  	
  Stock Subject to Plan

  	
   

  
	
  Section 4.

  	
   

  	
  Eligibility

  	
   

  
	
  Section 5.

  	
   

  	
  Performance Shares

  	
   

  
	
  Section 6.

  	
   

  	
  Dexia Restricted Stock

  	
   

  
	
  Section 7.

  	
   

  	
  Performance Share Units

  	
   

  
	
  Section 8.

  	
   

  	
  Transfer, Leave of Absence,
  etc.

  	
   

  
	
  Section 9.

  	
   

  	
  Amendments and Termination

  	
   

  
	
  Section 10.

  	
   

  	
  General Provisions

  	
   

  
	
  Section 11.

  	
   

  	
  Effective Date of Plan

  	
   

  
	
  Section 12.

  	
   

  	
  Term of Plan

  	
   

  

 

 

[Approved by Board of Directors—11/18/04;
as amended on 9/15/05]

 

FINANCIAL
SECURITY ASSURANCE HOLDINGS LTD.

 

2004
Equity Participation Plan

 

Section 1.  General Purpose of Plan; Definitions.

 

The name of this plan is
the Financial Security Assurance Holdings Ltd. 2004 Equity Participation Plan
(the “Plan”).  The purpose of the
Plan is to enable the Company to retain and attract executives and employees
who will contribute to the Company’s success by their ability, ingenuity and
industry, and to enable such executives and employees to participate in the
long-term growth of the Company and Dexia by obtaining a proprietary interest
in the Company or Dexia or the cash equivalent thereof.

 

The Plan shall be
unfunded.  All obligations of the Company
under the Plan shall be paid from the general assets of the Company.

 

For purposes of the Plan,
the following terms shall be defined as set forth below:

 

a.             “Act” means the Securities Exchange Act of 1934,
as amended.

 

b.            “Adjusted Book Value” means,
as of a particular date, the Book Value on such date, subject to the following
adjustments, each of which shall have been derived from the Company’s U. S.
GAAP financial statements for the period ended on such date (or, if not
derivable from such financial statements, shall be determined in good faith by
the Company), but reduced by the amount of the federal income tax applicable
thereto:

 

(i)            add to the Book Value the sum of (A)
the unearned premiums net of prepaid reinsurance premiums at such date, (B) the
estimated present value of future installment premiums, net of reinsurance, at
such date, (C) the estimated present value of ceding commissions to be received
related to reinsured future installment premiums at such date, and (D) the
estimated present value of future net interest margin at such date; and

 

(ii)           subtract from such total the sum of (A)
the deferred acquisition costs at such date and (B) the estimated present value
of premium taxes to be paid related to future installment premiums.

 

For
purposes hereof, Adjusted Book Value shall be determined excluding the after-tax
effect of gains or losses attributable to mark-to-market of Investment Grade
credit derivatives.

 

c.             “Adjusted Book Value per share” means, as of a
particular date, Adjusted Book Value on such date divided by the number of
shares of FSA Stock outstanding (excluding treasury shares other than those
owned to hedge obligations under the Company’s Deferred Compensation Plan(s) or
Supplemental Executive Retirement Plan(s)) on such date.

 

d.             “Board” means the Board of Directors of the
Company.

 

1

 

e.             “Book Value”
means, as of a particular date, the Company’s total shareholders’ equity on
such date, as derived from the Company’s U. S. GAAP financial statements for
the period ended on such date.  For
purposes hereof, Book Value shall be determined excluding the after-tax effect
of gains or losses attributable to mark-to-market of Investment Grade credit
derivatives.

 

f.              “Book Value per share” means, as of a particular
date, Book Value on such date divided by the number of shares of FSA Stock
outstanding (excluding treasury shares other than those owned to hedge
obligations under the Company’s Deferred Compensation Plan(s) or Supplemental
Executive Retirement Plan(s)) on such date.

 

g.             “Cause” means (i) conviction of, or plea of nolo contendere
(or similar plea) by, a Participant in a criminal proceeding for commission of
a misdemeanor or a felony that is materially injurious to the Company; or (ii)
willful misconduct by a Participant in carrying out his or her duties with the Company
which is directly and materially harmful to the business or reputation of the Company.

 

h.             “Change in Control” means (i) an event or series
of events as a result of which any “person” or “group” (as such terms are
defined in Rule 13d-5 under the Act) is or becomes the “beneficial owner” (as
defined in Rules 13d-3 and 13d-5 under the Act) of shares of capital stock
entitling the holder thereof to cast more than 50% of the votes for the
election of directors of the Company; or (ii) the approval by the Company’s
shareholders of the Company’s consolidation with or merger into another
unaffiliated corporation, or another unaffiliated corporation’s merger into the
Company, or the conveyance, transfer or lease of all or substantially all of
its assets to any unaffiliated person or (iii) unless otherwise determined by
the Board, the liquidation or dissolution of the Company.

 

i.              “Code” means the Internal Revenue Code of 1986,
as amended.

 

j.              “Committee” means the committee administering
the Plan pursuant to Section 2.

 

k.             “Company” means Financial
Security Assurance Holdings Ltd. (and, unless required otherwise by the
context, its Subsidiaries), a corporation organized under the laws of the State
of New York (or any successor corporation).

 

l.              “Dexia” means Dexia S.A., a limited liability
company under Belgium law having its registered office at 1000 Brussels, Square
de Meeus 1, registered with the Commercial Registry of Brussels under 604.748
(or any successor thereto).

 

m.            “Dexia Restricted Stock” means an award of shares
of Dexia Stock that are subject to the conditions under 

Section 6.

 

n.             “Dexia Stock” means ordinary shares of Dexia.

 

o.             “Disability” means permanent and total disability
as determined under the Company’s long-term disability program or as otherwise
determined by the Committee.

 

p.             “Disinterested Person” means a person meeting the
requirements, if any, to be a member of a compensation committee prescribed by
Section 16 of the Act or any rule or regulation thereunder.

 

q.             “Division” means any of the operating units or
divisions of the Company designated as a Division by the Committee.

 

2

 

r.             “Fair Market Value” means, as
of a particular date (i) in the case of FSA Stock, if such shares are not then publicly
traded, the greater of (A)
the product of 0.85 and the Adjusted Book Value per share of FSA Stock as of
the last day of the calendar quarter ending prior to the date of determination
of Fair Market Value and (B) the average of (a) the product of 1.15 and the
Adjusted Book Value per share of FSA Stock as of the last day of the calendar
quarter ending prior to the date of determination of Fair Market Value and (b)
the product of 14 and Operating Earnings per share of FSA Stock as of the last
day of the calendar quarter ending prior to the date of determination of Fair
Market Value; and (ii) in the case of FSA Stock or Dexia Stock, if such shares
are then publicly traded, the closing sales price per share of FSA Stock
on the principal national securities exchange on which FSA Stock is then traded
or, in the case of Dexia Stock, the Euronext Brussels stock exchange (or, if
not then traded on the Euronext Brussels stock exchange, the principal stock
exchange on which Dexia Stock is then traded), in either such case, on the last
preceding date (including such particular date) (or such other date as shall be
specified herein) on which there was a sale of such shares on such exchange
and, in the case of Dexia Stock, converted into U.S. dollars using the noon buying
rate published by the Federal Reserve Bank of New York for such date (or, if
such rate is no longer published, such other rate as the Committee shall
approve), provided that if FSA Stock is not traded on a national securities
exchange but is traded in an over-the-counter market, “Fair Market Value” means
the average of the closing bid and asked prices for such shares in such
over-the-counter market for the last preceding date (including such particular
date) (or such other date as shall be specified herein) on which there was a
sale of such shares in such market.

 

s.             “FSA Stock” means the Common Stock, $.01 par
value per share, of the Company.

 

t.              “Good Reason” means the voluntary termination by
a Participant of his or her employment with the Company, after the occurrence
of any one of the following events without the Participant’s express written
consent:  (i) a diminution of any of the Participant’s
significant duties or responsibilities; (ii) a breach by the Company of its
obligations hereunder; (iii) the Company requiring the Participant to be based
at an office that is greater than twenty-five miles from the previous
location of the Participant’s office; or (iv) a material adverse change in the
Participant’s total compensation. 
Notwithstanding the foregoing, a Participant shall not be deemed to have
terminated his or her employment for Good Reason unless the Participant
provides 60 days’ prior written notice to the Company stating in reasonable
detail the basis upon which “Good Reason” is asserted, such notice is given
within 120 days of the later of the occurrence of the event or the date the
Participant knows or should have known of the event which would otherwise constitute
Good Reason and, if such failure or breach is reasonably susceptible to cure,
the Company does not effect a cure within such 60-day period.

 

u.             “Internal Reorganization” means the direct or
indirect acquisition of all or substantially all of the outstanding FSA Stock
by a newly organized holding company established to own the Company and other
companies engaged or to be engaged in the financial guaranty insurance
business, immediately following which Dexia continues to own, directly or
indirectly, shares of capital stock of the Company entitling Dexia to, directly
or indirectly, cast more than 90% of the votes for the election of directors of
the Company.

 

v.             “Investment Grade” means
exposure at or above the investment grade category by, or in accordance with
criteria of, Standard & Poor’s Ratings Services or Moody’s Investors
Service, Inc.

 

w.            “Operating
Earnings” means, as of a particular date, net income of the Company for
the first four completed calendar quarters ended on or prior to such date less the after-tax effect of gains or losses
attributable to mark-to-market of Investment Grade credit derivatives, as
determined by the

 

3

 

Company, consistent, as
applicable, with its determination of net income reported from time to time in
the Company’s quarterly reports on Form 10-Q.

 

x.             “Operating Earnings per share” means, as of a
particular date, Operating Earnings for the first four completed calendar
quarters ended on or prior to such date, divided by the number of shares of FSA
Stock outstanding (excluding treasury shares other than those owned to hedge
obligations under the Company’s Deferred Compensation Plan(s) or Supplemental
Executive Retirement Plan(s)) on such date.

 

y.             “Participant” means any employee of the Company
selected for participation in the Plan by the Committee (as a recipient of
Performance Shares, Dexia Restricted Stock or Performance Share Units).

 

z.             “Performance Cycle” means a time period specified
by the Committee at the time a grant of Performance Shares is made, during
which the performance of the Company, a Subsidiary or a Division will be
measured.

 

aa.           “Performance Objectives” means
goals set by the Committee with respect, but not limited, to:  (i) earnings per share of FSA Stock or Dexia
Stock, (ii) pre-tax profits, (iii) net earnings or net worth,
(iv) absolute and/or relative return on equity or assets, (v) any
combination of the foregoing, or (vi) any other standard or standards deemed
appropriate by the Committee at the time a grant of Performance Shares is
made.  Performance Objectives may be in
respect of the performance of the Company and its Subsidiaries (which may be on
a consolidated basis), a Subsidiary or a Division.

 

bb.          “Performance Shares” means
Performance Shares granted to a Participant under Section 5.

 

cc.           “Performance Share Units”
means Performance Share Units granted to a Participant under Section 7,
consisting of Performance Shares and Dexia Restricted Stock.

 

dd.          “Retirement” means early retirement
(at or after age 55) or normal retirement (after age 60) from active employment
with the Company, or as otherwise determined by the Committee.

 

ee.           “ROE” means, in respect of any
Performance Cycle, the average of:

 

(i)            the discount rate (expressed as an
annual percentage rate) such that (a) the Adjusted Book Value per share of FSA
Stock on the last day of the Performance Cycle, adjusted to exclude the
after-tax change in accumulated other comprehensive income (unrealized gains
and losses in the Company’s investment portfolio and any other component of
other comprehensive income) during such Performance Cycle, and the dividends
paid per share during such Performance Cycle, each discounted at such discount
rate to the first day of such Performance Cycle, equals (b) the Adjusted Book
Value per share of FSA Stock on the first day of such Performance Cycle; and

 

(ii)           the discount rate (expressed as an
annual percentage rate) such that (a) the Book Value per share of FSA Stock on
the last day of the Performance Cycle, adjusted to exclude the after-tax change
in accumulated other comprehensive income (unrealized gains and losses in the
Company’s investment portfolio and any other component of other comprehensive
income) during such Performance Cycle, and the dividends paid per share during
such Performance Cycle, each discounted at such

 

4

 

discount rate to
the first day of such Performance Cycle, equals (b) the Book Value per share of
FSA Stock on the first day of such Performance Cycle.

 

ff.            “Subsidiary” means any
corporation (other than the Company) that is a “subsidiary corporation” with
respect to the Company under Section 424(f) of the Code.  In the event that after the date hereof the
Company becomes a “subsidiary corporation” of another company, the provisions
hereof applicable to Subsidiaries shall, unless otherwise determined by the
Committee, also be applicable to such other company if it is a “parent
corporation” with respect to the Company under Section 424(e) of the Code.

 

Section 2. 
Administration.

 

The Plan shall be
administered by a Committee of not less than two persons, who shall be members
of and appointed by the Board and serve at the pleasure of the Board, unless
otherwise determined by the Board, and who shall be Disinterested Persons so
long as the FSA Stock is registered pursuant to Section 12 of the Act.  Unless otherwise determined by the Board, the
Human Resources Committee of the Board shall serve as the Committee.

 

The Committee shall have
the power and authority to grant to Participants, pursuant to the terms of the
Plan:  (a) Performance Shares, (b) Dexia
Restricted Stock and (c) Performance Share Units.

 

In particular, the
Committee shall have the authority:

 

(i)            to select the officers and other key
employees of the Company to whom Performance Shares, Dexia Restricted Stock
and/or Performance Share Units may from time to time be granted hereunder;

 

(ii)           to determine whether and to what
extent Performance Shares, Dexia Restricted Stock or Performance Share Units,
or a combination of any of the foregoing, are to be granted hereunder;

 

(iii)          to determine the number of shares of
FSA Stock or Dexia Stock to be covered by each such award granted hereunder;

 

(iv)          to determine the terms and conditions,
not inconsistent with the terms of the Plan, of any award granted hereunder
(including, but not limited to, any vesting requirements or other restrictions
or performance criteria relating to any Performance Shares, Dexia Restricted
Stock or Performance Share Units awarded hereunder and/or any shares of FSA
Stock or Dexia Stock relating thereto);

 

(v)           to determine whether, and to what
extent any one or more specified Performance Objectives, relating to an award
of Performance Shares under the Plan, have been met by the Company over any one
Performance Cycle; and

 

(vi)          to determine whether, to what extent
and under what circumstances FSA Stock, Dexia Stock and other amounts otherwise
payable with respect to an award under the Plan shall be deferred either automatically
or at the election of the Participant.

 

The Committee
shall have the authority to adopt, alter and repeal such administrative rules,
guidelines and practices governing the Plan as it shall, from time to time,
deem advisable; to interpret

 

5

 

provisions of the Plan
and any award issued under the Plan (and any agreements relating thereto); and
to otherwise supervise the administration of the Plan.  Without limiting the generality of the
foregoing, the Committee may (subject to such considerations as may arise under
Section 16 of the Act, or under other corporate, securities and tax laws) take
any steps it deems appropriate, that are not materially substantive and are not
inconsistent with the purposes and intent of the Plan, to take into account the
provisions of Section 162(m) of the Code and the Committee may take any steps
it deems appropriate (including amending the terms or imposing further
conditions on any award issued under the Plan), that are not inconsistent with
the purposes and intent of the Plan, to take into account any proposed or
existing legislation or regulations (whether U.S. federal, state, or local or
foreign), or to obtain or maintain favorable taxation, exchange control or
securities regulatory treatment for the Company or a Participant.

 

All decisions made
by the Committee pursuant to the provisions of the Plan shall be final and
binding, in the absence of bad faith or manifest error, on all persons
(including, without limitation, any interpretations of the Plan), including the
Company and Participants, and otherwise entitled to the maximum deference
permitted by law.

 

To the maximum
extent permitted by law, the Committee and the members thereof shall be
indemnified by the Company for all action and inaction by each of them in
connection with the administration of the Plan or otherwise in connection with
the Plan.

 

Section 3.  FSA Stock Subject to Plan.

 

The total number
of shares of FSA Stock reserved and available for distribution under the Plan
shall be 3,300,000; such shares may consist, in whole or in part, of authorized
and unissued shares, treasury shares, re-acquired shares, or shares purchased
by a grantor trust as provided for in Section 5.

 

If any shares of
FSA Stock issuable pursuant to any Performance Share or Performance Share Unit
award granted hereunder cease to be issuable thereunder, shall be paid in cash
or such award otherwise terminates, such shares shall again be available for
distribution in connection with future awards under the Plan.

 

The Plan
contemplates, but does not require, that the Committee will award Performance
Share Units each year in a number equal to approximately 1% of the number of
issued and outstanding shares of FSA Stock. 
The aggregate number of shares of FSA Stock reserved for issuance under
the Plan and the number of shares of FSA Stock issuable pursuant to outstanding
Performance Shares shall be appropriately adjusted by the Committee in the
event of any increase or decrease in the number of outstanding shares of FSA
Stock resulting from payment of an FSA Stock dividend on FSA Stock, a
subdivision or combination of shares of FSA Stock, a reclassification of FSA
Stock, a recapitalization involving the Company or in the event of a merger or
consolidation in which the Company shall be the surviving corporation.

 

Section 4. 
Eligibility.

 

Officers and other
employees of the Company (but not any person who serves only as a director) who
are responsible for or contribute to the management, growth and/or
profitability of the business of the Company are eligible to be granted
Performance Shares, Dexia Restricted Stock and/or Performance Share Units under
the Plan.  The Participants under the
Plan shall be selected from time to time by the Committee, in its sole
discretion, from among those eligible, and the Committee shall determine, in
its sole discretion, the number of shares covered by each award.

 

6

 

Section 5.  Performance Shares.

 

(a)           Administration and Awards.  The Committee, in its discretion, may grant
Performance Shares to one or more Participants. 
The terms and conditions of any grant of Performance Shares shall be set
forth in a written agreement between the Company and the Participant.  Such written agreement may permit a
Participant to make elections thereunder with respect to the Performance
Objective(s) applicable thereto and/or the method(s) of calculating such
Performance Objective(s).  Performance
Shares shall be denominated in shares of FSA Stock and, contingent upon the
attainment of specified Performance Objectives within one or more Performance
Cycles and, subject to the Company’s rights as set forth in paragraph (c) of
this Section 5, represent the right to receive a distribution of FSA Stock
and/or payment of cash following the completion of each Performance Cycle, as
provided in paragraph (b) of this Section 5. 
The Committee shall determine the extent to which any one or more
Performance Objectives have been achieved by the Company in the applicable
Performance Cycle.  In the absence of bad
faith or manifest error, the Committee’s determination shall be final and
binding upon a Participant.

 

Performance Shares
may be granted to a Participant prior to or during a Performance Cycle, but distributions
and payments with respect thereto may only be made following the completion of
a Performance Cycle, except as otherwise provided in paragraph (d) of this
Section 5 following a Change in Control or as otherwise approved by the
Committee.  The number of Performance
Shares subject to an award shall be allocated among the Performance Cycle(s)
covered by such award in such manner as the Committee shall determine.  The written agreement evidencing the award of
Performance Shares shall specify the number of Performance Shares subject to
the award, the number and duration of the Performance Cycles to which those
Performance Shares relate, the Performance Objectives, the identification of
the Performance Cycle(s) within which such Performance Objectives must be
satisfied, the number of Performance Shares allocated to each such Performance
Cycle, and the vesting provisions with respect to such Performance Shares
(i.e., the date or, if vesting is on an installment basis, the dates after
which the Participant shall have indefeasible right to the distribution and/or
payment described in paragraph (b) of this Section 5, if any, with respect to
certain or all Performance Shares subject to the award), subject to the
limitations thereon described below.  The
number of Performance Shares allocated to a Performance Cycle under any award
of Performance Shares to a Participant shall not exceed 100,000.  Unless otherwise specified by the Committee at
the time of award, the Performance Objective for each Performance Cycle shall
be the ROE during such Performance Cycle.

 

If any change
shall occur in or affect the FSA Stock or Performance Shares on account of any
increase or decrease in the number of outstanding shares of FSA Stock resulting
from payment of a stock dividend on FSA Stock, a subdivision or combination of
shares of FSA Stock, a reclassification of FSA Stock, a recapitalization
involving the Company or in the event of a merger or consolidation in which the
Company shall be the surviving corporation, the Committee shall make such
adjustments, if any, that it deems necessary in the number of shares of FSA
Stock allocated to awards of Performance Shares then outstanding to reflect
such change.  In the event of an Internal
Reorganization (providing for a new holding company for the FSA group of
companies), (i) the Committee shall make such adjustments to then outstanding
Performance Shares (including Performance Shares underlying outstanding
Performance Share Units) as it shall deem appropriate to reflect such Internal
Reorganization so that the holders of outstanding Performance Shares are
compensated based upon the overall performance of the reconstituted FSA group
of companies, including, without limitation, adjusting the number of shares of
FSA Stock allocated to such Performance Shares and adjusting the Performance
Objectives or manner of calculating the Performance Objectives in respect of
such Performance Shares; and (ii) the term “Company” shall be deemed to refer
to such new holding company and the term “FSA Stock” shall be deemed to refer
to the securities of such new holding company for all purposes of the Plan.

 

7

 

To reflect a
change in tax laws or regulations or accounting principles, the Committee shall
make such adjustments in the Performance Objectives set forth in all
outstanding awards of Performance Shares in respect of Performance Cycles not
then completed so as to reflect such change to preserve the value of the
Performance Shares consistent with the intent and the purpose of the Plan,
provided the Company’s independent auditors shall have determined that such
adjustments shall not result in the Company’s loss of deductibility under
Section 162(m) with respect to Participants whose compensation is, in the
reasonable belief of the Committee, subject thereto.  Further, with respect to a Participant, the
deductibility of whose award of Performance Shares will not, in the reasonable
belief of the Committee, be subject to Section 162(m) of the Code, the Committee
may, in its discretion and independent of any determination made by the Company’s
independent auditors, adjust the Performance Objective(s) in respect of
Performance Cycles not then completed so as to reflect a change in tax laws or
regulations or accounting principles to preserve the value of the Performance
Shares consistent with the intent and the purpose of the Plan.

 

Performance Shares
shall be vested at such time or times as determined by the Committee (taking
into account, without limitation, Section 16 of the Act) at the date of award,
provided that acceleration of vesting may be granted by the Committee after the
date of award, but in no event shall the Committee provide a vesting schedule
which would vest fewer Performance Shares in a Participant through the
completion of a particular Performance Cycle than the aggregate number of
Performance Shares allocated to such Performance Cycle and all Performance
Cycles included in such award which have been previously completed.  If the Committee provides, in its discretion,
that any award is vested only in installments, the Committee may waive such
installment vesting provisions at any time.

 

Upon termination
of a Participant’s employment by the Company without Cause and upon Retirement,
unvested Performance Shares shall vest pro-rata in proportion to the percentage
of the Performance Cycle for such Performance Shares during which the
Participant was employed by the Company. 
In addition, all unvested Performance Shares shall vest (i) upon death
or Disability while employed by the Company and (ii) as set forth in paragraph
(d) of this Section 5 in the event of a Change in Control.  Except as provided above, Performance Shares
not vested on the date of termination of employment shall be forfeited.

 

(b)           Distributions and Payments on
Completion of Performance Cycle.  In
furtherance of an election discussed in paragraph (c) of this Section 5,
distributions of shares of FSA Stock and/or payments of cash with respect to
Performance Shares allocated to a particular Performance Cycle covered by an
award shall be made to the Participant within one hundred twenty (120) days
after the completion of such Performance Cycle in accordance with the Committee’s
determination of the achievement of the applicable Performance Objectives,
unless the agreement evidencing the award provides for the deferral of such
distribution or payment, in which event the terms and conditions of the
deferral shall be set forth in the agreement. 
Provided a Participant who has been granted a Performance Shares award
shall have been employed by the Company through the date on which a particular
Performance Cycle shall have been completed, or such Participant’s employment
with the Company shall have been terminated prior thereto by reason of death or
Disability, such Participant shall be entitled to receive with respect to each
such award:

 

(i)            a number of shares of FSA Stock to
be determined in accordance with the following formula:

 

a x b
= c ; or

 

8

 

(ii)           a cash payment in an amount to be
determined in accordance with the following formula:

 

a x b x d
= e; or

 

(iii)          a combination of FSA Stock and cash in
the amounts determined in accordance with the formulae set forth in clauses (i)
and (ii) above, provided, however, that, in such event, in each such formula a shall be multiplied by the percentage that represents the
portion of the Performance Shares allocated to such Performance Cycle to be
paid in FSA Stock or cash, as the case may be;

 

where:

 

a
=                               the
number of Performance Shares granted in such award allocated to the applicable
Performance Cycle;

 

b
=                              a
percentage (which may be more than 100%), which represents the extent to which
the Performance Objectives set forth in such award have been achieved by the
Company in the applicable Performance Cycle; 
Specifically, unless otherwise specified by the Committee at the time of
award, the ROE calculated for each Performance Cycle will determine such
percentage according to the following table:

 

	
  Performance

  	
   

  	
  Percentage of Performance

  	
   

  
	
  Cycle ROE

  	
   

  	
  Objective Achieved

  	
   

  
	
  19% or higher

  	
   

  	
  200

  	
  %

  
	
  16%

  	
   

  	
  150

  	
  %

  
	
  13%

  	
   

  	
  100

  	
  %

  
	
  10%

  	
   

  	
  50

  	
  %

  
	
  7%

  	
   

  	
  0

  	
  %

  

 

All points in
between will be interpolated using the straight line method.

 

c
=                                the
number of shares of FSA Stock to be distributed to a Participant at the end of
the applicable Performance Cycle pursuant to such award;

 

d
=                               the
Fair Market Value of a share of FSA Stock as of the last day of the applicable
Performance Cycle or such other date as the Committee shall specify in such
award; and

 

e
=                                the
amount of the cash to be paid to the Participant at the end of the applicable
Performance Cycle pursuant to such award.

 

The Committee may, in its
sole and absolute discretion, provide that in the event a Participant shall not
have been employed by the Company through the date on which a particular
Performance Cycle covered by such Participant’s award shall have been
completed, such Participant may be entitled to a distribution of FSA Stock
and/or cash in respect of Performance Shares which have vested but with respect
to which a distribution or payment had not previously been made with respect
thereto, by allocating such vested, but unpaid, Performance Shares to the
remaining uncompleted Performance Cycles covered by such

 

9

 

Participant’s award in
such amounts as it determines, but in no event shall such Participant receive
allocations more favorable than the original allocations made in such
Participant’s award.

 

(c)           Election to Receive Stock or Cash.  Subject to any deferral election made
pursuant to the terms and conditions of an agreement evidencing an award
hereunder, at a date determined by the Company and notified to each Participant
prior to the date on which a Performance Cycle shall be completed with respect
to a Participant’s award of Performance Shares, such Participant may make an
election to receive such Participant’s distribution, if any, following
completion of such Performance Cycle, in shares of FSA Stock and/or cash.  Such election shall be made in writing and
shall be delivered to the Company’s Chief Financial Officer or General Counsel,
or such other officer as the Committee shall from time to time designate.  Notwithstanding any such election, the
Committee may in its sole and absolute discretion satisfy the Company’s
obligations to any Participant either by delivery of shares of FSA Stock,
subject to the availability of such FSA Stock under the Plan, or by paying
cash.  If the Participant shall fail to
make a timely election, the Committee shall have the sole discretion to deliver
shares of FSA Stock and/or pay cash to satisfy any such obligation.

 

In the event
Participants elect to receive shares of FSA Stock in satisfaction of the
Company’s obligations under paragraph (b) of this Section 5 with respect to the
completion of a particular Performance Cycle, and the aggregate number of
shares of FSA Stock subject to such elections exceeds the maximum number of
shares of FSA Stock reserved and available for distribution under the Plan, the
Committee shall have the absolute and sole discretion to satisfy such
obligations by reducing the number of shares of FSA Stock subject to such
elections to that number which equals the maximum number of shares of FSA Stock
so reserved and available for distribution under the Plan.  In such event, the Committee shall reduce the
number of shares of FSA Stock pursuant to each Participant’s election pro rata,
based upon the number of shares of FSA Stock otherwise issuable pursuant to
such elections.  The Company shall
satisfy the obligations to such Participants, which remain unsatisfied
following a distribution made pursuant to the foregoing reduction, by paying
cash to such Participants in accordance with the formula, and within the time
period, set forth in paragraph (b) of this Section 5.

 

(d)           Change in Control.  In the event of a Change in Control, all
Participants who then hold awards of Performance Shares will immediately become
fully vested with respect thereto (“Accelerated Shares”); provided that
such accelerated vesting shall not apply if a Plan Continuation shall have
occurred as provided below in this paragraph (d) (“Non-Accelerated Shares”).  In the event of a Change in Control, a
Participant shall be entitled to a cash payment, or payments, pursuant to
paragraph (b) of this Section 5 with respect to all Performance Cycles
completed on or prior to the date of the Change in Control as provided in said
paragraph; in addition, the Committee shall value all Accelerated Shares in
respect of Performance Cycles which shall not have been completed on or before
the date of the Change in Control based upon the formulae set forth in
paragraph (b) of this Section 5 except that b shall be
equal to a percentage (the “Minimum Percentage”) equal to (i) for all
Performance Cycles that do not include at least one completed year at the
Operative Date (as defined below), 100%, and (ii) for all Performance Cycles
that include at least one completed year at the Operative Date, a percentage
(which may be more than 100%), which represents the extent to which the
Performance Objectives set forth in such award have been achieved by the
Company in the applicable Performance Cycle assuming that the Company achieved
100% of its Performance Objectives for each year not completed at the Operative
Date.  For purposes of the foregoing, the
“Operative Date” shall mean the date of the Change in Control.  On the date one year after the Change in
Control (the “One-Year Period”), the Company shall pay a Participant the
cash to which such Participant is entitled with respect to the Performance
Shares whose vesting has been accelerated based on the Change in Control
unless, prior thereto, such Participant’s employment shall have been terminated
by the Company for Cause or such Participant shall have voluntarily terminated
his/her employment without Good Reason (defined below), in either of which

 

10

 

events such Participant
shall forfeit all rights to such Performance Shares whose vesting has been
accelerated based upon the Change in Control and which would not otherwise have
vested and all rights to payment attributable to application of the Minimum
Percentage and any distribution of FSA Stock and/or cash with respect thereto.  In the case of any Performance Cycle
completed during the One-Year Period, payment of any amount due shall be made
in accordance with paragraph (b) of this Section 5, provided that any
incremental payment due pursuant to the foregoing provisions of this paragraph
(d) by reason of application of the Minimum Percentage shall be payable at the
end of the One-Year Period unless forfeited.

 

In the event of a
Change in Control, the Board of Directors may elect by resolution prior to the
Change in Control to continue the Plan (a “Plan Continuation”), in which
event all Non-Accelerated Shares shall vest and be payable as if no Change in
Control had occurred except as otherwise provided in the next two succeeding
sentences.  Following a Plan
Continuation, if a Participant’s employment shall be terminated by the Company
without Cause or such Participant shall voluntarily terminate his or her
employment for Good Reason, in either case prior to the completion of any
Performance Cycle in respect of any Non-Accelerated Shares, then (i) all
Non-Accelerated Shares outstanding at the date of the Change in Control and
having Performance Cycles which shall not have been completed prior to the date
of termination of employment shall be deemed to be Accelerated Shares (“Re-Accelerated
Shares”) for purposes of this paragraph (d) and (ii) payment in respect of
such Re-Accelerated Shares shall be made as provided in this paragraph (d) for
Accelerated Shares (except that the “Operative Date” shall mean the date
of termination of employment) and shall be paid immediately as if the One-Year
Period shall have elapsed.  In the event
of a Plan Continuation, the Committee shall make such adjustments, if any, to
the Performance Objectives and/or the method of calculating the Performance
Objectives as it shall deem necessary or appropriate to preserve the value of
the Non-Accelerated Shares consistent with the intent and the purpose of the
Plan.

 

(e)           Holders of Performance Shares Not
To Be Treated As Stockholders. 
Neither any Participant awarded Performance Shares hereunder, nor any
person entitled to exercise a Participant’s rights thereto in the event of
death, shall have any rights of a stockholder with respect to any share of FSA
Stock subject to such Participant’s award of Performance Shares, except to the
extent that a certificate for such shares shall have been issued as provided
for herein.

 

(f)            Non-Transferability of
Performance Shares.  No Performance
Share shall be transferable by a Participant, or otherwise subject to voluntary
or involuntary sale, pledge, anticipation, alienation, encumbrance, assignment,
garnishment or attachment, other than by will or by the laws of descent and
distribution.

 

(g)           Funding.  Prior to the award of any Performance Shares,
the Committee may establish a funding vehicle to assist the Company with its
obligations under this Section 5.  The
Committee may provide that credits and allocations otherwise provided for by
this Section 5 shall be adjusted to take into account the amount and timing of
purchases and sales of, and dividends with respect to, FSA Stock under such
fund; the manner in which such fund otherwise operates; the amount of FSA Stock
in such fund from time to time; and such other factors as the Committee may
deem relevant; provided that the limitation in Section 3 hereof may not be
adjusted under this sentence.  Any fund
shall be designed not to cause the plan to be considered to be funded for tax
purposes or for purposes of Title I of the Employee Retirement Income Security
Act of 1974, as amended.

 

11

 

Section 6.  Dexia Restricted Stock.

 

(a)           Administration.  Shares of Dexia Restricted Stock may be
issued either alone or in addition to other awards granted under the Plan.  The Committee shall determine the officers
and key employees of the Company to whom, and the time or times at which,
grants of Dexia Restricted Stock will be made, the number of shares to be
awarded, the time or times within which such awards may be subject to
forfeiture, and all other conditions of the awards.  The provisions of Dexia Restricted Stock
awards need not be the same with respect to each recipient.

 

(b)           Awards and Custody Arrangement.  Each award of shares of Dexia Restricted
Stock shall be evidenced by a written agreement, in such form as the Committee
shall from time to time approve, setting forth the terms and conditions
applicable to such award, including terms relating to the vesting, restricted
period and transfer restrictions applicable thereto.  The Participant who is the prospective
recipient of an award of Dexia Restricted Stock shall not have any rights with
respect to such award unless and until such recipient has executed such written
agreement evidencing the award and has delivered a fully executed copy thereof to
the Company, and has otherwise complied with the then applicable terms and
conditions.

 

The shares of
Dexia Restricted Stock granted to a Participant shall be held in custody during
the Restricted Period applicable to such shares in a securities account
maintained by a custodian selected by the Company on behalf of the
Participant.  Upon grant of an award of
shares of Dexia Restricted Stock (and subject to the Participant’s execution
and delivery of the related award agreement), Dexia shall cause the custodian
to be recorded as the record holder of such shares in the records of Dexia’s
transfer agent or in the records of holders of Dexia Stock maintained by the
Depositary Trust Company and the custodian shall credit such shares to a
notional account maintained for such Participant in the books and records of
the custodian.

 

In the event that
Dexia determines that shares of Dexia Restricted Stock will be evidenced by
stock certificates, such stock certificates shall be registered in the name of,
and held in custody by, the custodian designated by the Company until the
Restricted Period with respect thereto shall have expired.  The custodian shall credit such shares to a
notional account maintained for such Participant in the books and records of
the custodian.

 

If and when the
Restricted Period expires with respect to any shares of Dexia Restricted Stock,
Dexia shall cause the Participant to be substituted for the custodian as the
record holder of such shares in the records of Dexia’s transfer agent or in the
records of holders of Dexia Stock maintained by the Depositary Trust Company
and the custodian shall make a corresponding reduction to the number of shares
credited to such Participant’s notional account in the books and records of the
custodian.  Alternatively, any shares of
Dexia Restricted Stock that have been certificated in the name of the custodian
shall be cancelled upon the expiration of the related Restricted Period and
shall be reissued in the name of, and delivered to, the Participant and the shares
evidenced by such stock certificates shall be recorded in the name of such
Participant in Dexia’s share registry.

 

(c)           Restrictions and Conditions.  The shares of Dexia Restricted Stock awarded
pursuant to the Plan shall be subject to the following restrictions and
conditions:

 

(i)            Subject to the provisions of the
Plan and the award agreements, during a period set by the Committee commencing
with the grant date of such award and ending on such date or dates established
by the Committee, which date or dates shall not be less than six months
following the expiration of the Forfeiture Period applicable to any such shares
of Restricted

 

12

 

Dexia Stock (the “Restricted
Period”), the Participant shall not be permitted voluntarily or
involuntarily to sell, transfer, pledge, anticipate, alienate, encumber or
assign shares of Dexia Restricted Stock awarded under the Plan (or have such
shares attached or garnished); provided that the Restricted Period for any shares
of Dexia Restricted Stock that are automatically sold to the Company or Dexia
to satisfy withholding tax requirements in accordance with paragraph (e) of
this Section 6 shall expire at the time of such sale.

 

(ii)           Except as otherwise provided in
paragraph (c) of this Section 6, the recipient shall have, in respect of the
shares of Dexia Restricted Stock, all of the rights of a stockholder of Dexia,
including the right to vote the shares and the right to receive any cash
dividends, provided that any stock dividends paid, or proceeds of stock splits,
shall remain Dexia Restricted Stock subject to the same custody arrangement,
vesting provisions and Restricted Period applicable to the Dexia Restricted
Stock in respect of which such stock dividend was paid or stock split was
made.  The Committee may, in its sole
discretion, at the time of award defer the payment of any cash dividends
otherwise payable until expiration of the Restricted Period.

 

(iii)          The shares of Dexia Restricted Stock
shall be vested at such time or times as determined by the Committee at the
date of award, provided that acceleration of vesting may be granted by the
Committee after the date of award.  The
period from the date of grant of any shares of Dexia Restricted Stock to the
date such shares are scheduled to become vested (without regard to the
acceleration of the vesting of such shares pursuant to paragraph (c)(v), (vi)
or (vii) of this Section 6 or otherwise) shall be referred to as the “Normal
Vesting Period” and the period from the date of grant of any such shares of
Dexia Restricted Stock to the date of vesting of such shares (including the
vesting of any such shares pursuant to paragraph (c)(v), (vi) or (vii) of this
Section 6) shall be referred to as the “Forfeiture Period.”  If the Committee provides, in its discretion
at the time of award, that any award is vested only in installments, the
Committee may waive such installment vesting provisions at any time.

 

(iv)          Upon termination of employment for any
reason during the Normal Vesting Period, (A) all shares of Dexia Restricted
Stock still unvested shall be forfeited by the Participant, subject to the
provisions of the award agreement and paragraphs (c)(v), (vi) and (vii) of this
Section 6, and (B) shares of vested Dexia Restricted Stock shall be delivered
to the Participant upon the conclusion of the applicable Restricted Period in
accordance with this paragraph (c).

 

(v)           Upon termination of a Participant’s
employment by the Company without Cause, unless the Committee shall otherwise determine
at the time of award, a portion of the shares of Dexia Restricted Stock subject
to such award that have not become vested prior to the date of such termination
shall vest as of such date, such portion to equal the ratio of (A) the number
of days in the Normal Vesting Period applicable to such shares that have
elapsed as of the date of termination, over (B) the total number of days in
such Normal Vesting Period.

 

(vi)          Upon becoming eligible for Retirement
at age 55 (a Participant’s “Retirement Eligibility Date”), unless the
Committee shall otherwise determine at the time of award, a portion of the
shares of Dexia Restricted Stock subject to such award that have not become
vested prior to such Participant’s Retirement Eligibility Date shall vest as of
such date, such portion to equal the ratio of (A) the number of days in the
Normal Vesting Period applicable to such shares that have elapsed as of the
Retirement Eligibility Date, over (B) the total number of days in such Normal
Vesting Period.  The shares of Dexia
Restricted Stock subject to such award that are still unvested following the
Participant’s Retirement Eligibility Date shall vest in equal installments

 

13

 

as of the last day
of each of the Company’s fiscal quarters ending during the remaining term of
the applicable Normal Vesting Period, provided that, in the case of each such
installment, the Participant remains employed by the Company until the
applicable vesting date.

 

(vii)         All unvested Dexia Restricted Stock
granted to a Participant shall vest (A) upon the death or Disability of such
Participant while employed by the Company or (B) to the same extent that
Performance Shares vest, in the event of a Change in Control while such
Participant is employed by the Company.

 

(d)           Election to Receive Stock or Cash.  At a date determined by the Company and
notified to each Participant prior to the date on which the Restricted Period
shall be completed with respect to vested shares of Dexia Restricted Stock
granted to a Participant, such Participant may make an election to receive
payment in respect of such shares, if any, following completion of such
Restricted Period, in shares of Dexia Stock (not subject to restrictions), cash
or a combination of shares and cash. 
Such election shall be made in writing and shall be delivered to the
Company’s Chief Financial Officer or General Counsel, or such other officer as
the Committee shall from time to time designate.  Notwithstanding any cash election, the
Committee may in its sole and absolute discretion satisfy the Company’s
obligations to any Participant with respect to vested shares of Dexia
Restricted Stock by delivery of shares of Dexia Stock.  If the Participant shall fail to make a
timely election with respect to any vested shares of Dexia Restricted Stock,
the Committee shall have the sole discretion to deliver shares of Dexia Stock
and/or pay cash to satisfy any such obligation with respect to such vested
shares of Dexia Restricted Stock.

 

With respect to the
cash settlement of any Dexia Restricted Stock awards pursuant to this
paragraph  (d), the amount of such cash
payment shall be determined by valuing each share of Dexia Restricted Stock at
the Fair Market Value of a share of Dexia Stock as of the last day of the
Restricted Period (or if such day is not a trading day for Dexia Stock, then
the first succeeding trading day for Dexia Stock).  Distribution of shares of Dexia Stock and/or
payments of cash with respect to Dexia Restricted Stock shall be made to the
Participant promptly after expiration of the applicable Restricted Period.

 

(e)           Tax Withholding.  In accordance with Section 10(d), each
Participant shall automatically sell to the Company a number of whole and/or
fractional shares of Dexia Stock in order to satisfy the minimum withholding
requirement for all applicable national, state and local income, excise and
employment taxes that may become due and payable in respect of any award of
Dexia Stock, the expiration of the Forfeiture Period in respect thereof or
otherwise in connection therewith; provided that the Participant may elect to
satisfy any such withholding requirement by the delivery of cash.  Such election must be made in writing and
delivered to the Company’s Chief Financial Officer or General Counsel or such
other officer as the Committee shall from time to time designate no later than
thirty (30) days prior to the date of any such withholding requirement.  Any shares of Dexia Stock sold to the Company
pursuant to this paragraph  (e) shall be
valued at their Fair Market Value on the date of the applicable withholding
requirement or the date of the applicable withholding, as determined by the
Company (or if such day is not a trading day for Dexia Stock, then the first
succeeding trading day for Dexia Stock).

 

(f)            Dexia Stock Ceases to be Outstanding.  If, as a result of any merger, reorganization
or other business combination or any other event or occurrence (a “Realization
Event”), Dexia Stock is converted or exchanged for cash, shares or other
consideration (the “Realization Consideration”), each share of Dexia
Restricted Stock outstanding immediately prior to such Realization Event shall
be converted into the Realization Consideration at the same time and on the
same terms as applicable to Dexia Stock in general and shall be subject to the
terms and conditions of Section 6(c) applicable to the

 

14

 

Dexia Restricted Stock
for which the Realization Consideration was paid, including the timing of payment,
transfer and forfeiture provisions applicable with respect to the remaining
term of the applicable Restricted Period and the Forfeiture Period, unless, in
any such case, waived by the Committee in its sole discretion; provided that (i)
to the extent that the Realization Consideration consists of shares, the
provisions hereof applicable to Dexia Restricted Stock shall apply to such
shares as if such shares were Dexia Restricted Stock; and (ii) to the extent
that the Realization Consideration consists of cash (the “Restricted Cash
Amount”), the Restricted Cash Amount shall be (A) converted into U.S.
dollars using the noon buying rate published by the Federal Reserve Bank of New
York for the date of receipt of such cash (or if such rate is no longer published,
such other rate as the Committee shall approve) and (B) credited with a rate of
return equal to the Company’s ROE from the date of conversion into cash until
the conclusion of the Restricted Period. 
The Company’s obligation to pay the Restricted Cash Amount, along with
any deemed earnings or losses thereon, shall be an unfunded contractual
obligation that will be satisfied out of the Company’s general assets.  Participants shall have only the rights of a
general unsecured creditor of the Company with respect to such amounts.  For purposes of the foregoing, ROE means, in
respect of any period, the average of:

 

(i)            the discount rate (expressed as an
annual percentage rate) such that (a) the Adjusted Book Value per share of FSA
Stock on the last day of the last calendar quarter in such period, adjusted to
exclude the after-tax change in accumulated other comprehensive income
(unrealized gains and losses in the Company’s investment portfolio and any
other component of other comprehensive income) during such period, and the
dividends paid per share during such period, each discounted at such discount
rate to the first day of the first calendar quarter in such period, equals (b)
the Adjusted Book Value per share of FSA Stock on the first day of the first calendar
quarter in such period; and

 

(ii)           the discount rate (expressed as an
annual percentage rate) such that (a) the Book Value per share of FSA Stock on
the last day of the last calendar quarter in such period, adjusted to exclude
the after-tax change in accumulated other comprehensive income (unrealized
gains and losses in the Company’s investment portfolio and any other component
of other comprehensive income) during such period, and the dividends paid per
share during such period, each discounted at such discount rate to the first
day of the first calendar quarter in such period, equals (b) the Book Value per
share of FSA Stock on the first day of the first calendar quarter in such
period.

 

Section 7.  Performance Share Units.

 

(a)           Administration.  Performance Share Units may be issued either
alone or in addition to other awards granted under the Plan.  The Committee shall determine the officers
and key employees of the Company to whom, and the time or times at which,
grants of Performance Share Units will be made, the number of Performance
Shares and shares of Dexia Restricted Stock to be represented by each
Performance Share Unit, and all other conditions of the awards.  The provisions of awards of Performance Share
Units need not be the same with respect to each recipient.

 

(b)           Awards.  The prospective recipient of an award of
Performance Share Units shall not have any rights with respect to such award,
unless and until such recipient has executed an agreement evidencing the
Performance Share award and Dexia Restricted Stock award comprising such
Performance Share Units, and has delivered fully executed copies thereof to the
Company, and has otherwise complied with the then applicable terms and
conditions.  Unless otherwise specified
by the Committee at the time of award, each award of Performance Share Units
shall be comprised of (i) a

 

15

 

number of
Performance Shares equal to 90% of the number of Performance Share Units and
(ii) a number of shares of Dexia Restricted Stock equal to (A) the product of (x)
10% of the number of Performance Share Units times (y) the Fair Market Value of
one share of FSA Stock determined as of December 31 of the year immediately
preceding the year in which the award is made divided by (B) the Fair Market
Value of one share of Dexia Stock determined as of the day preceding the date
of the award.

 

Section 8.  Transfer, Leave of Absence, etc.

 

For purposes of
the Plan, the following events shall not be deemed a termination of employment:

 

a.             a transfer of an employee from the
Company to a Subsidiary, or from a Subsidiary to the Company, or from one
Subsidiary to another; or

 

b.             a leave of absence, approved in
writing by the Committee, for military service or sickness, or for any other
purpose approved by the Company if the period of such leave does not exceed
ninety (90) days (or such longer period as the Committee may approve, in its
sole discretion).

 

Section 9.  Amendments and Termination.

 

The Board may
amend, alter, or discontinue the Plan (or any portion thereof), but no
amendment, alteration or discontinuation shall be made which would impair the
rights of any recipient with respect to any award of Performance Shares, Dexia
Restricted Stock or Performance Share Units theretofore granted, without the
recipient’s consent; provided that the Board may not make any amendment to the
Plan that would, if such amendment were not approved by the holders of FSA
Stock, cause the Plan to fail to comply with (a) Section 16 of the Act (or Rule
16b-3 under the Act), or (b) any other requirement of applicable law or
regulation, unless and until the approval of the holders of FSA Stock is
obtained.

 

The Committee may
amend the terms of any award or option theretofore granted, prospectively or
retroactively, but no such amendment shall impair the rights of any holder
without his or her consent.

 

Section 10.  General Provisions.

 

a.             All certificates for shares of FSA
Stock delivered under the Plan pursuant to any award of Performance Shares or
Performance Share Units, and all certificates for shares of Dexia Stock
delivered under the Plan pursuant to any award of Dexia Restricted Stock or
Performance Share Units, shall be subject to such stock-transfer orders and
other restrictions as the Committee may deem advisable under the rules,
regulations and other requirements of the Securities and Exchange Commission,
any stock exchange upon which the FSA Stock or Dexia Stock, as the case may be,
is then listed, and any applicable Federal, state or foreign securities law,
and the Committee may cause a legend or legends to be put on any such
certificates to make appropriate reference to such restrictions.  The foregoing provisions of this paragraph
applicable to FSA Stock and Dexia Stock shall not be effective if and to the
extent that the shares of FSA Stock or Dexia Stock delivered under the Plan are
covered by an effective and current registration statement under the Securities
Act of 1933, as amended, such that application of such provisions is no longer
required, or if and so long as the Committee otherwise determines that such
application is no longer required.

 

b.             Subject to paragraph (d) below,
recipients of Dexia Restricted Stock or FSA Stock in respect of Performance
Shares under the Plan are not required to make any payment or provide
consideration other than the rendering of past services and/or the commitment
to render and rendering of future services.

 

16

 

c.             Nothing contained in the Plan shall
prevent the Board of Directors from adopting other or additional compensation
arrangements, subject to stockholder approval if such approval is required; and
such arrangements may be either generally applicable or applicable only in
specific cases.  The adoption of the Plan
shall not confer upon any employee of the Company or any Subsidiary any right
to continued employment with the Company, nor shall it interfere in any way
with the right of the Company to terminate the employment of any of its
employees at any time.

 

d.             Each Participant shall, no later
than the date as of which the value of an award first becomes includible in the
gross income of the Participant for national, state or local income tax
purposes, pay to the Company or make arrangements satisfactory to the Committee
regarding payment of any national, state or local taxes of any kind required by
law to be withheld with respect to the award; provided, however, that such tax
withholding requirement may be met by the withholding or sale to the Company of
shares of FSA Stock or Dexia Stock otherwise deliverable to or vested in the
Participant, pursuant to procedures approved by the Committee.  The obligations of the Company under the Plan
shall be conditional on such payment or arrangements and the Company shall, to
the extent permitted by law, have the right to deduct any such taxes from any
payment of any kind otherwise due to the Participant.

 

e.             At the time of grant, the Committee
may provide in connection with any grant made under the Plan that the shares of
FSA Stock or Dexia Stock received as a result of such grant shall be subject to
a right of first refusal, pursuant to which the Participant shall be required
to offer to the Company any shares that the Participant wishes to sell, with
the price being the then Fair Market Value of the FSA Stock or Dexia Stock, as
the case may be, subject to such other terms and conditions as the Committee
may specify at the time of grant.

 

f.              Notwithstanding any other
provision of the Plan, if the Committee determines that an individual entitled
to take action or receive payments hereunder is an infant or incompetent by
reason of physical or mental disability, it may permit such action to be made
by or cause such payments to be made to a legal guardian, custodian or comparable
party, without any further responsibility with respect thereto under the Plan.

 

g.             THIS PLAN SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF NEW YORK, WITHOUT REFERENCE TO
PRINCIPLES OF CONFLICT OF LAWS.

 

Section 11.  Effective Date of Plan.

 

The Plan shall be
effective on the date it is approved by a vote of the holders of a majority of
the total outstanding Stock.  The Plan
shall not become effective unless it is so approved.

 

Section 12. 
Term of Plan.

 

No award of
Performance Shares, Dexia Restricted Stock or Performance Share Units shall be
granted pursuant to the Plan on or after the tenth anniversary of the date of
the most recent stockholder approval of the Plan, but awards theretofore
granted may extend beyond that date.

 

17EXHIBIT 4.1

SHAREHOLDERS AGREEMENT

SHAREHOLDERS AGREEMENT dated
September 14, 2005 among (i) Certegy Inc., a Georgia corporation to
be renamed Fidelity National Information Services, Inc. (the “Company”), (ii) Fidelity
National Financial, Inc., a Delaware corporation (“F Co Parent”), (iii) THL FNIS Holdings, LLC, Thomas H.
Lee Cayman Fund V, L.P., Thomas H. Lee Investors Limited Partnership, Putnam
Investment Holdings, LLC, Putnam Investments Employees’ Securities Company I
LLC, and Putnam Investments Employees’ Securities Company II, LLC
(collectively, “THL”), (iv) TPG
FNIS Holdings, LLC, TPG Parallel III, L.P., TPG Investors III, L.P., FOF
Partners III, L.P., FOF Partners III-B, L.P., and TPG Dutch Parallel III, C.V.
(collectively, “TPG”), and (v) Evercore
METC Capital Partners II, LLC (“Evercore”,
and together with F Co Parent, THL, TPG and Evercore, the “Shareholders”).

WHEREAS, the
Company, C Co Merger Sub, LLC, a Delaware limited liability company and a
direct wholly owned subsidiary of the Company (“Merger Co”),
and Fidelity National Information Services, Inc., a Delaware corporation (“F Co”), have entered into an Agreement and Plan of Merger
dated as of September 14, 2005 (as the same may be amended or
supplemented, the “Merger Agreement”),
pursuant to and subject to the terms and conditions of which, among other
things, F Co will merge with and into Merger Co, with Merger Co surviving as a
wholly owned subsidiary of the Company (the “Merger”);

WHEREAS, upon
consummation of the Merger, the Shareholders will Beneficially Own (as
hereafter defined), in the aggregate, approximately 67% of the Fully Diluted
Voting Securities (as hereafter defined); and

WHEREAS, the
parties hereto desire to enter into this Agreement to establish certain
arrangements with respect to the shares of Common Stock to be Beneficially
Owned by the Shareholders and their respective Affiliates following the
Effective Time (as defined in the Merger Agreement), as well as restrictions on
certain activities in respect of the Common Stock, corporate governance and
other related corporate matters;

NOW,
THEREFORE, in consideration of the foregoing and the mutual
covenants and agreements herein contained, and intending to be legally bound
hereby, the Company and the Shareholders hereby agree, subject to the
conditions herein contained, as follows:

ARTICLE 1

INTERPRETATION

1.1          Certain Defined Terms.   As used in this
Agreement, the following terms have the following meanings:

“Affiliate”
means, with respect to a specified Person, any other Person that directly, or
indirectly through one or more intermediaries, controls, is controlled by or is
under common control with, such specified Person, provided
that, solely for purposes of this Agreement and notwithstanding anything to the
contrary set forth herein, (i) neither the Company nor any of its
Subsidiaries shall be deemed to be a Subsidiary or Affiliate of any Shareholder
solely by virtue of such Shareholder’s ownership of Common Stock, the election
of Directors nominated by such Shareholder to the Board, the election of any
other Directors nominated by the Nominating Committee of the Board or any other
action taken by such Shareholder or its Affiliates which is permitted under
this Agreement which may be
deemed to constitute control of the Company, in each case in accordance with
the terms and conditions of, and subject to the limitations and restrictions
set forth in, this Agreement (and irrespective of the characteristics of the
aforesaid relationships and actions under applicable law or accounting
principles) and (ii) no limited partner of THL, TPG, or Evercore, or any
affiliated investment fund of such Shareholder, not actively involved in the
management thereof, or any Person the Capital Stock of which is owned by any
such Shareholder or an affiliated investment fund but who is not controlled by
such Shareholder or affiliated investment fund, shall be deemed to be an “Affiliate”
of such Shareholder. For the purposes of this 

definition, “control” (including, with correlative meaning, all
conjugations thereof) means with respect to any Person, the ability of another
Person to control or direct the actions or policies of such first Person,
whether through the ownership of voting securities, by contract or otherwise.

“Agreement” means this Shareholders Agreement as it
may be amended, supplemented, restated or modified from time to time.

“Beneficial Ownership” by a Person of any securities includes
ownership by any Person who, directly or indirectly, through any contract,
arrangement, understanding, relationship or otherwise, has or shares (i) voting
power which includes the power to vote, or to direct the voting of, such
security; and/or (ii) investment power which includes the power to
dispose, or to direct the disposition, of such security; and shall otherwise be
interpreted in accordance with the term “beneficial ownership” as defined in Rule 13d-3
adopted by the SEC under the Exchange Act; provided that for purposes of determining
Beneficial Ownership, a Person shall be deemed to be the Beneficial Owner of
any securities which may be acquired by such Person pursuant to any agreement,
arrangement or understanding or upon the exercise of conversion rights,
exchange rights, warrants or options, or otherwise (irrespective of whether the
right to acquire such securities is exercisable immediately or only after the
passage of time, including the passage of time in excess of 60 days, the
satisfaction of any conditions, the occurrence of any event or
any combination of the foregoing). For purposes of this Agreement, a Person
shall be deemed to Beneficially Own any securities Beneficially Owned by its
Affiliates or any Group of which such Person or any such Affiliate is or
becomes a member; provided, however, that shares of Common Stock subject to
options granted under Company benefit plans or shares of Common Stock
(including derivative interests therein) otherwise issued under Company benefit
plans to any Person who, at the time of the grant or issuance, was an officer
or director of the Company or any of its Subsidiaries shall not solely for that
reason be deemed to be Beneficially Owned by F Co Parent or any of its
Affiliates. The term “Beneficially Own”
shall have a correlative meaning.

“Board”
shall mean the Board of Directors of the Company.

“Business Day” shall mean any day that is not a
Saturday, a Sunday or other day on which banks are required or authorized by
law to be closed in the State of Florida.

“Bylaws” means
the bylaws of the Company, as amended or supplemented from time to time.

“Capital Stock”
means, with respect to any Person at any time, any and all shares, interests,
participations or other equivalents (however designated, whether voting or
non-voting) of capital stock, partnership interests (whether general or
limited), membership interests, or equivalent ownership interests in or issued
by such Person.

“Charter” means the Amended and Restated Articles
of Incorporation of the Company, the form of which is set forth in Exhibit A
to the Merger Agreement, as amended or supplemented from time to time.

“Class 1 Director”
means a Director holding office for a term expiring at the 2006 annual meeting
of the Company’s Shareholders.

“Class 2 Director”
means a Director holding office for a term expiring at the 2007 annual meeting
of the Company’s Shareholders.

“Class 3 Director”
means a Director holding office for a term expiring at the 2008 annual meeting
of the Company’s Shareholders.

“Common Stock” means the Company’s common stock, par
value $0.01 per share, and any other class of common stock of the Company that
may be created from time to time, and any securities issued in 

 2
 

respect thereof, or in
substitution therefor, in connection with any stock split, dividend or combination, or any reclassification,
recapitalization, merger, consolidation, exchange or other similar
reorganization.

“Director” means
any member of the Board (other than any advisory, honorary or other non-voting
member of the Board).

“Exchange Act”
shall mean the U.S. Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated by the SEC from time to time thereunder (or under any
successor statute).

“Fully
Diluted” means the number of Voting Securities, after giving effect
to the issuance of Voting Securities issuable under all outstanding options,
warrants or other rights or securities convertible or exchangeable into Voting
Securities.

“Going Private Transaction”
means any transaction that would constitute a “Rule 13e-3 transaction”
under paragraph (a)(3) of Rule 13e-3 promulgated under the Exchange
Act as in effect on the date of this Agreement, without giving effect to the
exception set forth in paragraph (g)(2) thereof.

“Group” shall
have the meaning assigned to it in Section 13(d)(3) of the Exchange
Act.

“Independent Director”
shall mean any Director who is or would be an “independent director” with
respect to the Company and with respect to F Co Parent pursuant to Section 303A.02
of the New York Stock Exchange Listed Company Manual and Section 10A of
the Exchange Act (or any successor provisions).

“Intercompany
Agreements” shall mean those agreements listed on Schedule 1 hereto, as amended in accordance with the
terms of the Merger Agreement prior to the Effective Time and thereafter, from
time to time in accordance with the terms hereof.

“Ownership Percentage”
means, at any time, with respect to any Person, the quotient, expressed as a
percentage, of (i) the Total Voting Power of all Voting Securities then
Beneficially Owned by such Person and its Affiliates divided by (ii) the
Total Voting Power of all Voting Securities then outstanding.

“Person” means a
natural person, limited or general partnership, corporation, limited liability
company, joint-stock company, trust, unincorporated association, joint venture,
or other entity, government or any agency or political subdivision thereof or
any Group comprised of two or more of the foregoing, and pronouns have a similarly
extended meaning.

“Public Offering”
means an offering and sale to the public of any Common Stock pursuant to an
effective Registration Statement.

“Registration Rights
Agreement” means that certain Registration Rights Agreement in the
form attached as Exhibit E to the Merger and to be entered into by the
Company and each of the Shareholders as of the Effective Time.

“Registration Statement”
means any registration statement of the Company filed with the SEC pursuant to
the Securities Act, under which any of the Registrable Shares (as such term is
defined in the Registration Right Agreement) are included therein pursuant to
the provisions of the Registration Rights Agreement.

“Requisite
Independent Directors” shall mean, at any time of determination, a
majority of the Independent Directors.

“Sale
of the Company” means the consummation of a transaction, whether in
a single transaction or in a series of related transactions that are
consummated contemporaneously (or consummated pursuant to contemporaneous agreements),
with any other Person or Group on an arm’s-length basis other than a
Shareholder or any Affiliate of a Shareholder, pursuant to which such party or
parties (a) acquire (whether 

 3
 

by merger, stock purchase,
recapitalization, reorganization, redemption, issuance of capital stock or
otherwise) more than 50% of the Voting Securities, or (b) acquire assets
constituting all or substantially all of the assets of the Company and its
Subsidiaries on a consolidated basis; provided, however, that in no event shall a Sale of the Company be
deemed to include any transaction effected for the sole purpose of (i) changing,
directly or indirectly, the form of organization or the organizational
structure of the Company or any of its Subsidiaries without affecting the
Beneficial Ownership or control of the Company, or (ii) contributing stock
to entities controlled by the Company.

“SEC” means the
United States Securities and Exchange Commission.

“Securities Act” means the U.S. Securities Act of 1933, as
amended, and the rules and regulations promulgated by the SEC from time to
time thereunder (or under any successor
statute).

“Subsidiary”
means, with respect to any Person,
any corporation or other organization, whether incorporated or unincorporated, (i) of
which such Person or any other Subsidiary of such Person is a general partner
(excluding partnerships, the general partnership interests of which are held by
such Person or any Subsidiary of such Person that do not have a majority of the
voting interests in such partnership), or (ii) at least a majority of the
securities or other interests of which having by their terms ordinary voting
power to elect a majority of the board of directors or others performing
similar functions with respect to such corporation or other organization is
directly or indirectly owned or controlled by such Person or by any one or more
of its Subsidiaries, or by such Person and one or more of its Subsidiaries.

“Total Voting Power” means the total number of votes entitled
to be cast by the holders of the outstanding Common Stock and any other securities entitled, in the
ordinary course, to vote on matters put before the holders of the Common Stock
generally.

“Transfer”
means, directly or indirectly, to sell, transfer, assign, pledge, encumber,
hypothecate or similarly dispose of (by operation of law or otherwise), either
voluntarily or involuntarily, or to enter into any contract, option or other
arrangement with respect to the sale, transfer, assignment, pledge,
encumbrance, hypothecation or similar disposition of (by operation of law or
otherwise), any Voting Securities or any interest in any Voting Securities; provided, however, that a
merger, consolidation or similar business combination transaction in which F Co
Parent is a constituent corporation (or otherwise a party including, for the
avoidance of doubt, a transaction pursuant to which a Person acquires all or a
portion of F Co Parent’s outstanding Capital Stock, whether by tender or
exchange offer, by share exchange, or otherwise) shall not be deemed to be the
Transfer of any Voting Securities Beneficially Owned by F Co Parent or any of
its Subsidiaries, provided that the primary purpose of any such transaction is
not to avoid the provisions of this Agreement and that the successor or surviving
person to such a merger, consolidation or similar business combination
transaction, if not F Co Parent, expressly assumes all obligations of F Co
Parent under this Agreement. For purposes of this Agreement, the term Transfer
shall include the sale of an Affiliate of F Co Parent or F Co Parent’s interest
in an Affiliate that Beneficially Owns Voting Securities unless such Transfer
is in connection with a merger, plan of consolidation or similar business
combination transaction referred to in the first proviso of the previous
sentence.

“Unaffiliated Shareholder
Approval” means (i) in the case of a tender or exchange offer,
that a majority of the outstanding shares of Common Stock not Beneficially
Owned by any Shareholder or its Affiliates shall have been tendered and not
duly withdrawn at the expiration time of such tender or exchange offer, as it
may have been theretofore extended, and (ii) in the case of a merger or
consolidation, that the holders of a majority of the outstanding shares of
Common Stock not Beneficially Owned by any Shareholder or its Affiliates shall
have been duly voted in favor of the applicable transaction at a meeting of
shareholders duly called and held.

 4
 

“Voting Securities” means at any time shares of any class of
Capital Stock or other securities of the Company which are then entitled to
vote generally in the election of Directors and not solely upon the occurrence
and during the continuation of certain specified events, and any securities
convertible into or exercisable or exchangeable for such shares of Capital
Stock.

1.2          Other Defined Terms.   The
following terms shall have the meanings defined for such terms in the sections
set forth below:

	
  Defined Term

  	
   

  	
   

  	
   

  	
  Section

  
	
  Acquisition

  	
   

  	
  5.1(b)(ii)

  
	
  Competitive Business

  	
   

  	
  5.1(a)

  
	
  Divestible Competitive
  Activity

  	
   

  	
  5.1(b)(iii)

  
	
  GBCC

  	
   

  	
  1.4

  
	
  Minor Competitive
  Activity

  	
   

  	
  5.1(b)(iii)

  
	
  Permitted Competitive
  Business Activity

  	
   

  	
  5.1(b)(i)

  
	
  Other Shareholder

  	
   

  	
  4.2(b)(iii)

  
	
  Separation Date

  	
   

  	
  5.1(a)

  
	
  Term

  	
   

  	
  5.1(a)

  

 

1.3          Interpretation.

(a)          Any
reference in this Agreement to gender shall include all genders.

(b)          The
words “hereof,” “herein” and “hereunder” and words of similar import when used
in this Agreement shall refer to this Agreement as a whole and not to any
particular provision of this Agreement, and Article and Section references
are to this Agreement unless otherwise specified.

(c)          The
meanings given to terms defined herein shall be equally applicable to both the
singular and plural forms of such terms.

(d)          Capitalized
terms used but not otherwise defined herein shall have the meanings ascribed
thereto in the Merger Agreement.

(e)          The
table of contents and headings contained in this Agreement are for reference
purposes only and shall not affect in any way the meaning or interpretation of
this Agreement.

(f)           Whenever
the words “include”, “includes” or “including” are used in this Agreement, they
shall be deemed to be followed by the words “without limitation”.

1.4          Methodology for Calculations.   For purposes of calculating the number of
outstanding shares of Common Stock or Voting Securities and the number of
shares of Common Stock or Voting Securities Beneficially Owned by the
Shareholders and their respective Affiliates as of any date, any shares of
Common Stock or Voting Securities held in the Company’s treasury or belonging
to any Subsidiaries of the Company which are not entitled to be voted or
counted for purposes of determining the presence of a quorum pursuant to Section 14-2-721
of the Georgia Business Corporation Code or any successor statute (the “GBCC”) shall be
disregarded.

 5
 

ARTICLE 2

REPRESENTATIONS AND WARRANTIES

2.1          Representations and Warranties of
the Company.   The Company hereby represents and
warrants to the Shareholders:

(a)          it
is a corporation duly organized, validly existing and in good standing under
the laws of the State of Georgia, it has full power and authority to execute,
deliver and perform this Agreement and to consummate the transactions
contemplated hereby, and the execution, delivery and performance by it of this
Agreement and the consummation of the transactions contemplated hereby have
been duly authorized by all necessary corporate action;

(b)          this
Agreement has been duly and validly executed and delivered by it and
constitutes a legal and binding obligation of the Company, enforceable against
it in accordance with its terms; and

(c)          the
execution, delivery and performance by the Company of this Agreement and the
consummation by the Company of the transactions contemplated hereby will not,
with or without the giving of notice or lapse of time, or both, (i) violate
any provision of law, statute, rule or regulation to which the Company is
subject, (ii) violate any order, judgment or decree applicable to the
Company, or (iii) conflict with, or result in a breach or default under,
any term or condition of the Company’s organizational documents or any
agreement or instrument to which the Company is a party or by which it is
bound.

2.2          Representations and Warranties of
the Shareholders.   Each Shareholder (as to itself
only) represents and warrants to the Company:

(a)          such
Shareholder is a corporation duly organized, validly existing and in good
standing under the laws of the State of its state of incorporation, or it is a
limited partnership or a limited liability company duly formed, validly
existing, and in good standing under the laws of the State of its state of
formation, as the case may be, such Shareholder has full power and authority to
execute, deliver and perform this Agreement and to consummate the transactions
contemplated hereby, and the execution, delivery and performance by such
Shareholder of this Agreement and the consummation of the transactions
contemplated hereby have been duly authorized by all necessary corporate,
partnership or limited liability company action of such Shareholder.

(b)          this
Agreement has been duly and validly executed and delivered by such Shareholder,
and this Agreement constitutes a legal and binding obligation of such
Shareholder, enforceable against such Shareholder in accordance with its terms;
and

(c)          the execution, delivery and performance by such Shareholder
of this Agreement and the consummation by such Shareholder of the transactions
contemplated hereby will not, with or without the giving of notice or lapse of
time, or both, (i) violate any provision of law, statute, rule or
regulation to which such Shareholder is subject, (ii) violate any order,
judgment or decree applicable to such Shareholder, or (iii) conflict with,
or result in a breach or default under, any term or condition of any agreement
or other instrument to which such Shareholder is a party or by which such
Shareholder is bound.

ARTICLE 3

COVENANTS REGARDING OWNERSHIP

3.1          Standstill.

(a)          Each
Shareholder covenants and agrees with the Company that, except as provided in
paragraph (b) below or Section 3.2
hereof, it shall not, and shall not permit any of its 

 6
 

Affiliates to, directly or
indirectly, alone or in concert with others, acquire, offer or propose to
acquire or agree to acquire, whether by purchase, tender or exchange offer,
through the acquisition of control of another Person (whether by way of merger,
consolidation or otherwise), by joining a general or limited partnership,
syndicate or other Group or otherwise, the Beneficial Ownership of any additional
Voting Securities, or take any other action as a shareholder or otherwise, if
such acquisition or action (including the repurchase or issuance of Capital
Stock by the Company) would result in the Shareholders, in the aggregate,
Beneficially Owning Voting Securities representing more than 75% of the Fully
Diluted Voting Securities (the “Ownership Cap”).

(b)          (i)             If at any time the Shareholders and
their respective Affiliates Beneficially Own in the aggregate Voting Securities
representing more than the Ownership Cap, then the Shareholders whose purchase
of Voting Securities causes the Ownership Cap to be exceeded shall, as soon as
is reasonably practicable, but in no event longer than 90 days after the
Ownership Percentage of the Shareholders and their respective Affiliates first
exceeds the Ownership Cap (but in no manner that would require any Shareholder
or any such Affiliate thereof to incur liability under Section 16(b) of
the Exchange Act) Transfer (in any manner permitted by Section 4.2(a) and
in compliance with Section 4.1(b),
regardless of whether such Transfer occurs prior to or after the first
anniversary of the Closing) a number of Voting Securities sufficient to reduce
the amount of Voting Securities Beneficially Owned in the aggregate by the Shareholders
and their Affiliates to an amount representing not greater than the Ownership
Cap.

(ii)          Notwithstanding
any other provision of this Agreement, in no event may any Shareholder or any
of its Affiliates, directly or indirectly including through any agreement or
arrangement, exercise any voting rights, during the term of this Agreement, in
respect of any Voting Securities Beneficially Owned by the Shareholders and
their respective Affiliates representing in excess of the Ownership Cap.

(c)          Any
additional Voting Securities acquired and Beneficially Owned by the
Shareholders or any of their respective Affiliates following the Closing shall
be subject to the restrictions contained in this Agreement as fully as if such
Voting Securities were acquired by such Shareholder at the Closing pursuant to
the Merger Agreement.

(d)          For
purposes of this Agreement, all determinations of the amount of outstanding
Voting Securities shall be based on information set forth in the most recent
quarterly or annual report, and any current report subsequent thereto, filed by
the Company with the SEC, unless the Company shall have updated such
information by delivery of written notice to the Shareholders.

3.2          Going Private Transactions.

(a)          F Co
Parent shall, and shall cause its Affiliates to, refrain from proposing,
initiating or participating in any Going Private Transaction unless such Going
Private Transaction (i) involves the acquisition of or offer to acquire
100% of the Common Stock not owned by the Shareholders and their respective
Affiliates (and, in the case of a Going Private Transaction to be effected by
means of a tender or exchange offer, includes a commitment by the Shareholders
or any such Affiliate to promptly consummate a short-form merger to acquire any
remaining shares of Common Stock at the same price in the event it obtains
pursuant to such tender or exchange offer such level of ownership of such
classes of Capital Stock that would be required to effect a merger pursuant to Section 14-2-1104
of the GBCC or any successor provision) and (ii) is conducted in
compliance with this Section 3.2.

(b)          Prior
to the first anniversary of the Closing, F Co Parent shall, and shall cause its
Affiliates to, refrain from proposing or initiating any Going Private
Transaction unless invited to 

 7
 

do so by the Requisite
Independent Directors. Any Going Private Transaction effected during this
period shall also be subject to the requirements of Section 3.2(c).

(c)          From and after the first anniversary of the Closing, F Co
Parent or any of its Affiliates may propose, initiate or effect a Going Private
Transaction, provided that such Going Private
Transaction is subject to and conditioned upon the receipt of Unaffiliated
Shareholder Approval.

ARTICLE 4

TRANSFER RESTRICTIONS

4.1          General Transfer Restrictions.

(a)          The
right of each Shareholder and its Affiliates to Transfer any Voting Securities
is subject to the restrictions set forth in this Article 4,
and no Transfer of Voting Securities by a Shareholder or any of its Affiliates
may be effected except in compliance with this Article 4.
Any attempted Transfer in violation of this Agreement shall be of no effect and
null and void, regardless of whether the purported transferee has any actual or
constructive knowledge of the Transfer restrictions set forth in this
Agreement, and shall not be recorded on the share transfer books of the
Company.

(b)          Each
of the Shareholders, severally and not jointly, acknowledge and agree:

(i)           such
Shareholder will not offer, sell, or otherwise dispose of any shares of Common
Stock except in compliance with the Securities Act;

(ii)          such
Shareholder will not sell, transfer or otherwise dispose of any shares of
Common Stock unless (A) such sale, transfer or other disposition is within
the limitations of and in compliance with Rule 144 promulgated by the SEC
under the Securities Act and the Shareholder furnishes the Company with
reasonable proof of compliance with such Rule, (B) in the opinion of
counsel, reasonably satisfactory to the Company and its counsel, some other
exemption from registration under the Securities Act is available with respect
to any such proposed sale, transfer, or other disposition of Common Stock or (C) the
offer and sale of Common Stock is registered under the Securities Act.

4.2          Restrictions on Transfer.

(a)          During
an initial period of (i) one year following
the Closing with respect to F Co Parent and (ii) 180 days following the
Closing with respect to all Shareholders other than F Co Parent (each, an “Other
Shareholder”), such Shareholder shall not Transfer or agree to Transfer, or
permit any of its Affiliates to Transfer or agree to Transfer, directly or
indirectly, any Voting Securities; provided, however, that the foregoing restrictions shall not be
applicable to Transfers:

(A)         by a
Shareholder or any of its Affiliates to the Company pursuant to Section 3.1(b);

(B)         to an
Affiliate of a Shareholder which agrees in writing with the Company to be bound
by this Agreement as if it were an initial signatory hereto;

(C)         by
any Other Shareholder from and after the 90th day following the
Closing through the 180th day following the Closing, of up to 50% of
the Voting Securities owned by such Other Shareholder immediately after the
Effective Time;

 8

(D)         with
the Company’s prior written consent (approved by the Requisite Independent
Directors) or at the request of the Requisite Independent Directors, provided, however, that
any Transfer by F Co Parent or any of its Affiliates pursuant to this clause (iv) shall
also be subject to and conditioned on the receipt of Unaffiliated Shareholder
Approval; or

(E)         by
any Shareholder pursuant to a Sale of the Company; provided,
however, that in no event shall a Sale
of the Company for such purposes be deemed to include a Transfer by F Co Parent
or its Affiliates of all or any portion of the Voting Securities held by F Co
Parent and its Affiliates unless undertaken pursuant to a transaction or series
of related transactions that also involve the Transfer of at least 66.667% of
the Voting Securities not Beneficially Owned by F Co Parent and its Affiliates.

(b)          Each
Shareholder (other than Evercore) agrees to notify F Co Parent of its
intentions to Transfer a substantial block of Voting Securities in compliance
with this Agreement, and if requested by F Co Parent, such Shareholder will
negotiate terms upon which such Shareholder would Transfer such substantial
block (or a portion thereof) to F Co Parent, but in no event shall any
Shareholder be obligated to Transfer any such Voting Securities to F Co Parent
or negotiate with F Co Parent with respect to such transfer for a period longer
than 3 days. Any Shareholder’s obligation to negotiate with F Co Parent under
this Section 4.2(b) shall be conditioned upon F Co Parent’s agreement
to hold as confidential and not to publicly disclose, prior to the closing of a
Transfer of the subject Voting Securities, any such notification or
negotiations. No Shareholder shall be obligated to notify F Co Parent of its
intentions to transfer Voting Securities if such Shareholder reasonably
believes, after consultation with legal counsel, that F Co Parent may have an
obligation under applicable law to disclose, prior to the closing of the
Transfer of the subject Voting Securities, the existence or contents of any
notification hereunder. Any Transfer by a Shareholder to its partners as a
distribution in kind shall not be subject to the requirements of this Section 4.2(b).

4.3          Legend on Securities.

(a)          Each
certificate representing shares of Common Stock Beneficially Owned by a
Shareholder or its Affiliates and subject to the terms of this Agreement shall
bear the following legends on the face thereof:

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE
SUBJECT TO RESTRICTIONS ON TRANSFER AND CERTAIN OTHER LIMITATIONS SET FORTH IN
A CERTAIN SHAREHOLDERS AGREEMENT DATED AS OF SEPTEMBER 14, 2005, AMONG CERTEGY
INC. (THE “COMPANY”) AND CERTAIN OF ITS SHAREHOLDERS, AS THE SAME MAY BE
AMENDED FROM TIME TO TIME (THE “AGREEMENT”), COPIES OF WHICH AGREEMENT ARE ON
FILE AT THE PRINCIPAL OFFICE OF THE COMPANY.”

“THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE
OFFERED OR SOLD UNLESS IT HAS BEEN REGISTERED UNDER THE SECURITIES ACT OR UNLESS
AN EXEMPTION FROM REGISTRATION IS AVAILABLE (AND, IN SUCH CASE, IF REQUESTED BY
THE COMPANY, AN
OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY SHALL HAVE BEEN
DELIVERED TO THE COMPANY TO THE EFFECT THAT SUCH OFFER OR SALE IS NOT REQUIRED
TO BE REGISTERED UNDER THE SECURITIES ACT).”

 9
 

(b)          Upon
any acquisition by a Shareholder or any of its Affiliates of additional shares
of Common Stock, such Shareholder shall, or shall cause such Affiliate to,
submit the certificates representing such shares of Common Stock to the Company
so that the legend required by this Section 4.3
may be placed thereon (if not so endorsed upon issuance).

(c)          The
Company may make a notation on its records or give instructions to any transfer
agents or registrars for the Common Stock in order to implement the
restrictions on Transfer set forth in this Agreement.

(d)          In connection with any Transfer of shares of Common Stock,
the transferor shall provide the Company with such customary certificates,
opinions and other documents as the Company may reasonably request to assure
that such Transfer complies fully with this Agreement and with applicable
securities and other laws.

ARTICLE 5

GOVERNANCE

5.1          Non-Competition.

(a)          For
a period (the “Term”) commencing
on the date hereof and continuing until the first anniversary
of the date (the “Separation Date”)
F Co Parent and its Affiliates cease to Beneficially Own at least 30% of the outstanding Voting Securities of the Company, F Co
Parent agrees that it shall not, and shall cause its Affiliates not to,
directly or indirectly, own, manage, operate, control or participate in the
ownership, management, operation or control, other than their ownership,
operation and control of the Company and its subsidiaries, any business,
whether in corporate, proprietorship or partnership form or otherwise, engaged
in a Competitive Business. For purposes of this Section 5.1,
“Competitive Business”
shall mean:

(i)           providing
(A) retail bank core processing systems, (B) customer channel-solutions
(online-retail and commercial, ATM, branch, teller and call center), (C) consumer
and commercial lending and servicing systems, including mortgage loan
origination and servicing systems, and (D) data center outsourcing
services to credit unions, community banks, thrifts, data centers, banks and
other financial institutions;

(ii)          providing
real estate tax, credit, flood, default and appraisal services and multiple
listing software and services to financial institutions and loan servicers; or

(iii)        credit
card and debit card processing and back-office support services to banks,
credit unions, retailers and other third-party businesses and check
cashing and check risk management and related processing products and services
to businesses.

(b)          Notwithstanding
the foregoing, nothing contained in this Agreement shall prevent F Co Parent
from:

(i)           engaging
in any of the activities set forth on Schedule 2
hereto (“Permitted Competitive
Business Activity”);

(ii)          acquiring
control of a business engaged in a Competitive Business (an “Acquisition”) and
continuing to conduct such Competitive Business if, and only if, F Co Parent
first presents the opportunity to make the Acquisition to the Board and the
Requisite Independent Directors disclaim the Company’s interest in such
opportunity after F Co Parent’s disclosure of all material facts concerning the
opportunity then known to F Co Parent; provided  that, F Co Parent consummates the Acquisition on the same
terms presented to the Board. Notwithstanding the foregoing, nothing contained
in this clause (b)(ii) shall permit F Co Parent to conduct any
activities that constitute a 

 10
 

Competitive Business
through such acquired entity if such type of activities were not conducted by
the acquired entity at the time of the Acquisition;

(iii)        acquiring
control of a business (A) which earns less than 10% of its annual revenues
from engaging in a Competitive Business (“Minor
Competitive Activity”); provided, however that such Minor
Competitive Activity shall comprise less than 10% of the annual revenues of the
acquired business during the entire Term, or (B) which earns more than
10%, but less than 50% of its annual revenues from engaging in a Competitive
Business (“Divestible Competitive
Activity”); provided, however that such Divestible Competitive Activity shall be
offered to the Company within thirty (30) days after closing the acquisition of
such Divestible Competitive Activity at a price equal to that paid by the F Co
Parent or its Affiliate or, if such price was not separately determined, at
fair market value as determined by mutual consent of the parties or a mutually
agreed upon appraisal process; or

(iv)         being
a passive owner of less than five percent (5%) of the outstanding stock of a
corporation which is publicly traded and is engaged in a Competitive Business.

5.2          Intercompany Agreements
and Related Matters.

(a)          No
material provision of any of the Intercompany Agreements or any other contract
or arrangement which involves payments by any party of more than $250,000
annually in the aggregate, between the Company and any of its Subsidiaries on
the one hand and F Co Parent or its Affiliates on the other, shall be amended,
waived or otherwise modified in a manner adverse to the Company unless approved
in advance by the Requisite Independent Directors. No obligation or liability
of F Co Parent or any of its Affiliates to the Company or any of its
Subsidiaries in excess of $250,000 shall be waived, released, compromised, or
failed to be enforced by the Company and its Subsidiaries unless such waiver,
release, compromise or failure is approved in advance by the Requisite
Independent Directors

(b)          Neither
the Company nor any of its Subsidiaries shall be permitted to enter into or be
a party to any transaction, contract or arrangement which involves payments by
any party of more than $250,000 annually in the aggregate, with F Co Parent or
any Subsidiary thereof, or any director, officer or employee of, or any “associate”
(as defined in Rule 12b-2 promulgated under the Exchange Act) of any such
person, except for transactions contemplated by this Agreement, the
Intercompany Agreements, and the Merger Agreement, unless approved in advance
by the Requisite Independent Directors.

5.3          Approval Rights.   Until
F Co Parent and its Affiliates no longer Beneficially Own Voting Securities
representing at least 30% of the Total Voting Power, the Company shall not take any of the following actions without the
consent of F Co Parent: (i) hiring and firing the Chief Executive
Officer or Chief Financial Officer of the Company; and (ii) approving the
annual operating and capital expenditure budget of the Company.

5.4          Composition of the Board.

(a)          Effective
as of the Effective Time, the authorized number of Directors comprising the
Board shall initially be 10, divided into three classes as provided in the
Charter, consisting of:

(i)           three
(3) individuals selected by the Board prior to the filing date of the
definitive Proxy Statement (as such term is defined in the Merger Agreement) to
occupy one seat in each of the three classes (the “C Co
Directors”);

 11
 

(ii)          the
individual then serving as the Chief Executive Officer of the Company, for so
long as such individual holds such position (who shall be a Class 2
Director);

(iii)        four
(4) individuals designated by F Co Parent prior to the expected filing
date of the definitive Proxy Statement, one of whom shall be William P. Foley, II
(the “F Co Parent Directors”), with Mr. Foley
and one (1) other F Co Parent Director to be Class 1 Directors, one (1) F
Co Parent Director to be a Class 2 Director, and one (1) F Co Parent
Director to be a Class 3 Director;

(iv)         one (1) individual
designated by Thomas H. Lee Parallel Fund V, L.P. (the “THL Director”),
(who shall be a Class 1 Director), who shall initially be Thomas M. Hagerty
and who shall be such director so long as he is a principal of THL (or
equivalent or higher ranking employee of THL), provided that any director
replacing the initial THL Director shall always be an individual who is a
principal of THL (or equivalent or higher ranking employee of THL); and

(v)          one (1) individual
designated by TPG Partners IV, L.P. (the “TPG Director”),
(who shall be a Class 3 Director), who shall initially be Marshall Haines
and who shall be such director so long as he is a principal of TPG (or
equivalent or higher ranking employee of TPG), provided that any director
replacing the initial TPG Directors shall always be an individual who is a
principal of TPG (or equivalent or higher ranking employee of TPG).

(b)          The
Company and F Co Parent shall each provide written notice to the other, not
less than 5 Business Days prior to the expected filing date of the definitive
Proxy Statement of the individuals who shall be designated as the initial three
C Co Directors and the four F Co Parent Directors pursuant to Section 5.4(a), provided, however, that if either the Company or F Co Parent has not
selected their respective nominees by such date, then notwithstanding the
foregoing, the Company or F Co Parent, as the case may be, shall instead
provide such notice at least 5 Business Days prior to the expected date of the
Closing (or if such period of notice is not practicable under the circumstances
because an individual who has been so designated is no longer available for
such service, such prior notice as is practicable), and provided,
further that designation of the initial
C Co Directors shall be subject to the prior written consent of F Co
Parent, which consent shall not be unreasonably withheld.

(c)          Except
as provided in Section 5.4(d), the size and
composition of the Board may thereafter be changed as permitted by and in
accordance with applicable law and the Charter and the Bylaws; provided, however, that
none of F Co Parent or its Affiliates shall vote its shares or otherwise act to
remove any person serving as a C Co Director prior to expiration of such
Director’s term other than for cause.

(d)          Following
the Effective Time, the Board shall include (i) the individual then
serving as the Chief Executive Officer of the Company, for so long as such
individual holds such position, (ii) the F Co Parent Directors, for so
long as F Co Parent remains a party to this Agreement; (iii) the THL
Director, for so long as THL owns at least one-third (33%) of the Voting
Securities held by it immediately after the Effective Time (subject to
adjustment for stock splits, combinations and similar events); (iv) the
TPG Director, for so long as TPG owns at least one-third (33%) of the Voting
Securities held by it immediately after the Effective Time (subject to
adjustment for stock splits, combinations and similar events); and (v) such
number of Independent Directors as is necessary to have in office at all times
not less than three (3) Independent Directors.

 12
 

(e)          Subject
to subsection (d) above and until such time as such Committees must be
comprised entirely of Independent Directors in accordance with the listing
standards of the New York Stock Exchange, the Compensation Committee of the
Board shall include one of either the THL Director and the TPG Director. The
THL Director and TPG Director shall rotate their position on the Compensation
Committee each year.

(f)           No
party shall designate a Director (i) who has been removed for cause from
the Board, (ii) has ever been convicted of a felony, or (iii) is or,
within 10 years prior to the date of designation, has been subject to any
permanent injunction for violation of any federal or state securities law.

5.5          Voting Agreements.

(a)          Each
Shareholder (other than Evercore) hereby agrees that it will vote, or cause to
be voted, all Voting Securities over which such Person has the power to vote or
direct the voting (and which are entitled to vote on such matter), and will
take all other necessary or desirable actions within such Person’s control in
favor of the election of each candidate designated or nominated for election
pursuant to Section 5.4. If at any time any
such Director ceases to serve on the Board (whether due to resignation, removal
or otherwise), the Company shall nominate and the Shareholders shall vote in
favor of a successor to fill the vacancy created thereby on the terms and
subject to the conditions of Section 5.4.
Each Shareholder (other than Evercore) agrees to vote, or cause to be voted,
all Voting Securities over which such Person has the power to vote or direct
the voting, and shall take all such other actions as shall be necessary or
desirable to cause the designated successor to be elected to fill such vacancy.

(b)          Nothing
in this Agreement shall be construed to impair any rights that the shareholders
of the Company may have to remove any Director for cause under applicable law,
the Charter or Bylaws. No such removal of an individual designated pursuant to Section 5.4 for cause shall affect any of the
Shareholders’ rights to designate a different individual pursuant to Section 5.4 to fill the position from which such
individual was removed.

5.6          NYSE Listing.   Except following the
completion of a Going Private Transaction conducted in accordance with Section 3.2 or with the prior consent of the Requisite
Independent Directors, F Co Parent will not take or cause the Company to take
any action to delist, or that would reasonably be expected to result in the
delisting of, the Common Stock from a national securities exchange; provided that nothing in this Section 5.5
shall require F Co Parent or any of its Affiliates to take any affirmative
action to prevent the Common Stock from being delisted by any such national
securities exchange in the event that the Common Stock ceases to meet the
applicable listing standards of such national securities exchange.

ARTICLE 6

MISCELLANEOUS

6.1          Notices.   Any notice,
direction or other communication to be given under this Agreement shall be in
writing and given by delivering it or sending it by facsimile or other similar
form of recorded communication addressed:

	
  

  	
  If to
  the Company (prior to the Effective Time):

  
	
   

  	
  Certegy Inc.

  
	
   

  	
  100 Second Avenue
  South

  
	
   

  	
  Suite 1100S

  
	
   

  	
  St. Petersburg,
  FL 33701

  
	
   

  	
  Attention: Walter
  M. Korchun

  
	
   

  	
  Facsimile: (727)
  227-8558

  
			

 13
 

 

	
  

  	
  with
  copies to:

  
	
   

  	
  Kilpatrick Stockton
  LLP

  
	
   

  	
  1100 Peachtree
  Street, Suite 2800

  
	
   

  	
  Atlanta, GA 30309

  
	
   

  	
  Attention:

  	
  W. Stanley
  Blackburn, Esq.

  
	
   

  	
   

  	
  Bruce D.
  Wanamaker, Esq.

  
	
   

  	
  Facsimile:

  	
  (404) 541-3132

  
	
   

  	
  and

  
	
   

  	
  Covington &
  Burling

  
	
   

  	
  1201 Pennsylvania
  Avenue, NW

  
	
   

  	
  Washington, DC
  20004-7566

  
	
   

  	
  Attention Bruce
  S. Wilson

  
	
   

  	
  Facsimile: (202)
  778-5400

  
	
   

  	
  and

  
	
   

  	
  Covington &
  Burling

  
	
   

  	
  1330 Avenue of
  the Americas

  
	
   

  	
  New York, NY
  10019

  
	
   

  	
  Attention Stephen
  A. Infante

  
	
   

  	
  Facsimile: (646)
  441-9039

  
	
   

  	
  If to the Company (after the Effective Time):

  
	
   

  	
  Fidelity National Information Services, Inc

  
	
   

  	
  601 Riverside Avenue

  
	
   

  	
  Jacksonville, FL 32204

  
	
   

  	
  Attention: Christopher Rose

  
	
   

  	
  Facsimile No.:
  (904) 357 1026

  
	
   

  	
  with copies to:

  
	
   

  	
  Weil, Gotshal &
  Manges LLP

  
	
   

  	
  100 Federal Street

  
	
   

  	
  Boston, MA 02110

  
	
   

  	
  Attention:

  	
  James Westra, Esq.

  
	
   

  	
   

  	
  Marilyn
  French, Esq.

  
	
   

  	
  Facsimile:

  	
  (617) 772-8333

  
	
   

  	
  Fidelity National
  Financial, Inc.

  
	
   

  	
  601 Riverside
  Avenue

  
	
   

  	
  Jacksonville, FL
  32204

  
	
   

  	
  Attention:
  Christopher Rose

  
	
   

  	
  Facsimile: (904)
  357 1026

  
	
   

  	
  If to F
  Co Parent:

  
	
   

  	
  Fidelity National
  Financial, Inc.

  
	
   

  	
  601 Riverside
  Avenue

  
	
   

  	
  Jacksonville, FL
  32204

  
	
   

  	
  Attention:
  Christopher Rose

  
	
   

  	
  Facsimile: (904)
  357-1026

  
						

 14
 

 

	
  

  	
  If to
  THL:

  
	
   

  	
  Thomas H. Lee
  Partners, L.P.

  
	
   

  	
  100 Federal
  Street

  
	
   

  	
  Boston, MA 02110

  
	
   

  	
  Attention: Thomas
  Hagerty and Seth Lawry

  
	
   

  	
  Telephone: (617)
  227-1050

  
	
   

  	
  Facsimile: (617)
  227-3514

  
	
   

  	
  If to
  TPG:

  
	
   

  	
  Texas Pacific
  Group

  
	
   

  	
  301 Commerce
  Street

  
	
   

  	
  Suite 3300

  
	
   

  	
  Fort Worth, TX
  76102

  
	
   

  	
  Attention: David
  Spuria, Esq.

  
	
   

  	
  Telephone: (817)
  871-4000

  
	
   

  	
  Facsimile: (817)
  871-4088

  
	
   

  	
  If to
  Evercore:

  
	
   

  	
  Evercore Partners

  
	
   

  	
  55 East 52nd
  Street, 43rd Floor

  
	
   

  	
  New York, NY
  10055

  
	
   

  	
  Attn: Neeraj
  Mital

  
	
   

  	
  Telephone: (212)
  857-3197

  
	
   

  	
  Facsimile: (212)
  857-3152

  
	
   

  	
  If for the Company or any of
  the Shareholders, with copies to:

  
	
   

  	
  Weil, Gotshal &
  Manges LLP

  
	
   

  	
  100 Federal Street

  
	
   

  	
  Boston, MA 02110

  
	
   

  	
  Attention:

  	
  James Westra, Esq.

  
	
   

  	
   

  	
  Marilyn
  French, Esq.

  
	
   

  	
  Facsimile:

  	
  (617) 772-8333

  
	
   

  	
  If for
  TPG, with copies to

  
	
   

  	
  Cleary Gottlieb
  Steen & Hamilton LLP

  
	
   

  	
  One Liberty Plaza

  
	
   

  	
  New York, NY
  10006

  
	
   

  	
  Attention: David
  Leinwand, Esq.

  
	
   

  	
  Facsimile: (212)
  225-3999

  
	
   

  	
  If for
  Evercore, with copies to:

  
	
   

  	
  Simpson
  Thacher & Bartlett LLP

  
	
   

  	
  425 Lexington
  Avenue

  
	
   

  	
  New York, NY
  10017

  
	
   

  	
  Attention: Alan
  Schwartz

  
	
   

  	
  Facsimile: (212)
  455-2502

  
				

 

Any such communication shall be deemed to have been
validly and effectively given (i) if personally delivered, on the date of
such delivery if such date is a business day and such delivery was made prior
to 

 15
 

4:00 p.m. (New York time) and otherwise on the
next business day, or (ii) if transmitted by facsimile or similar means of
recorded communication on the business day following the date of transmission. Any
party may change its address for service from time to time by notice given in
accordance with the foregoing and any subsequent notice shall be sent to such
party at its changed address.

6.2          Amendments; Termination.   This
Agreement may be amended, supplemented or otherwise modified only by written
agreement of each of the following that are then parties to this Agreement: the
Company (acting with the approval of the Requisite Independent Directors), F Co
Parent, THL and TPG. Each party hereto shall cease to be a party to this
Agreement at such time as such party owns less than 10% of the number of shares
of Common Stock of the Company that such party owns as of the date of the
Closing and set forth on Schedule 3
hereto (as adjusted for any stock splits, stock dividends or equivalent
transactions). Except as otherwise provided in this Agreement, this Agreement
and the rights and obligations of the parties hereunder shall terminate upon
the first date on which F Co Parent and its Affiliates Beneficially Own either (i) Voting
Securities representing less than 10% of the Total Voting Power, or (ii) 90%
or more of each class of Capital Stock of which ownership would be required in
order to effect a merger pursuant to Section 14-2-1104 of the
GBCC or any successor provision (acquired in compliance with the terms of this
Agreement). This Agreement will terminate in respect of all Shareholders upon
the consummation of a Going Private Transaction or Sale of the Company. Nothing
in this Section 6.2 shall be deemed to
release any party from any liability for any willful and material breach of
this Agreement occurring prior to the termination hereof or to impair the right
of any party to compel specific performance by any other party of its
obligations under this Agreement.

6.3           Waiver.   No
waiver of any of the provisions of this Agreement shall be deemed to constitute
a waiver of any other provision (whether or not similar) nor shall such waiver
be binding unless executed in writing by the party to be bound by the waiver. No
failure on the part of any party to exercise, and no delay in exercising, any
right under this Agreement shall operate as a waiver of such right; nor shall
any single or partial exercise of any such right preclude any other or further
exercise of such right of the exercise of any other right. All actions and
decisions of the Company relating to the enforcement of this Agreement shall be
exercised by or under the authority of the Requisite Independent Directors.

6.4           Successors and Assigns.   Neither
this Agreement nor any of the rights or obligations under this Agreement is
assignable or transferable by any party without the prior written consent of
the other parties. This Agreement is binding upon and inures to the benefit of
the parties and their respective successors and permitted assigns. For this
purpose, a successor includes any person that acquires control of all or
substantially all the assets of one of the parties.

6.5           Severability.   In
case any provision in this Agreement shall be held invalid, illegal or
unenforceable in any respect for any reason, the validity, legality and
enforceability of any such provision in every other respect and the remaining
provisions shall not in any way be affected or impaired thereby.

6.6           Governing Law.   This
Agreement is governed by and interpreted and enforced in accordance with the
laws of the State of New York without regards to principles of conflicts of law
State (other then those provisions set forth herein that are required to be
governed by the GBCC). Each party hereto irrevocably submits to the
non-exclusive jurisdiction of the courts of the State of New York with respect
to any matters arising hereunder or relating hereto.

6.7           Counterparts.   This
Agreement may be executed in any number of counterparts and all such
counterparts taken together are deemed to constitute one and the same
instrument.

 16

6.8           Entire Agreement.   Except
as otherwise expressly set forth herein, this Agreement and the Merger
Agreement, together with the several agreements and other documents and
instruments referred to herein or therein or annexed hereto or thereto, embody
the complete agreement and understanding among the parties hereto with respect
to the subject matter hereof and supersede and preempt any prior
understandings, agreements or representations by or among the parties, written
or oral, that may have related to the subject matter hereof in any way. Without
limiting the generality of the foregoing, to the extent that any of the terms
hereof are inconsistent with the rights or obligations of the Shareholders
under any other agreement with the Company, the terms of this Agreement shall
govern.

6.9           Estoppel.   No
failure or delay in exercising any right, power or privilege under this
Agreement will operate as a waiver thereof, nor will any single or partial
exercise thereof preclude any other or further exercise thereof or the exercise
of any right, power or privilege under this Agreement.

6.10        Conflicting Agreements.   Each party
represents and warrants that it has not granted and is not a party to any
proxy, voting trust or other agreement that is inconsistent with or conflicts
with any provision of this Agreement.

6.11        Effectiveness.   Except for the
provisions of Sections 5.4(a)(i), 5.4(a)(iii) and 5.4(b) (relating
to the designation of the individuals to serve as the initial C Co Directors
and F Co Parent Directors), which are in full force and effect as of the date
hereof, this Agreement shall become effective upon the Closing and prior
thereto shall be of no force or effect. If the Merger Agreement shall be
terminated in accordance with its terms prior to the Closing, this Agreement
(including the provisions of Section 5.4)
shall automatically be of no force or effect.

*  * 
*  *  *

 17
 

IN
WITNESS WHEREOF,   the parties hereto have executed this
Shareholders Agreement on the day and year first above written.

	
  

  	
  COMPANY:

  
	
   

  	
  CERTEGY INC.

  
	
   

  	
  By:

  	
   /s/ LEE A. KENNEDY

  
	
   

  	
   

  	
  Name: Lee A.
  Kennedy

  
	
   

  	
   

  	
  Title: Chairman and Chief Executive Officer

  
	
   

  	
  SHAREHOLDERS:

  
	
   

  	
  FIDELITY NATIONAL FINANCIAL,
  INC.

  
	
   

  	
  By:

  	
   /s/ WILLIAM P. FOLEY, II

  
	
   

  	
   

  	
  Name: William P. Foley, II

  
	
   

  	
   

  	
  Title: Chairman and Chief Executive Officer

  
	
   

  	
  THL FNIS HOLDINGS,
  LLC

  
	
   

  	
  By:

  	
  THL Equity
  Advisors V, LLC, its manager

  
	
   

  	
  By:

  	
  Thomas H. Lee Partners, L.P.,
  its sole member

  
	
   

  	
  By:

  	
  Thomas H. Lee Advisors
  LLC, its general partner

  
	
   

  	
  By:

  	
   /s/ THOMAS H. LEE

  
	
   

  	
   

  	
  Name: Thomas H. Lee

  
	
   

  	
   

  	
  Title: Managing Director

  
	
   

  	
  THOMAS H. LEE CAYMAN FUND V, L.P.

  
	
   

  	
  By:

  	
  THL Equity
  Advisors V, LLC, its general partner

  
	
   

  	
  By:

  	
  Thomas H. Lee Partners,
  L.P., its sole member

  
	
   

  	
  By:

  	
  Thomas H. Lee Advisors
  LLC, its general partner

  
	
   

  	
  By:

  	
   /s/ THOMAS H. LEE

  
	
   

  	
   

  	
  Name: Thomas H. Lee

  
	
   

  	
   

  	
  Title: Managing Director

  
	
   

  	
  THOMAS H. LEE INVESTORS
  LIMITED PARTNERSHIP

  
	
   

  	
  By:

  	
  THL Investment
  Management Corp., its general partner

  
	
   

  	
  By:

  	
   /s/ THOMAS H. LEE

  
	
   

  	
   

  	
  Name: Thomas H. Lee

  
	
   

  	
   

  	
  Title: Chief Executive Officer

  

 

 18
 

 

	
  

  	
  PUTNAM
  INVESTMENTS EMPLOYEES’ SECURITIES COMPANY
  I LLC

  
	
   

  	
  By:

  	
  Putnam Investment
  Holdings, LLC, its managing member

  
	
   

  	
  By:

  	
  Putnam Investments, LLC,
  its managing member

  
	
   

  	
  By:

  	
   /s/ ROBERT BURNS

  
	
   

  	
   

  	
  Name: Robert Burns

  
	
   

  	
   

  	
  Title: Managing Director

  
	
   

  	
  PUTNAM INVESTMENTS
  EMPLOYEES’ SECURITIES COMPANY II LLC

  
	
   

  	
  By:

  	
  Putnam Investment
  Holdings, LLC, its managing member

  
	
   

  	
  By: 

  	
  Putnam Investments, LLC,
  its managing member

  
	
   

  	
  By:

  	
   /s/ ROBERT BURNS

  
	
   

  	
   

  	
  Name: Robert Burns

  
	
   

  	
   

  	
  Title: Managing Director

  
	
   

  	
  PUTNAM INVESTMENT
  HOLDINGS, LLC

  
	
   

  	
  By:

  	
  Putnam
  Investments, LLC, its managing member

  
	
   

  	
  By:

  	
   /s/ ROBERT BURNS

  
	
   

  	
   

  	
  Name: Robert Burns

  
	
   

  	
   

  	
  Title: Managing Director

  
	
   

  	
  TPG FNIS HOLDINGS, LLC

  
	
   

  	
  By:

  	
  TPG GenPar III,
  L.P.

  
	
   

  	
  By:

  	
  TPG Advisors
  III, Inc.

  
	
   

  	
  By:

  	
   /s/ DAVID A. SPURIA

  
	
   

  	
   

  	
  Name: David A. Spuria

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
  TPG PARALLEL III, L.P.

  
	
   

  	
  By:

  	
  TPG GenPar III,
  L.P.

  
	
   

  	
  By:

  	
  TPG Advisors
  III, Inc.

  
	
   

  	
  By:

  	
   /s/ DAVID A. SPURIA

  
	
   

  	
   

  	
  Name: David A. Spuria

  
	
   

  	
   

  	
  Title: Vice President

  

 

 19
 

 

	
  

  	
  TPG INVESTORS III, L.P.

  
	
   

  	
  By:

  	
  TPG GenPar III,
  L.P.

  
	
   

  	
  By:

  	
  TPG Advisors
  III, Inc.

  
	
   

  	
  By:

  	
   /s/ DAVID A. SPURIA

  
	
   

  	
   

  	
  Name: David A. Spuria

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
  FOF PARTNERS
  III, L.P.

  
	
   

  	
  By:

  	
  TPG GenPar III, L.P.

  
	
   

  	
  By:

  	
  TPG Advisors III, Inc.

  
	
   

  	
  By:

  	
   /s/ DAVID
  A. SPURIA

  
	
   

  	
   

  	
  Name: David A. Spuria

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
  FOF PARTNERS III-B, L.P.

  
	
   

  	
  By:

  	
  TPG GenPar III,
  L.P.

  
	
   

  	
  By:

  	
  TPG Advisors
  III, Inc.

  
	
   

  	
  By:

  	
   /s/ DAVID A. SPURIA

  
	
   

  	
   

  	
  Name: David A. Spuria

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
  TPG DUTCH PARALLEL
  III, C.V.

  
	
   

  	
  By:

  	
  TPG GenPar Dutch,
  L.L.C.

  
	
   

  	
  By:

  	
  TPG Genpar III, L.P.

  
	
   

  	
  By:

  	
  TPG Advisors
  III, Inc.

  
	
   

  	
  By:

  	
   /s/ DAVID A. SPURIA

  
	
   

  	
   

  	
  Name: David A. Spuria

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
  EVERCORE
  METC CAPITAL PARTNERS II L.P.

  
	
   

  	
  By: 

  	
  Evercore Partners
  II L.L.C., its General Partner

  
	
   

  	
  By:

  	
   /s/ KATHLEEN G. REILAND

  
	
   

  	
   

  	
  Name: Kathleen G.
  Reiland

  
	
   

  	
   

  	
  Title: Senior Managing Director

  

 

 20

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