Document:

Exhibit 10.27

PROMISSORY NOTE

	
  Borrower:

  	
   

  	
  United Development Company Limited

  	
   

  	
  Lender:

  	
   

  	
  Bank of America, N.A.

  
	
   

  	
   

  	
  21 75 Partin Settlement Rd.

  	
   

  	
   

  	
   

  	
  CCS-Small Business/Premier

  
	
   

  	
   

  	
  Kissimmee, FL 34744-4956

  	
   

  	
   

  	
   

  	
  FL9-100-03-15

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  P.O. Box 40329

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Jacksonville, FL 32203-0329

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Principal Amount:  $786,000.00

  	
   

  	
   

  	
   

  	
  Date
  of Note: May 22, 2007

  

 

PROMISE TO PAY.
United Development Company Limited (“Borrower”) promises to pay to Bank of
America, N.A. (“Lender”), or order, in lawful money of the United States of
America, the principal amount of Seven Hundred Eighty-six Thousand & 00/100 Dollars ($786,000.00),together with interest at the rate of 7.080% per annum on the unpaid principal
balance from May 22, 2007, until
paid in full.

PAYMENT.
Borrower will pay this loan in 180 payments of $7.147.21 each payment. Borrower’s
first payment is due June 22. 2007, and all subsequent payments are due on the
same day of each month after that. Borrower’s final payment will be due on May
22, 2022, and will be for ail principal and all accrued interest not yet paid.
Payments include principal and interest. Unless otherwise agreed or required by
applicable law, payments will be applied first to any accrued unpaid interest;
then to principal; then to any late charges; and then to any unpaid collection costs.
 The annual interest rate for this Note
is computed on a 365/360 basis; that is, by applying the ratio of the annual
interest rate over a year of 360 days, multiplied by the outstanding principal
balance, multiplied by the actual number of days the principal balance is
outstanding. Borrower will pay Lender at Lender’s address shown above or at
such other place as Lender may designate in writing.

PREPAYMENT PENALTY. Upon prepayment of this Note, Lender is entitled to the following
prepayment penalty: Borrower may prepay up to twenty percent (20%) of the face
amount of this Note in any Annual Period without the payment of a prepayment
fee or premium. “Annual Period” means the period commencing on the date of this
Note and ending twelve (12) months thereafter, and each subsequent twelve-month
period. Prepayments in any Annual Period which exceed, in the aggregate, twenty
percent (20%) of the face amount of this Note (“Excess Prepayments”) must be accompanied
by payment of a prepayment fee as follows:

During the first Annual
Period, 5% of the Excess Prepayments;

During the second Annual
Period, 4% of the Excess Prepayments;

During the third Annual
Period, 3% of the Excess Prepayments;

During the fourth Annual Period,
2% of the Excess Prepayments;

During
the fifth Annual Period, 1% of the Excess Prepayments.

No
prepayment fee will be assessed after the fifth annual Period.  Partial prepayments shall be applied to the
most remote payment of principal due under this Note.  Except for the foregoing, Borrower may pay
all or a portion of the amount owed earlier than it is due.  Early payments will not, unless agreed to by
Lender in writing, relieve borrower of Borrower’s obligation to continue to make
payments under the payment schedule. 
Rather, early payments will reduce the principal balance due and may
result in Borrower’s making fewer payments. 
Borrower agrees not to send Lender payments market “paid in full”, “without
recourse”, or similar language.  If
Borrower sends such a payment, Lender may accept it without losing any of
Lender’s rights under this Note, and Borrower will remain obligated to pay any
further amount owed to Lender.  All
written communications concerning disputed amounts, including any check or other
payment instrument that indicates that the payment constitutes “payment in full”
of the amount owed or that is tendered with other conditions or limitations or
as full satisfaction of a disputed amount must be mailed or delivered to:  Bank of America, N.A., FL9-100-03-15, P.O.
Box 45247  Jacksonville, FL  32203-0329.

LATE CHARGE.  If a payment is 15 days or more late,
Borrower will be charged 4.000% of the unpaid portion of the regularly
scheduled payment.

DEFAULT.  Each of the following shall constitute an
event of default (“Event of Default”) under this Note:

Payment Default.  Borrower fails to make any payment when due
under this Note.

Other Defaults.  Borrower fails to comply with or to perform
any other term, obligation, covenant or condition contained in this Note or in
any of the related documents or to comply with or to perform any term,
obligation, covenant or condition contained in any other agreement between
Lender and Borrower.

Default in Favor of Third Parties.  Borrower
or any Grantor defaults under any loan, extension of credit, security
agreement, purchase or sales agreement, or any other agreement, in favor of any
other creditor or person that may materially affect any of Borrower’s property
or Borrower’s ability to repay this Note or perform Borrower’s obligations
under this Note or any of the related documents.

False Statements.  Any warranty, representation or statement made
or furnished to Lender by Borrower or on Borrower’s behalf under this Note or
the related documents is false or misleading in any material respect, either
now or at the time made or furnished or becomes false or misleading at any time
thereafter.

Death or Insolvency.  The dissolution or termination of Borrower’s
existence as a going business or the death of any general partner, the
insolvency of Borrower, the appointment of a receiver for any part of Borrower’s
property, any assignment for the benefit of creditors, any type of creditor
workout, or the commencement of any proceeding under any bankruptcy or
insolvency laws by or against Borrower

Creditor or Forfeiture Proceedings. 
Commencement of foreclosure or forfeiture proceedings, whether by
judicial proceeding, self-help, repossession or any other method, by any
creditor of Borrower or by any governmental agency against any collateral
securing the loan.  This includes a
garnishment of any of Borrower’s accounts, including deposit accounts, with
Lender.  However, this Event of Default
shall not apply if there is a good faith dispute by Borrower as to the validity
or reasonableness of the claim which is the basis of the creditor or forfeiture
proceeding and if Borrower gives Lender written notice of the creditor or
forfeiture proceeding and deposits with Lender monies or a surety bond for the
creditor or forfeiture proceeding, in an amount determined by Lender, in its
sole discretion, as being an adequate reserve or bond for the dispute.

Events Affecting Guarantor.  Any of the preceding events
occurs with respect to any Guarantor of any of the indebtedness or any Guarantor
dies or becomes incompetent, or revokes or disputes the validity of, or
liability under, any guaranty of the indebtedness evidenced by this Note.

Events Affecting General Partner of Borrower.  Any
of the preceding events occurs with respect to any general partner of Borrower
or any general partner dies or becomes incompetent.

Change in Ownership.  The resignation or expulsion of
any general partner with an ownership interest of twenty-five percent (25%) or
more in Borrower.

Adverse Change.  A material adverse change occurs in Borrower’s
financial condition, or Lender believes the prospect of payment or performance
of this Note is impaired.

LENDER’S RIGHTS.  Upon
default, Lender may declare the entire unpaid principal balance on this Note
and all accrued unpaid interest immediately due, and then borrower will pay
that amount.

ATTORNEYS’ FEES; EXPENSES. 
Lender may hire or pay someone else to help collect this Note if
Borrower does not pay.  Borrower will pay
Lender the amount of these costs and expenses, which includes, subject to any
limits under applicable law, Lender’s reasonable attorneys’ fees and Lender’s
legal expenses whether or not there is a lawsuit, including reasonable
attorneys’ fees and legal expenses for bankruptcy proceedings (including efforts
to modify or vacate any automatic stay or injunction), and appeals.  If not prohibited by applicable law, Borrower
also will pay any court costs, in addition to all other sums provided by law.

JURY WAIVER. 
Lender and Borrower hereby waive the right to any jury trial in any
action, proceeding, or counterclaim brought by either Lender or Borrower
against the other.

CHOICE OF VENUE.  If
there is a lawsuit, Borrower agrees upon Lender’s request to submit to the
jurisdiction of the courts of any County, State of Florida.

RIGHT OF SETOFF.  To
the extend permitted by applicable law, Lender reserves a right of setoff in
all Borrower’s accounts with Lender (whether checking, savings, or some other
account).  This includes all accounts
Borrower holds jointly with someone else and all accounts Borrower may open in
the future.  However, this does not
include any IRA or Keogh accounts, or any trust accounts for which setoff would
be prohibited by law.  Borrower
authorizes Lender, to the extent permitted by applicable law, to charge or
setoff all sums owing on the indebtedness against any and all such accounts.

DISPUTE RESOLUTION PROVISION. This paragraph, including the subparagraphs
below, is referred to as the “Dispute Resolution Provision.”  This Dispute Resolution Provision is a
material inducement for the parties entering into this agreement.

(a) This Dispute Resolution Provision concerns the
resolution of any controversies or claims between the parties, whether arising
in contract, tort or by statute, including but not limited to controversies or
claims that arise out of or relate to: 
(i) this agreement (including any renewals, extensions or
modifications); or (ii) any document related to this agreement (collectively a “Claim”).  For the purposes of this Dispute Resolution
Provision only, the term “parties” shall include any parent corporation,
subsidiary or affiliate of Lender involved in the servicing, management or
administration of any obligation described or evidenced by this agreement.

(b) At the request of any party to this agreement,
any claim shall be resolved by binding arbitration in accordance with the
Federal Arbitration Act (Title 9, U.S. Code) (the “Act”).  The Act will apply even though this agreement
provides that it is governed by the law of a specified state.

(c) Arbitration proceedings will be determined in
accordance with the Act, the then-current rules and procedures for the
arbitration of financial services disputes of the American Arbitration
Association or any successor thereof (“AAA”), and the terms of this Dispute
Resolution Provision.  In the event of
any inconsistency, the terms of this Dispute Resolution Provision shall
control.  If AAA is unwilling or unable
to (i) serve as the provider of arbitration or (ii) enforce any provision of this
arbitration clause, the Lender may designate another arbitration organization
with similar procedures to serve as the provider of arbitration.

(d) The arbitration shall be administered by AAA
and conducted, unless otherwise required by law, in any U.S. state where real
or tangible personal property collateral for this credit is located or if there
is no such collateral, in the state specified in the governing law section of
this agreement.  All Claims shall be determined
by one arbitrator; however, if Claims exceed Five Million Dollars ($5,000,000),
upon the request of any party, the Claims shall be decided by three
arbitrators.  All arbitration hearings
shall commence within ninety (90) days of the demand for arbitration and close
within ninety (90) days of commencement and the award of the arbitrator(s)
shall be issued within thirty (30) days of the close of the hearing.  However, the arbitrator(s), upon a showing of
good cause, may extend the commencement of the hearing for up to an additional
sixty (60) days.  The arbitrator(s) shall
provide a concise written statement of reasons for the award.  The arbitration award may be submitted to any
court having jurisdiction to be confirmed and have judgment entered and
enforced.

(e) The arbitrator(s) will give effect to statutes
of limitation in determining any Claim and may dismiss the arbitration on the
basis that the Claim is barred.  For
purposes of the application of any statutes of limitation, the service on AAA
under applicable AAA rules of a notice of Claim is the equivalent of the filing
of a lawsuit.  Any dispute concerning
this arbitration provision or whether a Claim is arbitrable shall be determined
by the arbitrator(s), except as set forth at subparagraph (h) of this Dispute
Resolution Provision.  The arbitrator(s)
shall have the power to award legal fees pursuant to the terms of this
agreement.

(f)  This paragraph does not limit the right of any
party to: (i) exercise self-help remedies, such as but not limited to setoff;
(ii) initiate judicial or non-judicial foreclosure against any real or personal
property collateral; (iii) exercise any judicial or power of sale rights, or
(iv) act in a court of law to obtain an interim remedy, such as but not limited
to, injunctive relief, writ of possession or appointment of a receiver, or
additional or supplementary remedies.

(g) The filing of a court action is not intended to
constitute a waiver of the right of any party, including the suing party,
thereafter to require submittal of the Claim to arbitration.

(h) Any arbitration or trial by a judge of any
Claim will take place on an individual basis without resort to any form of
class or representative action (the “Class Action Waiver”).  Regardless of anything else in this Dispute
Resolution Provision, the validity and effect of the Class Action Waiver may be
determined only by a court and not by an arbitrator.  The parties to this Agreement acknowledge
that the Class Action Waiver is material and essential to the arbitration of
any disputes between the parties and is nonseverable from the agreement to
arbitrate Claims.  If the Class Action
Waiver is limited, voided or found unenforceable, then the parties’ agreement
to arbitrate shall be null and void with respect to such proceedings, subject
to the right to appeal the limitation or invalidation of the Class Action
Waiver.  The parties
acknowledge and agree that under no circumstances will a class action be
arbitrated.

ASSIGNMENT. 
Lender may sell or offer to sell this note, together with any and all documents
guaranteeing, securing or executed in connection with this Note, to one or more
assignees without notice to or consent of Borrower.  Lender is hereby authorized to share any

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information it has pertaining
to the loan evidenced by this Note, including without limitation credit
information on the undersigned, any of its principals, or any guarantors of
this Note, to any such assignee or prospective assignee.

COUNTERPARTS.  This
Note may be executed in any number of counterparts, each of which when so
executed shall be deemed to be an original and all of which taken together
shall constitute one and the same agreement.

PRE BILLING.  If
the Borrower and Lender elect to use pre-billing calculation, for each payment
date (the “Due Date”) the amount of each payment debit will be determined as
follows:  On the “Billing Date” Lender
will prepare and mail to Borrower an invoice of the amounts that will be due on
that Due Date (“Billed Amount”).  (The “Billing
Date” will be a date that is a specified number of calendar days prior to the
Due Date, which number of days will be mutually agreed from time to time by
Lender and Borrower.)  The calculation of
the Billed Amount will be made on the assumption that no new extensions of
credit or payments will be made between the Billing Date and the Due Date, and
that there will be no changes in the applicable interest rate.  On the Due Date Lender will debit the
Designated Account for the Billed Amount, regardless of the actual amount due
on that date (“Accrued Amount”).   If the
Due Date does not fall on a Business Day, Lender shall debit the Designated
Account on the first Business Day following the Due Date.  For purposes of this Agreement, “Business Day”
means a day other than Saturday, Sunday or other day on which commercial banks
are authorized to close or are in fact closed in the state where the Lender’s
lending office is located.  If the Billed
Amount debited to the Designated Account differs from the Accrued Amount, the
difference will be treated as follows: 
If the Billed Amount is less than the Accrued Amount, the Billed Amount
for the following Due Date will be increased by the amount of the
underpayment.   Borrower will not be in
default by reason of any such underpayment. 
If the Billed Amount is more than the Accrued Amount, the Billed Amount
for the following Due Date will be decreased by the amount of the
overpayment.  Regardless of any such
difference, interest will continue to accrue based on the actual amount of
principal outstanding without compounding. 
Lender will not pay interest on any overpayment.

AUTOMATIC PAYMENTS. 
Borrower hereby authorizes Lender automatically to deduct from Borrower’s
account numbered 003074512207 the amount of any loan payment.  If the funds in the account are insufficient
to cover any payment, Lender shall not be obligated to advance funds to cover
the payment.  At any time and for any
reason, Borrower or Lender may voluntarily terminate Automatic Payments.

TERMINATION OF AUTOMATIC PAYMENTS.  In
the event that Borrower terminates the Automatic Payment arrangement with
Lender, Borrower agrees that the interest rate under the Note will increase, at
the discretion of the Lender, by one percentage point (1.00%) per annum over
the rate of interest stated in the Note, and the amount of each interest
installment will be increased accordingly. 
The effective rate of interest under the Note shall not in any event
exceed the maximum rate permitted by law.

FINAL
AGREEMENT.  BY SIGNING THIS DOCUMENT EACH PARTY
REPRESENTS AND AGREES THAT: (A) THIS DOCUMENT REPRESENTS THE FINAL AGREEMENT
BETWEEN THE PARTIES WITH RESPECT TO THE SUBJECT MATTER HEREOF, (B) THIS
DOCUMENT SUPERSEDES ANY COMMITMENT LETTER, TERM SHEET OR OTHER WRITTEN OUTLINE
OF TERMS AND CONDITIONS RELATING TO THE SUBJECT MATTER HEREOF, UNLESS SUCH
COMMITMENT LETTER, TERM SHEET OR OTHER WRITTEN OUTLINE OF TERMS AND CONDITIONS
EXPRESSLY PROVIDES TO THE CONTRARY, (C) THERE ARE NO ORAL AGREEMENTS BETWEEN
THE PARTIES, AND (D) THIS DOCUMENT MAY NOT BE CONTRADICTED BY EVIDENCE OF ANY
PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OR UNDERSTANDINGS OF THE
PARTIES.

ADDITIONAL DEFAULTS.  Each
of the following shall constitute an additional event of default (“Event of
Default”) under this Note:

Event of Default Under Related
Documents.   A default or event of default occurs under
the terms of any promissory note, guaranty, pledge agreement, security
agreement or other agreement or instrument executed by Borrower or any
guarantor, pledgor, accommodation party or other obligor in connection with or
relating to this Note.

Judgment.  The
entry of a judgment against any Borrower or guarantor, pledgor, accommodation
party or other obligor which Lender deems to be of a material nature, in Lender’s
sole discretion.

Creditor or Forfeiture
Proceedings.  Commencement of foreclosure or forfeiture
proceedings, whether by judicial proceeding, self-help, repossession or any
other method, by any creditor of Borrower or by any governmental agency against
any assets of Borrower and/or any guarantor, pledgor, accommodation party or
other obligor.  This includes a
garnishment of: (1) any of Borrower’s accounts, including deposit accounts,
with Lender and/or (2) any account, including deposit accounts, with Lender of
any guarantor, pledgor, accommodation party or other obligor.  However, this Event of Default shall not
apply if there is a good faith dispute by such Borrower and/or guarantor,
pledgor, accommodation party or other obligor as to the validity or
reasonableness of the claim which is the basis of the creditor or forfeiture
proceeding and if such Borrower and/or guarantor, pledgor, accommodation party
or other obligor gives Lender written notice of the creditor of forfeiture
proceeding and deposits with Lender monies or a surety bond for the creditor or
forfeiture proceeding, in an amount determined by Lender, in its sole
discretion, as being an adequate reserve or bond for the dispute.

Adverse Change of Obligor.  A
material adverse change occurs in the financial condition of any guarantor,
pledgor, accommodation party or other obligor, as determined by Lender in its
sole discretion.

Resignation/Withdrawal.  The
resignation or withdrawal of any general partner or any guarantor, pledgor,
accommodation party or other obligor or any substantial change in the present
executive or management personnel of Borrower, any guarantor, pledgor,
accommodation party or other obligor, as determined by Lender in its sole
discretion.

FINANCIAL STATEMENTS AND OTHER
INFORMATION.  Borrower will provide Lender with such
financial statements, including tax returns, other statements of condition or
other information, in form and content acceptable to Lender, as Lender shall
request from time to time within fifteen days of the date of the request.

FEE FOR LATE FINANCIAL STATEMENTS.  If
any of the financial information required by this Agreement is not provided to
Lender within the time limits provided in this Agreement, Lender may, at its
option, charge a late fee to the defaulting party in an amount set by
Lender.  The imposition and payment of a
late fee shall not constitute a waiver of Lender’s rights with respect to the
default.

COMPLIANCE WITH LOAN DOCUMENTS. 
Borrower(s) acknowledge(s) and agree(s) that (its) (their) timely and
complete compliance with all of the terms and conditions contained in the documents
evidencing and securing the loan obligation is material consideration for the
loan.  Borrower(’s)(s’) failure to timely
and completely comply with each and every term and condition contained in the
documents evidencing and securing the loan is, at Lender’s option, an event of
default under the loan.  In addition to
all other rights and remedies Lender has, Lender may, in its sole discretion,
elect to waive such default or to forbear to exercise its rights and remedies
for such default and may charge Borrower(s) a fee for agreeing to do so.

GOVERNING LAW.  This
Document will be governed by and interpreted in accordance with federal law and
the laws of the State of Florida.

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ADDRESS FOR NOTICES.  Any
notice required to be given under this Note shall be given in writing, and
shall be effective when actually delivered, when actually received by
telefacsimile (unless otherwise required by law), when deposited with a
nationally recognized overnight courier, or, if mailed, when deposited in the
United States mail, as first class, certified or registered mail postage
prepaid, directed if to Borrower at the address shown near the beginning of
this Note and if to Lender at the address set forth below.  Any party may change its address for notices
under this Note by giving formal written notice to the other parties,
specifying that the purpose of the notice is to change the party’s
address.  For notice purposes, Borrower
agrees to keep Lender informed at all times of Borrower’s current address.  Unless otherwise provided or required by law,
if there is more than one Borrower, any notice given by Lender to any Borrower
is deemed to be notice given to all Borrowers. 
Notwithstanding anything to the contrary herein, all notices and communications
to the Lender shall be directed to the following address:

Bank
of America, N.A.

Jacksonville
CCS – Attn:  Notice Desk

9000
Southside Blvd., Bldg. 100, 3rd Floor

Jacksonville,
FL  32256

APPRAISALS. 
Borrower agrees to reimburse Lender for the cost of periodic appraisals
of any real or personal property collateral securing the indebtedness
hereunder, at such intervals as Lender may reasonably require.  The appraisals may be performed by employees
of Lender or by independent appraisers.

MAINTENANCE OF PRINCIPAL DEPOSIT
ACCOUNTS.  Borrower agrees to maintain its principal
deposit accounts with Lender.

USA PATRIOT ACT NOTICE. 
Federal law requires all financial institutions to obtain, verify and
record information that identifies each person who opens an account or obtains
a loan.  Lender will ask for the Borrower’s
legal name, address, tax ID number or social security number and other
identifying information.  Lender may also
ask for additional information or documentation or take other actions
reasonably necessary to verify the identity of the Borrower, guarantors or
other related persons.

SUCCESSOR INTERESTS.  The
terms of this Note shall be binding upon Borrower, and upon Borrower’s heirs,
personal representatives, successors and assigns, and shall inure to the benefit
of Lender and its successors and assigns.

GENERAL PROVISIONS.  If
any part of this Note cannot be enforced, this fact will not affect the rest of
the Note.  Borrower does not agree or
intend to pay, and Lender does not agree or intend to contract for, charge,
collect, take, reserve or receive (collectively referred to herein as “charge
or collect”), any amount in the nature of interest or in the nature of a fee
for this loan, which would in any way or event (including demand, prepayment,
or acceleration) cause Lender to charge or collect more for this loan than the
maximum Lender would be permitted to charge or collect by federal law or the
law of the State of Florida (as applicable). 
Any such excess interest or unauthorized fee shall, instead of anything
stated to the contrary, be applied first to reduce the principal balance of
this loan, and when the principal has been paid in full, be refunded to
Borrower.  Lender may delay or forgo
enforcing any of its rights or remedies under this Note without losing
them.  Borrower and any other person who
signs, guarantees or endorses this Note, to the extent allowed by law, waive
presentment, demand for payment, and notice of dishonor.  Upon any change in the terms of this Note,
and unless otherwise expressly stated in writing, no party who signs this Note,
whether as maker, guarantor, accommodation maker or endorser, shall be released
from liability.  All such parties agree
that Lender may renew or extend 
(repeatedly and for any length of time) this loan or release any party,
partner, or guarantor or collateral; or impair, fail to realize upon or perfect
Lender’s security interest in the collateral; and take any other action deemed
necessary by Lender without the consent of or notice to anyone.  All such parties also agree that Lender may
modify this loan without the consent of or notice to anyone other than the
party with whom the modification is made. 
The obligations under this Note are joint and several.

PRIOR TO
SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS
NOTE. BORROWER AGREES TO THE TERMS OF THE NOTE.

BORROWER ACKNOWLEDGES RECEIPT OF
A COMPELTED COPY OF THIS PROMISSORY NOTE.

BORROWER:

UNITED DEVELOPMENT COMPANY
LIMITED

	
  By 

  	
  /s/
  Richard L. Bailly

  	
   

  
	
  Richard L.
  Bailly, General Partner of United

  	
   

  	
   

  
	
  Development
  Company Limited

  	
   

  	
   

  
					

 

Florida Documentary Stamp Tax

Florida documentary stamp tax in
the amount required by law has been paid with respect to this Note on the
Modification of Mortgage securing this Note.

 4Exhibit 10.2

ACI WORLDWIDE, INC.

2005 Equity and Performance
Incentive Plan

(Amended
by the Stockholders July 24, 2007)

1.             PURPOSE.  The purpose of the 2005 Equity and
Performance Incentive Plan is to attract and retain directors, officers and
other employees for ACI Worldwide, Inc., a Delaware corporation, and its
Subsidiaries and to provide to such persons incentives and rewards for superior
performance.

2.                                       DEFINITIONS.  As used
in this Plan,

(a)           “Appreciation Right” means a right granted pursuant to Section
5 of this Plan, and will include both Tandem Appreciation Rights and
Free-Standing Appreciation Rights.

(b)           “Award” means any Option, Appreciation Right, Restricted
Stock, Restricted Stock Units, Performance Shares, Performance Units or Other
Awards granted under this Plan.

(c)           “Award Agreement” means an agreement, certificate, resolution
or other type or form of writing or other evidence approved by the Board that
sets forth the terms and conditions of the Awards granted.  An Award Agreement may be in an electronic
medium, may be limited to notation on the books and records of the Company and,
with the approval of the Board, need not be signed by a representative of the
Company or a Participant.

(d)           “Base Price” means the price to be used as the basis for
determining the Spread upon the exercise of a Free-Standing Appreciation Right
and a Tandem Appreciation Right.

(e)           “Board” means the Board of Directors of the Company and, to
the extent of any delegation by the Board to a committee (or subcommittee thereof)
pursuant to Section 16 of this Plan, such committee (or subcommittee).

(f)            “Code” means the Internal Revenue Code of 1986, as amended
from time to time, and includes a reference to the underlying final
regulations.  A reference to any
provision of the Code shall include reference to any successor provision of the
Code.

(g)           “Common Shares” means the shares of Class A Common Stock, par
value $.005 per share, of the Company or any security into which such
Common Shares may be changed by reason of any transaction or event of the type
referred to in Section 12 of this Plan.

(h)           “Company” means ACI Worldwide, Inc., a Delaware corporation
formerly known as Transaction Systems Architects, Inc.

(i)            “Covered Employee” means a Participant who is, or is
determined by the Board to be likely to become, a “covered employee” within the
meaning of Section 162(m) of the Code or any successor provision.

(j)            “Date of Grant” means the date specified by the Board on
which a grant of any Award under this Plan will become effective (which date
will not be earlier than the date on which the Board takes action with respect
thereto).

(k)            “Director” means a member of the Board of Directors of the
Company.

(l)             “Exchange Act” means the Securities Exchange Act of 1934, as
amended, and the rules and regulations thereunder, as such law, rules and
regulations may be amended from time to time.

(m)          “Free-Standing Appreciation Right” means an Appreciation
Right granted pursuant to Section 5 of this Plan that is not granted in tandem
with an Option.

(n)           “Incentive Stock Options” means Options that are intended to
qualify as “incentive stock options” under Section 422 of the Code or any
successor provision.

(o)            “Management Objectives” means the measurable performance
objective or objectives established pursuant to this Plan for Participants who
have received grants of Performance Shares or Performance Units or, when so
determined by the Board, Options, Appreciation Rights, Restricted Stock,
Restricted Stock Units, dividend credits and Other Awards pursuant to this
Plan.  Management Objectives may be
described in terms of Company-wide objectives or objectives that are related to
the performance of the individual Participant or of the Subsidiary, division,
department, region or function within the Company or Subsidiary in which the
Participant is employed.  The Management
Objectives may be made relative to the performance of other companies.  The Management Objectives applicable to any
Award to a Covered Employee will be based on specified levels of or growth in
one or more of the following criteria:

1.             cash flow/net assets ratio;

2.             debt/capital ratio;

3.             return on total capital;

4.             return on equity;

5.             earnings per share growth;

6.             revenue growth;

7.             total return to stockholders (which may be measured by
stock price);

8.             backlog; and

9.             contribution margins.

If
the Board determines that a change in the business, operations, corporate
structure or capital structure of the Company, or the manner in which it
conducts its business, or other events or circumstances render the Management
Objectives unsuitable, the Board may in its discretion modify such Management
Objectives or the related minimum acceptable level of achievement, in whole or
in part, as the Board deems appropriate and equitable, except in the case of a
Covered Employee where such action would result in the loss of the otherwise
available exemption of the Award under Section 162(m) of the Code.  In such case, the Board will not make any
modification of the Management Objectives or minimum acceptable level of
achievement with respect to such Covered Employee.

(p)           “Non-Employee Director” means a person who is a “non-employee
director” of the Company within the meaning of Rule 16b-3 of the Securities and
Exchange Commission promulgated under the Exchange Act.

(q)           “Market Value per Share” means, as of any particular date,
(i) the closing sale price (price for last trade) per Common Share  as reported on the principal exchange on
which Common Shares are then trading, if any, or, if applicable and provided
that the Common Shares are not then-traded on such principal exchange, the NASDAQ
Global Select Stock Market, or if there are no sales on such day, on the next
preceding trading day during which a sale occurred, or (ii) if clause (i) does
not apply, the fair market value of the Common Shares as determined by the
Board.

(r)            “Nonqualified Stock Option” means  an
Option that is not an Incentive Stock Option.

(s)           “Optionee” means the optionee named in an Award Agreement
evidencing an outstanding Option.

(t)            “Option Price” means the purchase price payable on exercise
of an Option.

(u)           “Option” means the right to purchase Common Shares upon
exercise of an option granted pursuant to Section 4 or Section 9 of this
Plan.  An Option may be either an Incentive
Stock Option or a Nonqualified Stock Option.

(v)           “Other Award” means an award or bonus granted under Section
10 of this Plan.

 2
 

(w)          “Participant” means a person who is selected by the Board to
receive benefits under this Plan and who is at the time an officer, or other
key employee of the Company or any one or more of its Subsidiaries, or who has
agreed to commence serving in any of such capacities within 90 days of the Date
of Grant, and will also include each Non- Employee Director who receives an Award
under this Plan.

(x)            “Performance Period” means, in respect of a Performance Share
or Performance Unit or Qualified Performance-Based Award, a period of time
established pursuant to Section 8 or Section 9, respectively, of this Plan
within which the Management Objectives relating to such Performance Share,
Performance Unit or Qualified Performance-Based Award are to be achieved.

(y)           “Performance Share” means a bookkeeping entry that records
the equivalent of one Common Share awarded pursuant to Section 8 or Section 9
of this Plan.

(z)            “Performance Unit” means a bookkeeping entry that records a
unit equivalent to $1.00 awarded pursuant to Section 8 or Section 9 of this
Plan.

(aa)         “Plan” means this ACI Worldwide, Inc. 2005 Equity and
Performance Incentive Plan, as amended.

(bb)         “Qualified Performance-Based Award” means an Award that is
either (i) intended to qualify for a Section 162(m) Exemption, and is made
subject to the performance of certain Management Objectives, or (ii) an Option
or Appreciation Right.

(cc)         “Restricted Stock” means Common Shares granted or sold
pursuant to Section 6 or Section 9 of this Plan as to which neither the
substantial risk of forfeiture nor the prohibition on transfers has expired.

(dd)         “Restriction Period” means the period of time during which
Restricted Stock Units are subject to deferral, a substantial risk of
forfeiture (based on the passage of time, the achievement of performance goals,
or upon the occurrence of other events as determined by the Board, in its
discretion) and other restrictions on transfer, as provided in Section 7 or
Section 9 of this Plan.

(ee)         “Restricted Stock Unit” means an award made pursuant to
Section 7 or Section 9 of this Plan of the right to receive Common Shares or
cash at the end of a specified period.

(ff)           “Section 162(m) Exemption” means the exemption from the
limitation on deductibility imposed by Section 162(m) of the Code or any
successor provision thereto.

(gg)         “Spread” means the excess of the Market Value per Share on
the date when an Appreciation Right is exercised, or on the date when Options
are surrendered in payment of the Option Price of other Options, over the
Option Price or Base Price provided for in the related Option or Appreciation
Right, respectively.

(hh)         “Subsidiary” means a corporation, company or other entity (i)
more than 50 percent of whose outstanding shares or securities (representing
the right to vote for the election of directors or other managing authority)
are, or (ii) which does not have outstanding shares or securities (as may be
the case in a partnership, joint venture or unincorporated association), but
more than 50 percent of whose ownership interest representing the right
generally to make decisions for such other entity is, now or hereafter, owned
or controlled, directly or indirectly, by the Company; except that, for
purposes of determining whether any person may be a Participant for purposes of
any grant of Incentive Stock Options, “Subsidiary”
means any corporation in which at the time the Company owns or controls,
directly or indirectly, more than 50 percent of the total combined voting power
represented by all classes of stock issued by such corporation.

(ii)           “Tandem Appreciation Right” means an Appreciation Right
granted pursuant to Section 5 of this Plan that is granted in tandem with an
Option.

 3
 

3.                                       SHARES AVAILABLE UNDER THE PLAN.

(a)           Number of Shares. 
Subject to adjustment as provided in Section 3(b) and Section 12 of this
Plan, the maximum number of Common Shares that may be issued or transferred to
Participants and their beneficiaries in connection with Awards granted under
the Plan shall be equal to the sum of: (i) 5,000,000  Common
Shares plus any shares described in Section 3(b), and (ii) any Common Shares
that are represented by options granted under the following Company plans which
are forfeited, expire or are canceled without delivery of Common Shares or
which result in the forfeiture or relinquishment of Common Shares back to the
Company: (A) the 1994 Stock Option Plan, as amended, (B) the 1996 Stock Option
Plan, (C) the 1997 Management Stock Option Plan, (D) the 2000 Non-Employee
Director Stock Option, (E) the MessagingDirect Ltd. Amended and Restated
Employee Share Option Plan and (F) the 2002 Non-Employee Director Stock Option
Plan, as amended (collectively the “Prior Plans”).  Such shares may be shares of original
issuance or treasury shares or a combination of the foregoing.

(b)           Share Calculation.

(i)            To the extent that an Award is canceled, terminates,
expires, is forfeited or lapses for any reason, any unissued Common Shares
subject to the Award will again be available for issuance pursuant to Awards
granted under this Plan.

(ii)           Common Shares subject to Awards settled in cash will again
be available for issuance pursuant to Awards granted under this Plan.

(iii)          Shares surrendered or relinquished upon the payment of any
Option Price for Options granted under this Plan or any of the Prior Plans by
transfer to the Company of Common Shares or upon satisfaction of any
withholding amount will again be available for issuance pursuant to Awards
granted under this Plan.

(iv)          The number of shares available in Section 3(a) shall not be
reduced to reflect any dividends or dividend equivalents that are reinvested
into additional Common Shares or credited as additional Restricted Stock,
Restricted Stock Units, Performance Shares or Performance Units.

(v)           If, under this Plan, a Participant has given up the right
to receive compensation in exchange for Common Shares based on fair market
value, such Common Shares will not count against the number of shares available
in Section 3(a) above.

(c)           Individual Limits. 
Notwithstanding anything in this Section 3, or elsewhere in this Plan to
the contrary and subject to adjustment as provided in Section 12 of this Plan:

(i)            the aggregate number of Common Shares actually issued or
transferred by the Company upon the exercise of Incentive Stock Options will
not exceed 3,000,000 Common Shares;

(ii)           no Participant will be granted Options, Appreciation
Rights, Restricted Stock, Restricted Stock Units, or Other Awards this Plan
during the life of the Plan, in the aggregate, for more than 1,000,000 Common Shares during any
calendar year; and

(iii)          notwithstanding
any other provision of this Plan to the contrary, in no event will any
Participant in any calendar year receive an award of Performance Shares or
Performance Units having an aggregate maximum value as of their respective
Dates of Grant in excess of $5,000,000.

4.             OPTIONS.  The Board
may, from time to time and upon such terms and conditions as it may determine,
authorize the granting to Participants of Options to purchase Common
Shares.  Each such grant may utilize any
or all of the authorizations, and will be subject to all of the requirements
contained in the following provisions:

 4
 

(a)           Type of Options and Eligibility.  Options granted under this Plan may be (i)
Incentive Stock Options (ii) Nonqualified Stock Options, or (iii) combinations
of the foregoing.  Incentive Stock
Options may only be granted to Participants who meet the definition of “employees”
under Section 3401(c) of the Code.

(b)           Number of Shares. 
Each grant will specify the number of Common Shares to which it pertains
subject to the limitations set forth in Section 3 of this Plan.

(c)           Exercise Price.  Each
grant will specify an Option Price per share, which may not be less than the Market Value per Share on the Date of
Grant.

(d)           Exercise Terms and Expiration.  An
Option will be exercisable in accordance with such terms and conditions and
during such periods established by the Board and set forth in the Award
Agreement; provided, however, no Option will be exercisable more than 10 years
from the Date of Grant.

(e)           Special Terms for Incentive Stock Options.

(i)            Notwithstanding anything contained herein to the contrary,
the aggregate Market Value per Share with respect to which Incentive Stock
Options are exercisable for the first time by a Participant during any calendar
year (under all incentive stock option plans of the Company or any Subsidiary)
shall not exceed $100,000 or such other limit set forth in the Code, as
amended.

(ii)           No Incentive Stock Option shall be granted to an employee
who, at the time the Incentive Stock Option is granted, owns (actually or
constructively under the provisions of Section 424(d) of the Code) stock
possessing more than 10% of the total combined voting power of all classes of
stock of the Company or any Subsidiary, unless the Option Price is at least
110% of the Market Value per Share (determined as of the time the Incentive
Stock Option is granted) of Common Shares subject to the Incentive Stock Option
and the Incentive Stock Option by its terms is not exercisable more than five
(5) years from the Date of Grant.

(iii)          To the extent that any provision of this Plan would prevent
any Option that was intended to qualify as an Incentive Stock Option from
qualifying as such, that provision will be null and void with respect to such
Option.  Such provision, however, will
remain in effect for other Options and there will be no further effect on any
provision of this Plan.

(f)            Payment.

(i)            Each grant will specify whether the Option Price will be
payable (i) in cash or by check acceptable to the Company or by wire transfer
of immediately available funds, (ii) by the actual or constructive transfer to
the Company of Common Shares owned by the Optionee for at least 6 months (or
other consideration authorized pursuant to Section 4(f)(ii)) having a value at
the time of exercise equal to the total Option Price, or (iii) by a combination
of such methods of payment.

(ii)           The Board may determine, at or after the Date of Grant,
that payment of the Option Price of any Nonqualified Stock Option may also be
made in whole or in part in the form of Restricted Stock or other Common Shares
that are forfeitable or subject to restrictions on transfer, or in the form of
Restricted Stock Units, Performance Shares (based, in each case, on the Market
Value per Share on the date of exercise), other Options (based on the Spread on
the date of exercise) or Performance Units. 
Unless otherwise determined by the Board at or after the Date of Grant,
whenever any Option Price is paid in whole or in part by means of any of the
forms of consideration specified in this Section 4(f)(ii), the Common Shares
received upon the exercise of the Options will be subject to such risks of
forfeiture or restrictions on transfer as may correspond to any that apply to
the consideration surrendered, but only to the extent, determined with respect
to the consideration surrendered, of (A) the number of shares or Performance
Shares, (B) the Spread of any unexercisable portion of Options, or (C) the
stated value of Performance Units.

 5
 

(iii)          The Board reserves the discretion at or after the Date of
Grant to provide for (a) the payment of a cash bonus at the time of exercise;
(b) the availability of a loan at exercise; and (c) the right to tender in
satisfaction of the Option Price nonforfeitable, unrestricted Common Shares,
which are already owned by the Optionee and have a value at the time of exercise
that is equal to the Option Price.

(iv)          To the extent permitted by law, any
grant may provide for deferred payment of the Option Price from the proceeds of
sale through a bank or broker on a date satisfactory to the Company of some or
all of the shares to which such exercise relates.

(g)           General.

(i)            Successive
grants may be made to the same Participant whether or not any Options
previously granted to such Participant remain unexercised.

(ii)           Each
grant will specify the period or periods of continuous service by the Optionee
with the Company or any Subsidiary that is necessary before the Options or
installments thereof will become exercisable and may provide for the earlier
exercise of such Options in the event of the termination of the Optionee’s
employment for any reason or a change in control of the Company, as may be
defined in an Award Agreement.

(iii)          The
exercise of an Option will result in the cancellation on a share- for-share
basis of any Tandem Appreciation Right authorized under Section 5 of this Plan.

(iv)          Any
grant of Options may specify Management Objectives that must be achieved as a
condition to the exercise of such rights.

(h)           Award Agreement.  Each
grant of Options will be evidenced by an Award Agreement and will contain such
terms and provisions, consistent with this Plan, as the Board may approve.

5.                                       APPRECIATION RIGHTS.

(a)           Types of Appreciation Rights.  The
Board may authorize the granting of (i) Tandem Appreciation Rights in respect
of Options granted hereunder to any Optionee, and (ii) Free-Standing
Appreciation Rights to any Participant. 
Each grant of Appreciation Rights may utilize any or all of the
authorizations, and will be subject to all of the requirements, contained in
the following provisions.

(b)           Tandem Appreciation Rights.   A “Tandem Appreciation Right”
will be a right of the Optionee, exercisable by surrender of the related
Option, to receive from the Company an amount determined by the Board, which
will be expressed as a percentage of the Spread (not exceeding 100 percent) at
the time of exercise.  Tandem
Appreciation Rights may be granted at any time prior to the exercise or
termination of the related Options; provided, however, that a Tandem
Appreciation Right awarded in relation to an Incentive Stock Option must be
granted concurrently with such Incentive Stock Option.

(i)            Any grant of Tandem Appreciation
Rights will provide that such Tandem Appreciation Rights may be exercised only
at a time when the related Option is also exercisable and at a time when the
Spread is positive, and by surrender of the related Option for cancellation.

(c)           Free-Standing Appreciation Rights.  A “Free-Standing Appreciation
Right” will be a right of the Participant to receive from the
Company an amount determined by the Board, which will be expressed as a
percentage of the Spread (not exceeding 100 percent) at the time of exercise.

(i)            Each
grant will specify in respect of each Free-Standing Appreciation Right a Base
Price, which will be equal to or greater than the Market Value per Share on the
day immediately preceding the Date of Grant;

 6
 

(ii)           Successive grants may be made to the
same Participant regardless of whether any Free-Standing Appreciation Rights
previously granted to the Participant remain unexercised; and

(iii)          No Free-Standing Appreciation Right
granted under this Plan may be exercised more than 10 years from the Date of
Grant.

(d)           Payment.

(i)            Any
grant may specify that the amount payable on exercise of an Appreciation Right
may be paid by the Company in cash, in Common Shares or in any combination
thereof and may either grant to the Participant or retain in the Board the
right to elect among those alternatives.

(ii)           Any grant may specify that the amount payable on exercise
of an Appreciation Right may not exceed a maximum specified by the Board at the
Date of Grant.

(e)           General.

(i)            Any
grant may specify waiting periods before exercise and permissible exercise
dates or periods.

(ii)           Any grant may specify that such
Appreciation Right may be exercised only in the event of, or earlier in the
event of, a change in control of the Company, as may be defined in an Award
Agreement.

(iii)          Any grant of Appreciation Rights may
specify Management Objectives that must be achieved as a condition of the
exercise of such Appreciation Rights.

(f)            Award Agreement.  Each
grant of Appreciation Rights will be evidenced by an Award Agreement, which
Award Agreement will describe such Appreciation Rights, identify the related
Options (if applicable), and contain such other terms and provisions,
consistent with this Plan, as the Board may approve.

6.                             RESTRICTED STOCK.  The
Board may also authorize the grant or sale of Restricted Stock to Participants.
Each such grant or sale may utilize any or all of the authorizations, and will
be subject to all of the requirements, contained in the following provisions.

(a)           Ownership.  Each
such grant or sale will constitute an immediate transfer of the ownership of
Common Shares to the Participant in consideration of the performance of
services, entitling such Participant to voting, dividend and other ownership
rights, but subject to the substantial risk of forfeiture and restrictions on
transfer hereinafter referred to.

(b)           Consideration.  Each
such grant or sale may be made without additional consideration or in
consideration of a payment by such Participant that is less than the Market
Value per Share at the Date of Grant.

(c)                                  Substantial
Risk of Forfeiture.

(i)            Each such grant or sale will provide
that the Restricted Stock covered by such grant or sale will be subject to a “substantial
risk of forfeiture” within the meaning of Section 83 of the Code for a period
of not less than one year to be determined by the Board at the Date of Grant and may
provide for the earlier lapse of such substantial risk of forfeiture in the
event of a change in control of the Company, as may be defined in an Award
Agreement.

(ii)           Each such grant or sale will provide
that during the period for which such substantial risk of forfeiture is to
continue, the transferability of the Restricted Stock will be prohibited or
restricted in the manner and to the extent prescribed by the Board at the Date
of Grant (which restrictions may include, without limitation, rights of
repurchase or first refusal in the Company or provisions 

 7
 

subjecting the Restricted Stock to a
continuing substantial risk of forfeiture in the hands of any transferee).

(d)                                 General.

(i)            Any grant of Restricted Stock may specify Management
Objectives that, if achieved, will result in termination or early termination
of the restrictions applicable to such Restricted Stock.  Each grant may specify in respect of such
Management Objectives a minimum acceptable level of achievement and may set
forth a formula for determining the number of shares of Restricted Stock on
which restrictions will terminate if performance is at or above the minimum
level, but falls short of full achievement of the specified Management
Objectives.

(ii)           Unless otherwise directed by the Board, all certificates
representing shares of Restricted Stock will be held in custody by the Company
until all restrictions thereon will have lapsed, together with a stock power or
powers executed by the Participant in whose name such certificates are
registered, endorsed in blank and covering such Shares.

(e)           Award Agreement.  Each
grant or sale of Restricted Stock will be evidenced by an Award Agreement and
will contain such terms and provisions, consistent with this Plan, as the Board
may approve.

7.             RESTRICTED
STOCK UNITS.  The Board may
also authorize the granting or sale of Restricted Stock Units to
Participants.  Each such grant or sale
may utilize any or all of the authorizations, and will be subject to all of the
requirements contained in the following provisions.

(a)           Payment.

(i)            Each such grant or sale will constitute the agreement by
the Company to deliver Common Shares or cash to the Participant in the future
in consideration of the performance of services, but subject to the fulfillment
of such conditions during the Restriction Period as the Board may specify.

(ii)           Each such grant or sale may be made without additional
consideration or in consideration of a payment by such Participant that is less
than the Market Value per Share at the Date of Grant.

(b)           Restriction Period.

(i)            Each such grant or sale will be
subject to a Restriction Period of not less than one year, as determined by the
Board at the Date of Grant, and may provide for the earlier lapse or other
modification of such Restriction Period in the event of a change in control of
the Company, as may be defined in an Award Agreement.

(ii)           During the Restriction Period, the
Participant will have no right to transfer any rights under his or her Award
and will have no rights of ownership in the Restricted Stock Units and will
have no right to vote them.

(c)           Award Agreement.  Each
grant or sale of Restricted Stock Units will be evidenced by an Award Agreement
and will contain such terms and provisions, consistent with this Plan, as the
Board may approve.

8.             PERFORMANCE SHARES AND PERFORMANCE UNITS.  The Board may also authorize the granting of
Performance Shares and Performance Units that will become payable to a
Participant upon achievement of specified Management Objectives during the
Performance Period.  Each such grant may
utilize any or all of the authorizations, and will be subject to all of the
requirements, contained in the following provisions.

 8
 

(a)           Shares and Units. 
Each grant will specify the number of Performance Shares or Performance
Units to which it pertains, which number may be subject to adjustment to
reflect changes in compensation or other factors; provided, however, that no
such adjustment will be made in the case of a Covered Employee where such
action would result in the loss of the otherwise available exemption of the
Award under Section 162(m) of the Code.

(b)           Performance Period.  The
Performance Period with respect to each Performance Share or Performance Unit
will be such period of time (not less than one year), commencing with the Date of Grant as will be determined
by the Board at the time of grant, which may be subject to earlier lapse or
other modification in the event of a change in control of the Company, as may
be defined in an Award Agreement.

(c)           Achievement of Management Objectives. 
Any grant of Performance Shares or Performance Units will
specify Management Objectives which, if achieved, will result in payment or
early payment of the Award, and each grant may specify in respect of such
specified Management Objectives a minimum acceptable level of achievement and
will set forth a formula for determining the number of Performance Shares or
Performance Units that will be earned if performance is at or above the minimum
level, but falls short of full achievement of the specified Management
Objectives.  The grant of Performance
Shares or Performance Units will specify that, before the Performance Shares or
Performance Units will be earned and paid, the Board must certify that the
Management Objectives have been satisfied.

(d)           Payment.

(i)            Each grant will specify the time and manner of payment of
Performance Shares or Performance Units that have been earned.

(ii)           Any grant may specify that the amount payable with respect
thereto may be paid by the Company in cash, in Common Shares or in any
combination thereof and may either grant to the Participant or retain in the
Board the right to elect among those alternatives.

(iii)          Any grant of Performance Shares or Performance Units  may specify that the amount payable or the
number of Common Shares issued with respect thereto may not exceed a maximum
specified by the Board at the Date of Grant.

(e)           Award Agreement.  Each
grant of Performance Shares or Performance Units will be evidenced by an Award
Agreement and will contain such other terms and provisions, consistent with
this Plan, as the Board may approve.

9.             AWARDS TO
NON-EMPLOYEE DIRECTORS.  The
Board may authorize the grant or sale of any Award available under this Plan to
Non-Employee Directors, from time to time, upon such terms and conditions as it
may determine and subject to the terms and conditions pertaining to the type of
Award granted, as described in this Plan.

(a)           Payment for Options. 
Options may be exercised by a Non-Employee Director only upon payment to
the Company in full of the Option Price of the Common Shares to be
delivered.  Such payment will be made in
cash or in Common Shares then owned by the Optionee for at least six months, or
in a combination of cash and such Common Shares.

(b)           Employee Status.  If a
Non-Employee Director subsequently becomes an employee of the Company or a
Subsidiary while remaining a member of the Board, any Options held under the
Plan by such individual at the time of such commencement of employment will not
be affected thereby.

(c)           Director Compensation Substitution. 
Non-Employee Directors, pursuant to this Section 9, may be
awarded, or may be permitted to elect to receive, pursuant to procedures
established by the Board, all or any portion of their annual retainer, meeting
fees or other fees in Common Shares in lieu of cash.

 9
 

(d)           Award Agreement.  Each
grant of Awards pursuant to this Section 9 will be evidenced by an Award
Agreement and will contain such other terms and provisions, consistent with
this Plan, as the Board may approve.

10.                                 OTHER AWARDS.

(a)           Other Awards.  The
Board may, subject to limitations under applicable law, grant to any
Participant such other awards that may be denominated or payable in, valued in
whole or in part by reference to, or otherwise based on, or related to, Common
Shares or factors that may influence the value of such shares, including,
without limitation, convertible or exchangeable debt securities, other rights
convertible or exchangeable into Common Shares, purchase rights for Common
Shares, Awards with value and payment contingent upon performance of the
Company or specified Subsidiaries, affiliates or other business units thereof
or any other factors designated by the Board, and Awards valued by reference to
the book value of Common Shares or the value of securities of, or the
performance of specified Subsidiaries or affiliates or other business units of
the Company.  The Board shall determine
the terms and conditions of such Other Awards. 
Common Shares delivered pursuant to an Award in the nature of a purchase
right granted under this Section 10 shall be purchased for such consideration,
paid for at such time, by such methods, and in such forms, including, without
limitation, cash, Common Shares, other awards, notes or other property, as the
Board shall determine.

(b)           Cash Awards.  Cash
awards, as an element of or supplement to any other award granted under this
Plan, may also be granted pursuant to this Section 10.

(c)           Share Bonus.  The
Board may grant Common Shares as a bonus, or may grant other awards in lieu of
obligations of the Company or a Subsidiary to pay cash or deliver other
property under this Plan or under other plans or compensatory arrangements,
subject to such terms as shall be determined by the Board.

11.                                 TRANSFERABILITY.

(a)           Limits on Transferability.  Except
for transfers of Awards to the Company pursuant to Section 4(f)(ii), or as
provided in Section 11(b) below, no Option, Appreciation Right or other
derivative security granted under the Plan shall be transferable by the
Participant except by will or the laws of descent and distribution or, except with respect to an Incentive
Stock Option, pursuant to a domestic relations order (within the meaning of
Rule 16a-12 promulgated under the Exchange Act).  Except as otherwise determined by the Board,
Options and Appreciation Rights will be exercisable during the Participant’s
lifetime only by him or her or, in the event of the Participant’s legal
incapacity to do so, by his or her guardian or legal representative acting on
behalf of the Participant in a fiduciary capacity under state law and/or court supervision.

(b)           Beneficiary Designations.

(i)            Notwithstanding Section 11(a) above, an Option,
Appreciation Right or other derivative security granted under the Plan may be
transferable upon the death of the Participant, without payment of
consideration therefor, to any one or more family members (as defined in the
General Instructions to Form S-8 under the Securities Act of 1933) of the
Participant, as may have been designated in writing by the Participant by means
of a form of beneficiary designation approved by the Company.  Such beneficiary designation may be made at
any time by the Participant and shall be effective when it is filed, prior to
the death of the Participant, with the Company. 
Any beneficiary designation may be changed by the filing of a new
beneficiary designation, which will cancel any beneficiary designation
previously filed with the Company.

(ii)           Notwithstanding Section 11(a) above,
an Option, Appreciation Right or other derivative security
granted under the Plan may be transferable by
the Participant without payment of consideration therefor, to any one or more
family members (as defined in the General Instructions to Form S-8 under the
Securities Act of 1933) of the Participant; provided, however,
that such transfer will 

 10
 

not be effective until notice of
such transfer is delivered to the Company; and provided, further,
however, that any such transferee is subject to the same terms and
conditions hereunder as the Participant.

(c)           Additional Restrictions on Transfer.  The Board may specify at
the Date of Grant that part or all of the Common Shares that are (i) to be
issued or transferred by the Company upon the exercise of Options or
Appreciation Rights, upon the termination of the Restriction Period applicable
to Restricted Stock Units or upon payment under any grant of Performance Shares
or Performance Units or (ii) no longer subject to the substantial risk of
forfeiture and restrictions on transfer referred to in Section 6 of this Plan,
will be subject to further restrictions on transfer.

12.           ADJUSTMENTS.

(a)           Outstanding Awards.  The
Board may make or provide for such adjustments in the number of Common Shares
covered by outstanding Options, Appreciation Rights, Restricted Stock Units,
and Performance Shares granted hereunder and, if applicable, in the number of
Common Shares covered by Other Awards, in the Option Price and Base Price
provided in outstanding Options and Appreciation Rights, and in the kind of
shares covered thereby, as the Board, in its sole discretion, exercised in good
faith, may determine is equitably required to prevent dilution or enlargement
of the rights of Participants or Optionees that otherwise would result from (a)
any stock dividend, stock split, combination of shares, recapitalization,
reclassification or other change in the capital structure of the Company, or
(b) any merger, consolidation, spin-off, split- off, spin-out, split-up,
reorganization, partial or complete liquidation or other distribution of
assets, issuance of rights or warrants to purchase securities, or (c) any other
corporate transaction or event having an effect similar to any of the
foregoing.  Moreover, in the event of any
such transaction or event, the Board, in its discretion, may provide in
substitution for any or all outstanding Awards under this Plan such alternative
consideration as it, in good faith, may determine to be equitable in the
circumstances and may require in connection therewith the surrender of all
Awards so replaced.

(b)           Share Limitations.  The
Board may also make or provide for such adjustments in the number and kind of
Common Shares specified in Section 3 of this Plan as the Board in its sole
discretion, exercised in good faith, may determine is appropriate to reflect
any transaction or event described in this Section 12; provided, however, that
any such adjustment to the number specified in Section 3(c)(i) will be made
only if and to the extent that such adjustment would not cause any Option
intended to qualify as an Incentive Stock Option to fail so to qualify.

13.           FRACTIONAL SHARES.  The Company will not be required to issue any
fractional Common Shares pursuant to this Plan. 
The Board may provide for the elimination of fractions or for the
settlement of fractions in cash.

14.           WITHHOLDING TAXES.  To the extent that the Company is required to
withhold federal, state, local or foreign taxes in connection with any payment
made or benefit realized by a Participant or other person under this Plan, and
the amounts available to the Company for such withholding are insufficient, it
will be a condition to the receipt of such payment or the realization of such
benefit that the Participant or such other person make arrangements
satisfactory to the Company for payment of the balance of such taxes required
to be withheld, which arrangements (in the discretion of the Board) may include
relinquishment of a portion of such benefit.

15.           FOREIGN EMPLOYEES.  In order to facilitate the making of any
grant or combination of grants under this Plan, the Board may provide for such
special terms for Awards to Participants who are foreign nationals or who are
employed by the Company or any Subsidiary outside of the United States of
America or who provide services to the Company under an agreement with a
foreign nation or agency, as the Board may consider necessary or appropriate to
accommodate differences in local law, tax policy or custom.  Moreover, the Board may approve such
supplements to or amendments, restatements or alternative versions of this Plan
as it may consider necessary or appropriate for such purposes, without thereby
affecting the terms of this Plan as in effect for any other purpose, and the
Secretary or other appropriate officer of the Company may certify any such
document as having been approved and adopted in the same manner as this Plan.  No such special terms, supplements,
amendments or 

 11
 

restatements,
however, will include any provisions that are inconsistent with the terms of
this Plan as then in effect unless this Plan could have been amended to
eliminate such inconsistency without further approval by the stockholders of
the Company.

16.           ADMINISTRATION OF THE
PLAN.

(a)           Board or Committee.  This
Plan will be administered by the Board, which may from time to time delegate
all or any part of its authority under this Plan to the Compensation Committee of
the Board (or a subcommittee thereof), as constituted from time to time;
provided, however, such committee shall consist of two or more members of the
Board, all of whom shall qualify as an “outside director” pursuant to Section
162(m) of the Code and a “Non-Employee Director.”  To the extent of any such delegation,
references in this Plan to the Board will be deemed to be references to such
committee or subcommittee.  A majority of
the committee (or subcommittee) will constitute a quorum, and the action of the
members of the committee (or subcommittee) present at any meeting at which a
quorum is present, or acts unanimously approved in writing, will be the acts of
the committee (or subcommittee).

(b)           Interpretation and Construction. 
The interpretation and construction by the Board of any
provision of this Plan or of any agreement, notification or document evidencing
the grant of Options, Appreciation Rights, Restricted Stock, Restricted Stock
Units, Performance Shares, Performance Units or Other Awards and any
determination by the Board pursuant to any provision of this Plan or of any
such agreement, notification or document will be final and conclusive.  No member of the Board will be liable for any
such action or determination made in good faith.

(c)           Delegation.  The Board
or, to the extent of any delegation as provided in Section 16(a), the
committee, may delegate to one or more of its members or to one or more
officers of the Company, or to one or more agents or advisors, such
administrative duties or powers as it may deem advisable, and the Board, the
committee, or any person to whom duties or powers have been delegated as
aforesaid, may employ one or more persons to render advice with respect to any
responsibility the Board, the committee or such person may have under the
Plan.  The Board or the committee may, by
resolution, authorize one or more officers of the Company to do one or both of
the following on the same basis as the Board or the committee: (i) designate
employees to be recipients of Awards under this Plan; and (b) determine the
size of any such Awards; provided, however, that (A) the Board or
the Committee shall not delegate such responsibilities to any such officer for
Awards granted to an employee who is an officer, Director, or more than 10%
beneficial owner of any class of the Company’s equity securities that is
registered pursuant to Section 11 of the Exchange Act, as determined by the
Board in accordance with Section 16 of the Exchange Act; (B) the resolution
providing for such authorization sets forth the total number of Common Shares
such officer(s) may grant; and (iii) the officer(s) shall report periodically
to the Board or the committee, as the case may be, regarding the nature and
scope of the Awards granted pursuant to the authority delegated.

(d)           No Other Awards. 
The terms of the Plan govern all Awards granted under the
Plan, and in no event will the Board have the power to grant any Award under
the Plan that is contrary to any of the provisions of the Plan.

17.                                 AMENDMENTS.

(a)           Right to Amend the Plan.  The
Board may at any time and from time to time amend the Plan in whole or in part;
provided, however, that any amendment which must be approved by
the stockholders of the Company in order to comply with applicable law or the
rules of the NASDAQ Stock Market’s National Market or, if the Common Shares are not traded on the NASDAQ Stock
Market’s National Market, the principal national securities exchange upon which
the Common Shares are traded or quoted, will not be effective unless and until
such approval has been obtained.

(b)           No Re-Pricing of Options.  The Board will not, without the further approval of the stockholders of
the Company, authorize the amendment of any outstanding Option to reduce the
Option Price.  Furthermore, no Option
will be cancelled and replaced with Awards having a lower Option Price without
further approval of the stockholders of the Company.  This Section 17(b) is intended to prohibit 

 12
 

the repricing of “underwater”
Options and will not be construed to prohibit the adjustments provided for in
Section 12 of this Plan.

(c)           Amendments to Awards. 
The Board may amend the terms of any Award theretofore granted under
this Plan prospectively or retroactively, but subject to Section 12 above, no
such amendment shall impair the rights of any holder without his or her
consent.

18.           ACCELERATION OF VESTING UPON TERMINATION OF
EMPLOYMENT.  In case of
termination of employment by reason of death, disability or normal or early
retirement, or in the case of an unforeseeable emergency or other special
circumstances, of a Participant who holds an Option or Appreciation Right not
immediately exercisable in full, or any shares of Restricted Stock as to which
the substantial risk of forfeiture or the prohibition or restriction on transfer
has not lapsed, or any Restricted Stock Units as to which the Restriction
Period has not been completed, or any Performance Shares or Performance Units
which have not been fully earned, or any Other Awards subject to any vesting
schedule or transfer restriction, or who holds Common Shares subject to any
transfer restriction imposed pursuant to Section 11(b) of this Plan, the Board
may, in its sole discretion, accelerate the time at which such Option,
Appreciation Right or Other Award may be exercised or the time at which such
substantial risk of forfeiture or prohibition or restriction on transfer will
lapse or the time when such Restriction Period will end or the time at which
such Performance Shares or Performance Units will be deemed to have been fully
earned or the time when such transfer restriction will terminate or may waive
any other limitation or requirement under any such Award.

19.           GOVERNING LAW.  The
Plan and all Awards, grants and actions taken thereunder shall be governed by
and construed in accordance with the internal substantive laws of the State of
Delaware.

20.           TERMINATION OF THE PLAN. 
The Plan shall be effective as of the date it is approved by both the
Board and the stockholders of the Company. The Board may, in its discretion,
terminate this Plan at any time.  No
grant will be made under this Plan more than 10 years after the date on which
this Plan is first approved by the stockholders of the Company, but all grants
made on or prior to such date will continue in effect thereafter subject to the
terms thereof and of this Plan. 
Termination of this Plan will not affect the rights of Participants or
their successors under any Awards outstanding hereunder and not exercised in
full on the date of termination.

21.           PROVISIONS APPLICABLE TO ALL AWARDS.

(a)           Dividends and Dividend Equivalents.

(i)            The Board may, at or after the Date
of Grant of an Award (other than Incentive Stock Options), provide the
Participant the right to receive dividends or dividend equivalents which may be
either paid on a current, deferred or contingent basis or credited to an
account for the Participant.

(ii)           With respect to Restricted Stock, the
Board may require that any or all dividends or other distributions paid thereon
during the period of time for which such Restricted Stock is subject to
substantial risk of forfeiture or other transfer restriction be automatically
deferred and reinvested in additional shares of Restricted Stock, which may be
subject to the same restrictions as the underlying Restricted Stock.

(iii)          Any dividends or dividend equivalents
may be settled in cash, Common Shares or a combination of both as determined in
the Board’s sole discretion.

(b)           Deferrals.  The Board
may permit Participants to elect to defer the issuance of Common Shares or the
settlement of Awards in cash under the Plan pursuant to such rules, procedures
or programs as it may establish for purposes of this Plan.  The Board also may provide that deferred
issuances and settlements include the payment or crediting of dividend equivalents
or interest on the deferral amounts.

 13
 

(c)           Surrender or Deferral of Compensation. 
The Board may condition the grant of any Award or combination
of Awards authorized under this Plan on the surrender or deferral by the
Participant of his or her right to receive a cash bonus or other compensation
otherwise payable by the Company or a Subsidiary to the Participant.

(d)           Qualified
Performance-Based Awards.

(i)            The provisions of the Plan are
intended to ensure that all Options and Appreciation Rights granted hereunder
to any Covered Employee shall qualify for the Section 162(m) Exemption;
provided that the Option Price or Base Price of such Award is not less than the
Market Value per Share on the Date of Grant. In addition to Performance Shares
and Performance Units, when granting any other Award, the Board may designate
such Award as a Qualified Performance-Based Award, based upon a determination
that the recipient is or may be a Covered Employee with respect to such Award,
and the Board wishes such Award to qualify for the Section 162(m)
Exemption. If an Award is so designated, the Board shall establish Management
Objectives for such Award within the time period prescribed by
Section 162(m) of the Code.

(ii)           Each Qualified Performance-Based
Award (other than an Option or Appreciation Right shall be earned, vested and
payable (as applicable) only upon the achievement of the Management Objectives
established by the Board, together with the satisfaction of any other
conditions as the Board may determine to be appropriate.

(iii)          The Board may provide, in its sole and absolute discretion,
either in connection with the grant thereof or by amendment thereafter, that
achievement of the Management Objectives will be waived upon the death or
disability of the Participant, or upon a change in control of the Company, as
may be defined in the Award Agreement. Performance periods established by the
Board for any such Qualified Performance-Based Award may not be less than one
year from the Date of Grant.

(iv)          Any payment of a Qualified Performance-Based Award granted
with Management Objectives pursuant to this Plan shall be conditioned on the
written certification of the Board in each case that the Management Objectives
and any other material conditions were satisfied.

(v)           Sections 3(c)(ii) and (iv) set forth
the maximum number of Common Shares or dollar value that may be granted in any
one-year period to a Participant in designated forms of Qualified
Performance-Based Awards.

(vi)          Any grant of an Award intended to
qualify as a Qualified Performance-Performance-based Award will specify
Management Objectives which, if achieved, will result in payment or early
payment of the Award, and each grant may specify in respect of such specified
Management Objectives a minimum acceptable level of achievement and will set
forth a formula for determining the number of shares or units that will be
earned if performance is at or above the minimum level, but falls short of full
achievement of the specified Management Objectives.  The grant of a Qualified Performance-based
Award will specify that, before the Qualified Performance-based Award will be
earned and paid, the Board must certify that the Management Objectives have
been satisfied.

(e)           Forfeiture Events. 
The Board may specify in an Award Agreement that the
Participant’s rights, payments and benefits with respect to an Award shall be
subject to reduction, cancellation, forfeiture or recoupment upon the
occurrence of certain specified events, in addition to any otherwise applicable
vesting or performance conditions of an Award. Such events shall include, but
shall not be limited to, termination of employment for cause, violation of
material Company or Subsidiary policies, violation of ethical codes or other
codes of conduct, breach of noncompetition, confidentiality or other
restrictive covenants that may apply to the Participant, or other conduct by
the Participant that is detrimental to the business or reputation of the
Company or any Subsidiary.

 14
 

22.                                 GENERAL PROVISIONS.

(a)           No Rights to Awards; Non Uniform Awards.  No Participant or any eligible
Participant shall have any claim to be granted any Award under the Plan.
Neither the Company, its Subsidiaries nor the Board is obligated to treat
Participants or eligible Participants uniformly, and determinations made under
the Plan may be made by the Board selectively among eligible Participants who
receive, or are eligible to receive, Awards (whether or not such eligible
Participants are similarly situated).

(b)           No Exercises Contrary to Law.  No
Award under this Plan may be exercised by the holder thereof if such exercise,
and the receipt of cash or stock thereunder, would be, in the opinion of
counsel selected by the Board, contrary to law or the regulations of any duly
constituted authority having jurisdiction over this Plan.

(c)           No Right to Employment.  This
Plan will not confer upon any Participant any right with respect to continuance
of employment or other service with the Company or any Subsidiary, nor will it
interfere in any way with any right the Company or any Subsidiary would
otherwise have to terminate such Participant’s employment or other service at
any time.

(d)           Authorized Leaves.  Absence
on leave approved by a duly constituted officer of the Company or any of its
Subsidiaries shall not be considered interruption or termination of service of
any employee for any purposes of this Plan or Awards granted hereunder, except
that no Awards may be granted to an employee while he or she is absent on
leave.

(e)           No Rights as a Stockholder.  No
Participant shall have any rights as a stockholder with respect to any shares
subject to Awards granted to him or her under this Plan prior to the date as of
which he or she is actually recorded as the holder of such shares upon the
stock records of the Company.

(f)            Conflicts.  In
the event any provision of any Award granted under the Plan shall conflict with
any term in the Plan, the term in the Plan shall control.

(g)           Headings.  The
headings used in the Plan are for convenience only, do not constitute a part of
the Plan, and shall not be deemed to limit, characterize, or affect in any way
any provisions of the Plan, and all provisions of the Plan shall be construed
as if no captions had been used in the Plan.

(h)           Successors and
Assigns.  The Plan is binding
on and will inure to the benefit of any successor to the Company, whether by
way of merger, consolidation, purchase, or otherwise.

(i)            Severability.  If
any provision of the Plan or any Award Agreement shall be held illegal or
invalid for any reason, such illegality or invalidity shall not affect the
remaining provisions of the Plan or Award Agreement, and the Plan and each
Award Agreement shall each be construed and enforced as if the invalid
provisions had never been set forth therein.

(j)            No
Strict Construction.  No rule
of strict construction shall be applied against the Company or any other person
in the interpretation of any of the terms of the Plan, any Award Agreement, any
Award granted under the Plan, or any rule, regulation or procedure established
by the Board.

 15

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