Document:

Exhibit 10.46

 

Exhibit 10.46

TRIAD GUARANTY INC.

OUTSIDE DIRECTOR STOCK OPTION AGREEMENT

     This Stock Option Agreement (the “Agreement”), dated ____________, is entered into between
Triad Guaranty Inc., a Delaware corporation (the
“Company”), and ____________ (the “Optionee”).

     WHEREAS, the Company, pursuant to its 2006 Long-Term Stock Incentive Plan (the “Plan”),
desires to grant an Option (as defined in the Plan) to the Optionee, and the Optionee desires to
accept the Option, on the terms and conditions set forth herein.

     NOW, THEREFORE, in consideration of the mutual promises hereinafter set forth, the parties
hereto agree as follows:

     1. Grant of Option. The Company hereby grants to the Optionee an option to purchase from the
Company all or part of
____________ shares of Common Stock (par value $0.01 per share) of the
Company at $  ___ per share (the “Option Price”), during the period and upon the terms and
conditions stated herein and in the Plan.

     2. Termination of Option. This Option shall terminate entirely on the earliest of:

     (a)
____________;

     (b) three (3) years following the termination of Optionee’s directorship with the
Company by reason of Optionee’s death or disability;

     (c) [the date of Optionee’s termination as a director of the Company if Optionee is
terminated for Cause. For purposes of this Agreement, “Cause” shall mean:

     (i) a material breach by Optionee of his duties and obligations to the Company,
including but not limited to gross negligence in the performance of his duties and
responsibilities; provided he shall be entitled to reasonable notice of, and if
feasible a reasonable opportunity to cure, any such breach;

     (ii) willful misconduct by Optionee which may be materially injurious to the
reputation or business of the Company or any of its subsidiaries;

     (iii) any act of fraud, misappropriation or other dishonesty by Optionee; or

     (iv) Optionee’s conviction of a felony.]

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     3. Vesting. Subject to the provisions of Section 2 hereof, this Option may be exercised at
any time as to all or any of the shares then purchasable hereunder (but not for less than 100
shares unless such purchase would entirely exhaust the option) and provided further that the
Optionee’s cumulative purchases of Common Stock subject to this option shall vest as follows:

	 	 	 
	Date	 	Percentage
of Common
Stock
Subject to Option
	 

	On ____________
	 	___%
	On ____________
	 	___%
	On ____________
	 	100%

     The Optionee’s right to exercise this Option will immediately accrue with respect to all
of the shares of Common Stock subject thereto in the event a Change in Control (as defined below)
of the Company. For purposes of this Agreement, “Change in Control” shall mean the occurrence of
any of the following events:

     (a) any person or persons acting as a group, as that term is defined in Rule 13d-3
under the Securities Exchange Act of 1934 (other than Collateral Holdings, Ltd., an Alabama
limited partnership, and any of its affiliates) shall become the beneficial owner of
securities of the Company representing more than fifty percent (50%) of the combined voting
power of the Company’s then outstanding securities; or

     (b) individuals who constitute the board of directors of the Company as of the date
hereof (the “Incumbent Board”) cease for any reason to constitute at least a majority
thereof, provided that any person becoming a director subsequent to the date hereof whose
election or nomination for election was approved by a vote of at least three-quarters of the
directors comprising the Incumbent Board (either by a specific vote or by approval of the
proxy statement of the Company in which such person is named as a nominee for director,
without objection to such nomination) shall be, for purposes of this clause (ii) considered
as though such person were a member of the Incumbent Board; or

     (c) any consolidation or merger to which the Company is a party, if following such
consolidation or merger, stockholders of the Company immediately prior to such consolidation
or merger shall not beneficially own securities representing more than fifty percent (50%)
of the combined voting power of the outstanding voting securities of the surviving or
continuing corporation; or

     (d) any sale, lease, exchange or other transfer (in one transaction or in a series of
related transactions) of all, or substantially all, of the assets of the Company, other than
to an entity (or entities) of which the Company or the stockholders of the Company
immediately prior to such transaction beneficially own securities representing more than
fifty percent (50%) of the combined voting power of the outstanding voting securities.

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     An option shall be exercised by giving notice to the Company, on a form which the Secretary of
the Company will supply upon request, specifying the number of whole shares to be purchased and
accompanied by payment of the purchase price therefore. Payment may be made by check payable to
the Company. The Committee (as defined in the Plan) may, in its discretion, permit the Optionee to
make payment in shares of Common Stock already owned by the Optionee, valued at the Fair Market
Value thereof (as defined in the Plan), as partial or full payment therefor. Shares of Common
Stock that may be used for the payment may include shares which were received by the Optionee upon
the exercise of one or more options and shares which the Optionee directs the Company to withhold,
for the purpose of paying the Option Price (and any applicable withholding taxes), from shares
which the Optionee would have received upon the exercise of one or more options. Such exercise
shall be effective upon receipt by the Secretary of the Company, at the main office of the Company,
of such written notice and payment.

     4. Transferability. Except as permitted by the Plan, the Option may not be sold, transferred,
pledged, assigned or otherwise alienated at any time, and any attempt to sell, transfer, pledge,
assign or otherwise alienate the Option need not be recognized by the Company.

     5. Committee Interpretations Binding. All determinations and interpretations made by the
Committee with regard to any question arising hereunder or under the Plan shall be binding and
conclusive on Optionee and on his legal representatives and beneficiaries.

     6. No Rights as Stockholder.

     (a) Optionee shall have none of the rights of a stockholder with respect to shares
subject to the Option until such shares shall be issued on exercise of the Option[; and,
except as otherwise provided in Section 6(b) hereof, no adjustment for dividends, or
otherwise, shall be made if the record date thereof is prior to the
date of issuance of such shares.

     (b) In the event that the outstanding Common Stock of the Company is changed by reason
of a Share Change or Organic Change (each as defined in the Plan), the number of shares
subject to the Option shall be adjusted so that Optionee shall receive upon exercise of the
Option in whole or in part thereafter that number of shares of the class of the capital
stock of the Company or its successor that Optionee would have been entitled to receive had
he exercised the Option immediately prior to the record date for such event. In the event
of such an adjustment, the per share Option price shall be adjusted accordingly, so that
there will be no change in the aggregate purchase price payable upon exercise of the
Option].

     7. Controlling Documents. The Option granted hereby is subject to:

     (a) All terms and conditions of the Plan (which is hereby incorporated by reference
with the same effect as if fully recited herein) as now or hereafter in effect; and

     (b) All the terms and conditions of this Agreement as now in effect or as hereafter
modified at the discretion of the Committee to conform with the Plan as amended from time to
time.

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     The Optionee acknowledges receipt of a copy of the Plan, represents and warrants that he has
read the Plan and agrees that this Agreement shall be subject to all of the terms and conditions of
the Plan.

     8. No Guarantee of Directorship. This Agreement shall not interfere with or limit in any way
the right of the Board of Directors to nominate a director other than the Optionee at the next
meeting of stockholders.

     9. Governing Law. This Agreement shall be governed by the law of the State of Delaware and
construed in accordance therewith.

     IN WITNESS WHEREOF, the parties have executed and delivered this Agreement as of the day and
year first above written.

	 	 	 	 	 
	OPTIONEE:

	 	COMPANY:
	 
	 	 	 	 
	 

	 	TRIAD GUARANTY INC.
	 
	 	 	 	 
	 	 
	 	 
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Its:	 	 
	 

	 	 	 	 

4EX-10.24 SEPARATION AGREEMENT/ JAIME ELLERTSON

 

EXHIBIT 10.24

	 	 	 
	

	 	 

	 	 	 
	S1 CORPORATION

	 	Headquarters  3500 Lenox Road, Suite 200 Atlanta, Georgia 30326 U.S.A.

T +1 (404) 923—3500     F +1 (404) 923-6727     TOLL FREE +1 (888) 457-2237

May 23, 2006

Jaime W. Ellertson

5324 Long Island Drive

Atlanta, GA 30327

     Re: Your separation from S1 Corporation

Dear Jaime:

As you are aware, S1 Corporation (the “Company”)1 terminated the employment relationship
with you effective July 24, 2005 (the “Separation Date”). Consistent with the practice of the
Company with respect to exiting executives, and as contemplated by your employment agreement dated
April 27, 2001, this letter agreement (the “Agreement”) sets forth the terms under which your
employment with the Company has ended. We desire to resolve any and all issues relating to your
employment and the conclusion of your employment with the Company amicably and on mutually
satisfactory terms. Specifically, you (“You” or “Your”) and the Company (collectively, the
“Parties”) agree:

A. Separation Terms

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

	 	(a)	 	Separation Payment. Make payments to You (the “Separation Payments”)
in the aggregate amount of One Million Two Hundred Thousand ($1,200,000.00) dollars.
The initial payment will be in the amount of $507,692.31 and will be due upon the
expiration of the Revocation Period described in section A.3 (vi) of this Agreement.
The remaining balance of $692,307.69 will be payable in equal twice monthly
installments over the 60 week period commencing on the first regular payroll following
the expiration of the Revocation Period;

 

			
	1	 	The term “Company” includes the company’s parents,
subsidiaries, affiliates and all related companies, as well as their respective
officers, directors, shareholders, employees, agents and any other
representatives, any employee benefits plan of the Company, and any fiduciary
of those plans.

 

			
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	 	(b)	 	Average Annual Bonus Payment. Pay to You $233,687.00 (the “Average
Annual Bonus Payment”) for each of two years. The Average Annual Bonus Payment will be
paid as a lump sum for each of two years (a) in the case of the first payment, 8 days
after the expiration of the revocation period, and (b) in the case of the second
payment, March 15, 2007.
	 
	 	(c)	 	Reimbursement of COBRA Premiums, Life Insurance Cost and Long Term
Disability Cost. Reimburse Your COBRA premium under the Company’s major medical
group health and dental and vision plans and the cost of long term disability coverage
comparable to that which you had under the Company’s long term disability benefit on a
monthly basis, for a period of twenty-four (24) months after the Separation Date.
Reimburse You for the cost of conversion of the S1 group term Life Insurance policy to
an individual policy. Reimbursement of amounts under this paragraph will be made within
30 days of receipt of your proof of payment by You of the premiums for such coverage.
	 
	 	(d)	 	Accelerated Vesting. Accelerate two years of vesting of Your option to
acquire shares of the Company’s common stock (the “Option”) granted to You
pursuant to those certain S1 Corporation 2003 Stock Incentive Plan Option Agreements
dated as of August 11, 2003 and April 11, 2004 by and between the Company and You (the
“Option Agreements”), incorporated by reference, so that as of the Separation Date you
may acquire a cumulative amount of up to 392,277 shares of the Company’s common stock.
Except as provided in this provision, the Options will continue to be governed by the
Option Agreement.
	 
	 	(e)	 	Unemployment Compensation. Not contest Your claim for unemployment
compensation; and
	 
	 	(f)	 	References. Provide a reference letter in the form attached as Exhibit
A in response to a written reference request authorized by You. You must direct all
reference requests to VP, Human Resources, S1 Corporation, 3500 Lenox Road, Suite 200,
Atlanta, Georgia 30326, or his successor. In response to inquiries concerning Your
employment, the Company will disclose Your dates of employment and job titles.

All payments will be subject to applicable withholdings, including taxes and Social Security.
Because You are no longer employed, Your rights to any particular employee benefit will be governed
by applicable law and the terms and provisions of the Company’s various employee benefit plans and
arrangements. You acknowledge that Your Separation Date will be the date used in determining
benefits under all Company employee benefit plans. The Company’s obligations listed in
sub-paragraphs (a) — (f) above shall terminate immediately upon any breach by You of this
Agreement.

2. Release. In exchange for the separation benefits stated above, You release and
discharge the Company from any claim or liability, whether known or unknown, arising

 

			
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out of any event, act or omission occurring on or before the day You sign this Agreement,
including, but not limited to, claims arising out of Your employment or the cessation of Your
employment, claims for breach of contract, tort, employment discrimination, retaliation, or
harassment, as well as any other statutory or common law claims, at law or in equity, recognized
under any federal, state, or local law, including without limitation any employment agreement or
arrangement with the company; provided, subject to the representation by You that as of the date of
Your execution of this Agreement, You are unaware of any claim as a shareholder of the Company
based on any acts or omissions of the Company, the foregoing release shall not apply to any claims
which You may have in your capacity as a shareholder of the Company based on any acts or omissions
which occurred following your resignation as a director of the Company. You also release any
claims for unpaid back pay, sick pay, vacation pay, expenses, bonuses, commissions, attorneys’
fees, or any other compensation. You agree that You are not entitled to any additional payment or
benefits from the Company, except as set forth in this Agreement. You further agree that You have
suffered no harassment, retaliation, employment discrimination, or work-related injury or illness.
Nothing in this Section constitutes a waiver of any right to indemnification which You may have as
a result of serving as an officer and director of the Company, whether arising under the General
Corporation Law of Delaware, the Company’s bylaws or under any other law or Your employment
agreement dated April 27, 2001.

3. OWBPA/ADEA Waiver. By agreeing to this provision, You release and waive any right or
claim against the Company arising out of Your employment or the termination of Your employment with
the Company under the Age Discrimination in Employment Act, as amended, 29 U.S.C. § 621 et
seq. (“ADEA”), the Older Workers Benefit Protection Act, 29 U.S.C. § 621 et
seq. (“OWBPA”), or the Georgia Prohibition of Age Discrimination in Employment, O.C.G.A. §
34-1-2, (the “Waiver”). You understand and agree that:

	 	(i)	 	this Agreement is written in a manner that You understand;
	 
	 	(ii)	 	You do not release or waive rights or claims that may arise
after You sign this Agreement;
	 
	 	(iii)	 	You waive rights and claims You may have had under the OWBPA
and the ADEA, but only in exchange for payments and/or benefits in addition to
anything of value to which You are already entitled;
	 
	 	(iv)	 	You have been advised to consult with an attorney before
signing this Agreement;
	 
	 	(v)	 	You have 45 days (the “Offer Period”) from receipt of this
Agreement to consider whether to sign it. If You sign before the end of the
Offer Period, You acknowledge that Your decision to do so was knowing,
voluntary, and not induced by fraud, misrepresentation, or a threat to
withdraw, alter, or provide different terms prior to the expiration of the
Offer Period;

 

			
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	 	(vi)	 	You have 7 days after signing this Agreement to revoke this
Agreement (the “Revocation Period”). If You revoke, the Agreement shall not be
effective or enforceable and You shall not be entitled to the separation
benefits stated above. To be effective, the revocation must be in writing and
received by the Chief Legal Officer, S1 Corporation, 3500 Lenox Road, Suite
200, Atlanta, Georgia 30326, or his successor, within the Revocation Period;
	 
	 	(vii)	 	this Waiver will not become effective or enforceable until the
Revocation Period has expired; and

B. Your Ongoing Obligations

1. Return of Company Property. You certify, by your signature below, that You have
returned to the Company all of the Company’s property, including, but not limited to, keys, pass
cards, credit cards, customer lists, rolodexes, tapes, software, computer files, marketing and
sales materials, and any other record, document or piece of equipment belonging to the Company,
provided that You will be entitled to retain the laptop computer previously provided to You by the
Company. You further certify that you have not retained any copies of the Company’s property,
including any copies existing in electronic form, which are in Your possession or control. You
acknowledge that You have not and will not destroy, delete, or alter any Company property without
the Company’s consent.

2. Non-Disparagement. You have not and will not make any disparaging or defamatory
statements, whether written or verbal, regarding the Company or its officers, directors or
employees.

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

4. Exercise of Vested Options. Exclusive of the accelerated options described in Section A
(1) (e), as of the Separation Date You were vested in a non-qualified option to purchase 1,647,250
shares of the common stock of the Company (the “Options”).

5. Confidentiality. You acknowledge and agree that neither You nor anyone acting on Your
behalf has made or shall make any disclosures concerning the existence or terms of this
Agreement to any person or entity, including, but not limited to, any representative of the media,
judicial or administrative agency or body, business entity, or association, except: (i) Your
spouse; (ii) Your attorneys, accountants, or financial advisors, but only to the extent disclosure
is necessary to obtain legal or professional services from such persons; (iii) the Internal Revenue
Service, the Social Security Administration, or the Georgia state and local taxing authorities, but
only when disclosure is necessary to produce a document for tax and/or Social Security reasons and
upon the request of the governmental agency; or (iv) a government agency or court of competent
jurisdiction pursuant to a legally enforceable subpoena. If You are

 

			
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contacted, served, or learn that You will be served with a subpoena to compel Your testimony or the
production of documents concerning this Agreement or Your employment with the Company, You agree to
immediately notify the Company’s Human Resources Director by telephone and as soon as possible
thereafter in writing. If You disclose the existence or terms of this Agreement to any person or
entity described in sub-clauses (i) or (ii) of this paragraph, You shall inform such person or
entity of this confidentiality provision. You shall also instruct such person or entity to maintain
the same level of confidentiality required by this provision. Any breach of this provision by such
person or entity will be considered a breach by You. You may not use this Agreement as evidence,
except in a proceeding in which a breach of this Agreement is alleged.

C. General Provisions

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

2. Attorneys’ Fees. In the event of litigation relating to this Agreement other than a
challenge to the OWBPA/ADEA Waiver set forth in Section A(3) above, the Company shall, if it is the
prevailing party, be entitled to recover attorneys’ fees and costs of litigation, in addition to
all other remedies available at law or in equity.

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

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

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

6. Entire Agreement. This Agreement and the Confidentiality, Non-Disclosure and
Non-Competition Agreement executed by You on November 24, 2000 (the “Prior Agreement”)
(collectively, the “Agreements”) constitute the entire agreement between the Parties. The Prior
Agreement is incorporated by reference, and any post-termination obligations contained in the Prior
Agreement shall remain in full force and effect, and shall survive cessation of Your employment.
You acknowledge that the post-termination obligations contained in the Prior Agreement are valid,
enforceable and reasonably necessary to protect the interests of the Company, and You agree to
abide by such obligations. These Agreements supersede any prior communications, agreements or
understandings, whether oral or written, between the Parties arising out of or relating to Your
employment and the termination of that employment, including

 

			
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without limitation Your employment agreement dated April 27, 2001. Other than this Agreement, no
other representation, promise or agreement has been made with You to cause You to sign this
Agreement.

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

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

If the terms set forth in this Agreement are acceptable, please sign below and return the signed
original to me on or before July 10, 2006.

	 	 	 	 	 
	 	Sincerely,

 	 
	 	
 	 
	 	Richard Dobb 	 
	 	Chief Legal Officer 	 
	 

I acknowledge the validity of this 7 page Agreement, including the attached Exhibits, and represent
that I have the legal capacity to enter into this Agreement. I acknowledge that I have had the
opportunity to consult with an attorney before signing this Agreement. I have carefully read the
Agreement, know and understand the terms and conditions, including its final and binding effect,
and sign it voluntarily.

	 	 	 	 
	 
	 

	 	 
	Jaime Ellertson

	 	Date

 

			
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EXHIBIT A

                                        

                                        

                                        

     Re: Jaime Ellertson

Dear                                         :

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

	 	 	 	 	 
	 

	 	Date of Employment:
	 	November 27, 2000 through July 24, 2005
	 
	 	 	 	 
	 

	 	Position:
	 	Chief Executive Officer

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

	 	 	 	 	 
	 	Sincerely yours,

 	 
	 	
 	 
	 	Human Resources Director 	 
	 	 	 
	 

 

			
	[Employee Initials]

MIADOCS 883949 2 	 	 

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