Document:

exv10w2

 

Exhibit 10.2

eFunds Corporation

2006 STOCK INCENTIVE PLAN

(adopted February 16, 2006,

effective May 18, 2006)

Section 1. Purpose.

The purpose of the Plan is to promote the interests of the Company and its stockholders by aiding
the Company in attracting and retaining employees, officers and directors, consultants and advisors
capable of assuring the future success of the Company, by offering such persons incentives to put
forth maximum efforts for the success of the Company’s business, and by affording such persons an
opportunity to acquire a proprietary interest in the Company.

Section 2. Definitions.

As used in the Plan, the following terms shall have the meanings set forth below:

	(a)	 	“Affiliate” shall mean any entity that, directly or indirectly through one or more
intermediaries, is controlled by the Company and any entity in which the Company has a
significant equity interest, in each case as determined by the Committee. As used in this
definition, “control” shall mean the right, either directly or indirectly, to elect the
majority of the directors of a company without the consent or acquiescence of any Third Party.
	 
	(b)	 	“Award” shall mean any Option, Stock Appreciation Right, Restricted Stock, Restricted Stock
Unit, Performance Award, Dividend Equivalent or Other Stock-Based Award granted under the
Plan.
	 
	(c)	 	“Award Agreement” shall mean any written agreement, contract or other instrument or document
evidencing any Award granted under the Plan.
	 
	(d)	 	“Board” shall mean the board of directors of the Company.
	 
	(e)	 	“Certificate” shall mean the Certificate of Incorporation of the Company, as amended from
time to time.
	 
	(f)	 	“Code” shall mean the Internal Revenue Code of 1986 of the United States of America, as
amended from time to time, and any regulations promulgated thereunder.
	 
	(g)	 	“Committee” shall mean the Compensation Committee of the Board or another committee of the
Board designated by the Board to administer the Plan. The Committee shall consist solely of
Directors appointed from time to time by the Board and shall be comprised solely of at least
that number of Directors with those qualifications necessary to permit Awards under the Plan
to qualify under Rule 16b-3 and under Section 162(m) of the Code.
	 
	(h)	 	“Common Stock” shall mean the shares of Common Stock of the Company as provided in the
Certificate.
	 
	(i)	 	“Company” shall mean eFunds Corporation, a corporation incorporated under the laws of
the State of Delaware, United States of America, and any successor corporation.

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	(j)	 	“Director” shall mean a member of the Board.

	 
	(k)	 	“Dividend Equivalent” shall mean any right granted under Section 6(e) of the Plan.
	 
	(l)	 	“Eligible Person” shall mean any officer, Director (including a non-employee
Director) or employee of the Company or any of its Affiliates and any consultant or advisor who
provides services to the Company or any of its Affiliates.
	 
	(m)	 	“Exchange Act” shall mean the United States Securities Exchange Act of 1934, as amended
from time to time, and any regulations promulgated thereunder.
	 
	(n)	 	“Fair Market Value” shall mean, with respect to any property (including, without limitation,
any Shares or other securities), the fair market value of such property determined by such
methods or procedures as shall be established from time to time by the Committee.
Notwithstanding the foregoing, unless otherwise determined by the Committee, the Fair Market
Value of a Share on a given date for purposes of the Plan shall be, if the Shares are then
traded on the New York Stock Exchange (NYSE), the last sale price of the Shares as reported on
the NYSE on such date or, if the NYSE is not open for trading on such date, on the most recent
preceding date when it is open for trading,
	 
	(o)	 	“Option” shall mean an option granted under Section 6(a) of the Plan.
	 
	(p)	 	“Other Stock-Based Award” shall mean any right granted under Section 6(f) of the Plan.
	 
	(q)	 	“Participant” shall mean an Eligible Person who is granted an Award under the Plan.
	 
	(r)	 	“Performance Award” shall mean any right granted under Section 6(d) of the Plan.
	 
	(s)	 	“Person” shall mean any natural person, corporation, partnership, association or trust.
	 
	(t)	 	“Plan” shall mean this eFunds Corporation 2006 Stock Incentive Plan, as amended from time to
time.
	 
	(u)	 	“Restricted Stock” shall mean any Share issued pursuant to an Award granted under Section
6(c) of the Plan.
	 
	(v)	 	“Restricted Stock Unit” shall mean any right to receive shares granted under Section 6(c)
of the Plan.
	 
	(w)	 	“Rule 16b-3” shall mean the rule so designated which has been promulgated by the SEC under
the authority of Section 16 of the Exchange Act, as such rule may be amended from time to
time, together with any successor law or rule.
	 
	(x)	 	“SEC” shall mean the United States Securities and Exchange Commission.
	 
	(y)	 	“Shares” shall mean shares of Common Stock or such other securities or property as may become
subject to Awards pursuant to an adjustment made under Section 4(c) of the Plan.
	 
	(z)	 	“Stock Appreciation Right” shall mean any right granted under Section 6(b) of the Plan.
	 
	(aa)	 	“Third Party” shall mean any Person other than the Company or any of its Affiliates.

Section 3. Administration.

	(a)	 	Power and Authority of the Committee. The Plan shall be administered by the Committee.
Subject to the express provisions of the Plan and to applicable law, the Committee shall have
full power and authority to: (i) designate Participants; (ii) determine the type or types of
Awards to be granted to each Participant under the Plan; (iii) determine the number of Shares
to be covered by (or the method by which payments or other rights are to be calculated in
connection with) each Award; (iv) determine the

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	 	 	terms and conditions of any Award or Award
Agreement; (v) subject to Section 7(c) of this Plan, amend the terms and conditions of any
Award or Award Agreement and accelerate the exercisability of any Award or the lapse of
restrictions relating to any Award (notwithstanding the foregoing the Committee may not
reprice any Award under an Award Agreement absent prior approval of the stockholders of the
Company (except under the circumstances described in Section 4(c)); (vi) determine whether, to
what extent and under what circumstances Awards may be exercised with the payment of cash,
Shares, other securities, other Awards or other property, or canceled, forfeited or suspended;
(vii) determine whether, to what extent and under what circumstances cash, Shares, other
securities, other awards, other property and other amounts issuable or payable by the Company
with respect to an Award under the Plan shall be deferred either automatically or at the
election of the holder thereof or the Committee; (viii) interpret and administer the Plan and
any instrument or agreement, including an Award Agreement, relating to the Plan; (ix)
establish, amend, suspend or waive such rules and regulations and appoint such agents as it
shall deem appropriate for the proper administration of the Plan; and (x) make any other
determination and take any other action that the Committee deems necessary or desirable for
the administration of the Plan. Unless otherwise expressly provided in the Plan, all
designations, determinations, interpretations and other decisions under or with respect to the
Plan or any Award shall be within the sole discretion of the Committee, may be made at any
time and shall be final, conclusive and binding upon any Participant, any holder or
beneficiary of any Award and any employee of the Company or its Affiliates and any other
Eligible Person.
	 
	(b)	 	Delegation. The Committee may delegate all or any of its powers and duties under the Plan to
one or more Directors, or a committee of Directors, subject to such terms, conditions and
limitations as the Committee may establish in its sole discretion; provided, however, that the
Committee shall not delegate its powers and duties under this Plan with regard to Awards
granted to officers or directors of the Company or its Affiliates who are subject to Section
16 of the Exchange Act or in such a manner as would cause the Plan not to comply with the
requirements of Section 162(m) of the Code.
	 
	(c)	 	Power and Authority of the Board of Directors. Notwithstanding anything to the contrary
contained herein, the Board may, at any time and from time to time, without any further action
of the Committee, exercise the powers and duties of the Committee under the Plan.

Section 4. Shares Available for Awards.

	 	(a)	 	Shares Available. Subject to the provisions of Section 4(c) hereof, the Shares
available for Awards under the Plan shall be authorized, but unissued, Shares or Shares
held in the treasury of the Company. Subject to adjustment as provided in Section 4(c),
the aggregate number of Shares which may be issued under all Awards under the Plan shall
be 5,500,000. For the purposes of the foregoing, an Award of one share of Restricted
Stock or one Restricted Stock Unit shall be counted

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	 	 	 	as an Award of two Shares (i.e. if all
of the Awards under the Plan were made in the form of Restricted Stock or Restricted Stock
Units, no more than 2,750,000 (subject to adjustment as provided in Section 4(c)) Shares
could be issued under the Plan) and an Award of one Stock Appreciation Right shall be
counted as an Award of one Share. If any Shares covered by an Award or to which an Award
relates are not purchased or are forfeited, or if an Award otherwise terminates without
delivery of any Shares, then the number of Shares counted against the aggregate number of
Shares available under the Plan with respect to such Award, to the extent of any such
forfeiture or termination, shall again be available for granting Awards under the Plan.
Shares that are tendered to the Company in connection with the exercise or receipt of (or
lapse of restrictions related to) an Award or which are withheld or collected upon any
such exercise or receipt (or lapse of restrictions) in satisfaction of a Participant’s tax
obligations shall not be treated as available for issuance under the Plan.
	 
	 	(b)	 	Accounting for Awards. For purposes of this Section 4, if an Award entitles the holder
thereof to receive or purchase Shares, the number of Shares covered by such Award or to which
such Award relates shall be counted on the date of grant of such Award against the aggregate
number of Shares available for grants under the Plan.
	 
	 	(c)	 	Adjustments. In the event that the Committee shall determine that any dividend or other
distribution (whether in the form of cash, Shares, other securities or other property),
recapitalization, stock split, reverse stock split, reorganization, merger, consolidation,
split-up, spin-off, combination, repurchase or exchange of Shares or other securities of the
Company, issuance of warrants or other rights to purchase Shares or other securities of the
Company or other similar corporate transaction or event affects the Shares such that an
adjustment is determined by the Committee to be appropriate in order to prevent undue dilution
or enlargement of the benefits or potential benefits intended to be made available under the
Plan, then the Committee shall, in such manner as it may deem equitable, adjust any or all of
(i) the number and type of Shares (or other securities or other property) which thereafter may
be made the subject of Awards, (ii) the
number and type of Shares (or other securities or other property) subject to outstanding
Awards and (iii) the purchase or exercise price with respect to any Award; provided,
however, that the number of Shares covered by any Award or to which such Award relates
shall always be a whole number.
	 
	 	(d)	 	Award Limitations Under the Plan. Subject to adjustment as provided in Section 4(c), the
maximum number of Shares available for Awards of Restricted Stock or Restricted Stock Units
under the Plan shall be 2,750,000. No Participant may be granted any Award or Awards under
the Plan related to more than 1,000,000 Shares (subject to adjustment as provided for in
Section 4(c) of the Plan) in the aggregate in any calendar year. The foregoing annual
limitation specifically includes the grant of any Award or Awards representing “qualified
performance-based compensation” within the meaning of Section 162(m) of the Code.

Section 5. Eligibility.

Any Eligible Person shall be eligible to be designated a Participant. In determining which Eligible
Persons shall receive an Award and the terms of any Award, the Committee may take into account the
nature of the services rendered by the respective Eligible Persons, their present and potential
contributions to the success of the Company, and such other factors as the Committee, in its
discretion, shall deem relevant.

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Section 6. Awards.

	(a)	 	Options. The Committee is hereby authorized to grant Options to Participants with the
following terms and conditions and with such additional terms and conditions not inconsistent
with the provisions of the Plan as the Committee shall determine:

	 	(i)	 	Exercise Price. The purchase price per Share purchasable under an Option
shall be determined by the Committee; provided, however, that such purchase price
shall not be less than 100% of the Fair Market Value of a Share on the date of grant
of such Option, provided that the per Share exercise price may be set below Fair
Market Value by an amount determined necessary or appropriate by the Committee to
satisfy applicable requirements of law or government regulation.
	 
	 	(ii)	 	Option Term. The term of each Option shall be fixed by the Committee, but
shall not exceed ten years.
	 
	 	(iii)	 	Time and Method of Exercise. The Committee shall determine the time or times
at which an Option may be exercised in whole or in part and the method or methods by
which, and the form or forms (including, without limitation, cash, Shares, other
securities, other
Awards or other property, or any combination thereof, having a Fair Market Value on
the exercise date equal to the relevant exercise price) in which, payment of the
exercise price with respect thereto may be made or deemed to have been made.
Notwithstanding the foregoing, no Option Award may be settled in cash.
	 
	 	(iv)	 	Option Type. Options granted under the Plan shall not qualify as incentive
stock options under Section 422 of the Code or any successor provision. Reload
options may not be granted under the Plan.

	(b)	 	Stock Appreciation Rights. The Committee is hereby authorized to grant Stock Appreciation
Rights to Participants subject to the terms of the Plan and any applicable Award Agreement. A
Stock Appreciation Right granted under the Plan shall confer on the holder thereof the right
to receive upon exercise thereof the excess of (i) the Fair Market Value of one Share on the
date of exercise (or, if the Committee shall so determine, at any time during a specified
period before or after the date of exercise) over (ii) the grant price (as the same may be
adjusted under Section 4(c) of the Plan) per Share of the Stock Appreciation Right as
specified by the Committee, which price shall not be less than 100% of the Fair Market Value
of one Share (subject to any such adjustment) on the date of grant of the Stock Appreciation
Right, provided that the grant price per Share may be set below Fair Market Value by an amount
determined necessary or appropriate by the Committee to satisfy applicable requirements of law
or government regulation. Subject to the terms of the Plan and any applicable Award Agreement,
the grant price, term, methods of exercise, dates of exercise, methods of settlement

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	 	 	and any
other terms and conditions of any Stock Appreciation Right shall be as determined by the
Committee, which may impose upon the exercise of any Stock Appreciation Right such conditions
or restrictions, not inconsistent with the provisions of the Plan, as it may deem appropriate.
The term of any Stock Appreciation Right shall not exceed ten years.
	 
	(c)	 	Restricted Stock and Restricted Stock Units. The Committee is hereby authorized to grant
Awards of Restricted Stock and Restricted Stock Units to Participants subject to the following
terms and conditions and such additional terms and conditions, not inconsistent with the
provisions of the Plan, as the Committee shall determine:

	 	(i)	 	Restrictions. Shares of Restricted Stock and Restricted Stock Units shall be
subject to such restrictions as the Committee may impose (including, without
limitation, any limitation on the right to vote a share of Restricted Stock or the
right to receive any dividend or other right or property with respect thereto or with
respect to a Restricted Stock Unit), which restrictions may lapse separately or in
combination at such time or times, in such installments or otherwise as the Committee
may deem appropriate.
	 
	 	(ii)	 	Stock Certificates. Any Restricted Stock granted under the Plan shall be
evidenced by issuance of a stock certificate or certificates, which certificate or
certificates shall be held
by the Company or a custodian acting on behalf of the Company, or, if determined by
the Committee and consistent with the rules of the NYSE or any securities exchange
on which the Shares are listed or admitted to trading, any Restricted Stock granted
under the Plan may be evidenced by recording the issuance of the same in the books
and records of the Company. Such certificate or certificates shall be registered in
the name of the Participant and shall bear an appropriate legend referring to the
terms, conditions and restrictions applicable to such Restricted Stock. In the case
of Restricted Stock Units, no Shares shall be issued at the time such Awards are
granted.
	 
	 	(iii)	 	Forfeiture; Delivery of Shares. Except as otherwise determined by the
Committee, upon the termination of a Participant’s employment with or services to the
Company or its Affiliates (as determined by or under criteria established by the
Committee) during the applicable restriction period, all Shares of Restricted Stock
and all Restricted Stock Units held by such Participant shall be forfeited and
reacquired by the Company; provided, however, that the Committee may, when it finds
that a waiver would be in the best interest of the Company, waive in whole or in part
any or all remaining restrictions with respect to Shares of Restricted Stock or
Restricted Stock Units. Any Share of Restricted Stock that is no longer subject to
restrictions shall be delivered to the holder thereof promptly after the applicable
restrictions lapse or are waived. Upon the lapse or waiver of restrictions and the
restricted period relating to Restricted Stock Units evidencing the right to receive
Shares, such Shares shall be issued and delivered to the holders of the Restricted
Stock Units, subject to the provisions of the Plan and any applicable Award Agreement.

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	(d)	 	Performance Awards. The Committee is hereby authorized to grant Performance Awards to
Participants subject to the terms of the Plan and any applicable Award Agreement. A
Performance Award granted under the Plan (i) may be denominated or payable in cash, Shares
(including, without limitation, Restricted Stock and Restricted Stock Units), other
securities, other Awards or other property and (ii) shall confer on the holder thereof the
right to receive payments, in whole or in part, upon the achievement of such performance goals
during such performance periods as the Committee shall establish. Subject to the terms of the
Plan and any applicable Award Agreement, the performance goals to be achieved during any
performance period, the length of any performance period, the amount of any Performance Award
granted, the amount of any payment or transfer to be made pursuant to any Performance Award,
and any other terms and conditions of any Performance Award shall be determined by the
Committee.
	 
	(e)	 	Dividend Equivalents. The Committee is hereby authorized to grant to Participants Dividend
Equivalents under which such Participants shall be entitled to receive payments (in cash,
Shares, other securities, other Awards or other property as determined in the discretion of
the Committee)
equivalent to the amount of cash dividends paid by the Company to holders of Common Stock
of the Company with respect to a number of Shares determined by the Committee. Subject to
the terms of the Plan and any applicable Award Agreement, such Dividend Equivalents may
have such terms and conditions as the Committee shall determine.
	 
	(f)	 	Other Stock-Based Awards. The Committee is hereby authorized to grant to Participants such
other Awards that are denominated or payable in, valued in whole or in part by reference to,
or otherwise based on or related to, Shares (including, without limitation, securities
convertible into Shares), as are deemed by the Committee to be consistent with the purpose of
the Plan; provided, however, that such grants must comply with applicable law. Subject to the
terms of the Plan and any applicable Award Agreement, the Committee shall determine the terms
and conditions of such Awards. Shares or other securities delivered pursuant to a purchase
right granted under this Section 6(f) shall be purchased for such consideration, which may be
paid by such method or methods and in such form or forms (including, without limitation, cash,
Shares, other securities, other Awards or other property or any combination thereof), as the
Committee shall determine, the value of which consideration shall not be less than 100% of the
Fair Market Value of such Shares or other securities as of the date such purchase right is
granted, provided that the value of such Shares or other securities may be set below Fair
Market Value by an amount determined necessary or appropriate by the Committee to satisfy
applicable requirements of law or government regulation.
	 
	(g)	 	General.

	 	(i)	 	Cash Consideration for Awards. Awards may be granted for no cash
consideration or for such minimal cash consideration as may be required by applicable
law or may be granted for such cash consideration as the Committee may determine in
its discretion.
	 
	 	(ii)	 	Awards May Be Granted Separately or Together. Awards may, in the discretion
of the Committee, be granted either alone or in addition to, in tandem with, or in
substitution for any

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	 	 	 	other Award or any award granted under any plan of the Company or
any of its Affiliates other than the Plan. Awards granted in addition to or in tandem
with other Awards or in addition to or in tandem with awards granted under any such
other plan of the Company or any of its Affiliates may be granted either at the same
time as or at a different time from the grant of such other Awards or awards.
	 
	 	(iii)	 	Forms of Payments Under Awards. Subject to the terms of the Plan and of any
applicable Award Agreement, payments or transfers to be made by the Company or an
Affiliate upon the grant, exercise or payment of an Award may be made in such form or
forms as the Committee shall determine (including, without limitation, cash, Shares,
other securities, other Awards or other property, or any combination thereof), and may
be made in a single payment or transfer, in installments or on a deferred basis, in
each case in
accordance with rules or procedures established by the Committee. Such rules and
procedures may include, without limitation, provisions for the payment or crediting
of reasonable interest on installment or deferred payments or the grant of Dividend
Equivalents with respect to installment or deferred payments.
	 
	 	(iv)	 	Limits on Transfer of Awards. No Award and no right under any such Award
shall be transferable by a Participant otherwise than by will or by the laws of
descent and distribution; provided, however, that if so determined by the Committee, a
Participant may, in the manner established by the Committee, designate a beneficiary
or beneficiaries to exercise the rights of the Participant and receive any property
distributable with respect to any Award upon the death of the Participant.
Notwithstanding the preceding sentence, if so determined by the Committee, an Option
may be transferred by a Participant to any “Family Member” (as such term is defined in
the General Instructions to Form S-8 (or any successor to such Instructions or Form))
of that Participant in a manner established by the Committee, provided that such
transfer is not for value (i.e., the Participant making the transfer may not receive
any consideration therefor). Any Family Member to whom an Option is transferred in
accordance with the preceding sentence shall not make any subsequent transfer of such
Option or any right thereunder otherwise than by will or the laws of descent and
distribution; provided, however, that if so determined by the Committee, such Family
Member may, in the manner established by the Committee, designate a beneficiary or
beneficiaries to exercise the rights of such Family Member under the Option and
receive any property distributable with respect thereto upon the death of such Family
Member. Each Award or right under any Award shall be exercisable during the
Participant’s lifetime only by the Participant, or if permissible under applicable
law, by the Participant’s guardian or legal representative, excepting an Option that
has been transferred to a Family Member in accordance with the foregoing provisions,
in which event the Option and any rights thereunder may be exercisable during such
Family Member’s lifetime only by such Family Member or, if permissible under
applicable law, by the Family Member’s guardian or legal representative. Except as
provided in this clause (iv),

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	 	 	 	no Award or right under any such Award may be pledged,
alienated, attached or otherwise encumbered, and any purported pledge, alienation,
attachment or encumbrance thereof shall be void and unenforceable against the Company
or any of its Affiliates.
	 
	 	(v)	 	Term of Awards. Subject to the terms of the Plan, the term of each Award
shall be for such period as may be determined by the Committee.
	 
	 	(vi)	 	Restrictions; Securities Exchange Listing. All Shares or other securities
delivered under the Plan pursuant to any Award or the exercise thereof shall be
subject to such
restrictions as the Committee may deem advisable under the Plan, applicable
securities laws, rules or regulations, and other regulatory requirements, and the
Committee may cause appropriate entries to be made or legends to be placed on the
certificates for such Shares or other securities to reflect such restrictions. If
the Shares or other securities are traded on the NYSE or another securities
exchange or national market, the Company shall not be required to deliver any
Shares or other securities covered by an Award unless and until such Shares or
other securities have been admitted for trading on the NYSE or such other
securities exchange or national market.
	 
	 	(vii)	 	No Loans. The Company may not loan funds to Participants to provide them
amounts payable upon the grant, exercise of vesting of any Award. Participants may
not exercise or acquire any Award through the use of installment payments or by
delivery of a promissory note to the Company or any of its Affiliates.

Section 7. Amendment and Termination; Adjustments.

	(a)	 	Amendments to the Plan. Subject to the provisions of Section 7(c), the Board of Directors
may amend, alter, suspend, discontinue or terminate the Plan; provided, however, that,
notwithstanding any other provision of the Plan or any Award Agreement, prior approval of the
stockholders of the Company shall be required for any amendment to the Plan that requires
stockholder approval under the rules or regulations of the NYSE or any securities exchange or
national market that are applicable to the Company.
	 
	(b)	 	Waivers. Subject to the provisions of the Plan, the Committee may waive any conditions of or
rights of the Company under any outstanding award, prospectively or retroactively.
	 
	(c)	 	Limitations on Amendments. Neither the Board nor the Committee may amend, alter, suspend,
discontinue or terminate any outstanding Award, prospectively or retroactively, that would
have an adverse effect on the rights of the Participant with respect to such Award, without
the consent of the Participant or holder or beneficiary thereof, except as otherwise provided
herein or in the Award Agreement.
	 
	(d)	 	Correction of Defects, Omissions and Inconsistencies. The Committee may correct any defect,
supply any omission or reconcile any inconsistency in the Plan or any Award or Award Agreement
in the manner and to the extent it shall deem desirable to carry the Plan into effect.

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Section 8. Income Tax Withholding.

In order to comply with all applicable income tax laws or regulations, the Committee may establish
such policy or policies as it deems appropriate with respect to such laws and regulations,
including without limitation the establishment of policies to ensure that all applicable payroll,
withholding, income or other taxes, which are the sole and absolute responsibility of a
Participant, are withheld or collected from such
Participant. In order to assist a Participant in paying all or a portion of the taxes to be
withheld or collected upon exercise or receipt of (or the lapse of restrictions relating to) an
Award, the Committee, in its discretion and subject to such additional terms and conditions as it
may adopt, may permit the Participant to satisfy such tax obligation by (a) electing to have the
Company withhold a portion of the payment or transfer otherwise to be made upon exercise or receipt
of (or the lapse of restrictions relating to) such Award with a Fair Market Value equal to the
amount of such taxes or (b) delivering to the Company Shares or other property other than Shares
issuable upon exercise or receipt of (or the lapse of restrictions relating to) such Award with a
Fair Market Value equal to the amount of such taxes. The election, if any, must be made on or
before the date that the amount of tax to be withheld is determined.

Section 9. General Provisions.

	(a)	 	No Rights to Awards. No Eligible Person, Participant or other Person shall have any claim to
be granted any Award under the Plan, and there is no obligation for uniformity of treatment of
Eligible Persons, Participants or holders or beneficiaries of Awards under the Plan. The terms
and conditions of Awards need not be the same with respect to any Participant or with respect
to different Participants.
	 
	(b)	 	Award Agreements. No Participant will have rights under an Award granted to such Participant
unless and until an Award Agreement shall have been duly executed on behalf of the Company
and, if requested by the Company, signed by the Participant and delivered to the Company.
	 
	(c)	 	No Limit on Other Compensation Arrangements. Nothing contained in the Plan shall prevent the
Company or any of its Affiliates from adopting or continuing in effect other or additional
compensation plans or arrangements, and such arrangements may be either generally applicable
or applicable only in specific cases.
	 
	(d)	 	No Right to Employment. The grant of an Award shall not be construed as giving a Participant
the right to be retained in the employ of the Company or any of its Affiliates, nor will it
affect in any way the right of the Company or any of its Affiliates to terminate the
employment of any Participant in its or their employ at any time, with or without cause. In
addition, the Company or any of its Affiliates may at any time dismiss a Participant in its or
their employ from employment free from any liability or any claim under the Plan, unless
otherwise expressly provided in the Plan or in any Award Agreement.
	 
	(e)	 	Governing Law. The validity, construction and effect of the Plan, any Award Agreement or any
Award, and any rules and regulations relating to the Plan, any Award Agreement or any Award,
shall be determined in accordance with the laws of the State of Delaware which shall be the
proper law thereof notwithstanding any rules regarding conflict of laws therein contained
under which any other law would be made applicable.

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	(f)	 	Severability. If any provision of the Plan, any Award Agreement or any Award is or becomes or
is deemed to be invalid, illegal or unenforceable in any jurisdiction or would disqualify the
Plan, any Award Agreement or any Award under any law deemed applicable by the Committee, then

	 	(i)	 	such provision shall be construed or deemed amended to conform to applicable
laws, or
	 
	 	(ii)	 	if it cannot be so construed or deemed amended without, in the determination
of the Committee, materially altering the purpose or intent of the Plan, the Award
Agreement or the Award, such provision shall be stricken,
	 
	 	but only as to each jurisdiction, Award Agreement and Award so affected, and the Plan, as
well as each Award Agreement and Award so affected, shall otherwise remain in full force
and effect in accordance with its original terms.

	(g)	 	No Trust or Fund Created. Neither the Plan nor any Award shall create or be construed to
create a trust or separate fund of any kind or a fiduciary relationship between the Company or
any of its Affiliates and a Participant or any other Person. To the extent that any Person
acquires a right to receive payments from the Company or any of its Affiliates pursuant to an
Award, such right shall be no greater than the right of any unsecured general creditor of the
Company or any such Affiliate.
	 
	(h)	 	No Fractional Shares. No fractional Shares shall be issued or delivered pursuant to the Plan
or any Award, and the Committee shall determine whether cash shall be paid in lieu of any
fractional Share or whether such fractional Share or any rights thereto shall be canceled,
terminated or otherwise eliminated.
	 
	(i)	 	Headings. Headings are given to the sections and subsections of the Plan solely as a
convenience to facilitate reference. Such headings shall not be deemed in any way material or
relevant to the construction or interpretation of the Plan or any provision thereof.
	 
	(j)	 	Other Benefits. No compensation or benefit awarded to or realized by any Participant in the
employ of the Company or any of its Affiliates under the Plan shall be included for the
purpose of computing such Participant’s compensation under any compensation-based retirement,
disability, annual incentive, bonus or similar plan of the Company or any of its Affiliates
unless required by law or otherwise provided by such other plan.

Section 10. Effective Date of the Plan.

The Plan shall be approved by the Board of Directors of the Company and shall be effective as of
the date of its approval by stockholders of the Company in accordance with the requirements of the
NYSE. No Awards may be granted under the Plan prior to its effectiveness.

Section 11. Term of the Plan.

The Plan shall continue in effect for a term of five years or until it is earlier discontinued or
terminated as provided in Section 7. No Award shall be granted after the termination of this
Plan. However, unless
otherwise expressly provided in this Plan or in an applicable Award Agreement, any Award
theretofore granted may extend beyond the termination of this Plan, and the authority of the
Committee provided for hereunder

Page 11

 

 with respect to this Plan and any Awards, and the authority of the
Board to amend this Plan, shall extend beyond the termination of this Plan.

Page 12exv10w3

 

EXHIBIT 10.3

eFUNDS CORPORATION

2006 ANNUAL INCENTIVE PLAN

     1. Establishment. On February 16, 2006 the Board of Directors of eFunds Corporation approved
an incentive plan for executives as described herein, which plan shall be known as the “eFunds
Corporation Annual Incentive Plan.” This Plan shall be submitted for approval by the stockholders
of eFunds Corporation at the 2006 Annual Meeting of Stockholders. This Plan shall be effective as
of January 1, 2006, subject to its approval by the stockholders, and no benefits shall be issued
pursuant hereto unless and until after this Plan has been so approved.

     2. Purpose. The purpose of this Plan is to advance the interests of eFunds Corporation and
its stockholders by attracting and retaining key employees and by stimulating the efforts of such
employees to contribute to the continued success and growth of the business of the Company. This
Plan is further intended to provide employees with an opportunity to increase their ownership of
eFunds’ common stock and to thereby increase their personal interest in the long-term success of
the Company in a manner designed to increase stockholder value.

     3. Definitions. When the following terms are used herein with initial capital letters, they
shall have the following meanings:

     3.1.
Achievement Percentage — a percentage (or a range of percentages), which may be greater
or less than 100%, that will result from the Company’s performance against each Performance Factor
set for a Participant during a Performance Period. Such percentages shall be determined by the
Committee with respect to each Performance Factor applicable to a Participant in a given
Performance Period. Following the conclusion of the Performance Period, the Committee shall
determine the Achievement Percentage for each Performance Factor based on the performance of the
Company for that Period.

     3.2.
Base Salary — The amount of base salary received by a Participant during a Performance
Period, as determined by the Committee. In the discretion of the Committee, a Participant’s base
salary may be annualized or set at the Participant’s base salary as of the last day of the
Performance Period.

     3.3.
Committee — the Compensation Committee of the Board of Directors of eFunds or another
committee consisting of members of the Board of Directors of eFunds appointed from time to time by
the Board of Directors. The Committee shall be composed of not fewer than such number of directors
as shall be required to permit grants and awards made under this Plan to satisfy the requirements
of Rule 16b-3 promulgated by the Securities and Exchange Commission under the Securities Exchange
Act of 1934 (the “1934 Act”), as amended, or any successor rule or regulation (“Rule 16b-3”). Each
member of the Committee shall be a “Non-Employee Director” within the meaning of Rule 16b-3 and an
“outside director” within the meaning of Section 162(m) of the Code.

     3.4. Code — the Internal Revenue Code of 1986, as it may be amended from time to time, and any
proposed, temporary or final Treasury Regulations promulgated thereunder.

     3.5.
Common Stock — the common stock, par value $.01 per share, of eFunds.

     3.6.
Company — eFunds Corporation, a Delaware corporation, together with its subsidiaries or
affiliates, whether now or hereafter established.

 

 

     3.7
eFunds — eFunds Corporation, a Delaware corporation

     3.8.
Executives — all Participants for a given Performance Period designated by the Committee
as “Executives” for purposes of this Plan. The Committee shall designate as Executives all
Participants it reasonably believes may be “named executive officers” under Rule 402 promulgated
under the 1934 Act for that Performance Period.

     3.9.
Other Participants — all Participants for a given Performance Period who are not
designated as “Executives” by the Committee for such Performance Period.

     3.10.
Participants — the employees of the Company who are designated by the Committee as
Participants in this Plan. Directors of the Company who are not also employees of the Company are
not eligible to participate in this Plan. Participants shall be designated as either Executives or
Other Participants by the Committee as provided in Section 4.3 below.

     3.11.
Performance Factor — the performance goals selected by the Committee for each
Participant with respect to each Performance Period. The performance goals selected by the
Committee for Executives shall be based solely upon the attainment of one or more objective
performance criteria selected by the Committee in connection with the grant of an award hereunder.
In the case of Other Participants, such performance goals need not be objective and may be based on
such business criteria as the Committee may determine to be appropriate and may include financial
and nonfinancial performance goals that are linked to such individual’s business unit, the Company
as a whole or to such individual’s areas of responsibility. The objective performance goals for
Executives shall be based solely on one or more of the following business criteria, which may apply
to the individual in question, an identifiable business unit or the Company as a whole, and on an
annual or other periodic or cumulative basis: sales or revenues, cost of sales, margins, income
(including operating income), selling, general and administrative expense levels, other income
(expense), effective tax rates, current ratios or other measures of liquidity, capital
expenditures, transaction volumes or hours billed, system availability rates, cash flow, stock
price, market share, earnings (on either a net or per share basis), earnings before any one or more
of the following: (i) interest expense and/or income, (ii) taxes, (iii) depreciation and (iv)
amortization, return on equity or costs, return on invested or average capital employed, cumulative
total return to stockholders (in each case, whether compared to pre-selected peer groups or not).
In evaluating the performance of the Company against such criteria, the Committee shall have the
discretion to adjust the Company’s reported results to eliminate or include the effect of
acquisitions, dispositions, special charges or other one-time or non-recurring items.

     3.12.
Performance Period — each consecutive twelve-month period commencing on January 1 of
each year during the term of this Plan and any additional periods, each of which must be at least
twelve months long, designated by the Committee.

     3.13. Plan — this eFunds Corporation Annual Incentive Plan.

     3.14
Restricted Stock Units — Restricted Stock Units, as defined in the Stock Incentive Plan.

     3.15 Stock Incentive Plan — The eFunds Corporation 2006 Stock Incentive Plan, as the same may
be amended from time to time, or any successor or substitute plan providing for equity-based awards
that has been approved by the stockholders of eFunds.

2

 

     3.16
Target Award — a dollar amount, typically expressed as a percentage of a Participant’s
Base Salary, which percentage may be greater or less than 100%, determined by
the Committee with respect to each Participant for each Performance Period.

     4. Administration.

     4.1. Power and Authority of Committee. This Plan shall be administered by the Committee. The
Committee shall have full power and authority, subject to all the applicable provisions of this
Plan and applicable law, to (a) establish, amend, suspend or waive such rules and regulations and
appoint such agents as it deems necessary or advisable for the proper administration of this Plan,
(b) construe, interpret and administer this Plan and any instrument or agreement relating to this
Plan, (c) determine, from time to time, whether shares of Common Stock and/or Restricted Stock
Units will be made available to a Participant in this Plan and (d) make all other determinations
and take all other actions necessary or advisable for the administration of this Plan. Unless
otherwise expressly provided in this Plan, each determination made and each action taken by the
Committee pursuant to this Plan or any instrument or agreement relating to this Plan shall be (x)
within the sole discretion of the Committee, (y) may be made at any time and (z) shall be final,
binding and conclusive for all purposes on all persons, including, but not limited to, Participants
and their legal representatives and beneficiaries, and employees of the Company.

     4.2 Delegation. The Committee may delegate its powers and duties under this Plan to one or
more officers of the Company or a committee of such officers, subject to such terms, conditions and
limitations as the Committee may establish in its sole discretion; provided,
however, that the Committee shall not delegate its power (a) to make determinations
regarding officers or directors of the Company who are subject to Section 16 of the 1934 Act or (b)
in such a manner as would cause this Plan not to comply with the provisions of Section 162(m) of
the Code.

     4.3. Determinations made prior to each Performance Period. On or before the 90th day of each
Performance Period, the Committee shall:

          (a) designate all Participants (including designation as Executives or Other Participants) for
such Performance Period;

          (b) establish a Target Award for each Participant and the portions of that Target Award
related to each Performance Factor applicable to that Participant; and

          (c) for each Performance Factor, determine the Achievement Percentage or range of Achievement
Percentages that will result from the performance of the Company against each Performance Factor.

     For example, the Committee may establish a Target Award equal to 50% of a Participant’s Base
Salary, with one-half of such Award dependant upon a Performance Factor related to the Company’s
revenues during the Performance Period and one-half dependant upon a Performance Factor related to
the Company’s earnings for such Period. The Committee would then establish Achievement Percentages
for each of the Performance Factors based on the Company’s revenues and earnings for the
Performance Period (i.e. 0% if the Company’s revenues did not exceed $X, 100% if the Company’s
revenues exceeded $Y and 200% if the Company’s revenues exceeded $Z).

3

 

     4.4. Certification. Following the close of each Performance Period and prior to payment of
any amount to any Participant under this Plan, the Committee must certify which of the applicable
Performance Factors for that Performance Period were achieved and determine
the appropriate Achievement Percentage for each such Factor. The Committee must also certify
as to the attainment of all other factors upon which any payments to a Participant for that
Performance Period are to be based.

     4.5. Stockholder Approval. The material terms of this Plan shall be disclosed to and approved
by stockholders of the Company in accordance with Section 162(m) of the Code. No amount shall be
paid to any Participant under this Plan unless such stockholder approval has been obtained.

     5. Incentive Payment.

     5.1. Formula. Subject to Section 5.2, each Participant shall receive an incentive payment for
each Performance Period in an amount not greater than the sum of each portion of the Target Award
related to a Performance Factor that was achieved in the Performance Period, with each Performance
Factor that was achieved being multiplied by the relevant Achievement Percentage.

     For example, in the example described in Section 4.3, if the Company achieved revenues of $Y
during the Performance Period but did not make the minimum earnings target, the Participant would
receive an incentive payment equal to 50% of his or her Target Award, or 25% of his or her Base
Salary.

     5.2. Limitations.

          (a) Discretionary Increase or Reduction. The Committee shall retain sole and absolute
discretion to increase or reduce the amount of any incentive payment otherwise payable to any
Participant under this Plan; provided, however, that the Committee may not
increase the payment to any Executive for any Performance Period.

          (b) Employment Status. Except as otherwise provided by the Committee, a Participant who is
employed by the Company as of the last day of a Performance Period but whose employment is
terminated by the Company for reasons other than cause or poor performance or due to the death or
“disability” (as defined by the provisions of the long-term disability plan of the Participant’s
employer) prior to the date of payment of awards related to such Performance Period shall remain
eligible to receive an incentive payment under this Plan for such Performance Period. Persons who
are so employed but who resign or whose employment is terminated by the Company for cause or poor
performance prior to the payment of incentive awards in respect of such Performance Period shall
not be eligible to receive an incentive payment under this Plan for such Period. Incentive
payments made under this Plan in respect of Participants who are deceased shall be made in
accordance with the Participant’s will, the applicable laws of descent and distribution or any
beneficiary election made by the Participant in accordance with Section 6.2.

          (c) Maximum Payments. No Participant shall receive a payment under this Plan for any
Performance Period in excess of $2.0 million (including the amount of any premium received by
reason of an election made pursuant to Section 6.1).

     6. Benefit Payments.

     6.1. Time and Form of Payments. If sufficient shares of Common Stock are available for
issuance under the Stock Incentive Plan for such purpose, the Committee may elect to allow
Participants to receive all or part of any benefits which may be paid to them under this Plan in
the form of Common Stock or Restricted Stock Units. If no such election is made, all

4

 

benefits
payable under this Plan shall be paid in cash. If this option is made available to one or more
Participants, prior to a date specified by the Committee but in no event later than the 90th day of
a Performance Period, each eligible Participant shall elect whether to receive any benefits
which may be paid to them under this Plan in respect of such Performance Period in cash or in
the form of shares of Common Stock or Restricted Stock Units (whichever is made available by the
Committee to such Participant in the Committee’s sole discretion), or any combination thereof.
Participants who are to receive some percentage of their incentive payment in the form of cash
shall be entitled to elect to defer such receipt in accordance with the terms of any deferred
compensation plan in effect at the time and applicable to such cash payment. In the event a
Participant is to receive some percentage of their incentive payment in the form of cash, such cash
incentive shall, subject to any deferred compensation election, be paid as soon as administratively
feasible after the Committee has made the certifications provided for in Section 4.4 above and
determined the amount of such Participant’s incentive payment payable under this Plan. In the
event that an eligible Participant chooses to receive a portion of their incentive payment in the
form of shares of Common Stock or Restricted Stock Units in lieu of cash (with the amount of cash
so foregone being herein referred to as the “Share Dollar Amount”), the Participant shall be
entitled to receive shares of Common Stock or Restricted Stock Units, or a combination thereof
(whichever option is made available by the Committee), having a fair market value on the date of
issuance (as determined in accordance with the terms of the Stock Incentive Plan) of up to 125% of
the Share Dollar Amount, with the amount of any such premium being determined by the Committee.
Any such shares or Restricted Stock Units shall be issued or awarded under the Stock Incentive Plan
promptly after the Committee has made the certifications provided for in Section 4.4 above and
otherwise determined the amount of the Participant’s incentive payment payable under this Plan.

     In the event an eligible Participant elects to receive some percentage of their incentive
payment in the form of shares of Common Stock or Restricted Stock Units, all or part of such shares
or Restricted Stock Units may be made subject to such forfeiture rights, vesting requirements and
transfer restrictions as may be established by the Committee in the exercise of its sole
discretion. Shares and Restricted Stock Units issued pursuant to this Plan shall not be counted
towards the 1,000,000-share award limitation provided for in Section 4(d) of the Stock Incentive
Plan. Any Restricted Stock Units issued pursuant to this Section 6.1 must be settled in accordance
with the requirements of Section 409A of the Code (or any successor provision).

     6.2. Nontransferability. Except as otherwise determined by the Committee, no right to any
incentive payment hereunder, whether payable in cash or other property, shall be transferable by a
Participant otherwise than by will or by the laws of descent and distribution; provided
however, that if so determined by the Committee, a Participant may, in the manner
established by the Committee designate a beneficiary or beneficiaries to receive any cash or
property payable to such Participant hereunder following the death of the Participant. No right to
any incentive payment hereunder may be pledged, alienated, attached or otherwise encumbered, and
any purported pledge, alienation, attachment or encumbrance thereof shall be void and unenforceable
against the Company.

     6.3. Tax Withholding. In order to comply with all applicable federal or state income, social
security, payroll, withholding or other tax laws or regulations, the Committee may establish such
policy or policies as it deems appropriate with respect to such laws and regulations, including
without limitation, the establishment of policies to ensure that all applicable federal or state
income, social security, payroll, withholding or other taxes, which are the sole and absolute
responsibility of the Participant, are withheld or collected from such Participant. In order to
assist a Participant in paying all or part of the federal and state taxes to be withheld or
collected upon receipt or payment of (or the lapse of restrictions relating to) an incentive
payment payable hereunder, the Committee, in its sole discretion and subject to such additional
terms and conditions as it may adopt, may permit the Participant to satisfy such tax obligation by
(a) electing to have the Company withhold a portion of the shares of Common Stock otherwise to be
delivered upon payment of (or the lapse of restrictions relating to) an incentive payment

5

 

hereunder
with a fair market value equal to the amount of such taxes or (b) delivering to the Company shares
of Common Stock with a fair market value equal to the amount of such taxes.

     7. Amendment and Termination; Adjustments. Except to the extent prohibited by applicable law
and unless otherwise expressly provided in this Plan:

          (a) Amendments to this Plan. The Board of Directors of the Company may amend, alter, suspend,
discontinue or terminate this Plan, without the approval of the stockholders of the Company, except
that no such amendment, alteration, suspension, discontinuation or termination shall be made that,
absent such approval, would violate the rules or regulations of the National Association of
Securities Dealers, Inc. or any securities exchange that are applicable to the Company.

          (b) Waivers of Incentive Payment Conditions or Rights. The Committee may waive any conditions
or rights of the Company with respect to any incentive payment hereunder, prospectively or
retroactively.

          (c) Limitation on Amendments to Incentive Payment Rights. Neither the Committee nor the
Company may amend, alter, suspend, discontinue or terminate any rights of any Participant to an
incentive payment without the consent of such Participant (or such Participant’s beneficiaries),
except as otherwise herein provided.

          (d) Correction of Defects, Omissions and Inconsistencies. The Committee may correct any
defect, supply any omission or reconcile any inconsistency in this Plan in the manner and to the
extent it shall deem desirable to carry this Plan into effect.

     8. Miscellaneous.

     8.1. Effective Date. This Plan shall be deemed effective, subject to stockholder approval, as
of January 1, 2006.

     8.2. Term of this Plan. Unless this Plan shall have been discontinued or terminated, this
Plan shall terminate on December 31, 2010. No right to receive an incentive payment shall be
granted after the termination of this Plan. However, unless otherwise expressly provided in this
Plan, any right to receive an incentive payment theretofore granted may extend beyond the
termination of this Plan, and the authority of the Board of Directors and the Committee to amend or
otherwise administer this Plan shall extend beyond the termination of this Plan.

     8.3. Headings. Headings are given to the Sections and subsections of this Plan solely as a
convenience to facilitate reference. Such headings shall not be deemed in any way material or
relevant to the construction or interpretation of this Plan or any provision thereof.

     8.4. Applicability to Successors. This Plan shall be binding upon and inure to the benefit of
the Company and each Participant, the successors and assigns of the Company, and the beneficiaries,
personal representatives and heirs of each Participant. If the Company becomes a party to any
merger, consolidation or reorganization, this Plan shall remain in full force and effect as an
obligation of the Company or its successors in interest (except to the extent modified by the terms
of the Stock Incentive Plan with respect to any shares of Common Stock or Restricted Stock Units
issued under Section 6.1 hereof).

     8.5. Employment Rights and Other Benefit Programs. The provisions of this Plan shall not give
any Participant any right to be retained in the employment of the Company. In the absence of any
specific written agreement to the contrary, this Plan shall not affect any right of the Company to
terminate, with or without cause, any Participant’s employment at any time. This Plan shall not
replace any contract of employment between the Company and any Participant, but shall be considered
a supplement thereto. This Plan is in addition to, and not in lieu of, any other

6

 

employee benefit
plan or program in which any Participant may be or become eligible to participate by reason of
employment with the Company. No compensation or benefit awarded to or realized by any Participant
under this Plan shall be included for the purpose of computing such
Participant’s compensation under any compensation-based retirement, disability, or similar
plan of the Company unless required by law or otherwise provided by such other plan.

     8.6. No Trust or Fund Created. This Plan shall not create or be construed to create a trust
or separate fund of any kind or a fiduciary relationship between the Company and a Participant or
any other person. To the extent that any person acquires a right to receive payments from the
Company pursuant to this Plan, such right shall be no greater than the right of any unsecured
general creditor of the Company.

     8.7. Governing Law. The validity, construction and effect of this Plan or any incentive
payment payable under this Plan shall be determined in accordance with the laws of the State of
Delaware.

     8.8. Severability. If any provision of this Plan is or becomes or is deemed to be invalid,
illegal or unenforceable in any jurisdiction such provision shall be construed or deemed amended to
conform to applicable laws, or if it cannot be so construed or deemed amended without, in the
determination of the Committee, materially altering the purpose or intent of this Plan, such
provision shall be stricken as to such jurisdiction, and the remainder of this Plan shall remain in
full force and effect.

     8.9. Qualified Performance-Based Compensation. All of the terms and conditions of this Plan
shall be interpreted in such a fashion as to qualify all compensation paid hereunder as “qualified
performance-based compensation” within the meaning of Section 162(m) of the Code.

7

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