Document:

Exhibit
10.1

January 21,
2008

 

 

 

Galen
Fischer

9410
Mystic Oaks Trail

Austin,
Texas 78750-3815

 

 

 

Dear
Galen:

 

Valence
is pleased to offer you the position of Chief Financial Officer.  You will also hold the title of Assistant
Secretary which duties include, but are not limited to, maintaining corporate
governance and corporate good standing for Valence Technology, Inc. and
all its subsidiaries.

This
letter embodies the terms of our offer of employment to you.

 

You
will report to Robert L. Kanode, President and Chief Executive Officer.

Your
starting salary will be at an annualized rate of $185,000 paid on a bi-weekly
basis.  Since this position is classified
as exempt, you will not be eligible for overtime pay.  You will receive an employee stock option in
the amount of 50,000 shares.  The
exercise price of this option will be the closing value of Valence’s stock on
your first day of employment.  This
option vests over a four-year period; 25% on your anniversary date and 75%
vests quarterly over the remaining three years. 
In the event the Company terminates your employment for other than Good
Cause (as defined in the Footnote below) all options detailed above shall
immediately vest and become exercisable on the date of such Termination for
Other than Good Cause.

 

You
will be eligible to receive medical, dental, vision, and life insurance
coverage provided under Valence’s group insurance plans, and will be eligible
to participate in Valence’s 401(k) plan. 
You will be eligible for three weeks of vacation per year, accrued on a
bi-weekly basis.  These benefit plans are
described in more detail in the plan documents available from the Human
Resources Department.

 

As
a Valence employee you will be expected to abide by company rules and
regulations.  You will be expected to
sign and comply with our employee agreement which requires, among other
provisions, the assignment of patent rights to any invention made during your
employment at Valence and nondisclosure of proprietary information.

 

This
offer is contingent upon successful completion of a background investigation
and reference checks.

 

Additionally,
this offer is subject to your submission of an I-9 form and satisfactory
documentation respecting your identification and right to work in the United
States no later than three days after your employment begins.

 

Valence
is an at will employer.  As an employee
you may terminate employment at any time and for any reason whatsoever with
notice to Valence.  We request that in
the event of resignation, you give the company at least 30 days notice.  Similarly, Valence may terminate your
employment at any time and for any reason whatsoever, with or without
cause.  In the event the Company terminates
your employment for other than Good Cause (as defined in the Footnote below)
Valence will provide you with three months salary payable as of the date of
termination.

 

 

	
  Galen
  Fischer

  	
   

  	
  January 21, 2008

  

 

 

 

If
you wish to accept employment at Valence under the terms set out above, please
sign and date this letter, and return it to me at your earliest convenience.

 

We
look forward to your favorable reply and to a productive and exciting work
relationship.

 

Sincerely,

 

	
  /s/ Robert L.
  Kanode

  
	
   

  
	
  Robert
  L. Kanode

  
	
  President
  and Chief Executive Officer

  

 

 

 

	
  Galen
  H. Fischer

  	
   

  	
  February 4, 2008

  	
   

  
	
  Approved
  and Accepted

  	
   

  	
  Date

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Cc:
  Cheryl Logan

  	
   

  

 

 

 

Footnote:

For
purposes of the Agreement, “Good Cause” shall mean and include termination by
reason of (a) your conviction (including any plea of guilty or no contest)
of (i) any felony or misdemeanor involving the embezzlement, theft or
misappropriation of monies or other property of the Company and (ii) any
felony involving the embezzlement, theft or misappropriation of monies or other
property or crime of moral turpitude; (b)  your willful and continued
neglect by you of your duties as Chief Financial Officer, but only if such
neglect continues for 30 days following receipt by you of written notice from
the Company specifying such breach and demanding that you cure such breach, and
(c) your willful failure to abide by the Company’s policies applicable to
your employment.  In the event your
employment is terminated in accordance for “Good Cause,” you shall be entitled
to receive only your base salary then in effect, prorated to the date of termination,
and any benefits and expense reimbursement to which you are entitled by virtue
of your employment with the Company.

 

 

2Exhibit
10.1

 

EXECUTION
COPY

 

 

 

 

 

MASTER ALLIANCE AGREEMENT

 

BY AND BETWEEN

 

ACI WORLDWIDE, INC.

 

AND

 

INTERNATIONAL BUSINESS MACHINES
CORPORATION

 

Dated as of December 16,
2007

 

 

 

 

 

 

 

 

 

TABLE OF CONTENTS

 

	
   

  	
  Page

  
	
   

  
	
  ARTICLE I

  
	
   

  
	
  Definitions

  
	
   

  
	
  SECTION 1.01.

  	
  Defined
  Terms

  	
  2

  
	
  SECTION 1.02.

  	
  Other
  Defined Terms

  	
  7

  
	
  SECTION 1.03.

  	
  Terms
  Generally

  	
  8

  
	
  SECTION 1.04.

  	
  Meaning
  of Day

  	
  9

  
	
   

  
	
  ARTICLE II

  
	
   

  
	
  Representations and Warranties of ACI

  
	
   

  
	
  SECTION 2.01.

  	
  Organization
  and Standing

  	
  9

  
	
  SECTION 2.02.

  	
  Capital
  Stock, Warrants and Warrant Shares

  	
  9

  
	
  SECTION 2.03.

  	
  Authorization

  	
  10

  
	
  SECTION 2.04.

  	
  No
  Conflicts

  	
  10

  
	
  SECTION 2.05.

  	
  Execution
  and Delivery; Enforceability

  	
  11

  
	
  SECTION 2.06.

  	
  No
  Consents

  	
  11

  
	
  SECTION 2.07.

  	
  No
  Litigation

  	
  11

  
	
  SECTION 2.08.

  	
  Financial
  Statements

  	
  11

  
	
  SECTION 2.09.

  	
  ACI
  Software

  	
  11

  
	
  SECTION 2.10.

  	
  Performance
  of Services

  	
  12

  
	
  SECTION 2.11.

  	
  General

  	
  12

  
	
   

  
	
  ARTICLE III

  
	
   

  
	
  Representations and Warranties of IBM

  
	
   

  
	
  SECTION 3.01.

  	
  Organization
  and Standing

  	
  12

  
	
  SECTION 3.02.

  	
  Warrants
  and Warrant Shares

  	
  12

  
	
  SECTION 3.03.

  	
  Authorization

  	
  12

  
	
  SECTION 3.04.

  	
  No
  Conflicts

  	
  13

  
	
  SECTION 3.05.

  	
  Execution
  and Delivery; Enforceability

  	
  13

  
	
  SECTION 3.06.

  	
  No
  Consents

  	
  13

  
	
  SECTION 3.07.

  	
  No
  Litigation

  	
  13

  
	
  SECTION 3.08.

  	
  Provision
  of Assistance

  	
  13

  
	
  SECTION 3.09.

  	
  General

  	
  13

  

 

 

i

 

ACI WORLDWIDE, INC. HAS REQUESTED
THAT

THE PORTIONS OF THIS DOCUMENT
DENOTED

BY BOXES AND ASTERISKS BE
ACCORDED

CONFIDENTIAL TREATMENT PURSUANT
TO

RULE 24b-2 PROMULGATED UNDER THE

SECURITIES EXCHANGE ACT OF 1943.

 

	
  ARTICLE IV

  
	
   

  
	
  Covenants

  
	
   

  
	
  SECTION 4.01.

  	
  [_*_]

  	
  14

  
	
  SECTION 4.02.

  	
  Notices

  	
  14

  
	
  SECTION 4.03.

  	
  Further
  Action

  	
  14

  
	
  SECTION 4.04.

  	
  Certain
  Contemplated Actions

  	
  14

  
	
  SECTION 4.05.

  	
  [_*_]

  	
  14

  
	
   

  
	
  ARTICLE V

  
	
   

  
	
  Management and Governance

  
	
   

  
	
  SECTION 5.01.

  	
  Alliance
  Management Teams

  	
  15

  
	
  SECTION 5.02.

  	
  Alliance
  Management Council

  	
  15

  
	
  SECTION 5.03.

  	
  Senior
  Alliance Executive

  	
  16

  
	
   

  
	
  ARTICLE VI

  
	
   

  
	
  Other Agreements

  
	
   

  
	
  SECTION 6.01.

  	
  Grant
  of Warrants

  	
  16

  
	
  SECTION 6.02.

  	
  Publicity
  and Disclosure

  	
  16

  
	
  SECTION 6.03.

  	
  Facilities

  	
  17

  
	
  SECTION 6.04.

  	
  Logo
  Licensing

  	
  17

  
	
  SECTION 6.05.

  	
  Pricing

  	
  19

  
	
  SECTION 6.06.

  	
  Termination
  of Existing Agreements

  	
  19

  
	
  SECTION 6.07.

  	
  Services
  Agreement

  	
  19

  
	
  SECTION 6.08.

  	
  Payments

  	
  21

  
	
  SECTION 6.09.

  	
  Transition
  Obligations

  	
  21

  
	
  SECTION 6.10.

  	
  Intellectual
  Property

  	
  21

  
	
   

  
	
  ARTICLE VII

  
	
   

  
	
  Delivery

  
	
   

  
	
  SECTION 7.01.

  	
  Delivery

  	
  25

  
	
   

  
	
  ARTICLE VIII

  
	
   

  
	
  Term and Termination

  
	
   

  
	
  SECTION 8.01.

  	
  Term

  	
  25

  
				

 

 

ii

 

	
  SECTION 8.02.

  	
  Termination

  	
  25

  
	
  SECTION 8.03.

  	
  Termination
  Notice

  	
  26

  
	
  SECTION 8.04.

  	
  Effect
  of Termination

  	
  27

  
	
   

  
	
  ARTICLE IX

  
	
   

  
	
  Confidentiality

  
	
   

  
	
  SECTION 9.01.

  	
  Confidential
  Information

  	
  28

  
	
  SECTION 9.02.

  	
  Confidentiality
  Obligations

  	
  28

  
	
  SECTION 9.03.

  	
  Confidentiality
  Period

  	
  30

  
	
  SECTION 9.04.

  	
  Exceptions
  to Confidentiality Obligations

  	
  30

  
	
  SECTION 9.05.

  	
  Residual
  Information

  	
  30

  
	
  SECTION 9.06.

  	
  Disclaimers

  	
  30

  
	
   

  
	
  ARTICLE X

  
	
   

  
	
  Indemnification and Limitation on Liability

  
	
   

  
	
  SECTION 10.01.

  	
  Indemnification

  	
  31

  
	
  SECTION 10.02.

  	
  Remedies

  	
  31

  
	
  SECTION 10.03.

  	
  Claims
  for which the Parties are not Responsible

  	
  32

  
	
  SECTION 10.04.

  	
  Limitation
  on Liability

  	
  33

  
	
  SECTION 10.05.

  	
  General

  	
  34

  
	
   

  
	
  ARTICLE XI

  
	
   

  
	
  Dispute Resolution.

  
	
   

  
	
  SECTION 11.01.

  	
  Intention
  of the Parties

  	
  34

  
	
  SECTION 11.02.

  	
  Procedures

  	
  34

  
	
   

  
	
  ARTICLE XII

  
	
   

  
	
  Miscellaneous

  
	
   

  
	
  SECTION 12.01.

  	
  Severability

  	
  36

  
	
  SECTION 12.02.

  	
  Amendments

  	
  36

  
	
  SECTION 12.03.

  	
  Waiver

  	
  36

  
	
  SECTION 12.04.

  	
  No
  Assignment

  	
  36

  
	
  SECTION 12.05.

  	
  Expenses

  	
  37

  
	
  SECTION 12.06.

  	
  Construction

  	
  37

  
	
  SECTION 12.07.

  	
  Language

  	
  37

  
	
  SECTION 12.08.

  	
  Relationship
  of the Parties

  	
  37

  
	
  SECTION 12.09.

  	
  Entire
  Agreement

  	
  37

  

 

 

iii

 

	
  SECTION 12.10.

  	
  Force
  Majeure

  	
  37

  
	
  SECTION 12.11.

  	
  Counterparts

  	
  38

  
	
  SECTION 12.12.

  	
  Governing
  Law

  	
  38

  
	
  SECTION 12.13.

  	
  Order
  of Precedence

  	
  38

  
	
  SECTION 12.14.

  	
  Notices

  	
  38

  

 

 

EXHIBITS

 

	
  EXHIBIT A

  	
  —

  	
  ACI LOGO

  
	
  EXHIBIT
  B

  	
  —

  	
  IBM
  LOGO

  
	
  EXHIBIT
  C-1

  	
  —

  	
  FORM OF
  JOINT PRESS RELEASE

  
	
  EXHIBIT
  C-2

  	
  —

  	
  EXCERPT
  OF ACI PRESS RELEASE

  
	
  EXHIBIT
  D

  	
  —

  	
  CERTAIN
  TERMS OF SERVICES AGREEMENT

  
	
  EXHIBIT
  E

  	
  —

  	
  FORM OF
  RECEIPT

  
	
  EXHIBIT
  F

  	
  —

  	
  ENHANCEMENTS

  

 

ANNEXES

 

	
  ANNEX
  A

  	
  —

  	
  ACI
  LOGO USAGE GUIDELINES

  
	
  ANNEX
  B

  	
  —

  	
  IBM
  LOGO USAGE GUIDELINES

  

 

 

iv

 

 

MASTER
ALLIANCE AGREEMENT

 

THIS
MASTER ALLIANCE AGREEMENT (this “Agreement”), dated as of December 16,
2007, is made and entered into by and between ACI WORLDWIDE, INC., a Delaware
corporation (“ACI”), and INTERNATIONAL BUSINESS MACHINES CORPORATION, a
New York corporation (“IBM”).  ACI
and IBM are each referred to herein as a “Party” and collectively as the
“Parties”.

 

RECITALS

 

                A.            WHEREAS,
the Parties wish to enter into certain commercial and other arrangements
relating to the integration of ACI’s retail and wholesale electronic payment
application software with IBM’s middleware and hardware platforms for the
purposes of developing new and enhancing existing electronic payment technology
and products and otherwise improving each Party’s ability to satisfy its
customer needs, such efforts to be completed pursuant to the terms and subject
to the conditions provided in this Agreement and in the other Alliance
Agreements (such arrangements, as evidenced by the Alliance Agreements,
collectively, the “Alliance”).

 

B.            WHEREAS, simultaneously with the
execution of this Agreement, the Parties are entering into (a) the Sales
and Marketing Agreement regarding the sales, marketing and communications
strategy and obligations of the Parties, (b) the Enablement Assistance
Agreement regarding the Parties’ development projects and product compatibility
requirements, (c) the Staff Augmentation Agreement regarding certain
services to be provided by IBM to ACI in connection with the implementation of
the Parties’ development projects, (d) the Subcontracting Agreements
setting forth the relationship of the Parties in the event that, in connection
with providing services to any customer of the Parties in respect of the
Alliance, one Party serves as a subcontractor of the other Party and (e) the
Warrant Agreements setting forth the terms and conditions of the Warrants
granted by ACI to IBM on the date hereof (collectively, together with this
Agreement, the “Alliance Agreements”).

 

C.            WHEREAS, after the date hereof, the
Parties will negotiate in good faith the terms of the Services Agreement
regarding certain information technology and on-demand services to be provided
by IBM to ACI.

 

D.            WHEREAS, certain terms used in this
Agreement shall have the meanings ascribed to them in the text of this
Agreement or in Article I. 
The Exhibits and Annexes to this Agreement are all integral parts
hereof.

 

NOW,
THEREFORE, in consideration of the foregoing recitals and the representations,
warranties, covenants and agreements contained herein, and of other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Parties hereby agree as follows:

 

 

1

 

ACI WORLDWIDE, INC. HAS REQUESTED
THAT

THE PORTIONS OF THIS DOCUMENT DENOTED

BY BOXES AND ASTERISKS BE ACCORDED

CONFIDENTIAL TREATMENT PURSUANT TO

RULE 24b-2 PROMULGATED UNDER THE

SECURITIES EXCHANGE ACT OF 1934.

 

ARTICLE I

 

Definitions

 

SECTION 1.01.  Defined Terms.  As used in this Agreement, the following
terms shall have the meanings specified below:

 

“ACI
Logo” shall mean the logo of ACI identified in Exhibit A.

 

“ACI
Logo Usage Guidelines” shall mean the guidelines attached as Annex A.  ACI may modify such guidelines from time to
time upon 60 days prior written notice to IBM.

 

“ACI
Software”  shall have the meaning set forth in the Enablement Assistance Agreement.

 

“ACI
Website” shall mean ACI’s Website located at the following
address:  http://www.aciworldwide.com.

 

“Affiliate”
shall mean, with respect to any Person, any other Person that directly, or
indirectly through one or more intermediaries, Controls or is Controlled by or
is under common Control with the Person specified.

 

“Alliance-Related
Employee” shall mean any employee of ACI or IBM, as the case may be, who is
made known to the other Party as a result of activities performed by such
employee pursuant to the Alliance.

 

“Applicable
Law” shall mean (a) any United States Federal, state, local or foreign
law, statute, rule or regulation, or any order, writ, injunction,
judgment, decree or permit of any Governmental Authority, or (b) any rule or
listing requirement of any national stock exchange or Commission-recognized
trading market on which securities issued by either of the Parties or any of
their Subsidiaries are listed or quoted.

 

“Bankruptcy”
shall mean, with respect to either Party, (a) the voluntary commencement
of any proceeding or the voluntary filing of any petition by such Party seeking
relief under any bankruptcy, insolvency, receivership or similar law; (b) the
consent by such Party to the institution of, or the failure by such Party to
contest in a timely and appropriate manner, any involuntary petition or any
involuntary filing of the type described in clause (a) above; (c) such
Party ceasing to do business as a going concern; (d) an assignment being
made for the benefit of such Party’s creditors; (e) such Party being
adjudicated a bankrupt or an insolvent; or (f) the appointment of a
trustee, receiver, liquidator or statutory manager in respect of such Party or
all or any substantial part of such Party’s assets or properties.

 

[_*_]

 

 

2

 

“Base
Alliance Agreements” shall mean, collectively, this Agreement, the Sales
and Marketing Agreement, the Enablement Assistance Agreement, the Staff
Augmentation Agreement and the Subcontracting Agreements.

 

“Business
Day” shall mean any day other than a Saturday or a Sunday on which banks
are legally authorized to be open for the transaction of business in New York
City.

 

“Business
Partner” shall mean certain organizations that IBM has signed agreements
with to promote, market and support certain IBM products and services.

 

“Capital
Stock” shall mean any and all shares, interests, participations or other
equivalents (however designated) of corporate stock, and any option, warrant or
other right entitling the holder thereof to purchase or otherwise acquire any
such corporate stock.

 

“Change
in Control” shall mean (a) the acquisition of ownership, directly or
indirectly, beneficially or of record, by any Person or group (within the
meaning of the Exchange Act) of Capital Stock representing more than 35% of the
aggregate ordinary voting power represented by the issued and outstanding
Capital Stock of ACI or (b) a majority of the members of the Board of
Directors of ACI not consisting of Continuing Directors.

 

“Commission”
shall mean the U.S. Securities and Exchange Commission.

 

“Combined
Solution” shall have the meaning set forth in the Sales and Marketing
Agreement.

 

“Confidentiality
Agreement” shall mean the Agreement for Exchange of Confidential
Information by and between ACI and IBM dated October 10, 2007.

 

“Continuing
Directors” shall mean, as of any date of determination, any member of the
Board of Directors of ACI who (a) was a member of such Board of Directors
on the date hereof or (b) was nominated for election by the Nominating and
Corporate Governance Committee of the Board of Directors of ACI or elected to
such Board of Directors with the approval of at least two-thirds of the
Continuing Directors who were members of such Board of Directors at the time of
such election.

 

“Control”
shall mean the possession, directly or indirectly, of the power to direct or
cause the direction of the management or policies of a Person, whether through
the ability to exercise voting power, by contract or otherwise.  The terms “Controlling” and “Controlled”
have meanings correlative thereto.

 

“Deliverables”
shall have the meaning set forth in the
Enablement Assistance Agreement.

 

“Enablement
Assistance Agreement” shall mean the IBM Enablement Assistance Agreement (No. 4907021871)
by and between ACI and IBM dated the date hereof, 

 

 

3

 

 

ACI WORLDWIDE, INC. HAS REQUESTED
THAT

THE PORTIONS OF THIS DOCUMENT DENOTED

BY BOXES AND ASTERISKS BE ACCORDED

CONFIDENTIAL TREATMENT PURSUANT TO

RULE 24b-2 PROMULGATED UNDER THE

SECURITIES EXCHANGE ACT OF 1934.

 

together with all exhibits, annexes and attachments thereto, as the
same may be amended, modified and supplemented from time to time.

 

“Enablement
Project Attachment” shall have the meaning set forth in the Enablement
Assistance Agreement.

 

“Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended, and the rules and
regulations of the Commission promulgated thereunder.

 

“Existing
Alliance Agreement” shall mean the ISV Advantage for Industries Agreement (No. 2006-NA-ST164)
by and between ACI and IBM dated November 16, 2006.

 

“Existing
Sales Incentive Agreement” shall mean the IBM Sales Incentive Agreement (No. 2007-NA-PS50)
by and between ACI and IBM dated June 15, 2007.

 

“Governmental
Authority” shall mean any international, supranational, national,
provincial, regional, Federal, state, municipal or local government, any
instrumentality, subdivision, court, administrative or regulatory agency or
commission or other authority thereof, or any quasi-governmental or private
body exercising any regulatory, taxing, importing or other governmental or
quasi-governmental authority.

 

                “Harmful Code” shall mean any
computer programming code which is constructed with the intent to damage,
interfere with or otherwise adversely affect other computer programs, data
files or hardware, without the knowledge or consent of the computer user.  “Harmful Code” includes, but is not
limited to, self-replicating and self-propagating program instructions commonly
referred to as “viruses” or “worms”.

 

[_*_]

 

“IBM
Assistance” shall mean IBM technical resources, assistance and expertise,
excluding software development resources, which IBM provides ACI pursuant to Section 5.2
of the Enablement Assistance Agreement.

 

“IBM
Logo” shall mean the logo of IBM identified in Exhibit B.

 

“IBM
Logo Usage Guidelines” shall mean the guidelines attached as Annex B.  IBM may modify such guidelines from time to
time upon 60 days prior written notice to ACI.

 

“IBM
Resources” shall have the meaning set forth in the Enablement Assistance
Agreement.

 

“IBM
Software”  shall have the meaning set forth in the Enablement Assistance Agreement.

 

 

4

 

ACI WORLDWIDE, INC. HAS REQUESTED
THAT

THE PORTIONS OF THIS DOCUMENT DENOTED

BY BOXES AND ASTERISKS BE ACCORDED

CONFIDENTIAL TREATMENT PURSUANT TO

RULE 24b-2 PROMULGATED UNDER THE

SECURITIES EXCHANGE ACT OF 1934.

 

“IBM
Website” shall mean IBM’s Website located at the following
address:  http://www.ibm.com.

 

“Incentives”
shall have the meaning given to such term in the Sales and Marketing Agreement.

 

“Invention”
shall mean any idea, concept, know-how, technique, invention, discovery or
improvement, whether or not patentable, that either Party, solely (“Sole
Inventions”) or jointly with the other Party (“Joint Inventions”),
first conceives and reduces to practice during the term of the Alliance in the
performance of an Alliance Agreement.

 

“Joint
Inventions” shall have the meaning set forth in the definition of “Invention”.

 

“Large
Accounts” shall have the meaning
set forth in the Sales and Marketing Agreement.

 

“Logo”
shall mean the IBM Logo or the ACI Logo, as the context requires.

 

“Marketing
Materials” shall mean only brochures, specifications, flyers and other
printed marketing documents.  Marketing
Materials shall not include products, product packaging, program screens or
promotional items (such as clothing, bags, glassware and writing instruments).

 

“Materials”
shall mean (a) source code, executable code, technical documentation and
all derivative works and enhancements thereto, (b) domestic and foreign
copyrights and copyrightable works and (c) copyright applications filed by
a Party, which are created and delivered in performance of an Alliance
Agreement.  The term “Materials” does not
include licensed programs and other items available under their own license
terms or agreements.

 

“Mega
Accounts” shall have the meaning
set forth in the Sales and Marketing Agreement.

 

[_*_]

 

“Optimization”
shall have the meaning set forth in the
Enablement Assistance Agreement.

 

“Optimized
Product” shall have the meaning set forth in the Enablement Assistance
Agreement.

 

 

5

 

“Patent”
shall mean (a) domestic and foreign patents issuing to Inventions,
together with all reissuances, continuations, divisionals, revisions,
extensions and reexaminations thereof, and (b) patent applications to
Inventions filed by a Party.

 

“Person”
shall mean any natural person, corporation, general partnership, limited
partnership, limited or unlimited liability company, proprietorship, joint
venture, other business organization, trust, union, association, Governmental
Authority or other entity.

 

“Proceeding”
shall mean any action, litigation, arbitration, suit, claim, proceeding or
investigation or review of any nature, civil, criminal, regulatory or
otherwise, before any Governmental Authority.

 

“Sales
and Marketing Agreement” shall mean the Sales and Marketing Agreement (No. 2007-NA-SMT001)
by and between ACI and IBM dated the date hereof, together with all exhibits,
annexes and attachments thereto, as the same may be amended, modified and supplemented
from time to time.

 

“Securities
Act” shall mean the Securities Act of 1933, as amended, and the rules and
regulations of the Commission promulgated thereunder.

 

“Services”
shall mean the services to be provided by ACI pursuant to the Enablement Assistance
Agreement, including accomplishment of the Deliverables, and as more fully set
forth in the applicable Enablement Project Attachments to the Enablement
Assistance Agreement.

 

“Services
Agreement” shall mean the agreement relating to the outsourcing of certain
information technology and on-demand services by ACI to IBM, together with all
exhibits, annexes and attachments thereto, to be negotiated in good faith by
the Parties on terms consistent with the terms set forth in Section 6.07,
as the same may be amended, modified and supplemented from time to time.

 

“Sole
Inventions” shall have the meaning set forth in the definition of “Invention”.

 

“Staff
Augmentation Agreement” shall mean the Master Staff Augmentation Agreement
by and between ACI and IBM dated the date hereof, together with all exhibits,
annexes and attachments thereto, as the same may be amended, modified and
supplemented from time to time.

 

“Subcontracting
Agreements” shall mean, collectively, (a) the International Master
Agreement for Subcontracting by and between ACI, as prime contractor, and IBM,
as subcontractor, dated the date hereof, and (b)  the International Master
Agreement for Subcontracting by and between IBM, as prime contractor, and ACI,
as subcontractor, dated the date hereof, in each case (i) together with
all exhibits, annexes and attachments thereto and (ii) as the same may be
amended, modified and supplemented from time to time.

 

 

6

 

“Subsidiary” of any Person shall mean a
corporation, company or other entity (a) more than 50% of whose
outstanding shares or securities (representing the right to vote for the
election of directors or other managing authority of such Person) are owned or
Controlled, directly or indirectly, by such Person, but such corporation,
company or other entity shall be deemed to be a Subsidiary only so long as such
ownership or Control exists, or (b) which does not have outstanding shares
or securities (as may be the case in a partnership, limited liability company,
joint venture or unincorporated association), but more than 50% of whose
ownership interest representing the right to make decisions for such entity is,
now or hereafter owned or Controlled, directly or indirectly, by such Person,
but such corporation, company or other entity shall be deemed to be a
Subsidiary only so long as such ownership or Control exists.

 

“Transaction
Document” shall have the meaning set forth in the Subcontracting
Agreements.

 

“Warrant
Agreements” shall mean, collectively, the Warrant Agreements by and between
ACI and IBM, dated the date hereof, together with all attachments thereto, as
the same may be amended, modified and supplemented from time to time.

 

“Warrant
Shares” shall have the meaning ascribed to such term in the Warrant
Agreements.

 

“Website”
shall mean the IBM Website or the ACI Website, as the context requires.

 

SECTION 1.02.  Other Defined Terms.  As used in this Agreement, the following
terms shall have the meanings given in the Sections set forth opposite such
terms:

 

 

	
  Term

  	
   

  	
  Section

  
	
  ACI

  	
   

  	
  Preamble

  
	
  ACI Bylaws

  	
   

  	
  2.02(c)

  
	
  ACI Charter

  	
   

  	
  2.02(c)

  
	
  ACI Common Stock

  	
   

  	
  2.02(a)

  
	
  ACI Preferred Stock

  	
   

  	
  2.02(a)

  
	
  Agreement

  	
   

  	
  Preamble

  
	
  Alliance

  	
   

  	
  Recitals

  
	
  Alliance Agreements

  	
   

  	
  Recitals

  
	
  Alliance Executive

  	
   

  	
  5.01

  
	
  AMC

  	
   

  	
  5.02

  
	
  AMT

  	
   

  	
  5.01

  
	
  Confidential Information

  	
   

  	
  9.01

  
	
  Defaulting Party

  	
   

  	
  8.02(b)

  

 

 

7

 

ACI WORLDWIDE, INC. HAS REQUESTED
THAT

THE PORTIONS OF THIS DOCUMENT DENOTED

BY BOXES AND ASTERISKS BE ACCORDED

CONFIDENTIAL TREATMENT PURSUANT TO

RULE 24b-2 PROMULGATED UNDER THE

SECURITIES EXCHANGE ACT OF 1934.

 

	
  Term

  	
   

  	
  Section

  
	
  Development Executive

  	
   

  	
  5.02(a)(iii)

  
	
  Disclosing Party

  	
   

  	
  9.01

  
	
  Finance Executive

  	
   

  	
  5.02(a)(v)

  
	
  IBM

  	
   

  	
  Preamble

  
	
  IBM By-laws

  	
   

  	
  3.04(a)(i)

  
	
  IBM Charter

  	
   

  	
  3.04(a)(i)

  
	
  IBM Personnel

  	
   

  	
  10.01(b)

  
	
  Indemnified Party

  	
   

  	
  10.01

  
	
  Indemnifying Party

  	
   

  	
  10.01

  
	
  Initial Payment

  	
   

  	
  6.08(a)(i)

  
	
  Initial Termination Notice

  	
   

  	
  8.01

  
	
  [_*_]

  	
   

  	
  [_*_]

  
	
  Migration Executive

  	
   

  	
  5.02(a)(iv)

  
	
  [_*_]

  	
   

  	
  [_*_]

  
	
  Party

  	
   

  	
  Preamble

  
	
  Prime Contractor

  	
   

  	
  6.10(f)(i)

  
	
  Receiving Party

  	
   

  	
  9.01

  
	
  [_*_]

  	
   

  	
  [_*_]

  
	
  Residual Ideas

  	
   

  	
  6.10(i)

  
	
  Residual Information

  	
   

  	
  9.05

  
	
  Sales Executive

  	
   

  	
  5.02(a)(ii)

  
	
  Senior Alliance Executive

  	
   

  	
  5.03(a)

  
	
  Subcontractor

  	
   

  	
  6.10(f)(i)

  
	
  Terminating Party

  	
   

  	
  8.02(b)

  
	
  Termination Notice

  	
   

  	
  8.03

  
	
  Warrants

  	
   

  	
  6.01

  

 

 

SECTION 1.03.  Terms Generally.  Unless the context shall otherwise require,
all defined terms shall apply equally to both the singular and plural forms of
the terms defined. The words “include”, “includes” and “including” shall be
deemed to be followed by the phrase “without limitation”; and the word “will”
shall be construed to have the same meaning and effect as the word “shall”.  All references herein to Articles, Sections,
Exhibits and Annexes shall be deemed to be references to Articles and Sections
of, and Exhibits and Annexes to, this Agreement unless the context shall
otherwise require.  The table of contents
and the headings of the Articles and Sections are inserted for convenience of
reference only and are not intended to be a part of or to affect the meaning or
interpretations of this Agreement. 
Unless the context shall otherwise require, any reference to any
agreement or other instrument or statute or regulation is to such agreement,
instrument, statute or regulation as amended and supplemented from time to time
(and, in the case of a statute or regulation, to any successor provision).

 

 

8

 

SECTION 1.04.  Meaning of Day.  Any reference in this Agreement to a “day” or
a number of “days” (without the explicit qualification of “Business”) shall be
interpreted as a reference to a calendar day or number of calendar days.  If any action or notice is to be taken or
given on or by a particular calendar day, and such calendar day is not a
Business Day, then such action or notice shall be deferred until, or may be
taken or given, on the next Business Day.

 

ARTICLE II

 

Representations and Warranties of
ACI

 

ACI
hereby represents and warrants to IBM that:

 

SECTION 2.01.  Organization and Standing.  ACI (a) is a corporation duly incorporated,
validly existing and in good standing under the laws of the State of Delaware
and (b) has all requisite power and authority to conduct its business as
now conducted and as presently contemplated and to perform its obligations
under the  Alliance Agreements.

 

SECTION 2.02.  Capital Stock, Warrants and Warrant Shares.

 

(a)  The authorized Capital Stock of ACI
consists of (i) 70,000,000 shares of common stock, par value $0.005, of
ACI (“ACI Common Stock”) and (ii) 5,000,000 shares of preferred stock,
par value $0.01, of ACI (“ACI Preferred Stock”). As of December 12,
2007, (1) 35,675,884 shares of ACI Common Stock were issued and
outstanding and no shares of ACI Preferred Stock were issued and outstanding, (2) 5,145,632
shares of ACI Common Stock were held in the treasury of ACI and (3) 3,893,404
shares of ACI Common Stock were reserved for issuance upon (x) exercise of
then-outstanding options to purchase ACI Common Stock and (y) payout of
shares of ACI Common Stock pursuant to then-outstanding performance share
awards based on targeted award amounts, including options and performance
shares granted to officers, directors or employees of ACI pursuant to ACI’s
incentive plans.  Since December 12,
2007, other than upon exercise of options included in clause (3) of the
immediately preceding sentence, (x) no shares of Capital Stock of ACI have
been issued and (y) no options, warrants, securities convertible into, or
commitments with respect to the issuance of shares of Capital Stock of ACI have
been issued, granted or made.

 

(b)  Except as set forth in Section 2.02(a),
as of the date hereof, there are no outstanding subscriptions, options, calls,
contracts, commitments, restrictions, arrangements, rights or warrants,
including any right of conversion or exchange under any outstanding security,
instrument or other agreement and also including any rights plan, obligating
ACI or any Subsidiary of ACI to issue, deliver or sell, or to cause to be
issued, delivered or sold, additional shares of the Capital Stock of ACI or
obligating ACI or any of its Subsidiaries to grant, extend or enter into any
such agreement or commitment.  There are
no outstanding stock appreciation rights or similar derivative securities or
rights issued by ACI or any of its Subsidiaries or to which ACI or any of its
Subsidiaries is a party.

 

 

9

 

(c)  Each of the Warrants and the
Warrant Shares have been duly authorized. 
When the Warrant Shares are issued and delivered in accordance with the
terms of the respective Warrant Agreement, such Warrant Shares will have been
validly issued and will be fully paid and nonassessassable and free from all
taxes, liens, claims and encumbrances, and the issuance thereof will not have
been subject to any purchase option, right of first refusal, subscription right
or preemptive right or made in contravention of the Amended and Restated
Certificate of Incorporation of ACI, as in effect on the date hereof (the “ACI
Charter”) or the Amended and Restated Bylaws of ACI, as in effect on the
date hereof (the “ACI Bylaws”) or any Applicable Law.

 

(d)  ACI has reserved solely for
issuance and delivery, upon the exercise of the Warrants, the number of shares
of ACI Common Stock that would be issuable if the Warrants were exercised in
full immediately after the execution and delivery of the Warrant Agreements.

 

(e)  Neither ACI, nor any of its
Affiliates, nor any Person acting on its or their behalf, has directly or
indirectly made any offers or sales of any security or solicited any offers to
buy any security under circumstances that would require registration, or the
filing of a prospectus qualifying the distribution, of the Warrants being
issued pursuant to the Warrant Agreements under the Securities Act or cause the
issuance of the Warrants to be integrated with any prior offering of securities
of ACI for purposes of the Securities Act.

 

(f)  IBM will, upon issuance of the
Warrant Shares, have the rights set forth in the Warrant Agreements and under
the General Corporation Law of the State of Delaware.

 

(g)  Except for registration of
securities on Form S-8 pursuant to employee compensation and incentive
plans of ACI, there are no agreements or plans in effect on the date of this
Agreement pursuant to which ACI has agreed to register any of its securities
under the Securities Act.

 

SECTION 2.03.  Authorization.  The execution, delivery and performance by
ACI of the Alliance Agreements have been duly authorized by all necessary
corporate action.

 

SECTION 2.04.  No Conflicts.  The execution, delivery and performance by
ACI of the Alliance Agreements do not, and the performance of its obligations
thereunder and compliance with the terms thereof by ACI will not, conflict
with, or result in any violation of or default (with or without notice or lapse
of time, or both) under, any provision of (i) the ACI Charter or the ACI
Bylaws, (ii) any contract to which ACI or any of its Subsidiaries is a
party or by which any of their respective properties or assets is bound or (iii) any
Applicable Law, except, with respect to clause (ii) only, for such of the
foregoing that is, individually and in the aggregate, immaterial to ACI and its
Subsidiaries, taken as a whole, and that does not, individually or in the
aggregate, affect the ability of ACI to timely perform its obligations under
the Alliance Agreements.

 

 

10

 

 

SECTION 2.05.  Execution and Delivery; Enforceability.  Each Alliance Agreement has been duly
executed and delivered by ACI, and is a legal, valid and binding obligation of
ACI, enforceable against ACI in accordance with its terms, except as may be
limited by applicable bankruptcy, insolvency, moratorium and other laws
affecting the rights of creditors generally and general principles of equity.

 

SECTION 2.06.  No Consents.  No authorization, consent, approval, license,
exemption or other action by, and no registration, qualification, designation,
declaration or filing with, any Governmental Authority is or will be necessary (a) in
connection with the execution and delivery by ACI of this Agreement and the
other Alliance Agreements, the consummation of the transactions contemplated
hereby and thereby, or the performance of or compliance with the terms and
conditions hereof or thereof, or (b) to ensure the legality, validity and
enforceability of any of the Alliance Agreements.

 

SECTION 2.07.  No Litigation.  As of the date hereof, there is no litigation or other proceeding pending or, to the knowledge of
ACI, threatened against ACI or any of its Affiliates which, if adversely
determined, could reasonably be expected to adversely affect the ability of ACI
to perform its obligations hereunder or under any of the other Alliance
Agreements.

 

SECTION 2.08.  Financial
Statements.  The audited consolidated financial statements
and unaudited consolidated interim financial statements of ACI included in the
reports, schedules, forms, statements and other documents filed with the
Commission by ACI since January 1, 2007 fairly present, in all material
respects, the consolidated financial position of ACI and its Subsidiaries as of
the dates thereof and their consolidated results of operations and cash flows
for the periods then ended (subject to, in the case of unaudited interim
financial statements, normal year end adjustments).

 

SECTION 2.09.  ACI
Software.

 

(a)  Following Optimization pursuant to
the Enablement Assistance Agreement, the ACI Software shall substantially
comply with the specifications and requirements set forth in the Enablement
Assistance Agreement.

 

(b)  Following Optimization pursuant to
the Enablement Assistance Agreement, the ACI Software that interacts in any
capacity with monetary data that is required to be euro-ready at such time of
use shall be euro-ready such that when used in accordance with its associated
documentation it is capable of correctly processing monetary data in the euro
denomination and respecting the euro currency formatting conventions (including
the euro sign).

 

(c)  The ACI Software and Deliverables
furnished by ACI pursuant to the Enablement Assistance Agreement, prior to its
use on any system or other medium in connection with the Enablement Assistance
Agreement, shall be tested (in accordance with ACI’s applicable testing
standards) for, and will not, to ACI’s knowledge, contain, Harmful Code.

 

 

11

 

SECTION 2.10.  Performance of Services.  ACI shall perform the Services using
reasonable care and skill and in accordance with the Enablement Assistance
Agreement.

 

SECTION 2.11.  General.  EXCEPT AS EXPRESSLY SET FORTH IN ANY  ALLIANCE AGREEMENT, ACI EXPRESSLY DISCLAIMS
ANY AND ALL EXPRESS OR IMPLIED WARRANTIES OF NON-INFRINGEMENT, MERCHANTABILITY
AND FITNESS FOR A PARTICULAR PURPOSE. 
EXCEPT AS EXPRESSLY SET FORTH IN ANY ALLIANCE AGREEMENT, ANY ACI
SOFTWARE, SERVICES OR DELIVERABLES AND OTHER ITEMS FURNISHED BY ACI PURSUANT TO
THE ENABLEMENT ASSISTANCE AGREEMENT OR ANY OTHER ALLIANCE AGREEMENT ARE
PROVIDED ON AN “AS IS” BASIS.

 

ARTICLE III

 

Representations and Warranties of IBM

 

IBM
hereby represents and warrants to ACI that:

 

SECTION 3.01.  Organization and Standing.  IBM (a) is a corporation duly
incorporated, validly existing and in good standing under the laws of the State
of New York and (b) has all requisite power and authority to conduct its
business as now conducted and as presently contemplated and to perform its
obligations under the Alliance Agreements.

 

SECTION 3.02.  Warrants and Warrant Shares.

 

(a)  The Warrants will be acquired for
IBM’s own account for investment purposes and not with a view to any offering
or distribution within the meaning of the Securities Act and any applicable
state securities laws.  IBM has no
present intention of selling or otherwise disposing of the Warrants or the
Warrant Shares in violation of such laws.

 

(b)  IBM has sufficient knowledge and
expertise in financial and business matters so as to be capable of evaluating
the merits and risks of its investment in ACI. 
IBM understands that this investment involves a high degree of risk and
could result in a substantial or complete loss of its investment.  IBM is capable of bearing the economic risks
of such investment.

 

(c)  IBM acknowledges that ACI has
indicated that the Warrants and the Warrant Shares have not been registered
under the Securities Act by reason of their issuance in a transaction exempt
from the registration requirements thereof, and that the Warrant Shares will
bear a legend stating that such securities have not been registered under the
Securities Act and may not be sold or transferred in the absence of such
registration or an exemption from such registration.

 

SECTION 3.03.  Authorization.  The execution, delivery and performance by
IBM of the Alliance Agreements have been duly authorized by all necessary
corporate action.

 

 

12

 

SECTION 3.04.  No Conflicts.  The execution, delivery and performance by
IBM of the Alliance Agreements do not, and the performance of its obligations
thereunder and compliance with the terms thereof by IBM will not, conflict
with, or result in any violation of or default (with or without notice or lapse
of time, or both) under, any provision of (i) the Certificate of
Incorporation of IBM, as in effect on the date hereof (the “IBM Charter”)
or the By-laws of IBM, as in effect on the date hereof (the “IBM By-laws”),
(ii) any contract to which IBM or any of its Subsidiaries is a party or by
which any of their respective properties or assets is bound or (iii) any
Applicable Law, except, with respect to clause (ii) only, for such of the
foregoing that is, individually and in the aggregate, immaterial to IBM and its
Subsidiaries, taken as a whole, and that does not, individually or in the
aggregate, affect the ability of IBM to timely perform its obligations under
the Alliance Agreements.

 

SECTION 3.05.  Execution and Delivery; Enforceability.  Each Alliance Agreement has been duly
executed and delivered by IBM, and is a legal, valid and binding obligation of
IBM, enforceable against IBM in accordance with its terms, except as may be
limited by applicable bankruptcy, insolvency, moratorium and other laws
affecting the rights of creditors generally and general principles of equity.

 

SECTION 3.06.  No Consents.  Except for any required filings with any
Governmental Authority in connection with the exercise of the Warrants or the
ownership of the Warrant Shares, no authorization, consent, approval, license,
exemption or other action by, and no registration, qualification, designation,
declaration or filing with, any Governmental Authority is or will be necessary (a) in
connection with the execution and delivery by IBM of this Agreement and the
other Alliance Agreements, the consummation of the transactions contemplated
hereby and thereby, or the performance of or compliance with the terms and
conditions hereof or thereof, or (b) to ensure the legality, validity and
enforceability of any of the Alliance Agreements.

 

SECTION 3.07.  No Litigation.   As of the date hereof, there is no litigation or other proceeding pending
or, to the knowledge of IBM, threatened against IBM or any of its Affiliates
which, if adversely determined, could reasonably be expected to adversely
affect the ability of IBM to perform its obligations hereunder or under any of
the other Alliance Agreements.

 

SECTION 3.08.  Provision of Assistance.  IBM shall provide the IBM Assistance using
reasonable care and skill in accordance with the Enablement Assistance
Agreement.

 

SECTION 3.09.  General.

 

(a)  The IBM Software and Deliverables
furnished by IBM pursuant to the Enablement Assistance Agreement, prior to its
use on any system or other medium in connection with the Enablement Assistance
Agreement, shall be tested (in accordance with IBM’s applicable testing
standards) for, and will not, to IBM’s knowledge, contain, Harmful Code.

 

 

13

 

ACI WORLDWIDE, INC. HAS REQUESTED
THAT

THE PORTIONS OF THIS DOCUMENT DENOTED

BY BOXES AND ASTERISKS BE ACCORDED

CONFIDENTIAL TREATMENT PURSUANT TO

RULE 24b-2 PROMULGATED UNDER THE

SECURITIES EXCHANGE ACT OF 1934.

 

(b)  EXCEPT AS EXPRESSLY SET FORTH IN
ANY OF THE ALLIANCE AGREEMENTS, IBM EXPRESSLY DISCLAIMS ANY AND ALL EXPRESS OR
IMPLIED WARRANTIES OF NON-INFRINGEMENT, MERCHANTABILITY AND FITNESS FOR A
PARTICULAR PURPOSE.  EXCEPT AS EXPRESSLY
SET FORTH IN ANY ALLIANCE AGREEMENT, ANY IBM RESOURCES, IBM ASSISTANCE, IBM
SOFTWARE AND OTHER ITEMS FURNISHED BY IBM PURSUANT TO THE ENABLEMENT ASSISTANCE
AGREEMENT, THE STAFF AUGMENTATION AGREEMENT OR ANY OTHER ALLIANCE AGREEMENT ARE
PROVIDED ON AN “AS IS” BASIS.

 

ARTICLE IV

 

Covenants

 

SECTION 4.01.  [_*_]

 

SECTION 4.02.  Notices.  Each of ACI and IBM shall furnish to the
other Party prompt written notice of the following:

 

(a)  any notice or other communication
from any Governmental Authority in connection with the Alliance; and

 

(b)  any commencement of any litigation
against ACI or IBM, as the case may be, in respect of the Alliance.

 

SECTION 4.03.  Further Action.  From time to time after the date hereof, ACI
and IBM agree to execute and deliver, and to cause their respective
Subsidiaries to execute and deliver, such other documents, certificates,
agreements and other writings and to take such other actions as may be
necessary or desirable in order to consummate or implement the transactions
contemplated hereby and by the other Alliance Agreements.

 

SECTION 4.04.

 

[_*_]

 

SECTION 4.05.

 

[_*_]

 

 

14

 

ARTICLE V

 

Management and Governance

 

SECTION 5.01.  Alliance Management Teams.  Promptly after the date hereof, each of the
Parties shall establish an Alliance Management Team (each, an “AMT”)
responsible for the successful implementation of the Alliance and the
facilitation of successful communication between IBM and ACI.  One of the dedicated representatives of the
AMT of each Party will be designated as that Party’s Alliance Executive (the “Alliance
Executive”) and will (i) be responsible for reaching agreement on
targets for sales, marketing, development and services priorities, (ii) be
responsible for managing the day-to-day activities of such Party’s AMT under
this Agreement, (iii) have operational responsibility for the success of
the Alliance and (iv) be responsible for managing the requirements of the
Alliance across all of ACI’s or IBM’s business units, as applicable.

 

SECTION 5.02.  Alliance Management Council.

 

(a)  The Parties shall establish an
Alliance Management Council (the “AMC”) that will be responsible for
overseeing all operational aspects of the Alliance.  The AMC shall consist of five persons
nominated by IBM and five persons nominated by ACI as follows:

 

(i) the Alliance
Executive of such Party;

 

(ii) an executive of
such Party responsible for sales and marketing priorities relating to the
Alliance (the “Sales Executive”);

 

(iii) an executive of
such Party responsible for development priorities relating to the Alliance (the
“Development Executive”);

 

(iv) an executive of
such Party responsible for migration priorities relating to the Alliance (the “Migration
Executive”); and

 

(v) an executive of
such Party responsible for finance priorities relating to the Alliance (the “Finance
Executive”).

 

(b)  The AMC shall meet (i) from
the date hereof through March 31, 2008, no less than on a weekly basis and
on a consistent day and time as the Parties shall agree and (ii) thereafter,
as frequently as the Parties shall agree, on dates and at times as the Parties
shall agree.  Meetings of the AMC shall
be held at such location as the Parties shall agree or by telephone conference;
provided that, in any case, the AMC shall meet at least once a month in
person.

 

(c)  In preparation for the meetings of
the AMC contemplated by Section 5.02(b), (i) the Sales
Executives of each Party, (ii) the Development Executives of each Party
and (iii) the Migration Executives of each Party, shall each meet with
each other (x) from the date hereof through March 31, 2008, no less
than on a weekly basis and on a consistent day and time as the Parties shall
agree and (y) thereafter, as frequently as 

 

 

15

 

the Parties shall agree at such location as the Parties shall agree or
by telephone conference.

 

(d)  The presence of at least three AMC
members of IBM and at least three AMC members of ACI at a meeting of the AMC
shall constitute a quorum.

 

(e)  No action specified in this Section 5.02
may be validly taken by the AMC without the unanimous consent of the members of
the AMC at a meeting of the AMC where a quorum has been established in
accordance with clause (d) of this Section 5.02.

 

SECTION 5.03.  Senior Alliance Executive.

 

(a)  Each Party will designate a single
executive (each, a “Senior Alliance Executive”) with responsibility for
the overall success of the Alliance. The initial Senior Alliance Executive for
each Party shall be as follows:

 

(i) For IBM:  William Zeitler, Senior Vice President and
Group Executive, IBM Systems & Technology Group; and

 

(ii) For ACI:  Philip Heasley, Chief Executive Officer.

 

(b)  To ensure the successful start-up,
effective ongoing operations and overall achievement of the objectives of the
Alliance, the Senior Alliance Executives of each Party will meet (i) from
the date hereof through March 31, 2008, no less than on a monthly basis
and (ii) thereafter, on a quarterly basis, in each case with each such
meeting taking place on a day and at a time as the Parties shall agree.  Each Party will be responsible for its own
costs associated with such meetings.

 

ARTICLE VI

 

Other Agreements

 

SECTION 6.01.  Grant of Warrants.  Simultaneously herewith, ACI hereby grants to
IBM warrants (the “Warrants”) to purchase (a) 1,427,035 shares of
ACI Common Stock at a price of $27.50 per share and (b) 1,427,035 shares
of ACI Common Stock at a price of $33.00 per share.  The terms and conditions of the Warrants are
set forth in the Warrant Agreements executed simultaneously with this
Agreement.

 

SECTION 6.02.  Publicity and Disclosure.

 

(a)  IBM and ACI each agree to issue the
joint press release announcing the Alliance in the form attached as Exhibit C-1
hereto on December 17, 2007, and agree that ACI shall include, in its
press release on such date, the language set forth on Exhibit C-2
attached hereto.

 

(b)  Except as expressly contemplated by
Section 6.02(a), IBM and ACI each agree that (i) no public
release or announcement concerning the Alliance shall be 

 

 

16

 

issued or made and (ii) none of the Alliance Agreements or any
related documents (including, when signed, the Services Agreement) shall be
publicly disclosed or filed, in each case by either Party or any of its
Affiliates or any of its representatives, without the prior written consent of
the other Party; provided that each of IBM and ACI may make internal
announcements to their respective employees and ordinary course investors,
customers, business partners and public relations communications, in each case that
are consistent with the Parties’ prior public disclosures regarding the
Alliance; and provided, further, that, subject to the following
provisions of this Section 6.02(b), each of IBM and ACI may make
such public disclosure as it determines in good faith is required by Applicable
Law.  In the event that a Party
determines in good faith that disclosure or filing of an Alliance Agreement or
any related document is required by Applicable Law, such Party shall, prior to
any such disclosure or filing (and, other than in the case of any such
disclosure or filing with the Commission, if and to the extent that such Party
determines that it may do so pursuant to Applicable Law) (i) redact all
information of a confidential or competitively sensitive nature, (ii) allow
the other Party reasonable time to review such redacted Alliance Agreement or
related document, and (iii) make such further redactions as are reasonably
proposed by the reviewing Party.  In the
event that any Governmental Authority, including the Commission, challenges or
otherwise disputes any such redactions to the provisions of any Alliance
Agreement or any related document, the Parties shall cooperate and use
reasonable best efforts to defend and obtain the agreement of such Governmental
Authority to such redactions and, in any event, each Party shall (or, in the
case of any Governmental Authority other than the Commission, shall use its
reasonable best efforts to) provide the other Party with reasonable advance
notice of any subsequent disclosure or filing of any such Alliance Agreement or
related document containing any previously redacted information.

 

(c)  The Parties shall cooperate with
each other in good faith in (x) joint public relations announcements not
contemplated by paragraph (b) above that are approved in writing in
advance by both Parties and (y) other ongoing joint public relations in
respect of the Alliance, as mutually agreed by the Parties.

 

SECTION 6.03.  Facilities.  Unless expressly required pursuant to any
other Alliance Agreement, or as otherwise agreed by the Parties, the Parties
will satisfy their obligations under the Alliance Agreements at their
respective facilities.

 

SECTION 6.04.  Logo Licensing.

 

(a)  Each Party hereby grants the other
Party a worldwide, non-exclusive, non-transferable, right and license to use
the other Party’s Logo (the ACI Logo or the IBM Logo, as the case may be), such
right and license to expire upon the effective date of the termination of the
Base Alliance Agreements in accordance with Article VIII, solely on
Marketing Materials and solely on the other Party’s Website in strict
accordance with the terms of this Section 6.04. Each Party agrees
to display and use the other Party’s Logo solely in the form, manner and style
required by the IBM Logo Usage Guidelines and the ACI Logo Usage Guidelines
listed in Annexes A and B, as applicable.

 

 

17

 

(b)  All ownership rights in each Party’s
Logo belong exclusively to that Party. 
Neither Party has any ownership rights in the other Party’s Logo and
shall not acquire any ownership rights in the other Party’s Logo as a result of
its performance (or breach) of this Section 6.04.  All use and goodwill created from such use of
the other Party’s Logo or variations thereon shall inure solely to the benefit
of the owning Party.  Upon termination of
this Agreement all rights to use the other Party’s Logo shall terminate
immediately except as otherwise provided herein.

 

(c)  Each Party agrees:

 

(i) not to take any
action which will interfere with any of the other Party’s rights in and to the
other Party’s Logo;

 

(ii) not to challenge
the other Party’s right, title or interest in and to its Logo or the benefits
therefrom;

 

(iii) not to make any
claim or take any action adverse to the other Party’s ownership of its Logo;

 

(iv) not to register or
apply for registrations, anywhere, for the other Party’s Logo or any other mark
which is similar to the other Party’s Logo or which incorporates the other
Party’s Logo; and

 

(v) not to use any
mark, anywhere, which is confusingly similar to the other Party’s Logo.

 

(d)  Each Party agrees that it is of
fundamental importance that each Party’s Website and Marketing Materials
bearing the other Party’s Logo be of the highest quality and integrity and that
each Party’s Logo be properly used and displayed.  For that reason, each Party shall present its
proposed use of the other Party’s Logo, and any significant variations in any
previously approved use, on its Website or Marketing Materials to the other
Party for approval no less than 20 days prior to its proposed use and shall not
make use of the other Party’s Logo or any significant variation thereof until
such approval is received in writing from the other Party.  Failure to meet the quality standards set
forth in this Section 6.04(d) shall be deemed to be a breach
hereof for which this Agreement may be terminated by the Terminating Party in
accordance with Section 8.02 (including the provisions thereof with
respect to notice, cure and remedy).

 

(e)  Each Party agrees to notify the
other Party within ten Business Days if it becomes aware of:

 

(i) any uses of, or any
application or registration for, a trademark, service mark or trade name that
conflicts with or is confusingly similar to the other Party’s Logo;

 

(ii) any acts of
infringement or unfair competition involving the other Party’s Logo; or

 

 

18

 

(iii) any allegations
or claims whether or not made in a lawsuit, that the use of either Logo by
either Party infringes the trademark or service mark or other rights of any
other entity.

 

(f)  Each Party may, but shall not be
required to, take whatever action it, in its sole discretion, deems necessary
or desirable to protect the validity and strength of its Logo at its sole
expense.  Each Party agrees to comply
with all reasonable requests from the other Party for assistance in connection
with any action with respect to the other Party’s Logo that the other Party may
choose to take.  Neither Party shall
institute or settle any claims or litigation affecting any rights in and to the
other Party’s Logo without the other Party’s prior written approval.

 

(g)  Neither Party may, either directly
or indirectly, sublicense, assign or in any way encumber the license granted
pursuant to clause (a) of this Section 6.04.  Any attempt to do so shall (i) be void
and of no effect, (ii) be deemed to be a breach hereof for which this
Agreement may be terminated by the Terminating Party in accordance with Section 8.02
(including the provisions thereof with respect to notice, cure and remedy) and (iii) result
in the termination of the license granted pursuant to clause (a) of this Section 6.04
effective immediately upon receipt of a notice so stating.

 

SECTION 6.05.  Pricing.  Each Party will be responsible for
establishing its respective end user customer pricing and terms of sale
independently for its own products.

 

SECTION 6.06.  Termination of Existing Agreements.  Each of ACI and IBM hereby terminate (a) the
Existing Alliance Agreement, (b) the Existing Sales Incentive Agreement
and (c) the Confidentiality Agreement, and the Parties agree that each of
the Existing Alliance Agreement, the Existing Sales Incentive Agreement and the
Confidentiality Agreement cease to be of any further force or effect.  In connection with the foregoing, IBM and ACI
each hereby irrevocably waive the obligations of the other Party pursuant to (i) in
the case of the Existing Alliance Agreement, Section 1.4 thereof, (ii) in
the case of the Existing Sales Incentive Agreement, Section 11
thereof,  and (iii) in the case of
the Confidentiality Agreement, the fifth paragraph of Section 7 thereof,
in each case with respect to the procedure for the termination by the Parties
of such agreements.

 

SECTION 6.07.  Services Agreement.

 

(a)  Each Party agrees to negotiate in
good faith, until the earlier of (x) the date on which a definitive
agreement with respect thereto is entered into by the Parties and (y) March 31,
2008, a Services Agreement based on the terms set forth in Exhibit D
hereto.

 

(b)  The Parties agree that, in
connection with the negotiation of the Services Agreement, IBM intends to
conduct a detailed due diligence review of ACI’s operations.  Such due diligence process shall include the
review of technical details, procurement, financial projections and other
relevant topics as the Parties may mutually 

 

 

19

 

agree.  ACI agrees to provide
representatives of IBM with access, during normal business hours and upon
reasonable notice, to ACI’s internal information technology operations,
contracts and financial statements, and shall make appropriate representatives
of ACI available for the discussion of matters regarding such operations and
the related outsourcing.  IBM agrees to
respond to ACI’s reasonable inquiries regarding IBM’s outsourcing operations
and to provide to ACI relevant supporting information regarding the services to
be provided under the Services Agreement.

 

(c)  Notwithstanding the foregoing,
neither Party shall have any obligation with respect to the proposed
outsourcing unless and until the Parties have entered into a definitive
agreement with respect to such services.

 

 

20

 

 

ACI WORLDWIDE, INC. HAS REQUESTED
THAT

THE PORTIONS OF THIS DOCUMENT DENOTED

BY BOXES AND ASTERISKS BE ACCORDED

CONFIDENTIAL TREATMENT PURSUANT TO

RULE 24b-2 PROMULGATED UNDER THE

SECURITIES EXCHANGE ACT OF 1934.

 

SECTION 6.08.  Payments.

 

(a)  IBM agrees to pay, in the following
installments and, in the case of clauses (ii) and (iii) below, upon
the achievement of the following milestones, up to $[_*_] to ACI as follows:

 

(i) $33,333,334.00
following the execution by both Parties of the Alliance Agreements on the date
hereof in consideration for the Warrants (the “Initial Payment”) to be
paid as soon as practicable on December 17, 2007;

 

(ii)

 

[_*_]

 

(iii)

 

[_*_]

 

(b)

 

[_*_]

 

SECTION 6.09.  Transition Obligations.

 

(a)  In the event of any termination of
the Base Alliance Agreements in accordance with Article VIII, the
AMC and the Senior Alliance Executives will discuss the respective obligations
of the Parties in connection with any customer engagements existing on the
effective date of such termination, including (a) the commitments of the
Parties to cooperate with each other in the performance of such obligations and
(b) the respective services to be provided by the Parties in connection
with such customer engagements of the nature, for a period of time and on terms
and conditions that are agreed upon by the AMC and the Senior Alliance
Executives; provided that, in any event, the respective commitments of
each Party to perform such obligations shall not be for a period of less than
six months, unless otherwise agreed upon by the AMC and the Senior Alliance
Executives.

 

(b)  For a period of one year following
the date that the termination of the Base Alliance Agreements in accordance
with Article VIII is effective, IBM shall continue to pay
Incentives as contemplated by Section 1(a)(iii) of Attachment A to
the Sales and Marketing Agreement.

 

SECTION 6.10.  Intellectual Property.  Additional or conflicting  intellectual property terms, including
commercial terms, set forth in any Enablement Project Attachment, Transaction
Document or other similar document agreed upon by the Parties 

 

 

21

 

concerning a specific engagement, work or
project shall take precedence over the 
intellectual property terms in this Section 6.10.

 

(a)  ACI shall retain all rights in and
to its pre-existing intellectual property. 
Except as expressly set forth in any Alliance Agreement, no right, title
or license in or to the pre-existing ACI intellectual property is granted to
IBM.  IBM shall retain all rights in and
to its pre-existing intellectual property. 
Except as expressly set forth in any Alliance Agreement, no right, title
or license in or to pre-existing IBM intellectual property is granted to ACI.

 

(b)  Except as provided in paragraphs (d) and
(e) below, each Party shall own its Sole Inventions and hereby grants the
other Party a worldwide, perpetual, irrevocable, nonexclusive, nontransferable,
royalty-free, fully paid-up license under such Sole Inventions and Patents
issuing under such Sole Inventions to (i) use, have used, make, have made,
lease, sell, offer for sale, import, and otherwise transfer or license any
product, (ii) provide any service and (iii) practice and have
practiced any method or process and, in each case, to permit others to do any
of the foregoing on behalf of the licensed party.

 

(c)  Except as provided in paragraphs (d) and
(e) below, each Joint Invention will be jointly owned and each Party will
have the right to license such Joint Invention to third parties without consent
from or accounting to the other Party.  
The parties shall cooperate and mutually agree upon all matters
regarding registration, maintenance, enforcement and defense of the Joint
Inventions, excluding Joint Inventions applicable to CELL Technology (as
defined in the Enablement Assistance Agreement), with respect to which IBM
shall make all such decisions and take all such actions.

 

(d)  No license is granted to IBM with
respect to ACI’s Sole Inventions that are uniquely applicable to, or the
primary basis of which, is ACI Software.

 

(e)  Sole Inventions or Joint Inventions
that are applicable to CELL Technology will be solely owned by IBM  and IBM hereby grants to ACI a worldwide,
perpetual, irrevocable, nonexclusive, nontransferable, royalty-free, fully
paid-up license under such Sole Inventions and Joint Inventions and Patents
issuing thereunder to (i) use, have used, make, have made, lease, sell,
offer for sale, import and otherwise transfer or license CELL Technology in
conjunction with the Optimized Product, (ii) provide any service related
to CELL Technology and the ACI Optimized Software and (iii) practice and
have practiced any method or process related to CELL Technology in conjunction
with ACI Optimized Software.

 

(f)  When IBM develops and provides
Materials to ACI under the Staff Augmentation Agreement, ACI shall own such
Materials and hereby grants to IBM a nonexclusive, worldwide, royalty-free
license to use, execute, display, perform and distribute (within its enterprise
only) copies of such Materials solely for purposes of performing tasks under a
Base Alliance Agreement; provided however, that where the Materials are
indicated in a Transaction Document or Attachment to be “Other Deliverable
Materials”, IBM will own the “Other 

 

 

22

 

Deliverable” Materials and hereby grants to ACI an irrevocable,
nonexclusive, worldwide, royalty-free, paid-up license to use, execute,
reproduce, display, perform, distribute (within its enterprise only) and
prepare derivative works based thereon.

 

(i) When one Party (the
“Subcontractor”) develops and provides Materials under a Subcontracting
Agreement to the other Party (the “Prime Contractor”) or to the customer
as specified in a Transaction Document, the Prime Contractor (or, if requested
by the Prime Contractor, the Customer) shall own such Materials and hereby
grants to the Subcontractor a nonexclusive, worldwide, royalty-free, paid-up
license to use, execute, display, perform and distribute (within its enterprise
only) copies of such Materials solely for purposes of performing tasks under a
Base Alliance Agreement, provided however, that:

 

(A) where
the Subcontractor is ACI and the Prime Contractor is IBM, ACI (or the customer,
if requested by IBM, on behalf of the customer) shall own such Materials and
hereby grants or authorizes the customer to grant, to ACI and IBM a
nonexclusive, worldwide, perpetual, irrevocable, royalty-free, paid-up license
to use, execute, display, modify, copy, perform, sublicense and distribute
internally, or externally solely to the customer specified in the Transaction
Document, copies of such Materials, and

 

(B) 
where the Materials are indicated in a Transaction Document or Attachment to be
“Other Deliverable Materials”, the Subcontractor will own the “Other
Deliverable” Materials and hereby grants the Prime Contractor  an irrevocable, nonexclusive, worldwide,
royalty-free, paid-up license to use, execute, reproduce, display, perform,
distribute (within its enterprise only) and prepare derivative works based
thereon.

 

(ii) Materials that are
created by either Party pursuant to Attachment D to the Sales and Marketing
Agreement (and not pursuant to the Staff Augmentation Agreement or the
Subcontracting Agreements) will be owned by the Party that creates such
Materials and each Party hereby grants the other Party a nonexclusive,
worldwide, royalty-free license to use, execute, display, perform and
distribute (within its enterprise only) copies of such Materials solely for purposes
of performing tasks under Attachment D to the Sales and Marketing Agreement for
customer engagements.

 

(g)  To the extent required in
connection with performance of the Parties’ obligations under the Alliance
Agreements, the Parties grant the following demonstration licenses, testing
licenses and other licenses between the Parties:

 

(i) In connection with
the Sales and Marketing Agreement, for the term of the Base Alliance
Agreements, each Party hereby grants the other a nonexclusive, worldwide, fully
paid up, royalty-free, nontransferable, right and license to use, execute, reproduce,
perform, display, link, translate into any language or form and copy (A) the

 

 

23

 

Combined Solution in object code form only,
or any portion thereof, and (B) Marketing Materials (as defined in the
Sales and Marketing Agreement), solely for the purpose of and to the extent
necessary for marketing, demonstrating, and promoting the Combined Solution
internally and externally in connection with performing the sales and marketing
activities under the Sales and Marketing Agreement; and

 

(ii)  in connection
with the Enablement Assistance Agreement and Attachment D to the Sales and
Marketing Agreement, ACI hereby grants to IBM an irrevocable, worldwide, fully
paid up, royalty-free, non-exclusive, 
non-transferable license to use, execute, copy, reproduce, configure,
interface to display, perform, link (as a step to building executable code), compile,
translate into any language or form, combine with other software or hardware,
transfer (internally only) and transmit (internally only) the Optimized
Products in source code (but only to the extent that ACI has provided such
source code to its customers) and object code form solely for the purpose of
and to the extent necessary (A) for IBM to internally install the
Optimized Product on IBM systems for the purpose of benchmarking, tuning and
testing, to perform trouble-shooting and problem determination, and developing
and deploying system integration capabilities, tools, scripts, programs, and
middleware configurations for the Optimized Product, (B) to test and
distribute within a customer’s enterprise, subject to the customer’s license
from ACI, (C) to provide support of customers concerning their Combined
Solution and (D) otherwise as reasonably required for IBM to perform
activities described in the Sales and Marketing Agreement.

 

(h)  Except as provided above, neither
Party grants any other licenses pursuant to, but shall negotiate in good faith
concerning further licenses that may be required to perform the activities
under, the Alliance Agreements.

 

(i)  Either Party may disclose, publish,
disseminate and use the ideas, concepts, know-how and techniques, related to
the other Party’s business activities, which are contained in the intellectual
property of the other Party and retained in the unaided memories of the
employees who have access to such intellectual property pursuant to this Section 6.10
(“Residual Ideas”); provided that nothing contained in this Section 6.10
gives the Party with such Residual Ideas the right to disclose, publish or
disseminate, except as set forth elsewhere in this Section 6.10,
the source of such Residual Ideas.

 

(j)  ACI acknowledges that IBM is in the
business of providing consulting services and developing computer software for
a wide variety of clients and ACI understands that IBM will continue these
activities.  IBM acknowledges that ACI is
in the business of developing electronic payment software applications and IBM
understands that ACI will continue these activities. Accordingly, nothing in
this Section 6.10 will preclude or limit IBM from providing
consulting services or developing software or materials for itself or other
entities, or ACI from developing electronic payment software applications,
irrespective of the possible similarity to materials which might be delivered
to or received from the other Party, including screen formats, structure,
sequence and organization. 
Notwithstanding the foregoing, nothing in this paragraph shall be deemed
to diminish either Party’s obligations with respect to 

 

 

24

 

Confidential Information set forth in Article IX hereof or
expand the scope of any license rights set forth in this Section 6.10.

 

ARTICLE VII

 

Delivery

 

SECTION 7.01.  Delivery.  On the date hereof:

 

(a)  IBM shall deliver to ACI:

 

(i) counterparts of
each Alliance Agreement executed by duly authorized representatives of IBM; and

 

(ii) the Initial
Payment, in immediately available funds, wired to a bank account that has been
designated by ACI not later than three Business Days prior to the date hereof,
such Initial Payment to be subject to Section 6.08(b).

 

(b)  ACI shall deliver to IBM:

 

(i) counterparts of
each Alliance Agreement executed by duly authorized representatives of ACI; and

 

(ii) ACI shall deliver
to IBM an executed receipt in the form of Exhibit E hereto
evidencing receipt by ACI of the Initial Payment.

 

ARTICLE VIII

 

Term and
Termination

 

SECTION 8.01.  Term. 
The Base Alliance Agreements shall commence and become effective on the
date hereof and, subject to Section 8.02, shall terminate on the
fifth anniversary of the date hereof in the event that either Party provides a
Termination Notice (an “Initial Termination Notice”) to the other Party
on or prior to the fourth anniversary of the date hereof of its termination of
the Base Alliance Agreements.  Any such
Initial Termination Notice shall terminate the Base Alliance Agreements effective
as of the fifth anniversary of the date hereof. 
If neither Party timely provides the other Party with an Initial
Termination Notice, the Base Alliance Agreements shall continue to be effective
until the date that is at least two years from the date that either Party
provides a Termination Notice to the other Party, subject to Section 8.02;
provided that, in any event, if not earlier terminated pursuant to this Article VIII,
the Base Alliance Agreements shall terminate, with or without notice by either
Party, on the tenth anniversary of the date hereof.

 

SECTION 8.02.  Termination.  Notwithstanding anything in Section 8.01
to the contrary, but subject to Section 8.04,

 

 

25

 

(a)  IBM shall be entitled to terminate
all of the Base Alliance Agreements at any time upon delivery to ACI of a
Termination Notice in the event that a Change in Control occurs, which
termination shall be effective upon such delivery; provided that IBM may
only deliver a Termination Notice pursuant to this Section 8.02(a) (i) within
60 days after the occurrence of a Change in Control and (ii) after each of
the AMC and the Senior Alliance Executives have engaged in discussions with
respect to the impact of such Change in Control on the Alliance (unless ACI’s
AMC members or Senior Alliance Executive are unwilling or consistently
unavailable to engage in such discussions); and

 

(b)  
either Party (the “Terminating Party”) shall be entitled to
terminate all of the Base Alliance Agreements at any time upon delivery to the
other Party (the “Defaulting Party”) of a Termination Notice, which
termination shall be effective upon such delivery, in the event that:

 

(i) the Defaulting
Party is in material breach of any provision of this Agreement or any other Alliance
Agreement and the nature of such breach is such that it is not capable of being
remedied or, if such breach is capable of being remedied, the Defaulting Party
fails to remedy such breach to the reasonable satisfaction of the Terminating
Party within an amount of time designated by the Terminating Party in a written
notice from the Terminating Party specifying the breach and requesting remedy
of such breach within a reasonably designated amount of time (but in no event
fewer than 60 days, unless mutually agreed otherwise) that, in the good faith
opinion of the Terminating Party, is reasonable on the basis and in the context
of the nature of such breach;

 

(ii) the Defaulting
Party consistently breaches this Agreement or any other Alliance Agreement to
an extent which in the aggregate amounts to a material breach that is unable to
be remedied; or

 

(iii) Bankruptcy occurs
in respect of the Defaulting Party;

 

provided that a
Terminating Party may only provide a notice of breach or a Termination Notice
pursuant to clause (i) or (ii) of this Section 8.02(b) after
each of the AMC and the Senior Alliance Executives have engaged in discussions
with respect to any such material breach (unless the Defaulting Party’s AMC
members or Senior Alliance Executive are unwilling or consistently unavailable
to engage in such discussions).

 

SECTION 8.03.  Termination Notice.  Any notice of termination (a “Termination
Notice”) shall specify the following in reasonable detail:

 

(a)  the terminating Party’s basis for
such termination;

 

(b)  the effective date of termination;
and

 

 

26

 

ACI WORLDWIDE, INC. HAS REQUESTED
THAT

THE PORTIONS OF THIS DOCUMENT DENOTED

BY BOXES AND ASTERISKS BE ACCORDED

CONFIDENTIAL TREATMENT PURSUANT TO

RULE 24b-2 PROMULGATED UNDER THE

SECURITIES EXCHANGE ACT OF 1934.

 

(c)

 

  [_*_]

 

SECTION 8.04.  Effect of Termination.  At the time that termination of the Base
Alliance Agreements in accordance with Section 8.01 or Section 8.02
is effective, (x) except as expressly provided below or in any Base
Alliance Agreement, all of the obligations of the Parties under the Base
Alliance Agreements shall terminate and cease to be of further force or effect
and (y) [_*_].  Any such termination
shall not release either Party from any liability that has already accrued as
of the effective date of such 
termination and shall not constitute a waiver or release of, or
otherwise be deemed to prejudice or adversely affect, any rights, remedies or
claims which a Party may have hereunder, at law, equity or otherwise or which
may arise out of or in connection with such termination.  In addition, the following provisions shall
survive the termination of the Base Alliance Agreements and remain in full
force and effect in accordance with their terms:

 

(i) Article II
(Representations and Warranties of ACI);

 

(ii) Article III
(Representations and Warranties of IBM);

 

(iii) Section 6.02
(relating to publicity and disclosure);

 

(iv) [_*_]

 

(v) Section 6.09
(relating to transition obligations);

 

(vi) Section 6.10
(relating to intellectual property)

 

(vii) this Article VIII;

 

(viii)  Article IX
(Confidentiality);

 

(ix) Article X
(Indemnification and Limitation on Liability);

 

(x) Article XI
(Dispute Resolution);

 

(xi) Article XII
(Miscellaneous); and

 

(xii) each provision of each
other Base Alliance Agreement that, by the express terms of such Base Alliance
Agreement, survives the termination of the Base Alliance Agreements.

 

 

27

 

ARTICLE IX

 

Confidentiality

 

SECTION 9.01.  Confidential Information.  IBM and ACI agree that (a) information
disclosed by the disclosing Party (the “Disclosing Party”) to the other
Party (the “Receiving Party”), both prior to and after the date hereof,
in connection with the Alliance includes technical, marketing, financial,
commercial and other proprietary information and is disclosed for the sole
purpose of successfully effecting the Alliance and (b) the mutual
objective of the Parties pursuant to this Article IX is to provide
appropriate protection of such Confidential Information while maintaining the
ability of the Parties to conduct their respective business activities.  Any such technical, marketing, financial,
commercial and other proprietary information disclosed by a Disclosing Party
shall be deemed to be confidential information if it is disclosed (i) in
writing and marked “confidential” at the time of such disclosure by the
Disclosing Party, or (ii) by oral and/or visual presentation and either
designated in advance as “confidential” by the Disclosing Party or readily
apparent as confidential disclosure (any such information, “Confidential
Information”).

 

SECTION 9.02.  Confidentiality Obligations.

 

(a)  The Receiving Party agrees to use
the same care and discretion to avoid disclosure, publication or dissemination
of the Disclosing Party’s Confidential Information as it uses with its own
similar information that it does not wish to disclose, publish or disseminate; provided
that the inherent disclosure of ideas, concepts, know-how or techniques
contained in the Disclosing Party’s Confidential Information by the Receiving
Party in the use, distribution or marketing of any product or service in
connection with activities performed under the Enablement Assistance Agreement
shall not be deemed to be in violation of the Receiving Party’s obligations
under this Section 9.02(a). 
Notwithstanding anything to the contrary in any Alliance Agreement, the
Receiving Party may use the Disclosing Party’s Confidential Information solely
in connection with activities contemplated by the Alliance.  The Receiving Party may disclose the
Disclosing Party’s Confidential Information to the following parties:

 

(i) its employees and
employees of its Subsidiaries who have a need to know;

 

(ii) any other party
with the Disclosing Party’s prior written consent; and

 

(iii) where IBM is the
Receiving Party, IBM may disclose ACI’s Confidential Information to IBM’s
Business Partners and, where ACI is the Receiving Party, ACI may disclose IBM’s
Confidential Information to ACI’s authorized distributors, in each case solely
with respect to activities performed under the Alliance Agreements;

 

 

28

 

provided that, prior to
any such disclosure pursuant to clause (iii) above, the Receiving Party
must have a written agreement in a customary form with such party sufficient to
require that party to treat such Confidential Information in accordance with
this Article IX.

 

(b)  The Receiving Party may disclose
the Disclosing Party’s Confidential Information as required by Applicable Law; provided
that (i) if reasonably practicable, the Receiving Party gives the
Disclosing Party reasonable notice and opportunity to seek an appropriate
protective order or waive compliance with this Article IX and (ii) such
Receiving Party shall comply with the provisions under Section 6.02(b),
if applicable. If the Disclosing Party waives compliance with this Article IX
in accordance with clause (i) of this Section 9.02(b), or
after a reasonable amount of time has elapsed from the Receiving Party’s
notice, a protective order has not been entered (and, if applicable, the
Parties have complied with Section 6.02(b)), the Receiving Party
may disclose that portion of such Confidential Information which its in-house
or outside counsel advises that it is compelled to disclose.

 

(c)  Non-public information of ACI may
also be considered material to ACI for purposes of Federal and state securities
laws and Commission rules and regulations. 
IBM acknowledges that it is aware of the United States securities laws
regarding the possession of material non-public information concerning a
company whose shares are publicly traded on an exchange.

 

(d)  (i) ACI acknowledges that IBM
is in the business of providing consulting services and developing computer
software for a wide variety of clients and ACI understands that IBM will
continue these activities and (ii) IBM acknowledges that ACI is in the
business of developing electronic payment software applications and IBM
understands that ACI will continue these activities. Accordingly, nothing in
this Article IX shall preclude or limit IBM from providing
consulting services and/or developing software or materials for itself or other
entities, or ACI from developing electronic payment software applications,
irrespective of the possible similarity to materials which might be delivered
to or received from the other Party, including screen formats, structure,
sequence and organization.

 

(e)  The Receiving Party shall, upon
written request by the Disclosing Party, at any time, instruct its personnel
that have been granted access to Confidential Information to promptly destroy
any Confidential Information in their possession; provided that the
Receiving Party shall be permitted to retain a copy of such Confidential
Information solely for archival purposes. 
Notwithstanding the destruction of Confidential Information, or the
failure to so destroy Confidential Information, the Parties shall continue to
be bound, for any remaining term hereunder, by the rights and obligations of
confidentiality hereunder.

 

(f)  Notwithstanding anything to the
contrary in this Article IX, in the event of any breach or
threatened breach of any of the provisions of this Article IX, the
aggrieved Party, in addition to any other remedies it may have at law or in
equity, is entitled to seek injunctive relief.

 

 

29

 

SECTION 9.03.  Confidentiality Period.  Confidential Information disclosed pursuant
to this Article IX will be subject to the terms of this Article IX
for three years from the initial date of disclosure of such Confidential
Information.  In addition, at the request
of a Party on a case-by-case basis, prior to the disclosure of any particular
Confidential Information, the Parties shall discuss whether a longer
confidentiality period is appropriate with respect to such Confidential
Information.

 

SECTION 9.04.  Exceptions to Confidentiality Obligations.  Notwithstanding any provision of this Article IX,
the Receiving Party may disclose, publish, disseminate and use Confidential
Information that is:

 

(a)  already in its possession without
obligation of confidentiality;

 

(b)  developed independently;

 

(c)  obtained from a source other than
the Disclosing Party without obligation of confidentiality;

 

(d)  publicly available when received,
or thereafter becomes publicly available through no fault of the Receiving
Party; or

 

(e)  disclosed by the Disclosing Party
to another party without obligation of confidentiality.

 

SECTION 9.05.  Residual Information.  The Receiving Party may disclose, publish,
disseminate and use the ideas, concepts, know-how and techniques, related to
the Receiving Party’s business activities, which are contained in the
Confidential Information disclosed by the Disclosing Party and retained in the
unaided memories of the Receiving Party’s employees who have access to such
Confidential Information pursuant to this Article IX (such
Confidential Information, “Residual Information”); provided that
nothing contained in this Section 9.05 gives the Receiving Party
the right to disclose, publish or disseminate, except as set forth elsewhere in
this Article IX:

 

(a)  the source of Residual Information;

 

(b)  any financial, statistical or
personnel data of the Disclosing Party; or

 

(c)  the business plans of the
Disclosing Party.

 

SECTION 9.06.  Disclaimers.

 

(a)  All Confidential Information
disclosed by the Disclosing Party is provided solely on an “as is” basis.

 

(b)  The Disclosing Party shall not be
liable for any damages arising out of the use of Confidential Information
disclosed pursuant to this Article IX.

 

 

30

 

 

(c)  Neither this Article IX,
nor any disclosure of Confidential Information, grants the Receiving Party any
right or license under any trademark, copyright or patent now or hereafter
owned or controlled by the Disclosing Party.

 

(d)  Disclosure of Confidential
Information containing business plans is for planning purposes only.  The Disclosing Party may change or cancel its
plans at any time. Use of such Confidential Information is at the Receiving
Party’s own risk.

 

(e)  Nothing in this Article IX
requires either Party to disclose or to receive Confidential Information.

 

(f)  The receipt of Confidential
Information pursuant to this Article IX will not preclude, or in
any way limit, the Receiving Party from:

 

(i) providing to others
products or services which may be competitive with products or services of the
Disclosing Party;

 

(ii) providing products
or services to others who compete with the Disclosing Party; or

 

(iii) assigning its
employees in any way it may choose.

 

ARTICLE X

Indemnification and Limitation on Liability

 

SECTION 10.01.  Indemnification.  If a third party claims that any product,
service, material or deliverable provided by a Party (the “Indemnifying
Party”) to any customer or to the other Party (the “Indemnified Party”),
infringes such third party’s patent, trademark or copyright, the Indemnifying
Party will defend the Indemnified Party against that claim at the Indemnifying
Party’s expense, and shall pay all costs, damages and attorney’s fees that a
court finally awards or that are included in a settlement approved by the
Indemnifying Party; provided that the Indemnified Party:

 

(a)  promptly notifies the Indemnifying
Party in writing of the claim; and

 

(b)  allows the Indemnifying Party to
control, and reasonably cooperates with the Indemnified Party in, the defense
and any related settlement negotiations.

 

Notwithstanding the foregoing, the failure of
any Indemnified Party to give notice as provided herein shall not relieve the
Indemnifying Party of its indemnification obligation set forth above except to
the extent that such failure results in a lack of actual notice to the
Indemnifying Party and such Indemnifying Party is actually prejudiced as a
result of such failure to give notice.

 

SECTION 10.02.  Remedies.  If a claim of the nature set forth in Section 10.01
is made or appears likely to be made, the Indemnified Party agrees to permit
the Indemnifying Party to enable the Indemnified Party to continue to use the
product, 

 

 

31

 

service, material or deliverable provided by
the Indemnifying Party, or to modify them, or replace them with such products,
services, materials or deliverables, as the case may be, that are at least
functionally equivalent. If the Indemnifying Party determines that none of
these alternatives is reasonably available, the Indemnified Party agrees to
return the product, service, material or deliverable that is the subject to
such claim, to the Indemnifying Party on the Indemnifying Party’s written
request.  The Indemnifying Party will
then give the Indemnified Party a credit equal to the amount that the
Indemnified Party paid to the Indemnifying Party for the creation of such
product, service, material or deliverable.

 

SECTION 10.03.  Claims for which the Parties are not
Responsible.  Notwithstanding Section 10.01:

 

(a)  IBM shall not have any obligation
to ACI regarding any claim based on any of the following:

 

(i) anything provided
by ACI or a third party on ACI’s behalf that is incorporated into such product,
service, material or deliverable or IBM’s compliance with any designs,
specifications or instructions provided by ACI or a third party on ACI’s
behalf;

 

(ii) the modification
of such product, service, material or deliverable by ACI or a third party on
ACI’s behalf;

 

(iii) the combination,
operation or use of such product, service, material or deliverable with any
product, data, apparatus, method or process that IBM did not provide as a
system, if the infringement would not have occurred were it not for such combination,
operation or use; and

 

(iv) the distribution,
operation or use of such product, service, material or deliverable outside of
ACI and its Affiliates.

 

(b)  ACI shall not have any obligation
to IBM regarding any claim based on any of the following:

 

(i) anything provided
by IBM or a third party on IBM’s behalf that is incorporated into such product,
service, material or deliverable or ACI’s compliance with any designs,
specifications or instructions provided by IBM or a third party on IBM’s
behalf;

 

(ii) the modification
of such product, service, material or deliverable by IBM or a third party on
IBM’s behalf;

 

(iii) the combination,
operation or use of such product, service, material or deliverable with any
product, data, apparatus, method or process that ACI did not provide as a
system, if the infringement would not have occurred were it not for such
combination, operation or use; and

 

 

32

 

ACI WORLDWIDE, INC. HAS REQUESTED
THAT

THE PORTIONS OF THIS DOCUMENT DENOTED

BY BOXES AND ASTERISKS BE ACCORDED

CONFIDENTIAL TREATMENT PURSUANT TO

RULE 24b-2 PROMULGATED UNDER THE

SECURITIES EXCHANGE ACT OF 1934.

 

(iv) the distribution,
operation or use of such product, service, material or deliverable outside of
IBM and its Affiliates.

 

SECTION 10.04.  Limitation on Liability.

 

(a)  Neither Party shall be liable to
the other Party for any consequential damages (including lost profits,
business, revenue, goodwill or anticipated savings and loss of or damage to
data and records), special damages, incidental damages, indirect damages or
punitive damages under this Agreement or under any other Alliance Agreement,
even if advised that any of these types of damages may occur; provided
that the limitations set forth this Section 10.04(a) shall not
apply to (i) any such damages that may be awarded pursuant to a third
party’s claim contemplated by Section 10.01 or (ii) any breach
of a Party’s obligations set forth in Article IX or Section 10
of the Enablement Assistance Agreement; and provided, further,
that the limitations set forth in this Section 10.04(a) with
respect to consequential damages and indirect damages shall not apply to any
claim for willful infringement of intellectual property rights.

 

(b)  Each Party’s entire liability for
all claims in the aggregate arising from or related to any Alliance Agreement
will in no event exceed:

 

(i) payments referred
to in Section 10.01;

 

(ii) payments [_*_]
expressly required to be made to the other Party pursuant to the Alliance Agreements;

 

(iii) damages for
bodily injury (including death), and damage to real property and tangible
personal property for which a Party is legally liable;

 

(iv) damages for
infringement by one Party of the other Party’s intellectual property rights; and

 

(v) the amount of any
other actual direct damages in an aggregate amount not to exceed $[_*_]; provided
that no such limitation shall be applied to actual direct damages awarded to a
Party as a result of the other Party’s breach of its obligations set forth in Article IX
of this Agreement or Section 10 of the Enablement Assistance Agreement.

 

(c)  The limits set forth in this Section 10.04
also apply to each Party’s subcontractors. It is the maximum for which such
Party and its subcontractors are collectively responsible.

 

(d)  The provisions of this Section 10.04
apply to all liabilities, claims and causes of action, regardless of the basis
on which a Party is entitled to claim damages from the other Party (including
fundamental breach, failure of essential

 

 

33

 

purpose, negligence or other contract or tort claim), other than for
willful misconduct or willful misrepresentation.

 

SECTION 10.05.  General.  This Article X states each Party’s
entire obligation and each Party’s exclusive remedy regarding any claim of
infringement.

 

ARTICLE XI

Dispute Resolution.

 

SECTION 11.01.  Intention of the Parties.  The Parties intend that all disputes between
the Parties arising out of this Agreement or any other Alliance Agreement shall
be settled by the Parties amicably through good faith discussions upon the
written request of either Party.

 

SECTION 11.02.  Procedures

 

(a)  
Prior to filing suit, instituting a Proceeding or seeking other judicial
or governmental resolution in connection with any dispute between the Parties
or any of their Subsidiaries arising out of any of the Alliance Agreements or
any aspect of the Alliance, the Parties will attempt to resolve such dispute
through good faith negotiations.  If a
dispute arises in respect of a matter relating to a specific Alliance
Agreement, the Parties shall first exercise the dispute resolutions procedures,
if any, set forth in such Alliance Agreement. 
If the Parties do not resolve the dispute after exhausting the dispute
resolutions procedures, if any, set forth in such Alliance Agreement, or if no
dispute resolution procedures are provided in the applicable Alliance
Agreement, the Parties shall utilize the dispute resolution procedures set
forth in this Section 11.02, as follows:

 

(i) Either Party shall
send a written notice to the other Party requesting negotiations to continue
resolving, or initially attempt to resolve, as the case may be (depending upon
whether dispute resolution procedures are provided in the applicable Alliance
Agreement), the dispute in accordance with the procedures set forth in this Section 11.02.  Promptly following receipt of such notice by
the other Party, each Party shall cause its Alliance Executive together with,
if necessary, an individual designated by it as having general responsibility
for the affected Alliance Agreement to meet in person with the corresponding
individuals designated by the other Party to discuss the dispute; and

 

(ii) If the dispute is
not resolved within 60 days (or such shorter time as the Parties agree is
necessary to attempt to resolve the dispute in order to satisfy the Parties’
client service obligations that may be the subject of such dispute) after the
first meeting between such individuals described in clause (i) of this Section 11.02(a),
then, upon the written request of either Party, each Party shall cause its
Senior Alliance Executive and its Alliance Executive (together with, if
necessary, an individual designated by it as having general responsibility for
the affected Alliance Agreement) to 

 

 

34

 

meet in person with the Senior Alliance
Executive, Alliance Executive and the individual or individuals so designated
by the other Party to discuss the dispute.

 

Except
and only to the limited extent provided in Section 11.02(b),
neither Party shall file suit, institute a Proceeding or seek other judicial or
governmental resolution of the dispute until at least 60 days after the first
meeting between the corporate officers described in clause (ii) of this Section 11.02(a).

 

(b)  Notwithstanding the provisions of Section 11.02(a),
either Party may institute a Proceeding seeking a preliminary injunction,
temporary restraining order or other equitable relief (excluding rescission,
economic damages or other forms of non-injunctive relief), if necessary in the
good faith opinion of that Party to avoid material harm to its property, rights
or other interests, before commencing, or at any time during the course of, the
dispute procedure described in Section 11.02(a).  In addition, either Party may file an action
prior to the commencement of or at any time during or after the dispute
resolution procedures in Section 11.02(a), if in the good faith
opinion of that Party it is necessary to prevent the expiration of a statute of
limitations or filing period or the loss of any other substantive or procedural
right.

 

(c)  ACI irrevocably submits, and agrees
to cause its Affiliates to irrevocably submit, and IBM irrevocably submits, and
agrees to cause its Affiliates to irrevocably submit, to the exclusive
jurisdiction of the state and Federal courts located in the State of New York,
New York County, for the purposes of any suit, action or other proceeding
arising out of the Alliance Agreements or any aspect of the Alliance (and each
Party agrees that no such action, suit or proceeding relating to the Alliance
Agreements or any aspect of the Alliance shall be brought by it or any of its
Affiliates except in such courts).  ACI
irrevocably and unconditionally waives (and agrees not to plead or claim), and
IBM irrevocably and unconditionally waives (and agrees not to plead or claim),
any objection to the laying of venue of any action, suit or proceeding arising
out of the Alliance Agreements or any aspect of the Alliance in such courts or
that any such action, suit or proceeding brought in any such court has been
brought in an inconvenient forum.

 

(d)  ACI and IBM further agree that
service of any process, summons, notice or document by U.S. registered mail to
such Party’s respective address set forth in Section 12.14 shall be
effective service of process for any action, suit or proceeding in the state
and Federal courts located in the State of New York, New York County, with
respect to any matters to which it has submitted to jurisdiction as set forth
above in Section 11.02(c).

 

(e)  EACH PARTY HEREBY WAIVES, AND
AGREES TO CAUSE EACH OF ITS RESPECTIVE AFFILIATES TO WAIVE, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY
JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER
OR IN CONNECTION WITH ANY OF THE ALLIANCE AGREEMENTS OR ANY ASPECT OF THE
ALLIANCE.  Each Party (i) certifies
that no representative of any other Party has represented, expressly or 

 

 

35

 

otherwise, that such other Party would not, in the event of litigation,
seek to enforce the foregoing waiver and (ii) acknowledges that it and the
other parties thereto have been induced to enter into the Alliance Agreements
by, among other things, the mutual waivers and certifications in this Section 11.02.

 

ARTICLE XII

 Miscellaneous

 

SECTION 12.01.  Severability.  If any provisions of this Agreement or any of
the other Alliance Agreements shall be held to be illegal, invalid or
unenforceable, the Parties agree that such provisions will be enforced to the
maximum extent permissible so as to effect the intent of the Parties, and the
validity, legality and enforceability of the remaining provisions of this
Agreement or any of the other Alliance Agreements shall not in any way be
affected or impaired thereby.  If
necessary to effect the intent of the Parties, the Parties will negotiate in
good faith to amend this Agreement or any of the Alliance Agreements to replace
the unenforceable language with enforceable language which as closely as
possible reflects such intent.

 

SECTION 12.02.  Amendments.  This Agreement and each other Base Alliance
Agreement may be amended or modified only by a written instrument signed by
each Party.

 

SECTION 12.03.  Waiver.  Any waiver by a Party of an instance of the
other Party’s noncompliance with any obligation or responsibility herein
contained or contained in another Alliance Agreement shall be in writing and
signed by the waiving Party and shall not be deemed a waiver of other instances
of the other Party’s noncompliance hereunder.

 

SECTION 12.04.  No Assignment.  This Agreement and the other Alliance
Agreements shall be binding upon and inure to the benefit of and be enforceable
by the respective successors and permitted assigns of the Parties.  Nothing in this Agreement or the other
Alliance Agreements shall confer any rights upon any Person other than the
Parties and their respective successors and permitted assigns (provided
that in no event shall this provision affect either Party’s obligations
pursuant to Article X). 
Neither Party may assign this Agreement or any other Alliance Agreement
or its rights hereunder or thereunder to any Person without the written consent
of the other Party; provided that it shall not be considered an
assignment by IBM in the event that IBM divests a portion of its business in a
manner that similarly affects all of its customers. Any attempted assignment of
this Agreement or the other Alliance Agreements in violation of this Section 12.04
shall be void and of no effect; provided that (a) either Party may
assign any of its obligations under the Base Alliance Agreements to any of its
wholly owned Subsidiaries and (b) either Party may delegate or subcontract
its duties under any Base Alliance Agreement to any other Person.  Notwithstanding the foregoing, IBM shall be
permitted to transfer the Warrants and the Warrant Shares in accordance with Section 6
of each of the Warrant Agreements, and such transferees shall be entitled to
the benefits under such Warrant Agreements.

 

 

36

 

SECTION 12.05.  Expenses.  Except as otherwise expressly provided herein
or in any other Alliance Agreement, each Party shall bear all out-of-pocket
costs and expenses incurred by it in connection with the Alliance, including:

 

(a)  all attorneys’, accountants’,
investment advisors’ and consultants’ fees and expenses; and

 

(b)  all taxes (including withholding or
payment of all applicable Federal, state and local income taxes, social
security taxes and other payroll taxes with respect to its employees, as well
as any taxes, contributions or other obligations imposed by applicable state
unemployment or workers’ compensation acts), fees, assessments and other
charges assessed by any Governmental Authority in connection therewith.

 

SECTION 12.06.  Construction.  This Agreement and the other Alliance
Agreements have been negotiated by the Parties and their respective counsel and
shall be fairly interpreted in accordance with its terms and without any strict
construction in favor of or against either of the Parties.

 

SECTION 12.07.  Language.  The Parties have negotiated this Agreement in
the English language, which shall be the governing language of this Agreement.

 

SECTION 12.08.  Relationship of the Parties.  Except for provisions herein expressly
authorizing one Party to act for another, this Agreement and the other Alliance
Agreements shall not constitute any Party as a legal representative or agent of
any other Party, nor shall a Party have the right or authority to assume,
create or incur any liability of any kind, expressed or implied, against or in
the name or on behalf of the other Party or any of its Affiliates.  The Parties shall perform their obligations
under the Alliance Agreements as independent contractors and nothing contained
in this Agreement or any other Alliance Agreement is intended to, or shall be
deemed to, create a partnership or joint venture relationship among the Parties
or any of their Affiliates for any purpose, including tax purposes.  Each Party has sole authority and
responsibility to hire, fire and otherwise control its employees.  Neither of the Parties nor any of their
respective Affiliates will take a position contrary to the foregoing.

 

SECTION 12.09.  Entire Agreement.  The provisions of this Agreement and the
other Alliance Agreements set forth the entire agreement and understanding
between the Parties as to the subject matter hereof and thereof and supersede
all prior agreements, oral or written, and all other prior communications
between the Parties relating to the subject matter hereof and thereof.

 

SECTION 12.10.  Force Majeure.  Neither Party will be considered in default
or liable for any delay or failure to perform any provision of this Agreement
or any of the other Alliance Agreements if such delay or failure arises
directly or indirectly out of an act of God, acts of the public enemy, freight
embargoes, quarantine restrictions, unusually severe weather conditions,
insurrection, riot or other such causes beyond the reasonable control of the
Party responsible for the delay or failure to perform; provided that the
Party that has failed to perform for such reason notifies the other Party
within 15 

 

 

37

 

days of the occurrence; and provided, further,
that the Party affected by such delay is using commercially reasonable efforts
to mitigate or eliminate the cause of such delay or its effects and, if events
in the nature of the force majeure event were foreseeable, use commercially
reasonable efforts prior to its occurrence to anticipate and avoid its
occurrence or effect.  In the event of
such force majeure event, the date of performance hereunder or under any of the
other Alliance Agreements shall be extended for a period not to exceed the time
lost by reason of the failure or delay.

 

SECTION 12.11.  Counterparts.  This Agreement and the other Alliance
Agreements may be executed in two or more counterparts, each of which shall be
binding as of the date first written above (or, in the case of the Services
Agreement, on the date of such agreement or agreements), and all of which shall
constitute one and the same instrument. 
Each such counterpart shall be deemed an original, and it shall not be
necessary in making proof of this Agreement or the Alliance Agreements to
produce or account for more than one such counterpart.

 

SECTION 12.12.  Governing Law.  This Agreement and the other Alliance
Agreements will be construed and interpreted in accordance with and governed by
the laws of the State of New York (without regard to the choice of law
provisions thereof).

 

SECTION 12.13.  Order of Precedence.   In the event of an inconsistency or conflict
between a provision of this Agreement and a provision of any other Alliance
Agreement, this Agreement shall prevail unless such other Alliance Agreement
expressly provides that its provision supersedes the provision of this
Agreement.

 

SECTION 12.14.  Notices.  Any and all notices, requests, demands and
other communications required or otherwise contemplated to be made under this
Agreement and the other Alliance Agreements shall be in writing and in English,
shall be provided by one or more of the following means and shall be deemed to
have been duly given (a) if delivered personally, when received, (b) if
transmitted by facsimile (to those for whom a facsimile number is set forth
below), on the date of receipt of the transmission confirmed by receipt of a
transmittal confirmation, or (c) if delivered by international courier
service, on the fourth Business Day following the date of deposit with such
courier service.

 

All
such notices, requests, demands and other communications relating to any of the
Alliance Agreements shall be addressed as follows:

 

(a)  If to ACI:

 

ACI
Worldwide, Inc.

120 Broadway, Suite 3350

New York, New York 10271

Attention:  Philip Heasley, Chief
Executive Officer

Telephone:  (646) 348-6700

Facsimile:  (212) 479-4000

 

 

38

 

with
a copy (which copy shall not constitute notice) to the following in-house
counsel of ACI:

 

ACI
Worldwide, Inc.

224 South 108th Avenue, Suite 7

Omaha, Nebraska 68154

Attention:  Dennis P. Byrnes, Senior Vice
President and General Counsel

Telephone:  (402) 390-8993

Facsimile:  (402) 390-8077

 

(b)  If to IBM:

 

IBM Corporation

New Orchard Road

Armonk, NY 10504

Attention:  James Wallis, IBM Alliance
Executive

Telephone:  (914) 766-1035

 

 

with a copy (which copy shall not constitute notice) to the following
in-house counsel of IBM:

 

IBM Corporation

New Orchard Road

Armonk, NY 10504

Attention:  Mark Goldstein, Associate
General Counsel

Telephone:  (914) 499-6005

 

In
addition, all notices, requests, demands and other communications relating
specifically to this Agreement shall be addressed as follows:

 

(c)  If to ACI:

 

ACI Worldwide, Inc.

120 Broadway, Suite 3350

New York, New York 10271

Attention:  Philip Heasley, Chief
Executive Officer

Telephone:  (646) 348-6700

Facsimile:  (212) 479-4000

 

with a copy (which copy shall not constitute notice) to:

 

 

39

 

ACI Worldwide, Inc.

224 South 108th Avenue, Suite 7

Omaha, Nebraska 68154

Attention:  Dennis P. Byrnes, Senior Vice
President and General Counsel

Telephone:  (402) 390-8993

Facsimile:  (402) 390-8077

 

and

 

Jones Day

222 East 41st Street

New York, New York  10017-6702

Attention:  Robert A. Profusek

Telephone:  (212) 326-3800

Facsimile:  (212) 755-7306

 

(d)  If to IBM:

 

IBM Corporation

New Orchard Road

Armonk, NY 10504

Attention:  Cosmo L. Nista, Vice
President, Mergers and Acquisitions

Telephone:  (914) 499-5700

 

with a copy (which copy shall not constitute notice) to:

 

Cravath, Swaine & Moore LLP

Worldwide Plaza

825 Eighth Avenue

New York, NY 10019

Attention:  Craig F. Arcella

Telephone:  212-474-1000

Facsimile:  212-474-3700

 

[Remainder of page intentionally
blank]

 

 

40

 

IN
WITNESS WHEREOF, ACI and IBM have caused their respective duly authorized
officers to execute this Agreement as of the day and year first above written.

 

	
  ACI WORLDWIDE, INC,

  	 

	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
   /s/ Philip G. Heasley

  
	
   

  	
   

  	
  Name:

  	
  Philip
  G. Heasley

  
	
   

  	
   

  	
  Title:

  	
  Chief
  Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  INTERNATIONAL BUSINESS

  
	
  MACHINES CORPORATION,

  
	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
   /s/ Cosmo L. Nista

  
	
   

  	
   

  	
  Name:
  

  	
  Cosmo
  L. Nista

  
	
   

  	
   

  	
  Title:

  	
  Vice
  President Corporate Development, M&A

  
	
   

  	
   

  	
   

  	
   

  
						

 

 

41

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