Document:

Exhibit 10.4 to Form 10-Q -- Q2 Fy'06

    EXHIBIT
      10.4

    

    

    

    

    
 

    

    

    

    

    

    

    

    

    TRANSACTION
      SYSTEMS ARCHITECTS, INC.

     

    1999
      Stock Option Plan

    

    as
      amended by

    the
      Stockholders on February 22, 2000,

    the
      Board of Directors on May 5, 2000, 

    the
      Stockholders on February 20, 2001,

    the
      Stockholders on February 19, 2002, and

    the
      Board of Directors on March 7, 2006

     

     

     

     

     

     

    
 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    TRANSACTION
      SYSTEMS ARCHITECTS, INC.

    1999
      Stock Option Plan

    

    as
      amended by 

    the
      Stockholders on February 22, 2000,

    the
      Board of Directors on May 5, 2000, 

    the
      Stockholders on February 20, 2201, 

    the
      Stockholders on February 19, 2002, and

    the
      Board of Directors on March 7, 2006

    

    

    Section
      1. Purpose.
      The
      purpose of the Transaction Systems Architects, Inc. 1999 Stock Option Plan
      (the
      "Plan") is to provide long term incentives and rewards to employees of
      Transaction Systems Architects, Inc. (the "Company") and any Subsidiary of
      the
      Company, by providing an opportunity to selected employees to purchase Common
      Stock of the Company. By encouraging stock ownership, the Company seeks to
      attract and retain employees and to encourage their best efforts to work at
      the
      success of the Company. 

    

    Section
      2. Definitions. For
      purposes of this Plan, the following terms used herein shall have the following
      meanings, unless a different meaning is clearly required by the
      context.

    

    2.1. “Board
      of Directors" shall
      mean the Board of Directors of the Company.

    

    2.2. “Code”
      shall
      mean the Internal Revenue Code of 1986, as amended.

    

    2.3. “Committee”
      shall
      mean the committee of the Board of Directors referred to in Section 5
      hereof.

    

    2.4. “Common
      Stock” shall
      mean the Class A Common Stock of the Company.

    

    2.5. “Disability”
      shall
      mean permanent and total disability as defined in Section 22(e)(3) of the
      Code.

    

    2.6. “Effective
      Date" shall
      have the meaning set forth in Section 18.

    

    2.7. “Employee”
      shall
      mean any person, including an officer or employee-director of the Company or
      any
      Subsidiary of the Company, who, at the time an Option is granted to such person
      hereunder, is actively and customarily employed for 20 hours or more per week
      by
      the Company or any Subsidiary of the Company.

    

    2.8. “Exchange
      Act” shall
      mean the Securities Exchange Act of 1934, as amended.

    

    2.9. “Fair
      Market Value”
      shall
      mean the closing price (last trade) on the date in question, as such price
      is
      reported by the National Association of Securities Dealers on the NASDAQ
      National Market or any successor system for a share of Common
      Stock.

    

    2.10. “ISO”
      shall
      mean an option granted under the Plan which constitutes and shall be treated
      as
      an "incentive stock option" as defined in Section 422(b) of the
      Code.

    

    2.11. “Non-Qualified
      Option”
      shall
      mean an option granted under the Plan which does not constitute and is not
      treated as an ISO nor as an option described in Section 423(b) of the
      Code.

    

    2.12. “Option”
      shall
      mean any ISO or Non-Qualified Option granted under this Plan.

    

    2.13. “Participant”
      shall
      mean any Employee to whom an Option is granted under the Plan.

    

    2.14. “Subsidiary
      of the Company”
      means
      any corporation (other than the Company) in an unbroken chain of corporations
      beginning with the Company if each of the corporations other than the last
      corporation in the unbroken chain owns stock possessing 50 percent or more
      of
      the total combined voting power of all classes of stock in one of the other
      corporations in such chain.

    

    Section
      3. Eligibility.
      Options
      may be granted to any Employee. The Committee shall have the sole authority
      to
      select the Employees to whom Options are to be granted hereunder and to
      determine whether an Employee is to be granted a Non-Qualified Option or an
      ISO
      or any combination thereof. No Employee shall have any right to participate
      in
      the Plan. Any Employee selected by the Committee for participation during any
      one period will not by virtue of such participation have the right to be
      selected as a Participant for any other period.

    

    Section
      4. Common
      Stock Subject to the Plan.

    

    4.1. The
      total
      number of shares of Common Stock for which Options may be granted under this
      Plan shall not exceed in the aggregate four
      million (4,000,000)
      shares
      of Common Stock, subject to adjustment pursuant to Section 7. The total number
      of shares of Common Stock for which Options may be granted to any employee
      within the meaning of Section 162(m) of the Code during any twelve month period
      shall not exceed 500,000 in the aggregate, subject to adjustment pursuant to
      Section 7.

    

    4.2. The
      shares of Common Stock that may be subject to Options granted under this Plan
      may be either authorized and unissued shares or shares reacquired at any time
      and now or hereafter held as treasury stock as the Committee may determine.
      In
      the event that any outstanding Option expires or is terminated for any reason,
      the shares allocable to the unexercised portion of such Option may again be
      subject to an Option granted under this Plan. If any shares of Common Stock
      acquired pursuant to the exercise of an Option shall have been repurchased
      by
      the Company, then such shares shall again become available for issuance pursuant
      to the Plan.

    

    4.3. Special
      ISO Limitations.

    

    (a) The
      aggregate Fair Market Value (determined as of the date an ISO is granted) of
      the
      shares of Common Stock with respect to which ISO’s are exercisable for the first
      time by a Participant during any calendar year (under all incentive stock option
      plans of the Company or any Subsidiary of the Company) shall not exceed
      $100,000.

    

    (b) No
      ISO
      shall be granted to an Employee who, at the time the ISO is granted, owns
      (actually or constructively under the provisions of Section 424(d) of the Code)
      stock possessing more than 10% of the total combined voting power of all classes
      of stock of the Company or any Subsidiary of the Company, unless the option
      price is at least 110% of the Fair Market Value (determined as of the time
      the
      ISO is granted) of the shares of Common Stock subject to the ISO and the ISO
      by
      its terms is not exercisable more than five years from the date it is
      granted.

    

    4.4. Notwithstanding
      any other provision of the Plan, the provisions of Sections 4.3(a) and (b)
      shall
      not apply, nor shall be construed to apply, to any Non-Qualified Option granted
      under the Plan.

    

    Section
      5. Administration
      of the Plan.

    

    5.1 The
      Plan
      shall be administered by the Compensation Committee of the Board of Directors,
      or such other committee of the Board of Directors as may be directed by the
      Board of Directors (the "Committee") consisting of no less than two persons.
      All
      members of the committee shall be "Non-Employee Directors" within the meaning
      of
      Rule 16b-3 under the Exchange Act. The Committee shall be appointed from time
      to
      time by, and shall serve at the pleasure of, the Board of
      Directors.

    

    5.2. The
      Committee shall have the sole authority and discretion to grant Options under
      this Plan and, subject to the limitations set forth in Sections 4.3 and 6
      hereof, to determine the terms and conditions of all Options, including, without
      limitation, (i) selecting the Employees who are to be granted Options hereunder;
      (ii) designating whether any Option to be granted hereunder is to be an ISO
      or a
      Non-Qualified Option; (iii) establishing the number of shares of Common Stock
      that may be purchased under each Option upon exercise and the Option exercise
      price per share of Common Stock; (iv) determining the time and the conditions
      subject to which Options may be exercised in whole or in part; (v) determining
      the form of the consideration that may be used to purchase shares of Common
      Stock upon exercise of any Option (including the circumstances under which
      the
      Company's issued and outstanding shares of Common Stock or the shares of Common
      Stock available under the Option may be used by a Participant to exercise an
      Option) and establishing procedures in connection therewith; (vi) imposing
      restrictions and/or conditions with respect to shares of Common Stock acquired
      upon exercise of an Option; (vii) determining the circumstances under which
      shares of Common Stock acquired upon exercise of any Option may be subject
      to
      repurchase by the Company, including without limitation, the circumstances
      and
      conditions subject to which a proposed sale of shares of Common Stock acquired
      upon exercise of an Option may be subject to the Company's right of first
      refusal (as well as the terms and conditions of any such right of first
      refusal); (viii) establishing procedures whereby a number of shares of Common
      Stock may be withheld from the total number of shares of Common Stock to be
      issued upon exercise of an Option to meet the obligation of withholding for
      federal and state income and other taxes, if any, incurred by the Participant
      upon exercise of an Option; (ix) accelerating or, with the consent of the
      Participant, deferring the time when outstanding Options may be exercised,
      provided, however,
      that
      any
      ISO’s shall be "accelerated" within the meaning of Section 424(h) of the Code;
      (x) establishing any other terms, restrictions and/or conditions applicable
      to
      any Option not inconsistent with the provisions of the Plan; (xi) authorizing
      any person to execute on behalf of the Company any instrument required to
      effectuate the grant of an Option previously granted by the Committee; and
      (xii)
      taking any other actions deemed necessary or advisable for the administration
      of
      the Plan.

    

    5.3. The
      Committee shall be authorized to interpret the Plan and may, from time to time,
      adopt, amend and rescind such rules, regulations and procedures, not
      inconsistent with the provisions of the Plan, as it may deem advisable to carry
      out the purpose of the Plan.

    

    5.4. The
      interpretation and construction by the Committee of any provision of the Plan,
      any Option granted hereunder or any agreement evidencing any such Option shall
      be final, conclusive and binding upon all parties.

    

    5.5 Only
      members of the Committee shall vote on any matter affecting the administration
      of the Plan or the granting of Options under the Plan.

    

    5.6. All
      expenses and liabilities incurred by the Committee in the administration of
      the
      Plan shall be borne by the Company. The Committee may employ attorneys,
      consultants, accountants or other persons in connection with the administration
      of the Plan. The Company, and its officers and directors, shall be entitled
      to
      rely upon the advice, opinions or valuations of any such persons. No member
      of
      the Board of Directors or the Committee shall be liable for any action,
      determination or interpretation taken or made in good faith with respect to
      the
      Plan or any Option granted hereunder.

    

    5.7 Notwithstanding
      anything in the Plan to the contrary, with respect to any employee who is
      resident outside of the United States, the Committee may, in its sole
      discretion, amend the terms of the Plan in order to conform such terms with
      the
      requirements of local law or to meet the objectives of the Plan. The Committee
      may, where appropriate, establish one or more sub-plans for this purpose.

    

    Section
      6. Terms
      and Conditions of Options.

    

    6.1. ISO’s.
      Except
      as otherwise provided in this Section 6.1, the terms and conditions of each
      ISO
      granted under the Plan shall be specified by the Committee, in its sole
      discretion, and shall be set forth in a written ISO agreement between the
      Company and the Participant in such form as the Committee shall approve. No
      person shall have any rights under any ISO granted under the Plan unless and
      until the Company and the person to whom such ISO shall have been granted shall
      have executed and delivered an agreement expressly granting the ISO to such
      person and containing provisions setting forth the terms for the ISO. The terms
      and conditions of each ISO shall be such that each ISO issued hereunder shall
      constitute and shall be treated as an "incentive stock option" as defined in
      Section 422 of the Code. The terms and conditions of any ISO granted hereunder
      need not be identical to those of any other ISO granted hereunder. The terms
      and
      conditions of each ISO agreement shall include the following:

    

    (a) The
      ISO
      exercise price shall be fixed by the Committee but shall in no event be less
      than 100% (or 110% in the case of an Employee referred to in Section 4.3(b)
      hereof) of the Fair Market Value of the shares of Common Stock subject to the
      ISO on the date the ISO is granted. 

    

    (b) ISO’s
      shall not be transferable otherwise than by will or the laws of descent and
      distribution, and, during a Participant’s lifetime, an ISO shall be exercisable
      only by the Participant.

    

    (c) The
      Committee shall fix the term of all ISO’s granted pursuant to the Plan
      (including the date on which such ISO shall expire and terminate) provided,
      however, that
      such
      term shall in no event exceed ten years from the date on which such ISO is
      granted (or, in the case of an ISO granted to an Employee referred to in Section
      4.3(b) hereof, such term shall in no event exceed five years from the date
      on
      which such ISO is granted). Each ISO shall be exercisable in such amount or
      amounts, under such conditions and at such times or intervals or in such
      installments as shall be determined by the Committee in its sole
      discretion.

    

    (d) In
      the
      event that the Company or any Subsidiary of the Company is required to withhold
      any Federal, state, local or foreign taxes in respect of any compensation income
      realized by the Participant as a result of any "disqualifying disposition"
      of
      any shares of Common Stock acquired upon exercise of an ISO granted hereunder,
      the Company or such Subsidiary of the Company shall deduct from any payments
      of
      any kind otherwise due to such Participant the aggregate amount of such Federal,
      state, local or foreign taxes required to be so withheld or, if such payments
      are insufficient to satisfy such Federal, state, local or foreign taxes, such
      Participant will be required to pay to the Company or such Subsidiary of the
      Company, or make other arrangements satisfactory to the Company or such
      Subsidiary of the Company regarding payment to the Company or such Subsidiary
      of
      the Company of, the aggregate amount of any such taxes. All matters with respect
      to the total amount of taxes to be withheld in respect of any such compensation
      income shall be determined by the Committee in its sole discretion. Subject
      to
      approval by the Committee, a Participant may elect to have such tax withholding
      obligation satisfied, in whole or in part, by (i) authorizing the Company to
      withhold from shares of Common Stock to be acquired upon exercise of an Option,
      a number of shares of Common Stock with an aggregate Fair Market Value (as
      of
      the date the withholding is effected) that would satisfy the withholding amount
      due, or (ii) transferring to the Company shares of Common Stock owned by the
      Participant with an aggregate Fair Market Value (as of the date the withholding
      is effected) that would satisfy the withholding amount due.

    

    6.2. Non-Qualified
      Options.
      The
      terms and conditions of each Non-Qualified Option granted under the Plan shall
      be specified by the Committee, in its sole discretion, and shall be set forth
      in
      a written option agreement between the Company and the Participant in such
      form
      as the Committee shall approve. No person shall have any rights under any
      Non-Qualified Option granted under the Plan unless and until the Company and
      the
      person to whom such Non-Qualified Option shall have been granted shall have
      executed and delivered an agreement expressly granting the Non-Qualified Option
      to such person and containing provisions setting forth the terms for the
      Non-Qualified Option. The terms and conditions of each Non-Qualified Option
      will
      be such that each Non-Qualified Option issued hereunder shall not constitute
      nor
      be treated as an "incentive stock option" as defined in Section 422 of the
      Code
      or an option described in Section 423(b) of the Code and will be a
      "non-qualified stock option" for federal income tax purposes. The terms and
      conditions of any Non-Qualified Option granted hereunder need not be identical
      to those of any other Non-Qualified Option granted hereunder. The terms and
      conditions of each Non-Qualified Option agreement shall include the
      following:

    

    (a) The
      Option exercise price shall be fixed by the Committee and may be equal to,
      more
      than or less than 100% of the Fair Market Value of the shares of Common Stock
      subject to the Non-Qualified Option on the date such Non-Qualified Option is
      granted.

    

    (b) The
      Committee shall fix the term of all Non-Qualified Options granted pursuant
      to
      the Plan (including the date on which such Non-Qualified Option shall expire
      and
      terminate). Each Non-Qualified Option shall be exercisable in such amount or
      amounts, under such conditions, and at such times or intervals or in such
      installments as shall be determined by the Committee in its sole
      discretion.

    

    (c) Non-Qualified
      Options shall not be transferable otherwise than by will or the laws of descent
      and distribution, or pursuant to a domestic relations order (within the meaning
      of Rule 16a-12 of the Securities Exchange Act of 1934, as amended), and during
      a
      Participant’s lifetime a Non-Qualified Option shall be exercisable only by the
      Participant or any permitted transferee.

    

    (d) In
      the
      event that the Company or any Subsidiary of the Company is required to withhold
      any Federal, state, local or foreign taxes in respect of any compensation income
      realized by the Participant in respect of a Non-Qualified Option granted
      hereunder or in respect of any shares of Common Stock acquired upon exercise
      of
      a Non-Qualified Option, the Company or such Subsidiary of the Company shall
      deduct from any payments of any kind otherwise due to such Participant the
      aggregate amount of such Federal, state, local or foreign taxes required to
      be
      so withheld or, if such payments are insufficient to satisfy such Federal,
      state, local or foreign taxes, or if no such payments are due or to become
      due
      to such Participant, then, such Participant will be required to pay to the
      Company or such Subsidiary of the Company, or make other arrangements
      satisfactory to the Company or such Subsidiary of the Company regarding payment
      to the Company or such Subsidiary of the Company of, the aggregate amount of
      any
      such taxes. All matters with respect to the total amount of taxes to be withheld
      in respect of any such compensation income shall be determined by the Committee
      in its sole discretion. Subject to approval by the Committee, a Participant
      may
      elect to have such tax withholding obligation satisfied, in whole or in part,
      by
      (i) authorizing the Company to withhold from shares of Common Stock to be
      acquired upon exercise of an Option, a number of shares of Common Stock with
      an
      aggregate Fair Market Value (as of the date the withholding is effected) that
      would satisfy the withholding amount due, or (ii) transferring to the Company
      shares of Common Stock owned by the Participant with an aggregate Fair Market
      Value (as of the date the withholding is effected) that would satisfy the
      withholding amount due.

    

    6.3 Vesting;
      Period for Exercise of Option.
      In the
      sole discretion of the Committee, the terms and conditions of any Option may
      include any of the following provisions:

    

    (a) An
      Option
      may not be exercised during the first year from the date it is granted. After
      the first anniversary of the date on which an Option is granted, it may be
      exercised as to not more than 33-1/3% of the shares of Common Stock available
      for purchase under the Option and, after the second and third anniversaries
      of
      the Option grant date, it may be exercised as to not more than an additional
      33-1/3% of such shares plus any shares as to which the Option might theretofore
      have been exercisable but shall not have been exercised.

    

    (b) Subject
      to subsection (d) below, if a Participant ceases to be an Employee of the
      Company or a Subsidiary of the Company for any reason other than as a result
      of
      his death or Disability, the unexercised portion of any Option held by such
      Participant at that time may only be exercised within one month after the date
      on which the Participant ceased to be so employed, but no later than the date
      the Option expires, and only to the extent that the Participant could have
      otherwise exercised such Option as of the date on which he ceased to be so
      employed. To the extent that the Participant is not entitled to exercise the
      Option on such date, or if the Participant does not exercise it within the
      time
      specified, such Option shall terminate. The Committee shall have the authority
      to determine the date a Participant ceases to be an Employee.

    

    (c) Subject
      to subsection (d) below, if a Participant ceases to be an Employee of the
      Company or a Subsidiary of the Company by reason of his Disability, the
      unexercised portion of any Option held by such Participant at that time may
      only
      be exercised within one year after the date on which the Participant ceased
      to
      be so employed, but no later than the date the Option expires, and to the extent
      that the Participant could have otherwise exercised such Option if it had been
      completely exercisable. To the extent that the Participant is not entitled
      to
      exercise the Option on such date, or if the Participant does not exercise it
      within the time specified, such Option shall terminate. The Committee shall
      have
      the authority to determine the date a Participant ceases to be an Employee
      by
      reason of his Disability.

    

    (d) If
      a
      Participant dies while employed by the Company or a Subsidiary of the Company
      (or dies within a period of one month after ceasing to be an Employee for any
      reason other than Disability or within a period of one year after ceasing to
      be
      an Employee by reason of Disability), the unexercised portion of any Option
      held
      by such Participant at the time of his death may only be exercised within one
      year after the date of such Participant’s death, but no later than the date the
      Option expires, and to the extent that the Participant could have otherwise
      exercised such Option if it had been completely exercisable. Such Option may
      be
      exercised by the executor or administrator of the Participant’s estate or by any
      person or persons who shall have acquired the Option directly from the
      Participant by bequest or inheritance. To the extent that the Option is not
      entitled to be exercised on such date or if the Option is not exercised within
      the time specified, such Option shall terminate.

    

    6.4. Procedures
      for Exercise of Option; Rights of Stockholder.
      Any
      Option granted hereunder shall be exercisable at such times, under such
      conditions, as shall be determined by the Committee and in accordance with
      the
      terms of the Plan. An Option may not be exercised for a fraction of a share
      of
      Common Stock. An Option shall be deemed to be exercised when written notice
      of
      such exercise has been given to the Company in accordance with the terms of
      the
      Option agreement by the Participant entitled to exercise the Option and full
      payment for the shares of Common Stock with respect to which the Option is
      exercised has been received by the Company. Full payment may, as authorized
      by
      the Committee, consist of any form of consideration and method of payment
      allowable hereunder. Payment for the shares of Common Stock upon exercise of
      an
      Option shall be made in cash, by certified check, or if authorized by the
      Committee, by delivery of other shares of Common Stock having a Fair Market
      Value on the date of delivery equal to the aggregate exercise price of the
      shares of Common Stock as to which the Option is being exercised, or if
      authorized by the Committee, by authorizing the Company to withhold from the
      total number of shares of Common Stock to be acquired upon exercise of an Option
      that number of shares of Common Stock having an aggregate Fair Market Value
      (as
      of the date the withholding is effected) that would equal the aggregate exercise
      price of the shares of Common Stock as to which the Option is being exercised,
      or by any combination of such methods of payment or by any other method of
      payment that may be permitted under applicable law and the Plan and authorized
      by the Committee under Section 5.2 of the Plan. Upon the receipt of notice
      of
      exercise and full payment for the shares of Common Stock, the shares of Common
      Stock shall be deemed to have been issued and the Participant shall be entitled
      to receive such shares of Common Stock and shall be a stockholder with respect
      to such shares, and the shares of Common Stock shall be considered fully paid
      and nonassessable. No adjustment will be made for a dividend or other right
      for
      which the record date is prior to the date on which the stock certificate is
      issued, except as provided in Section 7 of the Plan. Each exercise of an Option
      shall reduce, by an equal number, the total number of shares of Common Stock
      that may thereafter be purchased under such Option. 

    

    Section
      7. Adjustments.

    

    7.1
      In
      the event that the outstanding shares of the Company's Common Stock shall be
      increased or decreased or changed into or exchanged for a different number
      or
      kind of shares of stock or other securities of the Company or of another
      corporation, effected without the receipt of consideration by the Company,
      through reorganization, merger or consolidation, recapitalization,
      reclassification, stock split, reverse stock split, split-up, combination or
      exchange of shares or declaration of any dividends payable in Common Stock,
      the
      Board of Directors shall appropriately adjust, subject to any required action
      by
      the stockholders of the Company, (i) the number of shares of Common Stock (and
      the Option exercise price per share) subject to the unexercised portion of
      any
      outstanding Option (to the nearest possible full share), provided,
      however,
      that
      the
      limitations of Section 424 of the Code shall apply with respect to adjustments
      made to ISO’s and (ii) the number of shares of Common Stock for which Options
      may be granted under the Plan, as set forth in Section 4.1 hereof, and such
      adjustments shall be final, conclusive and binding for all purposes of the
      Plan.
      Except as expressly provided herein, no issuance by the Company of shares of
      stock of any class shall affect, and no adjustment by reason thereof shall
      be
      made with respect to, the number or price of shares of Common Stock subject
      to
      an Option.

    

    7.2
      Notwithstanding the foregoing, in the event of (i) any offer or proposal to
      holders of the Company's Common Stock relating to the acquisition of their
      shares, including, without limitation, through purchase, merger or otherwise,
      or
      (ii) any transaction generally relating to the acquisition of substantially
      all
      of the assets or business of the Company, or (iii) the dissolution or
      liquidation of the Company, the Committee may make such adjustment as it deems
      equitable in respect of outstanding Options (and in respect of the shares of
      Common Stock for which Options may be granted under the Plan), including,
      without limitation, the revision, cancellation, or termination of any
      outstanding Options, or the change, conversion or exchange of the shares of
      the
      Company’s Common Stock under outstanding Options (and of the shares of the
      Company’s Common Stock for which Options may be granted under the Plan) into or
      for securities or other property of another corporation. Any such adjustments
      by
      the Committee shall be final, conclusive and binding for all purposes of the
      Plan. 

    

    Section
      8. Effect
      of the Plan on Employment Relationship. Neither
      this Plan nor any Option granted hereunder to a Participant shall be construed
      as conferring upon such Participant any right to continue in the employ of
      the
      Company or any Subsidiary of the Company as the case may be, or limit in any
      respect the right of the Company or any Subsidiary of the Company to terminate
      such Participant's employment with the Company or any Subsidiary of the Company,
      as the case may be, at any time.

    Section
      9. Amendment
      of the Plan. The
      Board
      of Directors may amend the Plan from time to time as it deems desirable in
      its
      sole discretion without approval of the stockholders of the Company, except
      to
      the extent stockholder approval is required by Rule 16b-3 of the Exchange Act,
      applicable NASDAQ National Market or stock exchange rules, applicable Code
      provisions, or other applicable laws or regulations. 

    

    Section
      10.
      Termination of the Plan. The
      Board
      of Directors may terminate the Plan at any time in its sole discretion. No
      Option may be granted hereunder after termination of the Plan. The termination
      or amendment of the Plan shall not alter or impair any rights or obligations
      under any Option previously granted under the Plan in any material adverse
      way
      without the affected Participant’s consent.

    

    Section
      11. Modification,
      Extension and Renewal of Options.
      Within
      the limitations of the Plan and subject to Section 7, the Committee may modify,
      extend or renew outstanding Options or accept the cancellation of outstanding
      Options for the granting of new Options in substitution therefor.
      Notwithstanding the preceding sentence, except for any adjustment described
      in
      Section 7, (i) no modification of an Option shall, without the consent of the
      Participant, alter or impair any rights or obligations under any Option
      previously granted under the Plan in any material adverse way without the
      affected Participant’s consent, and (ii) the exercise price of outstanding
      Options may not be altered, amended or modified.

    

    Section
      12. Governing
      Law.
      The
      Plan
      and any and all Option agreements executed in connection with the Plan shall
      be
      governed by and construed in accordance with the laws of the State of Delaware,
      without regard to conflict of laws principles.

    

    Section
      13. No
      Strict Construction.
      No
      rule
      of strict construction shall be applied against the Company, the Committee,
      or
      any other person in the interpretation of any of the terms of the Plan, any
      Option agreement, any Option granted under the Plan, or any rule, regulation
      or
      procedure established by the Committee.

    

    Section
      14. Successors.
      This
      Plan
      is binding on and will inure to the benefit of any successor to the Company,
      whether by way of merger, consolidation, purchase, or otherwise.

    

    Section
      15. Severability.
      If
      any
      provision of the Plan or an Option agreement shall be held illegal or invalid
      for any reason, such illegality or invalidity shall not affect the remaining
      provisions of the Plan or such agreement, and the Plan and such agreement shall
      each be construed and enforced as if the invalid provisions had never been
      set
      forth therein.

    

    Section
      16. Plan
      Provisions Control.
      The
      terms
      of the Plan govern all Options granted under the Plan, and in no event will
      the
      Committee have the power to grant any Option under the Plan which is contrary
      to
      any of the provisions of the Plan. In the event any provision of any Option
      granted under the Plan shall conflict with any term in the Plan as constituted
      on the grant date of such Option, the term in the Plan as constituted on the
      grant date of such Option shall control.

    

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

    

    Section
      18. Effective
      Date of the Plan.
      The
      Plan shall be submitted to the stockholders of the Company for approval and
      ratification at the next regular or special meeting thereof to be held after
      January 1, 1999. Unless at such meeting the Plan is approved and ratified by
      the
      stockholders of the Company, in the manner provided by the Company’s By-Laws,
      then and in such event, the Plan and any then outstanding Options that may
      have
      been conditionally granted prior to such stockholder meeting shall become null
      and void and of no further force and effect. Subject to the immediately
      preceding sentence, the Plan shall be effective as of February 23, 1999. The
      Plan shall continue in effect for a term of 10 years unless sooner terminated
      under Section 10.Exhibit 10.5 to Form 10-Q -- Q2 Fy'06

    EXHIBIT
      10.5

    

    MESSAGINGDIRECT
      LTD.

    (the
      “Corporation”)

    

    AMENDED
      AND RESTATED EMPLOYEE SHARE OPTION PLAN

    AS
      AMENDED BY THE BOARD OF DIRECTORS ON MARCH 7, 2006

    

    

    
      	ARTICLE
              1  	
              DEFINITIONS

            

    

    

    
      	1.1  	
              Definitions

            

    

    

    In
      this
      Share Option Plan:

    

    
      	(a)  	
              AFFILIATE
                has the meaning ascribed to it in Section 2 of the Business Corporations
                Act, Alberta, as amended from time to
                time.

            

    

    

    
      	(b)  	
              BOARD
                means the Board of Directors of the
                CORPORATION;

            

    

    

    
      	(c)  	
              BUSINESS
                DAY means any day, other than a Saturday, Sunday or statutory holiday
                in
                Alberta.

            

    

    

    
      	(d)  	
              COMMITTEE
                means the BOARD or any committee of the BOARD designated by the BOARD
                as
                the committee for the purposes of this
                PLAN.

            

    

    

    
      	(e)  	
              CORPORATION
                means MESSAGINGDIRECT LTD. or any AFFILIATE of MESSAGINGDIRECT LTD.
                that
                adopts this Plan.

            

    

    

    
      	(f)  	
              ELIGIBLE
                PERSON means any director, officer, full time employee of the CORPORATION
                or of any AFFILIATE, and any other person as the COMMITTEE determines
                is
                providing key services to the CORPORATION or any AFFILIATE and is
                accepted
                by the COMMITTEE for the purposes of the PLAN as an ELIGIBLE
                PERSON.

            

    

    

    
      	(g)  	
              EXERCISE
                PRICE means an amount per SHARE in Canadian or United States funds
                established by the COMMITTEE at the time of the granting of an OPTION,
                at
                which SHARES may be purchased by the OPTIONEE, as adjusted pursuant
                to
                Section 4.2 hereof;

            

    

    

    
      	(h)  	
              OPTION
                means an option to purchase SHARES granted to an ELIGIBLE PERSON
                under
                this PLAN;

            

    

    

    
      	(i)  	
              OPTION
                DATE means with respect to each grant of an OPTION the date upon
                which the
                COMMITTEE grants the OPTION;

            

    

    

    
      	(j)  	
              “PLAN”
                means this Share Option Plan, as
                amended;

            

    

    

    

    
      	(k)  	
              OPTIONEE
                means an ELIGIBLE PERSON to whom an OPTION has been
                granted;

            

    

    

    
      	(l)  	
              SHARES
                means the common shares of the CORPORATION, or, in the event of an
                adjustment contemplated by Section 4.2 hereof, the other shares and
                securities to which an OPTIONEE may be entitled upon exercise of
                an
                OPTION, as a result of the
                adjustment;

            

    

    

    

    
      	ARTICLE
              2  	
              PURPOSE
                OF THE PLAN

            

    

    

    
      	2.1  	
              Purpose

            

    

    

    The
      purpose of the PLAN is to assist the CORPORATION and its AFFILIATES to attract,
      retain and motivate employees, officers, directors and consultants by conveying
      a sense of pride of ownership and the potential to achieve significant personal
      wealth by contributing to the successful growth of the CORPORATION, and to
      be
      achieved by permitting such persons to participate in the growth and development
      of the CORPORATION and its AFFILIATES through the acquisition of
      OPTIONS.

    

    

    
      	ARTICLE
              3  	
              ADMINISTRATION
                OF THE PLAN

            

    

    

    
      	3.1  	
              Administration

            

    

    

    The
      PLAN
      shall be administered by the COMMITTEE.

    

    
      	3.2  	
              Powers

            

    

    

    The
      COMMITTEE shall have the power, where consistent with the general purpose and
      intent of the PLAN, and subject to the specific provisions of the
      PLAN:

    

    
      	(a)  	
              to
                establish policies, procedures and to adopt rules and regulations
                for
                carrying out the purposes, provisions and administration of the
                PLAN;

            

    

    

    
      	(b)  	
              to
                interpret and construe the PLAN and to determine all questions arising
                out
                of the PLAN and any OPTION and any interpretation or construction
                made by
                the COMMITTEE shall be final, binding and conclusive for all
                purposes;

            

    

    

    
      	(c)  	
              to
                determine which ELIGIBLE PERSONS will be granted
                OPTIONS;

            

    

    

    
      	(d)  	
              to
                determine the terms and provisions of any grant of OPTION, including
                the
                time or times when any OPTION is exercisable and any restrictions
                on
                exercise of the OPTION or on the SHARES to be issued on exercise
                of the
                OPTION;

            

    

    

    
      	(e)  	
              to
                determine the terms and provisions of any agreements or documents
                arising from the PLAN;

            

    

    

    
      	(f)  	
              to
                determine the number of SHARES covered by each OPTION;
                and

            

    

    

    
      	(g)  	
              to
                determine the EXERCISE PRICE.

            

    

    

    

    
      	ARTICLE
              4  	
              SHARES
                SUBJECT TO PLAN

            

    

    

    
      	4.1  	
              SHARES
                Available

            

    

     

    The
      number of SHARES available for issuance upon exercise of OPTIONS granted shall
      be as specified by the BOARD from time to time provided that, subject to the
      provisions of Section 4.2, the total number of SHARES so available together
      with
      those previously issued under the PLAN shall not exceed five million (5,000,000)
      SHARES at the date of the grant of any OPTION. If any OPTION shall lapse or
      terminate for any reason without having been exercised in full, the unpurchased
      SHARES that are the subject of that OPTION shall be available for future
      OPTIONS.

    

    
      	4.2  	
              Adjustments

            

    

     

    The
      number of SHARES subject to the PLAN, the number of SHARES optioned and the
      EXERCISE PRICE shall be adjusted by the BOARD to give effect to adjustments
      resulting from subdivisions or consolidations or reclassifications or changes
      to, Class “A” shares or SHARES, the payment of stock dividends by the
      CORPORATION (other than dividends in the ordinary course) or other relevant
      changes in the capital of the CORPORATION.

    

    

    
      	ARTICLE
              5  	
              ELIGIBILITY
                AND GRANT

            

    

    

    
      	5.1  	
              Eligibility

            

    

     

    Options
      may only be granted to ELIGIBLE PERSONS. Any member of the COMMITTEE shall
      be
      eligible to be granted OPTIONS notwithstanding that such person shall be a
      member of the COMMITTEE.

    

    
      	5.2  	
              Grant

            

    

     

    The
      COMMITTEE may, from time to time, grant OPTIONS to ELIGIBLE PERSONS. Each
      ELIGIBLE PERSON who receives a grant of an OPTION shall receive a written
      notification from the CORPORATION specifying the relevant terms and provisions
      of the grant of the OPTION.

     

    

     

    

    
      	5.3  	
              Term

            

    

     

    In
      no
      event may the term of an OPTION exceed eight (8) years from the OPTION DATE,
      unless extended pursuant to the adoption of the PLAN under Article 9
      hereof.

    

    
      	5.4  	
              Non-Transferable

            

    

    

    The
      OPTIONS granted hereunder are not transferable, except pursuant to a domestic
      relations order (within the meaning of Rule 16a-12 of the Securities Exchange
      Act of 1934, as amended).

    

    

    
      	ARTICLE
              6  	
              TERMINATION
                OF OPTION

            

    

    

    
      	6.1  	
              Termination

            

    

     

    Subject
      to Section 6.2 hereof, an OPTION shall expire and terminate and be incapable
      of
      exercise immediately upon the OPTIONEE ceasing to be an ELIGIBLE PERSON. A
      person other than a director, officer or full time employee of the CORPORATION
      or of any AFFILIATE shall cease to be an ELIGIBLE PERSON ten (10) BUSINESS
      DAYS
      after receipt of notice to that effect from the CORPORATION.

    

    
      	6.2  	
              Rights
                in Certain Circumstances

            

    

     

    If
      before
      the expiry of an OPTION:

     

    

    
      	(a)  	
              the
                OPTIONEE ceases to be an ELIGIBLE PERSON as a result of a death or
                employment terminating as a result of permanent disability, then
                the
                OPTION may be exercised by the OPTIONEE or, in the event of death,
                by his
                legal representative only within twelve (12) months of the date of
                death
                or ceasing employment as a result of permanent disability or retirement
                but only to the extent that the OPTIONEE was entitled to exercise
                the
                OPTION at the date of death or termination of
                employment;

            

    

    

    
      	(b)  	
              the
                OPTIONEE ceases to be an ELIGIBLE PERSON as a result of resignation
                or
                termination of employment, without cause, by the CORPORATION or an
                AFFILIATE, then the OPTION may be exercised by the APPOINTEE only
                within
                sixty (60) days of the resignation or termination but only to the
                extent
                that the OPTIONEE was entitled to exercise the OPTION at the date
                of
                resignation or termination;

            

    

    

    
      	(c)  	
              the
                OPTIONEE ceases to be an ELIGIBLE PERSON as a result of the OPTIONEE
                receiving written notice to that effect from the CORPORATION as provided
                for in Section 6.1 hereof, then the OPTION may be exercised by the
                OPTIONEE only within sixty (60) days of the OPTIONEE ceasing to be
                an
                ELIGIBLE PERSON but only to the extent that the OPTIONEE was entitled
                to
                exercise the OPTION at the date that the OPTIONEE ceased to be an
                ELIGIBLE
                PERSON; 

            

    

    

    
      	(d)  	
              the
                OPTIONEE ceases to be an ELIGIBLE PERSON as a result of termination
                of
                employment, for cause, by the CORPORATION or an AFFILIATE, then the
                OPTION
                may be exercised by the OPTIONEE only within five (5) days of the
                termination but only to the extent that the OPTIONEE was entitled
                to
                exercise the OPTION at the date of
                termination.

            

    

    

    
      	(e)  	
              an
                order is made by a court of competent jurisdiction pursuant to the
                Matrimonial
                Property Act
                (Alberta) or other similar legislation purporting to deal with any
                SHARES
                held by the OPTIONEE or there is a seizure or attachment in any way
                of any
                SHARES held by the OPTIONEE for the payment of any judgment or order,
                then
                the OPTION may be exercised by the OPTIONEE only within five days
                of the
                occurrence of such event but only to the extent that the OPTIONEE
                was
                entitled to exercise the OPTION as of the date of the occurrence
                of such
                event;

            

    

    

    
      	(f)  	
              the
                OPTIONEE purports to sell, transfer, assign, pledge, hypothecate,
                mortgage
                or encumber any of the SHARES held by the OPTIONEE, other than to
                the
                CORPORATION, then the OPTION may be exercised by the OPTIONEE only
                within
                five (5) days of the occurrence of such event but only to the extent
                that
                the OPTIONEE was entitled to exercise the OPTION as of the date of
                the
                occurrence of such event.

            

    

    

    The
      foregoing provisions shall not have the effect of extending any OPTION beyond
      the period for exercise in accordance with its terms.

    

    

    
      	ARTICLE
              7  	
              AMENDMENT
                OR TERMINATION OF PLAN

            

    

    

    
      	7.1  	
              Amendment
                or Termination

            

    

    

    The
      PLAN
      may be amended by the BOARD as it may from time to time deem advisable. The
      BOARD may, in its discretion, terminate or fix a date for the termination of
      the
      PLAN. No amendment or termination of the PLAN may increase any EXERCISE PRICE
      other than by way of an adjustment contemplated by Section 4.2.

    

    

    
      	ARTICLE
              8  	
              EXERCISE
                OF OPTIONS

            

    

    

    
      	8.1  	
              Exercise

            

    

    

    Subject
      to the provisions of the PLAN, an OPTION may be exercised from time to time
      by
      delivery to the CORPORATION at its registered office of a written notice of
      exercise addressed to the secretary of the CORPORATION specifying the number
      of
      SHARES with respect to which the OPTION is being exercised and accompanied
      by
      payment in full of the EXERCISE PRICE of the SHARES to be purchased.
      Certificates for SHARES that are the subject of the exercise of an OPTION shall
      be issued and delivered to the OPTIONEE within a reasonable time following
      the
      receipt of the notice and payment.

    

    

    
      	ARTICLE
              9  	
              ADOPTION

            

    

    

    
      	9.1  	
              Upon
                Transaction Systems Architects, Inc. (“TSA”) adopting this PLAN the term
                of each OPTION due to expire on or after the date of the Combination
                Agreement made inter
                alia,
                among TSA and the CORPORATION and on or before the effective date
                thereunder shall be extended to February 28, 2001 and
                any then outstanding unvested OPTION shall automatically accelerate
                and
                become fully vested and immediately exercisable as of the effective
                date
                of the adoption of the PLAN by TSA.

            

    

    

    

    
      	ARTICLE
              10  	
              MISCELLANEOUS

            

    

    

    
      	10.1  	
              Rights
                Prior to Exercise

            

    

    

    An
      OPTIONEE shall not have any rights as a shareholder of the CORPORATION with
      respect to any of the SHARES covered by an OPTION until the OPTIONEE has
      exercised the OPTION in accordance with the terms of the PLAN. Nothing herein
      or
      in an OPTION shall confer on the OPTIONEE any right or interest whatsoever
      as a
      holder of SHARES or other securities of the CORPORATION or any other right
      or
      interest in any property of the CORPORATION except as herein expressly
      provided.

    

    
      	10.2  	
              Employment
                Rights Not Conferred

            

    

    

    Nothing
      in the PLAN or any OPTION shall confer upon any OPTIONEE any right to continue
      in the employment of the CORPORATION or any AFFILIATE or affect in any way
      the
      right of the CORPORATION or any AFFILIATE to terminate the employment of an
      OPTIONEE at any time. Nothing in the PLAN or in any OPTION shall be deemed
      or
      construed to constitute an agreement or an expression of intent on the part
      of
      the CORPORATION or any AFFILIATE to extend the employment of an OPTIONEE beyond
      the time that the OPTIONEE would normally be retired pursuant to any provisions
      of any present or future retirement plan or policy of the CORPORATION or any
      AFFILIATE, or beyond the time at which the OPTIONEE would otherwise be retired
      pursuant to the provisions of any contract of employment with the CORPORATION
      or
      an AFFILIATE.

    

    
      	10.3  	
              Singular,
                Plural and Gender

            

    

    

    Wherever
      the singular, plural, masculine, feminine or neuter is used throughout this
      PLAN, the same shall be construed as meaning the singular, plural, masculine,
      feminine or body corporate where the facts or context so requires.

    

    

    

    
      	10.4  	
              Governing
                Law

            

    

    

    This
      PLAN
      shall be governed and applied in accordance with the laws of the Province of
      Alberta, Canada.

    

    
      	10.5  	
              Notice

            

    

    

    Any
      notice permitted or contemplated to be given to an OPTIONEE may be given by
      the
      CORPORATION in writing addressed to the address of the OPTIONEE set forth in
      the
      OPTION CERTIFICATE or such other address as shall have been specified by the
      OPTIONEE by written notification to the CORPORATION and such a notice to the
      OPTIONEE shall be effective for all purposes of the PLAN.

    

    

    DATED
      at
      the City of Edmonton, in the Province of Alberta, this _____ day of
      ______________________, 2001.

    

    MESSAGINGDIRECT
      LTD.

    

    

    Per:
             

    

    Per:
             

    

    

    

    The
      foregoing Amended and Restated Stock Option plan is hereby expressly adopted
      by
      Transaction Systems Architects, Inc.

    

    

    DATED
      at
      the City of Omaha, in the State of Nebraska, this _____ day of
      ______________________, 2001.

    

    

    TRANSACTION
      SYSTEMS ARCHITECTS, INC.

    

    Per:
             

    

    Per:

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