Document:

Certificate of Adjustment

 

	 	 	 	 	 

EXHIBIT 4.2

CERTIFICATE OF ADJUSTMENT

to the Preferred Share Purchase Rights Plan

dated as of March 31, 1999, as amended (“Rights Plan”)

between Pediatrix Medical Group, Inc.

and

Computershare Trust Company N.A. (as successor to BankBoston, N.A.), rights agent

     The undersigned, Thomas W. Hawkins, the Senior Vice President, General Counsel and Secretary
of Pediatrix Medical Group, Inc., a Florida corporation (the “Company”), does hereby certify,
pursuant to Section 12 of the Rights Plan, that:

     (1) At 5:00 p.m. Eastern Time on April 27, 2006 (the “Effective Date”), the Company effected
a two-for-one division of the Company’s issued and outstanding common stock, $.01 par value.

     (2) Pursuant to Section 11(a) of the Rights Plan, as of the Effective Date, each preferred
share purchase right (a “Right”) entitles the registered holder, until the earlier of the close of
business on March 31, 2009, or the redemption or exchange of the Rights, to purchase from the
Company one two-thousandth of a share of Series A Junior Participating Preferred Stock, $.01 par
value, of the Company (“Preferred Stock”), at the time, at a price per one two-thousandth of a
share of Preferred Stock, and subject to the other terms and conditions contained in the Rights
Plan.

     (3) Pursuant to Section 23(a) of the Rights Plan, as of the Effective Date, the outstanding
Rights will be redeemable at a redemption price of $.0025 per Right.

[REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]

 

 

     IN WITNESS WHEREOF, the undersigned has hereunto signed his name this 27th day of April, 2006.

	 	 	 	 	 
	 	PEDIATRIX MEDICAL GROUP, INC.

 	 
	 	By:  	/s/ Thomas W. Hawkins
 	 
	 	 	Thomas W. Hawkins 	 
	 	 	Senior Vice President, General Counsel and Secretary<PAGE>

                                                                    EXHIBIT 10.1

                             JOHN H. HARLAND COMPANY

                            2006 STOCK INCENTIVE PLAN

                             ADOPTED APRIL 27, 2006

1. BACKGROUND AND PURPOSE

      The purpose of this Plan is to promote the interests of John H. Harland
Company through the granting of Options, Stock Appreciation Rights, Restricted
Stock and Performance Share Units in order to (1) attract and retain Employees,
(2) provide an additional incentive to each Employee to work to increase the
value of Stock, and (3) provide each Employee with a stake in the future of the
Company that corresponds to the stake of each of the Company's stockholders.

2. DEFINITIONS

      Each term set forth in this Section 2 shall have the meaning set forth
opposite such term and any reference to the plural of a defined term shall
include the singular.

      2.1 Award - an Option, SAR, Restricted Stock or Performance Share Unit
award.

      2.2 Award Agreement - the document that sets forth the terms and
conditions of an Award.

      2.3 Board - the Board of Directors of the Company.

      2.4 Change in Control Event - unless otherwise provided in the applicable
Award Agreement, the consummation of the sale by the Company of all or
substantially all of its assets or the consummation of any merger,
consolidation, reorganization, division or other corporate transaction, in each
case, where persons who were shareholders of the Company immediately prior to
such sale, merger, consolidation, reorganization, division or other corporate
transaction do not, immediately thereafter, own (directly or indirectly) more
than 50% of the combined voting power of the purchaser of the assets or the
merged, consolidated, reorganized or other entity resulting from such corporate
transaction and the entity resulting from such merger, consolidation,
reorganization, division or other corporate transaction is not an employee
benefit plan of the Company or its subsidiaries.

      2.5 Code - the Internal Revenue Code of 1986, as amended.

      2.6 Committee - a committee of the Board comprised of at least 3 members
appointed by the Board. Each Committee member shall be a "non-employee director"
within the meaning of Rule 16b-3 and an "outside director" within the meaning of
Code Section 162(m).

      2.7 Company - John H. Harland Company and any successor thereto.

      2.8 Effective Date - the date this Plan is approved by the shareholders of
the Company.

      2.9 Employee - an employee of the Company or any Subsidiary or Parent.

      2.10 Fair Market Value - as of any date, (a) if the Stock is quoted on a
national quotation system, (1) the closing price of the Stock on such date on
the national quotation system selected by the Committee or (2) if there was no
quotation of the Stock on such date on such quotation system, the closing price
on the next preceding business day on which there was such a quotation, or (b)
if the Stock is not quoted on a national quotation system, the price that the
Committee acting in good faith determines through any reasonable valuation
method that a share of Stock might change hands between a willing buyer and a
willing seller, neither being under any compulsion to buy or to sell and both
having reasonable knowledge of the relevant facts.

      2.11 ISO - an Option that is intended to satisfy the requirements of Code
Section 422.

<PAGE>

      2.12 1933 Act - the Securities Act of 1933, as amended.

      2.13 1934 Act - the Securities Exchange Act of 1934, as amended.

      2.14 Non-ISO - an Option that either expressly or operationally does not
satisfy the requirements of Code Section 422.

      2.15 Option - an option to purchase Stock granted in accordance with
Section 6.

      2.16 Option Price - the price to purchase one share of Stock upon the
exercise of an Option.

      2.17 Parent - any corporation that is a parent corporation of the Company
within the meaning of Code Section 424(e).

      2.18 Performance Goal - the goal or goals, if any, established by the
Committee based on one or more of the following business criteria that are to be
achieved during a performance period determined by the Committee:

   -  Earnings per Share
   -  Net Income
   -  Operating Income
   -  Earnings Growth
   -  Revenue
   -  Organic Growth
   -  Return on Assets
   -  Return on Equity
   -  Return on Investment
   -  Return on Capital Employed
   -  Cash Flow
   -  Operating Margins
   -  Working Capital
   -  Total Shareholder Return

      Performance Goals may be based (as the Committee deems appropriate) on (a)
Company-wide performance, (b) performance of a Subsidiary, division, region,
department, function, plant, facility or other operational unit of the Company,
(c) individual performance (if applicable), or (d) any combination of the
foregoing. Performance Goals may be set in any manner determined by the
Committee, including looking to achievement on an absolute basis or on a
relative basis to prior periods or in relation to peer group, indexes or other
external measure of the selected criteria. When the Committee establishes
Performance Goals, the Committee shall establish the general objective rules
that the Committee will use to determine the extent, if any, that such
Performance Goals have been met. In establishing the objective rules, the
Committee may take into account any extraordinary or one-time or other
non-recurring items of income or expense or gain or loss or any events,
transactions or other circumstances that the Committee deems relevant in light
of the nature of the Performance Goals set for the Employee or the assumptions
made by the Committee regarding such goals.

      2.19 Performance Share Unit - a unit granted pursuant to Section 9, the
value of which is equal to the Fair Market Value of one share of Stock and which
is payable in cash or Stock reflected by such grant.

      2.20 Plan - this 2006 Stock Incentive Plan.

      2.21 Restricted Stock - Stock granted in accordance with Section 8.

      2.22 Rule 16b-3 - the exemption under Rule 16b-3 of the 1934 Act.

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<PAGE>

      2.23 SAR or Stock Appreciation Right - a right granted pursuant to
Section 7 to be paid an amount measured by the appreciation in the Fair Market
Value of a share of Stock on the date of exercise over the grant price, with
payment to be made in cash or Stock, as provided in the Award Agreement.

      2.24 Stock - $1.00 par value common stock of the Company.

      2.25 Subsidiary - a corporation that is a subsidiary corporation of the
Company within the meaning of Code Section 424(f).

      2.26 Ten Percent Shareholder - a person who owns more than ten percent of
the total combined voting power of all classes of stock of either the Company, a
Subsidiary or Parent, after taking into account the attribution rules of Code
Section 424(d).

3. SHARES RESERVED UNDER PLAN; REDUCTION IN SHARES

      3.1 Maximum Authorization. There shall be 3,000,000 shares of Stock
authorized for issuance under this Plan, and no more than 500,000 shares of
Stock may be issued through ISOs. To the extent the Company deems appropriate,
such shares of Stock may be reserved from authorized but unissued shares of
Stock and from shares of Stock that have been reacquired by the Company. Any
shares of Stock subject to an Award that remain unissued after the cancellation,
expiration, exercise or exchange of the Award, and any shares subject to an
Award that are forfeited, shall be available for use in future grants under this
Plan. Any shares of Stock tendered to exercise an Option or to satisfy a
withholding obligation shall not be available for use in future grants under
this Plan.

      3.2 Reduction of Authorized Shares for Full Value Grants. Awards other
than Options and cash-settled SARs will reduce the number of shares of Stock
available for issuance under this Plan by 2.1 shares for each share of Stock
covered by a stock-settled SAR, Restricted Stock or Performance Share Unit.

4. COMMITTEE

      This Plan shall be administered by the Committee. The Committee acting in
its absolute discretion shall interpret this Plan and take such action in the
administration and operation of this Plan as the Committee deems appropriate
under the circumstances. For example, the Committee shall have the authority to
delegate to the Chief Executive Officer of the Company the power to grant Awards
to certain Employees pursuant to guidelines established by the Committee from
time to time and to delegate to any officers of the Company the power to carry
out administrative duties with respect to the Plan. Any action of the Committee
or its delegate shall be binding on the Company, on each affected Employee and
on each other person directly or indirectly affected by such action.

5. ELIGIBILITY AND ANNUAL GRANT CAPS

      Only Employees shall be eligible for the grant of Options, SARs,
Restricted Stock and Performance Share Units. No Employee shall be granted in
any calendar year Options to purchase more than 200,000 shares of Stock or SARs
with respect to more than 50,000 shares of Stock. No Employee shall be granted
more than 50,000 shares of Restricted Stock in any calendar year, and no
Employee shall be granted Performance Share Units with respect to more than
50,000 shares of Stock in any calendar year.

6. OPTIONS

      6.1 Committee Action. The Committee acting in its absolute discretion may
grant Options to Employees from time to time. An Option may be granted in
exchange for the cancellation of any option to purchase Stock, subject to the
provisions of Section 6.3, or under any other circumstances which the Committee
deems appropriate. Each Option shall be evidenced by an Award Agreement. The
Award Agreement shall describe whether the Option is an ISO or a Non-ISO and
shall incorporate such other terms and conditions of the grant as the Committee
acting in its absolute discretion deems appropriate. If the Committee grants an
ISO and a Non-ISO to an Employee on the same date, the right of the Employee to
exercise the ISO shall not be conditioned on his or her failure to exercise the
Non-ISO. However, the Committee shall have the right to grant a Non-ISO and
another type of Award (other than an ISO) to an Employee at the same time and to
condition the exercise of the Non-ISO on the forfeiture of such other Award.

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<PAGE>

      6.2 $100,000 Limit for ISOs. To the extent that the aggregate Fair Market
Value of Stock subject to ISOs (determined as of the date the ISO is granted)
that first becomes exercisable in any calendar year exceeds $100,000, such
Options shall be treated as Non-ISOs. The Fair Market Value of Stock subject to
any other option (determined as of the date the option is granted) that (a)
satisfies the requirements of Code Section 422 and (b) is granted to an Employee
under another plan maintained by the Company, a Subsidiary oR Parent shall be
treated (for purposes of this $100,000 limitation) as if granted under this
Plan. The Committee shall interpret and administer the limitation in this
Section 6.2 in accordance with Code Section 422(d) or any successor section.

      6.3 Option Price. The Option Price shall be no less than the Fair Market
Value of a share of Stock on the date the Option is granted; provided, however,
if the Option is an ISO granted to an Employee who is a Ten Percent Shareholder,
the Option shall be no less than 110% of the Fair Market Value of a share of
Stock on the date such ISO is granted. In no event may an outstanding Option be
amended (directly or indirectly, for example, by exchange) to lower the Option
Price thereof.

      6.4 Payment of Option Price. The Option Price shall be payable in full
upon the exercise of any Option. At the discretion of the Committee, an Award
Agreement may provide for the payment of the Option Price either in cash, by
check or in shares of Stock, or in any combination of cash, check and such
Stock. A payment by a check acceptable to the Committee shall be treated as a
payment in cash under this Plan. The Option Price may be paid through any
broker-facilitated cashless exercise procedure acceptable to the Committee or
its delegate, and if approved by the Committee, the Company may, in accordance
with an Employee's instructions, transfer Stock acquired upon the exercise of an
Option directly to a third party in connection with any arrangement made by the
Employee for financing the exercise of such Option. The value of any Stock
surrendered as payment in the exercise of an Option shall be equal to the Fair
Market Value of such Stock on the date such Stock is properly surrendered to the
Committee or its delegate.

      6.5 Exercise Period. Each Option shall be exercisable in whole or in part
at such time or times as set forth in the related Award Agreement, but no Option
shall be exercisable after the earlier of (a) the tenth anniversary of the date
the Option is granted, if the Option is (1) a Non-ISO or (2) an ISO that is
granted to an Employee who is not a Ten Percent Shareholder on the date the
Option is granted, or (b) the fifth anniversary of the date the Option is
granted, if the Option is an ISO and the Employee is a Ten Percent Shareholder
on the date the Option is granted. An Award Agreement may provide for the
exercise of an Option after the employment of an Employee has terminated for any
reason whatsoever, including death or disability; provided an Award Agreement
for an ISO must incorporate the post-employment exercise restrictions of Code
Section 422.

7. STOCK APPRECIATION RIGHTS

      7.1 Committee Action. The Committee acting in its absolute discretion may
grant SARs to Employees from time to time and may make SAR grants in exchange
for the cancellation of an outstanding SAR grant. Each such SAR grant shall be
evidenced by an Award Agreement.

      7.2 SAR Terms. The Committee shall determine the time or times at which a
SAR may be exercised in whole or in part, the grant price of the SAR (which
shall not be less than the Fair Market Value of a share of Stock on the date of
grant of the SAR), the method of exercise, form of consideration payable in
settlement (cash or shares of Stock), method by which Stock will be delivered or
deemed to be delivered to the Employee, whether or not a SAR shall be in tandem
with any other Award, and any other terms and conditions of any SAR.

      7.3 Exercise Period. Each SAR shall be exercisable in whole or in part at
such time or times as set forth in the related Award Agreement, but no SAR shall
be exercisable after the tenth anniversary of the date the SAR is granted. An
Award Agreement may provide for the exercise of a SAR after the employment of an
Employee has terminated for any reason whatsoever, including death or
disability.

8. RESTRICTED STOCK

      8.1 Committee Action. The Committee acting in its absolute discretion may
grant Restricted Stock to Employees from time to time and may make Restricted
Stock grants in exchange for the cancellation of an outstanding Restricted Stock
grant. Each grant of Restricted Stock shall be evidenced by an Award Agreement,
which shall describe

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<PAGE>

the conditions under which the Employee's interest in the underlying Stock will
become nonforfeitable, consistent with Section 8.2 below.

      8.2 Forfeiture Conditions. The Committee acting in its absolute discretion
may grant Restricted Stock subject to such forfeiture conditions (including,
without limitation, Performance Goals) as the Committee deems appropriate for
Employees generally or for an Employee in particular, and the Award Agreement
shall describe each such condition and the deadline for satisfying each such
condition to avoid forfeiture of the Restricted Stock. An Employee's
nonforfeitable interest in Restricted Stock shall depend on the extent to which
he or she timely satisfies each forfeiture condition. The Company or its agent
may retain custody of the Restricted Stock pending the satisfaction of any
forfeiture conditions applicable thereto.

      8.3 Dividends and Voting Rights. Except as otherwise provided in the Award
Agreement, any cash dividend declared on Restricted Stock shall be paid directly
to the Employee holding such Restricted Stock. No dividends to holders of
Restricted Stock shall be payable in Stock. An Employee shall have the right to
vote Restricted Stock.

      8.4 Satisfaction of Forfeiture Conditions. Shares of Stock shall cease to
be Restricted Stock at such time as provided in the Award Agreement, and a
certificate representing the unrestricted Stock shall be transferred to the
Employee as soon as practicable thereafter.

9. PERFORMANCE SHARE UNITS

      9.1 Committee Action. The Committee acting in its absolute discretion may
grant Performance Share Units to Employees from time to time. Each such
Performance Share Unit grant shall be evidenced by an Award Agreement, which
shall set forth the number of Performance Share Units granted to the Employee
and the performance period for the Award and shall describe the conditions under
which the Performance Share Units will vest and be paid and such other terms and
conditions of the grant as the Committee acting in its absolute discretion deems
appropriate.

      9.2 Vesting. The Committee acting in its absolute discretion may make
Performance Share Units subject to one or more objective employment, performance
or other vesting condition (including, without limitation, Performance Goals)
that the Committee deems appropriate for Employees generally or for an Employee
in particular, and the related Award Agreement shall set forth each vesting
condition and the deadline for satisfying the same.

      9.3 No Adjustment for Cash Dividends. Except as otherwise provided in the
Award Agreement, there shall be no adjustment to Performance Share Units for
dividends paid by the Company other than for dividend equivalent adjustments
made by the Committee for stock dividends in accordance with Section 13.1.

      9.4 Payment of Performance Share Units. Unless otherwise provided in the
Award Agreement, payment of a vested Performance Share Unit Award or, if an
Award provides for partial vesting, the vested portion of such Award shall be
made in a single sum of cash or Stock (as provided in the Award Agreement) as
soon as practicable after the Committee certifies that the Award or portion of
the Award is payable, but in no event later than 2-1/2 months after the calendar
year in which the Award or portion of the Award becomes vested.

      9.5 Section 409A Compliance. The Company intends that any Performance
Share Unit Awards granted hereunder (a) comply with the Code Section 409A and
the regulations, rulings and other guidance issued thereunder (the
"Requirements") and be operated in accordance with such Requirements so that
compensation paid in connection with such Awards (and applicable investment
earnings) shall not be included in income under Code Section 409A or (b) be
exempt from the application of the Requirements as a "short-term deferral". Any
ambiguities in this Plan shall be construed to effect the intent as described in
this Section 9.5. If any provision of this Plan is found to be in violation of
the Requirements, then such provision shall be deemed to be modified or
restricted to the extent and in the manner necessary to render such provision in
conformity with the Requirements, or shall be deemed excised from this Plan, and
this Plan shall be construed and enforced to the maximum extent permitted by the
Requirements as if such provision had been originally incorporated in this Plan
as so modified or restricted, or as if such provision had not been originally
incorporated in this Plan, as the case may be.

10. NONTRANSFERABILITY

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      An Award shall not be transferable by an Employee other than by will or by
the laws of descent and distribution. During an Employee's lifetime, an Award
shall be exercisable only by the Employee; however, the person or persons to
whom an Award is transferred by will or by the laws of descent and distribution
thereafter shall be treated as the Employee under this Plan. The restriction on
transfer described in this Section 10 shall be incorporated in each Award
Agreement.

11. SECURITIES REGISTRATION

      Each Award Agreement shall provide that, upon the receipt of Stock, the
Employee shall, if so requested by the Company, (a) hold such Stock for
investment and not with a view of resale or distribution to the public and (b)
deliver to the Company a written statement satisfactory to the Company to that
effect. As for Stock issued pursuant to this Plan, the Company at its expense
shall take such action as it deems necessary or appropriate to register the
original issuance of such Stock to an Employee under the 1933 Act or under any
other applicable securities laws or to qualify such Stock for an exemption under
any such laws prior to the issuance of such Stock to an Employee; however, the
Company shall have no obligation whatsoever to take any such action in
connection with the transfer, resale or other disposition of such Stock by an
Employee.

12. LIFE OF PLAN

      This Plan automatically shall terminate on the earlier of (1) the tenth
anniversary of the effective date of this Plan (as determined under Section 2.8)
or (2) the date on which all of the Stock authorized for issuance under Section
3 has been issued and the forfeiture conditions with respect to any outstanding
Restricted Stock Awards have been satisfied, and no Award shall be granted after
such date. In the event the Plan terminates as a result of clause (1) of the
preceding sentence, the outstanding Awards shall continue to be governed by the
terms of the Plan until all outstanding Awards have been exercised in full or
are no longer exercisable or forfeited or the conditions thereof satisfied.

13. ADJUSTMENT

      13.1 Capital Structure. In the event of any change in the capitalization
of the Company, including, but not limited to, such changes as stock dividends
or stock splits, the Committee shall adjust in an equitable manner (a) the
number, kind or class (or any combination thereof) of shares of Stock authorized
for issuance under Section 3 and subject to Options or Restricted Stock or
reflected by SARs or Performance Share Units, (b) the Option Price of Options
and (c) the grant price of SARs, to reflect such change.

      13.2 Sale or Merger. The Committee as part of any corporate transaction,
such as a merger, consolidation, acquisition or disposition of property or
stock, extraordinary dividend, separation (including a spin-off), reorganization
or partial or complete liquidation, shall have the right to adjust the number,
kind or class (or any combination thereof) of shares of Stock authorized for
issuance under Section 3 and subject to Options (including the Option Price of
such Options) or Restricted Stock or reflected by SARs (including the grant
price of such SARs) or Performance Share Units and related forfeiture and
vesting conditions. The Committee may grant Awards to effect the assumption of,
or the substitution for, awards previously granted by any other entity to the
extent that such transaction calls for such substitution or assumption of such
awards.

      13.3 Fractional Shares. If any adjustment under this Section 13 would
create a fractional share of Stock or a right to acquire a fractional share of
Stock, such fractional share shall be disregarded and the number of shares of
Stock that otherwise would result from such adjustment shall be the next lower
number of shares of Stock, rounding all fractions downward. An adjustment made
under this Section 13 by the Committee shall be conclusive and binding on all
affected persons.

14. CHANGE IN CONTROL OF THE COMPANY

      If there is a Change in Control Event and the agreement relating to the
Change in Control Event does not provide for the assumption or substitution of
Options and SARs, each Option and SAR Award Agreement in the discretion and at
the direction of the Committee may be canceled unilaterally if (1) any
restrictions on the exercise of the Option or SAR are waived before the Award
Agreement is canceled such that the Employee has the opportunity to exercise the
Option or SAR in full before such cancellation, (2) the Company transfers to the
Employee that number of shares of Stock obtained

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by dividing (a) the excess of the Fair Market Value of the number of shares
which remain subject to the exercise of such Option or SAR as of any date over
the total Option Price or grant price, as the case may be, by (b) the Fair
Market Value of a share of Stock on such date, which number shall be rounded
down to the nearest whole number, or (3) the Company transfers to an Employee
the same consideration which the Employee otherwise would receive as a
shareholder of the Company in connection with such Change in Control Event if
the Employee held the number of shares of Stock which would have been
transferable to him or to her under clause (2) above if such number had been
determined immediately before such Change in Control Event. In addition, in the
event of a Change in Control Event, in the sole discretion and at the direction
of the Committee, (i) any and all outstanding forfeiture conditions on any
Restricted Stock may be deemed satisfied in full, and (ii) a Performance Share
Unit Award may vest and be paid out at target.

15. AMENDMENT OR TERMINATION

      This Plan may be amended by the Board or the Committee from time to time
to the extent that the Board or the Committee deems necessary or appropriate;
provided, however, in the event any such amendment would require shareholder
approval under applicable law or stock exchange rules, such amendment shall be
subject to shareholder approval. The Board or the Committee also may suspend the
granting of Awards at any time and may terminate this Plan at any time;
provided, however, neither the Board nor the Committee shall have the right
unilaterally to modify, amend or cancel any Awards granted before such
suspension or termination unless (1) the Employee consents in writing to such
modification, amendment or cancellation or (2) there is a dissolution or
liquidation of the Company or a transaction described in Section 13 or Section
14. Notwithstanding the foregoing, unless otherwise determined by the Board or
the Committee upon amending the Plan, any outstanding Awards automatically shall
incorporate any amendments to the Plan.

16. MISCELLANEOUS

      16.1 Shareholder Rights. No Employee shall have any rights as a
shareholder of the Company as a result of the grant of an Option or SAR, or his
or her exercise of such Option or SAR, or the grant of a Performance Share Unit,
pending the actual delivery to such Employee of Stock upon the exercise or
vesting, as the case may be, of such Award. Subject to Section 8.3, an
Employee's rights as a holder of Restricted Stock shall be set forth in the
related Award Agreement.

      16.2 No Contract of Employment. The grant of an Award shall not constitute
a contract of employment and shall not confer on an Employee any rights upon his
or her termination of employment in addition to those rights, if any, expressly
set forth in the related Award Agreement.

      16.3 Withholding. Each Award shall be made subject to the condition that
the Employee consents to whatever action the Committee directs to satisfy the
minimum statutory federal, state and local tax withholding requirements, if any,
that the Committee in its discretion deems applicable to the exercise of such
Award or the satisfaction of any forfeiture or vesting conditions with respect
to such Award. An Employee may elect to satisfy such minimum federal and state
tax withholding requirements through a reduction in the number of shares of
Stock actually transferred to him or to her under this Plan. No withholding
shall be effected under this Plan that exceeds the minimum statutory federal and
state withholding requirements.

      16.4 Tax Bonus Payment. The Committee acting in its absolute discretion
shall have the power to authorize and direct the payment of a cash bonus to an
Employee to pay his or her federal, state and local income and excise tax
liability that the Committee deems attributable (a) to his or her interest in
Awards becoming nonforfeitable or vesting and (b) to such cash bonus. Any such
bonus shall be paid in no event later than the date that is 2-1/2 months after
the end of the calendar year in which Restricted Stock becomes nonforfeitable or
Performance Share Units vest.

      16.5 Construction. All references to sections (Section) are to sections
(Section) of this Plan unless otherwise indicated. The headings to sections in
this Plan have been included for convenience of reference only. This Plan shall
be construed under the laws of the State of Georgia.

      16.6 Other Conditions. Each Award Agreement may require that an Employee
enter into any agreement or make such representations prepared by the Company,
including any agreement that restricts the transfer of Stock acquired pursuant
to such Award or provides for the repurchase of such Stock by the Company under
certain circumstances.

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<PAGE>

      16.7 Rule 16b-3. The Committee shall have the right to amend any Award or
to withhold or otherwise restrict the transfer of any Stock under this Plan to
an Employee as the Committee deems appropriate in order to satisfy any condition
or requirement under Rule 16b-3 to the extent Rule 16 of the 1934 Act might be
applicable to such Award or transfer.

      16.8 Performance-Based Compensation under Code Section 162(m). The
Committee shall have full and absolute discretion to determine whether an Award
granted under this Plan is intended to comply with the requirements of Code
Section 162(m) and the regulations thereunder as "performance-based"
compensation.

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<PAGE>

                             JOHN H. HARLAND COMPANY
                            2006 STOCK INCENTIVE PLAN

                    NONQUALIFIED STOCK OPTION AWARD AGREEMENT

     This Agreement evidences the grant by John H. Harland Company (the
"Company"), in accordance with the Company's 2006 Stock Incentive Plan (the
"Plan"), of a nonqualified stock option ("Option") to the employee named below
("Employee"). This Option entitles Employee to purchase from the Company the
number of shares of Common Stock of the Company set forth below ("Shares") upon
satisfaction of the vesting requirements and payment of the exercise price per
share ("Option Price"), in each case as set forth below. This Option is granted
effective as of the date set forth below ("Date of Grant").

                                   ----------

     Employee:           ((Employee))

     Number of Shares:   ((Number))

     Option Price:       ((Option))

     Date of Grant:      ((Date))

                                         JOHN H. HARLAND COMPANY

                                         By:
                                             -----------------------------------

                              TERMS AND CONDITIONS

1.   Plan. This Option is subject to all of the terms and conditions set forth
     herein and in the Plan, which is herein incorporated by reference;
     provided, however, that if a term of the Plan would cause this Option to be
     subject to Section 409A of the Code, such term is not incorporated by
     reference. Any capitalized term not otherwise defined in this Option shall
     have the meaning defined in the Plan. If any term or condition in this
     Option is inconsistent with the Plan, the Plan shall control. A copy of the
     Plan will be made available to Employee upon written request to the
     Secretary of the Company. By accepting this Option, the Employee
     unconditionally agrees to be bound by the terms, conditions and provisions
     of the Plan.

<PAGE>

2.   Exercise. This Option is exercisable in cumulative annual installments
     covering 25% of the total number of Shares beginning one year from the Date
     of Grant.

3.   Expiration. This Option (subject to Section 4) shall expire immediately and
     automatically on the earlier of the 7th anniversary of the Date of Grant or
     three months after termination of the Employee's employment with the
     Company, and shall be exercisable only to the extent it was exercisable on
     the date of termination.

4.   Death or Disability. If Employee's employment terminates because Employee
     dies or becomes disabled (within the meaning of Section 22(e)(3) of the
     Internal Revenue Code of 1986), the three month period described in Section
     3 shall be extended to 12 months.

5.   Method of Exercise. This Option (to the extent exercisable under Sections 2
     and 3) may be exercised in whole or in part by giving notice of such
     exercise (through Merrill Lynch, who administers the Company's stock option
     program), specifying the number of Shares to be purchased. The Option Price
     may be paid either in cash, by check or Common Stock with a fair market
     value equal to the Option Price. However, in most circumstances it will be
     more convenient to pay the Option Price through a broker-facilitated
     cashless exercise procedure with Merrill Lynch.

6.   Adjustment of Shares. The Committee shall have the right to adjust the
     number of Shares subject to this Option and/or the Option Price, in
     accordance with the terms of the Plan.

7.   Nontransferable. This Option is not transferable by Employee otherwise than
     by will or by the laws of descent and distribution, and this Option shall
     be exercisable during Employee's lifetime only by Employee. The person(s),
     if any, to whom this Option is transferred by will or by such laws or
     through a Committee authorization shall be treated the same as Employee.

8.   No Right to Continued Employment. Neither the Plan nor this Option shall
     give Employee the right to continued employment by the Company or a
     Subsidiary or shall limit the right of the Company or any Subsidiary to
     terminate Employee's employment at any time.8.

9.   No Rights as Shareholder. Neither the Plan nor this Option shall give
     Employee any rights as a shareholder with respect to the Shares covered by
     this Option.

10.  Withholding. The Company shall have the right upon exercise of this Option
     to take such action as the Company deems necessary or appropriate to
     satisfy federal, state and local tax withholding requirements arising out
     of such exercise.

11.  Governing Law. The Plan and this Option shall be governed by the laws of
     the State of Georgia.

12.  Code Section 409A. This Option is intended to be exempt from the
     application of Section 409A of the Code.

13.  Binding Effect. This Option shall be binding upon the Company and Employee
     and their respective heirs, executors, administrators and successors.

<PAGE>

                             JOHN H. HARLAND COMPANY
                            2006 STOCK INCENTIVE PLAN

                    STOCK APPRECIATION RIGHT AWARD AGREEMENT

     This Agreement evidences the grant by John H. Harland Company (the
"Company"), in accordance with the Company's 2006 Stock Incentive Plan (the
"Plan"), of a Stock Appreciation Right ("SAR") to the employee named below
("Employee"). This SAR entitles Employee to receive from the Company, with
respect to the number of shares of Common Stock of the Company set forth below
("Shares"), the excess of the Fair Market Value of a Share as of the date of
exercise of this SAR over the grant price per share ("Grant Price"), but subject
to a cap represented by the target price ("Target Price"), in each case as set
forth below. This SAR is granted effective as of the date set forth below
("Grant Date").

     Employee:           ((Employee))

     Number of Shares:   ((Number))

     Grant Price:        $((Option))

     Target Price:       $

     Date of Grant:      ((Date))

                                         JOHN H. HARLAND COMPANY

                                         By:
                                             -----------------------------------

                              TERMS AND CONDITIONS

     Section 1. Plan. This SAR is subject to all of the terms and conditions set
forth herein and in the Plan, which is herein incorporated by reference;
provided, however, that if a term of the Plan would cause this SAR to be subject
to Section 409A of the Code, such term is not incorporated by reference. Any
capitalized term not otherwise defined in this SAR shall have the meaning
defined in the Plan. If any term or condition in this SAR is inconsistent with
the Plan, the Plan shall control. A copy of the Plan will be made available to
Employee upon written request to the Secretary of the Company. By accepting this
SAR, the Employee unconditionally agrees to be bound by the terms, conditions
and provisions of the Plan.

<PAGE>

     Section 2. Vesting. This SAR is exercisable in cumulative annual
installments covering 25% of the total number of Shares beginning one year from
the Grant Date, subject to the provisions of Section 4.

     Section 3. Exercise of SAR.

     Section 3.1. Exercise by Employee. Employee may exercise this SAR in whole
or in part (to the extent vested) by delivering a notice of exercise to the
Company or its third party administrator, as designated by the Company.

     Section 3.2. Automatic Exercise Event. Notwithstanding Section 3.1, if,
during the life of this SAR and prior to its forfeiture, the Fair Market Value
(defined as the closing price of the Company's Common Stock on the New York
Stock Exchange) of the Shares is equal to or greater than the Target Price for
10 consecutive business days, this SAR, to the extent vested and not previously
exercised, automatically shall be exercised in full with respect to all vested
Shares, without any further action by Employee. The Target Price was determined
by the Committee to represent the maximum appreciation on the value of this SAR
which may be realized by Employee. If any nonvested portion of this SAR
subsequently becomes vested after an automatic exercise as described above, that
vested portion automatically shall be exercised only when the Fair Market Value
of the Shares again is equal to or greater than the Target Price for 10
consecutive business days.

     Section 3.3. Settlement Upon Exercise. As soon as practicable after the
exercise of this SAR, the Company shall pay to Employee cash in an amount equal
to (a) the number of Shares for which this SAR is being exercised multiplied by
(b) the excess of the Fair Market Value of the Shares on the date of exercise
over the Grant Price, less applicable tax withholding. Such payment shall
discharge the Company of all obligations with respect to this SAR to the extent
exercised.

     Section 4. Termination of Employment.

     Section 4.1. General. If Employee's employment terminates for any reason,
this SAR, to the extent vested, shall remain exercisable during the Extended
Exercise Period (as defined below) and shall be forfeited to the extent not
exercised at the end of the Extended Exercise Period. The nonvested portion of
this SAR shall be forfeited upon termination of employment.

     Section 4.2. Extended Exercise Period. The Extended Exercise Period means
the period beginning upon termination of employment and ending on the earliest
to occur of

     (a) 90 days from the date of termination, if the termination is due to
reasons other than death or Disability (as defined in Section 22(e)(3) of the
Code),

     (b) one year from the date of termination, if the termination is due to
death or Disability, or

     (c) the expiration of the life of this SAR.

                                       -2-

<PAGE>

     Section 5. Life of SAR. This SAR shall expire and shall not be exercisable
after the seventh anniversary of the Grant Date.

     Section 6. Nontransferable. No rights granted under this SAR shall be
transferable by Employee other than by will or by the laws of descent and
distribution. The person(s), if any, to whom this SAR is transferred by will or
by such laws or through a Committee authorization shall be treated the same as
Employee.

     Section 7. No Right to Continued Employment. Neither the Plan nor this SAR
shall give Employee the right to continued employment by the Company or a
Subsidiary or shall limit the right of the Company or any Subsidiary to
terminate Employee's employment at any time.

     Section 8. No Rights as Shareholder. Neither the Plan nor this SAR shall
give Employee any rights as a shareholder with respect to the Shares used to
determine the payment to which Employee may be entitled under this SAR.

     Section 9. Withholding. The Company shall have the right upon exercise of
this SAR to take such action as the Company deems necessary or appropriate to
satisfy federal, state and local tax withholding requirements arising out of
such exercise, and may withhold a portion of the payment due to Employee to
satisfy such withholding requirements.

     Section 10. Governing Law. The Plan and this SAR shall be governed by the
laws of the State of Georgia.

     Section 11. Code Section 409A. This SAR is intended to be exempt from the
application of Section 409A of the Code.

     Section 12. Binding Effect. This SAR shall be binding upon the Company and
Employee and their respective heirs, executors, administrators and successors.

                                       -3-

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