Document:

exv10wxty

 

Exhibit 10(t)

STOCK OPTION AGREEMENT

UNDER 2002 / 2004 STOCK INCENTIVE PLAN

          Pursuant to the provisions of the Pulte Homes, Inc. 2002 / 2004 Stock Incentive Plan (the
“Plan”), the employee named in the Grant Acceptance (the “Optionee”) has been granted a
non-qualified option (the “Option”) to purchase the number of shares of common stock, $.01 par
value, of Pulte Homes, Inc., a Michigan corporation (together with its subsidiaries, the “Company”)
(“Common Stock”) set forth in the Grant Acceptance at the price per share set forth in the Grant
Acceptance (the “Exercise Price”), subject to adjustment as provided herein and in the Plan.
Capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the
Plan. This Agreement, together with the Grant Acceptance, constitute the Stock Option Agreement
which is made and entered into as of the grant date set forth in the Grant Acceptance (the “Grant
Date”).

          1. Option Subject to Acceptance of Agreement. The Option shall be null and void
unless the Optionee shall accept this Agreement in the manner prescribed by the Company.

          2. Time and Manner of Exercise of Option.

          2.1. Maximum Term of Option. Except to the extent earlier terminated or earlier
exercised, this Option shall expire on, and in no event may any portion of the Option be exercised
after, the tenth anniversary of the Grant Date (the “Expiration Date”).

          2.2. Exercise of Option. (a) Except as otherwise provided in this Section 2.2, the
Option shall vest and become exercisable as set forth in the Grant Acceptance.

          (b) If the Optionee’s employment with the Company terminates by reason of death or Permanent
Disability, the Option shall become fully vested and exercisable with respect to all of the shares
of Common Stock subject to the Option on the date of the Optionee’s death or the date of his or her
termination of employment, as applicable, and may thereafter be exercised by the Optionee or the
Optionee’s Legal Representative until and including the Expiration Date.

          (c) Subject to Section 2.2(d), if the Optionee’s employment with the Company terminates for
any reason other than death, Permanent Disability or Cause after a minimum of five (5) years of
employment with the Company, the Option shall be exercisable only to the extent it is vested and
exercisable on the date of the Optionee’s termination of employment and may thereafter be exercised
by the Optionee or the Optionee’s Legal Representative until and including the Expiration Date
(“Five Year Rule”), provided that the Optionee executes a non-competition, non-solicitation and
confidentiality agreement at such time and in such form and substance as shall be satisfactory to
the Company. If the Optionee has not executed such non-competition, non-solicitation and
confidentiality agreement, the Option shall vest and become exercisable in accordance with Section
2.2(e).

          (d) If the Optionee’s employment with the Company terminates for any reason other than death,
Permanent Disability or Cause after satisfaction of the Seventy Year

 

 

Rule, the Optionee shall be treated as continuing employment with the Company on a full-time
basis for purposes of determining the vesting and exercisability of the Option, and the Option
shall continue to vest and shall be exercisable by the Optionee or the Optionee’s Legal
Representative with respect to all of the shares of Common Stock subject to the Option as set forth
in the Grant Acceptance until and including the Expiration Date, provided that the Optionee
executes a non-competition, non-solicitation and confidentiality agreement at such time and in such
form and substance as shall be satisfactory to the Company. If the Optionee has not executed such
non-competition, non-solicitation and confidentiality agreement, the Option shall vest and become
exercisable in accordance with Section 2.2(e).

          (e) If either (i) the Optionee’s employment with the Company terminates prior to the
completion of five (5) years of employment or satisfaction of the Seventy Year Rule for a reason
other than death, Permanent Disability or Cause or (ii) the Optionee has not executed a
non-competition, non-solicitation and confidentiality agreement, at such time, and in such form and
substance, satisfactory to the Company, the Option shall be exercisable only to the extent it is
vested and exercisable on the date of the Optionee’s termination of employment and may thereafter
be exercised by the Optionee or the Optionee’s Legal Representative until and including the earlier
to occur of (i) the date which is three (3) months after the date of the Optionee’s termination of
employment and (ii) the Expiration Date.

          (f) If the Optionee’s employment with the Company terminates for Cause, the Option shall
terminate automatically as of the end of the day before such termination of employment.

          (g) In the event of a Change in Control, the Option shall immediately become fully vested and
exercisable with respect to all of the shares of Common Stock subject to the Option on the date of
the Change in Control and may thereafter be exercised by the Optionee or the Optionee’s Legal
Representative until and including the Expiration Date.

          (h) As used herein, the following terms have the meanings ascribed below:

          (i) The term “Cause” shall mean a determination by the Company that the Optionee has (i)
willfully and continuously failed to substantially perform the duties assigned by the Company or a
Subsidiary with which the Optionee is employed (other than a failure resulting from the Optionee’s
disability), (ii) willfully engaged in conduct which is demonstrably injurious to the Company or
any Subsidiary, monetarily or otherwise, including conduct that, in the reasonable judgment of the
Company, does not conform to the standard of the Company’s executives or employees, or (iii)
engaged in any act of dishonesty, the commission of a felony, or a significant violation of any
statutory or common law duty of loyalty to the Company or any Subsidiary.

          (ii) The term “Change in Control” shall mean:

     (A) the acquisition by any individual, entity or group (a “Person”), including any
“person” within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act, of
beneficial ownership within the meaning of Rule 13d-3 promulgated under the Exchange Act, of
40% or more of either (i) the then outstanding shares of

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common stock of the Company (the “Outstanding Common Stock”) or (ii) the combined
voting power of the then outstanding securities of the Company entitled to vote generally in
the election of directors (the “Outstanding Voting Securities”); excluding, however, the
following: (A) any acquisition directly from the Company (excluding any acquisition
resulting from the exercise of an exercise, conversion or exchange privilege unless the
security being so exercised, converted or exchanged was acquired directly from the Company),
(B) any acquisition by the Company, (C) any acquisition by an employee benefit plan (or
related trust) sponsored or maintained by the Company or any corporation controlled by the
Company, (D) any acquisition by any corporation pursuant to a transaction which complies
with clauses (i), (ii) and (iii) of subsection (C) of this Section 2.2(h)(ii) or (E) any
acquisition by any one or more of William J. Pulte, his spouse, any trust or other entity
established for the benefit of either or both of such persons, or any charitable
organization established by either or both of such persons (“Exempt Persons”); provided
further, that for purposes of clause (B), if any Person (other than the Company, any one or
more Exempt Persons or any employee benefit plan (or related trust) sponsored or maintained
by the Company or any corporation controlled by the Company) shall become the beneficial
owner of 40% or more of the Outstanding Common Stock or 40% or more of the Outstanding
Voting Securities by reason of an acquisition by the Company, and such Person shall, after
such acquisition by the Company, become the beneficial owner of any additional shares of the
Outstanding Common Stock or any additional Outstanding Voting Securities and such beneficial
ownership is publicly announced, such additional beneficial ownership shall constitute a
Change in Control;

     (B) individuals who, as of the date hereof, constitute the Board of Directors of the
Company (the “Incumbent Board”) cease for any reason to constitute at least a majority of
such Board of Directors; provided that any individual who becomes a director of the Company
subsequent to the date hereof whose election, or nomination for election by the Company’s
stockholders, was approved by the vote of at least a majority of the directors then
comprising the Incumbent Board shall be deemed a member of the Incumbent Board; and provided
further, that any individual who was initially elected as a director of the Company as a
result of an actual or threatened solicitation by a Person other than the Board of Directors
for the purpose of opposing a solicitation by any other Person with respect to the election
or removal of directors, or any other actual or threatened solicitation of proxies or
consents by or on behalf of any Person other than the Board of Directors shall not be deemed
a member of the Incumbent Board;

     (C) the consummation of a reorganization, merger or consolidation or sale or other
disposition of all or substantially all of the assets of the Company (a “Corporate
Transaction”); excluding, however, a Corporate Transaction pursuant to which (i) all or
substantially all of the individuals or entities who are the beneficial owners,
respectively, of the Outstanding Common Stock and the Outstanding Voting Securities
immediately prior to such Corporate Transaction will beneficially own, directly or
indirectly, more than 60% of, respectively, the outstanding shares of common stock, and the
combined voting power of the outstanding securities entitled to vote generally in the
election of directors, as the case may be, of the corporation resulting from such Corporate
Transaction (including, without limitation, a corporation which as a result of such

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transaction owns the Company or all or substantially all of the Company’s assets either
directly or indirectly) in substantially the same proportions relative to each other as
their ownership, immediately prior to such Corporate Transaction, of the Outstanding Common
Stock and the Outstanding Voting Securities, as the case may be, (ii) no Person (other than:
the Company; any employee benefit plan (or related trust) sponsored or maintained by the
Company or any corporation controlled by the Company; the corporation resulting from such
Corporate Transaction; and any Person which beneficially owned, immediately prior to such
Corporate Transaction, directly or indirectly, 40% or more of the Outstanding Common Stock
or the Outstanding Voting Securities, as the case may be) will beneficially own, directly or
indirectly, 40% or more of, respectively, the outstanding shares of common stock of the
corporation resulting from such Corporate Transaction or the combined voting power of the
outstanding securities of such corporation entitled to vote generally in the election of
directors and (iii) individuals who were members of the Incumbent Board will constitute at
least a majority of the members of the board of directors of the corporation resulting from
such Corporate Transaction; or

     (D) the consummation of a plan of complete liquidation or dissolution of the Company.

          (iii) The term “Legal Representative” shall mean an executor, administrator, legal
representative, guardian or similar person.

          (iv) The term “Permanent Disability” shall mean a sickness or disability extending for more
than three (3) consecutive months as a result of which the Optionee is unable to perform his or her
duties for the Company or a Subsidiary, as applicable, in the required and customary manner and
that will continue for not less than an additional three (3) months, as determined by the Company
in its sole discretion.

          (v) The term “Seventy Year Rule” shall mean that the sum of (a) the Optionee’s chronological
age (not the Optionee’s age on the nearest birthday) (excluding fractional periods) and (b) the
total number of twelve (12) month periods (beginning with the date on which the Optionee’s
employment with the Company commenced) during which the Optionee was employed by the Company on a
full-time basis (excluding fractional periods and any periods of employment with a company or other
entity before such company or entity was acquired in whole or in part by the Company or a
Subsidiary if such company or entity was acquired after December 31, 2000, provided that this
exclusion shall not apply to periods of employment with Del Webb Corporation or any of its
subsidiaries) equals or exceeds seventy (70) years.

          2.3. Method of Exercise. Subject to the limitations set forth in this Agreement, the
Option may be exercised by the Optionee (1) by giving written notice to the Company specifying the
number of whole shares of Common Stock to be purchased, accompanied by payment therefor in full (or
arrangement made for such payment to the Company’s satisfaction) either (A) in cash, (B) by
delivery to the Company (either actual delivery or by attestation procedures established by the
Company) of previously acquired shares of Common Stock for which the Optionee has good title, free
and clear of all liens and encumbrances and which the

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Optionee either has held for at least six months or purchased on the open market (“Mature
Shares”) having an aggregate Fair Market Value, determined as of the date of exercise, equal to the
aggregate purchase price payable pursuant to the Option by reason of such exercise, (C) except as
may be prohibited by applicable law, in cash by a broker-dealer acceptable to the Company to whom
the Optionee has submitted an irrevocable notice of exercise or (D) a combination of (A), (B), and
(C), and (2) by executing such documents as the Company may reasonably request. “Fair Market
Value,” as of a specified date, means the fair market value of a share of Common Stock as
determined by the Committee and may be determined by taking the mean between the highest and lowest
quoted selling prices of Common Stock on any exchange or other market on which shares of Common
Stock are traded on such date, or if there are not sales on such date, on the next following day on
which there are sales. Any fraction of a share of Common Stock which would be required to pay such
purchase price shall be disregarded and the remaining amount due shall be paid in cash by the
Optionee. No certificate representing a share of Common Stock shall be delivered until the full
purchase price therefor and any withholding taxes thereon, as described in Section 3.3, have been
paid (or arrangement made for such payment to the Company’s satisfaction).

          2.4. Termination of Option. In no event may the Option be exercised after it
terminates as set forth in this Section 2.4. The Option shall terminate, to the extent not
exercised pursuant to Section 2.3 or earlier terminated pursuant to Section 2.2(e) or (f), on the
Expiration Date.

          3. Additional Terms and Conditions of Option.

          3.1. Nontransferability of Option. The Option may not be transferred by the Optionee
other than by will or the laws of descent and distribution or pursuant to beneficiary designation
procedures approved by the Company. Except to the extent permitted by the foregoing sentence,
during the Optionee’s lifetime the Option is exercisable only by the Optionee or the Optionee’s
Legal Representative. Except to the extent permitted by the foregoing, the Option may not be sold,
transferred, assigned, pledged, hypothecated, encumbered or otherwise disposed of (whether by
operation of law or otherwise) or be subject to execution, attachment or similar process.

          3.2. Investment Representation. The Optionee hereby represents and covenants that (a)
any shares of Common Stock purchased upon exercise of the Option will be purchased for investment
and not with a view to the distribution thereof within the meaning of the Securities Act of 1933,
as amended (the “Securities Act”), unless such purchase of shares of Common Stock has been
registered under the Securities Act and any applicable state securities laws; (b) any subsequent
sale of any such shares of Common Stock shall be made either pursuant to an effective registration
statement under the Securities Act and any applicable state securities laws, or pursuant to an
exemption from registration under the Securities Act and such state securities laws; and (c) if
requested by the Company, the Optionee shall submit a written statement, in form satisfactory to
the Company, to the effect that such representation (x) is true and correct as of the date of
purchase of any shares of Common Stock hereunder or (y) is true and correct as of the date of any
sale of any such shares of Common Stock, as applicable. As a further condition precedent to any
exercise of the Option, the Optionee shall comply with all regulations and requirements of any
regulatory authority having control of or supervision over

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the issuance or delivery of the shares of Common Stock and, in connection therewith, shall
execute any documents which the Board of Directors or the Committee shall in its sole discretion
deem necessary or advisable.

          3.3. Withholding Taxes. (a) As a condition precedent to the delivery of Common Stock
upon exercise of the Option, the Optionee shall, upon request by the Company, pay to the Company in
addition to the purchase price of the shares of Common Stock, such amount of cash as the Company
may be required, under all applicable federal, state, local or other laws or regulations, to
withhold and pay over as income or other withholding taxes (the “Required Tax Payments”) with
respect to such exercise of the Option. If the Optionee shall fail to advance the Required Tax
Payments after request by the Company, the Company may, in its discretion, deduct any Required Tax
Payments from any amount then or thereafter payable by the Company to the Optionee or withhold
shares of Common Stock.

          (b) The Optionee may elect to satisfy his or her obligation to advance the Required Tax
Payments by any of the following means: (1) a cash payment to the Company pursuant to Section
3.3(a), (2) delivery (either actual delivery or by attestation procedures established by the
Company) to the Company of Mature Shares having an aggregate Fair Market Value, determined as of
the date the obligation to withhold or pay taxes first arises in connection with the Option (the
“Tax Date”), equal to the Required Tax Payments, (3) except as may be prohibited by applicable law,
a cash payment by a broker-dealer acceptable to the Company to whom the Optionee has submitted an
irrevocable notice of exercise, or (4) any combination of (1) and (2). Any fraction of a share of
Common Stock which would be required to satisfy any such obligation shall be disregarded and the
remaining amount due shall be paid in cash by the Optionee. No share of Common Stock shall be
delivered until the Required Tax Payments have been satisfied in full.

          3.4. Adjustment. In the event of any stock split, stock dividend, recapitalization,
reorganization, merger, consolidation, combination, exchange of shares, liquidation, spin-off or
other similar change in capitalization or event, or any distribution to holders of Common Stock
other than a regular cash dividend, the number and class of securities subject to the Option and
the purchase price per security shall be appropriately adjusted by the Committee without an
increase in the aggregate purchase price. If any adjustment would result in a fractional security
being subject to the Option, such fractional security shall be disregarded. The decision of the
Committee regarding any such adjustment shall be final, binding and conclusive.

          3.5. Change in Control. In the event of a Change of Control, the Option shall
immediately become fully vested and exercisable in accordance with Section 2.2(g) and the
Committee, as constituted before such Change of Control, may, in its discretion, take any one or
more of the following actions: (a) provide for the repurchase of the Option, in whole or in part,
upon the Optionee’s request, for an amount of cash equal to the excess, if any, of (i) the Fair
Market Value on the such date over (ii) the exercise price of the Option; (b) make such adjustment
to the Option as the Committee deems appropriate to reflect such Change in Control; or (c) cause
the Option to be assumed, or new rights substituted therefor, by the acquiring or surviving
corporation after such Change in Control.

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          3.6. Compliance with Applicable Law. The Option is subject to the condition that if
the listing, registration or qualification of the shares of Common Stock subject to the Option upon
any securities exchange or under any law, or the consent or approval of any governmental body, or
the taking of any other action is necessary or desirable as a condition of, or in connection with,
the purchase or delivery of shares of Common Stock hereunder, the Option may not be exercised, in
whole or in part, unless such listing, registration, qualification, consent or approval shall have
been effected or obtained, free of any conditions not acceptable to the Company. The Company
agrees to use reasonable efforts to effect or obtain any such listing, registration, qualification,
consent or approval.

          3.7. Delivery of Shares. Subject to Section 3.3, upon the exercise of the Option, in
whole or in part, the Company shall deliver or cause to be delivered the number of shares of Common
Stock purchased against full payment therefore. The Company shall pay all original issue or
transfer taxes and all fees and expenses incident to such delivery, except as otherwise provided in
Section 3.3.

          3.8. Option Confers No Rights as Stockholder. The Optionee shall not be entitled to
any privileges of ownership with respect to shares of Common Stock subject to the Option unless and
until purchased and delivered upon the exercise of the Option, in whole or in part, and the
Optionee becomes a stockholder of record with respect to such delivered shares; and the Optionee
shall not be considered a stockholder of the Company with respect to any such shares of Common
Stock not so purchased and delivered.

          3.9. Option Confers No Rights to Continued Employment. In no event shall the granting
of the Option or its acceptance by the Optionee give or be deemed to give the Optionee any right to
continued employment by the Company or a Subsidiary.

          3.10. Decisions of Board or Committee. The Board of Directors or the Committee shall
have the right to resolve all questions which may arise in connection with the Option or its
exercise. Any interpretation, determination or other action made or taken by the Board of
Directors or the Committee regarding the Plan or this Agreement shall be final, binding and
conclusive.

          3.11. Company to Reserve Shares. The Company shall at all times prior to the
expiration or termination of the Option reserve and keep available, either in its treasury or out
of its authorized but unissued shares of Common Stock, the full number of shares of Common Stock
subject to the Option from time to time.

          3.12. Agreement Subject to the Plan. This Agreement is subject to the provisions of
the Plan and shall be interpreted in accordance therewith. The Optionee hereby acknowledges
receipt of a copy of the Plan.

          4. Miscellaneous Provisions.

          4.1. Designation as Nonqualified Stock Option. The Option is hereby designated as not
constituting an “incentive stock option” within meaning of section 422 of the Code; this Agreement
shall be interpreted and treated consistently with such designation.

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          4.2. Employment by Subsidiary. References in this Agreement to employment by the
Company shall include employment by a Subsidiary.

          4.3. Successors. This Agreement shall be binding upon and inure to the benefit of any
successor or successors of the Company and any person or persons who shall, upon the death of the
Optionee, acquire any rights hereunder in accordance with this Agreement or the Plan.

          4.4. Notices. All notices, requests or other communications provided for in this
Agreement shall be made, if to the Company, to Pulte Homes, Inc., 100 Bloomfield Hills Parkway,
Suite 300, Bloomfield Hills, MI 48304, Attention: Vice President and General Counsel and if to the
Optionee, to the last known mailing address of the Optionee contained in the records of the
Company. All notices, requests or other communications provided for in this Agreement shall be
made in writing either (a) by personal delivery, (b) by facsimile with confirmation of receipt, (c)
by mailing in the United States mails or (d) by express courier service. The notice, request or
other communication shall be deemed to be received upon personal delivery, upon confirmation of
receipt of facsimile transmission, upon receipt by the party entitled thereto if by express courier
service, or five days after the date mailed if by United States mails; provided, however, that if a
notice, request or other communication is not received during regular business hours, it shall be
deemed to be received on the next succeeding business day of the Company.

          4.5. Governing Law. This Agreement, the Option and all determinations made and
actions taken pursuant hereto and thereto, to the extent not governed by the laws of the United
States, shall be governed by the laws of the State of Michigan and construed in accordance
therewith without giving effect to principles of conflicts of laws.

          4.6. Counterparts. This Agreement may be executed in two counterparts each of which
shall be deemed an original and both of which together shall constitute one and the same
instrument.

          4.7. Entire Understanding. This Agreement and the Plan contain the entire
understanding of the parties hereto with respect to the subject matter of the Agreement and
supersedes all prior agreements, written or oral, with respect thereto.

          4.8. Jurisdiction; Service of Process. Any action or proceeding seeking to enforce
any provision of, or based on any right arising out of, the Agreement shall be brought against the
parties, as the sole and exclusive forum, in the courts of the State of Michigan in the County of
Oakland, or in the United States District Court for the Eastern District of Michigan, Southern
Division, and each party consents to the jurisdiction of such courts (and of the appropriate
appellate courts) in any such action or proceeding and waives any objection to venue laid therein.

          4.9. Statute of Limitations. Any action, claim or lawsuit relating to this Agreement
must be filed no more than six (6) months after the date of the employment action that is the
subject of the action, claim or lawsuit. The Optionee voluntarily waives any statute of
limitations to the contrary.

8exv10w37

 

Exhibit 10.37

EMPLOYMENT AGREEMENT

     THIS
EMPLOYMENT AGREEMENT (this “Agreement”) is made as of this 7th day of May,
2001 by and among
Pamela A. Joseph (hereinafter referred to as “Employee”), NOVA
Corporation, a Georgia corporation (“NOVA Corp”), NOVA INFORMATION SYSTEMS, INC., a
Georgia corporation (“NOVA”) and U.S.
Bancorp, a Delaware corporation (“Parent”).

WITNESSETH:

     WHEREAS, NOVA Corp, through its direct and indirect subsidiaries, and Parent are in the
business of providing credit card and debit card transaction processing services and settlement
services (including the related products and services of automated teller machines and check
guarantee services) to merchants, financial institutions, independent sales organizations
(“ISOs”), and other similar customers (collectively, the “Business”) throughout the United States
and in Europe;

     WHEREAS, Employee currently serves as President of NOVA, and as Senior Executive Vice
President of NOVA Corp pursuant to an Employment Agreement between Employee and NOVA Corp
effective February 22, 2001 (the “Prior Agreement”);

     WHEREAS, Parent and NOVA Corp have entered into the Agreement and Plan of Merger dated as of
May 7, 2001 (the “Merger Agreement”), pursuant to which NOVA Corp will be merged with and into
Parent (the “Merger”) on the terms and subject to the conditions of the Merger Agreement;

     WHEREAS, NOVA and Parent, or their assigns, will continue to engage in the Business
throughout the United States and Europe (the “Territory”);

     WHEREAS, NOVA Corp and Employee desire to terminate the Prior Agreement, which termination
shall be contemporaneous with the effectiveness of this Agreement;

     WHEREAS, Parent desires to retain the services of Employee on the terms and conditions set
forth in this Agreement, and Employee desires to be employed by Parent on such terms and
conditions;

     NOW, THEREFORE, for and in consideration of the Confidential Information and Trade Secrets
(as hereafter defined) furnished to Employee by NOVA and Parent in order that she may perform her
duties under this Agreement, the mutual covenants and agreements herein contained, and other
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
hereto agree as follows:

     1. Employment of Employee. Parent hereby employs Employee for a period beginning as of the
effective date of the Merger (the “Effective Date”) and ending two (2) years thereafter (the
“Initial Term”), unless Employee’s employment by Parent is sooner terminated or automatically
renewed pursuant to the terms of this Agreement (Employee’s employment by Parent pursuant to the
terms of this Agreement shall hereinafter be referred to as “Employment”).

     (a) Employee agrees to such Employment on the terms and conditions herein set
forth and agrees to devote her reasonable best efforts to her duties under this
Agreement and to
perform such duties diligently and efficiently and in accordance with the directions of
NOVA’s
Chief Executive Officer.

     (b) During the term of Employee’s Employment, Employee shall serve as Senior
Executive Vice President of NOVA. Employee shall be responsible primarily for such
duties as

 

 

are assigned to her, from time to time, by NOVA’s Chief Executive Officer, which in any
event shall be such duties as are customary for an officer in those positions.

     (c) Employee shall devote substantially all of her business time, attention, and
energies to the business and the affairs of Parent, shall act at all times in the best
interests of Parent, and shall not during the term of her Employment be engaged in any
other business activity, whether or not such business is pursued for gain, profit, or other
pecuniary advantage, or permit such personal interests as she may have to interfere with
the performance of her duties hereunder. Notwithstanding the foregoing, Employee may
participate in industry, civic and charitable activities so long as such activities do not
materially interfere with the performance of her duties hereunder.

     2. Compensation.
During the term of Employee’s Employment and in accordance with the terms hereof, Parent shall pay
or otherwise provide to Employee the following compensation:

     (a) Employee’s annual salary during the term of her Employment shall be Three
Hundred Sixty Thousand and No/100 Dollars ($360,000) (or such increased base salary as
approved by NOVA Corp prior to the Merger, not to exceed 115% of such amount) (“Base
Salary”) , with such increases (each, a “Merit Increase”) as may from time to time be
deemed
appropriate by NOVA’s Chief Executive Officer; provided, however, that so long as this
Agreement remains in effect, Employee’s Base Salary shall be reviewed annually by
NOVA’s
Chief Executive Officer in each fiscal year, within a reasonable time following the
availability of
Parent’s financial statements for the preceding fiscal year. The Base Salary shall be
paid by
Parent in accordance with Parent’s regular payroll practice. As used herein, the term
“Base
Salary” shall be deemed to include any Merit Increases granted to Employee.

     (b) In addition to the Base Salary, Employee shall be eligible to receive annual bonus
compensation (“Bonus Compensation”) in the amount, and on the terms and conditions
described
in the Annual Incentive Compensation Schedule attached as Exhibit A or such
other terms as
NOVA’s Chief Executive Officer shall, prior to the Merger and after reasonable
consultation with
Employee, determine (the “Incentive Compensation Plan”), provided, however, that if
Employee
no longer is working primarily in the Business, Parent shall provide Employee with a
different
incentive compensation plan under which Employee will have a substantially similar
opportunity
to achieve annual bonus compensation in a substantially similar amount.

     (c) Employee will be granted on the Effective Date the option to purchase 250,000
shares of Parent common stock at a price per share equal to the closing price of Parent
common
stock on the Effective Date (the “Option”). The Option will vest in four (4) equal
increments of
25%. The first increment will vest on the first anniversary of the Effective Date.
Another
increment of the Option will vest every year thereafter until 100% of the Option is
vested.

     (d) Parent may withhold from any benefits payable under this Agreement all federal,
state, city or other taxes as shall be required pursuant to any law or governmental
regulation or
ruling.

     3. Benefits. During the term of Employee’s employment, and for such time thereafter as
may be required by Section 7 hereof, Parent shall provide to Employee the following benefits
(or in lieu
thereof for a transitional period immediately following the Merger, benefits equivalent to
those provided
to Employee by NOVA Corp immediately prior to the Merger):

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     (a) Medical Insurance. Employee and her dependents shall be entitled to
participate
in such medical, dental, vision, prescription drug, wellness, or other health care or
medical
coverage plans as may be established, offered or adopted from time to time by Parent
for the
benefit of similarly situated employees pursuant to the terms set forth in such plans.

     (b) Life Insurance. Employee shall be entitled to participate in any life
insurance
plans established, offered, or adopted from time to time by Parent for the benefit of
its similarly
situated employees.

     (c) Disability Insurance. Employee shall be entitled to participate in any
disability
insurance plans established, offered, or adopted from time to time by Parent for the
benefit of its
similarly situated employees.

     (d) Vacations. Holidays. Employee shall be entitled to at least four (4) weeks
of paid
vacation each year and all holidays observed Parent.

     (e) Stock Option Plans. Employee shall be eligible for participation in any
stock
option plan or restricted stock plan adopted by Parent’s Board of Directors or the
Compensation
Committee.

     (f) Other Benefits. In addition to and not in any way in limitation of the
benefits set
forth in this Section 3, Employee shall be eligible to participate in all additional
employee
benefits provided by Parent (including, without limitation, all tax-qualified
retirement plans, non
qualified retirement and/or deferred compensation plans, incentive plans, other stock
option or
purchase plans, and fringe benefits) on the same basis as such are afforded to
similarly situated
employees of Parent during the term of this Agreement.

     (g) Terms and Provisions of Plans. Parent agrees that it shall not take action
(during
the term of this Agreement or the “Continuation Period,” as defined in Section 7(a)) to
modify the
terms and provisions of any such plan or arrangement so as to exclude only Employee
and/or her
dependents, either by excluding Employee and/or her dependents explicitly by name or by
modifying provisions generally applicable to all employees and dependents so that only
Employee and/or her dependents would be affected.

     (h) Vesting of Rights. Upon the occurrence of a “Change in Control” (as
defined in Section 7(f)) during the term of this Agreement, and regardless of whether
Employee terminates this Agreement following such occurrence, and notwithstanding any
provision to the contrary in any other agreement or document (including Parent’s applicable
plan documents), all stock options, restricted stock, and other similar rights that have
been granted to Employee and that are not vested on the date of occurrence of such an
event, as well as any non-qualified retirement balance or deferred compensation plan
balance (collectively, the “Rights”) that are not vested on the date of occurrence of such
an event, shall become vested and exercisable immediately . As provided under the
applicable plan or agreement, Employee shall have the right to exercise any or all of the
Rights. Upon the Effective Date, the Rights of Employee existing on the Effective Date
shall be and become fully vested, nonforfeitable and immediately exercisable.

     4. Personnel Policies. Employee shall conduct herself at all times in a businesslike and
professional manner as appropriate for a person in her position and shall represent Parent in all
respects with good business and ethical practices. In addition, Employee shall be subject to and
abide by the policies and procedures of Parent applicable generally to personnel of Parent, as
adopted from time to time.

3

 

     5. Reimbursement for Business Expenses. Employee shall be reimbursed, on no less
frequently than a monthly basis, for all out-of-pocket business expenses incurred by her in
the
performance of her duties hereunder, provided that Employee shall first document and
substantiate said
business expenses in the manner generally required by Parent under its policies and
procedures.

     6. Term and Termination of Employment.

          (a) This Agreement shall be effective as of the Effective Date.

     (b) Employee’s Employment shall terminate immediately upon the discharge of
Employee by Parent for “Cause.” For the purposes of this Agreement, the term “Cause,”
when
used with respect to termination by Parent of Employee’s Employment hereunder, shall
mean
termination as a result of: (i) Employee’s violation of the covenants set forth in
Section 10 or 11;
(ii) Employee’s willful, intentional, or grossly negligent failure to perform her
duties under this
Agreement diligently and in accordance with the directions of Parent; (iii) Employee’s
willful,
intentional, or grossly negligent failure to comply with the decisions or policies of
Parent; or (iv)
final conviction of Employee of a felony; provided, however, that in the event
Parent desires to
terminate Employee’s Employment pursuant to subsections (i), (ii), or (iii) of this
Section 6(b),
Parent shall first give Employee written notice of such intent, detailed and specific
description of
the reasons and basis therefor, and thirty (30) days to remedy or cure such perceived
breaches or
deficiencies (the “Cure Period”); provided, however, that with respect only to
breaches that it is
not possible to cure within such thirty (30) day period, so long as Employee is
diligently using her
best efforts to cure such breaches or deficiencies within such period and thereafter,
the Cure
Period shall be automatically extended for an additional period of time (not to exceed
sixty (60)
days) to enable Employee to cure such breaches or deficiencies, provided,
further, that Employee
continues to diligently use her best efforts to cure such breaches or deficiencies.
If Employee
does not cure the perceived breaches or deficiencies within the Cure Period, Parent may
discharge
Employee immediately upon written notice to Employee. If Parent desires to terminate
Employee’s Employment pursuant to subsection (iv) of this Section 6(b), Parent shall
first give
Employee three (3) days prior written notice of such intent.

     (c)
Employee’s Employment shall terminate immediately upon the death of Employee.

     (d) Employee’s Employment shall terminate immediately upon thirty (30) days prior
written notice to Employee if Employee shall at any time be incapacitated by reason of
physical
or mental illness or otherwise become incapable of performing the duties under this
Agreement
for a continuous period of one hundred eighty (180) consecutive
days; provided, however, to the
extent Parent could, with reasonable accommodation and without undue hardship, continue
to
employ Employee in some other capacity after such one hundred eighty (180) day period,
Parent
shall, to the extent required by the Americans With Disabilities Act, offer to do so,
and, if such
offer is accepted by Employee, Employee shall be compensated accordingly.

     (e) Employee may terminate this Agreement, upon thirty (30) days prior written
notice to Parent (the “Notice Period”), in the event (i) there is a material diminution
in
Employee’s duties and responsibilities from the duties and responsibilities held by
Employee
immediately prior to the Merger, or such greater duties and responsibilities, as may be
assigned to
Employee from time to time; provided, however, that the change in Employee’s
duties and
responsibilities resulting from Employee no longer being an officer of a publicly
traded company
shall not, by itself, be sufficient to qualify as a “Responsibilities Breach”; (ii)
Employee is
required to relocate to an office that is more than thirty-five (35) miles from
Employee’s current

4

 

office located at One Concourse Parkway, Suite 300, Atlanta, Georgia 30328; (iii) there is a
reduction in Employee’s Base Salary payable under Section 2, an adverse change in the terms of the
Incentive Compensation Plan, or a material reduction in benefits provided to Employee under Section
3 (whether occurring at once or over a period of time); or (iv) NOVA or Parent materially breaches
this Agreement, (each of (i), (ii), (iii) and (iv) being referred to as a “Responsibilities
Breach”), and Parent fails to cure said Responsibilities Breach within the Notice Period;
provided, however, that with respect only to breaches that it is not possible to cure
within the Notice Period, so long as Parent is diligently using its best efforts to cure such
breaches within such Notice Period, the Notice Period shall be automatically extended for an
additional period of time (not to exceed sixty (60) days) to enable Parent to cure such breaches,
provided, further, that Parent continues to diligently use its best efforts to cure such
breaches. Notwithstanding anything to the contrary in this Section 6(e), the Notice Period for any
breach arising from the failure to pay compensation shall be five (5) days.

     (f) Employee may terminate this Agreement at any time, without cause, upon thirty

(30) days prior written notice to Parent.

     (g) Parent may terminate this Agreement at any time, without cause, upon written

notice to Employee.

     (h) This Agreement shall automatically renew for successive one (1) year terms (each a
“Renewal Term”) unless either Parent or Employee hereto gives the other party hereto written
notice of its or her intent not to renew this Agreement no later than one hundred eighty (180)
days prior to the date the Initial Term, or the then-current Renewal Term, is scheduled to expire.
Employee’s Employment shall terminate upon termination or expiration of this Agreement.

     7. Termination Payments.

     (a)
Upon termination of Employee’s Employment, for whatever reason
(other than termination for “Cause” pursuant to Section 6(b), termination by Employee pursuant to Section
6(f), expiration of this Agreement following notice of non-renewal by Employee pursuant to Section
6(h), or termination because Employee otherwise “quits” or voluntarily terminates her employment
other than pursuant to Section 6(e) (each, a “Termination Exclusion”)) (the effective date of such
termination or expiration being referred to as the “Termination Date”), in addition to any amounts
payable to Employee hereunder (including but not limited to accrued but unpaid Base Salary), and
any other benefits required to be provided to Employee and her dependents under contract and
applicable law:

     (i) Parent shall pay Employee in cash an amount equal to her “Annual Base
Compensation” (as defined in Section 7(f)) multiplied by two (2) (the “Severance
Payment”). The Severance Payment shall be paid in twenty-four (24) equal monthly
installments, the .first of which shall be made on the first day of the calendar month
following the calendar month in which the Termination Date occurs; provided, however,
that:

     (A) if Employee’s Employment is terminated (other than by reason of a
Termination Exclusion) within two (2) years after a Change in Control as defined
in Section 7(f)(i)(A), (B) or (C), Parent shall pay Employee the Severance Payment
in one lump sum within thirty (30) days of the Termination Date.

5

 

     (B) if, within the two-year period immediately following a Change in
Control as defined in Section 7(f)(i)(D), Employee’s Employment is terminated
by Employee pursuant to Section 6(f), because Employee “quits” or voluntarily
terminates her employment or this Agreement expires following notice of non-
renewal by Employee pursuant to Section 6(h), such a termination shall not be
deemed to be a Termination Exclusion for purposes of this Section 7.
Accordingly, Parent shall pay Employee an amount equal to her Annual Base
Compensation multiplied by two (2), and Parent shall pay Employee this
Severance Payment in one lump sum within thirty (30) days of the Termination
Date; provided, however, in such a case, (i) Employee will not be paid any
Supplemental Payment and (ii) Employee will not be entitled to her Bonus
Compensation if such a terminating event occurs prior to the date when any
accrued Bonus Compensation would be paid to Employee (even if she was
employed for the entire calendar year upon which such Bonus Compensation
would be calculated).

     (C) in the event Employee is terminated for Cause pursuant to the
terms of Section 6(b), such event shall be governed by Section 7(b) hereof even
if such Termination Date is within two (2) years after a Change in Control.

     (ii) Parent shall pay Employee an amount (the “Supplemental Payment”) equal to (x) the amount
of Bonus Compensation payable to Employee for the calendar year immediately preceding the year in
which the Termination Date occurs (the “Prior Bonus Amount”) multiplied by (y) a fraction, the
numerator of which is the number of days beginning on January 1st of the calendar year
in which the Termination Date occurs and ending on the Termination Date, and the denominator of
which is 365. The Supplemental Payment shall be paid to Employee concurrently with the payment of
the Prior Bonus Amount; provided, however, that if the Prior Bonus
Amount has already been paid to
Employee, the Supplemental Payment shall be paid within 30 days of the Termination Date. In the
event the Termination Date occurs in the first calendar year of Employee’s employment, then the
Supplemental Payment shall equal the pro rata percentage (determined using the fraction above) of
the Bonus Compensation Employee would have received for the calendar year in which the Termination
Date occurred had Employee remained employed for the entire calendar year in which the Termination
Date occurred, and the Supplemental Payment shall be paid to Employee concurrently with Parent’s
payment of Bonus Compensation generally for such calendar year.

     (iii) Notwithstanding any provision to the contrary in any nonqualified deferred compensation
plan of Parent or NOVA (the “Nonqualified Plan”), Employee shall become fully vested immediately
in all of her Nonqualified Plan benefits and accounts as of the Termination Date.

     (iv) Notwithstanding any provision to the contrary in any other agreement or document
(including but not limited to Parent’s applicable plan documents), all stock options, restricted
stock and other similar rights that, as of the Termination Date, have been granted to Employee
shall become vested and exercisable immediately upon notice of such termination and, as provided
under the applicable plan or agreement, Employee shall have the right to exercise any or all of
such rights. Further, in the event Employee’s Employment is terminated for whatever reason (other
than termination for “Cause” pursuant to Section 6(b)) within two (2) years after a Change in
Control as-defined in Section 7(f)(i)(D), Employee shall have the continuing right to exercise the
“Qualified

6

 

Options” (as defined in Section 7(f)(iv)), at any time prior to the date which is one (1)
year after the Termination Date (without regard to any provision thereof requiring earlier
expiration upon termination of employment).

     (v) Until the earlier to occur of (x) the expiration of the Severance Period or (y)
Employee becomes an employee of another company providing Employee and her dependents with
medical, life and disability insurance (the period from the Termination Date until such
event being referred to herein as the “Continuation Period”), Parent shall provide to
Employee and her dependents the coverage for the benefits described in Sections 3(a), (b)
and (c); provided, however, such coverage shall not be provided to the extent that such
coverage is generally provided through an insurance contract with a licensed insurance
company and such insurance company will not agree to insure for such coverage.

During the two (2) year period following the Termination Date (the “Severance Period”), Employee
shall comply with the non-disclosure obligations and covenants not to solicit or compete set forth
in Sections 10 and 11 below.

Except as provided in Section 7(a)(i)(B), for purposes of this Section 7(a), any accrued but
unpaid Bonus Compensation shall be paid to Employee on the date that Bonus Compensation would have
been payable under the Incentive Compensation Plan had termination of Employee’s Employment not
occurred.

     (b) In the event Employee’s Employment is terminated as a result of the Termination
Exclusions identified in Section 7(a), Employee shall be paid her accrued but unpaid Base
Salary
through the Termination Date, and any other benefits required to be provided to Employee and
her dependents under contract and applicable law. Employee will not be entitled to her Bonus
Compensation if Employee’s Employment is terminated as a result of one of the Termination
Exclusions prior to the date when any earned Bonus Compensation would be paid to Employee.
In such a case, Employee shall not be entitled to any portion of her Bonus Compensation upon
such termination of employment even if she was employed for the entire calendar year upon
which such Bonus Compensation would be calculated.

     (c) In the event Employee’s Employment is terminated as a result of one of the
Termination Exclusions identified in Section 7(a), Parent, at its sole option and its sole
discretion
and at any time within thirty (30) days of the Termination Date, may cause Employee to be
obligated to comply with the non-disclosure obligations and covenants not to solicit or
compete
set forth in Sections 10 and 11 below for a period of one
(1) or two (2) years following the Termination Date, as set forth below:

     (i) By giving notice to Employee at any time within thirty (30) days of the
Termination Date of its intent to exercise the “One Year Option” herein described, Parent
may cause Employee to be obligated to comply with the non-disclosure obligations and
covenants not to solicit or compete set forth in Sections 10 and 11 below for a period of
one (1) year following the Termination Date; provided, however, that Parent shall pay
Employee an aggregate amount in cash equal to Employee’s then Base Salary in effect
immediately prior to the Termination Date multiplied by one (1) (the “One Year Payment”).
The One Year Payment shall be paid by Parent to Employee in twelve (12) equal monthly
payments, the first of which shall be made on the first day of the calendar month
following the calendar month in which the Termination Date occurs. In the event

7

 

Parent exercises the One Year Option, the one (1) year period following the Termination
Date shall be deemed the “Exclusion Period”;

     (ii) By giving notice to Employee any time within thirty (30) days of the Termination
Date of its intent to exercise the “Two Year Option” herein described, Parent may cause
Employee to be obligated to comply with the non-disclosure obligations and covenants not to
solicit or compete set forth in Sections 10 and 11 below for a period of two (2) years
following the Termination Date; provided, however, that Parent shall pay Employee an
aggregate amount in cash equal to Employee’s Base Salary in effect immediately prior to the
Termination Date multiplied by two (2) (the “Two Year Payment”). The Two Year Payment shall
be paid by Parent to Employee in twenty-four (24) equal monthly payments, the first of
which shall be made on the first day of the calendar month following the calendar month in
which the Termination Date occurs. In the event Parent exercises the Two Year Option, the
two (2) year period following the Termination Date shall be deemed the “Exclusion Period”.

Notwithstanding the foregoing, in the event Employee’s employment is terminated within two (2)
years after the Effective Date as a result of one of the Termination Exclusions identified in
Section 7(a), the provisions of Section 10 and 11 below will apply until the second anniversary of
the Effective Date without any payment by Parent. If Parent, upon Employee’s termination, elects a
One Year Option or Two Year Option, Parent shall not be obligated to make any payments with
respect to such One Year Option or Two Year Option covering the portion of the applicable period
occurring prior to the second anniversary of the Effective Date and any such payments which would
have otherwise been made to Employee pursuant to this Section 7(c) prior to the second anniversary
of the Effective Date shall be waived.

          (d) In the event of the death of Employee, all benefits and compensation hereunder
shall, unless otherwise specified by Employee, be payable to, or
exercisable by, Employee’s estate.

          (e) Gross-Up Payment.

     (i) Anything in this Agreement to the contrary notwithstanding, in the event it shall
be determined that any payment, grant, acceleration or distribution by or on behalf of
Parent to or for the benefit of Employee as a result of any change in control (within the
meaning of Section 280 G of the internal revenue code) or as otherwise payable under
Sections 3(h), 7(a) or 16 (whether paid or payable or distributed or distributable
pursuant to the terms of this Agreement or otherwise, but determined without regard to any
additional payments required under this Section 7(e) (a “Payment”)) would be subject to
the excise tax imposed by Section 4999 of the Internal Revenue Code of 1986, as amended
(the “Code”), or any interest or penalties are incurred by Employee with respect to such
excise tax (such excise tax, together with any such interest and penalties, are
hereinafter collectively referred to as the “Excise Tax”), then Employee shall be entitled
to receive an additional payment (a “Gross-Up Payment”) in an amount such that, after
payment by Employee of all taxes upon the Gross-Up Payment (such taxes including, without
limitation, any income taxes and Excise Tax imposed upon the Gross-Up Payment, and any
interest or penalties imposed with respect to such taxes), Employee retains an amount of
the Gross-Up Payment equal to the Excise Tax imposed upon the Payment.

8

 

     (ii) Subject to the provisions of Section 7(e)(iii), all determinations required to be made
under this Section 7, including whether and when a Gross-Up Payment is required and the amount of
such Gross-Up Payment and the assumptions to be utilized in arriving at such determination, shall
be made by a nationally recognized accounting firm or law firm selected by Employee and reasonably
acceptable to Parent (the “Tax Firm”); provided, however, that the Tax Firm shall not
determine that no Excise Tax is payable by Employee unless it delivers to Employee a written
opinion (the “Accounting Opinion”) that failure to pay the Excise Tax and to report the Excise Tax
and the payments potentially subject thereto on or with Employee’s applicable federal income tax
return will not result in the imposition of an accuracy-related or other penalty on Employee. All
fees and expenses of the Tax Firm shall be borne solely by Parent. Within fifteen (15) business
days of the receipt of notice from Employee that there has been a Payment, the Tax Firm shall make
all determinations required under this Section 7, shall provide to Parent and Employee a written
report setting forth such determinations, together with detailed supporting calculations, and, if
the Tax Firm determines that no Excise Tax is payable, shall deliver the Accounting Opinion to
Employee. Any Gross-Up Payment, as determined pursuant to this Section 7, shall be paid by Parent
to Employee within fifteen (15) days of the receipt of the Tax Firm’s determination. Subject to the
remainder of this Section, any determination by the Tax Firm shall be binding upon Parent and
Employee; provided, however, that Employee shall only be bound to the extent that the
determinations of the Tax Firm hereunder, including the determinations made in the Accounting
Opinion, are reasonable and reasonably supported by applicable law. As a result of the uncertainty
in the application of Section 4999 of the Code at the time of the initial determination by the Tax
Firm hereunder, it is possible that Gross-Up Payments which will not have been made by Parent
should have been made (“Underpayment”), consistent with the calculations required to be made
hereunder. In the event that it is ultimately determined in accordance with the procedures set
forth in Section 7(e)(iii) that Employee is required to make a payment of any Excise Tax, the Tax
Firm shall reasonably determine the amount of the Underpayment that has occurred and any such
Underpayment shall be promptly paid by Parent to or for the benefit of Employee. In determining the
reasonableness of Tax Firm’s determinations hereunder, and the effect thereof, Parent and Employee
shall be provided a reasonable opportunity to review such determinations with Tax Firm and their
respective tax counsel, if separate from the Tax Firm. Tax Firm’s determinations hereunder, and the
Accounting Opinion, shall not be deemed reasonable until Employee’s reasonable objections and
comments thereto have been satisfactorily accommodated by Tax Firm.

     (iii) Employee shall notify Parent in writing of any claims by the Internal Revenue Service
that, if successful, would require the payment by Parent of the Gross-Up Payment. Such notification
shall be given as soon as practicable, but no later than thirty (30) calendar days after Employee
actually receives notice in writing of such claim, and shall apprise Parent of the nature of such
claim and the date on which such claim is requested to be paid;
provided, however, that the
failure of Employee to notify Parent of such claim (or to provide any required information with
respect thereto) shall not affect any rights granted to Employee under this Section except to the
extent that Parent is materially prejudiced in the defense of such claim as a direct result of such
failure. Employee shall not pay such claim prior to the expiration of the thirty (30) day period
following the date on which she gives such notice to Parent (or such shorter period ending on the
date that any payment of taxes with respect to such claim is due). If Parent

9

 

notifies Employee in writing prior to the expiration of such period that it desires to contest such
claim, Employee shall do all of the following:

     (A)
give Parent any information reasonably requested by Parent relating to such claim;

     (B) take such action in connection with contesting such claim as
Parent shall reasonably request in writing from time to time, including, without
limitation, accepting legal representation with respect to such claim by an
attorney selected by Parent and reasonably acceptable to Employee;

     (C)
cooperate with Parent in good faith in order effectively to contest such claim;

     (D) if Parent elects not to assume and control the defense of such
claim, permit Parent to participate in any proceedings relating to such claim;
provided, however, that Parent shall bear and pay directly all costs and expenses
(including additional interest and penalties) incurred in connection with such
contest and shall indemnify and hold Employee harmless, on an after-tax basis,
for any Excise Tax or income tax (including interest and penalties with respect
thereto) imposed as a result of such representation and payment of costs and
expenses. Without limiting the foregoing provisions of this Section 7, Parent
shall have the right, at its sole option, to assume the defense of and control all
proceedings in connection with such contest, in which case it may pursue or
forego any and all administrative appeals, proceedings, hearings and conferences
with the taxing authority in respect of such claim and may either direct Employee
to pay the tax claimed and sue for a refund or contest the claim in any
permissible manner, and Employee agrees to prosecute such contest to a
determination before any administrative tribunal, in a court of initial jurisdiction
and in one or more appellate courts, as Parent shall determine; provided,
however, that if Parent directs Employee to pay such claim and sue for a
refund,
Parent shall advance the amount of such payment to Employee, on an interest-
free basis and shall indemnify and hold Employee harmless, on an after-tax basis,
from any Excise Tax or income tax (including interest or penalties with respect
thereto) imposed with respect to such advance or with respect to any imputed
income with respect to such advance; and further provided that any extension of
the statute of limitations relating to payment of taxes for the taxable year of
Employee with respect to which such contested amount is claimed to be due is
limited solely to such contested amount. Furthermore, Parent’s right to assume
the defense of and control the contest shall be limited to issues with respect to
which a Gross-Up Payment would be payable hereunder and Employee shall be
entitled to settle or contest, as the case may be, any other issue raised by the
Internal Revenue Service or any other taxing authority.

     (iv) If, after the receipt by Employee of an amount advanced by Parent pursuant to this
Section 7(e), Employee becomes entitled to receive any refund with respect to such claim, Employee
shall (subject to Parent’s complying with the requirements of Section 7(e)(iii)) promptly pay to
Parent the amount of such refund (together with any interest paid or credited thereon after taxes
applicable thereto). If, after the receipt by Employee of an amount advanced by Parent pursuant to
Section 7(e)(iii), a determination is made that Employee is not entitled to a refund with

10

 

respect to such claim and Parent does not notify Employee in writing of its intent to contest such
denial of refund prior to the expiration of thirty (30) days after such determination, then such
advance shall, to the extent of such denial, be forgiven and shall not be required to be repaid
and the amount of forgiven advance shall offset, to the extent thereof, the amount of Gross-Up
Payment required to be paid.

     (f) For purposes of this Agreement, the following terms shall be defined as follows:

     (i) “Change in Control” shall mean :

     (A) The acquisition (other than from Parent) by any person, entity or
“group”, within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities
Exchange Act of 1934 (the “Exchange Act”) (excluding, for this purpose, any
employee benefit plan of Parent or its subsidiaries which acquires beneficial
ownership of voting securities of Parent) of beneficial ownership (within the
meaning of Rule 13d-3 promulgated under the Exchange Act) of 25% or more of
either the then outstanding shares of Parent’s stock or the combined voting
power of Parent’s then outstanding voting securities entitled to vote generally in
the election of directors; or

     (B) The consummation by Parent of a reorganization, merger,
consolidation, in each case, with respect to which the shares of Parent voting
stock outstanding immediately prior to such reorganization, merger or
consolidation do not constitute or become exchanged for or converted into more
than 50% of the combined voting power entitled to vote generally in the election
of directors of the reorganized, merged or consolidated company’s then
outstanding voting securities, or a liquidation or dissolution of Parent or of the
sale of all or substantially all of the assets of Parent; or

     (C) The failure for any reason of individuals who constitute the
Incumbent Board to continue to constitute at least a majority of the board of
directors of Parent; or

     (D) The sale, assignment or transfer of the Business to an
unaffiliated third party, whether by sale of all or substantially all the assets of
the
Business, sale of stock or merger.

     (ii) “Annual Base Compensation” means the greater of (x) Employee’s Base Salary in effect on
the Termination Date, or (y) the greatest Base Salary in effect during the calendar year
immediately prior to the calendar year in which the Termination Date occurs.

     (iii) “Incumbent
Board” shall mean the members of the Board of Directors of Parent as of the
Effective Date hereof and any person becoming a member of the Board of Directors of Parent
hereafter whose election, or nomination for election by Parent’s shareholders, was approved by a
vote of at least a majority of the directors then comprising the Incumbent Board (other than an
election or nomination of an individual whose initial assumption of office is in connection with
an actual or threatened election contest relating to the election of the directors of Parent, as
such terms are used in Rule 14a-l 1 of Regulation 14A promulgated under the Exchange Act).

11

 

     (iv) “Qualified Options” shall mean all stock options, restricted stock, and
other similar rights (a) granted to Employee prior to February 22, 2001 (whether
vested or unvested), that entitle Employee to acquire NOVA Corp stock for a price
per share equal to or greater than $17.92 (such options being converted by virtue of
the Merger into the right to acquire stock of Parent); or (b) granted to Employee on
or after February 22, 2001.

     8. Products, Notes, Records and Software. Employee acknowledges and agrees that all
memoranda, notes, records and other documents and computer software created, developed,
compiled, or
used by Employee or made available to her during the term of her Employment concerning or
relative to
the business and affairs of NOVA or Parent, including, without limitation, all customer data,
billing
information, service data, and other technical material of NOVA or Parent is and shall be
NOVA’s or
Parent’s, as the case may be, property. Employee agrees to deliver without demand all such
materials to
Parent within three (3) days after the termination of Employee’s Employment. Employee further
agrees
not to use such materials for any reason after said termination.

     9. Arbitration.

     (a) Parent and Employee acknowledge and agree that (except as specifically set forth
in Section 9(d)) any claim or controversy arising out of or relating to this Agreement
shall be
settled by binding arbitration in Atlanta, Georgia, in accordance with the National
Rules of the
American Arbitration Association for the Resolution of Employment Disputes in effect on
the
date of the event giving rise to the claim or controversy. Parent and Employee
further
acknowledge and agree that either party must request arbitration of any claim or
controversy
within one (1) year of the date of the event giving rise to the claim or controversy by
giving
written notice of the party’s request for arbitration. Failure to give notice of any
claim or
controversy within one (1) year of the event giving rise to the claim or controversy
shall
constitute waiver of the claim or controversy.

     (b) All claims or controversies subject to arbitration pursuant to Section 9(a) above
shall be submitted to arbitration within six (6) months from the date that a written
notice of
request for arbitration is effective. All claims or controversies shall be resolved by
a panel of
three arbitrators who are licensed to practice law in the State of Georgia and who are
experienced
in the arbitration of labor and employment disputes. These arbitrators shall be
selected in
accordance with the National Rules of the American Arbitration Association for the
Resolution of
Employment Disputes in effect at the time the claim or controversy arises. Either
party may
request that the arbitration proceeding be stenographically recorded by a Certified
Shorthand
Reporter. The arbitrators shall issue a written decision with respect to all claims or
controversies
within thirty (30) days from the date the claims or controversies are submitted to
arbitration. The
parties shall be entitled to be represented by legal counsel at any arbitration
proceedings.

     (c) Parent
and Employee acknowledge and agree that the arbitration provisions in
this Agreement may be specifically enforced by either party, and that submission to
arbitration
proceedings may be compelled by any court of competent jurisdiction. Parent and
Employee
further acknowledge and agree that the decision of the arbitrators may be specifically
enforced by
either party in any court of competent jurisdiction.

     (d)
Notwithstanding the arbitration provisions set forth herein, Employee and Parent acknowledge and agree
that nothing in this Agreement shall be construed to require the
arbitration of any claim or controversy arising under Sections 10 and 11 of this
Agreement nor
shall such provisions prevent Parent from seeking equitable relief from a court of
competent

12

 

jurisdiction for violations of Sections 10 and 11 of this Agreement. These provisions shall
be enforceable by any court of competent jurisdiction and shall not be subject to
arbitration except by mutual written consent of the parties signed after the dispute
arises, any such consent, and the terms and conditions thereof, then becoming binding on
the parties. Employee and Parent further acknowledge and agree that nothing in this
Agreement shall be construed to require arbitration of any claim for workers’ compensation
or unemployment compensation.

     10. Nondisclosure.

     (a) Confidential Information. Employee acknowledges and agrees that because
of
her Employment, she will have access to proprietary information of NOVA and Parent
concerning or relative to the business of NOVA and Parent which is of a special and
unique value
(collectively, “Confidential Information”) which includes, without limitation,
technical material
of NOVA and Parent, sales and marketing information, customer account records, billing
information, training and operations information, materials and memoranda, personnel
records,
pricing and financial information relating to the business, accounts, customers,
prospective
customers, employees and affairs of NOVA and Parent, and any information
marked
“Confidential” by NOVA or Parent. Employee acknowledges and agrees that Confidential
Information is and shall be NOVA’s or Parent’s property, as the case may be, prior to
and after the
Merger. Employee recognizes and acknowledges that this Agreement furthers Parent’s
interest in
connection with entering into the Merger Agreement and the consummation of the
transactions
contemplated thereby. Employee agrees that except as required by Employee’s duties
with
NOVA or, following the Merger, Parent, Employee shall keep NOVA’s or Parent’s
Confidential
Information confidential, and Employee shall not use Confidential Information for any
reason
other than on behalf of NOVA and Parent pursuant to, and in strict compliance with, the
terms of
this Agreement. Employee further agrees that during the Severance Period or the
Exclusion
Period, as applicable, Employee shall continue to keep Confidential Information
confidential, and
Employee shall not use Confidential Information for any reason or in any manner.

     (b)
Notwithstanding the foregoing, Employee shall not be subject to the restrictions set forth in
subsection (a) of this Section 10 with respect to information which:

     (i) becomes generally available to the public other than as a result of
disclosure by Employee or the breach of Employee’s obligations under this
Agreement;

     (ii) becomes available to Employee from a source which is unrelated to her
Employment or the exercise of her duties under this Agreement, provided that such
source lawfully obtained such information and is not bound by a confidentiality
agreement with Parent or NOVA; or

     (iii) is required by law to be disclosed.

     (c) Trade Secrets. Employee acknowledges and agrees that because of her
Employment, she will have access to “trade secrets” (as defined in the Uniform Trade
Secrets
Act, O.C.G.A. § 10-1-760, et seq. (the “Uniform Trade Secrets Act”) of NOVA (‘Trade
Secrets”).
Nothing in this Agreement is intended to alter the applicable law and remedies with
respect to
information meeting the definition of “trade secrets” under the Uniform Trade Secrets
Act, which
law and remedies shall be in addition to the obligations and rights of the parties
hereunder.

     11. Covenants
Not to Solicit or Compete. Employee acknowledges and agrees that,
because of her Employment and the anticipated Merger, she does and will continue to have
access to

13

 

confidential or proprietary information concerning merchants, associate banks and ISOs of Parent
and shall have established relationships with such merchants, associate banks and ISOs as well as
with the vendors, consultants, and suppliers used to service such merchants, associate banks and
ISOs. As an inducement to Parent to enter into, complete and close the Merger and in consideration
for Parent’s agreement to employ Employee with the compensation and benefits described herein,
Employee agrees that from and after the Effective Date, and continuing throughout the Severance
Period or the Exclusion Period, as applicable, Employee shall not, directly or indirectly, either
individually, in partnership, jointly, or in conjunction with, or on behalf of, any person, firm,
partnership, corporation, or unincorporated association or entity of any kind:

     (a) compete with Parent in providing credit card and debit card transaction
processing services within the Territory or otherwise associate with, obtain any
interest in (except
as a shareholder holding less than five percent (5%) interest in a corporation traded
on a national
exchange or over-the-counter), advise, consult, lend money to, guarantee the debts or
obligations
of, or perform services in either a supervisory or managerial capacity or as an
advisor, consultant
or independent contractor for, or otherwise participate in the ownership, management,
or control
of, any person, firm, partnership, corporation, or unincorporated association of any
kind which is
providing credit card and debit card transaction processing services within the
Territory;

     (b) solicit or contact, for the purpose of providing products or services the same as
or
substantially similar to those provided by the Business (or any other business of
Parent in which
Employee was engaged), any person or entity that during the term of Employee’s
Employment
was a merchant, associate bank, ISO or customer (including any actively-sought
prospective
merchant, associate bank, ISO or customer) with whom Employee had material contact or
about
whom Employee learned material information during the last twelve
(12) months of her Employment;

     (c) persuade or attempt to persuade any merchant, associate bank, ISO, customer, or
supplier of Parent to terminate or modify such merchant’s, associate bank’s, ISO’s,
customer’s, or
supplier’s relationship with Parent if Employee had material contact with or learned
material
information about such merchant, associate bank, ISO, customer or supplier during the
last twelve
(12) months of her

Employment; or

     (d) persuade or attempt to persuade any person who was employed by Parent or any
of its subsidiaries as of the date of the termination of Employee’s Employment, to
terminate or
modify her employment relationship, whether or not pursuant to a written agreement,
with Parent
or any of its subsidiaries, as the case may be.

     12. New Developments. Any discovery, invention, process or improvement made or
discovered by Employee during the term of her Employment in connection with or in any way
affecting
or relating to the business of Parent (as then carried on or under active consideration) shall
forthwith be
disclosed to Parent and shall belong to and be the absolute property of Parent; provided,
however, that
this provision does not apply to_an invention for which no equipment, supplies, facility,
trade secret
information of Parent was used and which was developed entirely on Employee’s own time, unless
(a) the
invention relates (i) directly to the Business or (ii) to Parent’s actual or demonstrably
anticipated research
or development; or (b) the invention results from any work performed by Employee for Parent.

     13. Remedy for Breach. Employee acknowledges and agrees that her breach of any of the
covenants contained in Sections 8, 10, 11 and 12 of this Agreement would cause irreparable
injury to
Parent and that remedies at law of Parent for any actual or threatened breach by Employee of
such
covenants would be inadequate and that Parent shall be entitled to specific performance of the
covenants

14

 

in such sections or injunctive relief against activities in violation of such sections, or both, by
temporary or permanent injunction or other appropriate judicial remedy, writ or order, without the
necessity of proving actual damages. This provision with respect to injunctive relief shall not
diminish the right of Parent to claim and recover damages against Employee for any breach of this
Agreement in addition to injunctive relief. Employee acknowledges and agrees that the covenants
contained in Sections 8, 10, 11 and 12 of this Agreement shall be construed as agreements
independent of any other provision of this or any other contract between the parties hereto, and
that the existence of any claim or cause of action by Employee against Parent, whether predicated
upon this or any other contract, shall not constitute a defense to the enforcement by Parent of
said covenants.

     14. Reasonableness. Employee has carefully considered the nature and extent of the
restrictions upon her and the rights and remedies conferred on Parent under this Agreement,
and Employee hereby acknowledges and agrees that:

     (a) the restrictions and covenants contained herein, and the rights and remedies
conferred upon Parent, are necessary to protect the goodwill and other value of the
Business;

     (b) the restrictions placed upon Employee hereunder are narrowly drawn, are fair and
reasonable in time and territory, will not prevent her from earning a livelihood, and
place no
greater restraint upon Employee than is reasonably necessary to secure the Business and
goodwill
of Parent;

     (c)
Parent is relying upon the restrictions and covenants contained herein in continuing to make
available to Employee information concerning the Business; and

     (d) Employee’s Employment places her in a position of confidence and trust with
Parent and its employees, merchants, associate banks, ISOs, customers, vendors and
suppliers.

     15. Invalidity of Any Provision. It is the intention of the parties hereto that the provisions
of this Agreement shall be enforced to the fullest extent permissible under the laws and
public policies of
each state and jurisdiction in which such enforcement is sought, but that the unenforceability
(or the
modification to conform with such laws or public policies) of any provision hereof shall not
render
unenforceable or impair the remainder of this Agreement which shall be deemed amended to
delete or
modify, as necessary, the invalid or unenforceable provisions. The parties further agree to
alter the
balance of this Agreement in order to render the same valid and enforceable. The terms of
the non-competition provisions of this Agreement shall be deemed modified to the extent necessary to
be
enforceable and, specifically, without limiting the foregoing, if the term of the
non-competition is too
long to be enforceable, it shall be modified to encompass the longest term which is
enforceable and, if the
scope of the geographic area of non-competition is too great to be enforceable, it shall be
modified to
encompass the greatest area that is enforceable. The parties further agree to submit any
issues regarding
such modification to a court of competent jurisdiction if they are unable to agree and further
agree that if
said court declines to so amend or modify this Agreement, the parties will submit the issue of
amendment
or modification of the non-competition covenants in this Agreement to binding arbitration in
accordance
with the commercial arbitration rules then in effect of the American Arbitration Association.
Any such
arbitration hearing will be held in Atlanta, Georgia, and this Agreement shall be construed
and enforced
in accordance with the laws of the State of Georgia, including this arbitration provision.

     16. Settlement Payments; Termination of Merger Agreement.

     (a) In consideration for Employee’s agreement to terminate the Prior Agreement
and waive the right to receive cash payments or other benefits under the Prior Agreement
upon

15

 

termination of employment following a change in control by reason of consummation of the Merger,
Parent shall provide on the Effective Date the compensation described in this Section 16 (provided
this Agreement is not terminated prior to the Effective Date), and Employee shall have no other
right to receive payments or other benefits under this Agreement or the Prior Agreement by reason
of the Merger:

     (i) Parent shall pay Employee in cash an amount equal to her annual base salary as of
the date of this Agreement multiplied by three (3) (the “Cash Settlement Payment”). The
Cash Settlement Payment shall be paid in two (2) equal installments, the first of which
shall be made on the Effective Date, the second of which shall be paid on the first
anniversary of the Effective Date; provided, however, that if Employee’s Employment is
terminated, for whatever reason, prior to the first anniversary of the Effective Date,
Parent shall pay Employee an amount equal to her annual base salary as of the date of this
Agreement multiplied by one-half (1/2) in lieu of the second installment of the Cash
Settlement Payment. In the event the second installment of the Cash Settlement Payment is
made on the first anniversary date of the Effective Date and Employee’s employment is
terminated pursuant to a Termination Exclusion prior to the second anniversary of the
Effective Date, then Employee shall reimburse Parent an amount equal to the “Unearned
Payment” (as defined below). The number of days Employee is employed, following the first
anniversary of the Effective Date and prior to the second anniversary of the Effective
Date, shall be referred to as the “Accrued Days” and the ratio of (A) 365 minus the Accrued
Days to (B) 365 shall be referred to as the “Unearned Ratio”. The “Unearned Payment” shall
equal Employee’s annual base salary as of the date of this Agreement multiplied by the
Unearned Ratio.

     (ii) The provisions of Section 7(e) of this Agreement shall be applicable to the
payments provided for in this Section 16. All payments under Section 16 are in addition
to, and not in lieu of, any payment due under this Agreement following termination of
Employee’s employment.

     (iii) At the election of Employee, with respect to up to 75% of the aggregate number
of shares subject to stock option agreements outstanding as of the Effective Date (“Option
Shares”), Employee shall be entitled to receive from Parent in exchange for cancellation
of the stock option agreements (or portion thereof) relating to such Option Shares for
which Employee elects, a cash payment in an amount equal to (1) the Cash Consideration (as
defined in the Merger Agreement) multiplied by the aggregate number of Option Shares
subject to the option agreements (or portion thereof) to be cancelled less (2) the
aggregate exercise price set forth in the stock option agreements (or portion thereof)
being cancelled. Employee shall notify Parent no later than three (3) business days prior
to the Effective Date with respect to the number of Option Shares subject to the stock
option agreements Employee wishes to make the election pursuant to this Section
16(a)(iii). In exchange for such cash payments, Employee agrees to execute a cancellation
agreement with respect to the Option Shares subject to the stock option agreements (or
portion thereof) being cancelled, which cancellation agreement stall be in a form
reasonably acceptable to Parent. The remaining Option Shares subject to stock option
agreements (or portions thereof) not being cancelled hereunder shall be converted into the
right to acquire shares of Parent’s common stock in accordance with Section 3.06 of the
Merger Agreement and in the event Employee’s Employment is terminated for whatever reason
(other than termination for “Cause” pursuant to Section 6(b)) within two (2) years after
the Effective Date, Employee shall have the continuing right to exercise such remaining
Option Shares at any time prior to the date which is one (1) year after the

16

 

Termination Date (without regard to any provisions thereof requiring earlier
expiration upon termination of employment).

     (b) Employee acknowledges and agrees that upon the Effective Date, the Prior Agreement
is terminated, cancelled and of no further force and effect; provided, however, that this
Agreement shall terminate upon any termination of the Merger Agreement (and, in case of any
such termination hereof, this Agreement shall be deemed to be void ab initio and the Prior
Agreement shall be deemed to have remained in full force and effect); provided further, that
the termination of this Agreement shall only become effective if the Merger Agreement
terminates prior to the Effective Date. Until the Effective Date, the Prior Agreement
remains in full force and effect.

     17. Applicable
Law. This Agreement shall be construed and enforced in accordance with the laws of the State of Georgia.

     18. Waiver of Breach. The waiver by Parent of a breach of any provision of this Agreement
by Employee shall not operate or be construed as a waiver of any subsequent breach by
Employee.

     19. Successors and Assigns. This Agreement shall inure to the benefit of Parent, its
subsidiaries and affiliates, and their respective successors and assigns. This Agreement is
not assignable
by Employee but shall be freely assignable by Parent.

     20. Notices. All notices, demands and other communications hereunder shall be in writing
and shall be delivered in person or deposited in the United States mail, certified or
registered, with return receipt requested, as follows:

	 	 	 	 	 
	 

	 	(i)	 	If to Employee, to:
	 
	 	 	 	 
	 
	 	 	 	Pamela A. Joseph

580 Owens Farm Road
	 
	 	 	 	Alpharetta, Georgia 30004
	 
	 	 	 	 
	 

	 	(ii)
	 	If to NOVA Corp or NOVA, to:
	 
	 	 	 	 
	 

	 	 	 	NOVA Corporation
	 

	 	 	 	One Concourse Parkway
	 

	 	 	 	Suite 300
	 
	 	 	 	Atlanta, Georgia 30328
	 
	 	 	 	Attention: Edward Grzedzinski
	 
	 	 	 	                 Chief Executive Officer
	 
	 	 	 	 
	 

	 	(iii)
	 	If to Parent, to:
	 
	 	 	 	 
	 

	 	 	 	U.S. Bancorp
	 

	 	 	 	U.S. Bank Place
	 

	 	 	 	601 Second Avenue South
	 

	 	 	 	Minneapolis, Minnesota 55402
	 

	 	 	 	Attention: General Counsel

17

 

     21. Entire Agreement. This Agreement contains the entire agreement of the parties, and as
of the Effective Date, supersedes all other prior negotiations, commitments,
agreements and
understandings (written or oral) between the parties with respect to the subject matter
hereof, including
but not limited to the Prior Agreement, which is hereby terminated as of the Effective Date.
It may not be
changed orally but only by an agreement in writing signed by the party against whom
enforcement of any
waiver, change, modification, extension, or discharge is sought.

     22. Indemnification; Legal Expenses.

     (a) At all times during and after Employee’s Employment and the effectiveness of
this Agreement, Parent shall indemnify Employee (as a director, officer, employee and
otherwise)
to the fullest extent permitted by law and shall at all times maintain appropriate
provisions in its
Articles of Incorporation and Bylaws which mandate that Parent provide such
indemnification.

     (b) Parent’s obligation to make the payments provided for in this Agreement and
otherwise to perform its obligations hereunder shall not be affected by any set-off,
counter-claim,
recoupment, defense or other claim, right or action which Parent may have against
Employee or
others. In no event shall Employee be obligated to seek other employment or take any
other
action by way of mitigation of the amounts payable to Employee under any of the
provisions of
this Agreement. Parent agrees to pay, to the full extent permitted by law, all legal
fees and
expenses which Employee may reasonably incur as a result of any legitimate,
non-frivolous
contest (regardless of the outcome thereof) by Parent or others of the validity or
enforceability of,
or liability under, any provision of this Agreement or any guarantee of performance
thereof
(including as a result of any legitimate, non-frivolous contest by Employee about the
amount of
any payment pursuant to Section 7 or Section 16 of this Agreement), plus in each case
interest at
the applicable federal rate provided for in Section 7872(f)(2) of the Code. Parent
will not be
bound to pay any legal fees or expenses arising out of baseless, meritless or frivolous
contests
brought hereunder by Employee or others. A contest will be deemed baseless, meritless
and/or
frivolous if a court or other arbiter assesses penalties or sanctions for bringing said
contest, or a
court or other arbiter dismisses said contest for failure to state a colorable claim.

     (c)
As a condition to receiving payments under Section 7(a), Employee must execute a release in the
form attached hereto as Exhibit B.

     23. Survival. The provisions of Sections 7, 8, 9, 10,11, 12, 13, 14,15, 16, 17, 20, 22, 23 and
24 shall survive termination of Employee’s Employment and termination of this Agreement.

     24. Withholding. All payments required to be made by Parent under this Agreement will be
subject to the withholding of such amounts, if any, relating to federal, state and local taxes
as may be
required by law. Nothing in this Section shall be construed to reduce Employee’s right to
payments
described in Section 7(e).

18

 

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement under seal as of the date
first above shown.

	 	 	 	 	 
	 	“EMPLOYEE”:

 	 
	 	By:  	/s/ Pamela A. Joseph
 	 
	 	 	Pamela A. Joseph 	 
	 	 	 	 
	 	“NOVA”: 	 
	 
	 	NOVA
Corporation
 	 
	 	By:  	/s/ Edward Grzedzinski
 	 
	 	 	Edward Grzedzinski 	 
	 	 	Chairman, CEO and President 	 
	 
	 	NOVA
Information Systems, Inc.
 	 
	 	By:  	/s/ Edward Grzedzinski 	 
	 	 	Edward Grzedzinski 	 
	 	 	Chairman, CEO and President 	 
	 
	 	PARENT:	 
	 
	 	U.S. Bancorp	 
	 
	 	By:  	/s/ Lee R. Mitau 	 
	 	 	Name:  	Lee R. Mitau 	 
	 	 	Title:  	Executive Vice
President and General Counsel	 

19

 

	 	 	 	 	 

EXHIBIT A 

Annual Incentive Compensation Schedule

	*	 	Payment of annual incentive compensation (the “Bonus Payment”) to be based upon relative
achievement of Targeted Net Income (as defined).
	 
	*	 	Net Income is Net Income determined in accordance with GAAP as determined from the annual
audited Financial Statements, as adjusted to exclude non-operating gains and losses.
	 
	*	 	Targeted Net Income will be established annually by the Chief Executive Officer of NOVA, as
approved by the Chief Executive Officer of Parent.
	 
	*	 	The Bonus Payment will be calculated by following the steps outlined below:

	 	(1)	 	Determining the percentage equivalent to a fraction, the
numerator of which is Net Income and the denominator of which is Targeted Net Income (such
percentage being referred to as the “Actual/Targeted Ratio”).
	 
	 	(2)	 	Values will be calculated based on (A) through (E):

	 	(A)	 	For each full percentage point (up to 84%) by which the
Actual/Targeted Ratio
equals or exceeds 80%, a value of 1% will be awarded.
	 
	 	(B)	 	For each full percentage point (up to 89%) by which the
Actual/Targeted Ratio
exceeds 84%, a value of 2% will be awarded.
	 
	 	(C)	 	For each full percentage point (up to 94%) by which the
Actual/Targeted Ratio
exceeds 89%, a value of 3% will be awarded.
	 
	 	(D)	 	For each full percentage point (up to 99%) by which the
Actual/Targeted Ratio
exceeds 94%, a value of 4% will be awarded.
	 
	 	(E)	 	For each full percentage point (up to 150%) by which
the Actual/Targeted Ratio
exceeds 100%, a value of 1% will be awarded, (note: for this purpose, no
value
will be awarded for equaling 100%).

	 	(3)	 	The sum of the values calculated in (A) through (E) (the “Bonus Percentage”)
shall be
multiplied by Employee’s then current Base Salary to yield the Bonus Payment.

     Examples:

	 	n	 	If the Actual/Targeted Ratio is 92%, the Bonus Percentage would
be 29%. This is calculated by adding:

	 	 	 	 	 	 	 
	 

	 	 	 	5% (1% for 80-84% of Actual/Targeted Ratio)	 	 
	 

	 	+
	 	15% (2% for 85-89% of Actual/Targeted Ratio)	 	 
	 

	 	+
	 	9%
(3% for 90-92% of Actual/Targeted Ratio)

29%	 	 

20

 

	 	 	 	Employee’s Bonus Payment would be equal to Employee’s then-current Base Salary
multiplied by 29%.
	 
	 	n	 	If the Actual/Targeted Ratio is 112%, the Bonus Percentage
would be 62%.
This is calculated by adding:

	 	 	 	 	 	 	 
	 

	 	 	 	5% (1% for 80-84% of Actual/Targeted Ratio)	 	 
	 

	 	+
	 	10% (2% for 85-89% of Actual/Targeted Ratio)	 	 
	 

	 	+
	 	15% (3% for 90-94% of Actual/Targeted Ratio)	 	 
	 

	 	+
	 	20% (4% for 95-99% of Actual/Targeted Ratio)	 	 
	 

	 	+
	 	0% (0% for 100% of Actual/Targeted Ratio)	 	 
	 
	 	+	 	12% (1% for 101-112% of Actual/Targeted Ratio)	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	62%	 	 

	 	 	 	Employee’s Bonus Payment would be equal to Employee’s then-current Base Salary
multiplied by 62%.

	*	 	The foregoing notwithstanding, in order for any bonus to be payable with respect to any
calendar
year, the “Revenue” (as defined below) for such calendar year must equal or exceed 105% of
the
Revenue for the immediately preceding calendar year. “Revenue” means revenue of NOVA
determined in accordance with GAAP as determined from the annual audited Financial
Statements, as adjusted to exclude non-operating items.
	 
	*	 	Notwithstanding anything to the contrary in this Agreement, in order to receive Bonus
Compensation for any calendar year, Employee must be employed by NOVA on the last day of
such calendar year.

21

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