Document:

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                                                                   EXHIBIT 10.50

                              EDWARD GRZEDZINSKI
                   AMENDED AND RESTATED EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (this "Agreement") is made effective this 22nd
day of February, 2001 (the "Effective Date") by and between Edward Grzedzinski
(hereinafter referred to as "Employee") and NOVA Corporation, a Georgia
corporation ("NOVA").

                             W I T N E S S E T H :
                             -------------------

     WHEREAS, NOVA, through its direct and indirect subsidiaries, is 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;

     WHEREAS, Employee currently serves as Chairman of the Board of Directors,
President and Chief Executive Officer of NOVA pursuant to an Employment
Agreement between Employee and NOVA dated June 16, 1999 (the "1999 Agreement");

     WHEREAS, NOVA, or its assigns, will continue to engage in the Business
throughout the United States (the "Territory");

     WHEREAS, NOVA and Employee desire to terminate the 1999 Agreement, which
termination shall be contemporaneous with the effectiveness of this Agreement;

     WHEREAS, NOVA and Employee mutually desire that Employee continue to work
for NOVA, and Employee desires to continue said employment, all as contemplated
herein;

     NOW, THEREFORE, for and in consideration of his continued employment by
NOVA pursuant to this Agreement, the NOVA Confidential Information and Trade
Secrets (as hereafter defined) furnished to Employee by NOVA in order that he
may continue to perform his 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.  NOVA hereby employs Employee for a period
beginning as of the Effective Date and ending three (3) years thereafter (the
"Initial Term"), unless Employee's employment by NOVA is sooner terminated or
automatically renewed pursuant to the terms of this Agreement (Employee's
employment by NOVA 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 his reasonable best efforts to his
     duties under this Agreement and to perform such duties diligently and
     efficiently and in accordance with the directions of NOVA's Board of
     Directors.

         (b)  During the term of Employee's Employment, Employee shall serve as
     Chairman of the Board of Directors, and be employed as President and Chief
     Executive Officer of NOVA.  Employee shall be responsible primarily for
     such duties as are assigned to him from time to time by NOVA's Board of
     Directors, which in any event shall be such duties as are customary for an
     officer in those positions.
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         (c)  Employee shall devote substantially all of his business time,
     attention, and energies to NOVA's Business, shall act at all times in the
     best interests of NOVA, and shall not during the term of his 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 he may have to interfere with the performance of his
     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 his duties hereunder.
     Further, Employee may engage in passive investments so long as the same are
     passive, are not inconsistent with Employee's duties hereunder and do not
     involve the development, ownership, management or provision of credit and
     debit card processing and settlement services, including the related
     products and services of automatic teller machines and check guarantee
     services.  Employee's rights to make certain investments hereunder are in
     addition to and not in degradation of investments of less than 5% in a
     corporation as described in Section 12(a).

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

         (a)  Employee's annual salary during the term of his Employment shall
     be Five Hundred Forty Thousand and No/100 Dollars ($540,000) ("Base
     Salary"), with such increases (each, a "Merit Increase") as may from time
     to time be deemed appropriate by the Compensation Committee of NOVA's Board
     of Directors (the "Compensation Committee"); provided, however, that so
     long as this Agreement remains in effect, Employee's Base Salary shall be
     reviewed annually by the Compensation Committee at the beginning of each
     fiscal year. The Base Salary shall be paid by NOVA monthly in arrears or in
     accordance with NOVA'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 pursuant to the schedule set forth as
     Exhibit A ("Bonus Compensation").  Upon written request and subject to the
     ---------
     terms and conditions set forth in this Section 2(b), Employee shall be
     entitled to elect to receive all or part of any Bonus Compensation payable
     to Employee in shares of NOVA common stock, par value $.01 per share ("NOVA
     Stock"), valued on the basis of the closing price of NOVA Stock on the New
     York Stock Exchange on the date of Employee's request (or if such date is
     not a trading day, on the immediately preceding trading day), and any such
     grant shall be granted as restricted stock under the 1996 Plan (or any
     successor plan) without restriction; provided, however, that NOVA shall not
                                          --------  -------
     be obligated to comply with Employee's request if (i) NOVA does not have
     shares of NOVA Stock available for issuance or (ii) the issuance of NOVA
     Stock to Employee would be impracticable or impede, in any respect, NOVA's
     ongoing business operations.

         (c)  Employee shall be eligible annually to receive restricted stock
     awards of shares of NOVA Common Stock or stock options under the NOVA
     Corporation 1996 Employees Stock Incentive Plan (the "1996 Plan ") or any
     successor plan.  The amount of shares of restricted stock or options to be
     granted each year shall be determined by the Compensation Committee.

         (d)  NOVA 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 8 hereof, NOVA shall provide to
Employee the following benefits:

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         (a)  Medical Insurance.  Employee and his 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 NOVA for the benefit
     of its employees and/or executive officers, 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
     NOVA for the benefit of its employees and/or executive officers.

         (c)  Disability Insurance.  Employee shall be entitled to participate
              --------------------
     in any disability insurance plans established, offered, or adopted from
     time to time by NOVA for the benefit of its employees and/or executive
     officers.

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

         (e)  Stock Option Plans. Employee shall be eligible for participation
              ------------------
     in any stock option plan or restricted stock plan adopted by NOVA'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 NOVA
     (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 terms at
     least as favorable as the terms of any benefits that are afforded to other
     executive officers of NOVA during the term of this Agreement.

         (g)  Terms and Provisions of Plans.  NOVA agrees that it shall not take
              -----------------------------
     action (during the term of this Agreement or the "Election Period," as
     defined in Section 8(a)) to modify the terms and provisions of any such
     plan or arrangement so as to exclude only Employee and/or his dependents,
     either by excluding Employee and/or his dependents explicitly by name or by
     modifying provisions generally applicable to all employees and dependents
     so that only Employee and/or his dependents would ever possibly be
     affected.

         (h)  Vesting of Rights Upon Change In Control.  Upon the occurrence of
              ----------------------------------------
     a "Change in Control" (as defined in Section 8(h)) during the term of this
     Agreement, and regardless of whether Employee terminates this Agreement
     following such Change in Control, and notwithstanding any provision to the
     contrary in any other agreement or document (including NOVA's applicable
     plan documents), all stock options, restricted stock, and other similar
     rights that have been granted to Employee and are not vested on the date of
     such Change in Control, as well as any balance under the NOVA Corporation
     Deferred Compensation Plan (the "Deferred Compensation Plan") that is not
     vested on the date of occurrence of such an event, shall become vested and
     exercisable immediately (collectively, the "Vested Rights") and as provided
     under the applicable plan or agreement, Employee shall have the continuing
     right to exercise any or all of the Vested Rights until such rights expire
     in accordance with their original terms (without regard to any provision
     thereof requiring earlier expiration upon termination of employment).

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

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

     6.  Service on the Board of Directors.  During the term of Employee's
Employment, Employee shall serve as Chairman of NOVA's Board of Directors.

     7.  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 NOVA for "Cause."  For the purposes of this
     Agreement, the term "Cause," when used with respect to termination by NOVA
     of Employee's Employment hereunder, shall mean termination as a result of:
     (i) Employee's material violation of the covenants set forth in Section 11
     or 12, (ii) Employee's willful, intentional, or grossly negligent failure
     to perform his duties under this Agreement diligently and in accordance
     with the directions of NOVA; (iii) Employee's willful, intentional, or
     grossly negligent failure to comply with the good faith decisions or
     policies of NOVA; or (iv) final conviction of Employee of a felony
     materially adversely affecting NOVA; provided, however, that in the event
                                          --------  -------
     NOVA desires to terminate Employee's Employment pursuant to subsections
     (i), (ii), or (iii) of this Section 7(b), NOVA 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 breach or deficiency (the "Cure Period"); provided, however, that
                                                         --------  -------
     with respect only to a breach that it is not possible to cure within such
     thirty (30) day period, so long as Employee is diligently using his best
     efforts to cure such breach or deficiency within such period and
     thereafter, the Cure Period shall be automatically extended for an
     additional period of time (not to exceed sixty (60) additional days) to
     enable Employee to cure such breach or deficiency, provided, further, that
                                                        --------  -------
     Employee continues to diligently use his best efforts to cure such breach
     or deficiency.  If Employee does not cure the perceived breach or
     deficiency within the Cure Period, NOVA may discharge Employee immediately
     upon written notice to Employee.  If NOVA desires to terminate Employee's
     Employment pursuant to subsection (iv) of this Section 7(b), NOVA 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 ninety (90)
     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 NOVA could, with reasonable accommodation and without undue
     hardship, continue to employ Employee in some other capacity after such one
     hundred eighty (180) day period, NOVA 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 NOVA (the "Notice Period"), in the event (i) there is a
     material diminution in Employee's duties and responsibilities, or such
     duties and responsibilities are otherwise diminished such that they no
     longer reflect duties and responsibilities customary for a Chairman,
     President and Chief Executive Officer of a publicly-traded company;  (ii)
     Employee is required to relocate to an office that is more than

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     thirty-five (35) miles from Employee's current 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, a materially
     adverse change in the terms of Exhibit A attached hereto 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 materially
     breaches this Agreement, (each of (i), (ii), (iii) and (iv) being referred
     to as a "Responsibilities Breach"), and NOVA 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 NOVA 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) additional days) to enable NOVA to cure such breaches, provided,
                                                                       --------
     further, that NOVA continues to diligently use its best efforts to cure
     -------
     such breaches. Notwithstanding anything to the contrary in this Section
     7(e), the Notice Period for failure to pay compensation shall be five (5)
     days.

         (f)  This Agreement shall automatically renew for successive three (3)
     year terms (each a "Renewal Term") unless either party hereto gives the
     other party hereto written notice of its or his intent not to renew this
     Agreement no later than ninety (90) 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.

         (g)  NOVA may terminate this Agreement at any time, without cause, upon
     ninety (90) days prior written notice to Employee.

         (h)  Employee may terminate this Agreement at any time, without cause,
     upon ninety (90) days prior written notice to NOVA.

         (i)  Other than as specifically provided in and in strict compliance
     with this Section 7, this Agreement and/or Employee's Employment may not be
     terminated.

     8.  Termination Payments.

         (a)  Upon (1) the termination of Employee's Employment by Employer
     pursuant to Section 7(g) or (2) the termination or expiration of this
     Agreement, for whatever reason, provided that in the case of this
                                     --------
     subsection (2), the earlier of (x) such termination or expiration or (y)
     notice of such termination or non-renewal occurs within three years after a
     Change in Control (the effective date of such termination or expiration
     being referred to as the "Termination Date"), Employee shall receive the
     payments and benefits set forth below.

              (i)   NOVA shall pay Employee accrued but unpaid Base Salary
          through the Termination Date, Bonus Compensation due and owing to
          Employee (as further set forth in Section 8(d)) and any other benefits
          required to be provided to Employee and his dependents under contract
          and applicable law.

              (ii)  NOVA shall pay Employee in cash an amount equal to his
          "Annual Compensation" (as defined in Section 8(h)(ii)) multiplied by
          three (3), which amount will be paid in one lump sum within fifteen
          (15) days of the Termination Date.

              (iii) All stock options, restricted stock, and other similar
          rights, including any Deferred Compensation Plan balance that is not
          vested on the Termination Date, that have been granted to Employee
          shall become vested and exercisable immediately, and as provided under
          the applicable plan or agreement, Employee shall have the continuing
          right to exercise such rights

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          until such rights expire in accordance with their original terms
          (without regard to any provision thereof requiring earlier expiration
          upon termination of employment).

              (iv)  Until the earlier to occur of: (x) the date which is three
          (3) years after the Termination Date, or (y) Employee's accepting
          employment with another employer or otherwise obtaining coverage (the
          "Election Period"), NOVA shall use commercially reasonable efforts to
          provide to Employee and his dependents the coverage for the benefits
          described in Sections 3(a), (b) and (c).

              (v)   To the extent required, NOVA shall pay to Employee the
          "Gross-Up Payment" as set forth in Section 8(g).

         (b)  Upon termination of Employee's Employment or the termination or
     expiration of this Agreement, which termination or expiration occurs: (1)
     as a result of Employee terminating this Agreement pursuant to Section
     7(e), (2) this Agreement being terminated pursuant to Section 7(c) or 7(d),
     or (3) this Agreement not being renewed by NOVA, and which termination or
                                                      ---
     expiration is not covered by Section 8(a) hereof (the effective date of
     such termination or expiration being referred to herein as the "Termination
     Date"), Employee shall receive the payments and benefits set forth below.

              (i)   NOVA shall pay Employee accrued but unpaid Base Salary
          through the Termination Date, Bonus Compensation due and owing to
          Employee (as further set forth in Section 8(e)) and any other benefits
          required to be provided to Employee and his dependents under contract
          and applicable law.

              (ii)  NOVA shall pay Employee in cash an amount equal to his
          Annual Compensation multiplied by three (3), which amount will be paid
          in twenty-four (24) equal monthly installments beginning on the first
          day of the calendar month following the calendar month in which the
          Termination Date occurs.

              (iii) All stock options, restricted stock, and other similar
          rights, including any Deferred Compensation Plan balance that is not
          vested on the Termination Date, that have been granted to Employee
          shall become vested and exercisable immediately, and as provided under
          the applicable plan or agreement, Employee shall have the continuing
          right to exercise such rights until such rights expire in accordance
          with their original terms (without regard to any provision thereof
          requiring earlier expiration upon termination of employment).

              (iv)  For the duration of the Election Period, NOVA shall use
          commercially reasonable efforts to provide to Employee and his
          dependents the coverage for the benefits described in Sections 3(a),
          (b) and (c).

          (c) Upon termination of Employee's Employment or the termination or
     expiration of this Agreement, which termination or expiration occurs: (1)
     as a result of NOVA terminating this Agreement pursuant to Section 7(b),
     (2) as a result of this Agreement not being renewed by Employee, or (3) as
     a result of Employee terminating this Agreement pursuant to Section 7(h),
     and which termination or expiration is not covered by Sections 8(a) or
     ---
     8(b)(the effective date of such termination or expiration being referred to
     herein as the "Termination Date"), Employee shall receive the payments and
     benefits set forth below.

              (i)   NOVA shall pay Employee accrued but unpaid Base Salary
          through the Termination Date, Bonus Compensation due and owing to
          Employee (as further set forth in Section 8(d))

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          and any other benefits required to be provided to Employee and his
          dependents under contract and applicable law.

              (ii)  NOVA shall pay Employee in cash an amount equal to his
          "Termination Base Salary" (as defined herein) in twelve (12) equal
          monthly installments beginning on the first day of the calendar month
          following the calendar month in which the Termination Date occurs.
          "Termination Base Salary" shall be the greater of the Employee's Base
          Salary in effect on the Termination Date or the greatest Base Salary
          in effect during the calendar year immediately prior to the calendar
          year in which the Termination Date occurs.

              (iii) To the extent that Employee and/or any of his dependents is
          eligible to, and timely elects to, receive continuation coverage under
          any group health plan providing medical, dental, vision, prescription
          drug, wellness or other health care or medical coverage which is
          subject to the provisions of part 6 of Title I of ERISA ("COBRA"),
          NOVA shall timely pay any premiums required for such coverage.  This
          payment of premiums by NOVA is not intended to alter in any way the
          provisions of any group health plan of NOVA, and all time limits,
          effects of subsequent coverage and all other relevant provisions of
          any such plan remain unchanged and shall control Employee's (and his
          dependents') entitlement to coverage or benefits under such plan.

          (d) For the purposes of payments to be made under this Section 8:

              (i)   Any accrued but unpaid Base Salary shall be paid to Employee
          within five (5) business days of the Termination Date.

              (ii)  For purposes of calculating Bonus Compensation due and owing
          to Employee:

                    (A)  Regardless of the reason for termination or expiration
               of this Agreement, in the event that Bonus Compensation for the
               calendar year preceding the calendar year in which the
                             ---------
               Termination Date occurs has not been paid by the Termination
               Date, such Bonus Compensation shall be paid to Employee
               concurrently with NOVA's payment of Bonus Compensation generally
               for such calendar year.

                    (B)  In the case of a termination or expiration of this
               Agreement governed by Sections 8(a) or 8(b) hereof, Employee
               shall receive an amount of Bonus Compensation for the calendar
               year in which the Termination Date occurs equal to (x) the amount
               of Bonus Compensation which Employee would have been entitled to
               receive had termination or expiration not occurred in such
                                                     ---
               calendar year multiplied by (y) a fraction, the numerator of
               which is the number of days beginning on January 1/st/ of the
               calendar year in which the Termination Date occurs and ending on
               the Termination Date, and the denominator of which is 365.  This
               payment shall be paid to Employee concurrently with NOVA's
               payment of Bonus Compensation generally for such calendar year.

                    (C)  In the case of a termination or expiration of this
               Agreement governed by Section 8(c) hereof, Employee shall not
               receive any Bonus Compensation for the calendar year in which the
               Termination Date occurs.

              (iii) For purposes of calculating the amount of payments made
          using the Annual Compensation formula, NOVA shall initially compute
          the Annual Compensation under Section 8(h)(ii)(B) using the Prior
          Bonus Amount. However, in the event the Current Bonus Amount, when
          awarded, exceeds the Prior Bonus Amount, then NOVA will pay the
          difference

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          to Employee, either in equal amounts over the remainder of the term
          over which such payments are to be made, or in one lump sum, as the
          case may be.

          (e) Following the termination or expiration of this Agreement,
     Employee shall be bound by the covenants not to solicit or compete set
     forth in Section 12 hereof as set forth below.

              (i)   In the event of a termination or expiration of this
          Agreement which is governed by Sections 8(a) or 8(b) hereof, Employee
          shall comply with the covenants not to solicit or compete set forth in
          Section 12 hereof for a period of two (2) years immediately following
          the Termination Date.

              (ii)  In the event of a termination or expiration of this
          Agreement which is governed by Section 8(c) hereof, Employee shall
          comply with the covenants not to solicit or compete set forth in
          Section 12 hereof for a period of one (1) year immediately following
          the Termination Date; provided, however, that if within ninety (90)
                                --------  -------
          days after the Termination Date, NOVA provides Employee with written
          notice of such election (the "Extension Notice"), Employee shall
          comply with the covenants not to solicit or compete set forth in
          Section 12 below for a period of two (2) years immediately following
          the Termination Date. In the event that NOVA provides Employee with
          the Extension Notice in the time provided, and in addition to the
          payment to be made pursuant to Section 8(c)(ii) hereof, NOVA shall pay
          Employee in cash an amount equal to his Annual Compensation, which
          shall be paid in twelve (12) equal monthly installments beginning on
          the first day of the calendar month following the calendar month of
          the final payment to be made pursuant to Section 8(c)(ii), above.

          (f) 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.

          (g) Gross-Up Payment.
              ----------------

              (i)   Anything in this Agreement to the contrary notwithstanding,
     in the event it shall be determined that any payment or distribution by or
     on behalf of NOVA to or for the benefit of Employee as a result of a
     "Change in Control" or as otherwise payable under Sections 3(h) or 8(a)
     (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 8(g) (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.

              (ii)  Subject to the provisions of Section 8(g)(iii), all
          determinations required to be made under this Section 8, 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 NOVA (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

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<PAGE>

          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 NOVA. Within 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 8, shall provide to
          NOVA 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 8, shall be paid by NOVA to Employee within fifteen 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 NOVA 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 NOVA 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 8(g)(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 NOVA to or for the benefit of Employee. In
          determining the reasonableness of Tax Firm's determinations hereunder,
          and the effect thereof, NOVA 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 NOVA in writing of any claims by the
          Internal Revenue Service that, if successful, would require the
          payment by NOVA of the Gross-Up Payment. Such notification shall be
          given as soon as practicable, but no later than 30 calendar days after
          Employee actually receives notice in writing of such claim, and shall
          apprise NOVA 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 NOVA 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 NOVA 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
          he gives such notice to NOVA (or such shorter period ending on the
          date that any payment of taxes with respect to such claim is due).  If
          NOVA 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 NOVA any information reasonably requested by NOVA
                         relating to such claim;

                    (B)  take such action in connection with contesting such
                         claim as NOVA 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 NOVA and reasonably acceptable to
                         Employee;

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

                                       9
<PAGE>

                    (D)  if NOVA elects not to assume and control the defense of
                         such claim, permit NOVA to participate in any
                         proceedings relating to such claim; provided, however,
                         that NOVA 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 8, NOVA 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
                         NOVA shall determine; provided, however, that if NOVA
                                               --------  -------
                         directs Employee to pay such claim and sue for a
                         refund, NOVA 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, NOVA'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 NOVA pursuant to this Section 8(g), Employee becomes entitled
               to receive any refund with respect to such claim, Employee shall
               (subject to NOVA's complying with the requirements of Section
               8(g)(iii)) promptly pay to NOVA 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 NOVA pursuant to Section 8(g)(iii), a
               determination is made that Employee is not entitled to a refund
               with respect to such claim and NOVA does not notify Employee in
               writing of its intent to contest such denial of refund prior to
               the expiration of 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.

               (h)  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 NOVA) 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

                                       10
<PAGE>

                              this purpose, any employee benefit plan of NOVA or
                              its subsidiaries which acquires beneficial
                              ownership of voting securities of NOVA) 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
                              NOVA Stock or the combined voting power of NOVA's
                              then outstanding voting securities entitled to
                              vote generally in the election of directors; or

                         (B)  The consummation by NOVA of a reorganization,
                              merger, consolidation, in each case, with respect
                              to which the shares of NOVA 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
                              NOVA or the sale of all or substantially all of
                              the assets of NOVA; 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 NOVA.

                   (ii)  "Annual Compensation" means the sum of the following
                         amounts:

                         (A)  the greater of Employee's Base Salary in effect on
                              the Termination Date, or the greatest Base Salary
                              in effect during the calendar year immediately
                              prior to the calendar year in which the
                              Termination Date occurs; and

                         (B)  the greater of the Bonus Compensation which
                              Employee would have received for the calendar year
                              in which the Termination Date occurs had
                              Employee's Employment not been terminated (the
                              "Current Bonus Amount"), or such Bonus
                              Compensation for the calendar year immediately
                              prior to the calendar year in which the
                              Termination Date occurs (the "Prior  Bonus
                              Amount"); provided, however, in no event shall the
                              Bonus Compensation be less than $420,000 for
                              purposes of calculating Employee's Annual
                              Compensation.  For purposes of calculating
                              Employee's Annual Compensation only, Employee
                              shall be deemed to have met all conditions,
                              including employment conditions, necessary for the
                              receipt of the Current Bonus Amount.

                   (iii) "Incumbent Board" shall mean the members of the Board
                         of Directors of NOVA as of the date hereof and any
                         person becoming a member of the Board of Directors of
                         NOVA hereafter whose election, or nomination for
                         election by NOVA'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 NOVA, as such terms are used in Rule 14a-
                         11 of Regulation 14A promulgated under the Exchange
                         Act).

                                       11
<PAGE>

     9.  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
him during the term of his Employment concerning or relative to the Business,
including, without limitation, all customer data, billing information, service
data, and other technical material of NOVA is and shall be NOVA's property.
Employee agrees to deliver all such materials to NOVA thirty (30) days after
Employee receives a written request therefor from NOVA.  Employee further agrees
not to use such materials for any reason after said termination.

     10. Arbitration.

         (a)   NOVA and Employee acknowledge and agree (except as specifically
     set forth in Section 10(d)) that 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.   NOVA
     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 10(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)   NOVA 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.  NOVA 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 NOVA acknowledge and agree that nothing in this Agreement
     shall be construed to require the arbitration of any claim or controversy
     arising under Sections 11 and 12 of this Agreement, nor shall such
     provisions prevent NOVA from seeking equitable relief from a court of
     competent jurisdiction for violations of Sections 11 and 12 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 NOVA further acknowledge and agree that nothing in
     this Agreement shall be construed to require arbitration of any claim for
     workers' compensation or unemployment compensation.

     11. Nondisclosure.

                                       12
<PAGE>

         (a)   NOVA Confidential Information.  Employee acknowledges and agrees
               -----------------------------
     that because of his Employment, he will have access to proprietary
     information of NOVA concerning or relative to the Business (collectively,
     "NOVA Confidential Information") which includes, without limitation,
     technical material of  NOVA, 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 any information marked
     "Confidential" by  NOVA. Employee acknowledges and agrees that NOVA
     Confidential Information is and shall be NOVA's property.  Employee agrees
     that during the term of his Employment, Employee shall keep NOVA
     Confidential Information confidential, and Employee shall not use NOVA
     Confidential Information for any reason other than on behalf of NOVA
     pursuant to, and in strict compliance with, the terms of this Agreement.
     Provided that NOVA complies with its obligations set forth in Section 8,
     Employee further agrees that, for a period beginning on the Termination
     Date and ending two (2) years thereafter, Employee shall continue to keep
     NOVA Confidential Information confidential, and Employee shall not use NOVA
     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 11 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 his Employment or the exercise of his duties under this
          Agreement, provided that such source lawfully obtained such
          information and is not bound by a confidentiality agreement with NOVA;
          or

               (iii) is required by law to be disclosed.

          (c)  Trade Secrets.  Employee acknowledges and agrees that because of
               -------------
     his Employment, he will have access to "trade secrets" (as defined in the
     Uniform Trade Secrets Act, O.C.G.A. (S) 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.

     12. Covenants Not to Solicit or Compete.  Employee acknowledges and agrees
that, because of his Employment, he does and will continue to have access to
confidential or proprietary information concerning merchants, associate banks
and ISOs of NOVA 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.  Employee agrees that
during the term of his Employment and continuing thereafter for the period
specified in Section 8(e) (provided NOVA complies with its obligations set forth
in Section 8 hereof), except as permitted or contemplated by this Agreement,
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)   obtain any interest (except as a shareholder holding less than
     five percent (5%) interest in a corporation) in any person, firm,
     partnership, corporation, or unincorporated association of any kind which
     provides credit card or debit card transaction processing services within
     the Territory;

         (b)   provide managerial, executive, advisory, consulting, sales or
     marketing services relating to credit card or debit card transaction
     processing to any person, firm, partnership, corporation, or

                                       13
<PAGE>

     unincorporated association of any kind which provides credit card or debit
     card transaction processing services within the Territory;

         (c)   solicit or contact, for the purpose of providing products or
     services competing with those provided by NOVA in connection with the
     Business, 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) of
     NOVA and with whom Employee had material contact or about whom Employee
     learned material confidential information during the last twelve (12)
     months of his Employment;

         (d)   persuade or attempt to persuade any merchant, associate bank,
     ISO, customer, or supplier of NOVA to terminate or modify such merchant's,
     associate bank's, ISO's, customer's, or supplier's relationship with NOVA
     if Employee had material contact with or learned material confidential
     information about such merchant, associate bank, ISO, customer or supplier
     during the last twelve (12) months of his Employment; or

         (e)   persuade or attempt to persuade any person who (aa) was employed
     by NOVA as of the date of the termination of Employee's Employment and (bb)
     is in a sales or management position with NOVA at the time of such contact,
     to terminate or modify his employment relationship, whether or not pursuant
     to a written agreement, with NOVA, as the case may be.

     13. New Developments.  Any discovery, invention, process or improvement
made or discovered by Employee during the term of his Employment in connection
with or in any way affecting or relating to the Business (as then carried on or
under active consideration) shall forthwith be disclosed to NOVA and shall
belong to and be the absolute property of NOVA; provided, however, that this
provision does not apply to an invention for which no equipment, supplies,
facility, trade secret information of NOVA 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 NOVA's actual or demonstrably anticipated research or
development; or (b) the invention results from any work performed by Employee
for NOVA.

     14. Remedy for Breach.  Employee acknowledges and agrees that his breach of
any of the covenants contained in Sections 9, 11, 12 and 13 of this Agreement
would cause irreparable injury to NOVA and that remedies at law of NOVA for any
actual or threatened breach by Employee of such covenants would be inadequate
and that NOVA shall be entitled to specific performance of the covenants 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 NOVA
to claim and recover damages against Employee for any breach of this Agreement
in addition to injunctive relief.  Employee acknowledges and agrees that,
subject to NOVA's compliance with the provisions of Section 8 hereof, the
covenants contained in Sections 9, 11, 12 and 13 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 NOVA, whether predicated upon this or any
other contract, shall not constitute a defense to the enforcement by NOVA  of
said covenants.

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

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

                                       14
<PAGE>

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

         (c)   NOVA 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 him in a position of confidence and
     trust with NOVA and its employees, merchants, associate banks, ISOs,
     customers, vendors and suppliers.

     16. 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 Section 10
hereof.

     17. Full Settlement and Legal Expenses.  NOVA'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 NOVA may have, or claim to have,
against the Employee or others.  In no event shall the Employee be obligated to
seek other employment or take any other action by way of mitigation of the
amounts payable to the Employee under any of the provisions of this Agreement.
NOVA agrees to pay, to the full extent permitted by law, all legal fees and
expenses which the Employee may reasonably incur as a result of any legitimate,
non-frivolous contest (regardless of the outcome thereof) by NOVA 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 the Employee concerning the amount of any
payment pursuant to Section 8 of this Agreement), plus in each case interest at
the applicable federal rate provided for in Section 7872(f)(2) of the Code.
NOVA 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.

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

     19. Waiver of Breach.  The waiver by NOVA 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.

     20. Successors and Assigns.  This Agreement shall inure to the benefit of
NOVA, its subsidiaries and affiliates, and their respective successors and
assigns.  This Agreement is not assignable by Employee or by NOVA, except that
NOVA may assign its rights (but not its obligations) under this Agreement to any

                                       15
<PAGE>

affiliated or subsidiary corporation, and NOVA may assign this Agreement to any
successor to NOVA in any reorganization, merger or consolidation, or transfer of
all or substantially all of NOVA's business or properties.

     21. 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:

               Edward Grzedzinski
               Chief Executive Officer
               NOVA Corporation
               One Concourse Parkway, Suite 300
               Atlanta, Georgia 30328

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

               Edward Grzedzinski
               695 Peace Creek Trace
               Alpharetta, Georgia 30005

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

               Troutman Sanders LLP
               5200 NationsBank Plaza
               600 Peachtree Street
               Atlanta, Georgia 30308
               Attention:  James L. Smith, III, Esq.

          (ii) If to NOVA, to:

               NOVA Corporation
               One Concourse Parkway
               Suite 300
               Atlanta, Georgia 30328
               Attention:  Cherie Fuzzell
                           General Counsel

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

               Long Aldridge & Norman LLP
               SunTrust Plaza
               303 Peachtree Street
               Suite 5300
               Atlanta, Georgia 30308
               Attention:  David M. Ivey, Esq.

     22.  Entire Agreement.  This Agreement contains the entire agreement of the
parties, and 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 1995 Agreement,

                                       16
<PAGE>

which is hereby terminated. 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.

     23.  Indemnification.  At all times during and after Employee's Employment
and the effectiveness of this Agreement, NOVA 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 NOVA provide such indemnification.

     24.  Survival. The provisions of Sections 8, 9, 10, 11, 12, 13, 14, 15, 16,
17, 18, 21 and 23 shall survive termination of Employee's Employment and
termination of this Agreement.

     25.  Withholding; No Offset. All payments required to be made by NOVA 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. No payment
under this Agreement will be subject to offset or reduction attributable to any
amount Employee may owe to NOVA or any other person, as permitted by law.
Nothing in this Section shall be construed to reduce Employee's right to the
payments described in Section 8(g).

                        (Signatures Begin on Next Page)

                                       17
<PAGE>

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

                                        "EMPLOYEE":

                                        By: /s/ Edward Grzedzinski
                                           ------------------------------
                                           Edward Grzedzinski

                                        "NOVA":

                                        NOVA Corporation

                                        By: /s/ Cherie M. Fuzzell
                                           ------------------------------
                                           Name: Cherie M. Fuzzell
                                           ------------------------------
                                           Title: EVP & General Counsel
                                           ------------------------------

                                                  [CORPORATE SEAL]

                                       18
<PAGE>

                                   EXHIBIT A
                                   ---------

                    Annual Incentive Compensation Schedule

 .  The "Target Amount" for each calendar year's Bonus Compensation shall be
   equal to Employee's Base Salary for such calendar year.

 .  The amount of Bonus Compensation paid to Employee for any calendar year shall
   range from 50% - 150% of the "Target Amount," based upon NOVA's achievement
   of specific net income objectives and other financial and non-financial
   objectives mutually agreed upon by Employee and the Compensation Committee
   with respect to such calendar year; provided, however, that if NOVA's
                                       --------  -------
   performance in such calendar year is extraordinarily above expectations, the
   Compensation Committee may award more than 150% of the Target Amount for such
   calendar year; similarly, if NOVA's performance in such year is
   extraordinarily below expectations, the Compensation Committee may award less
   than 50% of the Target Amount for such calendar year.

                                       19<PAGE>

                                                                   EXHIBIT 10.51

                   AMENDED AND RESTATED EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (this "Agreement") is made effective as of this
22nd day of February 2001, (the "Effective Date") by and between Pamela A.
Joseph (hereinafter referred to as "Employee") and NOVA Corporation, a Georgia
corporation ("NOVA").

                             W I T N E S S E T H :
                             -------------------

     WHEREAS, NOVA, through its direct and indirect subsidiaries, is 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;

     WHEREAS, Employee currently serves as the President of NOVA Information
Systems, Inc. and as Executive Vice President and Chief Information Officer of
NOVA pursuant to an Employment Agreement between Employee and NOVA effective
February 15, 1999, (the "Prior Agreement");

     WHEREAS, NOVA, or its assigns, will continue to engage in the Business
throughout the United States (the "Territory");

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

     WHEREAS, NOVA desires that Employee continue to work for NOVA, and Employee
desires to continue said employment, all as contemplated herein;

     NOW, THEREFORE, for and in consideration of her continued employment by
NOVA pursuant to this Agreement, the NOVA Confidential Information and Trade
Secrets (as hereafter defined) furnished to Employee by NOVA in order that she
may continue to 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.  NOVA hereby employs Employee for a period
beginning as of the Effective Date and ending two (2) years thereafter (the
"Initial Term"), unless Employee's employment by NOVA is sooner terminated or
automatically renewed pursuant to the terms of this Agreement (Employee's
employment by NOVA 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
     President of NOVA Information Systems, Inc. and 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

                                       1
<PAGE>

     Executive Officer, which in any event shall be such duties as are customary
     for an officer in that positions.

          (c)  Employee shall devote substantially all of her business time,
     attention, and energies to NOVA's Business, shall act at all times in the
     best interests of NOVA, 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, NOVA 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) ("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 NOVA's
     financial statements for the preceding fiscal year.  The Base Salary shall
     be paid by NOVA in accordance with NOVA'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 (the "Incentive Compensation Plan").  Upon
                          ---------
     written request and subject to the terms and conditions set forth in this
     Section 2(b), Employee shall be entitled to elect to receive all or part of
     any Bonus Compensation payable to Employee under the Incentive Compensation
     Plan in shares of NOVA common stock, par value $.01 per share ("NOVA
     Stock"), valued on the basis of the closing price of NOVA Stock on the New
     York Stock Exchange on the date of Employee's request (or if such date is
     not a trading day, on the immediately preceding trading day); provided,
     however, that NOVA shall not be obligated to comply with Employee's request
     if (i) NOVA does not have shares of NOVA Stock available for issuance or
     (ii) the issuance of NOVA Stock to Employee would be impracticable or
     impede, in any respect, NOVA's ongoing business operations.

          (c)  NOVA 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, NOVA shall provide to
Employee the following benefits:

          (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 NOVA for the benefit
     of its employees and/or executive officers, pursuant to the terms set forth
     in such plans.

                                       2
<PAGE>

          (b)  Life Insurance.  Employee shall be entitled to participate in any
               --------------
     life insurance plans established, offered, or adopted from time to time by
     NOVA for the benefit of its employees and/or executive officers.

          (c)  Disability Insurance.  Employee shall be entitled to participate
               --------------------
     in any disability insurance plans established, offered, or adopted from
     time to time by NOVA for the benefit of its employees and/or executive
     officers.

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

          (e)  Stock Option Plans.  Employee shall be eligible for participation
               ------------------
     in any stock option plan or restricted stock plan adopted by NOVA'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 NOVA
     (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 other executive officers of NOVA during the
     term of this Agreement.

          (g)  Terms and Provisions of Plans.  NOVA 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 NOVA'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 Deferred Compensation Plan balance that is
     not vested on the date of occurrence of such an event, shall become vested
     and exercisable immediately (collectively, the "Vested Rights").  As
     provided under the applicable plan or agreement, Employee shall have the
     right to exercise any or all of the Vested Rights.

     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 NOVA in all respects with good business and ethical
practices.  In addition, Employee shall be subject to and abide by the policies
and procedures of NOVA applicable generally to personnel of NOVA, as adopted
from time to time.

     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 NOVA under its policies and procedures.

                                       3
<PAGE>

     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 NOVA for "Cause."   For the purposes of this
     Agreement, the term "Cause," when used with respect to termination by NOVA
     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 NOVA; (iii) Employee's willful, intentional, or grossly
     negligent failure to comply with the decisions or policies of NOVA;  or
     (iv) final conviction of Employee of a felony; provided, however, that in
                                                    --------  -------
     the event NOVA desires to terminate Employee's Employment pursuant to
     subsections (i), (ii), or (iii) of this Section 6(b), NOVA 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, NOVA may discharge Employee
     immediately upon written notice to Employee.  If NOVA desires to terminate
     Employee's Employment pursuant to subsection (iv) of this Section 6(b),
     NOVA 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 NOVA could, with reasonable accommodation and without undue
     hardship, continue to employ Employee in some other capacity after such one
     hundred eighty (180) day period, NOVA 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 NOVA (the "Notice Period"), in the event (i) there
     is a material diminution in Employee's duties and responsibilities such
     that they no longer reflect duties and responsibilities customary for an
     executive officer of a publicly-traded company; provided, however, that
                                                     --------  -------
     NOVA's change to a privately-held company (for example, as a result of
     acquisition) and the corresponding change in Employee's duties and
     responsibilities 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
     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 materially breaches this Agreement, (each of (i), (ii), (iii) and (iv)
     being referred to as a "Responsibilities

                                       4
<PAGE>

     Breach"), and NOVA 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 NOVA 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 NOVA to cure such
     breaches, provided, further, that NOVA 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 NOVA.

          (g)  NOVA 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 party 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)   NOVA 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 of NOVA, NOVA shall pay Employee the Severance
               Payment in one lump sum within thirty (30) days of the
               Termination Date.

                    (B)   if, within the two-year period immediately following
               a Change in Control of NOVA, 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

                                       5
<PAGE>

                Section 6(h), such a termination shall not be deemed to be a
                Termination Exclusion for purposes of this Section 7.
                Accordingly, NOVA shall pay Employee an amount equal to her
                Annual Base Compensation multiplied by two (2), and NOVA 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 of NOVA.

               (ii)  NOVA 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 1/st/ 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 NOVA's payment of Bonus Compensation
          generally for such calendar year.

               (iii) Notwithstanding any provision to the contrary in the NOVA
          Corporation Deferred Compensation Plan (the "Deferred Compensation
          Plan"), the Deferred Compensation Plan Administrative Committee will
          exercise its sole option and sole discretion pursuant to Sections 7.02
          and 9.02 of the Deferred Compensation Plan, and will determine that
          Employee shall become fully vested immediately in all of her Deferred
          Compensation Plan accounts as of the Termination Date.

               (iv)  Notwithstanding any provision to the contrary in any other
          agreement or document (including but not limited to NOVA'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 of NOVA, Employee shall
          have the continuing

                                       6
<PAGE>

          right to exercise the "Qualified Options" (as defined in Section
          7(f)(iv)), at any time prior to the date which is one (1) year after
          the Termination Date, in accordance with their original terms (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"), NOVA
          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), NOVA, 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, NOVA 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 NOVA 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 NOVA to Employee in twelve (12)
          equal monthly payments, the

                                       7
<PAGE>

          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 NOVA 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, NOVA 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 NOVA 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 NOVA 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 NOVA exercises the Two Year
          Option, the two (2) year period following the Termination Date shall
          be deemed the "Exclusion Period".

          (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 or distribution
          by or on behalf of NOVA to or for the benefit of Employee as a result
          of a "Change in Control" or as otherwise payable under Sections 3(h)
          or 7(a) (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.

               (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 NOVA (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

                                       8
<PAGE>

          accuracy-related or other penalty on Employee. All fees and expenses
          of the Tax Firm shall be borne solely by NOVA. 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 NOVA 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 NOVA 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
          NOVA 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 NOVA
          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 NOVA to or for the benefit of Employee. In
          determining the reasonableness of Tax Firm's determinations hereunder,
          and the effect thereof, NOVA 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 NOVA in writing of any claims by the
          Internal Revenue Service that, if successful, would require the
          payment by NOVA 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 NOVA 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 NOVA 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 NOVA
          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 he gives such notice to NOVA (or such shorter period ending on
          the date that any payment of taxes with respect to such claim is due).
          If NOVA 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 NOVA any information reasonably requested by NOVA
                    relating to such claim;

               (B)  take such action in connection with contesting such claim as
                    NOVA 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 NOVA and reasonably acceptable to Employee;

                                       9
<PAGE>

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

               (D)  if NOVA elects not to assume and control the defense of such
                    claim, permit NOVA to participate in any proceedings
                    relating to such claim; provided, however, that NOVA 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, NOVA 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 NOVA shall determine; provided, however, that if NOVA
                                             --------  -------
                    directs Employee to pay such claim and sue for a refund,
                    NOVA 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, NOVA'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
          NOVA pursuant to this Section 7(e), Employee becomes entitled to
          receive any refund with respect to such claim, Employee shall (subject
          to NOVA's complying with the requirements of Section 7(e)(iii))
          promptly pay to NOVA 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 NOVA
          pursuant to Section 7(e)(iii), a determination is made that Employee
          is not entitled to a refund with respect to such claim and NOVA 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:

                                       10
<PAGE>

                    (A)  The acquisition (other than from NOVA) 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 NOVA or its subsidiaries
                         which acquires beneficial ownership of voting
                         securities of NOVA) 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 NOVA Stock or the combined voting power of
                         NOVA's then outstanding voting securities entitled to
                         vote generally in the election of directors; or

                    (B)  The consummation by NOVA of a reorganization, merger,
                         consolidation, in each case, with respect to which the
                         shares of NOVA 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 NOVA or of the sale of all or
                         substantially all of the assets of NOVA; and

                    (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 (i) NOVA, if NOVA remains a publicly-
                         traded company, or (ii) the ultimate parent company, if
                         NOVA becomes a direct or indirect subsidiary of another
                         company.

                    (i.e., either (A) and (C) or (B) and (C) must occur in order
                    to constitute a Change in Control for purposes of this
                    definition).

                    Notwithstanding the foregoing definition, a leverage buyout
                    transaction whereby NOVA becomes a privately-held company
                    and the management of NOVA obtains an equity interest in
                    NOVA or its successor as part of such transaction shall not
                    constitute a Change in Control for purposes of this
                    Agreement.

              (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 of Employee 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 NOVA as of the Effective Date hereof and any person
          becoming a member of the Board of Directors of NOVA hereafter whose
          election, or nomination for election by NOVA'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

                                       11
<PAGE>

          the election of the directors of NOVA, as such terms are used in Rule
          14a-11 of Regulation 14A promulgated under the Exchange Act).

               (iv) "Qualified Options" shall meanall stock options, restricted
          stock, and other similar rights (a) granted to Employee prior to the
          date hereof (whether vested or unvested), that entitle Employee to
          acquire NOVA Stock for a price per share equal to or greater than
          $17.92; or (b) granted to Employee on or after the date of this
          Agreement.

     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,
including, without limitation, all customer data, billing information, service
data, and other technical material of NOVA is and shall be NOVA's property.
Employee agrees to deliver without demand all such materials to NOVA 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) NOVA 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.   NOVA 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) NOVA 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.  NOVA 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 NOVA acknowledge and agree that nothing in this Agreement
     shall be construed to require the arbitration of

                                       12
<PAGE>

     any claim or controversy arising under Sections 10 and 11 of this Agreement
     nor shall such provisions prevent NOVA from seeking equitable relief from a
     court of competent 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 NOVA 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) NOVA Confidential Information.  Employee acknowledges and agrees
              -----------------------------
     that because of her Employment, she will have access to proprietary
     information of NOVA concerning or relative to the Business (collectively,
     "NOVA Confidential Information") which includes, without limitation,
     technical material of NOVA, 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 any information marked
     "Confidential" by  NOVA.  Employee acknowledges and agrees that NOVA
     Confidential Information is and shall be NOVA's property.  Employee agrees
     that during the term of her Employment, Employee shall keep NOVA
     Confidential Information confidential, and Employee shall not use NOVA
     Confidential Information for any reason other than on behalf of NOVA
     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 NOVA Confidential
     Information confidential, and Employee shall not use NOVA 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 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. (S) 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.

                                       13
<PAGE>

     Employee acknowledges and agrees that, because of her Employment, she does
and will continue to have access to confidential or proprietary information
concerning merchants, associate banks and ISOs of NOVA 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.  Employee agrees that during the term of her
Employment 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 NOVA 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 NOVA in
     connection with the Business, 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) of NOVA and 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 NOVA to terminate or modify such merchant's,
     associate bank's, ISO's, customer's, or supplier's relationship with NOVA
     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 (i) was employed by
     NOVA as of the date of the termination of Employee's Employment and (ii) is
     in a sales or management position with NOVA at the time of such contact, to
     terminate or modify her employment relationship, whether or not pursuant to
     a written agreement, with NOVA, 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 (as then carried on or
under active consideration) shall forthwith be disclosed to NOVA and shall
belong to and be the absolute property of NOVA; provided, however, that this
provision does not apply to an invention for which no equipment, supplies,
facility, trade secret information of NOVA 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 NOVA's actual or demonstrably anticipated research or
development; or (b) the invention results from any work performed by Employee
for NOVA.

     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 NOVA and that remedies at law of NOVA for any
actual or threatened breach by Employee of such covenants would

                                       14
<PAGE>

be inadequate and that NOVA shall be entitled to specific performance of the
covenants 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 NOVA 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 NOVA, whether predicated upon
this or any other contract, shall not constitute a defense to the enforcement by
NOVA 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
NOVA under this Agreement, and Employee hereby acknowledges and agrees that:

          (a) the restrictions and covenants contained herein, and the rights
     and remedies conferred upon NOVA, 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 NOVA;

          (c) NOVA 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 NOVA 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.  Full Settlement and Legal Expenses.  NOVA'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 NOVA may have against the

                                       15
<PAGE>

Employee or others. In no event shall the Employee be obligated to seek other
employment or take any other action by way of mitigation of the amounts payable
to the Employee under any of the provisions of this Agreement. NOVA agrees to
pay, to the full extent permitted by law, all legal fees and expenses which the
Employee may reasonably incur as a result of any legitimate, non-frivolous
contest (regardless of the outcome thereof) by NOVA 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 the Employee about the amount of any payment pursuant to
Section 7 of this Agreement), plus in each case interest at the applicable
federal rate provided for in Section 7872(f)(2) of the Code. NOVA 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.

     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 NOVA 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
NOVA, its subsidiaries and affiliates, and their respective successors and
assigns.  This Agreement is not assignable by Employee but shall be freely
assignable by NOVA.

     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, to:

               NOVA Corporation
               One Concourse Parkway
               Suite 300
               Atlanta, Georgia 30328
               Attention:  Edward Grzedzinski
                           Chief Executive Officer

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

               NOVA Corporation
               One Concourse Parkway
               Suite 300
               Atlanta, Georgia 30328

                                       16
<PAGE>

               Attention:  Cherie Fuzzell
                           General Counsel

     21.  Entire Agreement.  This Agreement contains the entire agreement of the
parties, and 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.  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.  At all times during and after Employee's Employment
and the effectiveness of this Agreement, NOVA 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 NOVA provide such indemnification.

     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 NOVA 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).

                                       17
<PAGE>

     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

                                       18
<PAGE>

                                   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 Board of Directors.

*    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.

                                       19
<PAGE>

     Examples:
     ---------

     .    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%

          Employee's Bonus Payment would be equal to Employee's then-current
          Base Salary multiplied by 29%.

     .    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.

                                       20

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