Document:

EX-10.17 CHANGE OF CONTROL AGREEMENT

 

Exhibit 10.17

CHANGE OF CONTROL AGREEMENT

     THIS AGREEMENT (“Agreement”), by and between TOTAL SYSTEM SERVICES, INC., a Georgia
corporation (the “Company”) and                                                              (the “Employee”) is entered into as of
the 1st day of January, 2008 (the “Effective Date”);

     WHEREAS, the Board of Directors of the Company (the “Board”), has determined that it is in the
best interests of the Company and its shareholders to assure that the Company will have the
continued dedication of the Employee, notwithstanding the possibility, threat or occurrence of a
Change of Control (as defined below) of the Company;

     WHEREAS, the Board believes it is imperative to diminish the inevitable distraction of the
Employee by virtue of the personal uncertainties and risks created by a pending or threatened
Change of Control and to encourage the Employee’s full attention and dedication to the Company
currently and in the event of any threatened or pending Change of Control, and to provide the
Employee with appropriate compensation and benefits arrangements upon a Change of Control which are
competitive with those of other corporations; and

     WHEREAS, in order to accomplish these objectives, the Board has caused the Company to enter
into this Agreement.

     NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

     1. Certain Definitions. (a) The “Change of Control Date” shall mean the first date during
the Change of Control Period (as defined in Section 1(b)) on which a Change of Control (as defined
in Section 2) occurs. Anything in this Agreement to the contrary notwithstanding, if a Change of
Control occurs and if the Employee’s employment with the Company is terminated prior to the date on
which the Change of Control occurs, and if it is reasonably demonstrated by Employee that such
termination of employment (i) was at the request of a third party who has taken steps reasonably
calculated to effect a Change of Control or (ii) otherwise arose in connection with or in
anticipation of a Change of Control, then for all purposes of this Agreement the “Change of Control
Date” shall mean the date immediately prior to the date of such termination of employment.

          (b) The “Change of Control Period” shall mean the period commencing on the Effective Date and
ending on the day after the date of Employee’s termination of employment from the Company or, if
earlier, the date which is two years after the Change of Control Date.

          (c) “Cause” shall mean:

               (1) the willful and continued failure of the Employee to perform substantially the Employee’s
duties with the Company or one of its affiliates after a written demand for substantial performance
is delivered to the Employee by the Executive Committee of the Board or the Chief Executive Officer
of the Company which specifically identifies the manner in which the Executive Committee of the
Board or Chief Executive Officer believes that the Employee has not

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substantially performed the Employee’s duties, after which Employee shall have a reasonable
amount of time to remedy such failure to substantially perform his or her duties; or

               (2) the willful engaging by the Employee in illegal conduct or gross misconduct which is
materially and demonstrably injurious to the Company.

          For purposes of this provision, no act, or failure to act, on the part of the Employee shall
be considered “willful” unless it is done, or omitted to be done, by the Employee in bad faith or
without reasonable belief that the Employee’s action or omission was in the best interests of the
Company. Any act, or failure to act, based upon authority given pursuant to a resolution duly
adopted by the Board, or the Executive Committee of the Board, or upon the instructions of the
Chief Executive Officer, or an Executive Vice President (or higher ranking officer), of the
Company, or based upon the advice of counsel for the Company, shall be conclusively presumed to be
done, or omitted to be done, by the Employee in good faith and in the best interests of the
Company. The cessation of employment of the Employee shall not be deemed to be for Cause unless
and until there shall have been delivered to the Employee a copy of a resolution duly adopted by
the affirmative vote of not less than three-quarters (3/4) of the entire membership of the
Executive Committee of the Board at a meeting of the Executive Committee of the Board called and
held for such purpose (after reasonable notice is provided to the Employee and the Employee is
given an opportunity, together with counsel, to be heard before the Executive Committee of the
Board), finding that, in the good faith opinion of the Executive Committee of the Board, the
Employee is guilty of the conduct described in subparagraph (1) or (2) above, and specifying the
particulars thereof in detail.

          (d) “Good Reason” shall mean:

               (1) a material adverse reduction in the Employee’s position duties or responsibilities
excluding for this purpose: (i) a change in the position or level of officer to whom the
Employee reports, (ii) a change that is part of a policy, program or arrangement applicable to peer
executives (including peer executives of any successor to the Company), or (iii) an isolated,
insubstantial and inadvertent action not taken in bad faith and which is remedied by the Company
promptly after receipt of notice thereof given by the Employee;

               (2) the Company’s requiring the Employee to be based at any office or location more than 35
miles from the location where Employee was employed on the Change of Control Date or the date which
is 120 days prior to the Change of Control Date (if such earlier date is selected by Employee);

               (3) a material reduction in Employee’s annual base salary, target annual bonus opportunity
(including, without limitation, the use of bonus goals that are not reasonable and consistent with
the bonus goals established for the preceding year), or participation in employee benefit plans, as
such salary, bonus and plans were in effect on either the Change of Control Date or the date which
is 120 days prior to the Change of Control Date (if such earlier date is selected by Employee)
unless such reduction is part of a policy, program or arrangement applicable to peer executives
(including peer executives to any successor to Company) ; or

               (4) any failure by the Company to comply with and satisfy Section 8(c) of this Agreement.

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          For purposes of this Section 1(d), any good faith determination of “Good Reason” made by the
Employee shall be conclusive.

          (e) “Disability” shall be defined the same as such term is defined in either, at the selection
of the Employee, (a) the group long-term disability insurance plan sponsored or maintained by
Company on the Change of Control Date in which Employee participates or (b) any individual
long-term disability insurance arrangement in effect on the Change of Control Date, the premiums of
which are paid by Company for the benefit of Employee.

     2. Change of Control. For the purposes of this Agreement, a “Change of Control” shall mean:

          (a) the acquisition by any “person” (“Person”), as such term is used in Section 13(d) and
14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (other than the
Company or a subsidiary or any Company employee benefit plan (including its trustee), of
“beneficial ownership” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly,
of securities of the Company representing 20% or more of the total number of shares of the
Company’s then outstanding securities;

          (b) individuals who, as of the date hereof, constitute the Board (the “Incumbent Board”) cease
for any reason to constitute at least two-thirds (2/3) of the Board; provided, however, that any
individual becoming a director subsequent to the date hereof whose election, or nomination for
election by the Company’s shareholders, was approved by a vote of at least two-thirds (2/3) of the
directors then comprising the Incumbent Board shall be considered as though such individual were a
member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial
assumption of office occurs as a result of an actual or threatened election contest with respect to
the election or removal of directors or other actual or threatened solicitation of proxies or
consents by or on behalf of a Person other than the Board; or

          (c) consummation of a reorganization, merger or consolidation or sale or other disposition of
all or substantially all of the assets or stock of the Company (a “Business Combination”), in each
case, unless, following such Business Combination, (i) all or substantially all of the individuals
and entities who were the beneficial owners, respectively, of the total number of shares of the
Company’s outstanding securities immediately prior to such Business Combination beneficially own,
directly or indirectly, more than sixty percent (60%) of, respectively, the total number of shares
of the then outstanding securities of the corporation resulting from such Business Combination
(including, without limitation, a corporation which as a result of such transaction owns the
Company or all or substantially all of the Company’s assets either directly or through one or more
subsidiaries) in substantially the same proportions as their ownership, immediately prior to such
Business Combination, of the total number of shares of the Company’s outstanding securities, (ii)
no Person (excluding any corporation resulting from such Business Combination, or any employee
benefit plan (including its trustee) of the Company or such corporation resulting from such
Business Combination) beneficially owns, directly or indirectly, 20% or more of, respectively, the
total number
of shares of the then outstanding securities of the corporation resulting from such Business
Combination except to the extent that such ownership existed prior to the Business Combination and
(iii) at least two-thirds (2/3) of the members of the board of directors of the

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Corporation
resulting from such Business Combination were members of the Incumbent Board at the time of the
execution of the initial agreement, or of the action of the Board, providing for such Business
Combination.

For purposes of this Section 2, a “Change of Control” shall not result from any transaction
precipitated by the Company’s insolvency, appointment of a conservator, or determination by a
regulatory agency that the Company is insolvent, nor from any transaction initiated by the Company
in regard to converting from a publicly traded company to a privately held company.

     3. Obligations of Company Upon Termination. In the event Employee’s employment by Company is
terminated before the two-year anniversary date of the Change of Control Date either (i) by the
Company for any reason other than Cause or Employee’s death or Disability, or (ii) by Employee for
Good Reason, then

          (a) The Company shall pay to Employee in a lump sum in cash on the date which is six months
and one day after the date Employee has a separation from service (within the meaning of Section
409A of the Internal Revenue Code of 1986, as amended (the “Code”)) the aggregate of the following
amounts:

               (1) three times the sum of: (a) Employee’s annual base salary as in effect immediately prior
to Employee’s termination; plus (b) the product of (i) Employee’s annual base salary as in effect
immediately prior to Employee’s termination of employment multiplied by (ii) a percentage equal to
the average percentage of Employee’s annual bonus earned with respect to the three calendar years
ended prior to Employee’s termination, measured as a percentage of Employee’s annual base salary
for the year the bonus was earned; and

               (2) the product of (a) a fraction, the numerator of which is the greater of (i) six, or (ii)
number of full months Employee worked in the calendar year of Employee’s termination (e.g.,
an October 1 termination date results in a numerator of 9) and the denominator of which is 12;
multiplied by (b) the target annual bonus for which Employee was eligible immediately prior to
Employee’s termination.

For purposes of this Agreement, “annual base salary” means Employee’s annual rate of pay excluding
all other elements of compensation such as, without limitation, bonuses, perquisites, restricted
stock awards, stock options, and retirement and welfare benefits.

          (b) For three years after Employee’s termination of employment, Employee shall continue to be
eligible to receive medical and welfare benefits (including, without limitation, medical,
prescription, dental, disability (both individual and group arrangements), life (both individual
and group arrangements), and accidental death and dismemberment plans and programs) for Employee
and Employee’s dependents at the level of coverage elected by Employee during the open enrollment
period immediately preceding Employee’s termination of employment date under benefit plans that are
generally equivalent to those provided generally at any time after the Effective Date to other peer
employees of the Company and its affiliated companies (excluding individual
disability and individual life insurance arrangements, which must continue to be provided
regardless of whether provided to peer employees) and the Company shall reimburse Employee for
Employee’s costs or expenses for such benefits; provided, however, that if Employee becomes
reemployed with

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another employer (specifically excluding self-employment) and is eligible to
receive medical or other welfare benefits under another employer provided plan, Company shall
terminate all medical and other welfare benefits being provided hereunder; and provided further,
however, that, if Employee is not eligible to participate under the terms of such medical and
welfare benefit plans (including COBRA continuation coverage for which Executive is eligible),
Company shall pay Employee in cash on the date which is six months and one day after the date
Employee has a separation from service (within the meaning of Section 409A of the Code) a lump sum
amount equal to the lesser of: (1) thirty-six (36) times the average monthly cost per employee to
the Company to provide the benefits described in this Section 3(b) to its employees, or (2) 25% of
the lump sum amount payable to Employee pursuant to Section 3(a) of this Agreement.

          (c) The Company shall not be obligated under this Agreement to provide outplacement assistance
or any other benefits and perquisites not covered above, such as a Company-provided automobile,
country club and dining club dues, health club dues, retirement benefits, etc.

     4. Non-exclusivity of Rights. Nothing in this Agreement shall prevent or limit the Employee’s
continuing or future participation in any plan, program, policy or practice provided by the Company
or any of its affiliated companies and for which the Employee may qualify, nor, subject to Section
9(f), shall anything herein limit or otherwise affect such rights as the Employee may have under
any contract or agreement with the Company or any of its affiliated companies. Amounts which are
vested benefits or which the Employee is otherwise entitled to receive under any plan, policy,
practice or program of or any contract or agreement with the Company or any of its affiliated
companies at or subsequent to the date of termination shall be payable in accordance with such
plan, policy, practice or program or contract or agreement except as explicitly modified by this
Agreement.

     5. Full Settlement. The Company’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,
counterclaim, recoupment, defense or other claim, right or action which the Company may 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 and, except as otherwise provided in this Agreement,
such amounts shall not be reduced whether or not the Employee obtains other employment. The
Company agrees to pay as incurred, to the full extent permitted by law, all legal fees and expenses
which the Employee may reasonably incur as a result of any contest (regardless of the outcome
thereof) by the Company, the Employee 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 contest by the Employee about the amount of any payment pursuant to this Agreement),
plus in each case interest on any delayed payment at the applicable Federal rate provided for in
Section 7872(f)(2)(A) of the Code.

     6. Certain Additional Payments by the Company. (a) Anything in this Agreement to the contrary
notwithstanding and except as set forth below, in the event it shall be determined that any payment
or distribution by the Company to or for the benefit of the Employee (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 (6) (a
“Payment”))

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would be subject to the excise tax imposed by Section 4999 of the Code or any interest
or penalties are incurred by the 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 the Employee shall be entitled to receive an additional payment (a “Gross-Up
Payment”) in an amount such that after payment by the Employee of all taxes on the Gross-Up Payment
including, without limitation, any income taxes, employment taxes, excise taxes, and interest and
penalties imposed upon the Gross-Up Payment, the Employee retains an amount of the Gross-Up Payment
equal to the Excise Tax imposed upon the Payments. Notwithstanding the foregoing provisions of
this Section 6, if it shall be determined that the Employee is entitled to a Gross-Up Payment, but
that the Payments do not exceed 110% of the greatest amount (the “Reduced Amount”) that could be
paid to the Employee such that the receipt of Payments would not give rise to any Excise Tax, then
no Gross-Up Payment shall be made to the Employee and the remaining provisions of this Section 6
shall not apply.

          (b) Subject to the provisions of Section 6(c), all determinations required to be made under
this Section 6, 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 KPMG Peat Marwick or such other nationally recognized certified public accounting firm as
may be designated by the Company (the “Accounting Firm”) which shall provide detailed supporting
calculations both to the Company and the Employee within 15 business days of the receipt of notice
from the Employee that there has been a Payment, or such earlier time as is requested by the
Company. All fees and expenses of the Accounting Firm shall be borne solely by the Company. Any
Gross-Up Payment, as determined pursuant to this Section 6, shall be paid by the Company to the
Employee within five days of the receipt of the Accounting Firm’s determination. Any determination
by the Accounting Firm shall be binding upon the Company and the Employee. As a result of the
uncertainty in the application of Section 4999 of the Code at the time of the initial determination
by the Accounting Firm hereunder, it is possible that Gross-Up Payments which will not have been
made by the Company should have been made (“Underpayment”), consistent with the calculations
required to be made hereunder. In the event that the Company exhausts its remedies pursuant to
Section 6(c) and the Employee thereafter is required to make a payment of any Excise Tax, the
Accounting Firm shall determine the amount of the Underpayment that has occurred and any such
Underpayment shall be promptly paid by the Company to or for the benefit of the Employee.

          (c) The Employee shall notify the Company in writing of any claim by the Internal Revenue
Service that, if successful, would require the payment by the Company of the Gross-Up Payment.
Such notification shall be given as soon as practicable but no later than 10 business days after
the Employee is informed in writing of such claim and shall apprise the Company of the nature of
such claim and the date on which such claim is requested to be paid. The Employee shall not pay
such claim prior to the expiration of the 30-day period following the date on which it gives such
notice to the Company (or such shorter period ending on the date that any payment of taxes with
respect to such claim is due). If the Company notifies the Employee in writing prior to the
expiration of such period that it desires to contest such claim, the Employee shall:

               (1) give the Company any information reasonably requested by the Company relating to such
claim,

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               (2) take such action in connection with contesting such claim as the Company shall reasonably
request in writing from time to time, including, without limitation, accepting legal representation
with respect to such claim by an attorney reasonably selected by the Company,

               (3) cooperate with the Company in good faith in order effectively to contest such claim, and

               (4) permit the Company to participate in any proceedings relating to such claim;

provided, however, that the Company 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 the 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 limitation on the foregoing provisions of this Section 6(c), the
Company shall control all proceedings taken in connection with such contest and, at its sole
option, may pursue or forgo any and all administrative appeals, proceedings, hearings and
conferences with the taxing authority in respect of such claim and may, at its sole option, either
direct the Employee to pay the tax claimed and sue for a refund or contest the claim in any
permissible manner, and the 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
the Company shall determine; provided, however, that if the Company directs the Employee to pay
such claim and sue for a refund, the Company shall advance the amount of such payment to the
Employee, on an interest-free basis and shall indemnify and hold the 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 the Employee with respect to which such contested amount
is claimed to be due is limited solely to such contested amount. Furthermore, the Company’s
control of the contest shall be limited to issues with respect to which a Gross-Up Payment would be
payable hereunder and the 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.

          (d) If, after the receipt by the Employee of an amount advanced by the Company pursuant to
Section 6(c), the Employee becomes entitled to receive any refund with respect to such claim, the
Employee shall (subject to the Company’s complying with the requirements of Section 6(c)) promptly
pay to the Company the amount of such refund (together with any interest paid or credited thereon
after taxes applicable thereto). If, after the receipt by the Employee of an amount advanced by
the Company pursuant to Section 6(c), a determination is made that the Employee shall not be
entitled to any refund with respect to such claim and the Company does not notify the 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 be forgiven and shall not be required to be repaid
and the amount of such advance shall offset, to the extent thereof, the amount of Gross-Up
Payment required to be paid.

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     7. Confidential Information. The Employee shall hold in a fiduciary capacity for the benefit
of the Company all secret or confidential information, knowledge or data relating to the Company or
any of its affiliated companies, and their respective businesses, which shall have been obtained by
the Employee during the Employee’s employment by the Company or any of its affiliated companies and
which shall not be or become public knowledge (other than by acts by the Employee or
representatives of the Employee in violation of this Agreement). After termination of the
Employee’s employment with the Company, the Employee shall not, without the prior written consent
of the Company or as may otherwise be required by law or legal process, communicate or divulge any
such information, knowledge or data to anyone other than the Company and those designated by it.

     8. Successors. (a) This Agreement is personal to the Employee and without the prior written
consent of the Company shall not be assignable by the Employee otherwise than by will or the laws
of descent and distribution. This Agreement shall inure to the benefit of and be enforceable by
the Employee’s legal representatives.

          (b) This Agreement shall inure to the benefit of and be binding upon the Company and its
successors and assigns.

          (c) The Company will require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business and/or assets of the
Company to assume expressly and agree to perform this Agreement in the same manner and to the same
extent that the Company would be required to perform it if no such succession had taken place. As
used in this Agreement, “Company” shall mean the Company as hereinbefore defined and any successor
to its business and/or assets as aforesaid which assumes and agrees to perform this Agreement by
operation of law, or otherwise.

     9. Miscellaneous. (a) This Agreement shall be governed by and construed in accordance with
the laws of the State of Georgia, without reference to principles of conflict of laws. The
captions of this Agreement are not part of the provisions hereof and shall have no force or effect.
This Agreement may not be amended or modified otherwise than by a written agreement executed by
the parties hereto or their respective successors and legal representatives.

          (b) All notices and other communications hereunder shall be in writing and shall be given by
hand delivery to the other party or by registered or certified mail, return receipt requested,
postage prepaid

If to the Employee:

To the Employee’s most recent home address as filed with the Company

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If to the Company:

Total System Services, Inc.

P. O. Box 120

Columbus, GA 31902

Attention: General Counsel

or to such other address as either party shall have furnished to the other in writing in accordance
herewith. Notice and communications shall be effective when actually received by the addressee.

          (c) The invalidity or unenforceability of any provision of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement.

          (d) The Company may withhold from any amounts payable under this Agreement such Federal,
state, local or foreign taxes as shall be required to be withheld pursuant to any applicable law or
regulation.

          (e) The Employee’s or the Company’s failure to insist upon strict compliance with any
provision of this Agreement or the failure to assert any right the Employee or the Company may have
hereunder, including, without limitation, the right of the Employee to terminate employment for
Good Reason pursuant to Section 3 of this Agreement, shall not be deemed to be a waiver of such
provision or right or any other provision or right of this Agreement.

          (f) The Employee and the Company acknowledge that, except as may otherwise be provided under
any other written agreement between the Employee and the Company, the employment of the Employee by
the Company is “at will” and, subject to Section 1(a) hereof, prior to the Change of Control Date,
the Employee’s employment may be terminated by either the Employee or the Company at any time prior
to the Change of Control Date, in which case the Employee and Company shall have no further rights
under this Agreement. In addition, in the event Employee’s employment is terminated as a result of
Employee’s death or Disability, Employee shall have no further rights under this Agreement. From
and after the Effective Date this Agreement shall supersede any other agreement between the parties
with respect to the subject matter hereof.

          (g) This Agreement cancels and supercedes any and all previous change of control agreements
between Employee and Company (including without limitation all Company affiliates and
subsidiaries).

          (h) This Agreement is executed in two counterparts, each of which shall be deemed an original
and together shall constitute one and the same agreement, with one counterpart being delivered to
each party hereto.

          (i) To the extent this Agreement is subject to Section 409A of the Code, Employee and the
Company intend for all payments under this Agreement to comply with such section, and this
Agreement shall, to the extent practical, be operated and administered to effect such intent. To
the extent necessary to avoid adverse tax consequences under Section 409A of the Code,
the timing of any payment under this Agreement shall be delayed six months and one day in a
manner consistent with Section 409A(a)(2)(B)(i) of the Code.

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     IN WITNESS WHEREOF, the Employee has hereunto set the Employee’s hand and, pursuant to the
authorization from its Board of Directors, the Company has caused these presents to be executed in
its name on its behalf, all being done in duplicate originals, with one original being delivered to
each party hereto, all as of the day and year first above written.

	 	 	 	 	 
	 	 	 
	 	[Employee]

TOTAL SYSTEM SERVICES, INC.

 	 
	 	By:  	 	 
	 	 	 	 
	 	Title:  	 	 
	 

10EX-10.30 TSYS 2008 OMNIBUS PLAN

 

Exhibit 10.30

      Total System Services, Inc.

      2008 Omnibus Plan

Effective December 31, 2007

 

 

Contents

	 	 	 	 	 
	 
	Effective December 31, 2007

	 	 	1	 
	Article 1. Establishment, Purpose, and Duration

	 	 	1	 
	Article 2. Definitions

	 	 	1	 
	Article 3. Administration

	 	 	6	 
	Article 4. Shares Subject to This Plan and Maximum Awards

	 	 	7	 
	Article 5. Eligibility and Participation

	 	 	9	 
	Article 6. Stock Options

	 	 	9	 
	Article 7. Stock Appreciation Rights

	 	 	11	 
	Article 8. Restricted Stock and Restricted Stock Units

	 	 	12	 
	Article 9. Performance Units/Performance Shares

	 	 	13	 
	Article 10. Cash-Based Awards and Other Stock-Based Awards

	 	 	14	 
	Article 11. Transferability of Awards

	 	 	15	 
	Article 12. Performance Measures

	 	 	15	 
	Article 13. Nonemployee Director Awards

	 	 	16	 
	Article 14. Dividends and Dividend Equivalents

	 	 	16	 
	Article 15. Change of Control

	 	 	17	 
	Article 16. Rights of Participants

	 	 	17	 
	Article 17. Amendment, Modification, Suspension, and Termination

	 	 	17	 
	Article 18. Withholding

	 	 	18	 
	Article 19. Successors

	 	 	18	 
	Article 20. General Provisions

	 	 	19	 

 

 

Total System Services, Inc.

2008 Omnibus Plan

Effective December 31, 2007

Article 1. Establishment, Purpose, and Duration

     1.1 Establishment. Total System Services, Inc. (hereinafter referred to as the “Company”)
hereby establishes an incentive compensation plan to be known as Total System Services, Inc. 2008
Omnibus Plan (hereinafter referred to as the “Plan”), as set forth in this document.

     The Plan permits the grant of Nonqualified Stock Options, Incentive Stock Options, Stock
Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Shares, Performance
Units, Covered Employee annual incentive awards, Cash-Based Awards, and Other Stock-Based Awards.

     Subject to approval by the Company’s shareholders, the Plan shall become effective upon (and
shall not become effective unless and until there occurs) the spin-off of Company stock to Synovus
Financial Corp. shareholders. Following its effectiveness, the Plan shall remain in effect as
provided in Section 1.3 hereof.

     1.2 Purpose of the Plan. The purpose of the Plan is to advance the interests of the Company
and its shareholders through Awards that give Employees and Directors a personal stake in the
Company’s growth, development and financial success. Awards under the Plan will motivate Employees
and Directors to devote their best efforts to the business of the Company. They will also help the
Company attract and retain the services of Employees and Directors who are in a position to make
significant contributions to the Company’s future success.

     1.3 Duration of the Plan. Unless sooner terminated as provided herein, the Plan shall
terminate ten (10) years from the date of the approval of the Plan by the Company’s shareholders.
After the Plan’s termination, no new Awards may be granted, but Awards previously granted shall
remain outstanding in accordance with their applicable terms and conditions, including the terms
and conditions of the Plan. Notwithstanding the foregoing, no Incentive Stock Options may be
granted more than ten (10) years after the earlier of: (a) the date the Plan is adopted by the
Board, or (b) the date the Plan is approved by the Company’s shareholders.

Article 2. Definitions

     Whenever used in this Plan, the following terms shall have the meanings set forth below, and
when the meaning is intended, the initial letter of the word shall be capitalized:

	 	2.1	 	“Affiliate” shall mean any corporation or other entity (including, but not limited
to, a partnership or a limited liability company) that is affiliated with the Company
through stock or equity ownership or otherwise, and is designated as an Affiliate for
purposes of this Plan by the Committee.
	 
	 	2.2	 	“Annual Award Limit” or “Annual Award Limits” have the meaning set forth in Section
4.3.

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	 	2.3	 	“Award” means, individually or collectively, a grant under this Plan of Nonqualified
Stock Options, Incentive Stock Options, Stock Appreciation Rights, Restricted Stock,
Restricted Stock Units, Performance Shares, Performance Units, Covered Employee annual
incentive awards, Cash-Based Awards, or Other Stock-Based Awards, in each case subject to
the terms of this Plan.
	 
	 	2.4	 	“Award Agreement” means either: (a) a written agreement entered into by the Company
and a Participant setting forth the terms and provisions applicable to an Award granted
under this Plan, or (b) a written or electronic statement issued by the Company to a
Participant describing the terms and provisions of such Award, including any amendment or
modification thereof. The Committee may provide for the use of electronic, Internet, or
other nonpaper Award Agreements, and the use of electronic, Internet, or other nonpaper
means for the acceptance thereof and actions thereunder by a Participant.
	 
	 	2.5	 	“Beneficial Owner” or “Beneficial Ownership” shall have the meaning ascribed to such
terms in Rule 13d-3 promulgated under the Exchange Act.
	 
	 	2.6	 	“Board” or “Board of Directors” means the Board of Directors of the Company.
	 
	 	2.7	 	“Cash-Based Award” means an Award, denominated in cash, granted to a Participant as
described in Article 10.
	 
	 	2.8	 	“Change of Control” means any of the following events: (a) the acquisition by any
“person,” as such term is used in Section 13(d) and 14(d) of the Exchange Act (other than
the Company or a subsidiary or any Company employee benefit plan (including its trustee)),
of “beneficial ownership” (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of securities of the Company representing 20% or more of
the total number of shares of the Company’s then outstanding securities; (b) individuals who, as of the date
of the spin-off of Company stock to Synovus Financial Corp. shareholders, constitute the
Board (the “Incumbent Board”) cease for any reason to constitute at least two-thirds (2/3)
of the Board; provided, however, that any individual becoming a director subsequent to the
date hereof whose election, or nomination for election by the Company’s shareholders, was
approved by a vote of at least two-thirds (2/3) of the directors then comprising the
Incumbent Board shall be considered as though such individual were a member of the
Incumbent Board, but excluding, for this purpose, any such individual whose initial
assumption of office occurs as a result of an actual or threatened election contest with
respect to the election or removal of directors or other actual or threatened solicitation
of proxies or consents by or on behalf of a Person other than the Board; (c) consummation
of a reorganization, merger or consolidation or sale or other disposition of all or
substantially all of the assets or stock of the Company (a “Business Combination”), in
each case, unless, following such Business Combination, (i) all or substantially all of
the individuals and entities who were the beneficial owners, respectively, of the total
number of shares of the Company’s outstanding securities immediately prior to such
Business Combination beneficially own, directly or indirectly, more than sixty percent
(60%) of, respectively, the total number of shares of the then outstanding securities of
the corporation resulting from such Business Combination (including, without limitation, a
corporation which as a result of such transaction owns the Company or all or substantially
all of the Company’s assets either directly or through

2

 

	 	 	 	one or more subsidiaries) in substantially the same proportions as their ownership,
immediately prior to such Business Combination, of the total number of shares of the
Company’s outstanding securities, (ii) no Person (excluding any corporation resulting
from such Business Combination, or any employee benefit plan (including its trustee) of
the Company or such corporation resulting from such Business Combination beneficially
owns, directly or indirectly, 20% or more of, respectively, the total number of shares
of the then outstanding securities of the corporation resulting from such Business
Combination except to the extent that such ownership existed prior to the Business
Combination and (iii) at least two-thirds (2/3) of the members of the board of directors
of the corporation resulting from such Business Combination.
	 
	 	 	 	A “Change of Control” shall not result from any transaction precipitated by the
Company’s insolvency, appointment of a conservator, or determination by a regulatory
agency that the Company is insolvent, nor from any transaction initiated by the Company
in regard to converting from a publicly traded company to a privately held company.
	 
	 	 	 	Notwithstanding anything in the Plan to the contrary, a “Change of Control” of the
Company shall not result from the spin-off of Company stock to Synovus Financial Corp.
shareholders.
	 
	 	2.9	 	“Code” means the U.S. Internal Revenue Code of 1986, as amended from time to time.
For purposes of this Plan, references to sections of the Code shall be deemed to include
references to any applicable regulations thereunder and any successor or similar
provision.
	 
	 	2.10	 	“Committee” means the Compensation Committee of the Board or a subcommittee thereof,
or any other committee designated by the Board to administer this Plan. The members of the
Committee shall be appointed from time to time and shall serve at the discretion of the
Board. If the Committee does not exist or cannot function for any reason, the Board may
take any action under the Plan that would otherwise be the responsibility of the
Committee.
	 
	 	2.11	 	“Company” means Total System Services, Inc., a Georgia corporation, and any successor
thereto as provided in Article 19 herein.
	 
	 	2.12	 	“Covered Employee” means any key Employee who is or may become a “Covered Employee,”
as defined in Code Section 162(m), and who is designated, either as an individual Employee
or class of Employees, by the Committee within the shorter of: (a) ninety (90) days after
the beginning of the Performance Period, or (b) twenty-five percent (25%) of the
Performance Period has elapsed, as a “Covered Employee” under this Plan for such
applicable Performance Period.
	 
	 	2.13	 	“Director” means any individual who is a member of the Board of Directors of the
Company.
	 
	 	2.14	 	“Employee” means any individual designated as an employee of the Company, its
Affiliates, and/or its Subsidiaries on the payroll records thereof. An Employee shall not
include any individual during any period he or she is classified or treated by the

3

 

	 	 	 	Company, Affiliate, and/or Subsidiary as an independent contractor, a consultant, or any
employee of an employment, consulting, or temporary agency or any other entity other
than the Company, Affiliate, and/or Subsidiary, without regard to whether such
individual is subsequently determined to have been, or is subsequently retroactively
reclassified as, a common-law employee of the Company, Affiliate, and/or Subsidiary
during such period.
	 
	 	2.15	 	“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to
time, or any successor act thereto.
	 
	 	2.16	 	“Fair Market Value” or “FMV” means a price that is based on the closing price of a
Share reported on the New York Stock Exchange (“NYSE”) or other established stock exchange
(or exchanges) on the applicable date, or an average of trading days, as determined by the
Committee in its discretion. Unless the Committee determines otherwise, Fair Market Value
shall be deemed to be equal to the reported closing price of a Share on the most recent
date on which Shares were publicly traded. In the event Shares are not publicly traded at
the time a determination of their value is required to be made hereunder, the
determination of their Fair Market Value shall be made by the Committee in such manner as
it deems appropriate.
	 
	 	2.17	 	“Freestanding SAR” means a SAR that is granted independently of any Options, as
described in Article 7.
	 
	 	2.18	 	“Full-Value Award” means an Award other than in the form of an ISO, NQSO, or SAR, and
which is settled by the issuance of Shares.
	 
	 	2.19	 	“Grant Price” means the price established at the time of grant of a SAR pursuant to
Article 7, used to determine whether there is any payment due upon exercise of the SAR.
	 
	 	2.20	 	“Incentive Stock Option” or “ISO” means an Option to purchase Shares granted under
Article 6 to an Employee and that is designated as an Incentive Stock Option that is
intended to meet the requirements of Code Section 422 or any successor provision.
	 
	 	2.21	 	“Insider” shall mean an individual who is, on the relevant date, an officer or
Director of the Company, or a more than ten percent (10%) Beneficial Owner of any class of
the Company’s equity securities that is registered pursuant to Section 12 of the Exchange
Act, as determined by the Board in accordance with Section 16 of the Exchange Act.
	 
	 	2.22	 	“Nonemployee Director” means a Director who is not an Employee.
	 
	 	2.23	 	“Nonemployee Director Award” means any NQSO, SAR, or Full-Value Award granted,
whether singly, in combination, or in tandem, to a Participant who is a Nonemployee
Director pursuant to such applicable terms, conditions, and limitations as the Board or
Committee may establish in accordance with this Plan.
	 
	 	2.24	 	“Nonqualified Stock Option” or “NQSO” means an Option that is not intended to meet
the requirements of Code Section 422, or that otherwise does not meet such requirements.

4

 

	 	2.25	 	“Option” means an Incentive Stock Option or a Nonqualified Stock Option, as described
in Article 6.
	 
	 	2.26	 	“Option Price” means the price at which a Share may be purchased by a Participant
pursuant to an Option.
	 
	 	2.27	 	“Other Stock-Based Award” means an equity-based or equity-related Award not otherwise
described by the terms of this Plan, granted pursuant to Article 10.
	 
	 	2.28	 	“Participant” means any eligible individual as set forth in Article 5 to whom an
Award is granted.
	 
	 	2.29	 	“Performance-Based Compensation” with respect to Covered Employees, means
compensation under an Award that is intended to satisfy the requirements of Code Section
162(m) for certain performance-based compensation. Notwithstanding the foregoing, nothing
in this Plan shall be construed to mean that an Award which does not satisfy the
requirements for performance-based compensation under Code Section 162(m) does not
constitute performance-based compensation for other purposes, including Code Section 409A.
	 
	 	2.30	 	“Performance Measures” means measures as described in Article 12 on which the
performance goals are based and which are approved by the Company’s shareholders pursuant
to this Plan in order to qualify Awards as Performance-Based Compensation.
	 
	 	2.31	 	“Performance Period” means the period of time during which the performance goals must
be met in order to determine the degree of payout and/or vesting with respect to an Award.
	 
	 	2.32	 	“Performance Share” means an Award under Article 9 herein and subject to the terms of
this Plan, denominated in Shares, the value of which at the time it is payable is
determined as a function of the extent to which corresponding performance criteria have
been achieved.
	 
	 	2.33	 	“Performance Unit” means an Award under Article 9 herein and subject to the terms of
this Plan, denominated in units, the value of which at the time it is payable is
determined as a function of the extent to which corresponding performance criteria have
been achieved.
	 
	 	2.34	 	“Period of Restriction” means the period when Restricted Stock or Restricted Stock
Units are subject to a substantial risk of forfeiture (based on the passage of time, the
achievement of performance goals, or upon the occurrence of other events as determined by
the Committee, in its discretion), as provided in Article 8.
	 
	 	2.35	 	“Person” shall have the meaning ascribed to such term in Section 3(a)(9) of the
Exchange Act and used in Sections 13(d) and 14(d) thereof, including a “group” as defined
in Section 13(d) thereof.
	 
	 	2.36	 	“Plan” means the Total System Services, Inc. 2008 Omnibus Plan.

5

 

	 	2.37	 	“Plan Year” means the calendar year.
	 
	 	2.38	 	“Restricted Stock” means an Award of Shares granted to a Participant pursuant to
Article 8.
	 
	 	2.39	 	“Restricted Stock Unit” means an Award granted to a Participant pursuant to Article
8, except no Shares are actually awarded to the Participant on the date of grant.
	 
	 	2.40	 	“Share” means a share of common stock of the Company, par value $.10 per share.
	 
	 	2.41	 	“Stock Appreciation Right” or “SAR” means an Award, designated as a SAR, pursuant to
the terms of Article 7 herein.
	 
	 	2.42	 	“Subsidiary” means any corporation or other entity, whether domestic or foreign, in
which the Company has or obtains, directly or indirectly, a proprietary interest of more
than fifty percent (50%) by reason of stock ownership or otherwise.

Article 3. Administration

     3.1 General. The Plan shall be administered by the Committee, subject to this Article 3 and
the other provisions of this Plan. The Committee may employ attorneys, consultants, accountants,
agents, and other individuals or entities, any of which may be an Employee, and the Committee, the
Company, and its officers and Directors shall be entitled to rely upon the advice, opinions, or
valuations of any such persons. All actions taken and all interpretations and determinations made
by the Committee shall be final and binding on the Participants, the Company, and all other
interested individuals.

     3.2 Authority of the Committee. The Committee is authorized and empowered to administer the
Plan and, subject to the provisions of the Plan, shall have full power to (i) designate Employees
and Directors to be recipients of Awards; (ii) determine the type and size of Awards; (iii)
determine the terms and conditions of Awards; (iv) certify satisfaction of performance goals for
purposes of satisfying the requirements of Code Section 162(m); (v) construe and interpret the
terms of the Plan and any Award Agreement or other instrument entered into under the Plan; (vi)
establish, amend, or waive rules and regulations for the Plan’s administration; (vii) subject to
the provisions of Section 4.4, authorize conversion or substitution under the Plan of any or all
outstanding option or other awards held by service providers of an entity acquired by the Company
on terms determined by the Committee (without regard to limitations set forth in Section 6.3 and
7.5); (viii) subject to the provisions of Articles 15 and 17, amend the terms and conditions of any
outstanding Award; (ix) grant Awards as an alternative to, or as the form of payment for, grants or
rights earned or due under compensation plans or similar arrangements of the Company; and (x) make
any other determination and take any other action that it deems necessary or desirable for the
administration of the Plan.

     3.3 Delegation. To the extent permitted by law and applicable rules of a stock exchange, the
Committee may, by resolution, authorize one or more officers of the Company to do one or both of
the following on the same basis as can the Committee: (a) designate Employees to be recipients of
Awards; and (b) determine the type and size of any such Awards; provided, however: (i) the
authority to make Awards to any Nonemployee Director or to any Employee who is considered an
Insider may not be delegated; (ii) the resolution providing such authorization shall set forth the
total

6

 

number of Shares and Awards such officer(s) may grant; and (iii) the officer(s) shall report
periodically to the Committee regarding the nature and scope of the Awards granted pursuant to the
authority delegated.

Article 4. Shares Subject to This Plan and Maximum Awards

     4.1 Number of Shares Available for Awards.

	 	(a)	 	Subject to adjustment as provided in Section 4.4 herein, the maximum
number of Shares available for issuance to Participants under this Plan (the “Share
Authorization”) shall be 17,000,000 Shares.
	 
	 	(b)	 	The maximum number of Shares of the Share Authorization that may be
issued pursuant to ISOs under this Plan shall be 17,000,000.
	 
	 	(c)	 	Subject to adjustment in Section 4.4, the maximum number of Shares of
the Share Authorization that may be issued to Nonemployee Directors shall be
2,000,000 Shares, and no Nonemployee Director may be granted an Award covering more
than 10,000 Shares in any Plan Year, except that this annual limit on Nonemployee
Director Awards shall be increased to 50,000 Shares for any Nonemployee Director
serving as Chairman of the Board; provided, however, that in the Plan Year in which
an individual is first appointed or elected to the Board as a Nonemployee Director,
such individual may be granted an Award covering up to an additional 50,000 Shares
(a “New Nonemployee Director Award”).
	 
	 	(d)	 	Except with respect to a maximum of five percent (5%) of the Share
Authorization, any Full Value Awards which vest on the basis of the Employee’s
continued employment with or provision of service to the Company shall not provide
for vesting which is any more rapid than annual pro rata vesting over a three- (3-)
year period and any Full Value Awards which vest upon the attainment of performance
goals shall provide for a Performance Period of at least twelve (12) months.

     4.2 Share Usage. Shares covered by an Award shall only be counted as used to the extent they
are actually issued. Any Shares related to Awards which terminate by expiration, forfeiture,
cancellation, or otherwise without the issuance of such Shares, are settled in cash in lieu of
Shares, or are exchanged with the Committee’s permission, prior to the issuance of Shares, for
Awards not involving Shares, shall be available again for grant under this Plan. However, the full
number of Stock Appreciation Rights granted that are to be settled by the issuance of Shares shall
be counted against the number of Shares available for award under the Plan, regardless of the
number of Shares actually issued upon settlement of such Stock Appreciation Rights. Further, any
Shares withheld to satisfy tax withholding obligations on Awards issued under the Plan, Shares
tendered to pay the exercise price of Awards under the Plan, and Shares repurchased on the open
market with the proceeds of an Option exercise will no longer be eligible to be returned as
available Shares under the Plan. Any Shares related to Awards which terminate by expiration,
forfeiture, cancellation, or otherwise without the issuance of such Shares, are settled in cash in
lieu of Shares, or are exchanged with the Committee’s permission, prior to the issuance of Shares,
for Awards not involving Shares,

7

 

shall be available again for grant under this Plan. The Shares available for issuance under
this Plan may be authorized and unissued Shares or treasury Shares.

     4.3 Annual Award Limits. Unless and until the Committee determines that an Award to a Covered
Employee shall not be designed to qualify as Performance-Based Compensation, the following limits
(each an “Annual Award Limit” and, collectively, “Annual Award Limits”) shall apply to grants of
such Awards under this Plan:

	 	(a)	 	Options: The maximum aggregate number of Shares subject to Options
granted in any one Plan Year to any one Participant shall be 4,000,000.
	 
	 	(b)	 	SARs: The maximum number of Shares subject to Stock Appreciation Rights
granted in any one Plan Year to any one Participant shall be 4,000,000.
	 
	 	(c)	 	Restricted Stock or Restricted Stock Units: The maximum aggregate grant
with respect to Awards of Restricted Stock or Restricted Stock Units in any one
Plan Year to any one Participant shall be 2,000,000.
	 
	 	(d)	 	Performance Units or Performance Shares: The maximum aggregate Award of
Performance Units or Performance Shares that a Participant may receive in any one
Plan Year shall be 2,000,000 Shares if such Award is payable in Shares, or equal to
the value of 100,000 Shares if such Award is payable in cash or property other than
Shares, determined as of the earlier of the vesting or the payout date, as
applicable.
	 
	 	(e)	 	Cash-Based Awards: The maximum aggregate amount awarded or credited
with respect to Cash-Based Awards to any one Participant in any one Plan Year may
not exceed $2,000,000.00.
	 
	 	(f)	 	Other Stock-Based Awards. The maximum aggregate grant with respect to
Other Stock-Based Awards pursuant to Section 10.2 in any one Plan Year to any one
Participant shall be 2,000,000.

     4.4 Adjustments in Authorized Shares. In the event of any corporate event or transaction
(including, but not limited to, a change in the Shares of the Company or the capitalization of the
Company) such as a merger, consolidation, reorganization, recapitalization, separation, partial or
complete liquidation, stock dividend, stock split, reverse stock split, split up, spin-off, or
other distribution of stock or property of the Company, combination of Shares, exchange of Shares,
dividend in-kind, or other like change in capital structure, number of outstanding Shares or
distribution (other than normal cash dividends) to shareholders of the Company, or any similar
corporate event or transaction, the Committee, in order to prevent dilution or enlargement of
Participants’ rights under this Plan, shall substitute or adjust the number and kind of Shares that
may be issued under this Plan or under particular forms of Awards, the number and kind of Shares
subject to outstanding Awards, the Option Price or Grant Price applicable to outstanding Awards,
the Annual Award Limits, or other value determinations applicable to outstanding Awards, with the
specific adjustments to be determined by the Committee in its sole discretion.

8

 

     The Committee shall make appropriate adjustments to any other terms of any outstanding Awards
under this Plan to reflect such changes or distributions, including modifications of performance
goals and changes in the length of Performance Periods. The determination of the Committee as to
the foregoing adjustments, if any, shall be conclusive and binding on Participants under this Plan.

     Subject to the provisions of Article 17 and notwithstanding anything else herein to the
contrary, without affecting the number of Shares reserved or available hereunder, the Committee may
authorize the issuance or assumption of benefits under this Plan in connection with any merger,
consolidation, acquisition of property or stock, or reorganization upon such terms and conditions
as it may deem appropriate (including, but not limited to, a conversion of equity awards into
Awards under this Plan in a manner consistent with paragraph 53 of FASB Interpretation No. 44),
subject to compliance with the rules under Code Sections 422 and 424, as and where applicable.

Article 5. Eligibility and Participation

     5.1 Eligibility. Individuals eligible to participate in this Plan include all Employees and
Directors.

     5.2 Actual Participation. Subject to the provisions of this Plan, the Committee may, from time
to time in its sole discretion, select from the individuals eligible to participate, those to whom
Awards shall be granted.

Article 6. Stock Options

     6.1 Grant of Options. Subject to the terms and provisions of this Plan, Options may be granted
to Participants in such number, and upon such terms, and at any time and from time to time as shall
be determined by the Committee, in its sole discretion, provided that ISOs may be granted only to
eligible Employees of the Company or of any parent or subsidiary corporation (as permitted under
Code Sections 422 and 424). However, an Employee who is employed by an Affiliate and/or Subsidiary
and is subject to Code Section 409A may only be granted Options to the extent the Affiliate and/or
Subsidiary is part of the Company’s consolidated group for United States federal tax purposes.

     6.2 Award Agreement. Each Option grant shall be evidenced by an Award Agreement that shall
specify the Option Price, the maximum duration of the Option, the number of Shares to which the
Option pertains, the conditions upon which an Option shall become vested and exercisable, and such
other provisions as the Committee shall determine which are not inconsistent with the terms of this
Plan. The Award Agreement also shall specify whether the Option is intended to be an ISO or an
NQSO.

     6.3 Option Price. The Option Price for each grant of an Option under this Plan shall be
determined by the Committee in its sole discretion and shall be specified in the Award Agreement;
provided, however, the Option Price on the date of grant must be at least equal to one hundred
percent (100%) of the FMV of the Shares as determined on the date of grant.

     6.4 Term of Options. Each Option granted to a Participant shall expire at such time as the
Committee shall determine at the time of grant; provided, however, no Option shall be exercisable
later than the tenth (10th) anniversary date of its grant.

9

 

     6.5 Exercise of Options. Options granted under this Article 6 shall be exercisable at such
times and be subject to such restrictions and conditions as the Committee shall in each instance
approve, which terms and restrictions need not be the same for each grant or for each Participant.

     Options granted under this Article 6 shall be exercised by the delivery of a notice of
exercise to the Company or an agent designated by the Company in a form specified or accepted by
the Committee setting forth the number of Shares with respect to which the Option is to be
exercised, accompanied by full payment for the Shares, or by complying with any alternative
exercise procedures the Committee may authorize.

     6.6 Payment. A condition of the issuance of the Shares as to which an Option shall be
exercised shall be the payment of the Option Price. The Option Price of any Option shall be payable
to the Company in full either: (a) in cash or its equivalent; (b) by tendering (either by actual
delivery or attestation) previously acquired Shares having an aggregate Fair Market Value at the
time of exercise equal to the Option Price (provided that except as otherwise determined by the
Committee, the Shares that are tendered must have been held by the Participant for at least six (6)
months (or such other period, if any, as the Committee may permit) prior to their tender to satisfy
the Option Price if acquired under this Plan or any other compensation plan maintained by the
Company or have been purchased on the open market); (c) by a cashless (broker-assisted) exercise;
(d) by a combination of (a), (b), and/or (c); or (e) any other method approved or accepted by the
Committee in its sole discretion.

     Subject to any governing rules or regulations, as soon as practicable after receipt of written
notification of exercise and full payment (including satisfaction of any applicable tax
withholding), the Company shall deliver to the Participant evidence of book entry Shares, or upon
the Participant’s request, Share certificates in an appropriate amount based upon the number of
Shares purchased under the Option(s).

     Unless otherwise determined by the Committee, all payments under all of the methods indicated
above shall be paid in United States dollars.

     6.7 Restrictions on Share Transferability. The Committee may impose such restrictions on any
Shares acquired pursuant to the exercise of an Option granted under this Article 6 as it may deem
advisable, including, without limitation, minimum holding period requirements, restrictions under
applicable federal securities laws, under the requirements of any stock exchange or market upon
which such Shares are then listed and/or traded, or under any blue sky or state securities laws
applicable to such Shares.

     6.8 Termination of Employment/Service. Each Participant’s Award Agreement shall set forth the
extent to which the Participant shall have the right to exercise the Option following termination
of the Participant’s employment or provision of services to the Company, its Affiliates, and/or its
Subsidiaries, as the case may be. Such provisions shall be determined in the sole discretion of
the Committee, shall be included in the Award Agreement entered into with each Participant, need
not be uniform among all Options issued pursuant to this Article 6, and may reflect distinctions
based on the reasons for termination.

10

 

Article 7. Stock Appreciation Rights

     7.1 Grant of SARs. Subject to the terms and conditions of this Plan, Freestanding SARs may be
granted to Participants at any time and from time to time as shall be determined by the Committee.
However, an Employee who is employed by an Affiliate and/or Subsidiary and is subject to Code
Section 409A may only be granted SARs to the extent the Affiliate and/or Subsidiary is part of the
Company’s consolidated group for United States federal tax purposes.

     Subject to the terms and conditions of this Plan, the Committee shall have complete discretion
in determining the number of SARs granted to each Participant and, consistent with the provisions
of this Plan, in determining the terms and conditions pertaining to such SARs.

     The Grant Price for each grant of a Freestanding SAR shall be determined by the Committee and
shall be specified in the Award Agreement; provided, however, the Grant Price on the date of grant
must be at least equal to one hundred percent (100%) of the FMV of the Shares as determined on the
date of grant.

     7.2 SAR Agreement. Each SAR Award shall be evidenced by an Award Agreement that shall specify
the Grant Price, the term of the SAR, and such other provisions as the Committee shall determine.

     7.3 Term of SAR. The term of a SAR granted under this Plan shall be determined by the
Committee, in its sole discretion, and except as determined otherwise by the Committee and
specified in the SAR Award Agreement, no SAR shall be exercisable later than the tenth
(10th) anniversary date of its grant.

     7.4 Exercise of Freestanding SARs. Freestanding SARs may be exercised upon whatever terms and
conditions the Committee, in its sole discretion, imposes.

     7.5 Settlement of SAR Amount. Upon the exercise of a SAR, a Participant shall be entitled to
receive payment from the Company in an amount determined by multiplying:

	 	(a)	 	The excess of the Fair Market Value of a Share on the date of exercise
over the Grant Price; by
	 
	 	(b)	 	The number of Shares with respect to which the SAR is exercised.

     At the discretion of the Committee, the payment upon SAR exercise may be in cash, Shares, or
any combination thereof, or in any other manner approved by the Committee in its sole discretion.
The Committee’s determination regarding the form of SAR payout shall be set forth in the Award
Agreement pertaining to the grant of the SAR.

     7.6 Termination of Employment/Service. Each Award Agreement shall set forth the extent to
which the Participant shall have the right to exercise the SAR following termination of the
Participant’s employment with or provision of services to the Company, its Affiliates, and/or its
Subsidiaries, as the case may be. Such provisions shall be determined in the sole discretion of the
Committee, shall be included in the Award Agreement entered into with Participants, need not be
uniform among all SARs issued pursuant to this Plan, and may reflect distinctions based on the
reasons for termination.

11

 

     7.7 Other Restrictions. The Committee shall impose such other conditions and/or restrictions
on any Shares received upon exercise of a SAR granted pursuant to this Plan as it may deem
advisable or desirable. These restrictions may include, but shall not be limited to, a requirement
that the Participant hold the Shares received upon exercise of a SAR for a specified period of
time.

Article 8. Restricted Stock and Restricted Stock Units

     8.1 Grant of Restricted Stock or Restricted Stock Units. Subject to the terms and provisions
of this Plan, the Committee, at any time and from time to time, may grant Shares of Restricted
Stock and/or Restricted Stock Units to Participants in such amounts as the Committee shall
determine. Restricted Stock Units shall be similar to Restricted Stock except that no Shares are
actually awarded to the Participant on the date of grant.

     8.2 Restricted Stock or Restricted Stock Unit Agreement. Each Restricted Stock and/or
Restricted Stock Unit grant shall be evidenced by an Award Agreement that shall specify the
Period(s) of Restriction, the number of Shares of Restricted Stock or the number of Restricted
Stock Units granted, and such other provisions as the Committee shall determine.

     8.3 Other Restrictions. The Committee shall impose such other conditions and/or restrictions
on any Shares of Restricted Stock or Restricted Stock Units granted pursuant to this Plan as it may
deem advisable including, without limitation, a requirement that Participants pay a stipulated
purchase price for each Share of Restricted Stock or each Restricted Stock Unit, restrictions based
upon the achievement of specific performance goals, time-based restrictions on vesting following
the attainment of the performance goals, time-based restrictions, and/or restrictions under
applicable laws or under the requirements of any stock exchange or market upon which such Shares
are listed or traded, or holding requirements or sale restrictions placed on the Shares by the
Company upon vesting of such Restricted Stock or Restricted Stock Units.

     To the extent deemed appropriate by the Committee, the Company may retain the certificates
representing Shares of Restricted Stock in the Company’s possession until such time as all
conditions and/or restrictions applicable to such Shares have been satisfied or lapse.

     Except as otherwise provided in this Article 8, Shares of Restricted Stock covered by each
Restricted Stock Award shall become freely transferable by the Participant after all conditions and
restrictions applicable to such Shares have been satisfied or lapse (including satisfaction of any
applicable tax withholding obligations), and Restricted Stock Units shall be paid in cash, Shares,
or a combination of cash and Shares as the Committee, in its sole discretion, shall determine.

     8.4 Certificate Legend. In addition to any legends placed on certificates pursuant to Section
8.3, each certificate representing Shares of Restricted Stock granted pursuant to this Plan may
bear a legend such as the following or as otherwise determined by the Committee in its sole
discretion:

“The transferability of this certificate and the shares of stock represented hereby are
subject to the terms and conditions (including forfeiture) of the Total System Services,
Inc. 2008 Omnibus Plan and a Restricted Stock Award Agreement entered into between the
registered owner and Total System Services, Inc. Copies of such Plan and Agreement

12

 

are
on file in the offices of Total System Services, Inc., 1600 First Avenue, Columbus,
Georgia 31902.”

     8.5 Voting Rights. Unless otherwise determined by the Committee and set forth in a
Participant’s Award Agreement, to the extent permitted or required by law, as determined by the
Committee, Participants holding Shares of Restricted Stock granted hereunder may be granted the
right to exercise full voting rights with respect to those Shares during the Period of Restriction.
A Participant shall have no voting rights with respect to any Restricted Stock Units granted
hereunder.

     8.6 Termination of Employment/Service. Each Award Agreement shall set forth the extent to
which the Participant shall have the right to retain Restricted Stock and/or Restricted Stock Units
following termination of the Participant’s employment with or provision of services to the Company,
its Affiliates, and/or its Subsidiaries, as the case may be. Such provisions shall be determined in
the sole discretion of the Committee, shall be included in the Award Agreement entered into with
each Participant, need not be uniform among all Shares of Restricted Stock or Restricted Stock
Units issued pursuant to this Plan, and may reflect distinctions based on the reasons for
termination.

     8.7 Section 83(b) Election. The Committee may provide in an Award Agreement that the Award of
Restricted Stock is conditioned upon the Participant making or refraining from making an election
with respect to the Award under Code Section 83(b). If a Participant makes an election pursuant to
Code Section 83(b) concerning a Restricted Stock Award, the Participant shall be required to file
promptly a copy of such election with the Company.

Article 9. Performance Units/Performance Shares

     9.1 Grant of Performance Units/Performance Shares. Subject to the terms and provisions of this
Plan, the Committee, at any time and from time to time, may grant Performance Units and/or
Performance Shares to Participants in such amounts and upon such terms as the Committee shall
determine.

     9.2 Value of Performance Units/Performance Shares. Each Performance Unit shall have an initial
value that is established by the Committee at the time of grant. Each Performance Share shall have
an initial value equal to the Fair Market Value of a Share on the date of grant. The Committee
shall set performance goals in its discretion which, depending on the extent to which they are met,
will determine the value and/or number of Performance Units/Performance Shares that will be paid
out to the Participant.

     9.3 Earning of Performance Units/Performance Shares. Subject to the terms of this Plan, after
the applicable Performance Period has ended, the holder of Performance Units/Performance Shares
shall be entitled to receive payout on the value and number of Performance Units/Performance Shares
earned by the Participant over the Performance Period, to be determined as a function of the extent
to which the corresponding performance goals have been achieved.

     9.4 Form and Timing of Payment of Performance Units/Performance Shares. Payment of earned
Performance Units/Performance Shares shall be as determined by the Committee and as evidenced in
the Award Agreement. Subject to the terms of this Plan, the Committee, in its sole discretion, may
pay earned Performance Units/Performance Shares in the form of cash or in Shares (or in a
combination thereof) equal to the value of the earned Performance Units/Performance Shares

13

 

at the
close of the applicable Performance Period, or as soon as practicable after the end of the
Performance Period. Any Shares may be granted subject to any restrictions deemed appropriate by
the Committee. The determination of the Committee with respect to the form of payout of such
Awards shall be set forth in the Award Agreement pertaining to the grant of the Award.

     9.5 Termination of Employment/Service. Each Award Agreement shall set forth the extent to
which the Participant shall have the right to retain Performance Units and/or Performance Shares
following termination of the Participant’s employment with or provision of services to the Company,
its Affiliates, and/or its Subsidiaries, as the case may be. Such provisions shall be determined in
the sole discretion of the Committee, shall be included in the Award Agreement entered into with
each Participant, need not be uniform among all Awards of Performance Units or Performance Shares
issued pursuant to this Plan, and may reflect distinctions based on the reasons for termination.

Article 10. Cash-Based Awards and Other Stock-Based Awards

     10.1 Grant of Cash-Based Awards. Subject to the terms and provisions of the Plan, the
Committee, at any time and from time to time, may grant Cash-Based Awards to Participants in such
amounts and upon such terms as the Committee may determine.

     10.2 Other Stock-Based Awards. The Committee may grant other types of equity-based or
equity-related Awards not otherwise described by the terms of this Plan (including the grant or
offer for sale of unrestricted Shares) in such amounts and subject to such terms and conditions as
the Committee shall determine. Such Awards may involve the transfer of actual Shares to
Participants, or payment in cash or otherwise of amounts based on the value of Shares, and may
include, without limitation, Awards designed to comply with or take advantage of the applicable
local laws of jurisdictions other than the United States.

     10.3 Value of Cash-Based and Other Stock-Based Awards. Each Cash-Based Award shall specify a
payment amount or payment range as determined by the Committee. Each Other Stock-Based Award shall
be expressed in terms of Shares or units based on Shares, as determined by the Committee. The
Committee may establish performance goals in its discretion. If the Committee exercises its
discretion to establish performance goals, the number and/or value of Cash-Based Awards or Other
Stock-Based Awards that will be paid out to the Participant will depend on the extent to which the
performance goals are met.

     10.4 Payment of Cash-Based Awards and Other Stock-Based Awards. Payment, if any, with respect
to a Cash-Based Award or any Other Stock-Based Award shall be made in accordance with the terms of
the Award, in cash or Shares as the Committee determines.

     10.5 Termination of Employment/Service. The Committee shall determine the extent to which the
Participant shall have the right to receive Cash-Based Awards or Other Stock-Based Awards following
termination of the Participant’s employment with or provision of services to the Company, its
Affiliates, and/or its Subsidiaries, as the case may be. Such provisions shall be determined in the
sole discretion of the Committee, such provisions may be included in an agreement entered into with
each Participant, but need not be uniform among all Awards of Cash-Based Awards or Other
Stock-Based Awards issued pursuant to the Plan, and may reflect distinctions based on the reasons
for termination.

14

 

Article 11. Transferability of Awards

     11.1 Transferability. Except as provided in Section 11.2 below, during a Participant’s
lifetime, his or her Awards shall be exercisable only by the Participant. Awards shall not be
transferable other than by will or the laws of descent and distribution; no Awards shall be
subject, in whole or in part, to attachment, execution, or levy of any kind; and any purported
transfer in violation hereof shall be null and void. The Committee may establish such procedures as
it deems appropriate for a Participant to designate a beneficiary to whom any amounts payable or
Shares deliverable in the event of, or following, the Participant’s death may be provided.

     11.2 Committee Action. The Committee may, in its discretion, determine that notwithstanding
Section 11.1, any or all Awards (other than ISOs) shall be transferable to and exercisable by such
transferees, and subject to such terms and conditions, as the Committee may deem appropriate;
provided, however, no Award may be transferred for value (as defined in the General Instructions to
Form S-8).

Article 12. Performance Measures

     12.1 Performance Measures. The performance goals upon which the payment or vesting of an Award
to a Covered Employee that is intended to qualify as Performance-Based Compensation shall be
limited to the following Performance Measures:

	 	(a)	 	Net earnings or net income (before or after taxes);
	 
	 	(b)	 	Earnings per share;
	 
	 	(c)	 	Net sales or revenue growth;
	 
	 	(d)	 	Net operating profit;
	 
	 	(e)	 	Return measures (including, but not limited to, return on assets,
capital, invested capital, equity, sales, or revenue);
	 
	 	(f)	 	Cash flow (including, but not limited to, operating cash flow, free
cash flow, cash generation, cash flow return on equity, and cash flow return on
investment);
	 
	 	(g)	 	Earnings before or after taxes, interest, depreciation, and/or
amortization;
	 
	 	(h)	 	Gross or operating margins;

	 
	 	(i)	 	Productivity ratios;
	 
	 	(j)	 	Share price (including, but not limited to, growth measures and total
shareholder return);
	 
	 	(k)	 	Expense targets;
	 
	 	(l)	 	Margins;
	 
	 	(m)	 	Operating efficiency;
	 
	 	(n)	 	Market share;
	 
	 	(o)	 	Customer satisfaction;
	 
	 	(p)	 	Unit volume;
	 
	 	(q)	 	Working capital targets and change in working capital;
	 
	 	(r)	 	Economic value added or EVA® (net operating profit after tax
minus the sum of capital multiplied by the cost of capital);
	 
	 	(s)	 	Asset growth;
	 
	 	(t)	 	Number of cardholder, merchant and/or other customer accounts processed
or converted; and
	 
	 	(u)	 	Successful negotiation or renewal of contracts with new or existing
customers.

15

 

     Any Performance Measure(s) may be used to measure the performance of the Company, Subsidiary,
and/or Affiliate as a whole or any business unit of the Company, Subsidiary, and/or Affiliate or
any combination thereof, as the Committee may deem appropriate, or any of the above Performance
Measures as compared to the performance of a group of comparator companies, or published or special
index that the Committee, in its sole discretion, deems appropriate, or the Company may select
Performance Measure (j) above as compared to various stock market indices. The Committee also has
the authority to provide for accelerated vesting of any Award based on the achievement of
performance goals pursuant to the Performance Measures specified in this Article 12.

     12.2 Evaluation of Performance. The Committee may provide in any such Award that any
evaluation of achievement of Performance Measures may include or exclude any of the following
events that occur during a Performance Period: (a) asset write-downs, (b) litigation or claim
judgments or settlements, (c) the effect of changes in tax laws, accounting principles, or other
laws or provisions affecting reported results, (d) any reorganization and restructuring programs,
(e) extraordinary nonrecurring items as described in Accounting Principles Board Opinion No. 30
and/or in management’s discussion and analysis of financial condition and results of operations
appearing in the Company’s annual report to shareholders for the applicable year, (f) acquisitions
or divestitures, and (g) foreign exchange gains and losses. To the extent such inclusions or
exclusions affect Awards to Covered Employees, they shall be prescribed in a form that meets the
requirements of Code Section 162(m) for deductibility.

     12.3 Adjustment of Performance-Based Compensation. Awards that are intended to qualify as
Performance-Based Compensation may not be adjusted upward. The Committee shall retain the
discretion to adjust such Awards downward, either on a formula or discretionary basis, or any
combination, as the Committee determines.

     12.4 Committee Discretion. In the event that applicable tax and/or securities laws change to
permit Committee discretion to alter the governing Performance Measures without obtaining
shareholder approval of such changes, the Committee shall have sole discretion to make such changes
without obtaining shareholder approval. In addition, in the event that the Committee determines
that it is advisable to grant Awards that shall not qualify as Performance-Based Compensation, the
Committee may make such grants without satisfying the requirements of Code Section 162(m) and base
vesting on Performance Measures other than those set forth in Section 12.1.

Article 13. Nonemployee Director Awards

     From time to time, the Board shall set the amount(s) and type(s) of equity awards that shall
be granted to all Nonemployee Directors on a periodic, nondiscriminatory basis pursuant to the
Plan, as well as any additional amount(s), if any, to be awarded, also on a periodic,
nondiscriminatory basis, based on each of the following: (i) the number of Board committees on
which a Nonemployee Director serves; (ii) service of a Nonemployee Director as the chair of a Board
committee; (iii) service of a Nonemployee Director as Chairman of the Board; or (iv) the initial
selection or appointment of an individual to the Board as a Nonemployee Director. Subject to the
foregoing, the Board shall grant such Awards to Nonemployee Directors, as it shall from time to
time determine.

Article 14. Dividends and Dividend Equivalents

     Any Participant selected by the Committee may be granted dividends or dividend equivalents
based on the dividends declared on Shares that are subject to any Award, to be credited as of

16

 

dividend payment dates, during the period between the date the Award is granted and the date
the Award is exercised, vests, or expires, as determined by the Committee. The dividends or
dividend equivalents may be subject to any limitations and/or restrictions determined by the
Committee. Such dividend equivalents shall be converted to cash or additional Shares by such
formula and at such time and subject to such limitations as may be determined by the Committee.

Article 15. Change of Control

     Notwithstanding any other provision of the Plan to the contrary, unless the Committee
specifies otherwise in an Award Agreement, in the event of a Change of Control: (i) any Options
and Stock Appreciation Rights which are outstanding immediately prior to the date such Change of
Control is determined to have occurred, and which are not then exercisable and vested, shall become
fully exercisable and vested to the full extent of the original grant; (ii) the restrictions and
deferral limitations applicable to any Restricted Stock shall lapse, and such Restricted Stock
shall become free of all restrictions and limitations and become fully vested and transferable to
the full extent of the original grant; and (iii) the restrictions and deferral limitations and
other conditions applicable to any other Awards under the Plan shall lapse, and such other Awards
shall become free of all restrictions, limitations or conditions and become fully vested and
transferable to the full extent of the original grant.

Article 16. Rights of Participants

     16.1 Employment/Service. Nothing in this Plan or an Award Agreement shall interfere with or
limit in any way the right of the Company, its Affiliates, and/or its Subsidiaries to terminate any
Participant’s employment or service on the Board or to the Company at any time or for any reason
not prohibited by law, nor confer upon any Participant any right to continue his employment or
service as a Director for any specified period of time.

     Neither an Award nor any benefits arising under this Plan shall constitute an employment
contract with the Company, its Affiliates, and/or its Subsidiaries and, accordingly, subject to
Articles 3 and 17, this Plan and the benefits hereunder may be terminated at any time in the sole
and exclusive discretion of the Committee without giving rise to any liability on the part of the
Company, its Affiliates, and/or its Subsidiaries.

     16.2 Participation. No individual shall have the right to be selected to receive an Award
under this Plan or, having been so selected, to be selected to receive a future Award.

     16.3 Rights as a Shareholder. Except as otherwise provided herein or in any Award Agreement, a
Participant shall have none of the rights of a shareholder with respect to Shares covered by any
Award until the Participant becomes the record holder of such Shares.

Article 17. Amendment, Modification, Suspension, and Termination

     17.1 Amendment, Modification, Suspension, and Termination. Subject to Section 17.3, the
Committee may, at any time and from time to time, alter, amend, modify, suspend, or terminate this
Plan and any Award Agreement in whole or in part; provided, however, that without the prior
approval of the Company’s shareholders and except as provided in Section 4.4, Options or SARs
issued under this Plan will not be repriced, replaced, repurchased for cash when the Fair Market
Value of a Share is lower than the Option Price of a previously granted Option or the Grant Price
of a previously granted SAR, or regranted through cancellation, or by lowering the Option Price of
a

17

 

previously granted Option or the Grant Price of a previously granted SAR, and no material
amendment of this Plan shall be made without shareholder approval if shareholder approval is
required by law, regulation, or stock exchange rule.

     17.2 Adjustment of Awards Upon the Occurrence of Certain Unusual or Nonrecurring Events. The
Committee shall make adjustments in the terms and conditions of, and the criteria included in,
Awards in recognition of unusual or nonrecurring events, other than those described in Section 4.4
hereof, affecting the Company or the financial statements of the Company or of changes in
applicable laws, regulations, or accounting principles, whenever the Committee determines that such
adjustments are appropriate in order to prevent unintended dilution or enlargement of the benefits
or potential benefits intended to be made available under this Plan. The determination of the
Committee as to the foregoing adjustments, if any, shall be conclusive and binding on Participants
under this Plan.

     17.3 Awards Previously Granted. Notwithstanding any other provision of this Plan to the
contrary (other than Section 17.4), no termination, amendment, suspension, or modification of this
Plan or an Award Agreement shall adversely affect in any material way any Award previously granted
under this Plan, without the written consent of the Participant holding such Award.

     17.4 Amendment to Conform to Law. Notwithstanding any other provision of this Plan to the
contrary, the Board of Directors may amend the Plan or an Award Agreement, to take effect
retroactively or otherwise, as deemed necessary or advisable for the purpose of conforming the Plan
or an Award Agreement to any present or future law relating to plans of this or similar nature
(including, but not limited to, Code Section 409A), and to the administrative regulations and
rulings promulgated thereunder.

Article 18. Withholding

     18.1 Tax Withholding. The Company shall have the power and the right to deduct or withhold, or
require a Participant to remit to the Company, the minimum statutory amount to satisfy federal,
state, and local taxes, domestic or foreign, required by law or regulation to be withheld with
respect to any taxable event arising as a result of this Plan.

     18.2 Share Withholding. With respect to withholding required upon the exercise of Options or
SARs, upon the lapse of restrictions on Restricted Stock and Restricted Stock Units, or upon the
achievement of performance goals related to Performance Shares, or any other taxable event arising
as a result of an Award granted hereunder, Participants may elect, subject to the approval of the
Committee, to satisfy the withholding requirement, in whole or in part, by having the Company
withhold Shares having a Fair Market Value on the date the tax is to be determined equal to the
minimum statutory total tax that could be imposed on the transaction. All such elections shall be
irrevocable, made in writing, and signed by the Participant, and shall be subject to any
restrictions or limitations that the Committee, in its sole discretion, deems appropriate.

Article 19. Successors

     All obligations of the Company under this Plan with respect to Awards granted hereunder shall
be binding on any successor to the Company, whether the existence of such successor is the result
of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all
of the business and/or assets of the Company.

18

 

Article 20. General Provisions

     20.1 Forfeiture Events.

	 	(a)	 	The Committee may specify in an Award Agreement that the Participant’s
rights, payments, and benefits with respect to an Award shall be subject to
reduction, cancellation, forfeiture, or recoupment upon the occurrence of certain
specified events, in addition to any otherwise applicable vesting or performance
conditions of an Award. Such events may include, but shall not be limited to,
termination of employment for cause, termination of the Participant’s provision of
services to the Company, Affiliate, and/or Subsidiary, violation of material
Company, Affiliate, and/or Subsidiary policies, breach of noncompetition,
confidentiality, or other restrictive covenants that may apply to the Participant,
or other conduct by the Participant that is detrimental to the business or
reputation of the Company, its Affiliates, and/or its Subsidiaries.
	 
	 	(b)	 	If the Company is required to prepare an accounting restatement due to
the material noncompliance of the Company, as a result of misconduct, with any
financial reporting requirement under the securities laws, any Participant who is
subject to automatic forfeiture under Section 304 of the Sarbanes-Oxley Act of 2002
shall reimburse the Company the amount of any payment in settlement of an Award
earned or accrued during the twelve (12) month period following the first public
issuance or filing with the United States Securities and Exchange Commission
(whichever just occurred) of the financial document embodying such financial
reporting requirement.
	 
	 	 	 	In addition, in the event of an accounting restatement, the Committee in its sole
and exclusive discretion may require that any Participant reimburse the Company
all or part of the amount of any payment in settlement of any Award granted
hereunder.

     20.2 Legend. The certificates for Shares may include any legend that the Committee deems
appropriate to reflect any restrictions on transfer of such Shares.

     20.3 Gender and Number. Except where otherwise indicated by the context, any masculine term
used herein also shall include the feminine, the plural shall include the singular, and the
singular shall include the plural.

     20.4 Severability. In the event any provision of this Plan shall be held illegal or invalid
for any reason, the illegality or invalidity shall not affect the remaining parts of this Plan, and
this Plan shall be construed and enforced as if the illegal or invalid provision had not been
included.

     20.5 Requirements of Law. The granting of Awards and the issuance of Shares under this Plan
shall be subject to all applicable laws, rules, and regulations, and to such approvals by any
governmental agencies, the NYSE or other national securities exchanges as may be required.

     20.6 Delivery of Title. The Company shall have no obligation to issue or deliver evidence of
title for Shares issued under this Plan prior to:

19

 

	 	(a)	 	Obtaining any approvals from governmental agencies that the Company
determines are necessary or advisable; and
	 
	 	(b)	 	Completion of any registration or other qualification of the Shares
under any applicable national or foreign law or ruling of any governmental body
that the Company determines to be necessary or advisable.

     20.7 Inability to Obtain Authority. The inability of the Company to obtain authority from any
regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to be
necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any
liability in respect of the failure to issue or sell such Shares as to which such requisite
authority shall not have been obtained.

     20.8 Investment Representations. The Committee may require any individual receiving Shares
pursuant to an Award under this Plan to represent and warrant in writing that the individual is
acquiring the Shares for investment and without any present intention to sell or distribute such
Shares.

     20.9 Employees Based Outside of the United States. Notwithstanding any provision of this Plan
to the contrary, in order to comply with the laws in other countries in which the Company, its
Affiliates, and/or its Subsidiaries operate or have Employees or Directors, the Committee, in its
sole discretion, shall have the power and authority to:

	 	(a)	 	Determine which Affiliates and Subsidiaries shall be covered by this
Plan.
	 
	 	(b)	 	Determine which Employees or Directors outside the United States are
eligible to participate in this Plan.
	 
	 	(c)	 	Modify the terms and conditions of any Award granted to Employees or
Directors outside the United States to comply with applicable foreign laws.
	 
	 	(d)	 	Establish subplans and modify exercise procedures and other terms and
procedures, to the extent such actions may be necessary or advisable. Any subplans
and modifications to Plan terms and procedures established under this Section 20.9
by the Committee shall be attached to this Plan document as appendices.
	 
	 	(e)	 	Take any action, before or after an Award is made, that it deems
advisable to obtain approval or comply with any necessary local government
regulatory exemptions or approvals.

     Notwithstanding the above, the Committee may not take any actions hereunder, and no Awards
shall be granted that would violate applicable law.

     20.10 Uncertificated Shares. To the extent that this Plan provides for issuance of
certificates to reflect the transfer of Shares, the transfer of such Shares may be effected on a
noncertificated basis, to the extent not prohibited by applicable law or the rules of any stock
exchange.

20

 

     20.11 Unfunded Plan. Participants shall have no right, title, or interest whatsoever in or to
any investments that the Company and/or its Subsidiaries and/or its Affiliates may make to aid it
in meeting its obligations under this Plan. Nothing contained in this Plan, and no action taken
pursuant to its provisions, shall create or be construed to create a trust of any kind, or a
fiduciary relationship between the Company and any Participant, beneficiary, legal representative,
or any other individual. To the extent that any individual acquires a right to receive payments
from the Company, its Subsidiaries, and/or its Affiliates under this Plan, such right shall be no
greater than the right of an unsecured general creditor of the Company, a Subsidiary, or an
Affiliate, as the case may be. All payments to be made hereunder shall be paid from the general
funds of the Company, a Subsidiary, or an Affiliate, as the case may be, and no special or separate
fund shall be established and no segregation of assets shall be made to assure payment of such
amounts except as expressly set forth in this Plan.

     20.12 No Fractional Shares. No fractional Shares shall be issued or delivered pursuant to this
Plan or any Award. The Committee shall determine whether cash, Awards, or other property shall be
issued or paid in lieu of fractional Shares or whether such fractional Shares or any rights thereto
shall be forfeited or otherwise eliminated.

     20.13 Retirement and Welfare Plans. Neither Awards made under this Plan nor Shares or cash
paid pursuant to such Awards, except pursuant to Covered Employee annual incentive awards, may be
included as “compensation” for purposes of computing the benefits payable to any Participant under
the Company’s or any Subsidiary’s or Affiliate’s retirement plans (both qualified and nonqualified)
or welfare benefit plans unless such other plan expressly provides that such compensation shall be
taken into account in computing a Participant’s benefit.

     20.14 Deferred Compensation. Notwithstanding any other provision of the Plan, the Committee
may cause any Award to comply with or to be exempt from Section 409A of the Code and may interpret
this Plan in any manner necessary to ensure that Awards under the Plan comply with or are exempt
from Section 409A of the Code. In the event that the Committee determines that an Award should
comply with or be exempt from Section 409A and that a Plan provision or Award Agreement provision
is necessary to ensure that such Award complies with or is exempt from Section 409A of the Code,
such provision shall be deemed included in the Plan or such Award Agreement.

     20.15 Nonexclusivity of This Plan. The adoption of this Plan shall not be construed as
creating any limitations on the power of the Board or Committee to adopt such other compensation
arrangements as it may deem desirable for any Participant.

     20.16 No Constraint on Corporate Action. Nothing in this Plan shall be construed to: (a)
limit, impair, or otherwise affect the Company’s or a Subsidiary’s or an Affiliate’s right or power
to make adjustments, reclassifications, reorganizations, or changes of its capital or business
structure, or to merge or consolidate, or dissolve, liquidate, sell, or transfer all or any part of
its business or assets; or, (b) limit the right or power of the Company or a Subsidiary or an
Affiliate to take any action which such entity deems to be necessary or appropriate.

     20.17 Governing Law. The Plan and each Award Agreement shall be governed by the laws of the
State of Georgia, excluding any conflicts or choice of law rule or principle that might otherwise
refer construction or interpretation of this Plan to the substantive law of another jurisdiction.
Unless

21

 

otherwise provided in the Award Agreement, recipients of an Award under this Plan are deemed
to submit to the exclusive jurisdiction and venue of the federal or state courts of Georgia to
resolve any and all issues that may arise out of or relate to this Plan or any related Award
Agreement.

     20.18 Indemnification. Subject to requirements of Georgia law, each individual who is or shall
have been a member of the Board, or a committee appointed by the Board, or an officer of the
Company to whom authority was delegated in accordance with Article 3, shall be indemnified and held
harmless by the Company against and from any loss, cost, liability, or expense that may be imposed
upon or reasonably incurred by the Participant in connection with or resulting from any claim,
action, suit, or proceeding to which the Participant may be a party or in which the Participant may
be involved by reason of any action taken or failure to act under this Plan and against and from
any and all amounts paid by the Participant in settlement thereof, with the Company’s approval, or
paid by the Participant in satisfaction of any judgment in any such action, suit, or proceeding
against the Participant, provided the Participant shall give the Company an opportunity, at its own
expense, to handle and defend the same before the Participant undertakes to handle and defend it on
the Participant’s own behalf, unless such loss, cost, liability, or expense is a result of the
Participant’s own willful misconduct or except as expressly provided by statute.

     The foregoing right of indemnification shall not be exclusive of any other rights of
indemnification to which such individuals may be entitled under the Company’s Certificate of
Incorporation or Bylaws, as a matter of law, or otherwise, or any power that the Company may have
to indemnify them or hold them harmless.

22

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