Document:

exv4w3

Exhibit 4.3

ACI Worldwide, Inc.

Amended and Restated

Deferred Compensation Plan

     1. Purpose. Effective as of October 1, 2010, ACI Worldwide, Inc. (the
“Company”), establishes this Amended and Restated Deferred Compensation Plan (the “Plan”) for the
purpose of allowing members of the Company’s senior management to save for their retirement on a
tax-deferred basis. This Plan is intended to constitute a “nonqualified deferred compensation
plan,” within the meaning of Section 409A(d)(1) of the Internal Revenue Code of 1986, as amended
(the “Code”), and it shall be construed and administered in a manner consistent therewith.

     2. Definitions. Unless otherwise clearly apparent from the context, the following
terms shall have the indicated meanings under this Plan:

     (a) “Account” shall mean a bookkeeping account established in a
Participant’s name for the sole purpose of measuring the benefit payable to the
Participant or the Participant’s Beneficiary under those circumstances described in
this Plan.

     (b) “Account Balance” shall mean, with respect to any Participant, the
sum of all Deferrals and/or Company Contributions credited to his or her Account for
all years the Participant has participated in this Plan, as adjusted for any
Earnings on such amounts, and as reduced for any prior distributions to the
Participant or the Participant’s Beneficiary.

     (c) “Beneficiary” shall mean the person or persons entitled to receive
any benefit payable under this Plan following a Participant’s death. Such
Beneficiary shall be designated in accordance with Paragraph 13.

     (d) “CEO” shall mean the Chief Executive Officer of the Company. The
CEO may delegate to one or more individuals any or all of the administrative duties
assigned to the CEO under the Plan.

     (e) “Change in Control” shall have the meaning given such term in the
Company’s then current form of Change in Control Employment Agreement filed by the
Company with the Securities and Exchange Commission.

     (f) “Code” shall mean the Internal Revenue Code of 1986, as amended
from time to time.

     (g) “Committee” shall mean the Compensation and Leadership Development
Committee of the Company’s Board of Directors.

     (h) “Company” shall mean ACI Worldwide, Inc. a Delaware corporation .

 

 

     (i) “Company Contribution” means any amount that the Company credits to
a Participant’s Account under the Plan as a discretionary employer contribution for
a given Plan Year, in accordance with Paragraph 5. Company Contributions shall not
be considered “Compensation” for purposes of this Plan or for purposes of any other
qualified or nonqualified plan of the Company or its subsidiaries.

     (j) “Compensation” shall mean, with respect to a Plan Year, all Regular
Compensation and Performance-Based Compensation earned by a Participant during that
Plan Year in return for services performed for the Company. Such amount shall
include any Deferrals under this Plan, but shall exclude any elective deferrals
excluded from the Participant’s gross income under any of Code Sections 125,
132(f)(4), or 401(k).

     (k) “Deferrals” shall mean the annual amount of Compensation a
Participant elects to defer under Paragraph 4.

     (l) “Disability” shall mean any medically determinable physical or
mental impairment of a Participant that can be expected to result in death or to
last for a continuous period of not less than twelve months, provided that such
impairment results in the Participant either:

     (i) Being unable to engage in any substantial gainful activity, or

     (ii) Receiving income replacement benefits for a period of at least
three months under an accident and health plan covering employees of the
Company or its subsidiaries.

     (m) “Earnings” shall mean the rate of return credited to a
Participant’s Account under Paragraph 6.

     (n) “ERISA” shall mean the Employee Retirement Income Security Act of
1974, as amended from time to time.

     (o) “Employee” shall mean any common-law employee of the Company or its
subsidiaries whose primary location of employment is within the United States of
America.

     (p) “Participant” shall mean any Employee or non-Employee director who
is selected for participation in the Plan in accordance with Paragraph 3, and shall
also include any former Employee who continues to have an Account Balance under the
Plan.

     (q) “Performance-Based Compensation” shall mean any portion of a
Participant’s Compensation that is contingent on the satisfaction of preestablished
organizational or individual performance criteria, measured over a performance
period of at least twelve (12) consecutive months during which the Participant
performs services for the Company or its subsidiary. For this purpose, performance

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criteria will be considered “preestablished” if they are established in writing
by no later than ninety (90) days after the performance period commences, provided
that the outcome is substantially uncertain at the time the criteria are
established.

     (r) “Plan” shall mean this ACI Worldwide, Inc. Amended and Restated
Deferred Compensation Plan, as herein set forth and as amended from time to time.

     (s) “Plan Year” shall mean the calendar year; provided that the initial
Plan Year shall commence on October 1, 2010, and end on December 31, 2010.

     (t) “Regular Compensation” shall mean that portion of a Participant’s
Compensation that is payable on a periodic basis throughout the Plan Year in which
it is earned, as well as any such periodic Compensation that is payable as soon as
administratively practicable following the close of the final payroll period in such
Plan Year, but shall exclude any Performance-Based Compensation.

     (u) “Separation From Service” shall mean a Participant’s termination of
employment with the Company and all of its affiliated employers, regardless of the
reason therefor. In all events, this phrase shall be construed in a manner
consistent with the requirements of Code Section 409A, including any applicable IRS
guidance.

     (v) “Specified Employee” shall mean any Employee described in Code
Section 409A(a)(2)(B)(i), as determined pursuant to procedures adopted by the
Committee in compliance with Code Section 409A, but only if the stock of the Company
or a parent of the Company is publicly traded at the time of such Employee’s
Separation From Service.

     (w) “Unforeseeable Emergency” shall mean severe financial hardship to a
Participant resulting from:

     (i) A sudden and unexpected illness of the Participant, the
Participant’s spouse, the Participant’s Beneficiary or the Participant’s
dependent (as defined in Code Section 152, without regard to sub-sections
(b)(1), (b)(2) or (d)(1)(B));

     (ii) The loss of the Participant’s property due to casualty; or

     (iii) Any other similar extraordinary and unforeseeable circumstance
arising as a result of events beyond the control of the Participant.

The existence of an Unforeseeable Emergency shall be determined by the CEO (or, in
the case of the CEO, by the Committee), in accordance with regulations issued under
Code Section 409A(a)(2)(B)(ii)(I).

     (x) “Valuation Date” shall mean the last day of each Plan Year, as well
as such other dates as are determined by the Committee.

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     3. Participation. Acting in its sole discretion, the Committee may designate for
participation in the Plan any Employee who is determined to be part of a “select group of
management or highly compensated employees” of the Company or its subsidiaries (as that phrase is
used in Section 201(2) of ERISA). Such designation shall be made in writing, and may be revoked at
any time. Unless and until revoked, however, any such designation shall remain in effect during
subsequent Plan Years.

     4. Deferrals.

     (a) Regular Compensation. Subject to the provisions of Subparagraph
(c), prior to the first day of each Plan Year, a Participant may elect to defer the
receipt of any portion of the Regular Compensation to be earned by him or her during
that Plan Year. Moreover, an Employee who is not already a participant in a
nonqualified deferred compensation plan that would be aggregated with this Plan
pursuant to Treasury Regulation Section 1.409A-1(c)(2)(i) may elect, during the
first thirty (30) days after the Employee first becomes a Participant, to defer the
receipt of any portion of the Regular Compensation to be earned by him or her after
the date of such election and during the remainder of that Plan Year. Any such
Deferral election may not be revoked or modified during the Plan Year to which it
relates, except that a Participant’s Deferral election shall be cancelled due to
either (i) an accelerated distribution from this Plan on account of an Unforeseeable
Emergency, or (ii) a hardship distribution from a qualified cash or deferred
arrangement pursuant to Treasury Regulation Section 1.401(k)-1(d)(3). No new
Deferral election described in the first sentence of this Subparagraph may become
effective until the first day of the following Plan Year. A Participant may elect
to defer either a specified percentage or a specified dollar amount of his or her
Regular Compensation. Any Deferral election made under this Subparagraph shall
apply to only a single Plan Year, and shall not apply to any subsequent Plan Year
unless expressly renewed by the Participant.

     (b) Performance-Based Compensation. Separately from any Deferral
election made under Subparagraph (a), and subject to the provisions of Subparagraph
(c), a Participant may elect to defer the receipt of any portion of the
Performance-Based Compensation to be earned by him or her during a specified
performance period of at least twelve (12) months’ duration. Any such Deferral
election must be made no later than, and may not be revoked or modified later than,
the earlier of six (6) months before the end of the performance period or the time
that the Performance-Based Compensation has become readily ascertainable; provided,
however, that such a Deferral election shall be cancelled due to either (i) an
accelerated distribution from this Plan on account of an Unforeseeable Emergency, or
(ii) a hardship distribution from a qualified cash or deferred arrangement pursuant
to Treasury Regulation Section 1.401(k)-1(d)(3). Moreover, an Employee who is not
already a participant in a nonqualified deferred compensation plan that would be
aggregated with this Plan pursuant to Treasury Regulation Section 1.409A-1(c)(2)(i)
may elect, during the first thirty (30) days after the Employee first becomes a
Participant, to defer the receipt of any portion of the Performance-Based

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Compensation to be earned by him or her after the date of such election and
during the remainder of the then-current performance period. For purposes of the
preceding sentence, the portion of any Performance-Based Compensation to be earned
by a Participant after the date of an election shall be equal to the Participant’s
total Performance-Based Compensation for that performance period multiplied by a
fraction, the numerator of which is the number of days remaining in the performance
period after the election and the denominator of which is the total number of days
in the performance period. A Participant may elect to defer either a specified
percentage or a specified dollar amount of any Performance-Based Compensation. Any
Deferral election made under this Subparagraph shall apply to only a single
performance period, and shall not apply to subsequent periods unless expressly
renewed by the Participant.

     (c) Maximum Deferral Percentage. Notwithstanding the provisions of
Subparagraphs (a) and (b), the Committee may, in its sole discretion, designate the
maximum percentage of a Participant’s Regular Compensation, Performance-Based
Compensation, or both, that he or she may elect to defer under this Paragraph 4 for
each Plan Year.

     (d) Election Procedures. Any Deferral election made under this
Paragraph shall be made in accordance with procedures established by the Committee.
Such procedures may allow for elections to be made either in writing or via
electronic means, provided that a record of all such elections shall be preserved.
Similar election procedures shall apply to distribution elections made under either
of Paragraph 9 or Paragraph 11.

     5. Company Contributions. Acting in its sole discretion, the Committee may credit a
given Participant’s Account with an additional amount, which may be a percentage of Compensation or
a specific dollar amount, for the Plan Year. Unless the Participant elects otherwise, in
accordance with Paragraph 9, such Company Contributions shall be payable in a single lump-sum at
the time set forth in Paragraph 8.

     6. Earnings Indices. Participants shall be allowed to elect from among one or more
earnings indices designated by the Committee. As of each Valuation Date, each Participant’s
Account Balance shall be credited or debited with that Participant’s proportionate share of any
gains or losses attributable to the earnings indices selected by that Participant. Under no
circumstances shall the value of the Company’s stock be used as an earnings index. Nor shall the
Committee be required to invest any actual assets in the designated earnings indices.

     7. Vesting. The portion of the Participant’s Account Balance attributable to
Deferrals shall be fully vested at all times. The Committee, in its sole discretion, may impose a
vesting schedule (of up to 5 years) with respect to any Company Contribution (and Earnings thereon)
for any Participant for any given Plan Year, and further, the Committee, in its sole discretion,
may provide that certain Company Contributions (and Earnings thereon) shall become fully vested
immediately upon the occurrence of a Change in Control.

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     8. Distributions. Except as otherwise elected in accordance with Paragraph 9, a
Participant (or, in the event of the Participant’s death, the Participant’s Beneficiary) shall
receive a distribution of his or her entire Account Balance, in a single lump-sum payment, as soon
as administratively practicable (but no more than 90 days) after the earliest of:

     (a) The Participant’s Separation from Service (or, in the case of a Specified
Employee, six months after such Separation From Service);

     (b) the Participant’s death; or

     (c) the Participant’s Disability;

provided that neither the Participant nor the Beneficiary shall have the right to designate the
taxable year of the payment.

     9. Alternative Elections Regarding Time and Form of Payment. Except as provided in
Paragraph 10 with respect to small Account Balances, a Participant may elect, in lieu of the
distribution timing provisions of Paragraph 8, to receive distribution of his or her Deferrals
and/or Company Contributions for a given Plan Year (and the Earnings attributable thereto)

     (a) at a specific date or time (or upon attainment of a specific age), or

     (b) upon the earlier of such date (or age) or one or more of the distribution
events listed in Paragraph 8.

A Participant may also elect to receive distribution of his or her Deferrals and/or Company
Contributions for a given Plan Year (and the Earnings attributable thereto) in annual installments
for a period of up to ten (10) years. If a Participant elects to receive installment payments, the
amount of each such annual installment shall be equal to the Participant’s Account Balance as of
the date of the distribution divided by the number of installments remaining to be paid.
Notwithstanding the above, any distribution on account of the death of the Participant shall be
paid in accordance with Paragraph 8. Any election under this Paragraph (with respect to Deferrals
and the Earnings thereon) must be made by the applicable deadline (under Paragraph 4) for making a
Deferral election for the applicable Plan Year. Any election under this Paragraph (with respect to
Company Contributions and the Earnings thereon) must be made before the first day of the Plan Year
in which the Company Contribution is credited to the Participant’s Account (or, if later, within
the first 30 days after the Employee first becomes a Participant); provided that, to the extent
required under Code Section 409A, such election shall apply only to Compensation paid for services
to be performed after the date of the election. Notwithstanding the above, no Participant may
elect more than three alternate combinations of distribution dates and payout methods. In the
absence of a timely distribution election, any Deferrals or Company Contributions for a given Plan
Year (and the Earnings attributable thereto) shall be paid at the time and in the manner set forth
in Paragraph 8.

     10. Cashout of Small Account Balances. If, on the date of a distribution event listed
in Paragraph 8, a Participant’s Account Balance does not exceed the dollar limitation then in
effect under Code Section 402(g)(1)(B) (i.e., the annual limitation on Code Section 401(k)
deferrals, excluding any “catch-up contributions” available to an employee who is age 50 or older),
the

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Participant’s entire Account Balance shall be distributed in accordance with Paragraph 8,
notwithstanding any alternative distribution election the Participant might have made Paragraph 9
or any distribution deferral election the Participant might have made under Paragraph 11. In
applying the provisions of this Paragraph, a Participant’s Account Balance shall be deemed to
include any amount credited to the Participant’s account under any other nonqualified deferred
compensation plan that would be aggregated with this Plan pursuant to Treasury Regulation Section
1.409A-1(c)(2)(i).

     11. Distribution Deferral Elections. A Participant who is still an Employee may
elect, at least twelve months before the earliest of the distribution dates described in Paragraph
8 (or the alternate distribution date elected under Paragraph 9) to defer the distribution of his
or her Account Balance (or the portion thereof that is payable on such date). Except in the case
of a Participant’s Disability or death, any such distribution deferral election must defer the
distribution for a period of at least five years from the date the distribution(s) otherwise would
have been made (or commenced). Subject to the constraints described in the preceding portions of
this Paragraph, a Participant may elect to receive a deferred distribution in either a single
lump-sum payment or a series of annual installments over a period of up to ten (10) years. If a
Participant elects to receive installment payments, the amount of each such annual installment
shall be equal to the Participant’s Account Balance as of the date of the distribution divided by
the number of installments remaining to be paid. Moreover, a Participant may make more than one
distribution deferral election under the provisions of this Paragraph; provided that such elections
do not result in the Participant having more than three alternate combinations of distribution
dates and payout methods. For purposes of this Paragraph, a series of installment payments shall
be treated as a single payment. Accordingly, by electing to defer his or her distribution
commencement date by at least five (5) years, a Participant may substitute a lump-sum payment for a
series of installments, but may not elect to defer the distribution of only a single installment.

     12. Unforeseeable Emergency. At any time prior to receiving a distribution of his or
her entire Account Balance, a Participant who has experienced an Unforeseeable Emergency may
request an accelerated distribution from his or her Account. The amount necessary to relieve that
emergency (including any amount necessary to pay taxes reasonably anticipated to result from the
distribution) shall then be distributed to the Participant in a lump-sum payment. The
determination of the amount reasonably necessary to relieve the Participant’s emergency shall be
made by the Committee. No distribution shall be made under this Paragraph, however, to the extent
that the Participant’s emergency may be relieved either:

     (a) Through reimbursement or compensation by insurance or otherwise;

     (b) By liquidation of the Participant’s assets, to the extent the liquidation
of such assets would not itself cause severe financial hardship; or

     (c) By cessation of the Participant’s Deferrals under this Plan.

Any distribution under this Paragraph shall be made as soon as administratively practicable (but no
more than 90 days) after the Committee’s determination of the portion of the Participant’s Account
Balance properly distributable as a result of the Participant’s Unforeseeable Emergency.

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     13. Designation of Beneficiary. A Participant shall designate one or more
Beneficiaries, some of whom may be contingent Beneficiaries. Any such Beneficiary designation
shall be made in writing, on a form provided by the Company; provided that a married Participant
may designate a primary Beneficiary other than his/her spouse only if the spouse provides written
consent to that designation. A Participant may revoke a Beneficiary designation at any time and,
subject to the spousal consent requirement described in the immediately preceding sentence,
designate a new primary or contingent Beneficiary. No such revocation or new designation shall
become effective, however, until received in writing by the Company. In the absence of an
effective Beneficiary designation, a Participant’s Beneficiary shall be the person or persons in
the first of the following classes of successive preference Beneficiaries. The Participant’s:

	 	(a)	 	Spouse;
	 
	 	(b)	 	Descendants, per stirpes;
	 
	 	(c)	 	Parents;
	 
	 	(d)	 	Brothers and sisters; or
	 
	 	(e)	 	Estate.

     14. Unfunded Status. It is specifically intended that all Deferrals and Earnings
under the provisions of this Plan shall be “unfunded” for purposes of both the Code and ERISA. To
that end, benefits payable hereunder shall be paid exclusively from the Company’s general assets.
Although the Company may establish a trust for the purpose of holding all or a portion of
Participants’ Account Balances, the agreement establishing any such trust shall provide that the
assets held therein will be available to satisfy claims of the Company’s general creditors in the
event of the Company’s insolvency. No Participant or Beneficiary shall have any claim, right,
security interest, or other interest in any fund, trust, account, insurance contract, or other
asset of the Company that may be looked to for such payment. Rather, a Participant (or his or her
Beneficiary) shall be a general, unsecured creditor of the Company.

     15. Restrictions on Alienation. No right or benefit under this Plan shall be subject
to anticipation, alienation, sale, assignment, pledge, borrowing, encumbrance, or charge; and any
attempt to anticipate, alienate, sell, assign, pledge, borrow, encumber, or charge the same shall
be void. Nor shall any right or benefit under this Plan be in any manner liable for or subject to
the debts, contracts, liabilities, or torts of any Participant or Beneficiary. Notwithstanding the
preceding provisions of this Paragraph, the Committee may authorize either of the following:

     (a) The payment or assignment of benefits pursuant to a “qualified domestic
relations order,” as defined in Section 206(d)(3)(B)(i) of ERISA. A Participant’s
Account Balance shall be reduced to reflect the amount of such payment.

     (b) The distribution of any portion of a Participant’s Account Balance to any
taxing authority. The Company will inform the Participant of any amount so

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distributed, by use of appropriate tax forms or by means of written notice to
the Participant concerning his or her Account Balance.

     16. Administration. The Committee will have full power to interpret the Plan and to
determine all questions that arise under it. Such power includes, for example, the administrative
discretion necessary to determine whether an individual meets the Plan’s eligibility requirements
and to interpret any other term contained in this document. The Committee may delegate such
ministerial responsibilities as it believes appropriate to one or more individuals, who may (but
need not) be employees of the Company or its subsidiaries. The Plan will be administered as an
arrangement primarily for the purpose of providing deferred compensation for a select group of
management or highly compensated employees, as described in Section 201(2) of ERISA.

     17. Claims and Appeals Procedures. A request for a Plan benefit shall be filed with
the CEO or with his or her designee. Such a request, hereinafter referred to as a “claim,” shall
be deemed filed when the executed claim form is received by the CEO (or his or her designee).

     (a) Initial Claim Determination. The CEO (or his or her designee)
shall decide each claim within a reasonable time after it is received. If a claim is
wholly or partially denied, the claimant shall be furnished a written notice setting
forth, in a manner calculated to be understood by the claimant:

     (i) the specific reason or reasons for the denial;

     (ii) a specific reference to pertinent Plan provisions on which the
denial was based;

     (iii) a description of any additional material or information necessary
for the claimant to perfect the claim, along with an explanation of why such
material or information is necessary; and

     (iv) appropriate information as to the steps to be taken if the
claimant wishes to appeal the denial of his or her claim, including the
period during which such an appeal must be filed and the period in which it
will be decided.

The notice shall be furnished to the claimant within 90 days after receipt of the
claim by the CEO (or his or her designee), unless special circumstances require an
extension of time for processing the claim. No extension shall be for more than 90
days after the end of the initial 90-day period. If an extension of time for
processing is required, written notice of the extension shall be furnished to the
claimant before the end of the initial 90-day period. The extension notice shall
indicate the special circumstances requiring an extension of time and the date by
which a final decision will be rendered.

     (b) Appealing a Claim. If a claim is denied, the claimant may appeal
the denial to the Committee, upon written application to the Committee. The
claimant may review documents pertinent to the appeal and may submit issues and
comments

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in writing to the Committee. No appeal shall be considered unless it is
received by the Secretary of the Committee within 90 days after receipt by the
claimant of written notification of the denial of the claim. The Committee shall
decide the appeal within 60 days after it is received. However, if special
circumstances require an extension of time for processing, a decision shall be
rendered as soon as possible, but not later than 120 days after the appeal is
received. If such an extension of time for deciding the appeal is required, written
notice of the extension shall be furnished to the claimant before the commencement
of the extension. The decision of the Committee shall be in writing and shall
include specific reasons for the decision, written in a manner calculated to be
understood by the claimant, with specific references to the pertinent Plan
provisions upon which the decision was based.

     18. Amendment and Termination. The Committee may amend or terminate this Plan at any
time. No such action, however, shall affect a Participant’s right to receive the full amount of
his or her vested Account Balance (determined as of the date of such amendment or termination). If
the Plan is terminated, any acceleration of a distribution to a Participant or Beneficiary shall be
subject to the restrictions and limitations set forth in Treasury Regulations issued under Code
Section 409A.

     19. Effect of Participant Misconduct. If the Committee determines that a Participant
has engaged in misconduct in the course of his or her employment with the Company or its
subsidiaries, the Committee may take such action with respect to that Participant as it may deem
necessary or appropriate. Such action may include, without limitation, terminating the
Participant’s right to participate in the Plan, forfeiting his or her entire Account Balance,
and/or requiring the Participant to reimburse the Company for the amount of any benefits previously
paid to the Participant hereunder. By participating in the Plan, each Participant acknowledges and
agrees that the Company’s rights under this Paragraph shall survive the distribution of any
benefits and the termination of the Participant’s employment, for any reason, and shall be in
addition to every other right or remedy, at law or in equity, otherwise available to the Company.

     20. General Provisions.

     (a) Employment Relationship. In no event shall a Participant’s terms
and conditions of employment be modified or in any way affected by this Plan.

     (b) Successors and Assigns. The provisions of this Plan shall be
binding on the Company and its successors and assigns, and on each Participant,
Beneficiary and their respective assigns, heirs, executors, and administrators.

     (c) Governing Law. Except to the extent preempted by federal law, all
questions arising under this Plan shall be determined by reference to the laws of
the State of Nebraska.

     (d) Compliance with Code Section 409A.

     (i) To the extent applicable, it is intended that this Plan (including
all amendments thereto) comply with the provisions of Code Section 409A, so
that the income inclusion provisions of Code Section 409A(a)(1) do not

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apply to any Participant or Beneficiary. This Plan shall be
administered in a manner consistent with this intent.

     (ii) Except as permitted under Code Section 409A, any deferred
compensation (within the meaning of Code Section 409A) payable to a
Participant or for a Participant’s benefit under this Plan may not be
reduced by, or offset against, any amount owing by a Participant to the
Company or any of its affiliates.

     (iii) In any case, a Participant shall be solely responsible and liable
for the satisfaction of all taxes and penalties that may be imposed on a
Participant or for a Participant’s account in connection with this Plan
(including any taxes and penalties under Code Section 409A), and neither the
Company nor any of its affiliates shall have any obligation to indemnify or
otherwise hold a Participant harmless from any or all of such taxes or
penalties.

     (iv) Any reference in this Plan to Code Section 409A will also include
any proposed, temporary, or final regulations or any other formal guidance
promulgated with respect to such Section 409A by the U.S. Department of
Treasury or the Internal Revenue Service.

     IN WITNESS WHEREOF, ACI Worldwide, Inc. has caused this Amended and Restated Deferred
Compensation Plan to be executed on its behalf this 9th day of September, 2010, but to
be effective as of October 1, 2010.

	 	 	 	 	 	 	 	 	 	 	 

	Attest:	 	ACI Worldwide, Inc.
	 
	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ Karen Hobbs	 	By:	 	/s/ Dennis P. Byrnes
	 	 	 	 	 	 	 
	 

	 	Title:
	 	Vice President Global Human
Resources
	 	 	 	Title:
	 	Senior Vice
President

11ex41.htm

Exhibit 4.1

 

THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THESE SECURITIES AND THE SECURITIES ISSUABLE UPON CONVERSION OF THESE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

	 Original Issue Date: September 2, 2010	 	
 $175,000.00

 

16% DEBENTURE

DUE November 1, 2010

 

THIS DEBENTURE of YouBlast Global, Inc., a Delaware corporation, having a principal place of business at 81 Greene St., 4th floor, New York, NY 10012 (the “Company”), designated as its 16% Debenture, due November 1, 2010 (the “Debenture”).

 

This Debenture is one of a series of debentures of like tenor and ranking (collectively, the “Debentures”) to be issued and sold, under which the Company has agreed to sell to Holder (as hereinafter defined), and Holder has agreed to purchase, debentures in the aggregate principal amount of $175,000, to be advanced by Holder in multiple tranches as follows: (i) $126,656.18 on the date hereof and (ii) $48,343.82 on or before September 30, 2010 in the sole discretion of the Holder (such amounts are collectively referred to as the “Principal Amount”).

 

FOR VALUE RECEIVED, the Company promises to pay to Philmore Anderson IV or his registered assigns (the “Holder”), the Principal Amount, together with accrued but unpaid interest upon the earlier of (A) November 1, 2010, unless such date is extended pursuant to Section 10 hereof, or (B) upon the consummation by the Company of a debt or equity financing transaction with gross proceeds to the Company of not less than $250,000 (the “Maturity Date”), and to pay accrued interest to the Holder upon the Maturity Date on the outstanding principal amount of this Debenture at the rate of 16% per annum, payable in cash.

 

This Debenture is subject to the following terms and conditions:

 

Section 1. This Debenture is exchangeable for an equal aggregate principal amount of Debentures of different authorized denominations, as requested by the Holder surrendering the same. No service charge will be made for such registration of transfer or exchange.

 

Section 2. This Debenture may be transferred or exchanged only in compliance with the applicable federal and state securities laws and regulations. Prior to due presentment to the Company for transfer of this Debenture, the Company and any agent of the Company may treat the Person in whose name this Debenture is duly registered on the Debenture register as the owner hereof for the purpose of receiving payment as herein provided and for all other purposes, whether or not this Debenture is overdue, and neither the Company nor any such agent shall be affected by notice to the contrary.

 

Section 3. Events of Default.

 

(a)“Event of Default”, wherever used herein, means any one of the following events (whatever the reason and whether it shall be voluntary or involuntary or effected by operation of law or pursuant to any judgment, decree or order of any court, or any order, rule or regulation of any administrative or governmental body):

 

(i) any default in the payment of the Principal Amount or the outstanding principal of any of the other Debentures when the same shall become due and payable, either at Maturity or by acceleration or otherwise; or

 

(ii) default shall be made in the payment of interest on this Debenture or any of the other Debentures when the same becomes due and payable and the default continues for a period of five (5) business days; or

 

 

  

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(iii) any representation or warranty made by the Company in this Debenture or any of the other Debentures, was incorrect in any material respect on or as of the date made; or

 

(iv) the Company shall fail to observe or perform any other covenant or agreement contained in this Debenture or any of the other Debentures, any of its other debt or equity financing documents, which failure is not cured, if possible to cure, within 30 calendar days after written notice of such default is sent by the Holder or by any other holder to the Company; or

 

(v) the Company shall commence, or there shall be commenced against the Company a case under any applicable bankruptcy or insolvency laws as now or hereafter in effect or any successor thereto, or the Company commences any other proceeding under any reorganization, arrangement, adjustment of debt, relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction whether now or hereafter in effect relating to the Company or there is commenced against the Company any such bankruptcy, insolvency or other proceeding which remains undismissed for a period of 60 days; or the Company is adjudicated insolvent or bankrupt; or any order of relief or other order approving any such case or proceeding is entered; or the Company suffers any appointment of any custodian or the like for it or any substantial part of its property which continues undischarged or unstayed for a period of 60 days; or the Company makes a general assignment for the benefit of creditors; or the Company shall fail to pay, or shall state that it is unable to pay, or shall be unable to pay, its debts generally as they become due; or the Company; or any corporate or other action is taken by the Company or any subsidiary thereof for the purpose of effecting any of the foregoing; or

 

(vi) default shall occur with respect to any indebtedness for borrowed money of the Company or under any agreement to which the Company is a party and such default shall exceed $175,000; or

 

(vii) default with respect to any contractual obligation of the Company under or pursuant to any contract, lease, or other agreement to which the Company is a party and such default shall continue for more than the period of grace, if any, therein specified, if the aggregate amount of the Company’s contractual liability arising out of such default exceeds or is reasonably estimated to exceed $175,000; or

 

(vi) final judgment for the payment of money in excess of $100,000 shall be rendered against the Company and the same shall remain undischarged for a period of 60 days during which execution shall not be effectively stayed; or

 

(vii) any failure to pay non-executive employee wages; or

 

(viii) any failure to use the proceeds in accordance with, and as provided under, Schedule A hereto.

(b)           If any Event of Default occurs, the full Principal Amount, together with interest and other amounts owing in respect thereof, to the date of acceleration shall become immediately due and payable in cash; provided, however, that in an Event of Default pursuant to Section 3(a)(i) or 3(a)(ii) above, the Holder shall have the right to convert all or a portion of such Principal Amount (in addition to all or a portion of the principal due under the other Debentures) into shares of Common Stock pursuant to the terms set forth in Section 4 below (and to receive cash on the (i) accrued interest and (ii) Principal Amount Holder elects not to convert); provided further, that in an Event of Default pursuant to any of the Sections 3(a)(iii) through 3(a)(ix) above, the Company shall immediately issue to the Holder one million shares of Common Stock in addition to the acceleration of the Debenture which Principal Amount, together with interest and other amounts owing in respect thereof, shall become immediately due and payable in cash. Commencing upon an Event of Default that results in the eventual acceleration of this Debenture, the interest rate on this Debenture shall accrue at the rate of 18% per annum, or such lower maximum amount of interest permitted to be charged under applicable law. The Holder need not provide and the Company hereby waives any presentment, demand, protest or other notice of any kind, and the Holder may immediately and without expiration of any grace period enforce any and all of its rights and remedies hereunder and all other remedies available to it under applicable law. Such declaration may be rescinded and annulled by Holder at any time prior to payment hereunder and the Holder shall have all rights as a Debenture holder until such time, if any, as the full payment under this Section shall have been received by it. No such rescission or annulment shall affect any subsequent Event of Default or impair any right consequent thereon.

 

 

 

  

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Section 4. Conversion Upon Event of Default.

 

(a) The Holder, if elected pursuant to Section 3(b) above (as a result of a default of 3(a)(i) or 3(a)(ii), shall convert all or a portion of the Principal Amount into shares of Common Stock, the Holder shall effect such conversion by delivering to the Company a notice of conversion (a “Notice of Default Conversion”), specifying therein the Principal Amount to be converted and the date on which such conversion is to be effected (a “Default Conversion Date”).

 

(b) If the Holder elects to convert all of the principal of the Debentures (which, for avoidance of doubt, includes all Principal Amount and all principal due under the other Debentures) into shares of Common Stock, then the number of shares of Common Stock issuable upon such conversion shall be an amount of Common Stock equal to the (i) multiple of (A) 10% times (B) Fully Diluted Shares Outstanding at the Default Conversion Date divided by (ii) 90%. If the Holder elects to convert a portion of the principal of the Debentures into shares of Common Stock, then the number of shares of Common Stock issuable upon such conversion shall be determined on a pro rata basis.

 

Section 5. This Debenture is a direct obligation of the Company, and the obligation of the Company to repay this Debenture is absolute and unconditional, but is expressly subordinated to all currently outstanding secured indebtedness of the Company outstanding on the date hereof. The repayment terms hereof reflect the substantial risks Holder is assuming by virtue of such subordination and Holder’s further agreement evidenced hereby that no recourse shall be had for the payment of the Principal Amount, or interest on the Debenture, or for any claim based hereon, or otherwise in respect hereof, against any shareholder, officer or director, as such, past, present or future, of the Company or any successor corporation, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise, all such liability being, by the express terms hereof and as part of the consideration for the repayment terms here or hereof, expressly waived and released.

 

Section 6. Interest on the amount advanced will accrue on this Debenture until the Maturity Date at the rate of sixteen percent (16% per annum), and be payable on the Maturity Date. If any portion of this Debenture is outstanding on the Maturity Date, interest at the rate of eighteen percent (18%) per annum or the highest rate allowed by law, whichever is lower, shall accrue on the outstanding Principal Amount from the Maturity Date to and including the date of payment by the Company. All past due interest shall accrue on a daily basis and shall be payable in cash. The Holder may demand payment of all or any part of this Debenture, together with accrued interest, if any, and any other amounts due hereunder, as of the Maturity Date or any date thereafter.

 

Section 7. This Debenture shall be unsecured.

 

Section 8. Any payment made by the Company to the Holder, on account of this Debenture shall be applied in the following order of priority: (i) first, to any amounts other than the Principal Amount and accrued interest, if any, hereunder, (ii) second, to accrued interest, if any, through and including the date of payment, and (iv) then, to the Principal Amount.

 

Section 9.The outstanding Principal Amount may not be prepaid, except as set forth in Section 11 hereof.

 

Section 10. The term “Maturity Date” means the earliest of (i) November 1, 2010, or (ii) the accelerated Maturity Date applicable in the case of any uncured Event of Default.

 

Section 11. In the event of a Change of Control of the Company, the Holder, at his option, will have the right (a) immediately prior to the Change in Control, to convert the Debenture into securities of the Company of the same class as those held by the persons acquiring control of the Company, or (b) to require the Company, upon the Change in Control, to purchase the Debenture at a purchase price of 125% of the price, plus accrued interest. The Company shall give Holder 20 days notice prior to the event of a Change of Control.

 

Section 12. This Debenture shall be governed by and interpreted in accordance with the laws of the State of New York for contracts to be wholly performed in such state and without giving effect to the principles thereof regarding the conflict of laws. Each of the parties consents to the exclusive jurisdiction of the state courts of the State of New York located in New York County and the United States District Court for the Southern District of New York in connection with any dispute arising under this Agreement and hereby waives, to the maximum extent permitted by law, any objection, including any objection based on forum non convenes, to the bringing of any such proceeding in such jurisdictions. To the extent determined by such court, the Company shall reimburse the Holder for any reasonable legal fees and disbursements incurred by the Holder in enforcement of or protection of any of its rights under this Debenture. The Company and the Holder hereby waive a trial by jury in any action, proceeding or counterclaim brought by either of the parties hereto against the other in respect of any matter arising out of or in connection with this Agreement or the Debenture

 

 

  

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Section 13. The Company covenants that it will at all times reserve and keep available out of its authorized and unissued shares of Common Stock solely for the purpose of issuance upon Default Conversion of the Debenture, free from preemptive rights or any other actual contingent purchase rights of persons other than the Holder, not less than such number of shares of the Common Stock as shall be issuable upon the conversion of the outstanding Principal Amount. The Company covenants that all shares of Common Stock that shall be so issuable shall, upon issue, be duly and validly authorized, issued and fully paid and nonassessable.

 

Section 14. Upon a Default Conversion hereunder the Company shall not be required to issue stock certificates representing fractions of shares of the Common Stock, but may if otherwise permitted, make a cash payment in respect of any final fraction of a share. If the Company elects not, or is unable, to make such a cash payment, the Holder shall be entitled to receive, in lieu of the final fraction of a share, one whole share of Common Stock.

 

Section 15. Issuance of certificates for shares of the Common Stock on Default Conversion of the Debentures shall be made without charge to the Holder thereof for any documentary stamp or similar taxes that may be payable in respect of the issue or delivery of such certificate.

 

Section 16. Any and all notices or other communications or deliveries to be provided by the Holder hereunder, including, without limitation, any notice of conversion, shall be in writing and delivered personally, by facsimile, sent by a nationally recognized overnight courier service, addressed to the Company, at the address set forth above, facsimile number (212) 343-8897, Attn: Jeffrey Forster, or such other address or facsimile number as the Company may specify for such purposes by notice to the Holder delivered in accordance with this Section. Any and all notices or other communications or deliveries to be provided by the Company hereunder shall be in writing and delivered personally, by facsimile, sent by a nationally recognized overnight courier service addressed to each Holder at the facsimile telephone number or address of Holder appearing on the books of the Company, or if no such facsimile telephone number or address appears, at the principal place of business of the Holder. Any notice or other communication or deliveries hereunder shall be deemed given and effective on the earliest of (i) the date of transmission, if such notice or communication is delivered via facsimile at the facsimile telephone number specified in this Section prior to 5:30 p.m. New York time), (ii) the date after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile telephone number specified in this Section later than 5:30 p.m. (New York time) on any date and earlier than 11:59 p.m. (New York time) on such date, (iii) the second Business Day following the date of mailing, if sent by nationally recognized overnight courier service, or (iv) upon actual receipt by the party to whom such notice is required to be given. Whenever any payment or other obligation hereunder shall be due on a day other than a Business Day, such payment shall be made on the next succeeding Business Day.

 

Section 17. If this Debenture shall be mutilated, lost, stolen or destroyed, the Company shall execute and deliver, in exchange and substitution for and upon cancellation of a mutilated Debenture, or in lieu of or in substitution for a lost, stolen or destroyed Debenture, a new Debenture for the Principal Amount so mutilated, lost, stolen or destroyed but only upon receipt of evidence of such loss, theft or destruction of such Debenture, and of the ownership hereof, and indemnity, if requested, all reasonably satisfactory to the Company.

 

Section 18. If any provision of this Debenture is invalid, illegal or unenforceable, the balance of this Debenture shall remain in effect, and if any provision is inapplicable to any person or circumstance, it shall nevertheless remain applicable to all other persons and circumstances. If it shall be found that any interest or other amount deemed interest due hereunder violates applicable laws governing usury, the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum permitted rate of interest. The Company covenants (to the extent that it may lawfully do so) that it shall not at any time insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law or other law which would prohibit or forgive the Company from paying all or any portion of the Principal Amount of or interest on this Debenture as contemplated herein, wherever enacted, now or at any time hereafter in force, or which may affect the covenants or the performance of this indenture, and the Company (to the extent it may lawfully do so) hereby expressly waives all benefits or advantage of any such law, and covenants that it will not, by resort to any such law, hinder, delay or impeded the execution of any power herein granted to the Holder, but will suffer and permit the execution of every such as though no such law has been enacted.

 

 

  

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Section 19. Definitions. For the purposes hereof, in addition to the terms defined elsewhere in this Debenture, the following terms shall have the following meanings:

 

“Business Day” means any day except Saturday, Sunday and any day which shall be a federal legal holiday in the United States or a day on which banking institutions in the State of Texas are authorized or required by law or other government action to close.

 

“Change of Control” as used herein shall mean the occurrence of the following events:

 

(i) A sale, transfer, or other disposition by the Company through a single transaction or a series of transactions occurring within a 90-day period of securities of the Company representing Beneficial Ownership (as defined below) of fifty (50%) percent or more of the combined voting power of the Company then outstanding securities to any “Unrelated Person” or “Unrelated Persons” acting in concert with one another. For purposes of this definition, the term “Person” shall mean and include any individual, partnership, joint venture, association, trust corporation, or other entity (including a “group” as referred to in Section 13(d)(3) of the Securities Exchange Act of 1934, as amended (“1934 Act”)). For purposes of this definition, the term “Unrelated Person” shall mean and include any Person other than the Company, a wholly-owned subsidiary of the Company, an existing shareholder, or an employee benefit plan of the Company; provided however, a sale of the Company’s securities in a capital raising transaction shall not be a Change of Control.

 

(ii) A sale, transfer, or other disposition through a single transaction or a series of transactions occurring within a 90-day period of all or substantially all of the assets of the Company to an Unrelated Person or Unrelated Persons acting in concert with one another.

 

(iii) A change in the ownership of the Company through a single transaction or a series of transactions occurring within a 90-day period such that any Unrelated Person or Unrelated Persons acting in concert with one another become the “Beneficial Owner,” directly or indirectly, of securities of the Company representing at least fifty-one (51%) percent of the combined voting power of the Company then outstanding securities. For purposes of this Agreement, the term “Beneficial Owner” shall have the same meaning as given to that term in Rule 13d-3 promulgated under the 1934 Act, provided that any pledgee of voting securities is not deemed to be the Beneficial Owner of the securities prior to its acquisition of voting rights with respect to the securities.

 

(iv) Any consolidation or merger of the Company with or into an Unrelated Person, unless immediately after the consolidation or merger the holders of the Common Stock of the Company immediately prior to the consolidation or merger are the beneficial owners of securities of the surviving corporation representing at least fifty-one (51%) percent of the combined voting power of the surviving corporation’s then outstanding securities.

 

“Fully Diluted Shares Outstanding” means the sum of (i) the shares of Common Stock issued and outstanding and (ii) the maximum number of shares of Common Stock issuable upon exercise or conversion of outstanding Company derivative securities, irrespective if such shares are vested or currently exercisable.

 

 “Person” means a corporation, an association, a partnership, organization, a business, an individual, a government or political subdivision thereof or a governmental agency.

 

Section 20. Warrant. Upon the execution of the Debenture, the Company shall issue a Warrant to the Holder which shall be exercisable for 1,000,000 shares of Common Stock at an exercise price of $0.50 per share of Common Stock in the form attached hereto as Schedule B.

 

*********************

 

  

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IN WITNESS WHEREOF, the Company has caused this Debenture to be duly executed by a duly authorized officer as of the date first above indicated.

	 	 	 	 	 
	 YOUBLAST GLOBAL, INC.	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
/s/ Jeffrey Forster

	 	 	
 

	 
	
Name: Jeffrey Forster

	 	 	
 

	 
	
Title: President and Chief Executive Officer

	 	 	
 

	 

 

  

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SCHEDULE A

USE OF PROCEEDS

YouBlast Global, Inc. (the “Company”) shall use the proceeds of the Debenture ($108,656.18 in the aggregate) only in connection with the following payments:

 

	
1.  

	
$5,000.00 for the payment of operating expenses for the editing department of the Company.

 

	
2.  

	
$4,000.00 for the payment of wages to Jordan Silverstein.

 

	
3.  

	
$2,806.25 for the payment of wages to Snezana Veselinovich.

 

	
4.  

	
$2,000.00 for the payment of wages to Chris Boyle.

 

	
5.  

	
$750.00 for the payment of wages to Chuck Baker.

 

	
6.  

	
$8,000.00 for the payment of wages to Frank Lamendola.

 

	
7.  

	
$9,500 for rental payments in connection with the lease of the property located at 81 Greene Street, Fourth Floor, New York, NY 10012.

 

	
8.  

	
$900.00 for utility payments.

 

	
9.  

	
$900.00 for the payment of operating expenses of the Company owed to Voxel.

 

	
10.  

	
 $300.00 for the payment of operating expenses of the Company owed to m5.

 

	
11.  

	
$950.00 for the payment of operating expenses of the Company owed to xo.

 

	
12.  

	
$1,000.00 for the payment of operating expenses of the Company owed to Brightcove.

 

	
13.  

	
$50.00 for the payment of operating expenses of the Company owed to Webex.

 

	
14.  

	
$150.00 for the payment of operating expenses of the Company owed to Amazon Web.

 

	
15.  

	
$150.00 for office supplies.

 

	
16.  

	
$9,400.00 for the payment of D&O Insurance.

 

	
17.  

	
$20,000.00 for the payment of a portion of the deposit owed by the Company to Solution Set.

 

	
18.  

	
$30,799.93 for payments of amounts owed under the Company’s American Express and Capital One credit cards.

 

	
19.  

	
$5,000.00 for amounts owed to Alesco in connection with a contract dispute between the Company and Alesco if a settlement between the parties is reached whereby the Company obtains all data for database is obtained.  If such settlement is not obtained, the Company shall promptly repay $5,000.00 to the Philmore Anderson IV.

 

	
20.  

	
$5,000.00 for legal fees owed to SorinRoyerCooper LLC.

 

	
21.  

	
$20,000.00 for the payment of wages to Jeffrey Forster.

 

 

 

 

7

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