Document:

Exhibit 10.6 to Form 10-Q -- Q2 Fy'06

    EXHIBIT
      10.6

    

    TRANSACTION
      SYSTEMS ARCHITECTS, INC.

    2000
      NON-EMPLOYEE DIRECTOR STOCK OPTION PLAN

     

    as
      amended by the Board of Directors on March 7, 2006

     

    

     

    1. Purpose
      of the Plan.
      The
      purpose of the Transaction Systems Architects, Inc. 2000 Non-Employee Director
      Stock Option Plan is to promote the long-term growth of the Company by
      increasing the proprietary interest of Non-Employee Directors in the Company
      and
      to retain highly qualified and capable Non-Employee Directors.

     

    2. Definitions.
      Unless
      the context clearly indicates otherwise, the following terms shall have the
      following meanings:

     

    “Board”
      means
      the Board of Directors of the Company.

     

    “Code”
      shall
      mean the Internal Revenue Code of 1986, as amended.

     

    “Company”
      means
      Transaction Systems Architects, Inc.

     

    “Disability”
      shall
      mean permanent and total disability as defined in Section 22(e)(3) of the
      Code.

     

    “Exchange
      Act”
      shall
      mean the Securities Exchange Act of 1934, as amended.

     

    “Fair
      Market Value”
      shall
      mean the closing price (last trade) on the date in question, as such price
      is
      reported by the National Association of Securities Dealers on the Nasdaq
      National Market or any successor system for a share of Class A Common Stock
      of
      the Company.

     

    “Option”
      means an
      option to purchase Shares awarded under Section 4.

     

    “Option
      Grant Date” means
      May
      5, 2000.

     

    “Optionee”
      means a
      Non-Employee Director of the Company to whom an Option has been
      granted.

     

    “Non-Employee
      Director”
      means a
      director of the Company who is not an employee of the Company or any subsidiary
      of the Company.

     

    “Plan”
      means
      the Transaction Systems Architects, Inc. 2000 Non-Employee Director Stock Option
      Plan, as amended from time to time.

     

    “Shares”
      means
      shares of the Class A Common Stock of the Company.

     

    “Stock
      Option Agreement”
      means a
      written agreement between a Non-Employee Director and the Company evidencing
      an
      Option in such form as the Committee shall approve.

     

    3. Administration
      of the Plan.
      The Plan
      shall be administered by the Compensation Committee of the Board, or such other
      committee of the Board as may be directed by the Board consisting of no less
      than two persons (the “Committee”). Alternatively, the Board may elect to
      administer the Plan in whole or in part in which case references to the
      Committee herein shall also mean the Board, as applicable. All members of the
      committee shall be “Non-Employee Directors” within the meaning of Rule 16b-3
      under the Exchange Act. The Committee shall be appointed from time to time
      by,
      and shall serve at the pleasure of, the Board. The Committee shall be authorized
      to interpret the Plan and may, from time to time, adopt, amend and rescind
      such
      rules, regulations and procedures as it may deem advisable to implement and
      administer the Plan. The interpretation and construction by the Committee of
      any
      provision of the Plan, any Option granted hereunder or any agreement evidencing
      any such Option shall be final, conclusive and binding upon all
      parties.

     

    All
      expenses and liabilities incurred by the Committee in the administration of
      the
      Plan shall be borne by the Company. The Committee may employ attorneys,
      consultants, accountants or other persons in connection with the administration
      of the Plan. The Company, and its officers and directors, shall be entitled
      to
      rely upon the advice, opinions or valuations of any such persons. No member
      of
      the Board or the Committee shall be liable for any action, determination or
      interpretation taken or made in good faith with respect to the Plan or any
      Option granted hereunder.

     

    The
      Committee shall have full power and authority to interpret and construe the
      Plan
      and adopt such rules and regulations as it shall deem necessary and advisable
      to
      implement and administer the Plan. All such interpretations, rules and
      regulations shall be conclusive and binding on all parties.

     

    4. One
      Time Option Grant.
      On the
      Option Grant Date, each person who is a Non-Employee Director as of such date
      shall be granted an Option to purchase 6,250 Shares. Each Option granted under
      the Plan shall be evidenced by a Stock Option Agreement. No person shall have
      any rights under any Option granted under the Plan unless and until the Company
      and the person to whom such Option shall have been granted shall have executed
      and delivered a Stock Option Agreement.

     

    5. Eligibility.
      Non-Employee Directors of the Company shall be eligible to participate in the
      Plan in accordance with Section 4.

     

    6. Shares
      Subject to the Plan.
      Subject
      to adjustment as provided in Section 11, the aggregate number of Shares which
      may be issued or delivered upon the exercise of Options shall not exceed 25,000
      Shares. The Shares that may be subject to Options granted under this Plan may
      be
      either authorized and unissued shares or shares reacquired at any time and
      now
      or hereafter held as treasury stock as the Committee may determine.

     

    7. Non-Transferability
      of Options.
      Options
      shall not be transferable otherwise than by will or the laws of descent and
      distribution, or pursuant to a domestic relations order (within the meaning
      of
      Rule 16a-12 of the Securities Exchange Act of 1934, as amended), and during
      an
      Optionee’s lifetime an Option shall be exercisable only by the Optionee or any
      permitted transferee.

     

    8. Non-Qualified
      Options.
      Each
      Option issued hereunder shall not constitute nor be treated as an “incentive
      stock option” as defined in Section 422 of the Code or an option described in
      Section 423(b) of the Code and will be a “non-qualified stock option” for
      federal income tax purposes.

     

    9. Exercise
      Price.
      The
      Option exercise price per share under each Option shall be equal to 100% of
      the
      Fair Market Value per Share subject to the Option on the Option Grant
      Date.

     

    10. Exercise
      of Options.
      An
      Option may not be exercised during the first year after the Option Grant Date.
      After the first anniversary of the Option Grant Date, it may be exercised as
      to
      not more than 33-1/3% of the Shares available for purchase under the Option
      and,
      after the second and third anniversaries of the Option Grant Date, it may be
      exercised as to not more than an additional 33-1/3% of such shares plus any
      shares as to which the Option might theretofore have been exercisable but shall
      not have been exercised. No option shall be exercised later than ten years
      after
      the Option Grant Date.

     

    Except
      as
      provided in this Section 10, all Options granted to a Non-Employee Director
      shall automatically be forfeited by such person at the time such person shall
      cease to be a Non-Employee Director provided that an Optionee may exercise
      vested options within 30 days after termination unless the termination of a
      Non-Employee Director’s service on the Board results from an act of (a) fraud or
      intentional misrepresentation or (b) embezzlement, misappropriation or
      conversion of assets or opportunities of the Company or any direct or indirect
      majority-owned subsidiary of the Company, by such Non-Employee Director. The
      determination of whether termination results from such act shall be made by
      the
      Board, whose determination shall be conclusive. If service by the Optionee
      as a
      Non-Employee Director terminates by reason of Disability, the unexercised
      portion of any Option held by such Optionee at that time may be exercised within
      one year after the date on which the Optionee ceased to serve as a Non-Employee
      Director, but no later than the date the Option expires, and to the extent
      that
      the Optionee could have otherwise exercised such Option if it had been
      completely exercisable. To the extent that the Optionee is not entitled to
      exercise the Option on such date, or if the Optionee does not exercise it within
      the time specified, such Option shall terminate. The Committee shall have the
      authority to determine the date an Optionee ceases to serve as a Non-Employee
      Director by reason of his Disability. If an Optionee dies while serving as
      a
      Non-Employee Director of the Company (or dies within a period of 30 days after
      termination of his service as a Non-Employee Director for any reason other
      than
      Disability or within a period of one year after termination of his service
      as a
      Non-Employee Director by reason of Disability), the unexercised portion of
      any
      Option held by such Optionee at the time of his death may be exercised within
      one year after the date of such Optionee’s death, but no later than the date the
      Option expires, and to the extent that the Optionee could have otherwise
      exercised such Option if it had been completely exercisable. Such Option may
      be
      exercised by the executor or administrator of the Optionee’s estate or by any
      person or persons who shall have acquired the Option directly from the Optionee
      by bequest or inheritance. To the extent that the Option is not entitled to
      be
      exercised on such date or if the Option is not exercised within the time
      specified, such Option shall terminate.

     

    An
      Option
      may not be exercised for a fraction of a Share. An Option shall be deemed to
      be
      exercised when written notice of such exercise has been given to the Company
      in
      accordance with the terms of the Stock Option Agreement by the Optionee entitled
      to exercise the Option and full payment for the Shares with respect to which
      the
      Option is exercised has been received by the Company. Payment for the Shares
      upon exercise of an Option shall be made in cash, by certified check, or if
      authorized by the Committee, by delivery of other Shares having a Fair Market
      Value on the date of delivery equal to the aggregate exercise price of the
      Shares as to which the Option is being exercised, or if authorized by the
      Committee, by authorizing the Company to withhold from the total number of
      Shares to be acquired upon exercise of an Option that number of Shares having
      an
      aggregate Fair Market Value (as of the date the withholding is effected) that
      would equal the aggregate exercise price of the Shares as to which the Option
      is
      being exercised, or by any combination of such methods of payment or by any
      other method of payment that may be permitted under applicable law and
      authorized by the Committee. Each exercise of an Option shall reduce, by an
      equal number, the total number of Shares that may thereafter be purchased under
      such Option.

     

    11. Adjustments.
      In
      the
      event that the outstanding Shares shall be increased or decreased or changed
      into or exchanged for a different number or kind of shares of stock or other
      securities of the Company or of another corporation, effected without the
      receipt of consideration by the Company, through reorganization, merger or
      consolidation, recapitalization, reclassification, stock split, reverse stock
      split, split-up, combination or exchange of shares or declaration of any
      dividends payable in Shares, the Board shall appropriately adjust, subject
      to
      any required action by the stockholders of the Company, (i) the number of Shares
      (and the Option exercise price per share) subject to the unexercised portion
      of
      any outstanding Option (to the nearest possible full share), and (ii) the number
      of Shares for which Options may be granted under the Plan, as set forth in
      Section 6 hereof, and such adjustments shall be final, conclusive and binding
      for all purposes of the Plan. Except as expressly provided herein, no issuance
      by the Company of shares of stock of any class shall affect, and no adjustment
      by reason thereof shall be made with respect to, the number or price of Shares
      subject to an Option.

     

    Notwithstanding
      the foregoing, in the event of (i) any offer or proposal to holders of the
      Company’s Shares relating to the acquisition of their shares, including, without
      limitation, through purchase, merger or otherwise, or (ii) any transaction
      generally relating to the acquisition of substantially all of the assets or
      business of the Company, or (iii) the dissolution or liquidation of the Company,
      the Committee may make such adjustment as it deems equitable in respect of
      outstanding Options (and in respect of the Shares for which Options may be
      granted under the Plan), including, without limitation, the revision,
      acceleration, cancellation, or termination of any outstanding Options, or the
      change, conversion or exchange of the Shares under outstanding Options (and
      of
      the Shares for which Options may be granted under the Plan) into or for
      securities or other property of another corporation. Any such adjustments by
      the
      Committee shall be final, conclusive and binding for all purposes of the
      Plan.

     

    12. Amendment
      of the Plan.
      The
      Board may amend the Plan from time to time as it deems desirable in its sole
      discretion without approval of the stockholders of the Company, except to the
      extent stockholder approval is required by Rule 16b-3 of the Exchange Act,
      applicable NASDAQ National Market or stock exchange rules, applicable Code
      provisions, or other applicable laws or regulations.

     

    13. Termination
      of the Plan.
      The
      Board may terminate the Plan at any time in its sole discretion. No Option
      may
      be granted hereunder after termination of the Plan. The termination or amendment
      of the Plan shall not alter or impair any rights or obligations under any Option
      previously granted under the Plan in any material adverse way without the
      affected Optionee’s consent.

     

    14. Modification,
      Extension and Renewal of Options.
      Within
      the limitations of the Plan and subject to Section 11, the Committee may modify,
      extend or renew outstanding Options or accept the cancellation of outstanding
      Options for the granting of new Options in substitution therefor.
      Notwithstanding the preceding sentence, except for any adjustment described
      in
      Section 11, (i) no modification of an Option shall, without the consent of
      the
      Optionee, alter or impair any rights or obligations under any Option previously
      granted under the Plan in any material adverse way without the affected
      Optionee’s consent, and (ii) the exercise price of outstanding Options may not
      be altered, amended or modified.

     

    15. Governing
      Law.
      The Plan
      and all Stock Option Agreements executed in connection with the Plan shall
      be
      governed by and construed in accordance with the laws of the State of Delaware,
      without regard to conflict of laws principles.

     

    16. Successors.
      This
      Plan is binding on and will inure to the benefit of any successor to the
      Company, whether by way of merger, consolidation, purchase, or
      otherwise.

     

    17. Severability.
      If any
      provision of the Plan or any Stock Option Agreement shall be held illegal or
      invalid for any reason, such illegality or invalidity shall not affect the
      remaining provisions of the Plan or such agreement, and the Plan and such
      agreement shall each be construed and enforced as if the invalid provisions
      had
      never been set forth therein.

     

    18. Plan
      Provisions Control.
      The
      terms of the Plan govern all Options granted under the Plan, and in no event
      will the Committee have the power to grant any Option under the Plan that is
      contrary to any of the provisions of the Plan. In the event any provision of
      any
      Option granted under the Plan shall conflict with any term in the Plan, the
      term
      in the Plan shall control.

     

    19. Headings.
      The
      headings used in the Plan are for convenience only, do not constitute a part
      of
      the Plan, and shall not be deemed to limit, characterize, or affect in any
      way
      any provisions of the Plan, and all provisions of the Plan shall be construed
      as
      if no captions had been used in the Plan.

     

    20. Rights
      as Stockholder.
      No
      person shall have any right as a stockholder of the Company with respect to
      any
      Shares which are subject to an Option unless and until such person becomes
      a
      stockholder of record with respect to such Shares.Exhibit 10.7 to Form 10-Q -- Q2 Fy'06

    EXHIBIT
      10.7

    

    TRANSACTION
      SYSTEMS ARCHITECTS, INC.

    2002
      NON-EMPLOYEE DIRECTOR STOCK OPTION PLAN

    Amended
      and restated effective March 9, 2004

    Amended
      by the Board of Directors on March 7, 2006

     

                   
      1. Approval of the Plan.
      The Plan
      was originally approved by the Board in January 2002 and by the stockholders
      at
      the Annual Meeting of Stockholders held on February 19, 2002. The amendment
      and
      restatement of the Plan effective March 9, 2004 was approved by the Board in
      December 2003 and by the stockholders at the Annual Meeting of Stockholders
      held
      on March 9, 2004.

    

    2.
      Purpose of the Plan.
      The
      purpose of the Plan is to promote the long-term growth of the Company by
      increasing the proprietary interest of Non-Employee Directors in the Company
      and
      to retain highly qualified and capable Non-Employee Directors. 

    

    3.
      Definitions.
      Unless
      the context clearly indicates otherwise, the following terms shall have the
      following meanings: 

    

    "Board"
      shall
      mean the Board of Directors of the Company. 

    

    “Change
      in Control”
      means
      the occurrence of any of the following events:

    

    (i) any
      individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2)
      of the Exchange Act) (a “Person”) is or becomes the beneficial owner (within the
      meaning of Rule 13d-3 promulgated under the Exchange Act) of 20% or more of
      the
      combined voting power of the then-outstanding Voting Stock of the Company;
      provided, however, that:

    

    (1) for
      purposes of this paragraph (i), the following acquisitions shall not constitute
      a Change in Control: (A) any acquisition of Voting Stock of the Company directly
      from the Company that is approved by a majority of the Incumbent Directors,
      (B)
      any acquisition of Voting Stock of the Company by the Company or any subsidiary
      of the Company, (C) any acquisition of Voting Stock of the Company by the
      trustee or other fiduciary holding securities under any employee benefit plan
      (or related trust) sponsored or maintained by the Company or any subsidiary
      of
      the Company, and (D) any acquisition of Voting Stock of the Company by any
      Person pursuant to a Business Transaction that complies with clauses (A), (B)
      and (C) of subparagraph (i)(3) below;

    

    (2) if
      any
      Person is or becomes the beneficial owner of 20% or more of combined voting
      power of the then-outstanding Voting Stock of the Company as a result of a
      transaction described in clause (A) of subparagraph (i)(1) above and such Person
      thereafter becomes the beneficial owner of any additional shares of Voting
      Stock
      of the Company representing 1% or more of the then-outstanding Voting Stock
      of
      the Company, other than in an acquisition directly from the Company that is
      approved by a majority of the Incumbent Directors or other than as a result
      of a
      stock dividend, stock split or similar transaction effected by the Company
      in
      which all holders of Voting Stock are treated equally, such subsequent
      acquisition shall be treated as a Change in Control; 

    

    (3) a
      Change
      in Control will not be deemed to have occurred if a Person is or becomes the
      beneficial owner of 20% or more of the Voting Stock of the Company as a result
      of a reduction in the number of shares of Voting Stock of the Company
      outstanding pursuant to a transaction or series of transactions that is approved
      by a majority of the Incumbent Directors unless and until such Person thereafter
      becomes the beneficial owner of any additional shares of Voting Stock of the
      Company representing 1% or more of the then-outstanding Voting Stock of the
      Company, other than as a result of a stock dividend, stock split or similar
      transaction effected by the Company in which all holders of Voting Stock are
      treated equally; and 

    

    (4) if
      at
      least a majority of the Incumbent Directors determine in good faith that a
      Person has acquired beneficial ownership of 20% or more of the Voting Stock
      of
      the Company inadvertently, and such Person divests as promptly as practicable
      but no later than the date, if any, set by the Incumbent Board a sufficient
      number of shares so that such Person beneficially owns less than 20% of the
      Voting Stock of the Company, then no Change in Control shall have occurred
      as a
      result of such Person’s acquisition; or

    

    (ii) a
      majority of the Board ceases to be comprised of Incumbent Directors;
      or

    

    (iii) the
      consummation of a reorganization, merger or consolidation, or sale or other
      disposition of all or substantially all of the assets of the Company or the
      acquisition of the stock or assets of another corporation, or other transaction
      (each, a “Business Transaction”), unless, in each case, immediately following
      such Business Transaction (A) the Voting Stock of the Company outstanding
      immediately prior to such Business Transaction continues to represent (either
      by
      remaining outstanding or by being converted into Voting Stock of the surviving
      entity or any parent thereof), more than 60% of the combined voting power of
      the
      then outstanding shares of Voting Stock of the entity resulting from such
      Business Transaction (including, without limitation, an entity 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), (B) no
      Person (other than the Company, such entity resulting from such Business
      Transaction, or any employee benefit plan (or related trust) sponsored or
      maintained by the Company, any subsidiary of the Company or such entity
      resulting from such Business Transaction) beneficially owns, directly or
      indirectly, 20% or more of the combined voting power of the then outstanding
      shares of Voting Stock of the entity resulting from such Business Transaction,
      and (C) at least a majority of the members of the Board of Directors of the
      entity resulting from such Business Transaction were Incumbent Directors at
      the
      time of the execution of the initial agreement or of the action of the Board
      providing for such Business Transaction; or

    

    (iv) approval
      by the stockholders of the Company of a complete liquidation or dissolution
      of
      the Company, except pursuant to a Business Transaction that complies with
      clauses (A), (B) and (C) of paragraph (iii).

    

    "Code"
      shall
      mean the Internal Revenue Code of 1986, as amended. 

    

    "Company"
      shall
      mean Transaction Systems Architects, Inc. 

    

    "Disability"
      shall
      mean permanent and total disability as defined in Section 22(e)(3) of the
      Code. 

    

    "Duman"
      and
      "Alexander"
      shall
      mean Mr. Gregory J. Duman and Roger K. Alexander, respectively,
      each presently a nominee for election to the Board as a Non-Employee Director.
      

    

    "Employee"
      shall
      mean an employee of either the Company or any subsidiary thereof. 

    

    "Exchange
      Act"
      shall
      mean the Securities Exchange Act of 1934, as amended. 

    

    "Fair
      Market Value"
      shall
      mean the closing price (last trade) on the date in question, as such price
      is
      reported by the National Association of Securities Dealers on the NASDAQ
      National Market or any successor system for a share of Class A Common Stock
      of the Company. 

    

    “Incumbent
      Directors” means
      the
      individuals who, as of the date hereof, are Directors of the Company and any
      individual becoming a Director subsequent to the date hereof whose election,
      nomination for election by the Company’s stockholders, or appointment, was
      approved by a vote of at least two-thirds of the then Incumbent Directors
      (either by a specific vote or by approval of the proxy statement of the Company
      in which such person is named as a nominee for director, without objection
      to
      such nomination); provided, however, that an individual shall not be an
      Incumbent Director if such individual’s election or appointment to the Board
      occurs as a result of an actual or threatened election contest (as described
      in
      Rule 14a-12(c) of the Exchange Act) 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.

    

    "Option"
      shall
      mean an option to purchase Shares granted under the Plan. 

    

    "First
      Option Grant Date"
      shall
      mean March 4, 2002. 

    

    “Option
      Grant Date”
      shall
      mean the date an Option is granted to a Non-Employee Director under the
      Plan.

    

    "Optionee"
      shall
      mean a Non-Employee Director of the Company to whom an Option has been granted
      under the Plan. 

    

    "Non-Employee
      Director"
      shall
      mean a director of the Company who is not an employee of the Company or any
      subsidiary of the Company at the time any option is granted hereunder. For
      so
      long as an individual continues to serve without interruption as either a
      Non-Employee Director or an Employee subsequent to his/her receipt of an option
      hereunder, said person shall for purposes of those options previously granted
      hereunder continue to be considered a Non-Employee Director. 

    

    "Plan"
      shall
      mean the Transaction Systems Architects, Inc. 2002 Non-Employee Director
      Stock Option Plan, as amended from time to time. 

    

    "Shares"
      shall
      mean shares of the Class A Common Stock of the Company. 

    

    "Stock
      Option Agreement"
      shall
      mean a written agreement between a Non-Employee Director and the Company
      evidencing an Option in such form as the Board shall approve. 

    

    “Voting
      Stock”
      means
      securities entitled to vote generally in the election of directors.

    

    4.
      Administration of the Plan.
      The Plan
      shall be administered by the Board. The Board shall be authorized to interpret
      the Plan and may, from time to time, adopt, amend and rescind such rules,
      regulations and procedures as it may deem advisable to implement and administer
      the Plan. The interpretation and construction by the Board of any provision
      of
      the Plan, any Option granted hereunder or any agreement evidencing any such
      Option shall be final, conclusive and binding upon all parties. 

    

    All
      expenses and liabilities incurred by the Board in the administration of the
      Plan
      shall be borne by the Company. The Board may employ attorneys, consultants,
      accountants or other persons in connection with the administration of the Plan.
      The Company, and its officers and directors, shall be entitled to rely upon
      the
      advice, opinions or valuations of any such persons. No member of the Board
      shall
      be liable for any action, determination or interpretation taken or made in
      good
      faith with respect to the Plan or any Option granted hereunder. 

    

    The
      Board
      shall have full power and authority to interpret and construe the Plan and
      adopt
      such rules and regulations as it shall deem necessary and advisable to implement
      and administer the Plan. All such interpretations, rules and regulations shall
      be conclusive and binding on all parties. 

    

    5.
      Life of Option Grants.
      Notwithstanding and term or conditions to the contrary stated herein, no Option
      granted under the Plan shall be exercisable, in whole or in part, after
      10 years from the date of grant. 

    

    6.
      Specific Option Grants.
      On the
      First Option Grant Date, the following grants of Options shall be made:

    

    (i) Duman
      shall be granted an Option to purchase 20,000 Shares; and 

    

    (ii) Alexander
      shall be granted an Option to purchase 16,000 Shares. 

    

    7.
      Other Option Grants.
      Beginning on the day after the Annual Meeting of Stockholders held on
      February 19, 2002, any individual who is for the first time either duly
      appointed by the Board or elected by the Stockholders as a Non-Employee Director
      shall on the date of either such appointment or election be granted an Option
      to
      purchase 20,000 Shares. Beginning with the Annual Meeting of Stockholders held
      on February 27, 2003, each Non-Employee Director who is a duly elected member
      of
      the Board upon the conclusion of that or any subsequent Annual Meeting of
      Stockholders and who has previously served as a Non-Employee Director shall
      be
      granted an Option to purchase 4,000 shares on the date of such Annual
      Meeting of Stockholders. 

    

    8.
      Option Agreement.
      Each
      Option granted under the Plan shall be evidenced by a Stock Option Agreement.
      No
      person shall have any rights under any Option granted under the Plan unless
      and
      until the Company and the person to whom such Option shall have been granted
      shall have executed and delivered a written Option Agreement. Exclusive of
      the
      Exercise Price, date of grant, and the time of exercise, the terms and
      conditions of each Option Agreement shall be determined by the Board.

    

    9.
      Shares Subject to the Plan.
      Subject
      to adjustment as provided in Section 15, the aggregate number of Shares
      which may be issued or delivered upon the exercise of Options shall not exceed
      250,000 Shares. The Shares that may be subject to Options may be either
      authorized and unissued shares or shares reacquired at any time and now or
      hereafter held as treasury stock, as the Board may determine. 

    

    10.
      Non-Transferability of Options.
      Options
      shall not be transferable otherwise than by will or the laws of descent and
      distribution, or pursuant to a domestic relations order (within the meaning
      of
      Rule 16a-12 of the Securities Exchange Act of 1934, as amended), and during
      an
      Optionee's lifetime an Option shall be exercisable only by the Optionee or
      any
      permitted transferee. 

    

    11.
      Non-Qualified Options.
      Each
      Option issued hereunder shall not constitute nor be treated as an "incentive
      stock option" as defined in Section 422 of the Code or an option described
      in Section 423(b) of the Code: each Option will be a "non-qualified stock
      option" for federal income tax purposes. 

    

    12.
      Exercise Price.
      The
      Option exercise price per share under each Option shall be equal to 100% of
      the
      Fair Market Value per Share subject to the Option on the Option Grant Date.
      

    

    13.
      Exercise of Options. Subject
      to Section 11, an Option may not be exercised during the first year after the
      Option Grant Date. For any outstanding Option granted prior to March 9, 2004,
      after
      the
      first anniversary of the Option Grant Date, it may be exercised as to not more
      than 331/3%
      of the
      Shares available for purchase under the Option and, after each of the second
      and
      third anniversaries of the Option Grant Date, it may be exercised as to not
      more
      than an additional 33
      1/3%
      of such
      shares plus any shares as to which the Option might theretofore have been
      exercisable but shall not have been exercised. Options granted on or after
      March
      9, 2004 (following the Annual Meeting of Stockholders)
      may be
      exercised as to 100% of the Shares available for purchase under the Option
      upon
      the first anniversary of the Option Grant Date. No option shall be exercised
      later than ten years after the Option Grant Date.

    

    Except
      as
      provided in this Section 13, all Options granted to a Non-Employee Director
      shall automatically be forfeited by such person at the time such person shall
      cease to be a Non-Employee Director, provided, however that an Optionee may
      exercise then-vested options within 30 days after termination unless said
      termination of results from an act of (a) fraud or intentional
      misrepresentation or (b) embezzlement, misappropriation or conversion of
      assets or opportunities of the Company or any direct or indirect majority-owned
      subsidiary of the Company, by such Non-Employee Director. The determination
      of
      whether termination resulted from such act shall be made by the Board, whose
      determination shall be conclusive. If service by the Optionee as a Non-Employee
      Director terminates by reason of Disability, the unexercised portion of any
      Option held by such Optionee at that time may be exercised within one year
      after
      the date on which the Optionee ceased to serve as a Non-Employee Director,
      but
      no later than the date the Option expires, and to the extent that the Optionee
      could have otherwise exercised such Option if it had been completely
      exercisable. To the extent that the Optionee is not entitled to exercise the
      Option on such date, or if the Optionee does not exercise it within the time
      specified, such Option shall terminate. The Board shall have the authority
      to
      determine the date an Optionee ceases to serve as a Non-Employee Director by
      reason of his Disability. If an Optionee dies while serving as a Non-Employee
      Director of the Company (or dies within a period of 30 days after
      termination of his service as a Non-Employee Director for any reason other
      than
      Disability or within a period of one year after termination of his service
      as a
      Non-Employee Director by reason of Disability), the unexercised portion of
      any
      Option held by such Optionee at the time of his death may be exercised within
      one year after the date of such Optionee's death, but no later than the date
      the
      Option expires, and to the extent that the Optionee could have otherwise
      exercised such Option if it had been completely exercisable. Such Option may
      be
      exercised by the executor or administrator of the Optionee's estate or by any
      person or persons who shall have acquired the Option directly from the Optionee
      by bequest or inheritance. To the extent that the Option is not entitled to
      be
      exercised on such date or if the Option is not exercised within the time
      specified, such Option shall terminate. 

    

    An
      Option
      may not be exercised for a fraction of a Share. An Option shall be deemed to
      be
      exercised when written notice of such exercise has been given to the Company
      in
      accordance with the terms of the Stock Option Agreement by the Optionee entitled
      to exercise the Option and full payment for the Shares with respect to which
      the
      Option is exercised has been received by the Company. Payment for the Shares
      upon exercise of an Option shall be made in cash, by certified check, or by
      any
      other method of payment that may be permitted under applicable law and
      authorized by the Board. Each exercise of an Option shall reduce, by an equal
      number, the total number of Shares that may thereafter be purchased under such
      Option. 

    

    14.
      Acceleration
      of Options. Notwithstanding
      any other provision of the Plan to the contrary, all Options granted under
      the
      Plan shall become immediately exercisable upon the occurrence of a Change in
      Control of the Company if the Optionee holding such Option is a Non-Employee
      Director of the Company or any subsidiary of the Company on the date of the
      consummation of such Change in Control.

    

    15.
      Adjustments.
      In the
      event that the outstanding Shares shall be increased or decreased or changed
      into or exchanged for a different number or kind of shares of stock or other
      securities of the Company or of another corporation, effected without the
      receipt of consideration by the Company, through reorganization, merger or
      consolidation, recapitalization, reclassification, stock split, reverse stock
      split, split-up, combination or exchange of shares or declaration of any
      dividends payable in Shares, the Board shall appropriately adjust, subject
      to
      any required action by the stockholders of the Company, (i) the number of
      Shares (and the Option exercise price per share) subject to the unexercised
      portion of any outstanding Option (to the nearest possible full share), and
      (ii) the number of Shares for which Options may be granted under the Plan,
      as set forth in Section 9 hereof, and such adjustments shall be final,
      conclusive and binding for all purposes of the Plan. Except as expressly
      provided herein, no issuance by the Company of shares of stock of any class
      shall affect, and no adjustment by reason thereof shall be made with respect
      to,
      the number or price of Shares subject to an Option. 

    

    Notwithstanding
      the foregoing, in the event of (i) any offer or proposal to holders of the
      Company's Shares relating to the acquisition of their Shares, including, without
      limitation, through purchase, merger or otherwise, or (ii) any transaction
      generally relating to the acquisition of substantially all of the assets or
      business of the Company, or (iii) the dissolution or liquidation of the
      Company, the Board may make such adjustment as it deems equitable in respect
      of
      outstanding Options (and in respect of the Shares for which Options may be
      granted under the Plan), including, without limitation, the revision,
      acceleration, cancellation, or termination of any outstanding Options, or the
      change, conversion or exchange of the Shares under outstanding Options (and
      of
      the Shares for which Options may be granted under the Plan) into or for
      securities or other property of another corporation. Any such adjustments by
      the
      Board shall be final, conclusive and binding for all purposes of the Plan.
      

     

                   16.
      Amendment of the Plan.
      (a) The
      Board may amend the Plan from time to time as it deems desirable in its sole
      discretion without approval of the stockholders of the Company, except to the
      extent stockholder approval is required by Rule 16b-3 of the Exchange Act,
      applicable NASDAQ National Market or stock exchange rules, applicable Code
      provisions, or other applicable laws or regulations. Notwithstanding
      the foregoing, in no event shall the Board amend Section 16(b) of the Plan
      in
      whole or in part without approval of the stockholders of the
      Company.

     

            (b)
      The Board shall not, without the further approval of the stockholders of the
      Company, authorize the amendment of any Option outstanding at any time to reduce
      the Option exercise price per share. Furthermore, no Option shall be canceled
      and replaced with awards having a lower Option exercise price per share without
      further approval of the stockholders of the Company. This Section 16(b) is
      intended to prohibit the repricing of “underwater” Options and shall not be
      construed to prohibit the adjustments provided for in Section 15 of the
      Plan.

    

    17.
      Termination of the Plan.
      The
      Board may terminate the Plan at any time in its sole discretion. No Option
      may
      be granted hereunder after termination of the Plan. The termination or amendment
      of the Plan shall not alter or impair any rights or obligations under any Option
      previously granted under the Plan in any material adverse way without the
      affected Optionee's consent. 

    

    18.
      Modification, Extension and Renewal of Options.
      Within
      the limitations of the Plan and subject to Sections 15 and 16, the Board may
      modify, extend or renew outstanding Options or accept the cancellation of
      outstanding Options for the granting of new Options in substitution therefor.
      Notwithstanding the preceding sentence, except for any adjustment described
      in
      Section 15, no modification of an Option shall, without the consent of the
      Optionee, alter or impair any rights or obligations under any Option previously
      granted under the Plan in any material adverse way without the affected
      Optionee's consent.

    

    19.
      Governing Law.
      The Plan
      and all Stock Option Agreements executed in connection with the Plan shall
      be
      governed by and construed in accordance with the laws of the State of Delaware,
      without regard to conflict of laws principles. 

    

    20.
      Successors.
      The Plan
      is binding on and will inure to the benefit of any successor to the Company,
      whether by way of merger, consolidation, purchase, or otherwise. 

    

    21.
      Severability.
      If any
      provision of the Plan or any Stock Option Agreement shall be held illegal or
      invalid for any reason, such illegality or invalidity shall not affect the
      remaining provisions of the Plan or Stock Option Agreement, and the Plan and
      each Stock Option Agreement shall each be construed and enforced as if the
      invalid provisions had never been set forth therein. 

    

    22.
      Plan Provisions Control.
      The
      terms of the Plan govern all Options granted under the Plan, and in no event
      will the Board have the power to grant any Option under the Plan that is
      contrary to any of the provisions of the Plan. In the event any provision of
      any
      Option granted under the Plan shall conflict with any term in the Plan, the
      term
      in the Plan shall control. 

    

    23.
      Headings.
      The
      headings used in the Plan are for convenience only, do not constitute a part
      of
      the Plan, and shall not be deemed to limit, characterize, or affect in any
      way
      any provisions of the Plan, and all provisions of the Plan shall be construed
      as
      if no captions had been used in the Plan. 

    

    24.
      Rights as Stockholder.
      No
      person shall have any right as a stockholder of the Company with respect to
      any
      Shares which are subject to an Option unless and until such person becomes
      a
      stockholder of record with respect to such Shares.

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