Document:

InterCept, Inc. G. Lynn Boggs 2002 Stock Option Plan

  EXHIBIT 10.33
 INTERCEPT,
INC.
 G. LYNN BOGGS 2002 STOCK OPTION PLAN
 
 

  INTERCEPT, INC.
G. LYNN BOGGS 2002 STOCK OPTION PLAN
 TABLE OF CONTENTS

	  
 	  
 	  
 	 Page
 

	 
ARTICLE 1 – DEFINITIONS
 	 1
 
	  
 	  
 
	 
ARTICLE 2 – THE PLAN
 	 3
 
	  
 	  
 
	 2.1  
Name
 	 3
 
	  
 	  
 
	 2.2  
Purpose
 	 3
 
	  
 	  
 
	 2.3  
Effective Date
 	 3
 
	  
 	  
 
	 
ARTICLE 3 – PARTICIPANT
 	 3
 
	  
 	  
 
	 
ARTICLE 4 – ADMINISTRATION
 	 4
 
	  
 	  
 
	 4.1  
Duties and Powers of the Committee
 	 4
 
	  
 	  
 
	 4.2  
Interpretation; Rules
 	 4
 
	  
 	  
 
	 4.3  
No Liability
 	 4
 
	  
 	  
 
	 4.4  
Majority Rule
 	 4
 
	  
 	  
 
	 4.5  
Company Assistance
 	 4
 
	  
 	  
 
	 
ARTICLE 5 – SHARES OF STOCK SUBJECT TO PLAN
 	 4
 
	  
 	  
 
	 5.1  
Limitations
 	 4
 
	  
 	  
 
	 5.2  
Adjustments upon Changes in Capitalization, Merger or Asset Sale
 	 5
 
	  
 	  
 
	 
ARTICLE 6 – OPTIONS
 	 6
 
	  
 	  
 
	 6.1  
Types of Options Granted
 	 6
 
	  
 	  
 
	 6.2  
Option Grant and Agreement
 	 7
 
	  
 	  
 
	 6.3  
Exercise Price
 	 7
 
	  
 	  
 
	 6.4  
Exercise Period
 	 7
 
	  
 	  
 
	 6.5  
Option Exercise
 	 7
 
	  
 	  
 
	 6.6  
Non-Transferability of Option
 	 8
 
	  
 	  
 
	 6.7  
Termination of Employment or Service
 	 8
 
	  
 	  
 
	 6.8  
Employment Rights
 	 8
 
	  
 	  
 
	 6.9  
Effect of Change in Control
 	 9
 
	  
 	  
 
	 
ARTICLE 7 – TERMINATION AND AMENDMENT
 	 9
 
	  
 	  
 
	 7.1  
Termination and Amendment
 	 9
 
	  
 	  
 
	 7.2  
Effect on Optionee’s Rights
 	 9
 
	  
 	  
 
	 
ARTICLE 8 – MISCELLANEOUS
 	 9
 

 
 

   

	 8.1  
Stock Certificates
 	 9
 
	  
 	  
 
	 8.2  
Relationship to Other Compensation Plans
 	 9
 
	  
 	  
 
	 8.3  
Replacement or Amended Grants
 	 10
 
	  
 	  
 
	 8.4  
Forfeiture for Competition
 	 10
 
	  
 	  
 
	 8.5  
Forfeiture for Solicitation of Employees
 	 10
 
	  
 	  
 
	 8.6  
Plan Binding on Successors
 	 10
 
	  
 	  
 
	 8.7  
Singular, Plural; Gender
 	 10
 
	  
 	  
 
	 8.8  
Headings, etc., No Part of Plan
 	 10
 
	  
 	  
 
	 8.9  
Interpretation
 	 10
 
	  
 	  
 
	 
EXHIBIT A (Form of Stock Option Agreement)
 	 i
 
	  
 	  
 
	 
SCHEDULE A (Option Terms)
 	 v
 
	  
 	  
 
	 
SCHEDULE B (Notice of Exercise)
 	 vi
 
	  
 	  
 
	  
 	  
 

 
 
 

  INTERCEPT, INC.
G. LYNN BOGGS 2002 STOCK OPTION PLAN
 
ARTICLE 1
DEFINITIONS
 As used in this Plan, the following terms have the following meanings unless
the context clearly indicates to the contrary:
 “Acquisition” means (i) any consolidation or merger of
the Company with or into any other corporation or other entity or person in which the shareholders of the Company before such consolidation or merger own less than fifty percent (50%) of the Company’s voting power immediately after such
consolidation or merger; or (ii) a sale of all or substantially all of the assets of the Company. 
 “Applicable
Laws” means the requirements relating to the administration of stock option plans under U.S. state corporate laws, U.S. federal and state securities laws, the Code, any stock exchange or quotation system on which the
Stock is listed or quoted and the applicable laws of any foreign country or jurisdiction where Options are granted under the Plan. 
 “Board” means the Board of Directors of the Company.
 “Cause” has
the meaning given in the Employment Agreement.
 “Change in Control” has the meaning given in the
Employment Agreement.
 “Code” means the United States Internal Revenue Code of 1986, including
effective date and transition rules (whether or not codified). Any reference in this Plan to a specific section of the Code shall be deemed to include a reference to any corresponding provision of future law.
 “Committee” means a committee of at least two Directors appointed from time to time by the Board, having the duties and authority provided in
this Plan in addition to any other authority granted by the Board. In selecting the Committee, the Board shall consider (i) the benefits under Section 162(m) of the Code of having a Committee composed of Outside Directors for certain grants of
Options to highly compensated executives, and (ii) the benefits under Rule 16b-3 of having a Committee composed of either the entire Board or a Committee of at least two Directors who are Non-Employee Directors for Options granted to or held by any
Section 16 Insider. At any time that the Board shall not have appointed a committee as described above, any reference in this Plan to the Committee means the Board.
 “Company” means InterCept, Inc., a Georgia corporation.
 “Effective
Date” means April 16, 2002.
 “Director” means a member of the
Board.
 “Employee” means any person who is an employee (as defined in accordance with Section 3401(c)
of the Code) of the Company or any subsidiary of the Company. An Officer or Director who meets the foregoing definition is an Employee. An Employee shall not cease to be an Employee in the case of (i) any leave of absence approved by the Company or
(ii) transfers between locations of the Company or between the Company, any subsidiary, or any successor. Neither service as a Director
 
 

  nor payment of a director’s fee by the Company shall be sufficient, by itself, to constitute “employment” by the Company. 
 “Employment Agreement” means that certain Employment Agreement between the Optionee and the Company dated as of February 19, 2002.
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. Any reference in this Plan to a specific section of
the Exchange Act shall be deemed to include a reference to any corresponding provision of future law.
 “Exercise
Price” means the price at which the Optionee may purchase a share of Stock under a Stock Option Agreement.
 “Fair Market Value” means, as of any date, the value of a share of Stock determined as follows: 
 (i)       if the Stock is listed on any established stock exchange or a national market system, including, without limitation, the Nasdaq National Market or The Nasdaq SmallCap Market of The
Nasdaq Stock Market, its Fair Market Value shall be the closing sales price for a share of the Stock (or the closing bid, if no sales were reported) as quoted on such exchange or system for the last market trading day prior to the time of
determination, as reported in The Wall Street Journal or such other source as the Committee deems reliable; 
 (ii)      if the Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, its Fair Market Value shall be the mean between the high bid and low asked prices
for a share of the Stock on the last market trading day prior to the day of determination; or 
 (iii)    in the absence of an established market for the Stock, the Fair Market Value shall be determined in good faith by the Committee. 
 “Independent Director” means a Director who is not an Employee of the Company.
 “Non-Employee
Director” shall have the meaning provided in Rule 16b-3 under the Exchange Act, as the same may be in effect from time to time, or in any successor rule to it, and shall be determined for all purposes under the Plan
according to interpretative or “no-action” positions with respect to it issued by the SEC.
 “Officer” means a person who constitutes an officer of the Company for the purposes of Section 16 of the Exchange Act, as determined by reference to such Section 16, and applicable SEC rules, regulations, and interpretative or
“no-action” positions, as the same may be in effect or provided from time to time, and to applicable judicial decisions.
 “Option” means an option to purchase Stock granted pursuant to Article 6 of this Plan.
 “Optionee” means G. Lynn Boggs.
 “Outside Director” has the meaning
provided in Section 162(m) of the Code.
 

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  “Permanent and Total Disability” shall have the same meaning as given to that
term by Code Section 22(e)(3) and any regulations or rulings promulgated under that Section of the Code.
 “Plan” means this G. Lynn Boggs 2002 Stock Option Plan of InterCept, Inc.
 “Purchasable” shall
refer to Stock that may be purchased by the Optionee under the terms of this Plan on or after a certain date specified in the applicable Stock Option Agreement.
 “Qualified Domestic Relations Order” shall have the meaning provided in the Code or in the Employee Retirement Income Security Act of 1974, or the rules and regulations promulgated
under the Code or such Act.
 “SEC” means the United States Securities and Exchange
Commission.
 “Section 16 Insider” means any person who is subject to the provisions of Section 16
of the Exchange Act, as provided in Rule 16a-2 promulgated pursuant to the Exchange Act.
 “Stock”
means the Common Stock, no par value, of the Company or, in the event that the outstanding shares of Stock are hereafter changed into or exchanged for shares of a different stock or securities of the Company or some other entity, such other stock or
securities.
 “Stock Option Agreement” means the agreement between the Company and the Optionee under
which the Optionee may purchase Stock under this Plan, the form of which is attached to this Plan as Exhibit A.
 
ARTICLE 2
THE PLAN
 2.1     
Name. This Plan shall be known as “The G. Lynn Boggs 2002 Stock Option Plan.”
 2.2     
Purpose. The purpose of the Plan is to advance the interests of the Company, its subsidiaries, and its shareholders by affording the Optionee an opportunity to acquire a proprietary interest in the
Company. The objective of the issuance of the Options is to promote the growth and profitability of the Company and its subsidiaries because the Optionee will be provided with an additional incentive to achieve the Company’s objectives through
participation in its success and growth and by encouraging his continued association with or service to the Company. The Optionee would not have agreed to serve as the Company’s President in the absence of the Options to be granted to him under
this Plan.
 2.3     
Effective Date. The Plan shall become effective on April 16, 2002. 
 
ARTICLE 3
PARTICIPANT
 The sole person eligible to participate in the Plan shall be G. Lynn Boggs.

  
 

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ARTICLE 4
ADMINISTRATION
 4.1     
Duties and Powers of the Committee. 
 (a)      The Plan shall be administered by the Committee. The Board may abolish the Committee at any time and re-vest in the Board the administration of the Plan. Appointment of Committee members shall be effective upon acceptance of appointment.
Committee members may resign at any time by delivering written notice to the Board. Vacancies in the Committee may only be filled by the Board. The Committee shall select one of its members as its chairman and shall hold its meetings at such times
and places as it may determine. The Committee shall keep minutes of its meetings and shall make such rules and regulations for the conduct of its business as it may deem necessary. The Committee shall have the power to act by unanimous written
consent in lieu of a meeting, and to meet by telephone. In administering the Plan, the Committee’s actions and determinations shall be binding on all interested parties. 
 (b)      The Committee shall have the power to determine matters as are specified in this Plan. To the extent not inconsistent with the provisions of
the Plan, the Committee may give the Optionee an election to surrender an Option in exchange for the grant of a new Option, and shall have the authority to amend or modify the Stock Option Agreement, or to waive any provision of it, provided that
the Optionee consents to such action. 
 4.2     
Interpretation; Rules. Subject to the express provisions of the Plan, the Committee also shall have complete authority to interpret the Plan, to prescribe, amend, and rescind rules and regulations
relating to it, and to make all other determinations necessary or advisable for the administration of the Plan, including, without limitation, amending or altering of the Plan and any Options granted under this Plan as may be required to comply with
or to conform to any Applicable Laws.
 4.3     
No Liability. Neither any member of the Board nor any member of the Committee shall be liable to any person for any act or determination made in good faith with respect to the Plan or any Option
granted under this Plan.
 4.4     
Majority Rule. A majority of the members of the Committee shall constitute a quorum, and any action taken by a majority at a meeting at which a quorum is present, or any action taken without a
meeting evidenced by a writing executed by all the members of the Committee, shall constitute the action of the Committee.
 4.5     
Company Assistance. The Company shall supply full and timely information to the Committee on all matters relating to the employment, death, retirement, disability, or other termination of employment
of the Optionee, and such other pertinent facts as the Committee may require. The Company shall furnish the Committee with such clerical and other assistance as is necessary in the performance of its duties.
 
ARTICLE 5
SHARES OF STOCK SUBJECT TO PLAN
 5.1     
Limitations. The number of shares of Stock that may be issued under this Plan shall be 150,000 as provided in the attached Stock Option Agreement. At all times the Company shall reserve and

  
 

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  keep available a sufficient number of Shares as shall be required to satisfy the requirements of all outstanding Options granted under this Plan. 

5.2     
Adjustments upon Changes in Capitalization, Merger or Asset Sale. 
 (a)      If the Committee determines that any dividend or other distribution (whether in the form of cash, shares of Stock, other securities, or other property),
recapitalization, reclassification, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, liquidation, dissolution, share exchange, or sale, transfer, exchange or other disposition of
all or substantially all of the assets of the Company, or exchange of Stock or other securities of the Company, issuance of warrants or other rights to purchase Stock or other securities of the Company, or other similar corporate transaction or
event, in the Committee’s sole discretion, affects the Stock such that an adjustment is determined by the Committee to be appropriate to prevent dilution or enlargement of the benefits or potential benefits intended by the Company to be made
available under the Plan or with respect to any Option, then the Committee shall, in such manner as it may deem equitable, adjust any or all of: 
 (i)      the number and kind of shares of Stock (or other securities or property) subject to outstanding Options; and 
 (ii)     the grant or exercise price with respect to any Option. 
 (b)      In the event of any transaction or event described in Section 5.2(a), the Committee, in its sole discretion, and on such terms and
conditions as it deems appropriate, either by the terms of the Option or by action taken before the occurrence of such transaction or event and either automatically or upon the Optionee’s request, is hereby authorized to take any one or more of
the following actions whenever the Committee determines that such action is appropriate to prevent dilution or enlargement of the benefits or potential benefits intended by the Company to be made available under the Plan or with respect to any
Option granted or issued under the Plan or to facilitate such transaction or event: 
 (i)      to provide for either the purchase of any such Option for an amount of cash equal to the amount that could have been obtained upon the exercise of such Option or realization of the Optionee’s rights had such Option been currently
exercisable or fully vested or the replacement of such Option with other rights or property selected by the Committee in its sole discretion; 
 (ii)     to provide that such Option shall be exercisable as to all shares covered thereby, notwithstanding anything to the contrary in the Plan or the provisions of such
Option; 
 (iii)    to provide that such Option be assumed by the successor or survivor corporation,
or a parent or subsidiary thereof, or shall be substituted for by similar options covering the stock of the successor or survivor corporation, or a parent or subsidiary thereof, with appropriate adjustments as to the number and kind of shares and
prices; 
 (iv)    to make adjustments in the number and type of shares of Stock (or other
securities or property) subject to outstanding Options, and/or in the terms and conditions of (including the grant or exercise price), and the criteria included in, outstanding Options, or Options that may be granted
  
 

5

  in the future; and 
 (v)     to provide that immediately upon the consummation of such event, such Option shall not be exercisable and shall terminate. 
 (c)      Subject to Section 5.1, the Committee may, in its sole discretion, include such further provisions and limitations in any Option Agreement
or certificate, as it may deem equitable and in the best interests of the Company. 
 (d)      If the Company undergoes an Acquisition, then any surviving corporation or entity or acquiring corporation or entity, or affiliate of such corporation or entity, may assume any Options outstanding under the Plan or may substitute similar
stock awards (including an award to acquire the same consideration paid to the shareholders in the transaction described in this Section 5.2(d)) for those outstanding under the Plan. If any surviving corporation or entity or acquiring corporation or
entity in an Acquisition, or affiliate of such corporation or entity, does not assume such Options or does not substitute similar stock awards for those outstanding under the Plan, then 
 (i)      with respect to Options held by the Optionee, assuming his status as an Employee has not terminated before such event, the vesting of such
Options (and, if applicable, the time during which such awards may be exercised) shall be accelerated and made fully exercisable and all restrictions thereon shall lapse at least ten (10) days before the closing of the Acquisition (and the Options
terminated if not exercised before the closing of such Acquisition), and 
 (ii)     any other
Options outstanding under the Plan shall be terminated if not exercised prior to the closing of the Acquisition. 
 (e)      The adjustments described in this Section 5.2, and the manner of their application, shall be determined solely by the Committee, and any such adjustment may provide for the elimination
of fractional share interests. The adjustments required under this Article 5 shall apply to any successors of the Company and shall be made regardless of the number or type of successive events requiring such adjustments.
 (f)      The existence of the Plan or any Option shall not affect or restrict in any way the right or power of
the Company or the shareholders of the Company to make or authorize any adjustment, recapitalization, reorganization, or other change in the Company’s capital structure or its business, any merger or consolidation of the Company, any issue of
stock or of options, warrants or rights to purchase stock or of bonds, debentures, preferred or prior preference stocks whose rights are superior to or affect the Stock or that are convertible into or exchangeable for Stock, or the dissolution or
liquidation of the Company, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether of a similar character or otherwise. 
 
ARTICLE 6
OPTIONS
 6.1     
Types of Options Granted. The Options granted under this Plan do not qualify as incentive stock options under the Code.
  
 

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  6.2     
Option Grant and Agreement. The Options granted under this Plan shall be evidenced by minutes of a meeting or the written consent of the Committee and by the Stock Option Agreement, which shall be
executed by the Company and the Optionee. The terms of the Option, including the Option’s duration, time or times of exercise, and exercise price shall be stated in the Stock Option Agreement. 
 6.3     
Exercise Price. The Exercise Price of the Stock subject to each Option shall be as stated in the Stock Option Agreement. 
 6.4     
Exercise Period. The period for the exercise of each Option granted under this Plan shall be as stated in the Stock Option Agreement. 
 6.5     
Option Exercise.
 (a)      An Option
may be exercised at any time or from time to time during the term of the Option as to any or all full shares that have become Purchasable under the provisions of the Option, but not at any time as to fewer than 100 shares unless the remaining shares
that have become so Purchasable are fewer than 100 shares. 
 (b)      An Option shall be
exercised by (i) delivery to the Company at its principal office (or, if the Committee so directs, to an administrator designated by the Committee at such administrator’s office) a written notice of exercise with respect to a specified number
of shares of Stock and (ii) payment to the Company at that office of the full amount of the Exercise Price for such number of shares in accordance with Section 6.5(c). 
 (c)      Payment for Shares purchased pursuant to this Plan may be made in cash (by check) or, where permitted by Applicable Laws: 
 (i)      by cancellation of indebtedness of the Company to the Optionee; 
 (ii)     by surrender of shares that either: (1) have been owned by the Optionee for more than six (6) months and
have been paid for within the meaning of SEC Rule 144 (and, if such shares were purchased from the Company by use of a promissory note, such note has been fully paid with respect to such shares); or (2) were obtained by the Optionee in the public
market; 
 (iii)    by tender of a full recourse promissory note having such terms as may be
approved by the Committee and bearing interest at a rate sufficient to avoid (1) imputation of income under Sections 483 and 1274 of the Code and (2) variable accounting treatment under Financial Accounting Standards Board Interpretation No. 44 to
APB No. 25; provided, however, that if the Optionee is not an Employee or Director of the Company or any subsidiary, he shall not be entitled to purchase Shares with a promissory note unless the note is adequately secured by collateral other than
the shares of Stock being purchased; 
 (iv)    by waiver of compensation due or accrued to the
Optionee for services rendered; 
 (v)     with respect only to purchases upon exercise of an
Option, and provided that a public market for the Company’s stock exists and the transaction is done in a manner sufficient to avoid variable accounting treatment under Financial Accounting Standards Board
  
 

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  Interpretation No. 44 to APB No. 25: (1) through a “same day sale” commitment from the Optionee and a broker-dealer that is a member of the
National Association of Securities Dealers (an “NASD Dealer”) whereby the Optionee irrevocably elects to exercise the Option and to sell a portion of the Shares so purchased to pay for the Exercise Price, and whereby the NASD Dealer
irrevocably commits upon receipt of such Shares to forward the Exercise Price directly to the Company; or (2) through a “margin” commitment from the Optionee and a NASD Dealer whereby the Optionee irrevocably elects to exercise the Option
and to pledge the Shares so purchased to the NASD Dealer in a margin account as security for a loan from the NASD Dealer in the amount of the Exercise Price, and whereby the NASD Dealer irrevocably commits upon receipt of such Shares to forward the
Exercise Price directly to the Company; or 
 (vi)    by any combination of the foregoing.

 (d)      In addition to and at the time of payment of the Exercise Price, the Optionee
shall pay to the Company in cash the full amount of any federal, state, and local income, employment, or other withholding taxes applicable to the taxable income of such Optionee resulting from such exercise. The Committee may allow the Optionee to
satisfy a portion of the foregoing withholding tax obligations by electing to have the Company withhold from the shares of Stock to be issued upon exercise of an Option that number of shares having a Fair Market Value equal to the minimum amount
required to be withheld based on the statutory withholding rates for federal and state tax purposes that apply to supplemental taxable income. The Fair Market Value of the shares to be withheld shall be determined on the date that the amount of tax
to be withheld is to be determined. All elections by the Optionee to have shares withheld for this purpose shall be made in such form and under such conditions as the Committee may deem necessary or advisable.
 (e)      The Optionee shall not have any of the rights of a shareholder with respect to the shares of Stock
subject to the Option until such shares have been issued and transferred to the Optionee upon the exercise of the Option.
 6.6     
Non-Transferability of Option. Except as otherwise provided by the Committee, no Option shall be transferable by the Optionee other than by will or the laws of descent and distribution or pursuant
to a Qualified Domestic Relations Order. During the lifetime of the Optionee, Options shall be exercisable only by the Optionee (or by the Optionee’s guardian or legal representative, should one be appointed).
 6.7     
Termination of Employment or Service. If the Optionee is terminated from his employment or other service to the Company or its subsidiaries for Cause, his Options, whether vested or unvested, shall
terminate immediately and shall not thereafter be exercisable. The effect on the Options of the termination of the Employee’s employment in other circumstances shall be as stated in the Stock Option Agreement and the Employment Agreement. If
there is any conflict between the provisions of the Stock Option Agreement and the Employment Agreement regarding the effect of termination of employment, the provisions of the Employment Agreement shall govern.
 6.8     
Employment Rights. Nothing in the Plan or in any Stock Option Agreement shall confer on the Optionee any right to continue in the employ of the Company or any of its subsidiaries, or shall interfere
in any way with the right of the Company or any of its subsidiaries to terminate his employment at any time.
  
 

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  6.9     
Effect of Change in Control. The effect of a change of control on the Options granted hereunder shall be as stated in the Employment Agreement.
 
ARTICLE 7
TERMINATION AND AMENDMENT
 7.1     
Termination and Amendment. The Board may at any time terminate the Plan, and may at any time and from time to time and in any respect amend the Plan; provided, however, that the Board may not amend
the Plan to:
 (a)      increase the total number of shares of Stock issuable to the
Optionee;
 (b)      permit Options to be granted to anyone other than the Optionee;
or
 (c)      otherwise materially increase the benefits accruing to the Optionee as a
holder of Options under the Plan.
 7.2     
Effect on Optionee’s Rights. No termination, amendment, or modification of the Plan shall affect adversely the Optionee’s rights under the Stock Option Agreement without the consent of the
Optionee or his legal representative.
 
ARTICLE 8
MISCELLANEOUS 
 8.1     
Stock Certificates. The Company shall not be required to issue or deliver any certificate for shares of Stock purchased upon the exercise of any Option granted under this Plan before fulfillment of
all of the following conditions:
 (a)      the admission of such shares to listing on all
stock exchanges on which the Stock is then listed;
 (b)      the completion of any
registration or other qualification of such shares that the Committee shall deem necessary or advisable under any Applicable Laws;
 (c)      the obtaining of any approval or other clearance from any federal or state governmental agency or body that the Committee shall determine to be necessary or advisable; and
 (d)      the lapse of such reasonable period of time following the exercise of the Option as the Board
from time to time may establish for reasons of administrative convenience.
 Stock certificates issued and delivered to the Optionee shall bear such restrictive legends as the
Company shall deem necessary or advisable pursuant to Applicable Laws. 
 8.2     
Relationship to Other Compensation Plans. The adoption of the Plan shall not affect any other stock option, incentive, or other compensation plans in effect for the Company or any of its
subsidiaries; nor shall the adoption of the Plan preclude the Company or any of its subsidiaries from establishing any other form of incentive or other compensation plan for Employees or Directors of the Company or any of its
subsidiaries.
  
 

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  8.3     
Replacement or Amended Grants. At the sole discretion of the Committee, and subject to the terms of the Plan, the Committee may modify outstanding Options or accept the surrender of outstanding
Options and grant new Options in substitution for them. No modification of an Option, however, shall adversely affect the Optionee’s rights under a Stock Option Agreement without the consent of the Optionee or his legal
representative.
 8.4     
Forfeiture for Solicitation of Customers. During Optionee’s employment with or service to the Company and for a period of twenty-four (24) months following the date of termination of employment
or service, Optionee shall not (except on behalf of or with the prior written consent of the Company), on Optionee’s own behalf or in the service or on behalf of others, (i) solicit, divert, or appropriate to or for a competing business, or
(ii) attempt to solicit, divert, or appropriate to or for a competing business, any person or entity that was a customer of the Company on the date of termination and with whom Optionee had direct material contact within twelve months of
Optionee’s last date of employment or service. If Optionee engages in solicitation of customers as defined above, then Optionee’s rights under any Options outstanding under this Plan shall be forfeited and terminated, subject in each case
to a determination to the contrary by the Committee.
 8.5     
Forfeiture for Solicitation of Employees. During Optionee’s employment with or service to the Company and for a period of twenty-four (24) months following the date of termination of employment
or service, Optionee shall not, on Optionee’s own behalf or in the service or on behalf of others, (i) solicit, divert, or hire away, or (ii) attempt to solicit, divert, or hire away any employee of the Company, regardless of whether the
employee is full-time or temporary, the employment is pursuant to written agreement, or the employment is for a determined period or is at will. If Optionee engages in solicitation of employees as defined above, then Optionee’s rights under any
Options outstanding under this Plan shall be forfeited and terminated, subject in each case to a determination to the contrary by the Committee.
 8.6     
Plan Binding on Successors. The Plan shall be binding upon the successors and assigns of the Company.
 8.7     
Singular, Plural; Gender. Whenever used in this Plan, nouns in the singular shall include the plural, and the masculine pronoun shall include the feminine gender.
 8.8     
Headings, etc., No Part of Plan. Headings of Articles and Sections of this Plan are inserted for convenience and reference; they do not constitute part of the Plan.
 8.9     
Interpretation. With respect to Section 16 Insiders, transactions under this Plan are intended to comply with all applicable conditions of Rule 16b-3 or its successors under the Exchange Act. To the
extent any provision of the Plan or action by the administrators of the Plan fails to so comply, it shall be deemed void to the extent permitted by Applicable Laws and deemed advisable by the Committee.
 *          *          *          *        
  *
  
 

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Exhibit A to
InterCept, Inc.
G. Lynn Boggs 2002 Stock Option Plan
 INTERCEPT,
INC.
STOCK OPTION AGREEMENT
 THIS STOCK OPTION AGREEMENT (this “Agreement”) is entered into as of this _________
day of April, 2002, by and between InterCept, Inc., a Georgia corporation (the “Company”), and G. Lynn Boggs (the “Optionee”).
 (1)      Effective as of the date of this Agreement, the Board of Directors of the Company adopted a stock option plan known as
“The G. Lynn Boggs 2002 Stock Option Plan” (the “Plan”).
 (2)      The Committee has granted the Optionee a stock option to purchase the number of shares of the Company’s common stock as provided below, and in consideration of the granting of that stock option the Optionee intends to remain in the
employ of the Company or continue to provide services to the Company.
 (3)      The
Company’s agreement to grant the stock option provided for herein was an inducement essential to the Optionee’s entering into his employment contract with the Company.
 (4)      The Company and the Optionee desire to enter into a written agreement with respect to such option in accordance with the Plan.
 As an employment incentive and to encourage stock ownership, and also in consideration of the mutual covenants contained in this Agreement, the parties to this Agreement
agree as follows:
 1.        Incorporation of Plan.
This option is granted pursuant to the provisions of the Plan and the terms and definitions of the Plan are incorporated into this Agreement by reference. A copy of the Plan has been delivered to the Optionee, who acknowledges receipt of the
Plan.
 2.        Grant of Option. Subject to the
terms, restrictions, limitations and conditions stated in this Agreement, the Company hereby evidences its grant to the Optionee, not in lieu of salary or other compensation, of the right and option (the “Option”) to purchase all or any
part of the number of shares of the Company’s Common Stock, no par value (the “Stock”), provided on Schedule A attached to this Agreement and incorporated into this Agreement by reference. The Option shall be exercisable in the
amounts and at the time specified on Schedule A. The Option shall expire and shall not be exercisable on the date specified on Schedule A or on such earlier date as determined pursuant to Sections 8, 9, or 10 below. 
 3.        Purchase Price. The price per share to be paid by the Optionee
for the shares subject to this Option (the “Exercise Price”) shall be as specified on Schedule A.
 4.        Exercise Terms. The Optionee must exercise the Option for at least the lesser of 100 shares or the number of shares of Purchasable Stock as to
which the Option remains unexercised. If this Option is not exercised with respect to all or any part of the shares subject to this Option before it
  
 

i

  expires, the shares with respect to which this Option was not exercised shall no longer be subject to this Option.
 5.        Option Non-Transferable. No Option shall be transferable by the Optionee other
than by will or the laws of descent and distribution or pursuant to a Qualified Domestic Relations Order. During the lifetime of the Optionee, Options shall be exercisable only by such Optionee (or by such Optionee’s guardian or legal
representative, should one be appointed).
 6.        Notice of Exercise of
Option. This Option may be exercised by the Optionee, or by the Optionee’s administrators, executors or personal representatives, by a written notice (in substantially the form of the Notice of Exercise attached to this
Plan as Schedule B) signed by the Optionee, or by such administrators, executors or personal representatives, and delivered or mailed to the Company as specified below to the attention of the Chief Financial Officer or such other officer as the
Company may designate. Any such notice shall (a) specify the number of shares of Stock that the Optionee or the Optionee’s administrators, executors or personal representatives, as the case may be, then elects to purchase under this Plan, (b)
contain such information as may be reasonably required pursuant to Section 12 below, and (c) as authorized by the Committee, be accompanied by a form of payment permitted under the Plan of the Exercise Price for the shares of stock being purchased.
Upon receipt of any such notice and accompanying payment, and subject to the terms of this Agreement, the Company agrees to issue to the Optionee or the Optionee’s administrators, executors or personal representatives, as the case may be, stock
certificates for the number of shares specified in such notice registered in the name of the person exercising this Option.
 7.        Adjustment in Option. The number of shares subject to this Option, the Exercise Price and other matters are subject to adjustment during the term
of this Option in accordance with Section 5.2 of the Plan.
 8.        Termination of Employment.
 (a)      Except as otherwise
specified in Schedule A to this Agreement, in the event of the termination of the Optionee’s employment with the Company or any of its subsidiaries, other than a termination that is either (i) for Cause, (ii) voluntary on the part of the Optionee and without written consent of the Company, or (iii) for reasons of death or disability or retirement, the Optionee may
exercise this Option at any time within 90 days after such termination to the extent of the number of shares that were Purchasable under this Agreement at the date of such termination.
 (b)      Except as specified in Schedule A attached to this Agreement, in the event of a termination of the Optionee’s employment that is either
(i) for Cause or (ii) voluntary on the part of the Optionee and without the written consent of the Company, this Option, to the extent not previously exercised, shall terminate immediately and shall not thereafter be or become
exercisable.
 (c)      Unless and to the extent otherwise provided in Exhibit A to this
Agreement, in the event of the retirement of the Optionee at the normal retirement date as prescribed from time to time by the Company or any subsidiary, the Optionee shall continue to have the right to exercise any Options for shares that were
Purchasable at the date of the Optionee’s retirement. This Option does not confer upon the Optionee any right with respect to continuance of employment by the Company or by any of its subsidiaries. This Option shall not be affected by any
change of employment so long as the Optionee continues to be an Employee of the Company or one of its subsidiaries.
  
 

ii

  9.        Disabled Optionee.
In the event of termination of employment because of the Optionee’s becoming a Disabled Optionee, the Optionee (or his personal representative) may exercise this Option, within a period ending on the earlier of (a) the last day of the one year
period following the Optionee’s death or (b) the expiration date of this Option, to the extent of the number of shares that were Purchasable under this Agreement at the date of such termination.
 10.     Death of Optionee. Except as otherwise provided in Schedule A with respect to the rights of the
Optionee upon termination of employment under Section 8(a) above, in the event of the Optionee’s death while employed by the Company or any of its subsidiaries or within three months after a termination of such employment (if such termination
was neither (i) for cause nor (ii) voluntary on the part of the Optionee and without the written consent of the Company), the appropriate persons described in Section 6 above or persons to whom all or a portion of this Option is transferred in
accordance with Section 5 above may exercise this Option at any time within a period ending on the earlier of (a) the last day of the one year period following the Optionee’s death or (b) the expiration date of this Option. If the Optionee was
an Employee of the Company at the time of death, this Option may be so exercised to the extent of the number of shares that were Purchasable under this Agreement at the date of death. If the Optionee’s employment terminated prior to his death,
this Option may be exercised only to the extent of the number of shares covered by this Option that were Purchasable under this Agreement at the date of such termination.
 11.     Date of Grant. This Option was granted by the Board of Directors of the Company on the date provided in Schedule
A.
 12.     Compliance with Regulatory Matters. The Optionee
acknowledges that the issuance of capital stock of the Company is subject to limitations imposed by federal and state law and the Optionee hereby agrees that the Company shall not be obligated to issue any shares of Stock upon exercise of this
Option that would cause the Company to violate law or any rule, regulation, order or consent decree of any regulatory authority (including without limitation the SEC) having jurisdiction over the affairs of the Company. The Optionee agrees that he
or she will provide the Company with such information as is reasonably requested by the Company or its counsel to determine whether the issuance of Stock complies with the provisions described by this Section 12.
 13.     Miscellaneous.
 (a)      This Agreement shall be binding upon the parties to it and their representatives, successors and assigns.
 (b)      This Agreement is executed and delivered in, and shall be governed by the laws of, the State of
Georgia.
 (c)      Any requests or notices to be given under this Agreement shall be
deemed given, and any elections or exercises to be made or accomplished shall be deemed made or accomplished, upon actual delivery thereof to the designated recipient, or three days after deposit thereof in the United States mail, registered, return
receipt requested and postage prepaid, addressed, if to the Optionee, at the address provided below and, if to the Company, to the executive offices of the Company at 3150 Holcomb Bridge Road, Suite 200, Norcross, Georgia 30071 (or to any
successor
  
 

iii

  address for the Company’s executive offices reflected in the Company’s filings with the SEC); provided that the Optionee may change his address by
written notice as provided in this Section 13(c).
 (d)      Except as permitted under the
Plan, this Agreement may not be modified except in writing executed by each of the parties to it.
 (e)      If there is any conflict between the provisions of this Agreement and the Employment Agreement regarding the effect of termination of employment, the provisions of the Employment
Agreement shall govern.
 IN WITNESS WHEREOF, the Board of Directors of the Company has caused this Stock Option Agreement to be executed on behalf of the
Company, and the Optionee has executed this Stock Option Agreement under seal, all as of the day and year first above written.
  

	 INTERCEPT, INC.
 	  
 	 OPTIONEE
 
	 By: 
 	 
 
 
 	  
 	  
 	  
 
	  
 	 
 	  
 	 
 	 
 
	  
 	 Name: 
 	  
 	  
 	  
 	 G. Lynn Boggs
 
	  
 	  
 	 
 	  
 	  
 	  
 
	  
 	 Title: 
 	  
 	  
 	 Address:
 	  
 
	  
 	  
 	 
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	  
 	 
 

  
 

iv

  
SCHEDULE A
TO
STOCK OPTION AGREEMENT
BETWEEN
INTERCEPT, INC.
AND
G. LYNN
BOGGS
 Dated: April __, 2002
 1.         Number of Shares Subject to Option: 150,000 shares.
 2.         This Option is not an Incentive Stock Option.
 3.         Option Exercise Price:
$         per share.
 4.         Date of Grant: April __, 2002
 5.         Option Vesting Schedule:
 Options are exercisable with respect to the number of shares indicated below on or after the date indicated next to the number of shares (but only if the Optionee is an Employee on the Vesting Date):
  

	 No. of Shares
 	  
 	 Vesting Date
 	  
 
	 50,000
 	  
 	 Date of Grant
 	  
 
	 50,000
 	  
 	 First anniversary of Date of Grant
 	  
 
	 50,000
 	  
 	 Second anniversary of Date of Grant
 	  
 

 
 6.         Option Exercise Period:
 Check One:
 (  )       All options expire and are void unless exercised on or before         , 20___.
 (  )       Options expire and are void unless exercised on or before the date indicated next
to the number of shares:

	 No. of Shares
 	  
 	 Expiration Date
 	  
 
	 50,000
 	  
 	 10th anniversary of Date of Grant
 	  
 
	 50,000
 	  
 	 11th anniversary of Date of Grant
 	  
 
	 50,000
 	  
 	 12th anniversary of Date of Grant
 	  
 

 
 7.         Effect of Termination of Employment of Optionee (if different from that
provided in Sections 8, 9 and 10 of the Stock Option Agreement): 
  
 

v

  
SCHEDULE B
 NOTICE OF EXERCISE
 The
undersigned hereby notifies InterCept, Inc. (the “Company”) of this election to exercise the undersigned’s stock option to purchase            shares of the Company’s common
stock, no par value (the “Common Stock”), pursuant to the Stock Option Agreement (the “Agreement”) between the undersigned and the Company dated April __, 2002. Accompanying this Notice is payment sufficient to pay the Exercise
Price for the shares of common stock being purchased in a form permitted by the Company’s G. Lynn Boggs 2002 Stock Option Plan.
 IN WITNESS WHEREOF, the
undersigned has set his hand and seal, this _____ day of ______________, _______.
   
   

	  
 	  
 	  
 	 OPTIONEE [OR OPTIONEE’S
 ADMINISTRATOR,
  EXECUTOR OR PERSONAL
 REPRESENTATIVE]
 
	 
 
 
 	  
 	  
 	 
 
 
 
	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	 Name:
 Position (if other than Optionee):
 

  
 
 viEmployee Agreement - John Perry effective December 17, 2002

  EXHIBIT 10.37
 EMPLOYMENT
AGREEMENT
 This Employment Agreement (this “Agreement”) is made by and between InterCept, Inc., a Georgia corporation (the
“Company”), and John M. Perry, an individual resident of Georgia (the “Executive”), on the 20th day of December, 2002 (the “Effective Date”).
 The Company seeks to employ the Executive as its Chief Executive Officer of Merchant Services. The Board of Directors of the Company (the “Board”) expects that the Executive’s contribution to the growth
and success of the Company will be substantial. The Board desires to encourage the dedication of the Executive to the Company, which will promote the best interests of the Company and its shareholders. The Executive is willing to serve the Company
on the terms and conditions herein provided.
 Certain capitalized terms used in this Agreement are defined in Section 17.
 In consideration of the foregoing, the mutual covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto, intending to be legally bound, hereby agree (as of the Effective Date) that:
 1.      Employment. The Company shall employ the Executive, and the Executive shall serve the Company, as its Chief Executive Officer of Merchant Services upon the
terms and conditions set forth herein. The Executive shall have such authority and responsibilities as are consistent with his position and which may be set forth in the Bylaws or assigned by the Chairman and Chief Executive Officer
(“CEO”) and the President of the Company from time to time. The Executive shall devote his full business time, attention, skill and efforts to the performance of his duties hereunder, except during periods of illness or periods of vacation
and leaves of absence consistent with Company policy. The Executive may devote reasonable periods of time to serve as a director or advisor to other organizations, to perform charitable and other community activities, and to manage his personal
investments; provided, however, that such activities are approved by CEO or the President, do not materially interfere with the performance of his duties hereunder and are not in conflict or competitive with, or adverse to, the interests of the
Company.
 2.      Term. The term of the Executive’s
employment under this Agreement shall commence on the Effective Date and continue for a period of two (2) years (the “Term”), unless earlier terminated as provided in this Agreement. At the end of the initial Term, this Agreement shall
automatically renew for consecutive Terms of two (2) years each unless either party hereto gives written notice to the other of such party’s intent to terminate not less than ninety (90) days before the end of the initial Term or any renewal
Term.
 3.      Compensation and Benefits.
 a.      The Company shall pay the Executive a salary at a rate of not less than $400,000 per annum
(the “Base Salary”) in accordance with the salary payment practices of the Company. The Board (or the Compensation Committee) shall review the Executive’s Base Salary 
 

1

  at least annually (on or before March 1, 2004, for the first review) and may increase the Base Salary if it determines in its sole discretion that an
increase is appropriate.
 b.      In addition to the Base Salary, Executive shall be
eligible to receive annual incentive compensation (“Bonus Compensation”) with a target of 50% of Base Salary, such Bonus Compensation to be based upon achievement of targeted levels of performance and such other criteria as the CEO, the
Board or the Compensation Committee may establish from time to time. During the initial Term, the Executive shall receive minimum Bonus Compensation of $100,000, which shall be paid to Executive in equal quarterly installments commencing April 1,
2003. In addition to the Bonus Compensation, the Executive shall be eligible to participate in any management incentive programs established by the Company.
 c.      The Executive shall be eligible for the grant of stock options, restricted stock, and other awards under the Plan. On the Effective Date, as an inducement to the
Executive’s entering into this Agreement, the Company shall grant the Executive options to purchase 150,000 shares of the Company’s common stock, which options shall vest ratably over a two-year period, with the first one-third vesting
immediately on the date of grant. 
 d.      The Executive may participate in all
retirement, welfare, deferred compensation, life and health insurance (including health insurance for the Executive’s spouse and his dependents), and other benefit plans or programs of the Company now or hereafter applicable to the Executive or
applicable generally to executives of the Company or to a class of executives that includes senior executives of the Company; provided, however, that during any period during the Term that the Executive is subject to a Disability, and during the
180-day period of physical or mental infirmity leading up to the Executive’s Disability, the amount of the Executive’s compensation provided under this Section 3 shall be reduced by the sum of the amounts, if any, paid to the
Executive for the same period under any disability benefit or pension plan of the Company or any of its subsidiaries.
 e.      Executive shall be entitled to at least four (4) weeks of paid vacation each year and all holidays observed by the Company.
 e.      The Company shall reimburse the Executive for travel, seminar, and other expenses related to the Executive’s duties that are incurred
and accounted for in accordance with the practices of the Company.
 4.      Termination.
 a.      The Executive’s employment under this Agreement may
be terminated prior to the end of the Term only as follows:
 (i)         upon the death of the Executive;
 (ii)        by the
Company due to the Disability of the Executive upon delivery of a Notice of Termination to the Executive;
 

2

  (iii)       by the Company for Cause upon
delivery of a Notice of Termination to the Executive;
 (iv)       by the Company without Cause upon no less than thirty (30) days written notice to the Executive, provided the Company satisfies the provisions of Section 4(d); 
 (v)        by the Executive with Adequate Justification upon delivery of a Notice of Termination to the Company sixty (60) days before the
intended Termination Date; and 
 (vi)       by the Executive for
any reason other than with Adequate Justification upon delivery of a Notice of Termination to the Company sixty (60) days before the intended Termination Date;
 (vii)      by the Executive for any reason upon delivery of a Notice of Termination to the Company within a 90-day period beginning on the 30th day
after any occurrence of a Change in Control
 b.      If the Executive’s employment
with the Company shall be terminated during the Term (i) by reason of the Executive’s death, or (ii) by the Company for Disability, the Company shall pay to the Executive (or in the case of his death, the Executive’s estate), within 15
days after the Termination Date, a lump sum cash payment equal to the Accrued Compensation and the Pro Rata Bonus. 
 c.      If the Executive’s employment with the Company shall be terminated during the Term by the Company for Cause, the Company shall pay to the Executive, within 15 days after the
Termination Date, a lump sum cash payment equal to the Accrued Compensation.
 d.      If
the Executive’s employment with the Company shall be terminated either (i) by the Company without Cause; or (ii) by the Executive with Adequate Justification; or (iii) by the Executive pursuant to Section 4(a)(vii) above, in addition to other
rights and remedies available in law or equity, the Executive shall be entitled to the following:
 (i)         the Company shall pay the Executive in cash, within 15 days of the Termination Date, an amount equal to all Accrued Compensation and the Pro Rata Bonus;
 (ii)        the Company shall pay to the Executive in cash, at the end
of each month in the period that is the greater of (x) the twelve (12) consecutive months following the Termination Date, or (y) the remainder of the Term, an amount equal to one-twelfth of the sum of the Base Amount and the Bonus Amount;
and
 

3

  (iii)       the restrictions on any
outstanding incentive awards (including stock options) granted to the Executive under the Plan or under any other incentive plan or arrangement shall lapse, and such incentive award shall become 100% vested and may be exercised for a period of
thirty (30) days following the date of termination, when such incentive awards shall terminate
 e.      If the Executive’s employment with the Company shall be terminated during the Term by the Executive for any reason other than with Adequate Justification (with the exception of
termination pursuant to Section 4(a)(vii)), the Company shall pay to the Executive, within 15 days after the Termination Date, a lump sum cash payment equal to the Accrued Compensation.
 f.       The severance pay provided for in this Section 4 shall be in lieu of any other severance or termination pay to which the Executive
may be entitled under any Company severance or termination plan, program, practice, or arrangement. The Executive’s entitlement to any other compensation or benefits shall be determined in accordance with the Company’s Executive benefit
plans and other applicable programs, policies and practices then in effect.
 5.      Protection of Trade Secrets and Confidential Information. 
 a.      Through exercise of his rights and performance of his obligations under this Agreement, Executive will be exposed to Trade Secrets and Confidential Business Information. Executive agrees
to cooperate with any and all confidentiality requirements of the Company, and Executive shall immediately notify the Company of any unauthorized disclosure or use of any Trade Secrets of which Executive becomes aware.
 b.      Except as required to perform his obligations under this Agreement or except with Company’s prior
written permission, Executive shall not use, redistribute, market, publish, disclose or divulge to any other person or entity any Trade Secrets of the Company. The Executive’s obligations under this provision shall remain in force during the
term of his employment and for a period of two (2) years after the Executive’s last date of employment with the Company, provided that this covenant is in addition to and not in lieu of any remedies available to the Company under Georgia law.

 c.      The Executive agrees to maintain in strict confidence and, except as necessary
to perform his duties for the Company, not to use or disclose any Confidential Business Information at any time, either during the term of his employment or for a period of two (2) years after the Executive’s last date of employment.

 d.      Upon termination of employment, the Executive shall leave with the Company all
business records relating to the Company and its affiliates including, without limitation, all contracts, calendars, and other materials or business records concerning its business or customers, including all physical, electronic, and computer
copies thereof, whether or not the Executive prepared such materials or records himself. Upon such termination, the Executive shall retain no copies of any such materials.
 

4

  e.      Nothing in this Section 5 shall prevent the Executive from
disclosing Trade Secrets or Confidential Business Information pursuant to a court order or court-issued subpoena, so long as the Executive first notifies the Company of said order or subpoena in sufficient time to allow the Company to seek an
appropriate protective order. The Executive agrees that if he receives any formal or informal discovery request, court order, or subpoena requesting that he disclose Trade Secrets or Confidential Business Information, he will immediately notify the
Company and provide the Company with a copy of said request, court order, or subpoena. 
 6.      Non-Solicitation and Related Matters.
 a.      If the Executive is terminated for Cause or if the Executive resigns without Adequate Justification, then for a period of two (2) years following the date of termination, the Executive
shall not (except on behalf of or with the prior written consent of the Company) either directly or indirectly, on the Executive’s own behalf or in the service or on behalf of others, (i) solicit, divert, or appropriate to or for a
Competing Business, or (ii) attempt to solicit, divert, or appropriate to or for a Competing Business, any person or entity that was a customer or prospective customer of the Company on the date of termination and with whom the Executive had direct
material contact within six months of the Executive’s last date of employment.
 b.      If the Executive is terminated for Cause or if the Executive resigns without Adequate Justification, then for a period of two (2) years following the date of termination, the Executive will not, either directly or indirectly, on the
Executive’s own behalf or in the service or on behalf of others, (i) solicit, divert, or hire away, or (ii) attempt to solicit, divert, or hire away any employee of or consultant to the Company or any of its affiliates engaged or experienced in
the Business, regardless of whether the employee or consultant is full-time or temporary, the employment or engagement is pursuant to written agreement, or the employment is for a determined period or is at will.
 c.      The Executive acknowledges and agrees that great loss and irreparable damage would be suffered by the
Company if the Executive should breach or violate any of the terms or provisions of the covenants and agreements set forth in this Section 6. The Executive further acknowledges and agrees that each of these covenants and agreements is reasonably
necessary to protect and preserve the interests of the Company. The parties agree that money damages for any breach of clauses (a) and (b) of this Section 6 will be insufficient to compensate for any breaches thereof, and that the Executive or any
of the Executive’s affiliates, as the case may be, will, to the extent permitted by law, waive in any proceeding initiated to enforce such provisions any claim or defense that an adequate remedy at law exists. The existence of any claim,
demand, action, or cause of action against the Company, whether predicated upon this Agreement or otherwise, shall not constitute a defense to the enforcement by the Company of any of the covenants or agreements in this Agreement; provided, however,
that nothing in this Agreement shall be deemed to deny the Executive the right to defend against this enforcement on the basis that the Company has no right to its enforcement under the terms of this Agreement.
 d.      The Executive acknowledges and agrees that: (i) the covenants and agreements contained in clauses (a)
through (e) of this Section 6 are the essence of this Agreement;
 

5

  (ii) the Executive has received good, adequate and valuable consideration for each of these covenants; and (iii) each of these covenants is reasonable and
necessary to protect and preserve the interests and properties of the Company. The Executive also acknowledges and agrees that: (i) irreparable loss and damage will be suffered by the Company should the Executive breach any of these covenants and
agreements; (ii) each of these covenants and agreements in clauses (a) and (b) of this Section 6 is separate, distinct and severable not only from the other covenants and agreements but also from the remaining provisions of this Agreement; and (iii)
the unenforceability of any covenants or agreements shall not affect the validity or enforceability of any of the other covenants or agreements or any other provision or provisions of this Agreement. The Executive acknowledges and agrees that if any
of the provisions of clauses (a) and (b) of this Section 6 shall ever be deemed to exceed the time, activity, or geographic limitations permitted by applicable law, then such provisions shall be and hereby are reformed to the maximum time, activity,
or geographical limitations permitted by applicable law.
 e.      The Executive and the
Company hereby acknowledge that it may be appropriate from time to time to modify the terms of this Section 6 and the definition of the term “Business” to reflect changes in the Company’s business and affairs so that the scope of the
limitations placed on the Executive’s activities by this Section 6 accomplishes the parties’ intent in relation to the then current facts and circumstances. Any such amendment shall be effective only when completed in writing and signed by
the Executive and the Company.
 f.       In the event that Executive’s
employment is terminated by the Company other than for Cause or by the Executive with Adequate Justification or pursuant to Section 4(a)(vii), the Company, at its sole option and its sole discretion and at any time within thirty (30) days of the
Termination Date, may cause Executive to be obligated to comply with the covenants not to solicit set forth in Sections 6(a) and 6(b) above for a period of one (1) or two (2) years following the Termination Date, as set forth below:
 (i)         By giving notice to Executive at any time within thirty
(30) days of the Termination Date of its intent to exercise the “One Year Option” herein described, the Company may cause Executive to be obligated to comply with Sections 6(a) and 6(b) for a period of one (1) year following the
Termination Date; provided, however, that the Company shall pay Executive an aggregate amount in cash equal to Executive’s then Base Salary in effect immediately prior to the Termination Date multiplied by one (1) (the “One Year
Payment”). The One Year Payment shall be paid by the Company to Executive in twelve (12) equal monthly payments, the first of which shall be made on the first day of the calendar month following the calendar month in which the Termination Date
occurs;
 (ii)        By giving notice to Executive any time within thirty (30)
days of the Termination Date of its intent to exercise the “Two Year Option” herein described, the Company may cause Executive to be obligated to comply with Sections 6(a) and 6(b) for a period of two (2) years following the Termination
Date; provided, however, that the Company shall pay Executive an aggregate amount in cash equal to Executive’s Base Salary in effect
 

6

  immediately prior to the Termination Date multiplied by two (2) (the “Two Year Payment”). The Two Year Payment shall be paid by the Company to
Executive in twenty-four (24) equal monthly payments, the first of which shall be made on the first day of the calendar month following the calendar month in which the Termination Date occurs.
 7.      Arbitration.
 a.      The Company and the Executive acknowledge and agree that (except as specifically set forth in Section 7(d)), any claim or controversy arising
out of or relating to this Agreement shall be settled by binding arbitration in Atlanta, Georgia, in accordance with the National Rules of the American Arbitration Association for the Resolution of Employment Disputes in effect on the date of the
event giving rise to the claim or controversy. The Company and Executive further acknowledge and agree that either party must request arbitration of any claim or controversy within one (1) year of the date of the event giving rise to the claim or
controversy by giving written notice of the party’s request for arbitration. Failure to give notice of any claim or controversy within one (1) year of the event giving rise to the claim or controversy shall constitute waiver of the claim or
controversy.
 b.      All claims or controversies subject to arbitration pursuant to
Section 7(a) above shall be submitted to arbitration within six (6) months from the date that a written notice of request for arbitration is effective. All claims or controversies shall be resolved by a panel of three arbitrators who are licensed to
practice law in the State of Georgia and who are experienced in the arbitration of labor and employment disputes. These arbitrators shall be selected in accordance with the National Rules of the American Arbitration Association for the Resolution of
Employment Disputes in effect at the time the claim or controversy arises. Either party may request that the arbitration proceeding be steno-graphically recorded by a Certified Shorthand Reporter. The arbitrators shall issue a written decision with
respect to all claims or controversies within thirty (30) days from the date the claims or controversies are submitted to arbitration. The parties shall be entitled to be represented by legal counsel at any arbitration proceedings.
 c.      The Company and the Executive acknowledge and agree that the arbitration provisions in this
Agreement may be specifically enforced by both party, and that submission to arbitration proceedings may be compelled by any court of competent jurisdiction. The Company and the Executive further acknowledge and agree that the decision of the
arbitrators may be specifically enforced by either party in any court of competent jurisdiction.
 d.      Notwithstanding the arbitration provisions set forth herein, Executive and the Company acknowledge and agree that nothing in this Agreement shall be construed to require the arbitration
of any claim or controversy arising under Sections 5 or 6 of this Agreement nor shall such provisions prevent the Company from seeking equitable relief from a court of competent jurisdiction for violations of Sections 5 or 6 of this Agreement. These
provisions shall be enforceable by any court of competent jurisdiction and shall not be subject to arbitration except by mutual written consent of the parties signed after the dispute arises, any such consent, and the terms and conditions thereof,
then becoming binding on the parties. The Executive and the Company further acknowledge and agree that nothing in this Agreement shall
 

7

  be construed to require arbitration of any claim for workers’ compensation or unemployment compensation.
 8.      Legal Expenses. In the event that the Company or Executive commences an action, at law or in
equity, to enforce any right under any provision of this Agreement or to compel compliance with any provision of this Agreement, the Company and the Executive agree that the prevailing party in any such action shall be entitled to recover from the
opposite party all reasonable attorney’s fees and costs incurred in connection with such action.
 9.      Successors; Binding Agreement.
 a.      This Agreement shall be binding upon and shall inure to the benefit of the Company, its Successors and Assigns and the Company shall require any Successors and Assigns to expressly
assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession or assignment had taken place.
 b.      Neither this Agreement nor any right or interest hereunder shall be assignable or transferable by the Executive, his beneficiaries or legal
representatives, except by will or by the laws of descent and distribution. This Agreement shall inure to the benefit of and be enforceable by the Executive’s legal personal representative.
 10.    Notice. For the purposes of this Agreement, notices and all other communications provided for in this
Agreement (including the Notice of Termination) shall be in writing and shall be deemed to have been duly given when personally delivered or sent by certified mail, return receipt requested, postage prepaid, addressed to the respective addresses
last given by each party to the other; provided, however, that all notices to the Company shall be directed to the attention of the CEO with a copy to the Secretary of the Company. All notices and communications shall be deemed to have been received
on the date of delivery thereof.
 11.    Modification and Waiver. No
provisions of this Agreement may be modified, waived, or discharged unless such waiver, modification, or discharge is agreed to in writing and signed by the Executive and the Company. No waiver by any party hereto at any time of any breach by the
other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent
time.
 12.    Governing Law. This Agreement shall be governed by and
construed and enforced in accordance with the laws of the State of Georgia without giving effect to the conflict of laws principles thereof. Any action brought by any party to this Agreement shall be brought and maintained in a court of competent
jurisdiction in State of Georgia. 
 13.    Severability. The provisions
of this Agreement shall be deemed severable and the invalidity or unenforceability of any provision shall not affect the validity or enforceability of the other provisions hereof.
 

8

  14.    Entire Agreement. This Agreement
constitutes the entire agreement between the parties hereto and supersedes all prior agreements, if any, understandings and arrangements, oral or written, between the parties hereto with respect to the subject matter hereof.
 15.    Headings. The headings of Sections herein are included solely for convenience of
reference and shall not control the meaning or interpretation of any of the provisions of this Agreement.
 16.    Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the
same instrument.
 17.    Definitions. For purposes of this Agreement,
the following terms shall have the following meanings:
 “Accrued Compensation” shall mean an amount which shall include all amounts earned or accrued
through the Termination Date but not paid as of the Termination Date including (i) Base Salary, and (ii) reimbursement for reasonable and necessary expenses incurred by the Executive on behalf of the Company during the period ending on the
Termination Date.
 “Adequate Justification” shall mean the occurrence of any of the following events or conditions: (i) a material failure of the
Company to comply with the terms of this Agreement; (ii) other than as provided for herein, the removal of the Executive from his position hereunder or any other substantial diminution in the Executive’s authority or the Executive’s
responsibilities or (iii) Executive is required to relocate to an office location that is more than thirty-five (35) miles from the Company’s location on the Effective Date (provided, however, that Executive acknowledges that the duties and
responsibilities of his position will require Executive to travel frequently to the Company’s offices in Florida, Delaware and other locations, possibly for extended periods of time, and that such travel shall not constitute a relocation that
gives rise to Adequate Justification).
 “Agreement” shall have the meaning set forth in the recitals. 
 “Base Amount” shall mean the Executive’s annual Base Salary at the rate in effect on the Termination Date, and shall include all amounts, if any, of his Base Salary that are deferred
under the qualified and non-qualified employee benefit plans of the Company or any other agreement or arrangement.
 “Board” shall have the meaning
set forth in the recitals. 
 “Bonus Amount” shall mean the most recent annual bonus paid or payable to the Executive.
 “Business” shall mean the providing of payment processing and banking services and related services (including transaction processing, risk management, transaction
security, fraud
 

9

  control, reporting tools, sales and marketing, payment options, interface, technology development and back office management) to merchants, financial
institutions, independent sales organizations and other similar customers throughout the United States.
 “Bylaws” shall mean the Amended and Restated
Bylaws of the Company, as amended, supplemented or otherwise modified from time to time.
 “Cause” shall mean termination as a result of: (i)
Executive’s violation of the covenants set forth in Section 5; (ii) Executive’s willful or intentional failure to perform his duties under this Agreement diligently and in accordance with the directions of the Company; (ii)
Executive’s willful, intentional, or grossly negligent failure to comply with the decisions or policies of the Company; (iii) final conviction of Executive of a felony or (iv) any act that (X) constitutes, on the part of the Executive, fraud or
dishonesty, and (Y) is reasonably likely to lead to material injury to the Company or resulted or was intended to result in direct or indirect gain to or personal enrichment of the Executive; provided, however, that in the event the Company desires to terminate Executive’s Employment pursuant to subsections (i), (ii), (iii) or (iv) of this Section, the Company shall first give Executive written notice of such intent, detailed and specific
description of the reasons and basis therefore, and, if such behavior is susceptible to cure, thirty (30) days to remedy or cure such perceived breaches or deficiencies (the “Cure Period”); provided, however
that with respect only to breaches that it is not possible to cure within such thirty (30) day period, so long as Executive is diligently using his best efforts to cure such breaches or deficiencies within such period and
thereafter, the Cure Period shall be automatically extended for an additional period of time (not to exceed sixty (60) days) to enable Executive to cure such breaches or deficiencies; provided further
that Executive continues to diligently use his best efforts to cure such breaches or deficiencies. If Executive does not cure the perceived breaches or deficiencies within the Cure Period, the Company may discharge Executive immediately upon written
notice to Executive. If the Company desires to terminate Executive’s Employment pursuant to subsection (iii) of this Section, the Company shall first give Executive three (3) days prior written notice of such intent.
 “Change in Control” shall mean the occurrence during the Term of any the following events:
 (i)         An acquisition (other than directly from the Company) of any voting securities of the Company (the
“Voting Securities”) by any “Person” (as the term person is used for purposes of Section 13(d) or 14(d) of the Securities Exchange Act of 1934 (the “1934 Act”)) immediately after which such Person has “Beneficial
Ownership” (within the meaning of Rule 13d-3 promulgated under the 1934 Act) of 34% or more of the combined voting power of the Company’s then outstanding Voting Securities; provided,
however, that in determining whether a Change in Control has occurred, Voting Securities which are acquired in a “Non-Control Acquisition” (as hereinafter defined) shall not constitute an
acquisition which would cause a Change in Control. A “Non-Control Acquisition” shall mean an acquisition by (1) an employee benefit plan (or a trust forming a part
 

10

  thereof) maintained by (x) the Company or (y) any corporation or other Person of which a majority of its voting power or its
equity securities or equity interest is owned directly or indirectly by the Company (a “Subsidiary”), (2) the Company or any Subsidiary, or (3) any Person in connection with a “Non-Control Transaction” (as hereinafter
defined);
 (ii)        The individuals who, as of the date
of this Agreement, are members of the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that if the election, or nomination for election by the Company’s shareholders, of any new director was approved by a vote of at least a majority of the Incumbent Board, such new director shall, for
purposes of this Agreement, be considered as a member of the Incumbent Board; provided, further, however,
that no individual shall be considered a member of the Incumbent Board if such individual initially assumed office as a result of either an actual or threatened “Election Contest” (as described in Rule 14a-11 promulgated under the 1934
Act) or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board (a “Proxy Contest”) including by reason of any agreement intended to avoid or settle any Election Contest or Proxy
Contest; or
 (iii)       Approval by shareholders of the Company
of:
 (A)            A merger, consolidation or
reorganization involving the Company, unless
 (1) the shareholders of the Company, immediately
before such merger, consolidation or reorganization, own, directly or indirectly, immediately following such merger, consolidation or reorganization, at least a majority of the combined voting power of the outstanding voting securities of the
corporation resulting from such merger or consolidation or reorganization (the “Surviving Corporation”) in substantially the same proportion as their ownership of the Voting Securities immediately before such merger, consolidation or
reorganization, and
 (2) the individuals who were members of the Incumbent Board immediately
prior to the execution of the agreement providing for such merger, consolidation or reorganization constitute at least a majority of the members of the board of directors of the Surviving Corporation.
 (A transaction described in clauses (1) and (2) shall herein be referred to as a “Non-Control Transaction”).
 

11

  (B)            A complete liquidation
or dissolution of the Company; or
 (C)            An agreement for the sale or other disposition of all or substantially all of the assets of the Company to any Person (other than a transfer to a
Subsidiary).
 (iv)       Notwithstanding anything contained in
this Agreement to the contrary, if the Executive’s employment is terminated prior to a Change in Control and the Executive reasonably demonstrates that such termination (A) was at the request of a third party who has indicated an intention or
taken steps reasonably calculated to effect a Change in Control and who effectuates a Change in Control (a “Third Party”) or (B) otherwise occurred in connection with, or in anticipation of, a Change in Control which actually occurs,
then for all purposes of this Agreement, the date of a Change in Control with respect to the Executive shall mean the date immediately prior to the date of such termination of the Executive’s employment.
 “CEO” shall mean John W. Collins or his successor as the chief executive officer of the Company.
 “Company” shall have the meaning set forth in the recitals. 
 “Compensation Committee” shall mean the compensation committee of the
Board. 
 “Competing Business” shall mean any business that, in whole or in part, is the same or substantially the same as the Business.
 “Confidential Business Information” shall mean any non-public information of a competitively sensitive or personal nature, other than Trade Secrets, acquired by
the Executive, directly or indirectly, in connection with the Executive’s employment, including (without limitation) oral and written information concerning the Company or its affiliates relating to financial position and results of operations
(revenues, margins, assets, net income, etc.), annual and long-range business plans, marketing plans and methods, account invoices, oral or written customer information, and personnel information. Confidential Business Information also includes
information recorded in manuals, memoranda, projections, minutes, plans, computer programs, and records, whether or not legended or otherwise identified by the Company and its affiliates as Confidential Business Information, as well as information
which is the subject of meetings and discussions and not so recorded; provided, however, that Confidential Business Information shall not include information that is generally available to the public, other than as a result of disclosure, directly
or indirectly, by the Executive, or was available to the Executive on a non-confidential basis prior to its disclosure to the Executive.
 

12

  “Disability” shall mean the inability of the Executive to perform substantially all of his current duties as required hereunder
for a continuous period of 180 days because of mental or physical condition, illness, or injury.
 “Effective Date” shall mean the date set forth in
the recitals.
 “Executive” shall have the meaning set forth in the recitals. 
 “Notice of Termination” shall mean a written notice of termination from the Company or the Executive that specifies an effective date of termination, indicates the specific termination provision in this
Agreement relied upon, and, if applicable, sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive’s employment under the provision so indicated.
 “Plan” shall mean the InterCept, Inc. 2002 Stock Option Plan, and any additional, successor or replacement stock option plan adopted by the Company.
 “Pro Rata Bonus” shall mean an amount equal to the Bonus Amount multiplied by a fraction the numerator of which is the number of days in the fiscal year through the
Termination Date and the denominator of which is 365.
 “Successors and Assigns” shall mean a corporation or other entity acquiring all or
substantially all the assets and business of the Company (including this Agreement), whether by operation of law or otherwise.
 “Term” shall have the
meaning set forth in Section 2 of this Agreement.
 “Termination Date” shall mean, in the case of the Executive’s death, his date of death, and
in all other cases, the date specified in the Notice of Termination.
 “Trade Secrets” shall mean information or data of or about the Company or any
affiliated entity, including, but not limited to, technical or nontechnical data, formulas, patterns, compilations, programs, devices, methods, techniques, drawings, processes, financial data, financial plans, products plans, or lists of actual or
potential customers, clients, distributors, or licensees, that: (i) derive economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value
from their disclosure or use; and (ii) are the subject of efforts that are reasonable under the circumstances to maintain their secrecy. To the extent that the foregoing definition is inconsistent with a definition of “trade secret”
mandated under applicable law, the latter definition shall govern for purposes of interpreting the Executive’s obligations under this Agreement.
 [Signatures follow on next page]
 

13

  IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its officer thereunto duly authorized, and the Executive has signed this
Agreement, effective as of the date first above written.
   

	  
 	  
 	  
 	 INTERCEPT, INC.
 
	  
 	  
 	  
 	  
 	 By: 
 	 
 
 /s/ G. Lynn Boggs
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Name: 
 	 G. Lynn Boggs 
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Title: 
 	 President
 
	  
 	  
 	  
 	  
 	  
 	 
 

 (CORPORATE SEAL)
   

	  
 	  
 	  
 	 EXECUTIVE
 
	 
 
 
 	  
 	  
 	 
 
 /s/ John M. Perry
 
	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	 John M. Perry
 

   
 
 14

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