Document:

Exhibit
10.3

Nonemployee
Directors Stock Incentive Program

(Amended
and Restated as of May 10, 2007)

Edwards
Lifesciences Corporation

 

Contents

	
  Article 1.

  	
   

  	
  Establishment,
  Objectives, and Duration

  	
   

  	
  1

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article 2.

  	
   

  	
  Definitions

  	
   

  	
  1

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article 3.

  	
   

  	
  Administration

  	
   

  	
  4

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article 4.

  	
   

  	
  Eligibility and
  Participation

  	
   

  	
  5

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article 5.

  	
   

  	
  Shares Subject to the
  Program

  	
   

  	
  5

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article 6.

  	
   

  	
  Stock Options

  	
   

  	
  7

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article
  7.

  	
   

  	
  Stock Issuances

  	
   

  	
  9

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article 8.

  	
   

  	
  Restricted Stock

  	
   

  	
  9

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article 9.

  	
   

  	
  Restricted Stock Units

  	
   

  	
  11

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article 10.

  	
   

  	
  Stock Appreciation
  Rights

  	
   

  	
  12

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article 11.

  	
   

  	
  Automatic Awards to
  Nonemployee Directors

  	
   

  	
  13

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article 12.

  	
   

  	
  Beneficiary Designation

  	
   

  	
  15

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article 13.

  	
   

  	
  Deferrals

  	
   

  	
  16

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article 14.

  	
   

  	
  Rights of Participants

  	
   

  	
  16

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article 15.

  	
   

  	
  Change in Control

  	
   

  	
  16

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article 16.

  	
   

  	
  Amendment,
  Modification, and Termination

  	
   

  	
  16

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article 17.

  	
   

  	
  Compliance with
  Applicable Law and Withholding

  	
   

  	
  17

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article 18.

  	
   

  	
  Indemnification

  	
   

  	
  19

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article 19.

  	
   

  	
  Successors

  	
   

  	
  19

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article 20.

  	
   

  	
  Legal Construction

  	
   

  	
  19

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

 i

Edwards
Lifesciences Corporation

Nonemployee
Directors Stock Incentive Program

(amended and restated as of May 10, 2007)

Article 1.               Establishment, Objectives, and
Duration

1.1.                            Establishment
of the Program.  Edwards Lifesciences Corporation, a Delaware
corporation (hereinafter referred to as the “Company”), hereby amends and
restates the incentive compensation plan formerly known as the Edwards
Lifesciences Corporation Nonemployee Directors 
and Consultants Stock Incentive Program (hereinafter, as amended and
restated, referred to as the “Program”), as set forth in this document,
effective as of May 10, 2007.  The
Program was previously amended and restated in March 2002, November 2002, May
2003, February 19, 2004 and March 4, 2005. 
Prior to the amendment and restatement on March 4, 2005, consultants
were eligible to participate in the Program. 
The Program permits the grant of Nonqualified Stock Options, Stock
Issuances, Restricted Stock, Restricted Stock Units and Stock Appreciation
Rights.

The Program became
effective as of April 1, 2000 (the “Effective Date”) and shall remain in effect
as provided in Section 1.3 hereof.

1.2.                            Objectives
of the Program.  The objectives of the Program are to optimize
the profitability and growth of the Company through long-term incentives which
are consistent with the Company’s goals and which link the personal interests
of Participants to those of the Company’s stockholders.  The Program is further intended to provide
flexibility to the Company in its ability to motivate, attract, and retain
the services of Participants who make significant contributions to the Company’s
success and to allow Participants to share in the success of the Company.

1.3.                            Duration
of the Program.  The Program shall commence on the Effective
Date, as described in Section 1.1 hereof, and shall remain in effect,
subject to the right of the Board to amend or terminate the Program at any time
pursuant to Article 16 hereof, until all Shares subject to it shall have
been purchased or acquired according to the Program’s provisions.  However, in no event may an Award be granted
under the Program on or after April 1, 2010.

Article 2.               Definitions

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

 1
 

2.1.         “Annual
Retainer” means the fixed annual fee of a Nonemployee
Director in effect on the first day of the year in which such Annual Retainer
is payable for services to be rendered as a Nonemployee Director of the
Company. The Annual Retainer does not include meeting or chairmanship fees.

2.2.                            “Award” means, individually or collectively, a grant under
this Program of Nonqualified Stock Options, Stock Issuances, Restricted Stock,
Restricted Stock Units, or Stock Appreciation Rights.

2.3.                            “Award
Agreement”
means an agreement entered into by the Company and each Participant setting
forth the terms and provisions applicable to Awards granted under this Program.

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

2.5.                            “Change
in Control” of
the Company shall mean the occurrence of any one of the following events:

(a)                                  Any
“Person”, as such term is used in Sections 13(d) and 14(d) of the
Exchange Act (other than the Company, any corporation owned, directly or
indirectly, by the stockholders of the Company in substantially the same
proportions as their ownership of stock of the Company, and any trustee or
other fiduciary holding securities under an employee benefit plan of the
Company or such proportionately owned corporation), is or becomes the “beneficial
owner” (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of securities of the Company representing thirty percent (30%) or
more of the combined voting power of the Company’s then outstanding securities;
or

(b)                                 During
any period of not more than twenty-four (24) months, individuals who at the
beginning of such period constitute the Board of Directors of the Company, and
any new director (other than a director designated by a Person  who has entered into an agreement with the Company to
effect a transaction described in Sections 2.5(a), 2.5(c), or 2.5(d) of this
Section 2.5) whose election by the Board or nomination for election by the
Company’s stockholders was approved by a vote of at least two-thirds (2/3) of
the directors then still in office who either were directors at the beginning
of the period or whose election or nomination for election was previously so
approved, cease for any reason to constitute at least a majority thereof; or

(c)                                  The
consummation of a merger or consolidation of the Company with any other entity,
other than: (i) a merger or consolidation which would result in the voting
securities of the Company outstanding immediately prior thereto continuing to
represent (either by 

 2
 

remaining
outstanding or by being converted into voting securities of the surviving
entity) more than sixty percent (60%) of the combined voting power of the
voting securities of the Company or such surviving entity outstanding
immediately after such merger or consolidation; or (ii) a merger or
consolidation effected to implement a recapitalization of the Company (or
similar transaction) in which no Person acquires more than thirty percent (30%)
of the combined voting power of the Company’s then outstanding securities; or

(d)                                 The
Company’s stockholders approve a plan of complete liquidation or dissolution of
the Company, or an agreement for the sale or disposition by the Company of all
or substantially all of the Company’s assets (or any transaction having a
similar effect.

2.6.                            “Code” means the Internal Revenue Code of 1986, as amended from
time to time.

2.7.                            “Committee” means the Compensation and Governance Committee and any
successor thereto or any other committee appointed by the Board to administer
Awards to Participants, as specified in Article 3 herein.

2.8.                            “Company” means Edwards Lifesciences Corporation, a Delaware
corporation, and any successor thereto as provided in Article 19 herein.

2.9.                            
“Disability” shall
have the meaning ascribed to such term in the Participant’s governing long-term
disability plan, or if no such plan exists, at the discretion of the Board.

2.10.                     “Effective
Date” shall have the
meaning ascribed to such term in Section 1.1 hereof.

2.11.                     “Employee” means an employee of the Company or of a Subsidiary of the
Company.

2.12.                     “Exchange
Act” means the Securities
Exchange Act of 1934, as amended from time to time, or any successor act
thereto.

2.13.                     “Fair
Market Value”
means, at any date, the closing sale price on the principal securities exchange
on which the Shares are traded on the last previous day on which a sale was
reported.

2.14.                     “Nonemployee
Director”
means a member of the Company’s Board who is not an Employee of the Company.

2.15.                     “Nonqualified
Stock Option” or “Option” means an option to purchase Shares granted under
Article 6 or Article 11 herein and which is not intended to meet the
requirements of Code Section 422.

 3
 

2.16.                     “Option
Price” means the price at
which a Share may be purchased by a Participant pursuant to an Option.

2.17.                     “Participant” means a Nonemployee Director who has been selected to
receive an Award or who has outstanding an Award granted under the Program.

2.18.                     “Period
of Restriction”
means the period during which the transfer of Shares of Restricted Stock is
limited in some way (based on the passage of time, the achievement of
performance goals, or upon the occurrence of other events as determined by the
Committee, in its discretion), and the Shares are subject to a substantial risk
of forfeiture, as provided in Article 8 herein.

2.19.                     “Restricted
Stock” means an Award
granted to a Participant pursuant to Article 8 herein.

2.20.                     “Restricted
Stock Unit”
means an Award granted to a Participant pursuant to Article 9 herein.

2.21.                     “Shares” means the shares of common stock of the Company.

2.22.                     “Stock
Appreciation Right”
means an Award granted to a Participant pursuant to Article 10 herein.

2.23.                     “Stock
Issuance”
means an Award granted to a Participant pursuant to Article 7 herein.

2.24.                     “Subsidiary” means any business, whether or not incorporated, in which
the Company beneficially owns, directly or indirectly through another entity or
entities, securities or interests representing more than fifty percent (50%) of
the combined voting power of the voting securities or voting interests of such
business.

Article 3.               Administration

3.1.                            General.  The Program shall
be administered by the Compensation and Planning Committee of the Board, or by
any other Committee appointed by the Board. Any Committee administering the
Program shall be comprised entirely of directors. The members of the Committee
shall be appointed from time to time by and shall serve at the sole discretion
of the Board.  Members of the Committee
may participate in the Program.  The
Committee shall have the authority to delegate administrative duties to
officers, Employees, or directors of the Company; provided that the Committee
shall not be able to delegate its authority with respect to granting Awards.

3.2.                            Authority
of the Committee.  Except as limited by law or by the
Certificate of Incorporation or Bylaws of the Company, and subject to the
provisions of 

 4
 

the Program, the Committee shall have the authority to: (a)
interpret the provisions of the Program, and prescribe, amend, and rescind
rules and procedures relating to the Program; (b) grant Awards under the
Program, in such forms and amounts and subject to such terms and conditions as
it deems appropriate, including, without limitation, Awards which are made in
combination with or in tandem with other Awards (whether or not
contemporaneously granted) or compensation or in lieu of current or deferred
compensation; (c) subject to Article 16, modify the terms of, cancel and
reissue, or repurchase outstanding Awards; (d) prescribe the form of agreement,
certificate or other instrument evidencing any Award under the Program; (e)
correct any defect or omission and reconcile any inconsistency in the Program
or in any Award hereunder; (f) design Awards to satisfy requirements to make
such Awards tax-advantaged to Participants in any jurisdiction or for any other
reason that the Company desires; and (g) make all other determinations and take
all other actions as it deems necessary or desirable for the administration of
the Program; provided, however, that except for adjustments made pursuant to
Section 5.4, no outstanding Option will be amended or cancelled in connection
with any program that is considered a repricing of the Option under the rules
of the principal securities exchange on which the Shares are traded without
stockholder approval.  The determination
of the Committee on matters within its authority shall be conclusive and
binding on the Company and all other persons. The Committee shall comply with
all applicable laws in administering the Plan. 
As permitted by law (and subject to Section 3.1 herein), the
Committee may delegate its authority as identified herein.

3.3.                            Decisions
Binding.  All determinations and decisions made by the
Committee pursuant to the provisions of the Program and all related orders and
resolutions of the Board shall be final, conclusive and binding on all persons,
including the Company, its stockholders, directors, Participants, and their
estates and beneficiaries.

Article 4.               Eligibility and Participation

4.1.                            Eligibility.  Persons eligible to
participate in this Program shall be all Nonemployee Directors.

4.2.                            Actual
Participation.  Subject to the provisions of the Program, the
Committee may, from time to time, select from all eligible Nonemployee
Directors those to whom Awards shall be granted and shall determine the nature
and amount of each Award.

Article 5.               Shares Subject to the Program

5.1.                            Number
of Shares Available for Grants.  Subject to adjustment as provided in
Section 5.4 herein, the number of Shares hereby reserved for delivery to 

 5
 

Participants under the Program shall be six hundred
thousand (600,000) Shares.  Subject to
the restrictions for Nonemployee Directors set forth in Article 11, the
Committee shall determine the appropriate methodology for calculating the
number of Shares issued pursuant to the Program.

5.2.                            Type
of Shares.  Shares issued under the Program in connection
with Options may be authorized and unissued Shares or issued Shares held as
treasury Shares.  Shares issued under the
Program in connection with Restricted Stock shall be issued Shares held as
treasury Shares; provided, however, that authorized and unissued Shares may be
issued in connection with Restricted Stock to the extent that the Committee
determines that past services of the Participant constitute adequate
consideration for at least the par value thereof.

5.3.                            Reuse
of Shares.

(a)                                  General.  In the event of the exercise or termination
(by reason of forfeiture, expiration, cancellation, surrender or otherwise) of
any Award under the Program, that number of Shares that was subject to the
Award but not delivered shall again be available as Awards under the Program.

(b)                                 Restricted Stock.  In the event that Shares are delivered under
the Program as Restricted Stock and are thereafter forfeited or reacquired by
the Company pursuant to rights reserved upon the grant thereof, such forfeited
or reacquired Shares shall again be available as Awards under the Program.

5.4.                            Adjustments
in Authorized Shares.  In the event of any change in corporate
capitalization, such as a stock split, or a corporate transaction, such as
any merger, consolidation, separation, including a spin-off, or other
distribution of stock or property of the Company, any reorganization (whether
or not such reorganization comes within the definition of such term in Code
Section 368) or any partial or complete liquidation of the Company, such
adjustment shall be made in the number and class of Shares which may be
delivered under Section 5.1, in the number and class of and/or price of Shares
subject to outstanding Awards granted under the Program and in the number
and/or class of Shares subject to Awards to be granted to Nonemployee Directors
under Article 11, as shall be determined to be appropriate and equitable by the
Board, in its sole discretion, to prevent dilution or enlargement of rights;
provided, however, that the number of Shares subject to any Award shall always
be a whole number.  In a stock-for-stock
acquisition of the Company, the Committee may, in its sole discretion,
substitute securities of another issuer for any Shares subject to outstanding
Awards.

 6
 

Article 6.               Stock Options

6.1.                            Grant
of Options.

(a)                                  Subject
to the terms and provisions of the Program, Options may be granted in such number,
and upon such terms, and at any time and from time to time as shall be
determined by the Committee.

(b)                                 If
all or any portion of the exercise price or taxes incurred in connection with
the exercise are paid by delivery (or, in the case of payment of taxes, by
withholding of Shares) of other Shares of the Company, a Participant’s Options
may provide for the grant of replacement Options.  All Options under the Program shall be
granted in the form of nonqualified stock options as no Option under the Program
may be granted in the form of an incentive stock option as defined under the
provisions of Code Section 422.

6.2.                            Award
Agreement.  Each Option grant shall be evidenced by an
Award Agreement that shall specify the Option Price, the duration of the Option,
the number of Shares to which the Option pertains, and such other provisions as
the Committee shall determine.

6.3.                            Option
Price.  The Option Price for each grant of an Option
under this Program shall be at least equal to one hundred percent (100%)
of the Fair Market Value of a Share on the date the Option is granted.

6.4.                            Duration
of Options.  Each Option granted to a Participant shall
expire at such time, not later than the tenth (10th)
anniversary date of its grant, as the Committee shall determine; provided,
however, that an Option may have such shorter or longer term as the Committee
shall deem necessary to comply with applicable federal, state, local or, if
applicable, foreign law, or, if the Committee so determines, to qualify for
favorable tax treatment.  Unless the
Committee determines otherwise, the term of each Option granted to a
Participant after May 14, 2003, shall expire on the seventh (7th)
anniversary date of its grant, subject to such provisions for earlier
expiration as the Committee may specify in accordance with Section 6.8
(relating to termination of directorship) or otherwise.

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

6.6.                            Payment.  Options granted
under this Article 6 shall be exercised by the delivery of a written
notice of exercise (or such other form of notice as the Company may specify) to
the Company, setting forth the number of Shares 

 7
 

with respect to which the Option is to be exercised,
accompanied by full payment for the Shares (or a satisfactory “cashless
exercise” notice).

The Option Price
upon exercise of any Option shall be payable to the Company in full either: (a)
in cash or its equivalent; (b) by tendering previously acquired Shares (by
either actual delivery or attestation) having an aggregate Fair Market Value at
the time of exercise equal to the total Option Price (provided that the Shares
which are tendered must have been held by the Participant for at least six (6)
months, or such shorter or longer period, if any, as is necessary to avoid
variable accounting treatment); (c) by a cashless exercise as permitted under
Federal Reserve Board’s Regulation T, subject to applicable securities law
restrictions and such procedures and limitations as the Company may specify
from time to time; (d) by any other means which the Board determines to be
consistent with the Program’s purpose and applicable law; or (e) by a
combination of two or more of (a) through (d).

Subject to any
governing rules or regulations, including cashless exercise procedures, as soon
as practicable after receipt of a notification of exercise and full payment (or
a satisfactory “cashless exercise” notice), the Company shall cause to be
issued and delivered to the Participant, in certificate form or otherwise,
evidence of the Shares purchased under the Option(s).

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

6.8.                            Termination
of Directorship.  Each Participant’s Option Award Agreement
shall set forth the extent to which the Participant shall have the right to
exercise the Option following termination of the Participant’s service to the
Company as a Nonemployee Director.  Such
provisions shall be determined in the sole discretion of the Committee, shall
be included in the Award Agreement entered into with each Participant, need not
be uniform among all Options issued pursuant to this Article 6, and may
reflect distinctions based on the reasons for termination.

6.9.                            Nontransferability
of Options.  Except as otherwise provided in a Participant’s
Award Agreement, no Option granted under this Article 6 may be sold,
transferred, pledged, assigned, or otherwise alienated or hypothecated, other
than by will or by the laws of descent and distribution.  Further, except as otherwise provided in a
Participant’s Award Agreement, all Options granted to a Participant under this
Article 6 shall be exercisable during his or her lifetime only by such
Participant.

 8
 

6.10.                     Substitution
of Cash.  Unless otherwise provided in a Participant’s
Award Agreement, and notwithstanding any provision in the Program to the
contrary (including but not limited to Section 16.3), in the event of a Change
in Control in which the Company’s stockholders holding Shares receive
consideration other than shares of common stock that are registered under
Section 12 of the Exchange Act, the Committee shall have the authority to
require that any outstanding Option be surrendered to the Company by a
Participant for cancellation by the Company, with the Participant receiving in
exchange a cash payment from the Company within ten (10) days of the Change in
Control.  Such cash payment shall be
equal to the number of Shares under Option, multiplied by the excess, if any,
of the greater of (i) the highest per Share price offered to stockholders in
any transaction whereby the Change in Control takes place, or (ii) the Fair
Market Value of a Share on the date the Change in Control occurs, over the
Option Price.

Article 7.               Stock Issuances

7.1.                            Stock
Issuance Awards.  Subject to the terms and provisions of the
Program, the Committee may issue Shares as fully vested shares (“Stock
Issuances”) in such number and upon such terms as shall be determined by the
Committee.

7.2.                            Consideration.  A Stock Issuance
may be awarded in consideration for cash, past services rendered to the Company
or an Affiliate or for such other consideration as determined by the Committee.

Article 8.               Restricted Stock

8.1.                            Restricted
Stock Awards.  Subject to the terms and provisions of the
Program, the Committee may issue Shares subject to retention and transfer
restrictions (“Restricted Stock”) as shall be determined by the Committee.

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

8.3.                            Restriction
on Transferability.  Except as provided in this Article 8,
the Shares of Restricted Stock granted herein may not be sold, transferred,
pledged, assigned, or otherwise alienated or hypothecated until the end of the
applicable Period of Restriction established by the Committee and specified in
the Restricted Stock Award Agreement, or upon earlier satisfaction of any other
conditions, as specified by the Committee in its sole discretion and set forth
in the Restricted Stock Award Agreement. 
All rights with respect to the Restricted Stock granted to a Participant
under the Program shall be available during his or her lifetime only to such
Participant.

 9
 

8.4.                            Other
Restrictions. The
Committee shall impose such other conditions and/or restrictions on any Shares
of Restricted Stock granted pursuant to the Program as it may deem advisable
including, without limitation, any or all of the following:

(a)                                  A
required period of service with the Company, as determined by the Committee,
prior to the vesting of Shares of Restricted Stock.

(b)                                 A
requirement that Participants forfeit (or in the case of Shares sold to a
Participant, resell to the Company at his or her cost) all or a part of Shares
of Restricted Stock in the event of termination of his or her service as a
Nonemployee Director during the Period of Restriction.

(c)                                  A
prohibition against such Participants’ dissemination of any secret or
confidential information belonging to the Company, or the solicitation by
Participants of the Company’s Employees for employment by another entity.

Shares of Restricted
Stock awarded pursuant to the Program shall be registered in the name of the
Participant and if such Shares are certificated, in the sole discretion of the
Committee, such certificate may be deposited in a bank designated by the
Committee or with the Company.  The
Committee may require a stock power endorsed in blank with respect to Shares of
Restricted Stock whether or not certificated.

Except as otherwise
provided in this Article 8, Shares of Restricted Stock covered by each
Restricted Stock grant made under the Program shall become freely transferable
(subject to any restrictions under applicable securities law) by the
Participant after the last day of the applicable Period of Restriction.

8.5.                            Voting
Rights.
Unless the Committee determines otherwise, Participants holding Shares of
Restricted Stock issued hereunder shall be entitled to exercise full voting
rights with respect to those Shares during the Period of Restriction.

8.6.                            Dividends
and Other Distributions.  Unless the Committee determines otherwise,
during the Period of Restriction, Participants holding Shares of Restricted
Stock issued hereunder shall be entitled to regular cash dividends paid with
respect to such Shares.  The Committee
may apply any restrictions to the dividends that the Committee deems
appropriate.

8.7.                            Termination
of Directorship.  Each Restricted Stock Award Agreement shall
set forth the extent to which the Participant shall have the right to vest in
previously unvested Shares of Restricted Stock following termination of the
Participant’s service to the Company as a Nonemployee Director.  Such provisions shall be determined in the
sole discretion of the Committee, shall 

 10
 

be included in the Award Agreement entered into with each
Participant, need not be uniform among all Shares of Restricted Stock issued
pursuant to the Program, and may reflect distinctions based on the reasons for
termination.

Article 9.               Restricted Stock Units

9.1.                            Restricted
Stock Units Awards.  Subject to the terms and conditions of the
Program, the Committee may issue restricted stock units (“Restricted Stock
Units”) which entitle the Participant to receive the Shares underlying those
units following the lapse of specified restrictions (whether based on the
achievement of designated performance goals or the satisfaction of specified
services or upon the expiration of a designated time period following the
vesting of the units).

9.2.                            Restricted
Stock Units Award Agreement.  Each Restricted Stock Units award shall be
evidenced by a Restricted Stock Units Award Agreement that shall specify the
vesting restrictions, the number of Shares subject to the Restricted Stock
Units award, and such other provisions as the Committee shall determine.

9.3.                            Restrictions. The Committee shall impose such other conditions and/or
restrictions on the issuance of any Shares under the  Restricted Stock Units granted pursuant to
the Program as it may deem advisable including, without limitation, any or all
of the following:

(a)                                  A
required period of service with the Company, as determined by the Committee,
prior to the issuance of Shares under the Restricted Stock Units award.

(b)                                 A
requirement that the Restricted Stock Units award be forfeited in whole or in
part in the event of termination of the Participant’s services as a Nonemployee
Director during the vesting period.

(c)                                  A
prohibition against such Participants’ dissemination of any secret or
confidential information belonging to the Company, or the solicitation by
Participants of the Company’s Employees for employment by another entity.

Except as otherwise
provided in this Article 9, Shares subject to Restricted Stock Units under
the Program shall be freely transferable (subject to any restrictions under
applicable securities law) by the Participant after receipt of such shares.

9.4.                            Stockholder
Rights.  Participants holding Restricted Stock Units
issued hereunder shall not have any rights with respect to Shares subject to
the award until the award vests and the Shares are issued hereunder.  However, dividend-equivalent units may be
paid or credited, either in cash or in actual 

 11
 

or phantom Shares, on outstanding Restricted Stock Units
awards, subject to such terms and conditions as the Committee may deem
appropriate.

9.5.                            Termination
of Directorship.  Each Restricted Stock Units Award Agreement
shall set forth the extent to which the Participant shall have the right to
vest in previously unvested Shares subject to the Restricted Stock Units award
following termination of the Participant’s service to the Company as a
Nonemployee Director.  Such provisions
shall be determined in the sole discretion of the Committee, shall be included
in the Award Agreement entered into with each Participant, need not be uniform
among all Restricted Stock Unit awards issued pursuant to the Program, and may
reflect distinctions based on the reasons for termination.

Article 10.            Stock Appreciation Rights

10.1.                     Stock
Appreciation Rights Awards.  Subject to the terms and conditions of the
Program, the Committee may issue a Stock Appreciation Rights award which shall
entitle the Participant to receive upon exercise a payment in cash or Shares
underlying the exercised award equal to the excess (if any) of (a) the Fair
Market Value of the  Shares on the date
of exercise over (b) the aggregate base price in effect for such Shares.  A Stock Appreciation Right shall become
exercisable during such times and subject to such conditions as shall be
determined by the Committee, in its sole discretion.

10.2.                     Stock
Appreciation Rights Agreement.  Each Stock Appreciation Rights award shall be
evidenced by a Stock Appreciation Rights Award Agreement that shall specify the
vesting restriction, the number of Shares subject to the award and such
additional terms and conditions as the Committee shall determine.

10.3.                     Base
Price.  The base price for each grant of a Stock
Appreciation Right under this Program shall be at least equal to one hundred
percent (100%) of the Fair Market Value of a Share on the date the award
is granted.

10.4.                     Nontransferability
of Stock Appreciation Rights.  Except as otherwise provided in a Participant’s
Award Agreement, no Stock Appreciation Right granted under this Article 10
may be sold, transferred, pledged, assigned, or otherwise alienated or
hypothecated, other than by will or by the laws of descent and distribution.  Further, except as otherwise provided in a
Participant’s Award Agreement, all Stock Appreciation Rights granted to a
Participant under this Article 10 shall be exercisable during his or her
lifetime only by such Participant.

 12
 

Article 11.            Automatic Awards to Nonemployee
Directors

11.1.                     Initial
Awards.

(a)                                  Initial Awards Prior to May 10, 2007.  Subject to the terms and provisions of the
Program, each Nonemployee Director shall be granted Restricted Stock Units for
five thousand (5,000) Shares effective as of the date of such Nonemployee
Director’s first election to the Board.

(b)                                 Initial Awards On and After May 10, 2007.  Subject to the terms and provisions of the
Program, each Nonemployee Director who is first elected to the Board on or
after May 10, 2007, shall be granted, on the date of such election,
Restricted Stock Units for the number of Shares determined by dividing two
hundred thousand (200,000) by the Fair Market Vale per Share on such date, and
rounding up to the nearest whole Share; provided, however, that in no event
shall such number exceed five thousand (5,000) shares.

(c)                                  Each
Initial Award shall vest in a series of two (2) successive equal annual
installments upon the Participant’s completion of each year of Board service
over the two (2)-year period measured from the grant date.  However, in no event shall Initial Awards for
more than sixty thousand (60,000) Shares in the aggregate be issued under
Article 11.1(a) which vest over a two (2)-year period.  Any Initial Awards granted after Initial
Awards for an aggregate of sixty thousand (60,000) Shares have been issued
shall vest in a series of three (3) successive equal annual installments upon
the Participant’s completion of each year of Board service over the three
(3)-year period measured from the grant date (or such longer period as
determined by the Committee).

(d)                                 All
additional terms of an Initial Award will be as set forth in Section 8,
herein, or as set forth in the specific Award Agreement governing such
award.  Each Initial Award shall become
fully-vested in the event of the Participant’s death or Disability.

11.2.                     Annual
Awards.

(a)                                  Annual Grants Prior to April 30, 2004.  Subject to the discretion of the Committee
and the terms and provisions of the Program, during the period beginning
January 1, 2001 and ending prior to April 30, 2004, each Nonemployee Director
shall receive annually an Option to purchase ten thousand (10,000) Shares,
effective as of the day following each annual meeting of the Company’s
stockholders (but subject to any vesting provisions or other restrictions
determined by the Committee).

 13
 

(b)                                 Annual Awards On and After April 30, 2004.  Subject to the discretion of the Committee
and the terms and provisions of the Program, during the period beginning April
30, 2004 and ending April 1, 2010, each Nonemployee Director shall receive
annually, effective as of the day following each annual meeting of the Company’s
stockholders an award as follows:

(i)                  An
Option for up to ten thousand (10,000) Shares, or

(ii)               A
Restricted Stock Units award for up to four thousand (4,000) Shares, or

(iii)            A
combination of an Option and Restricted Stock Units award, provided that in no
event may the total value of the Option and Restricted Stock Units award
subject to such combined award exceed two hundred thousand dollars
($200,000).  The Committee shall have the
sole discretion to determine the amount and type of award for each year within
the foregoing limitations.  For such
purposes, the value of the Annual Award shall be calculated as follows: (A) the
value of an Option Share shall be equal to the fair value of an option share as
estimated on the date of grant under a valuation model approved by the
Financial Accounting Standards Board (“FASB”) for purposes of the Company’s financial
statements under FAS 123 (or any successor provision); and (B) the value of a
Restricted Stock Unit shall be equal to the Fair Market Value of the Share on
the award date.

(c)                                  Each
Annual Award shall vest in a series of three (3) successive equal annual
installments upon the Participant’s completion of each year of Board service
over the three (3)-year period measured from the award date (or such longer
period as determined by the Committee). 
Each Annual Award shall become fully vested in the event of the
Participant’s death or Disability.

(d)                                 All
additional terms of an Annual Award will be as set forth in Articles  6
and 9 herein, or as set forth in the specific Award Agreement governing such
award.

11.3.                     Annual
Retainer Election.

(a)                                  Subject
to the terms and provisions of the Program and any other restrictions set out
by the Committee in its sole discretion, the Committee may permit each
Nonemployee Director to elect to receive all or a portion of his or her Annual
Retainer in the form of Options or Stock Issuances to be issued as of the first
day on which such Annual Retainer is otherwise due and payable (the “Conversion

 14
 

Date”)
and using the Fair Market Value of a Share as of the Conversion Date as the
Option Price of the Options.

(b)                                 If
conversion elections are permitted by the Committee, each irrevocable election
shall be made in accordance with such rules as the Committee may determine in
its sole discretion.  Except as may
otherwise be determined by the Committee, in the event of a Participant’s
election to receive an Option in lieu of his Annual Retainer, the number of
shares subject to the Option shall be determined by dividing that portion of
the Annual Retainer to be paid in the form of the Option by the Fair Market
Value of a Share on the Conversion Date and multiplying the quotient by four
(4).  In the event of a Participant’s
election to receive Shares in lieu of an Annual Retainer, the number of such
Shares shall be determined by dividing that portion of the Annual Retainer to
be paid in the form of Shares by the Fair Market Value of a Share on the
Conversion Date. In the event the preceding formula would result in a
fractional Share being issued or subject to the Option, the portion of the
converted Annual Retainer attributable to such fractional Share will be
refunded to the Nonemployee Director in cash instead of being converted into
such fractional Share.  However,
effective with stock issuances or Options granted on or after May 10, 2007, in
the event the preceding formula would result in a fractional Share being issued
or subject to an Option, the number of Shares subject to the issuance or Option
shall be rounded up to the nearest whole Share.

(c)                                  Any
portion of a Nonemployee Director’s Annual Retainer for which an election has
not been made pursuant to this Section 11.3, shall be paid in cash to such
Nonemployee Director at such time or times as payments thereof are customarily
made by the Company.

(d)                                 All
additional terms of an Award received as a result of the election described
herein will be as set-forth in Sections 6 and 7, herein, or as set forth
in the specific Award Agreement governing such Award.

Article 12.            Beneficiary Designation

Each Participant under
the Program may, from time to time, name any beneficiary or beneficiaries (who
may be named contingently or successively) to whom any benefit under the
Program is to be paid in case of his or her death before he or she receives any
or all of such benefit.  Each such
designation shall revoke all prior designations by the same Participant,
shall be in a form prescribed by the Company, and will be effective only when
filed by the Participant in writing with the Company during the Participant’s
lifetime.  In the absence of any such
designation, benefits remaining unpaid at the Participant’s death shall be paid
to the Participant’s estate.

 15
 

Article 13.            Deferrals

The Committee may permit
or require a Participant to defer such Participant’s receipt of the payment of
cash or the delivery of Shares that would otherwise be due to such Participant
by virtue of the exercise of an Option, or Stock Appreciation Right or under a
Restricted Stock Unit Award.  If any such
deferral election is required or permitted, the Committee shall, in its sole
discretion, establish rules and procedures for such payment deferrals.

Article 14.            Rights of Participants

14.1.                     Directorship.  Nothing in the
Program or any Award Agreement shall interfere with or limit in any way the
right of the Company to terminate at any time any Participant’s service to the
Company as a Nonemployee Director, nor confer upon any Participant any right to
continue in the service of the Company.

14.2.                     Participation.  No Nonemployee
Director shall have the right to be selected to receive an Award under this
Program, or, having been so selected, to be selected to receive a future Award.

Article 15.            Change in Control

Upon the occurrence of a Change in Control and
notwithstanding the terms of any Award Agreement, unless otherwise specifically
prohibited under applicable laws, or by the rules and regulations of any
governing governmental agencies or national securities exchanges:

(a)                                  Any
and all Options granted hereunder shall become immediately exercisable, and if
granted before November 13, 2002 shall remain exercisable throughout their entire
term; and any Option granted on or after November 13, 2002 shall terminate upon
the earlier of (i) the third anniversary of the Participant’s date of
termination of service or (ii) expiration of the Option term.

(b)                                 Any
restriction periods and restrictions imposed on Awards shall lapse.

Article 16.            Amendment, Modification, and
Termination

16.1.                     Amendment,
Modification, and Termination.  Subject to the terms of the Program including
Sections 16.2 and 16.3, the Board may at any time and from time to time,
alter, amend, suspend or terminate the Program in whole or in part.  However, stockholder approval shall be
required for any amendment of the Program that (a) materially increases the
number of Shares available for issuance under the Program (other than pursuant
to Article 5.4), (b) expands the type of awards available under the Program,
(c) materially 

 16
 

expands the class of participants eligible to receive
Awards under the Program, (d) materially extends the term of the Program, (e)
materially changes the method of determining the Option Price under the Program
or (f) deletes or limits any provision of the Program prohibiting the repricing
of Options.  The Committee may amend
Awards previously granted under the Program.

16.2.                     Adjustment
of Awards Upon the Occurrence of Certain Unusual or Nonrecurring Events.  The Committee may
make adjustments in the terms and conditions of, and the criteria included in,
Awards in recognition of unusual or nonrecurring events (including, without
limitation, the events described in Section 5.4 hereof) affecting the Company
or the financial statements of the Company or of changes in applicable laws,
regulations, or accounting principles, whenever the Committee determines that
such adjustments are appropriate in order to prevent dilution or enlargement of
the benefits or potential benefits intended to be made available under the
Program.

16.3.                     Awards
Previously Granted.  Notwithstanding any provision of the Program
or of any Award Agreement to the contrary (but subject to Section 6.10), no
termination, amendment, or modification of the Program or amendment of an Award
previously granted under the Program shall adversely affect in any
material way any Award previously granted under the Program, without the
express consent of the Participant holding such Award.

Article 17.            Compliance with Applicable Law and
Withholding

17.1.                     General.  The granting of
Awards and the issuance of Shares under the Program shall be subject to all
applicable laws, rules, and regulations, and to such approvals by any
governmental agencies or national securities exchanges as may be required.  Notwithstanding anything to the contrary in
the Program or any Award Agreement, the following shall apply:

(a)                                  The
Company shall have no obligation to issue any Shares under the Program if such
issuance would violate any applicable law or any applicable regulation or
requirement of any securities exchange or similar entity.

(b)                                 Prior
to the issuance of any Shares under the Program, the Company may require a
written statement that the recipient is acquiring the Shares for investment and
not for the purpose or with the intention of distributing the Shares and that
the recipient will not dispose of them in violation of the registration
requirements of the Securities Act of 1933.

(c)                                  With
respect to any Participant who is subject to Section 16(a) of the Exchange Act,
the Committee may, at any time, add such conditions 

 17
 

and
limitations to Award or payment under the Program or implement procedures for
the administration of the Program which it deems necessary or desirable to
comply with the requirements of Rule 16b-3 of the Exchange Act.

(d)                                 If,
at any time, the Company, determines that the listing, registration, or
qualification (or any updating of any such document) of any Award, or the
Shares issuable pursuant thereto, is necessary on any securities exchange or
under any federal or state securities or blue sky law, or that the consent or
approval of any governmental regulatory body is necessary or desirable as a
condition of, or in connection with, any Award, the issuance of Shares pursuant
to any Award, or the removal of any restrictions imposed on Shares subject to
an Award, such Award shall not be granted and the Shares shall not be issued or
such restrictions shall not be removed, as the case may be, in whole or in
part, unless such listing, registration, qualification, consent, or approval
shall have been effected or obtained free of any conditions not acceptable to
the Company.

17.2.                     Securities
Law Compliance.  Transactions under this Program are intended
to comply with all applicable conditions of Rule 16b-3 or its
successors under the 1934 Act. To the extent any provision of the Program or
action by the Committee or the Board fails to so comply, it shall be deemed
null and void, to the extent permitted by law and deemed advisable by the
Board.

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

17.4.                     Share
Withholding.  Awards payable in Shares may provide that
with respect to withholding required upon any taxable event arising thereunder,
Participants may elect to satisfy the withholding requirement, in whole or in
part, by having the Company withhold Shares to satisfy their withholding tax
obligations; provided that Participants may only elect to have Shares withheld
having a Fair Market Value on the date the tax is to be determined equal to or
less than the minimum withholding tax which could be imposed on the
transaction.  All elections shall be irrevocable,
made in writing, signed by the Participant, and shall be subject to any
restrictions or limitations, including prior Committee approval, that the
Committee, in its sole discretion, deems appropriate.

 18
 

Article 18.            Indemnification

Each person who is or
shall have been a member of the Committee, or of the Board, shall be
indemnified and held harmless by the Company against and from any loss, cost,
liability, or expense that may be imposed upon or reasonably incurred by him or
her in connection with or resulting from any claim, action, suit, or proceeding
to which he or she may be a party or in which he or she may be involved by
reason of any action taken or failure to act under the Program and against and
from any and all amounts paid by him or her in settlement thereof, with the
Company’s approval, or paid by him or her in satisfaction of any judgment in
any such action, suit, or proceeding against him or her, provided he or she
shall give the Company an opportunity, at its own expense, to handle and defend
the same before he or she undertakes to handle and defend it on his or her
own behalf.  The foregoing right of
indemnification shall not be exclusive of any other rights of indemnification
to which such persons may be entitled under the Company’s Certificate of
Incorporation or Bylaws, as a matter of law, or otherwise, or any power that
the Company may have to indemnify them or hold them harmless.

Article 19.            Successors

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

Article 20.            Legal Construction

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

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

20.3.                     Governing
Law.  To the extent not preempted by federal law,
the Program, and all Award or other agreements hereunder, shall be construed in
accordance with and governed by the laws of the state of Delaware without
giving effect to principles of conflicts of laws.

 19Exhibit 10.1

SEPARATION,
NON-COMPETE, NON-SOLICITATION, AND

NON-DISCLOSURE AGREEMENT AND GENERAL RELEASE

May 10, 2007,

Dear Anthony,

This Letter Agreement (the “Agreement”), reflects
our mutual understanding with respect to your separation from Transactions
Systems Architects, Inc. (the “Company”, and together with its subsidiaries and
their affiliates, “TSA”) and sets forth the payments and benefits that you will
be eligible to receive under this Agreement, subject to the terms and
conditions set forth herein.

1.             Your employment with TSA will
terminate effective July 31, 2007 (the “Termination Date”).  Effective as
of the Termination Date, you will cease to be an employee of TSA and you will
have no authority to take any action on behalf of or otherwise bind TSA.  You also agree to take all actions necessary
to resign from any directorship you may hold with TSA.

2.             Until the close of business on the
Termination Date, you will continue to receive (a) salary payments at your
current annual base salary rate of $250,000 (less applicable withholdings and
deductions), paid in accordance with TSA’s payroll practices in the ordinary
course and (b) the benefits commensurate with the level and type of benefits
you currently receive.

3.             In consideration for you entering
into this Agreement, including, you agreeing to comply with the covenants set
forth in Section 5 and executing the attached General Release (which is
incorporated herein), (a) TSA will pay you (i) within 30 days following the
Effective Date (as defined in the General Release), a lump sum cash payment in
amount equal to $450,000, and (ii) a lump-sum cash payment in an amount equal
to $500,000 on July 31, 2008 (collectively, the “Additional Payments”), less
applicable withholdings and deductions. 
In addition to the Additional Payments, (a) you will be eligible to
receive, in full satisfaction of Company’s obligation to you under the
Management Incentive Compensation Plan (the “MIC”), an amount equal to the MIC
bonus you would have received on the date of payment for the period from April
1, 2007 to June 30, 2007, such amount to be calculated in a manner similar to
the amount calculated under the MIC for other employees (without regard to any
subsequent adjustments under the MIC) and will be paid to you on or about
August 15, 2007, (b) if you timely elect COBRA continuation coverage, the
Company will pay that portion of your COBRA premium which exceeds the premium
you were required to pay for such health plan coverage while an active
employee, as in effect immediately prior to the Termination Date for a period
of 18 months following the Termination Date and (c) you will be eligible, at no
cost to you, for outplacement services through Lee Hecht Harrison for a period
of up to sixty (60) days following the Termination Date.

4.             This
Agreement sets forth the entire agreement and understanding relating to your
employment relationship with and termination from TSA, and supersedes all prior
discussions, negotiations, and agreements concerning your employment with TSA
and separation therefrom, including but not limited to, Stock and Warrant
Holders’ Agreement among ACI Holding, Inc and the several stock and warrant
holders named in appendix I thereto, dated December 30, 1993 and the Severance
Agreement between you and the Company, dated July 31, 1999, as amended;
provided that the provisions of the Applied Communication, Inc. Employee
Invention and Confidential Information Agreement previously executed by you
shall remain in full force and effect to the extent the provisions contained
therein are not inconsistent with the provisions contained in this Agreement.

5.             In consideration of the payments
and benefits described in Section 3 above, you hereby:

(a)           Agree to execute the General Release,
and

(b)           covenant and agree that for a period
of twenty-four (24) months from the Termination Date (the “Non-Compete Period”),
you will not, directly or indirectly, individually or on behalf of any other
person or entity do or suffer any of the following:

(i)           engage or have an economic interest
in (whether as owner, shareholder, 
investor, partner, lender, consultant, employee, agent, director or
otherwise) any business which the Company is engaged or has reasonably firm
plans to engage in during twenty-four (24) months prior to the Termination Date
(the “Competing Business”) (including any successor in interest which has
acquired the Competing Business within the Non-Compete Period); provided,
however, that nothing in this subparagraph will be deemed to prohibit the
acquisition or holding of not more than 5% of the shares or other securities of
a publicly traded entity;

(ii)          undertake a position with any person
or entity which is or had been a client or customer of TSA during the 24 months
preceding the Termination Date (a “Company Client”);

(iii)         solicit any business pertaining to the
Company Business or request, induce, or advise any Company Client to withdraw,
curtail, or cancel such Company Business with TSA; or knowingly accept any
business pertaining to the Company Business from any Company Client; or

(iv)         solicit any individual who is or has
been within twenty-four (24) months prior to the date of such solicitation, an
employee, representative or agent of TSA (“Employee”) to leave his employment
to accept employment with any Competing Business.  For purposes of this Section 5(b), the term “solicit”
includes, but is not limited to, (A) initiating communications with an Employee
relating to possible employment and (B) offering bonuses or additional
compensation to encourage an Employee to terminate his or her employment; or
hiring, engaging, or retaining (or arranging to have any other person do so)
any Employee to work for any Company Client or Competing Business.

(c)          You agree
not to disclose, at any time, to any person not employed by TSA, or not engaged
to render services to TSA, except with the prior written consent of an officer
authorized to act in the matter by TSA’s Board of Directors (the “Board”), any
confidential information of 

 2
 

TSA
obtained by you while in the employ of TSA, including, without limitation,
information relating to the finances, strategy, organization, operations,
inventions, processes, formulae, plans, devices, compilations of information,
methods of distribution, customers, supplies, client relationships, marketing
strategies or trade secrets of TSA; provided, however, that this provision
shall not preclude you from use or disclosure of information known generally to
the public or of information not considered confidential by persons engaged in
the business conducted by TSA or from disclosure required by law or court order
if, in the case of such required disclosure, you have given TSA reasonable
prior notice in order to permit TSA to take steps to protect the information
from public disclosure.  You agree that your
agreement in this Section 5(c) shall be in addition to, and not in limitation
or derogation of, any obligations otherwise imposed by law upon you in respect
of confidential information and trade secrets of TSA.

(d)           You agree that you will not take with
you, without the prior written consent of an officer authorized to act in the
matter by the Board, and will surrender to TSA prior to the Termination Date,
any record, list, drawing, blueprint, specification or other document or
property of TSA, together with any copy and reproduction thereof, mechanical or
otherwise, which is of a confidential nature relating to TSA, including without
limitation, relating to its finances, strategy, organization, operations,
inventions, processes, formulae, plans, devices, compilations of information,
methods of distribution, customers, suppliers, client relationships, marketing
strategies or trade secrets, which was obtained by you or entrusted to you
during the course of your employment with TSA.

(e)           You agree that you shall not at any
time, directly or indirectly, make or cause to be made any statement or
criticism which is adverse to the interests of TSA or their clients or
customers; nor will you take any action that may reasonably cause TSA or its
clients or customers significant embarrassment, humiliation, or otherwise cause
or contribute to TSA or their clients or customers being held in disrepute by
the public or TSA’s clients, customers, or employees, except as required by
law.

(f)            You agree to cooperate fully with TSA’s
counsel in connection with any present and future actual or threatened
litigation or administrative proceeding involving TSA that relates to events,
occurrences or conduct occurring (or claimed to have occurred) during the
period of your employment with TSA.  You
agree that this cooperation by you will include, but not be limited to: (i)
making yourself reasonably available for interviews and discussions with TSA’s
counsel as well as for depositions and trial testimony; (ii) if depositions or
trial testimony are to occur, making yourself reasonably available and
cooperating in the preparation therefor as and to the extent that TSA or TSA’s
counsel reasonably requests; (iii) refraining from impeding in any way TSA’s
prosecution or defense of such litigation or administrative proceeding; and
(iv) cooperating fully in the development and presentation of TSA’s prosecution
or defense of such litigation or administrative proceeding.  TSA acknowledges that your availability shall
be subject to your business and personal schedule; provided, however, that you
agree that you shall not unreasonably withhold your  availability for such cooperation,
consultation and advice.  TSA further agrees
that it will reimburse you for your reasonable expenses incurred while giving
such cooperation.

(g)           The parties agree and acknowledge
that if any provision of this Agreement or the application of any provision
hereof to any person or circumstances is held invalid, unenforceable 

 3
 

or otherwise
illegal, the remainder of this Agreement and the application of such provision
to any other person or circumstances will not be affected, and the provision so
held to be invalid, unenforceable or otherwise illegal will be reformed to the
extent (and only to the extent) necessary to make it enforceable, valid or
legal.  To the extent any provisions held
to be invalid, unenforceable or otherwise illegal cannot be reformed, such
provisions are to be stricken herefrom and the remainder of this Agreement will
be binding on the parties and their successors and assigns as if such invalid
or illegal provisions were never included in this Agreement from the first
instance.

(h)           The parties further acknowledge and
agree that the covenants contained in this Section 5 are reasonable under the
circumstances, and further agree that if in the opinion of any court of
competent jurisdiction any such covenant is not reasonable in any respect, such
court will have the right, power and authority to sever or modify any provision
or provisions of such covenants as to the court will appear not reasonable and
to enforce the remainder of the covenants as so amended.  You acknowledge and agree that the remedy at
law available to TSA for breach of any of your 
obligations under Section 5 would be inadequate and that damages flowing
from such a breach may not readily be susceptible to being measured in monetary
terms.  Accordingly, you acknowledge,
consent and agree that, in addition to any other rights or remedies that TSA
may have at law, in equity or under this Agreement, TSA will be entitled to
immediate injunctive relief and may obtain a temporary order restraining any
threatened or further breach, without the necessity of proof of actual
damage.  Without limiting the
applicability of this Section 5(h) or in any way affecting the right of TSA to
seek equitable remedies and damages hereunder, you agree that in the event you
breach any of the provisions of Section 5 or engage in any activity that would
constitute a breach under Section 5, but the provisions of Section 5 cannot be
enforced as determined by a court of competent jurisdiction as a matter of law,
then TSA’s obligation to pay any sums not yet paid to you pursuant to
Section 3 above shall be terminated and you shall owe and return all sums
paid under Section 3 above.

6.                       (a)                 You and TSA agree, that this
Agreement is performable in whole or in part in the State of Illinois and is
executed in whole or in part in the State of Illinois.  It shall be governed by and construed and
interpreted in accordance with the laws of the State of Illinois (without
regard to principles of conflicts of laws), and all questions relating to the
validity and performance hereof and remedies hereunder shall be determined in
accordance with such law.  Except as
provided for in Section 6(b), the parties consent to the exclusive jurisdiction
of the state and federal courts within Cook County, Illinois for the
enforcement, interpretation or resolution of any matter relating to this
Agreement, and you expressly waive any objection to personal jurisdiction and
venue within Cook County, Illinois.

          (b)                 You and TSA agree that any
dispute, claim or controversy arising out of or relating to this Agreement,
including without limitation any dispute, claim or controversy concerning
validity, enforceability, breach or termination hereof, shall be finally
settled through arbitration by a single arbitrator selected under the rules of
the American Arbitration Association for arbitration of employment disputes
conducted in Cook County, Illinois.  The
parties agree that:  each party will be
entitled to present evidence and argument to the arbitrator; the arbitrator
will have the right only to interpret and apply the provisions of this
Agreement and may not change any of its provisions, except as expressly provided
in Section 5(g); and the arbitrator will 

 4
 

permit
reasonable pre-hearing discovery of facts, to the extent necessary to establish
a claim or a defense to a claim, subject to supervision by the arbitrator.  In addition, the parties agree that TSA shall
propose a reasonable set of rules to guide any proceedings under this Section
6.  Such rules shall be designed to lead
to a prompt and just result without undue delay or expense, but will not be
unduly prejudicial to either party.  If
you agree to such proposed rules and guidelines, TSA will reimburse you for
reasonable out-of-pocket costs incurred for travel to and from Cook County,
Illinois and hotel and related expenses incurred in Cook County, Illinois in
connection with such arbitration.  The
parties agree that the determination of the arbitrator will be conclusive and
binding upon the parties and judgment upon the same may be entered in any court
having jurisdiction thereof.  The
arbitrator will give written notice to the parties stating the arbitrator’s
determination, and will furnish to each party a signed copy of such
determination.  The parties agree that
the expenses of arbitration will be borne equally by you and TSA or as the
arbitrator equitably determines consistent with the federal law; provided,
however, that your share of such expenses will not exceed the maximum permitted
by law.  The parties agree that any
arbitration or action pursuant to this Section 6 will be governed by and
construed in accordance with the substantive laws of the State of Illinois and,
where applicable, federal law, without giving effect to the principles of
conflict of laws of such State.

(c)           Notwithstanding Section 6(b), you
agree and acknowledge that, TSA will not be required to seek or participate in
arbitration regarding any actual or threatened breach of your covenants in
Section 5 but may pursue its remedies, including injunctive relief, for such
breach in a court of competent jurisdiction in Cook County, Illinois, or in the
sole discretion of TSA, in a court of competent jurisdiction where you have
committed or is threatening to commit a breach of your covenants, and no
arbitrator may make any ruling inconsistent with the findings or rulings of
such court.

7.                       The parties agree that
this Agreement will be administered in accordance with Section 409A of the
Internal Revenue Code of 1986, as amended, and the rules and regulations
promulgated thereunder (the “Code”). The parties agree that this Agreement will
be amended as may be necessary to fully comply with Section 409A of the Code
and any Treasury pronouncements relating thereto in order to preserve the
payments and benefits provided hereunder to the extent possible without
additional cost to the Company.

	
  

  	
   

  	
   

  	
   

  
	
   

  	
  /s/ Anthony J. Parkinson

  	
   

  	
   

  
	
   

  	
  Anthony J. Parkinson

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Transaction Systems
  Architects, Inc.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Dave Morem

  	
   

  
	
   

  	
   

  	
  Dave Morem

  	
   

  
	
   

  	
   

  	
  Chief Administrative
  Officer

  	
   

  
	
   

  	
   

  	
  TSA - Transaction Systems Architects, Inc.

  	
   

  
					

 

 5
 

GENERAL RELEASE

In exchange for the payments and benefits set forth in the letter
agreement between Transactions Systems
Architects, Inc. (the “Company”)
and me dated May 10, 2007 (the “Letter Agreement”), and to be provided
following the Effective Date of this General Release (as defined below) and
subject to the terms of the Letter Agreement, and my execution and delivery of
this General Release after the Termination Date (as defined in the Letter
Agreement):

1.
            (a)           On behalf of myself, my agents, assignees, attorneys,
heirs, executors, and administrators, I hereby release the Company and its
predecessors, successors and assigns, its and their current and former parents,
affiliates, subsidiaries, divisions and joint ventures including but not
limited to (individually and collectively, “TSA”); and all of their current and
former officers, directors, employees, and agents, in their capacity as TSA
representatives (individually and collectively, “Releasees”) from any and all
controversies, claims, demands, promises, actions, suits, grievances,
proceedings, complaints, charges, liabilities, damages, debts, taxes,
allowances, and remedies of any type, including but not limited to those
arising out of my employment with the Company (individually and collectively, “Claims”)
that I may have by reason of any matter, cause, act, or omission. This release
applies to Claims that I know about and those I may not know about occurring at
any time on or before the date of execution of this General Release.

(b)
          This General Release includes a
release of all rights and Claims under, as amended, Title VII of the Civil
Rights Act of 1964, the Age Discrimination in Employment Act of 1967, the
Rehabilitation Act of 1973, the Civil Rights Acts of 1866 and 1991, the
Americans with Disabilities Act of 1990, the Employee Retirement Income Security
Act of 1974, the Equal Pay Act of 1963, the Family and Medical Leave Act of
1993, the Fair Labor Standards Act of 1938, the Older Workers Benefit
Protection Act of 1990, the Occupational Safety and Health Act of 1970, the
Worker Adjustment and Retraining Notification Act of 1989, the Sarbanes-Oxley
Act of 2002, Illinois Human Rights Act, and the Illinois Wage Payment and
Collection Law, as well as any other federal, state, or local statute,
regulation, or common law regarding employment, employment discrimination,
termination, retaliation, equal opportunity, or wage and hour. I specifically
understand that I am releasing Claims based on age, race, color, sex, sexual
orientation or preference, marital status, religion, national origin,
citizenship, veteran status, disability, and other legally protected
categories.

(c)           This General Release also includes a
release of any Claims for breach of contract, any tortious act or other civil
wrong, attorneys’ fees, and all compensation and benefit claims including
without limitation Claims concerning salary, bonus, severance and any award(s),
grant(s), or purchase(s) under any equity and incentive compensation plan or
program or the Stock and Warrant Holders’ Agreement among ACI Holding, Inc and
the several stock and warrant holders named in appendix I thereto, dated
December 30, 1993 and the Severance Agreement between you and the Company,
dated July 31, 1999, as amended.

(d)           In addition, I am waiving my right to
pursue any Claims against the Company and Releasees under any applicable
dispute resolution procedure, including any arbitration policy.

 6
 

I
acknowledge that this General Release is intended to include, without
limitation, all Claims known or unknown that I have or may have against the
Company and Releasees through the Effective Date of this General Release.
Notwithstanding anything herein, I expressly reserve and do not release
pursuant to this General Release (and the definition of “Claims” will not
include) (i) my rights with respect to the enforcement of the Letter Agreement,
including the right to receive the payments and benefits specified in the
Letter Agreement; (ii) my rights to the vested benefits I may have, if any,
under any Company employee benefit plans and programs to the extent preserved
pursuant to this Agreement; (iii) any claim arising after the Effective Date of
this General Release; (iv) any right to indemnification pursuant to the By Laws
to the same extent provided to other senior executives of the Company; and (v)
any claims that cannot be waived under law, including the right to file a
charge with or participate in an investigation conducted by the Equal
Employment Opportunity Commission (“EEOC”), provided that I am waiving my right
to any monetary recovery or other relief should the EEOC or any other agency
pursue claims on my behalf.

2.             I acknowledge that I have up to 21
days from the date of delivery of the Letter Agreement to consider the terms of
the Letter Agreement and this General Release, that I have been advised to
consult with an attorney regarding the terms of this General Release prior to
executing it, that I fully understand all of the terms and conditions of this
General Release, that I understand that nothing contained herein contains a
waiver of claims arising after the date of execution of this General Release,
and I am entering into this General Release knowingly, voluntarily and of my
own free will. I further understand that my failure to sign this General
Release and return such signed General Release to Les Real Vice President Human
Resources, ACI World Wide by 5:00 pm on the 22nd day after the Termination Date
will render me ineligible for the payments and benefits described herein and in
the Letter Agreement.

3.             I understand that once I sign and
return this General Release to Les Real, I have 7 days to revoke it. I may do
so by delivering to Les Real a written notice of my revocation within the 7-day
revocation period (the “Revocation Period”). This General Release will become
effective on the 8th day after I sign and return it to Les Real (“Effective
Date”); provided that I have not revoked it during the Revocation Period.

YOU ARE
HEREBY ADVISED BY THE COMPANY TO CONSULT WITH AN ATTORNEY BEFORE SIGNING THIS
GENERAL RELEASE.

I HAVE READ THIS GENERAL RELEASE AND UNDERSTAND ALL OF ITS TERMS. I
SIGN AND ENTER THIS GENERAL RELEASE KNOWINGLY AND VOLUNTARILY, WITH FULL
KNOWLEDGE OF WHAT IT MEANS.

	
  /s/  Anthony J. Parkinson

  	
   

  	
   

  
	
  Anthony J. Parkinson

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signed before me

  	
   

  	
   

  
	
  This 11th day
  of May, 2007.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Notary Public

  	
   

  	
   

  

 

 7

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