S1 CORPORATION 1997 EMPLOYEE STOCK OPTION PLAN NON QUALIFIED OPTION AGREEMENT (Standard Employee Agreement)
Exhibit (d)(15)
S1 CORPORATION
1997 EMPLOYEE STOCK OPTION PLAN
NON QUALIFIED OPTION AGREEMENT
(Standard Employee Agreement)
1997 EMPLOYEE STOCK OPTION PLAN
NON QUALIFIED OPTION AGREEMENT
(Standard Employee Agreement)
THIS STOCK OPTION AGREEMENT (the “Option Agreement”) is made this ___by and between
S1 CORPORATION (“S1C”), ___, an employee of S1C or of a subsidiary of S1C (the
“Optionee”).
WHEREAS, the Board of Directors of S1C has duly adopted the S1 Corporation 1997 Employee
Stock Option Plan, formerly the Security First Network Bank 1997 Employee Stock Option Plan (the
“Plan”), which authorizes S1C to grant to eligible individuals options for the purchase of shares
of S1C’s Common Stock, par value $.01 (the “Stock”); and
WHEREAS, S1C has determined that it is desirable and in its best interests to grant to the
Optionee, pursuant to the Plan, an option to purchase a certain number of shares of Stock in order
to provide the Optionee with an incentive to advance the interests of S1C, all according to the
terms and conditions set forth herein;
NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein,
the parties hereto do hereby agree as follows:
1. Grant of Option. Subject to the terms of the Plan (attached hereto as Exhibit A,
the terms of which are incorporated by reference herein), S1C hereby grants to the Optionee the
right and option (the “Option”) to purchase from S1C, on the terms and subject to the conditions
hereinafter set forth, ___shares of Stock. The Option shall not constitute an “incentive stock
option” within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the
“Code”). The date of grant of ___(the “Grant Date”).
2. Price. The purchase price (the “Option Price”) for the shares of Stock subject to
the Option granted by this Option Agreement is ___which price is 100% of the fair
market value of the stock, as quoted on ___NASDAQ.
3. Exercise of Option. Except as otherwise provided herein, the Option granted
pursuant to this Option Agreement shall be subject to exercise as follows:
A. Exercise of Option. The Optionee may exercise the Option (to the extent permitted
under Subsection B below and subject to the limitations on exercise set forth in Subsection F
below), in whole or in part, at any time and from time to time, after the Grant Date and before
termination of the Option; provided, that no single exercise of the Option shall be for less than
100 shares, unless the number of shares purchased is the total number at the time available for
purchase under this Option. Except as otherwise provided in the Plan, during the lifetime of the
Optionee, only the Optionee (or, in the event of the Optionee’s legal incapacity or incompetence,
the Optionee’s guardian or legal representative) may exercise the Option.
B. Limitations on Exercise of Option. The Optionee may exercise the right to purchase
25 percent of the shares of Stock subject to the Option on or after the first anniversary of
___(the “Vesting Date”), if the Optionee has been employed continuously from the Grant Date
to such date by S1C, any “parent corporation” thereof within the meaning of Section 424(e) of the
Code (a “Parent”), any “subsidiary corporation” within the meaning of Section 424(1) of the Code of
S1C or any such Parent (a “Subsidiary”) or any other “subsidiary corporation” (within the meaning
of such Subsection) of any such parent corporation. Thereafter, so long as such continuous
employment has not been interrupted, the Optionee may purchase an additional 25 percent of the
shares of Stock subject to the Option on or after each of the next three anniversaries of the
Vesting Date. The foregoing installments shall accumulate and may be exercised at any time before
termination of the Option. In no event may the Option be exercised, in whole or in part, after 10
years following the Grant Date, or after the occurrence of an event referred to in Subsection E of
this Section that results in termination of the Option. In no event may the Option be exercised for
a fractional share.
C. Termination of Employment — In General. The Optionee may exercise the Option
only while the Optionee is employed by S1C or a Parent or Subsidiary or for 12 months
thereafter, after which the Option shall terminate, except as provided in Subsection E of this
Section. Upon the Optionee’s termination of employment, the Optionee may (subject to the
limitations on exercise set forth in Subsection F below) exercise all or any part of the Option,
to the extent that the Option had become vested and exercisable under Section 3.B. hereof
immediately before such termination, at any time within 12 months after termination of
employment and prior to the termination of the Option as set forth in subsection E of this
Section.
D. Death. In the event of the Optionee’s death while employed by the S1C or a Parent
or Subsidiary and after having completed at least two years continuous service with S I C or a
Parent or Subsidiary, the Option shall be exercisable whether or not it had become exercisable
immediately before the Optionee’s death under Section 3.B. hereof and, in such event, the personal
representative or legatees or distributees of the Optionee’s estate, as the case may be, shall have
the right (subject to the limitations on exercise set forth in Subsection F below) to exercise all
or part of the Option within one year after the date of the
Optionee’s death and prior to
the termination of the Option as set forth in Subsection E of this Section. In the event of the
Optionee’s death during the period following the termination of employment with S1C or a Parent or
Subsidiary in which the Option was exercisable pursuant to Subsection C of this Section, or in the
event of the Optionee’s death while employed by S1C or a Parent or Subsidiary and before having
completed at least two years continuous service with S1C or a Parent or Subsidiary, the Option
shall be exercisable to the extent it had become exercisable immediately before the Optionee’s
death under Section 3.B. hereof and, in such event, the personal representative or legatees or
distributees of the Optionee’s estate, as the case may be, shall have the right (subject to the
limitations on exercise set forth in Subsection F below) to exercise the Option, to such extent,
within one year after the Optionee’s last day of employment and prior to the termination of the
Option as set forth in Subsection E of this Section.
E. Termination of Option. The Option shall terminate upon the earlier of (i) the
expiration of a period of 10 years from the Grant Date; or (ii) 12 months after the Optionee’s
termination of employment with S1C or a Parent or Subsidiary. Continuation of the term of the
Option after termination of employment shall not result in any additional vesting of the Option.
F. Limitations on Exercise of Option. Notwithstanding the foregoing Subsections of
this Section, in no event may the Option be exercised, in whole or in part, after 10 years
following the Grant Date, or after the occurrence of an event referred to in Section 7 below that
results in termination of the Option. In no event may the Option be exercised for a fractional
share.
4. Method of Exercise of Option. Subject to the terms and conditions of this Option
Agreement, the Option may be exercised by delivering written notice of exercise to S1C, at
its principal office, addressed to the attention of the Stock Option Committee of the Board
of Directors of S1C, which notice shall specify the number of shares for which the Option is
being exercised, and except as provided herein, shall be accompanied by payment in full of
the Option Price of the shares for which the Option is being exercised. Payment of the
Option Price for the shares of Stock purchased pursuant to the exercise of an Option shall
be made (i) in cash or in cash equivalents; (ii) through the tender to the Company of shares
of Stock that have been held by the Optionee for at least six months, which shares shall be
valued, for purposes of determining the extent to which the Option Price has been paid
thereby, at their fair market value (determined in the manner described in Section 9 above)
on the date of exercise; (iii) by delivering a written direction to the Company that the
Option be exercised pursuant to a “cashless” exercise/sale procedure (pursuant to which
funds to pay for exercise of the option are delivered to the Company by a broker upon
receipt of stock certificates from the Company) or a cashless exercise/loan procedure
(pursuant to which the optionees would obtain a margin loan from a broker to fund the
exercise) through a licensed broker acceptable to the Company whereby the stock certificate
or certificates for the shares of Stock for which the Option is exercised will be delivered
to such broker as the agent for the individual exercising the Option and the broker will
deliver to the Company cash (or cash equivalents acceptable to the Company) equal to the
Option Price for the shares of Stock purchased pursuant to the exercise of the Option plus
the amount (if any) of federal and other taxes that the Company, may, in its judgment, be
required to withhold with respect to the exercise of the Option; or (iv) by a combination of
the methods described in (i), (ii), and (iii); provided, however, that the
Board may in its discretion impose and set forth in the Option Agreement such limitations or
prohibitions on the use of shares of Stock to exercise Options as it deems appropriate.
Option Price need not accompany the written notice of exercise provided the notice of
exercise directs that the Stock certificate or certificates for the shares for which the
Option is exercised be delivered to a licensed broker acceptable to S1C as the agent for the
Optionee and, at the time such Stock certificate or certificates are delivered, the broker
tenders to S1C cash (or cash equivalents acceptable to S1C) equal to the Option Price for
the shares of Stock purchased pursuant to the exercise of the Option plus the amount (if
any) of federal and/or other taxes which S1C may, in its judgment, be required to withhold
with respect to the exercise of the Option.
If the person exercising the Option is not the Optionee, such person shall also deliver with
the notice of exercise appropriate proof of his or her right to exercise the Option. An
attempt to exercise the Option granted hereunder other than as set forth above shall be
invalid and of no force and effort. Promptly after exercise of the Option as provided for
above, S1C shall deliver to the person exercising the Option a certificate or certificates
for the shares of Stock being purchased. If (a) the Option is exercised prior to the date
that is six months from the Grant Date and (b) the individual exercising the Option is a
reporting person under Section 16(a) of the Securities Exchange Act of 1934, as amended,
then such certificate or certificates shall bear a legend restricting the transfer of the
Stock covered thereby until the expiration of six months from the Grant Date.
5. Limitations_on Transfer. Except as otherwise provided in the Plan,
the Option is not transferable by the Optionee, other than by will or the laws of descent
and distribution in the event of death of the Optionee. Any transferee shall be bound by
the terms of this Agreement and, except as may otherwise be required by the context,
references to the Optionee herein shall be deemed to be references to the transferee,
provided that references to the death or termination of employment of the Optionee shall
refer only to the original Optionee named herein.
6. Rights as Shareholder. Neither the Optionee nor any executor, administrator,
distributee, or legatee of the Optionee’s estate shall be, or have any of the rights or
privileges of, a shareholder of S1C in respect of any shares of Stock transferable hereunder
unless and until such shares have been fully paid and certificates representing such shares
have been endorsed, transferred, and delivered, and the name of the Optionee (or of such
personal representative, administrator, distributee, or legatee of the Optionee’s estate)
has been entered as the shareholder of record on the books of the Bank.
7. Effect of Changes in Capitalization.
A. Changes in Stock. If the outstanding shares of Stock are increased or
decreased or changed into or exchanged for a different number or kind of shares or other
securities of S1C by reason of any recapitalization, reclassification, stock split-up,
combination of shares, exchange of shares, stock dividend, or other distribution payable in
capital stock, or other increase or decrease in such shares effected without receipt of
consideration by S1C occurring after the date the Option is granted, a proportionate and
appropriate adjustment shall be made by S1C in the number and kind of shares subject to the
Option, so that the proportionate interest of the Optionee immediately following such event
shall, to the extent practicable, be the same as immediately prior to such event. Any such
adjustment in the Option shall not change the total Option Price with respect to shares
subject to the unexercised portion of the Option but shall include a corresponding
proportionate adjustment in the Option Price per share. If there is a distribution payable
in the capital stock of a subsidiary corporation of S1C (“Spin off Shares”), to the extent
consistent with Treasury Regulation Section 1.425-I(a)(6) or the corresponding provision of
any subsequent regulation, the Option shall thereafter additionally pertain to the
number of Spin-off Shares that would have been received in such distribution by a
shareholder of S1C who owned a number of shares of Common Stock equal to the number of
shares that are subject to the Option at the time of such distribution, and the aggregate
Option Price of the Option shall be allocated between the Spin-off Shares and the Common
Stock in proportion to the relative fair market values of a Spin-off Share and a share of
Common Stock immediately after the distribution of Spin-off Shares.
B. Reorganization in Which S1C is the Surviving Corporation. Subject to
Subsection C of this Section, if S1C shall be the surviving corporation in any
reorganization, merger, or consolidation of S1C with one or more other corporations, the
Option shall pertain to and apply to the securities to which a holder of the number of
shares of Stock subject to the Option would have been entitled immediately following such
reorganization, merger, or consolidation, with a corresponding proportionate adjustment of
the Option Price per share so that the aggregate Option Price thereafter shall be the same
as the aggregate Option Price of the shares remaining subject to the Option immediately
prior to such reorganization, merger, or consolidation.
C. Reorganization in Which S1C Is Not the Surviving Corporation or Sale of
Assets or Stock. Upon the consolidation or liquidation of S1C, or upon a merger,
consolidation, or reorganization of S1C with one or more other corporations in which S1C is
not the surviving corporation, or upon a sale of all or substantially all of the assets of
S1C to another corporation, or upon any transaction (including, without limitation, a
merger or reorganization in which S1C is the surviving corporation) approved by the Board
of Directors of S1C that results in any person or entity owning 80 percent or more of the
combined voting power of all classes of stock of S1C, the Option hereunder shall terminate,
except to the extent provision is made in connection with such transaction for the
continuation and/or the assumption of the Option, or for the substitution for the Option of
new options covering the stock of a successor employer corporation, or a parent or
subsidiary thereof, with appropriate adjustments as to the number and kinds of shares and
exercise prices, in which event the Option shall continue in the manner and under the terms
so provided. In the event of any such termination of the Option, the Optionee shall have
the right (subject to the limitations on exercise set forth in Subsection F of Section 3
above), for 30 days immediately prior to the occurrence of such termination, to exercise
the Option in whole or in part, whether or not the Optionee was otherwise entitled to
exercise such Option at the time such termination occurs. S1C shall send written notice of
an event that will result in such a termination to the Optionee not later than the time at
which S1C gives notice thereof to its shareholders.
D. Adjustments. Adjustments specified in this Section relating to stock or
securities of S1C shall be made by the Board of Directors of S1C or the Stock Option
Committee, whose determination in that respect shall be final, binding, and conclusive. No
fractional shares of Stock or units of other securities shall be issued pursuant to any
such adjustment, and any fractions resulting from any such adjustment shall be eliminated
in each case by rounding downward to the nearest whole share or unit.
8. General Restrictions. S1C shall not be required to sell or issue any
shares of Stock under the Option if the sale or issuance of such shares would constitute
a
violation by the individual exercising the Option or by S1C of any provision of any law or
regulation of any governmental authority, including without limitation any federal or state
securities laws or regulations. If at any time S1C shall determine, in its discretion, that the
listing, registration, or qualification of any shares subject to the Option upon any securities
exchange or under any state or federal law, or the consent or approval of any government regulatory
body, is necessary or desirable as a condition of, or in connection with, the issuance or purchase
of shares hereunder, the Option may not be exercised 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 S1C, and any delay caused thereby shall in no way affect the date of
termination of the Option. Specifically, in connection with the Securities Act of 1933 (as now in
effect or as hereafter amended), unless a registration statement under such Act is in effect with
respect to the shares of Stock covered by the Option, S1C shall not be required to sell or issue
such shares unless S1C has received evidence satisfactory to it that the holder of the Option may
acquire such shares pursuant to an exemption from registration under such Act. Any determination in
this connection by S1C shall be final, binding, and conclusive. S1C may, but shall in no event be
obligated to, register any securities covered hereby pursuant to the Securities Act of 1933 (as now
in effect or as hereafter amended). S1C shall not be obligated to take any affirmative action in
order to cause the exercise of the Option or the issuance of shares pursuant thereto to comply with
any law or regulation of any governmental authority. As to any jurisdiction that expressly imposes
the requirement that the Option shall not be exercisable unless and until the shares of Stock
covered by the Option are registered or are subject to an available exemption from registration,
the exercise of the Option (under circumstances in which the laws of such jurisdiction apply) shall
be deemed conditioned upon the effectiveness of such registration or the availability of such an
exemption. The Option shall not be exercisable unless the Optionee shall have received all required
regulatory approvals with respect to ownership of the Stock to be issued upon such exercise.
9. Withholding of Taxes. The parties hereto recognize that S1C or a Parent or
Subsidiary may be obligated to withhold federal and local income taxes and Social Security taxes to
the extent that the Optionee realizes ordinary income in connection with the exercise of the
Option. The Optionee agrees that S1C or a Parent or Subsidiary may withhold amounts needed to cover
such taxes from payments otherwise due and owing to the Optionee, and also agrees that upon demand
the Optionee will promptly pay to S1C or a Parent or Subsidiary having such obligation any
additional amounts as may be necessary to satisfy such withholding tax obligation. Such payment
shall be made in cash or cash equivalent.
10. Disclaimer of Rights. No provision in this Option Agreement shall be construed to
confer upon the Optionee the right to be employed by S1C or any Parent or Subsidiary, or to
interfere in any way with the right and authority of S1C or any Parent or Subsidiary either to
increase or decrease the compensation of the Optionee at any time, or to terminate any employment
or other relationship between the Optionee and S1C or any Parent or Subsidiary.
11. Interpretation of this Option Agreement. All decisions and interpretations made by
the Stock Option Committee or the Board of Directors of S1C with regard to any question arising
under the Plan or this Option Agreement shall be binding and conclusive on S1C and the Optionee and
any other person entitled to exercise the Option as provided for herein. In the event that there is
any inconsistency between the provisions of this Option Agreement and of the Plan, the provisions
of the Plan shall govern.
12. Governing Law. This Option Agreement is executed pursuant to and shall be governed
by the laws of the State of Delaware (but not including the choice of law rules thereof).
13. Binding Effect. Subject to all restrictions provided for in this Option
Agreement and by applicable law relating to assignment and transfer of this Option Agreement and
the Option provided for herein, this Option Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective heirs, executors, administrators, successors,
and assigns.
14. Notice. Any notice hereunder by the Optionee to S1C shall be in writing and
shall be deemed duly given if mailed or delivered to S1C at its principal office, addressed to
the attention of the corporate secretary, or if so mailed or delivered to such other address as
S1C may hereafter designate by notice to the Optionee. Any notice hereunder by S1C to the
Optionee shall be in writing and shall be deemed duly given if mailed or delivered to the
Optionee at the address specified below by the Optionee for such purpose, or if so mailed or
delivered to such other address as the Optionee may hereafter designate by written notice given
to S1C.
15. Entire Agreement. This Option Agreement constitutes the entire agreement and
supersedes all prior understandings and agreements, written or oral, of the parties hereto with
respect to the subject matter hereof, other than any written employment agreement to which the
Optionee is a party. Neither this Option Agreement nor any term hereof may be amended, waived,
discharged, or terminated except by a written instrument signed by S1C and the Optionee; provided,
however, that S1C unilaterally may waive any provision hereof in writing to the extent that such
waiver does not adversely affect the interests of the Optionee hereunder, but no such waiver shall
operate as or be construed to be a subsequent waiver of the same provision or a waiver of any other
provision hereof.
IN WITNESS WHEREOF, the parties hereto have duly executed this Option Agreement, or caused
this Option Agreement to be duly executed on their behalf, as of the day and year first above
written.
| ATTEST: | S1 CORPORATION | |||||||
| By: | ||||||||
| Title: | Title: | |||||||
| OPTIONEE | ||||||||
| ADDRESS FOR NOTICE TO OPTIONEE: | ||||||||
| Number | Street | |||||||
| City | State | Zip Code | ||||||
