DELAWARE
(State or other jurisdiction of Incorporation or organization)
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94‑3145844
(I.R.S. Employer Identification No.)
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Title of each class
COMMON STOCK, $0.01 PAR VALUE
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Name of each exchange on which registered
The NASDAQ STOCK MARKET, LLC
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Large accelerated filer o
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Accelerated filer x
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Non-accelerated filer o
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Smaller reporting company o
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(Do not check if a smaller reporting company)
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PART III
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1
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ITEM 10 – DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
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1
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ITEM 11 – EXECUTIVE COMPENSATION
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6
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ITEM 12 – SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
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32
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ITEM 13 – CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE
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35
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ITEM 14 – PRINCIPAL ACCOUNTING FEES AND SERVICES
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37
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PART IV
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38
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ITEM 15 – EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
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38
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SIGNATURES
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42
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EX-31.3
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EX-31.4
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Number of Members: 4
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Audit Committee Functions:
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Members:
James C. Hale (Chair from March 2012) Philip G. Heasley (Chair through March 2012)
Katherine A. Schipper Zachary F. Sadek
Number of Meetings in Fiscal 2012: 6
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Selects the independent registered public accounting firm to audit OPAY's books and records, subject to stockholder ratification, and determines the compensation of the independent registered public accounting firm.
At least annually, reviews a report by the independent registered public accounting firm describing: internal quality control procedures, any issues raised by an internal or peer quality control review, and any investigations by regulatory authorities.
Consults with the independent registered public accounting firm, reviews and approves the scope of their audit, and reviews independence and performance. Also reviews any proposed engagement between OPAY and the independent registered public accounting firm and approves in advance any such engagement, if appropriate.
Reviews internal controls, accounting practices, and financial reporting, including the results of the annual audit and the review of the interim financial statements, with management and the independent registered public accounting firm.
Oversees financial exposure risk and risk assessment guidelines, receives and reviews reports on risk from other committees, and reports to the Board of Directors on risk exposures.
Coordinates the Board's oversight of internal control over financial reporting, disclosure controls and procedures, and code of ethics for chief executive officer, chief financial
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officer, and chief accounting officer.
Discusses earnings releases and guidance provided to the public.
As appropriate, obtains advice and assistance from outside legal, accounting, or other advisors.
Prepares a report of the Audit Committee to be included in our proxy statement.
Assesses annually the adequacy of the Audit Committee Charter.
Reports to the Board about these matters.
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·
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attract, retain, and motivate talented employees;
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·
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support business strategies that promote sustained growth and development;
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·
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reward the achievement of business results through performance-based incentive programs; and
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·
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link executives' goals and interests with the interests of our shareholders by tying a portion of executive compensation to our stock.
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Base salary rate by fiscal year
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|||||||||||
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2012
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2011
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2010
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|||||||||
Alex P. Hart
President and Chief Executive Officer
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$
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400,000
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$
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400,000
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$
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400,000
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Jeffrey W. Hodges (1)
Chief Financial Officer
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275,000
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275,000
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—
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Sandip Mohapatra (2)
Chief Technology Officer
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235,000
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215,000
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—
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Atul Garg (3)
Senior Vice President, Corporate Development
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225,000
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225,000
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—
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Keith Omsberg
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Vice President, General Counsel and Corporate Secretary
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220,000
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220,000
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190,000
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Keith S. Kendrick
Senior Vice President, Strategic Marketing
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265,000
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265,000
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265,000
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(1)Mr. Hodges joined OPAY in June 2011.
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(2)Mr. Mohapatra joined OPAY in December 2010.
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(3)Mr. Garg joined OPAY in November 2010.
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·
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align the management team's financial interests with those of our shareholders;
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·
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support a performance-oriented environment that rewards OPAY's overall results;
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attract, motivate, and retain key management critical to OPAY's success; and
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·
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align compensation with OPAY's business strategy, values, and management initiatives.
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Adjusted EBITDA Performance Metric
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||||||||||
Threshold
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Target
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Stretch
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$
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2,640,000
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$
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3,300,000
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$
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4,125,000
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80% of Target
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100% of Target
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125% of Target
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·
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Generate $3 million in Adjusted EBITDA in fiscal year 2012
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Develop a deeper understanding of the business (develop and utilize the key metrics for each payment type and each vertical market by end of fiscal year 2012)
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Increase the number of payments-oriented investment analysts covering the company from one to at least three by end of fiscal year 2012
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·
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Complete the company's IT infrastructure project by end of fiscal year 2012
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Weighting of Goals
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Company performance
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Individual performance
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Alex P. Hart
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80
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%
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20
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%
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Jeffrey W. Hodges
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70
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%
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30
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%
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Sandip Mohapatra
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70
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%
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30
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%
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Atul Garg
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70
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%
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30
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%
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Keith Omsberg
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70
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%
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30
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%
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Keith S. Kendrick
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70
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%
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30
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%
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Fiscal Year 2012 MIP Payout Levels
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Name
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Threshold(1)
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Target(2)
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Maximum(3)
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2012 MIP Payout
|
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Alex P. Hart
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$
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120,000
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$
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300,000
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$
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612,000
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$
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570,000
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Jeffrey W. Hodges
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48,125
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137,500
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283,250
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254,375
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Sandip Mohapatra
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41,125
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117,500
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242,050
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235,000
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Atul Garg
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39,375
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112,500
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231,750
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182,813
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Keith S. Omsberg
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38,500
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110,000
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226,600
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206,800
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Keith S. Kendrick
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46,375
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132,500
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272,950
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230,219
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(1)
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The "threshold" column specifies the payout an executive officer would have received, if the company had achieved the "threshold" level of financial performance described above, the executive had achieved none of his individual performance goals, and the executive had received an individual performance rating of "meets expectations."
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(2)
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The "target" column specifies the payout an executive officer would have received, if the company had achieved the "target" level of financial performance described above, the executive had achieved all of his individual performance goals, and the executive had received an individual performance rating of "exceeds expectations."
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(3)
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The "maximum" column specifies the payout an executive officer would have received, if the company had achieved the "stretch" level of financial performance described above, the executive had achieved all of his individual performance goals, and the executive had received an individual performance rating of "far exceeds expectations."
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·
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immediate expiration of any then-outstanding equity compensation, whether vested or not, if granted within the first 12 months after issuance or filing of any financial statement that is being restated (we refer to the 12-month period immediately following the issuance or filing of any financial statement that is being restated as the "Recovery Measurement Period");
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as to any exercised portion of any stock options (to the extent, during the Recovery Measurement Period, the options are granted, vest, are exercised, or the purchased shares are sold), prompt payment to OPAY of any option gain, which is defined as the spread between the closing price on the date of exercise of the option and the exercise price paid by Mr. Hart or Mr. Hodges, respectively;
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payment or transfer to OPAY of any stock gain, as defined in the employment agreement, from restricted stock, restricted stock units, or other similar forms of compensation; and/or
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·
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repayment of any bonuses paid during the Recovery Measurement Period.
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cash severance equal to two times his annual base salary and target bonus paid in equal installments over a 24 month period;
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if Mr. Hart elects to continue receiving group medical insurance under the COBRA continuation rules, payment by us of the same share of the premium we pay for active and similarly situated employees until the earlier of 12 months after his employment ends or the date his COBRA coverage expires; and
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·
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vesting of any outstanding equity awards with respect to any unvested portions that would have vested on or before the first anniversary of the date of his termination or resignation.
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cash severance equal to 1.5 times his annual base salary and target bonus paid in equal installments over an 18 month period;
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·
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if Mr. Hodges elects to continue receiving group medical insurance under the COBRA continuation rules, payment by us of the same share of the premium we pay for active and similarly situated employees until the earlier of 18 months after his employment ends or the date his COBRA coverage expires; and
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·
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vesting of any outstanding unvested stock options.
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cash severance equal to one times, in the case of Mr. Hart, and 12 months, in the case of Mr. Hodges, of his annual base salary, plus any annual discretionary bonus that has been awarded to him by the Board for the calendar year preceding the year in which his employment ends; and
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·
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if Mr. Hart or Mr. Hodges elects to continue receiving group medical insurance under the COBRA continuation rules, payment by us of the same share of the premium we pay for active and similarly situated employees until the earlier of 12 months after his employment ends or the date his COBRA coverage expires.
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Name and Principal Position
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Year
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Salary
($)
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Bonus
($) (1)
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Option Awards
($) (2)
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Non-Equity Incentive Plan Compensation
($)(3)
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All Other
Compensation
($) (4)
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Total
($)
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||||||||||||||||||
Alex P. Hart (5)
President,
Chief Executive Officer
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2012
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$
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400,000
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$
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—
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$
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148,600
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$
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570,000
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$
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18,148
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$
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1,136,748
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2011
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400,000
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—
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—
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—
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52,272
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452,2722
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2010
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38,462
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100,000
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830,560
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—
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6,319
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975,341
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Name and Principal Position
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Year
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Salary
($)
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Bonus
($) (1)
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Option Awards
($) (2)
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Non-Equity Incentive Plan Compensation
($)(3)
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All Other
Compensation
($) (4)
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Total
($)
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Jeffrey W. Hodges (6)
Chief Financial Officer
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2012
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275,000
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—
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37,115
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254,375
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10,478
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576,968
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2011
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74,038
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75,000
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488,650
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—
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2,572
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640,260
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Sandip Mohapatra (7)
Chief Technology Officer
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2012
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230,385
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—
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37,115
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235,000
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8,653
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511,153
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||||||||||||||||||
2011
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158,702
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—
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420,064
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—
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6,115
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584,881
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|||||||||||||||||||
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Atul Garg (8)
Senior Vice President,
Corporate Development
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2012
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225,000
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—
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37,115
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182,813
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63,188
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508,116
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2011
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199,039
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50,000
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477,560
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—
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40,850
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767,449
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Keith S. Omsberg
Vice President, General Counsel and Corporate Secretary
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2012
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220,000
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—
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37,115
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206,800
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8,358
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472,273
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2011
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208,346
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—
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166,200
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—
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7,789
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382,335
|
|||||||||||||||||||
2010
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190,000
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—
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—
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—
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7,239
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197,239
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|||||||||||||||||||
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Keith S. Kendrick(9)
Senior Vice President,
Strategic Marketing
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2012
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265,000
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—
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37,115
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230,219
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415,090
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947,424
|
||||||||||||||||||
2011
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265,000
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—
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221,600
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—
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94,630
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581,230
|
|||||||||||||||||||
2010
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265,000
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—
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—
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—
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168,901
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433,901
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|||||||||||||||||||
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(1)
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Reflects bonuses payable to Messrs. Hart, Hodges, and Garg pursuant to their employment agreements.
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(2) | The amounts included in these columns reflect the aggregate grant date fair value of option awards granted to the named executive officers during each year, computed in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 718. Assumptions used in the calculation of these amounts are included in Note 12, Share-based Payment, to the audited consolidated financial statements included in our annual report on Form 10-K for fiscal year 2012. |
(3) | Reflects amounts payable pursuant to the 2012 Management Incentive Plan. |
(4) | Consists of: |
·
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the aggregate incremental cost to OPAY of providing perquisites and other personal benefits;
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·
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company matching contributions under 401(k) plans;
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·
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tax reimbursement payments relating to income tax liability incurred by the applicable executive as a result of the Company's payment for the perquisites described below;
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·
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the dollar value of insurance premiums paid by, or on behalf of, the company during the covered fiscal year with respect to life insurance for the benefit of the named executive officers; and
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·
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severance related payments.
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Name
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Year
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Perquisites (a)
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401(k)
|
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Tax reimbursement
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Life Insurance
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Severance
|
Total all other compensation
|
|||||||||||||||||
Alex P. Hart
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2012
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$
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7,558
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$
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7,350
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$
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—
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$
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3,240
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$
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—
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$
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18,148
|
||||||||||||
2011
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38,775
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10,581
|
—
|
2,916
|
—
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52,272
|
|||||||||||||||||||
2010
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5,396
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923
|
—
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—
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—
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6,319
|
|||||||||||||||||||
|
|
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Jeffrey W. Hodges
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2012
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—
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8,250
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—
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2,228
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—
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10,478
|
||||||||||||||||||
2011
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—
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1,904
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—
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668
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—
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2,572
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|||||||||||||||||||
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|
||||||||||||||||||||||||
Sandip Mohapatra
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2012
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—
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6,911
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—
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1,742
|
—
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8,653
|
||||||||||||||||||
2011
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—
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4,548
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—
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1,567
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—
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6,115
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|||||||||||||||||||
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|
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Atul Garg
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2012
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54,615
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6,750
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—
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1,823
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—
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63,188
|
||||||||||||||||||
2011
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33,239
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5,971
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—
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1,640
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—
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40,850
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Name
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Year
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Perquisites (a)
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401(k)
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Tax Reimbursement
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Life Insurance
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Severance
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Total all other compensation
|
||||||||||||||||||
Keith S. Omsberg
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2012
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—
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6,600
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—
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1,758
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—
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8,358
|
||||||||||||||||||
2011
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—
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6,250
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—
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1,539
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—
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7,789
|
|||||||||||||||||||
2010
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—
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5,700
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—
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1,539
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—
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7,239
|
|||||||||||||||||||
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|
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Keith S. Kendrick
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2012
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68,788
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7,350
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55,667
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2,147
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281,138
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415,090
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||||||||||||||||||
2011
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46,941
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7,350
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38,192
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2,147
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—
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94,630
|
|||||||||||||||||||
2010
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102,834
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7,044
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56,876
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2,147
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—
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168,901
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|||||||||||||||||||
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(a)
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See Perquisites and Benefits in Compensation Discussion and Analysis for a discussion of perquisites provided to executives. Perquisites include:
|
*
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expenses for corporate apartments located near our corporate headquarters, located in Reston, Virginia in fiscal 2011 and in Norcross, Georgia, in fiscal year 2012, in each case including utilities;
|
*
|
for Messrs. Hart, Garg, and Kendrick, expenses for local transportation while the executive was located in Reston and air and ground transportation, meals and lodging for travel by the executive to and from his home to our corporate headquarters in Reston, and for Messrs. Garg and Kendrick, expenses for local transportation while the executive was located in Norcross and air and ground transportation, meals and lodging for travel by the executive to and from his home to our corporate headquarters in Norcross; and
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*
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legal consultation fees relating to negotiation and review of the executive's employment agreement.
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Name
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Year
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Corporate apartment*
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Travel*
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Legal consultation*
|
Total
|
||||||||||||
Alex P. Hart
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2012
|
$
|
—
|
$
|
7,558
|
$
|
—
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$
|
7,558
|
||||||||
2011
|
—
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35,775
|
3,000
|
38,775
|
|||||||||||||
2010
|
—
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5,396
|
—
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5,396
|
|||||||||||||
|
|
||||||||||||||||
Atul Garg
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2012
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14,070
|
40,545
|
—
|
54,615
|
||||||||||||
2011
|
—
|
33,239
|
—
|
33,239
|
|||||||||||||
|
|
||||||||||||||||
Keith S. Kendrick
|
2012
|
—
|
68,788
|
—
|
68,788
|
||||||||||||
2011
|
19,281
|
27,660
|
—
|
46,941
|
|||||||||||||
2010
|
31,125
|
71,709
|
—
|
102,834
|
|||||||||||||
|
|
||||||||||||||||
*Amounts reflect aggregate incremental cost to the Company, which is equal to the Company's out-of-pocket costs for these perquisites.
|
(5)
|
Mr. Hart joined the Company August 16, 2010.
|
(6)
|
Mr. Hodges joined the Company June 13, 2011.
|
(7)
|
Mr. Mohapatra joined the Company December 13, 2010.
|
(8)
|
Mr. Garg joined the Company November 1, 2010.
|
(9)
|
Mr. Kendrick's employment with the company terminated on September 30, 2012.
|
|
|
Estimated Possible Payouts Under Non-Equity Incentive Plan Awards(1)
|
|||||||||||||||||||||||
|
|
||||||||||||||||||||||||
Name
|
Grant Date
|
Threshold ($) (2)
|
Target
($) (3)
|
Maximum ($) (4)
|
All Other Option Awards: Number of Securities Underlying Options (#)
|
Exercise or Base Price of Option Awards ($/sh)
|
Grant Date Fair Value of Stock and Option Awards ($)(5)
|
||||||||||||||||||
Alex P. Hart
|
|
||||||||||||||||||||||||
MIP
|
|
$
|
120,000
|
$
|
300,000
|
$
|
612,000
|
||||||||||||||||||
|
|
|
|
|
|
Estimated Possible Payouts Under Non-Equity Incentive Plan Awards(1)
|
||||||||||||||||||||||||
|
|
||||||||||||||||||||||||
Name
|
Grant Date
|
Threshold ($) (2)
|
Target
($) (3)
|
Maximum ($) (4)
|
All Other Option Awards: Number of Securities Underlying Options (#)
|
Exercise or Base Price of Option Awards ($/sh)
|
Grant Date Fair Value of Stock and Option Awards ($)(5)
|
||||||||||||||||||
2004 Plan Grant
|
11/30/11
|
100,000
|
$
|
3.47
|
$
|
148,460
|
|||||||||||||||||||
|
|
||||||||||||||||||||||||
Jeffrey W. Hodges
|
|
||||||||||||||||||||||||
MIP
|
|
48,125
|
137,500
|
283,250
|
|||||||||||||||||||||
2004 Plan Grant
|
11/30/11
|
25,000
|
3.47
|
37,115
|
|||||||||||||||||||||
|
|
||||||||||||||||||||||||
Sandip Mohapatra
|
|
||||||||||||||||||||||||
MIP
|
|
41,125
|
117,500
|
242,050
|
|||||||||||||||||||||
2004 Plan Grant
|
11/30/11
|
25,000
|
3.47
|
37,115
|
|||||||||||||||||||||
|
|
||||||||||||||||||||||||
Atul Garg
|
|
||||||||||||||||||||||||
MIP
|
|
39,375
|
112,500
|
231,750
|
|||||||||||||||||||||
2004 Plan Grant
|
11/30/11
|
25,000
|
3.47
|
37,115
|
|||||||||||||||||||||
|
|
||||||||||||||||||||||||
Keith Omsberg
|
|
||||||||||||||||||||||||
MIP
|
|
38,500
|
110,000
|
226,600
|
|||||||||||||||||||||
2004 Plan Grant
|
11/30/11
|
25,000
|
3.47
|
37,115
|
|||||||||||||||||||||
|
|
||||||||||||||||||||||||
Keith S. Kendrick
|
|
||||||||||||||||||||||||
MIP
|
|
46,375
|
132,500
|
272,950
|
|||||||||||||||||||||
2004 Plan Grant
|
11/30/11
|
25,000
|
3.47
|
37,115
|
|||||||||||||||||||||
|
|
(1)
|
Figures shown represent possible payouts under our 2012 MIP. For additional information concerning performance metrics and payouts under our 2012 MIP, see Compensation Discussion and Analysis.
|
(2)
|
The "threshold" column specifies the payout an executive officer would have received under the 2012 MIP, if the company had achieved the "threshold" level of financial performance described above, the executive had achieved none of his individual performance goals, and the executive had received an individual performance rating of "meets expectations."
|
(3)
|
The "target" column specifies the payout an executive officer would have received under the 2012 MIP, if the company had achieved the "target" level of financial performance described above, the executive had achieved all of his individual performance goals, and the executive had received an individual performance rating of "exceeds expectations."
|
(4)
|
The "maximum" column specifies the payout an executive officer would have received under the 2012 MIP, if the company had achieved the "stretch" level of financial performance described above, the executive had achieved all of his individual performance goals, and the executive had received an individual performance rating of "far exceeds expectations."
|
(5)
|
Represents the aggregate fair market value on date of grant, in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 718. Assumptions used in the calculation of these amounts are included in Note 12, Share-based Payment, to the audited consolidated financial statements included in our annual report on Form 10-K for fiscal year 2012.
|
Name
|
Number of Securities Underlying Unexercised Options
(#)
Exercisable
|
Number of Securities Underlying Unexercised Options
(#)
Unexercisable (a)
|
Option Exercise Price
($)
|
Option Expiration Date
|
|||||||||
|
|||||||||||||
Alex P. Hart
|
208,333
|
191,667
|
(1)
|
$
|
5.06
|
8/16/20
|
|||||||
|
—
|
100,000
|
(2)
|
3.47
|
11/29/21
|
||||||||
|
208,333
|
291,667
|
|||||||||||
|
|||||||||||||
|
|||||||||||||
Jeffrey W. Hodges
|
78,125
|
171,875
|
(3)
|
4.67
|
6/12/21
|
||||||||
|
—
|
25,000
|
(4)
|
3.47
|
11/29/21
|
||||||||
|
78,125
|
196,875
|
Name
|
Number of Securities Underlying Unexercised Options
(#)
Exercisable
|
Number of Securities Underlying Unexercised Options
(#)
Unexercisable (a)
|
Option Exercise Price
($)
|
Option Expiration Date
|
|||||||||
|
|
||||||||||||
Sandip Mohapatra
|
20,000
|
60,000
|
(5)
|
5.72
|
2/7/21
|
||||||||
|
33,333
|
66,667
|
(6)
|
5.22
|
5/9/21
|
||||||||
|
—
|
25,000
|
(7)
|
3.47
|
11/29/21
|
||||||||
|
53,333
|
151,667
|
|
||||||||||
|
|
||||||||||||
Atul Garg
|
50,000
|
150,000
|
(8)
|
5.71
|
10/31/21
|
||||||||
|
—
|
25,000
|
(9)
|
3.47
|
11/29/21
|
||||||||
|
50,000
|
175,000
|
|
||||||||||
|
|
||||||||||||
Keith S. Omsberg
|
3,000
|
—
|
7.81
|
11/30/13
|
|||||||||
|
3,000
|
—
|
8.60
|
10/31/14
|
|||||||||
|
10,000
|
—
|
7.05
|
9/12/16
|
|||||||||
|
24,000
|
6,000
|
(10)
|
10.20
|
9/30/17
|
||||||||
|
16,000
|
4,000
|
(11)
|
9.25
|
12/9/17
|
||||||||
|
9,000
|
6,000
|
(12)
|
4.25
|
12/3/18
|
||||||||
|
25,000
|
50,000
|
(13)
|
5.22
|
5/9/21
|
||||||||
|
—
|
25,000
|
(14)
|
3.47
|
11/29/21
|
||||||||
|
90,000
|
91,000
|
|
||||||||||
|
|
||||||||||||
Keith S. Kendrick
|
80,000
|
—
|
7.80
|
12/29/12
|
|||||||||
|
30,000
|
—
|
4.73
|
12/29/12
|
|||||||||
|
37,590
|
—
|
5.22
|
12/29/12
|
|||||||||
|
147,590
|
—
|
|
||||||||||
|
|
(a)
|
Vesting schedules of the unexercisable option awards are set forth below. Vesting may be accelerated under certain circumstances described in Potential Payments upon Termination or Change of Control.
|
Name
|
Footnote reference
|
Vesting date
|
Number vesting
|
||||||
Alex P. Hart
|
(1
|
)
|
8,333 shares per month from 10/16/12 through 8/16/14
|
191,667
|
|||||
(2
|
)
|
11/30/12
|
25,000
|
||||||
2,083 shares per month from 12/30/12 through 11/30/16
|
75,000
|
||||||||
Jeffrey W. Hodges
|
(3
|
)
|
5,208 shares per month from 10/13/12 through 6/13/15
|
171,875
|
|||||
|
|
||||||||
|
(4
|
)
|
11/30/12
|
6,250
|
|||||
|
521 shares per month from 12/30/12 through 11/30/16
|
18,750
|
|||||||
|
|
||||||||
Sandip Mohapatra
|
(5
|
)
|
2/08/13
|
20,000
|
|||||
|
2/08/14
|
20,000
|
|||||||
|
2/08/15
|
20,000
|
|||||||
|
|
||||||||
|
(6
|
)
|
2,083 shares per month from 10/10/12 through 5/10/15
|
66,667
|
|||||
|
|
||||||||
|
(7
|
)
|
11/30/12
|
6,250
|
|||||
|
521 shares per month from 12/30/12 through 11/30/16
|
18,750
|
|||||||
|
|
||||||||
Atul Garg
|
(8
|
)
|
11/01/12
|
50,000
|
|||||
|
11/01/13
|
50,000
|
|||||||
|
11/01/14
|
50,000
|
|||||||
|
|
||||||||
|
(9
|
)
|
11/30/12
|
6,250
|
|||||
|
521 shares per month from 12/30/12 through 11/30/16
|
18,750
|
|||||||
|
|
||||||||
Keith S. Omsberg
|
(10
|
)
|
10/1/12
|
6,000
|
Name
|
Footnote reference
|
Vesting date
|
Number vesting
|
||||||
|
(11
|
)
|
12/10/12
|
4,000
|
|||||
|
(12
|
)
|
12/4/12
|
3,000
|
|||||
|
12/4/13
|
3,000
|
|||||||
|
(13
|
)
|
1,563 shares per month from 10/10/12 through 11/30/16
|
50,000
|
|||||
|
(14
|
)
|
11/30/12
|
6,250
|
|||||
|
521 shares per month from 12/30/12 through 11/30/16
|
18,650
|
·
|
fraud;
|
·
|
material misrepresentation;
|
·
|
theft or embezzlement of our assets;
|
·
|
conviction, or pleas of guilty or nolo contendere to any felony (or felony charge reduced to a misdemeanor), or, with respect to the employee's employment, certain misdemeanors;
|
·
|
material failure to follow OPAY's policies;
|
·
|
material breach of certain provisions of the agreement; and/or
|
·
|
continued failure to attempt in good faith to perform duties as reasonably assigned by the Board.
|
·
|
a conviction of the employee of, or a plea of guilty or nolo contendere by the named executive officer to, any felony;
|
·
|
an intentional violation by the employee of federal or state securities laws;
|
·
|
willful misconduct or gross negligence by the employee that has or is reasonably likely to have a material adverse effect on OPAY;
|
·
|
a failure of the employee to perform his reasonably assigned duties for OPAY that has or is reasonably likely to have a material adverse effect on OPAY;
|
·
|
a material violation by the employee of any material provision of our Business Code of Conduct or any other applicable policies in place;
|
·
|
a violation by the named executive officer of any provision of his Proprietary and Confidential Information, Developments, Noncompetition and Nonsolicitation Agreement with us; or
|
·
|
fraud, embezzlement, theft or dishonesty by the employee against us.
|
·
|
any reduction in the employee's base salary;
|
·
|
any material diminution of the employee's duties, responsibilities, powers or authorities;
|
·
|
any relocation of his principal place of employment by more than fifty (50) miles or requirement that the employee relocate his principal place of resident by more than fifty (50) miles; or
|
·
|
a material breach by us of any material provision of the employment agreement.
|
Benefits and payments upon termination
|
Voluntary termination(1)
|
Involuntary for cause termination(1)
|
Death or disability(2)
|
Involuntary not for cause termination(3)
|
Voluntary termination with good reason(3)
|
Change of control(4)
|
||||||||||||||||||
Salary
|
$
|
15,385
|
$
|
15,385
|
$
|
15,385
|
$
|
415,385
|
$
|
415,385
|
$
|
815,385
|
||||||||||||
Bonus
|
—
|
—
|
—
|
—
|
—
|
600,000
|
||||||||||||||||||
Health benefits
|
—
|
—
|
—
|
16,138
|
16,138
|
16,138
|
||||||||||||||||||
Perquisites
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Accrued PTO
|
16,460
|
16,460
|
16,460
|
16,460
|
16,460
|
16,460
|
||||||||||||||||||
Total company obligation
|
31,845
|
31,845
|
31,845
|
447,983
|
447,983
|
1,447,983
|
||||||||||||||||||
Stock options (5)
|
—
|
—
|
—
|
—
|
—
|
146,000
|
||||||||||||||||||
Total benefit to employee
|
$
|
31,845
|
$
|
31,845
|
$
|
31,845
|
$
|
447,983
|
$
|
447,983
|
$
|
1,593,983
|
(1)
|
Amounts reflect maximum salary earned but not paid prior to date as of September 30, 2012 and personal time off accrued through September 30, 2012.
|
(2)
|
Amounts reflect maximum salary earned but not paid prior to date as of September 30, 2012, and personal time off accrued through September 30, 2012
|
(3)
|
Amounts reflect maximum salary earned but not paid prior to September 30, 2012, one year's base salary, twelve months' continuation of health benefits and personal time off accrued through September 30, 2012.
|
(4)
|
Amounts shown are payable in the event of a termination of Mr. Hart's employment by OPAY without cause, or a resignation by Mr. Hart for good reason, within one year after a change of control, and reflect maximum salary earned but not yet paid through September 30, 2012, two times the annual base salary and target non-equity incentive plan compensation, twelve months' continuation of health benefits and personal time off accrued through September 30, 2012. In addition, Mr. Hart is entitled to immediate vesting of any options that would have vested on or before the first anniversary of the date of employment termination.
|
(5)
|
The amount represents the value of in-the-money options that would vest through September 30, 2012 at a closing price of $4.93 less the cost to the employee to exercise the options at their exercise price.
|
Benefits and payments upon termination
|
Voluntary termination(1)
|
Involuntary for cause termination(1)
|
Death or disability(2)
|
Involuntary not for cause termination(3)
|
Voluntary termination with good reason (3)
|
Change of control(4)
|
||||||||||||||||||
Salary
|
$
|
10,577
|
$
|
10,577
|
$
|
10,577
|
$
|
285,577
|
$
|
285,577
|
$
|
423,077
|
||||||||||||
Bonus
|
—
|
—
|
—
|
—
|
—
|
206,250
|
||||||||||||||||||
Health benefits
|
—
|
—
|
—
|
16,138
|
16,138
|
24,339
|
||||||||||||||||||
Perquisites
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Accrued PTO
|
25,770
|
25,770
|
25,770
|
25,770
|
25,770
|
25,770
|
||||||||||||||||||
Total company obligation
|
36,347
|
36,347
|
36,347
|
327,485
|
327,485
|
679,436
|
||||||||||||||||||
Stock options (5)
|
20,313
|
20,313
|
20,313
|
20,313
|
20,313
|
101,500
|
||||||||||||||||||
Total benefit to employee
|
$
|
56,660
|
$
|
56,660
|
$
|
56,660
|
$
|
347,798
|
$
|
347,798
|
$
|
780,936
|
(1)
|
Amounts reflect maximum salary earned but not paid through September 30, 2012 and personal time off accrued through September 30, 2012.
|
(2)
|
Amounts reflect maximum salary earned but not paid prior to date as of September 30, 2012 and personal time off accrued through September 30, 2012.
|
(3)
|
Amounts reflect maximum salary earned but not paid prior to September 30, 2012, one year's base salary, twelve months' continuation of health benefits and personal time off accrued through September 30, 2012.
|
(4)
|
Amounts shown are payable in the event of a termination of Mr. Hodges' employment by OPAY without cause, or a resignation by Mr. Hodges for good reason, within one year after a change of control, and reflect maximum salary earned but not paid through September 30, 2012, 1.5 times base salary and target bonus, immediate vesting of any stock options, eighteen months' continuation of health benefits and personal time off accrued through September 30, 2012.
|
(5)
|
The amount represents the value of vested, in-the-money options as of September 30, 2012 at a closing price of $4.93 less the cost to the employee to exercise the options at their exercise price.
|
Benefits and payments upon termination
|
Voluntary termination(1)
|
Involuntary for cause termination(1)
|
Death or disability(2)
|
Involuntary not for cause termination(3)
|
Voluntary termination with good reason (3)
|
Change of control(4)
|
||||||||||||||||||
Salary
|
$
|
9,038
|
$
|
9,038
|
$
|
9,038
|
$
|
126,538
|
$
|
126,538
|
$
|
244,038
|
||||||||||||
Bonus
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Health benefits
|
—
|
—
|
—
|
7,936
|
7,936
|
16,138
|
||||||||||||||||||
Perquisites
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Accrued PTO
|
27,115
|
27,115
|
27,115
|
27,115
|
27,115
|
27,115
|
||||||||||||||||||
Total company obligation
|
36,153
|
36,153
|
36,153
|
161,589
|
161,589
|
287,291
|
||||||||||||||||||
Stock options (5)
|
—
|
—
|
—
|
—
|
—
|
36,500
|
||||||||||||||||||
Total benefit to employee
|
$
|
36,153
|
$
|
36,153
|
$
|
36,153
|
$
|
161,589
|
$
|
161,589
|
$
|
323,791
|
(1)
|
Amounts reflect maximum salary earned but not paid through September 30, 2012 and personal time off accrued through September 30, 2012.
|
(2)
|
Amounts reflect maximum salary earned but not paid prior to date as of September 30, 2012 and personal time off accrued through September 30, 2012.
|
(3)
|
Amounts reflect maximum salary earned but not paid prior to September 30, 2012, six months base salary, six months' continuation of health benefits and personal time off accrued through September 30, 2012.
|
(4)
|
Amounts shown are payable in the event of a termination of Mr. Mohapatra's employment by OPAY without cause, or a resignation by Mr. Mohapatra for good reason, within one year after a change of control, and reflect maximum salary earned but not paid through September 30, 2012, one times annual base salary, immediate vesting of any stock options that would have vested within the next twelve months, twelve months' continuation of health benefits and personal time off accrued through September 30, 2012.
|
(5)
|
The amount represents the value of vested, in-the-money options as of September 30, 2012 at a closing price of $4.93 less the cost to the employee to exercise the options at their exercise price.
|
Benefits and payments upon termination
|
Voluntary termination (1)
|
Involuntary for cause termination (1)
|
Death or disability (2)
|
Involuntary not for cause termination (3)
|
Voluntary termination with good reason (3)
|
Change of control (4)
|
||||||||||||||||||
Salary
|
$
|
8,654
|
$
|
8,654
|
$
|
121,154
|
$
|
121,154
|
$
|
121,154
|
$
|
233,654
|
||||||||||||
Bonus
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Health benefits
|
—
|
—
|
7,936
|
7,936
|
7,936
|
16,138
|
||||||||||||||||||
Perquisites
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Accrued PTO
|
24,014
|
24,014
|
24,014
|
24,014
|
24,014
|
24,014
|
||||||||||||||||||
Total company obligation
|
32,668
|
32,668
|
153,104
|
153,104
|
153,104
|
273,806
|
||||||||||||||||||
Stock options(5)
|
—
|
—
|
—
|
—
|
—
|
36,500
|
||||||||||||||||||
Total benefit to employee
|
$
|
32,668
|
$
|
32,668
|
$
|
153,104
|
$
|
153,104
|
$
|
153,104
|
$
|
310,306
|
(1)
|
Amounts reflect maximum salary earned but not paid through September 30, 2012 and personal time off accrued through September 30, 2012.
|
(2)
|
Amounts reflect maximum salary earned but not paid prior to date as of September 30, 2012, six months' continuation of health benefits, and personal time off accrued through September 30, 2012.
|
(3)
|
Amounts reflect maximum salary earned but not paid prior to September 30, 2012, one-half times annual base salary, six months' continuation of health benefits and personal time off accrued through September 30, 2012.
|
(4)
|
Amounts shown are payable in the event of a termination of Mr. Garg's employment by OPAY without cause, or a resignation by Mr. Garg for good reason, within one year after a change of control, and reflect maximum salary earned but not paid through September 30, 2012, one times base salary, immediate vesting of any stock options that would have vested within the next twelve months, twelve months' continuation of health benefits and personal time off accrued through September 30, 2012.
|
(5)
|
The amount represents the value of vested, in-the-money options as of September 30, 2012 at a closing price of $4.93 less the cost to the employee to exercise the options at their exercise price.
|
Benefits and payments upon termination
|
Voluntary termination (1)
|
Involuntary for cause termination (1)
|
Death or disability (2)
|
Involuntary not for cause termination (3)
|
Voluntary termination with good reason (3)
|
Change of control (4)
|
||||||||||||||||||
Salary
|
$
|
8,462
|
$
|
8,462
|
$
|
228,462
|
$
|
228,462
|
$
|
228,462
|
$
|
448,462
|
||||||||||||
Bonus
|
—
|
—
|
—
|
—
|
—
|
137,867
|
||||||||||||||||||
Health benefits
|
—
|
—
|
16,138
|
16,138
|
16,138
|
24,339
|
||||||||||||||||||
Perquisites
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Accrued PTO
|
24,699
|
24,699
|
24,699
|
24,699
|
24,699
|
24,699
|
||||||||||||||||||
Total company obligation
|
33,161
|
33,161
|
269,299
|
269,299
|
269,299
|
635,367
|
||||||||||||||||||
Stock options
|
6,120
|
6,120
|
6,120
|
6,120
|
6,120
|
46,700
|
||||||||||||||||||
Total benefit to employee (5)
|
$
|
39,281
|
$
|
39,281
|
$
|
275,419
|
$
|
275,419
|
$
|
275,419
|
$
|
682,067
|
(1)
|
Amounts reflect maximum salary earned but not paid through September 30, 2012 and personal time off accrued through September 30, 2012.
|
(2)
|
Amounts reflect maximum salary earned but not paid prior to date as of September 30, 2012, one times annual base salary, twelve months' continuation of health benefits, and personal time off accrued through September 30, 2012.
|
(3)
|
Amounts reflect maximum salary earned but not paid prior to September 30, 2012, one times annual base salary, twelve months' continuation of health benefits and personal time off accrued through September 30, 2012.
|
(4) | Amounts shown are payable in the event of a termination of Mr. Omsberg's employment by OPAY without cause, or a resignation by Mr. Omsberg for good reason, within one year after a change of control, and reflect maximum salary earned but not paid through September 30, 2012, two times (a) base salary and (b) bonus equal to the average annual bonus paid to Mr. Omsberg (or for the most recent year, accrued for Mr. Omsberg) for the previous three years, immediate vesting of any stock options, eighteen months' continuation of health benefits and personal time off accrued through September 30, 2012. |
(5)
|
The amount represents the value of vested, in-the-money options as of September 30, 2012 at a closing price of $4.93 less the cost to the employee to exercise the options at their exercise price.
|
Pay component
|
Fiscal 2012
|
|||
Board retainer (payable quarterly in arrears)
|
$
|
20,000
|
||
|
||||
Board member fee (per meeting)
|
||||
In-person meeting
|
1,000
|
|||
Telephonic meeting
|
500
|
|||
|
||||
Committee chair retainer (payable quarterly in arrears)
|
||||
Audit committee
|
5,000
|
|||
All other committees
|
2,500
|
|||
|
||||
Committee meeting fee (per meeting)
|
||||
In-person meeting
|
1,000
|
|||
Telephonic meeting
|
500
|
|||
|
||||
Lead director/ Chairman retainer (payable quarterly in arrears)
|
5,000
|
·
|
Death and disability—Pro rata vesting through the date of death or disability; immediate payout
|
·
|
Voluntary resignation—Pro rata vesting through the date of resignation; payable at end of one-year vesting period
|
·
|
Termination for cause—Forfeit entire award
|
·
|
Change of control—100% vesting, payable on date of change of control
|
Name
|
Fees earned or paid in cash ($)
|
Stock awards ($) (1)
|
Total ($)
|
|||||||||
Charles W. Berger
|
$
|
32,500
|
$
|
42,660
|
$
|
75,160
|
||||||
|
||||||||||||
Morgan P. Guenther (Chair of Governance and Nominating Committee)
|
42,000
|
42,660
|
84,660
|
|||||||||
|
||||||||||||
James C. Hale (Co-Chair of the Audit Committee through February 2012; and Chair of the Audit Committee beginning March 2012)
|
39,000
|
42,660
|
81,660
|
|||||||||
|
||||||||||||
Philip G. Heasley (Chairman of the Board ; Chair of the Compensation Committee through February 2012; and Chair of the Audit Committee through February 2012; Chair of the Capital Planning Committee through March 2012) (2)
|
53,750
|
42,660
|
96,410
|
|||||||||
|
||||||||||||
David A. Poe (Chair of the Data Security Committee)
|
38,500
|
42,660
|
81,160
|
|||||||||
|
||||||||||||
Zachary F. Sadek (Chair of the Compensation Committee beginning March 2012)
|
38,750
|
42,660
|
81,410
|
|||||||||
|
||||||||||||
Katherine A. Schipper (Chair Capital Review Committee through March 2012) (3)
|
35,000
|
42,660
|
77,660
|
(1)
|
The amounts reflect the aggregate grant date fair value of restricted stock units awarded to each member elected to the Board of Directors at the 2012 annual meeting. In accordance with ASC 718 the amount is calculated as shares awarded (9,000) multiplied by the closing price of OPAY common stock on April 13, 2012 (the date of award).
|
(2)
|
The Capital Planning Committee was dissolved in March 2012.
|
(3)
|
The Capital Review Committee was dissolved in March 2012.
|
Name
|
Stock Awards Outstanding
|
Options Outstanding
|
||||||
Charles W. Berger
|
9,000
|
65,000
|
||||||
Morgan P. Guenther
|
9,000
|
130,000
|
||||||
James C. Hale
|
9,000
|
—
|
||||||
Philip G. Heasley
|
9,000
|
10,002
|
||||||
David A. Poe
|
9,000
|
6,668
|
||||||
Zachary F. Sadek
|
9,000
|
—
|
||||||
Katherine A. Schipper
|
9,000
|
—
|
|
Common stock beneficially owned
|
|||||||||||
Name of beneficial owner(1)
|
Total number of shares
|
Percent of class(2)
|
||||||||||
Alex P. Hart
|
289,583
|
(3
|
)
|
1.7
|
%
|
|||||||
Charles W. Berger
|
75,100
|
(4
|
)
|
*
|
||||||||
Morgan P. Guenther
|
136,250
|
(5
|
)
|
*
|
||||||||
James C. Hale
|
14,000
|
(6
|
)
|
*
|
||||||||
Philip G. Heasley
|
21,102
|
(7
|
)
|
*
|
||||||||
David A. Poe
|
21,668
|
(8
|
)
|
*
|
||||||||
Zachary F. Sadek
|
1,799,321
|
(9
|
)
|
10.8
|
%
|
|||||||
Katharine A. Schipper
|
—
|
*
|
||||||||||
Jeffrey W. Hodges
|
117,188
|
(10
|
)
|
*
|
||||||||
Sandip Mohapatra
|
93,647
|
(11
|
)
|
*
|
||||||||
Atul Garg
|
107,813
|
(12
|
)
|
*
|
||||||||
Keith S. Omsberg
|
120,188
|
(3
|
)
|
*
|
||||||||
Keith S. Kendrick
|
—
|
*
|
||||||||||
|
||||||||||||
All directors and executive officers as a group (12 persons)
|
2,855,860
|
(13
|
)
|
16.1
|
%
|
(1)
|
Address: 3550 Engineering Drive, Norcross, Georgia 30092, unless otherwise specified.
|
(2)
|
The percentages shown are based on 16,712,279 shares of common stock outstanding as of January 18, 2013.
|
(3)
|
Consists entirely of shares issuable upon the exercise of options exercisable on or before March 18, 2013.
|
(4)
|
Includes 60,000 shares issuable upon the exercise of options exercisable on or before March 18, 2013.
|
(5)
|
Includes 120,000 shares issuable upon the exercise of options exercisable on or before March 18, 2013.
|
(6)
|
Consists entirely of shares owned.
|
(7)
|
Includes 10,002 shares issuable upon the exercise of options exercisable on or before March 18, 2013.
|
(8)
|
Includes 6,668 shares issuable upon the exercise of options exercisable on or before March 18, 2013
|
(9)
|
Address: c/o PCP Managers LLC, One Federal Street, Boston, Massachusetts 02110. Based solely on information contained in a Schedule 13D/A filed with the SEC on January 15, 2010 by Giant Investment, LLC, ("Giant"); Parthenon Investors II, L.P. ("Parthenon"); PCap Partners II, LLC ("PCap Partners"); PCap II, LLC ("PCap II"); John C. Rutherford; and Ernest K. Jacquet (collectively, the "Parthenon Group"). Parthenon is a managing member of Giant, PCap Partners is a general partner of Parthenon, and PCap II is a managing member of PCap Partners. Giant directly beneficially owns 1,799,321 shares of common stock. As parents of Giant, Parthenon, PCap Partners and PCap II may be deemed to beneficially own their proportional interest in the shares of common stock directly and beneficially owned by Giant, comprising 1,748,401 shares of common stock. John C. Rutherford and Ernest K. Jacquet are control persons of various entities indirectly investing in Giant and may be deemed to beneficially own a proportional interest in the shares of common stock owned by Giant, comprising 1,799,321 shares of common stock. In addition, Exhibit 99.2 to a Schedule 13D/A filed by the Parthenon Group on January 6, 2009 indicated that Mr. Sadek, as a Vice President of PCap Managers LLC, an affiliate of Giant, may be deemed to indirectly beneficially own all of the shares directly beneficially owned by Giant, but that Mr. Sadek disclaims any such beneficial ownership.
|
(10)
|
Consists entirely of shares issuable upon the exercise of options exercisable on or before March 18, 2013.
|
(11)
|
Includes 91,564 shares issuable upon the exercise of options exercisable on or before March 18, 2013.
|
(12)
|
Includes 107,813 shares issuable upon the exercise of options exercisable on or before March 18, 2013.
|
(13)
|
Includes 678,673 shares issuable upon the exercise of options exercisable on or before March 18, 2013.
|
|
Common stock beneficially owned
|
|||||||
Name of beneficial owner
|
Total number of shares
|
Percent of class(1)
|
||||||
|
||||||||
Wells Fargo & Company (2)
|
2,503,481
|
15.0
|
%
|
|||||
Giant Investment, LLC (3)
|
1,799,321
|
10.8
|
%
|
|||||
Heartland Advisors, Inc. (4)
|
1,576,900
|
9.4
|
%
|
|||||
Dimensional Fund Advisors LP (5)
|
1,305,508
|
7.8
|
%
|
|||||
Kennedy Capital Management, Inc.(6)
|
848,343
|
5.1
|
%
|
(1) | The percentages shown are based on 16,712,279 shares of common stock outstanding as of January 18, 2013. |
(2) | Address: For Wells Fargo & Company, 420 Montgomery Street, San Francisco, California 94104; for Wells Capital Management Incorporated, 525 Market Street, 10th Floor, San Francisco, California 94105. Based solely on information contained in a Schedule 13G/A filed with the SEC on February 10, 2012 by Wells Fargo & Company and its subsidiary, Wells Capital Management Incorporated. This table reflects the shares of common stock owned by Wells Fargo & Company and Wells Capital Management Incorporated as of January 31, 2012. |
(3) | Address: 265 Franklin Street, 18th Floor, Boston, Massachusetts 02110. Based solely on information contained in a Schedule 13D/A filed with the SEC on January 15, 2010 by Giant Investment, LLC, ("Giant"); Parthenon Investors II, L.P. ("Parthenon"); PCap Partners II, LLC ("PCap Partners"); PCap II, LLC ("PCap II"); John C. Rutherford; and Ernest K. Jacquet (collectively, the "Parthenon Group"). Parthenon is a managing member of Giant, PCap Partners is a general partner of Parthenon, and PCap II is a managing member of PCap Partners. Giant directly beneficially owns 1,799,321 shares of common stock. As parents of Giant, Parthenon, PCap Partners and PCap II may be deemed to beneficially own their proportional interest in the shares of common stock directly and beneficially owned by Giant, comprising 1,748,401 shares of common stock. John C. Rutherford and Ernest K. Jacquet are control persons of various entities indirectly investing in Giant and may be deemed to beneficially own a proportional interest in the shares of common stock owned by Giant, comprising 1,799,321 shares of common stock. In addition, Exhibit 99.2 to a Schedule 13D/A filed by the Parthenon Group on January 6, 2009 indicated that Mr. Sadek, who is a member of our Board of directors, may be deemed to indirectly beneficially own all of the shares directly beneficially owned by Giant due to his position as a Vice President of PCap Managers LLC, an affiliate of Giant, but that Mr. Sadek disclaims any such beneficial ownership. |
(4) | Address: 789 North Water Street, Milwaukee, Wisconsin 53202. Based solely on information contained in a Schedule 13G/A filed with the SEC by Heartland Advisors, Inc. on February 10, 2012. This table reflects the shares of common stock that may be deemed beneficially owned by (1) Heartland Advisors, Inc., by virtue of its investment discretion and voting authority granted by certain clients, and (2) William J. Nasgovitz, by virtue of his control of Heartland Advisors, Inc., in each case as of December 31, 2010. Mr. Nasgovitz disclaims beneficial ownership of these shares. |
(5) | Address: Palisades West, Building One, 6300 Bee Cave Road, Austin, Texas 78746. Based solely on information contained in a Schedule 13F filed with the SEC by Dimensional Fund Advisors LP ("Dimensional") on November 15, 2012. In its role as an investment advisor or manager to certain investment companies, trusts and accounts (the "Funds"), Dimensional possesses investment and/or voting power over the shares shown in the table above, and may be deemed to be the beneficial owner of such shares. However, all shares reported above are owned by the Funds, and Dimensional disclaims beneficial ownership of such shares. This table reflects the shares of common stock deemed beneficially owned by Dimensional as of December 31, 2010. |
(6)
|
Address: 10829 Olive Blvd., St. Louis, MO 63141. Based solely on information contained in a Schedule 13G/A filed with the SEC by Kennedy Capital Management, Inc. (Kennedy) on February 14, 2012. Kennedy has sole power to vote or to direct the vote of 826,210 shares and sole power to dispose or to direct the disposition of 848,343 shares.
|
Plan category
|
Number of securities to be issued upon exercise of outstanding options, warrant and rights (in thousands)
|
Weighted average exercise price of outstanding options, warrants and rights ($)
|
Number of securities remaining available for future issuance under equity compensation plans (in thousands)
|
|||||||||
Equity compensation plans:
|
||||||||||||
Approved by security holders
|
2,810
|
$
|
6.08
|
1,272
|
||||||||
Not approved by security holders
|
350
|
4.78
|
—
|
|||||||||
Total
|
3,160
|
$
|
5.94
|
1,272
|
·
|
Any related person transaction proposed to be entered into by OPAY must be reported to our General Counsel.
|
·
|
The Governance and Nominating Committee shall review and approve all related person transactions, prior to effectiveness or consummation of the transaction, whenever practicable.
|
·
|
If the General Counsel determines that advance approval of a related person transaction is not practicable under the circumstances, the Governance and Nominating Committee shall review and, in its discretion, may ratify the related person transaction at the next Governance and Nominating Committee meeting, or at the next meeting following the date that the related person transaction comes to the attention of the General Counsel; provided, however, that the General Counsel may present a related person transaction arising in the time period between meetings of the Governance and Nominating Committee to the Chair of the Governance and Nominating Committee, who shall review and may approve the related person transaction, subject to ratification by the Governance and Nominating Committee at the next meeting.
|
·
|
Previously approved transactions of an ongoing nature shall be reviewed by the Governance and Nominating Committee annually to ensure that such transactions have been conducted in accordance with the previous approval granted by the Governance and Nominating Committee, if any, and that all required disclosures regarding the related person transaction are made.
|
·
|
the related person's interest in the transaction, the dollar value of the amount involved, and the dollar value of the amount of the related person's interest, without regard to profit or loss;
|
·
|
whether the transaction was undertaken in the ordinary course of business;
|
·
|
whether the transaction with the related person is proposed to be, or was, entered into on terms no less favorable to us than terms that could have been reached with an unrelated third party;
|
·
|
the purpose of, and potential benefits to us of, the transaction; and
|
·
|
any other information regarding the related person transaction or the related person in the context of the proposed transaction that would be material to investors in light of the circumstances of the particular transaction.
|
·
|
interests arising solely from the related person's position as an executive officer of another entity (whether or not the person is also a director of such entity) that is a participant in the transaction, where (a) the related person and all other related persons own in the aggregate less than a 10% equity interest in such entity, (b) the related person and his or her immediate family members are not involved in the negotiation of the terms of the transaction with the Company and do not receive any special benefits as a result of the transaction and (c) the amount involved in the transaction equals less than the greater of $200,000 or 5% of the annual gross revenues of the company receiving payment under the transaction;
|
·
|
a transaction that is specifically contemplated by provisions of our charter or bylaws; and
|
·
|
transactions that do not constitute related person transactions pursuant to the instructions to the SEC's related person transaction disclosure rule.
|
E&Y | McGladrey | |||||||||||||||
In thousands
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
Audit Fees(1)
|
$
|
393
|
$
|
—
|
$
|
43
|
$
|
479
|
||||||||
Audit Related Fees
|
—
|
—
|
—
|
—
|
||||||||||||
Tax Fees
|
—
|
—
|
—
|
—
|
||||||||||||
All Other Fees
|
—
|
—
|
—
|
—
|
||||||||||||
Total
|
$
|
393
|
$
|
—
|
$
|
43
|
$
|
479
|
||||||||
(1)Represents fees for the audit of our financial statements, review of our quarterly financial statements, audit of our internal controls, and advice on accounting matters directly related to the audit and audit services provided in connection with other statutory and regulatory filings.
|
Exhibit number
|
Exhibit description
|
2.1
|
Purchase and Sale Agreement between Official Payments Holdings, Inc. and Informatix, Inc., dated June 9, 2008 (1)
|
2.2
|
Asset Purchase Agreement between Official Payments Holdings, Inc., Cowboy Acquisition Company and ChoicePay, Inc., dated as of January 13, 2009 (2)
|
3.1
|
Restated Certificate of Incorporation, as amended (3)
|
3.2
|
Amended and Restated Bylaws of Official Payments Holdings, Inc., as amended (4)
|
4.1
|
Form of common stock certificate (3)
|
4.2
|
See Exhibits 3.1 and 3.2, for provisions of the Restated Certificate of Incorporation and Amended and Restated Bylaws, as amended, of the Registrant defining rights of the holders of common stock of the Registrant
|
10.1
|
Amended and Restated 1996 Equity Incentive Plan, dated January 28, 1999 (5)*
|
10.2
|
Form of Incentive Stock Option Agreement under the Registrant's Amended and Restated 1996 Equity Incentive Plan (6)*
|
10.3
|
Form of Nonstatutory Stock Option Agreement under the Registrant's Amended and Restated 1996 Equity Incentive
Plan (6)*
|
10.4
|
Amended and Restated 2004 Stock Incentive Plan (7)*
|
10.5
|
Form of Incentive Stock Option Agreement under the Registrant's Amended and Restated 2004 Stock Incentive Plan (7)*
|
10.6
|
Form of Nonstatutory Stock Option Agreement under the Registrant's Amended and Restated 2004 Stock Incentive Plan (7)*
|
10.7
|
Form of Restricted Stock Agreement under the Registrant's Amended and Restated 2004 Stock Incentive Plan (7)*
|
10.8
|
Form of California Indemnification Agreement (8)
|
10.9
|
Form of Delaware Indemnification Agreement for officers (9)
|
10.10
|
Form of Delaware Indemnification Agreement for directors (9)
|
10.11
|
Official Payments Corporation 401(k) Plan, Summary Plan Description (8)*
|
10.12
|
Non-Statutory Stock Option Agreement between Official Payments Holdings, Inc. and Ronald L. Rossetti, dated July 26, 2006 (10)*
|
10.13
|
Option Grants awarded to Charles Berger, Morgan Guenther, and fifteen other employees, dated August 24, 2006 (11)*
|
10.14
|
Employment Agreement between Official Payments Holdings, Inc. and Keith Kendrick, dated June 30, 2008 (12)*
|
10.15
|
Official Payments Holdings, Inc. Executive Performance Stock Unit Plan (13)*
|
10.16
|
Employment Agreement between Official Payments Holdings, Inc. and Keith Omsberg, effective as of May 6, 2009 (14)*
|
10.17
|
Solicitation/Contract/Order for Commercial Items dated April 3, 2009 between the Internal Revenue Service and
|
Exhibit number
|
Exhibit description
|
|
Official Payments Corporation (15)
|
10.18
|
Amendment of Solicitation/Modification of Contract No. 0001 dated October 30, 2009 between the Internal Revenue Service and Official Payments Corporation (15)
|
10.19
|
Amendment of Solicitation/Modification of Contract No. 0002 dated January 4, 2010 between the Internal Revenue Service and Official Payments Corporation (15)
|
10.20
|
Amendment of Solicitation/Modification of Contract No. 0003 dated March 29, 2010 between the Internal Revenue Service and Official Payments Corporation (15)
|
10.21
|
Amendment of Solicitation/Modification of Contract No. 0004 dated March 30, 2010 between the Internal Revenue Service and Official Payments Corporation (15)
|
10.22
|
Amendment of Solicitation/Modification of Contract No. 0005 dated April 15, 2010 between the Internal Revenue Service and Official Payments Corporation (15)
|
10.23
|
Deed of Lease agreement between Official Payments Holdings, Inc. and Sunrise Campus Investors, LLC, dated December 9, 2009. (16)
|
10.24
|
Employment Agreement between Official Payments Holdings, Inc. and Alex P. Hart, dated August 10, 2010 (17)
|
10.25
|
First amendment to Employment Agreement between Official Payments Holdings, Inc and Alex P. Hart, dated August 13, 2010 (18)
|
10.26
|
Severance Agreement and Release of Claims dated August 17, 2010 between Nina Vellayan and Official Payments Holdings, Inc. (19)
|
10.27
|
Amendment of Solicitation/Modification of Contract No. 0006 dated July 12, 2010 between the Internal Revenue Service and Official Payments Corporation (20)
|
10.28
|
Letter of amendment to Employment Agreement dated November 3, 2010, between Keith Omsberg and Official Payments Holdings, Inc. (21)*
|
10.29
|
Employment Agreement between Official Payments Holdings, Inc. and Atul Garg, dated December 21, 2011 (21) *
|
10.30
|
Nonstatutory Stock Option Agreement for Inducement Grant between Official Payments Holdings, Inc. and Alex P. Hart (21) *
|
10.31
|
Incentive and Nonstatutory Stock Option Agreement between Official Payments Holdings, Inc. and Alex P. Hart (21) *
|
10.32
|
Amendment of Solicitation/Modification of Contract No. 0007 dated December 30, 2010 between the Internal Revenue Service and Official Payments Corporation (22)
|
10.33
|
Separation Agreement and Release effective as of the Separation Date (defined therein) between Official Payments Holdings, Inc. and Ronald L. Rossetti (23)
|
10.34
|
Agreement dated February 19, 2011 among Discovery Equity Partners, L.P., Discovery Group I, LLC, Daniel J. Donoghue, Michael R. Murphy and the Company (24)
|
10.35
|
Severance Agreement and Release of Claims dated March 4, 2011 between Ronald W. Johnston and the Company (25)
|
10.36
|
Amendment of Solicitation/Modification of Contract No. 0008 dated March 9, 2011 between the Internal Revenue Service and Official Payments Corporation (26)
|
10.37
|
Amendment of Solicitation/Modification of Contract No. 0009 dated April 6, 2011 between the Internal Revenue Service and Official Payments Corporation (26)
|
10.38
|
Employment Agreement dated December 13, 2010 between Official Payments Holdings, Inc. and Sandip Mohapatra (26)*
|
Exhibit number
|
Exhibit description
|
10.39
|
Management Incentive Plan for fiscal year 2011 (27)*
|
10.40
|
Employment Agreement dated as of May 24, 2011 between Official Payments Holdings, Inc. and Jeffrey W. Hodges (28)*
|
10.41
|
Nonstatutory Stock Option Agreement for Inducement Grant dated as of June 13, 2011 between Official Payments Holdings, Inc. and Jeffrey W. Hodges (29)*
|
10.42
|
Employment Agreement dated as of May 26, 2011 between Official Payments Holdings, Inc. and Sandip Mohapatra (29)*
|
10.43
|
Change in Control Equity Vesting Acceleration Plan (30)*
|
10.44
|
Sublease Agreement between Fair Isaac Corporation and Official Payments Holdings, Inc., dated September 16, 2011 (31)
|
10.45
|
Management Incentive Plan for fiscal year 2012 (32)*
|
10.46
|
Form of Incentive and Nonstatutory Stock Option Agreement under Official Payments Holdings, Inc.'s Amended and Restated 2004 Stock Incentive Plan (33)*
|
10.47
|
Employment Agreement dated May 4, 2012 between Official Payments Holdings, Inc. and Keith Omsberg (34)*
|
10.48
|
Letter Agreement effective as of August 31, 2012 between Official Payments Holdings, Inc. and Keith Kendrick (35)*
|
10.49
|
Management Incentive Plan for fiscal year 2013
|
10.50
|
Letter Agreement dated December 12, 2012 between Official Payments Holdings, Inc. and Atul Garg
|
16.1
|
Letter from McGladrey LLP dated April 16, 2012 (36)
|
21.1
|
Subsidiaries of the Registrant
|
23.1
|
Consent of Ernst & Young LLP, Independent Registered Public Accounting Firm
|
23.2
|
Consent of McGladrey LLP, Independent Registered Public Accounting Firm
|
31.1
|
Certification of Chief Executive Officer pursuant to Rules 13a-14(a) and 15d-14(a) promulgated under the Securities Exchange Act of 1934
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31.2
|
Certification of Chief Financial Officer pursuant to Rules 13a-14(a) and 15d-14(a) promulgated under the Securities Exchange Act of 1934
|
31.3
|
Certification of Chief Executive Officer pursuant to Rules 13a-14(a) and 15d-14(a) promulgated under the Securities Exchange Act of 1934 †
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31.4
|
Certification of Chief Financial Officer pursuant to Rules 13a-14(a) and 15d-14(a) promulgated under the Securities Exchange Act of 1934 †
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32.1
|
Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
32.2
|
Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
101.INS
|
XBRL Instance Document **
|
101.SCH
|
Taxonomy Extension Schema Document **
|
101.CAL
|
XBRL Taxonomy Calculation Linkbase Document **
|
Exhibit number
|
Exhibit description
|
101.DEF
|
XBRL Taxonomy Definition Linkbase Document **
|
101.LAB
|
XBRL Taxonomy Label Linkbase Document **
|
101.PRE
|
XBRL Taxonomy Presentation Linkbase Document **
|
† Filed as an exhibit to this report
* Management contract or compensatory plan required to be filed as an exhibit to this report
** XBRL (Extensible Business Reporting Language) information is furnished and not filed herewith, is not a part of a registration statement or Prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, is deemed not filed for purposes of section 18 of the Securities Exchange Act of 1934, and otherwise is not subject to liability under these sections.
(1) Filed as an exhibit to Form 8-K, filed July 7, 2008, and incorporated herein by reference
(2) Filed as an exhibit to Form 8-K, filed on January 20, 2009, and incorporated herein by reference
(3) Filed as an exhibit to Form 10-Q, filed on February 8, 2012, and incorporated herein by reference
(4) Filed as an exhibit to Form 8-K, filed on January 12, 2012, and incorporated herein by reference
(5) Filed as an exhibit to Form 10-Q, filed May 11, 2001, and incorporated herein by reference
(6) Filed as an exhibit to Form 8-K, filed November 12, 2004, and incorporated herein by reference
(7) Filed as an exhibit to Form 8-K, filed July 5, 2005 and incorporated herein by reference
(8) Filed as an exhibit to Form S-1 (No. 333-37661), filed on October 10, 1997, and incorporated herein by reference
(9) Filed as an exhibit to Form 10-K, filed December 14, 2007, and incorporated herein by reference
(10) Filed as an exhibit to Form 8-K, filed August 1, 2006, and incorporated herein by reference
(11) Filed as a Form 8-K, filed August 29, 2006, and incorporated herein by reference
(12) Filed as an exhibit to Form 8-K, filed July 7, 2008, and incorporated herein by reference
(13) Filed as a Form 8-K, filed January 22, 2009, and incorporated herein by reference
(14) Filed as an exhibit to Form 8-K, filed May 19, 2009, and incorporated herein by reference
(15) Filed as an exhibit to Form 10-K/A (Amendment 3), filed June 22, 2010 and incorporated herein by reference
(16) Filed as an exhibit to Form 10-Q, filed February 9, 2010, and incorporated herein by reference
(17) Filed as an exhibit to Form 8-K, filed August 11, 2010, and incorporated herein by reference
(18) Filed as an exhibit to Form 8-K, filed August 18, 2010, and incorporated herein by reference
(19) Filed as an exhibit to Form 8-K, filed August 18, 2010, and incorporated herein by reference
(20) Filed as an exhibit to Form 10-K/A (Amendment 2) filed April 15, 2011, and incorporated herein by reference
(21) Filed as an exhibit to Form 8-K filed December 23, 2011, and incorporated herein by reference
(22) Filed as an exhibit to Form 10-Q, filed February 7, 2011, and incorporated herein by reference
(23) Filed as an exhibit to Form 8-K, filed January 4, 2011, and incorporated herein by reference
(24) Filed as an exhibit to Form 8-K, filed February 22, 2011, and incorporated herein by reference
(25) Filed as an exhibit to Form 8-K, filed March 10, 2011, and incorporated herein by reference
(26) Filed as an exhibit to Form 10-Q, filed May 9, 2011, and incorporated herein by reference
(27) Filed as an exhibit to Form 8-K, filed May 16, 2011, and incorporated herein by reference
(28) Filed as an exhibit to Form 8-K, filed June 13, 2011, and incorporated herein by reference
(29) Filed as an exhibit to Form 10-Q, filed August 9, 2011, and incorporated herein by reference
(30) Filed as an exhibit to Form 8-K, filed November 8, 2011, and incorporated herein by reference
(31) Filed as an exhibit to Form 10-K, filed December 6, 2011, and incorporated herein by reference
(32) Filed as an exhibit to Form 10-K, filed December 6, 2011, and incorporated herein by reference
(33) Filed as an exhibit to Form 10-K, filed December 6, 2011, and incorporated herein by reference
(34) Filed as an exhibit to Form 10-Q, filed May 10, 2012, and incorporated herein by reference
(35) Filed as an exhibit to Form 8-K, filed September 13, 2012, and incorporated herein by reference
(36) Filed as an exhibit to Form 8-K, filed April 16, 2012, and incorporated herein by reference
|
|
OFFICIAL PAYMENTS HOLDINGS, INC.
|
|
Dated: January 28, 2013
|
By:
|
/s/ ALEX P. HART
Alex P. Hart
President, Chief Executive Officer
|
Signature
|
Title
|
Date
|
|
|
|
/s/ ALEX P. HART
Alex P. Hart
|
President, Chief Executive Officer (principal executive officer)
|
January 28, 2013
|
/s/ JEFF HODGES
Jeff Hodges
|
Chief Financial Officer (principal financial officer and principal accounting officer)
|
January 28, 2013
|
/s/ CHARLES W. BERGER
Charles W. Berger
|
Director
|
January 28, 2013
|
/s/ MORGAN P. GUENTHER
Morgan P. Guenther
|
Director
|
January 28, 2013
|
/s/ JAMES C. HALE
James C. Hale
|
Director
|
January 28, 2013
|
/s/ PHILIP G. HEASLEY
Philip G. Heasley
|
Director
|
January 28, 2013
|
/s/ DAVID A. POE
David A. Poe
|
Director
|
January 28, 2013
|
/s/ ZACHARY F. SADEK
Zachary F. Sadek
|
Director
|
January 28, 2013
|
/s/ KATHERINE A. SCHIPPER
Katherine A. Schipper
|
Director
|
January 28, 2013
|