-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Usd5yLDxeTqrx+nATzk8YMBcT0a0yBuO8BK9Av522pHLCvFC97sEpCr53lDKICQL +d51/W631RcuOAXQ4cbTUg== 0001193805-06-000928.txt : 20060406 0001193805-06-000928.hdr.sgml : 20060406 20060406071236 ACCESSION NUMBER: 0001193805-06-000928 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 5 FILED AS OF DATE: 20060406 DATE AS OF CHANGE: 20060406 GROUP MEMBERS: ADMIRAL ADVISORS, LLC GROUP MEMBERS: ARCADIA CAPITAL MANAGEMENT, LLC GROUP MEMBERS: ARCADIA PARTNERS, L.P. GROUP MEMBERS: BARINGTON CAPITAL GROUP, L.P. GROUP MEMBERS: BARINGTON COMPANIES ADVISORS, LLC GROUP MEMBERS: BARINGTON COMPANIES EQUITY PARTNERS, L.P. GROUP MEMBERS: BARINGTON COMPANIES INVESTORS, LLC GROUP MEMBERS: BARINGTON COMPANIES OFFSHORE FUND, LTD. GROUP MEMBERS: BARINGTON INVESTMENTS, L.P. GROUP MEMBERS: C4S & CO., L.L.C. GROUP MEMBERS: EDWARD TERINO GROUP MEMBERS: JAMES MITAROTONDA GROUP MEMBERS: JEFFREY C. SMITH GROUP MEMBERS: JEFFREY D. GLIDDEN GROUP MEMBERS: JEFFREY M. SOLOMON GROUP MEMBERS: LNA CAPITAL CORP. GROUP MEMBERS: MORGAN B. STARK GROUP MEMBERS: PARCHE, LLC GROUP MEMBERS: PETER A. COHEN GROUP MEMBERS: RAMIUS ADVISORS, LLC GROUP MEMBERS: RAMIUS MASTER FUND, LTD. GROUP MEMBERS: RCG AMBROSE MASTER FUND, LTD. GROUP MEMBERS: RCG HALIFAX FUND, LTD. GROUP MEMBERS: RICHARD ROFE GROUP MEMBERS: STARBOARD VALUE AND OPPORTUNITY MASTER FUND LTD. GROUP MEMBERS: THOMAS W. STRAUSS GROUP MEMBERS: WILLIAM J. FOX SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: S1 CORP /DE/ CENTRAL INDEX KEY: 0001063254 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER PROGRAMMING, DATA PROCESSING, ETC. [7370] IRS NUMBER: 582395199 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-54731 FILM NUMBER: 06743775 BUSINESS ADDRESS: STREET 1: 3500 LENOX ROAD STREET 2: SUITE 200 CITY: ATLANTA STATE: GA ZIP: 30326 BUSINESS PHONE: 4049233500 MAIL ADDRESS: STREET 1: 3500 LENOX ROAD STREET 2: SUITE 200 CITY: ATLANTA STATE: GA ZIP: 30326 FORMER COMPANY: FORMER CONFORMED NAME: SECURITY FIRST TECHNOLOGIES CORP DATE OF NAME CHANGE: 19980603 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: RAMIUS CAPITAL GROUP LLC CENTRAL INDEX KEY: 0001050154 IRS NUMBER: 133937658 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: 666 THIRD AVENUE STREET 2: 26TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10017 BUSINESS PHONE: 2128457900 MAIL ADDRESS: STREET 1: 666 THIRD AVENUE STREET 2: 26TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10017 SC 13D/A 1 e600415_sc13da-s1.txt SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 -------------- SCHEDULE 13D (Rule 13d-101) INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO RULE 13d-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO RULE 13d-2(a) (Amendment No. 2)(1) S1 Corporation ---------------- (Name of Issuer) Common Stock, $.01 Par Value ------------------------------ (Title of Class of Securities) 78463B101 -------------- (CUSIP Number) STEVEN WOLOSKY, ESQ. OLSHAN GRUNDMAN FROME ROSENZWEIG & WOLOSKY LLP Park Avenue Tower 65 East 55th Street New York, New York 10022 (212) 451-2300 --------------------------------------------- (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) April 3, 2006 ------------------------------------------------------- (Date of Event Which Requires Filing of This Statement) If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the following box |_|. Note. Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See Rule 13d-7 for other parties to whom copies are to be sent. (Continued on following pages) (Page 1 of 46 Pages) - ---------- (1) The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page. The information required on the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes). CUSIP No. 78463B101 13D Page 2 of 46 Pages - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) STARBOARD VALUE AND OPPORTUNITY MASTER FUND LTD. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X| (b) |_| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* WC - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Cayman Islands - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 3,675,154 ----------------------------------------------------------------- NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY - 0 - OWNED BY ----------------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON 3,675,154 WITH ----------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER - 0 - - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 3,675,154 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 5.2% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* CO - -------------------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! CUSIP No. 78463B101 13D Page 3 of 46 Pages - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) PARCHE, LLC 20-0870632 - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X| (b) |_| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* WC - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 908,903 ----------------------------------------------------------------- NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY - 0 - OWNED BY ----------------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON 908,903 WITH ----------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER - 0 - - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 908,903 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 1.3% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* OO - -------------------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! CUSIP No. 78463B101 13D Page 4 of 46 Pages - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) RCG AMBROSE MASTER FUND, LTD. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X| (b) |_| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* WC - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Cayman Islands - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 128,674 ----------------------------------------------------------------- NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY - 0 - OWNED BY ----------------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON 128,674 WITH ----------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER - 0 - - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 128,674 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) Less than 1% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* CO - -------------------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! CUSIP No. 78463B101 13D Page 5 of 46 Pages - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) RCG HALIFAX FUND, LTD. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X| (b) |_| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* WC - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Cayman Islands - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 133,919 ----------------------------------------------------------------- NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY - 0 - OWNED BY ----------------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON 133,919 WITH ----------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER - 0 - - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 133,919 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) Less than 1% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* CO - -------------------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! CUSIP No. 78463B101 13D Page 6 of 46 Pages - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) RAMIUS MASTER FUND, LTD. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X| (b) |_| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* WC - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Cayman Islands - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 602,960 ----------------------------------------------------------------- NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY - 0 - OWNED BY ----------------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON 602,960 WITH ----------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER - 0 - - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 602,960 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) Less than 1% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* CO - -------------------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! CUSIP No. 78463B101 13D Page 7 of 46 Pages - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) ADMIRAL ADVISORS, LLC 37-1484525 - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X| (b) |_| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* OO - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 4,584,057 ----------------------------------------------------------------- NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY - 0 - OWNED BY ----------------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON 4,584,057 WITH ----------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER - 0 - - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 4,584,057 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 6.5% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* IA, OO - -------------------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! CUSIP No. 78463B101 13D Page 8 of 46 Pages - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) RAMIUS ADVISORS, LLC 13-3954331 - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X| (b) |_| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* OO - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 602,960 ----------------------------------------------------------------- NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY - 0 - OWNED BY ----------------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON 602,960 WITH ----------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER - 0 - - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 602,960 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) Less than 1% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* IA, OO - -------------------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! CUSIP No. 78463B101 13D Page 9 of 46 Pages - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) RAMIUS CAPITAL GROUP, L.L.C. 13-3937658 - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X| (b) |_| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* OO - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 5,449,610 ----------------------------------------------------------------- NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY - 0 - OWNED BY ----------------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON 5,449,610 WITH ----------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER - 0 - - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 5,449,610 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 7.7% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* IA, OO - -------------------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! CUSIP No. 78463B101 13D Page 10 of 46 Pages - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) C4S & CO., L.L.C. 13-3946794 - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X| (b) |_| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* OO - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 5,449,610 ----------------------------------------------------------------- NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY - 0 - OWNED BY ----------------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON 5,449,610 WITH ----------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER - 0 - - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 5,449,610 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 7.7% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* OO - -------------------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! CUSIP No. 78463B101 13D Page 11 of 46 Pages - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) PETER A. COHEN - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X| (b) |_| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* OO - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION USA - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER -0- ----------------------------------------------------------------- NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY 5,449,610 OWNED BY ----------------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON -0- WITH ----------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 5,449,610 - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 5,449,610 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 7.7% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* IN - -------------------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! CUSIP No. 78463B101 13D Page 12 of 46 Pages - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) MORGAN B. STARK - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X| (b) |_| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* OO - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION USA - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER -0- ----------------------------------------------------------------- NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY 5,449,610 OWNED BY ----------------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON -0- WITH ----------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 5,449,610 - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 5,449,610 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 7.7% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* IN - -------------------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! CUSIP No. 78463B101 13D Page 13 of 46 Pages - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) JEFFREY M. SOLOMON - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X| (b) |_| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* OO - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION USA - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER -0- ----------------------------------------------------------------- NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY 5,449,610 OWNED BY ----------------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON -0- WITH ----------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 5,449,610 - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 5,449,610 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 7.7% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* IN - -------------------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! CUSIP No. 78463B101 13D Page 14 of 46 Pages - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) THOMAS W. STRAUSS - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X| (b) |_| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* OO - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION USA - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER -0- ----------------------------------------------------------------- NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY 5,449,610 OWNED BY ----------------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON -0- WITH ----------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 5,449,610 - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 5,449,610 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 7.7% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* IN - -------------------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! CUSIP No. 78463B101 13D Page 15 of 46 Pages - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) BARINGTON COMPANIES EQUITY PARTNERS, L.P. 13-4088890 - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X| (b) |_| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* WC - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 335,877 ----------------------------------------------------------------- NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY - 0 - OWNED BY ----------------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON 335,877 WITH ----------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER - 0 - - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 335,877 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) Less than 1% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* PN - -------------------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! CUSIP No. 78463B101 13D Page 16 of 46 Pages - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) BARINGTON COMPANIES INVESTORS, LLC 13-4126527 - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X| (b) |_| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* OO - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 335,877 ----------------------------------------------------------------- NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY - 0 - OWNED BY ----------------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON 335,877 WITH ----------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER - 0 - - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 335,877 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) Less than 1% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* OO - -------------------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! CUSIP No. 78463B101 13D Page 17 of 46 Pages - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) BARINGTON COMPANIES OFFSHORE FUND, LTD. (BVI) - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X| (b) |_| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* WC - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION British Virgin Islands - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 508,515 ----------------------------------------------------------------- NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY - 0 - OWNED BY ----------------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON 508,515 WITH ----------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER - 0 - - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 508,515 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) Less than 1% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* CO - -------------------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! CUSIP No. 78463B101 13D Page 18 of 46 Pages - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) BARINGTON INVESTMENTS, L.P. 20-2871525 - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X| (b) |_| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* WC - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 119,582 ----------------------------------------------------------------- NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY - 0 - OWNED BY ----------------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON 119,582 WITH ----------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER - 0 - - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 119,582 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) Less than 1% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* PN - -------------------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! CUSIP No. 78463B101 13D Page 19 of 46 Pages - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) BARINGTON COMPANIES ADVISORS, LLC 20-0327470 - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X| (b) |_| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* OO - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 628,097 ----------------------------------------------------------------- NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY - 0 - OWNED BY ----------------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON 628,097 WITH ----------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER - 0 - - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 628,097 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) Less than 1% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* IA, OO - -------------------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! CUSIP No. 78463B101 13D Page 20 of 46 Pages - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) BARINGTON CAPITAL GROUP, L.P. 13-3635132 - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X| (b) |_| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* OO - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION New York - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 963,974 ----------------------------------------------------------------- NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY - 0 - OWNED BY ----------------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON 963,974 WITH ----------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER - 0 - - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 963,974 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 1.4% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* PN - -------------------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! CUSIP No. 78463B101 13D Page 21 of 46 Pages - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) LNA CAPITAL CORP. 13-3635168 - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X| (b) |_| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* OO - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 963,974 ----------------------------------------------------------------- NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY - 0 - OWNED BY ----------------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON 963,974 WITH ----------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER - 0 - - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 963,974 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 1.4% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* CO - -------------------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! CUSIP No. 78463B101 13D Page 22 of 46 Pages - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) JAMES MITAROTONDA - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X| (b) |_| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* OO - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION USA - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 963,974 ----------------------------------------------------------------- NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY - 0 - OWNED BY ----------------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON 963,974 WITH ----------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER - 0 - - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 963,974 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 1.4% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* IN - -------------------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! CUSIP No. 78463B101 13D Page 23 of 46 Pages - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) ARCADIA PARTNERS, L.P. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X| (b) |_| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* WC - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 75,000 ----------------------------------------------------------------- NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY - 0 - OWNED BY ----------------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON 75,000 WITH ----------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER - 0 - - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 75,000 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) Less than 1% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* PN - -------------------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! CUSIP No. 78463B101 13D Page 24 of 46 Pages - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) ARCADIA CAPITAL MANAGEMENT, LLC - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X| (b) |_| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* WC - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 75,000 ----------------------------------------------------------------- NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY - 0 - OWNED BY ----------------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON 75,000 WITH ----------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER - 0 - - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 75,000 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) Less than 1% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* OO - -------------------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! CUSIP No. 78463B101 13D Page 25 of 46 Pages - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) RICHARD ROFE - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X| (b) |_| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* OO - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION USA - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 77,138 ----------------------------------------------------------------- NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY - 0 - OWNED BY ----------------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON 77,138 WITH ----------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER - 0 - - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 77,138 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) Less than 1% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* IN - -------------------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! CUSIP No. 78463B101 13D Page 26 of 46 Pages - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) JEFFREY C. SMITH - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X| (b) |_| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION USA - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER - 0 - ----------------------------------------------------------------- NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY - 0 - OWNED BY ----------------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON - 0 - WITH ----------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER - 0 - - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON - 0 - - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* IN - -------------------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! CUSIP No. 78463B101 13D Page 27 of 46 Pages - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) JEFFREY D. GLIDDEN - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X| (b) |_| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION USA - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER - 0 - ----------------------------------------------------------------- NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY - 0 - OWNED BY ----------------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON - 0 - WITH ----------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER - 0 - - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON - 0 - - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* IN - -------------------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! CUSIP No. 78463B101 13D Page 28 of 46 Pages - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) WILLIAM J. FOX - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X| (b) |_| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION USA - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER - 0 - ----------------------------------------------------------------- NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY - 0 - OWNED BY ----------------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON - 0 - WITH ----------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER - 0 - - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON - 0 - - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* IN - -------------------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! CUSIP No. 78463B101 13D Page 29 of 46 Pages - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) EDWARD TERINO - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X| (b) |_| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION USA - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER - 0 - ----------------------------------------------------------------- NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY - 0 - OWNED BY ----------------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON - 0 - WITH ----------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER - 0 - - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON - 0 - - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* IN - -------------------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! CUSIP No. 78463B101 13D Page 30 of 46 Pages The following constitutes Amendment No. 2 ("Amendment No. 2") to the Schedule 13D filed by the undersigned. This Amendment No. 2 amends the Schedule 13D as specifically set forth. Item 2 is hereby amended to add the following: Jeffrey C. Smith, Jeffrey D. Glidden, William J. Fox and Edward Terino are hereby added as Reporting Persons to the Schedule 13D. Jeffrey C. Smith ("Mr. Smith") is a nominee for the Board of Directors of the Issuer and his principal occupation is serving as a Managing Director of Ramius Capital. The principal business address of Mr. Smith is 666 Third Avenue, 26th Floor, New York, New York 10017. Mr. Smith is a citizen of the United States of America. Jeffrey D. Glidden ("Mr. Glidden") is a nominee for the Board of Directors of the Issuer and his principal occupation is serving as Vice President and Chief Financial Officer of Airvana, Inc. The principal business address of Mr. Glidden is c/o Airvana, Inc., 19 Alpha Road, Chelmsford, Massachusetts 01824. Mr. Glidden is a citizen of the United States of America. William J. Fox ("Mr. Fox") is a nominee for the Board of Directors of the Issuer and his principal occupation is serving as President and Chief Executive Officer of L Q Corporation, Inc. and as the Vice Chairman of Barington Capital and certain of its affiliates. The principal business address of Mr. Fox is c/o Barington Capital Group, L.P., 888 Seventh Avenue, 17th Floor, New York, New York 10019. Mr. Fox is a citizen of the United States of America. Edward Terino ("Mr. Terino") is a nominee for the Board of Directors of the Issuer and his principal occupation is serving as Co-Chief Executive Officer and Chief Financial Officer of Arlington Tankers Ltd. The principal business address of Mr. Terino is c/o Arlington Tankers Ltd, 191 Post Road West, Westport, Connecticut 06880. Mr. Terino is a citizen of the United States of America. No Reporting Person has, during the last five years, been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors). No Reporting Person has, during the last five years, been party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of such proceeding was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws. The final two paragraphs of Item 2(a) are hereby amended and restated as follows: Each of the foregoing is referred to as a "Reporting Person" and collectively as the "Reporting Persons." As of April 4, 2006, the Reporting Persons were the beneficial owners of, in the aggregate, 6,490,722 Shares, representing approximately 9.2% of the Shares presently outstanding. Each of the Reporting Persons is party to that certain Joint Filing Agreement, as further described in Item 6. Accordingly, the Reporting Persons are hereby filing a joint Schedule 13D. CUSIP No. 78463B101 13D Page 31 of 46 Pages Information with respect to each of the Reporting Persons is given solely by such Reporting Person and no Reporting Person shall have responsibility for the accuracy or completeness of information supplied by another Reporting Person. The second paragraph of Item 2(c) is hereby amended and restated as follows: The principal business of each of Barington Companies Equity, Barington Companies Offshore, Barington Investments and Barington Capital is acquiring, holding and disposing of investments in various companies. The principal business of Barington Companies Advisors is serving as the investment advisor of Barington Companies Offshore and the general partner of Barington Investments. The principal business of Barington Companies Investors is serving as the general partner of Barington Companies Equity. The principal business of LNA is serving as the general partner of Barington Capital. Item 2(f) is hereby amended to add the following: Each other person identified in Item is a citizen of the United States, other than Graham Cook, a director of Barington Companies Offshore, who is a citizen of the United Kingdom, and Jonathan Clipper, a director of Barington Companies Offshore, who is a citizen of Bermuda and the United Kingdom. The first paragraph of Item 3 is hereby amended and restated as follows: The Shares purchased by Starboard, Parche, RCG Ambrose, RCG Halifax, Ramius Master, Barington Companies Equity, Barington Companies Offshore and Barington Investments were purchased with the working capital of such entities (which may, at any given time, include margin loans made by brokerage firms in the ordinary course of business) in open market purchases, except as otherwise noted, as set forth in Schedule A, which is incorporated by reference herein. The aggregate purchase cost of the 5,449,610 Shares beneficially owned in the aggregate by Starboard, Parche, RCG Ambrose, RCG Halifax and Ramius Master is approximately $23,472,535.67, including brokerage commissions. The aggregate purchase cost of the 963,974 Shares beneficially owned in the aggregate by Barington Companies Equity, Barington Companies Offshore and Barington Investments is approximately $4,074,830.64, including brokerage commissions. The aggregate purchase cost of the 75,000 Shares beneficially owned in the aggregate by Arcadia Partners and Arcadia Capital is approximately $309,750, including brokerage commissions. The aggregate purchase cost of the 2,138 Shares owned personally by Mr. Rofe and purchased with Mr. Rofe's personal funds is approximately $8,829.94. Item 4 is hereby amended to add the following: The Reporting Persons continue to believe that the Shares of the Issuer are undervalued and that the best way to maximize shareholder value is through the sale of the Issuer. In response to their Schedule 13D filing, the Reporting Persons have received unsolicited calls from potential acquirers and/or agents for potential acquirers, both strategic and financial, who have expressed an interest in participating in a sale process relating to the Issuer. CUSIP No. 78463B101 13D Page 32 of 46 Pages The Reporting Persons are currently considering various options available to them as shareholders, and in order to preserve their rights, on April 3, 2006, Starboard delivered a letter to the Issuer (the "Nomination Letter") nominating Jeffrey D. Glidden and Jeffrey C. Smith, as set forth therein, for election to the Issuer's Board of Directors (the "Board") at the Issuer's 2006 annual meeting of shareholders, or any other meeting of shareholders held in lieu thereof, and any adjournments, postponements, reschedulings or continuations thereof (the "2006 Annual Meeting"). A copy of this letter is attached hereto as Exhibit 4 and is incorporated herein by reference. Also in the Nomination Letter, Starboard proposed certain amendments to the Issuer's Amended and Restated Bylaws for consideration at the 2006 Annual Meeting, including amendments (i) to allow only shareholders to fix the number of directors of the Issuer and to expand the size of the Issuer's Board by three seats, (ii) to allow newly created directorships resulting from an increase in the size of the Issuer's Board to be filled only by a vote of the shareholders and (iii) to allow shareholders holding at least one-tenth of the outstanding capital stock of the Issuer to call a special meeting of shareholders, a right which the Issuer recently removed from shareholders. In the event that bylaw proposals (i) and (ii) above are approved, Starboard also gave notice to the Issuer of its intention to elect Edward Terino, William J. Fox and Richard S. Rofe as directors at the 2006 Annual Meeting to fill the vacancies created by the increase in the size of the Issuer's Board. The Reporting Persons believe that the deadline for submission of director nominations and business proposals for the 2006 Annual Meeting has not expired. The Reporting Persons may choose, in their sole discretion, to modify the proposals and the director nominations, including the number of nominees, set forth in the Nomination Letter for any reason including, but not limited to, as a response to any action taken by the Issuer in response to the submission of the Nomination Letter, as a result of the Reporting Persons' views on their ability to successfully implement their proposals or as a result of the Reporting Persons' belief that additional proposals may be necessary to improve the Issuer's corporate governance. On April 4, 2006, Starboard delivered a letter to the Issuer demanding to inspect a list of shareholders as of the record date set for the 2006 Annual Meeting and certain other corporate records of the Issuer pursuant to Section 220 of the Delaware General Corporation Law. The purpose of such demand is to allow the Reporting Persons to communicate with the Issuer's shareholders on Starboard's director nominations, shareholder proposals and other matters relating to the Issuer's corporate governance and operations. A copy of this letter is attached hereto as Exhibit 5 and is incorporated herein by reference. Item 5 is hereby amended and restated as follows: The aggregate percentage of Shares reported owned by each person named herein is based upon 70,453,355 Shares outstanding, which is the total number of Shares outstanding as reported in the Issuer's Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 16, 2006. A. Starboard CUSIP No. 78463B101 13D Page 33 of 46 Pages (a) As of April 4, 2006, Starboard beneficially owned 3,675,154 Shares. Percentage: Approximately 5.2% (b) 1. Sole power to vote or direct vote: 3,675,154 2. Shared power to vote or direct vote: 0 3. Sole power to dispose or direct the disposition: 3,675,154 4. Shared power to dispose or direct the disposition: 0 (c) The number of Shares acquired by Starboard since March 30, 2006 is set forth in Schedule A and is incorporated by reference. B. Parche (a) As of April 4, 2006, Parche beneficially owned 908,903 Shares. Percentage: Approximately 1.3% (b) 1. Sole power to vote or direct vote: 908,903 2. Shared power to vote or direct vote: 0 3. Sole power to dispose or direct the disposition: 908,903 4. Shared power to dispose or direct the disposition: 0 (c) The number of Shares acquired by Parche since March 30, 2006 is set forth in Schedule A and is incorporated by reference. C. RCG Ambrose (a) As of April 4, 2006, RCG Ambrose beneficially owned 128,674 Shares. Percentage: Less than 1% (b) 1. Sole power to vote or direct vote: 128,674 2. Shared power to vote or direct vote: 0 3. Sole power to dispose or direct the disposition: 128,674 4. Shared power to dispose or direct the disposition: 0 (c) RCG Ambrose has not acquired Shares since March 30, 2006. D. RCG Halifax (a) As of April 4, 2006, RCG Halifax beneficially owned 133,919 Shares. Percentage: Less than 1% (b) 1. Sole power to vote or direct vote: 133,919 2. Shared power to vote or direct vote: 0 3. Sole power to dispose or direct the disposition: 133,919 4. Shared power to dispose or direct the disposition: 0 (c) RCG Halifax has not acquired Shares since March 30, 2006. CUSIP No. 78463B101 13D Page 34 of 46 Pages E. Ramius Master (a) As of April 4, 2006, Ramius Master beneficially owned 602,960 Shares. Percentage: Less than 1% (b) 1. Sole power to vote or direct vote: 602,960 2. Shared power to vote or direct vote: 0 3. Sole power to dispose or direct the disposition: 602,960 4. Shared power to dispose or direct the disposition: 0 (c) Ramius Master has not acquired Shares since March 30, 2006. F. Admiral Advisors (a) As of April 4, 2006, as the investment manager of Starboard and the managing member of Parche, Admiral Advisors may be deemed the beneficial owner of (i) 3,675,154 Shares owned by Starboard and (ii) 908,903 Shares owned by Parche. Percentage: Approximately 6.5% (b) 1. Sole power to vote or direct vote: 4,584,057 2. Shared power to vote or direct vote: 0 3. Sole power to dispose or direct the disposition: 4,584,057 4. Shared power to dispose or direct the disposition: 0 (c) Admiral Advisors has not entered into any transactions in the Shares since March 30, 2006. The transactions in the Shares since March 30, 2006 on behalf of Starboard and Parche, which, except as otherwise noted, were all in the open market, are set forth in Schedule A, and are incorporated by reference. G. Ramius Advisors (a) As of April 4, 2006, as the investment advisor of Ramius Master, Ramius Advisors may be deemed the beneficial owner of 602,960 Shares owned by Ramius Master. Percentage: Less than 1% (b) 1. Sole power to vote or direct vote: 602,960 2. Shared power to vote or direct vote: 0 3. Sole power to dispose or direct the disposition: 602,960 4. Shared power to dispose or direct the disposition: 0 (c) Neither Ramius Advisors nor Ramius Master has entered into any transactions in the Shares since March 30, 2006. CUSIP No. 78463B101 13D Page 35 of 46 Pages H. Ramius Capital (a) As of April 4, 2006, as the sole member of Admiral Advisors and Ramius Advisors (the investment manager of Ramius Master) and as the investment manager of RCG Halifax and RCG Ambrose, Ramius Capital may be deemed the beneficial owner of (i) 3,675,154 shares owned by Starboard, (ii) 908,903 Shares owned by Parche, (iii) 128,674 Shares owned by RCG Ambrose, (iv) 133,919 Shares owned by RCG Halifax and (v) 602,960 Shares owned by Ramius Master. Percentage: Approximately 7.7% (b) 1. Sole power to vote or direct vote: 5,449,610 2. Shared power to vote or direct vote: 0 3. Sole power to dispose or direct the disposition: 5,449,610 4. Shared power to dispose or direct the disposition: 0 (c) Ramius Capital did not enter into any transactions in the Shares since March 30, 2006. The transactions in the Shares since March 30, 2006 on behalf of Starboard and Parche are set forth in Schedule A, and are incorporated herein by reference. I. C4S (a) As of April 4, 2006, as the managing member of Ramius Capital, C4S may be deemed the beneficial owner of (i) 3,675,154 shares owned by Starboard, (ii) 908,903 Shares owned by Parche, (iii) 128,674 Shares owned by RCG Ambrose, (iv) 133,919 Shares owned by RCG Halifax and (v) 602,960 Shares owned by Ramius Master. Percentage: Approximately 7.7% (b) 1. Sole power to vote or direct vote: 5,449,610 2. Shared power to vote or direct vote: 0 3. Sole power to dispose or direct the disposition: 5,449,610 4. Shared power to dispose or direct the disposition: 0 (c) C4S did not enter into any transactions in the Shares since March 30, 2006. The transactions in the Shares since March 30, 2006 on behalf of Starboard and Parche are set forth in Schedule A and are incorporated by reference. CUSIP No. 78463B101 13D Page 36 of 46 Pages J. Mr. Cohen, Mr. Stark, Mr. Strauss and Mr. Solomon (a) As of April 4, 2006, as the managing members of C4S, each of Mr. Cohen, Mr. Stark, Mr. Strauss and Mr. Solomon may be deemed the beneficial owner of (i) 3,675,154 shares owned by Starboard, (ii) 908,903 Shares owned by Parche, (iii) 128,674 Shares owned by RCG Ambrose, (iv) 133,919 Shares owned by RCG Halifax and (v) 602,960 Shares owned by Ramius Master. Each of Messrs. Cohen, Stark, Solomon and Strauss share voting and dispositive power with respect to the Shares owned by Starboard, Parche, RCG Ambrose, RCG Halifax and Ramius Master by virtue of their shared authority to vote and dispose of such Shares. Messrs. Cohen, Stark, Solomon and Strauss disclaim beneficial ownership of such Shares. Percentage: Approximately 7.7% (b) 1. Sole power to vote or direct vote: 0 2. Shared power to vote or direct vote: 5,449,610 3. Sole power to dispose or direct the disposition: 0 4. Shared power to dispose or direct the disposition: 5,449,610 (c) None of Mr. Cohen, Mr. Stark, Mr. Strauss or Mr. Solomon have entered into any transactions in the Shares since March 30, 2006. The transactions in the Shares since March 30, 2006 on behalf of Starboard and Parche are set forth in Schedule A and are incorporated by reference. K. Barington Companies Equity (a) As of April 4, 2006, Barington Companies Equity beneficially owned 335,877 Shares. Percentage: Less than 1% (b) 1. Sole power to vote or direct vote: 335,877 2. Shared power to vote or direct vote: 0 3. Sole power to dispose or direct the disposition: 335,877 4. Shared power to dispose or direct the disposition: 0 (c) The number of Shares acquired by Barington Companies Equity since March 30, 2006 is set forth in Schedule A and is incorporated by reference. L. Barington Companies Investors (a) As of April 4, 2006, as the general partner of Barington Companies Equity, Barington Companies Investors may be deemed the beneficial owner of 335,877 Shares owned by Barington Companies Equity. Percentage: Less than 1% (b) 1. Sole power to vote or direct vote: 335,877 2. Shared power to vote or direct vote: 0 3. Sole power to dispose or direct the disposition: 335,877 4. Shared power to dispose or direct the disposition: 0 CUSIP No. 78463B101 13D Page 37 of 46 Pages (c) Barington Companies Investors did not enter into any transactions in the Shares since March 30, 2006. The transactions in the Shares since March 30, 2006 by Barington Companies Equity, which, except as otherwise noted, were all in the open market, are set forth in Schedule A, and are incorporated by reference. M. Barington Companies Offshore (a) As of April 4, 2006, Barington Companies Offshore beneficially owned 508,515 Shares. Percentage: Less than 1% (b) 1. Sole power to vote or direct vote: 508,515 2. Shared power to vote or direct vote: 0 3. Sole power to dispose or direct the disposition: 508,515 4. Shared power to dispose or direct the disposition: 0 (c) The number of Shares acquired by Barington Companies Offshore since March 30, 2006 is set forth in Schedule A and is incorporated by reference. N. Barington Investments (a) As of April 4, 2006, Barington Investments beneficially owned 119,582 Shares. Percentage: Less than 1% (b) 1. Sole power to vote or direct vote: 119,582 2. Shared power to vote or direct vote: 0 3. Sole power to dispose or direct the disposition: 119,582 4. Shared power to dispose or direct the disposition: 0 (c) The number of Shares acquired by Barington Investments since March 30, 2006 is set forth in Schedule A and is incorporated by reference. O. Barington Companies Advisors (a) As of April 4, 2006, as the investment advisor of Barington Companies Offshore and the general partner of Barington Investments, Barington Companies Advisors may be deemed the beneficial owner of (i) 508,515 Shares owned by Barington Companies Offshore and (ii) 119,582 Shares owned by Barington Investments. Percentage: Less than 1% (b) 1. Sole power to vote or direct vote: 628,097 2. Shared power to vote or direct vote: 0 3. Sole power to dispose or direct the disposition: 628,097 4. Shared power to dispose or direct the disposition: 0 CUSIP No. 78463B101 13D Page 38 of 46 Pages (c) Barington Companies Advisors did not enter into any transactions in the Shares since March 30, 2006. The transactions in the Shares since March 30, 2006 by Barington Companies Offshore and Barington Investments, which, except as otherwise noted, were all in the open market, are set forth in Schedule A, and are incorporated by reference. P. Barington Capital (a) As of April 4, 2006, as the majority member of Barington Companies Investors and the Managing Member of Barington Companies Advisors, Barington Capital may be deemed the beneficial owner of (i) 508,515 Shares owned by Barington Companies Offshore, (ii) 335,877 Shares owned by Barington Companies Equity and (iii) 119,582 Shares owned by Barington Investments. Percentage: Approximately 1.4% (b) 1. Sole power to vote or direct vote: 963,974 2. Shared power to vote or direct vote: 0 3. Sole power to dispose or direct the disposition: 963,974 4. Shared power to dispose or direct the disposition: 0 (c) Barington Capital did not enter into any transactions in the Shares since March 30, 2006. The transactions in the Shares since March 30, 2006 by Barington Companies Offshore, Barington Companies Equity and Barington Investments are set forth in Schedule A, and are incorporated by reference. Q. LNA (a) As of April 4, 2006, as the general partner of Barington Capital, LNA may be deemed the beneficial owner of (i) 508,515 Shares owned by Barington Companies Offshore, (ii) 335,877 Shares owned by Barington Companies Equity and (iii) 119,582 Shares owned by Barington Investments. Percentage: Approximately 1.4% (b) 1. Sole power to vote or direct vote: 963,974 2. Shared power to vote or direct vote: 0 3. Sole power to dispose or direct the disposition: 963,974 4. Shared power to dispose or direct the disposition: 0 (c) LNA did not enter into any transactions in the Shares since March 30, 2006. The transactions in the Shares since March 30, 2006 by Barington Companies Offshore, Barington Compaines Equity and Barington Investments are set forth in Schedule A, and are incorporated by reference. CUSIP No. 78463B101 13D Page 39 of 46 Pages R. Mr. Mitarotonda (a) As of April 4, 2006, as the sole stockholder and director of LNA Capital Corp., Mr. Mitarotonda may be deemed the beneficial owner of (i) 335,877 Shares owned by Barington Companies Equity, (ii) 508,515 Shares owned by Barington Companies Offshore and (iii) 119,582 Shares owned by Barington Investments. Mr. Mitarotonda disclaims beneficial ownership of such Shares. Percentage: Approximately 1.4% (b) 1. Sole power to vote or direct vote: 963,974 2. Shared power to vote or direct vote: 0 3. Sole power to dispose or direct the disposition: 963,974 4. Shared power to dispose or direct the disposition: 0 (c) Mr. Mitarotonda did not enter into any transactions in the Shares since March 30, 2006. The number of Shares acquired by Barington Companies Equity, Barington Companies Offshore and Barington Investments since March 30, 2006 are set forth in Schedule A and are incorporated by reference. S. Arcadia Partners (a) As of April 4, 2006, Arcadia Partners beneficially owned 75,000 Shares. Percentage: Less than 1% (b) 1. Sole power to vote or direct vote: 75,000 2. Shared power to vote or direct vote: 0 3. Sole power to dispose or direct the disposition: 75,000 4. Shared power to dispose or direct the disposition: 0 (c) Arcadia Partners did not enter into any transactions in the Shares since March 30, 2006. T. Arcadia Capital (a) As of April 4, 2006, as the general partner of Arcadia Partners, Arcadia Capital may be deemed the beneficial owner of 75,000 Shares owned by Arcadia Partners. Percentage: Less than 1% (b) 1. Sole power to vote or direct vote: 75,000 2. Shared power to vote or direct vote: 0 3. Sole power to dispose or direct the disposition: 75,000 4. Shared power to dispose or direct the disposition: 0 (c) Arcadia Capital did not enter into any transactions in the Shares since March 30, 2006. CUSIP No. 78463B101 13D Page 40 of 46 Pages U. Mr. Rofe (a) As of April 4, 2006, as the sole member of Arcadia Capital, Mr. Rofe may be deemed the beneficial owner of 75,000 Shares owned by Arcadia Partners. Mr. Rofe disclaims beneficial ownership of such Shares. In addition, Mr. Rofe personally owns 2,138 Shares. Percentage: Less than 1% (b) 1. Sole power to vote or direct vote: 77,138 2. Shared power to vote or direct vote: 0 3. Sole power to dispose or direct the disposition: 77,138 4. Shared power to dispose or direct the disposition: 0 (c) Mr. Rofe did not enter into any transactions in the Shares since March 30, 2006. (d) No person other than the Reporting Persons is known to have the right to receive, or the power to direct the receipt of dividends from, or proceeds from the sale of, such shares of the Common Stock. (e) Not applicable. V. Messrs. Smith, Glidden, Terino and Fox do not currently beneficially own any Shares. The Reporting Persons do not believe that certain of the foregoing information is called for by the Items of Schedule 13D and are disclosing it for supplemental informational purposes only. Item 6 is hereby amended to add the following: On April 6, 2006, the Reporting Persons entered into a Joint Filing Agreement in which the parties agreed to the joint filing on behalf of each of them of statements on Schedule 13D with respect to the securities of the Issuer to the extent required under applicable securities laws. A copy of this agreement is attached hereto as Exhibit 6 and is incorporated herein by reference. Pursuant to letter agreements, Starboard, Parche, RCG Ambrose, RCG Halifax, Ramius Master, Barington Companies Equity, Barington Companies Offshore and Barington Investments have agreed to indemnify each of Messrs. Glidden, Terino and Rofe against claims arising from the solicitation of proxies from the Issuer's shareholders at the 2006 Annual Meeting and any related transactions. A form of the letter agreement is attached hereto as Exhibits 7 and is incorporated herein by reference. CUSIP No. 78463B101 13D Page 41 of 46 Pages Item 7 is hereby amended to include the following exhibits: 4. Nomination Letter from Starboard to the Issuer, dated April 3, 2006. 5. Letter from Starboard to the Corporate Secretary of the Issuer, dated April 4, 2006, requesting a stockholders list and other corporate records. 6. Joint Filing Agreement by and among the Reporting Persons, dated April 6, 2006. 7. Form of Indemnification Letter Agreement. CUSIP No. 78463B101 13D Page 42 of 46 Pages SIGNATURES After reasonable inquiry and to the best of his knowledge and belief, each of the undersigned certifies that the information set forth in this statement is true, complete and correct. Dated: April 6, 2006 STARBOARD VALUE AND RAMIUS MASTER FUND, LTD OPPORTUNITY MASTER FUND LTD. By: Ramius Advisors, LLC its investment manager PARCHE, LLC By: Ramius Capital Group, L.L.C. By: Admiral Advisors, LLC, its managing member its managing member ADMIRAL ADVISORS, LLC RCG AMBROSE MASTER FUND, LTD. By: Ramius Capital Group, L.L.C., By: Ramius Capital Group, L.L.C., its managing member its investment manager By: C4S & Co., L.L.C., RAMIUS ADVISORS, LLC its managing member By: Ramius Capital Group, L.L.C., its managing member RCG HALIFAX FUND, LTD. By: Ramius Capital Group, L.L.C., RAMIUS CAPITAL GROUP, L.L.C. its investment manager By: C4S & Co., L.L.C., By: C4S & Co., L.L.C., as managing member its managing member C4S & CO., L.L.C. By: /s/ Jeffrey M. Solomon ---------------------------- Name: Jeffrey M. Solomon Title: Authorized Signatory JEFFREY M. SOLOMON /s/ Jeffrey M. Solomon - ----------------------------------- Individually and as attorney-in-fact for Peter A. Cohen, Morgan B. Stark and Thomas W. Strauss CUSIP No. 78463B101 13D Page 43 of 46 Pages BARINGTON COMPANIES EQUITY PARTNERS, L.P. By: Barington Companies Investors, LLC, its general partner By: /s/ James A. Mitarotonda ------------------------------- Name: James A. Mitarotonda Title: Managing Member BARINGTON COMPANIES INVESTORS, LLC By: /s/ James A. Mitarotonda ------------------------------- Name: James A. Mitarotonda Title: Managing Member /s/ James A. Mitarotonda - ----------------------------------- James A. Mitarotonda BARINGTON COMPANIES OFFSHORE FUND, LTD. (BVI) By: /s/ James A. Mitarotonda ------------------------------- Name: James A. Mitarotonda Title: President BARINGTON INVESTMENTS, L.P. By: Barington Companies Advisors, LLC, its general partner By: /s/ James A. Mitarotonda ------------------------------- Name: James A. Mitarotonda Title: Authorized Signatory BARINGTON COMPANIES ADVISORS, LLC By: /s/ James A. Mitarotonda ------------------------------- Name: James A. Mitarotonda Title: Authorized Signatory BARINGTON CAPITAL GROUP, L.P. By: LNA Capital Corp., its general partner By: /s/ James A. Mitarotonda ------------------------------- Name: James A. Mitarotonda Title: President and Chief Executive Officer CUSIP No. 78463B101 13D Page 44 of 46 Pages LNA CAPITAL CORP. By: /s/ James A. Mitarotonda ------------------------------- Name: James A. Mitarotonda Title: President and Chief Executive Officer ARCADIA PARTNERS, L.P. By: Arcadia Capital Management, LLC, its general partner By: /s/ Richard Rofe ------------------------------- Name: Richard Rofe Title: Sole Member ARCADIA CAPITAL MANAGEMENT, LLC By: /s/ Richard Rofe ------------------------------- Name: Richard Rofe Title: Sole Member /s/ Richard Rofe - ----------------------------------- Richard Rofe /s/ Jeffrey D. Glidden - ----------------------------------- Jeffrey D. Glidden /s/ Jeffrey C. Smith - ----------------------------------- Jeffrey C. Smith /s/ William J. Fox - ----------------------------------- William J. Fox /s/ Edward Terino - ----------------------------------- Edward Terino CUSIP No. 78463B101 13D Page 45 of 46 Pages SCHEDULE A Transactions in the Shares Since the Filing of Amendment No. 1 to Schedule 13D Shares of Common Stock Price Per Date of Purchased / (Sold) Share($) Purchase / Sale STARBOARD VALUE AND OPPORTUNITY MASTER FUND LTD. 113,762 4.8802 3/31/06 47,361 5.1097 4/03/06 119,164 5.1311 4/04/06 PARCHE, LLC 21,669 4.8802 3/31/06 9,021 5.1097 4/03/06 22,698 5.1311 4/04/06 RCG AMBROSE MASTER FUND, LTD. NONE RCG HALIFAX FUND, LTD. NONE RAMIUS MASTER FUND, LTD. NONE BARINGTON COMPANIES EQUITY PARTNERS, L.P. 54,172 4.8800 3/31/06 BARINGTON COMPANIES OFFSHORE FUND, LTD. (BVI) 52,818 4.8800 3/31/06 BARINGTON INVESTMENTS, L.P. 28,441 4.8800 3/31/06 CUSIP No. 78463B101 13D Page 46 of 46 Pages ARCADIA PARTNERS, L.P. NONE RICHARD ROFE NONE EX-99.1 2 e600415_ex99-1.txt NOMINATION LETTER STARBOARD VALUE AND OPPORTUNITY MASTER FUND LTD. C/O RAMIUS CAPITAL GROUP, L.L.C. 666 THIRD AVENUE, 26TH FLOOR NEW YORK, NEW YORK 10017 April 3, 2006 FACSIMILE AND EXPRESS MAIL S1 Corporation 3500 Lenox Road, Suite 200 Atlanta, GA 30326 Attn: Corporate Secretary Re: NOTICE OF SHAREHOLDER NOMINATION FOR ELECTION OF DIRECTORS AND SUBMISSION OF BUSINESS PROPOSALS FOR THE 2006 ANNUAL MEETING OF SHAREHOLDERS OF S1 CORPORATION Dear Sir: This letter is intended to serve as notice to S1 Corporation, a Delaware corporation ("S1" or the "Company"), as to the nomination by Starboard Value and Opportunity Master Fund Ltd., an exempted company organized under the laws of the Cayman Islands ("Starboard"), of nominees for election to the Board of Directors of S1 (the "S1 Board") at the 2006 annual meeting of shareholders of S1, or any other meeting of shareholders held in lieu thereof, and any adjournments, postponements, reschedulings or continuations thereof (the "2006 Annual Meeting"), and the submission of certain business proposals for consideration at the 2006 Annual Meeting. Starboard is the beneficial owner of 3,394,867 shares of common stock, $.01 par value per share (the "Common Stock"), of S1, 1,000 shares of which are held of record. This letter and all Exhibits attached hereto are collectively referred to as the "Notice." Starboard believes that the terms of two (2) directors currently serving on the S1 Board expire at the 2006 Annual Meeting. Starboard hereby gives written notice of its intention to make the following director nominations and to submit the following business proposals for consideration at the 2006 Annual Meeting: 1. To nominate for election two candidates, Jeffrey D. Glidden and Jeffrey C. Smith, as Class I directors at the 2006 Annual Meeting to serve until the 2009 annual meeting of shareholders. 2. To amend Section 3.2 of the current Amended and Restated Bylaws of the Company (the "S1 Bylaws") to allow only shareholders to fix the number of directors of the Company and to set the size of the S1 Board at a number of directors which is equal to the sum of (a) the number of directors that comprise the S1 Board at the time of the 2006 Annual Meeting, plus (b) three (3), such that, by way of example, if the number of directors that comprise the S1 Board at the time of the 2006 Annual Meeting is six (6), then the S1 Board will be set at nine (9) directors, which proposal will be in substantially the following form: RESOLVED, that Section 3.2 of the Bylaws of the Company be amended by deleting the final two sentences thereof and replacing them with the following: "The Board of Directors shall consist of such number of directors as is equal to the sum of (a) the number of directors that comprise the Board of Directors at the time of the 2006 Annual Meeting of Shareholders, plus (b) three (3). Thereafter, within the limits above specified, the number of directors shall be determined from time to time by a vote of the shareholders." 3. To amend Section 3.4 of the S1 Bylaws to allow newly created directorships resulting from an increase in the size of the S1 Board to be filled only by a vote of the shareholders, which proposal will be in substantially the following form: "RESOLVED, that Section 3.4 of the Bylaws of the Company be deleted in its entirety and replaced with the following: "Vacancies on the Board of Directors resulting other than from newly created directorships shall be filled by a vote of the shareholders, or by a majority of the directors then in office, although fewer than a quorum, or by a sole remaining director. Any vacancies resulting from newly created directorships shall be filled only by a vote of the shareholders. Each director so chosen shall hold office for the remainder of the full term of the class of directors in which the new directorship was created or the vacancy occurred and until such director's successor is elected and qualified, or until the director's earlier resignation or removal." 4. Should Proposal No. 2 and Proposal No. 3 be approved, to nominate for election at the 2006 Annual Meeting three candidates, Edward Terino, William J. Fox and Richard S. Rofe, as directors to fill the vacancies created by the increase in the size of the S1 Board. 5. To amend Section 2.3 of the S1 Bylaws to allow shareholders holding at least one-tenth of the outstanding capital stock of the Company to call a special meeting of shareholders, which proposal will be in substantially the following form: "RESOLVED, that Section 2.3 of the Bylaws of the Company be deleted in its entirety and replaced with the following: "Special meetings of the shareholders for any purpose or purposes, unless otherwise prescribed by statute, may be called at any time by the Chairman of the Board of Directors, the President, or a majority of the Board of Directors, and shall be called by the Chairman of the Board of Directors, the President, or the Secretary upon the written request of the holders of not less than one tenth of all of the outstanding capital stock of the Corporation entitled to vote at the meeting. Such written request shall state the purpose or purposes of the meeting and shall be delivered to the principal office of the Corporation addressed to the Chairman of the Board, the President, or the Secretary." 2 Starboard reserves the right to nominate additional nominees to be elected to the S1 Board at the 2006 Annual Meeting. Additional nominations made pursuant to the preceding sentence are without prejudice to the position of Starboard that any attempt to increase the size of the current S1 Board or to reconstitute or reconfigure the classes on which the current directors serve prior to the 2006 Annual Meeting constitutes an unlawful manipulation of S1's corporate machinery. If this Notice shall be deemed for any reason by a court of competent jurisdiction to be ineffective with respect to the nomination of any of Starboard's nominees (each a "Nominee" and collectively, the "Nominees") at the 2006 Annual Meeting, or if any individual Nominee shall be unable to serve for any reason, this Notice shall continue to be effective with respect to the remaining Nominee(s) and as to any replacement Nominee(s) selected by Starboard. Starboard reserves the right to challenge any action that may be taken by S1, including any amendment to its Amended and Restated Certificate of Incorporation or the S1 Bylaws that would have the effect of enjoining, prohibiting or limiting Starboard from submitting or implementing its business proposals. If this Notice shall be deemed for any reason by a court of competent jurisdiction to be ineffective with respect to any of the business proposals submitted by Starboard hereunder, this Notice shall continue to be effective with respect to the remaining business proposals. Below please find information required by Section 3.3 of the S1 Bylaws and Regulation 14A of the Securities Exchange Act of 1934, as amended (the "Exchange Act") and other information concerning the two Nominees for election as Class I directors at the 2006 Annual Meeting. JEFFREY D. GLIDDEN (AGE 55) is a Vice President and the Chief Financial Officer of Airvana, Inc., a company specializing in broadband CDMA network infrastructure systems based on third-generation (3G) CDMA2000 1xEV-DO wireless packet data technology, a position he has held since December 2005. From July 2002 to December 2005, Mr. Glidden served as Senior Vice President, Operations and as Chief Financial Officer of RSA Security, Inc. (NASD:RSAS), a publicly traded technology security company specializing in protecting online identities and digital assets. From January 1997 to July 2005, he has served as a Vice President and Chief Financial Officer of Stream International, Inc., a company specializing in technical support and customer service outsourcing. Mr. Glidden received a Masters in Business Administration from Harvard Business School in 1976. The principal business address of Mr. Glidden is c/o Airvana, Inc., 19 Alpha Road, Chelmsford, MA 01824. The residential address of Mr. Glidden is 326 Sargent Road, Boxborough, MA 01719. As of the date hereof, Mr. Glidden does not own any securities of S1 nor has he made any purchases or sales of any securities of S1 during the past two years. JEFFREY C. SMITH (AGE 33) is a Managing Director in the Private Investments Department at Ramius Capital Group, L.L.C. ("Ramius Capital"), an investment management firm, where he is responsible for identifying, analyzing and structuring potential investments for Ramius Capital and the funds it manages. He has been employed by Ramius Capital since January 1998. Prior to joining Ramius Capital, he served as Vice President of Strategic Development and Investor Relations for The Fresh Juice Company, Inc. (NASD:FRSH), a manufacturer and distributor of fresh squeezed and frozen fresh squeezed citrus juices and other non-carbonated beverages, from February 1996 until January 1998. From August 1994 until February 1996, Mr. Smith was a financial analyst in the 3 Mergers and Acquisitions Department at LSG Advisors, a division of Societe General Securities Corporation (now SG Cowen & Co., LLC). Mr. Smith served on the Board of Directors of The Fresh Juice Company, Inc. from April 1996 until February 1999 and Jotter Technologies, Inc., an Internet infomediary company, from January 2000 to September 2000. Mr. Smith is a General Securities Registered Representative. Mr. Smith received a B.S. in Economics with concentrations in finance and accounting from the Wharton School of The University of Pennsylvania. The principal business address of Mr. Smith is c/o Ramius Capital Group, L.L.C., 666 Third Avenue, 26th Floor, New York, New York 10017. The residential address of Mr. Smith is 3 Howard Dr., Muttontown, NY 11791. As of March 30, 2006, Ramius Capital may be deemed to beneficially own 5,115,935 shares of Common Stock of S1. As of the date hereof, Mr. Smith does not beneficially own any securities of S1 nor has he made any purchases and sales of any securities of S1 during the past two years. For information regarding purchases and sales during the past two years by Ramius Capital and its affiliates in securities of S1 (without conceding that any such information is required to be disclosed in this Notice), please see EXHIBIT A. Below please find information required by Section 3.3 of the S1 Bylaws and Regulation 14A of the Exchange Act and other information concerning the three (3) nominees to fill the vacancies created by the increase in the size of the S1 Board, should Proposal No. 2 and Proposal No. 3 be approved. WILLIAM J. FOX (AGE 49) has been the President and Chief Executive Officer of L Q Corporation, Inc. (OTCBB:LQCI.OB), a publicly traded corporation engaged in the professional security, compliance, advisory and investigatory business, since October 2004 and a director of that company since April 2003. Mr. Fox was Chairman, President and Chief Executive Officer of AKI Inc. and President and CEO of AKI Holdings, Inc. (d/b/a Arcade Marketing), an international specialty marketing services business, from February 1999 until October 2004. From September 1991 until January 1999, Mr. Fox was an executive of Revlon Inc. (NYSE:REV) and of Revlon Consumer Products Corporation ("RCPC"), holding various positions, including Senior Executive Vice President of Revlon, Inc., President of Strategic and Corporate Development, Revlon Worldwide, Chief Executive Officer of Revlon Technologies, and, until December 1997, was Chief Financial Officer of Revlon, Inc. Mr. Fox was concurrently a Senior Vice President of MacAndrews & Forbes Holdings Inc. ("MacAndrews"). Mr. Fox was a director of Revlon Inc. and RCPC from 1994 until April 1999. At various times, beginning in April 1983, Mr. Fox was also an executive officer of several affiliates of MacAndrews and Revlon, Inc., including Technicolor Inc., The Coleman Company, New World Entertainment, Brooks Drug Stores and Revlon Group Incorporated. Mr. Fox also served as a director and non-executive Co-Chairman of Loehmann's Holdings Inc. from October 2000 until October 2004. Mr. Fox has served as the President, Chief Executive Officer and a director of Dynabazaar, Inc. (OTCBB:FAIM.OB), a publicly traded corporation that was formerly an online auction and promotions technology service provider, since December 2004 and has served as a director of Nephros, Inc. (AMEX:NEP), a medical device company, since September 2004, and of Register.com (Cayman) L.P., a provider of domain 4 name registration and internet services, since December 2005. In addition, he has been the Vice Chairman of Barington Capital Group, L.P., an investment company, and certain of its affiliates since October 2004. Mr. Fox is a certified public accountant. He received a BBA and an MBA from Pace University. The principal business address of Mr. Fox is c/o Barington Capital Group, L.P., 888 Seventh Avenue, 17th Floor, New York, NY 10019. Mr. Fox's residential address is 11 Pike Street, Alpine, NJ 07620-0893. As of March 30, 2006, Barington Capital Group, L.P. may be deemed to beneficially own 828,543 shares of Common Stock of S1. As of the date hereof, Mr. Fox does not beneficially own any securities of S1 nor has he made any purchases and sales of any securities of S1 during the past two years. For information regarding purchases and sales during the past two years by affiliates of Barington Capital Group, L.P. in securities of S1 (without conceding that any such information is required to be disclosed in this Notice), please see EXHIBIT A. EDWARD TERINO (AGE 52) is the Co-Chief Executive Officer and Chief Financial Officer of Arlington Tanker Ltd (NYSE:ATB), an international publicly traded seaborne transporter of crude oil and petroleum products based in Bermuda. From September 2001 to June 2005, Mr. Terino served as a Senior Vice President, Chief Financial Officer, Treasurer and Secretary of Art Technology Group, Inc. (NASD:ARTG), an international publicly traded commerce and self-service application software company focused on the Global 1000 market. From April 1999 to September 2001, Mr. Terino served as a Senior Vice President, Chief Financial Officer, Treasurer and Secretary of Applix, Inc. (NASD:APLX), an international publicly traded company focusing on customer relationship management and business intelligence solutions for the Global 2000 market. Mr. Terino currently sits on the Board of Directors of and is the Chairman of the Audit Committee of EBT International, Inc., a publicly traded Web content management software developer. Mr. Terino is also currently a board member of Celerity Solutions, Inc., an e-business customer relationship management software developer, where he formerly served as Chief Financial Officer, Treasurer and Secretary from December 1996 to April 1999. Mr. Terino received his Masters in Business Administration from Suffolk University in 1984. The principal business address of Mr. Terino is c/o Arlington Tankers, Ltd, 191 Pust Road West, Westport, CT 06880. The residential address of Mr. Terino is 17 Canterbury Road, Windham, NH 03087. As of the date hereof, Mr. Terino does not own any securities of S1 nor has he made any purchases or sales of any securities of S1 during the past two years. RICHARD S. ROFE (AGE 41) is currently the sole managing member of Arcadia Capital Management, LLC, the general partner of Arcadia Partners, L.P., a private investment firm that invests in public equities using various strategies. In 1999, Mr. Rofe founded DataBites, Inc., a company built around a computer software product that was later sold to Divine, Inc. (NASD:DVIN) in 2001. Since 2001, Mr. Rofe has also co-founded two shareholder activist firms, ISIS Capital Management, LLC and Mitchell Wright Technology Group. These firms are focused on discovering undervalued public software companies in need of a transformation to unlock shareholder value. The principal business address of Mr. Rofe is c/o Arcadia Capital Management, LLC, 185 Great Neck Road, Suite 460, Great Neck, NY 11021. The residential address of Mr. Rofe is 54 Meadow Woods Road, Great Neck, NY 11020. As of March 30, 2006, Mr. Roche beneficially owns 77,138 shares of Common Stock of S1, 75,000 shares of which he beneficially owns by virtue of his position as sole member of Arcadia Capital Management, LLC, and 2,138 shares of which he owns personally. For information regarding purchases and sales during the past two years by Mr. Rofe and Arcadia Partners, L.P. in securities of S1, please see EXHIBIT A. 5 Ramius Capital and Barington Capital Group, L.P., and certain of their affiliates, have signed or intend to sign letter agreements pursuant to which they agree to indemnify each of Messrs. Glidden, Terino and Rofe against claims arising from the solicitation of proxies from S1's shareholders in connection with the 2006 Annual Meeting and any related transactions. Ramius Capital has jointly filed a Schedule 13D with respect to the Common Stock with certain other entities pursuant to a joint filing agreement. Reference is made to such Schedule 13D initially filed on March 30, 2006, as it has been and may be amended from time to time (the "Schedule 13D"), as filed and to be filed with the Securities and Exchange Commission (the "SEC"), for information regarding other entities that are or may be deemed to be members in a group described therein. Other than as stated above, there are no arrangements or understandings between Starboard and each Nominee or any other person or persons pursuant to which the nominations described herein are to be made, other than the consents by the Nominees to be named as a nominee in this Notice, to be named as a nominee in any proxy statement filed by Starboard in connection with the solicitation of S1 shareholders and to serve as a director of S1, if so elected. Such consents are attached hereto as EXHIBIT B. Except as set forth in this Notice (including the Exhibits hereto), (i) during the past 10 years, no Nominee has been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors); (ii) no Nominee directly or indirectly beneficially owns any securities of S1; (iii) no Nominee owns any securities of S1 which are owned of record but not beneficially; (iv) no Nominee has purchased or sold any securities of S1 during the past two years; (v) no part of the purchase price or market value of the securities of S1 owned by any Nominee is represented by funds borrowed or otherwise obtained for the purpose of acquiring or holding such securities; (vi) no Nominee is, or within the past year was, a party to any contract, arrangements or understandings with any person with respect to any securities of S1, including, but not limited to, joint ventures, loan or option arrangements, puts or calls, guarantees against loss or guarantees of profit, division of losses or profits, or the giving or withholding of proxies; (vii) no associate of any Nominee owns beneficially, directly or indirectly, any securities of S1; (viii) no Nominee owns beneficially, directly or indirectly, any securities of any parent or subsidiary of S1; (ix) no Nominee or any of his associates was a party to any transaction, or series of similar transactions, since the beginning of S1's last fiscal year, or is a party to any currently proposed transaction, or series of similar transactions, to which S1 or any of its subsidiaries was or is to be a party, in which the amount involved exceeds $60,000; (x) no Nominee or any of his associates has any arrangement or understanding with any person with respect to any future employment by S1 or its affiliates, or with respect to any future transactions to which S1 or any of its affiliates will or may be a party; and (xi) no Nominee has a substantial interest, direct or indirect, by securities holdings or otherwise in any matter to be acted on at the 2006 Annual Meeting. 6 The information concerning the shareholder giving the Notice required by Section 2.2 of the S1 Bylaws with respect to each of the shareholder business proposals and Section 3.3 of the S1 Bylaws with respect to each of the director nominations is set forth below: THE NAME AND ADDRESS, AS BELIEVED TO APPEAR ON S1'S BOOKS, OF THE SHAREHOLDER GIVING THE NOTICE IS AS FOLLOWS: Starboard Value & Opportunity Master Fund Ltd USA c/o Admiral Advisors, LLC 666 Third Avenue, 26th Floor New York, NY 10017-3066 THE CLASS AND NUMBER OF SHARES OF COMMON STOCK WHICH ARE OWNED BENEFICIALLY BY STARBOARD IS AS FOLLOWS: Starboard hereby represents that it is the beneficial owner of 3,394,867 shares of Common Stock of S1, 1,000 shares of which are held of record. WITH RESPECT TO THE SHAREHOLDER BUSINESS PROPOSALS DESCRIBED ABOVE, THE REASONS FOR CONDUCTING SUCH BUSINESS AT THE 2006 ANNUAL MEETING AND THE MATERIAL INTEREST OF STARBOARD, IF ANY, IN SUCH BUSINESS IS AS FOLLOWS. Starboard is submitting the foregoing business proposals at the 2006 Annual Meeting in order to give shareholders a greater voice in the governance of S1. Starboard does not have a material interest in the business proposals except as otherwise set forth herein. * * * Please address any correspondence to Starboard Value and Opportunity Master Fund Ltd., Attention: Jeffrey C. Smith, telephone (212) 845-7955, facsimile (212) 845-7999 and Owen S. Littman, telephone (212) 201-4841, facsimile (212) 845-7995 (with a copy to our counsel, Olshan Grundman Frome Rosenzweig & Wolosky LLP, Park Avenue Tower, 65 East 55th Street, New York, New York 10022, Attention: Steven Wolosky, Esq., telephone (212) 451-2333, facsimile (212) 451-2222). The giving of this Notice is not an admission that any purported procedures for notice concerning the nomination of directors to the Board and submission of business proposals are legal, valid or binding, and Starboard reserves the right to challenge their validity. Very truly yours, STARBOARD VALUE AND OPPORTUNITY MASTER FUND LTD. By: /s/ Jeffrey C. Smith ----------------------------- Name: Jeffrey C. Smith Title: Authorized Signatory 7 EXHIBIT A TRANSACTIONS IN SECURITIES OF S1 DURING THE PAST TWO YEARS Shares of Common Stock Price Per Date of Purchased / (Sold) Share($) Purchase / Sale STARBOARD VALUE & OPPORTUNITY MASTER FUND LTD. 120,120 4.3753 11/18/05 63,000 4.3959 11/18/05 21,000 4.5706 11/22/05 5,880 4.4011 11/28/05 9,744 4.3991 11/30/05 42,000 4.4979 12/01/05 42,000 4.5899 12/02/05 620,256 4.3000 12/05/05 273,420 3.9983 3/02/06 99,960 4.0118 3/02/06 30,277 4.0101 3/03/06 111,720 3.9997 3/03/06 29,400 4.0000 3/03/06 176,400 3.9947 3/06/06 29,400 3.8900 3/08/06 103,841 3.8400 3/10/06 32,340 3.9863 3/14/06 141,120 3.9999 3/17/06 114,248 4.0904 3/20/06 43,134 4.1316 3/21/06 190,782 4.0855 3/22/06 177,237 4.0831 3/23/06 25,298 4.1884 3/24/06 24,446 4.2054 3/27/06 93,797 4.2028 3/28/06 27,035 4.2993 3/29/06 108,612 4.6674 3/30/06 638,400 4.6000 3/30/06 PARCHE, LLC 344,906* 4.0000 3/17/06 26,880 3.9999 3/17/06 193,034* 4.0000 3/17/06 15,840 3.9999 3/17/06 21,761 4.0904 3/20/06 8,216 4.1316 3/21/06 36,340 4.0855 3/22/06 33,760 4.0831 3/23/06 4,819 4.1884 3/24/06 4,656 4.2054 3/27/06 17,866 4.2028 3/28/06 5,149 4.2993 3/29/06 20,688 4.6674 3/30/06 121,600 4.6000 3/30/06 RCG AMBROSE MASTER FUND, LTD. 3,597 4.2472 12/07/05 - ---------- * Shares were acquired in private transactions with various transferors for which Ramius Capital Group, L.L.C. or an affiliate serves as the investment manager, the managing member or the managing member of the investment manager. 23,903 4.3350 12/08/05 9,020 4.3500 12/09/05 2,652 4.3589 12/09/05 5,500 4.3500 12/13/05 2,673 4.3600 12/13/05 3,567 4.3541 12/14/05 2,750 4.3500 12/14/05 550 4.3500 12/15/05 1,594 4.3500 12/15/05 4,693 4.3442 12/16/05 6,630 4.0118 3/02/06 18,135 3.9983 3/02/06 2,008 4.0101 3/03/06 1,950 4.0000 3/03/06 7,410 3.9997 3/03/06 11,700 3.9947 3/06/06 1,950 3.8900 3/08/06 6,887 3.8400 3/10/06 2,145 3.9863 3/14/06 9,360 3.9999 3/17/06 RCG HALIFAX FUND, LTD. 3,597 4.2472 12/07/05 23,903 4.3350 12/08/05 9,020 4.3500 12/09/05 2,652 4.3589 12/09/05 5,500 4.3500 12/13/05 2,673 4.3600 12/13/05 3,567 4.3541 12/14/05 2,750 4.3500 12/14/05 550 4.3500 12/15/05 1,594 4.3500 12/15/05 4,693 4.3442 12/16/05 19,530 3.9983 3/02/06 7,140 4.0118 3/02/06 2,163 4.0101 3/03/06 7,980 3.9997 3/03/06 2,100 4.0000 3/03/06 12,600 3.9947 3/06/06 2,100 3.8900 3/08/06 7,417 3.8400 3/10/06 2,310 3.9863 3/14/06 10,080 3.9999 3/17/06 RAMIUS MASTER FUND, LTD. 19,947 4.2472 12/07/05 132,553 4.3350 12/08/05 50,020 4.3500 12/09/05 14,707 4.3589 12/09/05 30,500 4.3500 12/13/05 14,823 4.3600 12/13/05 19,784 4.3541 12/14/05 15,250 4.3500 12/14/05 3,050 4.3500 12/15/05 8,840 4.3500 12/15/05 26,028 4.3442 12/16/05 26,010 4.0118 3/02/06 71,145 3.9983 3/02/06 7,878 4.0101 3/03/06 7,650 4.0000 3/03/06 29,070 3.9997 3/03/06 45,900 3.9947 3/06/06 7,650 3.8900 3/08/06 27,020 3.8400 3/10/06 8,415 3.9863 3/14/06 36,720 3.9999 3/17/06 BARINGTON COMPANIES EQUITY PARTNERS, L.P. 46,243 4.0900 3/20/06 17,459 4.1320 3/21/06 77,222 4.0850 3/22/06 71,739 4.0830 3/23/06 10,240 4.1880 3/24/06 9,895 4.2050 3/27/06 37,965 4.2030 3/28/06 10,942 4.2993 3/29/06 BARINGTON COMPANIES OFFSHORE FUND, LTD. (BVI) 74,805 4.0900 3/20/06 28,242 4.1320 3/21/06 124,917 4.0850 3/22/06 116,048 4.0830 3/23/06 16,564 4.1880 3/24/06 16,006 4.2050 3/27/06 61,414 4.2030 3/28/06 17,701 4.2993 3/29/06 BARINGTON INVESTMENTS, L.P. 14,961 4.0900 3/20/06 5,649 4.1320 3/21/06 24,983 4.0850 3/22/06 23,210 4.0830 3/23/06 3,313 4.1880 3/24/06 3,202 4.2050 3/27/06 12,283 4.2030 3/28/06 3,540 4.2993 3/29/06 ARCADIA PARTNERS, L.P. 75,000 4.1300 3/23/06 RICHARD ROFE 12,500 3.9400 3/10/06 7,500 4.0000 3/13/06 2,500 4.0100 3/16/06 2,500 3.9800 3/17/06 (2,500) 4.1100 3/23/06 (19,000) 4.1300 3/24/06 (1,362) 4.3200 3/29/06 JEFFREY D. GLIDDEN NONE JEFFREY C. SMITH NONE WILLIAM J. FOX NONE EDWARD TERINO NONE EXHIBIT B NOMINEE CONSENTS JEFFREY D. GLIDDEN 19 ALPHA RD. CHELMSFORD, MA 01824 April 1, 2006 S1 Corporation 3500 Lenox Road, NE Suite 200 Atlanta, Georgia 30326 Attn: Corporate Secretary Dear Sir: You are hereby notified that the undersigned consents to (i) being named as a nominee in the notice provided by The Ramius Barington Group of its intention to nominate the undersigned as a director of S1 corporation ("S1") at the 2006 annual meeting of stockholders, or any other meeting of stockholders held in lieu thereof, and any adjournments, postponements, reschedulings or continuations thereof (the "Annual Meeting"), (ii) being named as a nominee in any proxy statement filed by The Ramius Barington Group in connection with the solicitation of proxies or written consents for election of the undersigned at the Annual Meeting, and (iii) serving as a director of S1 if elected at the Annual Meeting. Very truly yours, /s/ Jeffrey D. Glidden Jeffrey D. Glidden WILLIAM J. FOX C/O BARINGTON CAPITAL GROUP, L.P. 888 SEVENTH AVENUE, 17TH FLOOR NEW YORK, NEW YORK 10019 March 23, 2006 S1 Corporation 3500 Lenox Road, NE Suite 200 Atlanta, Georgia 30326 Attn: Corporate Secretary Dear Sir: You are hereby notified that the undersigned consents to (i) being named as a nominee in the notice provided by The Ramius Barington Group of its intention to nominate the undersigned as a director of S1 corporation ("S1") at the 2006 annual meeting of stockholders, or any other meeting of stockholders held in lieu thereof, and any adjournments, postponements, reschedulings or continuations thereof (the "Annual Meeting"), (ii) being named as a nominee in any proxy statement filed by The Ramius Barington Group in connection with the solicitation of proxies or written consents for election of the undersigned at the Annual Meeting, and (iii) serving as a director of S1 if elected at the Annual Meeting. Very truly yours, /s/ William J. Fox William J. Fox RICHARD S. ROFE C/O ARCADIA CAPITAL MANAGEMENT, LLC 185 GREAT NECK ROAD, SUITE 460 GREAT NECK, NEW YORK 11021 March 23, 2006 S1 Corporation 3500 Lenox Road, NE Suite 200 Atlanta, Georgia 30326 Attn: Corporate Secretary Dear Sir: You are hereby notified that the undersigned consents to (i) being named as a nominee in the notice provided by The Ramius Barington Group of its intention to nominate the undersigned as a director of S1 corporation ("S1") at the 2006 annual meeting of stockholders, or any other meeting of stockholders held in lieu thereof, and any adjournments, postponements, reschedulings or continuations thereof (the "Annual Meeting"), (ii) being named as a nominee in any proxy statement filed by The Ramius Barington Group in connection with the solicitation of proxies or written consents for election of the undersigned at the Annual Meeting, and (iii) serving as a director of S1 if elected at the Annual Meeting. Very truly yours, /s/ Richard S. Rofe Richard S. Rofe EDWARD TERINO 17 CANTERBURY ROAD WINDHAM, NEW HAMPSHIRE 03087 March 23, 2006 S1 Corporation 3500 Lenox Road, NE Suite 200 Atlanta, Georgia 30326 Attn: Corporate Secretary Dear Sir: You are hereby notified that the undersigned consents to (i) being named as a nominee in the notice provided by The Ramius Barington Group of its intention to nominate the undersigned as a director of S1 corporation ("S1") at the 2006 annual meeting of stockholders, or any other meeting of stockholders held in lieu thereof, and any adjournments, postponements, reschedulings or continuations thereof (the "Annual Meeting"), (ii) being named as a nominee in any proxy statement filed by The Ramius Barington Group in connection with the solicitation of proxies or written consents for election of the undersigned at the Annual Meeting, and (iii) serving as a director of S1 if elected at the Annual Meeting. Very truly yours, /s/ Edward Terino Edward Terino JEFFREY C. SMITH C/O RAMIUS CAPITAL GROUP, LLC 666 THIRD AVENUE, 26TH FLOOR NEW YORK, NEW YORK 10017 April 3, 2006 S1 Corporation 3500 Lenox Road, NE Suite 200 Atlanta, Georgia 30326 Attn: Corporate Secretary Dear Sir: You are hereby notified that the undersigned consents to (i) being named as a nominee in the notice provided by The Ramius Barington Group of its intention to nominate the undersigned as a director of S1 corporation ("S1") at the 2006 annual meeting of stockholders, or any other meeting of stockholders held in lieu thereof, and any adjournments, postponements, reschedulings or continuations thereof (the "Annual Meeting"), (ii) being named as a nominee in any proxy statement filed by The Ramius Barington Group in connection with the solicitation of proxies or written consents for election of the undersigned at the Annual Meeting, and (iii) serving as a director of S1 if elected at the Annual Meeting. Very truly yours, /s/ Jeffrey C. Smith Jeffrey C. Smith EX-99.2 3 e600415_ex99-2.txt LETTER REQUESTING A STOCKHOLDERS LIST STARBOARD VALUE AND OPPORTUNITY MASTER FUND LTD. C/O RAMIUS CAPITAL GROUP, LLC 666 THIRD AVENUE, 26TH FLOOR NEW YORK, NEW YORK 10017 April 4, 2006 VIA FACSIMILE AND COURIER S1 Corporation 3500 Lenox Road, Suite 200 Atlanta, GA 30326 Attn: Corporate Secretary Dear Sir: Starboard Value and Opportunity Master Fund Ltd., an exempted company organized under the laws of the Cayman Islands ("Starboard"), is the record holder of 1,000 shares (the "Shares") of common stock, $.01 par value (the "Common Stock"), of S1 Corporation, a Delaware corporation (the "Company"), as of the close of business on April 3, 2006. As the record holder of the Shares, Starboard hereby demands, pursuant to Section 220 of the Delaware General Corporation Law, during the usual hours for business, to inspect the following books, records and documents of the Company and to make copies or extracts therefrom: (a) A complete record or list of the holders of the Common Stock, certified by its transfer agent(s) and/or registrar(s), showing the name, address and number of shares registered in the name of each such holder, as of March 31, 2006, the record date established for the 2006 Annual Meeting of Stockholders of the Company, or any other record date that may be established for the annual meeting or any other meeting of stockholders held in lieu thereof (the "Record Date") and any adjournments, postponements, reschedulings or continuations thereof (the "Annual Meeting"); (b) A magnetic computer tape list or other electronic medium of the holders of the Common Stock as of the Record Date, showing the name, address and number of shares registered in the name of each such holder; such computer processing data as is necessary for Starboard to make use of such magnetic computer tape; and a hard copy printout of such magnetic computer tape for verification purposes; (c) A stop list or stop lists relating to shares of Common Stock of the Company and any additions or deletions thereto. Any daily transfer sheets after the Record Date; (d) All information in the Company's or its transfer agent's possession, or which can reasonably be obtained from nominees of any central certificate depository systems or their nominees, brokers, dealers, banks, respondent banks, clearing agencies, voting trusts and their nominees or other nominees, concerning the number, identity of, and shares held by the actual beneficial owners of the Common Stock as of the Record Date, including an alphabetical breakdown of any holdings in the respective names of Cede & Co. and other similar depositories or nominees as well as any material request list provided by Automatic Data Processing-Investor Communications Services and any omnibus proxies issued by such entities; (e) All information in or which comes into the Company's possession or which can reasonably be obtained from brokers, dealers, banks, clearing agencies or voting trustees relating to the names of the non-objecting beneficial owners of the Common Stock in the format of a magnetic computer tape, cartridge file or other electronic medium of such owners showing the name, address and number of shares registered in the name of each such owner; such computer processing data as is necessary for Starboard to make use of such magnetic computer tape or cartridge; and a hard copy printout of such magnetic computer tape or cartridge for verification purposes (such information with respect to brokers and dealers is readily available to the Company under Rule 14b-1 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), from ADP Proxy Services); (f) All "respondent bank" lists and omnibus proxies for such lists, pursuant to Rule 14b-2 of the Exchange Act; (g) A list of stockholders of the Company who are participants in any Company employee stock ownership, stock purchase, stock option, retirement, restricted stock, incentive, profit sharing, dividend reinvestment or any similar plan in which voting of Common Stock under the plan is controlled, directly or indirectly, individually or collectively, by such plan's participants, showing (i) the name and address of each such participant, (ii) the number of shares of Common Stock attributable to each such participant in any such plan, and (iii) the method by which Starboard or its agents may communicate with each such participant; and (h) A correct and complete copy of the bylaws of the Company. Starboard demands that modifications, additions or deletions to any and all information referred to in paragraphs (a) through (h) be immediately furnished as such modifications, additions or deletions become available to the Company or its agents or representatives. Starboard will bear the reasonable costs incurred by the Company including those of its transfer agent(s) or registrar(s) in connection with the production of the information demanded. The purpose of this demand is to enable Starboard, together with Ramius Capital Group, L.L.C. and Barington Capital Group, L.P., and certain of their affiliates, to communicate with the Company's stockholders on Starboard's business proposals and director nominations, the notice of which was submitted to the Company by Starboard on April 3, 2006, and other matters relating to the Company's corporate governance and operations, consistent with the applicable provisions of Delaware law. Starboard hereby designates and authorizes Steven Wolosky, Ron Berenblat and Andrew Freedman of Olshan Grundman Frome Rosenzweig & Wolosky LLP, Charles A. Koons III and Daniel Burch of MacKenzie Partners, Inc., and any other persons designated by them, acting singly or in any combination, to conduct the inspection and copying herein requested. It is requested that the information identified above be made available to the designated parties by no later than April 11, 2006. Very truly yours, STARBOARD VALUE AND OPPORTUNITY MASTER FUND LTD. By: /s/ Mark Mitchell ----------------------------- Name: Mark Mitchell Title: Authorized Signatory State of New York ) ) ss: County of New York ) MARK MITCHELL, being duly sworn, states: I executed the foregoing letter, that he is a Director of Starboard Value and Opportunity Master Fund Ltd. ("Starboard"), that he is authorized to make the foregoing demand for inspection on behalf of and as the act and deed of Starboard, and the information and facts stated therein, and the purpose of this demand for inspection, are true and correct. Such inspection is reasonably related to Starboard's interest as a stockholder and is not desired for a purpose which is in the interest of a business or object other than the business of S1 Corporation. /s/ Mark Mitchell -------------------------------- Mark Mitchell Subscribed and sworn to before me this 4th day of April, 2006. /s/ Marites B. Canlas-Mojica - ----------------------------- Notary Public My commission expires: 2/22/09 ----------- EX-99.3 4 e600415_ex99-3.txt JOINT FILING AGREEMENT JOINT FILING AGREEMENT In accordance with Rule 13d-1(k)(1)(iii) under the Securities Exchange Act of 1934, as amended, the persons named below agree to the joint filing on behalf of each of them of a Statement on Schedule 13D dated April 6, 2006 (including amendments thereto) with respect to the Common Stock of S1 Corporation. This Joint Filing Agreement shall be filed as an Exhibit to such Statement. Dated: April 6, 2006 STARBOARD VALUE AND RAMIUS MASTER FUND, LTD OPPORTUNITY MASTER FUND LTD. By: Ramius Advisors, LLC its investment manager PARCHE, LLC By: Ramius Capital Group, L.L.C. By: Admiral Advisors, LLC, its managing member its managing member ADMIRAL ADVISORS, LLC RCG AMBROSE MASTER FUND, LTD. By: Ramius Capital Group, L.L.C., By: Ramius Capital Group, L.L.C., its managing member its investment manager By: C4S & Co., L.L.C., RAMIUS ADVISORS, LLC its managing member By: Ramius Capital Group, L.L.C., its managing member RCG HALIFAX FUND, LTD. By: Ramius Capital Group, L.L.C., RAMIUS CAPITAL GROUP, L.L.C. its investment manager By: C4S & Co., L.L.C., By: C4S & Co., L.L.C., as managing member its managing member C4S & CO., L.L.C. By: /s/ Jeffrey M. Solomon ----------------------- Name: Jeffrey M. Solomon Title: Authorized Signatory /s/ Jeffrey M. Solomon - ----------------------------------- JEFFREY M. SOLOMON Individually and as attorney-in-fact for Peter A. Cohen, Morgan B. Stark and Thomas W. Strauss BARINGTON COMPANIES EQUITY PARTNERS, L.P. By: Barington Companies Investors, LLC, its general partner By: /s/ James A. Mitarotonda ------------------------------- Name: James A. Mitarotonda Title: Managing Member BARINGTON COMPANIES INVESTORS, LLC By: /s/ James A. Mitarotonda ------------------------------- Name: James A. Mitarotonda Title: Managing Member /s/ James A. Mitarotonda - ----------------------------------- James A. Mitarotonda BARINGTON COMPANIES OFFSHORE FUND, LTD. (BVI) By: /s/ James A. Mitarotonda ------------------------------- Name: James A. Mitarotonda Title: President BARINGTON INVESTMENTS, L.P. By: Barington Companies Advisors, LLC, its general partner By: /s/ James A. Mitarotonda ------------------------------- Name: James A. Mitarotonda Title: Authorized Signatory BARINGTON COMPANIES ADVISORS, LLC By: /s/ James A. Mitarotonda ------------------------------- Name: James A. Mitarotonda Title: Authorized Signatory BARINGTON CAPITAL GROUP, L.P. By: LNA Capital Corp., its general partner By: /s/ James A. Mitarotonda ------------------------------- Name: James A. Mitarotonda Title: President and Chief Executive Officer LNA CAPITAL CORP. By: /s/ James A. Mitarotonda ------------------------------- Name: James A. Mitarotonda Title: President and Chief Executive Officer ARCADIA PARTNERS, L.P. By: Arcadia Capital Management, LLC, its general partner By: /s/ Richard Rofe ------------------------------- Name: Richard Rofe Title: Sole Member ARCADIA CAPITAL MANAGEMENT, LLC By: /s/ Richard Rofe ------------------------------- Name: Richard Rofe Title: Sole Member /s/ Richard Rofe - ----------------------------------- Richard Rofe /s/ Jeffrey D. Glidden - ----------------------------------- Jeffrey D. Glidden /s/ Jeffrey C. Smith - ----------------------------------- Jeffrey C. Smith /s/ William J. Fox - ----------------------------------- William J. Fox /s/ Edward Terino - ----------------------------------- Edward Terino EX-99.4 5 e600415_ex99-4.txt FORM OF INDEMNIFICATION LETTER AGREEMENT STARBOARD VALUE AND OPPORTUNITY BARINGTON COMPANIES EQUITY MASTER FUND LTD. PARTNERS, L.P. PARCHE, LLC BARINGTON COMPANIES OFFSHORE RCG AMBROSE MASTER FUND LTD. FUND, LTD. (BVI) RCG HALIFAX FUND LTD. BARINGTON INVESTMENTS, L.P. RAMIUS MASTER FUND, LTD. C/O BARINGTON CAPITAL GROUP, L.P. C/O RAMIUS CAPITAL GROUP, LLC 888 SEVENTH AVENUE, 17TH FLOOR 666 THIRD AVENUE, 26TH FLOOR NEW YORK, NEW YORK 10019 NEW YORK, NEW YORK 10017 April __, 2006 ___________________ ___________________ ___________________ Re: S1 CORPORATION Dear Mr(s). _________: Thank you for agreeing to serve as a nominee for election to the Board of Directors of S1 Corporation ("S1") in connection with the proxy solicitation that Starboard Value and Opportunity Master Fund Ltd., Parche, LLC, RCG Ambrose Master Fund Ltd., RCG Halifax Fund Ltd., Ramius Master Fund, Ltd., Barington Companies Equity Partners, L.P., Barington Companies Offshore Fund, Ltd. (BVI) and Barington Investments, L.P. (collectively, the "Ramius Barington Group") are considering undertaking to nominate and elect directors at S1's 2006 annual meeting of stockholders, or any other meeting of stockholders held in lieu thereof, and any adjournments, postponements, reschedulings or continuations thereof (the "Ramius Barington Group Solicitation"). Your outstanding qualifications, we believe, will prove a valuable asset to S1 and all of its stockholders. This letter will set forth the terms of our agreement. Each member of the Ramius Barington Group agrees to severally (pro rata based on their respective ownership of S1 common stock), and not jointly, indemnify and hold you harmless against any and all claims of any nature, whenever brought, arising from the Ramius Barington Group Solicitation and any related transactions, irrespective of the outcome; PROVIDED, however, that you will not be entitled to indemnification for claims arising from your gross negligence, willful misconduct, criminal actions or material breach of the terms of this agreement; PROVIDED FURTHER, that this indemnification agreement and all of the Ramius Barington Group's obligations hereunder shall terminate upon your becoming a director of S1. This indemnification will include any and all losses, liabilities, damages, demands, claims, suits, actions, judgments, or causes of action, assessments, costs and expenses, including, without limitation, interest, penalties, reasonable attorneys' fees, and any and all reasonable costs and expenses incurred in investigating, preparing or defending against any litigation, commenced or threatened, any civil, criminal, administrative or arbitration action, or any claim whatsoever, and any and all amounts paid in settlement of any claim or litigation asserted against, resulting, imposed upon, or incurred or suffered by you, directly or indirectly, as a result of or arising from the Ramius Barington Group Solicitation and any related transactions (each, a "Loss"). In the event of a claim against you pursuant to the prior paragraph or the occurrence of a Loss, you shall give the Ramius Barington Group prompt written notice of such claim or Loss (provided that failure to promptly notify the Ramius Barington Group shall not relieve us from any liability which we may have on account of this Agreement, except to the extent we shall have been prejudiced by such failure). Upon receipt of such written notice, the Ramius Barington Group will provide you with counsel to represent you. Such counsel shall be reasonably acceptable to you. In addition, you will be reimbursed promptly for all Losses suffered by you and as incurred as provided herein. The Ramius Barington Group may not enter into any settlement of loss or claim without your consent unless such settlement includes a release of you from any and all liability in respect of such claim. You hereby agree to keep confidential and not disclose to any party, without the consent of the Ramius Barington Group, any confidential, proprietary or non-public information (collectively, "Information") of the Ramius Barington Group, its affiliates or members of its Schedule 13D group which you have heretofore obtained or may obtain in connection with your service as a nominee hereunder. Notwithstanding the foregoing, Information shall not include any information that is publicly disclosed by the Ramius Barington Group, its affiliates or members of its Schedule 13D group or any information that you can demonstrate is now, or hereafter becomes, through no act or failure to act on your part, otherwise generally known to the public. Notwithstanding the foregoing, if you are required by applicable law, rule, regulation or legal process to disclose any Information you may do so provided that you first promptly notify Barington so that the Ramius Barington Group or any member thereof may seek a protective order or other appropriate remedy or, in the Ramius Barington Group's sole discretion, waive compliance with the terms of this Agreement. In the event that no such protective order or other remedy is obtained or the Ramius Barington Group does not waive compliance with the terms of this Agreement, you may furnish only that portion of the Information which you are advised by counsel is legally required to be so disclosed and will exercise reasonable efforts to obtain reliable assurance that confidential treatment will be accorded such Information. All Information, all copies thereof, and any studies, notes, records, analysis, compilations or other documents prepared by you containing such Information, shall be and remain the property of the Ramius Barington Group and, upon the request of a representative of the Ramius Barington Group, all such information shall be returned or, at the Ramius Barington Group's option, destroyed by you, with such destruction confirmed by you to the Ramius Barington Group in writing. You hereby agree to comply with all applicable laws, rules and regulations in performing any services hereunder, as a nominee or otherwise. This letter agreement shall be governed by the laws of the State of New York, without regard to the principles of the conflicts of laws thereof. If you agree to the foregoing terms, please sign below to indicate your acceptance. Very truly yours, STARBOARD VALUE AND OPPORTUNITY MASTER FUND LTD. PARCHE, LLC RCG AMBROSE MASTER FUND LTD. RCG HALIFAX FUND LTD. RAMIUS MASTER FUND, LTD. By: ----------------------------------- Name: Title: Authorized Signatory BARINGTON COMPANIES EQUITY PARTNERS, L.P. By: Barington Companies Investors, LLC, its general partner By: ----------------------------------- Name: James A. Mitarotonda Title: Managing Member BARINGTON INVESTMENTS, L.P. By: Barington Companies Advisors, LLC, its general partner By: ----------------------------------- Name: James A. Mitarotonda Title: Authorized Signatory BARINGTON COMPANIES OFFSHORE FUND, LTD. (BVI) By: ----------------------------------- Name: James A. Mitarotonda Title: President ACCEPTED AND AGREED: - ------------------------------- DIRECTOR NOMINEEE -----END PRIVACY-ENHANCED MESSAGE-----