Document:

Service Agreement of Vijay Ahuja as Vice Chairman and President (International)

 Exhibit 10.7 
 DATED 27 June 2006 
 (1) EROS NETWORK LIMITED 

and 

(2) VIJAY AHUJA 
  

 
 SERVICE
AGREEMENT 
 VICE CHAIRMAN AND PRESIDENT (INTERNATIONAL) 

 
  

HOWARD KENNEDY 
 19 Cavendish Square 
 London W1A 2AW 

DX 42748 Oxford Circus North 
 telephone +44(0)20 7636 1616 
 fax +44 (0)20 7491 2899 

Ref : 026629/00001/H2698968.1 

 THIS AGREEMENT is made on June 2006 
 BETWEEN:- 
  

	(1)	EROS NETWORK LIMITED of Unit 23, Sovereign Park, Coronation Road, London NW10 7QP registered company number 3934248 (the “Company); and

  

	(2)	VIJAY AHUJA of 5 Manor Hall Avenue, London NW4 1NY (the “Executive”). 

 IT IS AGREED as follows: 
  

	1.	Interpretation 

  

	1.1	In this agreement the following expressions have the following meanings: 

 

			
	“Appointment”	  	the employment of the Executive by the Company under this agreement;
		
	“Board”	  	the board of directors of the Company from time to time or committee of directors of the Company as may be authorised by the board from time to time;
		
	“Commencement Date”	  	1 April 2006;
		
	“Confidential Information”	  	information confidential to the Company and any Group Company including but not limited to. Intellectual Property, customer and prospective customer information, film/film producer
information (including names addresses, contact names and addresses, telephone numbers and e-mail addresses) business plans, trade secrets, product specifications, market research, financial data and forecasts, capital strategy and capital raising
activities (proposed and ongoing), business methods, marketing strategies, tenders and price sensitive information, fees, commission structure, feasibility figures and plans relating to contracts (actual and proposed), details of actual and proposed
contracts, requirements of customers or prospective customers or film producers, information in respect of which the

 
			
		  	Company or any Group Company is bound by an obligation of confidence to any third party and information notified to the Executive as being confidential;
		
	 “Group” or “Group Company”
	  	the Company and any subsidiary or holding company of the Company or any affiliate of the Company for the time being or any other subsidiary or affiliate of the holding company of
the Company for the time being. Both “subsidiary” and “holding company” shall have the meaning given in section 736 of the Companies Act 1985 and “affiliate” shall have the meaning given in section 259(5) of the
Companies Act 1985;
		
	 “Intellectual Property”
	  	includes letters patent, trade marks, service marks, copyrights, design rights, applications for registration of any of the foregoing and the right to apply for them in any part
of the world, creations, arrangements, devices, inventions or improvements upon or additions to an invention, moral rights, confidential information, know-how and rights of a similar nature arising or subsisting anywhere in the world in relation to
all of the foregoing whether registered or unregistered;
		
	 “Prospective Customer”
	  	any person, firm, company or other organisation who or which was at the Termination Date in negotiations with the Company or any Group Company with a view to dealing with the
Company or any Group Company as a customer;
		
	 “Recognised Investment

Exchange”
	  	the same meaning as in section 417 of the Financial Services and Markets Act 2000;
		
	 “Relevant Period”
	  	the period of 12 months immediately preceding the earlier of the Termination Date or the date upon which the Executive is placed on garden leave in accordance with clause
3.5;
		
	 “Restricted Business”
	  	the business of manufacturing, selling, leasing, renting, distributing, advertising, publicising, marketing or otherwise exploiting home video devices and/or any other business
or activity of the Company in which the Executive had any involvement during the course of his employment

  
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	 	  	or with which any employee of the Company under the Executive’s control had any involvement or
dealings in the course of his duties at any time during the Relevant
Period;
		
	 “Restricted Employee”
	  	any employee or consultant or director of the Company or any Group Company as at the Termination Date or such other person engaged by any Group Company who had access to
Confidential Information and/or with whom the Executive had personal dealings during the Relevant Period;
		
	 “Restricted Supplier”
	  	any person, firm or company who at any time during the Relevant Period was a supplier of the Company or any Group Company being a person, firm or company with whom or which the
Executive personally dealt on behalf of the Company or any Group Company during the Relevant Period;
		
	 “Restricted Territory”
	  	any country in which the Executive conducted Restricted Business on behalf of the Company;
		
	 “Review Date”
	  	the anniversary of the date of this agreement;
		
	 “Termination Date”
	  	the date of termination of the Appointment howsoever occurring.

  

	1.2	Words denoting the singular include the plural and vice versa and words denoting gender include both genders. 

 

	1.3	References to any provisions or any statute shall be deemed to include a reference to all and every statutory amendment, modification, re-enactment and extension and to
any regulation or orders made under any of them in force on or after the date of this agreement. 

  

	1.4	Save where otherwise appears, reference to a clause or schedule shall be deemed to be a reference to a clause or schedule of or to this agreement.

  

	1.5	Headings to clauses are for the convenience of reference only and shall not affect the meaning or construction of anything contained in this agreement.

  

	2.	The Appointment 

  

	2.1	Subject to the terms of this agreement, the Company shall employ the Executive and the Executive shall serve as Vice Chairman of the Group and President (International)
of the Group and as an executive director or such other capacity as the Board may from time to time determine. 

  
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	3.	Term of Employment and Notice 

  

	3.1	Subject to earlier termination provided for in this agreement, the Appointment shall start on the Commencement Date and shall continue for an initial period of one year
and thereafter until terminated by either party giving to the other not less than 12 (twelve) months’ prior written notice of termination. 

  

	3.2	The Company may at any time in its absolute discretion elect to terminate the Appointment immediately by paying to the Executive, in lieu of any period of notice or any
part of it, an amount equivalent to the Executive’s basic salary (at the rate then payable under this agreement) for such period or part period including any bonus or benefits in kind. Such a payment shall be subject to such deductions for tax
and employee’s national insurance as are required by law and to any other authorised deductions. 

  

	3.3	For the purposes of the Employment Rights Act 1996, the Executive’s period of continuous employment with the Company commenced on 

 

	3.4	The Appointment shall in any event automatically terminate without notice and without any sum payable by the Company whether by way of compensation or otherwise, upon
the Executive’s sixty fifth birthday. 

  

	3.5	The Company shall not be obliged to provide work to the Executive at any time after notice of termination of the Appointment shall have been given by either party under
any of the provisions of this agreement and the Company may in its absolute discretion take any one or more of the following steps in respect of all or part of an unexpired period of notice:- 

 

	 	3.5.1	require the Executive to comply with such conditions as it may reasonably specify in relation to; (1) attending at or remaining away from the place(s) of business
of the Company and/or (ii) contacting or refraining from contacting all or any employees, officers, customers, clients, agents or suppliers of the Company or any Group Company; 

 

	 	3.5.2	perform part of his normal duties only or assign the Executive to duties other than his normal duties provided such duties are commensurate with his status under this
agreement; 

  

	 	3.5.3	withdraw any powers vested in, or duties assigned to the Executive; and 

  

	 	3.5.4	require the Executive to resign his directorship of any Group Company; 

 provided always that during any such period the Company shall continue to pay the Executive’s salary and all contractual benefits (unless and until this agreement shall be terminated). The Executive
shall remain an employee of the Company and shall remain bound by all obligations owed to the Company under this agreement including, but not limited to, his obligations under clause 4.5 of this agreement. 

  
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	4.	Powers and duties 

  

	4.1	During the Appointment the Executive shall at all times:- 

  

	 	4.1.1	exercise the powers and functions and perform the duties reasonably assigned to him from time to time by the Board in such manner as may be reasonably specified;

  

	 	4.1.2	well and faithfully serve the Company and use his utmost endeavours to promote and maintain the interests and reputation of the Company but so far as is reasonably
practicable, not in any way which may conflict with the interests of any Group Company; 

  

	 	4.1.3	render his services in a professional and competent manner and in willing co-operation with others; 

 

	 	4.1.4	unless prevented by ill-health or other unavoidable cause, devote his whole working time, attention and abilities exclusively to carrying out his duties hereunder and
such other time as is reasonably necessary for the proper performance of his duties; 

  

	 	4.1.5	conform to the reasonable instructions or directions of the Board (or anyone duly authorised by it) and implement and apply the policies of the Company as determined by
the Board from time to time; and 

  

	 	4.1.6	comply with the rules and procedures of the Company and of any association or professional body to which the Company and/or the Executive may from time to time belong.

  

	4.2	The Executive shall report to the Board, or such other person as the Board may from time to time direct, as and when required and shall at all times keep the Board
fully informed of his activities and shall promptly provide such information and explanations as may be requested from time to time by the Board. 

  

	4.3	The Executive shall not at any time, without the prior consent of the Board; 

 

	 	4.3.1	incur on behalf of the Company any capital expenditure in excess of such sum as may be authorised from time to time by resolution of the Board;

  

	 	4.3.2	enter into on behalf of the Company any commitment, contract or arrangement which is otherwise than in the normal course of business or is outside the scope of his
normal duties or is of an unusual or onerous or long term nature; 

  

	 	4.3.3	engage any person on terms which vary from those established from time to time by resolution of the Board; or 

  
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	 	4.3.4	dismiss any employee of the Company without giving proper statutory or (if longer) contractual notice or without following the statutory disciplinary procedure and in
any case the Executive shall immediately report any dismissal effected by him and the reason for it to the Board. 

  

	4.4	The Executive shall not at any time during the Appointment directly or indirectly enter into or be concerned in any trade or business or occupation whatsoever other
than the business of the Company except with the prior written consent of the Board which may be given subject to any conditions or terms the Board considers appropriate. This clause shall not prevent the Executive from holding up to 3% of any class
of shares, debentures or other securities in a company which is listed or dealt in on a Recognised Investment Exchange. 

  

	4.5	The Executive shall comply with all rules, regulations and codes of practice issued by the Company and the UK Listing Authority as shall from time to time be in force
relating to transactions in securities and shall comply with all requirements, recommendations or regulations of the Financial Services Authority, the London Stock Exchange Plc, the UK Listing Authority and/or any other exchange on which securities
of the Company (or other company in the Group) are from time to time listed or dealt in or any other authority or body authorised to regulate transactions in securities. 

 

	4.6	The Executive shall not contravene the provisions of Part V (Insider Dealing) of the Criminal Justice Act 1993. 

 

	4.7	In this clause the expression “occupation” includes membership of Parliament or of a local authority, council or other public or private work (whether for
profit or otherwise) which, in the reasonable opinion of the Board, may hinder or otherwise interfere with the Executive’s ability to perform his duties under this agreement. 

 

	5.	Place of Work and Travel 

  

	5.1	The Executive’s normal place of work shall be the Company’s premises in Mumbai, India or at any other location that may be agreed with the Executive.

  

	5.2	If it is necessary for the Executive to move from his present address as a result of the Company requiring him to work permanently at a location other than as set out
in clause 5.1 above, the Company will reimburse the Executive for all removal expenses directly and reasonably incurred as a result. 

  

	5.3	The Company may require the Executive to travel to such places within the United Kingdom as may reasonably be required for the proper performance of his duties.

  

	6.	Hours of Work 

  

	6.1	Normal working hours are from 9.00am to 5.00pm Monday to Friday inclusive. The Executive shall attend to the business of the Company during such other hours as may be
necessary for the proper and efficient performance of his duties under this agreement. The Executive shall not be entitled to receive any remuneration for work done outside normal working hours. 

  
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	6.2	As an Executive who has control of his own working hours the Executive hereby agrees that the maximum average weekly working time as set out in Regulation 4 of the
Working Time Regulations 1998 (“`WTR”) shall not apply to his employment under this agreement. The Executive shall be entitled to withdraw his agreement to opt out of the WTR by giving three months’ prior written notice to the
Company. 

  

	7.	Remuneration 

  

	7.1	The Company shall pay the Executive during the continuation of the Appointment a basic gross annual salary of £140,000 (less statutory and voluntary deductions).
The Executive’s basic salary shall accrue from day to day and will be payable in arrears by equal monthly instalments on or about the last working day of each month and shall be inclusive of any fees receivable by the Executive as a director of
the Company. 

  

	7.2	The Executive’s basic salary shall be reviewed annually by the Board on the Review Date and may be increased at the Board’s entire discretion.

  

	7.3	The Executive shall be eligible to participate in such share option scheme applicable to his position as the Company may introduce subject to the rules of the scheme
and the Company’s discretion. 

  

	7.4	The Executive hereby consents to the deduction from his remuneration under this agreement of any sums owing by the Executive to the Company or to any Group Company at
any time and he also agrees to make payment to the Company of any sums owed by him to the Company or any Group Company upon demand by the Company at any time. This sub clause is without prejudice to the right of the Company or any Group Company to
recover any sums or balance of sums owed by the Executive to the Company or any Group Company by legal proceedings. 

  

	8.	Bonus 

  

	8.1	The Executive shall be eligible to participate in any bonus scheme introduced by the Company applicable to him, subject to the rules of the scheme and the
Company’s discretion. The Company may amend, withdraw or substitute any bonus scheme at any time at its entire discretion. 

  

	8.2	Subject to clause 8.1, any bonus in respect of any financial year will be paid to the Executive on the last working day of the month in which the Board meets to
consider and determine the bonus provided that the Executive is still employed by the Company and not under notice. 

  

	9.	Pension 

  

	9.1	 The Company shall contribute an annual sum representing between 5% and 10% of the Executive’s annual basic salary to the Executive’s approved
personal pension plan as 

  
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nominated by the Executive and notified to the Company in writing save that such contributions are subject to the maximum annual amount permitted by the HM Revenue and Customs from time to time.

  

	9.2	There is no contracting out certificate in force in respect of the employment under the Pensions Schemes Act 1993. 

 

	10.	Reimbursement of Business Expenses 

  

	10.1	The Company shall (on production of receipts or other evidence as it may require) repay or cause to be repaid to the Executive all travelling, hotel, entertainment, and
other out-of-pocket expenses from time to time wholly, exclusively and necessarily incurred by him in the proper performance of his duties pursuant to his employment under this agreement. 

 

	11.	Insurance 

  

	11.1	The Executive shall be eligible for cover under the Company’s Private Medical Insurance Scheme (“PMI Scheme”) along with his spouse or civil partner and
his children under the age of eighteen and the Company’s Permanent Health Insurance Scheme (“PHI Scheme”). 

  

	11.2	The Executive’s entitlements under and eligibility for any PMI Scheme or PHI Scheme will be determined by the rules of the respective schemes (as amended from time
to time) and will be subject to the Executive satisfying any requirements for eligibility imposed by the scheme providers and his acceptance at standard rates of premium. 

 

	11.3	The provision of these benefits shall be at the Company’s discretion. The Company may, on giving the Executive reasonable notice replace, change or withdraw the
PMI Scheme and/or the PHI Scheme at any time as it thinks fit. The replacement or change in terms of a scheme may result in the reduction of the Executive’s entitlements or the loss or reduction of any benefit the Executive may be receiving or
about to receive at the time and the Executive shall have no claim against the Company for any loss arising from such a change. 

  

	11.4	It may be (or become) a term of the PMI Scheme and/or PHI Scheme that the Executive must remain employed by the Company to be entitled to benefits under the said
schemes. If so, this will not limit the Company’s discretion to terminate the Executive’s Appointment on grounds of incapacity to work or any other ground. The Executive agrees and acknowledges that if the Appointment is so terminated, he
may lose (without recourse to compensation against the Company or any Group Company) existing or prospective benefits under the PMI Scheme and/or PHI Scheme. 

 

	11.5	During the continuation of the Appointment, the Company shall, (subject to receipt of a medical report satisfactory to the life assurance company) and in accordance
with the terms of the relevant policy from time to time in force, provide the Executive with life assurance which, in the event of his death while in service, shall provide a lump sum to the value of four times his basic salary (at the then annual
rate). 

  
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	11.6	Any benefits provided by the Company to the Executive or his family which are not expressly referred to in this agreement shall be regarded as ex-gratia and at the
entire discretion of the Company and shall not form part of the Executive’s contract of employment. 

  

	12.	Holiday 

  

	12.1	In addition to the usual statutory bank holidays in England, the Executive shall be entitled to 25 working days’ paid holiday for each complete calendar year
worked (and pro rata for part of each calendar year worked) to be taken at such time or times as may be approved by the Board in advance. Holiday entitlement shall accrue from day to day. 

 

	12.2	Holiday entitlement may not be carried forward to the next calendar year save with the prior written agreement of the Board and no money will be paid in lieu of any
such untaken holiday. 

  

	12.3	In the event that the Company or the Executive gives notice of termination of the Appointment, the Company may require the Executive to take any holidays which have or
will have accrued by the Termination Date during the period of notice, in which case the Executive shall not be entitled to any payment in lieu of such holidays. 

 

	12.4	On the termination of this agreement the Company shall pay the Executive for any accrued but untaken holiday. If the Executive shall have taken more days’ paid
holiday than his accrued entitlement as at the Termination Date, the Executive shall repay to the Company the appropriate amount for each day’s paid holiday taken in excess of his accrued entitlement. A day’s pay shall be 1/260th of his
basic salary and fractions of days shall be rounded to the nearest whole day. 

  

	13.	Incapacity 

  

	13.1	When absent due to sickness or any other reason, the Executive must inform a member of the Board of the cause(s) of his absence as soon as possible on the first working
day of absence unless there is a reasonable explanation as to why this is not possible. A self-certification form must be completed to cover up to the first seven days of absence. A doctor’s medical certificate must be provided for absences of
eight consecutive days or more due to sickness, injury or other incapacity. Certificates must be provided to cover completely any subsequent and consecutive period of absence. 

 

	13.2	The Company has the right to require the Executive at any stage of absence to produce a medical certificate from a registered medical practitioner.

  

	13.3	If required by the Board the Executive shall undergo examinations by a medical adviser to be appointed or approved by the Board and the Executive hereby authorises such
medical adviser to disclose the results of any such examination (including any Sensitive Personal Data as defined in the Data Protection Act 1998) to the Board and discuss with it any matters arising from the examination as might impair the
Executive in properly discharging his duties under this agreement. 

  
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	13.4	Statutory sick pay will be paid by the Company according to the rates in force from time to time. The qualifying days for statutory sick pay purposes shall be Monday to
Friday inclusive. Any payments which the Company may make to the Executive in addition to his entitlement to any statutory sick pay shall be at the absolute discretion of the Company and shall be inclusive of statutory sick pay and without prejudice
to the Company’s right to terminate this agreement. The Executive shall be entitled to sick pay for a period or periods not exceeding an aggregate of 90 working days’ absence in any consecutive twelve month period. Any sick pay shall be
paid at the rate of the Executive’s salary (less any deduction for statutory sick pay or other benefit or payments made under any PHI Scheme provided by the Company) and shall be made entirely at the discretion of the Company.

  

	13.5	The Company shall be entitled to deduct from any such remuneration the amount (if any) which the Executive is entitled to claim in consequence of his incapacity by way
of state sickness related benefits or by way of income from any health insurance scheme operated by the Company for the benefit of the Executive whether or not a claim is made. 

 

	13.6	If the Executive is incapable of performing his duties by reason of any accident, illness or injury or other incapacity caused wholly or partly by any act or omission
of any third party in relation to which the Executive may be or become entitled to recover damages or compensation, then all net payments made to the Executive under this clause 13 in respect of the said absence shall be loans to the Executive to be
repaid if and to the extent that he recovers damages or compensation for loss of earnings from the said third party and/or from the Criminal Injuries Compensation Board or the Motor Insurers’ Bureau or any other similar body by action or
otherwise. Where the Executive receives any damages or compensation for loss of earnings, he shall notify the Company in writing forthwith and shall repay the amount due to the Company under this clause within 28 days of receipt of the said damages
or compensation. 

  

	13.7	The Company shall be entitled during any period during which the Executive is absent due to accident, illness or injury or other incapacity to appoint any other person
or persons to perform the duties and exercise the powers of the Executive in his place on such terms and conditions as the Company shall see fit. On resuming office all powers are to be vested back to the Executive. 

 

	14.	Confidentiality 

  

	14.1	The Executive acknowledges that during his employment by the Company he will receive and have access to Confidential Information. 

 

	14.2	All rights, title and interest in and to the Confidential Information shall remain the exclusive property of the Company or, where appropriate, any Group Company and
the Executive shall not during the continuance of the Appointment (otherwise than in the proper performance of his duties) or at any time after the Termination Date directly or indirectly use, divulge, export or communicate to any person, firm,
company or other organisation any Confidential Information for any purpose whatsoever and shall use his best endeavours to prevent its unauthorised publication, use or disclosure. This obligation shall be in addition to and not in substitution for
any express or implied duty of confidentiality owed by the Executive to the Company or any Group Company. 

  
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	14.3	After the Termination Date, the restrictions at clause 14.2 shall not apply in respect of any Confidential Information: 

 

	 	14.3.1	in the public domain, otherwise than as a result of any unauthorised act or omission on the part of the Executive; or 

 

	 	14.3.2	which the Executive is required by law to disclose, provided that the Executive first notifies the Company in writing that he is required to disclose such Confidential
information. 

  

	 	 	Nothing in this agreement shall prevent the Executive from making a protected disclosure as defined in the Employment Rights Act 1996. 

 

	15.	Intellectual Property 

  

	15.1	Should the Executive discover or participate in the making or discovery of Intellectual Property in the course of his employment under this agreement (irrespective of
whether he was carrying out his normal duties or others specifically assigned to him) then all such Intellectual Property shall belong to the Company absolutely in accordance with the provisions of the Registered Designs Act 1949, the Patents Act
1977 and the Copyright, Designs and Patent Act 1988. 

  

	15.2	The Executive will forthwith notify to the Company full details of all Intellectual Property which he may make, discover or participate in the making or discovery
during the Appointment whether or not in the course of his employment, under this agreement and will keep the Company appraised at all times of the stage that has been reached in relation to any improvement or creation of such Intellectual Property.
If the Company requests (and at its expense) the Executive shall give and supply all such information, data, drawings and assistance as may be required to enable the Company to exploit the Intellectual Property to the best advantage.

  

	15.3	At the Company’s expense but without payment to the Executive, the Executive shall take all steps and carry out all acts that may be necessary to ensure that title
to the Intellectual Property is lawfully vested in the Company, including signing all applications and executing any other documents that may be necessary and will carry out such acts and steps with expedition on the instructions of the Company, in
particular where the filing of any claim to such Intellectual Property right may give the Company priority. 

  

	15.4	The Executive hereby irrevocably appoints the Company as his attorney in his name and on his behalf to execute any documents and generally to act and to use his name
for the purpose of giving the full benefit of this clause to the Company (or its nominee). A certificate in writing signed by a director or the secretary of the Company that an instrument or act falls within the authority confirmed by this clause
shall be conclusive evidence in favour of a third party that it is the case. 

  
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	15.5	The Executive waives all of his moral rights as defined in the Copyright, Designs and Patents Act 1988 in relation to the Intellectual Property which is the property of
the Company by virtue of clause 15.1. 

  

	15.6	If the Executive makes, discovers or participates in the making or discovery of any Intellectual Property during his Appointment under this agreement but which is not
the property of the Company or any Group Company under clause 15.1, the Company shall, subject only to the provisions of the Patents Act 1977, have the right to acquire for itself or its nominee the Executive’s rights in the Intellectual
Property within three months after disclosure under clause 15.2 on fair and reasonable terms to be agreed or settled by a single arbitrator. 

  

	15.7	The provisions of this clause 15 shall remain in force with regard to any Intellectual Property made or discovered during the Executive’s Appointment under this
agreement and shall be binding upon his representatives notwithstanding the termination of the Appointment. 

  

	16.	Termination 

  

	16.1	Notwithstanding the provisions of clause 3.1 above, the Company may terminate the Appointment at any time, immediately without notice and without any obligation to pay
any further sums to the Executive whether by way of compensation, damages or otherwise in respect of or in lieu of any notice period or unexpired term of the agreement, and without prejudice to any other rights of the Company if the Executive:

  

	 	16.1.1	commits any repeated or continued material breach, or any serious breach of his obligations to the Company having first been given a reasonable opportunity to remedy
the breach (provided it is capable of remedy) by notification from the Board in writing, but having failed to do so; or 

  

	 	16.1.2	is convicted of a serious criminal offence (other than an offence under road traffic legislation for which imprisonment is not a sanction); or 

 

	 	16.1.3	becomes of unsound mind or a patient within the meaning of the Mental Health Act 1983; or 

 

	 	16.1.4	acts in any manner which in the opinion of the Board brings or is likely to bring him, the Company or any Group Company into material disrepute; or

  

	 	16.1.5	fails or neglects efficiently and/or diligently to carry out his duties to the reasonable satisfaction of the Board; or 

 

	 	16.1.6	is guilty of gross misconduct or any other conduct which, in the opinion of the Board is calculated or likely to materially affect prejudicially the interests of any
Group Company whether or not such misconduct or other conduct occurs during or in the context of the Appointment; or 

  

	 	16.1.7	resigns as a director of the Company other than at the request of the Board; or 

  
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	 	16.1.8	is disqualified from being a director of a company by reason of an order made by a competent court or otherwise becomes prohibited by law from being a director of a
company; or 

  

	 	16.1.9	has an interim receiving order made against him, becomes bankrupt or makes a composition or enters into a deed of arrangement with his creditors; or

  

	 	16.1.10	is convicted of an offence under Part V of the Criminal Justice Act 1993 or under any other statutory enactment or regulations relating to insider dealing.

  

	 	16.1.11	fails to comply with the Company’s rules in relation to compliance; 

  

	16.2	The rights of the Company under clause 16.1 are without prejudice to any other rights it might have under this agreement or at law to terminate the Appointment or to
accept any breach of the agreement on the part of the Executive as having brought the agreement to an end. For the avoidance of doubt, where there are no circumstances justifying summary dismissal under clause 16.1, the methods by which the Company
may terminate the Appointment are not restricted to the giving of notice in accordance with clauses 3.1 (term of employment) or 16.3 (termination on account of illness or injury) or to the making of a payment in lieu of notice under clause 3.2
(payment in lieu of notice) and accordingly, if the Company terminates the Appointment without giving notice or without making a payment in lieu of notice, any damages to which the Executive may be entitled shall be calculated in accordance with
ordinary common law principles including those relating to mitigation of loss and accelerated receipt. 

  

	16.3	Without prejudice to clauses 16.1 and 3.2, but notwithstanding any other provision of this agreement, if the Executive shall become unable to perform his duties
properly by reason of accident, illness or injury for a period or periods aggregating at least 120 days in any period of 12 consecutive calendar months (the “Period or Periods of Incapacity”) then the Company may, by not less than six
months’ prior written notice to the Executive given at any time while the Executive is incapacitated by accident, illness or injury from performing his duties under the agreement, terminate the Appointment provided that the Company shall
withdraw any such notice if during the currency of the notice the Executive returns to full time duties and provides a medical practitioner’s certificate satisfactory to the Board to the effect that he has fully recovered his health and that no
recurrence of his illness or injury can reasonably be anticipated. 

  

	16.4	The Company may suspend the Executive on full pay at any time to investigate any allegations of misconduct relating to him and to hold a disciplinary hearing.

  

	16.5	Upon termination of the Appointment howsoever caused or, if so requested by the Company, on notice being served by either party on the other to terminate the
Appointment the Executive shall; 

  

	 	16.5.1	immediately deliver up to the Company any property belonging to the Company or any Group Company and any document, computer disk or other data storage device containing
any Confidential Information and shall cease to represent herself as being in any way connected with the Company or any Group Company; 

  
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	 	16.5.2	irretrievably delete any information relating to the business of the Company or any Group Company stored on any magnetic or optical disk or memory and all matter
derived therefrom which is in his possession, custody, care or control outside the premises of the Company or any Group Company and shall produce such evidence of compliance with this sub-paragraph as the Company may require; and

  

	 	16.5.3	at the request of the Board, immediately resign any directorship office or appointment held by him in the Company or any Group Company without any claim for
compensation or damages for loss of such office or appointment and in the event of his failure to do so within five days of such request the Executive hereby irrevocably appoints the Company as his attorney to execute letters of resignation of such
directorships, offices or appointments on his behalf and to take such other steps as are necessary to give effect to such resignations; and 

  

	 	16.5.4	transfer to the Company, or as it may direct all shares held by him in the Company or in any Group Company as nominee or trustee for the Company and deliver to the
Company the certificates therefor and the Executive hereby irrevocably appoints the Company his attorney to execute any such transfers on his behalf. 

  

	16.6	The termination of the Appointment shall not operate to affect those provisions of this agreement which are intended to have effect after the Termination Date.

  

	17.	Post Termination Restrictions 

  

	17.1	For a period of six months immediately following the Termination Date, the Executive shall not, whether by herself or by any servant or agent or otherwise howsoever,
and whether on the Executive’s own account or on behalf of or in conjunction with any other person, firm, company or other organisation directly or indirectly: 

 

	 	17.1.1	carry on or assist with, be employed by, be engaged by, hold a position with, be concerned in, interested in or control the carrying on of any activity or business
which is the same as or competes with the Restricted Business anywhere in any Restricted Territory, (except as the holder of shares in a company whose shares are listed on a Recognised Investment Exchange which confer not more than 3% in total of
the votes which could normally be cast at a general meeting of that company); 

  

	 	17.1.2	in relation to any business which is the same as or in competition with the Restricted Business conduct any business, perform any services for or canvas, solicit or
approach or cause to be canvassed or solicited or approached for the purpose of obtaining business, orders or custom, or otherwise deal with any person, firm, company or other organisation which was a client or customer of the Company or any Group
Company at the Termination Date or during the Relevant Period and with whom the Executive had any dealings or of whom the Executive was aware in the course of his employment; 

  
 15 

	 	17.1.3	in relation to any business the same as or in competition with the Restricted Business conduct any business, perform any services or supply goods to, canvas, solicit or
approach or cause to be canvassed, solicited or approached for the purpose of obtaining business, orders of custom any Prospective Customer with whom the Executive had any dealings in the course of his duties at any time in the Relevant Period.

  

	17.2	For a period of twelve months immediately following the Termination Date, the Executive shall not, whether by herself or by any servant or agent or otherwise howsoever,
and whether on the Executive’s own account or on behalf of or in conjunction with any other person, firm, company or other organisation directly or indirectly: 

 

	 	17.2.1	offer employment to or employ or offer to or conclude a contract for services in the Restricted Territory with any Restricted Employee or procure or facilitate the
making of such an offer; 

  

	 	17.2.2	seek to entice away from the Company or any Group Company or otherwise solicit or interfere with the relationship between the Company and any Restricted Supplier or any
Group Company and any Restricted Supplier. 

  

	17.3	The Executive shall not at any time after the Termination Date; 

  

	 	17.3.1	directly or indirectly anywhere in any Restricted Territory carry on a business either alone or jointly with or as officers, manager, agent, consultant or employee of
any person whether similar to any part of the business of the Company or any Group Company (as conducted at any time) or otherwise under a title or name comprising or containing the word “Eros” or any colourable imitation thereof and he
will at all times procure that any company controlled by him will not carry out such business under any such title or name; and 

  

	 	17.3.2	say or do anything which is harmful to the reputation or goodwill of the Company or any Group Company or likely to or calculated to lead to any person, firm, company or
other organisation to withdraw from or cease to continue to offer a Group Company any rights of purchase, sale, import, distribution or agency enjoyed by it; 

 

	 	17.3.3	hold herself out falsely as being in any way connected with any Group Company; and 

 

	 	17.3.4	solicit, entice or procure or endeavour to solicit, entice or procure any employee to breach his contract of employment with the Company or any Group Company or any
person to breach his contract for services with the Company or any Group Company. 

  

	17.4	The period of each of the above restrictions shall be reduced by the period, if any, during which the Company exercises its rights under clause 3.5.

  
 16 

	17.5	The Executive has had an opportunity to consider the restrictions prior to execution of this agreement and agrees that each of the restrictions set out above
constitutes an entirely separate, severable and independent covenant and restriction upon him the duration, extent and application of each of which is no greater than is reasonably necessary for the protection of goodwill and the legitimate trade
connections of the Restricted Business. 

  

	17.6	Further, if a restriction on him contained in this agreement is found void but would be valid if some part of it were deleted, the restriction shall apply with such
deletion as may be necessary to make it valid and effective. 

  

	17.7	The Executive recognises that given his role with the Company and within the Group and the Group’s structure the Company has an interest in the business of the
other Group Companies which it is legitimate for it to protect by the covenants set out above. 

  

	17.8	Notwithstanding and without prejudice to the foregoing of this clause it is acknowledged by the Executive that the Company holds the benefit of these covenants on trust
for any Group Company as the Company may direct in substantially the same terms as the covenants the Executive has entered into with the Company. If so requested by the Company, the Executive shall enter into separate contracts with a Group Company.

  

	17.9	The Executive shall show these restrictions to any firm, person, company or other organisation which is the same as or competes with or proposes or is likely to compete
with the Restricted Business which offers him employment or a contract for services to him and which he accepts or is minded to accept. 

  

	18.	Data Protection 

  

	18.1	The Executive shall at all times during the Appointment act in accordance with the Data Protection Act 1998 (the “DPA”) and shall comply with any policy
introduced by the Company from time to time to comply with the DPA. Breach of this undertaking will constitute a disciplinary offence. 

  

	18.2	The Executive hereby consents to the Company holding and processing both electronically and manually the Personal Data it collects which relates to the Executive which
is necessary or reasonably required for the proper performance of this agreement, for management, administrative and other employment related purposes (both during and after the Appointment) or for the conduct of the Group’s business or to
comply with applicable laws, rules and regulations (the “Authorised Purposes”) and the Executive agrees to provide the Group with all Personal Data relating to him which is necessary or reasonably required for the Authorised Purposes.

  

	18.3	The Executive explicitly consents to the Company or any other Group Company processing his Personal Data, including his Sensitive Personal Data, where this is necessary
or reasonably required to achieve one or more of the Authorised Purposes. 

  

	18.4	 The Executive acknowledges that the Company may, from time to time collect or disclose his Personal Data (including his Sensitive Personal Data) from
and to third parties (including without limitation the Executive’s referees, any management 

  
 17 

	 	
consultants or computer maintenance companies engaged by the Company, the Company’s professional advisers, other Group Companies, any suppliers of goods or services to the Group and any
potential purchasers of the business, the Company and/or the Group). The Executive consents to such collection and disclosure even where this involves the transfer of such data outside the European Economic Area where this is necessary or reasonably
required to achieve one or more of the Authorised Purposes or is in the interests of the Company and/or its shareholders. 

  

	18.5	Further, the Executive consents to the transfer of Personal Data to any employee of the Company who has requested any Personal Data in an equal pay or other
questionnaire served pursuant to statute provided that the transfer of Personal Data is limited to Personal Data lawfully requested and subject to the Company first receiving a written undertaken from the requesting employee to keep any disclosed
Personal Data strictly confidential and not to use the disclosed Personal Data for any purpose other than pursuing legal proceedings in an Employment Tribunal. 

 

	18.6	The Company agrees to process any Personal Data made available to it by the Executive in accordance with the provisions of the DPA. 

 

	18.7	In this clause “Data Controller” “Personal Data” “processing” and “Sensitive Personal Data” shall have the meaning set out in
sections 1 and 2 of the DPA. 

  

	19.	Grievance and Disciplinary procedures 

  

	19.1	The Company shall comply with the statutory procedures in force from time to time in relation to any grievance or disciplinary matters involving the Executive.

  

	19.2	If the Executive has any grievance relating to the Appointment he should raise it with the Managing Director either orally or in writing. If he is dissatisfied with
that person’s decision he should refer the matter in writing to the Board, whose decision shall be final. In the event that the Executive’s grievance relates to the Managing Director, he should raise it with the Chairman initially, either
orally or in writing and then the Board; if he is dissatisfied with the Chairman’s decision, the Board’s decision shall be final. 

  

	19.3	Any disciplinary matters relating to the Executive shall be dealt with by the Board. 

 

	20.	Capacity 

  

	20.1	The Executive warrants that in entering into this agreement and performing his obligations under it, he will not be in breach of any terms or obligations under any
further or other employment or appointment and will not become precluded from entering into this agreement or fulfilling his obligations under it and he will indemnify the Company against any costs, claims or demands against it arising out of any
such breach by him. 

  

	21.	General 

  

	21.1	 This agreement constitutes the entire agreement between the Company and the Executive in connection with the Appointment and operates in substitution
for and to the exclusion 

  
 18 

	 	
of any terms of employment, arrangements, or other agreements in force between the Company and the Executive or any Group Company and the Executive but without prejudice to any rights of action
already accrued in respect of any breach of this agreement by the other party. 

  

	21.2	No agreement made between the Company and the Executive or any Group Company and the Executive nor any amendment to this agreement will be legally binding on the
Company, any Group Company or the Executive unless and until that agreement or amendment is confirmed in writing by the Company or (as the case may be) any Group Company and the Executive. 

 

	21.3	The provisions of this agreement are severable and if any provision is held to be invalid or unenforceable by any court or body of competent jurisdiction then such
invalidity or unenforceability shall not effect the remaining provisions of this agreement. 

  

	21.4	There are no collective agreements in place in relation to the Executive’s Appointment. 

 

	21.5	Any communication under this agreement shall be deemed served if, when addressed to the party, it is left at or sent by registered or recorded delivery post or by
facsimile transmission or other electronic means of written communication with confirmation by letter given by close of business on the next following business days to the addresses set out in this agreement or to such other addresses as maybe
notified by the parties for the purpose of this clause. Any communication to the Company must be marked “For the attention of the Company Secretary”. 

 

	21.6	Communications which are sent or despatched as set out below shall be deemed to have been received by the addressed as follows: 

 

	21.6.1	by post – 2 business days after despatch; 

  

	21.6.2	by facsimile transmission or other electronic means of written communication—on the business day next following the day of which the communication was sent.

  

	21.7	In proving service by post it shall only be necessary for a party to prove that the communication was in an envelope which was duly addressed, stamped and posted by
registered or recorded delivery post. 

  

	21.8	For the purpose of this clause a “business day” means a day on which the clearing banks in the City of London are open for business. “Close of
Business” means 18:00 hours local time in London. 

  

	21.9	This agreement shall be governed by and construed in accordance with the laws of England and Wales and each party to this agreement submits to the exclusive
jurisdiction of the English courts. 

  

	21.10	Except as expressly provided for above, nothing in this agreement confers on any third party any benefits under the provisions of the Contracts (Rights of Third
Parties) Act 1999. 

  
 19 

 IN WITNESS whereof the parties hereto have entered into this agreement as a Deed on the day and year
first above written. 
  

							
	 EXECUTED as a DEED by

 
 EROS NETWORK LIMITED

 
 acting by
	  	   

 
  
  
	)  
 )
  

)
	    
   
  

  
	  	 /s/ Vijay Ahuja
 Director

			
		  				  	 /s/ Kishore Lulla
 Director/Secretary

			
	 SIGNED as a DEED by

 
 VIJAY AHUJA

 
 in the presence of:
	  	   

 
  
  
	)  
 )
  

)
	    
   
  

  
	  	 /s/ Vijay Ahuja
  

 
  

 

							
				
	 Signed
	 	 	  		  	
				
	 Witness signature 
	 	 /s/ D. Langford
	  		  	
				
	 Witness name
	 	 D. Langford
	  		  	
				
	 Witness address
	 	 19 Cavendish Square 
	  		  	
				
	 	 	 London
	  		  	
				
	 	 	 	  		  	

							
				
	 Witness occupation 
	 	 Solicitor
	  		  	

  
 20Rule of the Eros International Plc Bonus Share Plan Unapproved Option Scheme

 Exhibit 10.8 
 EROS INTERNATIONAL PLC 
 Rules of the 

Eros International plc Bonus Share Plan 
 Unapproved Option Scheme 2006 
 (Established by resolution of the Board on
17 May 2006) 

  
 Page 1

 INDEX 
 Rule 
  

							
	1	  	Interpretation	  	 	1	  
			
	2	  	Eligibility	  	 	4	  
			
	3	  	Grant of Options	  	 	4	  
			
	4	  	Relationship with Contract of Employment	  	 	5	  
			
	5	  	Non-transferability of Options	  	 	6	  
			
	6	  	Exercise Price	  	 	6	  
			
	7	  	Performance-Related Conditions of Exercise	  	 	6	  
			
	8	  	Exercise of Options	  	 	7	  
			
	9	  	Manner of Exercise of Options	  	 	8	  
			
	10	  	Overall Limit on the Granting of Options	  	 	9	  
			
	11	  	Individual Limits on the Granting of Options	  	 	10	  
			
	12	  	Demerger, Reconstruction or Winding-up	  	 	10	  
			
	13	  	Take-over	  	 	11	  
			
	14	  	Variation of Share Capital	  	 	12	  
			
	15	  	Alteration of Scheme	  	 	12	  
			
	16	  	Service of Documents	  	 	13	  
			
	17	  	Taxation	  	 	14	  
			
	18	  	Miscellaneous	  	 	15	  

  
 Page 2

 Schedule 
 Option Certificate and Form of Acceptance 
 Notice of Exercise of Option 

Explanatory Notes to Participants 

  
 Page 3

	1.	INTERPRETATION 

  

	1.1	In this Scheme (unless the context otherwise requires) the following words and phrases have the meanings given below: 

 

			
		
	‘AIM’	  	the Alternative Investment Market of the London Stock Exchange;
		
	‘Auditors’	  	the auditors of the Company for the time being;
		
	‘Business Day’	  	a day on which clearing banks in the United Kingdom are open for business generally;
		
	‘Committee’	  	the remuneration committee of the Directors;
		
	‘Company’	  	Eros International plc (registered in the Isle of Man and whose registered office is at 15-19 Athol Street, Douglas, Isle of Man IM1 1 LB)
		
	‘Control’	  	has the meaning ascribed to it in section 840 of the Taxes Act;
		
	‘Date of Grant’	  	in relation to any Option, the date on which that Option is granted;
		
	‘Directors’	  	the board of directors of the Company from time to time or a duly constituted Committee thereof;
		
	‘Eligible Participants’	  	any person who is an employee or a director of any member of the Group;

  
 Page 1

			
		
	‘Exercise Price’	  	in relation to an Option, the price per Share payable upon the exercise of that Option;
		
	‘Group’	  	the Company, any holding company of the Company and each and every company which is for the time being a Subsidiary of the Company or such holding company;
		
	‘London Stock Exchange’	  	London Stock Exchange plc;
		
	‘Option’	  	right to acquire Shares granted in accordance with and subject to the rules of this Scheme;
		
	‘Optionholder’	  	person who has been granted an Option or, if that person has died, his Personal Representatives;
		
	‘Option Tax Liability’	  	in relation to any Optionholder, any liability of the Company or any other member of the Group (excluding NIC payable by the Company or any other member of the Group) to account for
any amount of income tax, National Insurance Contribution or other tax arising in relation to the grant, exercise or otherwise in relation to his Option;
		
	‘Ordinary Share Capital’	  	issued share capital of the Company from time to time;

  
 Page 2

			
		
	‘Personal Representative’	  	in relation to an Optionholder, the legal personal representatives of the Optionholder (being either the executors of his will to whom a valid grant of probate has been made or if
he dies intestate the duly appointed administrator(s) of his estate) who have provided to the Directors evidence of their appointment as such;
		
	‘this Scheme’	  	The Eros International plc Bonus Share Plan Unapproved Option Scheme 2006 as set out in these rules and amended from time to time;
		
	‘Shares’	  	fully paid ordinary shares in the capital of the Company;
		
	‘Shareholder’	  	person who holds one or more shares in the Company and is thereby entitled to vote at general meetings of the Company
		
	‘Subsidiary’	  	any company which is for the time being both a subsidiary (as defined in section 736 of the Companies Act 1985) of the Company and under the Control of the Company;
		
	‘Taxes Act’	  	the Income and Corporation Taxes Act 1988; and
		
	‘Value’	  	in relation to a Share on a given day, the prevailing mid market value as shall be determined by the Auditors.

  
 Page 3

	1.2	References to an Option vesting or being or becoming vested in respect of any number or proportion of the Shares over which it subsists are to be read as references to
the Option becoming capable of being exercised either immediately or, subject to the Optionholder continuing to hold office or employment within the Group, at some future time. 

 

	1.3	References to Shares in respect of which an Option subsists at any time are to be read and construed as references to the Shares over which the Option is then held (and
in respect of which it has not then lapsed and ceased to be exercisable). 

  

	1.4	Any reference to any enactment shall include any consolidation, modification, extension, amendment or re-enactment and to any subordinate legislation made under it for
the time being in force. 

  

	1.5	Words denoting the masculine gender shall include the feminine. 

  

	1.6	Words denoting the singular shall include the plural and vice versa. 

  

	1.7	References to rules are to the rules of this Scheme. 

  

	2.	ELIGIBILITY 

  

	2.1	Subject to the following provisions of this rule 2, the Committee shall have absolute discretion as to the selection of persons to whom an Option is granted by the
Company. 

  

	2.2	An Option shall not be granted to any person unless he is an Eligible Participant. 

 

	2.3	No Option shall be granted to any Eligible Participant within the period of one year ending on the date on which he is to reach the age of 65. 

 

	3.	GRANT OF OPTIONS 

  

	3.1	An Option may only be granted: 

  

	 	(a)	at any time within the period of 42 days beginning with the date on which this Scheme is approved by the Committee; and 

 

	 	(b)	within a period of 14 days immediately after the person to whom it is granted first becomes an Eligible Participant. 

  
 Page 4

	3.2	In the event of the Company being restricted by statute, order or regulation from granting an Option in accordance with rule 3.1, an Option may be granted within 42
days of the removal of such restriction. 

  

	3.3	No Option may be granted after the tenth anniversary of the Scheme being approved by Shareholders. 

 

	3.4	An Option shall be granted by the Company executing as a deed and issuing to the Optionholder an option certificate which contains an undertaking by the Optionholder
(duly executed as a deed) to be bound by the rules of this Scheme and which specifies:- 

  

	 	(a)	the Date of Grant; 

  

	 	(b)	the number of Shares in respect of which the Option is granted; 

  

	 	(c)	the Exercise Price; 

  

	 	(d)	the earliest date on which the Option may be exercised by reason of rule 8.2; 

 

	 	(e)	that the exercise of the Option is subject to such performance-related conditions (if any) as are imposed pursuant to rule 7; 

 

	 	(f)	that the Optionholder agrees to indemnify the Company or other member of the Group, as the case may be, in respect of any Option Tax Liability 

and is otherwise in such form as the Committee may from time to time determine. 

 

	4.	CONTRACTUAL RELATIONSHIP 

  

	4.1	The grant of an Option does not form part of the Optionholder’s entitlement to remuneration or benefits pursuant to any member of the Group nor does any such
contract give such person any right or entitlement to have an Option granted to him in respect of any number of Shares or any expectation that an Option might be granted to him whether subject to any conditions or at all. 

 

	4.2	The rights and obligations of an Optionholder under the terms of any contract with a member of the Group shall not be affected by the grant of an Option.

  

	4.3	The rights granted to an Optionholder upon the grant of an Option shall not afford the Optionholder any rights or additional rights to compensation or damages in
consequence of the loss or termination of his office or employment with a member of the Group. 

  
 Page 5

	4.4	An Optionholder shall not be entitled to any compensation or damages for any loss or potential loss which he may suffer by reason of being or becoming unable to
exercise an Option in consequence of the loss or termination of his office or employment with a member of the Group for any reason (including, without limitation, any breach of contract by an employer) or in any other circumstances whatsoever.

  

	5.	NON-TRANSFERABILITY OF OPTIONS 

  

	5.1	During his lifetime only the individual to whom an Option is granted may exercise that Option. 

 

	5.2	An Option shall immediately cease to be exercisable if: 

  

	 	(a)	it is purported to be transferred or assigned (other than to his Personal Representatives upon the death of the Optionholder), mortgaged, charged or otherwise disposed
of by the Optionholder; or 

  

	 	(b)	the Optionholder is adjudicated bankrupt or a bankruptcy order is made against the Optionholder; or 

 

	 	(c)	the Optionholder is deprived (otherwise than on death) of the legal or beneficial ownership of the Option by operation of law or by the Optionholder doing or omitting
to do anything which causes him to be so deprived. 

  

	6.	EXERCISE PRICE 

  

	6.1	The Exercise Price shall be determined by the Committee but shall not be less than the greater of the Value of a Share on the Date of Grant or the nominal value of a
Share. 

  

	7.	PERFORMANCE-RELATED CONDITIONS OF EXERCISE 

  

	7.1	Subject to rule 7.4, the exercise of an Option may be conditional upon the performance of the Company and/or the performance of another member of the Group over such
period and measured against such objective criterion as shall be determined by the Committee and notified to the Optionholder when the Option is granted. 

  
 Page 6

	7.2	Any such condition may provide that the Option shall become vested in respect of a given number or proportion of the Shares over which it subsists according to whether,
and the extent to which, any given performance target is met or exceeded. 

  

	7.3	After an Option has been granted the Committee may, in appropriate circumstances, amend any such performance-related condition of exercise of an Option provided that no
such amendment shall be made unless such amendment will afford a more effective incentive to the Optionholder and will be no more difficult to satisfy than were the original conditions when first set. 

 

	7.4	If, in consequence of a performance-related condition being met, an Option becomes vested in respect of some but not all of the number of Shares over which it subsists,
it shall thereupon lapse and cease to be exercisable in respect of the balance of the Shares over which it was held. 

  

	7.5	Until further notification by the Committee, no performance criteria shall apply to Options granted pursuant to this Scheme. 

 

	8.	EXERCISE OF OPTIONS 

  

	8.1	An Option may not in any event be exercised later than 30 June 2016. 

  

	8.2	An Option shall not be exercised earlier than such period as may be specified by the Committee at the relevant Date of Grant, save as provided in rules 8.3, 8.4, 8.5,
12 and 13. 

  

	8.3	If an Optionholder dies in service an Option granted to him may be exercised by his Personal Representatives within the period of 12 months beginning with the date of
his death, and if not then exercised shall lapse and cease to be exercisable at the end of that period. 

  

	8.4	If an Optionholder dies after ceasing to hold office or employment within the Group an Option granted to him which has not already lapsed may, within the period of 12
months beginning with the date of death, be exercised by his Personal Representatives, and if not then exercised shall lapse and cease to be exercisable at the end of that period of 12 months. 

  
 Page 7

	8.5	If an Optionholder ceases to hold office or employment within the Group by reason of: 

 

	 	(a)	injury, ill-health or disability (evidenced to the satisfaction of the Committee); or 

 

	 	(b)	dismissal by reason of redundancy (within the meaning of the Employment Rights Act 1996); or 

 

	 	(c)	retirement on reaching 65 years or any other earlier age at which he is bound to retire in accordance with the terms of his contractor of employment; or

  

	 	(d)	the company with which he holds office or employment by virtue of which he is eligible to participate in this Scheme ceasing to be an Associated Company or a member of
the Group; or 

  

	 	(e)	the fact that the office or employment by virtue of which he is eligible to participate in this Scheme relates to a business or part of a business which is transferred
to a company which is not a member of the Group; 

 then, subject to rule 8.4, an Option granted to him may only be
exercised within the period of 12 months beginning with the date on which the Optionholder so ceases and if not then exercised shall lapse and cease to be exercisable at the end of that period of 12 months. 

 

	8.6	If an Optionholder: 

  

	 	(a)	gives or receives notice to terminate the office or employment by virtue of which he was granted an Option; or 

 

	 	(b)	ceases to hold office or employment with any member of the Group for any reason other than those set out in rules 8.3 and 8.5 then an Option granted to him shall lapse
and cease when he ceases to hold such office or employment. 

  

	8.7	For the purposes of this rule 8 an Optionholder shall not be treated as having ceased to hold office or employment within the Group unless and until he no longer holds
any office or employment with any member of the Group. 

  

	9.	MANNER OF EXERCISE OF OPTIONS 

  

	9.1	An Option shall be exercised only by the Optionholder serving a written notice upon the Company which: 

 

	 	(a)	specifies the number of Shares in respect of which that Option is exercised; 

  
 Page 8

	 	(b)	is accompanied by payment of an amount equal to the product of the number of Shares specified in the notice and the Exercise Price; and 

 

	 	(c)	unless the Committee otherwise permit, is accompanied by the Option Certificate in respect of that Option 

and is otherwise in such form as the Committee may from time to time determine. The notice of exercise shall be treated as served on the
Company on the date upon which it is received by the Company. 
  

	9.2	Within the period of 30 days beginning with the date on which the requirements of rule 9.1 are satisfied, the Company shall allot to the Optionholder (or such other
person as the Optionholder may direct) the Shares specified in the notice. 

  

	9.3	As soon as reasonably practicable after the allotment or transfer of any Shares pursuant to rule 9.2, the Company shall issue to the Optionholder (or other person as
directed by the Optionholder) a definitive share certificate or such acknowledgement of shareholding as is prescribed from time to time in respect of the Shares so allotted or transferred. 

 

	9.4	The allotment or transfer of any Shares under this Scheme shall be subject to the Memorandum and Articles of Association of the Company and to any necessary consents of
any governmental or other authorities under any enactments or regulations from time to time in force and it shall be the responsibility of the Optionholder to comply with any requirements to be fulfilled in order to obtain or obviate the necessity
of any such consent. 

  

	9.5	All Shares allotted or transferred under this Scheme shall rank equally in all respects with the Shares for the time being in issue save as regards any rights attaching
to such Shares by reference to a record date prior to the date of such allotment or transfer. 

  

	10.	OVERALL LIMIT ON THE GRANTING OF OPTIONS 

  

	10.1	The aggregate number of Shares in respect of which Options may be granted (both exercised and those which remain exercisable and have not lapsed), but excluding those
have lapsed and cancelled, taken together with options already granted under this Scheme, or any other share option or share incentive scheme adopted by the Company within the preceding ten years shall not exceed 10% of the Ordinary Share Capital as
at the Date of Grant. 

  
 Page 9

	11.	INDIVIDUAL LIMITS ON THE GRANTING OF OPTIONS 

  

	11.1	No Option shall be granted to any Eligible Participant if or insofar as it would cause the aggregate market value of Shares over which options granted in any 12 month
period to that Eligible Participant, whether under the Scheme, or any other share option or share incentive scheme adopted by the Company to exceed an amount that is greater than 10 times the amount of the emoluments (which, without limitation,
excludes pension benefits and benefits in kind but includes bonus entitlement) expressed as an annual rate then payable to the Eligible Participant by the Group. For the purposes of this rule, the market value of a share in respect of which rights
to subscribe for shares have been or are to be granted shall be taken as the price payable upon the exercise of such rights. 

  

	12.	DEMERGER, RECONSTRUCTION OR WINDING-UP 

  

	12.1	Subject to rule 8.1, in the event that notice is given to shareholders of the Company of a proposed demerger of the Company the Committee may give notice to
Optionholders that Options may then be exercised in respect of all the Shares over which they subsist (subject to any performance-related condition or other objective criterion attaching to Options being satisfied) within such period (not exceeding
30 days) as the Committee may specify in such notice to Optionholders, save that no such notice to Optionholders shall be given unless the Auditors have confirmed in writing to the Committee that the interests of Optionholders would or might be
substantially prejudiced if before the proposed demerger has effect Optionholders could not exercise their Options and be registered as the holders of the Shares thereupon acquired. 

 

	12.2	Subject to rule 8.1, if the court sanctions a compromise or arrangement proposed for the purposes of or in connection with a scheme for the reconstruction of the
Company or its amalgamation pursuant to section 425 of the Companies Act 1985 the Optionholder shall be entitled to exercise his Option during the period of 6 months commencing on the date on which the court sanctions the compromise or arrangement
(subject to any performance-related condition or other objective criterion attaching to Options being satisfied) and thereafter the Option shall lapse and cease to be exercisable. 

  
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	12.3	In the event of notice being given to holders of Shares of a resolution for the voluntary winding-up of the Company, an Option may, subject to rule 8.1, be exercised at
any time before the commencement of the winding-up (subject to any performance-related condition or other objective criterion attaching to Options being satisfied) and thereafter the Option shall lapse and cease to be exercisable.

  

	12.4	All Options shall immediately lapse and cease to be exercisable upon the commencement of a winding-up of the Company. 

 

	13.	TAKE-OVER 

  

	13.1	Subject to rule 8.1, if, as a result of either: 

  

	 	(a)	a general offer to acquire the whole of the Ordinary Share Capital which is made on a condition such that if it is satisfied the person making the offer will have
Control of the Company; or 

  

	 	(b)	a general offer to acquire all the shares in the Company of the same class as the Shares 

the Company shall come under the Control of another person or persons, the Optionholder shall (subject to any performance-related
condition or other objective criterion attaching to Options being satisfied) be entitled to exercise his Option within the period of 6 months of the date when the person making the offer has obtained Control of the Company and any condition subject
to which the offer is made has been satisfied or waived and to the extent that the Option is not then exercised it shall upon the expiration of that period lapse and ceased to be exercisable. 

 

	13.2	Subject to rule 8.1, if at any time before an Option has lapsed any person becomes entitled or bound to acquire shares in the Company under sections 428 to 430F
(inclusive) of the Companies Act 1985 the Optionholder shall (subject to any performance-related condition or other objective criterion attaching to Options being satisfied) be entitled to exercise his Option at any time when that person remains so
entitled or bound and to the extent that the Option is not then exercised it shall upon the expiration of that period lapse and cease to be exercisable. 

  
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	13.3	For the purposes of this rule 13, a person shall be deemed to have Control of a company if he and others acting in concert with him have together obtained Control of
it. 

  

	14.	VARIATION OF SHARE CAPITAL 

  

	14.1	In the event of any alteration of the Ordinary Share Capital by way of capitalisation or rights issue, or sub-division, consolidation or reduction or any other
variation in the share capital of the Company, the Committee will make such adjustment: 

  

	 	(a)	to the aggregate number or amount of Shares subject to any Option, and/or 

  

	 	(b)	to the Exercise Price payable for each Share under any such Option, and/or 

 

	 	(c)	where an Option to subscribe for Shares has been exercised but no Shares have been allotted in accordance with rule 9.2, to the number of Shares which may be so
allotted and the Exercise Price payable for each Such Share. 

 PROVIDED THAT 

 

	 	(i)	except in the case of a capitalisation issue, any such adjustment is confirmed in writing by the Auditors to be in their opinion fair and reasonable; and

  

	 	(ii)	except insofar as the Committee (on behalf of the Company) agrees to capitalise the Company’s reserves and apply the same at the time of exercise of the Option in
paying up the difference between the Exercise Price and the nominal value of the Shares, the Exercise Price in relation to any Option to subscribe for shares is not reduced below the nominal value of a Share. 

 

	14.2	As soon as reasonably practicable after any such adjustment has effect in relation to any Option the Company shall give notice in writing to the Optionholder.

  

	15.	ALTERATION OF SCHEME 

  

	15.1	The Committee may at any time alter or add to any of the provisions of this Scheme in any respect PROVIDED THAT: 

 

	 	(a)	no such alteration or addition shall detrimentally affect Optionholders with regard to their subsisting Options except with the consent of Optionholders who, assuming
they exercise their Options in full, would become entitled to not less than three quarters of the nominal number of Shares the subject of such Options; and 

  
 Page 12

	 	(b)	the Committee must obtain approval of the shareholders of the Company in general meeting where a variation seeks to extend the class of persons eligible for the grant
of Options, or alter to the advantage of Optionholders rules relating to the grant of Options, Scheme limits, the adjustment of Options, and the subscription price, save for minor amendments to benefit the administration of the Scheme to comply or
take account of any proposed or existing legislation or to obtain or maintain favourable tax, exchange control or regulatory treatment for Optionholders. 

  

	15.2	As soon as reasonably practicable after making any alteration or addition under this rule 15, the Committee shall give notice in writing thereof to any Optionholder
affected. 

  

	16.	SERVICE OF DOCUMENTS 

  

	16.1	Except as otherwise provided in this Scheme, any notice or document to be given by, or on behalf of, the Company to any person in accordance or in connection with this
Scheme shall be duly given: 

  

	 	(a)	if he is a director or employee of any member of the Group by delivering it to him at his place of work; or 

 

	 	(b)	by sending it through the post in a pre-paid envelope to the address last known to the Company to be his address and, if so sent, it shall be deemed to have been duly
given on the date of posting; or 

  

	 	(c)	if he holds office or employment with any member of the Group, by sending a facsimile transmission or any other electronic communication to a current facsimile or
electronic communication number addressed to him at his place of work or his address last known to the Company and if so sent it shall be deemed to have been duly given at the time of transmission. 

 

	16.2	Any notice or document so sent to an Eligible Participant and/or Optionholder shall be deemed to have been duly given notwithstanding that such person is then deceased
(and whether or not the Company has notice of his death) except where his Personal Representatives have established their title to the satisfaction of the Company and supplied to the Company an address to which documents are to be sent.

  
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	16.3	Any notice in writing or document to be submitted or given to any of the Directors or the Company in accordance or in connection with this Scheme may be delivered, sent
by post, or facsimile transmission but shall not in any event be duly given unless it is actually received by the secretary of the Company or such other individual as may from time to time be nominated by the Committee and whose name and address is
notified to Optionholders. 

  

	17.	TAXATION 

  

	17.1	If an Option Tax Liability arises in respect of an Option the Company shall be entitled to the extent permitted by law to deduct such amount(s) from any payment due to
be made by the Company or any Associated Company to or in respect of the Optionholder in respect of that Option during the same calendar month or other relevant period in which the event occurs or in any subsequent calendar month or such relevant
period in order to satisfy and discharge the Option Tax Liability whether or not such payment is of an income or capital nature. 

  

	17.2	If and to the extent that the Option Tax Liability referred to in rule 17.1 is of income tax which exceeds the amount from which deductions in respect thereof can be
made in any one period referred to in rule 17.1 in respect of the Optionholder concerned, that Optionholder shall pay or reimburse the Company for the amount of the excess on demand or within such period as may be specified in any written notice
given by the Company. 

  

	17.3	Where an Option Tax Liability arises in respect of the exercise of an Option the Committee may, without prejudice to the Company’s rights under rule 17.1, by
written notice to the Optionholder concerned nominate as his bare trustee any person (“the Bare Trustee”) to sell such number of shares issued upon the exercise of the Option as may be required in order to discharge the Option Tax
Liability and any other liability (including costs) connected with the said sale and the Bare Trustee shall pay an amount equal to the Option Tax Liability to the Company and otherwise discharge any other said liability to the extent that the net
proceeds from the said sale permit. 

  
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	18.	MISCELLANEOUS 

  

	18.1	The Company shall at all times keep available sufficient authorised but unissued Shares to satisfy the exercise in full of all Options to subscribe for Shares for the
time being remaining capable of being exercised under this Scheme. 

  

	18.2	The Committee may from time to time make and vary such rules and regulations not inconsistent herewith and establish such procedures for the administration and
implementation of this Scheme as they think fit and in the event of any dispute or disagreement as to the interpretation of this Scheme or of any such rules, regulations or procedures or as to any question or right arising from or related to this
Scheme, the decision of the Committee shall (except as regards any matter required to be determined by the Auditors hereunder) be final and binding upon all persons. 

 

	18.3	In any matter in which they are required to act hereunder, the Auditors shall be deemed to be acting as experts and not as arbitrators. 

 

	18.4	The costs of the administration and implementation of this Scheme shall be borne by the Company. 

 

	18.5	Optionholders shall not by reason of the Option be entitled to receive copies of any documents sent to holders of Shares nor have any right to attend general meetings
of the Company. 

  
 Page 15

 Schedule 
 The Eros International plc Bonus Share Plan Unapproved Option 
 Scheme
2006 
 Option Certificate 
  

					
	 Name of Optionholder:
	 	
			
		 	 	 	
		
	 Address of Optionholder:
	 	
			
		 	 	 	
			
		 	 	 	
			
		 	 	 	
			
		 	 	 	
			
		 	 	 	
			
	 Date of Grant:
	 		 	
			
		 	 	 	
		
	 Maximum Number of Shares:
	 	
			
		 	 	 	
			
	 Exercise Price:
	 		 	
			
		 	 	 	
		
	 Conditions to which the Option is Subject
	 	
			
		 	 	 	

  
 Page 16

 Eros International plc HEREBY GRANTS to the Optionholder named above an Option to subscribe for a maximum of
             ordinary shares in the Company at a price per share of              p. 

The Option is exercisable subject to and in accordance with the rules of the Eros International plc Bonus Share Plan Unapproved Option Scheme 2006 as
they are amended from time to time. In accordance with rule 8.1, the Option may not in any event be exercised later than 30 June 2016. 

EXECUTED and DELIVERED as a DEED by EROS INTERNATIONAL PLC acting by: 

			
	
	Director__________________________________

			
	
	Secretary/Director__________________________

 FORM OF ACCEPTANCE 
 I HEREBY AGREE to accept the grant of this Option and be bound by the terms and conditions set out in the rules of the Eros International plc Bonus Share Plan Unapproved Option Scheme 2006 and the
performance-related condition(s) of exercise set out in this Option Certificate. 
 I understand that I may be required to account for an Option
Tax Liability as set out in rule 17 of the Scheme and hereby indemnify the Company and each member of the Group in respect of such Option Tax Liability. 
 SIGNED and DELIVERED as a DEED by 

	
	
	  
	in the presence of:

	
	
	  
	(Optionholder signature)

  
 Page 17

			
	
	Witness signature: _________________________
	
	Witness name: (print): _____________________
	
	Address: _________________________________
	
	________________________________________
	
	________________________________________
	
	________________________________________
	
	________________________________________
	
	Occupation: ______________________________

  
 Page 18

 The Eros International plc Bonus Share Plan 

Unapproved Option Scheme 2006 
 Notice of Exercise of Option 
  

	To:	Company Secretary, Eros International plc, 15-19 Athol Street, Douglas, Isle of Man IM1 1 LB 

 I hereby exercise the Option referred to overleaf in respect of all/                * of the shares over which the
Option may be exercised, and request the allotment or transfer to me of those shares in accordance with the rules of the Scheme and the Memorandum and Articles of Association of the Company. 
 I enclose a cheque made payable to Eros International plc in the sum of £         being the aggregate Exercise Price of such shares and warrant that
such cheque will be honoured on first presentation. 
  

									
		 		 	Signature
	Name (block letters):	 		 	
				
	 	 		 		 	
				
	 	 		 		 	
				
	 Address:
	 		 		 	
				
	 	 		 		 	
				
	 	 		 		 	
				
	 	 		 		 	Date
				
	 	 		 		 	

 Notes: 
  

	1.	This form must be accompanied by payment of the Exercise Price for the shares in respect of which the Option is exercised. 

  
 Page 19

	2	Where the Option is exercised by personal representatives, an office copy of the Probate or Letters of Administration should accompany the form.

  

	3	The Scheme has not been approved by the Inland Revenue. Under current tax rules a charge to tax will arise on the exercise of the Option on the difference between the
market value of the shares at the date of exercise and the price paid for them. 

  

	4	IMPORTANT. Neither the Company nor the Company’s advisers undertakes to advise you on the tax consequences of exercising your Option. If you are unsure of the tax
liabilities which may arise, you should take appropriate professional advice before exercising your Option. 

  

	*	Delete/insert number as appropriate. 

  
 Page 20

 EXPLANATORY NOTES TO PARTICIPANTS 
 (These notes are meant for guidance only and in no way affect the rights of participants under the rules of the scheme. In the event of any conflict, the rules of the Scheme shall override these notes.
The notes are of general application only, and independent professional advice should be sought where appropriate). 
 Introduction

 A share option is a binding arrangement entered into between the employee or director concerned and the Company. It provides the Option
holder with a right to buy shares in the Company at a time in the future at a predetermined price, and which may be subject to performance conditions. If, over a period of time, the value of the shares rise and any conditions are met, the option
holder may then wish to exercise the option to buy the shares at the predetermined price. The Optionholder need not of course exercise the option and our advice is that he should consults his professional advisers before doing so. 

Workings of the Scheme 
 The Committee
selects from amongst Eligible Participants those who are to be granted a share option and the number of shares to be put under option to them. 

Options will be granted by the Company, by means of an option certificate. No payment is required for their grant. The option certificate will show the
number of shares allocated, the price at which they may be purchased, the date from which the option can be exercised and the condition that is required to be satisfied. Should the recipient not wish to accept the option, in whole or in part, he may
disclaim the unwanted shares. 
 There is a limit on the total market value of shares, which any one optionholder can obtain in a year. This is
four times his annual emoluments including bonus (but excluding pension benefits and benefits in kind). 
 Options cannot be transferred. They
will be exercisable subject to any performance conditions being satisfied. Options will lapse, if not already exercised, no later than 30 June 2016. Options will also lapse under the Rules on termination of employment (unless the Committee
determines otherwise) or following a takeover or winding up of the Company or if the Optionholder becomes bankrupt. 

  
 Page 21

 There are exceptions to the rule relating to the exercise of options referred to above: 

 

	 	•	 	 cessation of employment when the Directors agree to early exercise; 

 

	 	•	 	 cessation of employment due to injury or disability; 

  

	 	•	 	 if the company is taken over or voluntarily wound up. 

 To exercise an option, notice should be given in the form supplied with the option certificate. Partial exercise is possible and a revised option certificate will then be issued for any balance remaining
exercisable. 
 After options are exercised and shares acquired, the rights to dividends will be identical to that of ordinary shareholders in
proportion to the issued nominal share value. Dividends arising on a date preceding the date of exercise of an option will not however be payable to the Optionholder. 
 If the share capital of the company is changed, there is provision in the scheme to amend the number and acquisition price of shares under option in an equitable manner. A revised option certificate would
be provided. There is provision also for amendment of the scheme rule but no amendment may be made to the disadvantage of an Optionholder without prior written consent. Option holders will be advised of relevant charges. 

Conditions of Exercise 
 Options may not
be exercised and shares acquired unless any conditions as may be set out in the Option Certificate are fulfilled. 
 Tax Implications

 Tax legislation can vary substantially from year to year and professional advice should be sought in cases of doubt. 

  
 Page 22

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